MIRA INFORM REPORT

Report Date :

01.11.2012

IDENTIFICATION DETAILS

Name :	K.K. SPUN PIPE PRIVATE LIMITED
Registered Office :	7/18A, Ground Floor, Sarvapriya Vihar, New Delhi – 110016
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.01.2006
Com. Reg. No.:	55-144590
Capital Investment / Paid-up Capital :	Rs.40.000 Millions
CIN No.: [Company Identification No.]	U29199DL2006PTC144590
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Concrete Pipes
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 410000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	As confirmed by Mr. Rajesh Roy, Senior Accounts Manager the subject was established as a proprietory concern by the name ‘K.K. Spun Pipes’ during 1977 and during 2006, it got converted into a private limited company. It is an established company having moderate track. The management of the company has failed to file its financials since 2010. However, Mr. Rajesh Roy has confirmed that the company has achieved sales turnover of Rs.1000.000 Millions and Rs.1100.000 Millions during 2011 and 2012 respectively, which is not verified. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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	CARE
Rating	A3 (Short Term Bank Loan)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	October 2011 to March 2012

Rating Agency Name	CARE
Rating	BBB- (Long Term Bank Loan)
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	October 2011 to 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.

INFORMATION PARTED BY

Name :	Mr. Rajesh Roy
Designation :	Senior Accounts Manager
Contact No.:	91-8800954800
Date :	31.10.2012

LOCATIONS

Registered Office :	7/18A, Ground Floor, Sarvapriya Vihar, New Delhi – 110016, India
Tel. No.:	91-11-41828557 / 26851473 / 26510684 / 26851478
Mobile No.:	91-8800954800 (Mr. Rajesh Roy)
Fax No.:	91-11-41828556 / 26851473
E-Mail :	rajesh.roy@kkspunpipes.co.in zoiros.consulting@gmail.com kksp@kkspupipes.com ca_pawanchadha@hotmail.com csgupta1997@gmail.com
Website ;	www.kkspunpipes.com
Area :	1200 Sq. ft.
Location :	Owned
Factory 1 :	Tigavar Road, Vallabgad, Haryana, India
Area :	4 acres
Location :	Owned
Factory :	Also Located at: Bhiwandi Chennai Varanasi Jabalpur Bangalore Raipur Murababad Kanpur

DIRECTORS

As on 30.09.2010

Name :

Mr. Himanshu Kumar Gupta

Designation :

Director

Address :

7/18A, Sarpirya Vihar, New Delhi – 110 016, India

Date of Birth/Age :

17.02.1981

Qualification :

B. Tech.

Date of Appointment :

09.01.2006

DIN No.:

00822757

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29199DL2006PTC144590	K.K.SPUN PIPE PRIVATE LIMITED	Director	09/01/2006	09/01/2006	-	Active	NO
2	U45201DL2006PTC146667	SAI CONCRETE INFRASTRUCTURE PRIVATE LIMITED	Director	01/03/2007	01/03/2007	-	Active	NO
3	U74999DL2010PTC197771	JAISHREE WIRES AND FASTNERS PRIVATE LIMITED	Director	07/01/2010	07/01/2010	-	Active	NO
4	U63040DL2011PTC212125	PHK LOGISTICS PRIVATE LIMITED	Director	03/01/2011	03/01/2011	-	Active	NO

Name :

Mr. Parmod Kumar Gupta

Designation :

Director

Address :

7/18A, Sarpirya Vihar, New Delhi – 110 016, India

Date of Birth/Age :

23.09.1955

Date of Appointment :

09.01.2006

DIN No.:

00824409

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29199DL2006PTC144590	K.K.SPUN PIPE PRIVATE LIMITED	Director	09/01/2006	09/01/2006	-	Active	NO
2	U45201DL2006PTC146667	SAI CONCRETE INFRASTRUCTURE PRIVATE LIMITED	Director	22/02/2006	22/02/2006	-	Active	NO
3	U74999DL2010PTC197771	JAISHREE WIRES AND FASTNERS PRIVATE LIMITED	Director	07/01/2010	07/01/2010	-	Active	NO
4	L72900DL1999PLC099103	LUMAX AUTOMOTIVE SYSTEMS LIMITED	Director	30/09/2010	31/08/2010	11/07/2011	Active	NO
5	U63040DL2011PTC212125	PHK LOGISTICS PRIVATE LIMITED	Director	03/01/2011	03/01/2011	-	Active	NO

Name :

Mr. Kavish Gupta

Designation :

Director

Address :

7/18A, Sarpirya Vihar, New Delhi – 110 016, India

Date of Birth/Age :

16.12.1986

Date of Appointment :

01.01.2010

DIN No.:

02953533

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29199DL2006PTC144590	K.K.SPUN PIPE PRIVATE LIMITED	Director	01/01/2010	01/01/2010	-	Active	NO
2	U63040DL2011PTC212125	PHK LOGISTICS PRIVATE LIMITED	Director	03/01/2011	03/01/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajesh Roy
Designation :	Senior Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
K. K. Telesolutions Private Limited, India	50000
Pramod Kumar	11000
Pramod Kumar	668455
Pramod Kumar	2485290
K.K.Sales	376565
Himanshu Gupta	371125
Jai Shree Gupta	20765
Kavish Gupta	16800
Total	4000000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2010

Category	Percentage
Bodies corporate	1.00
Directors or relatives of directors	99.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Concrete Pipes.
Products :	Pre-Cast Product R.C.C Pipes Box Culverts Jacking Pipe Conical Manholes Sub Pillar Foundation SFRC Drain Covers U Shape Channel Drains Vent Shafts HDPE/PVC Lined RCC pipes Perforated Pipe Fly over wall panel Telecom Products Telecom Poles Telecom Shelters Telecom Tower Prefabricated Steel Telecom Products Plastic Product T -grip HDPE/PVC
Imports :
Products :	Machinery
Countries :	U.S.A. China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS

As on 31.03.2010

(Qty. In Nos.)

Particulars	Actual Production
RCC Products (PCS)	57971
Others (PCS)	40420
Steel FAB Structure (KGS)	95580
HDPET Grip Lining (M2)	4400

GENERAL INFORMATION

Suppliers :

· Steel Authority of India

Customers :

End Users

· L and T

· Reliance

· Bharti

· VSNL

· BSNL

· Air Tel

· GAAR

No. of Employees :

500 (Approximately)

Bankers :

• Karnataka Bank, Sector 2/C, Faridabad – 121001, Haryana, India
• HDFC Bank, HDFC House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India
• Dena Bank
• Kotak Mahindra Bank
• ICICI Bank
• State Bank of India, Delhi, India
• HDFC Bank, Delhi, India

Facilities :

Total Rs.750.000 Millions (From State Bank of India)

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Dena Bank Machinery Loan	0.000	13.978
Kotak Mahindra Bank (FLT) Loan	0.630	1.989
Tata Capital Limited Loan	2.594	2.537
ICICI Bank	0.386	0.896
Kotak Mahindra Bank Loan	17.364	0.762
Tata Motors Finance Limited	0.370	0.892
Dena Bank C/A	0.000	6.242
Dena Bank C/C	25.786	1.019
HDFC Bank Limited Loan	17.400	0.000
Dena Bank OD Against FDR	7.900	0.000
Total	72.430	28.315
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Directors Firms	79.788	25.509
Total	79.788	25.509

Banking Relations :

--

Financial Institution :

• Tata Capital Limited
• Tata Motors Finance Limited

Auditors :

Name :

SVANS and Associates

Chartered Accountants

Address :

294, Shyam Niwas, Sector-28, Faridabad – 121008, Haryana, India

Tel. No.:

91-129-4041950

Mobile No.:

91-9810294037

E-Mail :

ssgulati@hotmail.com

gulati.ss@gmail.com

PAN No.:

AAQFS3759Q

Membership :

• CII (Confederation of India Industry)
• ISI
• FICCI ( Federation India Chambers and Commerce and Industry)

Associates/Subsidiaries :

• K.K. Concrete Technology
• K.K. Vertical
• P.H.K. Logistic

CAPITAL STRUCTURE

After 30.09.2010

Authorised Capital : Rs.65.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.47.145 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Share	Rs.10/- each	Rs.40.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		40.000	24.018	0.720
2] Share Application Money		0.000	8.366	0.000
3] Reserves & Surplus		62.422	26.120	2.159
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		102.422	58.504	2.879
LOAN FUNDS
1] Secured Loans		72.430	28.315	0.000
2] Unsecured Loans		79.788	25.509	0.000
TOTAL BORROWING		152.218	53.824	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		254.640	112.328	2.879
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		181.411	84.322	0.000
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.347	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.530	16.464	0.000
	Sundry Debtors	113.769	84.543	0.000
	Cash & Bank Balances	56.317	26.618	0.111
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	32.102	17.225	2.800
Total Current Assets		215.718	144.850	2.911
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	66.555	99.266	0.000
	Other Current Liabilities	66.630	10.192	0.017
	Provisions	9.702	7.444	0.079
Total Current Liabilities		142.887	116.902	0.096
Net Current Assets		72.831	27.948	2.815
MISCELLANEOUS EXPENSES		0.051	0.058	0.064
TOTAL		254.640	112.328	2.879

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	473.994	459.006	0.300
		Other Income
		TOTAL (A)	473.994	459.006	0.300
Less	EXPENSES
		Office Expenses
		Administrative Expenses	411.390	408.292	0.049
		Advertising Expenses
		TOTAL (B)	411.390	408.292	0.049
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		62.604	50.714	0.251
Less	INTEREST (D)		2.594	2.845	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		60.010	47.869	0.251
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.628	25.414	0.000
	PROFIT BEFORE TAX (E-F) (G)		37.382	22.455	0.251
Less	TAX (H)		9.355	7.444	0.079
	PROFIT AFTER TAX (G-H) (I)		28.027	15.011	0.172
	TOTAL EARNINGS		1.822	0.000	0.000
	Earnings Per Share (Rs.)		7.01	6.25	2.39

Particulars	31.03.2012	31.03.2011
Sales Turnover (Approximately)	1100.000	1000.000 (Due to Business expansion)

Expected Sales (2012-2013): Rs.1500.000 Millions

The above information has been parted by Mr. Rajesh Roy

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.91	3.27	57.33
Return on Total Assets (PBT/Total Assets}	(%)	9.41	9.80	8.62
Return on Investment (ROI) (PBT/Networth)		0.36	0.38	0.09
Debt Equity Ratio (Total Liability/Networth)		2.88	2.92	0.03
Current Ratio (Current Asset/Current Liability)		1.51	1.24	30.32

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	Yes
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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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

NOTE:

Registered office of the company has been shifted from “B-4/52 Azad Appttshauz Khas, New Delhi-110006, India” to the present address w.e.f.15.01.2009

FORM 8 :

Corporate identity number of the company	U29199DL2006PTC144590
Name of the company	K.K. SPUN PIPE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	7/18A, Ground Floor, Sarvapriya Vihar, New Delhi – 110016, Delhi, India E-Mail : ca_pawanchadha@hotmail.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India E-Mail : cpu-retailassetoperations.rocefiling@hdfcbank.com
Nature of instrument creating charge	Agreement for Loan and Guarantee.
Date of instrument Creating the charge	05.08.2011
Amount secured by the charge	Rs.32.644 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest @ 9.52 % p.a. Terms of repayment The Loan is repayable in 12 EMIs of Rs.0.500 Million and 23 EMIs of Rs.1.414 Millions starting from 05th September, 2011 ending on 05th July, 2014. Margin As may be stipulated by bank from time to time. Extent and operation of the charge The Company hypothecates to and charges in favour of the Bank by way of first and exclusive charge of the Vehicle/ equipment described in as security for the repayment/payment by the company of the loan granted or to be granted to the company by the Bank together with all fees, interest, costs and expenses incurred/to be incurred by the Bank and all other monies payable or to become payable by the company to the Bank. Others The Bank shall be absolutely entitled and have full power and authority to sell, assign or transfer in any manner, in whole or in part, and in such manner and on such terms as the Bank may decide, including reserving a right to the Bank to retain its power to proceed against the company on behalf of the purchaser, assignee or transferee, any or all outstanding dues of the company, to any third party of the Bank's choice without reference to or without written intimation to the company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Equipment namely : Pipe Plus Machine (Year Of Manufacture: 2010 )

TRADE REFERENCES:

· Steel Authority of India, (Mrs. Ritika, Market Manager) (Supplier- Since - 35 Years)

· L and T (All over India) (Mr. B.C. Shah, Market Manager) (Customer – Since – 5 Years)

FIXED ASSETS:

• Air Conditioner
• CCTV
• Cellphone
• Fax Machine
• Office Equipement
• Submersible Pump
• Water Filter
• Weighing Scale
• Crane
• Generator
• Machinery and Mould
• Furniture
• Car
• Scooter / Motor Cycle
• Truck
• Computer
• Land

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

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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.