MIRA INFORM REPORT

Report Date :

14.12.2011

IDENTIFICATION DETAILS

Name :	DEEPAK INDUSTRIES LIMITED NEW ALLENBERRY WORKS (DIVISION OF DEEPAK INDUSTRIES LIMITED)
Registered Office :	16, Hare Street, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.05.1954
Com. Reg. No.:	21-21638
Capital Investment / Paid-up Capital :	Rs.52.981 millions
CIN No.: [Company Identification No.]	L63022WB1954PLC021638
TAN No.: [Tax Deduction & Collection Account No.]	RTKN01202F / CALD00205C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Automotive Transmission Gears and has many cutting edge technologies in the field of Transmission Gears.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 4300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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 – 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 :	16, Hare Street, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22482391
Fax No.:	91-33-22489382
E-Mail :	vdm55@rediffmail.com deepak_indusltd@yahoo.com info@contansys.com styabrata_mika@yahoo.co.in
Factory :	14/7, Mathura Road, Faridabad – 121 003, Haryana, India
Tel. No.:	91-129-6451260-65
Fax No.:	91-129-2275525
E-Mail :	naw@del3.vsnl.net.in

DIRECTORS

As on 25.08.2011

Name :	Mr. Pradip Kumar Daga
Designation :	Managing Director
Address :	5, Merlin Park, Kolkata – 700 019, West Bengal, India
Date of Birth/Age :	24.04.1937
Date of Appointment :	16.12.2008
DIN No.:	00040692

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	L15491WB1879PLC000377	Longview Tea Company Limited	Director	08-05-54	08-05-54	Active	NO
2	L17120MH1897PLC000163	Century Textile and Industries Limited	Director	04-06-63	04-06-63	Active	NO
3	L25192WB1965PLC026390	Continental Profiles Limited	Director	08-03-65	08-03-65	Active	NO
4	L15421WB1952PLC020577	Gobind Sugar Mills Limited	Director	24-11-75	24-11-75	Active	NO
5	L17111HP1982PLC016465	Deepak Spinners Limited	Managing director	16-04-10	25-03-82	Active	NO
6	U29130WB1993PLC060745	Deepak Gears Limited	Director	17-11-93	17-11-93	Active	NO
7	L63022WB1954PLC021638	Deepak Industries Limited	Managing director	16-12-08	16-12-08	Active	NO

Name :	Mr. Suresh Chand Mohta
Designation :	Director
Address :	Dipti Apartment, Flat 3D, 48 Gola Ghata Road, Kolkata – 700 098, West Bengal, India
Date of Birth/Age :	30.05.1950
Date of Appointment :	30.03.2002
DIN No.:	00066305

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	L63022WB1954PLC021638	Deepak Industries Limited	Director	09-08-95	09-08-95	Active	NO

Name :	Mr. Rahul Chomal
Designation :	Director
Address :	37, Jubilee Park, All Premises, 94 Jadavpur, Kolkata – 700 033, West Bengal, India
Date of Birth/Age :	20.10.1980
Date of Appointment :	24.09.2007
DIN No.:	01291942

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	U27310WB1994PLC063345	Saphire Iron Works Limited	Director	27-03-02	27-03-02	05-06-09	Active	NO
2	U27100MH1986PTC040050	Inland Steel Private Limited	Director	09-05-05	09-05-05	-	Active	NO
3	L25192WB1965PLC026390	Continental Profiles Limited	Director	05-07-05	05-07-05	-	Active	NO
4	L63022WB1954PLC021638	Deepak Industries Limited	Director	03-05-08	24-09-07	-	Active	NO
5	U27109WB2010PTC153357	Sunrise Ore and Minerals Private Limited	Director	01-11-10	01-11-10	-	Active	NO

Name :	Mr. Anand Prasad Agarwallla
Designation :	Director
Address :	271, Rabindra Sarani, Kolkata – 700 006, West Bengal, India
Date of Birth/Age :	05.11.1951
Date of Appointment :	30.03.2002
DIN No.:	00312652

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	U30005WB1983PLC037023	Khaitan Paper and Industries Limited	Director	20-12-83	20-12-83	Active	NO
2	L17119WB1919PLC003385	Presidency Exports and Industries Limited	Director	16-02-90	16-02-90	Active	NO
3	U70109WB1952PTC020489	Agarwala Properties Private Limited	Director	03-12-99	03-12-99	Active	NO
4	L63022WB1954PLC021638	Deepak Industries Limited	Director	30-03-02	30-03-02	Active	NO
5	L45201WB1990PLC050101	Simplex Projects Limited	Director	29-09-11	16-07-11	Active	NO

Name :	Mr. Sujit Chakravorti
Designation :	Director
Address :	17/7, James Long Sarani, Nafar Ch-Andra Das Road, Behala, S 24 PGS, Kolkata – 700 034, West Bengal, India
Date of Birth/Age :	13.09.1943
Date of Appointment :	30.10.2007
DIN No.:	00066344

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	L63022WB1954PLC021638	Deepak Industries Limited	Director	03-05-08	22-11-00	-	Active	NO
2	L27202GJ1962PLC040548	Jhagadia Copper Limited	Nominee director	22-11-00	22-11-00	26-09-07	Active	NO
3	L74140WB1996PLC081521	Shalimar Wires Industries Limited	Nominee director	03-08-01	03-08-01	26-09-07	Active	NO
4	L20211WB1957PLC023493	Sarda Plywood Industries Limited	Director	27-09-02	27-09-02	-	Active	NO
5	L20211AS1982PLC001969	Kitply Industries Limited	Director	29-06-04	29-06-04	-	Active	NO
6	L36900WB1979PLC032046	Webfil Limited	Director	29-06-06	29-06-06	-	Active	NO
7	U29262WB1986PTC040209	Parcon (India) Private Limited	Additional director	09-07-07	09-07-07	-	Active	NO
8	U40101ML1976GOI001658	North Eastern Electric Power Corporation Limited	Director	20-02-08	20-02-08	19-02-11	Active	NO
9	U85195WB1976SGC030823	Infusions (India) Limited	Director	01-08-11	01-08-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Vithal Das Mall
Designation :	Secretary
Address :	16, Kaelat Ghosh Lane, 1^st Floor, Kolkata – 700 006, West Bengal, India
Date of Birth/Age :	28.12.1955
Date of Appointment :	02.04.2011
PAN No.:	AEAPM3596B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOT AVAILABLE

As on 25.08.2011

Equity Share Breakup	Percentage of Holding
Category
Nationalised or other banks	5.36
Bodies corporate	31.21
Directors or relatives of directors	61.47
Other top fifty shareholders	1.96
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Automotive Transmission Gears and has many cutting edge technologies in the field of Transmission Gears.
Products :	· Spur and Helical Gears · Rear Axle and Shaft · Transmission Gear and Shaft · Straight Differential Bevel Gears and Pinions · Timming Gears

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Licensed Capacity	Actual Production @
Worm Reduction Gear	No.	8750	3302
Spur/Helical, Double Helical	No.	3000	1832
Bevel Reduction Gear Boxes including Industrial Couplings Tractor/Automobile Gear/Parts	MT	5000	--
Bevel Reduction Gear Boxes including Industrial Couplings Tractor/Automobile Gear/Parts	No.	1800000	5629118
Rear Axles and Spline Shaft	MT	1000	--
Tractors and Automobiles	No.	1800000	1150171
Loose Gears	No.	100000	426
Geared Motors	No.	1500	798
Gear Couplings	Rs.in Lacs/No.	100	105
Torsion Shaft and Diaphragm Couplings	No.	10	123
Diaphragm Couplings Marine Gear Box	No.	100	--
Clutches	Rs. in Lacs/No.	15.00	4
Speed Regulating Pulleys	Rs. in Lacs/No.	9.00/3000	3

Notes on Installed Capacity

The majority of the Plant and Machinery being common for different products manufactured by the company and installed capacity being dependent on Product Mix, which in turn is decided by the actual demand for various products from time to time, and also on a vailing of sub-contracting facilities, it is not feasible for the Company to indicate the exact installed capacity

@ Does not include production for job work

GENERAL INFORMATION

No. of Employees :

800 (Approximately)

Bankers :

State Bank of India (Lead Bank)

Commercial Branch, Kolkata, 24, Park Street, Kolkata – 700 016, West Bengal, India

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Rupee term loans banks secured	113.874	88.155
Foreign currency loans banks secured	0.000	91.995
Working capital loans banks secured	419.821	185.132
Interest accrued due other debt secured	1.316	0.709
Total	535.011	365.991

Notes

· Working capital advances from banks are secured on pari passu basis by way of hypothecation of stocks, book debts and other current assets of the company and also guaranteed by one director and also secured by way of second charge on the fixed assets of the company

· Term loan from SBI is secured by the hypothecation of the machines purchased out of bank loan and equitable mortgage of the freehold industrial property with buildings and factory sheds of Kolkata unit and also by way of first hypothecation of movable assets of the unit and also guaranteed by one director of the company

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Deferred sales tax loan unsecured	18.486	0.000
Total	18.486	0.000

Banking Relations :	--
Auditors :
Name :	Singhi and Company Chartered Accountants
Address :	1-B, Old Post Office Street, Kolkata – 700 001, West Bengal, India
PAN No.:	AAVFS5038H

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5300000	Equity Shares	Rs.10/- each	Rs.53.000 millions
20000	Preference Shares	Rs.100/- each	Rs.2.000 millions
	Total		Rs.55.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5298095	Equity Shares	Rs.10/- each	Rs.52.981 millions

Notes

· 20000 redeemable cumulative preference shares of Rs.100/- each

· 2889306 equity shares have been issued as fully paid up bonus shares by capitallization of reserve and 50000 issued for consideration other than cash and the balance are issued for cash.

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		52.981	52.981	52.981
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1024.805	675.798	358.442
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1077.786	728.779	411.423
LOAN FUNDS
1] Secured Loans		535.011	365.991	263.634
2] Unsecured Loans		18.486	0.000	2.297
TOTAL BORROWING		553.497	365.991	265.931
DEFERRED TAX LIABILITIES		37.685	10.937	0.838
TOTAL		1668.968	1105.707	678.192
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		714.009	489.152	353.623
Capital work-in-progress		65.647	44.102	1.536
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	517.307	289.425	163.894
	Sundry Debtors	558.296	435.470	444.425
	Cash & Bank Balances	341.509	308.795	106.286
	Other Current Assets	7.010	14.233	4.168
	Loans & Advances	446.190	233.162	111.249
Total Current Assets		1870.312	1281.085	830.022
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	674.746	462.462	387.037
	Other Current Liabilities	32.404	53.929
	Provisions	273.850	192.241	119.952
Total Current Liabilities		981.000	708.632	506.989
Net Current Assets		889.312	572.453	323.033
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1668.968	1105.707	678.192

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating Revenue	2744.751	2153.513	1897.527
		Other Income	31.696	27.868	40.621
		TOTAL (A)	2776.447	2181.381	1938.148
Less	EXPENSES
		Consumption materials changes inventories	1524.244	1185.231	1566.509
		Manufacturing service costs	354.033	258.402
		Employee related expenses	250.135	197.281
		Administrative selling other expenses	113.905	91.684
		TOTAL (B)	2242.317	1732.598	1566.509
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		534.130	448.783	371.639
Less	INTEREST FINANCIAL CHARGES (D)		53.416	27.679	22.886
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		480.714	421.104	348.753
Less/ Add	DEPRECIATION/ AMORTISATION (F)		62.928	37.478	30.600
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		417.786	383.626	318.153
Less	TAX (H)		68.358	65.827	63.152
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		349.428	317.799	255.001
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		663.025	345.226	90.225
	BALANCE CARRIED TO THE B/S		1012.453	663.025	345.226
	Earnings Per Share (Rs.)		65.95	59.98	48.13

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	12.59	14.57	13.16
Net Profit Margin (PBT/Sales)	(%)	15.22	17.81	16.77
Return on Total Assets (PBT/Total Assets}	(%)	16.17	21.67	26.88
Return on Investment (ROI) (PBT/Networth)		0.39	0.53	0.77
Debt Equity Ratio (Total Liability/Networth)		1.42	1.47	1.88
Current Ratio (Current Asset/Current Liability)		1.91	1.81	1.64

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS

During the year, there has been reasonable increase in the Turnover of the Company in line with the expectation of the management. Substantial additions to the fixed assets have been made during the year and the Company has also planned further capital expenditure this year to be met primarily from internal accruals.

The manufacturing sector particularly the auto sector to which the products of the Company belong showed encouraging performance. The demand of the Company's products has been good during the year and barring unforeseen circumstances, the Company expects similar performance in the current year.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF (As on 31.03.2011)

· Claims against the company not acknowledged as debt (other than claim of ex-employees for re instatement at Faridabad unit) Rs.2.306 millions.

· Letter of Guarantee opened by Bank in favour of foreign/Indian suppliers Rs.0.281 million

· Sales Tax and Excise Duty liabilities Rs.16.749 millions and Rs.0.031 million respectively.

· Guarantee issued by Bank for Rs.64.713 millions including Rs.5.802 millions in respect of amount included in Advance from customers. The bank held margin money of Rs.0.081 million as fixed deposit receipts against the said guarantee.

· Indemnity bond issued for Rs.1.019 millions

· Indemnity Bonds issued in favour of Customs Department for Rs.4.166 millions and Rs.0.082 million deposit in this respect, has been included in deposit.

· Customers' bills discounted with Company's Bankers viz. SBI Rs. Nil

· Proportionate value of duty saved in terms of Letter of Undertaking given to Jt. Director General of Foreign Trade under EPCG Scheme, where export obligation can be completed in future years Rs.4.058 millions

· Guarantee issued by third party Rs.0.050 million.

FORM 8

Corporate identity number of the company	L63022WB1954PLC021638
Name of the company	DEEPAK INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	16, Hare Street, Kolkata – 700 001, West Bengal, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10264265
Type of charge	· Immovable property · Any interest in immovable property
Particular of charge holder	State Bank of India (Lead Bank) Commercial Branch, Kolkata, 24, Park Street, Kolkata – 700 016, West Bengal, India
Nature of instrument creating charge	Memorandum of Deposit for Creation of Charge for Working Capital Credit Limit - (Form-C.9) Declaration.
Date of instrument Creating the charge	26.08.2011
Amount secured by the charge	Rs.962.600 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest SBI : Cash Credit/WCDL : At 4.25% above Base Rate. Term Loan : At 4.50% above Base Rate. Uco Bank : Cash Credit : BPLR- 0.50%. Terms of Repayment As applicable to SBI: Working Capital Limit is repayable on demand. The existing Term Loan of Rs.195.000 millions is repayable as per existing terms of Sanction. For the limits of Uco Bank : As per the terms of sanction of the respective Bank. Margin As applicable to SBI: Raw Materials: Domestic : 25%, Stocks in process : 25%, Finished Goods : 25% and Receivables (cover 90 days) : 25%. For the limits of Uco Bank : As per the terms of sanction of the respective Bank. Extent and Operation of the charge The charge shall operate as pari passu second charge basis amongst the Working Capital Bankers and Term Loan limit of SBI on the mortgaged properties of the Company as mentioned in Column No.15 without any preference or priority of one over the other or others to secure the overall limit of Rs.962.600 millions (SBI : Rs.812.600 millions and UCO Bank : Rs.150.000 millions) together with interest, costs and charges thereon. Others The Borrower shall not do or allow anything which may prejudice the security and shall comply with the terms and conditions of the Agreements.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All that piece and parcel of land measuring an area of 18805.40 sq.meters situated and lying at Plot No.62, Sector-11, comprising of land bearing Khasera Nos.400, 395 and 423 located at Tata Motors Vendor Park, Integrated Industrial Estate, SIDCUL, Pantnagar within the limits of Revenue Village Kalyanpur, Pargana Rudrapur, Tehsil Kichha and District Udham Singh Nagar in the State of Uttarakhand and the said property is butted and bounded as follows: On the North : 24 meters wide road, On the East : 18 meters wide road and Plot No.67, Sector-11, On the South : Plot No.67 and 63, Sector-11 and On the West : Plot No.65, Sector-11.
Particulars of the present modification	By this modification, the overall limit is enhanced from Rs.604.500 millions to Rs.962.600 millions and thus the charge on mortgaged properties of the Company is additionally secured by creation of mortgage on the above mentioned properties by way of pari passu second charge to secure the overall limit of Rs.962.600 millions (SBI : Rs.812.600 millions and UCO Bank : Rs.150.000 millions) together with interest, costs and charges thereon. All other terms and conditions continue to remain as before in full force and effect.

FIXED ASSETS

· Land

· Building and Godown

· Plant and Machinery

· Vehicles

· Furniture, Fittings and Office Equipments

· Water Supply Installations

· Electrical Installation

· Computer Software

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	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.