MIRA INFORM REPORT

Report Date :

08.08.2011

IDENTIFICATION DETAILS

Name :	EXPORT IMPORT BANK OF INDIA
Registered Office :	Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Capital Investment / Paid-up Capital :	Rs.19999.919 millions
Legal Form :	Bank
Line of Business :	Providing Finance to the Company for Export and Import Activities.
No. of Employees :	200 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

A [64]

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established Export Finance Institution having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. Subject can be considered good for normal 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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 / Corporate Office :	Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005, Maharashtra, India
Tel. No.:	91-22-22172600
Fax No.:	91-22-22182572
E-Mail :	cag@eximbankindia.in
Website :	http://www.eximbankindia.in
Domestic Offices :	Located at : Ahmedabad Bangalore Chandigarh Chennai GUwahati Hyderabad Kolkata Mumbai New Delhi Pune
Overseas Offices :	Located at : Addis Ababa Dakar Dubai Durban London Singapore Washington D.C. Johannesburg

DIRECTORS

As on 31.03.2011

Name :	Shri T.C.A. Ranganathan
Designation :	Chairman & Managing Director [Export Import Bank of India ]
Name :	Shri R. M. Malla
Designation :	Chairman & Managing Director [IDBI Bank Limited]
Name :	Shri Pratip Chaudhary
Designation :	Chairman [State Bank of India]
Name :	Shri M. D. Mallya
Designation :	Chairman & Managing Director [Bank of Baroda]
Name :	Shri Alok Kumar Misra
Designation :	Chairman & Managing Director [Bank of India ]
Name :	Shri V. K. Sharma
Designation :	Executive Director [Reserve Bank of India ]
Name :	Mr. N. Shankar
Designation :	Executive Director
Name :	Mr. Prabhakar Dalal
Designation :	Executive Director

KEY EXECUTIVES

Name :	Dr. Rahul Khullar
Designation :	Secretary [Department of Commerce - Ministry of Commerce and Industry]
Name :	Shri Manbir Singh
Designation :	Secretary [Ministry of External Affairs]
Name :	Shri Rajinder Pal Singh
Designation :	Secretary [Department of Industrial Policy and Promotion - Ministry of Commerce and Industry]
Name :	Dr. Kaushik Basu
Designation :	Chief Economic Adviser – Ministry of Finance
Name :	Smt. Ravneet Kaur
Designation :	Joint Secretary [Department of Financial Services – Ministry of Finance]
Name :	Smt. Shyamala Gopinath
Designation :	Joint Secretary [Deputy Governor – Reserve Bank of India]
Name :	Mr. R. W. Khanna
Designation :	Operations Control
Name :	Mr. C. P. Ravindranath
Designation :	Legal
Name :	Mr. David Rasquinha
Designation :	Lines Of Credit / Trade Finance
Name :	Mr. Mukul Sarkar
Designation :	Corporate Banking
Name :	Mrs. Sunita Sindwani
Designation :	Chief Technology Officer
Name :	David Sinate
Designation :	Mr. Research & Planning / EMS
Name :	Mr. T. V. Rao
Designation :	Eximius Centre, Bangalore
Name :	Mr. Samuel Joseph
Designation :	Corporate Banking / SME / Agri Business
Name :	Mr. Prahalathan Iyer
Designation :	Research & Planning / Export Services
Name :	Mrs. Sangeeta Sharma
Designation :	Risk Analysis & Credit Management
Name :	Mr. Nadeem Panjetan
Designation :	Human Resource Management / Administration / IT Infrastructure
Name :	Mrs. Daya Chandrahas
Designation :	Project Finance
Name :	Mr. S Srinivas
Designation :	Corporate Affairs

BUSINESS DETAILS

Line of Business :

Providing Finance to the Company for Export and Import Activities.

GENERAL INFORMATION

No. of Employees :

200 [Approximately]

Bankers :

Reserve Bank of India

Facilities :

Borrowings [Rs. in million]	31.03.2011	31.03.2010	31.03.2009	31.03.2008
From Reserve Bank of India :
Against Trustee Securities	0.000	0.000	0.000	0.000
Against Bills of Exchange	0.000	0.000	30000.000	0.000
Out of the National Industrial Credit (Long Term Operations) Fund	0.000	0.000	0.000	0.000
From Government of India	0.000	13.333	26.667	40.000
From Other Sources :
(a) In India	47221.088	47499.811	25941.626	50487.657
(b) Outside India	120246.526	85297.787	72077.412	60621.733
TOTAL	167467.614	13281.932	128045.705	111149.390

Banking Relations :	--
Auditors :
Name :	Ummed Jain and Company Chartered Accountant

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital : Rs.20000.000 millions

Issued, Subscribed & Paid-up Capital : Rs. 19999.919 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars	31.03.2011	31.03.2010	31.03.2009	31.03.2008
LIABILITIES
1] Share Capital	19999.919	16999.919	13999.919	10999.919
2] Reserves & Surplus	32301.675	28315.630	24680.933	21063.809
3] Profit & Loss Account	1850.000	1500.300	1157.000	1007.700
4] Notes, Bonds & Debentures	272039.838	242893.652	215786.255	179272.534
5] Bills Payable	0.000	0.000	0.000	0.000
6] Deposits	32410.010	29382.681	28190.875	26741.319
7] Borrowings	167467.614	132810.932	128045.705	111149.390
8]Current Liabilities & Provisions for contingencies	19188.062	16853.129	26922.058	19222.514
9] Other Liabilities	2250.413	1958.576	3234.326	3548.789
TOTAL	547507.531	470714.819	442017.071	373005.974
ASSETS
1] Cash & Bank Balances	33341.610	30753.682	46156.869	34087.106
2] Investments	28255.649	23610.174	21609.740	21696.015
3] Loans & Advances	447968.000	386106.825	335564.462	276266.603
4] Bills of Exchange and Promissory Notes Discounted/Rediscounted	8590.000	4250.000	6000.000	11500.000
5] Fixed Assets	859.905	907.640	884.493	753.368
6] Other Assets	28492.367	25086.499	31801.507	28702.882
TOTAL	547507.531	470714.819	442017.071	373005.974

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2011	31.03.2010	31.03.2009	31.03.2008
INCOME
Interest and Discount	33181.044	28560.766	31265.210	24338.616
Exchange, Commission, Brokerage and Fees	1360.847	639.824	1227.259	945.589
Other Income	957.180	682.110	2001.205	2867.114
TOTAL	35499.071	29882.700	34493.674	28151.319
Profit brought down	8676.959	7724.025	6101.349	5333.588
Excess Income/Interest tax provision of earlier years written back	0.000	0.000	750.000	0.000
	8676.959	7724.025	6851.349	5333.588
EXPENSES
Interest	23247.423	20713.240	24138.273	20039.975
Credit Insurance, fees and charges	262.892	231.698	246.250	30.029
Staff Salaries, Allowances etc. and Terminal Benefits	265.935	176.241	123.024	100.557
Directors’ and Committee Members’ Fees and Expenses	0.000	0.050	0.030	0.100
Audit Fees	0.455	0.455	0.455	0.455
Rent, Taxes, Electricity and Insurance Premia	76.116	76.314	71.538	59.938
Communication expenses	20.382	20.677	17.318	14.577
Legal Expenses	22.509	19.428	11.924	8.594
Other Expenses	291.096	627.018	255.041	319.829
Depreciation	94.743	77.644	91.270	79.533
Provision for loan losses/contingencies depreciation on investments	2540.561	215.910	3437.202	2164.144
Profit carried down	8676.959	7724.025	6101.349	5333.588
TOTAL	35499.071	29882.700	34493.674	28151.319
Provision for Income Tax [including Deferred tax credit]	2840.914	2589.029	2077.226	2003.127
Balance of profit transferred to Balance Sheet	5836.045	5134.996	4774.124	3330.461
	8676.959	7724.025	6851.349	5333.588

LOCAL AGENCY FURTHER INFORMATION

ECONOMIC ENVIRONMENT

Global Economy

The global economy recovered in 2010 after suffering a setback in the preceding year. According to the International Monetary Fund (IMF)’s World Economic Outlook (WEO), April 2011, global activity expanded by 5 per cent in 2010, as against the 0.5 per cent fall in 2009. The improved medium-term growth outlook in the emerging and developing economies, with real GDP growth of 7.3 per cent in 2010, is primarily responsible for this rise. Advanced economies grew by 3 per cent in 2010 against the 3.4 per cent contraction in 2009.

World output is expected to ease at 4.4 per cent in 2011, owing to the associated downside risks to recovery, and 4.5 per cent in 2012. Economic activity in emerging and developing economies is forecast to grow at 6.5 per cent in 2011 and 2012 each, while that in advanced economies is forecast at 2.4 per cent and 2.6 per cent, respectively.

Economic prospects are uneven across regions. Growth and recovery prospects in the advanced economies are subdued, while among the emerging and developing economies, those with strong fundamentals before the crisis, smaller output losses during the crisis, and diversified export partners, are expected to have a fast-paced growth and recovery. The financial sectors of most advanced economies will be vulnerable to shocks. Healthy recovery in the credit growth of these economies will be supported by reform and repair of the financial sector. Emerging economies would need to focus on domestic sources of growth along with greater exchange rate flexibility.

The US economy, with a growth rate of 2.8 per cent, has almost reached the pre-crisis level of output in 2010. Economic activity slowed down in the second quarter of 2010 but picked up in the third and fourth quarter owing to the strong private demand accompanied with a fast-paced rise in consumer spending. However, the overall recovery has been slow as the labour market continued to remain sluggish. The US economy is yet to get over the high levels of retrenchment in 2008 and 2009. The new fiscal stimulus package announced by the US government in December 2010 is expected to push up the output by 2.8 per cent in 2011. The US economy is expected to grow by 2.9 per cent in 2012.

Real GDP growth in the Euro area was at moderate levels of 1.7 per cent in 2010, mainly driven by high growth levels in Germany. Stronger domestic demand pushed Germany’s growth to 3.5 per cent in 2010, against the 4.7 per cent decline in 2009. However, growth was subdued in France and Italy at 1.5 per cent and 1.3 per cent, respectively in 2010. Growth in Greece, Ireland, Portugal, and Spain was much lower, constrained by fiscal imbalances. Growth for the region is forecast to ease at 1.6 per cent in 2011 and 1.8 per cent in 2012 due to the financial stresses that would raise concerns from market participants.

The Newly Industrialised Asian Economies grew by a robust 8.4 per cent in 2010, mainly driven by a rebounding inventory cycle, strong domestic activity, and soaring demand for exports from these economies. Property markets in the region are also experiencing a price rise, for which macro prudential policies have been adopted. These policy measures are likely to affect the economy in the following year, moderating the growth to 4.9 per cent in 2011 and 4.5 per cent in 2012.

Japan’s economy grew by 3.9 per cent in 2010, owing to the stimulus measures that strengthened consumption in the third quarter and the rebound in exports. Growth in Japan is expected to slow down at 1.4 per cent in 2011, mainly due to the tsunami tragedy that devastated the country. This growth is expected to be supported by reconstruction activity in the third and fourth quarters of 2011. Reconstruction spending is expected to continue in

2012, though at a slower rate than in 2011. The economy is forecast to gradually recover with a growth rate of 2.1 per cent in 2012.

Activities in emerging and developing Asian economies are highly dependent on demand from advanced economies. Developing Asia continues to grow most rapidly among other regions in the world. The real GDP grew at 9.5 per cent in 2010, and is projected to moderate at 8.4 per cent in 2011. Policy tightening in economies that face demand pressure, policy adjustments in advanced economies, high levels of inflation and restrictive monetary policies, are expected to lead to this moderation. China and India are the main drivers for expansion in this region. China’s real GDP grew by an impressive 10.3 per cent in 2010, the highest growth level achieved after 2007. Accommodative credit conditions and Government-backed stimulus packages boosted investments in the country, which in turn resulted in an increased activity in most sections of the economy. However, economic expansion in China is projected to moderate at 9.6 per cent in 2011, on account of the policy tightening and fiscal stimulus coming to an end. India, on the other hand, grew at 10.4 per cent in 2010, owing to its strong growth fundamentals of high savings and investment rates, fast-growing labour force, and rapidly expanding middle-income class. The Indian economy is forecast to grow by 8.2 per cent in 2011 supported by an increase in domestic demand.

Strong macroeconomic policy fundamentals, sizable policy support, favourable external financing conditions, and strong commodity revenues have strengthened recovery in the Latin American and Caribbean (LAC) region. The region’s real GDP grew by 6.1 per cent in 2010, mainly driven by the robust demand from China and rising commodity prices. GDP growth of the region is projected to ease at 4.7 per cent in 2011, as Central American and the Mexican regions are highly subject to downside risks in the United States. Brazil, the largest economy in the region, expanded by 7.5 per cent in 2010 mainly due to expanding labour force, real wage growth, credit expansion, and growth in investments. Chile, Colombia and Peru, also experienced robust recovery on the back of improved macroeconomic policy framework, accommodative policies, easy external financing conditions and strong commodity prices. Mexico’s real GDP expanded by 5.5 per cent and is expected to moderate at 4.6 per cent in 2011. Growth in the Central American region was also subdued in 2010, due to weak prospects for tourism and remittances, and limited scope for policy support, a result of chronic public debt burdens. The exception to recovery in the LAC region, recession in Venezuela continued in 2010, reflecting severe supply bottlenecks, challenges from capital flight, and generally weak policy frameworks.

Real GDP of the Sub-Saharan region expanded by 5 per cent in 2010, as against 2.8 per cent recorded in the preceding year. The main drivers of the region are the oil exporting countries and the Low Income Countries (LICs). Sound and improved economic fundamentals, and effective shift in the region’s trading partners have supplemented most economies in the region during the crisis period. The South African economy grew at a modest rate of 2.8 per cent in 2010, and is projected to accelerate at 3.5 per cent in 2011, on the back of the anticipated favourable global environment. Strengthening of external demand and oil prices aided recovery in oilexporting economies like Nigeria, Angola, Equatorial Guinea, Gabon and Chad in 2010. In 2011, the region offers promising growth prospects with the real GDP projected to grow at 5.5 per cent.

The rebound in oil prices boosted the economy of the Middle East and North African (MENA) region, with a real GDP growth of 3.8 per cent in 2010. The growth rates in the oil exporting nations was a result of the expansionary policies adopted by the Governments, while in the oil-importing economies, growth was supported by the strong capital inflows. The region’s overall economy is projected to further expand by 4.1 per cent in 2011.

Recovery in Commonwealth of Independent States (CIS) was supported by high commodity prices, normalised trade and capital inflows, accommodative policies, and positive regional spillovers. Real GDP of the region increased by 4.6 per cent in 2010 and is further expected to accelerate by 5 per cent in 2011. The Russian economy grew by 4 per cent in 2010, underpinned by stockbuilding, and recoveries in private consumption and fixed investment. High commodity prices benefited the exports from the region, but at the same time, recovery in private consumption led to increased imports. The rest of the CIS region expanded by 6 per cent in 2010 and is forecast to moderate at 5.5 per cent in 2011.

Average growth in Central and Eastern Europe region strengthened in 2010, a result of normalisation of global trade and capital flows in the region. The region grew at an average of 4.2 per cent in 2010 and is expected to moderate at 3.7 per cent in 2011.

Outlook for Select Sectors

Automotives

The automotive industry (automobiles and auto components) in India has come of age and is today one of the key industries in the country with strong backward and forward linkages. The performance of the industry in recent years has been robust and is likely to remain buoyant, riding on the back of favourable demand and supply side factors. The spurt in the number of MNCs foraying into the Indian market bears testimony not only to the potential of the domestic market but also to the capability of the country to act as a manufacturing hub to serve the overseas market.

The automotive industry exhibited remarkable resilience even in the face of the global economic meltdown with production of over 17.9 million vehicles and exports of over 2.3 million vehicles during 2010-11, a growth of 27.5 per cent and 29.6 per cent, respectively. Recent trends indicate that the performance of the automotive industry has been robust, particularly in terms of exports, which exhibited a healthy CAGR of 24.5 per cent during the period 2004-05 to 2010-11 as against a CAGR of 13.3 per cent for production during the same period. Consequently, export orientation of the automobile sector increased from 7.3 per cent in 2004-05 to 13.3 per cent in 2010-11, indicating the increasing competitiveness of domestically manufactured vehicles.

Two wheelers remained the largest segment in terms of sheer volume, with a production level of 13.3 million units followed by passenger vehicles at 2.9 million units in 2010-11. Exports also mirrored production trends with two wheeler exports numbering 1.5 million and passenger vehicles aggregating 0.4 million units. Together, these two segments accounted for 85 per cent of the total automobile exports in volume terms. Growth in production of hybrid vehicles is likely to get fillip following the Union Budget 2011 which has announced exemption from basic custom duty and special CVD to critical parts/assemblies needed for hybrid vehicles apart from reduction in excise duty on kits used for conversion of fossil fuel vehicles into hybrid vehicles.

The strong and robust performance across various segments of the automobile industry has had spin off benefits for auto component manufacturers. The production in value terms for the auto component industry aggregated US$ 22 billion, recording an impressive CAGR of 26.7 per cent during 2003-04 to 2009-10. Auto component production is projected to nearly double to US$ 40 billion by 2015-16, which could result in the country’s share in global production reaching 3 per cent from the current level of 1 per cent. Besides strong underlying demand, the

dynamism in the auto component industry can also be attributed to the sector’s export performance. Auto component exports trebled during the period 2003-04 to 2009-10 (CAGR of 24.5 per cent) to touch US$ 3.8 billion in 2009-10 and are projected to cross US$ 20 billion by 2015-16. The strong growth witnessed on the export front has resulted in the export orientation of the sector touching nearly 18 per cent in 2009-10. A perceptible aspect of

India’s exports of auto components is that almost two-thirds of export goes to the twin big markets of Europe and North America which corroborates the sector’s increasing competitiveness. In addition, the industry has also been amply supported by the spate of new models launched recently by original equipment manufacturers (OEMs) as well as entry of several new OEMs into the Indian market which has provided a fillip to the demand, bolstering the order book position and growth prospects of component suppliers. The total investment into the sector has nearly trebled from US$ 3.1 billion in 2003-04 to US$ 9 billion in 2009-10.

India’s auto component industry today has the capability to manufacture the entire range of auto components such as engine parts, drives, transmission parts, suspension and braking parts, electrical parts, and body and chassis parts. Engine parts is the largest sub-segment accounting for more than 30 per cent of the sector’s production, followed by drive transmission and steering parts (share of 19 per cent) and body and chassis and suspension and braking parts (share of 12 per cent each). Though manufacturing costs in India are 25-30 per cent lower than its western counterparts, India’s competitive advantage stems from its full service supply capability, which makes the country a favourable sourcing destination. Besides, the quality standards in the sector are in line with global standards, corroborated by the fact that nine Indian companies in the automotive sector have received the coveted Deming Prize – the largest number outside Japan. With an impressive growth momentum in the automobile sector coupled with increasing disposable income and road development in the country, the automotive industry is expected to grow significantly in the foreseeable future.

Chemicals

The chemical industry forms the backbone of the industrial and agricultural development in India and also provides building blocks for downstream industries. This industry is a significant contributor to India’s national economic growth and has been registering a steady growth of about 7 per cent to 8 per cent over the past few years. The chemical industry accounts for about 14 per cent of the output of the Indian manufacturing sector, 13 per cent of total exports, and 9 per cent of total imports of the country. The size of the Indian chemical industry (basic, specialty and agro chemicals) is currently estimated at around US$ 60 billion. In terms of volume, the size of Indian chemical industry is twelfth largest in the world, and third largest in Asia.

The production of major basic chemicals in India amounted to 7.5 million metric tonnes (MT) in 2009-10, representing a growth of 2.7 per cent over the previous year. During the period April–September 2010, volume of production amounted to 3.9 million MT. Alkali chemicals (such as soda ash, caustic soda and liquid chlorine) were, by far, the largest segment accounting for 74.5 per cent share of total production during 2009-10, although, in terms of growth, it was the dye and dyestuffs segment which continued to exhibit maximum dynamism, essentially due to a smaller base.

Although India is a net importer of chemicals, of late, the gap between imports and exports has narrowed down. Growth in exports of chemicals and related products for 2009-10 stood at 1.4 per cent as compared to a negative growth in India’s overall exports of 3.5 per cent. The export growth figures recovered remarkably to 26 per cent during the first three quarters of 2010-11 (April-December) to reach US$ 22 billion for overall chemicals and related products, as compared to country’s overall export growth of 33.8 per cent during the same period.

The share of basic chemicals in the country’s overall exports has also exhibited a gradual upward trend, indicating that the growth in their exports has outperformed India’s total exports. Exports of basic chemicals (excluding petro-chemicals) from India increased from US$ 7.1 billion in 2005-06 to around US$ 10.8 billion in 2009-10, thereby witnessing a CAGR of 11 per cent. As regards 2010-11 (April-September), the share of basic chemicals and related products in India’s total exports stood at 6.1 per cent with exports having touched US$ 6.5 billion. During this period, organic chemicals witnessed the highest year-on-year growth of 130.3 per cent, followed by tanning and dye extracts which recorded a growth of 30.4 per cent to amount to US$ 778.1 million. On the other hand, inorganic chemicals grew by 17.1 per cent to aggregate US$ 3.9 billion. However, insecticides exhibited only a marginal increase of 3 per cent in export growth during April-September 2010-11, to touch US$ 485.3 million.

In terms of investments, the Indian chemical industry was among the top 10 sectors attracting the highest cumulative FDI inflows (US$ 2.8 billion) during the period April 2000 – March 2011, with a share of 2 per cent in total FDI inflows into India. During the period April–March 2010-11, FDI inflows in the chemical industry aggregated to US$ 398 million. The liberalised investment regime for this sector has been aptly supported by the financial sector, stimulating investment. The outstanding Gross Bank Credit of the Scheduled Commercial Banks to the chemical industry (excluding petrochemicals) increased at a CAGR of 9.8 per cent from Rs.231.77 billion in 2004-05 to ` 405.81 billion in 2010-11. With inflow of investments, the industry has also been able to witness significant innovation as also increased investments in R and D, particularly in the knowledge arena such as specialty and fine chemicals.

Since products of the chemicals industry are used in a diverse range of manufacturing applications, its performance is generally correlated with the trends in the overall economy, as also the linkages with the rest of the world in terms of trade, investment and technology transfer. On the domestic front, with the reduction in tariffs, Indian chemical companies with strong systems and organized operations are likely to be benefited further. Companies with competitive advantages, like those having competence in the areas of high value added chemicals, conforming to international quality standards, could translate their capabilities and establish a dominant presence in both international and domestic markets.

With the per-capita consumption of chemical products in India being only a fraction of the global average, the opportunities for the domestic industry are enormous. In dyes, for example, India’s per capita consumption is 50 grams as against a world average of 425 grams. In case of polymers, the per capital consumption is 5.2 kilograms in India, as against the world average of 25 kilograms. Keeping in view the size of the domestic market and the growth of end user segments, the potential for growth in these sectors in India is immense.

Petroleum Products

The petroleum industry has been instrumental in fuelling the growth of the Indian economy. The petroleum and natural gas sector, which includes exploration, refining and marketing of petroleum products and gas, constitutes over 15 per cent of India’s GDP. The production of petroleum products during 2010-11 stood at 37.7 million MT as against 33.6 million MT as compared to the corresponding period of the previous year, thereby registering an increase of 11.9 per cent. Compared to this, the consumption of petroleum products as compared to the same period aggregated 128.8 million MT and is estimated to touch 146.1 million MT for the whole of 2010-11, up by 5.7 per cent from 138.2 million MT in 2009-10.

Indian petroleum refinery sector has established its ability to excel in international markets with export of petroleum products growing at a significant pace in recent years. While volume of exports of petroleum products increased at a CAGR of 22.9 per cent from 18.2 million MT in 2004-05 to 51 million MT in 2009-10, in value terms, the growth was even better (a reflection of rising oil prices) – from US$ 6.7 billion to US$ 30.5 billion, thereby registering a CAGR of 35.6 per cent. Following the overall strong recovery after the global meltdown, exports of petroleum products witnessed an appreciable growth of 44.7 per cent during the first three quarters of 2010-11 (April-December), to reach a level of US$ 28.2 billion as compared to the corresponding period of the previous year. Consequently, the share of petroleum products exports in total exports increased from 11.2 per cent in 2005-06 to 15.7 per cent in 2009-10, and further to 16.6 per cent during the first three quarters of 2010-11.

India’s domestic demand for oil and gas is on the rise. According to the Ministry of Petroleum and Natural Gas, Government of India, demand for oil and gas is likely to increase from 186.54 million tonnes of oil equivalent (mtoe) in 2009-10 to 233.58 mtoe in 2011-12. Much of the growth would be contributed by the demand for transport energy, as the stock of vehicles is expected to expand with rising economic activity. The Eleventh Plan estimates indicate that the domestic demand for petroleum products in the terminal year (2011-12) would be at over 140 million tonnes. The refining capacity is projected to go up to 240 million tonnes per annum in the terminal year of the Eleventh Plan, as against the capacity level of around 150 million tonnes in the beginning of the Eleventh Plan. Such an expansion would lead to a surplus in refining capacity by around 90 million tonnes, which could be used for catering to export markets. The medium-term outlook for refining industry looks positive, due to stretched utilisation levels and new capacity build-up in the domestic market. The steady growth in the demand for petroleum products and the policies taken by Government to deregulate and decontrol the marketing of these products will help in generating more opportunities for this sector.

Textiles and Garments

The textiles and garment industry has an overwhelming influence on the economic development of India, being the second largest employer after agriculture. Through its contribution to industrial output, employment and exports, the industry plays a critical role in the Indian economy. The industry is estimated to account for 11 per cent of industrial production, 4 per cent of national GDP and 9 per cent of the country’s exports, and provides direct employment to more than 35 million people. The textiles industry in India is extremely diverse, comprising the hand-spun and hand-woven sector as also the capital intensive, sophisticated mill sector. The decentralised power-looms/hosiery and knitting sectors form the largest section of the textiles industry in India. India, with a share of 4.3 per cent in world textiles exports and 3.6 per cent share in world clothing exports, was ranked sixth globally in both these sectors in 2009. The performance of the industry in terms of exports was rather modest, owing to recessionary trends prevailing in the global economy. During 2009-10, textile and garments exports from

India amounted to US$ 19.1 billion – a marginal decline of 1 per cent over the previous year. Exports of readymade garments and cotton yarn and fabrics witnessed decline by 2 per cent and 11.1 per cent respectively. Manmade textile was the only sector which witnessed a positive growth in exports of 19.7 per cent. During the period April-December 2010, exports of textiles and garments aggregated US$ 15.9 billion, recording a year-on-year growth of 15.6 per cent, while its contribution to India’s total exports was 9.3 per cent, as against 10.8 per cent during the corresponding period of previous year, suggesting that its export performance lagged behind other

sectors. Mandatory excise duty of 10 per cent imposed on branded garments under the Union Budget 2011-12 for textile-made ups is likely to impact the sector adversely. Since it is a CENVAT Credit, yarn and fabric manufacturers may have to pay an increased excise duty at 5 per cent vis-à-vis an optional and concessional 4 per cent duty paid earlier. This will exert further pressure on the margins of readymade garments and made-ups manufacturers who are already struggling with an unprecedented rise in input costs. However, the Textile Upgradation Fund Scheme (TUFS) allocation increased from Rs.22.7 billion to 29.8 billion which is a positive indication for further development of the industry.

With the demand from the two largest export markets of India, viz. the US and the EU, improving in the short term, the textile sector is expected to recuperate from the hitherto sluggishness that it witnessed since the economic slowdown. Indian exporters are, however, focusing on domestic markets and making attempts to diversify the export markets. Some of the emerging markets include UAE, Saudi Arabia, South Africa, Australia, Mexico and Turkey. Going forward, the large textile manufacturing base, availability of adequate raw materials and labour, vast domestic market, and supportive Government policies, would strengthen the competitive position

of Indian textile and clothing industry.

Drugs and Pharmaceuticals

The global pharmaceutical industry is expected to grow by 5 per cent to 7 per cent in 2011 to touch US$ 880 billion compared to 4 per cent to 5 per cent in 2010. There is growing divergence in the pace of pharmaceutical growth among major markets. The 17 pharma-emerging countries (China, Brazil, Russia, India, Mexico, Turkey, Venezuela, Poland, Argentina, Indonesia, Ukraine, Thailand, South Africa, Egypt, Romania, Pakistan and Vietnam) are forecast to grow at 15 per cent to 17 per cent in 2011, to reach US$ 170 billion to US$ 180 billion. Greater government spending on healthcare and broader public and private healthcare funding are likely to be the key drivers of growth for many of the pharma emerging markets. China, the world’s third-largest pharmaceutical market is predicted to grow by 25 per cent to 27 per cent to more than US$ 50 billion in 2011. The five major European markets (Germany, France, Italy, Spain, and the UK) collectively are expected to grow at 1 per cent to 3 per cent while the US is likely to grow at 3 per cent to 5 per cent.

India has emerged as one of leading economies when it comes to opportunities in the pharmaceutical sector. The Indian pharmaceuticals market is projected to grow to about US$ 20 billion by 2015, as against US$ 6.3 billion in 2005. Currently, the Indian pharmaceutical industry is ranked fourth in terms of volume and fourteenth in terms of value in the global pharmaceutical market. The industry has attained self-reliance in the production of formulations, and produces almost 70 per cent of bulk drug requirements of the country. India is also one of the major producers of generic drugs in the world.

Indian pharmaceutical companies have not been affected much by the global slowdown, largely because of cost advantages in medicine production and due to their long-term contracts, especially the generic manufacturers, with their preferred suppliers. Notwithstanding this, performance on the export front has been rather modest – exports of pharmaceutical products increased by a mere 1.8 per cent in 2009- 10 over the previous year to aggregate US$ 5.2 billion. However, during the first half of 2010-11 (April-September), exports witnessed a complete turnaround, growing by a healthy 27.6 per cent, from US$ 2.4 billion during April- September 2009-10 to US$ 3 billion during April-September 2010-11.

The rising middle and upper class who can afford high quality healthcare and the widespread adoption of health insurance products, which will enable a larger proportion of the population to access medical treatments, are expected to drive the Indian pharmaceutical market in the foreseeable future. In addition, significant economic growth rates, favourable demographics, and new intellectual property protection laws would provide further impetus to the industry.

Capital Goods

The capital goods industry forms the backbone of India’s manufacturing sector. Some of the prominent capital goods produced in India include heavy electrical machinery, textile machinery, machine tools, earthmoving and construction equipment including mining equipment, road construction equipment, printing machinery, dairy machinery, industrial refrigeration, industrial furnaces etc. The capital goods industry has been performing strongly, growing by a healthy 20.9 per cent during 2009-10, far better than both basic goods and intermediate goods (the IIP use-based classification). However, this performance could not be sustained in 2010-11, with the growth in the capital goods industry moderating to 9.3 per cent.

Production of machine tools in the country reached the level of around ` 13.05 billion by the end of 2009, showing a decline of 26.2 per cent, over the previous year’s figure of ` 17.68 billion. Notwithstanding this, export of machine tools has shown a steady increase in the last few years, with exports aggregating US$ 278.3 million in 2009-10. However, during the period April-December 2010, export of machine tools, witnessed a negative year-on-year growth of 7.9 per cent to amount to US$ 212.6 million. As far as textile machinery is concerned, India’s production was more than ` 40 billion in 2009-10, while exports aggregatedUS$ 123.2 million and imports were valued at US$ 1.4 billion. During the period April-September 2010, exports of textile machinery were valued at US$ 82.4 million and imports were US$ 784.9 million. India produces a wide range of construction and mining machinery. However, being a large and growing economy, domestic demand is greater than the production capacity and thus, a major portion of the demand is met through imports. During the period 2009-10, India’s export of construction machinery was valued at US$ 479.2 million and imports stood at US$ 2 billion. During the period April-September 2010, exports of construction and mining machinery were valued at US$ 117.8 million

while imports aggregated US$ 887.8 million. The process plant machinery and components sector in India is a heterogeneous segment of capital goods industry. During the period 2009-10, India exported process plant/machinery worth US$ 1.3 billion, while its imports were valued at over US$ 3 billion. During the period April-September 2010, exports of process plant machinery and components sector were worth US$ 655.6 million and imports amounted to US$ 1.5 billion. The electrical equipment and machinery sector comprises a range of products, such as transformers, switchgears, motors, generators and control equipment. India exported electrical

equipments and machinery worth US$ 1.9 billion during the period 2009-10 while imports aggregated to US$ 2.7 billion. During the period April-September 2010, exports of electrical equipments and machinery were valued at US$ 852.8 million while imports were worth US$ 1.4 billion.

On the whole, the outlook for the capital goods industry in India remains bright, particularly over the medium and long-term. The Union Budget 2011-12 has announced a number of initiatives to increase public investments in the infrastructure sector. Allocation to major infrastructure sectors, including power, road transport, shipping, urban infrastructure and railways, has been raised. This is likely to give an added impetus to the industry by resulting in more orders for the capital goods companies.

Electronics

The Indian electronic goods sector has been among the fastest growing sectors in the recent past. India has significant potential to develop and manufacture electronic hardware for the global markets and gain higher global share, besides meeting the country’s requirements in the converging areas of information, communication and entertainment. The Government of India has identified electronics hardware manufacturing sector as a key focus area for growth. The National Manufacturing Competitiveness Council was set up by the Government to provide a continuing forum for policy dialogue to energize and sustain the growth of manufacturing industries, including electronic hardware, in India.

During 2009-10, total production of electronics in India is estimated to have touched ` 1099.40 billion.

Major Policy Changes during 2010-11

• Cash reserve ratio (CRR) increased from 5.75 per cent in February 2010 to 6 per cent in April 2010.

• Repo rate increased in phases, from 5.25 per cent in April 2010 to 6.75 per cent in March 2011. Reverse repo rate also increased in phases from 3.75 per cent in April 2010 to 5.75 per cent in March 2011.

• Statutory Liquidity Ratio (SLR) for SCBs reduced from 25 per cent of their NDTL to 24 per cent with effect from December 18, 2010.

• Interest subvention of 2 per cent to the labour-intensive sectors of exports such as textiles (including handloom), handicrafts, carpets, leather, gems and jewellery, marine products and SMEs, extended to March 2011.

• Extension of the DEPB scheme extended beyond December 31, 2010 till June 30, 2011.

• EPCG at zero duty for engineering and electronic products, basic chemicals, pharmaceuticals, apparels and textiles, plastics, handicrafts, chemicals and allied products and leather and leather products extended till March end 2012. The benefit of the scheme has been expanded to additional sectors viz. pharmaceuticals, electronics, automobiles, aerospace and engineering products, and high-value engineering products.

• 256 new products added under the Focus Product Scheme (FPS) (at the eight digit level), which became entitled for benefits at 2 per cent of FOB value of exports to all markets. Major sectors/ product groups are engineering, electronics, rubber and rubber products, other oil meals, finished leather, packaged coconut water and coconut shell worked items.

• Increase in incentives available under the Focus Market Scheme (FMS) from 2.5 per cent to 3 per cent and those under the FPS from 1.25 per cent to 2 per cent.• In the agriculture sector, FDI will now be permitted in the development and production of seeds and planting material, without the stipulation of having to do so under ‘controlled conditions’. • SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirements for equity schemes. To enhance flow of funds to infrastructure sector, the FII limit for investment in corporate bonds issued in infrastructure sector has been raised. Allowing IFCs to avail of ECBs including the outstanding ECBs up to 50 per cent of their owned funds under the automatic route, subject to their compliance with the prudential guidelines already in place. Permission to corporate in the hotel, hospital and software industries to avail ECBs beyond US$ 100 million under the approval route for foreign or rupee capital expenditure for permissible end-uses.

Review Of Operations

Loan disbursements during FY 2010-11 were 344.23 billion as against 332.49 billion during 2009-10, while loan repayments during FY 2010-11 amounted to ` 274.46 billion, as against 264.84 billion in FY 2009-10. Gross loan assets as on March 31, 2011 were 460.41 billion, registering an increase of 17 per cent over the previous year. The Bank approved loans aggregating to 477.98 billion under various lending programmes during FY 2010-11 as against 388.43 billion during FY 2009-10. During the year, the Bank sanctioned guarantees aggregating to 32.16 billion as against 13.51 billion in 2009-10. Guarantees issued during 2010-11 amounted to 11.53 billion as against 3.88 billion in 2009-10. Guarantees in the books of the Bank as on March 31, 2011 were 30.56 billion as against 22.74 billion as on March 31, 2010 and Letters of credit as on March 31, 2011 amounted to 12.06 billion as against 8.43 billion as on March 31, 2010. Rupee loans and advances accounted for 53 per cent of the total loan assets as on March 31, 2011 while the balance 47 per cent were in foreign currency. Short-term loans accounted for 30 per cent of the total loans and advances as on March 31, 2011. Total borrowings of the Bank at 471.92 billion as on March 31, 2011, were higher by 16.5 per cent compared to total borrowings of 405.09 billion as on March 31, 2010.

The Bank registered profit before tax of 8.68 billion on account of General Fund during 2010-11 as against a profit of 7.72 billion for the year 2009-10. After providing for income tax of 2.84 billion, profit after tax amounted to 5.84 billion during 2010-11 as against 5.13 billion during 2009-10. Out of this profit, an amount of 3.09 billion is transferred to Reserve Fund. In addition, the Bank has transferred 0.10 billion to Investment Fluctuation Reserve, 0.10 billion to Sinking Fund and 0.70 billion to Special Reserve u/s 36(1)(viii) of the Income Tax Act, 1961. The balance of 1.85 billion will be transferred to Government of India (GOI) as provided in the Exim Bank Act.

Profit before tax of the Export Development Fund during 2010-11 was 28.47 million as against 29.16 million during 2009-10. After providing for tax of 9.50 million, the post tax profit amounted to 18.97 million as against 19.25 million during 2009-10. The profit of 18.97 million is carried forward to next year.

Business Operations

Review of Bank’s business operations is presented below under the following heads:

I Projects, Products and Services Exports

II. Building Export Competitiveness and Financing Overseas Investments

III. New Initiatives

IV. Financial Performance

V. Information and Advisory Services

VI. Institutional Linkages

VII. Information Technology

VIII. Research and Analysis

IX. Human Resources Management

X. Progress in Implementation of the Official Language Policy

XI. Representation of Scheduled Castes, Scheduled Tribes and Other Backward Classes.

Joint Venture

The Bank’s joint venture, Global Procurement Consultants Limited (GPCL), recorded yet another year of profitable operations. The company recorded a consultancy income of ` 31.75 million in 2010-11 with a pre-tax profit of ` 9.25 million. GPCL is a joint venture between Exim Bank and 12 other reputed private and public sector companies with expertise in diverse fields. GPCL provides procurement related advisory and auditing services, primarily for projects funded by multilateral agencies in various developing countries.

FINANCIAL PERFORMANCE

Resources

During the year, the Bank received capital of 3 billion from the Government of India. As at March 31, 2011, the Bank’s total resources including paid up capital of 20 billion and reserves of 32.30 billion, aggregated to 524.22 billion. Exim Bank’s resource base includes bonds, certificates of deposit, commercial paper, term deposits, term loans and foreign currency deposits/borrowings/long-term swaps. The Bank’s domestic debt instruments continued to enjoy the highest rating viz. ‘AAA’ rating from the rating agencies, CRISIL and ICRA. During the year, the Bank raised borrowings of varying maturities aggregating to 260.95 billion comprising rupee resources of 126.69 billion and foreign currency resources of US$ 3.01 billion equivalent. Foreign currency resources of US$ 2.57 billion equivalent were raised through bonds, bilateral/club/ syndicated loans and US$ 0.44 billion by way of Buy-Sell swaps/on-shore deposits. As on March 31, 2011, the Bank had a pool of foreign currency resources equivalent to US$ 5.42 billion and outstanding Rupee borrowings including bonds and commercial papers of 249.17 billion. Market borrowings as on March 31, 2011 constituted 99 per cent of the total borrowings and 89 per cent of the total resources of the Bank. International Rating As on March 31, 2011, the Bank was rated Baa3 (Stable) by Moody’s, BBB- (Stable) by SandP, BBB- (Stable) by Fitch Ratings and BBB+ (Stable) by Japan Credit Rating Agency (JCRA). All the above ratings are of investment grade or above and are the same as the sovereign rating. Income/Expenditure The profit before tax (PBT) and profit after tax (PAT) of the Bank were at 8.68 billion and 5.84 billion respectively during the year 2010-11, as compared to the previous year’s PBT and PAT of 7.72 billion and 5.13 billion, respectively. Business income comprising interest, discount, exchange commission, brokerage and fees during 2010-11 was 27.17 billion as compared to 22.22 billion in 2009-10. Investment income, interest on bank deposits etc. during 2010-11 was 8.33 billion as compared to 7.66 billion in 2009-10. Interest expenses in 2010-11 at 23.51 billion were higher by 2.57 billion mainly due to the increase in borrowings. Administrative expenses as a per cent of total expenses (excluding provisions for contingencies) worked out to 2.79 per cent during 2010-11 as against 2.57 per cent during 2009-10. The average cost of borrowings (interest expenditure as a per cent of average borrowings) reduced from 5.39 per cent per annum during 2009-10 to 5.36 per cent per annum during 2010-11, mainly due to the lower Libor reset on foreign currency borrowings.

Capital Adequacy

The Capital to Risk Assets Ratio (CRAR) was 17.04 per cent as on March 31, 2011, as compared to 18.99 per cent as on March 31, 2010, as against a minimum 9 per cent norm stipulated by RBI. The Debt-Equity Ratio as on March 31 2011 was 8.92:1, as compared to 8.82:1 as on March 31, 2010.

Exposure Norms

Reserve Bank of India (RBI) has prescribed credit exposure limits for all-India term lending institutions, at 15 per cent of the financial institutions’ capital funds, effective from March 31, 2002, for exposure to individual borrowers and at 40 per cent for group borrowers. An additional exposure upto 5 per cent (i.e. a total exposure upto 20 per cent of capital funds of the Financial Institution for Single Borrowers and 45 per cent of capital funds for Borrower Groups) can be taken in exceptional circumstances, with the prior approval of the Board. The exposure ceilings for individual borrowers and borrower groups can be exceeded by an additional five percentage points (i.e. 5 per cent of total capital funds) and ten percentage points (i.e. 10 per cent of total capital funds) respectively (over and above the maximum limits of 20 per cent and 45 per cent respectively), provided the additional credit exposure is on account of infrastructure projects in India. The Bank’s credit exposures to single and group borrowers as at March 31, 2011 were within the limits stipulated by RBI.

RBI has advised Financial Institutions to adopt internal limits on exposures to specific industry sectors so that the exposures are evenly spread over various sectors. The industry exposure limits adopted by the Bank for each industry sector are 15 per cent of the Bank’s credit exposure to all industry sectors. The Bank’s exposure to a single industry sector was not more than 11.78 per cent of its total exposure as at March 31, 2011.

Award for Excellence

Export-Import Bank of India and Confederation of Indian Industry (CII) joined hands, in 1994, to promote ‘excellence’ among Indian companies through the ‘CII-Exim Bank Award for Business Excellence’ for best Total Quality Management (TQM) practices adopted by an Indian company. The Award is based on the European Foundation for Quality Management (EFQM) model which has undergone revisions recently and has been published as EFQM Excellence Model 2010.

In 2010, the Winners of the CII-Exim Bank Award for Business Excellence were Tata Group’s Tinplate Company of India Limited and Avantha Group’s Crompton Greaves Limited. In 2010, twenty-nine large business organisations and their operating units were commended by the jury for significant achievement (nine companies), and strong commitment to excel (twenty companies), in their journey towards business excellence. Recognising the growing significance of Small and Medium Businesses (SMBs) in the growth of Indian industry and economy, the assessment process has been simplified to promote the adoption of Excellence framework among the SMBs and to derive benefits to enhance their competitiveness. Two Small and Medium Business companies (Think soft Global Services Limited and Moolchand Medcity) were also commended for significant achievement. The jury also commended Perfetti van Melle (India) Private Limited for food safety.

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.44.80
UK Pound	1	Rs.72.85
Euro	1	Rs.63.11

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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.