MIRA INFORM REPORT

Report Date :

12.12.2012

IDENTIFICATION DETAILS

Name :	INDUCTOTHERM (INDIA) PRIVATE LIMITED
Registered Office :	Shri Kishorebhai D. Vyas Building, Ambli-Bopal Road, Bopal, Ahmedabad-380058, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.12.1982
Com. Reg. No.:	04-005739
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U29120GJ1982PTC005739
TAN No.: [Tax Deduction & Collection Account No.]	AHMI00607F AHMI00050B AHMI00522E AHMI00562C
PAN No.: [Permanent Account No.]	AAACI3672B
Legal Form :	Private limited liability company
Line of Business :	Manufacturer of Melting, Thermal Processing and Production Systems.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limits :	USD 4400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. But the current year financial is missing from government department. However from the previous year record company performance seems good. Financial appears strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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

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.

LOCATIONS

Registered Office / Head Office / Factory:	Shri Kishorebhai D. Vyas Building, Ambli-Bopal Road, Bopal, Ahmedabad-380058, Gujarat, India
Tel. No.:	91-2717-231961 (8 Lines)
Fax No.:	91-2717-231268
E-Mail :	finance@inductothermindia.com iil@inductothermindia.com
Website :	www.inductothermindia.com
Location :	Owned

DIRECTORS

As on 17.07.2012

Name :

Mr. Jagat Jayant Shah

Designation :

Managing Director

Address :

Saumya, C-62, Sterling City, Bopal, Ahmedabad - 380 058, Gujarat, India

Date of Birth/Age :

19.03.1942

Qualification :

M.S. (Mechanical) USA B.E. (Mechanical)

Date of Appointment :

21.06.1999

Voter ID No.:

LPZ1555317

DIN No.:

00198802

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	U29120GJ1982PTC005739	INDUCTOTHERM (INDIA) PRIVATE LIMITED	Managing director	21/06/1999	21/06/1999	-	Active	NO
2	U31909DL1994PTC057720	NEWELCO INDIA PRIVATE LIMITED	Director	14/03/2003	14/03/2003	-	Active	NO
3	U72200PN1998PTC012971	BRICMONT (INDIA) PRIVATE LIMITED	Director	6/8/2005	6/8/2005	-	Active	NO

Name :

Mr. Bharat Lallubhai Seth

Designation :

Director

Address :

9/10, Bhanuchandra, Co-Operative Society, Near Ranchodji Temple, Jivrajpark, Ahmedabad, Gujarat, India

Date of Birth/Age :

30.11.1949

Date of Appointment :

01.04.2001

DIN No.:

00181139

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	U67120GJ1995PTC026785	TECHNOFIN INTERNATIOAL PRIVATE LIMITED	Director	16/01/2001	16/01/2001	-	Active	NO
2	U29120GJ1982PTC005739	INDUCTOTHERM (INDIA) PRIVATE LIMITED	Director	01/04/2001	01/04/2001	-	Active	NO
3	U18101MH2002PTC135362	JAQ-CAD TEXFAB (INDIA) PRIVATE LIMITED	Director	01/04/2001	01/04/2002	-	Active	NO
4	U51900MH2000PTC126039	AGROSURG IRRADIATORS (INDIA)) PRIVATE LIMITED	Director	1/6/2002	1/6/2002	-	Active	NO

Name :

Mr. Henry M. Rowan

Designation :

Director

Address :

C/O, Inductotherm Corporation, 10 Indel Avenu, Rancocas, New Jersey, USA-08073

Date of Birth/Age :

01.12.1923

Date of Appointment :

31.12.1988

DIN No.:

00179462

Name :

Mr. Michae Anthony Nallen

Designation :

Director

Address :

9, Perennial Lane, Hampden MA 01036, USA

Date of Birth/Age :

19.07.1960

Date of Appointment :

06.12.2010

DIN No.:

03364228

Name :

Mr. Satyen Nagesh Prabhu

Designation :

Director

Address :

C/O, Inductotherm Corporation, 10 Indel Avenu, Rancocas, New Jersey, USA-08073

Date of Birth/Age :

17.10.1961

Date of Appointment :

09.12.1999

DIN No.:

00173080

Name :

Mr. Gary Anthony Doyon

Designation :

Director

Address :

80, Touraine Road, Grosse Pointe Farms, Michi Gan, USA-48236

Date of Birth/Age :

09.12.1999

Date of Appointment :

13.01.1959

DIN No.:

02129096

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	U29120GJ1982PTC005739	INDUCTOTHERM (INDIA) PRIVATE LIMITED	Director	19/06/2008	27/03/2008	-	Active	NO
2	U72200PN1998PTC012971	BRICMONT (INDIA) PRIVATE LIMITED	Director	24/09/2010	25/03/2010	-	Active	NO

Name :

Mr. Chirag Girishbhai Sitwala

Designation :

Whole Time Director

Address :

D-23, Ishan-2, Opposite Karnavati Club, SG Highway, Satellite, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

30.11.1968

Qualification :

Diploma in Electronics

Date of Appointment :

17.07.2012

DIN No.:

05322617

Name :

Mr. Naishadh Nalinkant Parekh

Designation :

Whole Time Director

Address :

501, Shailraj Tower, Nirant Co-operative Housing Society, Vibhag IV, Vastrapur, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

22.02.1957

Date of Appointment :

17.07.2012

DIN No.:

05324759

Name :

Mr. Prakash Dinkar Chaubal

Designation :

Whole Time Director

Address :

5, Suyash PM Road, Vile Parle (East), Mumbai-400057, Maharashtra, India

Date of Birth/Age :

28.08.1951

Qualification :

B.E. (Electronics)

Date of Appointment :

17.07.2012

DIN No.:

05324762

Name :

Mr. Vijay Vasudev Joshi

Designation :

Whole Time Director

Address :

14, Meera Madhav Apartments, Gulbai Tekra, Ahmedabad-380006, Gujarat, India

Date of Birth/Age :

27.09.1951

Qualification :

B.E. (Electronics)

Date of Appointment :

17.07.2012

DIN No.:

05322628

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.07.2012

Names of Shareholders	No. of Shares
Inductotherm Technologies Inc., USA	99999
Bharat Lallubhai Sheth	1
TOTAL	100000

As on 17.07.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Melting, Thermal Processing and Production Systems.

Products :

Product Description	Item Code No. (ITC Code)
Induction melting, Heating and Welding Equipment	85.14
Water Cooled Capacitors	85.32
Component and Spares	--

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Licensed Capacity
Induction Melting Equipment	PT / Nos.	650
	FR / Nos.	1000
Induction Heating Equipment	Nos.	200
Induction Welding Equipment	Nos.	55
Capacitors	Nos.	10500

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	State Bank of India, SPL Commercial Branch, Gandhigram, Opposite Gandhigram Railway Station, Ahmedabad-380009, Gujarat, India

Banking Relations :	--
Auditors :
Name :	Chandabhoy and Jassoobhoy Chartered Accountants
Address :	605-607, Silveroaks, Near Mahalakshmi Char Rasta, Paldi, Ahmedabad - 380007, Gujarat, India
Tel. No.:	91-79-26586063/ 26586069
Fax No.:	91-79-26586063
E-Mail :	cnjabd@vsnl.net
PAN No.:	AABFC0696F
Holding Company :	Inductotherm Technologies Inc., USA.
Fellow Subsidiaries :	Inductotherm Corporation, USA Inductoheat Inc., USA High Energy Corp., USA Inductotherm Europe Limited Inductotherm Pty. Limited Lepel Corporation Magnetic Metals Thermatool Corporation Telegenix Inc HWG Inductoheat GmbH Inductotherm Taiwan Limited Inductotherm Japan Limited Inductotherm Ind. (Shanghai) Limited Inductotherm Induksiyon Sistemleri Inductotherm Korea Limited Alpha 1 Induction Service Centre Consarc Corporation Inductotherm Group Brasil Limited Inductotherm S.A. Inductotherm Group China Inductotherm Heating and Welding Technologies Limited Inductotherm Coating Equipment, SA PT Inductotherm Indonesia Radyne Corporation Inductotherm SA DE CV Servemelt Commercial Ltda Newelco (India) Private Limited CIN No.: - U31909DL1994PTC057720 Bricmont (India) Private Limited CIN No.: - U72200PN1998PTC012971

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1091.960	1211.389	1527.626
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1101.960	1221.389	1537.626
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1101.960	1221.389	1537.626
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		252.635	238.313	268.228
Capital work-in-progress		0.508	0.602	2.950
INVESTMENT		0.824	0.825	0.823
DEFERREX TAX ASSETS		70.496	37.884	43.432
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	885.475	587.982	673.895
	Sundry Debtors	265.396	292.019	256.006
	Cash & Bank Balances	636.639	873.513	926.815
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1836.587	1463.586	1350.333
Total Current Assets		3624.097	3217.100	3207.049
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	275.778	207.286	130.463
	Other Current Liabilities	709.039	555.330	537.088
	Provisions	1861.783	1510.719	1317.305
Total Current Liabilities		2846.600	2273.335	1984.856
Net Current Assets		777.497	943.765	1222.193
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1101.960	1221.389	1537.626

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3424.100	2906.100	3138.539
		Erection, Commissioning and Service Charges	NA	0.000	61.367
		Other Income	NA	64.991	74.001
		TOTAL (A)	NA	2971.091	3273.907
Less	EXPENSES
		Raw materials consumption			1642.358
		Payments to & provisions for employees			201.611
		Manufacturing expenses			77.539
		Administrative expenses			25.081
		Selling & Distribution expenses	NA	1943.638	243.141
		Directors' remuneration			25.007
		Earlier Year Expenses			(7.282)
		Surplus on sale of Land and Building			(4.577)
		Increase/(decrease) in stock			(45.424)
		TOTAL (B)	NA	1943.638	2157.454
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	1116.453
Less	FINANCIAL EXPENSES (D)		NA	NA	13.439
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1071.729	1027.453	1103.014
Less/ Add	DEPRECIATION/ AMORTISATION (F)		37.508	42.183	43.110
	PROFIT BEFORE TAX (E-F) (G)		1034.221	985.270	1059.904
Less	TAX (H)		337.389	365.547	376.378
	PROFIT AFTER TAX (G-H) (I)		696.832	619.723	683.526
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		741.389	1127.626	923.582
Less	APPROPRIATIONS
		Interim Dividend paid	700.000	800.000	350.000
		Corporate Dividend Tax	116.261	135.960	59.482
		Transfer to General Reserve	80.000	70.000	70.000
	BALANCE CARRIED TO THE B/S		541.960	741.389	1127.626
	EARNINGS IN FOREIGN CURRENCY
		Export on FOB Basis		899.785	1145.240
		Commissioning and Servicing Income		3.040	3.970
		Commission Income		0.899	3.753
		Income From Job Work	889.700	9.698	16.733
		Reimbursement of Travel Expenses		0.713	2.322
		Training Fees Income		0.124	0.568
		Discount Earned		0.097	0.188
		Order Cancellations Charges		0.034	0.069
	TOTAL EARNINGS		889.700	914.390	1172.843
	IMPORTS
		Raw Materials	447.658	278.321	428.423
		Capital Goods	17.470	2.390	6.510
	TOTAL IMPORTS		465.128	280.711	434.933
	Earnings Per Share (Rs.)		6968.32	6197.23	6835.26

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	20.86	20.88
Net Profit Margin (PBT/Sales)	(%)	31.30	33.16	33.77
Return on Total Assets (PBT/Total Assets}	(%)	27.15	28.51	68.93
Return on Investment (ROI) (PBT/Networth)		0.97	0.81	0.69
Debt Equity Ratio (Total Liability/Networth)		2.58	1.86	1.29
Current Ratio (Current Asset/Current Liability)		1.27	1.41	1.62

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	No
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 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	Yes
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	No
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

This past year witnessed complexity and volatility of economic environment. Indian Government with its strenuous effort was successful in steering the economy and maintaining the GDP growth largely on track especially when many countries struggled on it. Against this background the Company has achieved a turnover of Rs. 3424.100 Millions during the financial year 2010-11, an increase of Rs. 518.000 Millions registering a growth of 18 % over the previous year. The consistent performance of the company over the years reflects the strength of its brand and customer satisfaction and the services provided by the company. The turnover of the Melting Division compared to the previous year was almost the same whereas the turnover of the Heating Division increased by 63 % and of the welding division by 37 %. Also, noteworthy is the increase in the intercompany business, which grew by 40 %.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2011	31.03.2010
Bank Guarantees	22,82,14	15,74,05
Claims against the Company not acknowledged as debts	1,20	0.120

FIXED ASSETS

• Land
• Building
• Electrical Installations
• Computers
• Office Equipments
• Furniture and Fixture
• Computers
• Vehicles
• Type Writers
• Air conditioner
• Electric Fans
• Xerox Machine

AS PER WEBSITE

PROFILE

Subject was established in the year 1982, and since then has consolidated its position as a market leader in Induction technology for melting, forging and heat treating, welding and Mass heating equipments.

With a human resource pool of highly qualified engineers, most of them with degrees in engineering and business administration, subject has installed over 4500 Induction equipments in India and has emerged as a true leader in Induction technology.

Products manufactured by subject utilize knowledge of individuals well conversant with electrical / electronics / mechanical, electromechanical, hydraulics and software related disciplines.

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 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 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.54.31
UK Pound	1	Rs.87.36
Euro	1	Rs.70.36

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.