MIRA INFORM REPORT

Report Date :

02.10.2014

IDENTIFICATION DETAILS

Name :	DEMOSHA CHEMICALS PRIVATE LIMITED
Registered Office :	105-A, Mittal Towers, 210, Nariman Point, Mumbai – 400021, Maharashtra.
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.10.1970
Com. Reg. No.:	11-014859
Capital Investment / Paid-up Capital :	Rs.19.900 Millions
CIN No.: [Company Identification No.]	U24110MH1970PTC014859
TAN No.: [Tax Deduction & Collection Account No.]	MUMD09824D
PAN No.: [Permanent Account No.]	AAACD3822A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and export of a range of chemicals servicing the requirements of customers from a diverse range of industries – Textiles, Jaggery, Tyre, Pharmaceuticals, etc.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 660000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company is normal and acceptable for business dealing. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications: Apex court order may alter coal import dynamics. Traders go slowly on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn Business Empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M a M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that it had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = (BB+ / Stable)
Rating Explanation	Moderate risk of default.
Date	14.07.2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Harshadbhai
Designation :	Account Department
Contact No.:	91-2632-237271
Date :	30.09.2014

LOCATIONS

Registered Office / Administrative Office :	105-A, Mittal Towers, 210, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22823558 / 22823588 / 22852189 / 22872218
Fax No.:	91-22-22045997
E-Mail :	info@demoshachemicals.com / demosha@vsnl.com
Website :	http://www.dubindia.com/ft/del/home1008.htm
Factory 1:	82, GIDC Industrial Estate, Gundlav - 396005, Gujarat, India
Tel. No.:	91-2632-82 20474 / 2632-237271 / 2 / 3
Fax No.:	91-2632-82 20657 / 2632-237277
E-Mail :	plant@demoshachemicals.com
Factory 2:	132-136, GIDC Industrial Area, Post – Gundlav, District Bulsar, Gujarat, India

DIRECTORS

As on 27.09.2013

Name :

Mr. Gautam Bhogilal Shah

Designation :

Whole Time Director

Address :

19, 7^th Floor, Panchasar Building, 76 Netaji Subhash Marg, Marine Drive, Mumbai - 400 020, Maharashtra, India

Date of Birth/Age :

08.01.1946

Date of Appointment :

01.03.1995

DIN No.:

00665651

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24110MH1959PTC011440	INDUSTRIAL SOLVENTS AND CHEMICALS PRIVATE LIMITED	Whole-time director	16/11/1974	16/11/1974	01/07/2013	Active	NO
2	U24110MH1970PTC014859	DEMOSHA CHEMICALS PRIVATE LIMITED	Whole-time director	01/03/1995	01/03/1995	-	Active	NO

Name :

Mr. Chinubhai Shantilal Shah

Designation :

Whole Time Director

Address :

903, Chandanbala, R. R. Thakkar Marg, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

13.12.1937

Date of Appointment :

01.05.1997

DIN No.:

00209638

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24110MH1970PTC014859	DEMOSHA CHEMICALS PRIVATE LIMITED	Whole-time director	01/05/1997	01/05/1997	-	Active	NO
2	U72100MH2000PTC124860	SNS TECHNOLOGIES PRIVATE LIMITED	Director	13/12/2000	13/12/2000	-	Active	NO
3	U67120MH2001PTC133842	SARJAN INVESTMENT PRIVATE LIMITED	Director	02/11/2001	02/11/2001	-	Active	NO
4	U24230MH2005PLC156917	GOPALDAS VISRAM AND COMPANY LIMITED	Director	16/01/2008	16/01/2008	01/08/2009	Active	NO
5	U70102MH2009PTC195524	MSS PROPERTIES & LANDS PRIVATE LIMITED	Director	04/09/2009	04/09/2009	-	Active	NO

Name :

Mr. Vijay Monish Parikh

Designation :

Director

Address :

10/C, 5^th Floor, Ishwardas Mansion, Nana Chowk, Mumbai-400007, Maharashtra, India

Date of Birth/Age :

09.09.1955

Date of Appointment :

01.03.1995

DIN No.:

01556958

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24110MH1970PTC014859	DEMOSHA CHEMICALS PRIVATE LIMITED	Director	01/03/1995	01/03/1995	-	Active	NO
2	U67120MH1999PTC118079	MUDRIKA FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	01/02/1999	01/02/1999	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Harshadbhai
Designation :	Account Department

MAJOR SHAREHOLDERS

As on 27.09.2013

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2013

Category	Percentage
Bodies corporate	5.38
Directors or relatives of Directors	94.62
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and export of a range of chemicals servicing the requirements of customers from a diverse range of industries – Textiles, Jaggery, Tyre, Pharmaceuticals, etc.

GENERAL INFORMATION

No. of Employees :

250 (Approximately)

Bankers :

Bank of Baroda , Bulsar Main Branch, Nani Khatriwad, Bulsar - 396001, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
LONG TERM BORROWINGS
Deferred payment for acquisition of fixed assets	0.074	0.590
SHORT TERM BORROWINGS
Working capital loans from banks	66.281	93.137
Total	66.355	93.727

Banking Relations :	--
Auditors :
Name :	R P Shah and Company Chartered Accountants
Address :	Office No.35, 3^rd Floor, Tardeo, AC Market, Mumbai - 400034, Maharashtra, India
PAN No.:	ABSPD1234G
Associate Firm :	· Western India Chemicals · Industrial Solvents and Chemicals Private Limited CIN No.: U24110MH1959PTC011440 · BMS Chemie · Mudrika Finance and Investment Private Limited CIN No.: U67120MH1999PTC118079

CAPITAL STRUCTURE

As on 27.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.100/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
199000	Equity Shares	Rs.10/- each	Rs.19.900 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	19.900	19.900	19.900
(b) Reserves & Surplus	143.989	94.435	91.379
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	163.889	114.335	111.279
(3) Non-Current Liabilities
(a) long-term borrowings	213.123	205.459	174.027
(b) Deferred tax liabilities (Net)	4.286	2.147	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	217.409	207.606	174.027
(4) Current Liabilities
(a) Short term borrowings	66.281	93.137	141.808
(b) Trade payables	98.644	153.153	119.078
(c) Other current liabilities	65.169	24.424	22.092
(d) Short-term provisions	7.645	7.410	7.324
Total Current Liabilities (4)	237.739	278.124	290.302
TOTAL	619.037	600.065	575.608
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	93.269	79.168	83.356
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	6.901	13.626	1.090
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.031
(c) Deferred tax assets (net)	0.000	0.000	0.624
(d) Long-term Loan and Advances	0.375	6.416	6.327
(e) Other Non-current assets	0.081	0.081	0.000
Total Non-Current Assets	100.626	99.291	91.428
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	227.867	170.353	187.704
(c) Trade receivables	251.365	292.515	274.347
(d) Cash and cash equivalents	15.960	6.492	3.503
(e) Short-term loans and advances	18.411	22.050	17.260
(f) Other current assets	4.808	9.364	1.366
Total Current Assets	518.411	500.774	484.180
TOTAL	619.037	600.065	575.608

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL (A)		1,464.748	1,252.427	1,121.101
Less	EXPENSES
		TOTAL (B)		1,331.971	1185.92	1026.525
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			132.777	66.507	94.576
Less	FINANCIAL EXPENSES (D)			37.706	40.544	37.225
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			95.071	25.963	57.351
Less	DEPRECIATION/ AMORTISATION (F)			9.512	10.354	8.828
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			85.559	15.609	48.523
Less	TAX (H)			29.638	6.771	15.254
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			85.559	15.609	48.523
Less	PRIOR PERIOD ADJUSTMENTS			0.585	0.000	0.002
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			38.435	36.379	13.894
Less	APPROPRIATIONS
			Proposed dividend	4.975	4.975	4.975
			Tax on Proposed dividend	0.807	0.807	0.807
			Transfer to General Reserve	6.000	1.000	5.000
	BALANCE CARRIED TO THE B/S			81.989	38.435	36.379
	EARNINGS IN FOREIGN CURRENCY
			Export of goods on FOB Basis	103.268	117.499	NA
	TOTAL EARNINGS			103.268	117.499	NA
	IMPORTS
			Raw Material (Excluding high seas purchases)	30.926	27.852	NA
			Stores & Spares	0.325	0.341	NA
	TOTAL IMPORTS			31.251	28.193	NA
	Earnings / (Loss) Per Share (Rs.)			429.94	NA	167.19

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.84	1.25	4.33
Return on Total Assets (PBT/Total Assets}	(%)	13.98	2.66	8.46
Return on Investment (ROI) (PBT/Networth)		0.52	0.14	0.44
Debt Equity Ratio (Total Debt /Networth)		1.70	2.61	2.84
Current Ratio (Current Asset/Current Liability)		2.18	1.80	1.67

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	19.900	19.900	19.900
Reserves & Surplus	91.379	94.435	143.989
Net worth	111.279	114.335	163.889
long-term borrowings	174.027	205.459	213.123
Short term borrowings	141.808	93.137	66.281
Total borrowings	315.835	298.596	279.404
Debt/Equity ratio	2.838	2.612	1.705

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Total Income	1,121.101	1,252.427	1,464.748
		11.714	16.953

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Total Income	1,121.101	1,252.427	1,464.748
Profit	48.523	15.609	85.559
	4.33%	1.25%	5.84%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
LONG TERM BORROWINGS
Deposits from others	4.301	3.865
Loans and advances from related parties	208.748	201.004
Total	213.049	204.869

BACK GROUND

The company is into the manufacturing and export of a range of chemicals servicing the requirements of customers from a diverse range of industries – Textiles, Jaggery, Tyre, Pharmaceuticals, etc.

PERFORMANCE OF THE COMPANY

The company posted an all-round improved performance with an impressive top line growth and earnings reflecting the robustness of its corporate strategy of creating multiple drivers of growth. This performance is particularly noteworthy when viewed against the bankrupt of the extremely challenging business content resulting out of a regulated regime.

CURRENT YEAR OUT LOOK

The expected decline in growth rate in India is bound to affect our performance in the current year and the rate of growth achieved in last year may not be maintained in the current year. During the current year energy cost has further gone up. Continuation of higher inflation rate will also increase labour cost further in the current year. The year under review is bound to be with lots of uncertainty and your company hopes to maintain the profitability as of last year.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90232268	23/02/2004	12,000,000.00	Bank of Baroda	Bulsar Branch, Bulsar, Maharashtra, India	-
2	90232198	08/11/2006 *	52,000,000.00	Bank of Baroda	Bulsar Main Branch,, Nani Khatriwad,, Bulsar, Gujarat - 396001, India	A33820242
3	90226992	24/11/2006 *	185,000,000.00	Bank of Baroda	Bulsar Main Branch,, Nani Khatriwad,, Bulsar, Gujarat - 396001, India	A38894895
4	90229505	21/09/1999	18,500,000.00	Bank of Baroda	Bulsar Main Branch,, Nani Khatriwad,, Bulsar, Gujarat - 396001, India	-
5	90229263	26/09/1997	102,500,000.00	Bank of Baroda	Bulsar Main Branch,, Nani Khatriwad,, Bulsar, Gujarat - 396001, India	-
6	90229132	15/11/1996	200,000.00	Bank of Baroda	Mota Bazar, Bulsar, Gujarat, India	-
7	90228839	12/10/1994	7,500,000.00	Bank of Baroda	Bulsar Main Branch,, Nani Khatriwad,, Bulsar, Gujarat - 396001, India	-
8	90231902	12/10/1994 *	11,000,000.00	Bank of Baroda	Bulsar Main Branch,, Nani Khatriwad,, Bulsar, Gujarat - 396001, India	-
9	90228810	25/07/1996 *	18,000,000.00	Industral Development Bank Of India	Neptune Tower, Nehru Bridge; Ashram Road, Ahmedabad, Maharashtra - 380009, India	-
10	90231783	30/03/1992 *	10,000,000.00	Bank of Baroda	Nani Khatriwad, Bulsar, Gujarat - 396001, India	-
11	90231754	12/08/1991	17,500,000.00	Bank of Baroda	Nani Khatriwad, Bulsar, Gujarat - 396001, India	-
12	90228441	12/08/1991 *	20,000,000.00	Bank of Baroda	Nani Khatriwad, Bulsar, Gujarat - 396001, India	-
13	90228348	06/12/1990 *	5,000,000.00	Bank of Baroda	Nani Khatriwad, Bulsar, Gujarat - 396001, India	-
14	90231659	09/08/1989	2,000,000.00	Bank of Baroda	Nani Khatriwad, Bulsar, Gujarat - 396001, India	-
15	90228061	15/04/1988	3,940,000.00	Bank of Baroda	Nani Khatriwad, Bulsar, Gujarat - 396001, India	-
16	90230531	15/04/1988 *	4,500,000.00	Bank of Baroda	Nani Khatriwad, Bulsar, Gujarat - 396001, India	-
17	90230470	30/10/1986 *	2,160,000.00	Bank of Baroda	Nani Khatriwad, Bulsar, Gujarat - 396001, India	-
18	90227773	04/03/1985	1,100,000.00	Bank of Baroda	Bulsar Main Branch,, Nani Khatriwad,, Bulsar, Gujarat - 396001, India	-
19	90227716	27/11/1990 *	2,587,000.00	Gujarat State Financial Corporation	Jal Darshan Bldg., Asharm Road, Ahmedabad, Gujarat - 380009, India	-
20	90227705	16/01/1984	1,486,000.00	Bank of Baroda	Khatriwad Branch, Bulsar, Maharashtra, India	-
21	90227566	01/01/1981	200,000.00	Bank of Baroda	Bulsar Main Branch,, Nani Khatriwad,, Bulsar, Gujarat - 396001, India	-
22	90227380	30/07/1975	100,000.00	Bank of Baroda	Mota Bazar, Bulsar, Maharashtra, India	-
23	90227340	04/10/1973	150,000.00	Bank of Baroda	Mota Bazar, Bulsar, Maharashtra, India	-
24	90227326	08/03/1973	225,000.00	Bank of Baroda	Mota Bazar, Bulsar, Maharashtra, India	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.61
UK Pound	1	Rs.100.28
Euro	1	Rs.78.21

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	DIV
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.