MIRA INFORM REPORT

Report Date :

12.07.2011

IDENTIFICATION DETAILS

Name :	COASTAL GUJARAT POWER LIMITED
Registered Office :	34, Sant Tukaram Marg, Carnac Bunder, Mumbai-400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.02.2006
Com. Reg. No.:	11-182213
Capital Investment / Paid-up Capital :	Rs.17340.000 millions
CIN No.: [Company Identification No.]	U40102MH2006PLC182213
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Setting up of Power Plants.
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 70470000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of Tata Group Company. It is setting up a Prestigious Power Project in Gujarat. 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 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.

INFORMATION DENIED BY

Name :	Mr. S. Karmarkar
Designation :	Finance Head
Tel. No.:	91-22-67171644
Date :	11.07.2011

LOCATIONS

Registered Office :	34, Sant Tukaram Marg, Carnac Bunder, Mumbai-400009, Maharashtra
Tel. No.:	91-22-67172911 / 67171644
Fax No.:	91-22-66100863 / 67171649
E-Mail :	rameshsubramanyam@tatapower.com skarmarkar@tatapower.com
Corporate office :	148 Lt Gen J Bhonsle Marg Nariman Point, Mumbai – 400 021, Maharashtra

DIRECTORS

As on : 26.07.2010

Name :	Mr. Ramkrishnan R Sowmyan
Designation :	Director
Address :	A-701, NCPA Apartments, A Block, Nariman Point, Mumbai-400021, Maharashtra, India
Date of Birth/Age :	19.02.1949
Date of Appointment :	22.04.2007
Name :	Mr. Anil Kumar D Sardana
Designation :	Director
Address :	15, Gagan Vihar, New Delhi-110051, India
Date of Birth/Age :	16.04.1959
Date of Appointment :	22.04.2007
Name :	Mr. Amulya S Charan
Designation :	Director
Address :	Om Vikas, 1701/1801 B, Walkeshwar Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	21-09-1948
Date of Appointment :	22.04.2007
Name :	Mr. Prasad R Menon
Designation :	Director
Address :	50-F, Lovedale, Peddar Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	23.01.1946
Date of Appointment :	22.04.2007
Name :	Mr. Alok Ramdev Kanagat
Designation :	Director
Address :	501/502, 67 A Pochkhanwalla Marg, Worli, Mumbai-400025, Maharashtra, India.
Date of Birth/Age :	18.11.1951
Date of Appointment :	05.05.2008

KEY EXECUTIVES

Name :	Mr. Ramesh N Subramanyam
Designation :	Secretary
Address :	Twin Star Jupiter Co-Operate Society Limited, 16^th Floor, Flat No. 162, 41 Cuffe Parade, Mumbai-400005, Maharashtra, India
Date of Birth/Age :	27.06.1969
Date of Appointment :	26.07.2007
Name :	Mr. Vijay Gupta
Designation :	Head Engineering
Date of Birth/Age :	51 Years
Qualification :	BE(Electrical)
Experience :	26 Years
Date of Appointment :	02.04.2007
Name :	Mr. Ramesh N Subramanyam
Designation :	CFP and CS
Date of Birth/Age :	39 Years
Qualification :	B.Com, ICWA, CPA, ACS
Experience :	15 Years
Date of Appointment :	25.06.2007
Name :	Mr. Milind V Deshmukh
Designation :	Head Construction
Date of Birth/Age :	50 Years
Qualification :	BE
Experience :	28 Years
Date of Appointment :	16.07.2007
Name :	Mr. Ravinarayan N Sahoo
Designation :	Group Head Boiler
Date of Birth/Age :	42 Years
Qualification :	BSC, PGD, AIMA
Experience :	20 Years
Date of Appointment :	01.08.2007
Name :	Mr. Vinay Mittal
Designation :	Group Head Project Mag
Date of Birth/Age :	50 Years
Qualification :	B. Tech(Civil)
Experience :	26 Years
Date of Appointment :	17.08.2007
Name :	Mr. Partho P Mukhopadhyay
Designation :	Head-HR
Date of Birth/Age :	47 Years
Qualification :	PGDBM
Experience :	21 Years
Date of Appointment :	01.11.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 26.07.2010

Names of Shareholders	No. of Shares
The Tata Power Company Limited, Mumbai	1733999994
The Tata Power Company Limited With Mr. A S Bapat, Mumbai	1
The Tata Power Company Limited With Mr. S Charan, Mumbai	1
The Tata Power Company Limited With Mr. H M Mistry, Mumbai	1
The Tata Power Company Limited With Mr. B J Shroff, Mumbai	1
The Tata Power Company Limited With Mr. S Ramakrishna, Mumbai	1
The Tata Power Company Limited With Mr. Sanjay Dubey, Mumbai	1
Total	1734000000

As on : 26.07.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.00
Bodies corporate	100.00
Directors or relatives of Directors	0.00
Other top fifty shareholders	0.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Setting up of Power Plants.
Terms :
Selling :	Cash , Credit (30 / 60 / 90 days)
Purchasing :	Cash , Credit (30 / 60 / 90 days)

GENERAL INFORMATION

Customers :

• End Users
• OEM’s

No. of Employees :

350 (Approximately)

Bankers :

State Bank of India, SBU, 3^rd Floor, State Bank Bhavan, Madam Camma Road, Mumbai-400021, Maharashtra, India

Facilities :

Secured Loans *	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loans from Banks	7154.800	5756.400
Term Loans from Financial institutions	4635.300	3729.000
Term Loans from Foreign Banks **	17561.748	4405.717
Term Loans from Foreign Lenders **	13658.757	3437.228
Total	43010.605	17328.345
Unsecured Loans
Short Term Borrowing From Companies (From Holding Company and repayable within one Year)	1720.000	0.000

Note : * Secured Against all present and future movable and immovable properties

** Denominated in Foreign Currency

Banking Relations :

--

Auditors :

Name :

Deloitte Haskins And Sells - Chartered Accountant

Address :

12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai-400018, Maharashtra, India.

Tel No.:

91-22-6667 9000

Fax No.:

91-22-6667 9025

Subsidiary :

Energy Eastern Pte. Limited (Effective 31.01.2008), Singapore

Holding Company :

The Tata Power Company Limited (L28920MH1919PLC000567)

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4250000000	Equity Shares	Rs.10/- each	Rs.42500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1734000000	Equity Shares	Rs.10/- each	Rs.17340.000 millions

Notes:-

(The company is a wholly – owned subsidiary of the Tata Power Company Limited)

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		17340.000	8180.000	4000.000
2] Advance Towards Equity		520.000	1330.000	2000.500
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(242.491)	0.000	0.000
NETWORTH		17617.509	9510.000	6000.500
LOAN FUNDS
1] Secured Loans		43010.605	17328.346	0.000
2] Unsecured Loans		1720.000	0.000	584.700
TOTAL BORROWING		44730.605	17328.346	584.700
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		62348.114	26838.346	6585.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2579.203	793.992	148.570
Capital work-in-progress		69274.781	30188.535	6076.741
INVESTMENT		28.436	181.934	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	968.995	157.647	267.959
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2694.458	1790.304	313.907
Total Current Assets		3663.453	1947.951	581.865
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	373.783	119.595	17.818
	Sundry Creditors	12774.632	6127.285	201.525
	Provisions	49.416	27.257	2.705
Total Current Liabilities		13197.831	6274.137	222.048
Net Current Assets		(9534.378)	[4326.186]	359.818
MISCELLANEOUS EXPENSES		0.072	0.071	0.071
TOTAL		62348.114	26838.346	6585.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010
	SALES
		Income	0.000
		Other Income	0.000
		TOTAL (A)	0.000
Less	EXPENSES
		Payments to and provision for employees	14.653
		Administrative and other Expenses	206.825
		TOTAL (B)	221.478
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		221.478
Less	FINANCIAL EXPENSES (D)		14.531
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(236.009)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000
	PROFIT BEFORE TAX (E-F) (G)		(236.009)
Less	TAX (I)		6.482
	PROFIT AFTER TAX (G-I) (J)		(242.491)
	IMPORTS
		C.I.F. Value of Import	28397.968
	TOTAL IMPORTS		28397.968
	Earnings Per Share (Rs.)		(0.24)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Return on Total Assets (PBT/Total Assets}	(%)	(0.03)	--	--
Return on Investment (ROI) (PBT/Networth)		(0.01)	--	--
Debt Equity Ratio (Total Liability/Networth)		3.28	2.48	0.13
Current Ratio (Current Asset/Current Liability)		0.27	0.31	2.62

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
- Micro and Small Enterprises	0.000	0.000
- Others	12774.632	6127.285
Total	12774.632	6127.285	201.525

Financial Performance:

During the year, the Company continued the construction phase of the 4000 MW Ultra Mega Power Project at Mundra, Gujarat. They are pleased to report that the project is progressing well and is on course to begin commercial operations of the first unit during next financial year. Pending commencement of operations, as required under Indian Accounting Standards and norms, the Company has prepared a Profit and Loss account for the first time for the year ended 31stMarch, 2010. Consequently income and expenses upto 31^st March,2009 that were classified under “Incidental expenditure during construction period (pending allocation)” have been allocated to capital or revenue expenditure. There are no corresponding figures for the previous year.

CAPITAL EXPENDITURE:

The expenses towards fixed assets including land (net) were Rs. 2579.000 millions. Capital works in progress including capital advances and incidental expenses were Rs. 69274.800 millions. The incidental expenses during construction period pending allocation to fixed assets were Rs. 3979.600 millions of which Rs. 3737.100 millions have been adjusted in capital work in progress and Rs. 242.500 millions has been charged to profit and loss account.

OPERATIONAL HIGHLIGHTS:

The Mundra project being implemented by the Company is progressing well as per schedule. The cumulative progress till end of March 2010 was approximately 52% with total commitments of Rs. 144000.000 millions, which is 85% of total project cost and a total actual expenditure of Rs. 72100.000 millions. Out of the total revised requirement of land for the project, possession of 97% area has been taken by the Company including possession of 100% of private land. The completion of required steps for additional requirements is under progress. The Company has already obtained necessary clearances from Ministry of Environment and Forests.

SUBSIDIARY COMPANY:

Energy Eastern Pte. Limited a wholly owned subsidiary of the Company continues to work on completing the arrangements for transportation of Coal. The Company has invested USD 0.59 Million till 31st March, 2010 to finance the shipping related expenditure for the Mundra Project.

FINANCE:

The Company has drawn Rs. 11790.100 millions of Rupee loans and 6913.700 million of foreign exchange loans as on 31stMarch, 2010. This is approx. 31% of overall loans. CRISIL has assigned a “A+(stable)” rating to the Company's long term rupee denominated Bank loans aggregating INR 5850.000 millions, which shows a “Stable” outlook on the project.

Background:

Coastal Gujarat Power Limited (CGPL) was incorporated on February 10, 2006 as a wholly owned subsidiary of Power Finance Corporation Limited and was a special purpose vehicle formed to facilitate the acquisition of land and complete preliminary formalities including required statutory clearances for establishing the 4000 MW Ultra Mega Power Project (UMPP) at Mundra in the state of Gujarat which was awarded through the competitive bidding process. Under the terms of the competitive bidding for the project the successful bidder was to acquire ownership of CGPL. The entire shareholding of Power Finance Corporation Limited was acquired by The Tata Power Company Limited on April 22, 2007 vide a Share Purchase Agreement. Consequent to which CGPL became a wholly owned subsidiary of The Tata Power Company Limited. During the year the Company has continued the construction activities at its project site at Mundra. Commercial operations are expected to commence partially in financial year 2011-2012. The Company has prepared a profit and loss account for the first time for the year ended March 31, 2010. Consequently income and expenses earned/incurred up to March 31, 2009 that were credited/debited to “Incidental Expenditure during Construction Period (pending allocation)” have been allocated to capital or revenue expenditure. There are no corresponding figures for the previous year.

change of address:

The address of registered office has been changed from C/O Tata Services Limited, Jevan Bharti, Tower No. 1, 10^th Floor, 124 Connaught Place, New Delhi, India, to present w.e.f. 29.04.2008.

Form 8:

This form is for	Creation of charge
Corporate identity number of the company	U40102MH2006PLC182213
Name of the company	Coastal Gujarat Power Limited
Address of the registered office or of the principal place of business in India of the company	34, Sant Tukaram Marg, Carnac Bunder, Mumbai-400009, Maharashtra, India
Type of charge	· Book Debts · Movable Property · Floating Charge · Uncalled Share Capital · Immovable Property · Any interest in Immovable Property · Goodwill · Patent, License under a patent · Trademark · Copyright or license under a copyright
Particular of charge holder	State Bank Of India Project Finance SBU, 3^rd Floor, State Bank Bhavan, Madam Cama Road, Mumbai-400021, Maharashtra, India E-mail : sanjeev.singhal@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Indenture of Mortgage dated 18.09.2008 executed by the Costal Gujarat Power Limited (in its capacity as the Borrower) in favour of State Bank Of India (in its capacity as Security Trustee for the benefit of Senior Lenders)
Date of instrument Creating the charge	18.09.2008
Amount secured by the charge	Rs.127564.000 Millions

Corporate identity number of the company	U40102MH2006PLC182213
Name of the company	Coastal Gujarat Power Limited
Address of the registered office or of the principal place of business in India of the company	34, Sant Tukaram Marg, Carnac Bunder, Mumbai-400009, Maharashtra, India
This form is for	Creation of charge
Type of charge	Uncalled Share Capital Immovable property Any interest in immovable Property Book debts Movable property (not being pledge) Floating charge Others Goodwill Patents, license under a patent Trademark Copyright or license under a copyright
Particular of charge holder	State Bank of India, SBU, 3^rd Floor, State Bank Bhavan, Madam Camma Road, Mumbai-400021, Maharashtra, India
Nature of instrument creating charge	Indenture of mortgage dated 30.03.2010 executed by Coastal Gujarat Power Limited (in its capacity as the borrower) in favour of State Bank of India (in its capacity as security trustee for the benefit of the secured parties)
Date of instrument Creating the charge	30/03/2010
Amount secured by the charge	Rs. 127564.000 millions

Fixed Assets:

· Freehold Land

· Buildings

· Plant and Machinery

· Furniture, Fixtures and Office Equipments

· Transmission Lines, Street Lights, etc.

· Motor Vehicles

· Roads

WEBSITE DETAILS

Subject was incorporated on 10th Feb. 2006, as a special purpose vehicle (SPV) to implement the Mundra Ultra Mega Power Project. The Mundra UMPP was awarded to Tata Power and as per the share purchase agreement Tata Power acquired CGPL on 22 April 2007.

The project will have five units of 800 MW each, generating a total of 4,000 MW using supercritical technology and 40,000 MT /day imported coal.

Power will be evacuated through six 400kV lines, to be installed by Power Grid, to ultimately benefit the States of Gujarat, Maharastra, Punjab, Haryana and Rajasthan

Origin

The Government of India (GOI) launched the “Power for All by 2012” initiative in 2005. To stimulate the required capacity addition, GOI launched an initiative for facilitating the development of coal based Ultra Mega Power Projects (UMPP) each of minimum 4,000 MW capacity. UMPPs will provide cheaper power through economy of scale and use super critical technology.

UMPPs are to be implemented through public private partnerships on build-own-operate (BOO) basis. The first UMPP of India, Mundra UMPP was awarded to Tata Power through a competitive tariff based bidding process.

Location

The 1,200 hectare site is located in coastal area, south of Tunda village in Mundra taluka, Kutch district of Gujarat. The site is well connected by road, rail, air and sea. 

Following are the salient features of the project location:

• Nearest Highways:   SH-6 (6 Kms) & NH-8A (15 Kms),
• Nearest Seaport:  Mundra ~ 25 Kms
• Nearest Rail Head: Adipur ~ 85 Kms,
• Nearest Airports: Bhuj & Kandla ~75 Kms

Implementation Status

The project has achieved Financial Closure and the Financing structure has won the “Asia Pacific Power Deal of the year” award from the prestigious Project Finance Magazine.

Engineering, procurement and construction activities are in full swing. Plant area land is in possession and Site Offices, Warehouses, Field Hostels are operational. All major orders are awarded and deliveries have commenced.

Construction work is progressing on fast track, ahead of schedule. Significant progress is achieved in civil and structural areas.

Safety has been accorded top priority at project site and safety drills, workers training and visitor’s safety induction are held regularly. About 2,500 workers are working and Site and over 4.0 million safe man-hours clocked. 

Chronology

• LOI received from MOP: 28^th Dec 2006
• Share Purchase agreement with PFC: 22^nd April 2007
• Power Purchase Agreement with procurers: 22^nd April 2007
• Notice to Proceed to Doosan & Toshiba: 01^st Sept 2007

Corporate Social Responsibility (CSR)

Subject is involved in wide variety of community development projects in and around project site. These programs cover many areas, from health and education to livelihoods, women-children welfare and much more. Locals needs are identified thru’ direct communication and surveys. For seamless working with community, CSR office is established in the heart of the village, outside project boundary.

Following are some programs which CGPL has taken up:

• Income generation / livelihood restoration - Self Help Groups (SHG), handcraft training and trading.
• Social infrastructure – construction and repairs of roads and CPRs (Community Property Resources)
• Health, hygene, sanitation and immunization programs
• HIV/ AIDS awareness and capacity building programs
• Camel /cattle vaccination vetenery camps
• Vocational training thru’ iLead (NGO)  

Power Procurers

Following seven power distribution companies of five States i.e. Gujarat, Maharastra, Punjab, Haryana and Rajasthan:

• Gujarat Urja Vikas Nigam Limited.
• Maharastra State Electricity Distribution Company Limited.
• Ajmer Vidyut Vitaran Nigam Limited.
• Jaipur Vidyut Vitaran Nigam Limited.
• Jodhpur Vidyut Vitaran Nigam Limited.
• Punjab State Electricity Board
• Haryana Power Generation Corporation Limited.

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 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.44.37
UK Pound	1	Rs.70.84
Euro	1	Rs.62.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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		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	-

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