MIRA INFORM REPORT

Report No. :	351320
Report Date :	25.11.2015

IDENTIFICATION DETAILS

Name :	SHALINA LABORATORIES PRIVATE LIMITED
Registered Office :	96, Maker Chamber VI, Nariman Point, Mumbai – 400 021, Maharashtra
Tel. No.:	91-22-2815577
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	13.12.1984
Com. Reg. No.:	11-034786
Capital Investment / Paid-up Capital :	Rs. 61.977 Million
CIN No.: [Company Identification No.]	U24239MH1984PTC034786
IEC No.:	0390002518
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCS1423M
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Pharmaceutical Formulations.
No. of Employees :	800 (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 3900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Shalina Laboratories Private Limited was incorporated in the year 1984. The company manufacturer pharmaceutical formulations and chemicals. It has a manufacturing unit in Jejuri (Maharashtra). The rating on reflects company’s strong financial risk profile marked by healthy net worth, negligible debt and above average debt protection metrics. The rating further takes into account on company established track record of operations along with vas experienced of the promoters and wide distribution network. This rating strength is partially offset on company presence in fragmented nature of pharma industry, working capital requirement and stiff competition in pharma sector. However, trade relations are reported to be fair. Business is active. Payment are reported to be usually correct. In view of aforesaid, the company can be considered 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	Long Term Bank Facilities = BB-
Rating Explanation	Inadequate credit quality and high credit risk
Date	March 2015

Rating Agency Name	CRISIL
Rating	Short Term Bank Facilities = A4+
Rating Explanation	Minimal degree of safety and very high credit risk
Date	March 2015

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Sushil Agarwal
Designation :	Company Secretary
Contact No.:	91-9167233484
Date :	24.11.2015

LOCATIONS

Registered Office :	96, Maker Chamber VI, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-2815577
Mobile No.:	91-9167233484 (Mr. Sushil Agarwal)
Fax No.:	91-22-2843606
E-Mail :	sushil.agarwal@shalina.com
Website :	http://www.shalina.com
Area :	3000 sq. ft.
Location :	Owned
Locality :	Commercial
Factory 1 :	Plot No. E2, EOU Unit 96, MIDC Jejuri Industrial Area, Taluka Puranda Jejure, Pune – 412303, Maharashtra, India
Factory 2 :	C/48/3, TTC Industrial Area, Near Galaxy Research Centre, Pawnel, Navi Mumbai 400 705, Maharashtra, India
Tel. No.:	91-22-2763 5222
Fax No.:	91-22-2763 5226

DIRECTORS

AS ON 30.09.2014

Name :

Ms. Neelam Virji

Designation :

Additional Director

Address :

20 Waldeck Road, London, UK

Date of Birth/Age :

27.02.1952

Date of Appointment :

30.05.2006

DIN No.:

00309142

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	U51900MH1981PTC024779	SHALINA TRADING CO PVT LTD	Director	30/05/2006	30/05/2006	-	Active	NO
2	U24239MH1984PTC034786	SHALINA LABORATORIES PRIVATE LIMITED	Director	30/05/2006	30/05/2006	-	Active	NO

Name :

Mr. Sundar Sankaran

Designation :

Director

Address :

11D/22, Mahindra Park, Narayan Nagar, LBS Road, Ghatkopar (West), Mumbai, 400086, Maharashtra, India

Date of Birth/Age :

23.05.1965

Date of Appointment :

12.03.2011

DIN No.:

01098634

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	U74140MH1999PTC123288	ADVANTAGE-INDIA CONSULTING PRIVATE LIMITED	Director	24/12/1999	24/12/1999	-	Active	NO
2	U80301MH2008PTC178276	Finberry Academy Private Limited	Director	25/01/2008	25/01/2008	-	Active	NO
3	U24240MH2010PTC207751	Bekandze Healthcare Private Limited	Director	16/09/2010	16/09/2010	-	Active	NO
4	U51900MH1981PTC024779	SHALINA TRADING CO PVT LTD	Director	23/08/2011	12/03/2011	-	Active	NO
5	U24239MH1984PTC034786	SHALINA LABORATORIES PRIVATE LIMITED	Director	23/08/2011	12/03/2011	-	Active	NO

Name :

Fazle Abbas Virji

Designation :

Director

Address :

Cluster 12, Villa 16, 393, Jumeirah Island, Dubai, 340575, United Arab Emirates

Date of Appointment :

10.02.2015

DIN No.:

07085209

Name :

Shalina Virji

Designation :

Director

Address :

Fairmont South 826 0, Jumeira Palm, Dubai, 340575, United Arab Emirates

Date of Appointment :

10.02.2015

DIN No.:

07085210

Name :

Pramod Hanumant Pimplikar

Designation :

Managing Director

Address :

Flat No. 907, B-Wing, Plot No. 41, Sector 15, Cbd Belapur, Navi Mumbai - 400614, Maharashtra, India

Date of Appointment :

17.03.2015

DIN No.:

01988912

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	U24100MH2005PTC152680	MERCK SPECIALITIES PRIVATE LIMITED	Director	26/10/2007	26/10/2007	13/01/2015	Active	NO
2	U33112MH2009PTC198023	BANGALORE GENEI (INDIA) PRIVATE LIMITED	Director	14/12/2009	11/10/2009	-	Amalgamated	NO
3	L99999MH1967PLC013726	MERCK LIMITED	Whole-time director	01/04/2010	01/04/2010	13/01/2015	Active	NO
4	U51900MH1981PTC024779	SHALINA TRADING CO PVT LTD	Director	30/09/2015	17/03/2015	-	Active	NO
5	U24239MH1984PTC034786	SHALINA LABORATORIES PRIVATE LIMITED	Managing director	17/03/2015	17/03/2015	-	Active	NO

KEY EXECUTIVES

Name :	Sushil Kumar Agarwal
Designation :	Secretary
Address :	A-301, Harmony Siddheshwar Gardens, Kolshet Road, Near Dhokali, Chitalsar, Manpada, Thane - 400607, Maharashtra, India
Date of Appointment :	01.04.2013
PAN No:	ACXPA5624K

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Neelam S. Virji	6197680
Neelam S. Virji J/W Sundar Sankaran	1
Neelam S. Virji J/W Taizoon M. Khumri	15
Total	6197696

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharmaceutical Formulations.
Products :	Not Divulged
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	African Countries
Imports :
Products :	Raw Material
Countries :	Thailand China
Terms :
Selling :	Cash and Credit (30/60/90 days)
Purchasing :	Cash and Credit (30/60/90 days)

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

End Users, OEMs

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

800 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Overseas Branch, Cuff Parade
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. 660.000 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
SHORT TERM BORROWING
Working capital loans from banks	430.518	242.668
Borrowings	8.593	0.000
Total	439.111	242.668

Auditors :
Name :	Jagtiani and Naiks Chartered Accountant
Address :	1 2 - 1 3 Esplanade, 3rd Floor, 3 Amrit Keshav Nayak Marg, Fort, Mumbai 400001, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAMPJ3030F
Memberships :	Not Available
Collaborators :	Not Available
Associate Companies :	Shalina Trading Company Private Limited

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
8400000	Equity Shares	Rs.10/- each	Rs. 84.000 Million

Issued Capital:

No. of Shares	Type	Value	Amount
8375356	Equity Shares	Rs.10/- each	Rs. 83.754 Million

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
6197696	Equity Shares	Rs.10/- each	Rs. 61.977 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	61.977	61.977	61.977
(b) Reserves & Surplus	1314.708	1142.705	958.814
(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)	1376.685	1204.682	1020.791
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	37.438	43.652	46.329
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	37.438	43.652	46.329
(4) Current Liabilities
(a) Short term borrowings	439.111	242.668	507.253
(b) Trade payables	499.326	388.105	538.090
(c) Other current liabilities	31.619	30.619	60.677
(d) Short-term provisions	18.023	15.683	30.516
Total Current Liabilities (4)	988.079	677.075	1136.536
TOTAL	2402.202	1925.409	2203.656
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	192.486	192.567	197.004
(ii) Intangible Assets	11.743	13.720	14.728
(iii) Capital work-in-progress	10.575	1.367	9.955
(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	73.050	49.993	92.804
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	287.854	257.647	314.491
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	409.848	295.120	417.010
(c) Trade receivables	1308.175	1015.286	1208.861
(d) Cash and cash equivalents	103.124	49.998	47.665
(e) Short-term loans and advances	56.285	65.185	68.163
(f) Other current assets	236.916	242.173	147.466
Total Current Assets	2114.348	1667.762	1889.165
TOTAL	2402.202	1925.409	2203.656

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income
	Other Income
	TOTAL	2703.200	2719.600	2968.400
Less	EXPENSES
	TOTAL	2403.700	2410.400	2693.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	299.500	309.200	274.600
Less/ Add	DEPRECIATION/ AMORTISATION	37.900	33.200	25.000
	PROFIT/ (LOSS) BEFORE TAX	261.600	276.000	249.600
Less	TAX	90.300	92.300	83.900
	PROFIT/ (LOSS) AFTER TAX	171.300	183.700	165.700
	EARNINGS IN FOREIGN CURRENCY
	Export Earnings	2550.500	2503.500	2761.700
	TOTAL EARNINGS	2550.500	2503.500	2761.700
	IMPORTS
	Raw Materials	299.400	278.700	262.200
	TOTAL IMPORTS	299.400	278.700	262.200
	Earnings Per Share (Rs.)	27.63	29.64	26.73

Particulars	31.03.2015
Sales Turnover (Approximately)	2720.000

The above information has been parted by Mr. Sushil Agarwal (Company Secretary)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	(5.101)	441.803	13.180

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	6.34	6.75	5.58
Return on Total Assets (PBT/Total Assets}	(%)	10.94	14.34	11.38
Return on Investment (ROI) (PBT/Networth)		0.19	0.23	0.24
Debt Equity Ratio (Total Debt /Networth)		0.32	0.20	0.50
Current Ratio (Current Asset/Current Liability)		2.14	2.46	1.66

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	61.977	61.977	61.977
Reserves & Surplus	958.814	1142.705	1314.708
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1020.791	1204.682	1376.685
long-term borrowings	0.000	0.000	0.000
Short term borrowings	507.253	242.668	439.111
Current Maturities of Long Term Debt	0.000	0.000	0.000
Total borrowings	507.253	242.668	439.111
Debt/Equity ratio	0.497	0.201	0.319

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	2968.400	2719.600	2703.200
		(8.382)	(0.603)

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	2968.400	2719.600	2703.200
Profit	165.700	183.700	171.300
	5.58%	6.75%	6.34%

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	Yes
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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
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	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

BUSINESS PERFORMANCE

The company achieved Gross Sales of Rs.2682.300 million during the current year as compared to Rs.2659.300 million achieved during previous year representing marginal increase of 0.86% over the previous year’s turnover. Other Income for the year was Rs. 20.900 million as compared with Rs. 60.200 million during previous year due to lower exchange gains.

The Company’s profit before tax was Rs.261.600 million as compared to Rs.276.000 million during the previous year and the profit after tax was Rs 172.000 million as compared to Rs.183.900 million during the previous year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10095043	05/02/2008	180,000,000.00	Bank Of India	Mahalaxmi Branch,8-A,, Bhuabhai Desai Road,, Mumb  ai, Maharashtra - 400026, INDIA	A35313915
2	90213884	17/09/2002	18,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH; WORLD TRADE CENTRE, CUFFE PARADE, BOMBAY, Maharashtra - 400005, INDIA	-
3	90236184	17/09/2002	18,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, WORLD TRADE CENTER; CUFFE PARADE, MUMBAI, Maharashtra, INDIA	-
4	90243579	28/07/2004 *	18,000,000.00	SBI BANK	OVERSEAS BR.; WORLD TRADE CENTRE CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
5	90212954	20/08/2010 *	660,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	A96152111
6	90235764	20/05/2002 *	29,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, WORLD TRADE CENTER; CUFFE PARADE, MUMBAI, Maharashtra, INDIA	-
7	90243306	28/07/2004 *	29,000,000.00	SBI BANK	OVERSEAS BR.; WORLD TRADE CENTRE CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
8	90243965	09/09/1997 *	29,000,000.00	SBI BANK	OVERSEAS BR WORLD TRADE CENTRE CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-

* Date of charge modification

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. 66.38
UK Pound	1	Rs. 100.45
Euro	1	Rs. 70.55

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	KAS
Report Prepared by :	JYO

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--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	NO
--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.