MIRA INFORM REPORT

Report Date :

09.11.2012

IDENTIFICATION DETAILS

Name :	VHM INDUSTRIES LIMITED (w.e.f. 10.09.1993)
Formerly Known As :	VHMTEX SYNTHETICS PRIVATE LIMITED
Registered Office :	220, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.08.1987
Com. Reg. No.:	11-044506
Capital Investment / Paid-up Capital :	Rs.152.400 Millions
CIN No.: [Company Identification No.]	U17100MH1987PLC044506
TAN No.: [Tax Deduction & Collection Account No.]	MUMV10005C
PAN No.: [Permanent Account No.]	AAACV1897K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Marketing of Blended Fabrics, Pertaining to Suiting and Shirting.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2140000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge external borrowings recorded by the company. However, 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 cautions.

NOTES : Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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	CRISIL
Rating	Term Loan = BB
Rating Explanation	Moderate risk of Default
Date	June 2011

Rating Agency Name	CRISIL
Rating	Bank Guarantee = P4+
Rating Explanation	Minimal degree of safety it carry very high credit risk
Date	June 2011

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 :	220, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Tel. No.:	91-22-40788888/ 23432023
Fax No.:	91-22-40788899/ 23415629
E-Mail :	mail@vhmindia.com exports@vhmindia.com
Website :	http://www.vhm.co.in http://www.vhmindia.com
Corporate Office :	F-2, Arihant Compound, Kalher Village, Thane, Maharashtra, India
Tel. No.:	91-2522-275445/ 275446
Fax No.:	91-2522-275444
E-Mail :	sales@vhminida.com
Factory 1 :	7/ 2, GIDC, Umergaon – 396 171, Gujarat, India
Tel. No.:	91-260-2563127
E-Mail :	factory@vhmindia.com
Factory 2 :	Cotton Division 106, Indian Corporation, Mankoli Naka, Dapoda Village, Bhiwandi, Thane, Maharashtra, India
Tel. No.:	91-2522-277731
E-Mail :	wvg@vhminida.com

DIRECTORS

As on 30.09.2010

Name :

Mr. Vijayraj Hirachand Mehta

Designation :

Managing Director

Address :

16, Ridge Road, 402 Gien Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

01.02.1953

Qualification :

B.Com

Date of Appointment :

31.08.1987

DIN No.:

00180586

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	U17100MH1987PLC044506	VHM INDUSTRIES LIMITED	Managing director	09-11-09	31-08-87	-	Active	NO
2	U67120MH1995PTC086570	VHM APPARELS PRIVATE LIMITED	Director	01-09-01	01-09-01	29-07-10	Active	NO

Name :

Mrs. Uttamben Vijayraj Mehta

Designation :

Director

Address :

16, Ridge Road, 402 Gien Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

01.04.1957

Qualification :

Graduate

Date of Appointment :

31.08.1987

DIN No.:

00322542

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	U17100MH1987PLC044506	VHM INDUSTRIES LIMITED	Director	31-08-87	31-08-87	-	Active	NO
2	U67120MH1995PTC086570	VHM APPARELS PRIVATE LIMITED	Director	01-09-01	01-09-01	18-01-10	Active	NO

Name :

Mr. Abhishek Vijayraj Mehta

Designation :

Director

Address :

16, Ridge Road, 402 Gien Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

10.07.1976

Qualification :

B.Com

Date of Appointment :

31.08.1987

DIN No.:

00397158

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	U17100MH1987PLC044506	VHM INDUSTRIES LIMITED	Director	31-08-87	31-08-87	-	Active	NO
2	U67120MH1995PLC086165	SHWETA FINANCE AND INVESTMENT LIMITED	Director	07-03-95	07-03-95	19-11-09	Active	NO
3	U67120MH1995PTC086570	VHM APPARELS PRIVATE LIMITED	Director	16-09-95	16-09-95	19-11-09	Active	NO
4	U17100MH1990PTC058046	SWETA SYNTHETICS PRIVATE LIMITED	Director	22-09-95	22-09-95	01-03-09	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Vijayraj Hirachand Mehta	623020
Abhishek Vijayraj Mehta	474560
Uttamben Vijayraj Mehta	622520
Vijayraj Mehta (HUF)	101760
Dineshkumar Nemichand Jain	180
Dhanesh Vijayraj Mehta	374180
Sukiben Jawanlal Jain	60
Rinku Abhishek Mehta	60000
Ashaben Babulal Shah	50000
Vimlaben Jayantilal Shah	50000
VHM Apparels Private Limited, India	2858180
Sweta Synthetics Private Limited, India	4715360
Shweta Finance and Investment Private Limited, India	2860000
Nakoda Apparels Private Limited, India	500000
Aadeshwar Exports Private Limited, India	500000
Namah Infrastructure Private Limited, India	1450000
Jawnmal Chunnilal Jain	180
Total	15240000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	84.54
Directors or relatives of directors	15.46
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Marketing of Blended Fabrics, Pertaining to Suiting and Shirting.
Products :	Finished Cloth Grey Cloth Weaving charges received

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	2010-2011 Qty. in Mtrs./ Pcs.
LICENCE CAPACITY
(A) Grey Cloth	Mtr.	Not Applicable
INSTALLED CAPACITY
(A) Grey Cloth	Mtr.	16,800,000
ACTUAL PRODUCTION
(a) Cloth Net of Shrinkage Includes processed by third parties	Mtr.	9,868,595
(b) Ready Made (Garments)	Pcs.	0

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Backbay Reclamation Branch, Raheja Chambers, Nariman Point, Mumbai – 400 021, Maharashtra, India

· State Bank of India, Mid Corporate Loan Admn. Unit, Shri Hari Building, RTO Lane, Four Bungalow, Andheri (West), Mumbai – 400 053, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
Rupee term loans banks secured	424.684	364.260
Working capital loans banks secured	590.034	412.949
Loans taken for vehicles secured	1.440	0.185
Other debt secured	15.370	10.896
Interest accrued due other debt secured	0.130	0.109
Total	1031.658	788.399

Banking Relations :	--
Auditors :
Name :	G.P. Sharma and Company Chartered Accountants
Address:	D-216, Crystal Plaza, New Link Road, Lokhandwala, Andheri (West), Mumbai – 400 053, Maharashtra, India
Tel No.:	91-22-26733728/ 26733693
Tele-fax No.:	91-22-26743110
E-Mail :	gpscompany@eth.net gpsharma_2006@yahoo.co.in
PAN No.:	AEUPS9577C
Enterprises over which key management personnel exercised significant influence :	· VHM Apparels Private Limited (Common Key Personnel) · VHM International (Partnership Firm where Directors are Partners) · Sweta Synthetics Private Limited (Directors are holding more than 2% of Share Capital)

CAPITAL STRUCTURE

As on 31.09.2011

Authorised Capital : Rs.195.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.189.690 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
18500000	Equity Shares	Rs.10/- each	Rs.185.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15240000	Equity Shares	Rs.10/-each	Rs.152.400 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		152.400	142.400	110.400
2] Share Application Money		81.660	66.700	71.700
3] Reserves & Surplus		302.752	206.589	137.858
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		536.812	415.689	319.958
LOAN FUNDS
1] Secured Loans		1031.658	788.399	596.611
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1031.658	788.399	596.611
DEFERRED TAX LIABILITIES		54.481	43.121	36.892
TOTAL		1622.951	1247.209	953.461
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		658.626	523.009	470.689
Capital work-in-progress		23.528	17.475	0.000
INVESTMENT		0.550	0.550	0.550
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	601.635	311.918	254.814
	Sundry Debtors	469.897	426.447	366.356
	Cash & Bank Balances	20.184	85.931	8.991
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	142.363	89.292	95.383
Total Current Assets		1234.079	913.588	725.544
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	256.658	186.467	232.876
	Other Current Liabilities	5.230	3.530	0.808
	Provisions	32.000	17.500	9.750
Total Current Liabilities		293.888	207.497	243.434
Net Current Assets		940.191	706.091	482.110
MISCELLANEOUS EXPENSES		0.056	0.084	0.112
TOTAL		1622.951	1247.209	953.461

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	2296.629	1597.739	1084.265
		Other Income	42.419	14.300	17.215
		TOTAL (A)	2339.048	1612.039	1101.480
Less	EXPENSES
		Consumption materials changes inventories	1835.637	1253.281
		Manufacturing service costs	149.706	102.565
		Employee related expenses	14.607	10.175	985.110
		Administrative selling other expenses	93.514	78.678
		TOTAL (B)	2093.464	1444.699	985.110
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		245.584	167.340	116.370
Less	INTEREST FINANCIAL CHARGES (D)		113.132	81.030	59.395
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		132.452	86.310	56.975
Less/ Add	DEPRECIATION/ AMORTISATION (F)		60.429	35.751	13.752
	PROFIT BEFORE TAX (E-F) (G)		72.023	50.559	43.223
Less	TAX (H)		25.860	14.828	22.246
	PROFIT AFTER TAX (G-H) (I)		46.163	35.731	20.977
Add/ Less	Excess/ (Short) Provision for taxation prior period adjustment		0.000	0.000	(0.292)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		102.464	66.733	46.048
	BALANCE CARRIED TO THE B/S		148.627	102.464	66.733
	EXPORT OF GOODS CALCULATED ON FOB BASIS		107.851	39.990	20.768
	IMPORTS
		Capital Goods	65.015	65.015	0.000
		Components & Spares	0.000	0.000	4.946
	TOTAL IMPORTS		65.015	65.015	4.946
	Earnings Per Share (Rs.)		3.05	3.09	1.90

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.97	2.22	1.90
Net Profit Margin (PBT/Sales)	(%)	3.14	3.16	3.99
Return on Total Assets (PBT/Total Assets}	(%)	3.81	3.52	3.61
Return on Investment (ROI) (PBT/Networth)		0.13	0.12	0.14
Debt Equity Ratio (Total Liability/Networth)		2.47	2.40	2.63
Current Ratio (Current Asset/Current Liability)		4.20	4.40	2.98

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

FINANCIAL RESULTS

The operations of the company were satisfactory and the sales of the Company during the Year was Rs.2296.629 millions. The profit after tax is Rs.46.163 millions as compared to profit of Rs.35.730 millions of the previous year.

PERFORMANCE

The Profit after tax of the Company for the accounting year 2010-11 has improved substantially to profit of Rs.46.163 millions as compared to profit for the last year of Rs.35.731 millions. The Company has recorded a turnover as of Rs.2540.529 millions.

CONTINGENT LIABILITIES NOT PROVIDED IN RESPECT OF:

Particulars	31.03.2011 (Rs. in millions)
1. Bank Guarantee	14.956
2. Guarantee given in favour of third parties	43.149

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17100MH1987PLC044506
Name of the company	VHM INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	220, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: mail@vhmindia.com
This form is for	Modification of charge
Charge identification number of the modified	90225116
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Backbay Recalmation Branch, Raheja Chambers, Nariman Point, Mumbai – 400 021, Maharashtra, India E-Mail: kamalax_saraf@hotmail.com
Nature of description of the instrument creating or modifying the charge	Memorandum of deposit for creation of further charge for term loan/overall limit where the initial charge is created by way of mortgage by deposit of title deeds. (Form C.10)
Date of instrument Creating the charge	25.08.2011
Amount secured by the charge	Rs.1235.600 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per sanction terms Terms of Repayment: As per sanction terms Margin: As per sanction terms Extent and Operation of the charge: As per sanction terms
Short particulars of the property charged	All present and future goods, movable and other assets of the borrower including documents of title to goods and other assets such as outstanding monies, receivables, claims, bills invoices, documents, engagements, securities, investments and rights and the present and future machinery belonging to or under the control of the company wherever kept lying and stored and kept lying, stored and kept including all such goods, movables and other assets may be in course of shipment, transit or delivery.
Date of latest modification prior to the present modification	07.06.2011
Particulars of the present modification	Now by the present modification dated 25.08.2011 the company offered its immovable property as a security to secure its enhanced credit facilities to the extent of Rs.1235.600 millions.

FIXED ASSETS:

Tangible Assets:

v Land – Freehold

v Land – Leasehold

v Residential Building

v Office Building

v Factory Building

v Other Building

v Plant and Machinery

v Office Equipments

v Factory Equipments

v Furniture and Fixtures

v Computer Equipments

v Ships Vessels

v Aircrafts Helicopters

v Motor Vehicles

v Livestock

v Bridges Roads Ports Culverts

v Railway Sidings

v Plantations

v Books Periodicals

v Mines Quarries

Intangible Assets:

v Goodwill

v Knowhow

v Computer Software

v Patents Trademarks Design

v Commercial Contractual Rights

v Licenses

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 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.54.44
UK Pound	1	Rs.87.00
Euro	1	Rs.69.48

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		32

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.