MIRA INFORM REPORT

Report Date :

14.12.2011

IDENTIFICATION DETAILS

Name :	HIM TEKNOFORGE LIMITED
Registered Office :	Village Billanwali, Labana, Sai Road, Baddi-173205, Himachal Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.01.1989
Com. Reg. No.:	06-008963
Capital Investment / Paid-up Capital :	Rs.166.000 Millions
CIN No.: [Company Identification No.]	U28910HP1989PLC008963
TAN No.: [Tax Deduction & Collection Account No.]	PTLH10802B PTLH10721E
PAN No.: [Permanent Account No.]	AAACH3906R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Rough Forgings, Finished Axies and Finished Gears.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1700000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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/ Factory 1 :	Village Billanwali, Labana, Sai Road, Baddi-173205, Himachal Pradesh, India
Tel. No.:	91-1795-245466/246351/654025
Fax No.:	91-1795-245467
E-Mail :	himbaddi@himgroup.net teknoforge@himgroup.net
Corporate Office :	# 39, Sector 28A, Chandigarh-160002, India
Tel. No.:	91-172-2651654/2657681/2657871
Fax No.:	91-172-2651550
E-Mail :	teknoforge@himgroup.net
Factory 2 :	264-268, MPKVAN Industrial Area I, Pithampur, District Dhar, Madhya Pradesh, India
Marketing Office:	Located At: · Haryana · Mumbai · Pune

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Vijay Aggarwal

Designation :

Chairman cum Managing Director

Address :

# 203, Sector 6, Panchkula-134109, Haryana, India

Date of Birth/Age :

18.10.1949

Date of Appointment :

11.01.1989

Din No.:

00094141

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Managing director	01-07-09	11-01-89	Active	NO
2	U28910CH1990PTC010730	H D FORGE PRIVATE LIMITED	Director	08-10-90	08-10-90	Active	NO
3	U27106CH1990PTC010828	P C ALLOYS PRIVATE LIMITED	Director	12-11-90	12-11-90	Active	NO

Name :

Mr. Rajiv Aggarwal

Designation :

Director

Address :

# 73, Sector 28A, Chandigarh-160002, India

Date of Birth/Age :

23.03.1958

Date of Appointment :

01.10.1993

Din No.:

00094198

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27200HP1986PTC006829	METALCHEM INDIA PRIVATE LIMITED	Director	12-03-90	12-03-90	-	Active	NO
2	U28910CH1990PTC010730	H D FORGE PRIVATE LIMITED	Director	30-12-91	30-12-91	-	Active	NO
3	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Whole-time director	01-04-09	01-10-93	-	Active	NO
4	U72200CH1997PTC020207	R V NETSOFT PRIVATE LIMITED	Director	09-07-97	09-07-97	-	Active	NO
5	U67200CH2003PTC025864	HUDSON INSURANCE BROKERS PRIVATE LIMITED	Director	21-03-03	21-03-03	-	Active	NO
6	U19119CH1993PTC013406	OASIS LEATHERS PRIVATE LIMITED	Director	29-11-04	29-11-04	23-08-10	Active	NO
7	U20211CH1987PLC007836	SAMRAT PLYWOOD LIMITED	Additional director	01-06-10	03-10-09	02-07-10	Active	NO
8	U17115CH1991PLC011127	FERTICHEM COTSPIN LIMITED	Additional director	06-10-09	06-10-09	10-12-09	Active	NO

Name :

Mr. Ravikant Tilakraj Dhawan

Designation :

Director

Address :

301-A, Jyot Apartments, Shere Punjab Society, Andheri (East), Mumbai-400093, Maharashtra, India

Date of Birth/Age :

05.01.1950

Date of Appointment :

01.11.2002

Din No.:

00101878

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Director	01-11-02	01-11-02	Active	NO
2	U34103MH2006PTC165758	SPICE MOTORS PRIVATE LIMITED	Director	23-11-06	23-11-06	Active	NO
3	U67120MH2006PTC158968	PUKKA MERCANTILE COMPANY PRIVATE LIMITED	Director	01-03-07	01-03-07	Active	NO
4	U51909MH2004PTC144982	KIMMI TRADING PRIVATE LIMITED	Director appointed in casual vacancy	10-02-09	10-02-09	Active	NO

Name :

Mr. Sajeve Deora

Designation :

Director

Address :

EC-13, Inderpuri, New Delhi-110012, India

Date of Birth/Age :

27.12.1959

Date of Appointment :

09.12.2010

Din No.:

00003305

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1989PTC038545	DEORA ASSOCIATES PRIVATE LIMITED	Director	21-01-09	05-12-89	-	Active	NO
2	L17226UP1973PLC003746	BIL CONTINENTAL LIMITED	Director	30-07-97	30-07-97	-	Active	NO
3	L15142MP1973PLC001225	VIPPY INDUSTRIES LIMITED	Director	30-10-01	30-10-01	-	Active	NO
4	L72112MP1974PLC001260	JYOTI OVERSEAS LIMITED	Director	06-02-04	06-02-04	18-07-09	Active	NO
5	L15140MH1986PLC038536	RUCHI SOYA INDUSTRIES LIMITED	Director	27-12-05	27-12-05	-	Active	NO
6	L26101HP1981PLC004430	JAI MATA GLASS LIMITED	Director	30-09-06	07-07-06	-	Active	NO
7	L74899DL1993PLC051981	INTEGRATED CAPITAL SERVICES LIMITED	Managing director	09-04-10	11-04-08	-	Active	NO
8	U10300DL2009PTC186321	THESGORA COAL PRIVATE LIMITED	Director	02-01-09	02-01-09	-	Active	NO
9	U74999DL2009PTC191762	GREEN INFRA PROFILES PRIVATE LIMITED	Director	01-07-09	01-07-09	-	Active	NO
10	L65990MH1984PLC033878	RUCHI INFRASTRUCTURE LIMITED	Director	30-09-10	13-11-09	-	Active	NO
11	U74140DL2010PTC208955	GREENWAY ADVISORS PRIVATE LIMITED	Director	30-09-10	30-09-10	-	Active	NO
12	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Director	30-09-11	09-12-10	-	Active	NO
13	U15205AP2008PTC058708	GEMINI EDIBLES AND FATS INDIA PRIVATE LIMITED	Additional director	15-03-11	15-03-11	-	Active	NO

Name :

Mr. Purshotam Lal Sharma

Designation :

Director

Address :

H. No. 511, Sector 15 A, Chandigarh-160015, India

Date of Birth/Age :

28.04.1951

Date of Appointment :

06.06.2011

Din No.:

03509280

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29219CH1994PLC015132	INDO FARM EQUIPMENT LIMITED	Whole-time director	01-04-11	01-04-11	Active	NO
2	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Director	30-09-11	06-06-11	Active	NO

Name :

Mr. Om Joshi

Designation :

Nominee Director

Address :

C-164, Sector-19, Noida-201301, Uttar Pradesh, India

Date of Birth/Age :

13.04.1956

Date of Appointment :

06.06.2011

Din No.:

00049860

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1989PTC036968	RANCAN IMPEX PRIVATE LIMITED	Nominee director	31-03-06	31-03-06	23-04-07	Active	NO
2	L24111AS1994PLC004051	PREMIER CRYOGENICS LIMITED	Nominee director	14-11-06	14-11-06	-	Active	NO
3	L18101CH1994PLC015413	GLOBAL KNITFAB LIMITED	Nominee director	12-04-10	12-04-10	-	Active	NO
4	U28910HP1989PLC008963	HIM TEKNOFORGE LIMITED	Nominee director	06-06-11	06-06-11	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Rajni Charaya
Designation :	Secretary
Address :	HL-418, Phase 9, Mohali-160062, Punjab, India
Date of Birth/Age :	01.02.1986
Date of Appointment :	01.02.2010
Pan no.:	ATXPR0119F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Vinod Aggarwal	2205313
Vijay Aggarwal	3167288
Daya Rani	389141
Urmil Aggarwal	510151
Anju Aggarwal	891676
P.C. Aggarwal	467770
Rajiv Aggarwal	4203453
Asha Aggarwal	1769459
Rohan Aggarwal	62445
Medha Aggarwal	15400
Nitin Aggarwal	102440
Mrinal Aggarwal	28809
Aditya Aggarwal	25705
Rajiv Aggarwal (HUF)	22020
Ankur Aggarwal	97700
Vinod Aggarwal (HUF)	19570
Southern (I) Depository Services Private Limited, India	170000
N. K. Dalal	16000
Poonam Kumari Gupta	10000

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Venture Capital	26.88
Bodies corporate	10.92
Directors or relatives of directors	61.87
Other top fifty shareholders	0.33
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Rough Forgings, Finished Axies and Finished Gears.

Products :

Product Description	Item Code
Rough Forgings, Finished Axies and Finished Gears	7326

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit	Installed Capacity	Actual Production
Rough Forgings	MTs	28200	11625.818
Finished Components # (Gears / Shafts / Axies) [# Includes assembles / sub assembles]	Nos.	1500000	834139

GENERAL INFORMATION

Bankers :

State Bank of Patiala, Commercial Branch, SCO 103-107, Sector 8-C, Chandigarh-160008, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans banks	245.823	236.342
Rupee term loans financial institutions	7.819	11.349
Rupee term loans others	20.000	0.000
Working capital loans banks	386.998	314.616
Loans taken for vehicles	5.981	6.326
Loans taken for other fixed assets	17.432	0.000
Total	684.053	568.633
Unsecured Loan
Rupee term loan banks	0.000	0.329
Working capital loans others	16.548	10.000
Directors loans	0.000	0.932
Total	16.548	11.261

Financial Institution:	Religare Finvest Limited, D3, P3B, District Centre, Saket, New Delhi-110017, India
Banking Relations :	--
Auditors :
Name :	PRA Associates Chartered Accountants
Address :	SCO 124-125, Sector 34A, Chandigarh-160002, India
Pan No.:	AACFA2775J
Associates:	· Globe Precision Industries Private Limited · Himachal Shots and Metals Private Limited · Him Chemicals and Fertilisers Private Limited

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions
500000	Preferences Shares	Rs.100/- each	Rs.50.000 Millions
	Total		Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23250000	Equity Shares	Rs.10/- each	Rs.232.500 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
500000	Preferences Shares	Rs.100/- each	Rs.50.000 Millions
	Total		Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16600000	Equity Shares	Rs.10/- each	Rs.166.000 Millions

NOTE:

1. 16200000 equity shares of Rs.10/- each fully paid 80000 equity shares of Rs.10/- each partly paid up.

2. 15000000 equity shares of Rs.10/- each fully paid

·

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		166.000	150.000	150.000
2] Share Application Money		0.000	10.000	0.000
3] Reserves & Surplus		259.592	206.665	166.724
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		425.592	366.665	316.724
LOAN FUNDS
1] Secured Loans		684.053	568.633	361.761
2] Unsecured Loans		16.548	11.261	11.835
TOTAL BORROWING		700.601	579.894	373.596
DEFERRED TAX LIABILITIES		9.654	12.139	15.689
TOTAL		1135.847	958.698	706.009
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		488.524	438.886	212.402
Capital work-in-progress		29.912	0.000	16.225
INVESTMENT		1.305	1.299	2.895
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	598.031	442.770	390.831
	Sundry Debtors	329.522	275.399	250.013
	Cash & Bank Balances	29.913	26.310	18.609
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	64.717	65.234	36.974
Total Current Assets		1022.183	809.713	696.427
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	367.858	259.889	197.971
	Other Current Liabilities	22.969	20.687	16.498
	Provisions	15.250	10.624	7.557
Total Current Liabilities		406.077	291.200	222.026
Net Current Assets		616.106	518.513	474.401
MISCELLANEOUS EXPENSES		0.000	0.000	0.086
TOTAL		1135.847	958.698	706.009

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1339.064	1065.611	1032.041
		Other Income	2.216	3.365	0.887
		TOTAL (A)	1341.280	1068.976	1032.928
Less	EXPENSES
		Manufacturing material cost	219.892	164.931
		Employee related expenses	97.408	61.648
		Administrative selling other expenses	65.581	59.600	912.038
		Consumption materials changes inventories	793.147	661.907
		TOTAL (B)	1176.028	948.086	912.038
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		165.252	120.890	120.890
Less	FINANCIAL EXPENSES (D)		82.635	57.893	60.234
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		82.617	62.997	60.656
Less/ Add	DEPRECIATION/ AMORTISATION (F)		35.175	26.488	18.881
	PROFIT BEFORE TAX (E-F) (G)		47.442	36.509	41.775
Less	TAX (H)		(2.485)	(3.550)	(1.831)
	PROFIT AFTER TAX (G-H) (I)		49.927	40.059	43.606
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		49.927	40.059	43.606
	Earnings Per Share (Rs.)		3.08	3.05	3.21

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.72	3.75	4.22
Net Profit Margin (PBT/Sales)	(%)	3.54	3.43	4.05
Return on Total Assets (PBT/Total Assets}	(%)	3.14	2.92	4.60
Return on Investment (ROI) (PBT/Networth)		0.11	0.10	0.13
Debt Equity Ratio (Total Liability/Networth)		2.60	2.37	1.88
Current Ratio (Current Asset/Current Liability)		2.52	2.78	3.14

LOCAL AGENCY FURTHER INFORMATION

NOTE: The registered office of the company has been shifted from Sai Road, Baddi, Solan, Himachal Pradesh, India to the present address w.e.f. 06.09.2011.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U28910HP1989PLC008963
Name of the company	HIM TEKNOFORGE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sai Road, Baddi, Solan, Himachal Pradesh, India
Type of charge	Book Debts Movable Property [not being pledge] Immovable Property
Particular of charge holder	State Bank of Patiala, Commercial Branch, SCO 103-107, Sector 8-C, Chandigarh-160008, India
Email	cbchd2008@yahoo.com
Nature of description of the instrument creating or modifying the charge	1. Agreement of hypothecation of goods and assets 2. Letter regarding the grant of individual limit within the overall limit 3. Sanction letter
Date of instrument Creating the charge	02.04.2011
Amount secured by the charge	Rs.25.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 4.50% above BR i.e. 13.50% p.a. (floating) with monthly Terms of Repayment Four Months. To be liquidated by 31st July, 2011 Margin -Raw Material 25% -Stock in Progress 25% -Finished Goods 25% -Book Debts/ Receivables 30% Extent and Operation of the charge 100%
Short particulars of the property charged	Hypothecation of company entire stock(all unit)of RM/SIP/FG, consumable stores and spare, tool and dies, book debts and all other current asset present and future in favour of financing banks on 1st pari passu basis 2nd pari passu charge on land measuring 15 Bigha 14 Biswa at Vill Billanwali Labana Baddi (HP),Plot No 264-268A measuring 13760 sq mt at Industrial Area Pithampur District Dhar ( MP), and cont in Land measuring 27 Bigha 19 Biswa Situated at Vill Manpura, Teh Baddi, District Solan (HP) 1st pari passu charge by way of equitable mortgage on the under noted properties with other working capital member bank i.e. SBBJ 1. House no. 39 at Sector 28 A Chandigarh measuring 299.30 sq yards in the name of Mrs. Daya Rani with GF, FF and SF. 2. Two storied house at H. No. 73, Sector-28 A Chandigarh measuring 1031 sq yds standing in the name of Mr. Prem Chand Aggarwal with GF and FF. 3.Land measuring 5 Bighas and building constructed thereon in the name of Metal Chem India Private Limited situated at Billanwali Labana Baddi (HP) FDR under Bank's Lien Rs.0.30 crores Personal guarantee of Mr. Vijay Aggarwal, Mr. Rajiv Aggarwal, Mr. Vinod Aggarwal, Mr. P.C Aggarwal, Mrs. Daya Rani, Mrs. Anju Aggarwal and Corporate guarantee of Metal Chem India Private Limited.

FIXED ASSETS:

· Land

· Factory Building

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Product Design and Developments

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.53.40
UK Pound	1	Rs.83.32
Euro	1	Rs.70.44

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.