MIRA INFORM REPORT

Report Date :

01.03.2012

IDENTIFICATION DETAILS

Name :	GEE LIMITED
Formerly Known As :	GENERAL ELECTRODES AND EQUIPMENT LIMITED
Registered Office :	Plot No. E-1, Road No. 7, Wagle Industrial Estate, Thane – 400604, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.11.1960
Com. Reg. No.:	11-11879
Capital Investment / Paid-up Capital :	Rs.47.252 Millions
CIN No.: [Company Identification No.]	L99999MH1960PLC011879
TAN No.: [Tax Deduction & Collection Account No.]	PNEG04756D
PAN No.: [Permanent Account No.]	AAACG2377B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Welding Electrodes and Equipment.
No. of Employees :	400 (Approximately)

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 1700000
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 – 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

INFORMATION PARTED BY

Name :	Mr. Ramesh Shimpi
Designation :	Finance Manager
Contact No.:	91-2522-280358
Date :	23.02.2012

LOCATIONS

Registered Office :	Plot No. E-1, Road No. 7, Wagle Industrial Estate, Thane – 400604, Maharashtra, India.
Tel. No.:	91-22-25821277/ 2620/ 8023/ 0619
Fax No.:	91-22-25828938
E-Mail :	thane@geelimited.com info@geelimited.com sales@geelimited.com, geesma@hathway.com geeho@geelimited.com rbshimpi@geelimited.com geeltd@rediffmail.com
Website :	http://www.geelimited.com
Location :	Owned
Factory 1:	Plot No.B-12, MIDC, Kalyan Bhiwandi Road, Saravali, Kalyan – 421311, Maharashtra, India
Tel. No.:	91-2522-280358/ 281176/ 88/ 90
Fax No.:	91-2522-281199
Factory 2:	Bhulagarh Industrial Park, NH – 6, Dhulagori, P O and Village – Kanduah, Howrah – 711302, West Bengal, India

DIRECTORS

(AS ON 31.03.201)

Name :	Mr. S. L. Agarwal
Designation :	Managing Director
Name :	Mr. M. P. Dhanuka
Designation :	Executive Director (Marketing)
Name :	Mr. S. M. Agarwal
Designation :	Executive Director
Name :	Mr. G. K. Saraf
Designation :	Executive Director
Name :	Mr. Ashok Kumar
Designation :	Director
Name :	Mr. K M Panthaki
Designation :	Director
Name :	Mr. Sujit Sen
Designation :	Director
Name :	Mr. Utsav Kapadia
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Ramesh
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2011)

Names of Shareholders		No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	7,108,373	30.24
Bodies Corporate	7,296,600	30.88
Sub Total	14,404,973	61.13
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	14,404,973	61.13
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	-	0.01
Insurance Companies	677,092	2.87
Sub Total	677,092	2.87
(2) Non-Institutions
Bodies Corporate	4,946,968	20.95
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1,856,415	9.05
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,413,607	5.98
Any Others (Specify)	5,062	0.02
Non Resident Indians	5,062	0.02
Trusts	-	-
Sub Total	8,222,052	36.00
Total Public shareholding (B)	8,899,144	38.87
Total (A)+(B)	23,304,117	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	23,304,117	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Welding Electrodes and Equipment.

Products :

Product Description	Item Code No.
Welding Rods	83.11

Exports :

Products :

Welding Electrodes and Equipment

Countries :

· Middle East

· Dubai

Imports :

Products :

Raw Materials

Countries :

· China

· Germany

· Italy

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

· Tata Steel

Customers :

Wholesalers and Retailers

· Telco

No. of Employees :

400 (Approximately)

Bankers :

· The Thane Janata Sahakari Bank Limited

Kalyan Branch, Maharashtra India

· State Bank of India

· ICICI Bank Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Term Loan	172.011	178.937
Cash Credit	284.361	160.038
Vehicle Loan - From Others	6.258	4.365
Total	462.630	343.340
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
DSCCI-Sales Tax Loan	1.432	1.432
Total	1.432	1.432

Banking Relations :	--
Auditors :
Name :	Ford Rhodes Parks and Company Chartered Accountant

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Share	Rs.2/- each	Rs.100.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
23644778	Equity Share	Rs.2/- each	Rs.47.290 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23625878	Equity Share	Rs.2/- each	Rs.47.252 Millions

NOTE:

595350 Equity Shares have been allotted as fully paid up pursuant to a contract without payment being received in cash.

8763952 Equity Shares have been issued as fully paid up bonus shares by capitalisation of reserves.

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		47.252	47.252	37.801
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		385.991	302.162	227.314
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		433.243	349.414	265.115
LOAN FUNDS
1] Secured Loans		462.630	343.340	156.293
2] Unsecured Loans		1.432	1.432	14.102
TOTAL BORROWING		464.062	344.772	170.395
DEFERRED TAX LIABILITIES		18.441	16.890	12.631
TOTAL		915.746	711.076	448.141
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		409.903	344.735	174.359
Capital work-in-progress		107.960	21.225	0.260
INVESTMENT		0.133	0.133	0.133
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	252.293	179.117	117.562
	Sundry Debtors	193.259	157.896	146.251
	Cash & Bank Balances	16.542	19.873	24.837
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	97.757	112.837	65.424
Total Current Assets		559.851	469.723	354.074
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	88.722	52.914	45.668
	Other Current Liabilities	31.587	22.034	6.734
	Provisions	41.792	49.792	28.283
Total Current Liabilities		162.101	124.740	80.685
Net Current Assets		397.750	344.983	273.389
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		915.746	711.076	448.141

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1472.718	1285.947	1219.524
		Other Income	1.288	1.375	2.696
		TOTAL (A)	1474.006	1287.322	1222.220
Less	EXPENSES
		Increase/ (Decrease) in Stock	(37.607)	(2.590)	2.220
		Materials Consumed	1114.862	924.161	972.010
		Manufacturing Expenses	71.674	61.065	38.254
		Payment to Provision for Employees	38.366	34.625	35.213
		Administrative and Selling Expenses	93.139	100.065	78.955
		TOTAL (B)	1280.434	1117.326	1126.652
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		192.572	169.996	95.568
Less	FINANCIAL EXPENSES (D)		53.108	22.975	24.530
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		140.464	147.021	71.038
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.914	7.931	6.205
	PROFIT BEFORE TAX (E-F) (G)		126.550	139.090	64.833
Less	TAX (H)		34.430	46.499	25.968
	PROFIT AFTER TAX (G-H) (I)		92.120	92.591	38.865
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		130.542	61.244	37.171
Less	APPROPRIATIONS
		Transfer to General Reserve	15.000	15.000	6.500
		Proposed Dividend	7.087	7.088	7.087
		Tax on Proposed Dividend	1.205	1.205	1.205
	BALANCE CARRIED TO THE B/S		199.370	130.542	61.244
	EARNINGS IN FOREIGN CURRENCY		NA	88.090	168.950
	IMPORTS
		Raw Materials	NA	180.796	288.713
		Stores & Spares	NA	0.000	13.957
	TOTAL IMPORTS		NA	180.796	302.670
	Earnings Per Share (Rs.)		3.90	3.92	2.06

Expected Sales (2011-12): Rs.1800.000 Millions

The above information has been parted by Mr. Ramesh.

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	381.640	424.560	423.990
Total Expenditure	328.500	376.280	383.860
PBIDT (Excl OI)	53.140	48.280	40.130
Other Income	0.140	0.060	0.690
Operating Profit	53.280	48.340	40.820
Interest	17.180	18.400	15.410
Exceptional Items	0.000	0.000	0.000
PBDT	36.100	29.940	25.410
Depreciation	4.640	4.970	5.110
Profit Before Tax	31.460	24.970	20.300
Tax	6.080	5.000	4.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	25.380	19.970	16.300
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	25.380	19.970	16.300

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.25	7.19	3.18
Net Profit Margin (PBT/Sales)	(%)	8.59	10.82	5.32
Return on Total Assets (PBT/Total Assets}	(%)	13.05	17.08	12.27
Return on Investment (ROI) (PBT/Networth)		0.29	0.40	0.24
Debt Equity Ratio (Total Liability/Networth)		1.45	1.34	0.95
Current Ratio (Current Asset/Current Liability)		3.45	3.77	4.39

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last one years	Yes
Profitability for last three years	-----
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	-----
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

BUSINESS OPERATIONS

During the year, the global economy was regaining economic stability after the recession of 2008. Indian economy in this context performed very well with GDP growth of 9% during the last fiscal 2010-11. Company financial results demonstrated an overall improvement in turnover compared to previous year with a 15% increase in net revenues, from INR 1286 million in 2009-10 to 1472 million in 2010-11. This was largely on account of better customer relations and deals, improved product developments, greater market share and enhanced capacity base due to proposed expansion plans.

The Company completed capex plans of INR 241.76 million and INR 84.07 million are under progress. The entire capacity expansion plans will be completed by 2011-12. However, due to delay in the stipulated drawdown schedule, the State Bank of India revised the original term loan sanction of INR 330 million to utilized amount of INR 132.5 million. Therefore, to fund the ongoing expansion programme, the Company has availed of new term loan facility of INR 100 million from The Thane Janata Sahakari Bank in April 2011.

The Company had to operate in high-cost marketplace with stiff competition. Inflation emerged as the new global economic challenge impacting all industrial sectors. In this backdrop, steel prices rose to record highs during the second half of last fiscal, putting pressure on overall margins of the Company. The industry witnesses severe competition streaks and thereby, your Company could not pass on the increase in raw material to the end consumer. This in turn affected the bottomline negatively; with a sharp 2% fall in PBT, from INR 139 million in 2009-10 to INR 126 million in 2010-11.

High inflationary pressures have led to tightening of monetary policy eventually leading to liquidity crunches and continuously rising interest costs. The Company also bore the brunt of high interest rates with a steep increase of 2% in financial charges, in turn adversely affecting net profit margins.

MANAGEMENT DISCUSSIONS

BUSINESS PERFORMANCE AND OVERVIEW

The year saw global economic recovery on a stronger path and turnaround of major economies from the economic meltdown of 2008. India, the third largest economy in Asia, witnessed growth levels of 9% in GDP. This growth was primarily fuelled by infrastructural development and overall economy boost.

However, the impressive growth statistics were marred by record-high inflation levels, with an increase both in consumer demand products and industrial sectors. Steep increase in steel prices, propelled by high coking coal and iron ore prices, caught the welding industry on a wrong note. Steel prices rose especially in the second half of the previous fiscal, adversely impacting the net profit margins.

In line with its aspirations of ongoing growth, the Company's expansion of capacity base of welding electrodes, wires and equipments was almost completed during the year at both Mumbai and Kolkata plants. Gee delivered superior performance across key parameters. The turnover achieved for the year ended 31st March, 2011 was INR 1472 million, a growth of 15% over the previous year. During the year, exports were higher by 84% at INR 167million. With the Middle East reviving from the slump, project executions are now takingplace and therefore, exports are marked to see a growth trend in the next year as well.

The consumption of raw materials to sales increased by 4% from INR 924 million to 1115million. This was mainly on account of high steel prices; the main raw material component of the welding industry.

Manufacturing expenses and employee cost remained mostly static at 5% and 3% of sales, respectively. Further, administrative cost reduced from 8% to 6% of sales in the current year as compared to the previous year. The decline in administrative expense is an outcome of austere measures taken by the Company to improve profitability and post better margins; making available more funds for expansion projects.

The EBITDA margins remained constant at 13% of net sales at INR 193.57 million in the year.

However, to curb the high inflationary pressures challenging the Indian economy, the Government tightened the monetary policy, thereby raising interest rates intermittently. The rise in interest rates put undue pressures on the net profit margins, increasing financial cost by 2%, from 23 million in 2009-10 to 53 million in 2010-11.

Depreciation provision was higher by 75% from INR 7.9 million in 2009-10 to INR 13.91million in 2010-11.

In this backdrop, Profit after Tax reduced from INR 92.59 million in 2009-10 to INR92.12 million in 2010-11,1 % decrease in PAT margins to sales.

OUTLOOK, OPPORTUNITIES AND THREATS

After two years of unprecedented financial and economic turmoil, economic activity now seems to be appearing on the normal zone. The outlook for the financial year 2011-12 is reasonably positive with most of the major world economies showing signs of absolute recovery. As compared to negative growth figures in 2009-10, U.S. and lot of European economies posted low positive growth numbers. This is a sure comeback from the slack experienced recently.

The Indian economy, as per major institutional reports, is expected to grow by8.6%-9.2% in the current fiscal 2011-12. In the Union Budget 2011, the government has laid emphasis on the need for spurring infrastructure growth and announced $1.5 trillion spending splurge over a decade. Industrial growth is moving at a staggering pace and due attention paid to this sector make infrastructural development at par with industrial growth. The government has also increased spending on infrastructure by 23% in the current fiscal. Further, railways is a major catalyst in the socio-economic growth chart of the country. The Union Budget has laid the highest-ever plan outlay for the Railways of USD12.72 billion. New wagons, express trains and capital expenditure of USD 2.11 has been planned for new railway lines. Such a large number of initiatives will lead to growth in the welding industry.

The industrial output has increased by 7.8% in the last fiscal. Consumption of steel has been on the rise, going up by 10.3% during 2010-11 and special steel usage in engineering industries, such as power generation, petrochemicals and fertilizers is also growing. Major international automobile companies are setting up facilities in India.

The fiscal year ahead, could however, be challenging as the government endeavors to curb inflationary growth. In the scenario of spiraling prices, inflation will have a negative impact on the country's competitiveness and growth sustainability. Inflation has hit almost all goods and services, thereby impacting the overall margins. In turn, fiscal and monetary policies implemented to rein in the market dynamics are resulting in high interest rates, also slowing down the economic growth trajectory.

However, welding industry is bound to be on an upward swing led by buoyancy in the core industries like infrastructure, construction, oil and gas and automobiles. In the years ahead, India will emerge as a major world economy harboring numerous changes in the world economic order. Steel is considered and will be an essential clog in this development wheel. In this impending robust economic growth, welding industry will also witness adequate impetus.

The overall growth of the economy accelerated by the encouraging statistics and measures offered by the government lead to new business opportunities and exciting times in the years ahead. The domestic environment is conducive for growth and on the back of all these facts; the welding industry will witness a wave of growth, touting to be more promising in the future. The solid wire segment has shown promising growth statistics and the Company looks forward to capture this market share and cater to it efficiently and effectively.

The Company is investing considerably to provide wider variety of product ranges and services to geographically distributed customers. The Company has evolved significantly over the last few years, reflecting and incorporating diversification in the gamut of products and services offered. To deliver to the change in the consumer pattern, the Company has now ventured into different product lines, by expanding its production base. It has also adopted stricter measures to combat inflationary pressures and is exploring diverse means of financing to reduce its finance cost and leverage debt funds on an optimal level.

While the global economy is certainly better than the previous year, the sustainability of recovery is a matter of concern. The government needs to take imminent decisions to facilitate growth and development. The Company looks forward to reporting on further positive progress at the end of the year.

CONTINGENT LIABILITIES AND COMMITMENTS

· Guarantees Outstanding as on 31^st March 2011 Rs.1.455 Millions (31^st March 2010 Rs.3.523 Millions)

· Foreign LC outstanding as on 31^st March 2011 Rs.8.841 Millions (31^st March 2010 Rs.1.674 Millions)

· Disputed demands against the company as on 31^st March 2011 (paid under protest and thereby reflecting under loans and advance).

· Custom Duty Rs.1.500 Millions (31^st March 2010 Rs. Nil)

TRADE REFERENCE:

· Tata Steel

· Telco

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Equipment

· Furniture

· Office Equipment

· Computer

· Motor Cars

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.48.94
UK Pound	1	Rs.77.95
Euro	1	Rs.65.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--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	-

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.