MIRA INFORM REPORT

Report Date :

14.12.2012

IDENTIFICATION DETAILS

Name :	METKORE ALLOYS AND INDUSTRIES LIMITED (w.e.f. 11.01.2012)
Formerly Known As :	CRONIMET ALLOYS INDIA LIMITED
Registered Office :	Plot No.18, Sagar Society, Street No.1, Road No.2, Banjara Hills, Hyderabad – 500034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.03.2006
Com. Reg. No.:	049591
Capital Investment / Paid-up Capital :	Rs.209.365 Millions
CIN No.: [Company Identification No.]	L27101AP2006PLC049591
TAN No.: [Tax Deduction & Collection Account No.]	VPNG00606E
PAN No.: [Permanent Account No.]	ACCG7341P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Trading of Metal Alloys.
No. of Employees :	233 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 3300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. In the current year company has performed well. Financially the company appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal business dealing 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

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 :	Plot No.18, Sagar Society, Street No.1, Road No.2, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Tel. No.:	No Available
Fax No.:	No Available
E-Mail :	secretarial@metkore.com
Corporate Office :	#1914, 2^nd Floor, C Cross, 28^th A Main Rod, Jayanagar, 9^th Block East, Bangalore – 560069, Karnataka, India
Tel No.:	91-80-26581192/ 40119999
Factory :	Ravivalasa Village, Tekkali Mandal, Srikakulam District - 532212 , Andhra Pradesh, India
Tel No.:	91-8945-244382/323
Fax No.:	91-8945-244545

DIRECTORS

(AS ON 29.09.2012)

Name :	Mr. Rajiv Samsher Saxena
Designation :	Chairman
Address :	Block No.1, Flat 2, Bradys Flats, Sorab Bharucha Road, Colaba, Mumbai9 – 400005, Maharashtra, India
Date of Birth/Age :	30.09.1958
Date of Appointment :	17.12.2009
DIN No.:	02009018
Name :	Mr. Prashant Boorugu
Designation :	Managing Director
Address :	B-0-4 OAK Yard Appartment, 38^th Cross, East End 'C' Main Road, 9^th Block, Jayanagar, Bangalore – 560041, Karnataka, India
Date of Birth/Age :	07.10.1974
Date of Appointment :	25.10.2010
DIN No.:	00389225
Name :	Mrs. Sarita Boorugu
Designation :	Director
Address :	B-0-4 OAK Yard Appartment, 38^th Cross, East End 'C' Main Road, 9^th Block, Jayanagar, Bangalore – 560041, Karnataka, India
Date of Birth/Age :	05.08.1980
Date of Appointment :	10.08.2010
DIN No.:	00332209
Name :	Mr. S Gajendran
Designation :	Director
Address :	No.15, Ward No.141, Sri Ram Ngar Colony, Tharmani, Chennai – 600113, Tamilnadu, India
Date of Birth/Age :	07.07.1944
Date of Appointment :	17.12.2009
DIN No.:	00250136
Name :	Mr. Venkat Bhaskara Rao Maddala
Designation :	Director
Address :	10.03.102, East Marredpally Teacher Colony, Hyderabad – 500026, Andhra Pradesh, India
Date of Birth/Age :	13.04.1940
Date of Appointment :	13.05.2011
DIN No.:	01526381
Name :	Mr. Mallikarjuna Rao Kummithe
Designation :	Director
Address :	K-427, 38 Main Road, 3^rd Block, HRBR Layout Kalyananagar, Bangalore – 560043, Karnataka, India
Date of Birth/Age :	19.06.1952
Qualification :	B.Com, L.L.B, FCA
Date of Appointment :	17.12.2009
DIN No.:	01228134
Name :	Mr. Narasimham Venkata Lakshmi Ambatipudi
Designation :	Director
Address :	39-2-4/2, Murali Nagar, Viskhapatnam – 530007, Andhra Pradesh, India
Date of Birth/Age :	30.04.1947
Qualification :	Metallurgical Engineer
Date of Appointment :	25.02.2010
DIN No.:	02975476

KEY EXECUTIVES

Name :	Mr. Chandrashekhar Hegde
Designation :	Company Secretary
Address :	No.525, Chaitra, B Sector, 11^th Cross, Yelahanka New Town, Bangalore – 560064, Karnataka, India
Date of Birth/Age :	04.04.1981
Date of Appointment :	01.06.2010
PAN No.:	AEUPH9639C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2011)

Shareholding details file attached.

(AS ON 30.09.2012)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	2070	0.00
Sub Total	2070	0.00
(2) Foreign
Bodies Corporate	43292205	70.48
Sub Total	43292205	70.48
Total shareholding of Promoter and Promoter Group (A)	43294275	70.48
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2660	0.00
Financial Institutions / Banks	1188085	1.93
Foreign Institutional Investors	966855	1.57
Sub Total	2157600	3.51
(2) Non-Institutions
Bodies Corporate	4800469	7.81
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	7637883	12.43
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	3079118	5.01
Any Others (Specify)	457130	0.74
Non Resident Indians	231535	0.38
Overseas Corporate Bodies	760	0.00
Hindu Undivided Families	215947	0.35
Clearing Members	8888	0.01
Sub Total	15974600	26.01
Total Public shareholding (B)	18132200	29.52
Total (A)+(B)	61426475	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	61426475	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trading of Metal Alloys.

GENERAL INFORMATION

No. of Employees :

233 (Approximately)

Bankers :

State Bank of Travancore

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Secured Loan from Financial Institutions	7.137	0.000
Corporate Loan from State Bank of Travancore	0.000	75.000
Cash Credit from State Bank of Travancore	248.004	290.152
Packing credit loan from State Bank of Travancore	51.362	0.000
Total	306.503	365.152
NOTE: Hire Purchase Loan from Reliance Capital Limited secured against hypothecation of Vehicles and Repayable within 3 Years Working Capital Loans from Banks are secured by First charge on the entire current assets and first charge on entire fixed assets of the Company and personal guarantee of a Director.

Banking Relations :	--
Auditors :
Name :	S Venkatadri and Company Chartered Accountants
Address :	1408, Babukhan Estate, Basheerbagh, Hyderabad - 500001, Andhra Pradesh, India

CAPITAL STRUCTURE

(AS ON 31.03.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
191000000	Equity Shares	Rs.2/- each	Rs.382.000 Millions
8000000	Cumulative Redeemable Preference Shares	Rs.11/- each	Rs.88.000 Millions
	Total		Rs.470.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
61426475	Equity Shares Out of the above 4,32,92,205 Shares of `2/- each are held by the holding company, Cronimet Mercon Invest Limited, Dubai.	Rs.2/- each	Rs.122.853 Millions
7864700	Cumulative Redeemable Preference Shares Entire Preference Shares are held by Pentacle Infrastructure and Towers Private Limited and are to be redeemed by 14.08.2015	Rs.11/- each	Rs.86.512 Millions
	Total		Rs.209.365 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		209.365	209.365	209.365
2] Money received against shares warrants		135.000	135.000	0.000
3] Reserves & Surplus		477.222	316.967	198.230
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		821.587	661.332	407.595
LOAN FUNDS
1] Secured Loans		306.503	365.152	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		306.503	365.152	0.000
DEFERRED TAX LIABILITIES		40.507	38.038	44.424
TOTAL		1168.597	1064.522	452.019
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		218.290	223.103	227.354
Capital work-in-progress		81.488	31.253	0.000
INVESTMENT		66.043	1.709	0.175
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	344.921	368.983	171.468
	Sundry Debtors	338.989	260.222	53.214
	Cash & Bank Balances	17.835	12.801	44.326
	Other Current Assets	3.362	3.362	0.000
	Loans & Advances	368.008	411.589	131.520
Total Current Assets		1073.115	1056.957	400.528
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	84.430	79.565	55.712
	Other Current Liabilities	100.825	85.051	79.046
	Provisions	85.084	83.884	41.280
Total Current Liabilities		270.339	248.500	176.038
Net Current Assets		802.776	808.457	224.490
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1168.597	1064.522	452.019

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	2500.147	1739.852	1147.539
		Other Income	6.643	3.801	4.740
		TOTAL (A)	2506.790	1743.653	1152.279
Less	EXPENSES
		Cost of Materials Consumed	885.491	1103.129	665.458
		Purchases of Traded Goods	983.928	46.074	0.000
		(Increase)/Decrease in Inventories	(28.947)	(122.527)	0.000
		Employees benefit expenses	52.891	52.919	0.000
		Other expenses	345.912	411.475	368.219
		TOTAL (B)	2239.275	1491.070	1033.677
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		267.515	252.583	118.602
Less	FINANCIAL EXPENSES (D)		63.539	29.726	3.973
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		203.976	222.857	114.629
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.069	22.480	22.909
	PROFIT BEFORE TAX (E-F) (G)		177.907	200.377	91.720
Less	TAX (H)		2.468	66.458	32.374
	PROFIT AFTER TAX (G-H) (I)		175.439	133.919	59.346
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	38.991	(4.214)
Less	APPROPRIATIONS
		Preference Dividend	NA	6.921	13.842
		Corporate Dividend Tax- Preference	NA	1.123	2.299
		Equity Dividend	NA	6.143	0.000
		Corporate Dividend Tax- Equity	NA	0.996	0.000
	BALANCE CARRIED TO THE B/S		NA	157.727	38.991
	EARNINGS IN FOREIGN CURRENCY		180.932	93.135	361.829
	IMPORTS
		Raw Materials	94.423	90.494	--
	TOTAL IMPORTS		94.423	90.494	--
	Earnings Per Share (Rs.)		2.73	2.05	--

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	360.340	513.190
Total Expenditure	293.430	441.780
PBIDT (Excl OI)	66.910	71.410
Other Income	0.280	0.440
Operating Profit	67.190	71.850
Interest	13.630	14.530
Exceptional Items	0.000	0.000
PBDT	53.560	57.320
Depreciation	6.800	6.910
Profit Before Tax	46.760	50.410
Tax	0.000	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	46.760	50.410
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	46.760	50.410

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.99	7.68	5.15
Net Profit Margin (PBT/Sales)	(%)	7.12	11.52	7.99
Return on Total Assets (PBT/Total Assets}	(%)	13.78	15.65	14.61
Return on Investment (ROI) (PBT/Networth)		0.22	0.30	0.23
Debt Equity Ratio (Total Liability/Networth)		0.70	0.93	0.43
Current Ratio (Current Asset/Current Liability)		3.97	4.25	2.28

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	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

REVIEW OF OPERATIONS AND PERFORMANCE

In the year, the Company has achieved a production of 21572 MT of Ferro Alloys products as against 28057 MT during previous year, decrease of 23.11% due to constraints in supply of Chrome Ore and Power. Therefore, the Company has chosen outsourcing of the products so as to meet the growing demand from the customers. With this strategy, the Sale turnover of Ferro Alloys products increased to Rs.2510.000 Millions as compared to Rs.1740.000 Millions during previous year, registering a growth of 43.76%. The Company has registered a Profit after tax of Rs.175.439 Millions against Rs.133.919 Millions of previous year.

SHIFTING OF REGISTERED OFFICE

Effective from 07.04.2012, the Registered Office of the Company has been shifted from ‘Vishnu Splendor’, D No. 8-3-979/123456, Survey No. 41, 42, Flat No. 302, ‘B’ Block, Yellareddyguda, Hyderabad – 500 073 to Plot No.18, Sagar Society, Street No.1, Road No.2, Banjara Hills, Hyderabad – 500 034, Andhra Pradesh, India

MANAGEMENT DISCUSSION AND ANALYSIS

PROSPECTS

The Company is manufacturing High Carbon Ferro Chrome (HCFC) for the domestic and international markets. Stainless Steel (SS) is the major consumer of HCFC, consuming about 90% HCFC Production. Due to this, there is high co-relation between the price movements of Stainless Steel and Ferro Chrome.

The HCFC Market is projected to grow at CAGR of 7% during 2011-22 and is likely to reach 19.5 Million Tonnes by 2022. This will result into significant demand-supply gap and the Company is poised to cater need of the Industry. The Company envisages bright prospects for its products.

CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Bank Guarantees	1.360	1.360
Claims made by Govt Departments against the Company not acknowledged as debts	4.573	12.469
Estimated amount of contracts remaining to be executed on capital account	--	--

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

NEWS:

METKORE ALLOYS TO INVEST $80 MILLION IN OMAN FOR FERRO CHROME PROJECT

15.06.2012

Metkore is also negotiating with a well-established local firm for a joint venture agreement for its new ferro chrome project in Oman

Dubai: India's Metkore Alloys and Industries is set to build a world class 165,000 tonnes per annum capacity ferro chrome smelter project in Oman with an envisaged investment of $80 million, reports PTI.

This is the third ferro chrome project coming up Sohar free zone, local media reports said. The project work of Metkore is expected to start in October, with the completion of the work within 18 months.

According to reports, a land lease agreement was signed by Sheikh Sa'ad bin Mohammed Al Mardhouf Al Sa'adi, Chairman of Port of Sohar, and Prashant Boorugu, Managing Director of Metkore Alloys and Industries.

Metkore is negotiating with a well-established local firm for a joint venture agreement for the ferro chrome project, but no agreement has been signed so far.

The ferro chrome plant will become operational in 2014 and is expected to generate direct employment for about 500 people.

The company has already appointed consultants to carry out technical and environmental studies for the project.

Omanisation is the prime objective of the company and all efforts will be taken to train the local Omani nationals and appoint them to operate the plant profitably, it has said.

Further, the low grade chrome ore available in Oman will be beneficiated and put to gainful use thereby adding value to the mineral resources available in Oman.

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 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 transactio.

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.54.23
UK Pound	1	Rs.87.53
Euro	1	Rs.70.94

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.