MIRA INFORM REPORT

Report Date :

13.09.2014

IDENTIFICATION DETAILS

Name :	JAMES WALKER INMARCO INDUSTRIES PRIVATE LIMITED
Registered Office :	104, Gayatri Commercial Complex, Behind Mittal Industrial Estate, Andheri-Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.02.2011
Com. Reg. No.:	11-214165
Capital Investment / Paid-up Capital :	Rs.50.100 Millions
CIN No.: [Company Identification No.]	U24233MH2011PTC214165
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ15783F
PAN No.: [Permanent Account No.]	AACCJ5371Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, exporter and supplier of hydraulic seals, rotary seals, expansion joints, engineering goods, equipment, industrial automation.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 510000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company’s sound financial risk profile marked by fair liquidity positions and healthy profitability levels of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered 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

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 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	CRISIL
Rating	SE 1A
Rating Explanation	High financial strength and highest performance capability
Date	January 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.

LOCATIONS

Registered Office / Corporate Office :	104, Gayatri commercial Complex, Behind Mittal Industrial Estate, Andheri-Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-40808155 / 40808000 / 28506220 / 28501003 / 40808080 / 28509991
Mobile No.:	91-8879797011 (Mr. Santosh Singh)
Fax No.:	91-22-40808150 / 28596220
E-Mail :	info@inmarco.com chetan@inmarco.com santosh@jwinmarco.com info@jwinmarco.com
Website :	www.jwinmarco.com
Area :	Owned
Mumbai Trading Division :	257, Sanjay Building No 5-B, Mittal Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashta, India
Tel. No.:	91-22-40808151
Fax No.:	91-22-40808150
E-Mail :	tradeinfo@jwinmarco.com
Dadra Manufacturing Division :	Plot No 140, Waghdhara Road,Dadra Village, Dadra and Nagar Haveli Dadra (UT) – 396230, India
Tel. No.:	91-260-2668300/ 2668331
Fax No.:	91-260-2668293
E-Mail :	indadra@jwinmarco.com
Regional Office :	Located at: · Chennai · Orissa · Vadodara

DIRECTORS

As on 19.08.2013

Name :

Mr. Rasiklal Mansukhlal Doshi

Designation :

Managing Director

Address :

Flat No.102, Nippon – 1, Behind Kings Hotel, Juhu Tara Road, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

14.07.1929

Date of Appointment :

03.04.2012

PAN NO.:

AACPD6256B

DIN No.:

00239580

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	U24295MH1986PTC039524	INMARCO INDUSTRIES PRIVATE LIMITED	Managing director	10/04/1986	10/04/1986	-	Active	NO
2	L25206DD1993PLC001470	PRIMA PLASTICS LIMITED	Director	18/06/1996	18/06/1996	-	Active	NO
3	U74999MH2001PTC131306	JAMES WALKER INDIA PRIVATE LIMITED	Director	20/03/2001	20/03/2001	-	Strike off	NO
4	U74999MH2005PTC156631	INMAROC POWERSEAL PRIVATE LIMITED	Director	10/10/2005	10/10/2005	-	Strike off	NO
5	U29199MH2006PTC162782	INMARCO-TREM SEALS PRIVATE LIMITED	Managing director	22/06/2006	22/06/2006	-	Active	NO
6	U75220MH2005PTC158392	VERSEIDAG INDUTEX PRIVATE LIMITED	Director	23/02/2007	23/02/2007	-	Strike off	NO
7	U29190MH2008PTC178246	AISA AUTOMATION AND ROBOTICS PRIVATE LIMITED	Director	25/01/2008	25/01/2008	-	Active	NO
8	U51900MH2008PTC187326	INMARCO UNIVERSAL GASKETS PRIVATE LIMITED	Director	07/10/2008	07/10/2008	-	Active	NO
9	U24233MH2011PTC214165	JAMES WALKER INMARCO INDUSTRIES PRIVATE LIMITED	Managing director	03/04/2012	28/02/2011	-	Active	NO

Name :

Mr. Chetan Rasiklal Doshi

Designation :

Director

Address :

Flat No.102, Nippon – 1, Behind Kings Hotel, Juhu Tara Road, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

03.11.1968

Date of Appointment :

28.02.2011

PAN No.:

AAHPD5448C

DIN No.:

00223199

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	U24295MH1986PTC039524	INMARCO INDUSTRIES PRIVATE LIMITED	Director	06/02/1992	06/02/1992	-	Active	NO
2	U74999MH2001PTC131306	JAMES WALKER INDIA PRIVATE LIMITED	Director	20/03/2001	20/03/2001	-	Strike off	NO
3	U74999MH2005PTC156631	INMAROC POWERSEAL PRIVATE LIMITED	Director	10/10/2005	10/10/2005	-	Strike off	NO
4	U75220MH2005PTC158392	VERSEIDAG INDUTEX PRIVATE LIMITED	Director	28/12/2005	28/12/2005	-	Strike off	NO
5	U29199MH2006PTC162782	Inmarco-Trem Seals Private Limited	Director	22/06/2006	22/06/2006	-	Active	NO
6	U29190MH2008PTC178246	AISA AUTOMATION AND ROBOTICS PRIVATE LIMITED	Director	25/01/2008	25/01/2008	-	Active	NO
7	U51900MH2008PTC187326	INMARCO UNIVERSAL GASKETS PRIVATE LIMITED	Director	07/10/2008	07/10/2008	-	Active	NO
8	U24233MH2011PTC214165	JAMES WALKER INMARCO INDUSTRIES PRIVATE LIMITED	Director	28/02/2011	28/02/2011	-	Active	NO

Name :

Mrs. Parul Chetan Doshi

Designation :

Director

Address :

Flat No.102, Nippon – 1, Behind Kings Hotel, Juhu Tara Road, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

12.03.1972

Date of Appointment :

13.08.2012

PAN No.:

AAHPD5531C

DIN No.:

01676440

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	U24295MH1986PTC039524	INMARCO INDUSTRIES PRIVATE LIMITED	Director	06/02/1993	06/02/1993	-	Active	NO
2	U24233MH2011PTC214165	JAMES WALKER INMARCO INDUSTRIES PRIVATE LIMITED	Director	13/08/2012	03/02/2012	-	Active	NO

Name :

Nicholas Ian White

Designation :

Nominee Director

Address :

The Barn, Rectory Farm, Lightwater, GU185SH, United Kingdom

Date of Birth/Age :

02.07.1970

Date of Appointment :

03.04.2012

DIN No.:

05170115

Name :

Nicholas Siong Sun Low Chuen Hueng

Designation :

Nominee Director

Address :

38, Woodcote Hurst, KT 18 7DT ,England EPSOM

Date of Birth/Age :

14.09.1967

Date of Appointment :

05.04.2013

DIN No.:

06545748

KEY EXECUTIVES

Name :	Mr. Santosh Singh
Designation :	Company Secretary
Date of Appointment :	06.09.2012
PAN No.:	ATOPS1714Q

MAJOR SHAREHOLDERS

As on 19.08.2013

Names of Shareholders	No. of Shares	% of Holding
Rasiklal Mansukhlal Doshi	555839	11.09
Chetan Rasiklal Doshi	1289515	25.74
Parul Chetan Doshi	609546	12.17
James Walker Holding BV, Netherland	2555100	51.00
Total	5010000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 19.08.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	51.00
Directors or relatives of Directors	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, exporter and supplier of hydraulic seals, rotary seals, expansion joints, engineering goods, equipment, industrial automation.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

· HDFC Bank Limited, Marol Branch, Andheri (East), Mumbai, Maharashtra, India

· Bharat Co-Operative Bank Limited

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Deferred payment liabilities	1.421	0.594
Short Term Borrowings
Working capital loans from banks	35.823	20.739
Deferred payment for acquisition of fixed assets	1.029	0.802
Total	38.273	22.135

Banking Relations :	--
Auditors :
Name :	N. J. Zeveri and Company Chartered Accountant
Address :	Premise No.1, Chetan Kunj, Ground Floor, N P Thakkar Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India
Tel No.:	91-22-32477726
Fax No.:	91-22-26187150
Email :	njzaverico@yahoo.com
PAN No.:	AAAPZ0988J
Holding Company :	· James Walker Holding BV, Netherland
Associate :	· James Walker and Company
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Inmarco Universal Gaskets Private Limited CIN No.: U51900MH2008PTC187326 · Inmarco FZC Sharjah · Inmarco-Trem Seals Private Limited CIN No.: U29199MH2006PTC162782 · Indian Fluid Sealing Products Private Limited CIN No.: U14295MH2008PTC178130 · Aisa Automation and Robotics Private Limited CIN No.: U29190MH2008PTC178246 · Inmarco FZC

CAPITAL STRUCTURE

As on 19.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs.10/- each	Rs.55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5010000	Equity Shares	Rs.10/- each	Rs.50.100 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	50.100	50.100	0.100
(b) Reserves & Surplus	78.469	60.721	(0.483)
(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)	128.569	110.821	(0.383)
(3) Non-Current Liabilities
(a) long-term borrowings	32.828	20.594	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	1.239	2.773	0.000
(d) long-term provisions	6.296	4.553	0.000
Total Non-current Liabilities (3)	40.363	27.920	0.000
(4) Current Liabilities
(a) Short term borrowings	38.324	34.453	0.459
(b) Trade payables	21.722	42.442	0.024
(c) Other current liabilities	52.802	3.876	0.000
(d) Short-term provisions	29.306	22.063	0.000
Total Current Liabilities (4)	142.154	102.834	0.483
TOTAL	311.086	241.575	0.100
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	90.410	79.127	0.000
(ii) Intangible Assets	0.809	0.495	0.000
(iii) Capital work-in-progress	0.644	0.140	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.012	0.012	0.000
(c) Deferred tax assets (net)	0.932	0.075	0.000
(d) Long-term Loan and Advances	2.736	2.576	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	95.543	82.425	0.000
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	109.855	65.025	0.000
(c) Trade receivables	78.718	83.117	0.000
(d) Cash and cash equivalents	16.269	1.504	0.100
(e) Short-term loans and advances	10.701	9.504	0.000
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	215.543	159.150	0.100
TOTAL	311.086	241.575	0.100

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		388.213	278.664	NA
		Other Income		NA	NA	NA
		TOTAL		NA	NA	NA
	EXPENSES			NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			NA	57.513	(0.483)
Less	DEPRECIATION/ AMORTISATION			NA	9.901	0.000
	PROFIT/(LOSS) BEFORE TAX			NA	47.612	(0.483)
Less	TAX			NA	19.006	0.000
	PROFIT/(LOSS) AFTER TAX			47.417	28.606	(0.483)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			7.908	(0.483)	0.000
Less	APPROPRIATIONS
			Transfer to General Reserve		16.533	0.000
			Dividend		2.682	0.000
			Tax on Dividend		1.000	0.000
	BALANCE CARRIED TO THE B/S			NA	7.908	(0.483)
	EARNINGS IN FOREIGN CURRENCY
			FOB Value of Export of goods	114.742	31.989	NA
			Agency Commission	20.304	18.600	NA
	TOTAL EARNINGS			135.046	50.589	NA
	Earnings Per Share (Rs.)			9.46	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	NA	17.09	NA
Return on Total Assets (PBT/Total Assets}	(%)	NA	19.73	(483.00)
Return on Investment (ROI) (PBT/Networth)		NA	0.43	1.26
Debt Equity Ratio (Total Debt /Networth)		0.55	0.50	(1.20)
Current Ratio (Current Asset/Current Liability)		1.52	1.55	0.21

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	0.100	50.100	50.100
Reserves & Surplus	(0.483)	60.721	78.469
Net worth	(0.383)	110.821	128.569
long-term borrowings	0.000	20.594	32.828
Short term borrowings	0.459	34.453	38.324
Total borrowings	0.459	55.047	71.152
Debt/Equity ratio	(1.198)	0.497	0.553

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	278.664	388.213
		39.312

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	278.664	388.213
Profit	28.606	47.417
	10.27%	12.21%

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 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)	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
Loans and advances from related parties	31.407	20.000
Short Term Borrowings
Loans and advances from related parties	1.472	12.912
Total	32.879	32.912

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10419155	29/10/2013 *	65,000,000.00	HDFC BANK LIMITED	HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	B88264312

*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 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.60.92
UK Pound	1	Rs.98.66
Euro	1	Rs.78.64

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	5
--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		44

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.