MIRA INFORM REPORT

Report Date :

25.10.2011

IDENTIFICATION DETAILS

Name :	LANCER LASER TECH LIMITED (w.e.f. 29.04.2008)
Formerly Known As :	LANCER LASER TECH PRIVATE LIMITED
Registered Office :	17/B, Kamladeep Industrial Estate, Opposite New Arvind Mills, Khatraj, Kalol-382721, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.08.1999
Com. Reg. No.:	04-36446
Capital Investment / Paid-up Capital :	Rs.45.000 Millions
CIN No.: [Company Identification No.]	U28930GJ1999PLC036446
TAN No.: [Tax Deduction & Collection Account No.]	AHML00400B/ AHML00150D
PAN No.: [Permanent Account No.]	AAACL5061F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Machinery parts and sheet metal components.
No. of Employees:	36 (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 291076
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 (GENERAL DETAILS)

Name :	Mr. Dinesh
Designation :	Accounts Department
Date :	24.10.2011

LOCATIONS

Registered Office/ Factory :	17/B, Kamladeep Industrial Estate, Opposite New Arvind Mills, Khatraj, Kalol-382721, Gujarat, India
Tel. No.:	91-2764-281544 to 47/ 281350
Mobile No.:	91-9825065253 (Mr. Dhiraj Patel)
Fax No.:	91-2764-281433
E-Mail :	info@lancerlaser.com bjt_asso@yahoo.co.in
Website :	http://www.lancerlaser.com
Factory:	Chhatral Mehsona highway, Opposite Sandek Laminations, Raipur, India

DIRECTORS

AS ON 09.05.2011

Name :	Mr. Nitin Mangaldas Patel
Designation :	Director
Address :	21, Netra Bunglow, Near Seema Saurabh Society, Memnagar, Ahmedabad, Gujarat, India
Date of Birth/Age :	25.02.1973
Date of Appointment :	20.08.1999

Other Directorship:

Top of Form

Bottom of Form

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	U28930GJ1999PLC036446	LANCER LASER TECH LIMITED	Director	28/08/1999	28/08/1999	-	Active	NO

Name :	Mr. Dhirajkumar Narshibhai Patel
Designation :	Director
Address :	20, Samruddhi 1 Bunglow, Opposite Saij Anand Bunglow, Shilaj Road, Thaltej, Ahmedabad-380054, Gujarat, India
Date of Birth/Age :	08.12.1973
Date of Appointment :	20.08.1999

Other Directorship:

Top of Form

Bottom of Form

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	U28930GJ1999PLC036446	LANCER LASER TECH LIMITED	Director	28/08/1999	28/08/1999	-	Active	NO

Name :	Mr. Dhyabhai Bechrdas Patel
Designation :	Director
Address :	66, Alok Bunglow, Drive in Road, Thaltej, Ahmedabad, Gujarat, India
Date of Appointment :	01.04.2009

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	U28930GJ1999PLC036446	LANCER LASER TECH LIMITED	Director	01/04/2009	01/04/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Dinesh
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 09.05.2011

Names of Shareholders	No. of Shares
Nitinbhai M Patel	530400
Jashodaben N Patel	104000
Bhavanben N Patel	191100
Dhiraj N Patel	640400
Jagrutiben Patel	78500
Narshibhai B Patel	56600
Kailashben N Patel	98700
Sarojben D Patel	156280
Dahyabhai B Patel	232500
Hitesh D Patel	130000
Rashmiben D Patel	51000
Shubhadraben D Patel	456500
Mittal M Patel	30000
Dahyabhai B Patel HUF	475500
Dipesh D Patel	80000
Nitin M Patel HUF	624500
Dhiraj N Patel HUF	266820
Harshad N Patel	118200
Krishna H Patel	54500
Geometry Metal Tech Private Limited, Gujarat, India	60000
Narshibhai B Patel HUF	49000
Harshad N Patel HUF	15500
Total	4500000

Equity Share Breakup (Percentage of Total Equity)

AS ON 09.05.2011

Category	Percentage
Bodies Corporate	1.00
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Machinery parts and sheet metal components.

Products :

Product Descriptions	ITC Code
Sheet Metal Components and Fabrication/ Engineering	84879000

Exports :

Products :

Machinery Parts and Sheet Metal Components

Countries :

US

Imports :

Products :

Raw Materials

Countries :

Italy

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Actual Production
Machinery Parts	Nos	286190

GENERAL INFORMATION

Suppliers :

· Wholesalers

· Jindal Stainless Limited

Customers :

KHS Machinery Private Limited

No. of Employees :

36 (Approximately)

Bankers :

· Corporation Bank, Navrangpura Branch, Ahmedabad-380009, Gujarat, India

· Dena Bank, Mesona High Branch

Facilities :

CC – Rs.45.000 Millions

Secured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
Term Loan from Corporation Bank (Secured by way of mortgage factory land and building and hypothecation of plant and machinery of the company and personal guarantee of the directors)	58.188	4.196
Cash Credit from Corporation Bank (Secured by way of hypothecation of book debts and stocks )	36.494	32.127
Vehicles loans- secured by way of hypothecation of vehicles_	2.194	0.974
Total	96.876	37.297
Unsecured loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
From Directors and Relatives	6.844	12.989
From other Banks	6.178	0.053
Deferred payment of sales tax	4.245	6.535
Total	17.267	19.577

Banking Relations :	--
Auditors :
Name :	B.J. Trivedi and Associates Chartered Accountant
Address :	34, Raj Ratna Complex, Oppsite Municipal School, Navrangpura, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-26426317
Fax No.:	91-79-26445640
E-Mail :	bjt_asso@yahoo.co.in
Associates:	Geometry Metal Tech Private Limited Umiya Agro Industries

CAPITAL STRUCTURE

AS ON 31.03.2011

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
* 4500000	Equity Shares	Rs. 10/- each	Rs.45.000Millions

* Includes issue of 1550000 equity shares as fully paid up bonus shares on 01.06.2010

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011
Sales Turnover (Approximately)	240.00

The above information has been parted by Mr. Dinesh (Accounts Manager)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		45.000	15.500	15.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.769	42.230	37.466
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		72.769	57.730	52.966
LOAN FUNDS
1] Secured Loans		96.877	37.297	32.347
2] Unsecured Loans		17.267	19.577	13.632
TOTAL BORROWING		114.144	56.874	45.979
DEFERRED TAX LIABILITIES		13.849	9.903	8.419
TOTAL		200.762	124.507	107.364
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		199.330	79.704	76.201
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.010	0.010	0.010
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.065	32.479	20.755
	Sundry Debtors	39.698	44.377	28.471
	Cash & Bank Balances	3.710	2.412	2.038
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.706	4.560	4.232
Total Current Assets		95.179	83.828	55.496
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.613	36.551	21.726
	Other Current Liabilities	57.265	1.991	1.804
	Provisions	0.000	0.662	0.813
Total Current Liabilities		93.878	39.204	24.343
Net Current Assets		1.301	44.624	31.153
MISCELLANEOUS EXPENSES		0.121	0.169	0.000
TOTAL		200.762	124.507	107.364

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	203.260	148.632	113.063
		Job Charges Income	17.545	7.616	2.525
		Interest Subsidy	0.000	0.000	0.357
		Other Income	1.767	0.232	0.079
		TOTAL (A)	222.572	156.480	116.024
Less	EXPENSES
		Raw Material Consumption	160.559	96.402	76.430
		Manufacturing Expenses	22.091	14.168	10.701
		Administrative Expenses	20.389	9.329	9.111
		Selling and Distribution Expenses	7.990	4.786	5.724
		Variation in Stock	[19.551]	6.255	[5.450]
		TOTAL (B)	191.478	130.940	96.516
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		31.094	25.540	19.508
Less	FINANCIAL EXPENSES (D)		10.065	6.245	5.220
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.029	19.295	14.288
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.702	4.886	4.004
	PROFIT BEFORE TAX (E-F) (G)		15.327	14.409	10.284
Less	TAX (I)		7.058	4.468	3.619
	PROFIT AFTER TAX (G-I) (J)		8.269	9.941	6.665
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		31.230	26.466	21.617
Less	APPROPRIATIONS
		Dividend	6.200	4.650	1.550
		Tax on Dividend	1.030	0.527	0.266
	BALANCE CARRIED TO THE B/S		32.269	31.230	26.466
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	Nil	Nil	0.218
	TOTAL EARNINGS		Nil	Nil	0.218
	IMPORTS
		Raw Materials	42.524	13.407	7.380
	TOTAL IMPORTS		42.524	13.407	7.380
	Earnings Per Share (Rs.)		1.84	6.41	4.32

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.72	6.35	5.74
Net Profit Margin (PBT/Sales)	(%)	7.54	9.69	9.10
Return on Total Assets (PBT/Total Assets}	(%)	5.20	8.81	7.81
Return on Investment (ROI) (PBT/Networth)		0.21	0.25	0.19
Debt Equity Ratio (Total Liability/Networth)		2.86	1.66	1.33
Current Ratio (Current Asset/Current Liability)		1.01	2.14	2.28

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

Note:

The Registered office of the company has been shifted from C-8, Milap Appartment 3/ Hchatarbhuj Hospital, Shahibag, Ahmedabad, Gujrat, India to present address w.e.f. 31.12.2007

Trade References:

· KHS Machinery Private Limited

Future Outlook:

The company has achieved significant growth during the last financial year. On a standalone basis, the company achieved total income of Rs. 156.248 Millions during the year consideration as against the total of Rs. 115.548 Millions earlier year, representing an increase of almost 35%.

As the company has already established its trade name in the market at global level in view of the global economic scenario and proved its capability. As a strategic objective, the company has been focusing to global opportunity in the market and they are planning to set up full fledged state of art technology, a total engineering fabrication job shop solution with all respect and pursing expansion/ enhancement of facility to provide high tech fabrication solution in coming year as a part of business strategy by increasing value chain with large infrastructure facility.

By level best efforts, they are on a verge of proving track record to deliver the service to the customers.

The company expects very bright future with great avenues of the business by spreading its horizon.

Bankers Charges Report as per Registry

Corporate identity number of the company	U28930GJ1999PLC036446
Name of the company	LANCER LASER TECH LIMITED
Address of the registered office or of the principal place of business in India of the company	17/B, Kamladeep Industrial Estate, Opposite New Arvind Mills, Khatraj, Kalol-382721, Gujarat, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	DENA BANK
Nature of instrument creating charge	Agreement of Hypothecation (Goods, Book Debts and Other Movable Assets to secure multiple facilities) dated 29/09/2011
Date of instrument Creating the charge	29.09.2011
Amount secured by the charge	212.300 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CCH: BR (10.70%) + 6.55% - 2.75% i.e. 14.50% p.a. TL - I: BR (10.70%) + 6.55% +0.50% - 2.75% i.e. 15.00% p.a. TL-II : BR (10.70%) + 6.55% +0.50% - 2.75% i.e. 15.00% p.a (ROI subject to change) Terms of Repayment CC- running account payable on demand subject to annual renewal TL - I and TL - II: Repayable in 7 years with moratorium period of 6 months and repayment start from last quarter of FY 2011-12 & to be made in 28 quarterly installments of Rs. 4.875 Millions and Rs.0.536 Million respectively Margin CC: Raw Material - 25%,Finished Goods - 25%,Working Progress and stores and spares - 33.1/3%, Book debts - 50% TL - I: 28.16% TL - II: 40% L/C: 20% Extent and Operation of the charge Principal amount of loan / credit facilities as aforesaid together with interest, interest - tax thereon, as applicable, costs, charges, expenses, discount, commission and other moneys due to the bank as specifically mentioned in the Agreement of Hypothecation dated 29/09/2011
Short particulars of the property charged	primary by way of hypothecation by way of first charge on all the Borrower's goods and/or book-debts and/or movables and other assets as per Agreement of Hypothecation dated 29/09/2011 All stocks raw materials / goods in process and finished goods such as metal sheets , fabricated sheets etc, consumable stores and spares, packing materials etc both present and future as per agreement All the tangible movable properties and assets of the borrower of whatsoever nature including plant, machinery, tools, accessories lying at 17B, 22B Khatraj and Rajpur Highway both present and future All the present and future book-debts, outstanding, moneys, receivables, claims, bills, rights to or in movable properties and movable assets which are now due, owing or payable or belonging to borrower

Corporate identity number of the company	U28930GJ1999PLC036446
Name of the company	LANCER LASER TECH LIMITED
Address of the registered office or of the principal place of business in India of the company	17/B, Kamladeep Industrial Estate, Opposite New Arvind Mills, Khatraj, Kalol-382721, Gujarat, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	90110808
Type of charge	Immovable Property
Particular of charge holder	Corporation Bank, Navrangpura Branch, Ahmedabad-380009, Gujarat, India
Nature of instrument creating charge	Common Joint Memorandum of Agreement for Equitable Mortgage cum Extension Dated 12.01.2010
Date of instrument Creating the charge	12.01.2010
Amount secured by the charge	Rs. 46.205 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest COBAR + 1% i.e. 13% p.a. subject to revision on cash credit. COBAR + 1.5% i.e. 13.50% p.a. subject to revision from time to time on both term loan at prescribed rate of bank on L/C facility Terms of Repayment Repayable on demand subject to annual renewal in case of CC Prescribed installments in case of Term Loan 1 of Rs. 0.677 Million 15 quarterly installments -14 installment sof Rs. 0.700 Million each and last of Rs. 0.200 Million n case of Term Loan 2 of Rs. 5.528 Millions Margin Stock- 30% Book Debts- 50% Extent and Operation of the charge Revised limit of Rs. 46.205 Millions agreed to be granted with all interest, cost, charges and other expenses as speciality mentioned in common Joint Memorandum of Agreement for Equitable Mortgage cum Extenstion dated 12.01.2010
Short particulars of the property charged	Immovable property of factory land and building at Plot No. 17/B, admeasuring 1730 sq. yards in Kamaldeep Industrial Estate part of consolidated plot No. 65, situated in village Khatraj, Kalol Mehsana. Immovable property of factory land and building at Plot No. 22/B, admeasuring 2176 sq . yards in Kamaldeep Industrial Estate part of consolidated plot No. 65, situated in village Khatraj, Kalol, Mehnsa Bunglow No. 66 admeasuring 208 sq. mtrs. in Snehkunj CHS Limited on land bearing survey No. 66 T.P scheme no. 1, 2 Final plot No. 12, of Mouje Thaltej, District Ahmedabad pertaining to Dahyabhai B Patel N.A. Land admeasuring 9763 sq.mtrs bearing block no. 1053 paiki sub plot no. 1 and Construction thereon admeasuring 311 sq.yards situated in Taluka Kalol, Chhatral, pertaining to Narshinhbhai B Patel
Date of instrument modifying the charge	01.09.2009
Particulars of the present modification	Originally charge was created by memorandum of agreement dated 07.10.2004 to the extent of Rs. 11.800 Millions and subsequently modified on 14.02.2005 to Rs. 23.700 Millions to again modified to Rs. 46.500 Millions on 16.07.2007 by way of continuity letters for extension of mortgage and again modified to Rs. 39.175 Millions by Joint EM on 01.09.2009, which is now stands for modification to the extent of Rs. 46.205 Millions by executing, Common Joint Memorandum of Agreement for Equitable Mortgage cum Extension Dated 12.01.2010

Fixed Assets:

· Land

· Factory Building

· Plant and Machinery

· Electric Equipments

· Furniture and Fixture

· Computers

· Office Equipments

· Vehicles

· Computer Software

CMT REPORT (Corruption, Money Laundering and 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.49.87
UK Pound	1	Rs.79.72
Euro	1	Rs.69.52

SCORE and RATING EXPLANATIONS

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