MIRA INFORM REPORT

Report Date :

15.04.2011

Note:

The registered office of the company has been shifted from No.2, V.P. Rathinasamy Nadar Road, North Chokkikulam, Madurai – 625 014, Tamilnadu to the present address w.e.f. 01.09.2009.

IDENTIFICATION DETAILS

Name :	HI TECH ARAI PRIVATE LIMITED (w.e.f. 14.12.2010)
Formerly Known As :	HITECH ANCILLARIES PRIVATE LIMITED HI-TECH ANCILLARIES LIMITED (w.e.f. 01.04.1990) HI TECH ARAI LIMITED (w.e.f. 23.12.1993)
Registered Office :	G2, No.12, 12^th Cross Street, Dhandeeswara Nagar, Velachery, Chennai – 600 042, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.02.1985
Com. Reg. No.:	18-011572
CIN No.: [Company Identification No.]	U29130TN1985PTC011572
TAN No.: [Tax Deduction & Collection Account No.]	MRIH00107C
PAN No.: [Permanent Account No.]	AAACH3917N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Oil Seals and Automobile Components.

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 4231000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track. Financial position appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	G2, No.12, 12^th Cross Street, Dhandeeswara Nagar, Velachery, Chennai – 600 042, Tamilnadu, India
Tel. No.:	91-452-2536116
Fax No.:	91-452-2539111
E-Mail :	jc@hitecharai.com hta@hitecharai.com
Factory :	No.66,67,68, SIDCO Industrial Estate, Kappalur, Madurai – 625 008, Tamilnadu, India
Tel. No.:	91-452-2487940, 2486886

DIRECTORS

As on 03.09.2010

Name :	Mr. Ramaiya Lakshminarayanan
Designation :	Chairman
Address :	S. No.180/ 2B 1A, 2B 1B, Lake View Area, Madurai – Melur Road, Uthangudi, Madurai – 625 107, Tamilnadu, India
Date of Birth/Age :	15.05.1935
Qualification :	B.Sc (Chemistry) B.Sc (Tech) in Chemical Engineering Fellow of the Royal Society of Chemistry, London Fellow of the Plastics and Rubber Institute, London Fellow of the Textile Institute, UK
Experience :	54 Years
Date of Appointment :	21.05.1986
DIN No.:	00501071
Name :	Mrs. Miyo Mori
Designation :	Vice-Chairman
Address :	4-6-5, Higashi, Shibuya-Ku, Tokyo, Japan
Date of Birth/Age :	05.01.1939
Date of Appointment :	30.10.1998
DIN No.:	00646810
Name :	Mrs. Malaikudi Srinivasan Rajee
Designation :	Director
Address :	S. No.180/ 2B 1A, 2B 1B, Lake View Area, Madurai – Melur Road, Uthangudi, Madurai – 625 107, Tamilnadu, India
Date of Birth/Age :	15.01.1941
Date of Appointment :	18.02.1985
DIN No.:	00501260
Name :	Mr. Bendoor Tarachand Bangera
Designation :	Managing Director
Address :	Plot No.48, Vishwanathapuram Main Road, Madurai – 625 014, Tamilnadu, India
Date of Birth/Age :	17.03.1942
Qualification :	B.E., M.B.A. (IIM - Ahmedabad)
Experience :	44 Years
Date of Appointment :	07.02.1990
DIN No.:	00432492
Name :	Mr. Goichi Mori
Designation :	Director
Address :	2-1-1-4006, Tsukuda, Chuo-Ku, Tokyo, Japan
Date of Birth/Age :	18.05.1965
Date of Appointment :	30.10.1998
DIN No.:	00646904
Name :	Mr. Yoshiteru Shimyamada
Designation :	Director
Address :	4-7-5-206, Higashinakashinjuku, Kashiwa City, Chiba Prefecture, Japan
Date of Birth/Age :	30.03.1947
Date of Appointment :	27.03.2003
Date of Ceasing :	03.09.2010
DIN No.:	00646982
Name :	Mr. Tsuneo Kosugi
Designation :	Director
Address :	2-21-10, Miyanodai, Sakura City, Chiba Prefecture, Japan
Date of Birth/Age :	04.07.1952
Date of Appointment :	19.09.2005
DIN No.:	00647097
Name :	Mr. Yoshiyuki Saho
Designation :	Director
Address :	Ishimachi Utsunomiya Tochigi, Sapasu City Japan
Date of Birth/Age :	03.02.1963
Date of Appointment :	28.09.2009
Date of Ceasing :	03.09.2010
DIN No.:	02890723
Name :	Mr. Minoru Furusawa
Designation :	Director
Address :	20-9, Nishiogi-Minami, 4-Chome, Suginami-Ku, Tokyo 1008086
Date of Birth/Age :	25.03.1959
Date of Appointment :	29.09.2008
Date of Ceasing :	31.03.2010
DIN No.:	02552346
Name :	Mr. Motai Azumi
Designation :	Director
Address :	56-12, Torigaoka Totsuka-ku, Yokohama City Kanagawa, Japan
Date of Birth/Age :	26.09.1958
Date of Appointment :	12.05.2010
DIN No.:	03074987
Name :	Mr. Osamu Minami
Designation :	Alternate Director
Address :	25, Arunachalam Road, Kottupuram, Chennai – 600 085, Tamilnadu, India
Date of Birth/Age :	15.08.1957
Date of Appointment :	26.03.2009
Date of Ceasing :	08.02.2010
DIN No.:	00919448
Name :	Mr. Hiroshi Makigawa
Designation :	Alternate Director
Address :	25, Arunachalam Road, Kotturpuram, Chennai – 600 085, Tamilnadu, India
Date of Birth/Age :	12.12.1960
Date of Appointment :	27.02.2010
DIN No.:	03006813
Name :	Mr. Hiroshi Kojima
Designation :	Director
Address :	2-1-3-226, Tokamida, Inzai City Chiba
Date of Birth/Age :	16.08.1950
Date of Appointment :	23.12.2010
DIN No.:	03319177
Name :	Mr. Shinji Nagakura
Designation :	Director
Address :	2-11-15-1104, Otowa Bunkyo-ku Tokyo
Date of Birth/Age :	07.11.1974
Date of Appointment :	23.12.2010
DIN No.:	03319178
Name :	Mr. Takayuki Ikeda
Designation :	Director
Address :	1068-2-812, Oowadashinden, Yachiyo City Chiba Prefecture
Date of Birth/Age :	25.01.1952
Date of Appointment :	23.12.2010
DIN No.:	03319179

KEY EXECUTIVES

Name :	Mr. R.R. Gnanasekaran
Designation :	Company Secretary
Address :	14B/ 2, Sri Srinivasa Perumal Koil Street, Madurai – 625 009, Tamilnadu, India
Date of Birth/Age :	04.03.1952
Date of Appointment :	01.03.2003
Date of Ceasing :	31.03.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 03.09.2010

Names of Shareholders	No. of Shares	Percentage of holding
M.S. Rajee	32000	0.57
R. Lakshminarayanan	31900	0.56
R. Kalyanasundaram	25	0.00
L. Sujanitha	26000	0.46
Bina A. Pai	1000	0.02
Sameer P. Rao	2000	0.04
Veena Bangera	6000	0.11
Arai Seisakusho Company Limited, Japan	4695075	83.84
Mitsubishi Corporation, Japan	800000	14.29
B.T. Bangera	6000	0.11
Total	5600000	100.00

As on 03.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	98.13
Directors or relatives of directors	1.81
Other top fifty shareholders	0.06
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Oil Seals and Automobile Components.

Products :

Item Code No. (ITC Code)	401693
Product Description	Oil Seals
Item Code No. (ITC Code)	401699
Product Description	Moulded Rubber Product
Item Code No. (ITC Code)	871419
Product Description	Reed Valve Assembly

GENERAL INFORMATION

Bankers :

• ABN Amro Bank N.V., No.16, Kumaran Road, Tirupur, Tirupur – 641 601, Tamilnadu, India
• HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai – 400 013, Maharashtra, India
• IDBI Bank Limited, 1/ 1, Karthik Raja Complex, Karthik Raja Complex, K.K. Nagar, Madurai – 625 020, Tamilnadu, India
• The Bank of Nova Scotia, Classic Towers, 1547, Trichy Road, Coimbatore – 641 018, Tamilnadu, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
FROM BANKS:
- Working Capital Loans and Cash Credits	159.282	373.291
Total	159.282	373.291

* Working capital loans are secured by hypothecation of stores, raw materials, work in progress, finished goods and book debts.

** The facilities sanctioned by IDBI Bank Limited, HDFC Bank Limited and The Royal Bank of Scotland-NV are secured further by the personal guarantee of three directors of the Company and the facility given by The Bank of Tokyo Mitsubishi – UFJ Limited is further secured by the corporate guarantee of the holding company, Arai Seisakusho Company Limited, Japan.

*** The Company has requested for waiver of Personal guarantees of directors and the same has been accepted by the banks.

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Interest Free Sales Tax Loan (Sales tax deferral liability)	31.149	31.149
Total	31.149	31.149

Banking Relations :	--
Auditors :
Name :	Manian and Rao Chartered Accountants
Address :	Goods Shed Street, Madurai – 625 001, Tamilnadu, India
Holding Company :	Arai Seisakusho Company Limited, Japan

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8750000	Equity Shares	Rs.10/- each	Rs.87.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5600000	Equity Shares	Rs.10/- each	Rs.56.000 millions

Of the above equity shares 20000 shares are allotted as fully paid up pursuant to a contract for the transfer of technology, without payment being received in cash.

The Company is a subsidiary of Arai Seisakusho Company Limited, Japan, who holds 4695075 Equity Shares of Rs.10/- each (83.84%) as of 31.03.2010.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		56.000	56.000	56.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1001.826	864.170	786.492
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1057.826	920.170	842.492
LOAN FUNDS
1] Secured Loans		159.282	373.291	257.595
2] Unsecured Loans		31.149	31.149	31.149
TOTAL BORROWING		190.431	404.440	288.744
DEFERRED TAX LIABILITIES		136.786	133.169	92.425
TOTAL		1385.043	1457.779	1223.661
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		849.415	817.975	665.012
Capital work-in-progress		5.465	6.609	20.093
INVESTMENT		0.105	0.065	0.065
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	416.434	396.645	268.537
	Sundry Debtors	437.023	343.136	360.562
	Cash & Bank Balances	14.458	11.408	51.921
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	135.896	232.629	129.972
Total Current Assets		1003.811	983.818	810.992
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	200.257	128.582	133.312
	Other Current Liabilities	252.113	200.813	117.896
	Provisions	21.383	21.293	21.293
Total Current Liabilities		473.753	350.688	272.501
Net Current Assets		530.058	633.130	538.491
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1385.043	1457.779	1223.661

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2092.931	1568.205	1514.493
		Other Income	13.058	12.048	13.267
		TOTAL (A)	2105.989	1580.253	1527.760
Less	EXPENSES
		Material Consumed	778.619	613.944	527.034
		Employee Costs	144.253	113.073	105.509
		Manufacturing Expenses	341.765	294.554	248.200
		Administrative Expenses	82.520	107.867	86.462
		Selling Expenses	242.670	187.489	198.096
		Prior Year Adjustments	90.635	0.000	0.619
		Increase/Decrease in Stocks	5.378	(42.139)	(40.699)
		TOTAL (B)	1685.840	1274.788	1125.221
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		420.149	305.465	402.539
Less	INTEREST/ FINANCIAL EXPENSES (D)		15.925	15.309	9.673
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		404.224	290.156	392.866
Less/ Add	DEPRECIATION/ AMORTISATION (F)		154.101	109.166	128.329
	PROFIT BEFORE TAX (E-F) (G)		250.123	180.990	264.537
Less	TAX (H)		87.624	76.728	77.406
	PROFIT AFTER TAX (G-H) (I)		162.499	104.262	187.131
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		29.585	51.907	42.147
Less	APPROPRIATIONS
		Contribution to Community Welfare a/c	3.620	5.291	6.078
		Equity Dividend (Proposed)	18.200	18.200	18.200
		Corporate Dividend Tax	3.023	3.093	3.093
		General Reserve	120.000	100.000	150.000
	BALANCE CARRIED TO THE B/S		47.241	29.585	51.907
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	227.544	NA	49.422
	TOTAL EARNINGS		227.544	NA	49.422
	Earnings Per Share (Rs.)		29.02	18.62	33.42

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.72	6.60	12.25
Net Profit Margin (PBT/Sales)	(%)	11.95	11.54	17.47
Return on Total Assets (PBT/Total Assets}	(%)	13.50	10.04	17.92
Return on Investment (ROI) (PBT/Networth)		0.24	0.02	0.31
Debt Equity Ratio (Total Liability/Networth)		0.63	0.82	0.67
Current Ratio (Current Asset/Current Liability)		2.12	2.81	2.98

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The year saw a swift recovery from the recession and the Sales has increased to Rs.2254.000 millions from Rs.1760.000 millions last year registering a growth of 28.1%. The Profit before tax has increased to Rs.250.000 millions from Rs.180.000 millions showing a growth of 39%.

The Dollar exchange rate has gone up from Rs.45 in April 2009 to Rs.49 in July 2009 and closed around Rs.45.64 in March 2010, Yen was around Rs.0.51 for major part of the year while it touched Rs.0.538 in September. The severe power cut in the State of Tamilnadu had also affected the profitability as the company was forced to use diesel gensets to keep the production going at additional cost of Rs.4-5 million per month. The Company had initiated various cost cutting measures and thus reduced the impact of all these adverse factors and improved the profitability.

PROSPECTS:

The economy in India has recovered from the recession and is on the growth path. The Auto industry production and sales has increased compared to the previous year. Owing the four months period ended July 31 2010, the company has posted a growth in Sales of around 34.5% compared to the same period last year.

Continued depreciation of rupee against yen, increase in petrol and diesel prices, availability of skilled manpower, increasing interest rates and inflation are expected to affect the growth and profitability in the coming months. They are taking all steps to increase the sales through new customers/projects, increased after market sales and hope to maintain the current growth trend.

FUTURE PLAN OF ACTION:

Development of components for global players like Denso, Honda, Toyota, Chrysler for their global requirements.

FORM 8:

Corporate identity number of the company	U29130TN1985PLC011572
Name of the company	HI TECH ARAI LIMITED
Address of the registered office or of the principal place of business in India of the company	G2, No.12, 12^th Cross Street, Dhandeeswara Nagar, Velachery, Chennai – 600 042, Tamilnadu, India E-Mail: gnanam@hitecharai.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	ABN Amro Bank N.V., No.16, Kumaran Road, Tirupur, Tirupur – 641 601, Tamilnadu, India E-Mail: in.bs.central@in.abnamro.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation of stocks and book debts dated 26^th August, 2009
Date of instrument Creating the charge	26/08/2009
Amount secured by the charge	Rs.150.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Working Capital and credit facilities funded / non-funded on first pari passu bases with all charge holders on all movable assets and the rate of interest is as advised by the Bank from time to time. Terms of Repayment: Repayable on demand Margin: As may be prescribed by the Bank from time to time on credit facilities Extent and Operation of the charge: Hypothecation by way of pari passu first charge in favour of ABN Amro Bank N.V., on all the stock in trade and book debts of the company both present and future.
Short particulars of the property charged	Hypothecation by way of pari passu first charge in favour of ABN Amro Bank N.V., on all the stock in trade and book debts of the company both present and future.

This form is for	Creation of charge
Corporate identity number of the company	U29130TN1985PLC011572
Name of the company	HI TECH ARAI LIMITED
Address of the registered office or of the principal place of business in India of the company	No.2, V.P. Rathinasamy Nadar Road, North Chokkikulam, Madurai – 625 014, Tamilnadu, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai – 400 013, Maharashtra, India E-Mail: srinivasan.venkataraman@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Letter of Hypothecation of Stocks and Book debts dated 28^th April, 2009
Date of instrument Creating the charge	28.04.2009
Amount secured by the charge	Rs.110.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Any such rate as may be advised to the Company from time to time in respect of the credit facilities. Terms of Repayment: Repayable on Demand. Margin: As may be prescribed by the Bank from time to time for the credit facilities. Extent and Operation of the charge: Hypothecation by way of pari passu First Charge in favour of HDFC Bank Limited on all the Stock in trade and Book debts of the Company both present and future.
Short particulars of the property charged	Hypothecation by way of pari passu First Charge in favour of HDFC Bank Limited on all the Stock in trade and Book debts of the Company both present and future.

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

- Own Building

- Improvements to Leasehold

- Temporary Structures

· Vehicles

· Furniture and Fixtures

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	Indian Rupees
US Dollar	1	Rs.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
TOTAL		52

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.