MIRA INFORM REPORT

Report Date :

12.07.2012

IDENTIFICATION DETAILS

Name :	NIRLEP APPLIANCES LIMITED
Formerly Known As :	Duraware private limited
Registered Office :	B-5, M.i.d.c. Industrial Area, Railway Station Road, Aurangabad – 431 005, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.07.1979
Com. Reg. No.:	11-021470
Capital Investment / Paid-up Capital :	Rs.28.657 Millions
CIN No.: [Company Identification No.]	U27200MH1979PLC021470
TAN No.: [Tax Deduction & Collection Account No.]	NSKD01728G
PAN No.: [Permanent Account No.]	AABCB3162G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Nonstick Cookware.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 470000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. Trade relations are reported to be fair. Business is active. Payments are reported to slow but correct. The company can be considered for business dealing with some cautions.

NOTES :

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

INFORMATION DECLINED BY

Name :	Mr. Prodip Joshi
Designation :	Account Manager
Contact No.:	91-9326203593
Date :	11-07.2012

LOCATIONS

Registered Office / Corporate Office :	B-5, M.i.d.c. Industrial Area, Railway Station Road, Aurangabad – 431 005, Maharashtra, India
Tel. No.:	91-240-2376121 / 802 / 802 Ext: 117; / 2376788
Fax No.:	91-240-2376214
E-Mail :	mahesh.singhi@nirlep.com admin@nirlep.com autodiv@nirlep.com nityanand@nirlep.com mukund@nirlep.com consumercare@nirlep.com.
Website :	www.nirlep.com
Factory 1 :	B-6 and 7, M.I.D.C. Area, Station Road, Aurangabad – 431 005, Maharashtra, India
Factory 2 :	21A-24A, Additional M.I.D.C. Area, Jalana – 431 203, Maharashtra, India
Factory 3 :	Located at Khandewadi
Branch Offices :	Located At · Rajasthan · Chandigarh · Assam · Lucknow · Kolkata · Jharkhand · Bihar · Chhattisgarh · Maharashtra · Gujarat · Indore · Tamilnadu · Karnataka · Kerala · Hyderabad

DIRECTORS

As on 30.08.2011

Name :	Mr. Muknd Nilkanth Bhogale
Designation :	Managing Director
Address :	8, Mitramandal Co-Operative Housing Society, Osmanpura, Aurangabad – 431 005, Maharashtra, India
Date of Birth/Age :	13.05.1958
Date of Appointment :	01.08.1980
DIN No.:	00072564
Name :	Mr. Nityanand Jayant Bhogale
Designation :	Director
Address :	21, Jayanagr, Aurangabad – 431 005, Maharashtra, India
Date of Birth/Age :	17.06.1961
Date of Appointment :	27.03.2001
DIN No.:	00072530
Name :	Mr. Ramchandra Neelkanth Bhogale
Designation :	Director
Address :	20, Mitramandal Co-Operative Housing Society, Osmanpura, Aurangabad – 431 005, Maharashtra, India
Date of Birth/Age :	08.02.1955
Date of Appointment :	17.12.2006
DIN No.:	00292417
Name :	Mr. Vinayak Manik Joglekar
Designation :	Director
Address :	63/3 Swapnarekha, Karve Road, Pune – 411 004, Maharashtra, India
Date of Birth/Age :	27.05.1955
Date of Appointment :	20.07.1993
DIN No.:	00498121

KEY EXECUTIVES

Name :	Mr. Prodip Joshi
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2011

Names of Shareholders	No. of Shares
Mukund Bhogale	21407
Rajani M. Bhogale	20448
Ramchandra Bhogale	20538
Ramchandra Bhogale (HUF)	200
Saurabh R. Bhogale	560
Shyamala R. Bhogale	16528
Anildatta C. Apte	115
Nityanand J. Bhogale	21838
Malini J. Bhogale	100
Suhas N. Bhogale	720
Fulkrum Financial Services Private Limited, India	99654
Madhav Y. Bhogale	100
Prabhavati S. Bhogale	1755
Atchyut M. Dhamdhere	75
Satish Kulkarni	305
Sanjay P. Sathe	200
Anant M. Kaley	395
Yashwant G. Bhogale	76
Mohan Y. Bhogale and Yashawant Bhogale	60
Vinayak M. Joglekar	100
Sharayu Joglekar	200
G D Sathe	620
Mukti M. Panse	50
Mukesh Sehgal	200
Arun S. Chitnis	180
Subhash K. Paranjape	115
Shanta K. Paranjape	170
Satish K. Paranjape	80
Uma Sons Auto Compco Private Limited, India	9890
Bhogale Coating and Paints Private Limited, India	7000
Prasanna M Bhogale	1200
Shweta M Bhogale	300
Gaurav N. Bhogale	300
Investpole Limited	61095
Total	286574

As on 30.08.2011

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	21.31
Bodies corporate	40.66
Directors or relatives of Directors	36.44
Other top fifty shareholders	1.59
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Nonstick Cookware.

Products :

Product Description	Item Code (ITC Code No.)
Aluminium Non-Stick, Cookware	7615.19
Aluminium Forging	8703.90
Pressure Cooker	76151910
Aluminium Hard Anodises, Enamal Ware, etc	76151940

PRODUCTION STATUS (As on 31.03.2011)

Capacity and production (Non Stick Cookware)

Particulars	31.03.2011 Annual No. of Pcs.
Installed Capacity 1. New Project at B-6/7, Station Road, Aurangabad	6000000
3. A-21/24, MIDC, Jalna	100000
3. Actual Production	7880987
1. A-21/24, MIDC, Jalna	5000
2. Khandewadi Plant	2160000

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· Bank of Maharashtra, Kranti Chowk Branch, J.M. Gandhi Building, Adalat Road, Aurangabad – 431 005, Maharashtra, India

· ICICI Bank Limited

• The Saraswat Co-Operative Bank Limited, RASEC, Kanchan Chambers, Kranti Chowk, Station Road, Aurangabad – 431005, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
I] Cash Credit account (Secured by hypothecation of Raw Materials, Stock in process, stores and book debts)
a. Cash Credit - Bank of Maharashtra, Aurangabad	127.828	34.530
b. Cash Credit - Bank of Maharashtra, Mumbai	0.980	0.621
c. Foreign Currency Denominated Loan	0.000	78.955
d. Packing Credit Limit	1.264	3.100
II] Term Loans (Against Equitable Mortgage of Land, Plant and Machinery, Building and Other fixed assets)
a. Term Loan – new Project B-6, 7 and Khandewadi	100.665	51.081
b. buyer’s Credit	71.160	0.000
III] Car Loans
The Saraswat Co-Operative Bank Limited	2.867	0.076
Total	304.764	168.363
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Deposit from Directors and Shareholders	8.027	9.170
Interest Free Sales Tax Deferral Loan	4.716	5.696
Security Deposit from Dealers	11.006	12.803
Total	23.749	27.669

Banking Relations :	--
Auditors :
Name :	S.V. Gogate and Company Chartered Accountants
Address :	5, Anuradha society, Sant Janabhai Path, Vile Parle, Aurangabad – 400 057, Maharashtra, India
Tel. No.:	91-22-26131839
PAN.:	AABPG4828K

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
335000	Equity Shares	Rs.100/- each	Rs.33.500 millions
15000	15% Preferences Shares	Rs.100/- each	Rs. 1.500 millions
	Total		Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
286574	Equity Shares	Rs.10/- each	Rs.28.657 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		28.657	21.968	18.717
2] Share Application Money		7.808	4.500	0.000
3] Reserves & Surplus		82.502	55.630	44.178
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		118.967	82.098	62.895
LOAN FUNDS
1] Secured Loans		304.764	168.363	125.177
2] Unsecured Loans		23.749	27.669	26.817
TOTAL BORROWING		328.513	196.032	145.262
DEFERRED TAX LIABILITIES		0.137	0.000	0.000
TOTAL		447.617	278.130	214.889
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		264.143	93.713	63.318
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		3.473	2.920	2.319
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	113.404	85.476	79.726
	Sundry Debtors	115.121	120.698	143.505
	Cash & Bank Balances	3.437	3.386	1.058
	Other Current Assets	0.000	0.496	0.496
	Loans & Advances	68.980	84.182	39.255
Total Current Assets		300.942	294.238	264.040
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	97.440	87.137	93.149
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	23.501	25.604	21.783
Total Current Liabilities		120.941	112.741	114.932
Net Current Assets		180.001	181.497	149.108
MISCELLANEOUS EXPENSES		0.000	0.000	0.144
TOTAL		447.617	278.130	214.889

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	654.426	572.722	532.997
		Other Income	2.886	2.351	4.761
		TOTAL (A)	657.312	575.073	537.758
Less	EXPENSES
		Finished goods Consumed	112.144	150.438	135.324
		Raw Material Consumed	286.918	198.054	206.528
		Manufacturing Expenses	54.787	39.679	36.512
		Manpower Expenses	55.970	46.096	40.552
		Administration Expenses	37.526	29.310	23.756
		Advertising & Sales Promotion Expenses	65.510	67.485	52.334
		Preliminary Expenses Written Off	0.000	0.144	2.144
		TOTAL (B)	612.855	531.206	497.150
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		44.457	43.867	40.608
Less	FINANCIAL EXPENSES (D)		21.917	14.113	15.762
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.540	29.754	24.846
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.288	14.246	10.569
	PROFIT BEFORE TAX (E-F) (G)		2.252	15.508	14.277
Less	TAX (H)		0.551	8.932	6.566
	PROFIT AFTER TAX (G-H) (I)		1.701	6.576	7.711
	EARNINGS IN FOREIGN CURRENCY		54.862	55.663	58.171
	IMPORTS
		Plant and Machinery	110.670	13.423	11.847
		Others	26.395	11.682	14.502
	TOTAL IMPORTS		137.065	25.105	26.349
	Earnings Per Share (Rs.)		5.94	29.93	41.20

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.26	1.14	1.43
Net Profit Margin (PBT/Sales)	(%)	0.34	2.71	2.68
Return on Total Assets (PBT/Total Assets}	(%)	0.39	4.00	3.23
Return on Investment (ROI) (PBT/Networth)		0.02	0.19	0.23
Debt Equity Ratio (Total Liability/Networth)		3.78	3.76	4.14
Current Ratio (Current Asset/Current Liability)		2.49	2.61	2.30

LOCAL AGENCY FURTHER INFORMATION

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	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	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	--
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

DETAILS OF SUNDRY CREDITORS

Rs. In Millions

Particular	31.03.2011	31.03.2010	31.03.2009
Creditors for Purchases	39.824	40.117	60.304
Creditors for Expenses and other	57.616	47.020	32.845
Total	97.440	87.137	93.149

OPERATING RESULTS

The company has absorbed all the accumulated losses and having a surplus of Rs. 2.252 Millions before tax. Company is having surplus of Rs. 1.914 Millions after providing for Income Tax during this year.

Sales turnover for the year was higher by 14.27% at Rs. 654.426 Millions compared to Rs.572.722 Millions in the previous year. Profit after tax and dividend was lower at Rs. 1.701 Millions as compared to Rs. 6.575 Millions in the previous year.

EXPANSION PLAN

The Directors also have pleasure in informing you that company has already installed all the imported machineries at new Unit-III situated at Khandewadi 12 Kms from Aurangabad to manufacture aluminium non-stick cookware and it was inaugurated by Hon’ble Education Minister Mr.Rajendra Darda on 12th December, 2010 and production has also started smoothly. The plant capacity is approx 3.00 lacs pcs per month.

EXPORT

The export turnover for the year was lower at Rs. 54.862 Millions as compared to previous year’s 556.63. Decrease in export turnover was mainly on account of a fluctuation in Exchange rate of Foreign Currency.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27200MH1979PLC021470
Name of the company	NIRLEP APPLIANCES LIMITED
Address of the registered office or of the principal place of business in India of the company	B-5, M.i.d.c. Industrial Area, Railway Station Road, Aurangabad – 431 005, Maharashtra, India E-Mail: mahesh.singhi@nirlep.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90242754
Type of charge	· Immovable property · Movable property (not being pledge)
Particular of charge holder	Bank of Maharashtra, Kranti Chowk Branch, J.M. Gandhi Building, Adalat Road, Aurangabad – 431 005, Maharashtra, India brmgr301@mahabank.co.in
Nature of instrument creating charge	Composite deed of Hypothecation for all facilities dated 01.06.2011
Date of instrument Creating the charge	01.06.2011
Amount secured by the charge	Rs. 402.200
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest shall be charged on outstanding in the said account at such rate or rates i.e. Base rate + 4.75% for CC and Base+5.25% and as per sanctioned letter and hypothecation deed dated 01.06.2011. Terms of Repayment Repayment of amount as per sanctioned letter and hypothecation deed dated 01.06.2011. Margin The Borrowers agrees to maintain minimum margin of 25% against stocks, 35% against Book debts, 10% for EPC, BG, LC and Nil for FOBN, in favour of Bank and details as per hypothecation deed dated 01.06.2011. Extent and Operation of the charge The charge will be operate till the amount of loan along with interest and other charges or repaid by the company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Mortgage of land and building at plot no. A-21, A-22, A-23 and A-24 at Jalna MIDC, Jalana. Mortgage of Land and Building at Plot No. B-5, 6 and 7 at MIDC Area, Railway Station Road, Aurangabad. Flat No. 101, 102, 103 and 105 situated at "Nirlep House", 1178, G.D. Ambekar Marg, Parel Mumbai - 12. Mortgage of Land and Building situated at Gut No. 16, Naigaon, Khandewadi, Tq.- Paithan, District-Aurangabad. Mortgage of Land and Building situated at Gut No. 9, Naigaon Khandewadi, Tq.- Paithan, District.-Aurangabad.
Date of instrument modifying the charge	18.03.2010
Particulars of the present modification	A. Working Capital Facilities: a. Fund Based facility: Enhancement from Rs. 130.000 Millions to Rs.145.000 Millions b. Non-fund based facilities: Letter of Credit limit Rs. 25.000 Millions (Revised) Non-fund based facilities : Bank Guarantee Limit Rs. 25.000 Millions (Revised) B. Term Loan: Rs. 7.500 Millions, Rs. 1.500 Millions, Rs. 48.200 Millions and Rs. 150.000 Millions (Existing term loan) Term loan Rs. 6.840 Millions have been repaid.

As per Website Details

Company Profile

Subject established in 1968, marked the launch of Non-Stick technology in the history of Indian kitchens. Today, with 43 years of experience and production of more than 10 million pans, is a synonymous brand and the most preferred name for non-stick cookware in Indian as well as global markets.

Nirlep signifies non-stick in Sanskrit and its strength lies in deep understanding of diverse Indian cooking habits, intrinsic value of being user friendly and its devotion towards revolutionizing kitchens with quality and innovative products. Being first itself is Nirlep's second nature and has many distinctions to its credit when it comes to being the technological guru for non stick cookware in India :-

· 1^st company to produce non stick cookware in India

· 1^st and the only Indian company to export non-stick technology.

· 1^st to develop state of art nonstick coating with in-house expertise

· 1^st to export professional non-stick pans to discerning European markets

Nirlep's non-stick represents India's modern and future cookware and has witnessed notable developments over the last year. To name a few, Nirlep completely revamped its brand identity, giving it a young and fresh look making it lively with today's generation. 12th December 2010 marked the inauguration of a fully automatic ultramodern manufacturing unit to meet the ever increasing needs of non-stick products. And now, probably is the only company, to produce induction compatible cookware in India.

With international certifications of ISO 9000:2008, domestic ISI and many other multinational customer certifications, Nirlep promises quality so strong that it outlasts competition. Besides, innovative marketing strategies, creative advertising and sales promotion activities, effective market segmentation and a strong country wide distribution is what makes Nirlep the leader for non-stick products. All marketing activities are well supported through a strong manufacturing foothold with R and D labs, quality control facilities and reverse integration processes thereby ensuring assured supply of aluminum, injection molded Bakelite handles and paints / coatings.

All Nirlep products conform to European and International standards for cookware and are widely distributed across the country through more than 100 area distributors and 12000 cookware retailers. With a comprehensive kitchen solution range to choose from non stick, pressure cookers, gas stoves, induction cook tops at convenient price points of Rs. 180 up to 7645 Nirlep products are most preferred by India's modern retailers. Also, thanks to a strong e-commerce presence and a dedicated institutional sales team that Nirlep products have gained significant popularity amongst Corporate Gifting sector and makes them the preferred choice of gift.

Nirlep pioneering capabilities are not just limited to domestic market, but a substantial proportion of sales are also linked with exports to developed international markets in Asia, Europe and Africa. Besides the company is a nominated vendor for world largest home supplier- IKEA.

Nirlep believes in three basic tenets - Integrity in Business, Quality and Fair price and over the years, Nirlep has consistently evolved as a brand that anticipates consumers' future needs and creates products that add unprecedented value to the present. Nirlep - A brand that creates to Amaze.

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 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.55.37
UK Pound	1	Rs.85.95
Euro	1	Rs.67.87

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		36

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.