MIRA INFORM REPORT

Report Date :

20.06.2012

IDENTIFICATION DETAILS

Name :	INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED
Registered Office :	9^th Floor, Bank of Baroda Building 16,Parliament Street, New Delhi - 110001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.09.1999
Com. Reg. No.:	55-101707
Capital Investment / Paid-up Capital :	Rs. 200.000 Millions
CIN No.: [Company Identification No.]	U74899DL1999GOI101707
TAN No.: [Tax Deduction & Collection Account No.]	DELI03080D
PAN No.: [Permanent Account No.]	AAACI7074F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in Catering and hospitality and Travel and Tourism.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Aa (73)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 8400000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a Government of India company. It is well established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals of the company is strong and healthy. Directors are reported as experienced and respectable business men. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered excellent 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 – 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 :	9^th Floor, Bank of Baroda Building 16,Parliament Street, New Delhi – 110001, India
Tel. No.:	91-11-23311263/ 64
Fax No.:	91-11-23311259
E-Mail :	companysecretary@irctc.com
Website :	www.irctc.com
Regional Office :	Ginger Rail Yatri Niwas Ajmeri Gate Side, New Delhi, India
Mobile No.:	91-9717640678

DIRECTORS

AS ON 22.09.2011

Name :

Mr. Rakesh Kumar Tandon

Designation :

Managing director

Address :

D-1/72, Gold Croft CGHS, Sector – 11, Dwarka, New Delhi – 110075, India

Date of Birth/Age :

24.01.1955

Date of Appointment :

05.01.2009

DIN No.:

02517137

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	Company/ LLP Status	Defaulting status
1	U74899DL1999GOI101707	INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED	Managing director	05-01-09	05-01-09	Active	NO
2	U60100DL2008PLC185285	ROYALE INDIAN RAIL TOURS LIMITED	Director	29-10-09	10-07-09	Active	NO

Name :

Mr. Nalin Shinghal

Designation :

Director

Address :

B-28, Madhuban, New Delhi – 110092, India

Date of Birth/Age :

25.10.1963

Date of Appointment :

02.01.2007

DIN No.:

01176857

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	Company/ LLP Status	Defaulting status
1	U74899DL1999GOI101707	INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED	Director	02-01-07	02-01-07	Active	NO
2	U60100DL2008PLC185285	ROYALE INDIAN RAIL TOURS LIMITED	Director	27-11-08	27-11-08	Active	NO

Name :

Mrs. Mani Anand

Designation :

Government Director

Address :

3 B, Railway Colony, Tilak Bridge, New Delhi, India

Date of Birth/Age :

23.01.1960

Date of Appointment :

14.05.2010

DIN No.:

03085030

KEY EXECUTIVES

Name :	Mr. Neeraj Kumar Aggarwal
Designation :	Joint General Manager and Company Secretary
Address :	A-1/ 100, Hastal Road, Street No. 16, Uttam Nagar, New Delhi – 110059, India
Date of Birth/Age :	14.08.1974
Date of Appointment :	24.01.2011
PAN No.:	AERPA5977P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.09.2011

Names of Shareholders	No. of Shares
Ministry of Railways on behalf of President of India	19999993
V.K. Gupta	1
Pradeep Bhatnagar	1
Vinay Mittal	2
Pompa Babbar	1
A P Mishra	1
Kamlesh Gupta	1
Total	20000000

AS ON 22.09.2011

Equity Share Breakup	Percentage of Holding
Category
Government [Central and State]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Catering and hospitality and Travel and Tourism.

Products :

ITC Code	Product Descriptions
22011010	Railneer

Services :

· Licensee Catering

· Internet Ticketing

· Railneer

· Tourism

· Departmental Catering Business

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Location	Installed Capacity*	Actual Production**
Railneer Packaged Drinking Water	Bottles of 1000 ml	Nangloi	33354	32796
		Danapur	33354	31234
Total			66708	64030

* The installed capacity is based on three-shift basis for 327 Days.

** Installed Capacity of Rail Neer Plant, Danapur increased from 66000 bottles per day to 102000 bottles per day from Jan’2010.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	HDFC Bank Limited ICICI Bank Limited Bank of Baroda Punjab National Bank State Bank of India and its subsidiaries Corporation Bank Oriental Bank of Commerce Syndicate Bank Canara Bank Bank of India Union Bank of India Andhra Bank Indian Bank IDBI Bank Citi Bank Axis Bank Limited Standard Chartered Bank Bank of Rajasthan Yes Bank
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Bhushan Bensal Jain Associates Chartered Accountants
Address :	4648/ 21, Daryaganj, New Delhi – 110002, India
Tel. No.:	91-11-23261054
Fax No.:	91-11-23252876
E-Mail :	bbjassociates_rb@yahoo.co.in
Income-tax PAN of auditor or auditor's firm :	AAAFB4918Q
Joint Venture :	Royale Indian Rail Tours Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs. 10/- each	Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 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		200.000	200.000	200.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1914.104	1427.565	944.581
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2114.104	1627.565	1144.581
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	18.670
TOTAL		2114.104	1627.565	1163.251
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		756.413	807.016	421.254
Capital work-in-progress		163.608	75.999	99.584
INVESTMENT		0.020	25.020	25.020
DEFERRED TAX ASSETS		0.000	9.389	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	62.092	77.883	51.919
	Sundry Debtors	2616.388	2323.194	2397.202
	Cash & Bank Balances	2461.076	1980.043	1373.294
	Other Current Assets	84.165	47.253	44.816
	Loans & Advances	1469.827	1623.108	1334.830
Total Current Assets		6693.548	6051.481	5202.061
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1338.548	1008.991
	Other Current Liabilities	3333.486	3776.303	3833.463
	Provisions	827.451	556.046	751.205
Total Current Liabilities		5499.485	5341.340	4584.668
Net Current Assets		1194.063	710.141	617.393
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2114.104	1627.565	1163.251

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	7541.255	7074.425	6049.057
		Other Income	108.029	145.238	138.611
		TOTAL (A)	7649.284	7219.663	6187.668
Less	EXPENSES
		Consumption materials changes inventories	1525.239	1057.444
		Manufacturing service costs	329.718	252.068
		Employee related expenses	1287.591	1271.276
		Administrative selling other expenses	3064.331	3565.806
		TOTAL (B)	6206.879	6146.594	5348.172
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1442.405	1073.069	839.496
Less	FINANCIAL EXPENSES (D)		2.990	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION(C-D) (E)		1439.415	1073.069	839.496
Less/ Add	DEPRECIATION/ AMORTISATION (F)		141.519	125.473	101.036
	PROFIT BEFORE TAX (E-F) (G)		1297.896	947.596	738.460
Less	TAX (H)		690.033	317.074	273.449
	PROFIT AFTER TAX(G-H) (I)		607.863	630.522	465.011
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		128.422	95.400	89.300
Less	APPROPRIATIONS
		Transfer to General Reserve	450.000	450.000	350.000
		Dividend	141.300	147.500	108.911
	BALANCE CARRIED TO THE B/S		144.985	128.422	95.400
	Earnings Per Share (Rs.)		30.39	31.53	23.25

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.95	8.73	7.52
Net Profit Margin (PBT/Sales)	(%)	17.21	13.39	12.21
Return on Total Assets (PBT/Total Assets}	(%)	17.42	13.82	13.13
Return on Investment (ROI) (PBT/Networth)		0.61	0.58	0.65
Debt Equity Ratio (Total Liability/Networth)		2.60	3.28	4.01
Current Ratio (Current Asset/Current Liability)		1.22	1.13	1.13

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. Constitution 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	No
17. Major suppliers	No
18. Major customers	No
19. Payments terms	No
20. Export / Import details	No
21. Market information	--
22. Litigations that the firm / promoter involved	--
23. Banking Details	No
24. Banking facility details	No
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

FINANCIAL PERFORMANCE

During the year 2010-11, the Corporation achieved a total income of Rs. 7649.300 Millions, a new record, as compared to Rs. 7219.700 Millions in 2009-10 thereby registering a growth of approx. 6 %. Keeping in view the change in Licencee Catering Policy and reduction in service charges for internet bookings , the growth can be viewed with satisfaction. Profit before tax of Rs. 1297.900 Millions (a new record) was achieved during the year 2010-2011 as compared to Rs. 947.600 Millions in the previous year , thereby registering a growth of about 37%. This was achieved with several cost cutting measures, across the corporation and particularly in the area of departmental catering where losses have been brought down to Rs. 550.000 Millions as compared to Rs. 750.000 Millions in the previous year. However, net profit has marginally come down from Rs. 630.500 Millions in 2009-10 to Rs. 607.900 Millions in 2010-2011due to higher Income tax provision. An amount of Rs. 91.200 Millions has been provided towards Haulage Charges up to 20.7.2010 till the announcement of new Catering Policy 2010. The Net Worth of the Corporation has crossed Rs. 2000.000 Millions mark and is Rs. 2114.100 Millions as on 31.3.2011 as compared to Rs. 1627.600 Millions as on 31.3.2010.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

(1) Industries Structure And Development Economic Scenario: The global economic environment continues to be challenging. Coming out of the throes of recession of past two years, large parts of the developed world are faced with varying degrees of uncertainty. Many governments especially in the Euro area, are laden with the significant amount of public debts. While the world economy is still struggling for recovery, India after an initial dip has come out of this quickly and again designated as one of the most attractive investment destinations across the globe. The domestic environment is conducive for growth and private consumption expenditure is projected to grow by a healthy 7.5 per cent and gross fixed capital formation by 14.6 per cent. The overall growth of Gross Domestic Product (GDP) at factor cost at constant prices, as per Advance Estimates, was 8.6 per cent in 2010-11 representing an increase from the revised growth of 8.0 per cent during 2009-10, according to the Advance Estimate (AE) of Central Statistics Office (CSO). The cumulative amount of FDI equity inflows from April 2000 to February 2011 stood at US$ 193.7 billion, according to the data released by the Department of Industrial Policy and Promotion (DIPP). The humungous increase in investment mirrors the foreign investors’ faith in the Indian markets.

Catering and Tourism Sectors Catering and Hospitality Industry Overview: The food industry in India is one of the largest in terms of production, consumption and growth prospects. By 2015, according to an assessment the Indian Food Industry is expected to reach US$300 billion from the current level of US$180 billion. The growth in the size of the middle to upper classes which is projected to increase at more than 300 % between 2005 and 2015, and youth population that is expected to grow annually by 11 %, will lead to increase in demand for convenient travel, variety and demand for hygienic, healthy and food full of variety. An increase in Per Capita

Disposable Income by 8 % over the last 5 years has led to an increase in Per Capita Consumption Expenditure on food by over 20% but this is still much below as in China, US etc. Catering services business is a rewarding option with huge potential of growth. Considering the importance of social celebrations and events, corporate cultures and social lifestyle, the catering industry is expected to expand its status and profitable nature further. Catering service providers are finding recognition at small as well as big levels. The catering industry is not only favorable for home based businesses, it is helping the social caterers to make big profits. Though, it is obvious that only those service providers in the industry succeed who are able to withstand this demanding business option. The restaurant industry came up with good figures even when other industries were struggling during the period of recession. The consumers in the India middle and upper class spend about 30 percent of their total food budget in the restaurants. This clearly indicates how the establishments like restaurants, cafes and other types of eateries are growing their profits year after year. The catering services industry in the developing countries too is enjoying the favorable period of growth. The countries like India has its people adopting to the new lifestyles which include better food preparations for different types of social and cultural functions and increased habit of people to eat in restaurants regularly. The main promising factors that ensure that the catering industry is going to maintain its consistent growth for the years to come include: · Household with higher income are helping the catering industry to flourish. In the developing countries as well, the household income is increasing at a fast pace. So, more and more people are attracted towards the catering industry and the services offered by it. · Corporate culture that holds a number of meetings, conferences, business lunch and dinner parties are becoming greatly dependent upon the catering industry services. The trend might not be that new for the developed countries, but the countries that have recently discovered the corporate culture are helping in the industry to attain popularity. · Birthday parties, wedding receptions and other types of family events are more and more relying upon the catering service providers. This is mainly because of the increase in number of working mothers that give them less time to do preparations in the kitchen. · Finally, people are getting more attracted towards the fashion of eating out with families and friends. This type of lifestyle is again new for the developing countries.

Hospitality Overview: As per review done by the Confederation of Indian Industries on Hotel Industry, the growth rate is over 10% and taking into account the sanctioned projects for construction of new Hotels, requirement of another 60,000 rooms is estimated by 2015. Business and Budget Hotel segments are the fastest growing in the categories of Hotel requirement for the business of accommodation management in India. As per World Bank study on T&T, India will have fifth place in terms of business travel by end 2015, close to China. Besides IRCTC being a leader in providing comprehensive affordable high standard and quality catering and facility management on PAN India basis, Subject has approached number of State Tourism Board and State Industrial Corporation such as Punjab, Haryana, Chhattisgarh, West Bengal, Bihar, Tamilnadu, Kerala etc. to provide space for setting up of Budget Hotels. Further, State Tourism Board have also been approached to hand over existing properties to Subject for upgradation operation and its maintenance. These properties include tourist complexes, tourist lodges, budget hotels etc.

Tourism Industry Overview: Travel and Tourism is one of the largest industries in terms of employment generation and is estimated to account for almost 8.6 per cent of total employment worldwide. In India, travel and tourism accounts for 5.9 per cent of GDP and 9.2 per cent of employment making it one of the largest sources of employment in country. It is estimated that, travel and tourism can provide 37 million jobs in the next 10 years as against overall additional job requirement of 120 million in India in this period. Latest estimates indicate a total of 750 million domestic tourist trips (with a CAGR of over 13 per cent) as against international arrivals of a little over 5 million with a CAGR of about 6.5 per cent. In recent years, while there has been some decline in inbound tourists, there has been a continuous growth in the number of domestic tourists. This is an indicator of the resilience of this sector even in case of a severe economic down turn. There is, at the same time, a severe shortage of infrastructure as well as trained manpower for supporting required growth in this sector which prevent India from achieving its true potential with regard to development of tourism. Indian Railway plays a key role in tourism - both as a convenient and economical means of travel as well as a tourism destination in itself. This background of growing demand and resource limitations provides a fertile ground for growth of a pro-active tourism organization like subject.

(2) SEGMENT-WISE PERFORMANCE: Subject operates in two major business areas i.e. Catering and hospitality and Travel and Tourism. The catering division has three segments namely, Licensee catering, Departmental Catering and Railneer, packaged drinking water. During the year 2010-11, the Licensee catering business registered an income of Rs. 3122.300 millions as against Rs. 3679.100 millions achieved during 2009-10. The Segment result (profit) achieved was Rs. 787.400 millions during the year 2010-11 as against Rs. 642.600 millions during the year 2009-2010. The decline in the income of the segment was due to transfer of licencee catering business to the Railways on implementation of Catering Policy-2010. The Departmental Catering business registered an income of Rs. 1985.800 millions during the year as against Rs. 1470.600 millions achieved during year 2009-10. The loss of departmental catering during the year 2010-11 has come down from Rs. 747.400 millions to Rs. 554.700 millions in spite of high inflation rate in food products and no increase in sales prices. This could be achieved by higher sales with the lower manpower cost and control on raw material consumption etc. During the year 2010-11, the Railneer business registered an income of Rs. 239.600 millions as against Rs. 224.300 millions achieved during year 2009-10. This does not include sale of Rail Neer through departmental catering, amounting to Rs. 193.600 millions as against Rs. 137.500 millions in the previous year. The profit achieved was Rs. 27.300 millions during the year as against Rs. 88.900 millions of the previous year. The profitability of this segment has come down mainly due to higher perform prices (main raw material) which is directly linked to petroleum prices. During the year 2010-11, the Tourism business registered an income of Rs. 670.400 millions as against Rs. 447.300 millions achieved during year 2009-10, indicating a growth of about 50 %. The Segment result (loss) of Rs. 62.200 millions was suffered during the year as against Rs. 28.100 millions during previous year, mainly because Rs. 25.000 millions provision made on investment in Joint venture Company. During the year 2010-11, the Internet Ticketing business registered an income of Rs. 1429.200 millions as against Rs. 1228.900 millions achieved during year 2009-10. The Segment result (profit) achieved was Rs. 941.400 millions during the year as against Rs. 837.600 millions. Increase in internet ticketing was witnessed due to good marketing efforts, upgraded infrastructure and improved customer care.

(3) Outlook: The Company needs to reinvent itself keeping in view the issues brought in this report. For ensuring better future performance it has to look for opportunities for outside the railways and cash on same besides ensuring greater support from Indian Railways by providing excellent services in railway related areas.

CONTINGENT LIABILITIES:

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010
Claims against the Corporation pending appellate/judicial decisions:
Income Tax	3.812	4.913
VAT	2.149	0.000
Employee Court Case - SCZ	0.920	0.000
Total	6.881	4.913
Claims against the corporation not acknowledged as debt
Service Tax	42.728	47.288
Rent to Eastern Railways	0.511	0.000
Others	0.190	0.000
Total	43.429	47.288

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. 56.01
UK Pound	1	Rs. 87.85
Euro	1	Rs. 70.54

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		73

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.