MIRA INFORM REPORT

Report Date :

17.04.2012

IDENTIFICATION DETAILS

Name :	HORIZON POLYMER ENGINEERING PRIVATE LIMITED
Formerly Known As :	RESISUTOLINE INDIA PRIVATE LIMITED
Registered Office :	C – 1, B, 1605, GIDC, Chhatral District Mehsana, Ahmedabad – 382729, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.06.1981
Com. Reg. No.:	04-004456
Capital Investment / Paid-up Capital :	Rs.9.600 Millions
CIN No.: [Company Identification No.]	U29259GJ1981PTC004456
TAN No.: [Tax Deduction & Collection Account No.]	MUMH07396E
PAN No.: [Permanent Account No.]	AAACM1385C
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturers of Corrosion Resistant Piping Products
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 170000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed 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 – 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 :	C – 1, B, 1605, GIDC, Chhatral District Mehsana, Ahmedabad – 382729, Gujarat, India
Tel. No.:	91-2764-233623
Fax No.:	91-2764-233624
E-Mail :	horizon@horizonpolymers.com ida@hs.co.in
Website :	http://www.horizonpolymer.com
Corporate Office :	204, Sumer Kendra, Pandurang Budhkar Marg, Worli, Mumbai -400018, India
Tel. No.:	91- 22 - 24965031-36 ( 6 lines )
Fax No.:	91- 22 - 24961073
E-Mail :	corphq@hs.co.in

DIRECTORS

As on 29.09.2011

Name :	Mr. Hasmukh Chinubhai Sheth
Designation :	Director
Address :	301/401, Om Vikas Tower, Behind Parsi Agiyari, Walkeshwar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	04.02.1939
Date of Appointment :	01.06.1990
DIN No.:	00010820

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	U65990MH1983PTC031537	ACCESSLINE INVESTMENT PRIVATE LIMITED	Director	09-12-83	09-12-83	01-10-10	Active	NO
2	U24110GJ1984PTC006875	AIROIL FLAREGAS PRIVATE LIMITED	Managing director	07-04-84	07-04-84	-	Active	NO
3	U29259GJ1981PTC004456	HORIZON POLYMER ENGINEERING PRIVATE LIMITED	Director	01-06-90	01-06-90	-	Active	NO
4	U24231GJ1991PTC016691	HIGH PERFORMANCE FLOURO POLYMERS PRIVATE LIMITED	Director	28-11-91	28-11-91	-	Strike off	NO
5	U29309GJ1987PTC009563	TLT ENGINEERING INDIA PRIVATE LIMITED	Director	01-05-08	27-01-93	-	Active	NO
6	L74140MH1983PLC029494	S P CAPITAL FINANCING LIMITED	Director	01-01-94	01-01-94	31-10-09	Active	NO
7	U28920MH1994PTC076877	KOERTING ENGINEERING PRIVATE LIMITED	Director	01-03-94	01-03-94	20-04-09	Active	NO
8	U29259GJ1979PTC003428	H S EQUIPMENT PRIVATE LIMITED	Director	29-09-95	29-09-95	01-11-10	Active	NO
9	U51900MH1997PTC107577	GAMUT PROPERTIES PRIVATE LIMITED	Director	22-09-97	22-09-97	-	Active	NO
10	U70100MH1998PTC113501	DUMAS BEACH ENCLAVE PRIVATE LIMITED	Director	11-02-98	11-02-98	-	Active	NO
11	U72200MH1997PTC106065	GAMUT TECHNOLOGIES PRIVATE LIMITED.	Director	15-05-00	15-05-00	08-09-09	Active	NO
12	U29299GJ1985PTC008218	HI-TECH ENGINEERING PRIVATE LIMITED	Director	30-04-01	30-04-01	-	Active	NO

Name :	Mr. Gautam Hasmukh Sheth
Designation :	Director
Address :	301/401, Om Vikas Tower, Behind Parsi Agiyari, Walkeshwar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	15.06.1968
Date of Appointment :	11.05.2005
DIN No.:	00011068

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	U29259GJ1979PTC003428	H S EQUIPMENT PRIVATE LIMITED	Director	30-01-90	30-01-90	-	Active	NO
2	U65990MH1983PTC031537	ACCESSLINE INVESTMENT PRIVATE LIMITED	Director	30-04-91	30-04-91	30-06-10	Active	NO
3	U29299GJ1985PTC008218	HI-TECH ENGINEERING PRIVATE LIMITED	Director	30-09-91	30-09-91	-	Active	NO
4	U28920MH1994PTC076877	KOERTING ENGINEERING PRIVATE LIMITED	Director	01-03-94	01-03-94	-	Active	NO
5	U24110GJ1984PTC006875	AIROIL FLAREGAS PRIVATE LIMITED	Director	01-09-95	01-09-95	-	Active	NO
6	U29309GJ1987PTC009563	TLT ENGINEERING INDIA PRIVATE LIMITED	Managing director	01-05-08	01-09-95	-	Active	NO
7	U72200MH1997PTC106065	GAMUT TECHNOLOGIES PRIVATE LIMITED.	Director	21-02-97	21-02-97	-	Active	NO
8	U29259GJ1981PTC004456	HORIZON POLYMER ENGINEERING PRIVATE LIMITED	Director	11-05-05	11-05-05	-	Active	NO
9	U70100MH1998PTC113501	DUMAS BEACH ENCLAVE PRIVATE LIMITED	Director	12-09-08	05-08-08	-	Active	NO

Name :	Mr. Peter Joseph Andrade
Designation :	Managing director
Address :	C-7, Sangam Cinema, Colaba, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	03.01.1947
Date of Appointment :	26.06.1981
DIN No.:	00014241

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	U29259GJ1981PTC004456	HORIZON POLYMER ENGINEERING PRIVATE LIMITED	Managing director	26-06-81	26-06-81	-	Active	NO
2	U24231GJ1991PTC016691	HIGH PERFORMANCE FLOURO POLYMERS PRIVATE LIMITED	Director	28-11-91	28-11-91	-	Strike off	NO
3	U24110GJ1984PTC006875	AIROIL FLAREGAS PRIVATE LIMITED	Director	01-04-92	01-04-92	-	Active	NO
4	U29309GJ1987PTC009563	TLT ENGINEERING INDIA PRIVATE LIMITED	Director	27-01-93	27-01-93	-	Active	NO
5	U28920MH1994PTC076877	KOERTING ENGINEERING PRIVATE LIMITED	Director	01-03-94	01-03-94	-	Active	NO
6	U65990MH1998PTC114061	ANDRADE HOLDINGS PRIVATE LIMITED	Director	19-03-98	19-03-98	-	Active	NO
7	U29259GJ1979PTC003428	H S EQUIPMENT PRIVATE LIMITED	Director	30-09-09	31-08-09	-	Active	NO

Name :	Ms. Kirti Kantilal Shah
Designation :	Director
Address :	Madhu Mahal Ground Floor, Shraddhanand Cross Road, King Circle, Marunga, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	02.08.1948
Date of Appointment :	01.01.1997
DIN No.:	00017393
Name :	Mr. Tom Gordon
Designation :	Director
Address :	91, Main Street, Branston, Burton Upon Trent, Staffordshrede143ey, United Kingdom
Date of Birth/Age :	22.02.1941
Date of Appointment :	15.02.2005
DIN No.:	00761511

KEY EXECUTIVES

Name :	Parekh Parekh and Associates
Designation :	Company Secretaries
Address :	A-60/1220,Azad Nagar, Veera Desai Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel No.:	91-22-26734304
Fax No.:	91-22-26734305
Experience :	parakhassociates@yahoo.co.uk

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Sheth C. Hasmukh	25026
Andrade Joseph Peter	20376
Ramaswamy Melanie	12
Andrade Claire Felicity	12
Shah K. Virendra	3480
Shah K. Kirti	4548
Shah V. Devi	786
Shah K. Rupa	786
Sanghavi M. Sheetal	7212
Sheth C. Hasmukh – HUF	2237
Sheth H. Gautam	22524
Sheth H. Ushaben	600
Andrade Nigel	8400
Sheth C. Hasmukh, Sheth G. Gautam and Andrade Joseph Peter	1
Total	96000

As on 29.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Corrosion Resistant Piping Products
Products :	· Lined Ball Valve · Lined Pipe Spools · PP/PVDF/PTFE/PFA/FEP Lined Fittings · PTFE Bellows and Expansions Joints · PP/PVDF/PFA/FEP Lined Sight Flow Indicators · PTFE Braided Hoses

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Actual Production
Pipes	Qty	20099
Fabrication Fitting	Qty	11183
Ball Valves	Qty	2245
Pumps and pump Spares	Qty	0
Bought Outs	Qty	894

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Oriental Bank of Commerce, Prabhadevi Branch, 1st Floor, Aman Chambers, Veer Savarkar Marg, Prabhadevi, Mumbai - 400025, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Banks - A1- Working Capital Loan (Against Hypothecation of eaw material, Work-in-capital, Finished Goods, Debtors and Hypothecation of Plant and machinery and Equitable mortgage of Land and Factory Building	13.002	6.390
Total	13.002	6.390
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
A. Loans - From Director and Shareholders	1.664	4.000
Total	1.664	4.000

Banking Relations :	--
Auditors :
Name :	S. P. Jain and Associated Chartered Accountants
Address :	F 13, Dadar Manish Market, Senapati Bapat Marg, Dadar [West], Mumbai – 400028, Maharashtra, India
Tel. No.:	91-22-24316201, 24316202
Fax No.:	91-22-24320931
E-Mail :	spjainassociates@gmail.com
PAN.:	AAVFS8167P

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
125000	Equity Shares	Rs. 100/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96000	Equity Shares	Rs. 100/- each	Rs. 9.600 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		9.600	9.600	9.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		33.269	29.609	26.261
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		42.869	39.209	35.861
LOAN FUNDS
1] Secured Loans		13.002	6.390	7.031
2] Unsecured Loans		1.664	4.000	5.550
TOTAL BORROWING		14.666	10.390	12.581
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		57.535	49.599	48.442
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.330	16.070	15.331
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.069	0.173	0.476
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	38.405	27.082	26.045
	Sundry Debtors	17.186	24.071	21.152
	Cash & Bank Balances	8.746	4.779	4.954
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.063	5.448	6.374
Total Current Assets		69.400	61.380	58.525
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.319	20.657	16.364
	Other Current Liabilities	5.885	5.515	5.735
	Provisions	2.060	1.852	3.791
Total Current Liabilities		28.264	28.024	25.890
Net Current Assets		41.136	33.356	32.635
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		57.535	49.599	48.442

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL (A)	122.675	111.394	117.244
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	110.948	100.307	95.343
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.727	11.087	21.902
Less	FINANCIAL EXPENSES (D)		2.371	1.806	3.525
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.356	9.281	18.377
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.413	2.305	2.447
	PROFIT BEFORE TAX (E-F) (G)		6.943	6.976	15.930
Less	TAX (I)		4.283	4.628	8.963
	PROFIT AFTER TAX (G-I) (J)		2.660	2.348	6.967
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		19.078	16.730	9.763
	BALANCE CARRIED TO THE B/S		21.738	19.078	16.730
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	15.722	23.879	27.405
		Commission Earnings	5.049	3.109	10.311
	TOTAL EARNINGS		20.771	26.988	37.716
	Earnings Per Share (Rs.)		49-.78	46.53	98.61

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.17	2.11	5.94
Return on Total Assets (PBT/Total Assets}	(%)	8.10	9.01	21.57
Return on Investment (ROI) (PBT/Networth)		0.16	0.18	0.44
Debt Equity Ratio (Total Liability/Networth)		1.00	0.98	1.07
Current Ratio (Current Asset/Current Liability)		2.46	2.19	2.26

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
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last two 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	--
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

TURNOVER AND SALES AND FUTURE:

Keeping the economic situation prevalent during the year, the Performance was satisfactory The turnover during the year increased to Rs.114.427 Millions as against Rs 105.430 Millions in the previous year and achieved a net profit of Rs.7.114 Millions as against a net profit of Rs.6.976 Millions In me previous year There is marginal increase in Profits for the year Considering positive economic situation in the economy and Export demand management is hoping to achieve better results in the current financial year.

Contingent Liability:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
On Counter Guarantee given by bank	4.134	7.018
Sales Tax CST/GST	0.000	0.081

Bankers Charges Report as per Registry

Corporate identity number of the company	U29259GJ1981PTC004456
Name of the company	HORIZON POLYMER ENGINEERING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C – 1, B, 1605, GIDC, Chhatral District Mehsana, Ahmedabad – 382729, Gujarat, India E-mail : ida@hs.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80014783
Type of charge	Any interest in immovable property Book debts Movable property (not being pledge) Others (Stock, Receivables, Fixed assets Etc.)
Particular of charge holder	Oriental Bank of Commerce, Prabhadevi Branch, 1st Floor, Aman Chambers, Veer Savarkar Marg, Prabhadevi, Mumbai - 400025, Maharashtra, India E-mail : emailroc@rediffmail.com
Nature of instrument creating charge	1) Supplemental Agreement to secure Credit / Loan Facilities 2) No Instrument - Extension of Deposit of Title Deeds (Both the above Documents Constitute a single Charge)
Date of instrument Creating the charge	10.02.2012
Amount secured by the charge	Rs.48.400 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest rate or such other rate as agreed between the Borrower Company and the Bank from time to time. Penal Interest 2% per annum in addition to agreed rate in case of default. Terms of Repayment Repayment, as agreed between the Borrower Company and the Bank from time to time. Margin Margin rate, as agreed between the Borrower Company and the Bank from time to time. Extent and Operation of the charge At the request of the Borrower Company the Bank has enhanced overall Banking Limits upto Rs.48.400 Millions against Hypothecation of stocks, receivable, Document of title to goods in case of L/C on DP basis, goods etc and Mortgage of the lease hold rights over the property situated at Plot no.1605 and 1618,1606,1619 GIDC Industrial Area, Kalol, Mehasana, Gujarat, India Total Charge Stands Modified upto Rs. 48.400 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation charged on company's entire stock and receivables,Document of title to goods in case of L/C on DP basis, Goods in case of L/C in D.A. Basis, Entire plant and machinery, Fixed Assets of the company. Mortgage of the lease hold rights over the immoveable property situated at Plot no. 1605 and 1618,1606,1619 GIDC Ind. Area, Kalol, Mehasana, Gujarat.
Particulars of the present modification	At the request of the Borrower Company the Bank has enhanced overall Banking Limits upto Rs.48.400 Millions against Hypothecation of stocks, receivable, Document of title to goods in case of L/C on DP basis, goods etc and Mortgage of the lease hold rights over the property situated at Plot no.1605 and 1618,1606,1619 GIDC Industrial Area, Kalol, Mehasana, Gujarat, India Total Charge Stands Modified upto Rs. 48.400 Millions.

Fixed Assets:

· Land

· Office Building

· Factory Building

· Plant and Machinery

· Computers

· Motor Vehicles

· 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.51.66
UK Pound	1	Rs.81.80
Euro	1	Rs.67.18

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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		44

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.