MIRA INFORM REPORT

Report No. :	326836
Report Date :	10.06.2015

IDENTIFICATION DETAILS

Name :	BENGAL CHEMICALS AND PHARMACEUTICALS LIMITED
Registered Office :	6, Ganesh Chunder Avenue, Kolkata – 700013, West Bengal
Tel. No.:	91-33-22371525
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	27.03.1981
Com. Reg. No.:	21-033489
Capital Investment / Paid-up Capital :	Rs.769.604 Million
CIN No.: [Company Identification No.]	U24299WB1981GOI033489
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCB5107F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of quality chemicals, drugs, pharmaceuticals and home products.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was incorporated in 1981. It is a well-established company having moderate track record. It is a manufacturer of quality Chemicals, Drugs, Pharmaceuticals and Home Product. Bengal Chemicals and Pharmaceutical Works Limited (BCPW) is precursor of the present company, Bengal Chemicals and Pharmaceuticals Limited (BCPL). Management of the BCPW was taken over by the Government of India on 15^th December, 1977. Finally, the company was nationalized on 15^th December, 1980. A new company was formed under the name and style “Bengal Chemicals and Pharmaceuticals Limited” (BCPL) in 1981. The company has incurred huge accumulated losses which has eroded the networth of the company. However, it being a government company, the lenders and creditors can feel confident of their exposure. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. Subject can be considered for business dealings 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 – 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

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. P. M. Chandraiah
Designation :	Director
Contact No.:	91-33-22371525
Date :	10.06.2015

LOCATIONS

Registered Office :	6, Ganesh Chunder Avenue, Kolkata – 700013, West Bengal, India
Tel. No.:	91-33-22371525 / 22371526
Fax No.:	91-33-22257697
E-Mail :	bcplmdsecretariat@gmail.com df@bengalchemicals.com
Location :	Owned
Factory :	Located at: · Mumbai · Kanpur · Panihati · Maniktala

DIRECTORS

AS ON 24.09.2014

Name :

Mr. Subramanian Achuthan Elamthurthi

Designation :

Managing Director

Address :

1B, SFS Fairway Apartments, Golf Links Road, Kowdiar P.O., Trivandrum - 695003, Kerala, India

Date of Birth/Age :

05.08.1962

Date of Appointment :

05.02.2014

DIN No.:

06818313

Name :

Mr. Anil Gupta

Designation :

Nominee Director

Address :

Shanti Krishna, 5034/3, Sant Nagar, Karol Bagh, New Delhi - 110005, India

Date of Birth/Age :

09.09.1950

Date of Appointment :

21.10.2011

DIN No.:

00283431

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	U18101DL2004PTC124918	HP SPINNING MILLS PRIVATE LIMITED	Director	30/03/2005	30/03/2005	10/02/2007	Active	NO
2	L51909MH2003PLC138778	FIRST WINNER INDUSTRIES LIMITED	Director	29/09/2007	28/03/2007	29/08/2012	Active	NO
3	U45400DL2007PTC171253	ASA RAM DEVELOPERS PRIVATE LIMITED	Director	10/12/2007	10/12/2007	09/07/2013	Active	NO
4	U25190DL2008PTC172558	ROHAN TYRES PRIVATE LIMITED	Director	11/01/2008	11/01/2008	-	Strike off	NO
5	L24241UP1986PLC008344	PEE CEE COSMA SOPE LIMITED	Additional director	14/11/2014	28/01/2008	-	Active	NO
6	U24110MH2000PLC124366	RAMSHYAM TEXTILE INDUSTRIES LIMITED	Director	22/07/2008	05/07/2008	29/08/2012	Active	NO
7	U51909MH2002PLC138238	FIRST WINNER LIFESTYLE LIMITED	Director	22/07/2008	05/07/2008	29/08/2012	Active	NO
8	U25190DL2009PTC188832	SHANTI KRISHNA TYRE AND TUBES PRIVATE LIMITED	Director	25/03/2009	25/03/2009	-	Strike off	NO
9	U24299WB1981GOI033489	BENGAL CHEMICALS AND PHARMACEUTICALS LTD	Nominee director	21/10/2011	21/10/2011	-	Active	NO
10	U21012MP1947GOI000636	NEPA LTD	Nominee director	24/10/2011	24/10/2011	-	Active	NO
11	L17111UP1924PLC000275	J. K. COTTON LIMITED	Nominee director	15/02/2012	15/02/2012	21/03/2015	Active	NO
12	L74900HR1979PLC009789	PASUPATI SPINNING AND WEAVING MILLS LIMITED	Director	29/09/2014	01/07/2014	-	Active	NO

Name :

Ms. Monika Verma

Designation :

Nominee Director

Address :

105, Manak Vihar, Delhi - 110092, India

Date of Birth/Age :

30.01.1968

Date of Appointment :

08.01.2013

DIN No.:

06522079

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	U24299WB1981GOI033489	BENGAL CHEMICALS AND PHARMACEUTICALS LTD	Nominee director	08/01/2013	08/01/2013	-	Active	NO
2	U24231MH1954PLC009265	HINDUSTAN ANTIBIOTICS LIMITED	Director	09/01/2013	09/01/2013	-	Active	NO
3	U24232RJ1978GOI001823	RAJASTHAN DRUGS AND PHARMACEUTICALS LIMITED	Nominee director	11/06/2013	11/06/2013	-	Active	NO
4	U24231KA1981GOI004145	KARNATAKA ANTIBIOTICS AND PHARMACEUTICALS LIMITED	Nominee director	23/06/2014	23/06/2014	17/11/2014	Active	NO

Name :

Mr. Awadhesh Kumar Choudhary

Designation :

Nominee Director

Address :

207/12, Sector-1, Pushp Vihar, Delhi - 110017, India

Date of Birth/Age :

25.08.1968

Date of Appointment :

22.08.2014

DIN No.:

06942194

Name :

Mr. Pillala Marri Chandraiah

Designation :

Whole-time Director

Address :

92-B/5 (Old No. 463), 1^st Floor # 10 Flat, Munirka, New Delhi - 110067, India

Date of Appointment :

25.11.2014

DIN No.:

06970910

KEY EXECUTIVES

Name :	Mr. Pillala Marri Chandraiah
Designation :	Chief Financial Officer
Address :	Flat No. B, 8^th Floor, Block-9, Silver Spring, 5 (Five) JBS Halder Avenue, Kolkata - 700105, West Bengal, India
Date of Appointment :	27.03.2015
PAN No.:	ABRPC7977L
Name :	Mr. Subramanian Achuthan Elamthurthi
Designation :	Chief Executive Officer
Address :	1B, SFS Fairway Apartments, Golf Links Road, Kowdiar P.O., Trivandrum - 695003, Kerala, India
Date of Birth/Age :	05.08.1962
Date of Appointment :	27.03.2015
PAN No.:	AKMPS0861R
Name :	Mr. Satish Kumar
Designation :	Secretary
Address :	C-2/181, Lodhi Colony, New Delhi - 110003, India
Date of Appointment :	12.03.2015
PAN No.:	CDYPK3685A

MAJOR SHAREHOLDERS

AS ON 24.09.2014

Names of Shareholders	No. of Shares
President of India	769601
Monika Verma	2
Alok Kumar Karn	1
Total	769604

Equity Share Break up (Percentage of Total Equity)

AS ON 24.09.2014

Category	Percentage
Government [Central and State]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of quality chemicals, drugs, pharmaceuticals and home products.
Products :	Quality Chemicals Drugs Pharmaceuticals Home Products
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	--
Imports :	--
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	Himadri Chemicals
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 :

Company Name :	ESIC
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 :

400 (Approximately)

Bankers :

Banker Name :	United Bank of India
Branch :	Calcutta Branch, 4 N C Dutta Sarani, Kolkata – 700001, West Bengal, 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 :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loans from banks	36.078	35.357
Short Term Borrowings
Working capital loans from banks	252.871	254.662
Total	288.949	290.019

Auditors :
Name :	K K S and Company Chartered Accountants
Address :	11 Bepin Behari, Ganguly Street, Kolkata – 700012, West Bengal, India
PAN No.:	AACFK6450G
Memberships :	Not Divulged
Collaborators :	Not Divulged
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 24.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
800000	Equity Shares	Rs.1000/- each	Rs.800.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
769604	Equity Shares	Rs.1000/- each	Rs.769.604 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	769.604	769.604	769.604
(b) Reserves & Surplus	(1692.610)	(1327.085)	(920.213)
(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)	(923.006)	(557.481)	(150.609)
(3) Non-Current Liabilities
(a) long-term borrowings	1672.740	1588.046	1502.084
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	39.890	29.135	24.720
(d) long-term provisions	132.758	143.977	146.296
Total Non-current Liabilities (3)	1845.388	1761.158	1673.100
(4) Current Liabilities
(a) Short term borrowings	252.871	254.662	213.231
(b) Trade payables	357.648	325.923	517.034
(c) Other current liabilities	455.888	431.692	460.146
(d) Short-term provisions	38.320	28.448	36.924
Total Current Liabilities (4)	1104.727	1040.725	1227.335
TOTAL	2027.109	2244.402	2749.826
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	329.381	314.278	239.637
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	1097.340	1109.202	1141.845
(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	3.170	3.332	4.615
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1429.891	1426.812	1386.097
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	81.102	104.614	151.501
(c) Trade receivables	74.284	109.985	283.308
(d) Cash and cash equivalents	300.859	423.384	575.365
(e) Short-term loans and advances	110.898	96.140	247.317
(f) Other current assets	30.075	83.467	106.238
Total Current Assets	597.218	817.590	1363.729
TOTAL	2027.109	2244.402	2749.826

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	170.619	273.655	482.515
		Other Income	195.724	190.697	253.894
		TOTAL (A)	366.343	464.352	736.409
Less	EXPENSES
		Cost of Materials Consumed	124.483	217.770	350.944
		Purchase of Stock-in-trade	0.000	2.659	34.788
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	20.916	45.660	27.041
		Employee Benefits Expenses	259.352	254.599	219.213
		Other Expenses	165.164	172.652	133.649
		TOTAL (B)	569.915	693.340	765.635
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(203.572)	(228.988)	(29.226)
Less	FINANCIAL EXPENSES (D)		128.527	146.927	131.851
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(332.099)	(375.915)	(161.077)
Less	DEPRECIATION/ AMORTISATION (F)		33.416	30.946	21.245
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(365.515)	(406.861)	(182.322)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(365.515)	(406.861)	(182.322)
	Earnings / (Loss) Per Share (Rs.)		(474.94)	(528.66)	(236.90)

Particulars	31.03.2015
Sales Turnover (Approximately)	500.000

The above information has been parted by Mr. P. M. Chandraiah (Director)

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

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	(214.23)	(148.68)	(37.79)
Operating Profit Margin (PBDIT/Sales)	(%)	(119.31)	(83.68)	(6.06)
Return on Total Assets (PBT/Total Assets)	(%)	(39.31)	(35.84)	(11.34)
Return on Investment (ROI) (PBT/Networth)		0.40	0.73	1.21
Debt Equity Ratio (Total Debt /Networth)		(2.09)	(3.31)	(11.39)
Current Ratio (Current Asset/Current Liability)		0.54	0.79	1.11

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	769.604	769.604	769.604
Reserves & Surplus	(920.213)	(1327.085)	(1692.610)
Net worth	(150.609)	(557.481)	(923.006)
long-term borrowings	1502.084	1588.046	1672.740
Short term borrowings	213.231	254.662	252.871
Total borrowings	1715.315	1842.708	1925.611
Debt/Equity ratio	(11.389)	(3.305)	(2.086)

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	482.515	273.655	170.619
		(43.286)	(37.652)

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	482.515	273.655	170.619
Profit	(182.322)	(406.861)	(365.515)
	(37.79%)	(148.68%)	(214.23%)

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	No
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	No
18	Major suppliers	Yes
19	Major customers	Yes
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 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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

PERFORMANCE

During the year 2013-14, the Company achieved 28.09% of the Production target and 38.07% of the target in sales respectively. Production has decreased by Rs.1662.18 Lakhs as compared with last year since most of the manufacturing facilities were not available due to up-gradation and Modernization work for Schedule M compliance.

PBDIT during 2013-14 is Rs. (-) 203.572 Million as against Rs. (-) 228.988 Million during 2012-13. The Net Loss for the year 2013-14 is Rs.365.515 Million as compared to Net Loss of Rs.406.861 Million in 2012-13. This was on account of application of various Accounting Standards issued by The Institute of Chartered Accountants of India clubbed with high interest burden.

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loans from banks	1636.662	1552.689
Total	1636.662	1552.689

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80056887	22/09/2010 *	280,000,000.00	United Bank of India	Calcutta Branch, 4 N C Dutta Sarani, Kolkata, West Bengal - 700001, India	A95023552

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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.63.94
UK Pound	1	Rs.98.27
Euro	1	Rs.72.37

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	SAN
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.