MIRA INFORM REPORT

Report Date :

16.07.2012

IDENTIFICATION DETAILS

Name :	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED
Registered Office :	No.927, L. J. Avenue Commercial Complex, New Kantharaj URS Road, Saraswathipuram, Mysore – 570016, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.12.2004
Com. Reg. No.:	08-035177
Capital Investment / Paid-up Capital :	Rs.1573.048 Millions
CIN No.: [Company Identification No.]	U40109KA2004SGC035177
TAN No.: [Tax Deduction & Collection Account No.]	BLRC09323G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Distribution of Electricity.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 8610000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears to be huge accumulated losses recorded by the company. Trade relations are reported as fair. Business is active. Payments are reported to be slow. 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

LOCATIONS

Registered/ Corporate Office :	No.927, L. J. Avenue Commercial Complex, New Kantharaj URS Road, Saraswathipuram, Mysore – 570016, Karnataka, India
Tel. No.:	91-821-2417104/ 110/ 2417101
Fax No.:	91-821-2417107
E-Mail :	kpclcs@gmail.com mdpckl@gmail.com vvreddy1954@yahoo.com dcmys-ka@nic.in

DIRECTORS

(AS ON 31.12.2011)

Name :

Mr. Pinne Gowda Bore Gowda

Designation :

Managing Director

Address :

No.927, L J Avenue Commercial Complex, New Kantharaj Urs Road, Saraswathipuram, Mysore – 570016, Karnataka, India

Date of Birth/Age :

16.07.1952

Date of Appointment :

18.05.2011

DIN No.:

02266070

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	U85310KA2000SGC026951	RAJIV GANDHI RURAL HOUSING CORPORATION LIMITED	Director	23-06-08	23-06-08	28-07-09	Active	NO
2	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Managing director	18-05-11	18-05-11	-	Active	NO
3	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-06-11	17-06-11	-	Active	NO
4	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-06-11	17-06-11	21-10-11	Active	NO
5	U40101KA2007SGC043640	POWER COMPANY OF KARNATAKA LIMITED	Director	17-06-11	17-06-11	-	Active	NO
6	L15428KA1933SGC000142	MYSORE SUGAR COMPANY LIMITED	Additional director	18-06-11	18-06-11	-	Active	YES
7	U31101KA1975PLC002954	KARNATAKA VIDYUTH KARKHANE LIMITED	Director	30-07-11	30-07-11	-	Active	NO

Name :

Mr. Banjar Bhagya Naik

Designation :

Director (Technical)

Address :

No.927, L J Avenue Commercial Complex, New Kantharaj Urs Road, Saraswathipuram, Mysore – 570016, Karnataka, India

Date of Birth/Age :

01.06.1958

Date of Appointment :

01.06.2011

DIN No.:

03584567

Name :

Mr. Padam Kumar Garg

Designation :

Director

Address :

Kaveri Bhavan, Bangalore – 560009, Karnataka, India

Date of Birth/Age :

16.04.1961

Date of Appointment :

23.10.2010

DIN No.:

01959681

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	L15428KA1933SGC000142	MYSORE SUGAR COMPANY LIMITED	Managing director	25-05-05	25-05-05	11-02-08	Active	YES
2	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	23-10-10	23-10-10	-	Active	NO
3	U40109KA2002SGC030425	MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	23-10-10	23-10-10	29-12-11	Active	NO
4	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	23-10-10	23-10-10	-	Active	NO
5	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	23-10-10	23-10-10	-	Active	NO
6	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	23-10-10	23-10-10	-	Active	NO
7	L99999KA1936SGC000173	THE MYSORE PAPER MILLS LIMITED	Managing director	02-02-11	02-02-11	-	Active	NO

Name :

Mr. Panchakshri Sharanayya Vastrad

Designation :

Director

Address :

Mysore – 570005, Karnataka, India

Date of Birth/Age :

10.09.1956

Date of Appointment :

21.10.2011

DIN No.:

05221902

Name :

Mr. Venkata Siva Reddy

Designation :

Director

Address :

#75/3, 3^rd Cross, 5^th Phase, 5^th Block, BSK 3^rd Sage, Bangalore – 560085, Karnataka, India

Date of Birth/Age :

02.10.1954

Date of Appointment :

21.10.2011

DIN No.:

05124568

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U40109KA1999SGC025521	KARNATAKA POWER TRANSMISSION CORPORATION LIMITED	Director	21-10-11	21-10-11	Active	NO
2	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	21-10-11	21-10-11	Active	NO
3	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	21-10-11	21-10-11	Active	NO
4	U40109KA2002SGC030425	MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	21-10-11	21-10-11	Active	NO
5	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	21-10-11	21-10-11	Active	NO
6	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	21-10-11	21-10-11	Active	NO

Name :

Mr. Choulur Shama Rao

Designation :

Director

Address :

#343, 76^th Cross, Kumaraswami Layput, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

15.01.1954

Date of Appointment :

07.03.2009

DIN No.:

02680088

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U31101KA1975PLC002954	KARNATAKA VIDYUTH KARKHANE LIMITED	Director	02-02-09	02-02-09	Active	NO
2	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	07-03-09	07-03-09	Active	NO
3	U85110KA1985SGC006743	KARNATAKA STATE COIR DEVELOPMENT CORPORATION LIMITED	Director	13-10-09	13-10-09	Active	NO

Name :

Mr. Munivenkatappa Nagaraja

Designation :

Director

Address :

No.29/1, 2^nd Cross, Kanakana Palya, 4^th Block, Jayanagar, Bangalore – 560011, Karnataka, India

Date of Birth/Age :

08.10.1956

Date of Appointment :

08.10.2009

DIN No.:

02893520

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-12-08	17-12-08	Active	NO
2	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-12-08	17-12-08	Active	NO
3	U40109KA1999SGC025521	KARNATAKA POWER TRANSMISSION CORPORATION LIMITED	Director	17-12-08	17-12-08	Active	NO
4	U40109KA2002SGC030425	MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-12-08	17-12-08	Active	NO
5	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	08-10-09	08-10-09	Active	NO
6	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	06-09-11	06-09-11	Active	NO

Name :

Mr. Hanmumantha Raj Galappa

Designation :

Director

Address :

Mysore – 570007, Karnataka, India

Date of Birth/Age :

01.06.1959

Date of Appointment :

29.12.2011

DIN No.:

05210938

Name :

Mr. Naveen Kumar Mangalore

Designation :

Director

Address :

Cauvery Bhavan, Bangalore – 560009, Karnataka, India

Date of Birth/Age :

05.01.1956

Date of Appointment :

21.10.2011

DIN No.:

02801160

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U40101KA2007SGC043640	POWER COMPANY OF KARNATAKA LIMITED	Managing director	25-06-09	25-06-09	Active	NO
2	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	15-09-09	15-09-09	Active	NO
3	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	15-09-09	15-09-09	Active	NO
4	U75112KA1996PLC020020	KARNATAKA RENEWABLE ENERGY DEVELOPMENT LIMITED	Nominee director	28-04-10	28-04-10	Active	NO
5	U40102DL2007GOI157615	COASTAL TAMIL NADU POWER LIMITED	Nominee director	30-08-10	30-08-10	Active	NO
6	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-06-11	17-06-11	Active	NO
7	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	21-10-11	21-10-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2011)

Names of Shareholders	No. of Shares
Shamim Banu IAS	157304828
Pinne Gowda Bore Gowda	1
L V Nagarajan IAS	1
Panchakshri Sharanayya Vastrad	1
Banjar Bhagya Naik	1
R. Balasubramanian	1
Sreekantaiah Pratap Kumar	1
Total	157304834

(AS ON 30.09.2011)

Equity Share Breakup	Percentage of Holding
Category
Government (Central and State)	100.00

BUSINESS DETAILS

Line of Business :

Distribution of Electricity.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

21, V M Double Road, Kuvempunagar, Mysore – 570009, Karnataka, India

· State Bank of Mysore

· Canara Bank

· Syndicate Bank

· Vijaya Bank

· Corporation Bank

· IDBI Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans from Financial Institutions
Loans from Rural Electrification corporation (The loan availed by LPTCL and Transferred to CESC. Secured by hypothecation of all existing unencumbered movable Properties)	0.059	19.882
RAPDRP Scheme loan account (Secured by Lines)	352.537	0.000
Canara (Long term) Secured by Lines)	1400.000	582.232
Total	1752.596	602.114
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans from Financial Institutions/ GOK
Loan by GOK for the Energisation of Irrigation wells	13.980	16.310
APDRP – REC Loan payable to KPTCL	538.396	624.727
APDRP – GOK Loan Payable to KPTCL	257.444	278.896
Loan from Power Finance Corporation Limited	9.695	23.681
REC-RGGVY Scheme Loan Account	163.163	234.842
SDM (Short Term)	118.000	0.000
Canara (Short Term)	116.627	208.338
Disbursement Bank (Operative) Account – State Bank of Mysore Over Draft	0.000	77.542
Bank over Draft a/c IDBI 55	0.000	88.732
Bank over Draft a/c IDBI 82	0.000	27.286
Bank over Draft a/c IDBI 116	0.000	18.187
Bank over Draft a/c IDBI 134	0.000	27.103
Total	1217.305	1625.644

Banking Relations :
Auditors :
Name :	Ramesha M. Y. and Company Chartered Accountant
Address :	Ashraya, 271, Lakshmivilas, Devaraja Mohalla, Mysore – 570024, Karnataka, India
PAN No.:	AAEFR4202K

CAPITAL STRUCTURE

(AS ON 31.12.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
300000000	Equity Shares	Rs.10/- each	Rs.3000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
157304834	Equity Shares	Rs.10/- each	Rs.1573.048 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.10/- each	Rs.2500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
157304834	Equity Shares	Rs.10/- each	Rs.1573.048 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		1573.048	793.048	793.048
2] Share Application Money		250.000	780.000	0.000
3] Reserves & Surplus		3067.943	2726.551	128.288
4] (Accumulated Losses)		(2737.705)	(2851.544)	0.000
NETWORTH		2153.286	1448.055	921.336
LOAN FUNDS
1] Secured Loans		1752.596	602.114	238.293
2] Unsecured Loans		1217.305	1625.644	1909.613
TOTAL BORROWING		2969.901	2227.758	2147.906
DEFERRED TAX LIABILITIES		385.462	278.566	124.946
Service Line and Security Deposits		2829.482	2659.539	2510.666
TOTAL		8338.131	6613.918	5704.854
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7278.187	6346.127	5505.529
Capital work-in-progress		950.394	900.361	628.490
INVESTMENT		0.100	0.100	25.100
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	522.035	523.925	482.757
	Sundry Debtors	13441.605	11023.262	7754.993
	Cash & Bank Balances	751.711	598.659	995.437
	Other Current Assets	1712.334	1857.406	2452.474
	Loans & Advances	438.154	594.839	995.473
Total Current Assets		16865.839	14598.091	12681.134
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors and Other Current Liabilities	13936.308	12445.670	10161.212
	Provisions	2820.081	2785.091	2974.187
Total Current Liabilities		16756.389	15230.761	13135.399
Net Current Assets		109.450	(632.670)	(454.265)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		8338.131	6613.918	5704.854

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	17549.078	14176.827	11486.747
		Other Income	197.130	165.871	274.538
		TOTAL	17746.208	14342.698	11761.285
Less	EXPENSES
		Purchase of Power	14443.931	11334.465	10886.935
		Repaid and Maintenance	233.765	194.787	194.918
		Employee cost	2293.337	1703.935	1549.949
		Administrative and Other Expenses	265.273	275.995	234.366
		Other Debts	66.603	102.176	154.234
		TOTAL	17302.909	13611.358	13020.402
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		443.299	731.340	(1259.117)
Less	FINANCIAL EXPENSES		1319.108	862.687	672.648
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(875.809)	(131.347)	(1931.765)
Less/ Add	DEPRECIATION/ AMORTISATION		484.093	405.499	273.175
	Prior Period Charges or Credits		1580.638	(44.717)	33.475
	PROFIT BEFORE TAX		220.736	(581.563)	(2171.465)
Less	TAX		106.897	153.620	38.552
	PROFIT AFTER TAX		113.839	(735.183)	(2210.017)
	Earnings Per Share (Rs.)		0.72	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.64	(5.13)	(18.79)
Net Profit Margin (PBT/Sales)	(%)	1.26	(4.10)	(18.90)
Return on Total Assets (PBT/Total Assets}	(%)	0.91	(2.78)	(11.94)
Return on Investment (ROI) (PBT/Networth)		0.10	(0.40)	(2.36)
Debt Equity Ratio (Total Liability/Networth)		9.16	12.06	16.59
Current Ratio (Current Asset/Current Liability)		1.01	0.96	0.97

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

Bankers Charges Report as per Registry

Corporate identity number of the company	U40109KA2004SGC035177
Name of the company	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED
Address of the registered office or of the principal place of business in India of the company	No.927, L. J. Avenue Commercial Complex, New Kantharaj URS Road, Saraswathipuram, Mysore – 570016, Karnataka, India kpclcs@gmail.com
This form is for	Creation of charge
Type of charge	Book Debts
Particular of charge holder	· State Bank of India 21, V M Double Road, Kuvempunagar, Mysore – 570009, Karnataka, India kuvempunagar@sbm.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of loan cum hypothecation
Date of instrument Creating the charge	17.03.2012
Amount secured by the charge	Rs.1050.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 12.2% (1.7% above base rate of 10.5%) Terms of Repayment Repayable on demand the facility is available for 12 months Margin 10% for non fund based limits Extent and Operation of the charge First charge on receivables of the company
Short particulars of the property charged	First charge on receivables of the company

FIXED ASSETS

· Land – Freehold

· Land Held Under Lease

· Building

· Hydraulic Works

· Plant and Machinery

· Computer

· Lines Cable Networks

· Vehicles

· Furniture and Fixtures

· Office Equipments

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.51.42
UK Pound	1	Rs.81.93
Euro	1	Rs.67.67

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		29

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.