MIRA INFORM REPORT

Report No. :	336956
Report Date :	17.08.2015

IDENTIFICATION DETAILS

Name :	HMK AUTO PACKS PRIVATE LIMITED

Registered Office :	# 86, KIADB Industrial Area, Bommansandra - Jigani Link Road, Anekal Taluk, Bangalore – 560 105, Karnataka
Tel. No.:	91-80-27839098

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	09.10.2006

Com. Reg. No.:	08-040694

Capital Investment / Paid-up Capital :	Rs.17.510 million

CIN No.: [Company Identification No.]	U20109KA2006PTC040694

IEC No.:	0707019958

TAN No.: [Tax Deduction & Collection Account No.]	BLRH03240G

PAN No.: [Permanent Account No.]	AABCH7506A

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Corrugated Boxes and Boards.

No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 96500

Status :	Satisfactory

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company incorporated during the year 2006 having a satisfactory track record. Profits of the company has declined during FY 2014 however, the company has able to maintained fair profitability during the year under a review. General financial position of the company is normal and acceptable for business dealings. Trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. In view of acceptable financial base, the company can be considered normal 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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Ravi Agarwal
Designation :	Whole-time Director
Contact No.:	91-9035468387
Date :	14.08.2015

LOCATIONS

Registered Office/ Factory :	# 86, KIADB Industrial Area, Bommansandra - Jigani Link Road, Anekal Taluk, Bangalore – 560 105, Karnataka, India
Tel. No.:	91-80-27839100/ 27839101/ 27839098/ 27839099 91-8110-415601
Mobile No.:	91-9035468387 (Mr. Yunus)
Fax No.:	Not Available
E-Mail :	clientsinfo@gmail.com info@hmkautopacks.com
Location :	Owned
Locality :	Industrial

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Kamakhya Prasad Agarwal
Designation :	Whole-time Director
Address :	No.549, 16^th A Cross, 2^nd A Main, 6^th Sector, HSR Layout, Bangalore – 560 034, Karnataka, India
Date of Birth/Age :	21.07.1946
Date of Appointment :	09.10.2006
DIN No.:	00636649
PAN No.:	AFLPA7828N
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	U21012KA1995PTC018284	AMIT PACKS PRIVATE LIMITED	Whole-time director	12/07/1995	12/07/1995	-	Active	NO
2	U20109KA2006PTC040694	HMK AUTO PACKS PRIVATE LIMTIED	Whole-time director	09/10/2006	09/10/2006	-	Active	NO
3	U21022KA2009PTC051161	JAGDAMBA CARTONS PRIVATE LIMITED	Whole-time director	12/10/2009	12/10/2009	-	Active	NO


Name :	Mr. Ravi Agarwal
Designation :	Whole-time Director
Address :	No.22, Shanti Apartment, 19/03, Shanti Road, Shantinagar, Bangalore – 560 027, Karnataka, India
Date of Birth/Age :	02.02.1974
Date of Appointment :	09.10.2006
DIN No.:	00636684
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	U20109KA2006PTC040694	HMK AUTO PACKS PRIVATE LIMTIED	Whole-time director	09/10/2006	09/10/2006	-	Active	NO
2	U21022KA2009PTC051161	JAGDAMBA CARTONS PRIVATE LIMITED	Whole-time director	12/10/2009	12/10/2009	-	Active	NO


Name :	Mr. Alok Agarwal
Designation :	Director
Address :	No.549, 16^th A Cross, 2^nd A Main, 6^th Sector, HSR Layout, Bangalore – 560 034, Karnataka, India
Date of Appointment :	01.10.2011
DIN No.:	00636966
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	U21012KA1995PTC018284	AMIT PACKS PRIVATE LIMITED	Whole-time director	12/07/1995	12/07/1995	-	Active	NO
2	U20109KA2006PTC040694	HMK AUTO PACKS PRIVATE LIMTIED	Director	01/10/2011	01/10/2011	-	Active	NO


Name :	Mr. Sidharth Agarwal
Designation :	Director
Address :	No.22, Shanti Apartment, 19/03, Shanti Road, Shantinagar, Bangalore – 560 027, Karnataka, India
Date of Appointment :	01.10.2011
DIN No.:	05108836

Name :	Mr. Amit Agarwal
Designation :	Additional Director
Address :	No.549, 16^th A Cross, 2^nd A Main, 6^th Sector, HSR Layout, Bangalore – 560 034, Karnataka, India
Date of Appointment :	01.04.2015
DIN No.:	07147289

KEY EXECUTIVES

Name :	R. Singhal and Associates
Designation :	Company Secretaries
Address :	95, Saraswati Mandir, S.K. Road, Meerut – 250 001, Uttar Pradesh, India
Mobile No.:	91-9808483964

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders		No. of Shares
Mohanlal Agarwal		202000
Vidya Devi Agarwal		69500
K.P. Agarwal		30000
Ravi Agarwal		225000
Amit Agarwal		80000
Ritu Agarwal		207500
Naval Agarwal-HUF		42000
Neelam Agarwal		47000
K.P Agarwal-HUF		198000
Amit Agarwal-HUF		74000
Aarti Agarwal		72500
Alok Agarwal		42500
Alok Agarwal-HUF		60000
Mohanlal Agarwal-HUF		15500
Naval Agarwal		15000
Nidhi Agarwal		77500
Ranjana Devi Agarwal		5000
Ravi Agarwal-HUF		70000
Sidharth Agarwal		33000
Amit Packs (Private) Limited, India		117500
Subhash Kumar Jain - HUF		30000
Subhash Kumar Jain - Ind		20000
Dhanwanthi Projects Private Limited, India		7500
Jagat Janani Suppliers Private Limited, India		6000
Nawalsons Holdings Private Limited, India		4000
Total		1751000

AS ON 30.09.2014

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		7.70
Directors or relatives of directors		89.40
Other top fifty shareholders		2.90
Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Corrugated Boxes and Boards.

Products :	Corrugated Boxes and Boards

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :	Not Available

Imports :	Not Available

Terms :
Selling :	L/C, Cash and Credit

Purchasing :	L/C, Cash and Credit

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 :

Payment Behaviour	Market Goodwill	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

Customers :

Wholesalers, Retailers and Manufacturer

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 :

Product Quality	Delivery Behaviour	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

No. of Employees :

50 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Wilson Garden, Bangalore, Karnataka, 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 Loans	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG-TERM BORROWINGS
Term Loans - From other parties
Secured from KSFC First charge Secured against the Assignment of land, hypothecation of Plant and Machinery, mortgage of building and personal guarantee of directors. Second charge on the assets of Kaushik Products. Repayment schedule : First 4 Quarters - Rs.1.200 million each, Next 4 quarters - Rs.1.550 million each, Next 8 quarters - Rs.1.850 million, Last 8 quarters – 2.050 million each As on 31.03.2014 17 quarterly instalments completed and 7 quarterly instalments are due Interest rate gross @ 15%	5.948	14.148
Secured from KSFC (AL) First charge against the hypothecation of Plant and Machinery. Repayment Schedule starting from Dec-2013 : First 15 Months - Rs.0.040 million each, next 12 Months Rs.0.085 million each, next 24 Months - Rs.0.500 million each, next 1 Month - Rs.0.580 million, Last 11 Months – 0.600 million each As on 31.03.2014 4 Installments have been paid Rs.0.040 million each	20.115	19.705
SHORT TERM BORROWINGS
Loans repayable on demand:
- From Bank
Overdraft from State Bank of India (Primary : Hypothecation of stocks and receivables, Collateral security: Second charge over company owned factory land and plant and machinery Significant terms are Unsecured loans of Rs.1.551 million should not be returned without the bank's prior permission in writing Period of section 12 months - the bank may recall / reduce the limits based on conduct of the account and performance of the company / non-routing of sales transactions/ non-compliance with the terms of sanction Interest rate @ 6.75% above Base rate p.a. with monthly rests)	9.995	9.216
Total	36.058	43.069

Financial Institution :	Karnataka State Financial Corporation, KSFC Bhavan, No.1/1, Thimmaiah Road, Cantonment Railway Station, Bangalore – 560 052, Karnataka, India

Auditors :
Name :	Singhi and Company Chartered Accountants
Address :	F-113, GD, Central Chambers, 2^nd Main, Gandhi Nagar, Bangalore – 560 009, Karnataka, India
Tel. No.:	91- 22281573/ 22205587
Fax No.:	91-80-22264859
Income-tax PAN of auditor or auditor's firm :	AASFS9578D

Memberships :	Not Available

Collaborators :	Not Available

Entities controlled by Key Management Personnel (KMP) :	Amit Packs Private Limited Kausihk Products R D Industries

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2100000	Equity Shares	Rs.10/- each	Rs.21.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1751000	Equity Shares	Rs.10/- each	Rs.17.510 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	17.510	17.510	17.510
(b) Reserves & Surplus	16.260	12.380	7.470
(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)	33.770	29.890	24.980

(3) Non-Current Liabilities
(a) Long-term borrowings	42.388	49.320	32.751
(b) Deferred tax liabilities (Net)	4.181	3.342	1.892
(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)	46.569	52.662	34.643

(4) Current Liabilities
(a) Short term borrowings	9.995	9.216	10.534
(b) Trade payables	49.513	30.925	16.659
(c) Other current liabilities	14.046	10.177	9.005
(d) Short-term provisions	1.072	1.363	1.132
Total Current Liabilities (4)	74.626	51.681	37.330

TOTAL	154.965	134.233	96.953

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	64.350	56.272	51.123
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	13.070	0.000
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.340	1.226	4.649
(e) Other Non-current assets	0.000	0.046	0.092
Total Non-Current Assets	65.690	70.614	55.864

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	48.536	25.922	19.290
(c) Trade receivables	29.486	26.283	13.928
(d) Cash and cash equivalents	0.508	0.498	0.200
(e) Short-term loans and advances	10.733	10.463	7.261
(f) Other current assets	0.012	0.453	0.410
Total Current Assets	89.275	63.619	41.089

TOTAL	154.965	134.233	96.953

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Turnover including job work	259.951	228.021	158.896
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA

Less	EXPENSES
		TOTAL	NA	NA	NA

	PROFIT/ (LOSS) BEFORE TAX		5.627	7.154	5.864

Less	TAX		1.747	2.244	1.143

	PROFIT/ (LOSS) AFTER TAX		3.880	4.910	4.721

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.055	4.145	(0.576)

	BALANCE CARRIED TO THE B/S		12.935	9.055	4.145

	EARNINGS IN FOREIGN CURRENCY		0.000	0.462	0.000

	IMPORTS
		Components and spare parts	0.299	1.079	0.772
		Raw Materials	1.122	0.000	0.000
		Capital Goods in transit*	0.000	0.000	4.422
		Capital Goods work in progress	0.000	11.397	0.000
		Capital Goods	11.470	4.715	5.472
	TOTAL IMPORTS Note: (Capital Goods work in progress of P.Y. taken in Capital Goods of C.Y.)		12.891	17.191	10.666

	Earnings/ (Loss) Per Share (Rs.)		2.22	2.80	NA

Particulars

31.03.2015

Sales Turnover (Approximately)

360.000

Expected Sales (2015-2016): Rs.400.000 million

The above information has been parted by Mr. Ravi Agarwal (Whole-time Director).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current maturities of long term debts procured from KSFC	8.200	7.600	7.400
Current maturities of long term debts procured from KSFC (AL)	0.525	0.160	0.000
Current maturities of long-term debt	8.725	7.760	7.400
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Turnover)	(%)	1.49	2.15	2.97

Return on Total Assets (PBT/Total Assets}	(%)	3.63	5.90	6.05

Return on Investment (ROI) (PBT/Networth)		0.17	0.24	0.23

Debt Equity Ratio (Total Debt /Networth)		1.81	2.22	2.03

Current Ratio (Current Asset/Current Liability)		1.20	1.23	1.10

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	17.510	17.510	17.510
Reserves & Surplus	7.470	12.380	16.260
Share Application money pending allotment	0.000	0.000	0.000
Net worth	24.980	29.890	33.770

Long-term borrowings	32.751	49.320	42.388
Short term borrowings	10.534	9.216	9.995
Current Maturities of Long term debt	7.400	7.760	8.725
Total borrowings	50.685	66.296	61.108
Debt/Equity ratio	2.029	2.218	1.810

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 including job work	158.896	228.021	259.951
		43.503	14.003

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 including job work	158.896	228.021	259.951
Profit	4.721	4.910	3.880
	2.97%	2.15%	1.49%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity-Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

FINACIAL RESULTS:

During the year the Company has achieved a Turnover including job work of Rs.259.951 million as against Rs.228.021 million in the previous year and incurred a Profit before tax of Rs.5.627 million as against Rs.7.154 million in the previous year.

FUTURE OUTLOOK:

The future of the company is very bright as there is a wide scope in the corrugated box industry. Your Directors are also taking concrete steps to promote the product

UNSECURED LOAN

Particulars	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG-TERM BORROWINGS
Loans and advances from Related Parties The unsecured loans from the related parties are @ 15% interest.	16.325	15.467
Total	16.325	15.467

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10164679	23/01/2012 *	10,000,000.00	STATE BANK OF INDIA	SME CITY CREDIT CENTRE, 20, BADAGANADU SANGHA BUILDING, GIRLS HIGH SCHOOL STREET, SESHADRIPURAM KUMARA PARK, BANGALORE, KARNATAKA - 560020, INDIA	B31050081
2	10137178	16/02/2013 *	20,800,000.00	KARNATAKA STATE FINANCIAL CORPORATION	KSFC BHAVAN, NO.1/1, THIMMAIAH ROAD, CANTONMENT RAILWAY STATION, BANGALORE, KARNATAKA - 560052, INDIA	B68581644

* Date of charge modification

FIXED ASSETS:

· Land (Freehold)

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Computers/Printers

· Office equipment

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.65.12
UK Pound	1	Rs.101.62
Euro	1	Rs.72.56

INFORMATION DETAILS

Information Gathered by :	DIP

Analysis Done by :	DIV

Report Prepared by :	SMN

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	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.

MIRA INFORM REPORT

INDEX OF CHARGES:

Unit