MIRA INFORM REPORT

Report No. :	326827
Report Date :	11.06.2015

IDENTIFICATION DETAILS

Name :	POLYDRUG LABORATORIES PRIVATE LIMITED
Registered Office :	A-201 / 202, Navbharat Estate Zakaria Bunder Road, Sewri (West), Mumbai – 400015, Maharashtra
Tel. No.:	91-22-2410600
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.07.2004
Com. Reg. No.:	11-147729
Capital Investment / Paid-up Capital :	Rs. 54.541 Million
CIN No.: [Company Identification No.]	U24231MH2004PTC147729
IEC Code :	0306027143
TAN No.: [Tax Deduction & Collection Account No.]	MUMP18857G
PAN No.: [Permanent Account No.]	AADCP3618H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing, Trading, Exporting, Importing of Bulk Drugs.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 970000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established private limited company incorporated in the year 2004, having satisfactory track. As per the financials of year ending 2014, the company has recorded significant increase in its sales turnover and profit figures as compare to F13. Company has above average financial risk profile backed by strong net worth. Overall financials of the year 2014 seems to be decent. Trade relations are fair. Business is active. Payments are reported to be usually correct. In a view of sound financial conditions, the company can be considered normal for business dealings with 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	CRISIL
Rating	SME 2
Rating Explanation	High credit worthiness
Date	29.05.2013

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. Nagesh
Designation :	Account Assistant
Contact No.:	022-24106001
Date :	10.06.2015

LOCATIONS

Registered Office :	A-201 / 202, Navbharat Estates Zakaria Bunder Road, Sewri (West), Mumbai – 400015, Maharashtra, India
Tel. No.:	91-22-24106001
Fax No.:	91-22-24106008
E-Mail :	accountassist@pdydrug.com dharmesh@polydrug.com
Website :	www.polydrug.com
Factory :	Plot No. N – 37, Addl. Ambernath Industrial Area, Anand Nagar, MIDC, MMR Zone – II, Ambernath (East), Mumbai – 421506, Maharashtra, India

DIRECTORS

AS ON 30.09.2014

Name :

Punit Chunilal Thakrar

Designation :

Managing Director

Address :

Flat No. 513-A, Arun, College Road, Matunga, Mumbai - 400019, Maharashtra, India

Date of Birth/Age :

17.06.1967

Date of Appointment :

10.10.2013

PAN No.:

aacpt2730q

DIN No.:

00351619

Name :

Bina Punit Thakrar

Designation :

Director

Address :

Flat No. 513-A, Arun, College Road, Matunga, Mumbai - 400019, Maharashtra, India

Date of Birth/Age :

14.11.1970

Date of Appointment :

05.01.2012

PAN No.:

AACPT2725K

DIN No.:

00351627

Name :

Kaustabha Narayan Dey

Designation :

Additional Director

Address :

B-105 Rajlaxmi Chs, Matar Pada, Off Ceasers Road, Amboli, Andheri (West) Mumbai - 400058, Maharashtra, India

Date of Birth/Age :

22.01.1956

Date of Appointment :

04.08.2014

DIN No.:

01799203

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	U67190TN2002PTC048520	BASIX FOREX and FINANCIAL SOLUTIONS PRIVATE LIMITED	Director	01/11/2002	01/11/2002	06/05/2013	Active	NO
2	U74300WB2004PTC098570	ARUN SIGN PUBLICITY PRIVATE LIMITED	Director	19/05/2004	19/05/2004	29/03/2010	Active	NO
3	U24231MH2004PTC147729	POLYDRUG LABORATORIES PRIVATE LIMITED	Additional director	04/08/2014	04/08/2014	-	Active	NO

Name :

Sanjog Sadananad Parab

Designation :

Additional Director

Address :

Sushila Mahal, 513, H. R. Mahajani Road, Matunga, Mumbai - 400019, Maharashtra, India

Date of Birth/Age :

28.05.1962

Date of Appointment :

04.08.2014

DIN No.:

02775611

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	Company/ LLP Status	Defaulting status
1	U74999MH1921GAP000906	WESTERN INDIA AUTOMOBILE ASSOCIATION	Director	12/07/2006	12/07/2006	Active	NO
2	U24231MH2004PTC147729	POLYDRUG LABORATORIES PRIVATE LIMITED	Additional director	04/08/2014	04/08/2014	Active	NO

KEY EXECUTIVES

Name :	Mr. Nagesh
Designation :	Account Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Chunilal Kalidas Thakarar	520000	10.80
Chandrika Chunilal Thakarar	232500	4.83
Punit Chunilal Thakrar	1820500	37.80
Bina Punit Thakarar	922500	19.16
Karina Punit Thakrar	1000	0.02
Varsha Kumar	1000	0.02
Punit Chunilal Thakrar	500000	10.38
Hema Dilip Lakhani	2500	0.05
Far East Century Pte Limited, Singapore	318120	6.61
Openplus S. A., Uruguay	497715	10.33
Total	4815835	100.00

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	16.94
Directors or relatives of directors	83.01
Other top fifty shareholders	0.05
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Trading, Exporting, Importing of Bulk Druges.

Products :

ITC Code No.	Product Descriptions
29021900	Fluconazole
29051490	Chlorobutanol Anhydrus
29051490	Chlorobutonal
29153990	Losartan Potassium
29171940	Ferrous Fumarate
29181310	Metoprolol Base
29181310	Metoprolol Succinate
29181310	Metoprolol Tartrate
29241900	Carisoprodol Usp

Brand Names :

--

Agencies Held :

--

Exports :

Products :

Bulk Drugs

Countries :

· Brazil

· Singapore

Imports :

Products :

Raw materials

Countries :

· China

· Korea

Terms :

Selling :

Cash, Advance Payment, L/C, Cheque and Credit

Purchasing :

Cash, Advance Payment, L/C, Cheque and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Cipla
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

· Ranbaxy

· Ajanta Pharma

· Avenue Pharma

Customers :

Wholesalers and Manufacturer

Reference:	Amish Drugs
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

300 (Approximately)

Bankers :

Bank Name:	Axis Bank Limited
Branch:	Corporate Banking Branch, Worli, Mumbai, Maharashtra, 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 A/C Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (Cc/Od/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Tamilnad Mercantile Bank Limited, Hemprakash Building, Ground Floor, 92, Kazi Syed Street, Mandvi, Masjid Bunder, Mumbai - 400003, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee term loan from banks	53.382	65.240
Total	53.382	65.240

Banking Relations :	--
Auditors :
Name :	Lakhani and Company LLP Chartered Accountants
Address :	Hemsharsaka, 19 Gola Lane, Behind Badri Mahal Fort, Mumbai – 400001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFL1302L
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	Gemini Export

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Ty	Value	Amount
6,132,495	Equity Shares	Rs. 10/- each	Rs. 61.325 Million
3,867,505	Preference Shares	Rs. 10/- each	Rs. 38.675 Million
	Total		Rs. 100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,815,835	Equity Shares	Rs. 10/- each	Rs. 48.158 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Ty	Value	Amount
6,132,495	Equity Shares	Rs. 10/- each	Rs. 61.325 Million
3,867,505	Preference Shares	Rs. 10/- each	Rs. 38.675 Million
	Total		Rs. 100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,594,135	Equity Shares	Rs. 10/- each	Rs. 54.541 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	54.541	55.941	86.995
(b) Reserves & Surplus	284.147	222.729	133.902
(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)	338.688	278.670	220.897
(3) Non-Current Liabilities
(a) Long-term borrowings	53.382	65.240	15.455
(b) Deferred tax liabilities (Net)	24.807	16.728	17.214
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	3.017	2.213
Total Non-current Liabilities (3)	78.189	84.985	34.882
(4) Current Liabilities
(a) Short term borrowings	326.467	291.636	256.998
(b) Trade payables	169.181	163.211	95.828
(c) Other current liabilities	39.656	68.596	22.285
(d) Short-term provisions	3.653	14.465	13.812
Total Current Liabilities (4)	538.957	537.908	388.923
TOTAL	955.834	901.563	644.702
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	316.136	200.411	213.558
(ii) Intangible Assets	2.048	2.009	1.112
(iii) Capital work-in-progress	0.000	111.824	10.017
(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	29.176	22.293	21.608
(e) Other Non-current assets	3.783	3.986	1.094
Total Non-Current Assets	351.143	340.523	247.389
(2) Current assets
(a) Current investments
(b) Inventories	184.153	108.963	111.232
(c) Trade receivables	370.339	380.062	269.934
(d) Cash and cash equivalents	18.028	2.920	3.926
(e) Short-term loans and advances	31.076	68.978	12.060
(f) Other current assets	1.095	0.117	0.161
Total Current Assets	604.691	561.040	397.313
TOTAL	955.834	901.563	644.702

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	TOTAL INCOME		1205.728	1001.342	809.795
Less	EXPENSES		NA	NA	NA
	PROFIT BEFORE TAX		NA	NA	NA
Less	TAX		NA	NA	NA
	PROFIT AFTER TAX		66.598	46.093	45.873
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		156.495	128.722	82.849
Less	APPROPRIATIONS
		Transfer to General Reserve	1.400	18.320	0.000
	BALANCE CARRIED TO THE B/S		221.693	156.495	128.722
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1082.554	915.923	693.819
	Earnings Per Share (Rs.)		11.90	8.24	5.27

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	1200.000

The above information has been parted by Mr. Nagesh (Account Assistant).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	19.258	29.609	13.006
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Debt Equity Ratio (Total Liability/Networth)	1.18	1.39	1.29
Current Ratio (Current Asset/Current Liability)	1.12	1.04	1.02

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	86.995	55.941	54.541
Reserves & Surplus	133.902	222.729	284.147
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	220.897	278.670	338.688
Long-term borrowings	15.455	65.240	53.382
Short term borrowings	256.998	291.636	326.467
CURRENT MATURITIES OF LONG-TERM DEBTS	13.006	29.609	19.258
Total borrowings	285.459	386.485	399.107
Debt/Equity ratio	1.292	1.387	1.178

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)
Total Income	809.795	1001.342	1205.728
		23.654	20.411

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	809.795	1001.342	1205.728
Profit	45.873	46.093	66.598
	5.66%	4.60%	5.52%

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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
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 two years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

STEAMP NO: WPST/23008/2010 FILING DATE: 04.09.2010 REG. NO.: WP/7549/2010 REG. DATE: 20.09.2010

PETITIONER: MAHARASHTRA RAJYA SURAKSHA RAKSHAK RESPONDENT: M/S POLYDRUG LABORATORIES PRIVATE LIMITED

PETN. ADV : RANJANA TODANKAR (0)

DISTRICT: THANE

BENCH: DIVISION

STATUS: DISPOSED

DISP. DATE: 07.10.2010 DISP. TYPE : DISPOSED OFF

DISP BY : HON’BLE SHRI JUSTICE D. K DESHMUKH

HON’BLE SHRI JUSTICE N. D. DESHPANDE

LAST DATE : 07.10.2010 STAGE: FOR DUE ADMISSION

LAST CORAM : HON’BLE SHRI JUSTICE D. K DESHMUKH

HON’BLE SHRI JUSTICE N. D. DESHPANDE

ACT: SECURITY GUARDS ACT

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10408153	31/12/2014 *	261,300,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, AXIS HOUSE, GROUND FLOOR  , BOMBAY DYEING MILLS COMPOUND, P.B. MARG, WORLI, MUMBAI - 400025, MAHARASHTRA, INDIA	C40612269
2	10294739	28/03/2014 *	20,000,000.00	TAMILNAD MERCANTILE BANK LIMITED	TAMILNAD MERCANTILE BANK LIMITED, HEMPRAKASH BUIL  DING, GROUND FLOOR, 92, KAZI SYED, STREET MANDVI M  ASJID BUNDER MUMBAI – 400003, MAHARASHTRA, INDIA	C03422870
3	10115482	28/03/2014 *	170,000,000.00	TAMILNAD MERCANTILE BANK LIMITED	TAMILNAD MERCANTILE BANK LIMITED, HEMPRAKASH BUIL  DING, GROUND FLOOR, 92, KAZI SYED, STREET MANDVI M  ASJID BUNDER MUMBAI - 400003, MAHARASHTRA, INDIA	C03422565
4	10053481	07/07/2014 *	200,000,000.00	TAMILNAD MERCANTILE BANK LIMITED	HEMPRAKASH BUILDING, GROUND FLOOR,, 92, KAZI SYED  STREET, MANDVI, MASJID BUNDER,, MUMBAI - 400003, MAHARASHT  RA, INDIA	C10264109

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
UNSECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Working capital loans from banks	246.805	229.585
Rupee term loan from banks	3.904	0.000
Loan and advances from director	40.848	27.435
Loan and advances from others	34.910	34.616
Total	326.467	291.636

FIXED ASSETS:

· Buildings

· Plant and Equipment

· Factory Equipment’s

· Furniture and Fixtures

· 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 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.63.88
UK Pound	1	Rs.98.47
Euro	1	Rs.72.15

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	KIN
Report Prepared by :	ARC

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
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.