MIRA INFORM REPORT

Report Date :

14.07.2011

IDENTIFICATION DETAILS

Name :	CETEX PETROCHEMICALS LIMITED
Registered Office :	Manali Industrial Area, Chennai – 600 068, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.03.2003
Com. Reg. No.:	18-50501
Capital Investment / Paid-up Capital :	Rs.100.000 millions
CIN No.: [Company Identification No.]	U24119TN2003PLC050501
TAN No.: [Tax Deduction & Collection Account No.]	CHEC05298G
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of Methyl Ethyl Ketone (MEK) and Secondary Butyl Alcohol (SBA).
No. of Employees :	130 (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 630000
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

LOCATIONS

Registered Office/Factory :	Manali Industrial Area, Chennai – 600 068, Tamilnadu, India
Tel. No.:	91-44-25941358 / 59 / 24464818 / 89
Fax No.:	91-44-25941835 / 25941358
E-Mail :	gsekar@cetexpetro.com nascs@cetexpetro.com cetexho@cetexpetro.com info@geniconsolutions.com
Website :	www.cetexpetro.com
Area :	52 Acer Fact.
Location :	Owned
Corporate Office :	Old No. T 11/2, New No. 30, Coastal Road, Besant Nagar, Chennai – 600090, Tamilnadu
Tel. No.:	91-44-24464818 / 819
Fax No.:	91-44-24464800
E-Mail :	cetexho@cetexpetro.com
Location :	Rented
Branch Office :	Located at: Mumbai Delhi

DIRECTORS

As On 28.09.2010

Name :	Mr. Shanmugam Pattu
Designation :	Whole Time Director
Address :	FF2/FF3, CASA XS Apartments, 43/2, Manapakkam Road, Chennai – 600 116, Tamilnadu, India
Date of Birth/Age :	10.02.1949
Date of Appointment :	22.04.2007
Name :	Mr. Sivagnanam Govindasamy Ilahanai
Designation :	Managing Director
Address :	4, Almol Surthi Apartments, 6 Anthu Street, Santhome, Chennai – 600 004, Tamilnadu, India
Date of Birth/Age :	24.06.1954
Date of Appointment :	22.04.2007
Name :	Mr. P. N. Nagarajan
Designation :	Director
Address :	69, Park Link Road, Vayupuri, Secunderabad – 500 094, Andhra Pradesh, India
Date of Birth/Age :	09.04.1946
Date of Appointment :	20.05.2004
Name :	Mr. Virupakshapuram Rajagopal Deenadayalu
Designation :	Director
Address :	E 168, III Main Road, Besant Nagar, Chennai – 600090, Tamilnadu, India
Date of Birth/Age :	24.05.1932
Date of Appointment :	10.09.2008
DIN No. :	00020898

KEY EXECUTIVES

Name :	Mr. Srinivasan Arumugam
Designation :	Secretary
Address :	19 Abith Nagar, Choolaimedu, Chennai – 600094, Tamilnadu, India
Date of Birth/Age :	10.01.1969
Date of Appointment :	25.07.2007
Pan No. :	ARNPS3916R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 28.09.2010

Names of Shareholders	No. of Shares
Varsha Pattu	227516
S. Ilahanai	2543053
S. Pattu	2413053
Sujatha Ilahanai	487516
Nalini Pattu	316875
Nisha Pattu	146250
Sethumani Shanmugam	65000
Yazhini Ilahanai	130000
S. Sulochana	130000
S. Nambi	40625
A.J. Attanathi	16
S. Gowthaman	16
S. Somasundaram	8
Bavan Jacob	8
S. Mohan	8
S. Narayanaswamy	16
R. Kannan	16
V.G. Manivannan	8
R.N. Panda	8
G. Sekar	8
Total	6500000

Names of Preference Shareholders	No. of Shares
Sivakumar Chokalingam	136000
S. Pattu	278500
Nalini Pattu	278500
Varsha Pattu	528500
Nisha Pattu	528500
S. Ilahanai	312500
Sujatha Ilahanai	312500
Shalini Ilahanai	312500
Yazhini Ilahanai	312500
Thooyavan	250000
Aravazhi	250000
Total	3500000

As On 28.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Methyl Ethyl Ketone (MEK) and Secondary Butyl Alcohol (SBA).
Products :	Indian Trade Classification (ITC) Code	Description of the product or service
	29141200	Methyl Ethyl Ketone
	29051910	Secondary Butyl Alcohal
Exports :
Countries :	Sri Lanka Singapore
Imports :
Products :	MEK Products
Countries :	Singapore
Terms :
Selling :	Credit – 30 days
Purchasing :	L/C and Credit – 90 days

GENERAL INFORMATION

Customers :

Manufacturers

No. of Employees :

130 (Approximately)

Bankers :

• State Bank of India, Commercial Branch (Chennai), P. B. No. 1282, 232, NSC Bose Road, Chennai – 600 001, Tamil Nadu, India

• UCO Bank, Chennai Main Branch, No. 328, Thambu Chetty Street, Chennai – 600 001, Tamil Nadu, India

• State Bank of India – Commercial Branch, No. 232, N S C Bose Road, Chennai – 600001, Tamilnadu, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Banks:-
a. State Bank of India
(i) Cash Credit	234.700	154.000
(ii) Buyers' Credit (both secured by hypothecation of inventory, book debts and other current assets, extension of charge on fixed assets and guaranteed by two Directors)	64.387	126.997
(iii) Term Loan (secured by hypothecation of machinery and other fixed assets, extension of charge on current assets and guaranteed by two Directors)	175.085	183.493
HDFC Bank Limited (Secured by hypothecation of vehicles)	1.468	1.051
Total	475.640	465.541

Unsecured loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Short term loans and advances
From Bank	1.754	5.410
From others	8.238	10.923
Total	9.992	16.333

Banking Relations :

--

Auditors :

Name :

Padmanabhan Ramani and Ramanujam

Chartered Accountants

Address :

1F, Arudhra, New NO. 15, Habibullah Road, T. Nagar, Chennai – 600017, Tamilnadu, India

Tel. No.:

91-44-45502181

Fax No.:

91-44-45502183

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8500000	Equity Shares	Rs.10/- Each	Rs.85.000 millions
3500000	12% Cumulative Redeemable Preference Shares	Rs.10/- Each	Rs.35.000 millions
	Total		Rs.120.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6500000	Equity Shares (Of the above 2500000 shares are allotted as fully paid up by way of bonus shares)	Rs.10/- Each	Rs.65.000 millions
3500000	12% Cumulative Redeemable Preference Shares	Rs.10/- Each	Rs.35.000 millions
	Total		Rs.100.000 millions

As On 28.09.2010

Authorised Capital : Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.120.000 Millions

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		100.000	100.000	75.000
2] Share Application Money		18.413	0.000	0.000
3] Reserves & Surplus		40.709	38.106	56.940
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		159.122	138.106	131.940
LOAN FUNDS
1] Secured Loans		475.640	465.541	369.950
2] Unsecured Loans		9.992	16.333	29.026
TOTAL BORROWING		485.632	481.874	398.976
DEFERRED TAX LIABILITIES		27.572	25.934	16.133
TOTAL		672.326	645.914	547.049
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		423.796	447.989	292.413
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	131.451	55.287	94.845
	Sundry Debtors	91.325	115.230	156.640
	Cash & Bank Balances	18.237	19.509	16.801
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	130.754	112.841	122.431
Total Current Assets		371.767	302.867	390.717
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	100.338	78.528	112.637
	Other Current Liabilities	22.899	26.414	25.072
	Provisions	0.000	0.000	0.000
Total Current Liabilities		123.237	104.942	137.709
Net Current Assets		248.530	197.925	253.008
MISCELLANEOUS EXPENSES		0.000	0.000	1.628
TOTAL		672.326	645.914	547.049

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	562.305	911.425	821.582
		Other Income	12.977	4.326	16.281
		TOTAL (A)	575.282	915.751	837.863
Less	EXPENSES
		Material Cost and Other Direct Expenses	403.943	687.796	690.264
		Employees’ Emoluments and Benefits	43.040	43.756	38.871
		Sales, Administration and Other Expenses	39.401	94.462	74.129
		Increase/(Decrease) in Finished Goods	0.910	20.351	(17.314)
		TOTAL (B)	487.294	846.365	785.950
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		87.988	69.386	51.913
Less	FINANCIAL EXPENSES (D)		58.683	36.509	21.608
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.305	32.877	30.305
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.025	16.050	7.622
	PROFIT BEFORE TAX (E-F) (G)		4.280	16.827	22.683
Less	TAX (H)		1.677	10.662	1.199
	PROFIT AFTER TAX (G-H) (I)		2.603	6.165	21.484
	Earnings Per Share (Rs.)		(0.35)	0.20	2.55

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.45	0.67	2.56
Net Profit Margin (PBT/Sales)	(%)	0.76	1.85	2.76
Return on Total Assets (PBT/Total Assets}	(%)	0.54	2.24	3.32
Return on Investment (ROI) (PBT/Networth)		0.03	0.12	0.17
Debt Equity Ratio (Total Liability/Networth)		3.83	4.25	4.07
Current Ratio (Current Asset/Current Liability)		3.02	2.89	2.84

LOCAL AGENCY FURTHER INFORMATION

Financial Results:

Sales for the year were Rs.562.300 millions (net) compared to Rs.911.400 millions in the last year. The financial results of the Company for the year

Management Discussion and Analysis:

The Indian economy's growth rate is declined to 6.73% in the year compared to 7.48% in the earlier year and the trend is reflected in the company as well during the year.

The Average Price realization of MEK and SBA which are the major products of the company has decreased to a great extent, although there product has been well recognized in the domestic and international market.

The Average cost of Butene which is the primary raw material for MEK has also decreased to some extent, but this decrease in raw material price could not help the company much due to deep decrease in International price of MEK.

The company is working out various ways and means to reduce the debt burden, since the interest costs affect the profitability of the company to a great extent.

The petrochemical sector reeled under the pressure of escalating crude oil prices, resulting in compressed bottom lines with more balanced predictions and the economic gloom slowly lifting, optimism is returning once again. The directors have hope in improving the overall performance in the coming years. -

The company has an adequate system of internal control commensurate with the size and nature of the Company's business. The various audits ensure adequacy of internal control systems, adherence to management policies besides ensuring compliance with laws and regulations of the land. Standard Operation Procedure (SOP), Safety / Technical Audit are a few of the systems in practice.

The success of an organization depends mainly on its human resources. To motivate the employees, various schemes such as Employee Suggestion Scheme, etc. are being implemented on a continuous basis and various other employee development programs are also being implemented to motivate the talents and to improve the efficacy of the organization.

Bankers Charges Report as per Registry:

Name of the company	CETEX PETROCHEMICALS LIMITED
Presented By	Mr. S. Ilanahai, Managing Director
1) Date and description of instrument creating the change	Deed of Hypothecation of Movable Plant and Machinery dated 22.04.2004 to secure a term loan Agreement relating to Term Loan dated 22.04.2004. Hypothecation and Book Debts to secure term loan and guarantee dated 22.04.2004 Agreement for extension of charge by way of hypothecation over current assets to secure non-fund based facilities dated 22.04.2004 Hypothecation of Plant and Machinery / goods as additional security dated 22.04.2004 Hypothecation of goods to secure Term Loan and Guarantee dated 22.04.2004
2) Amount secured by the charge/amount owing on the securities of charge	Term Loan of Rs. 50.000 millions Bank Guarantee for Export Performance (Non-fund based) Rs. 95.000 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 financial assistance sanctioned in S1. No.2 is secured by all stocks of raw materials, work-in-progress, finished goods comprising Methyl/ Ethyl Ketone and fine chemicals etc. and all other articles, goods, stocks and movable property of any kind whatsoever, which now or hereafter from time to time during the security shall be brought in to stored or be in or about the borrower’s premises, godown, open spaces, factories etc. or wherever else they may be including in particular such stocks stored or to be stored in the they may be including in particular such stocks stored or to be stored in the premises / warehouses / godowns situate at Manali, Chennai 600 068 besides the present and future book-debts, plant and machinery / good of the Company.
4) Gist of the terms and conditions and extent and operation of the charge.	The entire term loan of Rs. 50.000 millions is repayable in five years time including initial moratoriam of six months. The term loan carries an interest at the rate of 1.5% above the UCOBPLR subject to a minimum of 12.5% per annum with monthly rests. The Term Loan is repayable in a total 18 quarterly installments out of which 16 equal installments will be Rs. 2.500 millions and last two installments will be Rs.5.000 millions each. The non-fund based facility viz. Guarantee for export performance of Rs.95.000 millions is also secured by first charge created for the Term Loan of Rs. 50.000 millions.
5) Name and Address and description of the person entitled to the charge.	UCO Bank Chennai Main Branch, No. 328, Thambu Chetty Street, Chennai – 600 001, Tamil Nadu, India
6) Date and brief description of instrument modifying the charge	No instrument was created but on 12.07.2004 an equitable mortgage was created in favour of UCO Bank by deposit of title documents to the company’s immovable properties
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.	The charge already created in favour of UCO Bank is modified by including the company’s immovable prosperities situated at Chinnasekkandu Village and Sathangadu Village, Ambattur Taluk, Tiruvallur District, as and by way of extension of security for the aforesaid financial assistance sanctioned by UCO Bank on the existing terms and conditions.

This form is for	Modification of charge
Charge identification number of the modified	90291573
Corporate identity number of the company	U24119TN2003PLC050501
Name of the company	CETEX PETROCHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	Manali Industrial Area, Chennai – 600 068, Tamilnadu, India
Type of charge	Book Debts Movable Property Plant and machinery
Particular of charge holder	State Bank of India Commercial Branch (Chennai), P. B. No. 232, NSC Bose Road, Chennai – 600 001, Tamil Nadu, India E-mail : kpkchennai@yahoo.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of loan for increase in the overall limit Supplemental Agreement of Hypothecation of Goods and Assets for Increases in the Overall Limit Supplemental deed of guarantee for increase in overall limit Letter regarding the grant of individual limits within the overall limit
Date of instrument Creating the charge	17.02.2009
Amount secured by the charge	Rs.605.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As stipulated by the Bank from time to time. Terms of Repayment As stipulated by the Bank from time to time. Margin As stipulated by the Bank from time to time. Extent and Operation of the charge As per the agreements
Short particulars of the property charged	Hypothecation of company’s entire stocks of Raw Materials, Stock In Process, Stores and spares, Finished goods, Book Debts and other current assets of the Company such as book debts, outstanding monies, receivables. Hypothecation of all plant and machinery and other fixed assets of the company both present and future.
Date of latest modification prior to the present modification	05.07.2008
Particulars of the present modification	By the present modification, the overall credit facilities granted to the company hereby stands enhanced from Rs.410.000 millions to Rs.605.000 millions. all other terms and conditions of the original charge and subsequent modification remain unaltered.

Trade References :

· Dr. Reddy’s Laboratory – Hyderabad

· Divis Laboratory – Hyderabad

· Chennai Petroleum Corporation - Chennai

Fixed Assets :

• Computers
• Furniture and Fixture and Other Equipments
• Plant and Machinery
• Office Machines and Equipments
• Vehicles
• Buildings
• Freehold Land

As Per Website Details :

History and Company profile

Subject was established in 1990 with German technology, located at Chennai (Madras), South India. The plant is located about 20 Kms north of Chennai in the Manali Industrial Belt. Feedstock is drawn by pipeline from the neighboring Chennai Petroleum Corporation Limited.

Cetex has ventured into development of fine chemicals like specialized pharma intermediates and aroma chemical and essential chemicals. In an endeavor to upgrade the lucrative additive business, Cetex aspires to produce Energy chemicals, Lube additive, Water treatment chemicals and Marine chemicals. Through marketing tie-ups with leading majors like Petro-Canada, Cetex stands for high performance speciality products in the Indian market place.

Subject is the largest manufacturer of Methyl Ethyl Ketone (MEK) and Secondary Butyl Alcohol (SBA) in India. With the consistent quality of its products and services, Cetex commands a formidable market share of more than 60%. In India, Cetex has the distinction of being the only manufacturer of MEK to be ISO 9001-2000, ISO 14001 and OSHAs 18001.

Management:

With a dedicated mission towards establishing a leading presence in Petrochemical industry they have acquired the Cetex Petrochemicals business from RPG Group. Cetex Petrochemicals business which used to be a division of KEC International Ltd has been transferred to the newly incorporated company "Subject" as a going concern with effect from 22.04.2004. The company will be managed by the new Board of Directors.

Mr. S. Pattu – Chairman, has got his bachelors degree in Mechanical engineering and has a wide range of experience in Building & Operating chemicals, Fertilizers and specialty chemicals plants. He has served in senior management positions in ICI Group of companies, Nagarjuna group, polysindo/ TEXMALO Group in Indonesia, and Hindustan motors.

Mr. S. Ilanahai - Managing Director, has got his bachelors degree in chemical engineering and Masters Degree in Business administration and has an extensive experience in large chemical plants & petroleum refineries with wide exposure towards marketing of oil products and specialty chemicals for various processing industries.

Mr. P. N. Nagarajan - Holds a master degree in chemical engineering from IISc, Bangalore and Business management degree from Geneva. Has wide experiance in chemical plant operations, projects from ICI group of comapnies. Has held senior positions in India and Indonesia covering global operations. Currently cunsultant in Hyderabad.

V.R. Deenadayalu – He was the Chief Executive of BHEL and CMD of Madras Refineries Limited (now Chennai Petroleum Corporation Limited) He has a total experience of over 45 years at various positions.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.58
UK Pound	1	Rs.71.07
Euro	1	Rs.62.40

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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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

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

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

RATING EXPLANATIONS

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

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

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