MIRA INFORM REPORT

Report No. :	503277
Report Date :	11.04.2018

IDENTIFICATION DETAILS

Name :	PRAGATI CHEMICALS LIMITED
Registered Office :	Plot No. A-8, Marol Industrial Estate of MIDC, Cross Road B, Street No.5, Andheri (East), Mumbai - 400093, Maharashtra
Tel. No.:	91-22-61987000
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	18.04.1979
Com. Reg. No.:	11-031289
Capital Investment / Paid-up Capital :	INR 3.600 Million
CIN No.: [Company Identification No.]	U24110MH1979PLC031289
IEC No.: [Import-Export Code No.]	Not Divulged
GSTN : [Goods & Service Tax Registration No.]	27AAACP4055B2ZT
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACP4055B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Synthetic Resins such as Adhesive, High Performance Coatings, Printing Inks, Construction and Cosmetics. [Registered Activity]
No. of Employees :	Information denied by the management

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Maximum Credit Limit :	USD 371000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1979 and it is having good track. For the financial year 2017, the company has marginal decreased its revenue from operations as compared to previous year but maintained average profit margin of 8.40%. Rating takes into consideration sound financial profile of the company marked by adequate networth base and debt free balance sheet. Further, rating also derives strength from its established track records of business operations, improvement in the profitability profile and comfortable liquidity position during the year. Trade relations are reported as fair. Business is active. Payment are seems to be regular. In view of aforesaid, 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 11.04.2018.

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION DENIED BY

Name :	Mr. Sudhir
Designation :	Accounts Department
Contact No.:	91-22-61987000
Date :	11.04.2018

LOCATIONS

Registered Office :	Plot No. A-8, Marol Industrial Estate of MIDC, Cross Road B, Street No.5, Andheri (East), Mumbai - 400093, Maharashtra, India
Tel. No.:	91-22-61987000 / 28217529
Fax No.:	91-22-28217529
E-Mail :	mohan.patel@resplast.com info@resplast.com
Website :	http://www.resplast.com
Factory :	Plot No. 3605, GIDC Estate, Ankleshwar – 393002, Gujarat, India
Tel. No.:	91-2646-220440/ 223029
Fax No.:	91-2646-2230559

DIRECTORS

AS ON 31.03.2017

Name :

Mr. Amar Arvind Vakil

Designation :

Director

Address :

Geetanjali, 9 N Camadia Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

11.08.1952

Date of Appointment :

18.04.1979

DIN No.:

00009252

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
L65990MH1981PLC025770	ELCID INVESTMENTS LIMITED	09/02/1982	-

Name :

Mr. Jalaj Ashwin Dani

Designation :

Director

Address :

Home Villa, 48, Krishna Sanghi Path, Mumbai – 400007, Maharashtra, India

Date of Birth/Age :

20.10.1969

Date of Appointment :

26.07.2012

DIN No.:

00019080

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U65191MH2012PTC230704	SMITI HOLDING AND TRADING COMPANY PRIVATE LIMITED	01/06/2017	-
U51900MH2013PTC243068	HYDRA TRADING PRIVATE LIMITED	07/05/2013	-
U65921MH2010PTC207201	HAISH HOLDING AND TRADING COMPANY PRIVATE LIMITED	27/02/2012	-
U65923MH2010PTC201679	VIJAL HOLDING AND TRADING COMPANY PRIVATE LIMITED	01/09/2017	-
U74999MH2015NPL268985	PAINTS AND COATINGS SKILL COUNCIL	08/10/2015	-
U74999DL2016PTC302008	ADDVERB TECHNOLOGIES PRIVATE LIMITED	12/02/2018	-
U74999DL2017NPL325658	SPORTSCOM ASSOCIATION	06/11/2017	-
U73100MH1983PTC031318	S C DANI RESEARCH FOUNDATION PRIVATE LIMITED	01/06/1993	-
U65921DL1984PLC019402	DANI FINLEASE LIMITED	25/01/1994	-
L31900DL1983PLC016304	HAVELLS INDIA LIMITED	16/08/2017	-
U99999MH1984PLC085950	DANI FINLEASE LIMITED	25/01/1994	-
L28992MH1991PLC168235	HITECH CORPORATION LIMITED	12/09/2004	-
U65990MH1981PTC025949	DANI HOLDING AND TRADING COMPANY PRIVATE LIMITED	01/06/1993	-
U65990MH1981PTC025831	DANI CAPITAL AND INVESTMENTS COMPANY PRIVATE LIMITED	24/08/1995	-
U65990MH1980PTC023336	DANI TRADING AND INVESTMENTS PRIVATE LIMITED	01/06/1993	-
U67120MH1979PTC021873	SUPRASAD INVESTMENTS AND TRADING COMPANY PRIVATE LIMITED	09/09/2013	-
U65990MH1979PTC021049	GEETANJALI TRADING AND INVESTMENTS PRIVATE LIMITED	19/09/2008	-
U65990MH1978PLC020745	HITECH SPECIALITIES SOLUTIONS LIMITED	01/06/1993	-
U24100GJ1978PLC022924	GUJARAT ORGANICS LIMITED	30/01/1999	-

Name :

Mr. Rupen Ashwin Choksi

Designation :

Director

Address :

11A, Jeevan Asha, 60A Peddar Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

02.08.1976

Date of Appointment :

04.05.2006

DIN No.:

00009252

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
L65990MH1981PLC025770	ELCID INVESTMENTS LIMITED	09/02/1982	-

KEY EXECUTIVES

Name :	Mr. Sudhir
Designation :	Accounts Department

MAJOR SHAREHOLDERS

AS ON 31.03.2017

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 28.07.2017

Equity Share Break up	Percentage
Category
Promoters - Individual/Hindu Undivided Family – Indian	37.78
Promoters - Bodies corporate	62.22
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Synthetic Resins such as Adhesive, High Performance Coatings, Printing Inks, Construction and Cosmetics. [Registered Activity]

Products / Services :

Item Code No. (ITC Code)	Product Description
3022	Synthetic Resins

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – (As on 31.03.2017)

Particulars	Unit	Consumption per unit of Production
Electricity	(KWH/TON)	233
Natural Gas	(SCM/TON)	158

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Information denied by the management

Bankers :

Bank Name	HDFC Bank Limited
Branch	--
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

• State Bank of India

Auditors :
Name :	Manubhai and Shah Chartered Accountants
Address :	Maker Bhavan No.2, 18, New Marine Lines, Mumbai-400020, Maharashtra, India
PAN No.:	AAFFM2086H
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 28.07.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	INR 10/- each	INR 10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
360000	Equity Shares	INR 10/- each	INR 3.600 Million

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3.600	3.600	3.600
(b) Reserves & Surplus	126.324	111.175	104.870
(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)	129.924	114.775	108.470
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.058	0.127	0.086
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.746	0.687	0.638
Total Non-current Liabilities (3)	0.804	0.814	0.724
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	14.095	13.088	21.585
(c) Other current liabilities	3.602	3.828	2.964
(d) Short-term provisions	0.350	0.246	2.908
Total Current Liabilities (4)	18.047	17.162	27.457
TOTAL	148.775	132.751	136.651
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6.154	6.201	6.651
(ii) Intangible Assets	0.045	0.071	0.098
(iii) Capital work-in-progress	0.000	0.000	0.098
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.007	0.007	0.007
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.495	1.975	1.620
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	7.701	8.254	8.474
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	21.862	14.702	16.390
(c) Trade receivables	54.925	44.038	43.285
(d) Cash and cash equivalents	60.983	63.303	65.596
(e) Short-term loans and advances	2.527	1.854	2.317
(f) Other current assets	0.777	0.600	0.589
Total Current Assets	141.074	124.497	128.177
TOTAL	148.775	132.751	136.651

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	180.403	195.294	220.719
	Other Income	4.209	3.433	3.675
	TOTAL	184.612	198.727	224.394
Less	EXPENSES
	Cost of Materials Consumed	124.762	137.190	175.489
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(3.429)	2.814	4.608
	Employees benefits expense	13.014	12.718	10.769
	Other expenses	28.591	28.499	25.617
	TOTAL	162.938	181.221	216.483
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	21.674	17.506	7.911
Less	FINANCIAL EXPENSES	0.007	0.000	0.011
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	21.667	17.506	7.900
Less	DEPRECIATION/ AMORTISATION	0.989	1.118	1.471
	PROFIT/ (LOSS) BEFORE TAX	20.678	16.388	6.429
Less	TAX	5.529	4.666	1.035
	PROFIT/ (LOSS) AFTER TAX	15.149	11.722	5.394
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	85.364	80.258	78.282
Less	APPROPRIATIONS
	Transfer to General Reserve	1.600	1.200	0.600
	Interim dividend paid during the year	0.000	4.500	0.000
	Proposed final dividend	0.000	0.000	2.341
	Income tax on interim dividend	0.000	0.916	0.000
	Tax on proposed dividend	0.000	0.000	0.477
	Total	1.600	6.616	3.418
	Balance Carried to the B/S	98.913	85.364	80.258
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	2.011	1.729	1.556
	TOTAL EARNINGS	2.011	1.729	1.556
	IMPORTS
	Raw Materials	24.013	29.826	19.101
	TOTAL IMPORTS	24.013	29.826	19.101
	Earnings / (Loss) Per Share (INR)	42.08	32.56	14.98

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	0.113	7.704	18.747
Net cash flow from operating activities	(5.339)	3.252	16.459

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365)	111.13	82.31	71.58
Account Receivables Turnover (Income / Sunday Debtors)	3.28	4.43	5.10
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	41.24	34.82	44.89
Inventory Turnover (Operating Income / Inventories)	0.99	1.19	0.48
Asset Turnover (Operating Income / Net Fixed Assets)	3.50	2.79	1.16

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.12	0.13	0.20
Debt Equity Ratio (Total Liability / Networth)	0.00	0.00	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.14	0.15	0.25
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.05	0.05	0.06
Interest Coverage Ratio (PBIT / Financial Charges)	3096.29	0.00	719.18

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin [(PAT / Sales) * 100]	%	8.40	6.00	2.44
Return on Total Assets ((PAT / Total Assets) * 100)	%	10.18	8.83	3.95
Return on Investment (ROI) ((PAT / Networth) * 100)	%	11.66	10.21	4.97

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	7.82	7.25	4.67
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	6.61	6.40	4.07
G-Score Ratio Financial (Networth / Total Assets)	0.87	0.86	0.79
G-Score Ratio Debt (Debts / Equity Capital)	0.00	0.00	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	7.82	7.25	4.67

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	3.600	3.600	3.600
Reserves & Surplus	104.870	111.175	126.324
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	108.470	114.775	129.924
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	220.719	195.294	180.403
		(11.519)	(7.625)

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	220.719	195.294	180.403
Profit	5.394	11.722	15.149
	2.44%	6.00%	8.40%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
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 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	No
35	Negative Reporting by Auditors in the Annual Report	No

CORPORATE INFORMATION

Subject is reputed manufacturer of Synthetic Resin Catering to a wide range of industries today such as Adhesive, High Performance coatings, Printing Inks, Construction and Cosmetics. Subject commenced its operations in 1979 for manufacturing Epoxy Resins, Ketonic Resins, Aminos Resins and Specialty Resins for coatings. Subjects manufacturing plant is located at GIDC, Ankleshwar in Gujarat. Subject’s strength lies in supplying consistent and quality products, product development, strong distribution network consisting of sales offices and branches across the country and also deals through a few major distributors across different regions.

INDEX OF CHARGE:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
6	Y10263125	90161878	THE HONGKONG AND SHANGAHI BANKING CORPORATION	19/07/1985	20/03/1989	05/02/1992	2500000.0	52/60, Mahatma Gandhi Road, Fort, Mumbai-400023, Maharashtra, India
5	Y10263176	90161929	THE HONGKONG AND SHANGHAI BANKING CORPORATION	12/02/1986	-	05/02/1992	3000000.0	52/60, Mahatma Gandhi Road, Fort, Mumbai-400023, Maharashtra, India
4	A07025851	80015916	GUJARAT INDUSTRIAL INVESTMENT CORPORATION LIMITED	27/10/1997	-	21/11/2006	10000000.0	Ashram Road, Ahmedabad-380009, Gujarat, India
3	B69888147	10091673	STATE BANK OF INDIA	18/01/2008	18/01/2008	01/03/2013	21000000.0	Backbay Reclamation Branch, Raheja Chamber, Nariman Point, Mumbai-400021, Maharashtra, India
2	C05362108	90163443	State Bank of India	11/10/1996	-	27/05/2014	1450000.0	Churchgate Branch, Mumbai, Maharashtra, India
1	C09301268	10408253	HDFC BANK LIMITED	01/03/2013	26/05/2014	-	12500000.0	HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Letters of credit at bank guarantee issued by bank and outstanding as on 21^st March, 2017	1.427	4.157
Total	1.427	4.157

FIXED ASSETS:

• Land
• Building
• Plant and equipment
• Furniture and Fixture
• 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 records 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	INR
US Dollar	1	INR 64.94
UK Pound	1	INR 91.75
Euro	1	INR 79.90

INFORMATION DETAILS

Information Gathered by :	ARC
Analysis Done by :	PRS
Report Prepared by :	BHG

SCORE FACTORS

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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.