MIRA INFORM REPORT

Report Date :

04.09.2014

IDENTIFICATION DETAILS

Name :	VERITAZ HEALTHCARE LIMITED
Registered Office :	Sy No. 66 (Part) & 67 (Part), Miyapur, Serillingampally Mandal, Hyderabad – 500050, Telangana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.09.2006
Com. Reg. No.:	051148
Capital Investment / Paid-up Capital :	Rs. 250.000 Millions
CIN No.: [Company Identification No.]	U24231TG2006PLC051148
PAN No.: [Permanent Account No.]	AACCV3220A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Marketer of Pharmaceutical Products, Giving Service to Doctors and Patients.
No. of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has incurred a loss from its operations during 2013. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing with some cautions. Note: As claimed by Mr. Krishna Kuamar (Accountant) that correct name of the company is “VERITAZ HEALTHCARE LIMITED” on the given address which you have provided they do not have any such company with the name of “Veritas Pharma”.

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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 DECLINED BY

Name :	Mr. Anand
Designation :	Accountant
Contact No.:	91-40-66721469
Date :	02.09.2014

LOCATIONS

Registered Office :	Sy No. 66 (Part) & 67 (Part), Miyapur, Serillingampally Mandal, Hyderabad – 500050, Telangana, India
Tel. No. :	91-40-40408080
Fax No. :	91-40-40408060
E-Mail :	seshaiah.gelli@axisclinicals.com

DIRECTORS

As on 26.09.2013

Name :

Gelli Venkata Seshaiah

Designation :

Whole-time Director

Address :

2-1-186/1, F 201, Sree Residency, Nallakunta, Hyderabad – 500044, Andhra Pradesh, India

Date of Birth/Age :

30.06.1949

Qualification :

Msc, CAIIB

Date of Appointment :

01.10.2012

DIN No. :

00778048

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	U24232TG2007PLC052901	TRIDENT CHEMPHAR LIMITED	Director	21-02-2007	21-02-2007	-	Active	NO
2	U24231TG2006PLC051148	VERITAZ HEALTHCARE LIMITED	Whole-time director	01-10-2012	06-11-2010	-	Active	NO
3	U24232TG2011PLC076052	STEPS THERAPEUTICS LIMITED	Director	18-08-2011	18-08-2011	-	Active	NO
4	U74999DL2011PLC224400	VAXER PHARMA LIMITED	Director	30-08-2011	30-08-2011	16-01-2014	Active	NO
5	U24232TG2010PTC069638	HYACINTHS PHARMA PRIVATE LIMITED	Director	20-09-2012	29-03-2012	01-11-2013	Active	NO
6	U45209TG2013PLC085417	MAHIRA INFRA AND REALTY LIMITED	Director	18-01-2013	18-01-2013	-	Strike off	NO

Name :

Mr. Subramani Suresh

Designation :

Director

Address :

B7, Sri Pudhuka Apartments, No.56, First Street, Postal Colony, West Mambalam, Chennai – 600060, Tamilnadu, India

Date of Birth/Age :

31.05.1957

Qualification :

BSc

Date of Appointment :

28.09.2011

DIN No. :

02633641

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	Company/ LLP Status	Defaulting status
1	U24232TG2007PLC052901	TRIDENT CHEMPHAR LIMITED	Director	05-12-2013	21-02-2007	Active	NO
2	U24231TG2006PLC051148	VERITAZ HEALTHCARE LIMITED	Director	28-09-2011	06-11-2010	Active	NO

Name :

Sashi Kumaran Parambath

Designation :

Director

Address :

6-3-1219/12/202, Methadist Colony, Begumpet, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

24.08.1967

Qualification :

Graduate

Date of Appointment :

28.09.2011

DIN No. :

02752493

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	Company/ LLP Status	Defaulting status
1	U24232TG2007PLC052901	TRIDENT CHEMPHAR LIMITED	Director	30-11-2009	01-08-2009	Active	NO
2	U24231TG2006PLC051148	VERITAZ HEALTHCARE LIMITED	Director	28-09-2011	06-11-2010	Active	NO

Name :

Mr. Venkata Reddy Arumalla

Designation :

Whole-time Director

Address :

Plot No. 104, Flat No. 102, Jubilee Heavens, Women Co-operative Society, Jubilee Hills, Hyderabad – 500045, Andhra Pradesh, India

Date of Birth/Age :

04.01.1956

Qualification :

Msc

Date of Appointment :

28.09.2011

DIN No. :

01080639

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	U24230TG1984PTC004422	SVS DRUGS AND PHARMACEUTICALS PRIVATE LIMITED	Director	20-03-1995	20-03-1995	-	Active	NO
2	U24239TG1996PLC025371	GENX PHARMA LIMITED	Director	01-04-2009	11-03-1999	24-09-2009	Active	NO
3	U24231TG1998PLC029961	SYMED LABS LIMITED	Director	02-02-2000	02-02-2000	06-09-2007	Active	NO
4	U85110TG2005PTC047502	LANCER LIFE SCIENCES PRIVATE LIMITED	Managing director	12-07-2008	08-04-2008	02-11-2010	Active	YES
5	U24232AP2011PTC073170	SYNERGY REMEDIES PRIVATE LIMITED	Director	10-03-2011	10-03-2011	-	Active	NO
6	U24231TG2006PLC051148	VERITAZ HEALTHCARE LIMITED	Whole-time director	28-09-2011	10-05-2011	-	Active	NO
7	U24232TG2011PLC076052	STEPS THERAPEUTICS LIMITED	Director	18-08-2011	18-08-2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Anand
Designation :	Accountant
Name :	Mr. Krishna Kuamar
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2013

Names of Shareholders	No. of Shares
Penaka Sarath Chandra Reddy	10
Subramani Suresh	10
Gelli Venkata Seshaiah	10
Gorla Madhu	10
Gopala Krishna Rao Kandula	10
K V Murali	10
Trident Chemphar Limited, India	24999940
Total	25000000

As on 26.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer of Pharmaceutical Products, Giving Service to Doctors and Patients.

Products :

Item Code No. (ITC Code)	Product Description
30045034	Fepanil - Liquid
30045034	Lysatone
30042019	Delbi
30045034	Fepanil - Tablets

GENERAL INFORMATION

No. of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]
Bankers :	HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	K Nagaraju and Associates Chartered Accountants
Address :	1 - 8 - 197, Chikkadpally, Hyderabad, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AANFK1375R
Holding Company :	Trident Chemphar Limited, India CIN No.: U24232AP2007PLC052901
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Axis Clinicals Limited CIN No.: U67120AP2007PLC052813

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000,000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25,000,000	Equity Shares	Rs.10/- each	Rs. 250.000 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	250.000	250.000	250.000
(b) Reserves & Surplus	(239.637)	(209.299)	(151.897)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	6.000
Total Shareholders’ Funds (1) + (2)	10.363	40.701	104.103
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	6.528	5.258	2.637
Total Non-current Liabilities (3)	6.528	5.258	2.637
(4) Current Liabilities
(a) Short term borrowings	188.876	98.157	63.340
(b) Trade payables	217.584	144.219	95.906
(c) Other current liabilities	14.778	10.220	0.099
(d) Short-term provisions	1.318	0.938	0.471
Total Current Liabilities (4)	422.556	253.534	159.816
TOTAL	439.447	299.493	266.556
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.427	3.556	4.298
(ii) Intangible Assets	90.442	111.274	130.971
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.060	0.060	0.060
(c) Deferred tax assets (net)	76.875	64.410	39.028
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	169.804	179.300	174.357
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	53.541	38.949	37.277
(c) Trade receivables	172.347	59.578	31.843
(d) Cash and cash equivalents	28.032	9.258	1.445
(e) Short-term loans and advances	15.661	12.372	21.561
(f) Other current assets	0.062	0.036	0.073
Total Current Assets	269.643	120.193	92.199
TOTAL	439.447	299.493	266.556

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	822.633	655.721	411.450
		Other Income	12.387	15.736	14.165
		TOTAL (A)	835.020	671.457	425.615
Less	EXPENSES
		Cost of Materials Consumed	113.417	63.561	18.881
		Purchases of Stock-in-Trade	275.536	252.761	214.843
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(14.075)	8.560	-9.616
		Employees benefits expense	216.071	200.179	114.556
		Other expenses	243.080	196.090	125.512
		TOTAL (B)	834.029	721.151	464.176
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.991	(49.694)	(38.561)
Less	FINANCIAL EXPENSES (D)		22.197	11.446	11.113
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(21.206)	(61.140)	(49.674)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.598	21.644	21.260
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(42.804)	(82.784)	(70.934)
Less	TAX (H)		(12.466)	(25.381)	13.698
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(30.338)	(57.403)	(84.632)
	Earnings / (Loss) Per Share (Rs.)		(1.21)	(2.30)	(3.39)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(3.63)	(8.55)	(19.88)
Net Profit Margin (PBT/Sales)	(%)	(5.20)	(12.62)	(17.24)
Return on Total Assets (PBT/Total Assets}	(%)	(11.81)	(35.22)	(31.18)
Return on Investment (ROI) (PBT/Networth)		(4.13)	(2.03)	(0.68)
Debt Equity Ratio (Total Debt/Networth)		18.23	2.41	0.61
Current Ratio (Current Asset/Current Liability)		0.64	0.47	0.58

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	250.000	250.000	250.000
Reserves & Surplus	(151.897)	(209.299)	(239.637)
Share Application money pending allotment	6.000	0.000	0.000
Net worth	104.103	40.701	10.363
long-term borrowings	0.000	0.000	0.000
Short term borrowings	63.340	98.157	188.876
Total borrowings	63.340	98.157	188.876
Debt/Equity ratio	0.608	2.412	18.226

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)
Sales	411.450	655.721	822.633
		59.368	25.455

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	411.450	655.721	822.633
Profit	(84.632)	(57.403)	(30.338)
	(20.57%)	(8.75%)	(3.69%)

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	No
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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10377311	24/05/2013 *	147,500,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI, MAHARASHTRA - 400013, INDIA	B77309961
2	10055829	11/03/2011 *	50,000,000.00	AXIS BANK LIMITED	6-3-879/B, PULLAREDDI BUILDINGS, GREENLANDS ROAD,  BEGUMPET, HYDERABAD, ANDHRA PRADESH - 500016, INDIA	B10035715

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital loans from banks	96.976	36.157
Intercorporate borrowings	85.000	55.000
Deposits from others	6.900	7.000
Total	188.876	98.157

REVIEW OF OPERATIONS

The company has recorded good volume of sales and higher revenues during the year. The company has reported gross sales for the year at 854.200 Millions which is 27.78% improvement over the previous year. This year also the company has added few new products to the product list like AMIVA, AURACT, MEROGRAM, RXMEF etc., which have contributed to the increase in revenue figures. The company is continuing its efforts on increasing its brand image and catering to new market areas in PAN India. During the year also the company has optimized the sales force to the extent sufficient to reach the budgeted targets fixed for coming few years. Company is reviewing the performance at regular intervals and taking necessary steps to optimize the sales and marketing expenses to increase the bottom line.

FUTURE OUTLOOK

The growth of the company has been exceptionally well with the company gaining ascendency in Indian Pharma market. In this short history, the company has gained rank s-ORG) and is poised to touch newer heights in the months and years to come. The company has designed their therapy offerings to build well established brands like Fepanil, Lysatone, Delbi, Delcon, Acinil, Andial etc. Fepanil-Their Flagship brand is the third largest prescribed paracetamol brand in India and in few cities like Mumbai they are the number one brand.

Products are made available through the retail chain through C&F. There are 23 C&F operating wide pan India. In addition Veritaz has also begun an extensive coverage of evergreen hospitals/Institutions in India through its Hospital Arm – HOSPIN

The years ahead for Veritaz appears to be very bright as they have plans to make Veritaz multidivisional company. The projected turnover for the company this year is around 1000.000 Millions.

FIXED ASSETS

Tangible Assets

Furniture and Fixtures

Vehicles

Office Equipment

Other Equipments

Intangible Assets

Brands and Trade Marks

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.60.45
UK Pound	1	Rs.99.46
Euro	1	Rs.79.46

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	3
--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	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		26

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	--

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