MIRA INFORM REPORT

Report Date :

22.11.2011

IDENTIFICATION DETAILS

Name :	KATARIA INDUSTRIES PRIVATE LIMITED
Registered Office :	72, Gandhi Nagar, Drainage Channel Road, Opposite Municipal, Industrial Estate Worli, Mumbai- 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.05.2004
Com. Reg. No.:	11- 146201
Capital Investment / Paid-up Capital :	Rs. 37.596 Millions
CIN No.: [Company Identification No.]	U27300MH2004PTC146201
TAN No.: [Tax Deduction & Collection Account No.]	BPLK02632A
PAN No.: [Permanent Account No.]	AACCK4830H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Stranded Wire, Plastic, Copper Wire.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (38)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 670000
Status :	Moderate – Improving
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. Financial position of the company is improving. The company has successful in wiping off the accumulated losses of the previous years. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight caution, initially.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	72 Gandhi Nagar, Drainage Channel Road, Opposite Municipal, Industrial Estate Worli, Mumbai- 400018, Maharashtra, India
Tel. No.:	91-22-24926317/ 24926249/ 24924304
Fax No.:	91-22-24950453
E-Mail :	katariawires@dataone.in pkipl@rediffmail.com
Websites:	www.katariaindustries.com
Factory 1/ Indore office :	304, Jhabua Tower, Block No. W-4, 3^rd Floor, R.N. Tagore Marg, Indore - 452001,Madya Pradesh, India
Tel. No.:	91-731-2522967/ 3043430
Fax No.:	91-731-2519573
Factory 2:	23-26, Kataria Complex, Ring Road, Dewas Naka Indore - 452001,Madya Pradesh, India
Tel. No.:	91-731-4249968
Fax No.:	91-731-4249967
Factory 3/ Work and Administration/ Cable Conductor Division :	34-44, Industrial Area, Ratlam- 457001, Madhya Pradesh, India
Tel. No.:	91-7412-261011/ 261141-44/ 261130/ 260554/261174
Fax No.:	91-7412-261345/ 261153-54/ 261174/321174
E-Mail :	katariaindustries@dataone.in kataria_bom6@sancharnet.in katariaindustries@yahoo.co.in
Branch Office :	Located at: · Delhi · Mumbai · Indore · Chennai · Hyderabad · Kolkata

DIRECTORS

As on 30.09.2010

Name :

Mr. Madan Lal Kataria

Designation :

Whole Time Director

Address :

10-12 Ghans Bazar, Ratlam - 457001, Madhya Pradesh, India

Date of Birth/Age :

29.03.1951

Qualification :

M.Com

Experience :

33 Years

Date of Appointment :

01.01.2005

DIN No.:

00088902

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65921MP1994PTC008433	Sonic Fiscal Services Private Limited	Director	30-09-00	30-09-00	-	Active	NO
2	U24248MP1993PTC007692	San Industries Private Limited	Director	01-12-00	01-12-00	-	Active	NO
3	U51505MP1994PTC008434	Sonic Overseas (India)Private Limited	Director	01-11-01	01-11-01	-	Active	NO
4	U27300MH2004PTC146201	Kataria Industries Private Limited	Director	01-01-05	01-01-05	-	Active	NO
5	U45201GJ1996PLC028745	Utkarsh Land Developers Limited	Director	02-02-09	02-02-09	-	Active	NO

Name :

Mr. Praveen Kataria

Designation :

Whole Time Director

Address :

63, Choumukhi Pul, Ratlam - 457001, Madhya Pradesh, India

Date of Birth/Age :

05.09.1973

Date of Appointment :

01.01.2005

DIN No.:

00088633

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65921MP1994PTC008433	Sonic Fiscal Services Private Limited	Director	01-12-00	01-12-00	-	Active	NO
2	U24248MP1993PTC007692	San Industries Private Limited	Director	01-12-00	01-12-00	-	Active	NO
3	U27300MH2004PTC146201	Kataria Industries Private Limited	Director	01-01-05	01-01-05	-	Active	NO
4	U45201GJ1996PLC028745	Utkarsh Land Developers Limited	Director	02-02-09	02-02-09	-	Active	NO
5	U25199MH2010PTC205372	D.P. Polyplast Industries Private Limited	Director	09-07-10	09-07-10	-	Active	NO
6	U74140GJ2007PTC050785	Nirmal Advisory Private Limited	Additional director	15-09-10	15-09-10	30-03-11	Active	NO
7	U24100MH2010PTC206526	Trophic Wellness Private Limited	Director	30-09-11	21-10-10	-	Active	NO

Name :

Mr. Arun Kataria

Designation :

Whole Time Director

Address :

10, Ghans Bazar, Ratlam - 457001, Madhya Pradesh, India

Date of Birth/Age :

17.12.1981

Qualification :

M.Com

Experience :

6 Years

Date of Appointment :

11.05.2004

DIN No.:

00088999

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U13200MH1950PTC008306	Shree Hanuman Mining Corporation Private Limited	Director	20-01-04	20-01-04	-	Active	NO
2	U27300MH2004PTC146201	Kataria Industries Private Limited	Director	11-05-04	11-05-04	-	Active	NO
3	U99999GJ1994PTC022750	Shree Jalaram Metals Private Limited	Director	09-12-06	09-12-06	-	Active	NO
4	U45201GJ1996PLC028745	Utkarsh Land Developers Limited	Director	16-01-09	16-01-09	-	Active	NO

Name :

Me. Hemant Kantilal Kataria

Designation :

Director

Address :

63, Choumukhi Pul, Ratlam - 457001, Madhya Pradesh, India

Date of Birth/Age :

01.12.1977

Date of Appointment :

01.04.2011

DIN No.:

00088833

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U13200MH1950PTC008306	Shree Hanuman Mining Corporation Private Limited	Director	20-01-04	20-01-04	-	Active	NO
2	U27300MH2004PTC146201	Kataria Industries Private Limited	Director	11-05-04	11-05-04	-	Active	NO
3	U99999GJ1994PTC022750	Shree Jalaram Metals Private Limited	Director	09-12-06	09-12-06	-	Active	NO
4	U45201GJ1996PLC028745	Utkarsh Land Developers Limited	Director	16-01-09	16-01-09	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Arun Kataria	5000
Sunil Kataria	188940
Suganbai Kataria	30345
Anokhilal Pannalalji HUF	238600
Manoharlal Pannalalji HUF	138600
Kantilal Pannalalji HUF	352800
Madanlal Pannalalji HUF	277200
Ashok Kumar Pannalalji HUF	272200
Madanlal Kataria	41800
Praveen Kataria	165631
Arvind Kataria	165631
Anil Kataria	195210
Ashok Kataria	99550
Asha Devi Kataria	165633
Anoop Kataria	348615
Mansariwar Developers Private Limited, India	725000
Nagina Devi Kataria	58000
Rakhi Kataria	290865
TOTAL	3759620

As on 31.12.2010

Names of Allottees	No. of Shares Allotted
Sonic Biochem Extraction Limited, India	93500
TOTAL	93500

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Bodies corporate	19
Directors or relatives of Directors	81
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Stranded Wire, Plastic, Copper Wire.

Products :

Product Description	Item Code No.
Steel Wire	7217.10
Plastic Pipe	3917.29
Aluminium Conductor	7614.90

Steel Wire Division

• HC Wire
• GI Wire
• LRPC Strand
• Rolling Wires
• Bicycle Spoke Wires
• Spring Steel Wires
• Steel Rope Wires
• Tyre Bead Wires
• HTGS Wire
• Welding Rods

Cable Conductor Division

• Aerial Bunched Cables
• Aluminium Wires
• House Wires
• Multicore Cables
• Three Core Flat Cables

Plastic Division

• Rigid PVC Pipes
• HDPE Pipes
• Casing Pipes
• SWR Pipes
• Sprinkler Pipes
• Suction Pipes
• Plumbing Pipes
• HDPE Film
• LDPE Film
• Gabion Mesh

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Registered Capacity	Installed Capacity
M.s./Chq. Htgs/HC/PC wire	MT	144000	144000
Plastic Products	MT	30000	30000
Cable and Conductors	MT	36000	18000
Fabricated Structural Product	MT	5000	1000

Particulars	Unit	Production/ Purchase
M.s./Chq. Htgs/HC/PC wire	MT	69162.310
Plastic Products (Including Scrap)	MT**	8604.244
Cable and Conductors	MT	9166.244
Cable and Conductors	KM
Electric Power (in units)		3128961
Traded Goods	MT	6469.811

** Does not include job work done for others 82.771 m.t (Previous Year)

GENERAL INFORMATION

Customers :

• Ministry of Railway (Railway Board), New Delhi
• Bharat Sanchar Nigam Limited
• Gujarat Water Supply and Sewerage Board
• Maytas Infra Limited
• The Indian hume Pipe Company Limited
• Hindustan Zinc Limited
• JMC Projects (India) Limited
• Delhi Metro Rail Project, New Delhi
• Reliance Energy Limited
• Bihar Construction Company Limited
• IVRCL Infrastructures and projects Limited
• Essar Construction (India) Limited
• Tata Projects Limited
• National Thermal Power Corporation
• Nuclear Power Corporation limited
• Horticulture / Agriculture Department J and K.
• Larsen and Turbo Limited
• Sterlite Industries (India) Limited
• Apar Industries Limited
• KEC
• Gammon India Limited
• Power Grid corporation India
• Jyoti structures Limited
• Godrej and Boyce Manufacture Limited
• Bajaj Electricals
• DLF Infrastructure
• K. Raheja Group
• GMR Infrastructures
• AFCONS
• Pipavav Port Trust

No. of Employees :

600 (Approximately)

Bankers :

State Bank of India, Commercial Branch, Mitra Niwas Road, Ratlam – 457001, Madhya Pradesh, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Secured loan from State Bank of India
Cash Credit Loan	280.429	325.762
Bills Payable (Unsecured period 90 Days against purchase of raw material) (Secured by first charge on stock of raw material, Stock in process, Finished goods, Consumable Store and Spare, Book debts, EM of Factory Land, Plant and existing and future and personally guaranteed by all directors of the company)	45.000	0.000
Medium Term Loan	56.435	78.923
Total	381.864	404.685
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Inter Corporate Bodies	637.740	599.596
From Members	21.690	0.457
Total	659.430	600.053

Banking Relations :	--
Auditors :
Name :	Subhash Deshpande and Company Chartered Accountants
Address :	403, City Plaza, 564, M.G. Road, Indore-452001, Madhya Pradesh, India
PAN.:	AACFM5974F
Related Parties :	Ratlam Wires Private Limited Kataria Wires Private Limited D. P. Plastics Kataria Steels and Alloys Private Limited Shree Hanuman Mining Corporation Private Limited San Industries Private Limited

CAPITAL STRUCTURE

After on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs.10/- each	Rs.55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3853120	Equity Shares	Rs.10/- each	Rs. 38.532 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs.10/- each	Rs.55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3759620	Equity Shares	Rs.10/- each	Rs.37.596 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		37.596	37.596	37.596
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		129.103	100.751	118.185
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		166.699	138.347	155.781
LOAN FUNDS
1] Secured Loans		381.864	404.685	371.489
2] Unsecured Loans		659.430	600.053	399.698
TOTAL BORROWING		1041.294	1004.738	771.187
DEFERRED TAX LIABILITIES		10.170	(14.136)	0.000
TOTAL		1218.163	1128.949	926.968
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		287.883	290.094	292.727
Capital work-in-progress		0.000	0.000	27.291
INVESTMENT		0.000	5.775	5.775
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	367.823	256.034	304.788
	Sundry Debtors	393.178	368.043	153.360
	Cash & Bank Balances	29.805	40.522	6.478
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	270.327	260.048	174.343
Total Current Assets		1061.133	924.647	638.969
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	93.364	61.768	67.848
	Other Current Liabilities	35.546	28.962	22.998
	Provisions	2.211	1.088	0.000
Total Current Liabilities		131.121	91.818	90.846
Net Current Assets		930.012	832.829	548.123
MISCELLANEOUS EXPENSES		0.268	0.251	53.052
TOTAL		1218.163	1128.949	926.968

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4308.367	3591.520	2020.070
		Other Income
		TOTAL (A)	4308.367	3591.520	2020.070
Less	EXPENSES
		Office Expenses	4056.688	3404.673	1948.215
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	4056.688	3404.673	1948.215
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		251.679	186.847	71.855
Less	INTEREST/ FINANCIAL EXPENSES (D)		121.227	92.776	56.770
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		130.452	94.071	15.085
Less/ Add	DEPRECIATION/ AMORTISATION (F)		69.400	69.910	61.360
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		61.052	24.161	(46.275)
Less	TAX (H)		9.706	2.579	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		51.346	21.582	(46.275)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(17.433)	(41.507)	(9.519)
	Deferred Tax Assets/ Liabilities		24.305	(2.881)	(14.295)
	Prior Period Income/ Expenses		(1.609)	0.269	0.006
	BALANCE CARRIED TO THE B/S AND P & L		10.918	(17.433)	(41.507)
	IMPORT VALUE		625.769	123.306	287.355
	Earnings /loss Per Share (Rs.)		7.54	5.64	(12.31)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.19	0.60	(2.29)
Return on Total Assets (PBT/Total Assets}	(%)	3.81	1.99	(4.97)
Return on Investment (ROI) (PBT/Networth)		031	0.17	0.40
Debt Equity Ratio (Total Liability/Networth)		7.03	7.93	0.79
Current Ratio (Current Asset/Current Liability)		8.09	10.07	7.03

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF THE WORKING

Besides over Industrial recession resulting into cut throat competition, the company also faced power problem. However the turnover crossed to Rs. 4308.367 Millions against the previous year Rs. 3591.520 millions and profit after tax Rs. 52.717 millions against the previous year Profit of Rs. 21.582 millions .

POWER BUSINESS

The 1600 KW Wind Farm at Village Retadi, Distt. Dewas , Madhya Pradesh generated 3128961 units recording a PLF of 22.32 % against 3135794 Units generated recording a PLF of 22.37 % during the previous year.

FORM 8

Corporate identity number of the company	U27300MH2004PTC146201
Name of the company	KATARIA INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	72 Gandhi Nagar, Drainage Channel Road, Opposite Municipal, Industrial Estate Worli, Mumbai- 400018, Maharashtra, India. Email : katariawires@dataone.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10057082
Type of charge	· Immovable Property · Book Debts · Movable Property (not being pledge) · Floating charges · Others
Particular of charge holder	State Bank of India , Commercial Branch, Mitra Niwas Road, Ratlam – 457001, Madhya Pradesh, India. Email: katariawires@dataone.in
Nature of instrument creating charge	Supplimental agreement of loan for increase in the overall limit dated 11.03.2011 for Rs. 691.000 Millions
Date of instrument Creating the charge	11.03.2011
Amount secured by the charge	Rs. 691.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Cash Credit - Concessional Rate @ 3.25% above base rate, currently effective 11.50% p.a. Term loan - as per earlier sanction Letter of credit - as per agreement Bank guarantee - as per agreement Terms of Repayment: Working capital on demand, and term loan as per the repayment schedule mentioned in the sanction letter. Margin: Cash Credit - Raw Material 25%, Work in progress 30%, Finished Goods 25%, Receivable (Cover Period 60 Days) 40%, LC 10%, BG 10%. Extent and operation of charge: For working capital limit - first hypothecation charge on the entire current assets of the company. Extension of charge by way of equitable mortgage on entire fixed assets, land and building (present and to be acquired) For term loan - first charge on entire fixed assets (present and future) Extention of charge on entire current assets of the company. Other: The loan is guaranteed by all the directors.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Exclusive charge by way of hypothecation/mortgage over the stock, book debts, machinery and all other assets and immovable properties being lying and situated at factory land building at (1) Plot No. 34 to 44 (2) Plot No. 34 Part and Plot No. 39 to 43 (3) Plot No. 34 to 38 and Plot No. 39 to 43 and Plot No.43 (4) Plot No. 44 and 44a Situated At Industrial Estate, Ratlam (Madhya Pradesh)
Date of instrument modifying the charge	03.03.2009
Particulars of the present modification	The following modification has been done : 1) Working capital limit enhanced by Rs. 90.000 Millions 2) Term loan reduced by Rs. 43.500 Millions Total enhancement portion of Rs. 46.500 Millions and the total limit after enhancement is Rs. 691.000 Millions

CONTINGENT LIABILITIES

Contingent Liabilities not provided for in respect of bank guarantee given by bank of Rs. 90.958 Millions (Previous Year Rs. 94.451 Millions)

FIXED ASSETS

· Land

· Land Developments

· Factory Building

· Plant and Machinery

· Wire Division

· Plastic Division

· Cable Division

· Common Utility

· Electric Installations

· Office Equipments

· Furniture and Fixture

· Vehicle

· Computer

· Testing Material

· Power Plant

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.51.72
UK Pound	1	Rs.81.42
Euro	1	Rs.69.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		38

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.