MIRA INFORM REPORT

Report No. :	340281
Report Date :	08.09.2015

IDENTIFICATION DETAILS

Name :	OTSUKA CHEMICAL (INDIA) PRIVATE LIMITED (w.e.f. 11.03.2010)
Formerly Known As :	OTSUKA CHEMICAL (INDIA) LIMITED (w.e.f. 14.11.2006) OTSUKA CHEMICAL (INDIA) PRIVATE LIMITED
Registered Office :	861-862, Joshi Road, Karol Bagh, New Delhi – 110005
Tel. No.:	91-124-4597979
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.01.2006
Com. Reg. No.:	55-144368
Capital Investment / Paid-up Capital :	Rs.365.678 Million
CIN No.: [Company Identification No.]	U24239DL2006PTC144368
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	DELO02697C
PAN No.: [Permanent Account No.]	AAACO8042K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of drug intermediates.
No. of Employees :	290 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Overall financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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 (GENERAL DETAILS)

Name :	Mr. Sudhanshu
Designation :	Company Secretary
Contact No.:	91-124-4597979
Date :	07.09.2015

LOCATIONS

Registered Office :	861-862, Joshi Road, Karol Bagh, New Delhi – 110005, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	accounts@otsukaindia.com
Website :	www.otsukaindia.com
Corporate Office :	#416, JMD Pacific Square, Sector-15, Part-II, Near 32^nd Mile Stone, Gurgaon – 122001, India
Tel. No.:	91-124-4597979
Factory :	SP-3, 10 and 11, RIICO Industrial Area, Village Keshwand, Rajkot, Tehsil-Kotputli, District-Jaipur, Rajasthan, India

DIRECTORS

AS ON 17.06.2014

Name :

Mr. Takae Yamada

Designation :

Managing Director

Address :

Apartment No. 84, 8^th Floor, Block J DLF Park Place, Gurgaon - 122009, Haryana, India

Date of Birth/Age :

23.03.1966

Date of Appointment :

17.06.2014

DIN No.:

06898143

Name :

Mr. Mridul Dhanuka

Designation :

Director

Address :

Plot No. 95B, E-2 Lane, Eastern Avenue, Sainik Farms, New Delhi - 110062, India

Date of Birth/Age :

20.10.1980

Date of Appointment :

02.01.2006

DIN No.:

00199441

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	U70101DL2005PTC135106	M D BUILDTECH PRIVATE LIMITED	Director	20/04/2005	20/04/2005	-	Active	NO
2	U24100DL1993PLC052285	DHANUKA LABORATORIES LIMITED	Director	06/10/2005	06/10/2005	-	Active	NO
3	U24239DL2006PTC144368	OTSUKA CHEMICAL (INDIA) Private Limited	Director	02/01/2006	02/01/2006	-	Active	NO
4	U74899DL1960PLC003276	NORTHERN MINERALS LIMITED	Whole-time director	15/03/2007	15/03/2007	-	Amalgamated	NO
5	L34300DL1985PLC021785	HINDON MERCANTILE LIMITED	Director	07/09/2010	16/12/2009	25/03/2011	Amalgamated	NO
6	L65921DL1984PLC018746	EXCLUSIVE LEASING AND FINANCE LIMITED	Director	10/09/2010	17/12/2009	23/05/2011	Amalgamated	NO
7	U72200DL2006PTC147749	DHANUKA INFOTECH PRIVATE LIMITED	Director	30/09/2010	04/09/2010	-	Active	NO
8	L24219DL1985PLC020126	DHANUKA AGRITECH LIMITED	Whole-time director	29/07/2011	23/05/2011	-	Active	NO

Name :

Mr. Manish Dhanuka

Designation :

Director

Address :

Cottage No. 4, 31 B, Rajpur Road, Civil Lines, Delhi - 110054, India

Date of Birth/Age :

28.09.1967

Date of Appointment :

02.01.2006

DIN No.:

00238798

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	U74899DL1990PTC040509	DUKE IMPEX PRIVATE LIMITED	Director	15/06/1990	15/06/1990	-	Amalgamated	NO
2	U24100DL1993PLC052285	DHANUKA LABORATORIES LIMITED	Managing director	01/03/2009	24/02/1993	-	Active	NO
3	U24239DL2006PTC144368	OTSUKA CHEMICAL (INDIA) Private Limited	Director	02/01/2006	02/01/2006	-	Active	NO
4	U74899DL1984PTC029568	COSMO COMPONENTS PRIVATE LIMITED	Director	13/02/2007	13/02/2007	-	Amalgamated	NO
5	U51101DL2014PTC263829	A.M. BROS. FINTRADE PRIVATE LIMITED	Director	22/01/2014	22/01/2014	-	Active	NO

Name :

Mr. Arun Malhotra

Designation :

Director

Address :

43 Deshbandhu Apartments, Kalkaji, New Delhi - 110019, India

Date of Birth/Age :

14.06.1960

Date of Appointment :

26.07.2010

DIN No.:

03147644

Name :

Mr. Kozo Yoshida

Designation :

Director

Address :

707, Nihonbashi, Hama Cho 1-9.4, Chuo-Ku, Tokyo, Na, Japan

Date of Birth/Age :

13.09.1964

Date of Appointment :

26.07.2011

DIN No.:

03585039

Name :

Mr. Masahiro Ito

Designation :

Director

Address :

F-2/502, Uniworld City, Sector-30, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

18.02.1967

Date of Appointment :

17.06.2013

DIN No.:

06609311

Name :

Mr. Ryo Kikuchi

Designation :

Additional Director

Address :

Flat No.21, X Block, Regency Park II, DLF City Phase IV, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

11.12.1957

Date of Appointment :

17.06.2014

DIN No.:

02780746

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	U24239DL2006PTC144368	OTSUKA CHEMICAL (INDIA) Private Limited	Additional director	17/06/2014	30/09/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Kapil
Designation :	Assistant Manager Purchase
Name :	Mr. Sudhanshu Shekhar Thakur
Designation :	Company Secretary
Address :	Gali No.7. Near Choti Hanuman Mandir, Patel Nagar, Gurgaon - 122001, Haryana, India
Date of Birth/Age :	26.11.1975
Date of Appointment :	02.06.2008
PAN No.:	AFTPT3667E

MAJOR SHAREHOLDERS

AS ON 17.06.2014

Names of Shareholders	No. of Shares	% of Holding
Manish Dhanuka	50000	0.14
Mridul Dhanuka	50000	0.14
Dhanuka Laboratories Limited, India	1927248	5.27
Otsuka Chemical Company Limited, Japan	34540561	94.46
Total	36567809	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 17.06.2014

Category	Percentage
Foreign holdings [Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others]	94.46
Bodies corporate	5.27
Directors or relatives of Directors	0.27
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of drug intermediates.
Products :	Drug Intermediates
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Finished Goods
Countries :	· China · Japan
Imports :
Products :	Raw Material
Countries :	· China
Terms :
Selling :	Cash, Cheque, Credit
Purchasing :	Cash, Cheque, Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	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 :

Company Name :	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 :

290 (Approximately)

Bankers :

Banker Name :	Bank of Tokyo
Branch :	Delhi, 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
Short Term Borrowings
Working capital loans from banks [Secured against letter of guarantee of Otsuka Chemical Company Limited, Japan]	448.424	403.441
Total	448.424	403.441

Auditors :
Name :	Dinesh Mehta and Company Chartered Accountants
Address :	21 Dayanand Marg, Daryaganj, New Delhi – 110002, India
PAN No.:	AAAFD3623P
Memberships :	Not Divulged
Collaborators :	Not Divulged
Holding company :	· Otsuka Chemical Company Limited, Japan
Fellow Subsidiary Company :	· Otsuka Foods Company Limited, Japan · Hebron S.A (Spain), Spain · Otsuka MGC Chemical Company Limited, Japan · Shanghai Otsuka Foods Company Limited, Japan · Otsuka Chilled Foods Company Limited, Japan · P.T. Lautan Otsuka Chemical, Japan · Zhangijagang Otsuka Chemical Company Limited, Japan · Aperican Peptide Company, Inc, Japan · Korea Otsuka Chemical Limited, Korea Republic of · Chongqing Otsuka Hauyi Chemical Company Limited, Korea Republic of · Otsuka Chemical do Brasil, Brazil · ILS Company Limited, Japan · ILS (Shanghai) Company Limited, Japan · Organ Technologies Inc., Japan
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Dhanuka Laboratories Limited, India

CAPITAL STRUCTURE

AS ON 17.06.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
38500000	Equity Shares	Rs.10/- each	Rs.385.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
36567809	Equity Shares	Rs.10/- each	Rs.365.678 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	365.678	365.678	324.198
(b) Reserves & Surplus	1335.375	1194.676	898.561
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	228.143
Total Shareholders’ Funds (1) + (2)	1701.053	1560.354	1450.902
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	187.290
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	5.063	4.153	3.576
Total Non-current Liabilities (3)	5.063	4.153	190.866
(4) Current Liabilities
(a) Short term borrowings	448.424	403.441	339.279
(b) Trade payables	321.697	259.762	234.912
(c) Other current liabilities	39.458	32.396	230.428
(d) Short-term provisions	11.360	13.384	7.688
Total Current Liabilities (4)	820.939	708.983	812.307
TOTAL	2527.055	2273.490	2454.075
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1398.504	1089.706	1129.304
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	54.765	60.223
(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	35.712	115.023	19.897
(e) Other Non-current assets	4.229	30.788	0.683
Total Non-Current Assets	1438.445	1290.282	1210.107
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	351.356	306.181	260.885
(c) Trade receivables	596.269	494.395	528.495
(d) Cash and cash equivalents	25.361	103.922	322.784
(e) Short-term loans and advances	115.624	78.710	131.804
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1088.610	983.208	1243.968
TOTAL	2527.055	2273.490	2454.075

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2328.563	1866.523	1589.166
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	TOTAL EXPENSES (B)		NA	NA	NA
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		322.017	280.206	98.106
Less	FINANCIAL EXPENSES (D)		9.702	11.873	17.215
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		312.315	268.333	80.891
Less	DEPRECIATION/ AMORTISATION (F)		171.617	158.880	163.227
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		140.698	109.453	(82.336)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		140.698	109.453	(82.336)
	Earnings Per Share (Rs.)		3.85	--	--

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.000	0.000	187.290
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	291.616	202.289	(75.720)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	6.04	5.86	(5.18)
Operating Profit Margin (PBDIT/Sales)	(%)	13.83	15.01	6.17
Return on Total Assets (PBT/Total Assets)	(%)	5.57	4.93	(3.44)
Return on Investment (ROI) (PBT/Networth)		0.08	0.07	(0.06)
Debt Equity Ratio (Total Debt /Networth)		0.26	0.26	0.49
Current Ratio (Current Asset/Current Liability)		1.33	1.39	1.53

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	324.198	365.678	365.678
Reserves & Surplus	898.561	1194.676	1335.375
Share Application money pending allotment	228.143	0.000	0.000
Net worth	1450.902	1560.354	1701.053
long-term borrowings	187.290	0.000	0.000
Short term borrowings	339.279	403.441	448.424
Current Maturities of Long term debt	187.290	0.000	0.000
Total borrowings	713.859	403.441	448.424
Debt/Equity ratio	0.492	0.259	0.264

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	1589.166	1866.523	2328.563
		17.453	24.754

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	1589.166	1866.523	2328.563
Profit	(82.336)	109.453	140.698
	(5.18%)	5.86%	6.04%

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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
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 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

OVERALL REVIEW

Overall this FY has been a good year for the company. We register a 24.75% growth in sales volume and 30.0% growth in production capacity. Our profit increased by 28.61%. We also recorded highest production of GCLE (748.2 MT). During this period they also diversified into forward integration of GCLE to produce another vital intermediate.

HIGHLIGHTS OF FY 2013 - 14

During the period, subject has successfully implemented many productivity increasing and cost reducing measures. As a result of these efforts and measures taken during this FY, subject is able to increase our production capacity and reduce the cost of production of GCLE at the right time, enabling us to survive in today's stiffest competition offered by Indian and Chinese competitors. This year they are able to increase their GCLE production capacity by 30 % as compared to last financial year and various other steps are also taken to improve the productivity and to minimize the cost, which may get reflected in the results of coming years. They are gearing ourselves to face the future challenge and to overcome the resistance offered by their competitors and they are confident that they will emerge out as victorious.

During this financial year, subject has also diversified into forward integration of GCLE, by creating a new facility in the existing premises with an investment of about Rs 450.000 Million to produce a new intermediate product GCTA. This intermediate will be supplied to our patent company, OCC, japan to produce an advance drug intermediate for Originator in Japan. The new facility is, not only utilized to produce GCTA, but is also used for the production of GCLE when GCTA is not produced. This additional capacity of GCLE produced in GCTA facility has increased their market share of GCLE not only in India but also due to the availability of extra material they have started exporting GCLE to China.

FINANCIAL REVIEW

This Financial Year subject has recorded a sales turnover of Rs.2328.563 Million and registered a growth of 24.75% as compared to previous Financial Year 2012-2013. Subject has registered Rs.140.698 Million profit before tax compared to profit of Rs.109.453 Million i.e. greater than 28.61% during the same period last year.

NO CHARGES EXIST FOR COMPANY.

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 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.66.74
UK Pound	1	Rs.101.36
Euro	1	Rs.74.27

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	RAS
Report Prepared by :	NKT

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	6
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--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		47

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.