MIRA INFORM REPORT

Report Date :

07.01.2011

Note:

Registered office of the company has been shifted from Demag Centre, S-255/2, Hinjewadi, Pune-411057, Maharashtra, India to the present address w.e.f.12.07.2010

IDENTIFICATION DETAILS

Name :	DEMAG CRANES AND COMPONENTS (INDIA) PRIVATE LIMITED
Formerly Known As :	MANNESMANN DEMATIC [INDIA] PRIVATE LIMITED
Registered Office :	Gat No.330, 332, 333, 334, Nanekarwadi, Chakan, Khed, Pune-410 501, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	16.07.1997
Com. Reg. No.:	11-109449
CIN No.: [Company Identification No.]	U29299MH1997PTC109449
TAN No.: [Tax Deduction & Collection Account No.]	PNED03871A
Legal Form :	Private limited liability company
Line of Business :	Manufacturer of Overhead Cranes and Trader of Spare Parts.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 870000
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 – 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

INFORMATION PARTED BY

Name :	Mr. Sachin Kulkarni
Designation :	Accounts Department
Date :	05.01.2010

LOCATIONS

Registered/ Head Office/ Factory :	Gat No.330, 332, 333, 334, Nanekarwadi, Chakan, Khed, Pune-410 501, Maharashtra, India
Tel. No.:	91-2135-614200
Fax No.:	91-2135-614300
E-Mail :	info@dematic.co.in sales@dematic.co.in dematic.del@vsnl.com dematic.cal@vsnl.com dematic.blr@vsnl.com dematicmum@vsnl.net vivek.jain@demagcranes.co.in nilesh.jajodia@demagcranes.co.in nvgopal@vsnl.com rajesh.kalyanasundaram@demagcranes.co.in sachin.kulkarni@demagcranes.co.in
Website :	http://www.demagcranes.co.in
Location :	Rented
Regional Offices:	Located at: · Pune · Delhi · Chennai · Bangalore · Kolkata · Ahmedabad
Sales and Services Offices:	Located at: · Baroda · Jamshedpur
Branches :	Ø 517, Indra Prakash Building, 21, Barakhamba Road, New Delhi – 110001, India Tel. No. 91-11-25525200/25542452 Fax No. 91-11-25542455 E-mail : dematic.del@vsnl.com Ø 208-212, Mahatta Towers, 54-B, Community Centre, Janakpuri, New Delhi – 110058, India Contact Person : Mr. Basant Sandooja Tel. No. 91-11-25525200/25542452 Fax No. 91-11-25542455 E-mail : dematic.del@vsnl.com Ø 15, SNS Chambers, 239, Sankey Road, Sadashivnagar, Bangalore – 560080, Karnataka, India Contact Person : Mr. Kishore Dagia Tel. No. 91-80-3460221 Fax No. 91-80-3347335 E-mail : dematic.blr@vsnl.com Ø MZ1-Shubham, 1, Sarojini Naidu Sarani, Kolkata – 700017, West Bengal, India Contact Person : Mr. Sanjay Jain Tel. No. 91-33-22405224 Fax No. 91-33-22810028 E-mail : dematic.cal@vsnl.com Ø 315, Morya Estate, Oshivara Link Road, Andheri [West], Mumbai - 400053, Maharashtra, India Contact Person : Mr. Rajendra C. Phatak Tel. No. 91-22-26935985 Fax No. 91-22-26935986 E-mail : dematicmum@vsnl.net

DIRECTORS

As on 29.09.2009

Name :	Mr. Prakash Subramaniam
Designation :	Managing Director
Address :	2, Blossom 11, Gulmohar Park, Pune-411007, Maharashtra
Date of Birth/Age :	22.09.1960
Date of Appointment :	19.03.2002
Qualification :	Graduate
Name :	Mr. Klause Peter Hoffmann
Designation :	Director
Address :	Thueriengerweg, 20, Schwerte, Germany-58239
Date of Birth/Age :	29.04.1962
Date of Appointment :	13.06.2008
Name :	Mr. Chandra Shekhar Mathur
Designation :	Director
Address :	A-12, Nizamuddin (East), New Delhi, Delhi, India
Date of Birth/Age :	10.02.1951
Date of Appointment :	16.07.1997

KEY EXECUTIVES

Name :	Mr. Samir Ashta
Designation :	Chief Financial Officer
Name :	Mr. Basant Sandooja
Designation :	Director (Operations)
Name :	Mr. Vijendra Dande
Designation :	Head - Service
Name :	Mr. Vivek Shesh
Designation :	Vice President Sales
Name :	H S Murali
Designation :	Assistant General Manger – Sales (South and East)
Name :	Mr. Adarsh Hegde
Designation :	Assistant General Manager – Sales(North and West)
Name :	Mr. Vivek Jain
Designation :	Company Secretary
Address :	F1002, Sylvan Height, Aundh, Pune-411007, Maharashtra
Date of Birth/Age :	10.04.1970
Date of Appointment :	13.05.2005
Name :	Mr. Mahadev Joshi
Designation :	Company Secretary
Address :	G301, Shreeji Paradise, 162, D P Road, Aundh, Pune-411007, Maharashtra
Date of Birth/Age :	18.05.1970
Date of Appointment :	27.09.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2009

Names of Shareholders	No. of Shares
Demag Cranes and Components GmbH	299999
Heiber J Horst	1
Total	300000

As on 29.09.2009

Equity Share Breakup (Percentage of Total Equity) 

Category	Percentage of Holding
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Overhead Cranes and Trader of Spare Parts.
Products :	Battery magnets Circular magnets Clamp-fitted buffers for profile section girders Crane sets B-P rope balancer DC-Com chain hoists DCL Compact Line DCM-Pro Manulift DC-Pro chain hoists DCS-Pro chain hoist Dedrive Compact Dedrive Pro DEL single conductors DFL flat conductor lines DH hoist units DK chain hoists DKK compact conductor lines Double-girder overhead travelling cranes (ZKKE) DRC-MP radio remote control system DR rope hoist DRS wheel block systems DS-1 rope winches DSE control pendant DS-H SpeedHoist DSK control pendant DST control pendant End carriages for overhead travelling cranes Geared limit switch Geared motors IR infrared control system KBK manipulator cranes KBK overhung and extending cranes KBK single and double-girder suspension cranes KBK stacker and portal cranes KBK suspension monorails KBK trailing power supply line system Load detector LRS travel wheel systems Microspeed units Motors / brake motors Open winches Permanent magnets Process cranes RAE/RNE wheel sets Rope accessories RS wheel block systems Single-girder overhead travelling crane with rolled profile girder (ELKE) ingle-girder overhead travelling cranes with rope hoists (EKDR) Slewing cranes and jibs Suspension cranes (EDKE) Trolleys for chain hoists
Exports :
Products :	Overhead Cranes and Trader of Spare Parts
Countries :	Asian Countries
Imports :
Products :	Raw Material
Countries :	Germany
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

PRODUCTION STATUS (As on 31.03.2009)

Particulars	Unit	Actual Production
EOT Process Cranes	Nos.	3
EOT Cranes	Nos.	528
JIB Cranes	Nos.	94537
KBK Cranes	Nos.	343
Chain Hoist	Nos.	357
Drives / Motors	Nos.	172
Others	Nos.	341

GENERAL INFORMATION

Customers :

Corporate

No. of Employees :

300 (Office-200, Factory-100)

Bankers :

¨ ABN Amro Bank, 327, M. G. Road, Pune – 411001, Maharashtra, India

¨ ICICI Bank, M.G. Road, Pune, Maharashtra, India.

¨ Deutche Bank, M.G. Road, Pune, Maharashtra, India.

Facilities :

Unsecured Loans	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
Overdraft From Banks (Amount payable within one Year Rs.104.360 millions (Secured by corporate Guarantee executed by Demag Cranes AG in favour of Bayerische Hypo-und Vereinsbank AG, London has provided a Stand By Letter of Credit to ABN Amro Bank, N. V.)	104.360	0.000
Total	104.360	0.000

Banking Relations :
Auditors :
Name :	Deloitte Haskins and Sells, Chartered Accountants
Address :	706l, ‘B’ wing, 7^th Floor, ICC Trade Tower, International Convention Centre Senapati Bapat Road, Pune-411016, Maharashtra, India
Tel No.:	91-20-66244600
Fax No.:	91-20-66244605
Holding Company :	Demag Cranes and Components GmbH, Germany
Fellow Subsidiaries :	v Donati Solievamenti Srl- Italy v Gottwald Port Technologies – GmbH v Demag Cranes and Components – United Arab Emirates v Demag Cranes and Components ZA – South Africa v Demag Cranes and Components Spa, Italy v Demag Cranes and Components – France v Demag Cranes and Components –Brazil v Demag Cranes and Components –Shanghai v Kranservice Rheinberg GmbH

CAPITAL STRUCTURE

As on

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 millions

NOTE:

Of the above 300000 shares of Rs. 100 each are held by Demag Cranes and Components GmbH, (Formerly known as Mannesmann Dematic AG, Germany) and it nominees.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		30.000	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		187.764	177.045	121.443
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		217.764	207.045	151.443
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		104.360	0.000	0.000
TOTAL BORROWING		104.360	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		322.124	207.045	151.443
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		130.009	37.757	25.145
Capital work-in-progress		2.158	4.947	0.172
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		3.682	3.950	7.052
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	266.384	123.850	29.525
	Sundry Debtors	655.108	273.948	175.186
	Cash & Bank Balances	26.256	196.420	110.025
	Other Current Assets	0.000	0.916	0.251
	Loans & Advances	156.889	172.414	98.596
Total Current Assets		1104.637	767.548	413.583
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	819.604	378.421	127.999
	Other Current Liabilities	71.259	108.187	72.554
	Provisions	27.499	120.549	93.956
Total Current Liabilities		918.362	607.157	294.509
Net Current Assets		186.275	160.391	119.074
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		322.124	207.045	151.443

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008		31.03.2007
	SALES
		Income	1701.906	1190.365		684.490
		Other Income	14.799	18.992		11.477
		TOTAL (A)	1716.705	1209.357		695.967
Less	EXPENSES
		Manufacturing Expenses		166.917		115.845
		Cost of Material	1680.828	866.796		455.298
		Employees Remuneration and benefits		76.800		44.137
		TOTAL (B)	1680.828	1110.513		615.280
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	98.844		80.687
Less	FINANCIAL EXPENSES (D)		NA	4.761		4.738
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		35.877	94.083		75.949
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.941	4.981		3.276
	PROFIT BEFORE TAX (E-F) (G)		21.936	89.102		72.673
Less	TAX (H)		11.217	33.501		25.076
	PROFIT AFTER TAX (G-H) (I)		10.719	55.601		47.597
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		177.044	121.443		73.845
	BALANCE CARRIED TO THE B/S		187.763	177.044		121.443
	EARNINGS IN FOREIGN CURRENCY
		Commission Earnings	9.455	1.599
		Service Charges	28.064	10.139
		Reimbursement Expenses	15.728	7.184		28.413
		Export Earnings	75.517	7.184
	TOTAL EARNINGS		128.764	26.106		28.413
	IMPORTS
		Raw Materials	847.973	641.121		296.592
		Capital Goods	1.292	2.023		0.000
	TOTAL IMPORTS		849.265	643.144		296.592
	Earnings Per Share (Rs.)		35.73	185.34		158.66
Particulars					31.03.2010
Sales Turnover					1250.000 (Due to recession)

Expected Sales (2010-2011) : Rs.2000.000 millions

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	0.62	4.60	6.83
Net Profit Margin (PBT/Sales)	(%)	1.29	7.49	10.61
Return on Total Assets (PBT/Total Assets}	(%)	1.08	11.06	16.18
Return on Investment (ROI) (PBT/Networth)		0.10	0.43	0.47
Debt Equity Ratio (Total Liability/Networth)		4.70	2.93	1.94
Current Ratio (Current Asset/Current Liability)		1.20	1.26	1.40

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)	31.03.2007 (Rs. in millions)
Sundry Creditors
Total outstanding dues of Micro Enterprises and Small Enterprises	0.000	0.000	0.000
Total outstanding dues of creditors other than Micro Enterprises and Small Enterprises	819.604	378.421	127.999

BACKGROUND

Subject was incorporated in India on 16^th July 1997 to provide and support Indian customers with state-of-the-art material handling solutions. Incorporated as Mannesmann Dematic (India) Private Limited, the Company was renamed as Subject in December 2001 to reflect a closer synergy between its brand and its core activities, products and competencies. The Company is a closely held company with 300,000 shares being held by Demag Cranes and Components GmbH and its nominees.

The accompanying financial statements reflect the results of the activities undertaken by the Company during the year ended March 31, 2009.

Operations

The Company has achieved an increase in sales turnover by 43 %. Profit after Tax was lower at Rs.10.719 millions as compared to Rs.55.601 during the last year. The company has increased manufacturing capacity by taking over another unit on lease. It has also started local manufacturing of KBK type of crane. The company is hopeful that with the expansion plans and shifting the base to new location, it will be able to achieve the higher margins and profitability in the coming years.

Particular for creation or modification of charges

Name of the company	DEMAG CRANES AND COMPONENETS INDIA PRIVATE LIMITED
Presented By	ABN AMRO BANK N.V.
1) Date and description of instrument creating the change	Facility cum Hypothecation agreement dated 19.10.1998
2) Amount secured by the charge/amount owing on the securities of charge	Rs.30.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of the current assets of the borrower namely, stocks of raw materials, stocks in process, semi finished and finished goods, stores and spares not relating to plant and machinery, bills receivables and book debts and all other movables, both present and future whether now lying lose or in cases or which are now ling r stored in or about or shall hereinafter from time to Time during the continuance of the security of these present be brought into or upon or be stored or be in or about of the Borrower’s factories, premises and godowns situated tat Pune in the state of Maharashtra or wherever else the same may be or held in by any party to the order or disposition of the borrower or in the course of transit or on in high seas or an order or deliver, in the course of transit or on in high seas or an order or delivery, however and where ever in the possession of the borrower and either by way of substitution or addition.
4) Gist of the terms and conditions and extent and operation of the charge.	First charge on all the borrower’s current assets to secure the credit facilities to the extent of granted to the company. Cash credit : CC/OD/Bills Discounted Prime lending rate (currently 16% p.a.) Letters of Credit/ Guarantees : L/Cs – as per standard rates Guarantees -1% p.a.
5) Name and Address and description of the person entitled to the charge.	ABN Amro Bank 327, M G Road Pune-411001
6) Date and brief description of instrument modifying the charge	Supplemental facility –cum-hypothecation agreement dated 01.11.2001
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Fund based limits remain unchanged at Rs.10.000 millions And Non fund based limit increased from Rs.20.000 millions to Rs.30.000 millions

Trade References:

· Tata Motors Limited

FIXED ASSETS

Ø Leasehold improvements

Ø Plant and machinery

Ø Furniture’s and fixtures

Ø Computer

Ø Office equipment

Ø Vehicles

AS PER WEBSITE

Profile:

With the comprehensive product range of its two Cranes and Handling Technology/Drives business units, Demag Cranes and Components provides special solutions in various industries for travel applications, ergonomics and load handling at the workplace and material flow in production and storage. The third business unit is dedicated to Service and ensures the economical use of Demag products with its complete range of services, and thus also lasting customer satisfaction. Complete control of their own products and understanding the customer's processes, speaking the customer's language and finding the best solutions together, are the commitment resulting from a company history going back more than 180 years.

Cranes and components expertise

History is based on facts and history results in change. The history of subject began in 1819 with the establishment of Mechanische Werkstätten Harkort and Company in Wetter an der Ruhr. The company already started manufacturing overhead travelling cranes in 1840, concentrating on the production of cranes and crane components at an early date, also including hoist units with an electric drive since 1910.
Today, subject is a global player with locations in Germany and subsidiaries and many partner agencies all over the world. With the product range of its Drives, Handling Technology and Cranes business units, subject provides material flow, logistics and industrial drive solutions for companies of all sizes - from small workshops to major industrial corporations.

History

1819	Establishment of Mechanische Werkstätten Harkort and Company in Wetter an der Ruhr.
1840	Start of overhead travelling crane production.
1910	Start of production of hoists with electric motors.
1939	Establishment of Demag Zug GmbH in Wetter.
1953	Start of production of mobile cranes in Wetter (until 1969).
1961	Establishment of Bad Bergzabern plant for the productiion of electric chain hoists and electrical components.
1962	Take-over of electric motor manufacturer Conz in Hamburg. Demag builds the first high-bay warehouse in the world for Bertelsmann in Gütersloh.
1963	Start of series crane production.
1970	Establishment of Demag Systemtechnik GmbH in Hagen.
1983	Establishment of the Uslar plant for production of brake motors.
1988	Participation in Mechanical Handling Engineering Limited with plants in Indonesia, Malaysia, Philippines, Singapore and Thailand.
1990	Start of crane production at the Luisenthal plant in Thuringia.
1991	Acquisition of Hans Fehr AG in Dietlikon, Switzerland and Rapistan Corp. in Grand Rapids, USA.
1992	Re-organisation of the Demag group Disincorporation of Mannesmann Demag Fördertechnik AG, Wetter
1994	Establishment of Mannesmann Dematic Company Limited, Shanghai.
1996	Take-over of the Mobile Cranes Division of Mannesmann Demag AG, Duisburg. Acquisition of Kranservice Rheinberg. Establishment of Mannesmann Dematic spol. s r.o., Slaný.
1997	Company name changed to Mannesmann Dematic AG, Wetter. Establishment of Mannesmann Dematic (India) Private Limited, Pune.
1998	Establishment of Mannesmann Dematic (Middle East), Dubai. Complete take-over of Mannesmann Dematic Colby Pty. Limited, Smithfield/Australia. Acquisition of Protomark Corp., Clinton Township, Michigan/USA. Acquisition of the Postal Automation Division of Alcatel, France. Acquisition of Donati Sollevamenti, Daverio, Italy.
1999	Acquisition of Zasche GmbH, Nördlingen.
2000	Mannesmann Dematic becomes part of the Atecs Mannesmann AG corporate group. Acquisition of Atecs Mannesmann by Siemens AG Disincorporation of Demag Cranes and Components GmbH in head office Wetter.
2001	Atecs Mannesmann AG is taken over by Siemens AG and Bosch GmbH Establishment of Demag Cranes and Components GmbH
2002	Demag Cranes and Components is taken over by a Joint Venture between Siemens (19%) and Kohlberg Kravis Roberts (81%)
2006	Consolidation of Demag Cranes and Components GmbH and Gottwald Port Technology GmbH under Demag Cranes AG that successfully goes public at the end of June.

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.45.31
UK Pound	1	Rs.70.26
Euro	1	Rs.59.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.