MIRA INFORM REPORT

Report Date :

21.11.2012

IDENTIFICATION DETAILS

Name :	MAZDA LIMITED
Registered Office :	C/1 39/13/16 G I D C Naroda, Ahmedabad – 382330, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.09.1990
Com. Reg. No.:	04-014293
Capital Investment / Paid-up Capital :	Rs. 42.580 millions
CIN No.: [Company Identification No.]	L29120GJ1990PLC014293
TAN No.: [Tax Deduction & Collection Account No.]	AHMM00286G
PAN No.: [Permanent Account No.]	AABCM9273H
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Engineering Goods.
No. of Employees :	202 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 2630000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having good track. Fundamental of the company appears to be strong. But in the current year their is slight fall in the profitability of the company due to increase in tax expenses. However, general financial position of the company appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal business dealings at usual trade terms and conditions.

NOTES :

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

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	ICRA
Rating	A- (Long term fund based facilities)
Rating Explanation	Have adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk
Date	April, 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/ Factory 1 :	C/1 39/13/16 G I D C Naroda, Ahmedabad – 382330, Gujarat, India
Tel. No.:	91-79-22821779/22822274
E-Mail :	nishith@mazdalimited.com
Website :	www.mazdalimited.com
Corporate Office :	Mazda House, 650/1, Panchwati 2nd Lane, Ambawadi, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-40007000 (30 Lines)
Fax No.:	+91-79-26565605
E-Mail :	info@mazdalimited.com vacuum@mazdalimited.com
Factory 2 :	Hitendra Nagar Sahakari Vasahat Limited, N.H. Road. Naroda, Ahmedabad – 382 340, Gujarat, India
Tel. No.:	91-79-22801670/22801654
Factory 3 :	C/1,A-5, GIDC, Odhav,Ahmedabad-382415, Gujarat, India
Factory 4 :	Plot No. 17/1, Phase-III, GIDC, Naroda, Ahmedabad- 382415, Gujarat, India

DIRECTORS

As on 31.03.2012

Name :	Nanalal C. Mehta
Designation :	Chairman
Name :	Mr. Sorab R. Mody
Designation :	Managing Director
Name :	Samuel W. Croll - III
Designation :	Director
Name :	Dady K. Contractor
Designation :	Director
Name :	Mr. Mohib N. Khericha
Designation :	Director
Name :	Sheila S. Mody
Designation :	Managing Director
Date of Birth/Age :	66
Qualification :	B.Com.
Experience :	33 Years
Date of Appointment :	01.12.1991
Name :	Houtoxi F. Contractor
Designation :	Director
Name :	Harbhajansingh B. Khalsa
Designation :	Director
Name :	Percy X. Avari
Designation :	Whole-Time Director
Name :	Shanaya S. Mody
Designation :	Whole-Time Director

KEY EXECUTIVES

Name :	Cyrus J. Bhagwagar
Designation :	Financial Controller
Name :	Nishith C. Kayasth
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1467311	34.46
Sub Total	1467311	34.46
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1467311	34.46
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9230	0.22
Financial Institutions / Banks	800	0.02
Foreign Institutional Investors	79613	1.87
Sub Total	89643	2.11
(2) Non-Institutions
Bodies Corporate	320799	7.53
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1161552	27.28
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	801440	18.82
Any Others (Specify)	417255	9.80
Non Resident Indians	127755	3.00
Overseas Corporate Bodies	289500	6.80
Sub Total	2701046	63.43
Total Public shareholding (B)	2790689	65.54
Total (A)+(B)	4258000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	4258000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Engineering Goods.

Products :

ITC CODE NO.	PRODUCT/ SERVICES DESCRIPTION
84212900	Vacuum Systems
84195090	Evaporators
84196000	Thermo Compressors

GENERAL INFORMATION

No. of Employees :

202 (Approximately)

Bankers :

State Bank of India, Overseas Branch, 3 floor, Amrit Jayanti Bhavan, Navjivan P.O., B/h Gujarat Vidhyapith, Ahmedabad-380014, Gujarat, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SBI Export Packing Credit Facilities (secured) *	10.098	0.000
Total	10.098	0.000
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Unsecured Borrowings	1.500	1.500
Total	1.500	1.500

Note:

* Cash credit facility, Export Packing Credit facility from the State Bank of India are secured by the Pledge/ Hypothecation of stock, book debts and equitable mortgage of the assets of the company and co-lateral security of premise owned by Mr. S.R Mody, situated at Odhav GIDC and also personally guaranteed by Mr. S. R. Mody, who is the Managing Director of the company.

Banking Relations :	--
Auditors :
Name :	Apaji Amin and Company Chartered Accountants
Address :	304, Akansha Building, Near Mount Carmel School, Navrangpura, Ahmedabad-380009, Gujarat, India
Related Parties :	· Ahura Controls Private Limited · H.T. Engineering (Gujarat) Private Limited · Croll Reynolds Co. Inc., New Jersy, U.S.A · Tarapore Enterprise

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4258000	Equity Shares	Rs.10/- each	Rs. 42.580 Millions

Reconciliation of the shares outstanding at the beginning and at the end of the year

	31.03.2012
	No. of Shares	Rs. in Millions
EQUITY SHARES
At the Beginning of the year	4258000	Rs. 42.580
Outstanding at the End of the year	4258000	Rs. 42.580

Details of shareholders holding more than 5% shares in the company

	31.03.2012
	No. of Shares	% of Holding in the class
Sorab R. Mody	955989	22.45
Shanaya Mody Khatua	425622	10.00
Croll Reynolds International Inc.	289500	6.80

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each equity shareholder is entitled to one vote per share. In the event of liquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

For current financial year, the Dividend proposed to be distributed to equity shareholders Rs. 4/- per share (previous year Rs. 3.50 per share as final dividend and Rs. 3.50 per shares as interim dividend). The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting and Company pays the same in Indian Rupees.

There are no shares allotted as fully paid up during the period of five years immediately preceding the reporting date i.e. 31/03/2012.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		42.580	42.580	42.580
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		616.219	536.137	381.949
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		658.799	578.717	424.529
LOAN FUNDS
1] Secured Loans		10.098	0.000	2.853
2] Unsecured Loans		1.500	1.500	1.500
TOTAL BORROWING		11.598	1.500	4.353
DEFERRED TAX LIABILITIES		14.510	16.090	17.552
TOTAL		684.907	596.307	446.434
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		125.614	122.895	132.347
Capital work-in-progress		65.658	31.845	13.270
Intangible Assets Under Development		1.470	1.470	0.000
INVESTMENT		138.332	183.386	45.748
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	195.540	144.682	150.041
	Sundry Debtors	234.998	170.910	147.188
	Cash & Bank Balances	25.265	42.766	30.185
	Other Current Assets	0.800	0.250	0.000
	Loans & Advances	101.765	59.330	201.243
Total Current Assets		558.368	417.938	528.657
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	125.347	103.817	76.193
	Other Current Liabilities	55.048	37.358	56.192
	Provisions	24.140	20.052	141.203
Total Current Liabilities		204.535	161.227	273.588
Net Current Assets		353.833	256.711	255.069
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		684.907	596.307	446.434

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1030.798	844.134	803.590
		Other Income	16.356	8.017	6.311
		TOTAL (A)	1047.154	852.151	809.901
Less	EXPENSES
		Cost of Raw Materials and Packing Materials Consumed	601.204	455.393	649.143
		Increase in Finished, Traded and Work-In-Progress Inventories	(32.861)	(4.870)
		Manufacturing Expenses	121.757	101.529
		Employee Benefits Expenses	93.627	80.838
		Administrative & General Expenses	48.429	43.211
		Selling & Marketing Expenses	49.234	49.718
		Exceptional Item - Sale of Valve Division	0.000	(137.883)
		Exceptional Item - Prior Period items	1.363	0.257
		TOTAL (B)	882.753	588.193	649.143
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		164.401	263.958	160.758
Less	FINANCIAL EXPENSES (D)		11.328	4.545	0.104
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		153.073	259.413	160.654
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.224	9.905	11.318
	PROFIT BEFORE TAX (E-F) (G)		142.849	249.508	149.336
Less	TAX (H)		42.972	60.507	53.241
	PROFIT AFTER TAX (G-H) (I)		99.877	189.001	96.095
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		449.533	315.346	241.704
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	20.000	10.000
		Interim Dividend	0.000	14.903	0.00
		Proposed Dividend	17.032	14.903	10.644
		Dividend Tax	2.763	5.008	1.809
	BALANCE CARRIED TO THE B/S		519.615	449.533	315.346
	EARNINGS IN FOREIGN CURRENCY
		Exports on FOB basis	214.172	222.325	174.704
		Equipment repairs income	0.205	0.660
	TOTAL EARNINGS		214.377	222.985	174.704
	IMPORTS
		Raw and Packing Materials	19.346	1.441	12.195
		Capital Goods	1.068	0.000	0.000
		Others	0.181	0.000	0.360
	TOTAL IMPORTS		20.595	1.441	12.555
	Earnings Per Share (Rs.)		23.46	44.39	22.47

QUARTERLY RESULTS

PARTICULARS	30.06.2012 Unaudited	30.09.2012 Unaudited
	1^st Quarter	2^nd Quarter
Net Sales	189.660	318.650
Total Expenditure	155.300	266.600
PBIDT (Excl OI)	34.360	52.050
Other Income	0.000	5.680
Operating Profit	34.360	57.730
Interest	2.420	0.830
Exceptional Items	0.000	0.000
PBDT	28.940	56.900
Depreciation	3.000	3.000
Profit Before Tax	28.940	53.900
Tax	9.400	17.500
Provision and contingencies	0.000	0.000
Profit After Tax	19.540	36.400
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	19.540	36.400

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	9.54	22.18	11.87
Net Profit Margin (PBT/Sales)	(%)	13.86	29.56	18.58
Return on Total Assets (PBT/Total Assets}	(%)	20.88	46.13	22.59
Return on Investment (ROI) (PBT/Net worth)		0.22	0.43	0.35
Debt Equity Ratio (Total Liability/Net worth)		0.33	0.28	0.65
Current Ratio (Current Asset/Current Liability)		2.73	2.59	1.93

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	Yes
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	No
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

OPERATIONS

For the year, the turnover of the Company was Rs. 1030.800 Millions against Rs. 844.100 Millions for the previous year showing an increase by 22%. During the year, the Company has achieved a milestone by crossing Rs. 1000.000 Millions mark in terms of turnover. The Profit before Tax for the year is Rs. 144.200 Millions as against Rs. 111.900 Millions for the previous year showing an increase by 28.89%. In spite of bad economic condition in India and overall global economy in bad shape, The company has achieved an increased turnover and profits compared to the previous year.

FINANCEANDACCOUNTS

During the year, the company has regularly paid the principal and interest to the term lender and there has been no default towards them. The company is at present using financial assistance in the form of working capital facilities from State Bank of India, Ahmedabad. The company has overall banking limits of Rs. 183.800 Millions to capture its fund requirements. At present, the company is not utilizing any of the funded limits except non-fund based limits related to bank guarantees and letter of credit as sanctioned by State Bank of India. As the company is sufficiently funded from the internal accruals and cash accrual from sale of valve division, the company has invested in short term market instruments like fixed maturity plans, mutual funds and debt funds.

MANAGEMENTDISCUSSIONANDANALYSIS

Industry Structure and Developments:

The Indian economy is estimated to have grown 6.5% in 2011-12 as against 8.4% in 2010-11. The Indian economy was impacted by global uncertainties and facing domestic problems like high inflation, low investments and delayed policy decisions. The average industrial engineering sector grows by 3.4% in the year under review. The future projections for the growth remains stable for engineering sector. The negative growth of heavy capital goods industry and slow down in capital projects will affect the performance of the engineering industry.

Engineering Business:

The year, has ended with a growth of 22% contrarily to expectations. The company has shown a much higher growth compared to the average engineering industry growth. This has been possible mainly due to execution of evaporation plants on turnkey basis. There has been a growth in the supply of surface condensers, feed water heaters, oil coolers and gland steel condensers also.

Food Business:

In this year, BCool has enhanced their product line to add high-end natural products to their existing products. With food flavouring essences continuing to be the largest part of BCool sales, the company have now added Natural extracts to our flavouring essence line. These are exported to several countries and are made entirely from natural extracts. This product development has led to the creation of new customers and is in line with the global shift away from synthetic to the natural and organic. Secondly, the company believes that sugar-free range has taken a strong footing and will achieve strong top line growth as a result of this. As has been the case in the past years, the company is adding new customers to the portfolio as a result of BCool being an established, recognised brand globally.

Segment-wise Performance:

The company has divided the business in two segments i.e. Engineering Division and Food Division.

The company's performance in the engineering sector has improved by way of increase in turnover and also in the profits.

The food business is growing which shows an increase in turnover by 60% and company has made profits of Rs. 6.300 Millions from the turnover of Rs. 67.400 Millions in the current financial year.

Outlook:

Drivers of the economy like power projects, other infrastructure development activities, industrial growth and favourable policy regulations will drive growth in this industry. The industry is expecting to come out from the bad economic conditions in the coming years, the company will be benefitted from its strong position in engineering products by way of providing quality products to its customers. Mazda Limited is well poised to exploit its internal strengths, carry out its ambitious expansion plans and focus its presence in the engineering sector.

In line with our goal to offer a total solution for Zero Liquid Discharge for effluent (especially for agro, pesticides, chemicals and dye industries), the company has launched highly efficient Agitated Thin Film Dryers (ATFDs) to be installed on the downstream of evaporator systems. The concept of Zero Liquid Discharge is catching on and the company expects good growth in this product line.

The company expects good growth in the next year in the evaporator business and a reasonable growth in the domestic vacuum business. However, in the export vacuum business, the company expects higher growth.

The company has started the production at its 4 Unit from 1 April, 2012. The fourth unit will provide additional capacity of 20% to25% for production.

FIXED ASSETS:

v Tangible Assets

· Buildings

· Plant and Machineries

· Furniture, Fixtures

· Vehicles

· Computers

· Office Equipment

· Patterns

· Electrical Installation

v Intangible Assets

· Computer software

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 s 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.54.91
UK Pound	1	Rs.87.38
Euro	1	Rs.70.24

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.