MIRA INFORM REPORT

Report No. :	356550
Report Date :	24.12.2015

IDENTIFICATION DETAILS

Name :	NITIN LIFESCIENCES LIMITED
Registered Office :	Rampur Ghat Road, Poanta Sahib, District: Sirmour - 173025, Himachal Pradesh
Tel. No.:	91-184-2221590-92-93
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.03.2005
Com. Reg. No.:	06-28049
Capital Investment / Paid-up Capital :	Rs.234.125 Million
CIN No.: [Company Identification No.]	U73100HP2005PLC028049
IEC No.:	2206000580
TAN No.: [Tax Deduction & Collection Account No.]	RTKN01851D
PAN No.: [Permanent Account No.]	AACCN0725G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of pharmaceutical manufacturing. (Registered Activity)
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 3134000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 2005 having satisfactory track. Management has failed to file its financials for FY 15 with Registrar of Companies. The company possesses sound networth base marked by fair profit margin and low borrowings. However, rating is constrained on account of huge dip in cash accruals and unfavourable gap between trade payables and receivables. Trade relations are fair. Business is active. Payments are slow but correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 31-03-2015.

INFORMATION DENIED BY

Name :	Mr. Rajeev
Designation :	Accountant
Contact No.:	91-184-2221591
Date :	24.12.2015

LOCATIONS

Registered Office/ Paonta Unit-I, II, and III :	Rampur Ghat Road, Poanta Sahib, District:Sirmour - 173025, Himachal Pradesh, India
Tel. No.:	91-184-2221590-92-93
Fax No.:	91-184-2221591
E-Mail :	info@nitinlifesciences.com
Website :	www.nitinlifesience.com
Head Office/ Karnal Unit :	92-93, Sector-3, H.S.I.D.C. Industrial Area, G.T. Road, Karnal – 132001, Haryana, India
Tel. No.:	91-184-2221590, 92, 93
Fax No.:	91-184-2221591
E-Mail :	info@nitinlifesciences.com

DIRECTORS

As on 31.03.2015

Name :

Mr. Chetan Sobti

Designation :

Managing Director

Address :

8-R, Model Town, Kanal, - 132001, Haryana, India

Date of Appointment :

04.05.2011

PAN No.:

AAIPS2255H

DIN No.:

00906842

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	U73100HP2005PLC028049	NITIN LIFESCIENCES LIMITED	Managing director	04/05/2011	03/03/2005	-	Active	NO
2	U74899DL1993PTC053310	NITIN PHARMACEUTICALS PRIVATE LIMITED	Director	01/09/2006	01/09/2006	-	Amalgamated	NO

Name :

Mr. Man Mohan Sobti

Designation :

Whole-Time Director

Address :

8-R, Model Town, Kanal, - 132001, Haryana, India

Date of Birth/Age :

20.11.1943

Date of Appointment :

04.05.2011

PAN No.:

AQLPS1413L

DIN No.:

00909503

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	U74899DL1993PTC053310	NITIN PHARMACEUTICALS PRIVATE LIMITED	Director	28/04/1993	28/04/1993	-	Amalgamated	NO
2	U73100HP2005PLC028049	NITIN LIFESCIENCES LIMITED	Whole-time director	04/05/2011	03/03/2005	-	Active	NO

Name :

Mr. Nitin Sobti

Designation :

Whole-Time Director

Address :

8-R, Model Town, Kanal, - 132001, Haryana, India

Date of Birth/Age :

17.11.1972

Date of Appointment :

04.05.2011

PAN No.:

AWJPS5420M

DIN No.:

01988793

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	U74899DL1993PTC053310	NITIN PHARMACEUTICALS PRIVATE LIMITED	Director	28/04/1993	28/04/1993	-	Amalgamated	NO
2	U73100HP2005PLC028049	NITIN LIFESCIENCES LIMITED	Whole-time director	04/05/2011	03/03/2005	-	Active	NO
3	U41000HP2010PLC031422	SIRMOUR GREEN ENVIRON LIMITED	Director	19/07/2010	19/07/2010	01/09/2011	Active	NO

Name :

Mr. Sanjeev Chuttani

Designation :

Director

Address :

H.No.13,Sector 7, Urban Estate, Karnal - 132001, Haryana, India

Date of Appointment :

19.05.2011

DIN No.:

02193619

Name :

Ms. Ashwini Manmohan Virkakkar

Designation :

Director

Address :

11/B, Jolly Maker Apartment I, Cuffe Parade, Colaba, Mumbai - 400005, Maharashtra, India

Date of Appointment :

02.03.2015

DIN No.:

00390787

Name :

Mr. Naveen Kumar Bhatia

Designation :

Director

Address :

No.2A Vaikunth No 19 Rutland Gate, 4th Street Nungambakkam, Chennai - 600006, Tamilnadu, India

Date of Appointment :

02.03.2015

DIN No.:

00581159

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	U24222TN1996PTC034591	PREMIUM COATINGS AND CHEMICALS P LTD	Managing director	01/12/2008	01/07/1998	-	Active	NO
2	U51109TN1999PTC043573	PRECOAT INTERNATIONAL COATINGS PRIVATE LIMITED	Managing director	17/11/1999	17/11/1999	-	Active	NO
3	U74899DL2005PTC139934	PREMIUM SPECIALITY PAINTS PRIVATE LIMITED	Director	24/08/2005	24/08/2005	01/06/2013	Active	NO
4	U73100HP2005PLC028049	NITIN LIFESCIENCES LIMITED	Director	02/03/2015	02/03/2015	-	Active	NO
5	U74999MH2015NPL268985	PAINTS AND COATINGS SKILL COUNCIL	Director	08/10/2015	08/10/2015	-	Active	NO

Name :

Ms. Kiran Sobti

Designation :

Director

Address :

8-R, Model Town, Karnal - 132001, Haryana, India

Date of Appointment :

30.09.2015

PAN No.:

AEZPS8002D

DIN No.:

01989772

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	U74899DL1993PTC053310	NITIN PHARMACEUTICALS PRIVATE LIMITED	Director	15/12/2006	15/12/2006	25/03/2011	Amalgamated	NO
2	U73100HP2005PLC028049	NITIN LIFESCIENCES LIMITED	Director	30/09/2015	23/03/2015	-	Active	NO

Name :

Mr. Rajinder Kumar Harna

Designation :

Director

Address :

207, Defence Colony, Sector-15A, Hisar - 125005, Haryana, India

Date of Appointment :

10.10.2014

DIN No.:

06664826

KEY EXECUTIVES

Name :	Ms. Ritu Arora
Designation :	Secretary
Address :	House No. 2, Shakti Colony, Karnal - 132001, Haryana, India
Date of Birth/Age :	03.04.1979
PAN No.:	AFXPA8225M
Name :	Mr. Shobhan Rawat
Designation :	Chief Financial Officer
Address :	281, Moti Nagar, Karnal, 132001, Haryana, India
Date of Birth/Age :	02.02.2015
PAN No.:	BDYPR7214K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Nitin Sobti	5742625
Chetan Sobti	5722625
Manmohan Sobti	5742625
Kiran Sobti	5722625
Aradhna Sobti	120000
Richa Sobti	120000
Ritin Sobti	2000
Pavni Sobti	120000
Bhavya Sobti	120000
Total	23412500

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of pharmaceutical manufacturing. (Registered Activity)

Products :

Item Code No.	Product Description
30049099	Optineuron Forte

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

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	Not Divulged
Branch	Not Divulged
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
Loans taken from vehicle	1.517	2.000
Total	1.517	2.000

Financial Institution:	Daimler Financial Services India Private Limited, RMZ, Millenia Business Park, Campus, 3B, Unit 301 and 302, 143 Dr. M.G.R. Road, Perungudi, Chennai – 600096, Tamilnadu, India
Auditors :
Name :	Pankaj Aneja and Associates Chartered Accountants
Address :	972-Sector13, Urban Estate, Karnal-132 001, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AARPA2805N
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Divulged

CAPITAL STRUCTURE

As on 30.09.2014

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
23412500	Equity Shares	Rs.10/- each	Rs.234.125 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	234.125	234.125	234.125
(b) Reserves & Surplus	862.911	548.651	801.736
(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)	1097.036	782.776	1035.861
(3) Non-Current Liabilities
(a) long-term borrowings	1.517	2.000	0.000
(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)	1.517	2.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	456.017	278.119	224.819
(c) Other current liabilities	12.663	13.969	8.185
(d) Short-term provisions	11.206	548.366	6.334
Total Current Liabilities (4)	479.886	840.454	239.338
TOTAL	1578.439	1625.230	1275.199
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	711.900	178.453	182.661
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	14.928	338.302	89.167
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	50.025	47.487	0.025
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	17.863	31.334	44.321
(e) Other Non-current assets	2.515	2.271	0.136
Total Non-Current Assets	797.231	597.847	316.310
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	340.659	247.924	234.448
(c) Trade receivables	304.543	236.940	169.558
(d) Cash and cash equivalents	92.103	482.213	527.145
(e) Short-term loans and advances	41.131	16.691	7.645
(f) Other current assets	2.772	43.615	20.093
Total Current Assets	781.208	1027.383	958.889
TOTAL	1578.439	1625.230	1275.199

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1966.998	1731.066	1394.596
	Other Income	17.048	53.198	44.398
	TOTAL (A)	1984.046	1784.264	1438.994
Less	EXPENSES
	Cost of Materials Consumed	1338.228	1182.420	961.479
	Purchases of Stock-in-Trade	3.956	33.811	29.947
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	4.695	(3.620)	(3.318)
	Employees benefits expense	86.726	73.499	52.404
	Other expenses	126.053	114.170	94.825
	TOTAL (B)	1559.658	1400.280	1135.337
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	424.388	383.984	303.657
Less	FINANCIAL EXPENSES (D)	0.137	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	424.251	383.984	303.657
Less/ Add	DEPRECIATION/ AMORTISATION (F)	26.640	19.116	20.655
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	397.611	364.868	283.002
Less	TAX (H)	83.341	73.661	35.585
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	314.270	291.207	247.417
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	86.747	19.296	30.951
	TOTAL EARNINGS	86.747	19.296	30.951
	IMPORTS
	Raw Materials	94.771	40.770	19.417
	Travelling Expenses	0.701	0.862	0.000
	Capital Goods	1.368	44.871	0.000
	TOTAL IMPORTS	96.840	86.503	19.417
	Earnings / (Loss) Per Share (Rs.)	13.42	12.44	10.52

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	456.983	331.726	331.482
Net cash flow from operating activity	365.625	200.521	232.638

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	15.98	16.82	17.74
Operating Profit Margin (PBIDT/Sales)	(%)	21.58	22.18	21.77
Return on Total Assets (PBT/Total Assets}	(%)	26.27	29.44	23.86
Return on Investment (ROI) (PBT/Networth)		0.36	0.47	0.27
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.63	1.22	4.01

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	234.125	234.125	234.125
Reserves & Surplus	801.736	548.651	862.911
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1035.861	782.776	1097.036
long-term borrowings	0.000	2.000	1.517
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	2.000	1.517
Debt/Equity ratio	0.000	0.003	0.001

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	1394.596	1731.066	1966.998
		24.127	13.629

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	1394.596	1731.066	1966.998
Profit	247.417	291.207	314.270
	17.74%	16.82%	15.98%

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	No
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	No
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	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
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	No
35	Negative Reporting by Auditors in the Annual Report	No

OPERATIONAL HIGHLIGHTS:- (As on 31.03.2014)

Overall, 2013-14 has been a very satisfying year. The Company was aggressive in its quest for new contracts, executed on its full service strategy and maintained pricing discipline. The Company has achieved higher sales and profit than the previous year.The new plant for pharmaceutical formulations in unit III has been commissioned and has started manufacturing injectables and its sales. The production of ampoules in this unit has been discontinued. Efforts are being made to expand and cover new domestic and international markets.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10423653	30/03/2013	2,000,000.00	DAIMLER FINANCIAL SERVICES INDIA PRIVATE LIMITED	RMZ, MILLENIA BUSINESS PARK, CAMPUS 3B, UNIT 301  and 302, 143 Dr. M.G.R. ROAD, PERUNGUDI, CHENNAI, Tamilnadu - 600096, INDIA	B74404252
2	90060432	15/07/1994	2,000,000.00	HARYANA FINANCIAL CORPORATION	CHANDIGARH, Chandigarh, INDIA	-

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Other Equipments

· Laboratory Equipment

· Furniture

· Computer

· Car

· Vehicle

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 records 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.66.20
UK Pound	1	Rs.98.29
Euro	1	Rs.72.41

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	AMT
Report Prepared by :	SUD

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	3
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.