MIRA INFORM REPORT

Report Date :

03.12.2012

IDENTIFICATION DETAILS

Name :	SMT MACHINES INDIA LIMITED
Registered Office :	Motia Khanmandi Gobindgarh, District Fatehgarh Sahib - 147301, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.06.1992
Com. Reg. No.:	012340
Capital Investment / Paid-up Capital :	Rs.10.315 Millions
CIN No.: [Company Identification No.]	U29219PB1992PLC012340
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Hot Rolling Mill Machinery, Rolling Mill Equipments and Spares etc.
No. of Employees :	200 (Approximately) (In Office + In Factory)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 590000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The latest financial of the company are not made available. As per pervious years we found that the profits have dipped over earlier years. Mr. Raman Mittal, the Director has provided all details to us. The financial are not verified. However, trade relations are reported as fair. Business is active. Payments terms are unknown in absence of latest financials. 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	LONG TERM RATING : CRISIL B+
Rating Explanation	High risk of default
Date	29.05.2012

Rating Agency Name	CRISIL
Rating	SHORT TERM RATING : CRISIL A4
Rating Explanation	Minimal degree of safety and low credit risk
Date	29.05.2012

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. Raman Mittal
Designation :	Director
Contact No.:	91-9357755555
Date :	23.11.2012

LOCATIONS

Registered Office :	Motia Khanmandi Gobindgarh, District Fatehgarh Sahib - 147301, Punjab, India
Tel. No.:	Not Available
Mobile No.:	91-9357755555 (Mr. Raman Mittal)
Fax No.:	Not Available
E-Mail :	vickyvishal@rediffmail.com info@smtmachinesindia.org
Website :	www.smtmachinesindia.org
Area :	500 Sq. Ft.
Location :	Owned
Factory :	Post Box No.71, G. T. Road, Near Industrial Focal Point, Mandi Gobindgarh – 147301, Punjab, India
Tel. No.:	91-1765-256337/257742
Fax No.:	91-1765-255199
Area :	90000 Sq. Ft.
Location :	Owned

DIRECTORS

As on 16.09.2011

Name :	Mr. Raman Mittal
Designation :	Whole-time director
Address :	Ward No. 5, Shastri Nagar, Saint Farid Public School Road, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Appointment :	27.06.2006
DIN No.:	00639724

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29219PB1992PLC012340	SMT MACHINES INDIA LIMITED	Whole-time director	27/06/2006	27/06/2006	-	Active	NO
2	U45209PB2010PTC033888	SMT INFRASTRUCTURE PRIVATE LIMITED	Director	06/05/2010	06/05/2010	-	Active	NO
3	U27105PB2003PTC025897	HARI ISPAT PRIVATE LIMITED	Additional director	02/09/2011	02/09/2011	-	Active	NO
4	U27104HP2002PTC025436	AAR AAR CASTINGS PRIVATE LIMITED	Director	29/09/2012	01/12/2011	-	Active	NO

Name :	Ms. Laxmi Mittal
Designation :	Director
Address :	Ward No. 5, Shastri Nagar, Saint Farid Public School Road, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Appointment :	28.11.1994
DIN No.:	01845975

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29219PB1992PLC012340	SMT MACHINES INDIA LIMITED	Director	28/11/1994	28/11/1994	-	Active	NO
2	U27105PB2003PTC025897	HARI ISPAT PRIVATE LIMITED	Additional director	16/08/2011	16/08/2011	-	Active	NO

Name :	Mr. Surinder Kumar Mittal
Designation :	Managing director
Address :	Ward No. 5, Shastri Nagar, Saint Farid Public School Road, Mandi Gobindgarh, Fatehgarh Sahib – 147301, Punjab, India
Date of Appointment :	27.06.2006
DIN No.:	01846096

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29199PB1994PTC015036	SMT MACHINES PRIVATE LIMITED	Director	31/05/2005	31/05/2005	-	Active	NO
2	U29219PB1992PLC012340	SMT MACHINES INDIA LIMITED	Managing director	27/06/2006	27/06/2006	-	Active	NO
3	U45209PB2010PTC033888	SMT INFRASTRUCTURE PRIVATE LIMITED	Director	06/05/2010	06/05/2010	-	Active	NO
4	U27105PB2003PTC025897	HARI ISPAT PRIVATE LIMITED	Additional director	16/08/2011	16/08/2011	-	Active	NO
5	U27104HP2002PTC025436	AAR AAR CASTINGS PRIVATE LIMITED	Director	29/09/2011	21/09/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.09.2011

Names of Shareholders	No. of Shares
Surinder Kumar Mittal	453475
Jai Prakash Goyal	1000
Surinder Kumar Mittal (HUF)	4000
Anita Goyal	1000
Luxmi Mittal	93600
Aman Mittal (Minor)	9225
Raman Mittal	1600
Eshani Mittal	2900
SMT Machines Private Limited, India	464750
Total	1031550

Equity Share Break up (Percentage of Total Equity)

As on 16.09.2011

Category	Percentage
Bodies corporate	45.05
Directors or relatives of directors	54.95
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Hot Rolling Mill Machinery, Rolling Mill Equipments and Spares etc.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Complete Rolling Mill Plant	8455 10
Rolling Mill Parts	8455 10
Gear Box, Fly Wheel etc.	8488 00

Exports :

Products :

· Hot Rolling Mill Machinery

· Rolling Mill Equipments and Spares

Countries :

· Uganda

· Mauritius

· Kenya

· Tanzania

· Sri Lanka

· Zimbabwe

· South Africa

Imports :

Products :

Machines

Countries :

Germany

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

· Aar Kay Industries

· K. Machines Tools

· Ashok Steel Industries

· A V S Impex

· Eagle Scale Manufacturing Works

· Fateh Chand Jindal and Sons

· Four Square Media Private Limited

· Goyal Agencies

· Jain Steel Industries

· Punjab Forging Industries

Customers :

End users

· Gupta Allied Agencies

· Ashutosh Metal Limited

· Cardan Shafts India

· Fortune Metal Limited

· Boyton Industries Limited

· Garuda Steels

· Hariom Enterprises

· J. H. Manufacturing Company

· Kalinga Metalics and Power Private Limited

· Mizoram Ispat Industries

No. of Employees :

200 (Approximately) (In Office + In Factory)

Bankers :

Bank of Baroda, Mandi Gobindgarh, Punjab, India

Bank of Baroda, Sector-17 B, Chandigarh – 160017, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Magma Leasing Limited (Loan Against Car)	0.041	0.086
Axis Bank Limited (Loan Against property)	40.224	0.000
HDFC Bank Limited (Loan Against Car)	4.394	0.620
ICICI Bank Limited (Loans Against Car)	0.733	1.061
Bank of Baroda		0
Packing Credit Limit	15.047	5.030
Term Loan	11.992	14.991
Cash Credit Limit	50.232	48.428
Foreign Bill Purchase Limit	0.578	9.828
Total	123.241	80.044
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From Director	1.127	8.579
From Shareholders	2.551	3.147
From Corporate Bodies	1.276	105.973
From Others	0.000	47.015
Total	4.954	164.714

Banking Relations :

--

Financial Institution :

· Cholamandalam Investment and Finance Company Limited, Dare House, No. 2 N S C Bose Road, Parrys, Chennai - 600001, Tamil Nadu, India

· Reliance Capital Limited, "H" Block 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai - 400710, Maharashtra, India

Auditors :

Name :

Datta Singhla and Company

Chartered Accountants

Address :

Battan Lal Road, Battan Lal Mill Complex, Chandigarh – 147301, India

PAN No.:

AAAFD8577H

Sister Concern :

Name :	Cardan Shaft India
Address:	Motia Khanmandi Gobindgarh, District Fatehgarh Sahib - 147301, Punjab, India
Line of Business :	Manufacturer and Exporter of Hot Rolling Mill Machinery, Rolling Mill Equipments and Spares etc.

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1031550	Equity Shares	Rs.10/- each	Rs.10.315 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		10.315	10.315	10.315
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		138.193	131.728	103.648
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		148.508	142.043	113.963
LOAN FUNDS
1] Secured Loans		123.241	80.044	54.898
2] Unsecured Loans		4.954	164.714	61.852
TOTAL BORROWING		128.195	244.758	116.750
DEFERRED TAX LIABILITIES		1.749	1.418	1.237
TOTAL		278.452	388.219	231.950
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		157.031	165.078	114.267
Capital work-in-progress		14.580	10.953	11.653
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.067	68.022	42.453
	Sundry Debtors	98.684	120.704	61.946
	Cash & Bank Balances	80.600	101.886	10.209
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.538	78.180	91.199
Total Current Assets		269.889	368.792	205.807
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.817	61.541	33.006
	Other Current Liabilities	125.328	79.915	31.172
	Provisions	4.317	15.700	35.599
Total Current Liabilities		163.462	157.156	99.777
Net Current Assets		106.427	211.636	106.030
MISCELLANEOUS EXPENSES		0.414	0.552	0.000
TOTAL		278.452	388.219	231.950

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	420.710	367.734	350.277
		Other Income	9.105	39.250	22.196
		TOTAL (A)	429.815	406.984	372.473
Less	EXPENSES
		Material Consumed	356.080	319.408	251.646
		Manufacturing Expenses	9.252	9.010	9.662
		Excise Duty	0.577	1.429	0.753
		Salary and Other Benefits	12.506	8.591	7.292
		Administrative Expenses	5.145	4.413	8.588
		Selling and Distribution Expenses	0.784	1.640	3.234
		Preliminary Expenses Written Off	0.138	0.138	0.000
		(Increase) / Decrease in stock	7.059	(4.796)	(7.014)
		TOTAL (B)	391.541	339.833	274.161
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.274	67.151	98.312
Less	FINANCIAL EXPENSES (D)		17.559	15.129	7.988
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.715	52.022	90.324
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.224	7.180	4.544
	PROFIT BEFORE TAX (E-F) (G)		11.491	44.842	85.780
Less	TAX (H)		4.649	15.881	35.805
	PROFIT AFTER TAX (G-H) (I)		6.842	28.961	49.975
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		128.938	100.859	51.437
Add	PROVISION FOR EARLIER YEAR WRITTEN BACK		0.000	0.010	0.011
Less	PREVIOUS YEAR ADJUSTMENT		(0.376)	(0.892)	(0.564)
	BALANCE CARRIED TO THE B/S		135.404	128.938	100.859
	Earnings Per Share (Rs.)		6.63	NA	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	470.000

Expected Sales (2012-2013): Rs.550.000 Millions

The above information has been parted by Mr. Raman Mittal

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.59	7.12	13.42
Net Profit Margin (PBT/Sales)	(%)	2.67	11.02	23.03
Return on Total Assets (PBT/Total Assets}	(%)	2.69	8.40	26.80
Return on Investment (ROI) (PBT/Networth)		0.08	0.08	0.75
Debt Equity Ratio (Total Liability/Networth)		1.96	2.83	1.90
Current Ratio (Current Asset/Current Liability)		1.65	2.35	2.06

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	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	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	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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	Yes

FINANCIAL RESULTS:

During the year, the Company earned a Net Profit of Rs. 6.842 Millions after tax which is on the lower side as compared to the profit of Rs. 28.961 Millions in the previous year. This is because of the increase in the expenditure of the Company. The management is trying to reduce the expenditure and reap better results in the times to come.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29219PB1992PLC012340
Name of the company	SMT MACHINES INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Motia Khanmandi Gobindgarh, District Fatehgarh Sahib - 147301, Punjab, India E-mail Id : vickyvishal@rediffmail.com
This form is for	Creation of charge
Type of charge	Immovable property Others (Corporate Guarantee)
Particular of charge holder	Bank of Baroda, Sector-17 B, Chandigarh – 160017, India E-Mail Id : sectob@bankofbaroda.com
Nature of instrument creating charge	Corporate Guarantee Agreement
Date of instrument Creating the charge	21.09.2011
Amount secured by the charge	Rs.360.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Agreement Terms of Repayment As per Agreement Margin As per Agreement Extent and Operation of the charge As per Agreement
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Corporate Guarantee for the above said amount to secure the limits sanctioned to Aar Aar Castings Private Limited. Ind Godown and bldg of Subject At 105, Sector-18, Block A, GT RD Gobindgarh admsg 7275 sq ft Ind. godown and bldg of Subject At 409, Sec-19, Block A, G,T, Rdd, Gobindgarh admsg 8479 sq ft. Ind plot of Subject Near Vishwakarma Motors on minor Canal, Ajnali Gbdgarh Plot of Subject Behind Gobind Filling, St. St No. 2 Nr. Parbhatpuri Charitable Hospital, Amloh Rd. Mandi Gbdgarh admsg 6750 sq ft. Plot of Subject Behind Gobind Filling, St. St No. 1 Nr. Parbhatpuri Charitable Hospital, Amloh Rd. Mandi Gbdgarh admsg 6120 sq ft. Plot of Subject Bearing No. 103, Sec-18, Block A, Gt Rd, Sir Hind Side, Mandi Gbdgarh admsg 2709 sq ft.

FIXED ASSETS:

· Land

· Building and Shed

· Furniture and Fixtures

· Office Equipments

· Lab Equipments

· Fax and EAPBX

· Kitchen Equipments

· Vehicles

· Computers

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.54.53
UK Pound	1	Rs.87.48
Euro	1	Rs.70.89

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.