MIRA INFORM REPORT

Report Date :

03.05.2012

IDENTIFICATION DETAILS

Name :	GHATGE PATIL INDUSTRIES LIMITED
Registered Office :	Uchgaon, District Kolhapur – 416005, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.07.1960
Com. Reg. No.:	25-11738
Capital Investment/ Paid-up Capital:	Rs.250.370 Millions
CIN No.: [Company Identification No.]	U31103PN1960PLC011738
IEC No.:	0388012501
TAN No.: [Tax Deduction & Collection Account No.]	KLPG00564E/KLPA00671G
PAN No.: [Permanent Account No.]	AAACG6595R/AABCM6744K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Casting and Power transmission for Petrol and Oil.
No. of Employees:	950 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 3105000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. General financial position is good. Fundamentals are strong and healthy. Trade relations are reported as fair. Payments are reported to be correct and as per commitments. The company can be considered good for normal 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.

INFORMATION PARTED BY

Name :	Mr. Chogale
Designation :	Finance Manager
Contact No.:	91.231-2608173
Date :	30.04.2012

LOCATIONS

Registered Office :	Uchgaon, District Kolhapur – 416005, Maharashtra, India
Tel. No.:	91-231-2608000
Fax No.:	Not Available
E-Mail :	mukund.shinde@gpi.co.in kallappa.chogle@gpi.co.in
Website :	www.Gip.co.in
Location :	Owned

DIRECTORS

As on 30.07.2011

Name :	Mr. Jay Kumar Bharamgouda Patil
Designation :	Chairman and Managing Director
Address :	Chandrika, 9- Surve Colony, New Sahupuri, Kolhapur -416 003, Maharashtra India.
Date of Birth/Age :	17.08.1923
Qualification :	Under – Graduate
Date of Appointment :	02.07.1960
Din No:	00536073
Name :	Mr. Kiran Jay Kumar Patil
Designation :	Managing Director
Address :	R.S. No. 35/1, Ujalaiwadi, Kolhapur – 416004, Maharashtra, India
Date of Birth/Age :	20.05.1953
Qualification :	B.E. (Mech), M.S. (Ind.Engg), M.B.A. (USA)
Date of Appointment :	15.11.2007
Din No:	00221662
Name :	Ms. Megha Kiran Patil
Designation :	Whole-time Director
Address :	R.S. No. 35/1, Ujalaiwadi, Kolhapur – 416004, Maharashtra, India
Date of Birth/Age :	23.07.1964
Qualification :	B. Sc.
Date of Appointment :	26.09.2009
Din No:	00683225
Name :	Mr. Jayant Balakrishna Diwale
Designation :	Director
Address :	Flat No. 602, Plot No. 26, Kamal Palace, 6^th Floor, Central Bazar Road, Ramdas Peth, 440 010, Nagpur, India.
Date of Birth/Age :	01.04.1942
Qualification :	B.Com, F.C.A. Short term courses · Corporate Management Administrative Staff college Hydrebad · Financial Management Strachalite University. Glassow U.K. · Privatisation in Public sector manangement washington univ
Date of Appointment :	06.09.2003
Din No:	00276876
Name :	Mr. Ashok Vishwasrao Chowgule
Designation :	Director
Address :	Baina, Vasco-da-Gama, Goa – 403 802, India
Date of Birth/Age :	25.01.1948
Qualification :	B S c . Economics and Statistics Post graduate
Date of Appointment :	29.07.2006
Din No:	00018970
Name :	Mr. Luciano Franco Gilardo
Designation :	Director
Address :	A-1, Orchid’s Apartments, North Main Road, Lane E, Koregaon Park, Pune – 411 001, Maharashtra, India
Date of Birth/Age :	14.06.1943
Qualification :	Diploma in Economic Science Diploma in Commercial Correspondent in foreign languages French-German- English One Month full immersion in Industrial Management for FIAT Executives (ISVOR- FIAT Instit)
Date of Appointment :	29.07.2006
Din No:	00220680
Name :	Mr. Sunil Chamanlal Patel
Designation :	Director
Address :	36, Vijay Amar Society, S. No. 44/2, Erandawane, Pune – 411 001, Maharashtra, India
Date of Birth/Age :	08.07.1949
Qualification :	B.E. (Mech), M.M.S.
Date of Appointment :	22.12.2007
Din No:	02057191
Name :	Mr. Vijay Narayan Bedekar
Designation :	Director appointed in casual vacancy
Address :	A-405, Sprigfields, Off. Gananjay Society Road, Kothrud, Pune – 411038, Maharashtra, India
Date of Birth/Age :	12.03.1948
Qualification :	B. E. PGDBM
Date of Appointment :	28.03.2009
Din No:	02508347

KEY EXECUTIVES

Name :	Mr. Mukund Laxmanrao Shinde
Designation :	Company Secretary and Accounts Manager
Address :	Parijat, C-3, Abhinav Park, R S No. 522/1, Pratibhanagar, Kolhapur – 416 008, Maharashtra, India
Date of Birth/Age :	11.01.1952
Date of Appointment :	22.12.2007
Pan No.:	ACGPS3857H

MAJOR SHAREHOLDERS

As on 30.07.2011

Names of Shareholders	No. of Shares
Vijaya Jaykumar,	907043
Jaykumar Bharamgouda Patil industrialist and Kiran Jay Kumar Patil and Vijaya Jaykumar,	107609
Jaykumar Bharamgouda Patil industrialist and Kiran Jay Kumar Patil	3108814
Jaykumar Bharamgouda Patil industrialist	504392
Kiran Jay Kumar Patil,	18892038
Kiran Jay Kumar Patil, and Megha Kiran Pati	365195
Jay Kumar Vishawanath Joshi	45000
Mrinalini S Kirloskar	29609
Madhav Vishnu Ghatge	19696
Gautam Achyut Kulkarni Service and Achyut Kulkarni	18261
Vishwanath Madhavrao Sahasrabudhe	33000
P Rajesh	28043
P.B Prakash	28043
Mrs. Sujaay Praasnna Kumar, Housewife	78087
Abhinandan Dharma Patravali, Consulting Engineer and Vasntimari Abhinandan Patravali	3261
Gajanan Madhavrao Sahasrabudhe and Prabha Gajanan Sahasrabudhe Sunil Gajanan Sahasrabudhe	16500
Gajanan Madhavrao Sahasrabudhe and Prabha Gajanan Sahasrabudhe Shrikrishna Gajanan Sahasrabudhe	16500
Madan Mahadeo Palvankar	22000
Sharad Naryan Gujar	5533
Sheel Chadrashekar Shevde	5533

As on 30.07.2011

Equity Share Break –up

Category	Percentage
Directors or relatives of directors	96.65
Other top fifty shareholders	3.35
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Casting and Power transmission for Petrol and Oil.

Products :

Particulars	ITC Code
Gray Iron and S.G. Iron Castings	8708
Industrial Clutches, Power Take offs, Marine Gear Boxes	8483
Fluid Couplings	8485

Exports :

Products :

· Casting

· Power transmission for petrol and Oil

Countries :

· US

· Gulf Countries

Imports :

Products :

Raw Material

Countries :

· Japan

· China

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Actual Production
Grey Iron Castings	M.T.	60000	25662
S.G. Iron Castings	M.T.	12000	1549
Mechanical Industrial Clutches and Power Take Offs	Nos.	9000	989
Marine Gear Boxes	Nos.	3000	517
Electromagnetic Clutches and Brakes	Nos.	6000	--
Automotive Power Take Offs	Nos.	1000	226
Fluid Coupilings	Nos.	2500	499
Pneumatic Clutches and Brakes	Nos.	3500	--
Agreegates of Earth Moving Machinery	Nos.	5000	1340
Gate Valves	Nos.	100000	4226
Core Shooter Cold Box Process with curing Equipment	Nos.	25	--
Hydraulic Brake Assembly	Nos.	25000	--

Installed Capacity:

Most of the Plant Machinery are common for different products manufactured by the Company. Installed capacity is dependent on the product mix which in turn is decided by the actual demand for various products manufactured from time to time. In addition, considering the sub-contract facilities, it is not feasible for the Company to indicate the exact installed capacity

GENERAL INFORMATION

Suppliers :

John Metaliks

Customers :

Wholesalers, Retailers, End users and OEM’s

· John Deere

No. of Employees :

950 (Approximately)

Bankers :

· Union Bank of India, Guffe Parde Branch

· Exim Bank.

Facilities :

Rs.in Millions

SECURED LOAN	31.03.2011	31.03.2010
Rupee term loans banks secured	52.271	73.186
Rupee term loans financial institutions secured	197.595	55.591
Working capital loans banks secured	432.423	326.341
Working capital loans financial institutions secured	47.000	114.640
	729.289	569.758
UNSECURED LOAN
Public deposits unsecured	148.999	53.812
Deposits related parties unsecured	2.517	16.017
Other debt unsecured	74.072	49.998
	225.588	119.827

Banking Relations :	--
Auditors :
Name :	Deshpande and Mahatme Chartered Accountants
Address :	Gabmar Apartments, Vasco-Da-Gama – 403802, Goa
Pan No.:	AAEFD3980E
Partnership concerns over which Key Management Personnel or their relatives have control or significant influence:	· Hemkiran Diesels · Chandrika Industries · Preci Engineering Company · V.J. and Sons · Ghatge Patil and Sons · Metal Finishers and Engineers · Shobha A. Kirloskar and Associates · Sharu Exports · Aditek · J. B. Patil and Sons · Chinar Engineering ·Lubol
Companies over which Key Management Personnel or their relatives have control or significant influence:	· Kiran Trading and Investments Private Limited · Patil Atlantic Force Sunnum Limited · Patil Rock Processors Private Limited · Ghatge Patil Automobiles Limited · JP Logistics Private Limited · Kiran Auto Traders Private Limited · Kiran Patil Investment Private Limited · Vega Techno Systems Private Limited · Indus Motion Controls Limited · Array Flow Systems Limited · Indus Ferro Tech Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
39000000	Equity Shares	Rs.10/- each	Rs.390.000 Millions
1000000	Preference Shares	Rs.10/- each	Rs.10.000 Millions
Total			Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25036958	Equity Shares	Rs.10/- each	Rs.250.370 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		250.370	125.185	125.185
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		525.880	415.122	326.241
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		776.250	540.307	451.426
LOAN FUNDS
1] Secured Loans		729.289	569.758	703.757
2] Unsecured Loans		225.588	119.827	81.381
TOTAL BORROWING		954.877	689.585	785.138
DEFERRED TAX LIABILITIES		11.741	1.874	0.000
TOTAL		1742.868	1231.766	1236.564
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		706.482	534.196	564.930
Capital work-in-progress		60.760	12.032	40.152
INVESTMENT		28.981	7.371	2.371
DEFERREX TAX ASSETS		0.000	0.000	7.839
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	489.270	423.880	427.590
	Sundry Debtors	451.659	343.257	372.972
	Cash & Bank Balances	186.123	57.308	55.552
	Other Current Assets	16.442	11.892	16.447
	Loans & Advances	397.580	257.825	239.490
Total Current Assets		1541.074	1094.162	1112.051
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	339.133	254.097	352.733
	Other Current Liabilities	16.094	8.750	2.982
	Provisions	239.202	153.148	135.064
Total Current Liabilities		594.429	415.995	490.779
Net Current Assets		946.645	678.167	621.272
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1742.868	1231.766	1236.564

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3371.759	2325.731	2970.071
		Other Income	35.641	16.905	14.482
		TOTAL	3407.400	2342.636	2984.553
Less	EXPENSES
		Consumption materials changes inventories	1730.432	1122.063
		Manufacturing Service cost	646.156	427.025
		Contract Cost	209.975	135.629	2703.968
		Employee Related Expenses	253.786	212.691
		Administrative selling other expense	193.057	130.633
		TOTAL	3033.406	2028.041	2703.968
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		373.994	314.595	280.585
Less	FINANCIAL EXPENSES		78.539	86.263	98.385
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		294.455	228.332	182.200
Less/ Add	DEPRECIATION/ AMORTISATION		79.604	72.305	74.526
	OPERATING PROFIT BEFORE OTHER ADJUSTMENTS		218.851	156.027	107.674
Add	Other Income		0.000	0.000	1.439
	Previous Year Adjustments		0.000	0.000	79.971
	Profit /Loss of Capital Nature (Net)		0.000	0.000	(29.906)
	PROFIT BEFORE TAX		218.851	156.027	159.178
Less	TAX		72.751	52.500	48.633
	PROFIT AFTER TAX		143.100	103.527	110.545
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		340.122	251.241	155.342
Less	APPROPRIATIONS
		Transfer to General Reserve	7.155	0.000	0.000
		Dividend	32.342	12.518	12.518
		Tax on Dividend		2.128	2.128
	BALANCE CARRIED TO THE B/S		443.725	340.122	251.241
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	631.590	445.549	1033.986
	IMPORTS
		Raw Materials	NA	10.345	12.536
		Stores & Spares	NA	15.696	25.355
		Capital Goods	NA	0.146	63.757
	TOTAL IMPORTS			26.187	101.648
	Earnings Per Share (Rs.)		5.71	8.27	8.83

Particulars	31.03.2012
Sales Turnover (Approximately)	4330.000

Expected Sales (2012-2013): Rs.5000.000 Millions

The above information has been parted by Mr. Chogale

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.20	4.42	3.70
Net Profit Margin (PBT/Sales)	(%)	6.49	6.71	5.36
Return on Total Assets (PBT/Total Assets}	(%)	9.74	10.33	9.49
Return on Investment (ROI) (PBT/Networth)		0.28	0.29	0.35
Debt Equity Ratio (Total Liability/Networth)		1.99	2.05	2.83
Current Ratio (Current Asset/Current Liability)		2.59	2.63	2.27

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	Yes
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

Details of Sundry Creditors:

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors :
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	339.132	254.097	352.733

OVERALL PERFORMANCE AND OUTLOOK:

The Company has achieved total turnover of Rs.3439.13 Millions (previous year Rs.2328.32 Millions) resulting in considerable increase in Total Income by 47.71% over the previous year. The Profit before Tax is Rs.215.85 Millions (previous year Rs. 156.03 Million) after providing for Depreciation of Rs.79.600 Million (previous year Rs.72.31 Millions).the Company has made enormous efforts to reduce costs by utilizing the resources efficiently and effectively.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)
Claims against the company not acknowledged as debts.
a) Central Excise	44.340
b) Sales Tax	23.326
c) Income Tax	47.951
d) Labour Matter	6.795
e) Claims not acknowledged as Debts and disputed by the Company	2.980
f) Sales Bills purchased by Bank	116.177

Bankers Charges Report as per Registry

Corporate identity number of the company	U31103PN1960PLC011738
Name of the company	GHATGE PATIL INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Uchgaon, Kolhapur – 416005, Maharashtra, India Email: mukund.shinde@gpi.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10275638
Type of charge	· Immovable property · Movable Property (not Being pledge
Particular of charge holder	Export Import Bank of India, Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, 400005, Mumbai, Maharashtra, India. Email:eximpro@eximbankindia.in
Nature of instrument creating charge	Letter of confirmation dated 19/04/2012 executed by Ghatge Patil Industries Limited (Borrower), in favour of Export-Import Bank of India (Exim Bank) confirming renewal of Standby Letter of Credit facility of USD 1.50 million for a further period of one year and further confirming continuation of security created by the Borrower for the renewal period.
Date of instrument Creating the charge	19.04.2012
Amount secured by the charge	Rs.75.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: Commission @ 1.50% p.a. of the SBLC amount plus applicable service tax, payable upfront Not applicable as non-fund based facility. However, tenor of the facility shall be 1 year from the date of issuance of SBLC. Margin: Not Applicable Extent and operation of the charge : The charge created under the Deed of Hypothecation dated 26/03/11 and mortgage created on 31/03/11 in favour of Exim Bank shall, by virtue of Letter of Confirmation dtd 19/04/12, continue to operate as a continuing security by way of pari passu first charge over the Borrower's entire movable fixed assets and immovable properties both present and future, excluding assets exclusively charged to other lenders, for securing the said SBLC facility of USD 1.50 million
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Borrower's moveables fixed assets,both present and future All that piece of land situate lying and being at Village Uchangaon bearing Revisonal Surevey No. 362A admeasuring 12 Acres-13 Guntha in the registration District. of Karvir, Taluka. Karvir, District. Kolhapur All that piece of land situate lying and being at Village Uchangaon bearing Revisonal Surevey No. 362B admeasuring 13 Guntha in the registration District. of Karvir, Taluka. Karvir, District. Kolhapur All that piece of land situate in Survey No. 365A3 and 365A, admeasuring 3 Acres-13 Guntha in the registration District. of Karvir, Taluka. Karvir, District. Kolhapur All that piece of land situate in Survey No. 4B, admeasuring 7 Acres-16 Guntha in the registration District. of Karvir, Taluka. Karvir, District. Kolhapur All that piece of land situate in Gat No. 230,335,363/1,364/1, admeasuring 220200 Sq. Mtr. in the registration District. of Karvir, Taluka. Karvir, District. Kolhapur
Particulars of the present modification	The charge created under the Deed of Hypothecation dated 26.03.2011 and mortgage by deposit of title deeds created by the Borrower on 31.03.2011 by way of first charge in favour of Exim Bank shall continue to be in full force and effect as security for the SBLC facility of USD 1.50 million renewed for a further period of one year as contained in the Letter of Confirmation dtd 19/04/12 attached hereto.

TRADE REFERENCE

· John Deere

· John Metaliks

FIXED ASSETS:

v Freehold Land

v Building

v Plant and Machinery

v Vehicles

v Furniture and Fittings

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.53.24
UK Pound	1	Rs.86.14
Euro	1	Rs.69.98

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		60

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.