MIRA INFORM REPORT

Report Date :

10.03.2011

IDENTIFICATION DETAILS

Name :	SARDA PLYWOOD INDUSTRIES LIMITED
Registered Office :	9, Parsee Church Street, Kolkata-700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.06.1957
Com. Reg. No.:	21-23493
CIN No.: [Company Identification No.]	L20211WB1957PLC023493
TAN No.: [Tax Deduction & Collection Account No.]	CALS02013E
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacture and distribution of plywood; tea processing

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1200000
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 :	9, Parsee Church Street, Kolkata-700 001, West Bengal, India
Tel. No.:	91-33- 22355323/ 91-33-22493675
E-Mail :	corp@sardarplywood.com
Website :	www.sardarplywood.in
Corporate Office :	North Block, 4th Floor, 113, Park Street , Kolkata-700 016, West Bengal, India
Tel. No.:	91-33-22652274
Fax No.:	91-33-2249 3675
E-Mail :	corp@sardaplywood.com
Factory 1 :	Located at: · Ahmedabad · Bangalore · Bhopal · Bhubneshwar · Chattisgarh · Guwahati · Hyderabad · Jaipur · Kolkata · Lucknow · Ludhiana · Mumbai · New Delhi · Patna · Pune · Raipur · Ranchi

DIRECTORS

As on 31.03.2010

Name :	Dr. Samares Kumar Chanda
Designation :	Chairman
Name :	Mr. Sujit Chakravorti
Designation :	Director
Name :	Dr. Kali Kumar Chaudhuri
Designation :	Director
Name :	Mr. Ratan Lai Gaggar
Designation :	Director
Name :	Mr. Kirti Kumar Maheshwari
Designation :	Director
Name :	Mr. Naresh Pachisia
Designation :	Director
Name :	Mr. Sohan Lai Yadav
Designation :	Whole-time Director
Name :	Mr. Sudeep Chitlangia
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. B. L. Mundhra
Designation :	Chief Financial Officer and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,547,059	37.89
Bodies Corporate	149,242	3.66
Sub Total	1,696,301	41.55
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1,696,301	41.55
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	8,600	0.21
Financial Institutions / Banks	2,400	0.06
Sub Total	11,000	0.27
(2) Non-Institutions
Bodies Corporate	506,846	12.41
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,212,018	29.69
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	580,908	14.23
Any Others (Specify)	75,812	1.86
Non Resident Indians	75,542	1.85
Clearing Members	270	0.01
Sub Total	2,375,584	58.18
Total Public shareholding (B)	2,386,584	58.45
Total (A)+(B)	4,082,885	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	4,082,885	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and distribution of plywood; tea processing

Products :

· Plywood

· Blackboard

· Doors

· Decorative Plywood

· Tea

· Innovative Products

Item Code No. (ITC Code)	4412
Product Description	Plywood
Item Code No. (ITC Code)	0902
Product Description	Black Tea

GENERAL INFORMATION

Bankers :

· United bank of India

· State Bank of India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loans From Scheduled Banks	2.000	16.300
From Others	47.563	0.000
Buyers Credit From Scheduled Banks	86.858	0.000
Working Capital Loan From Scheduled Banks	88.403	164.504
Total	224.824	180.804

Notes :

1. Nature of Security :

(a) Term loan from Scheduled Bank is secured by exclusive charge over specified machinery.

(b) Term loan from Others is secured by first charge on the Company’s immovable properties situated at Jaypore (Assam) by deposit of title deeds and also by hypothecation of all plant and machinery and other fixed assets of the company, both present and future, and is additionally secured by personal guarantee of the Managing Director.

(c) Working capital loans and Buyers Credit are secured by hypothecation of present and future stock and book debts and second charge on the Company's immovable and movable properties situated at Jeypore (Assam) and personal guarantees of Managing Director.

(d) Details of aggregated amount of loans outstanding which are guaranteed by the Managing Director. Loans from Banks-Rs. 175.261 millions (Previous year Rs.164.504 Millions) Loans from Others-Rs.475.629 Millions- (Previous year Rs. Nil)

2. Terms of Repayment

(a) Out of Term Loan from Scheduled Bank Rs.2.000 Millions(Previous year Rs14.300 Millions) falls due for repayment within one year.

(b) Out of Term Loan from others Rs.4.200 Millions (Previous year Rs. Nil) falls due for repayment within one year.

Banking Relations :	-
Auditors :
Name :	G. P. Agrawal and Company Chartered Accountants
Associates/Subsidiaries :	· Calcutta Technicians and Advisers Limited · Madhya Bharat Papers Limited. · P.S. Plywood Products Private Limited · Poushali Sales Private Limited · Purma Timber Products Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- Each	Rs.250.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
4262810	Equity Shares	Rs.10/- Each	Rs.42.628 Millions

Subscribed & Paid-up Capital

No. of Shares	Type	Value	Amount
4082885	Equity Shares	Rs.10/- Each	Rs.40.829 Millions
	Add: Forfeited Shares		Rs.0.028 Million
	Total		Rs.40.857 Millions

Note:

Of the above shares 10,91,900 Equity Shares were allotted as fully paid-up by way of Bonus Shares by capitalisation of General Reserve

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		40.857	40.857	36.457
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		259.090	243.854	253.685
4] Convertible Warrants		0.000	0.000	2.383
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		299.947	284.711	292.525
LOAN FUNDS
1] Secured Loans		224.824	180.804	169.134
2] Unsecured Loans		2.269	1.984	2.269
TOTAL BORROWING		227.093	182.788	171.403
DEFERRED TAX LIABILITIES		12.496	5.664	16.354
TOTAL		539.536	473.163	480.282
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		84.109	89.564	98.029
Capital work-in-progress		71.006	2.852	0.707
INVESTMENT		105.641	105.627	105.791
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	302.713	223.583	251.718
	Sundry Debtors	169.767	145.241	98.808
	Cash & Bank Balances	19.867	17.135	18.097
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	59.891	97.080	127.242
Total Current Assets		552.238	483.039	495.865
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	92.903	55.875	75.297
	Other Current Liabilities	177.554	149.358	142.642
	Provisions	3.001	2.686	2.171
Total Current Liabilities		273.458	207.919	220.110
Net Current Assets		278.780	275.120	275.755
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		539.536	473.163	480.282

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1167.036	1012.870	885.731
		Other Income	26.003	9.882	21.133
		TOTAL (A)	1193.039	1022.752	906.864
Less	EXPENSES
		Purchases of Trading Goods	106.026	75.813	100.389
		Raw Materials Consumed	756.647	590.228	525.727
		Manufacturing Expenses	120.682	118.930	105.733
		Payments to & Provisions for Employees	61.909	57.437	49.306
		Administrative, Selling, Distribution & Other Expenses	140.283	156.228	126.070
		Increase/(Decrease) in Stock	(49.493)	17.896	(41.123)
		TOTAL (B)	1136.054	1016.532	866.102
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		56.985	6.220	40.762
Less	FINANCIAL EXPENSES (D)		22.523	25.522	22.026
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.462	19.302	18.736
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.575	12.423	12.318
	PROFIT BEFORE TAX (E-F) (G)		22.887	(31.725)	6.418
Less	TAX (H)		7.439	(9.381)	3.557
	PROFIT AFTER TAX (G-H) (I)		15.448	(22.344)	2.861
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		47.340	69.685	66.690
	BALANCE CARRIED TO THE B/S		62.788	47.340	69.685
	IMPORTS
		Raw Materials	262.806	236.491	NA
		Trading Goods	7.979	9.343	NA
		Machinery & Spares	1.989	0.652	NA
	TOTAL IMPORTS		272.774	246.486	NA
	Earnings Per Share (Rs.)
	Basic		3.78	(5.99)	0.82
	Diluted		3.78	(5.27)	0.73

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	323.940	398.520	365.800
Total Expenditure	303.640	380.530	352.100
PBIDT (Excl OI)	20.300	17.990	13.700
Other Income	0.300	8.740	1.890
Operating Profit	20.600	26.720	15.590
Interest	5.420	6.980	7.720
Exceptional Items	0.000	0.000	0.000
PBDT	15.180	19.740	7.870
Depreciation	4.210	4.190	4.120
Profit Before Tax	10.970	15.550	3.750
Tax	0.960	4.980	0.440
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	10.010	10.570	3.310
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	10.010	10.570	3.310

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.29	(2.18)	0.32
Net Profit Margin (PBT/Sales)	(%)	1.96	(3.13)	0.71
Return on Total Assets (PBT/Total Assets}	(%)	3.60	(5.54)	1.08
Return on Investment (ROI) (PBT/Networth)		0.08	0.11	0.02
Debt Equity Ratio (Total Liability/Networth)		1.67	2.34	1.34
Current Ratio (Current Asset/Current Liability)		2.02	2.32	2.25

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

During the year, the general economic scenario has improved as compared to the previous financial year. The Company has been able to take advantage of the changed circumstances and thereby the performance of both the Divisions of the Company i.e. Plywood and Tea, has substantially improved as compared to the preceding financial year. During the year the Company has achieved a gross turnover of Rs.1226.747 millions as against Rs.1058.274 millions in the preceding year, an increase of 15.92% and has earned a net profit of Rs.15.448 millions as against a net loss of Rs.22.345 millions during the preceding year.

EXPANSION

The Company has commenced commercial production from 1st April 2010 at the newly set up plywood manufacturing unit at Jeypore, Assam.

Overview

Subject is one of the key players in the plywood industry and its DURO range of products are well known for its superior quality and commands premium in the market. The Company also owns a bought leaf tea processing factory and the tea produced by it is well accepted in the market.

Plywood

The global recession and/or slow down has adversely affected the Indian manufacturing sector also. Signs of recovery are clearly visible and it is expected that growth in the housing and infrastructure sector will gain momentum in the days ahead. Consequently, the demand for plywood and allied products is also expected to grow rapidly. The Company has already set up a new plywood factory in Assam and is well poised to seize the available opportunities in the plywood market. There is no significant threat to the industry and/or Company from any product and/or sector.

During the year 2009-10, segment revenue increased from Rs.777.148 Millions to Rs.891.853 Millions i.e. a growth of 14.76%. The Company has earned segment profit before tax and interest of Rs.32.703 Millions as against segment loss before tax and interest of Rs.8.663 Millions in the preceding financial year. With the increase in the purchasing power of people, preference for branded product is also increasing and outlook for the organized sector in the plywood industry remains positive.

Since the major portion of the raw materials is imported by the Company, volatile foreign exchange rate is a matter of concern and all possible efforts are taken to minimize the risk.

Tea

Tea Industry is doing much better as compared to previous year with revival of demand for CTC tea and increased sales realization leading to higher operating margins.

During the year Company has been able to produce 2.634 Millions Kgs of CTC tea as against 2.346 Millions Kgs of CTC tea in the preceding financial year. Segment revenue during the year was Rs.263.855 Millions as against Rs.228.702 Millions in the preceding financial year representing a growth of 15.37%. Segment profit before tax and interest increased from Rs.0.539 Million to Rs.19.966 Millions. Outlook for the tea industry is expected to remain positive in the days ahead.

Tea industry is directly dependent on weather conditions. Although demand for Tea has increased, there is no improvement in raw material availability. Lower availability and high cost of raw materials is a matter of concern.

Financial Performance

During the year, the gross turnover of the Company has increased from Rs.1058.274 Millions to Rs.1226.747 Millions registering a growth of 15.92%. The Company has earned a net profit of Rs.15.448 Millions as against a net loss of Rs.22.344 Millions in the preceding year.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 31ST DECEMBER, 2010

Particulars	31.12.2010 Quarter Ended	31.12.2010 Period Ended
(a) Net Sales / Income from operations	364.402	1084.793
(b) Other Operating Income	1.401	3.465
Total Income	365.803	1088.258
Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	(8.969)	(50.571)
b) Consumption of raw materials	212.054	662.326
c) Purchase of traded goods	27.089	73.989
d) Employees cost	24.089	70.949
e) Depreciation	4.116	12.510
f) Exchange Rate Fluctuation Loss / (Gain)	(1.768)	(4.452)
g) Other expenditure	97.834	273.918
Total	3544.454	1038.669
Profit from operations before other income, interest	11.349	49.589
Other income	0.120	0.805
Profit before interest	11.469	50.394
Interest	7.722	20.122
Profit (+)/Loss(-) from Ordinary Activities before tax	3.747	30.272
Tax expense
a) Provision for Current Tax	(0.072)	6.021
b) Provision for deferred Tax	0.461	0.339
c) Earlier Years	0.053	0.025
d) MAT Credit Entitlement	0.000	0.00
Net Profit (+) / Loss (-) for the year period	3.305	23.887
Paid up equity share capital (Face value of Rs.10/- per share)	40.857	40.857
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	-	-
Earning per share (EPS)
(a) Basic	0.81	5.85
(a) Diluted	0.81	5.85
Public shareholding
Number of shares	2386584	2386584
Percentage of shareholding	58.15	58.15
Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	Nil	Nil
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	Nil	Nil
Percentage of shares (as a % of total share capital of the company)	Nil	Nil
b) Non Encumbered
Number of shares	1696301	1696301
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100	100
Percentage of shares (as a % of total share capital of the company)	41.55	41.55

Segmentwise Revenue, Results and Capital Employed

Particulars	31.12.2010 Quarter Ended	31.12.2010 Period Ended
1. Segment Revenue (Net sales/Income from each segment)
a) Plywood and allied Products	285.121	856.058
b) Tea	75.632	220.600
c) Others	5.050	11.478
Total	365.803	1088.136
Less: Inter-segment revenue	-	-
Net Sales/Income from operations	365.803	1088.136
2. Segment Results [Profit(+)/loss(-) before tax and interest]
a) Plywood and allied Products	6.031	41.676
b) Tea	9.302	19.795
c) Others	(2.362)	(7.050)
Total	12.971	54.421
Less: (i) Interest	7.722	20.122
(ii) Other unallocable expenditure net of unallocable income	1.502	4.027
Total Profit before Tax	3.747	30.272
3. Capital Employed (Segment Assets - Segment Liabilities)
a) Plywood and allied Products	415.708	415.708
b) Tea	103.099	103.099
c) Others	23.089	23.089
d) Unallocated	(218.221)	(218.221)
TOTAL	323.675	323.675

NOTES:

1. Tea industry being seasonal in nature, the above results (which includes profit of the Tea Division) cannot be taken as indicative of results of the full year.

2. There are no exceptional / extra ordinary items.

3. Number of investor complaints received and disposed off during the quarter ended 31st December 2010 was 3. No complaints were outstanding at the beginning and at the closing of the quarter.

4. The above results have been reviewed by the Audit Committee and subsequently approved by the Board of Directors at their respective meetings held on 9th February 2011.

Fixed Assets:

· Freehold Land

· Buildings

· Plant and Machinery

· Motor Vehicles

· Furniture Fixture and Office Equipments

Website Details:

History

Subject is the flagship company of a prestigious Chitlangia Group having significant presence in paper and tea besides plywood and allied products.

Subject was founded in 1957 an era where wood used to be known as the one stop source for all furniture, and subsequently grew up to a formidable force under the dynamic and visionary leadership of Late Sri P.D. Chitlangia. His vision was simple , yet powerful.

The manufacturing facility was established in Jeypore, Assam, the home of plywood manufacturing. The DURO range of quality plywood products started rolling out from this factory. Quality was an obsession for Late Sri P.D. Millions and the same was inculcated to each and every one down the line. This resulted in DURO becoming the numero uno plywood brand in India. Competition was relegated to the backdoor.

Subject manufacturing facility is well equipped with machineries and resources to produce any variety of plywood. Raw materials are sourced indigenously as well as from overseas. Quality Assurance methods at each stage of manufacturing process ensure quality from raw materials to finish. Research and Development is at the core of Subject success story and the gamut of products under its banner speaks for themselves. In fact R and D efforts have resulted in continuous product upgradations, innovations and new product developments.

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.45.02
UK Pound	1	Rs.72.70
Euro	1	Rs.62.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		50

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.