MIRA INFORM REPORT

Report No. :	323020
Report Date :	25.05.2015

IDENTIFICATION DETAILS

Name :	PIONEER PLASTIC INDUSTRIES LIMITED (w.e.f 03.09.2001)
Formerly Known As :	PIONEER PLASTIC INDUSTRIES (DELHI) PRIVATE LIMITED
Registered Office :	A-135, Okhla Industrial Area, Phase- II, New Delhi - 110020
Tel. No.:	91-11-40779900
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.07.1982
Com. Reg. No.:	55-014107
Capital Investment / Paid-up Capital :	Rs. 67.357 Million
CIN No.: [Company Identification No.]	U25209DL1982PLC014107
TAN No.: [Tax Deduction & Collection Account No.]	DELP09210F
PAN No.: [Permanent Account No.]	AAACP1585A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing and sale of HDPE and PVC Plastic Pipes and Fittings, Sprinkler and Drip Irrigation Systems and Ductile Pipe and parts.
No. of Employees :	70 (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 is an established company having moderate track record. The rating reflects company moderate financial risk profile marked by low reserves level and increased in the borrowing of the company during FY2014. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company 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

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Sanjay Mantri
Designation :	Finance Manager
Contact No.:	91-9818866086
Date :	18.05.2015

LOCATIONS

Registered Office / Factory :	A-135, Okhla Industrial Area, Phase- II, New Delhi – 110020, India
Tel. No.:	91-11-40779900
Mobile No.:	91-9818866086 (Mr. Sanjay Mantri)
Fax No.:	91-11-26384092
E-Mail :	pioneer_accounts@yahoo.com ppil@vsnl.net
Location :	Owned

DIRECTORS

As on 30.09.2014

Name :

Mr. Mahabir Prasad Periwal

Designation :

Director

Address :

9, New Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

12.08.1944

Date of Appointment :

19.03.1986

PAN No.:

AFSPP4114P

DIN No.:

00008112

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date ofappointmentat current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29299WB1948PTC017383	Pioneer Plastic Works Private Limited	Director	15/10/1966	15/10/1966	26/03/2007	Active	NO
2	U25209DL1982PLC014107	Pioneer Plastic Industries Limited	Director	19/03/1986	19/03/1986	-	Active	NO
3	U45201DL2006PLC146484	Sarda Housing Development Limited Tfr. From Kolkata To Delhi	Director	18/06/1988	18/06/1988	-	Active	NO
4	U48678WB1990PTC098960	PURMA OVERSEAS PRIVATE LIMITED	Director	20/05/2003	20/05/2003	-	Active	NO
5	U74899DL1972PTC006194	Consolidated Aerials Private Limited	Director	02/06/2003	02/06/2003	-	Active	NO
6	L51109WB1983PLC036270	Pioneer Protec Limited	Managing director	01/01/2015	05/01/2007	-	Active	NO
7	U67120WB1982PLC034860	Sheela Timber Industries Limited	Director	29/09/2007	09/01/2007	01/04/2008	Active	NO
8	L18101WB1989PLC046387	Nagreeka Exports Limited	Director	10/09/2014	07/08/2008	-	Active	NO
9	U65993WB1990PTC048158	Eldorado Holdings Private Limited	Director	30/09/2008	11/08/2008	01/01/2010	Active	NO
10	L67120WB1981PLC034027	J S M Investments Limited	Additional director	01/01/2015	01/01/2015	-	Active	NO

Name :

Mrs. Aruna Periwal

Designation :

Director

Address :

9, New Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

18.11.1945

Date of Appointment :

28.07.1982

PAN No.:

AFWPP8883K

Passport No.:

00013686

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	U25209DL1982PLC014107	Pioneer Plastic Industries Limited	Director	28/07/1982	28/07/1982	-	Active	NO
2	U65910DL1985PLC019985	Pioneer Urban Land and Infrastructure Limited	Director	05/08/1991	05/08/1991	01/03/2012	Active	NO
3	L67120WB1981PLC034027	J S M Investments Limited	Managing director	01/01/2015	24/05/2003	-	Active	NO
4	U70109WB1990PTC048331	Ideal Plaza Private Limited	Director	01/01/2006	01/01/2006	01/04/2008	Active	NO
5	U67120WB1982PLC034860	Sheela Timber Industries Limited	Director	01/03/2010	01/04/2008	-	Active	NO
6	U48678WB1990PTC098960	Purma Overseas Private Limited	Whole-time director	01/03/2010	01/03/2010	-	Active	NO
7	U60231DL2008PTC175701	New Age Logistics Private Limited	Director	15/11/2011	15/11/2011	-	Active	NO
8	U74120DL2008PTC175237	New Age Warehousing Private Limited	Director	15/11/2011	15/11/2011	-	Active	NO
9	U74910DL2008PTC175102	Spectrum Outsourcing Solutions Private Limited	Director	15/11/2011	15/11/2011	-	Active	NO
10	U45200DL2008PTC175103	Accord Retail Ventures Private Limited	Director	15/11/2011	15/11/2011	-	Active	NO
11	L51109WB1983PLC036270	Pioneer Protec Limited	Director	30/09/2014	01/09/2014	-	Active	NO
12	L51909WB1956PLC023236	Periwal Industrial Corpn. Limited	Director	30/09/2014	01/09/2014	-	Active	NO
13	L67120WB1972PLC028566	Badridas Investment Co Limited	Managing director	01/01/2015	01/09/2014	-	Active	NO

Name :

Mr. Raghuveer Sharma

Designation :

Director

Address :

F – 41, Army Colony, Sector – 29, Faridabad, India

Date of Birth/Age :

12.06.1965

Date of Appointment :

01.03.2003

PAN No.:

AIMPS4642L

DIN No.:

00328455

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ DesignatedPartner	Date of appointment at current designation	Original date of appointment	Date ofcessation	Company/ LLP Status	Defaulting status
1	U74899DL1960PTC003355	Prompt Private Limited	Director	10/06/1988	10/06/1988	18/01/2011	Active	NO
2	U25209RJ2002PTC017769	Mohit Polytech Private Limited	Director	19/08/2002	19/08/2002	27/04/2010	Active	NO
3	U25209DL1982PLC014107	Pioneer Plastic Industries Limited	Director	01/03/2003	01/03/2003	-	Active	NO
4	U25191HR2009PTC039250	Vedanta Polymers Private Limited	Director	03/07/2009	03/07/2009	27/05/2011	Active	NO
5	U25209RJ1997PTC014519	Purma Plast Private Limited (Transfer From W. Bengal To Rajasth.)	Director	28/03/2011	28/03/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sanjay Mantri
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Mahabir Prasad Peiwal	2771645
Aruna Periwal	184525
M.P.Periwal	450
Manish Periwal	122000
Jhimi Devi	119910
Mahabir Prasad Periwal (Karta)	105000
Ashish Kumar Periwal	139000
Pioneer Profin Limited, India	450000
Pioneer Protec Limited, India	886000
J.S.M. Investments Limited, India	315000
Badridas Investments Co. Limited, India	859950
Periwal Industrial Corporation Limited, India	137510
Purma Overseas Private Limited, India	544700
Upasana Periwal	100000
Total	6735690

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	47.00
Directors or relatives of Directors	53.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacturing and sale of HDPE and PVC Plastic Pipes and Fittings, Sprinkler and Drip Irrigation Systems and Ductile Pipe and parts.

Products :

Item Code No.	Product Description
391710.00	Plastic Pipes and Fittings
842490.00	Mechanical appliances for agriculture and horticulture
390422.02	PVC Compound

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Indochem and Polymers, Delhi
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 :

Wholesaler, Retailers and End users

Reference :	Prakash and Company, Ghaziabad, Uttar Pradesh, India
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 :

70 (Approximately) )

Bankers :

Bank Name	United Bank of India
Branch	Asaf ali Road Branch, 2A/3, Asaf Ali Road, New Delhi – 110002, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash Credit = Rs. 50.000 Million L/C = Rs. 20.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loan from banks	1.834	0.316
SHORT TERM BORROWING
Term loan from banks	12.631	0.000
Working capital loan from banks	44.011	35.235
Total	58.476	35.551

Auditors :
Name :	P.K. Taparia and Associates Chartered Accountants
Address :	15, Radha Bazar, Hissar - 125001, Haryana, India
PAN N Income-tax PAN of auditor or auditor's firm :	AHBPP1257G
Memberships :	Not Available
Collaborators :	Not Available
(Other Related Parties) Relatives of Key Management Personnel	Mohit Polytech Private Limited Versa Poly Pipes Private Limited Pioneer Urban Land and Infrastructure Limited
Associates includes enterprises in which management personnel have significant influence :	Purma Plast Private Limited (Transfer from W. Bengal to Rajasth.) DIN no. : U25209RJ1997PTC014519 Purma Overseas Private Limited JSM Investment Limited Sheela Timber Industries Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7,000,000	Equity Shares	Rs.10/- each	Rs. 70.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6,735,690	Equity Shares	Rs.10/- each	Rs. 67.357 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	67.357	67.357	67.357
(b) Reserves & Surplus	24.270	21.542	19.436
(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)	91.627	88.899	86.793
(3) Non-Current Liabilities
(a) long-term borrowings	54.294	42.214	32.750
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.209	0.209	0.281
(d) long-term provisions	1.802	1.460	1.328
Total Non-current Liabilities (3)	56.305	43.883	34.359
(4) Current Liabilities
(a) Short term borrowings	80.991	39.802	25.027
(b) Trade payables	121.495	82.790	67.527
(c) Other current liabilities	16.609	27.179	25.277
(d) Short-term provisions	6.512	4.485	5.369
Total Current Liabilities (4)	225.607	154.256	123.200
TOTAL	373.539	287.038	244.352
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	12.288	9.958	10.641
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.504	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2.140	2.140	2.140
(c) Deferred tax assets (net)	0.631	0.456	0.362
(d) Long-term Loan and Advances	7.442	8.523	4.346
(e) Other Non-current assets	33.371	35.645	36.203
Total Non-Current Assets	56.376	56.722	53.692
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	76.652	87.246	62.173
(c) Trade receivables	209.976	120.940	103.999
(d) Cash and cash equivalents	15.980	11.522	11.049
(e) Short-term loans and advances	9.913	9.985	12.949
(f) Other current assets	4.642	0.623	0.490
Total Current Assets	317.163	230.316	190.660
TOTAL	373.539	287.038	244.352

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	441.855	237.810	277.832
	Other Income	0.805	0.167	0.189
	TOTAL (A)	442.660	237.977	278.021
Less	EXPENSES
	Cost of Materials Consumed	222.504	141.324	167.472
	Purchases of Stock-in-Trade	134.955	64.526	73.372
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	18.021	(21.972)	(16.983)
	Employees benefits expense	10.279	9.865	11.219
	Other expenses	37.927	30.252	30.211
	Exceptional item	(0.024)	(0.926)	(0.244)
	TOTAL (B)	423.662	223.069	265.047
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	18.998	14.908	12.974
Less	FINANCIAL EXPENSES (D)	12.419	9.693	7.068
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	6.579	5.215	5.906
Less/ Add	DEPRECIATION/ AMORTISATION (F)	2.312	1.864	1.901
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	4.267	3.351	4.005
Less	TAX (H)	1.539	1.245	1.429
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	2.728	2.106	2.576
	Earnings / (Loss) Per Share (Rs.)	0.4	0.31	0.38

Particulars	31.03.2015
Sales Turnover (Approximately)	450.000

Expected Sales (2015-2016) : Rs.600.000 Million

The above information has been parted by Mr. Sanjay Mantri (Finance Manager)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	1.912	1.575	4.123
Cash generated from operations	11.352	3.119	4.698

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.62	0.89	0.93
Operating Profit Margin (PBIDT/Sales)	(%)	4.30	6.27	4.67
Return on Total Assets (PBT/Total Assets}	(%)	1.15	1.18	1.66
Return on Investment (ROI) (PBT/Networth)		0.05	0.04	0.05
Debt Equity Ratio (Total Debt /Networth)		1.50	0.94	0.71
Current Ratio (Current Asset/Current Liability)		1.41	1.49	1.55

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	67.357	67.357	67.357
Reserves & Surplus	19.436	21.542	24.270
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	86.793	88.899	91.627
long-term borrowings	32.750	42.214	54.294
Short term borrowings	25.027	39.802	80.991
Current maturities of long-term debts	4.123	1.575	1.912
Total borrowings	61.900	83.591	137.197
Debt/Equity ratio	0.713	0.940	1.497

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	277.832	237.810	441.855
		(14.405)	85.802

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	277.832	237.810	441.855
Profit	2.576	2.106	2.728
	0.93%	0.89%	0.62%

LOCAL AGENCY FURTHER INFORMATION

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

UNSECURED LOAN

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Rupee term loan from banks	52.460	41.898
SHORT TERM BORROWING
Other Loans and advances	24.349	0.000
Loans repayable on demand	0.000	4.567
Total	76.809	46.465

NATURE OF OPERATION

Subjct was incorporated in 1982 and engaged in the business of manufacturing and sale of HDPE and PVC Plastic Pipes and Fittings, Sprinkler and Drip Irrigation Systems and Ductile Pipe and parts.

PERFORMANCE REVIEW

The Company earned total revenue of Rs.442.660 Million as against Rs.237.978 Million, showing an increase of 86% over the previous year. The Company has earned net profit after tax Rs.2.728 Million as against Rs.2.107 Million showing an increase 29.50% over the previous year. The Company has performed extremely well during the year with growing demand

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90031982	20/12/2013 *	70,000,000.00	UNITED BANK OF INDIA	Asaf Ali Road Branch, 2A/3, Asaf Ali Road, New Delhi, Delhi - 110002, INDIA	B94991015

FIXED ASSETS

• Land
• Buildings
• Factory building
• Plant and equipment
• Factory equipments
• Furniture and fixtures
• Office equipment
• 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.63.57
UK Pound	1	Rs.99.67
Euro	1	Rs.70.93

INFORMATION DETAILS

Information Gathered by :	RKH
Analysis Done by :	DIV
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		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	--

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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.