MIRA INFORM REPORT

Report Date :

27.07.2012

IDENTIFICATION DETAILS

Name :	KAILASH HEALTH CARE LIMITED
Formerly Known As :	KAILASH HOSPITAL AND RESEARCH CENTRE LIMITED
Registered Office :	A-101, New Ashok Nagar, Delhi – 110096
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.08.1993
Com. Reg. No.:	55-054864
Capital Investment / Paid-up Capital :	Rs.60.000 Millions
CIN No.: [Company Identification No.]	U74899DL1993PLC054864
TAN No.: [Tax Deduction & Collection Account No.]	DELK02514B
PAN No.: [Permanent Account No.]	AABCK8840N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject engaged in a Healthcare Services
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1200000
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 – 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

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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 :	A-101, New Ashok Nagar, Delhi – 110096, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	preetigoyal003@gmail.com
Website :	http://www.kailashhealthcare.com
Corporate Office :	H-33, Sector- 27, Noida - 201301, Uttar Pradesh, India
Tel. No.:	91-120-2444444 / 2445566
Fax No.:	91-120-2552323
E-Mail :	khcl@kailashhealthcare.com
Division 1 :	Delhi – Jaipur N.H.8, Behror-301701, Rajasthan, India
Tel. No:	91-1494-222222
Fax. No.:	91-1494-222088
Division 2 :	23, KP-1, Greater Noida – 201305, Uttar Pradesh, India
Tel. No.:	91-120-2321111 / 2322222
Fax. No,:	91-120-2322227
Division 3 :	26, KP-1, Greater Noida – 201305, Uttar Pradesh, India
Tel. No.:	91-120-2321000 / 2327000
Division 4 :	5, Intuitional Area, Vikas Marg, Extend-II, Delhi – 110092, India
Tel. No.:	91-11-22155555 / 22154444
Fax. No.:	91-11-22379260

DIRECTORS

As on 30.09.2011

Name :

Dr. Mahesh Kumar Sharma

Designation :

Chairman and Managing Director

Address :

404, Sector - 15A, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

30.09.1959

Date of Appointment :

01.03.2009

DIN No.:

00158685

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1993PLC054864	KAILASH HEALTH CARE LIMITED	Managing director	02/07/2009	17/08/1993	-	Active	NO
2	U85110DL1998PLC092494	KAILASH HOSPITALS LIMITED	Managing director	05/07/2009	02/03/1998	-	Active	NO
3	U74899DL2001PTC109354	KIRTIMAAN CONSTRUCTIONS PRIVATE LIMITED	Director	24/01/2001	24/01/2001	-	Active	NO
4	U74899DL1990PTC041633	KAILASH MEDICAL AND RESEARCH CENTRE PRIVATE LIMITED	Director	08/08/2005	08/08/2005	-	Active	NO
5	U24232DL2008PTC176143	KAILASH MEDICOS PRIVATE LIMITED	Director	31/03/2008	31/03/2008	15/09/2008	Active	NO
6	U85110DL1998PLC092382	UMA MEDICARE LIMITED.	Director	01/10/2008	01/10/2008	-	Active	NO
7	U24232DL2009PTC186475	KAILASH MEDICAL SHOPS PRIVATE LIMITED	Director	07/01/2009	07/01/2009	01/03/2009	Active	NO

Name :

Mr. Dinesh Chand Sharma

Designation :

Director

Address :

404, Sector - 15A, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

07.12.1961

Date of Appointment :

17.08.1993

DIN No.:

00162058

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1990PTC041633	KAILASH MEDICAL AND RESEARCH CENTRE PRIVATE LIMITED	Director	01/10/1990	01/10/1990	-	Active	NO
2	U74899DL1993PLC054864	KAILASH HEALTH CARE LIMITED	Director	17/08/1993	17/08/1993	-	Active	NO
3	U85110DL1998PLC092494	KAILASH HOSPITALS LIMITED	Whole-time director	30/09/2009	01/04/2009	-	Active	NO

Name :

Dr. Uma Sharma

Designation :

Director

Address :

404, Sector - 15A, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

26.01.1962

Date of Appointment :

17.08.1993

DIN No.:

00776955

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1993PLC054864	KAILASH HEALTH CARE LIMITED	Director	17/08/1993	17/08/1993	-	Active	NO
2	U85110DL1998PLC092494	KAILASH HOSPITALS LIMITED	Director	06/04/1999	06/04/1999	-	Active	NO
3	U85110DL1998PLC092382	UMA MEDICARE LIMITED	Managing director	01/10/2008	15/07/2002	-	Active	NO
4	U74899DL1990PTC041633	KAILASH MEDICAL AND RESEARCH CENTRE PRIVATE LIMITED	Director	08/08/2005	08/08/2005	-	Active	NO
5	U24232DL2008PTC176143	KAILASH MEDICOS PRIVATE LIMITED	Director	31/03/2008	31/03/2008	15/09/2008	Active	NO
6	U24232DL2009PTC186475	KAILASH MEDICAL SHOPS PRIVATE LIMITED	Director	07/01/2009	07/01/2009	01/03/2009	Active	NO

Name :

Mr. Triloki Nath Pandey

Designation :

Director

Address :

B-107, Sector - 15, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

20.06.1932

Date of Appointment :

16.04.2005

DIN No.:

00023557

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L15133UR1990PLC023970	FLEX FOODS LIMITED	Director	01/11/2001	01/11/2001	-	Active	NO
2	U74899DL1993PLC054864	KAILASH HEALTH CARE LIMITED	Director	16/04/2005	16/04/2005	-	Active	NO

Name :

Lt. Gen. Gorakh Nath, PVSM, AVSM

Designation :

Director

Address :

1095, Sector - 37, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

08.06.1933

Date of Appointment :

15.06.2005

DIN No.:

00910208

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899RJ1993PTC023895	EX-SERVICEMEN ARVIND TRANSPORT PRIVATE LIMITED	Director	16/03/1993	16/03/1993	24/09/2010	Active	NO
2	L26912DL1991PLC045449	SAINIK FINANCE AND INDUSTRIES LIMITED	Director	17/12/1999	17/12/1999	-	Active	NO
3	U74899DL1993PLC054864	KAILASH HEALTH CARE LIMITED	Director	15/06/2005	15/06/2005	-	Active	NO

Name :

Mr. Sushil Chandra Tripathi

Designation :

Director

Address :

27, Sector - 15A, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

01.01.1946

Date of Appointment :

25.07.2007

DIN No.:

00941922

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L25199UP1971PLC003392	MODI RUBBER LIMITED	Director	22/09/2006	22/09/2006	23/02/2010	Active	NO
2	U45201DL1999PLC125988	IL AND FS INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED	Director	03/05/2007	26/10/2006	-	Active	NO
3	L65191PN1994PLC076333	INDUSIND BANK LIMITED	Director	18/09/2007	14/02/2007	-	Active	NO
4	L40108TN2006PLC061665	ORIENT GREEN POWER COMPANY LIMITED	Director	27/04/2007	27/04/2007	28/01/2010	Active	NO
5	L17111UP1946PLC001428	MODI SPINNING AND WEAVING MILLS COMPANY LIMITED	Nominee director	31/05/2007	31/05/2007	12/08/2008	Active	NO
6	U65910MH1995PLC220793	RELIANCE CAPITAL ASSET MANAGEMENT LIMITED	Director	24/07/2007	24/07/2007	-	Active	NO
7	U74899DL1993PLC054864	KAILASH HEALTH CARE LIMITED	Director	28/09/2007	25/07/2007	-	Active	NO
8	L63030MH1950GOI008033	SHIPPING CORPORATION OF INDIA LIMITED	Director	29/09/2010	13/12/2007	-	Active	NO
9	U45203MH2005PLC155016	MUMBAI NASIK EXPRESSWAY LIMITED	Additional director	24/01/2008	24/01/2008	21/05/2008	Active	NO
10	L40101DL1989GOI038121	POWER GRID CORPORATION OF INDIA LIMITED	Director	25/04/2008	25/04/2008	25/04/2011	Active	NO
11	L45203MH2001PLC131728	GAMMON INFRASTRUCTURE PROJECTS LIMITED	Director	15/09/2008	21/05/2008	-	Active	NO
12	U40300DL2007PLC163679	IL AND FS ENERGY DEVELOPMENT COMPANY LIMITED	Director	22/07/2008	19/06/2008	-	Active	NO
13	U40101TR2004PLC007544	ONGC TRIPURA POWER COMPANY LIMITED	Nominee director	18/09/2008	18/09/2008	17/06/2009	Active	NO
14	L74210TN2000PLC045167	SHRIRAM EPC LIMITED	Additional director	25/05/2009	25/05/2009	23/06/2009	Active	NO
15	U74900DL2004PLC131118	SAMVARDHANA MOTHERSON FINANCE LIMITED	Director	24/09/2011	14/09/2011	-	Active	NO
16	L74899DL1956GOI002674	THE STATE TRADING CORPORATION OF INDIA LIMITED	Additional director	29/09/2011	29/09/2011	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Preeti Bansal
Designation :	Company Secretary
Address :	68 D, Poket - F, Mayur Vihar Phase- II, Delhi, India
Date of Birth/Age :	21.01.1983
Date of Appointment :	24.04.2008
Pan No.:s	AILPB5223F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Dinesh Chand Sharma	3600
Mahesh Kumar Sharma	4176100
Uma Sharma	936100
Umesh Kumar Sharma	3100
Sandeep Garg	2000
Ashriya Garg	2000
Sangeeta Garg	2000
Varun	2000
Ajay Kumar	100000
Kartik Sharma	606000
Pallavi Sharma	165000
Sharam Pal Garg	2100
Total	6000000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	98.17
Other top fifty shareholders	1.83
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject engaged in a Healthcare Services

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank, Sector 1, Noida – 210301, Uttar Pradesh, India

· Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	118.600	155.642
Rupee term loans others secured	7.968	10.492
Working capital loans banks secured	157.032	155.509
Total	283.600	321.643
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	24.263	28.704
Deposits related parties unsecured	10.000	14.800
Total	34.263	43.504

Banking Relations :	--
Auditors :
Name :	Mohan Lal Agarwal and Company Chartered Accountants
Address :	D-251, 1^st Floor Gali No. 10 Laxmi Nagar, Delhi – 110092, India
PAN.:	AADFM7781R
Subsidiaries Company :	Kailash Hospitals Limited CIN No.: U85110DL1998PLC092494
Company / Firm in Which Control Exists	· Kailash Medical and Research Centre Private Limited · Uma Medicare Limited · Kirtiman Constructions Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		60.000	60.000	60.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		256.701	195.430	154.625
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		316.701	255.430	214.625
LOAN FUNDS
1] Secured Loans		283.600	321.643	302.033
2] Unsecured Loans		34.263	43.504	45.368
TOTAL BORROWING		317.863	365.147	347.401
DEFERRED TAX LIABILITIES		20.566	22.042	23.118
Other Liabilities		54.830	69.325	59.742
TOTAL		709.960	711.944	644.886
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		401.438	360.802	389.098
Capital work-in-progress		0.251	67.096	55.304
INVESTMENT		44.160	44.160	3.900
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.449	35.731	36.189
	Sundry Debtors	282.085	242.848	180.218
	Cash & Bank Balances	7.902	10.097	6.080
	Other Current Assets	3.082	1.741	0.000
	Loans & Advances	79.150	48.951	96.159
Total Current Assets		398.668	339.368	318.646
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	76.976	51.299	89.535
	Other Current Liabilities	33.090	24.023	21.403
	Provisions	24.491	24.407	11.151
Total Current Liabilities		134.557	99.729	122.089
Net Current Assets		264.111	239.639	196.557
MISCELLANEOUS EXPENSES		0.000	0.247	0.027
TOTAL		709.960	711.944	644.886

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1235.030	994.123	868.771
		Other Income	6.675	7.688	11.892
		TOTAL (A)	1241.705	1001.811	880.663
Less	EXPENSES
		Consumption materials changes inventories	437.343	326.265
		Manufacturing service costs	322.989	285.784	727.756
		Employee related expenses	214.039	163.571
		Administrative selling other expenses	58.093	49.815
		TOTAL (B)	1032.464	825.435	727.756
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		209.241	176.376	152.907
Less	FINANCIAL EXPENSES (D)		31.160	33.524	27.973
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		178.081	142.852	127.934
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.039	48.701	44.847
	PROFIT BEFORE TAX (E-F) (G)		124.042	94.151	80.087
Less	TAX (H)		41.851	30.857	27.795
	PROFIT AFTER TAX (G-H) (I)		82.191	63.294	52.292
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		70.744	53.439	47.206
Less	APPROPRIATIONS
		Transfer to General Reserve		25.000	25.000
		Dividend		18.000	6.000
		Interim Dividend Paid	45.919	0.000	12.000
		Tax on Dividend		2.989	3.059
	BALANCE CARRIED TO THE B/S		107.016	70.744	53.439
	Earnings Per Share (Rs.)		13.70	10.55	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.62	6.32	5.94
Net Profit Margin (PBT/Sales)	(%)	10.04	9.47	9.22
Return on Total Assets (PBT/Total Assets}	(%)	15.50	13.45	11.31
Return on Investment (ROI) (PBT/Networth)		0.34	0.37	0.37
Debt Equity Ratio (Total Liability/Networth)		1.43	1.82	2.19
Current Ratio (Current Asset/Current Liability)		2.96	3.40	2.61

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	(Yes)
2]	Locality of the firm	(Yes)
3]	Constitutions of the firm	(Yes)
4]	Premises details	(No)
5]	Type of Business	(Yes)
6]	Line of Business	(Yes)
7]	Promoter's background	(Yes)
8]	No. of employees	(No)
9]	Name of person contacted	(No)
10]	Designation of contact person	(No)
11]	Turnover of firm for last three years	(Yes)
12]	Profitability for last three years	(Yes)
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	(No)
15]	Capital in the business	(Yes)
16]	Details of sister concerns	(Yes)
17]	Major suppliers	(No)
18]	Major customers	(No)
19]	Payments terms	(No)
20]	Export / Import details (if applicable)	(No)
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	(Yes)
24]	Banking facility details	(Yes)
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	(Yes)
28]	Incorporation details, if applicable	(Yes)
29]	Last accounts filed at ROC	(Yes)
30]	Major Shareholders, if available	(Yes)
31]	PAN of Proprietor/Partner/Director, if available	(No)
32]	Passport No of Proprietor/Partner/Director, if available	(No)
33]	Voter ID No of Proprietor/Partner/Director, if available	(No)

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2011	31.03.2010
Details of indemnity for guarantees given by bank	1.800	5.600
Details of other contingent liabilities	137.800	231.200

FIXED ASSETS

· Land and Land Improvements

· Office Building

· Plant and Machinery

· Office Equipments

· Factory Equipments

· Computer Equipments

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.55.95
UK Pound	1	Rs.86.56
Euro	1	Rs.67.95

INFORMATION DETAILS

Report Prepared by :

NTH

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	7
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.