MIRA INFORM REPORT

Report Date :

24.08.2012

IDENTIFICATION DETAILS

Name :	GRASIM BHIWANI TEXTILES LIMITED
Registered Office :	409, Cotton Exchange Building, Kalbadevi Road, Mumbai - 400 002, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.09.2007
Com. Reg. No.:	11-173993
Capital Investment / Paid-up Capital :	Rs.200.500 millions
CIN No.: [Company Identification No.]	U17120MH2007PLC173993
PAN No.: [Permanent Account No.]	AACCG9347F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Textiles.
No. of Employees :	2750 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2580000
Status :	Satisfactory
Payment Behaviour :	Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Grasim Industries Limited. It is an established company having satisfactory track. Even though the sales turnover has increased during 2011, there appears slight dip in its profitability. However, trade relations are reported as decent. Business is active. Payments are reported to be correct and as per commitments. The company can be considered 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.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Suresh
Designation :	General Finance Manager
Contact No.:	91-1664-243136
Date :	24.08.2012

LOCATIONS

Registered Office :	409, Cotton Exchange Building, Kalbadevi Road, Mumbai - 400 002, Maharashtra, India
Tel. No.:	91-22-22404392
Fax No.:	91-22-22404392
E-Mail :	suresh.saraf@adityabirla.com robin.chawla@adityabirla.com roopesh.kumar@adityabirla.com
Website :	www.adityabirla.com www.grasimbhiwanitextiles.com
Location :	Owned
Factory :	Bhiwani Textiles Mills, Bhiwani – 127 021, Haryana, India
Tel. No.:	91-1664-242575, 243717
Marketing Office :	A-222, Okhla Phase I, New Delhi, India
Tel. No.:	91-11-40587080

DIRECTORS

As on 21.07.2011

Name :	Mr. Bhupendranath Vidyanath Bhargava
Designation :	Director
Address :	B/1201, Gulmohar Apartments, Ceaser Road, Amboli, Andheri (West), Mumbai - 400 056, Maharashtra, India
Date of Birth/Age :	16.04.1936
Qualification :	M.Com., LL.B.
Date of Appointment :	20.12.2007
DIN No.:	00001823
Name :	Mr. Vikram Dhondu Rao
Designation :	Director
Address :	No.395, 16^th Main II ‘A’ Cross, III Block, Koramangala, Bangalore – 560 034, Karnataka, India
Date of Birth/Age :	10.09.1950
Date of Appointment :	11.09.2007
DIN No.:	00017423
Name :	Mr. Adesh Kumar Gupta
Designation :	Director
Address :	701, Tagore Avenue, Tagore Road, Santacruz, Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	11.09.1956
Qualification :	B.Com., FCA, FCS
Date of Appointment :	21.04.2009
DIN No.:	00020403
Name :	Mr. Shailendra Kumar Jain
Designation :	Director
Address :	Grasim Staff Colony, Birlagram Nagda, Ujjain – 456 331, Madhya Pradesh, India
Date of Birth/Age :	04.12.1943
Qualification :	B.Sc., B.E. (Hons.), SM (MIT)
Date of Appointment :	11.09.2007
DIN No.:	00022454
Name :	Mr. Girish Mohanlal Dave
Designation :	Director
Address :	Dave and Girish and Company Advocates, 1^st Floor, Sethana Building, 55, Maharshi Karve Road, Marine Lines, Mumbai - 400 002, Maharashtra, India
Date of Birth/Age :	12.07.1938
Qualification :	M.Com., LL.B., CAIIB
Date of Appointment :	11.09.2007
DIN No.:	00036455
Name :	Mr. Pranab Barua
Designation :	Director and Business Head
Address :	D-1, Cedar Crest, 258, 10^th Main, Defence Colony, Indira Nagar, Bangalore - 560 038, Karnataka, India
Date of Birth/Age :	21.09.1952
Date of Appointment :	21.04.2009
DIN No.:	00230152

KEY EXECUTIVES

Name :	Mr. Surendra Kumar Sharma
Designation :	Chief Finance Officer and Manager
Address :	Rajshree Colony, BTM Road, Bhiwani – 127 021, Haryana, India
Date of Birth/Age :	03.01.1958
Date of Appointment :	17.04.2010
PAN No.:	AKLPS0276P
Name :	Mr. Roopesh Kumar
Designation :	Secretary
Address :	H. No.1791, Sector 13, Huda, Bhiwani – 127 021, Haryana, India
Date of Birth/Age :	09.02.1976
Date of Appointment :	16.03.2010
PAN No.:	ALYPK0842M
Name :	S. Krishnamoorthy
Designation :	President
Name :	Mr. Suresh
Designation :	General Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.07.2011

Names of Shareholders	No. of Shares
Grasim Industries Limited, India	20049400
Pavan Kumar Jain (Nominee of Grasim Industries Limited)	100
Sushil Agarwal (Nominee of Grasim Industries Limited)	100
Gopi Krishna Tulsian (Nominee of Grasim Industries Limited)	100
Ashok Malu (Nominee of Grasim Industries Limited) and Grasim Industries Limited	100
Adesh Kumar Gupta (Nominee of Grasim Industries Limited) and Grasim Industries Limited	100
Hemant Kadel (Nominee of Grasim Industries Limited) and Grasim Industries Limited	100
Total	20050000

As on 21.07.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Textiles.

Products :

Item Code No. (ITC Code)	55151130
Product Description	Man-Made Fibre Fabrics
Item Code No. (ITC Code)	55095100
Product Description	Man-Made Fibre Yarn

Brand Names :

• GRASIM
• GRAVIERA

Exports :

Products :

Textiles

Countries :

• Gulf Countries
• USA

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS: (AS ON 31.03.2010)

Particulars	Unit	Licensed/ Registered Capacity	Installed Capacity	Production (Quantity)
Man Made Fiber Fabrics	Mtr. (in 000’s)	600 Looms	148 Looms	17124.38
Man- Made Fiber Yarn	Kg. (in 000’s)	92500 Spindles	35806 Spindles	1977.19

Notes:

a) Registered capacities are those capacities for which registration granted pursuant to the schemes.

b) The Installed capacities are certified by the Management and accepted by the Auditors as correct being a technical matter.

c) Excluding captive consumption of 3449.74 kg 000 and Fabric 282.31 Mtr. 000

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

· Dockers

· United Color of Benetton

· Globus

· Blackberrys

· John Players

· Van Heusen

· Arrow

· Color Plus

· Westside

· Peter England

No. of Employees :

2750 (Approximately)

Bankers :

HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Working capital loans banks secured	0.867	1.455
Working capital loans others secured	(A) 636.280	650.000
Total	637.147	651.455

Notes:

(A) 1. Borrowings from banks are secured by Hypothecation of inventory and book debts of the Company.

2. Rupee Term Loan is Secured by first charge on moveable and immovable fixed assets both present and future at Bhiwani and corporate guarantee of the holding company.

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Deposits related parties unsecured	317.928	304.626
Total	317.928	304.626

Banking Relations :	--
Financial Institution :	Life Insurance Corporation of India, Yogakshema Jeevan Bima Marg, Mumbai - 400 021, Maharashtra, India
Auditors :
Name :	G.P. Kapadia and Company Chartered Accountants
Address :	Hamam House, Ambala Doshi Marg Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22654239 / 22654313/ 40186333
Fax No.:	91-22-22654256
E-Mail :	info@gpkco.com
Income-tax PAN of auditor or auditor's firm :	AAAFK1144P
Holding Company :	Grasim Industries Limited CIN No.: L17124MP1947PLC000410
Fellow Subsidiaries :	Sun God Trading and Investment Limited Samruddhi Swastik Trading and Investment Limited Harish Cement Limited Samruddhi Cement Limited (upto 30^th June, 2010) Ultratech Cement Limited Dakshin Cement Limited Ultratech Cement Lanka Private Limited UltraTech Cement Middle East Investment Limited Star Cement Co LLC, UAE Star Cement Co LLC, RAK, UAE Al Nakhla Crusher, LLC, Fujairah, UAE Arabian Cement Industry LLC, Abu Dhabi, UAE Arabian Gulf Cement Co WLL, Bahrain Emirates Power Company Limited, Bangladesh Emirates Cement Bangladesh Limited, Bangladesh

CAPITAL STRUCTURE

As on 21.07.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20050000	Equity Shares	Rs.10/- each	Rs.200.500 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		200.500	200.500	200.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		444.517	401.657	400.000
4] (Accumulated Losses)		0.000	0.000	(44.214)
NETWORTH		645.017	602.157	556.286
LOAN FUNDS
1] Secured Loans		637.147	651.455	705.152
2] Unsecured Loans		317.928	304.626	323.051
TOTAL BORROWING		955.075	956.081	1028.203
DEFERRED TAX LIABILITIES		17.462	0.000	0.000
TOTAL		1617.554	1558.238	1584.489
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		858.506	890.560	938.428
Capital work-in-progress		16.399	5.398	14.324
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	672.197	517.195	414.408
	Sundry Debtors	566.851	503.201	478.133
	Cash & Bank Balances	3.136	0.438	0.340
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	210.496	187.872	202.893
Total Current Assets		1452.680	1208.706	1095.774
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	325.283	180.516	109.848
	Other Current Liabilities	354.908	333.280	322.093
	Provisions	29.840	32.630	32.096
Total Current Liabilities		710.031	546.426	464.037
Net Current Assets		742.649	662.280	631.737
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1617.554	1558.238	1584.489

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	3356.128	2821.965	2529.569
		Other Income	92.093	68.482	90.003
		TOTAL (A)	3448.221	2890.447	2619.572
Less	EXPENSES
		Consumption materials changes inventories	1809.648	1468.246	2491.799
		Manufacturing service costs	697.250	527.063
		Employee related expenses	393.088	372.615
		Administrative selling other expenses	351.012	337.227
		TOTAL (B)	3250.998	2705.151	2491.799
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		197.223	185.296	127.773
Less	INTEREST FINANCIAL EXPENSES (D)		41.461	58.152	61.663
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		155.762	127.144	66.110
Less/ Add	DEPRECIATION/ AMORTISATION (F)		79.558	76.592	59.329
	PROFIT BEFORE TAX (E-F) (G)		76.204	50.552	6.781
Less	TAX (H)		33.343	4.678	4.161
	PROFIT AFTER TAX (G-H) (I)		42.861	45.874	2.620
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(44.214)	(46.834)
	BALANCE CARRIED TO THE B/S		NA	NA	(44.214)
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on F.O.B. basis	713.300	546.790	420.066
	TOTAL EARNINGS		713.300	546.790	420.066
	IMPORTS
		Raw Materials	NA	22.209	0.000
		Finished Goods	NA	0.000	0.000
		Spare Parts, Components & Coal	NA	30.333	25.759
		Capital Goods	NA	0.000	4.454
	TOTAL IMPORTS		NA	52.542	30.213
	Earnings Per Share (Rs.)		2.14	2.29	0.13

Particulars	31.03.2012
Sales Turnover (Approximately)	3800.000

Expected Sales (2012-2013): Rs.4150.000 millions

The above information has been parted by Mr. Suresh (General Finance Manager).

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.24	1.59	0.10
Net Profit Margin (PBT/Sales)	(%)	2.27	1.79	0.27
Return on Total Assets (PBT/Total Assets}	(%)	3.30	2.41	0.33
Return on Investment (ROI) (PBT/Networth)		11.81	0.08	0.01
Debt Equity Ratio (Total Liability/Networth)		2.58	2.50	0.83
Current Ratio (Current Asset/Current Liability)		2.05	2.21	2.36

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors
- Creditors due small micro enterprises	0.000	0.000	0.000
- Creditors due others	325.283	180.516	109.848
Total	325.283	180.516	109.848

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	Yes
10) Designation of contact person	Yes
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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
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	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
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

OPERATIONS:

During the year, the company achieved turnover of Rs.3273.700 millions as against Rs.2722.900 millions for the previous year. The Gross Profit was Rs.197.200 millions as against Rs.185.300 millions of previous year. After providing deferred income tax of Rs.17.400 millions, the company has achieved net profit of Rs.42.900 millions as against Rs.45.800 millions of previous year when there was no provision for deferred tax.

The company has achieved SA 8000 and OHSAS 18001 certification during the year. Six sigma projects have been undertaken for reduction in waste generation resulting into higher yarn recovery.

Two assembly winding machines were installed at Elegant Spinners Division to produce polyester viscose stretch yarn. This has helped to replace imported or outsourced yarn at higher price. An additional humidification plant was commissioned in weaving so as to reduce the temperature in sultex section. During the year, 10 old suzler looms were replaced by 6 new picanol looms.

In order to maintain sustainable growth, the company is augmenting its weaving capacity by outsourcing.

CAPITAL EXPENDITURE

During the year, the company spent Rs.61.700 millions as capital expenditure in different departments.

BUSINESS OUTLOOK

The Domestic OTC market in India grew by approx.12% in FY 2010-11. Lower cotton production and improved global GDP led to surge in cotton prices, triggering an increase in VSF/PSF prices. While spinners were able to pass on raw material price increase, fabric manufacturers struggled to pass on full impact.

In global business, there is more thrust on women’s wear and special blends for better margins.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Particulars	31.03.2011 Rs. In Millions
Claims not acknowledged as debts (includes demands in respect of Excise Duty, Cenvat Credit, Water Cess, Sales Tax/TAV, Electricity Duty etc.)
Excise Duty	146.485
Custom Duty	3.135
Stamp Duty	43.380

Bankers Charges Report as per Registry

Corporate identity number of the company	U17120MH2007PLC173993
Name of the company	GRASIM BHIWANI TEXTILES LIMITED
Address of the registered office or of the principal place of business in India of the company	409, Cotton Exchange Building, Kalbadevi Road, Mumbai - 400 002, Maharashtra, India E-Mail: roopesh.kumar@adityabirla.com
This form is for	Modification of charge
Charge identification number of the modified	10156496
Type of charge	Immovable Property
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013, Maharashtra, India E-Mail: vijay.gorasia@hdfcbank.com
Nature of instrument creating charge	Mortgage by deposit of title deeds of the Company's Immovable Properties as specified in the Memorandum of Entry dated 25.08.2010
Date of instrument Creating the charge	25.08.2010
Amount secured by the charge	Rs.267.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 10.25% per annum for a period of three years from the date of disbursement and thereafter, at such rate as may be mutually agreed to between the Borrower and the Bank. Terms of Repayment: i) 0-2 years :- Moratorium-Nil Repayment ii) 3^rd to 4^th year :- 15% of Loan in 8 equal quarterly installments from 01.10.2010 to 01.07.2012 (i.e. Rs.5.006 millions per installment) iii) 5^th to 6^th year :- 25% of loan in 8 equal quarterly installments from 01.10.2012 to 01.07.2014 (i.e. Rs.8.344 millions per installment) iv) 7^th to 10^th year:- 60% of loan in 16 equal quarterly installments from 01.10.2014 to 01.07.2018 (i.e. Rs.10.013 millions per installment) Margin: 1.25 times of the loan amount (as stipulated in the Loan Agreement) Extent and Operation of the charge: First pari passu charge on the immovable properties of the Company as specified in the Memorandum of Entry dated 25.08.2010
Short particulars of the property charged	First pari passu charge on the immovable properties of the Company as specified in the Memorandum of Entry dated 25.08.2010
Particulars of the present modification	Mortgage by deposit of title deeds of the Company's Immovable Properties as specified in the Memorandum of Entry dated 25.08.2010

FIXED ASSETS:

Tangible Assets

· Freehold Land

· Buildings

· Plant and Machinery

· Furniture and Fitting and Office Equipments

· Vehicles

Intangible Assets

· Software/ License

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.55.19
UK Pound	1	Rs.87.65
Euro	1	Rs.69.15

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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		48

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.