MIRA INFORM REPORT

Report Date :

17.10.2011

IDENTIFICATION DETAILS

Name :	JCR DRILLSOL PRIVATE LIMITED
Formerly Known As :	PALS INDUSTRIES LIMITED
Registered Office :	No. 20-B, 2^nd Phase, Peenya Industrial Area, Bangalore- 560 058, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.09.1984
Com. Reg. No.:	08-006370
Capital Investment / Paid-up Capital :	Rs.17.265 Millions
CIN No.: [Company Identification No.]	U29222KA1984PTC006370
TAN No.: [Tax Deduction & Collection Account No.]	BLRPO1046D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of DTH Button Bits Hammers, Drill Rigs and Spares and accessories (mining construction), etc
No. of Employees :	130 (30 in Office, 80 in Factory and 20 in Branches)

RATING & COMMENTS

	MIRA’s Rating :			B (33)
RATING			STATUS		PROPOSED CREDIT LINE
26-40		B	Capability to overcome financial difficulties seems comparatively below average.		Small

Maximum Credit Limit :	USD 155300
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. 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 some caution.

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

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Guru Dutt
Designation :	Chief Accountant
Date :	15.10.2011

LOCATIONS

Registered Office/Factory :	No. 20 - B, 2^nd Phase, Peenya Industrial Area, Bangalore- 560 058, Karnataka
Tel. No.:	91-80-28399038 - 39 / 28390165 / 28390287
Fax No.:	91-80-28399036
E-Mail :	jcrmining@rediffmail.com admin@jcrdrillsol.com gayathri@jcrdrillsol.com
Website :	www.jcrdrillsol.com
Area :	6000 sq. ft.
Location :	Owned
Branches :	Located At: · Indore, Madhya Pradesh, India · Bhilwara, Rajasthan, India · Tiruchengodu, Tamilnadu, India

DIRECTORS

AS ON 30.09.2010

Name :	Ms. Jaya Chandra Nallareddy
Designation :	Director
Address :	1324, 7th Main, 11 ‘A’ Cross, Mahalakshmi Puram, Bangalore – 560086, Karnataka, India
Age :	10.05.1964
Qualification :	B. E. Mechanical
Date of Appointment :	29.04.2003

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	U29222KA1984PTC006370	JCR DRILLSOL PRIVATE LIMITED	Managing director	01/04/2009	29/04/2003	-	Active	NO
2	U40105AP2007PTC053104	SRAVANI MINI HYDRO POWER PROJECTS PRIVATE LIMITED	Director	24/05/2007	24/05/2007	-	Strike off	NO
3	U40109AP2005PLC047008	S L S POWER CORPORATION LIMITED	Whole-time director	30/09/2008	02/01/2008	-	Active	NO
4	U74140WB2003PTC095719	DYNAMIC TIE-UP PRIVATE LIMITED	Director	23/09/2009	23/09/2009	-	Active	NO
5	U40108KA2009PTC051973	S L S SOLAR POWER PRIVATE LIMITED	Director	29/12/2009	29/12/2009	-	Active	NO
6	U50100WB2009PTC133716	JAYSHREE TRADECOM PRIVATE LIMITED	Director	28/04/2010	28/04/2010	-	Active	NO
7	U45208WB2008PTC130595	ASSOCIATED INFRAPROJECTS PRIVATE LIMITED	Director	28/04/2010	28/04/2010	-	Active	NO
8	U40101KA2011PTC058306	KASTURI POWERINFRA PRIVATE LIMITED	Director	25/04/2011	25/04/2011	-	Active	NO

Name :	Mrs. Gayathri Nallareddy
Designation :	Director
Address :	B 1, Gayathri Block, Palace Garden Apartments, Palace Cross Road, Bangalore – 560020, Karnataka, India
Age :	22.05.1970
Qualification :	Diploma in Computer Science
Date of Appointment :	29.04.2003

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	U29222KA1984PTC006370	JCR DRILLSOL PRIVATE LIMITED	Whole-time director	01/04/2009	29/04/2003	-	Active	NO
2	U50100WB2009PTC133716	JAYSHREE TRADECOM PRIVATE LIMITED	Director	28/04/2010	28/04/2010	-	Active	NO
3	U45208WB2008PTC130595	ASSOCIATED INFRAPROJECTS PRIVATE LIMITED	Director	24/05/2010	24/05/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. G H Sudarshan Reddy
Designation :	Accounts Manager
E-Mail :	sudhireddi@rediffmail.com
Name :	Mr. Guru Dutt
Designation :	Chief Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Mr. N. Jay Chandra Reddy	117250
Mrs. N. Gayatri Reddy	17940
Mr. Madhuri N	10466
Mr. N. Prabhakar Reddy	10466
Mr. K. Rajagopala Reddy	10466
Mr. Vijayalwmar	6060
Total	172648

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of DTH Button Bits Hammers, Drill Rigs and Spares and accessories (mining construction), etc
Products :	v DTH Button Bits v Hammers v JCR Bits v Hard Rock Drilling Hammers v Drill Bits v Down-The-Hole Hammers v Water Drill Rig Mounting v Bits and Jet Drill v Bits v Jet Drill v Drilling Tools v Mining v Exploration and Drilling Machinery v Panther Hammer v Thunder Hammer
Exports :
Products :	v Button Bets v DTH Hammers v Waterwell v Drill rings and Spares
Countries :	v Africa v Srilanka v Korea v Kenya v Australia v U.S.A v Sweden
Imports :
Products :	Steels
Countries :	China
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Suppliers :

v Eastern Steel Corporation, Kolkata, West Bengal, India

v Nichani Enterprises, Bangalore, Karnataka, India

v Goel Forgings, Mumbai, Maharashtra, India

v Musco, Mumbai, Maharashtra, India

v Ajaxx Engineering Private Limited

v Balaji Wines

v Stribeck (India) Private Limited

v SMT Limited

v Ispact Ghar

v Ankit Traders

v Eastern Steel Corporation

v Infocom Net Work

v Prova B

v Ravindu Toyota

v Muktha Controls

v Spar Engineering

v Innational Quality

v Steel Centre

Customers :

v Water Africa, Nairoli

v R. N. S. Enterprises, Hubli, West Bengal, India

v Techno India Construction, Mandya, India

v Ingoz International

v Shiva Belgaum

v Radha Engineering (India) Private Limited

v SMBS Borewells

v HT Borewells, Chitradurga

v Krishna Borewells

v Vinayaka Hardware

v Balaji Borewells

v Krishna Borewells

v Magavi Borewell

v Indo Africa Company Limited

v Joissam (Ghana) Limited

v Rani Fast Drillers

v RRS Enterprises

v Suchitra Sales Corporation

v Universal Rig Services – Athani

v Vinayaka Hardwares - Chuttur

No. of Employees :

130 (30 in Office, 80 in Factory and 20 in Branches)

Bankers :

Union Bank of India, Ssi Finance Branch, 43/1 First Floor, Industrial Suburb,Yeswanthpur, Tumkr Road, Bangalore - 560022, Karnataka, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Union Bank OCC A/c No.80012	59.494	41.097
Adhoc PC A/c No.72212 - Union Bank of India	0.000	20.000
Union Bank of India – Car Loan	1.179	1.421
HDFC Bank TL	0.705	1.000
Kotak Mahindra Bank TL	0.000	0.842
Letter of Credit - Union Bank of India	4.230	0.931
PC A/c No.502807220000006 - Union Bank of India	59.182	60.000
Term Loam – I – UBI	0.000	0.706
Term Loan – II – UBI	0.000	0.542
Union Bank OCC Account No.65810	8.532	9.569
Total	133.322	136.108

Unsecured Loans :	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Parasaram Nandual	1.182	1.187
JCR Mining Equipments – Partnership Firm	0.000	0.751
Mrs. N Madhavi	0.000	0.320
Total	1.182	2.258

Banking Relations :

--

Auditors :

Name :

G. Shantaram and Associates

Chartered Accountants

Address :

No. 221, Opposite BWSSB Office, 50^th Cross, III Block, Rajajinagar, Bangalore- 560010, Karnataka, India

Tel. No.:

91-80-23304258

Associates/Subsidiaries :

NIL

CAPITAL STRUCTURE

As on 29.09.2010

Authorized Capital :

No. of Shares	Type	Value	Amount
175000	Equity Shares	Rs. 100/- each	Rs. 17.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
172648	Equity Shares	Rs. 100/- each	Rs. 17.265 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		17.265	17.265	17.265
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21.560	15.708	14.627
4] (Accumulated Losses)		0.000	0.000	(2.897)
NETWORTH		38.825	32.973	28.996
LOAN FUNDS
1] Secured Loans		133.322	136.108	42.276
2] Unsecured Loans		1.182	2.258	2.270
TOTAL BORROWING		134.504	138.366	44.546
DEFERRED TAX LIABILITIES		0.793	0.898	0.960
TOTAL		174.122	172.237	74.502
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.942	22.390	21.872
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	97.638	83.429	51.478
	Sundry Debtors	85.711	37.222	19.590
	Cash & Bank Balances	1.692	16.169	0.217
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.407	56.966	7.130
Total Current Assets		219.448	193.786	78.415
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	66.218	43.240	25.289
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.050	0.699	0.496
Total Current Liabilities		67.268	43.939	25.785
Net Current Assets		152.180	149.847	52.630
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		174.122	172.237	74.502

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL	210.996	139.574	39.884
	EXPENSES
		TOTAL	204.198	139.375	NA
	PROFIT BEFORE TAX		6.798	4.615	4.171
Less	TAX		1.050	0.475	0.430
	PROFIT AFTER TAX		5.852	3.978	3.745
	Earnings Per Share (Rs.)		33.89	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.77	2.85	9.39
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.82	2.13	4.16
Return on Investment (ROI) (PBT/Networth)		0.18	0.14	0.14
Debt Equity Ratio (Total Liability/Networth)		5.20	5.53	2.42
Current Ratio (Current Asset/Current Liability)		3.26	4.41	3.04

LOCAL AGENCY FURTHER INFORMATION

Form 8:

Name of the company

PALS INDUSTRIES PRIVATE LIMITED

Presented By

MR. N. Jayachandra Reddy, Director

1) Date and description of instrument creating the change

1. Composite Hypothecation deed [SD – 20] dt. 03.03.2005

2. Supplementary Memorandum, Memorandum of Entry, extension of equitable mortgage already created dated. 02.03.2005

2) Amount secured by the charge/amount owing on the securities of charge

Cash Credit : Rs. 14 millions [with CP up to Rs. 1 million]

Packing Credit [under LC] : Rs. 1 million

FDBP [Under LC] : Rs. 1.500 million

Inland LC : Rs. 2.500 millions

[DA 60 days]

Term Loan – I [O/S Level] : Rs. 4.977 millions

Term Loan – II [O/S Level] : Rs. 12.913 millions

Total : Rs. 36.890 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

a. Hypothecation of all the goods, stocks, raw materials, plant, machinery, fixtures, implements, fittings and other installations, furniture, vehicles, computers and all other articles and things both present and future, whether installed or not, whether lying loose or in cases, at site or in transit or which may at any time hereafter during the continuance of this security be installed or lying loose or in cases or being in or upon or about the borrowers factory premises, warehouses and godowns at 20/B, II Phase, Peenya Industrial Area, Bangalore

b. Hypothecation of all tangible movable machineries, plant, machinery, fixtures, fittings, other installations, cranes, furniture, computers and other accessories, vehicles together with spares, tools and accessories, drilling/mining equipments, tools and all other articles lying on the premises 21/B, II Phase, Peenya Industrial Area, Bangalore

c. All the present and future book debts, outstanding monies, receivables, claims, bills, contracts, securities, investments, rights and assets of the company

d. Extension of equitable mortgage of the title deeds already deposited with the bank on 04.09.2003 of all that piece and parcel of vacant land or ground bearing plot no. 20/B, II Phase Peenya Industrial Area, Bangalore, in Sy Nos. 32, 33, 34 of Chokkasandra Village and Sy No. 41 of Nallakadaranahalli village of Yeshwanthpur Hobli and bounded as follows :

- North by plot no. 19 [A]

- South by plot no. 20 [A]

- East by KIADB Road

- West by Private Land

4) Gist of the terms and conditions and extent and operation of the charge.

a. Rate of Interest and margin for various limits are as follows :

Limits	Rate of Interest	Margin
Cash Credit	BPLR + 2%	25% for Stocks & 50% for Book Debts
Packing Credit	7%	25%
FDBP	7%	--
Inland LC	Usual	25%
Term Loan - I	BPLR 13%	Existing
Term Loan - II	-do-	Existing

b. Term Loan – I and II has been taken at their respective outstanding limits as on the date of the agreement and they are repayable as per the schedule.

5) Name and Address and description of the person entitled to the charge.

Union Bank of India

SSI Branch, Tumkur Road, Yeshwanthpur, Bangalore – 560022

6) Date and brief description of instrument modifying the charge

Composite hypothecation deed [SD – 20] dated 03.03.2005

Name of the company

PALS INDUSTRIES PRIVATE LIMITED

Presented By

MR. N. Jayachandra Reddy, Director

1) Date and description of instrument creating the change

Supplementary Memorandum [Equitable Mortgage], Memorandum of Entry, extension of equitable mortgage already created dated 02.03.2005

2) Amount secured by the charge/amount owing on the securities of charge

Cash Credit : Rs. 14 millions [with CP up to Rs. 1 million]

Packing Credit [under LC] : Rs. 1 million

FDBP [Under LC] : Rs. 1.500 million

Inland LC : Rs. 2.500 millions

[DA 60 days]

Term Loan – I [O/S Level] : Rs. 4.977 millions

Term Loan – II [O/S Level] : Rs. 12.913 millions

Total : Rs. 36.890 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

Extension of equitable mortgage of the title deeds already deposited with the bank on 04.09.2003 of all that piece and parcel of vacant land or ground bearing plot no. 20/B, II Phase Peenya Industrial Area, Bangalore, in Sy Nos. 32, 33, 34 of Chokkasandra Village and Sy No. 41 of Nallakadaranahalli village of Yeshwanthpur Hobli and bounded as follows :

- North by Plot No. 19 [A]

- South by Plot No. 20 [A]

- East by KIADB Road

- West by Private LAN

4) Gist of the terms and conditions and extent and operation of the charge.

a. Rate of Interest and margin for various limits are as follows :

Limits	Rate of Interest	Margin
Cash Credit	BPLR + 2%	25% for Stocks & 50% for Book Debts
Packing Credit	7%	25%
FDBP	7%	--
Inland LC	Usual	25%
Term Loan - I	BPLR + 3%	Existing
Term Loan - II	-do-	Existing

5) Name and Address and description of the person entitled to the charge.

Union Bank of India

SSI Branch, Tumkur Road, Yeshwanthpur, Bangalore – 560022

Corporate identity number of the company	U29222KA1984PTC006370
Name of the company	JCR DRILLSOL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	20-D, II Phase Pennyaindustrial Area, Bangalore, Karnataka – 560058, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Immovable Property Floating Charge
Particular of charge holder	UNION BANK OF INDIA
Nature of instrument creating charge	Composite Hypothecation Deed Memorandum of Deposit of tittle deed (Both the above pertain to the same Charge )
Date of instrument Creating the charge	12/05/2010
Amount secured by the charge	Rs.159.823 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC- BPLR+ 1.00% p.a., RPC. 9.25% p.a., Union Rent-14 % p.a. , Union Miles 12.50% p.a. Margin CC-25% on paid stocks 30% on Bookdebts, RPC-10% on paid stocks meant for Export, LC- 25% in the form of FDR/DRC. Bid Bond 25% in the form of FDR/DRC, ILC- 25% in the form of FDR/DRC, Union Rent- 25% future rent receivables, Union Miles 15% vehicle purchased Extent and Operation of the charge The charge shall operate to the extent of entire loan amount plus interest, cost, commission, expenses and other charges if any thereon. Others The Overall Limit of Rs.159.823 Millions Comprises of .CC Rs. 50.000 Millions, RPC Rs. 80.000 Millions, LG. Rs.5.000 Millions, Bidbond LG Rs. 5.000 Millions, ILC Rs.10.000 Millions, Union Rent Rs.8.623 Millions, Unionn Miles of Rs.1.200 Millions
Short particulars of the property charged	Hypothecation of First Charge on all tangible Movable Machineries, pant, Machinery fixtures, fittings, other installations, cranes, furniture, computers and other accessories, Vehicles , together with spares tools and all other articles ,movable goods and assets both present and future and including but but prejudice to generality of the foregoing words, all stocks of raw materials, work in progress, semi finished goods and finished goods such as hypothecation of drill rings, truck/tractor Mounted drilling Unit, Hammers,tolls, steel, etc packing materials, etc. stored/installed at premises 20-B, 2nd Phase Peenya Industrial Area Bangalore etc, or whereverelse and present and future Bookdebts, outstanding, monies receivables, claims, bills, contracts, engagement and securities First charge by way of eq.mortgage of iimmov. prop. situated at Plot No.20/B, Peenya II Phase Industrial Area, Situated in Sy Nos.32,33,34 of Chokkasandra Village and Sy No.41 of Nallakadaranahally Village, Yeewanthpur Hobli, Bangalore North Tq Measuring 8167 sq, mtrs and bounded by East by: KIADB Road West : Private Land North by: Plot No.19(A) South by Plot No.20(A)
Date of instrument modifying the charge	27/09/2008
Particulars of the present modification	By the above the amount secured by charge stands revised from Rs. 127.269 Millions to Rs. 159.823 Millions (All other terms and conditions remain unchanged)

TRADE REFERENCES:-

v CMS Enterprises, Indore

v Suchitra Sales Corporation, Rajkot

v Dev Enterprises, Raipur

Fixed Assets:

v Land

v Factory Building

v Plant & Machinery

v Electrical Fittings

v Office Equipments

v Fire Extinguisher

v Wells & Water Works

v Computer

v Furniture and Fixtures

v Vehicles

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.49.06
UK Pound	1	Rs.77.41
Euro	1	Rs.67.72

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	No
--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.