MIRA INFORM REPORT

Report No. :	315606
Report Date :	02.04.2015

IDENTIFICATION DETAILS

Name :	VIRCHOW BIOTECH PRIVATE LIMITED
Registered Office :	Plot No. 4, SV Co-Operative Industrial Estate, IDA, Jeedimetla, Hyderabad – 500 005, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	04.04.2001
Com. Reg. No.:	36-036520
Capital Investment / Paid-up Capital :	Rs. 170.331 Million
CIN No.: [Company Identification No.]	U24210TG2001PTC036520
TIN No.:	36520293990
C S T No.:	HYR/03/1/4162/01-02
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical Products.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 1400000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered good for normal 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 (PARTIAL DETAILS)

Name :	Mr. Naresh
Designation :	Personal Secretary
Contact No.:	91-40-23119481
Date :	01.04.2015

LOCATIONS

Registered Office :	Plot No. 4, SV Co-Operative Industrial Estate, IDA, Jeedimetla, Hyderabad – 500 005, Telangana, India
Tel. No.:	91-40-65452205 / 23096688 / 23098206 / 23800924/23119481
Fax No.:	91-40-23096677 / 23098205
E-Mail :	info@virchows.com accvbpl@rediffmail.com virchowbiotech2001@gmail.com
Website :	http://virchows.com http://virchowbiotech.com/
	Sy No 172, Part Gagillapur (V), Qutubullapur(M,) Ranga Reddy, Hyderabad, Telangana, India
Marketing Office:	Plot No. 319 and 320, 3^rd Floor, Swamy Ayyappa Co-Operative Housing Society, Madhapur, Hyderabad – 500081, Telangana, India
Tel. No.:	91-40-23119481/65894168
Fax No.:	91-40-23119486
E-Mail :	Finance@virchowonline.com

DIRECTORS

As on 27.09.2014

Name :

Mr. Tummuru Muralikrishna Reddy

Designation :

Whole-time director

Address :

Plot No.321/A26, Road No. 25, Jubilee Hills, Hyderabad – 500055, Telangana, India

Date of Birth/Age :

05.01.1960

Date of Appointment :

01.04.2013

DIN No.:

02469013

Pan No.:

AEVPT6906K

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	U24210TG2001PTC036520	VIRCHOW BIOTECH PRIVATE LIMITED	Whole-time director	01-04-13	22-11-01	-	Active	NO

Name :

Mr. Hemanth Nandigala

Designation :

Director

Address :

Plot No. 550, Road No. 19, Jubilee Hills, Hyderabad – 500 055, Telangana, India

Date of Birth/Age :

02.01.1974

Date of Appointment :

04.04.2001

DIN No.:

01561731

Pan No.:

ACAPN0908Q

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	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Director	29-01-99	29-01-99	-	Active	NO
2	U24210TG2001PTC036520	VIRCHOW BIOTECH PRIVATE LIMITED	Director	04-04-01	04-04-01	-	Active	NO
3	U24230MH2007PTC176048	VIRCHOW HEALTHCARE PRIVATE LIMITED	Director	20-11-07	20-11-07	-	Active	NO
4	U65910TG1988PTC008596	VIRCHOW CHEMICALS PVT. LTD.	Director	30-09-11	01-04-11	-	Active	NO
5	U85195TG1988PLC008172	SARACA LABORATORIES LIMITED	Additional director	04-11-14	04-11-14	-	Active	NO

Name :

Mr. Nandigala Venkata Reddy

Designation :

Director

Address :

No. 550, Road No. 19, Jubilee Hills, Hyderabad – 500 033, Telangana, India

Date of Birth/Age :

01.07.1943

Date of Appointment :

04.04.2001

DIN No.:

01740424

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	U65910TG1980PTC002612	NANDINI FINANCE PVT LTD	Director	10-11-86	10-11-86	01-04-13	Active	NO
2	U65910TG1985PTC005769	LVSR LEASING AND FINANCE PRIVATE LIMITED	Director	05-08-87	05-08-87	-	Active	NO
3	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Managing director	01-06-11	30-09-96	-	Active	NO
4	U24210TG2001PTC036520	VIRCHOW BIOTECH PRIVATE LIMITED	Director	04-04-01	04-04-01	-	Active	NO
5	U74210TG1974PTC001733	IMEX ENGINEERING CO PVT LTD	Director	18-10-01	18-10-01	-	Active	NO
6	U23209TG2003PTC041101	VIRCHOW PETROCHEMICAL PRIVATE LIMITED	Director	04-06-03	04-06-03	-	Active	NO
7	U24116TG1991PLC012314	ANDHRA ORGANICS LIMITED	Director	08-09-04	08-09-04	-	Active	NO
8	U72300TG2007PTC055671	MAX INFRATECH (INDIA) PRIVATE LIMITED (PART IX)	Director	25-09-07	25-09-07	03-11-07	Amalgamated	NO
9	U24239TG2004PLC042949	VIRCHOW DRUGS LIMITED	Director	29-09-09	31-03-09	-	Active	NO

Name :

Mr. Mundla Narayana Reddy

Designation :

Director

Address :

No. 15-A, Road No. 2, Jubilee Hills, Hyderabad – 500 033, Telangana, India

Date of Birth/Age :

01.06.1951

Date of Appointment :

04.04.2001

DIN No.:

00064392

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	U24232TG1982PLC003368	VIRCHOW LABORATORES LIMITED.	Managing director	01-06-11	20-01-82	-	Active	NO
2	U24210TG2001PTC036520	VIRCHOW BIOTECH PRIVATE LIMITED	Director	04-04-01	04-04-01	-	Active	NO
3	U74210TG1974PTC001733	IMEX ENGINEERING CO PVT LTD	Director	18-10-01	18-10-01	-	Active	NO
4	U24230TG2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15-05-03	15-05-03	-	Active	NO
5	U23209TG2003PTC041101	VIRCHOW PETROCHEMICAL PRIVATE LIMITED	Director	04-06-03	04-06-03	-	Active	NO
6	U24239TG2004PLC042949	VIRCHOW DRUGS LIMITED	Director	25-03-04	25-03-04	-	Active	NO
7	U24116TG1991PLC012314	ANDHRA ORGANICS LIMITED	Director	08-09-04	08-09-04	-	Active	NO
8	U24110TG2005PTC046609	EMMENNAR CHEM PRIVATE LIMITED	Director	22-06-05	22-06-05	-	Amalgamated	NO
9	U45200TG2005NPL045814	HYDERABAD PHARMA INFRASTRUCTURE AND TECHNOLOGIES	Director	21-12-06	21-12-06	17-01-11	Active	NO
10	U24230MH2007PTC176048	VIRCHOW HEALTHCARE PRIVATE LIMITED	Director	20-11-07	20-11-07	-	Active	NO
11	U24299TG2002PTC039653	EMMENNAR PHARMA PRIVATE LIMITED	Director	10-03-08	10-03-08	01-10-13	Active	NO
12	U74999TG2007PLC052432	SV'S REMEDIES LIMITED	Director	29-09-12	16-05-12	-	Amalgamated	NO

KEY EXECUTIVE

Name :	Mr. Naresh
Designation :	Personal Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2014

Names of Shareholders	No. of Shares
M Sudha	884270
M Narayana Reddy	956455
M Madhu Vushnu	969636
M Lakshmi Prasanna	340759
N Venkata Reddy	1230039
N Hemanth	897641
Prasath N	825125
Tummuri Teena	113150
Murali Krishna Reddy Tummuru	1500724
Usha Kurre	842241
Rajesh R Tummuru	77620
Meena Tummuru	49212
Virchow Labs Limited, India	8346210
Total	17033082

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2014

Category	Percentage
Bodies corporate	49.00
Directors or relatives of Directors	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceutical Products.

Products :

Item Code No.	Product Description
30049015	Biotech Product

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Products:

Pharmaceutical Products

Country:

• Pakistan
• Italy

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

Bank Name	Canara Bank
Branch	Somajiguda Branch, Hyderabad, Andhra Pradesh, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term loans from others	81.238	99.947
Total	81.238	99.947

Financial institute:	Department of Biotechnology, Block 2, CGO Complex, Lodhi Road, New Delhi - 110003, Delhi, India Technology Dev. Board, Technology Bhavan, New Mehrauli Road, New Delhi - 110016, Delhi, India
Auditors :
Name :	Ramana Reddy and Associates Chartered Accountants
Address :	Unit No 406 4^th, Floor Ashoka Capital Opposite Kbr Park Road, No 2 Banjara Hills Hyderabad – 500034, Telangana, India
PAN N Income-tax PAN of auditor or auditor's firm :	AADFA6113F
Memberships :	--
Collaborators :	--
Associated Companies controlled by key management personnel / relatives who are substantially interested:	Virchow Laboratories Limited, India [U24232TG1982PLC003368] Virchow Health Care Private Limited, India [U24230MH2007PTC176048]

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
20500000	Equity Shares	Rs.10/- each	Rs. 205.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17033082	Equity Shares	Rs.10/- each	Rs. 170.331 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	170.331	151.391	151.391
(b) Reserves & Surplus	308.243	178.405	101.768
(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)	478.574	329.796	253.159
(3) Non-Current Liabilities
(a) long-term borrowings	115.583	142.259	153.734
(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	0.000	0.000	0.000
Total Non-current Liabilities (3)	115.583	142.259	153.734
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	10.406	4.630	6.982
(c) Other current liabilities	73.746	70.283	69.911
(d) Short-term provisions	25.478	17.621	14.026
Total Current Liabilities (4)	109.630	92.534	90.919
TOTAL	703.787	564.589	497.812
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	418.891	321.153	222.318
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	8.467	21.767	10.311
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	49.133	46.379	39.930
(d) Long-term Loan and Advances	24.501	14.194	72.369
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	500.992	403.493	344.928
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	24.965	20.888	16.100
(c) Trade receivables	60.351	54.158	18.461
(d) Cash and cash equivalents	80.083	49.158	99.769
(e) Short-term loans and advances	31.348	26.426	14.637
(f) Other current assets	6.048	10.466	3.917
Total Current Assets	202.795	161.096	152.884
TOTAL	703.787	564.589	497.812

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Turnover	395.341	270.333	268.883
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
Less	EXPENSES	NA	NA	NA
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	158.799	108.066	86.463
Less	FINANCIAL EXPENSES	3.579	4.084	5.395
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	155.220	103.982	81.068
Less/ Add	DEPRECIATION/ AMORTISATION	33.719	16.172	12.924
	PROFIT/ (LOSS) BEFORE TAX	121.501	87.810	68.144
Less	TAX	22.724	11.172	10.701
	PROFIT/ (LOSS) AFTER TAX	98.777	76.638	57.443
	IMPORTS
	Raw Materials	2.711	1.743	NA
	Capital Goods	15.242	11.092	NA
	TOTAL IMPORTS	17.953	12.835	NA
	Earnings / (Loss) Per Share (Rs.)	6.52	5.06	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	18.80	17.69	15.23
Return on Investment (ROI) (PBT/Networth)		0.25	0.27	0.27
Debt Equity Ratio (Total Debt /Networth)		0.24	0.43	0.61
Current Ratio (Current Asset/Current Liability)		1.85	1.74	1.68

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	151.391	151.391	170.331
Reserves & Surplus	101.768	178.405	308.243
Net worth	253.159	329.796	478.574
long-term borrowings	153.734	142.259	115.583
Short term borrowings	0.000	0.000	0.000
Total borrowings	153.734	142.259	115.583
Debt/Equity ratio	0.607	0.431	0.242

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Turnover	268.883	270.333	395.341
		0.539	46.242

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Turnover	268.883	270.333	395.341
Profit	57.443	76.638	98.777
	21.36%	28.35%	24.99%

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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS & FINANCIAL RESULTS:

During the year under report the company has achieved a turnover of Rs. 395.341 Million and earned a net profit of Rs. 121.501 Million after providing depreciation of Rs. 33.719 Million and financial charges of Rs. 3.579 Million. The Directors are hopeful to project better financial results in the forthcoming year.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term loans from others	34.345	42.312
Total	34.345	42.312

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10294214	16/05/2011	40,000,000.00	CANARA BANK	CORPORATE BRANCH ,, S.P.ROAD, SECUNDERABAD, ANDHR A PRADESH - 500003, INDIA	B15826035
2	10156930	19/01/2011 *	52,900,000.00	DEPARTMENT OF BIOTECHNOLOGY	BLOCK 2, CGO COMPLEX, LODHI ROAD, NEW DELHI, DELH I - 110003, INDIA	B05885363

* Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2014	31.03.2013
In respect of Bank Guarantees	0.567	0.567

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments
• Other equipments

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.62.59
UK Pound	1	Rs.92.46
Euro	1	Rs.67.51

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	RAS
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	6
--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		46

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.