MIRA INFORM REPORT

Report Date :

23.04.2011

IDENTIFICATION DETAILS

Name :	JAY CHEMICAL INDUSTRIES LIMITED
Registered Office :	Jay House, Near Saffron Building Panchavati, Ellisbridge, Ahmedabad - 380 006, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.03.2000
Com. Reg. No.:	04-037683
CIN No.: [Company Identification No.]	U24119GJ2000PLC037683
IEC No.:	0888017031
TAN No.: [Tax Deduction & Collection Account No.]	AHNJ00516F
PAN No.: [Permanent Account No.]	AAACJ7628J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Dyes Intermediates, Garments, Construction Chemicals, Textile Auxiliary

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be correct 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 :	Jay House, Near Saffron Building Panchavati, Ellisbridge, Ahmedabad - 380006, Gujarat, India
Tel. No.:	91-79-26423363
Fax No.:	91-79-26425763
E-Mail :	daksheshmachhar@jaychemical.co alpeshshah@jaychemical.com nimishvaya@yahoo.com info@jaychemical.com manishitandon@jaychemical.com murarinari@jaychemical.com anshulagarwal@jaychemical.com
Website :	http://www.jaychemical.com
Area :	600 Sq. ft.
Location :	Owned
Factory 1 :	44, GIDC, Odhav, Ahmedabad, Gujarat, India
Tel. No.:	91-79-22873581
Fax No.:	91-79-22872383
Location :	Owned
Factory 2 :	GIDC, Khambhat, Ahmedabad, Gujarat, India
Location :	Owned
Factory 3 :	Vatva, Ahmedabad

DIRECTORS

As On 30.09.2010

Name :	Mr. Jayendrabhai Hiralal Kharawala
Designation :	Managing Director
Address :	2, Spring Vally, Mohamadpura Road, B/H Karnavati Club," Bodakdev, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	18.02.1939
Qualification :	Graduate
Date of Appointment :	31.03.2000
DIN No.:	00077389
Name :	Mr. Greeven Jayendrakumar Kharawala
Designation :	Managing Director
Address :	2, Spring Vally, Mohamadpura Road, B/H Karnavati Club," Bodakdev, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	29.09.1974
Qualification :	B.Sc.
Date of Appointment :	31.03.2000
DIN No.:	00358381
Name :	Mr. Dakshesh Mohanlal Machhar
Designation :	Whole Time Director
Address :	Block No. 212, Anmol Park, Plot No. 10, Bopal Ahmedabad - 380058, Gujarat, India
Date of Birth/Age :	29.09.1966
Qualification :	B.Com.
Date of Appointment :	30.03.2003
DIN No.:	00081032
Name :	Mr. Ravi Babulal Kabra
Designation :	Whole Time Director
Address :	83C, Satyagrah Chhavni, Lane No:15, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	12.05.1976
Qualification :	MBA
Date of Appointment :	30.03.2003
DIN No.:	00080979
Name :	Mr. Sambhunath Sushilkumar Chakraverty
Designation :	Whole Time Director
Address :	B-71, Venus Appt, B/h Ashima Tower, , Vastrapur, Ahmedabad. Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	20.08.1942
Qualification :	Graduate
Date of Appointment :	01.04.2005
DIN No.:	00689059
Name :	Mr. Bipinbhai Rughnathbhai Patel
Designation :	Whole Time Director
Address :	44, Mithila Society, Opposite Shreyash Foundation, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	01.03.1945
Date of Appointment :	01.10.2008
DIN No.:	01186974
Name :	Mr. Kantibhai Hirabhai Patel
Designation :	Director
Address :	26, Mahasukhnagar C H S L-2, Vibhag-1, Jain Derasar, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	03.09.1946
Date of Appointment :	26.09.2008
DIN No.:	02325787

KEY EXECUTIVES

Name :	Manishi Tondon
Designation :	Company Secretary
Address :	16/B, Indus Park Bungalow, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	12.11.1984
Date of Appointment :	01.06.2010
Pan No.:	AEAPT4798N
Name :	Mr. Anshul Agarwal
Designation :	Company Secretary
Address :	16/B, Indus Park Bungalow, Near Star Bazaar India, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	09.09.1984
Date of Appointment :	30.11.2010
Pan No.:	AFLPA0867P

MAJOR SHAREHOLDERS

As On 30.09.2010

Names of Shareholders	No. of Shares
Jayendrakumar H. Kharawala	8705530
Greeven J. Kharawala	1503390
Mokshadaben G. Kharawala	50290
Ushaben J. Kharawala	1624760
Jay Infa Trade Private Limited - India	49500
J. H. Kharawala- HUF	1799530
Ravi Kabra	100
G J Kharawala (HUF)	600000
Greeva Trading and Investments Private Limited – India	100
Janmejay Trading and Investments Private Limited – India	395
Jayendrakumar Trading and Investments – India	395
Total	14333990

As On 30.09.2010

Category	Percentage
Bodies corporate	0.35
Directors or relatives of Directors	99.65
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Dyes Intermediates, Garments, Construction Chemicals, Textile Auxiliary

Products :

Item Code No:	Production Description
32041650	Reactive Blue
32041650	Reactive Black GL/GR
32041630	Reactive Red ME4BL

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Dyes*	MT	NA	26000	18182
Intermediates**	MT	NA	11500	7990
Auxiliary	MT	NA	200	1815

* Includes Installed capacity 12000MT p.a for the dyes plant commenced on 15.01.2009 at Kalamsar, Gujarat

** Intermediate includes captive consumption 62.81 MT and Inter unit production 3374.93 MT

GENERAL INFORMATION

No. of Employees :

1000 (approximately)

Bankers :

• Bank of Baroda, Ashram Road Branch, Vallabh Sadan Bhavan, Opposite Gujarat Chamber of Commercial and Industrial, Ashram Road, Ahmedabad - 380006, Gujarat, India

Facilities :

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
SECURED LOANS
INR Loan from Schedule Bank
Cash Credit and Export Credit Accounts	109.540	776.620
Term Loan	451.541	575.609
Foreign Currency Loan	0
Cash Credit and Export Credit Accounts	680.621	--
Term Loan [Secured by Hypothecation of Plant and Machinery, Movable Assets, Current Assets, Equitable Mortgage of Land and Building and Personal Guarantee of Directors]	142.292	--
Vehicle Loan	7.215	3.553
Total	1391.209	1355.782
UNSECURED LOANS
Loan from Directors	--	0.096
Deposit from Agents	24.498	12.648
Total	24.498	12.744

Banking Relations :	--
Auditors :
Name :	Mr. Nimish Vayawala Chartered Accountants
Address :	1, Vasupujya Flat 1, Navapad Society, Opp. Amul Soc., Paldi, Ahmedabad - 380007, Gujarat, India
Tel No.:	91-79-26640358/26620852
Pan No.:	AAIPV6426D
Name :	Shah and Nagori Chartered Accountant
Address :	T-1, Dhaval Complex, B/H Navarangpura Post Office, Navarangpura, Ahmedabad – 380009, Gujarat, India
Tel No.:	91-79-26565206/66312129
Pan No.:	AACFS5758B
Subsidiaries:	o Jay Infa Trade Private Limited CIN No.: U51909GJ1990PTC014227
Wholly Owned Subsidiary :	o Solunaris GMBH
Other Associate Concerns :	o Jay Enterprise o Jushika Corporation o Prem Chemical Industries o Ronuk Dyes and Chemical o The India Textile Products o Greeva o Jayendrakumar and Company

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14333990	Equity Shares	Rs.10/-each	Rs.143.340 Millions

Note:

Of the above Equity Shares 71,66,995 shares are alloted as fully paid up by way of Bonus Shares by Capitalization of amounts standing to the credit of Share Premium account in the ratio of 1:1)

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		143.340	71.668	10.483
2] Share Application Money		0.000	0.000	61.185
3] Reserves & Surplus		760.346	672.001	577.954
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		903.686	743.669	649.622
LOAN FUNDS
1] Secured Loans		1391.209	1355.782	1130.959
2] Unsecured Loans		24.498	12.744	12.074
TOTAL BORROWING		1415.707	1368.526	1143.033
DEFERRED TAX LIABILITIES		133.068	112.045	65.872
TOTAL		2452.461	2224.240	1858.527
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1217.585	1126.889	664.591
Capital work-in-progress		45.125	107.194	132.013
INVESTMENT		11.909	10.275	10.275
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	689.969	508.953	560.910
	Sundry Debtors	829.931	759.183	779.027
	Cash & Bank Balances	100.780	42.737	31.940
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	240.445	180.501	191.949
Total Current Assets		1861.125	1491.374	1563.826
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	633.364	432.542	431.377
	Other Current Liabilities	12.447	0.000	3.882
	Provisions	40.912	82.365	76.919
Total Current Liabilities		686.723	514.907	512.178
Net Current Assets		1174.402	976.467	1051.648
MISCELLANEOUS EXPENSES		3.440	3.415	0.000
TOTAL		2452.461	2224.240	1858.527

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Operative Income	3188.715	2758.225	2589.969
		Other Income	3.870	0.265	2.397
		TOTAL (A)	3192.585	2758.490	2592.366
Less	EXPENSES
		Material Cost	1735.846	1428.795	1237.290
		Manufacturing and Other Expenses	750.133	591.805	614.406
		Excise on Sales	0.000	257.731	254.902
		Selling and Distribution Expenses	236.135	192.746	182.245
		Preliminary Expenses W/off	0.424	0.379	0.036
		TOTAL (B)	2722.538	2471.456	2288.879
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		470.047	287.034	303.487
Less	FINANCIAL EXPENSES (D)		123.151	125.325	87.208
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		346.896	161.709	216.279
Less/ Add	DEPRECIATION/ AMORTISATION (F)		83.996	49.765	38.838
	PROFIT BEFORE TAX (E-F) (G)		262.900	111.944	177.441
Less	TAX (I)		102.886	17.894	59.570
	PROFIT AFTER TAX (G-I) (J)		160.014	94.050	117.871
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		541.105	447.055	209.694
Add	SURPLUS OF J H KHARAWALA PRIVATE LIMITED		0.000	0.000	119.490
	BALANCE CARRIED TO THE B/S		701.119	541.105	447.055
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	1370.870	1315.389
	TOTAL EARNINGS		NA	1370.870	1315.389
	IMPORTS
		Raw Materials	NA	449.726	332.726
		Capital Goods	NA	8.708	2.049
	TOTAL IMPORTS		NA	458.434	334.775
	Earnings Per Share (Rs.)		11.16	13.12	116.57

Expected Sales (2010-11 ) : Rs. 4000.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.01	3.41	4.55
Net Profit Margin (PBT/Sales)	(%)	8.24	4.06	6.85
Return on Total Assets (PBT/Total Assets}	(%)	8.54	8.49	12.68
Return on Investment (ROI) (PBT/Networth)		0.29	0.15	0.27
Debt Equity Ratio (Total Liability/Networth)		2.33	2.53	2.54
Current Ratio (Current Asset/Current Liability)		2.71	2.90	3.05

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND PERFORMANCE OF BUSINESS

During the year, the company has achieved revenue of Rs. 3192.585 millions as compared to Rs.2500.758 millions in the previous year, a total increase of Rs. 691.827 millions. The PBIDT during the year increased to Rs. 470.048 millions from Rs. 287.034 millions compared to previous year.

The company registered Profit before Tax of Rs. 2629.00 millions for the financial year ending 2010 as compared to Rs. 111.943 millions in the last financial year, a total increase of Rs. 150.957 millions.

Dyes manufacturing plant at Khambhat is operating with its major plant utilization capacity and has resulted in good volumes for financial year 2009-10. The company expects larger volumes in times to come.

INDUSTRY REVIEW

Chemical industry is one of the oldest industries in India, forms backbone for industrial and economic growth of the nation. It provides valuable chemicals for various end products such as textiles, paper, paints and varnishes, leather etc., which are required in almost all walks of life. It is estimated that it accounts for 3% of India's GDP. In terms of volume, it is 12"' largest in the world and 3" largest in Asia.

The Dyestuff sector is one of the important segments of the chemicals industry in India, having forward and backward linkages with a variety of sectors like textiles, leather, paper, plastics, printing inks and foodstuffs. The textile industry accounts for the largest consumption of dyestuffs. From being importers and distributors in the 1950's, it has now emerged as a very strong industry and a major foreign exchange earner. India has emerged as a global supplier of dyestuffs and dye intermediates, particularly for reactives, acid, vat and direct dyes. India accounts for 7% of the world production.

CONTINGENT LIABILITIES

Bank guarantee issued by Bank Rs. 15.662 millions (Previous Year Rs.14.703 millions) LC opened but liability not accepted in books Rs. 62.449 millions (Previous Year Rs. 19.635 millions)

Form 8:

Corporate identity number of the company	U24119GJ2000PLC037683
Name of the company	JAY CHEMICAL INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Jay House Near Saffronbuilding Panchvati, Ellisbridge, Ahmedabad, Gujarat, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Others - Goods
Particular of charge holder	Bank of Baroda - Ashram Road Branch, Vallabh Sadan Bhavan, Opposite Gujarat Chamber of Commercial and Industrial, Ashram Road, Ahmedabad - 380006, Gujarat, India e-mail id: ashram@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Third Supplemental Joint Deed Of Hypothecation Dated 25.01.2011
Date of instrument Creating the charge	25.01.2011
Amount secured by the charge	Rs.3033.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge – first and second pari passu charge on the movables of the company created to secure aggregate credit facilities of rs. 303..500 millions granted by the bank of baroda consortium.
Short particulars of the property charged	Movable Property I.E. Raw Materials, Wip, Finish goods, Export Bills Debtors, All Plant And Machinery and Other Movables Lying At Plot No.43/A, 44, 44(G.S.), 45+46A, 49+50/B, 49+50/A, 41/B, 49+50 GIDC Odhav Plot No 109, 220 Gidc, Vatwa, Sur.No.263/P, 264/P Vasna-Iyava, Sanand, Sur No. 756/1, 756/2, 757, 733 Villege Kalamsar, Khambhat
Date of latest modification prior to the present modification	27.03.2010
Particulars of the present modification	The Charge On Movable Assets Extended From Rs. 2172.000 Millions To Rs. 3033.500 Millions On The Existing Movable Assets Of The Co. & Additional Mobavle Assets Of The Co. The First Pari Passu Charge Is Created To Secure The Additional Working Capital Limits Of Rs. 305.000 Millions Granted By Bob Consortium. The Second Paripassu Charge To Secure The Additional Term Loan Rs. 625.000 Millions Granted By Bob Consortium

FIXED ASSETS:

• Building Factory and Office
• Electric Installation
• Plant and Machinery
• R and D and Laboratory Equipment
• Effluent Plant
• Furniture and Fixtures
• Office Equipments
• Computer
• Vehicle
• Land

WEB DETAILS:

PROFILE

In 1967, the journey of Subject began towards becoming one of the leading reactive dye manufacturers, worldwide. From a small dye and dye intermediate manufacturing unit, the company has today evolved into a diversified conglomerate with successful forays into construction chemicals, textile auxiliaries and garment manufacturing.

In 4 decades, the company has grown into India’s leading producer of reactive dyes, accounting for 15% of the Indian market share. Subject, in comparison to its worldwide contemporaries, stands tall with a production of 18000 mt. which is estimated to be 5% of the total world’s production. This places subject amongst the Top-10 reactive dye producers in the world. Subject is a success story that boasts of a number of landmark firsts.

These achievements are a result of the dynamic leadership of Founder Chairman, Mr. Jayendra Kharawala and Managing Director, Mr. Greeven Kharawala, supported by clean ethical practices and constant innovation achieved through observation and a keen customer centric approach towards business. Today, Subject has a strong presence in 40 countries and is growing continuously, aiming at nothing short of excellence.

Looking forward, Subject envisions being a Market Leader in the field of reactive dyes by increasing production capacity by 30% in the next one year. The revenue generated, shall in turn be diverted to Research and Development, the core of Subject’s success. 

NEWS AND EVENTS

"K2" - "Construction Chemical Division" of Subject held its first Dealers' Meet with the support of Balaji Build Care at Hotel Royal Orchid on 14.04.2011

18.04.2011

54 Dealers of  Ahmedabad participated in this gathering.

Mr. Advait Purani, Deputy General Manager gave Introductory speech and Presented the new –K2 division.

Mr. Greeven Kharawala, MD of Subject presented Future plans and Vision of Subject group.

Mr. Jignesh Joshi of Balaji Build Care shared his views of his association with Subject.

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.44.30
UK Pound	1	Rs.72.92
Euro	1	Rs.64.69

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.