MIRA INFORM REPORT

Report Date :

10.09.2014

IDENTIFICATION DETAILS

Name :	PENTOKEY ORGANY (INDIA) LIMITED
Registered Office :	Somaiya Bhavan, 45/47, M. G. Road, Fort, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	26.11.1986
Com. Reg. No.:	11-041681
Capital Investment / Paid-up Capital :	Rs.62.726 Millions
CIN No.: [Company Identification No.]	L24116MH1986PLC041681
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in manufacture of Organic Chemicals namely Acetic Acid, Ethyl Acetate, Acetaldehyde and Butyl Acetate.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record The rating reflects company’s moderate financial risk profile marked by loss that company has incurred from its operational activities and intense competition in the chemical industry. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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.

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 tat 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	07.10.2013
Rating Agency Name	CARE
Rating	Short term bank facilities: A3
Rating Explanation	Moderate degree of safety and high credit risk.
Date	07.10.2013

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 DECLIEND

MANAGEMENT NON – COOPERATIVE (91-22-61702100)

LOCATIONS

Registered Office / Head Office :	Somaiya Bhavan, 45/47, M. G. Road, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-61702100
Fax No.:	91-22-22047297
E-Mail :	Gunware.swarna@somaiya.com
Website :	www.pentokey.com
Factory:	D-1/1, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, India
Tel. No.:	91-2356-273078
Fax No.:	91-2356-272119

DIRECTORS

As on 31.03.2014

Name :	Mr. Rajendra V. Shah
Designation :	Chairman (upto 29.05.2014)
Name :	Mr. Devendra J. Shrimanker
Designation :	Non - Executive Independent Director
Name :	Mr. S. Mohan
Designation :	Whole-time Director
Name :	Dr. Sampatraj B. Chandalia
Designation :	Non – Executive
Name :	Mr. Girish M. Kajaria
Designation :	Non - Executive Director
Name :	Mr. Shyam C. Balsekar
Designation :	Non - Executive Independent Director

KEY EXECUTIVES

Name :	Ms. Swarna Gunware
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	115717	1.84
Bodies Corporate	4570573	72.87
Sub Total	4686290	74.71
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4686290	74.71
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4000	0.06
Financial Institutions / Banks	140817	2.24
Sub Total	144817	2.31
(2) Non-Institutions
Bodies Corporate	27938	0.45
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1186174	18.91
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	227410	3.63
Sub Total	1441522	22.98
Total Public shareholding (B)	1586339	25.29
Total (A)+(B)	6272629	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	6272629	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacture of Organic Chemicals namely Acetic Acid, Ethyl Acetate, Acetaldehyde and Butyl Acetate.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Indian Overseas Bank

Facilities :

Secured Loan

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

Term Loan From Bank

6.182

14.932

Car Loans From Bank

0.000

0.408

Short-term borrowings

Working Capital Loans from Bank

86.010

88.792

Bill Discounting with bank

0.000

3.012

Packing Credit

32.372

0.000

Total

124.564

107.144

Note:

Nature of Security and Terms of Repayment for Long Term Secured Borrowings

Nature of Security	Terms
Long-term Borrowings
Term Loan Amounting to 14.932 Millions (P.Y. 23.682 Millions) Secured Against First Charge of Hypothecation of Assets acquired out of the Term Loan and collaterally secured by first charge on the company’s fixed assets at D-1/1, MIDC, Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra	Repayable in 16 quarterly installments commencing from June, 2012. Rate of Interest Base Rate + 3.75% (P.Y. Base Rate + 3.75%)
Short-term borrowings
Working Capital Loan Fully Secured Against Hypothecation of Stocks and Book Debts	Rate of Interest Base rate + 3.00% (P.Y. Base Rate + 3.00%)
Packing Credit Fully Secured Against Hypothecation of Stocks	Rate of Interest Base rate + 0.75% (P.Y. Base Rate + 0.75 %)

Banking Relations :
Auditors :
Name :	Desai Saksena and Associates Chartered Accountants
Cost Auditors:	B. J. D. Nanabhoy and Company Cost Accountants
Associate Concerns:	· Sakarwadi Trading Company Private Limited · Lakshmiwadi Mines and Minerals Private Limited · Somaiya Agencies Private Limited · Jasmine Trading Company Private Limited · Godavari Biorefineries Limited. · K. J. Somaiya and Sons Private Limited · Somaiya Properties and Investments Private Limited (Formerly The Godavari Sugar Mills Private Limited.) · The Book Centre Limited.

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4,00,00,000	Equity Shares	Rs.10/- each	Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
62,72,629	Equity Shares	Rs.10/- each	Rs. 62.726 Millions

NOTE:

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars	31.03.2014
Equity Shares of 10/- each fully paid up :	No. of Shares	Rs. In Millions
Shares outstanding at the beginning of the year	62,72,629	62.726
Shares issued during the year
Shares bought back during the year
Shares outstanding at the end of the year	62,72,629	62.726

Terms / Rights attached to Equity Shares :

The Company has only one class of shares referred to as Equity Shares having a par value of 10/-. Each holder of Equity Shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2014, the amount of per share proposed final dividend recognised as distributions to equity shareholders was Re. NIL per share ( P.Y. Re. 1/- ) In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts.

The distribution will be in proportion to the number of Equity Shares held by the shareholders.

Shareholders holding more than 5% of Equity Shares in the Company

Particulars	31.03.2014
	No. of Shares	% Holding
Sakarwadi Trading Company Private Limited	29,45,573	46.96
Somaiya Agencies Private Limited	10,00,000	15.94
Jasmine Trading Company Private Limited	6,00,000	9.57

As per of the Company, including its register of shareholders/members and other declaration received from shareholders, regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

The Company has issued Bonus Shares NIL (Previous Year 0.638 Million) by capitalisation of the reserves.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	62.726	62.726	56.343
(b) Reserves & Surplus	32.267	53.508	28.041
(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)	94.993	116.234	84.384
(3) Non-Current Liabilities
(a) long-term borrowings	100.182	120.340	59.542
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	1.711
(d) long-term provisions	3.575	3.033	2.957
Total Non-current Liabilities (3)	103.757	123.373	64.210
(4) Current Liabilities
(a) Short term borrowings	138.382	102.904	66.377
(b) Trade payables	131.037	142.846	59.108
(c) Other current liabilities	44.250	35.695	27.823
(d) Short-term provisions	0.444	7.350	6.609
Total Current Liabilities (4)	314.113	288.795	159.917
TOTAL	512.863	528.402	308.511
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	99.258	104.672	109.116
(ii) Intangible Assets	0.008	0.015	0.022
(iii) Capital work-in-progress	0.851	0.360	3.573
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.006	0.006	0.006
(c) Deferred tax assets (net)	16.385	16.385	16.385
(d) Long-term Loan and Advances	72.921	53.807	42.407
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	189.429	175.245	171.509
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	129.629	118.725	67.854
(c) Trade receivables	100.504	73.358	16.731
(d) Cash and cash equivalents	27.045	9.658	9.900
(e) Short-term loans and advances	66.104	151.327	42.454
(f) Other current assets	0.152	0.089	0.063
Total Current Assets	323.434	353.157	137.002
TOTAL	512.863	528.402	308.511

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1233.712	1151.532	971.501
	Other Income	5.202	2.275	1.522
	TOTAL (A)	1238.914	1153.807	973.023
Less	EXPENSES
	Cost of Materials Consumed	1018.673	935.355	794.421
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(27.108)	(25.051)	(6.116)
	Employees benefits expense	26.418	22.814	19.324
	Other expenses	202.738	143.282	113.614
	TOTAL (B)	1220.721	1076.400	921.243
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	18.193	77.407	51.780
Less	FINANCIAL EXPENSES (D)	31.495	26.439	13.868
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(13.302)	50.968	37.912
Less/ Add	DEPRECIATION/ AMORTISATION (F)	7.939	11.827	13.417
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(21.241)	39.141	24.495
Less	TAX (I)	0.000	0.000	(4.056)
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(21.241)	39.141	28.551
	IMPORTS
	Import of Goods on Carriage Insurance Freight(CIF) basis	141.418	93.991	102.675
	Earnings / (Loss) Per Share (Rs.)	(3.39)	6.73	5.07

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	(1.71)	3.39	2.93
Net Profit Margin (PBT/Sales)	(%)	(1.72)	3.40	2.52
Return on Total Assets (PBT/Total Assets}	(%)	(4.29)	7.65	8.49
Return on Investment (ROI) (PBT/Networth)		(0.22)	0.34	0.29
Debt Equity Ratio (Total Debt /Networth)		2.51	1.92	1.49
Current Ratio (Current Asset/Current Liability)		1.03	1.22	0.86

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	56.343	62.726	62.726
Reserves & Surplus	28.041	53.508	32.267
Net worth	84.384	116.234	94.993
long-term borrowings	59.542	120.340	100.182
Short term borrowings	66.377	102.904	138.382
Total borrowings	125.919	223.244	238.564
Debt/Equity ratio	1.492	1.921	2.511

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	971.501	1151.532	1233.712
		18.531	7.137

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	971.501	1151.532	1233.712
Profit	28.551	39.141	(21.241)
	2.94%	3.40%	(1.72%)

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	No
10]	Designation of contact person	No
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

FINANCIAL PERFORMANCE:

The Company's Gross income has been increased by 7.38% to 1238.914 Millions as against the Gross income of 1153.807 Millions in the corresponding previous year. The Company has posted a profit of 18.193 Millions before Interest and Depreciation as compared to 77.407 Millions in the corresponding previous year. The Company incurred Net Loss of 21.241 Millions during the year as against profit of 39.141 Millions. The reason for the loss is mainly the increase in raw material cost and poor realisation of the finished Product Ethyl Acetate. The Company is looking out for avenues to increase the production capacity and exploring opportunities to obtain the raw material at cheaper rates.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
From Related Party	79.000	90.000
From Other Parties	15.000	15.000
Short-term borrowings
From Other Party	20.000	11.100
Total	114.000	116.100

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10291393	01/07/2014 *	292,500,000.00	INDIAN OVERSEAS BANK	FORT BRANCH, TAMARIND HOUSE, 30 AND 32, TAMARIND LA NE, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	C11532355

* Date of charge modification

CONTINGENT LIABILITIES

i. The State Excise Department, Government of Maharashtra has demanded 10.324 Millions for Transportation fees / administration charges for purchase of Special Denatured Spirit (S.D.S.) for the period 1st April, 2002 to 31st March, 2007. The Company has along with other manufacturers using industrial alcohol jointly contested the said demand in Hon'ble Bombay High Court.

ii. Custom Duty Payable under advance License pending fulfillment of export obligation as on 31st March, 2014 13.744 Millions

iii. Sales Tax Demand of 3.937 Millions under BST Act and 15.459 Millions under CST Act for the year 2003-04 against which the Company has preferred appeals before Maharashtra Sales Tax Tribunal.

iv. Sales Tax Demand of 0.781 Million under BST Act for the year 1994-95, 3.384 Millions under BST Act and 5.164 Millions under CST Act for the year 2004-05 against which the Company has preferred appeals before Joint Commissioner of Sales Tax (Appeals) Kolhapur.

v. Disputed amount of Penalty U/S 11AC of Central Excise Act,1944 for the period 2008-09 to 2010-11 0.425 Million.

FIXED ASSETS

Tangible Assets

· Land (Leasehold)

· Factory Building

· Plant and Machinery

· Electrical Installation

· Office Equipments

· Computers

· Furniture and Fixtures

· Vehicles

Intangible Assets

· Computer Software

· Patents and Trade Mark

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.60.43
UK Pound	1	Rs.97.25
Euro	1	Rs.77.93

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.