MIRA INFORM REPORT

Report Date :

14.01.2012

IDENTIFICATION DETAILS

Name :	STYLAM INDUSTRIES LIMITED (w.e.f. 01.02.2010)
Formerly Known As :	GOLDEN LAMINATES LIMITED
Registered Office :	SCO-14, Sector-7C, Madhya Marg, Chandigarh-160019
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.10.1991
Com. Reg. No.:	53-011732
Capital Investment / Paid-up Capital :	Rs. 73.162 millions
CIN No.: [Company Identification No.]	L20211CH1991PLC011732
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the manufacture and production of high quality grade laminates catering to international as well as domestic market.
No. of Employees :	Not Available

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 770000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered / Corporate Office :	SCO-14, Sector-7C, Madhya Marg, Chandigarh-160019, India
Tel. No.:	91-172-5021555/5021666
Fax No.:	91-172-2795213/5021495
E-Mail :	stylam@goldenlaminates.com
Website :	www.goldenlaminates.com
Factory 1 :	192-93, Industrial Area, Phase-1, Panchkula-134108, Haryana, India
Tel. No.:	91-172-2565387/2563907
Fax No.:	91-172-2565033
E-Mail :	works@goldenlaminates.com

DIRECTORS

AS ON 31.03.2009

Name :	Mr. Jagdish Gupta
Designation :	Chairman Cum Managing Director
Name :	Mr. Satish Gupta
Designation :	Executive Director
Name :	Mr. Mahavir Singh
Designation :	Nominee Director (HSIDC)
Name :	Mr. Satpal Garg
Designation :	Director
Name :	Mr. Ravinder Krishan
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ravinder Krishan
Designation :	Senior Finance Manager
Name :	Ms. Monika Bisht
Designation :	Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,854,413	25.35
Any Others (Specify)	2,449,643	33.48
Directors/Promoters & their Relatives & Friends	2,449,643	33.48
Sub Total	4,304,056	58.83
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4,304,056	58.83
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	481,939	6.59
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,116,541	15.26
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,331,797	18.20
Any Others (Specify)	81,867	1.12
Non Resident Indians	22,046	0.30
Clearing Members	903	0.01
Hindu Undivided Families	57,468	0.79
Foreign Nationals	1,450	0.02
Sub Total	3,012,144	41.17
Total Public shareholding (B)	3,012,144	41.17
Total (A)+(B)	7,316,200	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	7,316,200	-

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacture and production of high quality grade laminates catering to international as well as domestic market.

Products :

ITC CODE	PRODUCT
48239009	Falling Under ITC Broad Description Others Paper

Brand Name :

“STYLAM”

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Laminated Sheets (On Triple Shift)	Sheets	NA	3360000	2341293

Note: One Laminate Sheet at Base Level of 0.50 MM of thickness.

GENERAL INFORMATION

Bankers :

· State Bank of Patiala, SCO 103-107, Sector 8-C, Chandigarh-160018, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
TERM LOAN
From State Bank of Patiala, Sector 8, Chandigarh, FCNR(B) *	31.577	0.000
From State Bank of Patiala, Sector 8, Chandigarh *	0.000	6.057
From State Bank of Patiala, Sector 8, Chandigarh *	2.500	0.000
From State Bank of Patiala, (Corporate Loan) Sector 8, Chandigarh *	4.222	12.647
From State Bank of Patiala, (Corporate Loan) Sector 8, Chandigarh *	4.051	8.095
From State Bank of Patiala, (Corporate Loan) Sector 8, Chandigarh *	2.037	0.000
WORKING CAPITAL *
FROM
- State Bank of Patiala, C/C Limit at Sector 8, Chandigarh	14.018	1.441
- State Bank of Patiala-PCFC	75.853	0.000
- State Bank of Patiala EPC Limit at Sector 8, Chandigarh	8.320	60.989
Buyers Credit from HSBC	9.030	0.000
FROM
- HDFC Bank, Sector 35, Chandigarh**	0.940	0.512
Against Vehicles ***
- from ICICI Bank	3.840	2.066
Total	156.388	91.807

Notes:

* Secured against first and exclusive charge on all fixed assets of the Company and hypothecation of Raw Materials, Work-in-Process, Finished Goods and book Debts along with personal guarantee of directors

** Secured against hypothecation of Fixed Deposits

*** Secured against hypothecation of Vehicles

Banking Relations :	--
Auditors :
Name :	Sunil K Sood and Company Chartered Accountant
Address :	# 143, Sector-7, Panchkula-134109, Haryana, India
Subsidiaries :	Golden Net Soft Private Limited
Sister Concern :	· Golden Chem –Tech limited · Teji Brar Financial Services Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8050000	Equity Shares	Rs.10/- each	Rs.80.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7316200	Equity Shares	Rs.10/- each	Rs. 73.162 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		73.162	73.162	73.162
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		119.663	99.396	75.882
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		192.825	172.558	149.044
LOAN FUNDS
1] Secured Loans		156.388	91.807	106.851
2] Unsecured Loans		0.000	0.000	10.050
TOTAL BORROWING		156.388	91.807	116.901
DEFERRED TAX LIABILITIES		6.461	8.878	8.856
TOTAL		355.674	273.243	274.801
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		123.384	129.634	100.563
Capital work-in-progress		27.726	0.000	0.000
INVESTMENT		1.549	0.260	0.260
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	118.772	66.980	103.405
	Sundry Debtors	64.792	48.611	52.783
	Cash & Bank Balances	7.801	5.608	5.134
	Other Current Assets	22.143	12.727	30.876
	Loans & Advances	64.778	43.711	42.330
Total Current Assets		278.286	177.637	234.528
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	57.860	27.620	42.052
	Other Current Liabilities	11.784	6.009	16.769
	Provisions	5.627	0.659	1.729
Total Current Liabilities		75.271	34.288	60.550
Net Current Assets		203.015	143.349	173.978
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		355.674	273.243	274.801

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	639.941	533.358	457.202
		Other Income	8.026	17.256	3.420
		TOTAL (A)	647.967	550.614	460.622
Less	EXPENSES
		Purchase Trading Goods	5.005	1.140	0.000
		Materials Consumed	426.619	364.655	303.530
		Manufacturing Expenses	52.412	54.619	42.361
		Personnel Expenses	19.291	14.279	11.487
		Administrative Expenses	8.027	8.079	7.217
		Selling Expenses	65.635	56.648	46.090
		TOTAL (B)	576.989	499.420	410.685
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		70.978	51.194	49.937
Less	FINANCIAL EXPENSES (D)		12.589	13.144	13.445
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		58.389	38.050	36.492
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.878	13.410	19.859
	PROFIT ON SALE OF ASSETS		(0.766)	(0.128)	0.000
	PROFIT BEFORE TAX (E-F) (G)		43.745	24.512	16.633
Less	TAX (I)		13.733	8.705	8.382
	PROFIT AFTER TAX (G-I) (J)		30.012	15.807	8.251
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	67.074
Less	APPROPRIATIONS
		Transfer to General Reserve
		Interim Dividend	5.487	0.000	0.000
		Dividend Distribution Tax	0.942	0.000	0.000
	BALANCE CARRIED TO THE B/S		23.583	15.807	75.325
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	458.340	404.779	348.853
		Commission Earnings	10.734	11.094	5.666
		Other Earnings	0.379	1.130	1.437
	TOTAL EARNINGS		469.453	417.003	355.956
	IMPORTS
		Raw Materials	147.090	83.915	110.475
		Stores & Spares	0.474	0.000	0.012
		Capital Goods	0.000	11.023	3.294
	TOTAL IMPORTS		147.564	94.938	113.781
	Earnings Per Share (Rs.)		4.10	2.16	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011	30.06.2011	30.09.2011
Net Sales	178.020	172.380	208.610	272.510	221.430	234.270
Total Expenditure	161.510	175.190	198.260	251.850	196.230	217.610
PBIDT (Excl OI)	16.510	(2.810)	10.350	20.660	25.200	16.660
Other Income	5.690	26.950	5.640	0.300	2.350	5.130
Operating Profit	22.200	24.140	15.990	20.960	27.550	21.790
Interest	2.510	3.740	2.320	5.540	5.460	6.480
PBDT	19.690	20.400	13.670	15.420	22.090	15.310
Depreciation	3.400	3.410	4.890	4.270	6.460	6.910
Profit Before Tax	16.290	16.990	8.780	11.150	15.630	8.400
Tax	5.540	2.610	5.270	2.150	5.310	2.900
Profit After Tax	10.750	14.380	3.510	9.000	10.320	5.500
Prior Period Expenses	0.000	(1.210)	(0.050)	1.170	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000	0.000
Net Profit	10.750	13.170	3.460	10.170	10.320	5.500

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.63	2.87	1.82
Net Profit Margin (PBT/Sales)	(%)	6.84	4.60	3.64
Return on Total Assets (PBT/Total Assets}	(%)	10.89	7.98	4.97
Return on Investment (ROI) (PBT/Networth)		0.23	0.14	0.11
Debt Equity Ratio (Total Liability/Networth)		1.23	0.78	1.25
Current Ratio (Current Asset/Current Liability)		3.70	5.18	3.87

LOCAL AGENCY FURTHER INFORMATION

TURNOVER AND PROFITS

The company has achieved a turnover of Rs. 647.968 millions as compared to the previous year's turnover of Rs. 550.614 millions. This is due to imbalance in demand and supply; however the Company is making continuous efforts to retain its market share through certain strategic market interventions.

EXPORTS

During the year, the Company has exported goods worth Rs. 467.709 millions, which is higher by 11.65% than previous year. The Company has earned Export Incentives worth Rs. 20.928 millions on Export Sales.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

The structure of Laminates Industry is broadly classified into 2 sectors viz organized and unorganized sector. The Company comes under the organized sector and is engaged in the manufacture and production of high quality grade laminates catering to international as well as domestic market. Growth of organized sector is 15-20% in comparison to overall industry growth of 5%, indicating the shift of customer preferences from Unbranded to Branded goods. Demand for laminates in domestic market is increasing rapidly on account of hectic activities in the Housing Sector. The company has opted for different product- mix market-wise on order to cater to demand of Real Estate Industry. The Company has now started manufacturing industrial as well as advanced grade laminates i.e. Post forming and Antistatic laminates under the brand name ‘STYLAM’.

FUTURE OUTLOOK

The company is aiming for a healthy growth which will be achieved through an appropriate mix of international and domestic business. The company is also trying to add a new product segment in Laminates which will help to penetrate into newer markets. The company has installed new machinery thus increasing its manufacturing capacity.

FINANCIAL PERFORMANCE

Subject recorded a gross turnover of Rs 639.900 millions up by 106.500 millions over the previous year. The company has earned Post-tax profits of Rs. 3000.000 millions.

Revenues from exports increased from Rs. 437.600 millions to Rs. 488.600 millions recording a growth of 11.65%. The revenue from Domestic sales increased from Rs. 95.800 millions to Rs. 151.300 millions recording a growth of 57.93%.

The profitability of the company has also received a setback due to increase in raw material costs and inflation all over the world. However, due to operational efficiency and better realization the company has maintained the bottom line.

AUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED MARCH 31, 2011

Rs. in millions

Particular	Audited	Audited
	Three Months ended 31.03.2011	Year Ended 31.03.2011
Gross Sales / Income
a. Net Sales / Income from Operations (Net of Excise and Discounts)	272.508	831.514
b. Other Operating Income	0.296	38.580
Total Income (a+b)	272.804	870.094
Expenditure
a) (Increase) / Decrease in Stock in Trade and Work In Process	36.463	16.313
b) Consumption of Raw Materials (Net)	161.350	570.893
c) Purchase of Traded Goods	0	0
d) Employee Cost	10.340	32.210
e) Depreciation	4.270	15.978
f) Other Expenditure	43.697	167.380
g) Total Expenditure (a to f)	256.120	802.774
Profit Before Interest and Exceptional Items	16.684	67.320
Interest	5.539	14.108
Profit After Interest but before Exceptional Items (5-6)	11.145	53.212
Tax Expense
a) Current tax	(2.320)	11.024
b) Deferred tax	4.547	4.547
Others	(0.076)	0.000
Total
Net Profit from Ordinary Activities after Tax (9-10)	8.995	37.641
Prior Period Adjustment	(1.175)	0.082
Net Profit for the period (11-12)	10.170	37.560
Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	73.162	73.162
Reserves Excluding Revaluation Reserve	(6.142)	134.512
Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised	1.39	5.13
Public Shareholding
-Number of Shares	3324632	3324632
- Percentage of Shareholding	45.44%	45.44%
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of Shares	Nil	Nil
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil
- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil
b) Non Encumbered
- Number of Shares	3991568	3991568
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%
- Percentage of Shares (as a % of the Total Share Capital of the Company)	54.56%	54.56%

Note:

1. The above results for the year ended 31.03.2011 were reviewed by the Audit Committee and thereafter approved by the Board of Directors in their meeting held on 23^rd May, 2011.

2. The company operates into single business segment namely “Laminates”, Therefore, the information pursuant to Accounting Standard 17 issued by ICAI is not applicable.

3. Status of Investors Grievances Opening as on 01.01.2011- Nil, Received during the Quarter – Nil, solved – Nil, Pending – Nil.

4. There are no audit qualifications in respect of the Accounts of the company for the Year 2010-11

5. The figures for the previous period have been re-grouped and re-arranged wherever necessary to facilitate the comparison.

STATEMENT OF ASSESTS AND LIABILITIES FOR THE PERIOD ENDED 31^ST MARCH, 2011

Rs. In Millions

STATEMENT OF ASSETS AND LIABILITIES	31.03.2011 AUDITED
SHAREHOLDERS FUNDS
1] Share Capital	73.162
2] Reserves & Surplus	134.511
LOAN FUNDS	329.111
DEFERRED TAX LIABILITIES	11.007
TOTAL	547.791
FIXED ASSETS [Net Block]	262.012
INVESTMENT	0.000
DEFERREX TAX ASSETS	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	161.272
Sundry Debtors	118.365
Cash & Bank Balances	10.898
Loans & Advances	124.106
Total Current Assets	414.641
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities	117.407
Provisions	11.455
Total Current Liabilities	128.862
Net Current Assets	285.779
TOTAL	547.791

WEB SITE DETAILS

HISTORY

Subject is a public limited company listed on Bombay stock exchange of India started in 1991 by Late Sh. N.R. Aggarwal. The overall supervision of the Company is being looked after by Mr. Jagdish Gupta (Managing Director). Mr. Satish Gupta (Executive Director) of the company is looking after the production and marketing functions of the company. All the directors of the company are well experienced in this line and the team has experienced professionals from various fields to look after the day to day production activities and quality control.

The present installed capacity of subject is more than 3.5 million sheets of laminates. Subject manufactures laminates in the size of 1220mm x 2440mm, 1225mm x 2500mm, 1300 x 2800mm, 1300mm x 3050mm in thicknesses ranging from 0.4 mm to 20.0 mm in different finishes such as gloss, matt, suede and texture etc. in more than 600 designs under the brand name “STYLAM”

Subject has imported moulds of various finishes from France and Germany. The back sanding of the laminates is done by ITALIAN IMEAS Machine, one of the best manufacturers of sanding machines in the world.

The dedication to quality has enabled the organization to earn ISO 9001 certification. Subject being first in India and among very few in the world who has been awarded with the CE certification for its compact laminates.

Exports

Are already being done in more than 60 countries in the Asia, Africa, Latin and North America, Middle East and 19 countries in Europe, while exclusive supply contracts with foreign manufacturers takes care of the imports.

Marketing

With an experienced marketing team at the helm of affairs and a team of qualified professionals overseeing the day to day activities, Subject is rapidly covering the road of success.

Plant

The Company has an ultra modern plant at Panchkula near the City Beautiful, Chandigarh, in North India. Quality being at the core of operations (latest sophisticated moulds of various finishes have been imported from France and Germany), subject has been certified an ISO 9001:2008 Company, awarded with CE Marking for its Compact laminates and also been recognized as Export House by Government of India.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.43
UK Pound	1	Rs.79.10
Euro	1	Rs.66.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--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.