MIRA INFORM REPORT

Report Date :

30.07.2011

IDENTIFICATION DETAILS

Name :	MARPOL PRIVATE LIMITED
Registered Office :	Panandiker Chambers, 2^nd Floor, M. L. Furtado Road, Margao – 403 601, Goa
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.04.1983
Com. Reg. No.:	24-000532
Capital Investment / Paid-up Capital :	Rs.42.036 millions
CIN No.: [Company Identification No.]	U24222GA1983PLC000532
TAN No.: [Tax Deduction & Collection Account No.]	BLRM00043B / BLRM07271F
PAN No.: [Permanent Account No.]	AACCM2018D
Legal Form :	Private Limited Liability company
Line of Business :	Manufacturer, Exporter and Importer of Powder Coatings and Polyester Resins.
No. of Employees :	300 (Approximately)

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 708000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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. Ganesh
Designation :	Accountant
Contact No.:	91-832-2711165
Date :	27.07.2011

LOCATIONS

Registered / Head Office :	Panandiker Chambers, 2^nd Floor, M. L. Furtado Road, Margao – 403 601, Goa, India
Tel. No.:	91-8342-2732045/ 2711165/ 2736880/ 2730880
Fax No.:	91-8342-2733124
E-Mail :	info@marpolind.com jdp@marpol.in
Website :	http://www.marpolind.com
Location :	Owned
Factory 1 :	Plot No.12-18, GIDC Industrial Estate, Kakoda – 403 706, Goa, India
Tel. No.:	91-832-2650749 / 2652167 / 2652168 / 2652169 / 2651381
Fax No.:	91-832-2651382
Factory 2 :	Plot No. A, B, C, GIDC Industrial Estate, Kakoda – 403 706, Goa, India
Factory 3:	Plot No.25, EPIP, Phase II, Thana Baddi, Tehsil – Nalagarh, District Solan – 173 205, Himachal Pradesh, India
Branches :	Located at: New Delhi Bangalore Mumbai Pune

DIRECTORS

AS ON 29.09.2009

Name :	Dr. Vishwanath A. Pai Panandiker
Designation :	Executive Director
Address :	H. No. 262, Dando, M L Furtado Road, Margao, Goa – 403 601
Date of Birth/Age :	24.03.1934
Date of Appointment :	05.04.1963
Name :	Mr. Shanu A. Pai Panandiker
Designation :	Director
Address :	H. No. 262, Dando, M L Furtado Road, Margao, Goa – 403 601
Date of Birth/Age :	25.05.1937
Date of Appointment :	05.04.1983
Name :	Mr. Shambhu A. Pai Panandiker
Designation :	Director
Address :	H. No. 262, Dando, M L Furtado Road, Margao, Goa – 403 601
Date of Birth/Age :	31.05.1932
Date of Appointment :	20.05.1983
Date of Ceasing :	30.08.2005
Name :	Mr. Kamlesh A. Pai Panandiker
Designation :	Director
Address :	H. No. 262, Dando, M L Furtado Road, Margao, Goa – 403 601
Date of Birth/Age :	21.06.1939
Date of Appointment :	20.05.1983
Name :	Mr. Rohan A. Pai Panandiker
Designation :	Director
Address :	H. No. 262, Dando, M L Furtado Road, Margao, Goa – 403 601
Date of Birth/Age :	22.04.1937
Date of Appointment :	27.09.2004
Name :	Mr. Ramchandra A. Pai Panandiker
Designation :	Director
Address :	H. No. 262, Dando, M L Furtado Road, Margao, Goa – 403 601
Date of Birth/Age :	24.04.1929
Date of Appointment :	05.04.1983
Date of Ceasing :	19.12.2003

KEY EXECUTIVES

Name :	Mr. Ganesh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2009

Names of Shareholders	No. of Shares
Shanu A. Pai Panandiker	137357
Shambu A. Pai Panandiker	54000
Kamlesh A. Pai Panandiker	150678
Dr. Vishwanath Pai Panandiker	295180
Ramachandra A. Pai Panandiker (HUF)	376696
Shanu A. Pai Panandiker (HUF)	376696
Dr. Vishwanath Pai Panandiker (HUF)	360000
Kamlesh A. Pai Panandiker (HUF)	559439
Shambu A. Pai Panandiker (HUF)	270000
Rohan A. Pai Panandiker	36156
Rohit R. Panandiker	36156
Ravi V Panandiker	16817
Rahool S. Panandiker	16817
Raj S. Panandiker	16817
Manisha V. Panandiker	16817
Ramchandra A. Pai Palondicar Trading and Investment Company Private Limited, India	277477
Vishwanath A. Pai Panandiker Trading and Investment Company Private Limited, India	1824200
Shanu A. Pai Panandiker Trading and Investment Company Private Limited, India	363243
Veda Pai Panandiker Trading and Investment Company Private Limited, India	277477

AS ON 29.09.2009

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		19.52
Other top fifty shareholders		80.48
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Powder Coatings and Polyester Resins.

Products :

Item Code No. [ITC Code]	Product Description
3907.30	Powder Coatings
3907.99	Polyester Resins

• Chemistries
• Finishes
• Shades
• Gloss Levels
• Insulation Coatings for Capacitors
• Exterior Durable Sparkle-Effect Finishes
• Antique Finishes
• Copper/Silver Vein Finishes
• Pure Epoxy
• Pure Polyester
• Epoxy Polyester

Exports :

Products :

Powder Coatings

Countries :

• Russia
• Turkey
• European Countries

Imports :

Products :

Raw Materials

Countries :

• China
• Hong Kong
• Singapore

Terms :

Selling :

L/C, Cash and Credit (30 days)

Purchasing :

L/C, Cash and Credit (30 days)

PRODUCTION STATUS AS ON 31.03.2009

Particulars	Unit	Installed Capacity
Unit I - Powder Coating	MT	324000
Polyster Resin	MT	240000
Unit II – Powder Coating	MT	720000
Unit III – Powder Coating	MT	172000

Particulars	Unit	Actual Production
Powder Coating	MT	455032
Polyster Resin	MT	128919

GENERAL INFORMATION

Suppliers : (As on 31.03.2009)

• PRP Chemicals
• Adarsh Printers
• Compack Extrusions
• Gauri Packaging
• Saroj Printers
• Flexipack
• Samarth Plastic Industries

Customers :

• Wholesalers
• Retailers
• End Users
• Automobile Company

No. of Employees :

300 (Approximately)

Bankers :

• Canara Bank, Margao Branch, Margao – 403601, Goa, India.
• The Goa Urban Co –Operative Bank Limited, Margao, Goa, India

Facilities :

SECURED LOAN	AS ON 31.03.2009 (Rs. In millions)	AS ON 31.03.2008 (Rs. In millions)
Term Loan
From Banks	32.873	43.543
Other Loans
Open Cash Credit Account	82.186	138.957
TOTAL	115.059	182.500

UNSECURED LOAN	AS ON 31.03.2009 (Rs. In millions)	AS ON 31.03.2008 (Rs. In millions)
From Directors	0.718	0.978
From Shareholders	17.625	18.415
Security Deposits	6.671	6.584
TOTAL	25.014	25.977

Banking Relations :	--
Auditors :
Name :	Ganesh and Ganesh Chartered Accountant
Address :	G -7, Vaikunth Apartments, P.O. Box 49, Comba, Margao, India
Tel. No.:	91-832-2731016 / 2730728 / 2759733
Fax No.:	91-832-2732408
E-Mail :	daivajna@sancharnet.in
Associates/Subsidiaries :	Panadiker Research and Development Private Limited Address: (Technology Centre), L-79, Phase II D, Verna Industrial Estate, Verna - 403 722, Goa, India Tel. No.: 91-832-2782135/ 2782136/ 2782178 Fax No.: 91-832-2782133

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4203604	Equity Shares	Rs.10/- each	Rs.42.036 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		42.036	42.036	42.036
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		134.908	116.473	117.875
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		176.944	158.509	159.911
LOAN FUNDS
1] Secured Loans		99.846	115.059	182.500
2] Unsecured Loans		15.399	25.014	25.977
TOTAL BORROWING		115.245	140.073	208.477
DEFERRED TAX LIABILITIES		13.814	13.508	13.806
TOTAL		306.003	312.090	382.194
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		113.078	127.373	134.111
Capital work-in-progress		0.000	1.024	1.166
INVESTMENT		0.500	0.500	0.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	239.542	64.067	87.538
	Sundry Debtors		145.573	188.068
	Cash & Bank Balances		16.074	29.290
	Other Current Assets		0.000	0.000
	Loans & Advances	66.187	60.513	62.009
Total Current Assets		305.729	286.227	366.905
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	113.462	54.843	66.009
	Other Current Liabilities		30.673	34.847
	Provisions		17.755	19.948
Total Current Liabilities		113.462	103.271	120.804
Net Current Assets		192.267	182.956	246.101
MISCELLANEOUS EXPENSES		0.158	0.237	0.316
TOTAL		306.003	312.090	382.194

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	615.278	635.946	656.366
		Other Income	6.911	5.266	16.351
		TOTAL (A)	622.189	641.212	672.717
Less	EXPENSES
		Manufacturing Expenses	445.823	458.262	473.715
		Personnel Expenses	50.564	41.768	40.432
		Administrative Expenses	25.928	33.967	24.963
		Selling and Distribution Expenses	52.163	47.503	49.741
		Increase / Decrease In Stocks	(19.180)	20.739	(9.621)
		TOTAL (B)	555.298	602.239	579.230
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		66.891	38.973	93.487
Less	FINANCIAL EXPENSES (D)		13.131	22.439	24.332
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		53.760	16.534	69.155
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.000	17.032	16.521
	PROFIT BEFORE TAX (E-F) (G)		35.760	(0.498)	52.634
Less	TAX (H)		12.407	(0.904)	9.400
	PROFIT AFTER TAX (G-H) (I)		23.353	(1.402)	43.234
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		108.081	109.483	71.167
Less	APPROPRIATIONS
		Interim Dividend	4.204	0.000	4.203
		Tax on Interim Dividend	0.714	0.000	0.714
	BALANCE CARRIED TO THE B/S		126.516	108.081	109.484
	Earnings Per Share (Rs.)		5.56	(0.33)	10.28

Particulars	31.03.2011 (Approximately)
Sales Turnover	759.400

Expected Sales (2011-2012): Rs.850.000 millions

The above information has been parted by Mr. Ganesh (Accountant).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.75	(0.21)	6.42
Net Profit Margin (PBT/Sales)	(%)	5.75	(0.07)	1.43
Return on Total Assets (PBT/Total Assets}	(%)	8.54	(0.12)	10.50
Return on Investment (ROI) (PBT/Networth)		0.20	(0.00)	0.32
Debt Equity Ratio (Total Liability/Networth)		1.29	1.53	2.05
Current Ratio (Current Asset/Current Liability)		2.69	2.77	3.03

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Name of the company	MARPOL PRIVATE LIMITED
Presented By	Shanu Pai Panandiker, Managing Director
1) Date and description of instrument creating the change	Memorandum of deposit of title deeds dated 24.06.2005 Agreement for loan dated 24.06.2005 Hypothecation of machinery dated 24.06.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.200 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	Hypothecation of Buss Powder Coating Extruder PLK 70 purchased under above finance. Continuation of existing charge on : - Lease hold and situated on plot no 16, 17, 18 at kakoda Industrial Estate Goa and building thereon. - Lease hold land and shed / building situated on plot no 12 at Kakoda Industrial estate Kakoda Goa - Buss Powder Coating Extruder PCS – 70 – 8 L/ D - Office Premises at 2^nd Floor of Panandiker Chambers, Margao Goa - Office Premises at Park Plaza, Taskar Town, Bangalore - Office Equipments, lab equipments, Computers, machinery, furniture and fixture etc, financed under earlier term loans from Goa Urban Co-operative Bank Limited
4) Gist of the terms and conditions and extent and operation of the charge.	- In consideration of the said loan the company to hypothecate buss powder Coating Extruder purchased under above finance - The said loan of Rs. 3.200 Millions to be repaid by the company in 60 installments of Rs. 0.067 Millions each, the first, payable on or before the 24^th of December 2005, the other installments payable by a regular interval of one month thereafter together with interest then due and the last installment payable on or before 24^th November 2010 - The said loan to carry on interest of 9.5 % p.a. or such rate or rates as may from time to time be fixed by the bank, Provided that the interest payable shall be subject to changes in interest rates made by the Reserve Bank of India from time to time.
5) Name and Address and description of the person entitled to the charge.	The Goa Urban Co-operative Bank Limited, Margao, Goa
6) Date and brief description of instrument modifying the charge	--
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.	--

This form is for	Creation of charge
Corporate identity number of the company	U24222GA1983PTC000532
Name of the company	MARPOL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Panandiker Chambers, 2^nd Floor, M. L. Furtado Road, Margaon – 403 601, Goa, India
Type of charge	Movable Property
Particular of charge holder	Canara Bank, Margao Branch, Margao – 403601, Goa, India
Nature of description of the instrument creating or modifying the charge	Canmobile Agreement dated 30-12-2009
Date of instrument Creating the charge	30.12.2009
Amount secured by the charge	Rs.0.520 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 9.50 % p.a. Terms of Repayment 36 Monthly (EMI) Installments of Rs.16410 /- commencing from 30/01/2010 Margin 37.73% Extent and Operation of the charge Hypothecation of brand new Maruti SX - 4 Car costing Rs.0.834 millions
Short particulars of the property charged	Hypothecation of brand new Maruti SX - 4 Car costing Rs. 0.834 millions -

TRADE REFERENCES:

v Honda, Delhi

FIXED ASSETS

• Factory Building
• Plant and Machinery
• Electrical Installations
• Office Equipment
• Office Premises
• Furniture and Fixture
• Vehicles
• Laboratory Equipments

Profile

Subject is the flagship of the Panandiker Group of Industries and one of the manufacturers of powder coatings in India. Established in 1986, Marpol has gone from strength to strength by consistently offering quality products meeting the varied needs of their customers.

During the past 20 years, they have commercialized over 1300 shades. Using sophisticated software, they have evolved the capability to customize any shade required by their customers, using colour standards such as IS/RAL/PANTONE.

They are among the few powder coating companies in the world that have integrated backwards to manufacture Polyester Resins, the main ingredient in Powder Coatings.

Marpol caters to OEMs in all industry segments where powder coatings are used. They have a nationwide distribution network of 3 Regional Offices and 35 channel partners, coupled with a 30 strong sales and technical staff that gives the customer the confidence of a reduced lead time.

Subject strive to consistently deliver cost-effective and high quality solutions. They combine their people, processes and technology to help cut costs while maintaining the grade of their powder coatings.

Subject’s biggest strengths are quality and flexibility in quantity which is possible because of its technology and constant R&D activity. In 2001, Marpol set up a separate R&D centre to focus on new technologies and maintain its technological advantage.

Subject has recently commissioned its 3rd manufacturing facility. Located in North India, its proximity to one of India’s largest industrial belts leverages Marpol’s production flexibility and delivery advantage.

With manufacturers of almost everything from white goods to cladding, furniture to electrical control panels, appliances to glass bottles shifting to powder coating and with an installed capacity of more than 4800MT per annum, Marpol is set for a quantum leap.

Team

At Marpol, they believe people are their greatest asset. Their pool of talented, motivated and committed professionals bring a high level of performance to the Marpol Team. Their top management consists of eminent industrialists and experts who lead the organization with their foresight and collective wisdom.

Dr. V A Pai Panandiker, Executive Chairman

Dr. Panandiker was founder and president of India's leading Think Tank, the Centre for Policy Research, besides having held a number of critical government positions. He has been the visionary and source of inspiration in the creation and growth of Marpol. He is advisor to a number of top corporate houses and academic institutions. Dr. Panandiker holds a PhD in Public Administration from University of Michigan, Ann Arbor, USA.

Mr. S A Pai Panandiker, Managing Director

Their managing director holds a masters degree in economics from the University of Bombay and brings a thorough understanding of the Indian business environment to the organization. He has been instrumental in making Marpol one of the leading powder coating companies in India over two decades and has built the management culture of Marpol on the strong foundation of ethical and moral values.

Mr. Kamlesh A Pai Panandiker, Technical Director

Mr. Kamlesh Panandiker is the technological powerhouse behind Marpol and brings over 30 years of top grade experience in resins and powder coatings to the organization. He has held positions with Allied Chemicals, Cargil and McWhorter Technologies in the United States and holds 6 registered patents in Polymer Resins. His technological expertise has put Marpol onto the innovation track.

Mr. E. Venugopal, Vice President – Marketing

Mr. Venugopal is a chemistry graduate with 25 years of experience in industrial sales and marketing. His areas of exposure include powder coating, paints and industrial tools. He has held key positions in various reputed organisations in these industries with a proven track record.

Mr. N. Raghuraman, General Manager –Coordination

A postgraduate in chemistry, Mr. Raghuraman has been in the academic field for a few years before moving to industry wherein he has to his credit 35 years of experience in the field of manufacturing.

MILESTONE

1986 Commenced operations as a small scale industry. Initial capacity: 180 TPA for Saturated Polyester Resins; 420 TPA in Powder Coating

1991 New Powder Coating Plant added. Total capacity: 720 TPA

1994 R & D Division set up

1995 Debottlenecking of Powder Coating Plant. Total capacity: 1200 TPA

1996 Sales Offices set up at Delhi and Mumbai

1997 Sales Office set up at Bangalore

1998 Debottlenecking of Resin Plant. Capacity: 500 TPA

2000 Expansion of Powder Coating capacity to 4800 TPA

2002 Expansion of Resin Plant capacity to 1600 TPA

2003 Expansion of Resin Plant capacity to 1600 TPA

2004 Addition of new Powder Coating plant in North India with 1200 TPA capacity

2006 Increase in powder coating capacity to 10,000 TPA and resin capacity to 2,400 TPA

2008 Opened Sales office at Pune

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.44.15
UK Pound	1	Rs.72.10
Euro	1	Rs.63.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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	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.