MIRA INFORM REPORT

Report Date :

18.01.2012

IDENTIFICATION DETAILS

Name :	GARDEN REACH SHIPBUILDERS ENGINEERS LIMITED
Registered Office :	43/46, Garden Reach Road, Kolkata – 700024, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.02.1934
Com. Reg. No.:	09-007891
Capital Investment / Paid-up Capital :	Rs.1238.400 Millions
CIN No.: [Company Identification No.]	U35111WB1934GOI007891
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Ship Construction, Ship Repairs, General Engineering and Diesel Engines.
No. of Employees :	4083 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 27000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 Office :	43/46, Garden Reach Road, Kolkata – 700024, West Bengal, India
Tel. No.:	91-33-24698130-31/132/133/134
Fax No.:	91-22-24698130/8150
E-Mail :	secygrse@vsnl.net co.sec@grse.co.in cmd@grse.co.in cmd.grse@nic.in dp@grse.co.in persgrse@vsnl.net dp.grse@nic.in
Website :	www.grse.nic.in

DIRECTORS

As on 17.08.2011

Name :	Rear Admiral A. K. Verma, VSM, IN (Retired)
Designation :	Chairman and Managing Director
Address :	43/46, Garden Reach Road, Kolkata – 700024, India
Name :	Vice Admiral N.N Kumar, AVSM, VSM, IN
Designation :	Part time Govt. Director
Address :	Controller of Warship Production and Acquisition, Naval Headquarters, New Delhi – 110011, India
Name :	Mr. Gyanesh Kumar, IAS
Designation :	Part time Govt. Director
Address :	Joint Secretary (NS), Department of  Defence Production MOD, South Block New Delhi, India
Name :	Cmde H.K. Verma. IN (Retired)
Designation :	Director (Personnel)
Address :	43/46, Garden Reach Road, Kolkata – 700024, West Bengal, India
Name :	Mr. Kallol Kumar Rai
Designation :	Director (Finance)
Address :	43/46, Garden Reach Road, Kolkata – 700024, West Bengal, India
Name :	Cmde R. Ghosh. IN (Retired)
Designation :	Director (Shipbuilding)
Address :	43/46, Garden Reach Road, Kolkata – 700024, West Bengal, India
Name :	Prof.Shekhar Choudhur
Designation :	Part time Non Govt. Director
Address :
Name :	Mr. Amarjit Chopra
Designation :	Part time Non Govt.Director
Name :	Mr. P. C .Sharma
Designation :	Part time Non Govt. Director

KEY EXECUTIVES

Name :	Mr. Sandeep Mahapatra
Designation :	Company Secretary
Name :	Mr. K. S. Verma
Designation :	General Manager (IE and P)
Name :	Mr. Barun Kumar Sahu, IAS
Designation :	Chief Vigilance Officer
Name :	Mr. Arup Ratan Pal
Designation :	Chief General Manager (ERP)
Name :	Mr. S. Basu
Designation :	Chief General Manager (Materials)
Name :	Cdr. A. K. Das, IN (Retired)
Designation :	Chief General Manager (FOJ)
Name :	Cdr. S. Bhaduri, IN (Retired)
Designation :	Chief General Manager (RBD)
Name :	Mr. K. S. Verma
Designation :	General Manager (IE and P)
Name :	Mr. Kanu Priya Chattoraj
Designation :	General Manager (Human Resource and Administration)
Name :	Cmde S. Mathivanan IN(Retired)
Designation :	General Manager Yard Modernisation
Name :	Cdr. D. Pati, IN (Retired)
Designation :	General Manager (FIB)
Name :	Mr. P. K. Mitra
Designation :	General Manager (Finance)
Name :	Captain S K S Kushwaha, IN (Retired)
Designation :	General Manager( Main Works)
Name :	Mr. Gautam Manna
Designation :	General Manager(Consultant) (C and CP)
Name :	Cdr. N. D. Rao, IN (Retired)
Designation :	General Manager(QA)
Name :	Mr. A. Bhattacharya
Designation :	General Manager(Design)
Name :	Mr. S.P.Singh
Designation :	General Manager (CP)
Name :	Mr..D. Vijayam
Designation :	General Manager (Engg)
Name :	Mr. S.P. Ghosh
Designation :	General Manager (Planning)
Name :	Mr. S. Mukherjee
Designation :	Additional General Manager (TU)
Name :	Cdr. P. K. Sikdar
Designation :	Additional General Manager (DEP)
Name :	Mr. A. K. Pal
Designation :	Dy.General Manager (TTC)
Name :	Cdr. Harish Kumar, IN (Retired)
Designation :	Regional Deputy General Manager, New Delhi
Name :	Cdr. B. D. Maheshwari, IN (Retired)
Designation :	Dy. General Manager Mumbai

BUSINESS DETAILS

Line of Business :

Ship Construction, Ship Repairs, General Engineering and Diesel Engines.

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
Ship Construction	89060000
Ship Repairs and General Engineering	97900000
Diesel Engines	84080000

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Production Statistics Industrial Licenses
Deep Tubewell Turbine pump	No	720	720	49
Ship Repair	*	--	1200
(a) Shipbuilding	* **	3200	3230$	1935 +3484
(b) General Engineering	* **	1800	2500	515 +2633
Diesel Engine- Large/Medium/Slow Speed (275H.P. to 20000 H.P.)
K. Z.	No	168	2	--
G.V/Bergen/MTU	No		36	14
R.V.	No		48	--
Deck Machinery :
i) Winch (Marine and Industrial)	No	50	50	--
ii) a) Eledric Anchor Windlass	No	20	20	14
b) Electric Capstan	No	12	12	5
iii) HTS	No	3	3	3
iv) Boat gavits for Shjps	Sets	40	40	2
Production Statistics – Letter of Intent
Steel plant Equipment	Tons	1000	1000	--

(*) Tons for Fabrication

(**) Fabrication for other jobs

$ Steel throughput capacity reassessed by NPC and approved in 262^nd meeting of the Board of Directors

GENERAL INFORMATION

No. of Employees :	4083 (Approximately)
Bankers :	· The State Bank of India · Allahabad Bank · Indian Bank · HDFC Bank · ICICI Bank

Banking Relations :	--
Auditors :
Name :	L B Shah and Company Chartered Accountants
Address :	GF-1, Gillander House, 8, Netaji Subhas Road, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22425858/5407/4277
Fax No.:	91-33-22420650/22302846
E-Mail :	lbjha@lbjha.com

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.100/- each	Rs.1250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1238400	Equity Shares	Rs.100/- each	Rs.1238.400 Millions

Note:

Of the above shares, 69997 shares were alloted as fully paid up pursuant to a contract without payment being received in cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1238.400	1238.400
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		5594.741	4725.471
4] (Accumulated Losses)		0.000	0.000
NETWORTH		6833.141	5963.871
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		6833.141	5963.871
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1740.214	1489.745
RETIRED FIXED ASSETS		3.887	3.047
Capital work-in-progress		1214.406	1122.003
INVESTMENT		0.044	0.044
DEFERREX TAX ASSETS		23.721	77.772
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23069.535	15315.472
	Sundry Debtors	1429.994	1055.551
	Cash & Bank Balances	1856.688	4678.563
	Other Current Assets	56.216	112.790
	Loans & Advances	8539.758	9081.401
Total Current Assets		34952.191	30243.777
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3823.399	3331.565
	Other Current Liabilities	25885.896	21656.470
	Provisions	1392.027	1984.482
Total Current Liabilities		31101.322	26972.517
Net Current Assets		3850.869	3271.260
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		6833.141	5963.871

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	10412.174	8619.869
		Sale of Scrap	42.866	38.409
		Other Income	1054.425	1054.987
		TOTAL (A)	11509.465	9713.265
Less	EXPENSES
		Consumption of Raw Materials and Components Sub-Contract and Other	5717.704	5140.004
		Direct Expenses	857.176	320.141
		Consumption of Stores	26.354	28.264
		Employees Remuneration and Benefits	2600.365	2370.370
		Power and Fuel	78.846	71.477
		Repairs and Maintenance	126.342	84.979
		Expenses Directly related to Projects	16.500	4.486
		Other Expenses	326.211	286.791
		Deferred/Development expenses written off	0.000	0.097
		Provision for Bad and Doubtful Debts	6.375	0.001
		Retirement of Assets (Profit/ Loss)	0.576	(10.159)
		Prior Period adjustments	5.718	(28.956)
		TOTAL (B)	9762.167	8267.495
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1747.298	1445.770
Less	FINANCIAL EXPENSES (D)		15.011	62.272
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1732.287	1383.498
Less/ Add	DEPRECIATION/ AMORTISATION (F)		104.656	76.196
	PROFIT BEFORE TAX (E-F) (G)		1627.631	1307.302
Less	TAX (H)		470.495	163.153
	PROFIT AFTER TAX (G-H) (I)		1157.136	1144.149
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3788.283	3047.366
Less	APPROPRIATIONS
		Transfer to CSR Reserve	22.807	0.000
		Transfer to General Reserve	113.433	114.415
		Dividend - Proposed	247.680	247.680
		Tax on Dividend	40.186	41.137
	BALANCE CARRIED TO THE B/S		4521.313	3788.283
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.513
	TOTAL EARNINGS		0.000	0.513
	IMPORTS
		Raw Materials	0.000	75.579
		Stores & Spares	2727.684	2823.824
	TOTAL IMPORTS		2727.684	2899.403
	Earnings Per Share (Rs.)		93.44	923.89

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	10.05	11.78
Net Profit Margin (PBT/Sales)	(%)	15.63	15.17
Return on Total Assets (PBT/Total Assets}	(%)	4.44	4.12
Return on Investment (ROI) (PBT/Networth)		0.24	0.22
Debt Equity Ratio (Total Liability/Networth)		4.55	4.52
Current Ratio (Current Asset/Current Liability)		1.12	1.12

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE HIGHLIGHTS

Financial Parameters: The Company has recorded Profit before Tax of Rs.1627.600 Millions, registering a growth of 25%.

Turnover/Value of Production: The company for the first time in its history has achieved a Turnover of more than Rs.10000.000 Millions. The VOP of Rs.10533.000 Millions is highest achieved by the Company so far registering a growth in turnover by 21% over the Financial Year 2009-10.

MOU Rating: ln terms of parameters arrived at in the Memorandum of Understanding signed with the Government for the year 2010-11, the Company in this year also is expected to be rated as "Excellent" in its performance.

SIGNIFICANT ACHIEVEMENTS DURING THE YEAR:

The fifth, sixth and seventh ships (Yard 2061, 2062 and 2063) of the series of ten Water Jet Fast Attack Craft Project (WJFAC) have been delivered to the Indian Navy during the year. The fifth and sixth ships were delivered on 20 May 2010 and were commissioned subsequently at Visakhapatnam by Shri ESL Narasimhan, His Excellency, the Governor of Andra Pradesh on 29 Jun 2010. The seventh WJFAC was delivered on 25 Aug 2010 and was commissioned subsequently by Mr. Jasti Chelameswar, the Hon’ble Chief Justice of Kerala on 14 Oct 2010 at Kochi.

The eighth and ninth (Yard 2064 and 2065) Water Jet Fast Attack Crafts of the series of ten WJFACs have been handed over (la’ Reading of D-448) to the Indian Navy on 19 Apr 11 and 27 May 11 respectively.

And Anti Submarine Warfare Corvette (ASWC), the first of its Class being built in India, was launched on 19 Apr 10 by Smt. Mamatha M, wife of Shri M,M Palam Raju, Hon’ble Raksha Rajya Mantri.

The Company has successfully completed refit of a Ship from neighbouring country and the same was handed over on 25 Mar 11 after completion of medium refit work including renewal of 64 Tonnes of steel, 05 nos DGs, realignment of Shafting line, 12000/10000 hourly routines of ME and GB, refurbishment of accommodation space and others.

In this financial year GRSE has delivered all the remaining 05 nos 5T and 29 nos 1 2T FRP Boats to Ministry of Home Affairs for Costal Patrolling and Surveillance of the Eastern Coast of India by the Coastal Police of different States.

10 nos modified 12 Ton FRP boats have been delivered in this FY to Andaman and Nicobar Administration for coastal patrolling and surveillance of Andaman and Nicobar Islands.

GRSE has also delivered 13 nos Aluminium Boats to West Bengal Government, Civil Defence Department Disaster Management during floods, natural calamity etc.

First two vessels of IPV class of ships, Yds 2072 and 2073 have been launched simultaneously from the Raja Bagan on 21 Mar 11.

GRSE has bagged a prestigious export order for an Offshore Patrol Vessel and the contract for same has been signed on 04 Mar 11. The ship will be built in the new slipway which is coming up under modernization programme and will be delivered within 42 months from the date of signing of the contract.

Performance of Ship Division:

VOP for ship division has increased to Rs.9558.000 Millions from Rs.7779.200 Millions in the previous year. With lot of efforts new vendors have been developed for fabrication and erection of ASW Corvette and IPV blocks, resulting in achieving of annual steel throughput of 1137 Ton in Financial year 2010-11, which is more than the MoU target of 1124 Ton.

With inclusion of various productivity improvement tools and adoption of Integrated I modular construction technology, the first two lPVs, GRSL Yard 2072 and 2073 were launched in record time of about 05 months from Keel laying with more than 60% completion against a time frame of 09 months taken in case of WJFAC ships. For Yard 3018, the second ASW Corvette, GRSE is confident of achieving 46% completion at the time of launch.

Water Jet Fast Attack Crafts came out to be an extremely successful project but for the indigenously developed Gear Boxes, which impaired the timely delivery of the vessels. Repeated failures of Gear Boxes supplied by M/s KPCL adversely affected the delivery schedule of WJFAC Project. In view of above, GRSE had taken a proactive step of ordering six ship sets of Gearboxes on M/s ZF Marine (a proven one fitted in Bangaram class of ships) on their own with an aim to deliver last six ships without any operational limitation which was of paramount importance to Navy for patrolling along Indian Coastal line. Out of last six ships, three ships were delivered to Indian Navy in FY 2010-11 and remaining two ships were delivered in Apr and May 11. The last WJFAC is expected to be delivered in Jul 2011.

In case of IPVs, inlet ducts of Water Jet unit supplied by M/s Rolls Royce, Sweden and inspected by a subsidiary of M/s ABS at Korea were found to be defective during installation on board and as a result all eight ship set ducts were re-inspected and rectified, as necessary. This delayed the first five IPV projects by three months. However, GRSE is trying to minimize the effect of this delay through better planning and tight monitoring.

Future Outlook

The Company is fully committed to building quality ships for the Indian Navy and Coast Guard. With the takeover of the nearby Rajabagan Dockyard of M/s CIWTC, Kolkata on 01 Jul 06, the company has become the one of the biggest Defence Shipyards in India with substantial growth potential. Rajabagan Dockyard has been refurbished and converted into a full fledged shipyard from where already two ships (8th and 9th WJFAC) were delivered to Indian Navy starting from Keel laying. More ships will roll out in future from this Unit.

Consistent with the acquisition of the additional facilities, the Company is endeavouring to obtain further orders for Naval and Coast Guard Ships for optimization of capacity utilization. Along with limited induction of fresh blood for revamping the aging man power base, the company has already embarked upon an all out measures on modernization, not only for layout of plant / machinery I dock and berth facilities, but also for technology up gradation in planning software, design tools, Networking and e-mailing Software etc to achieve higher productivity in the coming years. SAP ECC6 has been implemented in phase-Il ERP implementation programme covering all units and all business processes of the company. This will result in faster decision making and reduction in cycle time in respect of material procurement and project execution.

The Shipyard is also developing .the outsourcing base with proper quality assurance for hull fabrication, plumbing, cabling, hull outfit etc, to strengthen the Company efforts towards customer satisfaction.

Also Pre-CNC audit for P1 7A Frigates which will be built jointly by MDL and GRSE is completed and awaiting CNC. The company is also targeting Export Orders for 06 nos LSTs, 01 no l00 m LST, 02 nos FIBs and FACs.

Contingent Liabilities have not been provided for in respect of:

1. Guarantees given by Scheduled Banks amounted to Rs.298.903 Millions (Previous year Rs.579.641 Millions) against counter guarantees given by the Company and/or secured by extension of hypothecation of current assets except Fixed Deposits/Margin Money Deposits.

2. Outstanding Contract Performance Indemnity Bonds and Indemnity Bonds for Warranty as on 31.3.20 11 issued by the Company in terms of related contracts in favour of Indian Navy and Director General Border Roads stood at Rs.720.498 Millions (Previous year Rs.847.188 Millions).

3. Unexpired Letters of Credit amounted to Rs.303.536 Millions (Previous year Rs.910.505 Millions) secured by extension of hypothecation of entire Current Assets except. Fixed deposits/margin money deposits.

4. Claims of Rs.129.452 Millions (Previous year Rs.219.053 Millions) not acknowledged as debts.

5. Contingent liability on account of Sales Tax amounts to Rs.55.324 Millions (Previous year Rs.14.990 Millions) which comprises of Rs.54.572 Millions towards assessment dues for the year 2007-08 and . 7.52 lakhs towards disallowance made by Sales Tax Authorities for the year 2003-04 on account of transit sales for Taicher Project. Besides, Sales Tax Authorities have considered certain sale made from DEP for the year 1988-89 as being sale from West Bengal for which a demand was raised for Rs.9.638 Millions. All these amounts have not been acknowledged as debts and accordingly not provided for in the accounts as all the demands are under different stages of appeal.

6. Contingent Liability on account of Excise Duty amounting to Rs.6.250 Millions (Previous Year Rs.6.250 Millions) towards Clearance of Pump has not been acknowledged as debt. Central Excise Dept. has filed a case before Kolkata High court against order of CESTAT which was earlier issued and reconfirmed in favour of GRSE.

Service Tax Authorities have raised a demand of Rs.12.130 Millions (Previous year Rs.12.130 Millions) against imposition of Service Tax on technical fees paid to foreign technicians prior to 18.04.2006. Since GRSE has made appeal before EZB, CESTAT, Kolkata against the impugned demand with due approval of CoD, the same has not been acknowledged as debt and accordingly not provided for in the accounts.

7. Contingent liability on account of Income Tax amounting to Rs.116.644 Millions (Previous Year — NIL)towards disallowance made by Income Tax Authority for the A.Y.2008-09 on account of Provision for Liquidated Damages and addition in the closing stock for slow moving and obsolete items.

8. Liquidated Damages amounting to Rs.91.381 Millions in respect of 10 in number WJFAC vessels and Rs.18.000 Millions in respect of SLNS Sagara, totalling to Rs.109.381 Millions, delays in respect of which had taken place for reasons not attributable to the Company having been caused by factors beyond the control of the Company. The management holds the view that liquidated damages in respect of the above vessels will not be leviable by the government and as such no outflow of resources embodying economic benefits is envisaged for which no provision is required to be held.

FIXED ASSETS

· Freehold Land

· Leasehold Land

· Building

· Railway Siding

· Plant and Machinery

· Docks and Jetties

· Furniture and Fixtures, Office Equipments

· Computers

· Launches, Burgers and Boats

· Motors Cars

· Motor Lorries, Trailers, Mobile Cranes, etc

· Softwares

· Enterprise Resource Planning

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.51.07
UK Pound	1	Rs.78.48
Euro	1	Rs.64.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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.