MIRA INFORM REPORT

Report Date :

01.11.2012

IDENTIFICATION DETAILS

Name :	JESONS INDUSTRIES LIMITED
Registered Office :	904, Peninsula Tower No. 1, Ganpat Rao Kadam Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.10.1999
Com. Reg. No.:	11-122193
Capital Investment / Paid-up Capital :	Rs.89.352 Millions
CIN No.: [Company Identification No.]	U24295MH1999PLC122193
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ06269E
PAN No.: [Permanent Account No.]	AAACJ7659P
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of synthetic adhesives, Vinyl Acetate and Acrylic Emulsions.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1400000
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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	LONG TERM BANK FACILITIES : FITCH BB-
Rating Explanation	Indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions.
Date	March, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	904, Peninsula Tower No. 1, Ganpat Rao Kadam Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra
Tel. No.:	91-22-66515253 / 66515226
Fax No.:	91-22-66515252
E-Mail :	info@jesons.net sales.exports@jesons.net
Website :	http://www.jesons.net
Area:	5000 sq. ft.
Location :	Owned
Factory :	Survey No. 377/1/7, Zari Causeway Road, Behind Store Quarry, Kachigam, Daman (Union Territory)

DIRECTORS

As on 30.09.2011

Name :

Mr. Dhiresh Shashikant Gosalia

Designation :

Managing Director

Address :

131 Spenta Tower, 13^th Floor, 55-57 Forjet Street Gowalia Tank, Mumbai – 400 036, Maharashtra, India

Date of Birth/Age :

06.01.1962

Date of Appointment :

12.10.1999

DIN No.:

00217158

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24295MH1987PTC043332	QUICK STIC MANUFACTURING COMPANY PRIVATE LIMITED	Director	08-12-93	08-12-93	-	Active	NO
2	U24295MH1999PLC122193	JESONS INDUSTRIES LIMITED	Managing director	01-04-08	12-10-99	-	Active	NO
3	U62110MH2004PTC146037	JESONS LOGISTICS PRIVATE LIMITED	Director	30-04-04	30-04-04	-	Active	NO
4	U25199MH2006PTC164355	JESONS ADHESIVE PRIVATE LIMITED	Director	06-09-06	06-09-06	-	Active	NO

Name :

Mr. Madhu Ranchhoddas Mehta

Designation :

Director

Address :

E-3, 701/702, A Wing, New Highway Park, Kandivali (East), Mumbai – 400 101, Maharashtra, India

Date of Birth/Age :

02.06.1941

Date of Appointment :

01.04.2008

DIN No.:

02250878

Name :

Mrs. Madhavi D Gosalia

Designation :

Whole-Time Director

Address :

131 Spenta Tower, 13^th Floor, 55-57 Forjet Street Gowalia Tank, Mumbai – 400 036, Maharashtra, India

Date of Birth/Age :

27.06.1963

Date of Appointment :

12.10.1999

DIN No.:

00217199

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24295MH1987PTC043332	QUICK STIC MANUFACTURING COMPANY PRIVATE LIMITED	Director	08-12-93	08-12-93	-	Active	NO
2	U24295MH1999PLC122193	JESONS INDUSTRIES LIMITED	Whole-time director	01-04-08	12-10-99	-	Active	NO
3	U62110MH2004PTC146037	JESONS LOGISTICS PRIVATE LIMITED	Director	30-04-04	30-04-04	-	Active	NO
4	U25199MH2006PTC164355	JESONS ADHESIVE PRIVATE LIMITED	Director	06-09-06	06-09-06	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Dhiresh Gosalia	538424
Madhavi D Gosalia	70100
Usha S Gosalia	64596
Hemal M Kampani	100
Kiran V Daftary	100
Rajesh D Mody	100
Ravina D Gosalia	25000
Madhusudan Mehta	100
Jhelum D Gosalia	25000
Dhiresh Gosalia (Partner of Jesons Corporation)	170000
Total	893520

Equity Shares Breakup (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relative of directors	99.98
Other top fifty (50) shareholders	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of synthetic adhesives, Vinyl Acetate and Acrylic Emulsions.

Products :

Product Description	ITC Code
Adhesives and Binders	3906-90
Pigments	3215-90
Rubber	3506-00

· Textile Blinders

· Rubber Based Adhesive

· Wood Glue

· PSA

· Lamination Adhesive

· Pigment Based

· PU For Footwear

· PVA Emulsion

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Bank of India, SSI Branch, Andheri (East), Mumbai – 400 069, Maharashtra, India
• Central Bank of India, Main Office, M.G Road, Fort, Mumbai – 400 023, Maharashtra, India
• HSBC Bank Limited
• HDFC Bank Limited
• Standard Chartered Bank
• Citi Bank N.A
• Barclays Bank Plc, 601/603, Ceejay House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Facilities :

Secured Loans	(As on 31.03.2011) Rs. in millions	(As on 31.03.2010) Rs. in millions
Working Capital Loan	267.884	245.632
Loan Taken for Vehicles	4.339	2.387
Loan Taken for Others	129.100	139.372
Total	401.323	387.391

Unsecured Loans	(As on 31.03.2011) Rs. in millions	(As on 31.03.2010) Rs. in millions
From Others	2.443	2.443
From Directors	2.283	2.456
Total	4.726	4.899

Banking Relations :

--

Auditors :

Name :

R. Trivedi and Associates

Chartered Accountants

Address :

119, Ground Floor, G-Block, Ranjit Studio, Dadasaheb Palke Road, Dadar, Mumbai-400014, Maharashtra, India

Tel. No.:

91-22-24140957

PAN No.:

AADPT8670Q

Associates :

• Jesons Corporation
• Fortune Traders
• Bag Sealing
• Anchore Adhesives Private Limited

Subsidiaries :

• Jesons Industries Nepal (Private) Limited
• Jesons Adhesives (Suzhou) Company Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.100/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
893520	Equity Shares	Rs.100/- each	Rs.89.352 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		89.352	89.352	89.352
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		254.677	154.052	108.093
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		344.029	243.404	197.445
LOAN FUNDS
1] Secured Loans		401.323	387.391	409.458
2] Unsecured Loans		4.726	4.899	2.565
TOTAL BORROWING		406.049	392.290	412.023
DEFERRED TAX LIABILITIES		5.821	4.389	5.412
TOTAL		755.899	640.083	614.880
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		215.581	202.295	177.945
Capital work-in-progress		0.000	14.853	44.619
Advance against capital goods		0.000	0.000	0.569
INVESTMENT		1.803	20.000	75.182
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	223.547	165.889	128.847
	Sundry Debtors	656.468	430.279	279.413
	Cash & Bank Balances	36.868	50.647	41.592
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	206.658	204.102	139.980
Total Current Assets		1123.541	850.917	589.832
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	530.304	388.335	229.921
	Other Current Liabilities	39.914	32.629	55.464
	Provisions	15.182	36.759	1.004
Total Current Liabilities		585.400	457.723	286.389
Net Current Assets		538.141	393.194	303.443
MISCELLANEOUS EXPENSES		0.374	9.741	13.122
TOTAL		755.899	640.083	614.880

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4033.504	2216.090	1962.920
		Other Income	13.731	8.155	23.139
		TOTAL (A)	4047.235	2224.245	1986.059
Less	EXPENSES
		Consumption materials changes inventories	3279.918	1717.716
		Manufacturing service costs	49.034	35.516
		Employee related expenses	46.079	45.683
		Administrative selling other expenses	125.043	101.205
		Restructuring charges	320.743	166.372
		TOTAL (B)	3820.817	2066.492	1960.597
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		226.418	157.753	25.462
Less	FINANCIAL EXPENSES (D)		38.272	45.801	64.477
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		188.146	111.952	[39.015]
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.873	25.727	21.809
			162.273	86.225	[60.824]
Add	Extraordinary items		0.000	2.971	0.000
	PROFIT BEFORE TAX (E-F) (G)		162.273	89.196	[60.824]
Less	TAX (H)		61.649	10.217	4.686
	PROFIT AFTER TAX (G-H) (I)		100.624	78.979	[65.510]
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	430.500	NA	NA
	TOTAL EARNINGS		430.500	NA	NA
	Basic and Diluted Earnings Per Share (Rs.)		113.00	81.00	[73.32]

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.49	3.55	(3.30)
Net Profit Margin (PBT/Sales)	(%)	4.02	4.02	(3.10)
Return on Total Assets (PBT/Total Assets}	(%)	12.12	8.47	(7.92)
Return on Investment (ROI) (PBT/Networth)		0.47	0.37	(0.31)
Debt Equity Ratio (Total Liability/Networth)		2.88	3.49	3.54
Current Ratio (Current Asset/Current Liability)		1.92	1.86	2.06

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	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 (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

REVIEW OF OPERATIONS :

The Company has crossed the record mark of Rs.4000.000 Millions sales (gross) from operations during the year. As a result of improved business operations, the Company registered a growth of 82.42(%) percent in sales.

The Company has so far been completed the Capacity Expansion plan at Daman, thereby increased the production capacity by 17400 MT p.a.

In accordance with an agreement signed in the previous year, the Company sold its Rubber Business for a total sale consideration of Rs.5.000 Millions to M/s Atul Limited in June 2010.

The increase in the cost of raw materials and other expenses resulted into lowering of EBDIT margin from 7.09% to 5.59%. EBT is marginally higher over the previous year. There was an improvement in debt equity ratio from 1.65 times to 1.18 times. The Company has achieved Export Sales (FOB) to the tune of Rs.430.500 Millions.

FORM 8

Corporate identity number of the company	U24295MH1999PLC122193
Name of the company	JESONS INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	904, Peninsula Tower No.1, Ganpat Rao Kadam Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India E-Mail : info@jesons.net
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10243444
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Central Bank of India, Main Office, M.G Road, Fort, Mumbai – 400 023, Maharashtra, India E-Mail : aabid.co@gmail.com
Nature of instrument creating charge	Agreement of hypothecation
Date of instrument Creating the charge	20.07.2011
Amount secured by the charge	Rs.1102 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest C/C Cum PC Cum EBP/EBD TERM LOAN V -BR+4.5% O/D Against Book Debt BR+ 4.5% Terms of repayment C/C CUM PC CUM EDP/EDB O/D AGAINST BOOK DEBT- Repayable on demand together with interest on such sums from this date at the rate of interest with monthly rest for value received. 2) Term loan -repayable by 60 equal monthly installments each of Rs.0.500 Millions + interest. The 1st of which will be paid on may 2012 and so on till the entire amount of the said loan is repaid in full with all interest cost charges, expenses etc. Whatsoever Margin C/C Cum PC Cum EBP/EBD -25% PC 10% ODBD-25% Term loan V-25% L/C (inland/FOR) DP-DA-10% Buyers Credit-10% Extent and operation of the charge Raw materials, such as consumable stores and spares, packing materials, Book debts, Movable properties like machinery and equipment purchased out of Term loan V
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All the current assets of the Company, both present and future, more particularly described in the agreement of hypothecation. Movable/Immovable fixed assets of the Company both present and future, more particularly described in annexure 2 of the articles of agreement.
Date of instrument modifying the charge
Particulars of the present modification	Rs.65.000 Millions additional fund based working capital limit Rs.252.400 Millions Additional Non fund based working capital limit. Rs.30.000 Millions term loan V Rs.20.000 Millions EBN under LC

Fixed Assets

• Freehold Land
• Building
• Plant and Machinery
• Office Equipments
• Motor Vehicles
• Furniture and Fixtures

AS PER WEBSITE

CORPORATE PROFILE:

Growth through relationships in the adhesives industry

Jesons is a leading manufacturer of adhesives and polymer emulsions. The company has been in the adhesives business for over thirty years. Jesons believes and operates on the basis of a powerful principle. “The growth is a direct result of the value they add to the client’s business operations!” They constantly seek improved ways to serve the clients requirements be it by way of service, innovation or unique delivery models.

Adhering to the long term view

Jesons consistently adheres to the long term view when it comes to business.

The services to the industries they serve are based on transferring benefits and rationalising costs. This attitude has resulted in robust growth. Over the past 5 years, they have consistently maintained an above industry growth level of 25 % CAGR.

Promoting an entrepreneurship culture

As an organisation they promote an entrepreneurship model that empowers people and rewards individual and team work. They have an excellent record in employee retention and growth within the ranks. This enhances the ability to respond rapidly and achieve leadership positions in the business. They are the leading adhesive manufacturer in the PSA segment with a 70 % market share, and have significant presence in other segments.

MILESTONES:

2007	Expansion in India with the set up of a 36,000 TPA plant at Rourkee. This takes the total installed capacity to 86,000 TPA in India.
2006	In a major expansion the manufacturing capacity at Daman increased to 50000 TPA
2001	Manufacturing capacity at Daman ramped up to 25000 TPA.
1997	Started manufacturing operations at Daman, 160 kms. away from Mumbai The total installed manufacturing capacity rises to 4000 TPA.
1991	Shifted the manufacturing activities from Kanjurmarg to Palghar an industrial township that is 100 kms. away from Mumbai. Increased manufacturing capacity to 700 TPA. Mr. Dhiresh Gosalia takes over as Managing Director.
1972	Shri Shashikant Gosalia commences business. Establishes the first manufacturing unit at Kanjurmarg, Mumbai. Total installed capacity - 300 TPA

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 govrnment 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.54.12
UK Pound	1	Rs.87.08
Euro	1	Rs.70.15

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.