MIRA INFORM REPORT

Report No. :	319226
Report Date :	28.04.2015

IDENTIFICATION DETAILS

Name :	HOSPIRA HEALTHCARE INDIA PRIVATE LIMITED (w.e.f. 21.12.2009)
Formerly Known As :	OJAS PHARMACEUTICALS INDIA PRIVATE LIMITED
Registered Office :	Plot No. B3, SIPCOT Industrial Park, Irungattukottai, Sriperumbudur, Kancheepuram – 602117, Tamilnadu
Tel. No.:	91-44-39370000
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.11.2009
Com. Reg. No.:	18-073563
Capital Investment / Paid-up Capital :	Rs. 28.531 Million
CIN No.: [Company Identification No.]	U24232TN2009PTC073563
IEC No.:	0409039471
TAN No.: [Tax Deduction & Collection Account No.]	CHEH04670B
PAN No.: [Permanent Account No.]	AABC02190F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Pharmaceuticals Products and medical devices.
No. of Employees :	4000 (Approximately)

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

Maximum Credit Limit :	USD 45000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “HOSPIRA PTE. LIMITED” (SINGAPORE). It is an established company having moderate track record. The company has processed weak operational performance which has resulted into losses incurred from its operational activities over past 3 years. However, the company receives good financial and managerial support from its parent company and net worth of the company appears to sound. Trade relations are reported as fair. Payments are reported to be slow but correct. In view of operational losses, 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 – 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

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

Name :	Mr. Praveen Kumar Tiwari
Designation :	General manager and Research and Development
Contact No.:	91-44-30957674
Date :	28.04.2015

LOCATIONS

Registered Office/ Factory 1 :	Plot No. B3, SIPCOT Industrial Park, Irungattukottai, Sriperumbudur, Kancheepuram – 602117, Tamilnadu, India
Tel. No.:	91-44-39370000
Fax No.:	91-44-28151116
E-Mail :	raghunath.rath@hospira.com
Factory 2 :	City SEZ, Plot No. 116 to 119, Part 111 and 123 Jawaharial Nehru Pharma City, Visakapatnam – 531019, Andhra Pradesh, India
Factory 3 :	Sri Nivas, New No. - 86 (Old No. 89) G. N. Chetty, Chennai – 600017, Tamilnadu, India
Factory 4 :	L-8(P), L-9, Gut No.:38 (P) HHIP Aura-API-1, Aurangabad-431136, Maharashtra, India
Tel No.:	91-240-2567399
Research development office :	129-140, Greams Road, Thousand Lights, 7th Floor, Prestige Palladium Building, Chennai- 600006, Tamilnadu, India

DIRECTORS

AS ON 19.09.2014

Name :

Mr. Canakapalli Bhaktavatsala Rao

Designation :

Managing director

Address :

No.25, Old No.15, Lakshmanan Street, Mahalingapuram, Nungambakkam, Chennai, 600034, Tamilnadu, India

Date of Birth/Age :

10.08.1949

Date of Appointment :

14.12.2010

DIN No.:

00010175

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	L24222TN1992PLC022994	ORCHID CHEMICALS & PHARMACEUTICALS LIMITED	Whole-time director	01/08/2008	01/07/1992	29/03/2010	Active	NO
2	U73100TN2005PLC055313	ORCHID RESEARCH LABORATORIES LIMITED	Director	18/02/2005	18/02/2005	16/03/2007	Amalgamated	NO
3	L27104TN1959PLC003849	HINDUJA FOUNDRIES LIMITED	Director	29/07/2009	31/07/2008	22/12/2009	Active	NO
4	U24232TN2009PTC073563	Hospira Healthcare India Private Limited	Managing director	14/12/2010	30/03/2010	-	Active	NO
5	U24230GJ2005PTC046246	ZYDUS HOSPIRA ONCOLOGY PRIVATE LIMITED	Director	25/01/2011	15/04/2010	-	Active	NO

Name :

Mr. Thomas Edward Werner

Designation :

Director

Address :

1312 Vineyard Lane, Libertyville, Il60048, United States of America

Date of Birth/Age :

20.09.1957

Date of Appointment :

30.09.2011

DIN No.:

03341627

Name :

Mr. Kenneth Frederic Meyers

Designation :

Director

Address :

216 Wagner Road, Northfield, Il60093,United States of America

Date of Birth/Age :

20.12.1961

Date of Appointment :

30.09.2011

DIN No.:

03342436

Name :

Mr. Sumant Ramachandra

Designation :

Additional director

Address :

2175 Dehne Road, Northbrook, Il60062, United States of America

Date of Birth/Age :

13.01.1969

Date of Appointment :

27.09.2013

DIN No.:

03344012

Name :

Mr. John Bell Elliot

Designation :

Director

Address :

Berrymoss, Roffey Park, Forest Road, Horsham, West Sussex, Na, Fh124td, The United Kingdom

Date of Birth/Age :

10.12.1951

Date of Appointment :

24.09.2012

DIN No.:

05298812

Name :

Mr. Matthew Robert Stober

Designation :

Director

Address :

6848, Piershill Lane, Cary, NC – 27519, United States of America

Date of Birth/Age :

20.06.1967

Date of Appointment :

19.19.2014

DIN No. :

06796590

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	U24230GJ2005PTC046246	ZYDUS HOSPIRA ONCOLOGY PRIVATE LIMITED	Director	01/08/2014	11/02/2014	-	Active	NO
2	U24232TN2009PTC073563	Hospira Healthcare India Private Limited	Director	19/09/2014	02/05/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Raghunath Rath
Designation :	Secretary
Address :	S2, Kaveri Enclave, 3^rd Cross, Dinnur, Main Road, R T Nagar, Bangalore – 560032, Karnataka, India
Date of Birth/Age :	10.06.1973
Date of Appointment :	05.01.2012
PAN No.:	AGHPR1456J
Name :	Mr. Praveen Kumar Tiwari
Designation :	General manager and Research and Development

MAJOR SHAREHOLDERS

As on 19.09.2014

Names of Shareholders	No. of Shares
Hospira Pte Limited	3987642
Hospira Bahamas (Ireland) Corp.	10
Total	3987652

As on 19.09.2014

Equity Share Break up (Percentage of Total Equity)

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

BUSINESS DETAILS

Line of Business :	Manufacturing of Pharmaceuticals Products and medical devices.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished goods
Countries :	USA
Imports :
Products :	Raw material
Countries :	USA Costa rica
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

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
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 :

4000 (Approximately)

Bankers :

Banker Name :	Citi Bank
Branch Address :	Anna Salai (Branch), Chennai, Tamilnadu, India
Facilities :	Not Divulged
Person Name :	Not Divulged
Contact No.:	Not Divulged
Report :	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

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	ASV N Ramana Tower 52, Venkatnarayana Road, T. Nagar, Chennai, Tamilnadu, India
PAN No.:	AACFD3771D
Memberships :	Not Available
Collaborators :	Not Available
Ultimate Holding Company:	Hospira, Inc. (Delaware, USA)
Holding Company:	Hospira Pte. Limited (Singapore)
Fellow Subsidiaries - With whom transactions have taken place during the year:	Hospira Enterprises B.V. (Netherlands) Hospira UK Limited, (UK) Hospira Limited, (Dominican Republic) Hospira Zagreb d.o.o (Croatia) Hospira Australia Pty. Limited (Australia) Hospira Adelaide Pty. Limited, (Australia)

CAPITAL STRUCTURE

As on 19.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3987652	Equity Shares	Rs.10/- each	Rs. 39.877 Million

As on 30.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2853052	Equity Shares	Rs.10/- each	Rs. 28.531 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	28.531	16.213	12.400
(b) Reserves & Surplus	15601.691	8118.139	7755.988
(c) Money received against share warrants	300.300	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	15930.522	8134.352	7768.388
(3) Non-Current Liabilities
(a) long-term borrowings	15031.060	18983.297	16855.220
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	22.109	12.689	0.000
(d) long-term provisions	81.820	52.384	0.000
Total Non-current Liabilities (3)	15134.989	19048.370	16855.220
(4) Current Liabilities
(a) Short term borrowings	1778.501	1292.850	1506.777
(b) Trade payables	1305.465	749.241	1015.980
(c) Other current liabilities	1211.921	388.177	147.225
(d) Short-term provisions	9.029	5.523	33.939
Total Current Liabilities (4)	4304.916	2435.791	2703.921
TOTAL	35370.427	29618.513	27327.529
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8485.306	5665.710	4659.529
(ii) Intangible Assets	3418.449	5496.067	7426.764
(iii) Capital work-in-progress	12800.933	9042.156	2986.262
(iv) Intangible assets under development	0.000	61.819	61.550
(b) Non-current Investments	0.429	0.429	0.429
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1847.239	3375.217	4657.213
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	26552.356	23641.398	19791.747
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	4724.888	1898.334	1942.700
(c) Trade receivables	1550.128	1085.902	1756.383
(d) Cash and cash equivalents	1476.864	1146.700	2845.342
(e) Short-term loans and advances	1066.191	1451.626	991.357
(f) Other current assets	0.000	394.553	0.000
Total Current Assets	8818.071	5977.115	7535.782
TOTAL	35370.427	29618.513	27327.529

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	10141.129	7847.464	8063.880
	Other Income	14.227	249.389	106.911
	TOTAL (A)	10155.356	8096.853	8170.791
Less	TOTAL EXPENSES (B)	11209.317	8001.105	6992.025
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	(1053.961)	95.748	1178.766
Less	FINANCIAL EXPENSES (D)	932.636	1100.744	990.014
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(1986.597)	(1004.996)	188.752
Less/ Add	DEPRECIATION/ AMORTISATION (F)	2835.153	2441.565	2748.083
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(4821.750)	(3446.561)	(2559.331)
Less	TAX (I)	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(4821.750)	(3446.561)	(2559.331)
	EARNINGS IN FOREIGN CURRENCY	9394.318	7354.401	7824.950
	Earnings / (Loss) Per Share (Rs.)	(1209.17)	(864.31)	(641.81)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(47.55)	(43.92)	(31.74)
Operating Profit Margin (PBDIT/Sales)	(%)	(10.39)	1.22	14.62
Return on Total Assets (PBT/Total Assets}	(%)	(21.36)	(16.80)	(10.54)
Return on Investment (ROI) (PBT/Networth)		(0.30)	(0.42)	(0.33)
Debt Equity Ratio (Total Debt /Networth)		1.06	2.49	2.36
Current Ratio (Current Asset/Current Liability)		2.05	2.45	2.79

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	12.400	16.213	28.531
Reserves & Surplus	7755.988	8118.139	15601.691
Money received against share warrants	0.000	0.000	300.300
Net worth	7768.388	8134.352	15930.522
long-term borrowings	16855.220	18983.297	15031.060
Short term borrowings	1506.777	1292.850	1778.501
Total borrowings	18361.997	20276.147	16809.561
Debt/Equity ratio	2.364	2.493	1.055

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)
Sales	8063.880	7847.464	10141.129
		(2.684)	29.228

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	8063.880	7847.464	10141.129
Profit	(2559.331)	(3446.561)	(4821.750)
	(31.74%)	(43.92%)	(47.55%)

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	---------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	No
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Note:

The Registered office of the company has been shifted Plot No. B3, SIPCOT Industrial Park Irungattukottai, Sriperumbudur – 602105, Tamilnadu, India to the present address w.e.f. 01.11.2013

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWINGS
Fully convertible debentures intercorporate	0.000	9212.000
Loans and advances from related parties	14991.245	9771.297
Long-term maturities of finance lease obligations	39.815	0.000
SHORT TERM BORROWINGS
Working capital loans from banks	0.000	750.000
Loans repayable on demand from banks	1778.501	542.850
Total	16809.561	20276.147

BACKGROUND

Hospira Healthcare India Private Limited (the Company or ‘HHIPL’), a wholly owned subsidiary of Hospira, Inc., USA was incorporated in India on November 17, 2009. HHIPL acquired the generic injectable pharmaceuticals business (including certain manufacturing and Research and Development (‘R&D’) assets and drug pipeline) of Orchid Chemicals and Pharmaceuticals Limited (‘Orchid’) on March 30, 2010 pursuant to a Business Transfer Agreement dated December 15, 2009 between the parties. The Company is executing plans to expand its manufacturing capacity at Irungattukottai and is also engaged in setting up a new injectables manufacturing facility at Vizag utilizing the site on the long term lease acquired from Orchid in March 2010.

REVIEW OF OPERATIONS:

During the year the Company achieved a total turnover of Rs. 10,141 Million (MM) as compared to Rs. 7,847 MM during the previous year. The Company has supplied its products to Hospira entities in the USA, Europe and other parts of the world. Certain injectable products in the areas of Cephalosporins and Penicillin continued to be supplied to the distribution partner. The Directors foresee good prospects in future given the Company’s robust position in the antibiotics space and the expansion projects currently under execution.

PROJECTS:

During the year, the Penem line 2 at IKKTwas commercialized for MeropenemEU market and commercial batches for US market are planned based on regulatory pathway. The Penicillin Expansion Project at IKKT was completed and qualified for formulations development. During the year, the Company made substantial progress in developing the Vizag site. The site has since completed exhibit batches and the first dossier to USFDA has been filed. Based on USFDA inspection(s) and approvals, commercialization will be planned.

COMMITMENTS AND CONTINGENT LIABILITIES

PARTICULAR	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
a) Estimated amount of contracts remaining to be executed on capital account and not provided for: - Tangible assets	3.126	2.951
b) Commitments towards leasehold land	0.137	0.141
c) Legal cases in respect of which appeals had been filed: - labour cess	0.050	0.050

INDEX OF CHARGES No: Charges Exist for Company

FIXED 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. 63.61
UK Pound	1	Rs. 96.55
Euro	1	Rs. 69.18

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	KAR
Report Prepared by :	JYTK

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
--PROFITABILITY	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	NO
--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		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

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