MIRA INFORM REPORT

Report No. :	314886
Report Date :	07.04.2015

IDENTIFICATION DETAILS

Name :	CONTINENTAL HOSPITALS LIMITED
Registered Office :	8-2-293 / 82 / A / 1292, Road No. 65, Jubilee Hills, Hyderabad - 500033, Telangana
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.01.2007
Com. Reg. No.:	36-052283
Capital Investment / Paid-up Capital :	Rs. 164.608 Million
CIN No.: [Company Identification No.]	U85110TG2007PLC052283
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	HYDC03212G
PAN No.: [Permanent Account No.]	AADCC0226G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing healthcare services.
No. of Employees :	Information declined by the 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 2000000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. Management has failed to fle its financial record with government department for the year 2014. Further as per registrar of companies the date of balace sheet (i.e. financial file) is shown as 31.03.2013 but the document related to the financial for the 2013 are not available from any source. Our executive has contacted the subject company and had word with Mr. Vijay, but he has dinied to disclose any information to us. As per the status shown in the registrar of companies business appears to be active. Payments are reported to be unknown. The company can be considered for business dealings with great 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 – 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	ICRA
Rating	Long Term Fund Based Limits (Suspended) = BB
Rating Explanation	Inadequate-credit-quality and high credit risk.
Date	February 2013

Reason for suspension : Absence of requisite information.

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 DENIED

Management non –cooperative

LOCATIONS

Registered Office :	8-2-293 / 82 / A / 1292, Road No. 65, Jubilee Hills, Hyderabad - 500033, Telangana, India
Tel. No. :	Not Available
Fax No. :	Not Available
E-Mail :	ravadacs@yahoo.in
Website :	www.continentalhospitals.com
Corporate Office :	Plot No.1292, Road No.65, Jubliee Hills, Hyderabad – 500033, Andhra Pradesh, India
Tel. No. :	91-40-23542395 / 40172654 / 42006532
Fax No. :	91-40-23542393.
Hospital Address:	Plot No.3, Road No.2, IT and Financial Dist, Nanakramguda, Gachibowli, Hyderabad - 500035, Andhra Pradesh, India
Tel. No. :	91-40-67229999

DIRECTORS

AS ON 30.09.2013

Name :

Thota Gurunath Reddy

Designation :

Director

Address :

Plot No. 1292, Road No. 65, Jubli Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

21.01.1957

Date of Appointment :

06.01.2007

DIN No.:

01736864

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	U74140TN2003PTC051689	CELER SOFT SERVICES PRIVATE LIMITED	Director	30/09/2003	30/09/2003	-	Active	NO
2	U85110TG2007PLC052283	CONTINENTAL HOSPITALS LIMITED	Director	06/01/2007	06/01/2007	-	Active	NO
3	U85110TG2007PTC052797	CONTINENTAL SURGERY CENTER PRIVATE LIMITED	Director	17/02/2007	17/02/2007	-	Active	NO
4	U65993TG2007PTC054367	PARADIGM HOLDINGS PRIVATE LIMITED	Director	08/06/2007	08/06/2007	-	Active	NO
5	U74999TG2007PTC055606	PARADIGM CORPORATION PRIVATE LIMITED	Director	20/09/2007	20/09/2007	-	Active	NO
6	U85110TG2013PTC089075	CONTINENTAL INSTITUTE OF BIO MEDICAL RESEARCH APPLICATIONS PRIVATE LIMITED	Director	23/07/2013	23/07/2013	-	Active	NO
7	U85100TG2013PTC091431	CONTINENTAL COMMUNITY CLINICS PRIVATE LIMITED	Director	02/12/2013	02/12/2013	-	Active	NO
8	U85100TG2014PTC093011	C3 Health Community Corporation Private Limited	Director	18/02/2014	18/02/2014	-	Active	NO

Name :

Vasu Reddy

Designation :

Director

Address :

Plot No. 1292, Road No. 65, Jubli Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

28.11.1962

Date of Appointment :

06.01.2007

DIN No.:

01812368

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	U85110TG2007PLC052283	CONTINENTAL HOSPITALS LIMITED	Director	06/01/2007	06/01/2007	-	Active	NO
2	U85110TG2007PTC052797	CONTINENTAL SURGERY CENTER PRIVATE LIMITED	Director	24/02/2007	24/02/2007	-	Active	NO
3	U65993TG2007PTC054367	PARADIGM HOLDINGS PRIVATE LIMITED	Director	08/06/2007	08/06/2007	-	Active	NO
4	U74999TG2007PTC055606	PARADIGM CORPORATION PRIVATE LIMITED	Director	20/09/2007	20/09/2007	-	Active	NO
5	U85110TG2013PTC089075	CONTINENTAL INSTITUTE OF BIO MEDICAL RESEARCH APPLICATIONS PRIVATE LIMITED	Director	23/07/2013	23/07/2013	-	Active	NO
6	U85100TG2013PTC091431	CONTINENTAL COMMUNITY CLINICS PRIVATE LIMITED	Director	02/12/2013	02/12/2013	-	Active	NO
7	U85100TG2014PTC093011	C3 Health Community Corporation Private Limited	Director	18/02/2014	18/02/2014	-	Active	NO

Name :

Kalakota Venkata Reddy

Designation :

Director

Address :

53-32-5/15, KRM Colony, Seethammadhara, Visakhapatnam – 530013, Andhra Pradesh, India

Date of Birth/Age :

12.03.1961

Date of Appointment :

28.09.2009

DIN No.:

01549768

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	U20100AP1992PTC014255	G.R.FURNITURES PRIVATE LIMITED	Director	04/12/1997	04/12/1997	-	Active	NO
2	U24222AP1995PLC019674	AMBUJA PAINTS LIMITED	Director	18/08/1999	18/08/1999	25/02/2013	Active	NO
3	U85110TG2007PLC052283	CONTINENTAL HOSPITALS LIMITED	Director	28/09/2009	01/03/2009	-	Active	NO
4	U74900TG2010PTC070654	SERVEL KRISHNA ENGINEERS PRIVATE LIMITED	Director	12/06/2012	12/06/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Thota Gurunath Reddy	14710969
Thota Vasu Reddy	593502
Paradigm Corporation Private Limited, India	6777893
Thota Raghunath Reddy	2500
Thota Gurudatta Reddy	3754000
Thota Narmada Reddy	52898
K Aruna Reddy	1500
Total	25893262

AS ON 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	26.00
Directors or relatives of Directors	74.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Providing healthcare services.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Information declined by the management.

Bankers :

Axis Bank Limited, Corporate Banking Branch, 6-3-879/B, 1^st Floor, G Pulla Reddy Building, Green Lands, Begumpet Road, Hyderabad – 500016, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Million)	31.03.2011 (Rs. in Million)
LONG TERM BORROWINGS
Term loan from banks	1023.674	506.277
Other loans and advances	72.447	0.000
Total	1096.121	506.277

Auditors :
Name :	A. Rama Chandra Rao and Company Chartered Accountants
Address :	3-6-369/A/11, I Floor Street No. 1, Himayantanagar, Hyderabad – 500029, Andhra Pradesh, India
PAN No.:	AADFA1033C
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs. 10/- each	Rs. 350.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25893262	Equity Shares	Rs. 10/- each	Rs. 258.933 Million

AFTER 30.09.2013

Authorised Capital : Rs. 1500.000 Million

Issued, Subscribed & Paid-up Capital : Rs. 909.954 Million

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs. 10/- each	Rs. 250.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16460762	Equity Shares	Rs. 10/- each	Rs. 164.608 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	164.608	140.858
(b) Reserves & Surplus	492.323	421.073
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	126.000	0.000
Total Shareholders’ Funds (1) + (2)	782.931	561.931
(3) Non-Current Liabilities
(a) long-term borrowings	1096.121	506.277
(b) Deferred tax liabilities (Net)	152.885	42.294
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1249.006	548.571
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	0.000	0.000
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	0.522	0.157
Total Current Liabilities (4)	0.522	0.157
TOTAL	2032.459	1110.659
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	285.280	264.427
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	1156.680	634.438
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.109	0.109
(c) Deferred tax assets (net)	240.573	111.711
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	1682.642	1010.685
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	0.000	0.000
(d) Cash and cash equivalents	26.096	3.932
(e) Short-term loans and advances	113.197	2.873
(f) Other current assets	210.524	93.169
Total Current Assets	349.817	99.974
TOTAL	2032.459	1110.659

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		135.838
2] Share Application Money		0.000
3] Reserves & Surplus		406.014
4] (Accumulated Losses)		0.000
NETWORTH		541.852
LOAN FUNDS
1] Secured Loans		202.175
2] Unsecured Loans		0.000
TOTAL BORROWING		202.175
DEFERRED TAX LIABILITIES		0.000
TOTAL		744.027
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		647.927
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	3.843
	Other Current Assets	0.000
	Loans & Advances	102.582
Total Current Assets		106.425
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	43.378
	Provisions	0.000
Total Current Liabilities		43.378
Net Current Assets		63.047
MISCELLANEOUS EXPENSES		33.053
TOTAL		744.027

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	0.000	0.000	0.000
		Other Income	0.000	0.000	0.000
		TOTAL (A)	0.000	0.000	0.000
Less	EXPENSES
		Office Expenses	0.000	0.000	0.000
		Administrative Expenses	0.000	0.000	0.000
		Advertising Expenses	0.000	0.000	0.000
		TOTAL (B)	0.000	0.000	0.000
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.000	0.000	0.000
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.000	0.000	0.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		0.000	0.000	0.000
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.000	0.000	0.000
	Earnings / (Loss) Per Share (Rs.)		0.000	0.000	0.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin PAT / Sales	(%)	0.00	0.00	0.00
Operating Profit Margin (PBDIT/Sales)	(%)	0.00	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.00	0.00	0.00
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	0.00
Debt Equity Ratio (Total Debts/Networth)		1.40	0.90	0.37
Current Ratio (Current Asset/Current Liability)		670.15	636.78	2.45

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2010	31.03.2011	31.03.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	135.838	140.858	164.608
Reserves & Surplus	406.014	421.073	492.323
Share Appication money pending allotment	0.000	0.000	126.000
Net worth	541.852	561.931	782.931
long-term borrowings	0.000	506.277	1096.121
Short term borrowings	0.000	0.000	0.000
Total borrowings	202.175	506.277	1096.121
Debt/Equity ratio	0.373	0.901	1.400

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	No
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	--------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	Yes
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	No
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

REVIEW OF OPERATION:

Continental Hospitals Ltd was incorporated on 6th January 2007 with an objective of promoting healthcare in India of international standards at affordable cost at the doorstep of every Indian, by the chief promoter Dr. Guru N Reddy. Financial closure was achieved in the month of May, 2009 with five banks in the consortium. Later swapping the Term Loans with three of the banks viz., Canara Bank, SBH and SBM with that of BOB, currently the consortium member banks are Axis Bank, Bank of India and Bank of Baroda. The project was envisaged for 350 beds and later scope was increased to 550 beds infrastructure to reap the advantage of large scale economies and inflation in cost at a later date as perceived by the promoters. In this Direction the company approached BOB for reappraisal, TEV Study and consideration of additional Term Loan for the envisaged scope increased project. With the scope increase referred above the originally scheduled COD which was planned by 31.03.2012 was rescheduled to 31.03.2013. In this direction construction work of the project is in full swing and your Directors are hopeful of meeting the set timelines.

LITIGATION DETAILS

ARBAPPL 5 / 2015

ARBAPPLSR 150 / 2015

CASE IS:PENDING

PETITIONER		RESPONDENT
M/S MICRON ELECTRICALS, HYD	VS	M/S CONTINENTAL HOSPITALS LTD., HYD
PET.ADV. : UMA DEVI		RESP.ADV. : ARUN TEJA D
SUBJECT: ARBITRATION APLICATION		DISTRICT:  HYDERABAD

FILING DATE:  22-01-2015	POSTING STAGE :  FOR COUNTER
REG. DATE    :   29-01-2015	LISTING DATE :  10-04-2015	STATUS   :  NOTICES
HON'BLE JUDGE(S): HON'BLE THE CHIEF JUSTICE

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10525429	21/02/2014	334,800,000.00	BANK OF INDIA	MID CORPORATE BRANCH, 10-1-1192-9/2,, PTI BUILDIN  GS, AC GUARDS, HYDERABAD, Telangana - 500004, INDIA	C29277084
2	10474065	31/12/2013	299,000,000.00	BANK OF BARODA	3-6-262/2, 1ST FLOOR, TIRUMALA ESTATES,, HIMAYAT  NAGAR, HYDERABABD, Andhra Pradesh - 500029, INDIA	B94890555
3	10441830	20/02/2014 *	542,700,000.00	Axis Bank Limited	CORPORATE BANKING BRANCH, 6-3-879/B, 1st floor,,  G Pulla Reddy Building,Green Lands, Begumpet Road,  Hyderabad, Telangana - 500016, INDIA	C07085293
4	10402723	12/02/2013	300,000,000.00	INDIAN BANK	8-2-683, Flat No. 101, Lapaloma Caves Apts, Beside Kaman, Rd No.12,Banjara Hills, HYDERABABD, Andhra Pradesh - 500034, INDIA	B67979245
5	10399746	24/01/2013	119,400,000.00	BANK OF BARODA	3-6-262/2, 1ST FLOOR, TIRUMALA ESTATES, HIMAYATNAGAR, HYDERABABD, Andhra Pradesh - 500029, INDIA	B66830555
6	10399749	24/01/2013	361,700,000.00	BANK OF BARODA	3-6-262/2, 1ST FLOOR, TIRUMALA ESTATES, HIMAYATNAGAR, HYDERABABD, Andhra Pradesh - 500029, INDIA	B66831140
7	10312368	24/08/2011	638,600,000.00	BANK OF BARODA	3-6-262/6, TIRUMALA ESTATES, 3RD FLOOR, HIMAYATHNAGAR, HYDERABAD, Andhra Pradesh - 500029, INDIA	B23308786
8	10163580	09/03/2012 *	2,170,200,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B37175882

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Plant and Equipments
• Furniture and Fixture
• Vehicles
• Computer

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 :	SAN
Analysis Done by :	KAR
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	--
--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	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--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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