MIRA INFORM REPORT

Report Date :

23.06.2012

IDENTIFICATION DETAILS

Name :	SANMAR CONSOLIDATIONS LIMITED (w.e.f. 20.06.2011)
Formerly Known As :	SANMAR ENGINEERING CORPORATION LIMITED SANMAR ENGINEERING CORPORATION PRIVATE LIMITED
Registered Office :	9, Catherdral Road, Chennai-600086, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.06.2001
Com. Reg. No.:	18-047307
Capital Investment / Paid-up Capital :	Rs. 16.500 Millions
CIN No.: [Company Identification No.]	U29199TN2001PLC047307
TAN No.: [Tax Deduction & Collection Account No.]	CHES15103E
PAN No.: [Permanent Account No.]	AAFCS6591Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in Investment in shares and securities of group companies
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (65)

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 30240000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an well established company having excellent track record fundamentally, company secure to be healthy and strong. Financial performance is good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealing 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 / Group Corporate Office :	9, Catherdral Road, Chennai-600086, Tamilnadu, India
Tel. No.:	91-44-28128722 / 28128500 / 28128400 / 28128200 / 28128600
Fax No.:	91-44-28112627 28111902 / 28112437 / 42109505
E-Mail :	mr1@sanmargroup.com

DIRECTORS

AS ON 29.09.2011

Name :	Mr. Narayanan Sankar
Designation :	Chairman
Address :	194, TTK Road, Chennai-600018, Tamilnadu, India
Date of Birth/Age :	06.06.2011
Date of Appointment :	06.06.2011
DIN No.:	00007843

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	U65993TN1979PLC007711	SANMAR HOLDINGS LIMITED	Director	06-10-80	06-10-80	-	Active	NO
2	L26942TN1946PLC000931	THE INDIA CEMENTS LIMITED	Director	15-09-89	15-09-89	15-09-07	Active	NO
3	U65991TN1921NPL001337	CHENNAI WILLINGDON CORPORATE FOUNDATION	Director	28-04-91	28-04-91	-	Active	NO
4	U29296TN1984PLC011377	F.L.SMIDTH LIMITED	Director	10-12-97	10-12-97	21-07-06	Amalgamated	NO
5	U14299TN1996PTC034056	FLSMIDTH MINERALS PRIVATE LIMITED	Alternate director	11-12-97	11-12-97	18-03-09	Amalgamated	NO
6	U91990TN1999NPL042106	CHENNAI HERITAGE	Director	22-03-99	22-03-99	-	Active	NO
7	U73100TN2002NPL050076	SHL RESEARCH FOUNDATION	Director	24-02-03	24-02-03	-	Active	NO
8	U45202TN1991PTC021010	NS FAMILY CONSOLIDATIONS PRIVATE LIMITED	Director	02-05-03	02-05-03	-	Active	NO
9	U65991TN1991PTC021007	NS FAMILY INVESTMENTS PRIVATE LIMITED	Director	02-05-03	02-05-03	-	Active	NO
10	U65991TN1990PLC019237	SHL SECURITIES (ALPHA) LIMITED	Additional director	31-10-11	01-04-04	-	Active	NO
11	L19201WB1931PLC007261	BATA INDIA LIMITED	Director	02-02-05	02-02-05	28-07-11	Active	NO
12	U65991TN1991PTC021532	N SANKAR PROPERTIES AND HOLDINGS PRIVATE LIMITED	Director	26-05-05	26-05-05	-	Active	NO
13	L99999MH1961PLC012003	NOCIL LIMITED	Director	29-07-05	29-07-05	-	Active	NO
14	U74990TN1991PTC021361	N K TRADING AND CONSULTANCY PRIVATE LIMITED	Director	06-02-06	06-02-06	-	Active	NO
15	U74999TN2005PTC057945	V S TRADING AND CONSULTANCY PRIVATE LIMITED	Director	06-02-06	06-02-06	-	Active	NO
16	U74999TN2005PTC057947	M SANKAR TRADING AND CONSULTANCY PRIVATE LIMITED	Director	06-02-06	06-02-06	-	Active	NO
17	U74999TN2005PTC057946	C SANKAR TRADING AND CONSULTANCY PRIVATE LIMITED	Director	06-02-06	06-02-06	-	Active	NO
18	U74999TN1992PTC022029	STARGATE ENTERPRISES PRIVATE LIMITED	Director	03-04-06	03-04-06	08-12-08	Active	NO
19	U26941TN2000PTC044765	FLSMIDTH PRIVATE LIMITED	Director	22-08-06	22-08-06	-	Active	NO
20	U29199TN2001PLC047307	SANMAR CONSOLIDATIONS LIMITED	Director	29-09-11	06-06-11	-	Active	NO

Name :	Mr. Vijay Sankar
Designation :	Director
Address :	194, TTK Road, Chennai-600018, Tamilnadu, India
Date of Birth/Age :	06.06.2011
Date of Appointment :	06.06.2011
DIN No.:	00007875

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	U65993TN1979PLC007711	SANMAR HOLDINGS LIMITED	Director	11-11-91	11-11-91	-	Active	NO
2	U74140TN2000PLC044962	SILKROUTE INDCHEM LIMITED	Director	18-12-00	18-12-00	07-06-08	Active	NO
3	U29199TN2001PLC047307	SANMAR CONSOLIDATIONS LIMITED	Director	29-09-11	25-06-01	-	Active	NO
4	U73100TN2002NPL050076	SHL RESEARCH FOUNDATION	Director	24-02-03	24-02-03	-	Active	NO
5	U65991TN1991PTC021007	NS FAMILY INVESTMENTS PRIVATE LIMITED	Director	02-05-03	02-05-03	-	Active	NO
6	U45202TN1991PTC021010	NS FAMILY CONSOLIDATIONS PRIVATE LIMITED	Director	02-05-03	02-05-03	-	Active	NO
7	U65991TN1990PLC019237	SHL SECURITIES (ALPHA) LIMITED	Additional director	31-10-11	01-04-04	-	Active	NO
8	U85320TN1999NPL041989	YOUNG PRESIDENTS ORGANISATION (CHENNAI CHAPTER)	Director	02-07-05	02-07-05	-	Active	NO
9	U24231TN2000PTC045797	POES GARDEN PROPERTIES PRIVATE LIMITED	Director	06-02-06	06-02-06	01-10-10	Active	NO
10	U74999TN2005PTC057945	V S TRADING AND CONSULTANCY PRIVATE LIMITED	Director	06-02-06	06-02-06	-	Active	NO
11	U74999TN1992PTC022029	STARGATE ENTERPRISES PRIVATE LIMITED	Director	03-04-06	03-04-06	08-12-08	Active	NO
12	L65991TN1941PLC001128	THE K C P LIMITED	Additional director	07-11-11	07-11-11	-	Active	NO
13	U91990MH2011NPL225012	YPO WPO SOUTH ASIA CHAPTER	Director	16-12-11	16-12-11	-	Active	NO

Name :	Mr. Sankaran Subbaiah
Designation :	Director
Address :	2/1, IV, Street, Balaji Nagar, Chennai-600014, Tamilnadu, India
Date of Birth/Age :	07.05.1954
Date of Appointment :	01.04.2008
DIN No.:	00009172

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	U63090TN1994PLC028616	SANMAR SHIPPING LIMITED	Director	14-05-03	14-05-03	31-03-08	Active	NO
2	U24117TN1989PLC018211	SANMAR PERFORMANCE CHEMICALS AND RESEARCH SERVICES LIMITED	Director	14-05-03	14-05-03	-	Dissolved	NO
3	U24231TN1989PLC054653	BANGALORE GENEI LIMITED	Director	09-12-03	09-12-03	-	Dissolved	NO
4	U33111TN1980PLC008499	BS AND B SAFETY SYSTEMS (INDIA) LIMITED	Director	01-04-04	01-04-04	-	Active	NO
5	U93090TN1985PLC024245	EMERSON PROCESS MANAGEMENT CHENNAI LIMITED	Director	01-04-04	01-04-04	31-03-11	Active	NO
6	U33111TN1987PTC014841	ASCO NUMATICS (INDIA) Private LIMITED	Director	01-04-04	01-04-04	31-07-08	Active	NO
7	U18209TN1987PLC014838	FLOWSERVE SANMAR LIMITED	Director	01-04-04	01-04-04	-	Active	NO
8	U51909TN1998PLC041556	TYCO SANMAR LIMITED	Director	01-04-04	01-04-04	-	Active	NO
9	U28999TN2001PLC047056	XOMOX SANMAR LIMITED	Director	01-04-04	01-04-04	-	Active	NO
10	U33112TN1983PLC009911	SANMAR FOUNDRIES LIMITED	Director	01-04-04	01-04-04	-	Active	NO
11	U24111TN1985PLC055699	INTEC POLYMERS LIMITED	Director	26-07-04	26-07-04	-	Dissolved	NO
12	U24299TN1982PLC009443	SANMAR SPECIALITY CHEMICALS LIMITED	Director	18-05-05	18-05-05	-	Active	NO
13	U65993TN1995PLC030445	SANMAR ENGINEERING SERVICES LIMITED	Director	02-07-07	30-09-06	-	Active	NO
14	U24119TN2002PLC048677	SANMAR GROUP INTERNATIONAL LIMITED	Director	18-10-06	18-10-06	01-04-08	Active	NO
15	U27310TN2007PLC063323	JKM FERROTECH LIMITED	Director	30-04-07	30-04-07	01-06-11	Active	NO
16	U93090TN1996PLC034761	CABOT SANMAR LIMITED	Director	10-07-09	01-04-08	-	Active	NO
17	U29199TN2001PLC047307	SANMAR CONSOLIDATIONS LIMITED	Director	12-09-08	01-04-08	-	Active	NO
18	U74210TN1996PLC034870	SANMAR ENGINEERING TECHNOLOGIES LIMITED	Director	26-09-11	30-04-11	-	Active	NO
19	U65991TN1990PLC019237	SHL SECURITIES (ALPHA) LIMITED	Additional director	02-04-12	04-10-11	10-04-12	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

Names of Equity Shareholders	No. of Shares
SHL Securities (Alpha) Limited, India	799994
N Sankar	1
N Kumar	1
Vijay Sankar	1
M N Radhakrishnan	1
S Sankaran	1
S Subramanian	1
TOTAL	800000

Names of Preference Shareholders	No. of Shares
Sanmar Holdings Limited, India	850000
TOTAL	850000

AS ON 29.09.2011

Equity Shares Break Up	Percentage
Bodies corporate	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Investment in shares and securities of group companies

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	Prasad and Srinath Chartered Accountant
Address :	2^nd Floor, No.199 (Old No.89), T T K Road, Alwarpet, Chennai-600086, Tamilnadu, India
Pan No.:	AAAFP3674M
Holding Company :	SHL Securities (Alpha) Limited, India CIN No.: - U65991TN1990PLC019237 · Sanmar Holdings Limited
Subsidiaries :	Kalamkriya Limited CIN No.: - U22121TN1991PLC020589 Sanmar Consultancy Limited CIN No.: - U74140TN2008PLC068279 Sanmar Engineering Technologies Limited CIN No.: - U74210TN1996PLC034870 Sanmar Shipping Limited CIN No.: - U63090TN1994PLC028616 SHL Property Holdings Limited CIN No.: - U45201TN1999PLC043396 SHL Trading Limited CIN No.: - U51311TN2007PLC062284 B Sec Services Limited CIN No.: - U51503TN2001PLC047839 Flowserve Sanmar Limited CIN No.: - U18209TN1987PLC014838 Tyco Sanmar Limited CIN No.: - U51909TN1998PLC041556 Xomox Sanmar Limited CIN No.: - U28999TN2001PLC047056 Fisher Sanmar Limited CIN No.: - U93090TN1985PLC024245 Sanmar Engineering Services Limited CIN No.: - U65993TN1995PLC030445 Sanmar Foundries Limited CIN No.: - U33112TN1983PLC009911
Associates / Fellow Subsidiaries :	· Stargate Investments Private Limited · Sanmar Group Corporate Finance · Sanmar Group International Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4150000	Equity Shares	Rs.10/- each	Rs. 41.500 Millions
850000	10% Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 8.500 Millions
	TOTAL		Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
800000	Equity Shares	Rs.10/- each	Rs. 8.000 Millions
850000	10% Non-Cumulative Redeemable Preference Shares	Rs.10/- each	Rs. 8.500 Millions
	TOTAL		Rs. 16.500 Millions

Notes:

1. The entire paid up equity share capital is held by the holding company, SHL Securities (Alpha) Limited and its nominees. The entire paid up preference capital is held by a subsidiary of the holding company.

2. 50000 preference shares are redeemable at par at any time as may be decided by the Board, but not later than 28.07.2029 by giving such period of notice as may be decided by the Board.

3. 800000 preference shares are redeemable at par at any time as may be decided by the Board, but not later than 27.03.2031 by giving such period of notice as may be decided by the Board.

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		16.500	8.500	4.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7543.893	3112.094	2785.852
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7560.393	3120.594	2789.852
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	0.000
TOTAL		7560.393	3120.594	2789.852
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000	0.000	0.000
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		4398.619	2911.551	2311.551
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	3496.344	3.184	0.643
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.058	206.225	506.225
Total Current Assets		3496.402	209.409	506.868
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	334.324	0.022	0.022
	Other Current Liabilities
	Provisions	0.304	0.344	28.545
Total Current Liabilities		334.628	0.366	28.567
Net Current Assets		3161.774	209.043	478.301
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		7560.393	3120.594	2789.852

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Profit on sale of Investments	5688.336	0.000	1305.324
		Dividend from subsidiary companies	723.732	227.760	656.532
		Income from partnership firm	2.780	2.936	21.603
		TOTAL	6414.848	230.696	1983.459
Less	EXPENSES
		Administrative Expenses	2.814	0.133	42.411
		TOTAL	2.814	0.133	42.411
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		6412.034	230.563	1941.048
Less	FINANCIAL EXPENSES		0.000	0.282	0.000
	PROFIT BEFORE TAX		6412.034	230.281	1941.048
Less	TAX		(1256.585)	0.000	(285.645)
	PROFIT AFTER TAX		5155.449	230.281	1655.403
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2920.094	2689.852	1034.449
Less	APPROPRIATIONS
		Transfer to General Reserve	515.550	0.000	0.000
		Equity Dividend Paid	723.600	0.000	0.000
		Preference Dividend Paid	0.050	0.000	0.000
		Provision for Preference Dividend	0.000	0.034	0.000
		Tax on Preference Dividend	0.000	0.005	0.000
	BALANCE CARRIED TO THE B/S		6836.343	2920.094	2689.852
	Earnings Per Share (Rs.)		6444.25	344.42	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	80.37	99.82	83.46
Net Profit Margin (PBT/Sales)	(%)	112.67	7843.36	146.28
Return on Total Assets (PBT/Total Assets}	(%)	183.39	109.97	382.95
Return on Investment (ROI) (PBT/Networth)		0.85	0.07	0.70
Debt Equity Ratio (Total Liability/Networth)		0.04	0.00	0.01
Current Ratio (Current Asset/Current Liability)		10.45	572.15	17.74

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. Constructions 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	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	No
28. Incorporation details, if applicable	Yes
29. Last accounts filed at ROC	Yes
30. Major Shareholders, if available	Yes

CORPORATE RESULTS

The operations for the year resulted in a profit before tax of Rs. 6412.034 Millions.

Preference dividend of Rs. 0.050 Million on 50000 preference shares for the financial year 2010-11 has been paid in March 2011.

During the year, the Company paid interim dividend of Rs. 904.50 per equity share of Rs. 10 each. In view of need to conserve resources for the business purposes, the directors do not recommend final dividend on the equity shares and propose that the interim dividend be treated as final dividend for the financial year.

The Directors recommend a transfer of Rs. 515.550 Millions to General Reserve.

After considering the dividend on preference and equity shares as it out above and providing Rs. 1256.585 Millions towards tax and transferring Rs. 515.550 Millions to General Reserve and taking into account the brought forward profit of Rs. 2920.094 Millions profit of Rs. 6836.343 Millions is carried to next year’s account.

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. 56.99
UK Pound	1	Rs. 88.97
Euro	1	Rs. 71.57

INFORMATION DETAILS

Information Gathered by :	--
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		65

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.