MIRA INFORM REPORT

Report Date :

08.10.2014

IDENTIFICATION DETAILS

Name :	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED
Registered Office :	B 3, SMA Industrial Estate, G T Karnal Road, New Delhi - 110033
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.08.1970
Com. Reg. No.:	55-005377
Capital Investment / Paid-up Capital :	Rs.12.900 Millions
CIN No.: [Company Identification No.]	U74899DL1970PTC005377
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Sports Goods, Surgical Gods and Footwear Components.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1400000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company seems to be low during 2013. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The subject can be considered for business dealings with some caution.

NOTES:

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

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	ICRA
Rating	Long Term Working Capital Limits = BB
Rating Explanation	Have moderate risk of default
Date	March 2014

Rating Agency Name	ICRA
Rating	Short Term Working Capital Limits = A4+
Rating Explanation	Have minimal degree of safety and carry higher credit risk
Date	March 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. Abhishek
Designation :	Not Divulged
Contact No.:	91-9810630869
Date :	07.10.2014

LOCATIONS

Registered Office / Corporate Office :	B 3, SMA Industrial Estate, G T Karnal Road, New Delhi – 110033, India
Tel. No.:	91-11-26793333 / 27693334 / 47550000 / 27691952
Mobile No.:	91-9810630869 (Mr. Abhishek)
Fax No.:	91-11-27691952 / 27696990
E-Mail :	nkhoacc@enkayrub.com contant@enkayrub.com
Website :	http://www.enkayrubber.com
Location :	Owned
Factory :	1st Mallstone, Basai Road, Gurgaon – 122001, Haryana, India
Tel. No.:	91-124-2309481
Branch Office :	7, Narayan Nagar, Basti Sheikh Road, Jalandhar – 144002, Punjab, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Bir Chand Jain

Designation :

Managing Director

Address :

23/, Shakti Nagar, Shakti Mandir Marg, Delhi - 110007, India

Date of Birth/Age :

25.10.1925

Date of Appointment :

14.08.1970

DIN No.:

00277905

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	U74899DL1970PTC005377	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED	Managing director	14/08/1970	14/08/1970	-	Active	NO
2	U74899DL1986PTC025470	ENKAY BRAND DISTRIBUTION PRIVATE LIMITED	Director	17/09/1986	17/09/1986	06/09/2014	Active	NO
3	U74899DL1994PTC059374	ENKAY HWS INDIA Private Limited	Director	02/06/1994	02/06/1994	-	Active	NO
4	U36939DL2000PTC108813	SPORTSWELL INDIA PRIVATE LIMITED	Director	11/12/2000	11/12/2000	-	Active	NO
5	U74999DL2011PTC222508	HOUSE OF FITNESS PRIVATE LIMITED	Additional director	20/03/2014	20/03/2014	-	Active	NO

Name :

Mr. Raj Kumar Jain

Designation :

Whole Time Director

Address :

23/, Shakti Nagar, Shakti Mandir Marg, Delhi - 110007, India

Date of Birth/Age :

04.06.1927

Date of Appointment :

14.08.1970

DIN No.:

00279235

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	U74899DL1970PTC005377	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED	Whole-time director	14/08/1970	14/08/1970	-	Active	NO
2	U74899DL1986PTC025470	ENKAY BRAND DISTRIBUTION PRIVATE LIMITED	Director	17/09/1986	17/09/1986	06/09/2014	Active	NO
3	U74899DL1994PTC059374	ENKAY HWS INDIA Private Limited	Director	30/09/2002	30/09/2002	-	Active	NO

Name :

Mr. Satish Jain

Designation :

Whole Time Director

Address :

House No.234 P, Sector-14, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

02.10.1948

Date of Appointment :

01.01.1991

DIN No.:

00277460

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	U74899DL1970PTC005377	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED	Whole-time director	01/01/1991	01/01/1991	-	Active	NO
2	U74899DL1994PTC059374	ENKAY HWS INDIA Private Limited	Director	30/09/2002	30/09/2002	-	Active	NO

Name :

Mr. Anil Jain

Designation :

Whole Time Director

Address :

12, Enkay House, New Colony, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

07.12.1953

Date of Appointment :

01.01.1991

DIN No.:

00278992

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	U74899DL1970PTC005377	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED	Whole-time director	01/01/1991	01/01/1991	-	Active	NO
2	U74899DL1994PTC059374	ENKAY HWS INDIA Private Limited	Director	30/09/2002	30/09/2002	-	Active	NO

Name :

Mr. Naresh Jain

Designation :

Director

Address :

23/, Shakti Nagar, Shakti Mandir Marg, Delhi - 110007, India

Date of Birth/Age :

08.09.1952

Date of Appointment :

01.01.1991

DIN No.:

00277627

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	U74899DL1970PTC005377	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED	Director	06/08/2012	01/11/1994	-	Active	NO
2	U74899DL1994PTC059374	ENKAY HWS INDIA Private Limited	Director	31/08/2013	30/09/2002	-	Active	NO
3	U74899DL1986PTC025470	ENKAY BRAND DISTRIBUTION PRIVATE LIMITED	Whole-time director	30/09/2013	08/07/2011	-	Active	NO

Name :

Mr. Vipin Jain

Designation :

Director

Address :

23/, Shakti Nagar, Shakti Mandir Marg, Delhi - 110007, India

Date of Birth/Age :

13.02.1960

Date of Appointment :

01.07.1994

DIN No.:

00277839

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	U74899DL1994PTC059374	ENKAY HWS INDIA Private Limited	Director	31/10/2013	02/06/1994	-	Active	NO
2	U74899DL1970PTC005377	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED	Director	06/08/2012	01/07/1994	-	Active	NO
3	U36939DL2000PTC108813	SPORTSWELL INDIA PRIVATE LIMITED	Director	11/12/2000	11/12/2000	-	Active	NO
4	U74899DL1986PTC025470	ENKAY BRAND DISTRIBUTION PRIVATE LIMITED	Whole-time director	01/11/2013	15/10/2010	-	Active	NO

Name :

Mr. Jinesh Jain

Designation :

Whole Time Director

Address :

12, Enkay House, New Colony, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

31.12.1961

Date of Appointment :

01.04.1998

DIN No.:

00277807

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	U74899DL1970PTC005377	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED	Whole-time director	01/04/1998	01/04/1998	-	Active	NO
2	U74899DL1994PTC059374	ENKAY HWS INDIA Private Limited	Director	30/09/2002	30/09/2002	-	Active	NO

Name :

Mr. Arvind Jain

Designation :

Director

Address :

732, Sector-15, Part-2, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

13.01.1976

Date of Appointment :

06.08.2012

DIN No.:

00277560

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	U74899DL1970PTC005377	ENKAY INDIA RUBBER COMPANY PRIVATE LIMITED	Director	06/08/2012	01/04/2003	-	Active	NO
2	U74899DL1994PTC059374	ENKAY HWS INDIA Private Limited	Whole-time director	01/04/2014	01/02/2013	-	Active	NO
3	U74899DL1986PTC025470	ENKAY BRAND DISTRIBUTION PRIVATE LIMITED	Additional director	01/07/2014	01/07/2014	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2013

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Sports Goods, Surgical Gods and Footwear Components.
Exports :
Products :	Finished Goods
Countries :	Europe US
Imports :
Products :	Raw Material
Countries :	Europe

GENERAL INFORMATION

No. of Employees :

700 (Approximately)

Bankers :

HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India The Hongkong and Shanghai Banking Corporation Limited, 25, Barakhamba Road, New Delhi - 110001, India Kotak Mahindra Bank Limited, 36-38 A, Nariman Bhavan, 227, D, Nariman Point,, Mumbai - 400021, Maharashtra, India Yes Bank Limited, 9th Floor, Nehru Centre, Discovery Of India, Dr. Annie Besant Road, Worli,, Mumbai - 400018, Maharashtra, India Bank of India, Kamla Nagar Branch, 29-A,Kamla Nehru Road, Kamla Nagar, Delhi - 110007, India

Banking Relations :	--
Auditors :
Name :	Madan and Associates Chartered Accountants
Address :	Flat No.1003, 10 Floor, Kailash Building, K G Marg, New Delhi – 110001, India
Tel. No.:	91-11-30487347 / 23327345
Fax No.:	91-11-23327345
PAN No.:	AAAPM5122B
Sister Concern :	Enkay HWS India Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
95000	Equity Shares	Rs.1000/- each	Rs.95.000 Millions
5000	Preference Shares	Rs.1000/- each	Rs.5.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12900	Equity Shares	Rs.1000/- each	Rs.12.900 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	12.900	12.900	12.900
(b) Reserves & Surplus	325.958	324.597	316.328
(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)	338.858	337.497	329.228
(3) Non-Current Liabilities
(a) long-term borrowings	298.792	275.606	264.126
(b) Deferred tax liabilities (Net)	4.815	2.381	3.372
(c) Other long term liabilities	7.703	5.498	5.955
(d) long-term provisions	4.131	1.629	1.170
Total Non-current Liabilities (3)	315.441	285.114	274.623
(4) Current Liabilities
(a) Short term borrowings	282.087	351.930	276.515
(b) Trade payables	58.086	88.540	97.012
(c) Other current liabilities	59.607	63.102	74.800
(d) Short-term provisions	2.508	6.200	22.564
Total Current Liabilities (4)	402.288	509.772	470.891
TOTAL	1,056.587	1,132.383	1,074.742
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	199.562	196.406	203.466
(ii) Intangible Assets	3.165	3.392	2.884
(iii) Capital work-in-progress	33.860	43.138	11.433
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.368	1.367	1.361
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	133.035	167.583	147.145
(e) Other Non-current assets	137.494	76.904	69.434
Total Non-Current Assets	508.484	488.790	435.723
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	269.586	312.702	318.585
(c) Trade receivables	211.583	230.938	243.461
(d) Cash and cash equivalents	13.778	19.419	41.055
(e) Short-term loans and advances	53.156	80.534	35.918
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	548.103	643.593	639.019
TOTAL	1,056.587	1,132.383	1,074.742

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		814.000	842.400	NA
		Other Income		NA	NA	NA
		TOTAL		NA	NA	NA
	EXPENSES			NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX			5.232	14.295	44.012
Less	TAX			2.484	5.209	18.094
	PROFIT/(LOSS) AFTER TAX			2.748	9.086	25.918
Less	Tax Adjustment / Other Adjustment			1.387	0.818	0.170
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			35.317	27.876	27.266
Less	APPROPRIATIONS
			Transfer to General Reserve	0.136	0.827	2.574
			Proposed Dividend	0.000	0.000	19.350
			Dividend tax	0.000	0.000	3.214
	BALANCE CARRIED TO THE B/S			36.543	1.361	27.876
	Earnings / (Loss) Per Share (Rs.)			213.02	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	0.64	1.70	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.51	1.31	4.14
Return on Investment (ROI) (PBT/Networth)		0.02	0.04	0.13
Debt Equity Ratio (Total Debt /Networth)		1.71	1.86	1.64
Current Ratio (Current Asset/Current Liability)		1.36	1.26	1.36

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	12.900	12.900	12.900
Reserves & Surplus	316.328	324.597	325.958
Net worth	329.228	337.497	338.858
long-term borrowings	264.126	275.606	298.792
Short term borrowings	276.515	351.930	282.087
Total borrowings	540.641	627.536	580.879
Debt/Equity ratio	1.642	1.859	1.714

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	842.400	814.000
		(3.371)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	842.400	814.000
Profit	9.086	2.748
	1.08%	0.34%

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 two 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)	Yes
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

BUSINESS REVIEW:

The sales of the company for the year ended 31^st March 2013 were Rs.814.000 Millions and net profit before tax was Rs.5.232 Millions. Exports during the year were Rs.111.785 Millions

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10400846	29/10/2013 *	150,000,000.00	HDFC Bank Limited	HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	B89708978
2	10209332	16/11/2011 *	410,000,000.00	Kotak Mahindra Bank Limited	36-38a, Nariman Bhavan, 227,D, Nariman Point, Mumbai, Maharashtra - 400021, India	B26016139
3	80024165	04/03/2014 *	170,000,000.00	Bank of India	Kamla Nagar Branch, 29-A,Kamla Nehru Road, Kamla Nagar, Delhi - 110007, India	C01202050

*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 records 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.61.36
UK Pound	1	Rs.98.71
Euro	1	Rs.77.47

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.