MIRA INFORM REPORT

Report Date :

19.05.2012

IDENTIFICATION DETAILS

Name :	CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED (w.e.f. 10.10.2007)
Formerly Known As :	CANBANK INVESTMENT MANAGEMENT SERVICES LIMITED
Registered Office :	Construction House, 4^th Floor, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai-400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.03.1993
Com. Reg. No.:	11-071003
Capital Investment / Paid-up Capital :	Rs.201.043 Millions
CIN No.: [Company Identification No.]	U65990MH1993PLC071003
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Investment Management Company.
No. of Employees :	180 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a joint venture between Canara Bank India and Robeco Group N.V., Netherlands. It 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.

INFORMATION PARTED BY

Name :	Mr. Suhas
Designation :	Accounts Department
Contact No.:	91-22-66585000
Date :	18.05.2012

LOCATIONS

Registered Office :	Construction House, 4^th Floor, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-66585000
Fax No.:	91-22-66585011/5013
E-Mail :	crmf@canararobeco.com
Website:	http://www.canararobeco.com
Location:	Owned
Sales Office:	Ground Floor, Construction House, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-66585000
Fax No.:	91-22-66585012
Sales / Branch Office :	Located At: · Kolkata · Ahmedabd · Mumbai · Surat · Chandigarh · Bangalore · Mangalore · Goa · Pune · Indore · New Delhi · Chennai · Hyderabad · Kochi · Bhopal · Coimbatore · Nagpur · Patna · Ludhiana · Trichy · Vadodara · Visakhapatnam

DIRECTORS

As on 31.03.2011

Name :	Mr. S. Raman
Designation :	Chairman
Address :	Canara Bank House No.72, Opposite Krishna Rao Park, Kanakapura Road, Basavanagudi, Bangalore-560004, Karnataka, India
Date of Birth/Age :	07.09.1952
Date of Appointment :	15.09.2010
Name :	Mr. M. Ramkumar
Designation :	Director
Address :	273, Jupiter Apartments, Cuffe Parade, Mumbai-400005, Maharashtra, India
Date of Birth/Age :	03.05.1952
Date of Appointment :	27.03.2010
Name :	Hester Wendela Deseree Gillia Borrie
Designation :	Director
Address :	Apollolaan 52, Amsterdam
Date of Birth/Age :	18.11.1969
Date of Appointment :	10.12.2009
Name :	Mr. Arvind Madan Sethi
Designation :	Director
Address :	02GFA, Court Green, The Labornum, Sushant Lok 1, Sector 28, Gurgaon-122002, Haryana, India
Date of Birth/Age :	12.08.1957
Date of Appointment :	26.09.2007
Name :	Mr. Deveshwer Kumar Kapila
Designation :	Director
Address :	C-4, 1^st Floor, Jangapura Extension, New Delhi-110014, India
Date of Birth/Age :	03.05.1991
Date of Appointment :	20.12.2008
Name :	Mr. V.H. Ramakrishnan
Designation :	Director
Address :	Flat No. 1005, Block 2A, SMR Vinay City, Bollaram Road, Miyapur, Hyderabad-500049, Andhra Pradesh, India
Date of Birth/Age :	13.04.1941
Date of Appointment :	29.09.2009
Name :	Shital Kumar Jain
Designation :	Director
Address :	5/10, 2^nd Floor, Shantiniketan, New Delhi-110021, India
Date of Birth/Age :	12.11.1939
Date of Appointment :	10.12.2009

KEY EXECUTIVES

Name :	Mr. Rajnish Narula
Designation :	Chief Executive Officer
Name :	Edwin Rietkerk
Designation :	Chief Operating Officer
Name :	Mr. Y. Sambasiva Rao
Designation :	Divisional Manager - Canara Bank (On Deputation)
Name :	Mr. Suhas
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2010

Names of Shareholders	No. of Shares
Canara Bank, India	10251222
Robeco India Holding B.V., Netherlands	9746778
Canara Bank, India	800
Robeco India Holding B.V., Netherlands	104352
T. Sreek Anthan Jointly With Canara Bank, India	200
Robeco Direct NV, Netherlands	1
Robeco International Holding NV, Netherlands	1
Robeco Nederland BV, Netherlands	1
Robeco Groep NV, Netherlands	1
Robeco Institutional Asset Management BV, Netherlands	1
M. Ramkumar Jointly With Canara Bank, India	200
Dennis Rodrigues Jointly With Canara Bank, India	200
V. Sundaresan Jointly With Canara Bank, India	200
D. Muralidhar Rao Jointly With Canara Bank, India	200
K R. Rao Jointly With Canara Bank, India	200
Total	20104357

BUSINESS DETAILS

Line of Business :	Investment Management Company.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Wholesaler and Others [Corporate]
No. of Employees :	180 [Approximately]
Bankers :	HDFC Bank

Banking Relations :	--
Auditors :
Name :	Khimji Kunverji and Company (Hashmukh B. Dedhia As Partner) Chartered Accountant
Address :	Suite No. 52, Bombay Mutual Building, P.M. Road, Fort, Mumbai-400001, Maharashtra, India
Holding Company:	Canara Bank
Fellow Subsidiaries:	· Canbank Computer Services Limited (CCSL) · Canbank Financial Services Limited (CFSL) · Canbank Factors Limited (CFL) · Canbank Venture Capital Fund Limited (CVCFL) · Canara Bank Securities Limited (CBSL) · Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited (CHOBCI)
Entity having significant Influence over the Company:	Robeco Groep N.V. Robeco India Holding B.V.
Under Common Control of Holding Company:	Canfin Homes Limited (CHL)
Under the common control of entity having significant Influence over the company:	· Robeco Hongkong Limited · Robeco Institutional Asset Management B.V.
Overseas Joint Venture:	Commercial Bank of India LLC
Mutual Fund managed by the company:	Canara Robeco Mutual Fund (Schemes)

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
20104357	Equity Shares	Rs.10/- each	Rs.201.044 Millions

NOTE: (10,253,222 Shares held by Canara Bank and its nominees and 9,851,135 shares held by Robeco India Holding B.V. (Of the above shares:5,000,000 shares were allotted to Canara Bank as fully paid-up by way of Bonus Shares by capitalization of surplus in the Profit and Loss Account)

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		201.044	201.044	101.043
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		208.033	147.004	84.713
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		409.077	348.048	185.756
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		9.595	0.000	0.000
TOTAL		418.672	348.048	185.756
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		64.076	94.228	113.606
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		283.107	202.033	50.870
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	69.169	28.954	39.773
	Cash & Bank Balances	9.969	9.322	7.014
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	73.276	103.514	98.548
Total Current Assets		152.414	141.790	145.335
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.204	0.315
	Other Current Liabilities	75.801	85.824	116.095
	Provisions	5.124	3.975	7.645
Total Current Liabilities		80.925	90.003	124.055
Net Current Assets		71.489	51.787	21.280
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		418.672	348.048	185.756

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Management Fees	382.976	357.657	179.576
		Advisory Fees	10.435	0.891	0.000
		Dividend on Current Investments	11.574	2.808	7.425
		Current Investments	0.000	3.225	0.000
		Long Term Investments	0.000	0.000	11.910
		Profit/ Loss on Sales of Fixed Assets	50.494	14.576	0.000
		Other Income	14.525	2.460	3.620
		TOTAL	470.004	381.617	202.531
Less	EXPENSES
		Employees Remuneration and Benefit	203.123	139.992	207.680
		Administrative Expenses	171.038	157.572	144.052
		Loss on Sale of Fixed Assets	0.000	0.000	0.149
		TOTAL	374.161	297.564	351.881
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		95.843	84.053	(149.350)
Less/ Add	DEPRECIATION/ AMORTISATION		9.467	9.598	12.399
	PROFIT/(LOSS) FOR THE YEAR BEFORE IMPAIRMENT LOSS, TAXATION & PRIOR PERIOD ITEMS		86.376	74.455	(161.749)
Less	PRIOR PERIOD ITEMS		0.000	0.490	0.000
	PROFIT/(LOSS) FOR THE YEAR BEFORE IMPAIRMENT LOSS & TAXATION		86.376	73.965	(161.749)
Less	TAX		25.255	11.070	10.001
	PROFIT/(LOSS) FOR THE YEAR AFTER TAX		61.121	62.895	(171.750)
Add/ Less	TAX ADJUSTMENT FOR PRIOR PERIODS		0.092	0.604	0.000
	PROFIT/(LOSS) FOR THE YEAR AFTER IMPAIRMENT LOSS & TAXATION		61.029	63.499	(171.750)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		28.894	(33.397)	138.353
	BALANCE CARRIED TO THE B/S		89.923	30.102	(33.397)
	EARNINGS IN FOREIGN CURRENCY
		Advisory Fees, Consultancy Fees	19.839	0.891	0.000
	Earnings / (Loss) Per Share (Rs.)		3.04	5.55	(17.08)

Particulars	31.03.2012
Sales Turnover [Approximately]	420.000

Expected Sales (2012-13) : Rs.550.000 Millions.

The above information has been parted by Mr. Suhas.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	12.98	16.64	(8.48)
Net Profit Margin (PBT/Sales)	(%)	22.55	20.68	(90.07)
Return on Total Assets (PBT/Total Assets}	(%)	39.90	31.34	(62.47)
Return on Investment (ROI) (PBT/Networth)		0.21	0.21	(0.87)
Debt Equity Ratio (Total Liability/Networth)		0.20	0.26	0.67
Current Ratio (Current Asset/Current Liability)		1.88	1.58	1.17

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditor
Others	0.000	0.204	0.315

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	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

BUSINESS RESULTS:

For the year ended March 31, 2011 the revenue of the company by way of management fees and other income earned was higher at Rs.470.004 Millions as compared to Rs.381.618 Millions earned in the year ended March 31, 2010. The average assets under management stood at Rs.75531.500 Millions (previous year: Rs.92204.500 Millions). The company has incurred expenses over the past year, to the tune of Rs.383.627 Millions as compared to Rs. 307.283 Millions incurred in the last financial year. While expenditure under personnel costs were kept under tight control, one of the significant items under expenditure was the marketing and distribution expenses incurred. In view of the need to conserve resources of the Company to meet planned expenditure, the directors express their inability to recommend any dividend for the year ended 31st March, 2011.

KEY PERSONNEL:

1. Mr. Vishal Modi who was appointed as Sr. Fund Manager – Equities with effect from 12th April, 2010 resigned with effect from 31st December, 2010.

2. Mr. Edwin Rietkerk was appointed as the Chief Operating Officer with effect from 16th August 2010 in place of Mr. Paul J. M. Vrancken who ceased to be the Chief Operating Officer with effect from 16th August, 2010

3. Mr. Vijay Sharma who was appointed as Sr. Fund Manager – Fixed Income with effect from 13th September, 2010 resigned with effect from 20^th January, 2011.

4. Mr. Akhil Mittal resigned as Fund Manager – Fixed Income with effect from 25th November 2010 and was re-appointed as Fund Manager – Fixed Income with effect from 14th March, 2011

5. Ms. Priti Shah who was appointed as Fund Manager – Fixed Income with effect from 18th November, 2010 resigned with effect from 8th March, 2011

6. Mr. Anand Shah, Head - Equities resigned from the services of the Company with effect from 18th March 2011.

7. Mr. Yogesh Patil was designated as Fund Manger – Equity with effect from 18th March 2011.

OPERATIONS:

IN TUNE WITH THE MARKET DEMAND, THE FOLLOWING SCHEMES WERE LAUNCHED DURING THE YEAR:

NAME	TYPE	INITIAL SUBSCRIPTION [RS. IN MILLIONS]
Canara Robeco InDiGo Fund	Open Ended Debt Fund	3777.6000
Canara Robeco Large Cap+ Fund	Open Ended Equity Fund	1775.900
Canara Robeco Gilt Advantage Fund	Open ended Gilt scheme	456.199
CR Fixed Maturity Plan Series 6 14 Months Plan A	Close Ended Fixed Maturity Debt Scheme	219.483
CR Fixed Maturity Plan Series 6 13 Months Plan A	Close Ended Fixed Maturity Debt Scheme	2064.033
CR Fixed Maturity Plan Series 6 13 Months Plan B	Close Ended Fixed Maturity Debt Scheme	2591.129
Canara Capital Protection Oriented Fund- Series 1 - 36 Months (Plan A)	Close ended Capital Protection Oriented Fund	355.199

Apart from capital appreciation under growth plans of various Schemes and daily/weekly dividends in Canara Robeco Liquid, Canara Robeco Treasury Advantage, Canara Robeco Floating Rate and Canara Robeco Interval Funds and Canara Robeco Fixed Maturity Plans, the following Schemes declared dividends during the year under dividend plans:

· Canara Robeco Income: Rs.0.50 per unit (5%) (Twice during the year) and 0.25 per unit (2.5%)

· Canara Robeco Monthly Income Plan: Rs.0.50 per unit (5%) and Rs.0.30 per unit (3%) (twice during the year)

· Canara Robeco F.O.R.C.E. Fund: Rs.1.00 per unit (10%)

· Canara Robeco InDiGo Fund: Rs.0.15 per unit (1.5%) Rs.0.10 per unit (1%)

· Canara Robeco Equity Tax Saver: Rs.2.00 per unit (20%) Rs.1.00 per unit (10%)

· Canara Robeco Dynamic Bond: Rs.0.16 per unit (1.6%)

As on 31st March, 2011, the Company was managing 27 schemes of Canara Robeco Mutual Fund, of which 16 were debt oriented schemes, 8 were equity oriented schemes and 3 were hybrid schemes. As on 31st March, 2011, the Average Assets under Management of Canara Robeco Mutual Fund stood at Rs.75531.500 Millions (previous year: Rs.92204.500 Millions).

During the year, the Company has received certificate of registration for Portfolio Manager under Securities Exchange Board of India (Portfolio Manager) Regulations, 1993. Pursuant to the said registration, the Company provides non-binding advisory services for Indian securities to Robeco Hong Kong Limited.

RECOGNITION AND AWARDS:

The Canara Robeco Investment Team delivered good performance throughout the year in the fixed income and equity asset classes. This performance has been recognized by the various awards conferred upon us recently.

The Canara Robeco Equity Diversified and Canara Robeco Equity Tax Saver Funds were awarded the Best Fund: Equity: Large Cap and Mid Cap Category and Tax Planning Category award respectively at the NDTV Profit Mutual Fund Awards 2010. Canara Robeco Income Fund was awarded the Best Fund in Open Ended Debt – Long Term category by ICRA, Morning Star and CRISIL CNBC at their respective awards ceremony held in February 2011. Canara Robeco Equity Tax Saver also bagged the runner-up award for Equity Tax Planning Category at the Morning Star Awards before being adjudged as the Best Equity Tax Planning Fund at the Business world Mutual Fund Awards. Also, Ritesh Jain (Head - Fixed Income) was accorded as the "Best Debt Fund Manager - Canara Robeco Income" at the Business world Mutual Fund Awards.

CONTINGENT LIABILITIES:

Contingent Liability to Canara Bank on receipt of Claim/Settlement of dispute towards property tax and other charges pertaining to the building occupied by the company till 30/9/03. The sum involved is not quantified.

Income from Management Fee includes Rs.10.467 Millions (previous year Rs.10.804 Millions) from Canbank Mutual Fund – General Administration Dept. (CMF - GAD) and Erstwhile Unitholders Account for the year 2010-2011. The accounts of CMF - GAD and Erstwhile Unitholders Account for the year 2010-2011 are not yet audited and hence the amount of Rs.10.467 Millions has been taken as income on the basis of certificate obtained from the statutory auditors of CMF - GAD.

Details of remuneration paid to CEO

Remuneration payable to the CEO (Manager) appointed with effect from September 26, 2007, being in excess of the limits prescribed under sections 198, 269 of the Act and provisions of Schedule XIII to the Act, though accrued in the books of accounts was not paid. Upon subsequent decision to pay the CEO’s remuneration upto the maximum permissible limit in accordance with the provisions of the Act, the excess amount provided in earlier years has been reversed during the year 2009-10. Had the said excess provision not been reversed, the ‘Employee’s Remuneration and Benefit’ for the year 2009-10 would have been Rs.187.947 Millions instead of Rs. 139.992 Millions.

FIXED ASSETS:

• Residential Flats
• Office Equipments
• Air Conditioners
• Comp and Peripherals
• Electrical Fittings
• Furniture and Fixtures
• Motor Vehicles
• Leasehold Improvements

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.54.87
UK Pound	1	Rs.86.46
Euro	1	Rs.69.49

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		47

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.