MIRA INFORM REPORT

Report No. :	302464
Report Date :	09.01.2015

IDENTIFICATION DETAILS

Name :	LABORATE PHARMACEUTICALS INDIA LIMITED
Formerly Known As :	LABORATE PHARMACEUTICALS INDIA PRIVATE LIMITED
Registered Office :	E-11, Industrial Area, Panipat – 132103, Haryana
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.02.1990
Com. Reg. No.:	05-030835
Capital Investment / Paid-up Capital :	Rs. 43.367 Millions
CIN No.: [Company Identification No.]	U24239HR1990PLC030835
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	RTKL00914E
PAN No.: [Permanent Account No.]	AAACL2998K AAAFD9209L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical Formulations.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2100000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Management has failed to file latest financials of FY14 with the statutory authorities. However, as per available of FY13, trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered normal for business dealing 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	CRISIL
Rating	Long term rating: “BBB+”
Rating Explanation	Moderate credit quality and average credit risk.
Date	05.03.2014

Rating Agency Name	CRISIL
Rating	Short term rating: “A2”
Rating Explanation	Strong degree of safety and low credit risk.
Date	05.03.2014

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. Dhruv Bali
Designation :	Export Manager
Contact No.:	91-9813380089
Date :	08.01.2015

LOCATIONS

Registered Office :	E-11, Industrial Area, Panipat – 132103, Haryana, India
Tel. No.:	91-180-4092200 / 2650072/ 2650385/ 2655741/ 2655742/ 2651248
Mobile No.:	91-9813380089 (Mr. Dhruv Bali)
Fax No.:	91-180-2651072
E-Mail :	ajaybhatia@laborate.com laborate02@hotmail.com pvsca@rediffmail.com dkgc2004@yahoo.com laborate@laborate.com
Website :	http://www.laborate.com
Location :	Owned
Admin Office :	Plot No.31, Industrial Area, Nariwal Paonta Sahib, Himachal Pradesh, India
Factory :	51, Industrial Area, Goandpur, Poanta Sahib, Himachal Pradesh, India
Tel. No.:	91-1704-225069
Branch Office :	E-22, Industrial Area, Panipat – 132103, Haryana, India

DIRECTORS

As on: 23.09.2013

Name :

Mr. Ajay Bhatia

Designation :

Whole Time Director

Address :

659 - L, Model Town, Panipat – 132103, Haryana, India

Qualification :

Graduate

Date of Appointment :

01.04.2013

PAN No.:

ABQPB8284J

DIN No.:

00038833

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	U24239HR1990PLC030835	LABORATE PHARMACEUTICALS INDIA LTD	Whole-time director	01/04/2013	16/04/1990	-	Active	NO
2	U29297DL2007PTC160681	ZYPHER LIFESCIENCES PRIVATE LIMITED	Director	19/03/2007	19/03/2007	-	Active	NO

Name :

Mr. Aditya Bhatia

Designation :

Whole-time Director

Address :

197, Model Town, Panipat – 132103, Haryana, India

Qualification :

Graduate

Date of Appointment :

01.04.2013

PAN No.:

ADRPB0106A

DIN No.:

00038893

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	U24239HR1990PLC030835	LABORATE PHARMACEUTICALS INDIA LTD	Whole-time director	01/04/2013	01/04/2004	-	Active	NO
2	U29297DL2007PTC160681	ZYPHER LIFESCIENCES PRIVATE LIMITED	Director	19/03/2007	19/03/2007	-	Active	NO

Name :

Mr. Sanjay Bhatia

Designation :

Director

Address :

584 - L, Model Town, Panipat – 132103, Haryana, India

Qualification :

Graduate

Date of Appointment :

01.04.2013

PAN No.:

ABQPB8286L

DIN No.:

00189247

Name :

Mrs. Anita Bhatia

Designation :

Director

Address :

197, Model Town, Panipat – 132103, Haryana, India

Date of Appointment :

01.04.2005

PAN No.:

ADAPB0176H

DIN No.:

00038907

KEY EXECUTIVES

Name :	Mr. Dhruv Bali
Designation :	Export Manager

MAJOR SHAREHOLDERS

As on: 23.09.2013

Names of Shareholders	No. of Shares
Ajay Bhatia	585390
Sanjay Bhatia	656240
Anita Bhatia	562276
Alka Bhatia	270790
Aditya Bhatia	1086072
Sanjeev Bhatia (HUF)	520000
Nutan Bhatia	181350
Kanta Bhatia	201604
Parag Bhatia	180362
Garima Bhatia	92612
Total	4336696

Equity Share Break up (Percentage of Total Equity)

As on: 23.09.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Pharmaceutical Formulations

Products :

Product Description	Item Code No. (ITC Code)
Pharmaceuticals	30060000

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Pharmaceuticals

Countries :

• Europe
• Africa
• Iraq
• Sri Lanka

Imports :

Products :

Raw Material

Countries :

• China
• Korea
• Taiwan
• Malaysia
• Spain
• Indonesia

Terms :

Selling :

Cash, Advance, Cheque and Credit

Purchasing :

Cash, Advance, Cheque 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
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

• Retailers

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 :

2000 (Approximately)

Bankers :

• Punjab National Bank, IBB, Palika Bazar, G.T. Road, Panipat, Panipat - 132103, Haryana, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Rupee term loans from banks	0.933	22.487
SHORT TERM BORROWINGS
Working capital loans from banks	338.097	381.729
Total	339.030	404.216

Auditors :
Name :	Vinod K. Bhatia and Company Chartered Accountants
Address :	15-A, Gole Market, Model Town, Panipat – 132103, India
PAN No.:	AAWPB3230B
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on: 23.09.2013

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4336696	Equity Shares	Rs.10/- each	Rs. 43.367 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	43.367	43.367	43.367
(b) Reserves & Surplus	682.834	588.251	521.236
(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)	726.201	631.618	564.603
(3) Non-Current Liabilities
(a) long-term borrowings	75.851	88.081	0.000
(b) Deferred tax liabilities (Net)	3.827	3.760	3.761
(c) Other long term liabilities	166.402	119.645	192.100
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	246.080	211.486	195.861
(4) Current Liabilities
(a) Short term borrowings	338.097	381.729	402.857
(b) Trade payables	866.804	594.173	648.474
(c) Other current liabilities	98.704	74.767	75.177
(d) Short-term provisions	10.153	9.023	8.454
Total Current Liabilities (4)	1313.758	1059.692	1134.962
TOTAL	2286.039	1902.796	1895.426
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	310.578	321.739	343.710
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	11.810	4.884
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.200	0.200	0.200
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.625	3.275	2.803
(e) Other Non-current assets	0.377	0.750	1.123
Total Non-Current Assets	314.780	337.774	352.720
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	831.455	792.975	895.921
(c) Trade receivables	982.007	702.778	571.172
(d) Cash and cash equivalents	25.789	12.061	13.870
(e) Short-term loans and advances	95.937	56.420	61.072
(f) Other current assets	36.071	0.788	0.671
Total Current Assets	1971.259	1565.022	1542.706
TOTAL	2286.039	1902.796	1895.426

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	3588.630	2398.328	2167.108
	Other Income	3.439	1.789	0.921
	TOTAL (A)	3592.069	2400.117	2168.029
Less	EXPENSES
	Cost of Materials Consumed	2696.601	1712.819	1626.683
	Purchases of Stock-in-Trade	10.001	28.655	26.876
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	41.538	13.846	(66.266)
	Employees benefits expense	103.896	81.092	79.289
	Other expenses	480.192	345.527	296.410
	TOTAL (B)	3332.228	2181.939	1962.992
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)	259.841	218.178	205.037
Less	FINANCIAL EXPENSES (D)	68.053	65.449	62.406
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	191.788	152.729	142.631
Less/ Add	DEPRECIATION/ AMORTISATION (F)	41.579	43.450	42.081
	PROFIT BEFORE TAX (E-F) (G)	150.209	109.279	100.550
Less	TAX (H)	30.425	22.105	20.959
	PROFIT AFTER TAX (G-H) (I)	119.784	87.174	79.591
	IMPORTS
	Raw Materials	133.496	26.413	9.369
	Components and Stores parts	0.000	0.000	0.000
	Capital Goods	0.000	3.581	0.000
	TOTAL IMPORTS	133.496	29.994	9.369
	Earnings / (Loss) Per Share (Rs.)	27.62	20.10	18.35

Particulars	31.03.2014
Sales Turnover (Approximately)	4500.000

Expected Sales (2014-2015) : Rs. 5000.000 Millions

The above information has been parted by Mr. Dhruv Bali

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT/Sales)	(%)	3.34	3.63	3.67
Operating Profit Margin (PBDIT / Sales)	(%)	7.24	9.09	9.46
Return on Total Assets (PBT/Total Assets}	(%)	6.57	5.78	5.31
Return on Investment (ROI) (PBT/Networth)		0.21	0.17	0.18
Debt Equity Ratio (Total Debt /Networth)		0.58	0.74	0.71
Current Ratio (Current Asset/Current Liability)		1.50	1.48	1.36

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	43.367	43.367	43.367
Reserves & Surplus	521.236	588.251	682.834
Net worth	564.603	631.618	726.201
long-term borrowings	0.000	88.081	75.851
Short term borrowings	402.857	381.729	338.097
Total borrowings	402.857	469.810	413.948
Debt/Equity ratio	0.714	0.744	0.570

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2167.108	2398.328	3588.630
		10.670	49.630

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2167.108	2398.328	3588.630
Profit	79.591	87.174	119.784
	3.67%	3.63%	3.34%

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

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term borrowings
Deposits	74.918	65.594
Total	74.918	65.594

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10200607	25/07/2012 *	300,000,000.00	PUNJAB NATIONAL BANK	IBB, PALIKA BAZAR, G.T. ROAD, PANIPAT, PANIPAT,  HARYANA - 132103, INDIA	B56043755
2	10199051	18/01/2010	10,000,000.00	PUNJAB NATIONAL BANK	IBB, PALIKA BAZAR, G.T.ROAD, PANIPAT, HARYANA - 132103, INDIA	A77920486
3	10199050	18/01/2010	100,000,000.00	PUNJAB NATIONAL BANK	IBB, PALIKA BAZAR, G.T.ROAD, PANIPAT, HARYANA - 132103, INDIA	A77920239
4	10099549	05/12/2009 *	141,700,000.00	PUNJAB NATIONAL BANK	IBB, PALIKA BAZAR, G.T.ROAD, PANIPAT, HARYANA - 132103, INDIA	A75794784
5	10038715	19/12/2008 *	20,000,000.00	PUNJAB NATIONAL BANK	IBB, PALIKA BAZAR, G.T.ROAD, PANIPAT, PANIPAT, HARYANA - 132103, INDIA	A54331103
6	80000347	27/06/2005	2,000,000.00	PNB	IBB PALIKABAZAR, PANIPAT, HARYANA - 132103, INDIA	-
7	80025558	24/01/2013 *	590,000,000.00	PUNJAB NATIONAL BANK	IBB, PALIKA BAZAR, G.T. ROAD, PANIPAT, PANIPAT,  HARYANA - 132103, INDIA	B68328335

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Factory Building
• Plant and Equipment
• Factory Equipments
• Furniture and Fixtures
• Vehicles
• Computer Equipments

PRESS RELEASE

Drug Pricing Row : 4 More Pharma Cos Move HC

Four pharma firms moved the Delhi High Court on Friday, 2 August, challenging the government's new drug pricing order that asked them to slash prices of certain medicines.

The companies were also told to replace stocks in the market with those carrying reduced prices within 45 days of new price notification.

A bench headed by Acting Chief Justice B D Ahmed asked the Centre not to take coercive steps against the firms - Macleods Pharmaceuticals Limited, Emcure Pharmaceuticals ltd, Laborate Pharmaceuticals India Ltd and Micro Labs Limited.

Firms like Cipla Ltd, which had approached the court earlier, have challenged the 2013 Drug Price Control Order (DPCO), issued by the National Pharmaceutical Pricing Authority (NPPA).  Delhi High Court granted relief to Cipla till Aug 27, 2013 and asked the Centre not to take coercive steps against the pharma major which was told to replace stocks in the market with those carrying reduced prices within 45 days of new price notification.

The DCPO had ordered reduction of prices of some medicines within 45 days of issuance of the notification and that the decreased prices be made effective on drugs already in market.

The deadline for implementation of the notification ended on July 29.

Sun Pharmaceutical Industries Ltd and the Confederation of Indian Pharmaceutical Industry (CIPI) also moved the court against the new pricing policy. The court issued notices on the pleas and asked the Centre and others to respond by the next date of hearing.

BW had reported in December 24 issue (Win Some, Lose Some) that as estimated by the Indian Pharmaceutical Alliance, a lobby of leading domestic drug makers, the application of the new price fixation methodology on a completely new set of medicines may see the Rs 100,000-crore industry losing about Rs 2,500 crore in revenues in the near term.

 On the flip side, though, the policy is expected to allow drug makers to get rid of a persistent condition: the age-old official practice of calculating the exact production cost for fixing medicine prices. Introduced in the pre-liberalisation period with the objective of exercising complete control over the production and supply of medicines, it has been a pain point for drug manufacturers for decades.

Market intelligence firm AIOCD-AWACS estimates that the new price control system may hit the domestic revenues of majors Ranbaxy and Cipla by 6.2 and 5.8 per cent, respectively. Among others whose domestic revenues will be significantly impacted are Zydus Cadila, Dr Reddys, Micro Labs and Alembic.

The fallout, however, will be temporary as drugs in the National List of Essential Medicines (NLEM) constitute only 30 per cent of the domestic pharmaceutical market. The prices of the rest will be decided by market forces.

Prices of 348 medicines, including life saving drugs are set to be cheaper by up to 80 per cent as the new Drug Price Control Order has come into effect.

Industry experts said the implementation of the new drug policy will lead to slashing of prices of many anti-cancer and anti-infective drugs by 50-80 per cent.

According to the website of Department of Pharmaceuticals, the government has notified the Drug Prices Control Order (DPCO), 2013, with effect from May 15, replacing the 1995 order.

As per the new drugs policy, all strengths and dosages specified in the National List of Essential Medicines (NLEM) 2011 will be under price control.

According to the approved policy, prices of medicines will now be capped by taking simple average of all brands which have more than one per cent market share instead of input costs.

The DPCO 2013, issued under the Essential Commodities Act, 1955, will lay the framework of the drug policy and mechanism of regulating prices.

According to it, the National Pharmaceuticals Pricing Authority (NPPA) will be the implementation authority for the new policy and the new DPCO.

NPPP-2012 took long to finalise due to differences between ministries of health and chemicals and fertilisers.

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 records 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.62.97
UK Pound	1	Rs.94.97
Euro	1	Rs.74.43

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUB
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.