MIRA INFORM REPORT

Report Date :

02.10.2012

IDENTIFICATION DETAILS

Name :	TOLANI SHIPPING COMPANY LIMITED
Registered Office :	10-A, Bakhtawar, Nariman Point, Mumbai - 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.01.1974
Com. Reg. No.:	11-017161
Capital Investment / Paid-up Capital :	Rs.236.520 Millions
CIN No.: [Company Identification No.]	U61100MH1974PLC017161
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Providing Shipping Services.
No. of Employees :	Information denied by the management

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 49700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a established company having good track. Financially company performance seems excellent. The current year financial is missing from government department. However, previous years record seems excellent. 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 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.

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

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 DENIED

Management non Co-operative

LOCATIONS

Registered Office :	10-A, Bakhtawar, Nariman Point, Mumbai - 400021, Maharashtra, India
Tel. No.:	91-22-22926878/ 22026878/ 66568989
Fax No.:	91-22-22870697/ 22870697
E-Mail :	seta@tolanigroup.com

DIRECTORS

As on: 24.08.2012

Name :	Mr. Nandlal Pribhdas Tolani
Designation :	Managing Director
Address :	1100, Prabhu Kutir, 15, Altamount Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	15.02.1924
Qualification :	PH.D (Agricultural) , M.S.(Agricultural Economics)
PAN No.:	AAAPT9316N
Date of Appointment :	19.11.2009
DIN No.:	00006475
Name :	Mr. Rohet Nandlal Tolani
Designation :	Director
Address :	55, Ridout Road, Singapore, 248449
Date of Birth/Age :	19.12.1953
Qualification :	Graduate in Electrical Engineering, MBA
Date of Appointment :	06.04.1978
DIN No.:	00006313
Name :	Ms. Sujata Arun Naik
Designation :	Director
Address :	4, Dalia Court, East Hanover, New Jersey-007936, United States of America
Date of Birth/Age :	16.10.1961
Qualification :	M S (Otolaryngology)
Date of Appointment :	01.09.2009
DIN No.:	00009393
Name :	Mr. Naresh Chand Singhal
Designation :	Director
Address :	D 107, Poornima, 23, Pedder Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	10.08.1936
Qualification :	Master In Economics, Statistics and Public Administration
Date of Appointment :	18.09.2003
DIN No.:	00004916
Name :	Mr. Michael Philip Pinto
Designation :	Director
Address :	405, Shalaka, Maharshi Karve Road, Mumbai-400021, Maharashtra, India
Date of Birth/Age :	27.05.1943
Qualification :	Master in Sociology and Public Administration
Date of Appointment :	17.07.2009
DIN No.:	00021565
Name :	Mr. Tahil Jagatra Reejhsinghani
Designation :	Director
Address :	603, Prabhu Kunj, Pedder Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	28.08.1920
Qualification :	Engineering Graduate
Date of Appointment :	30.04.1982
DIN No.:	00006426
Name :	Mr. Manohar Prahlad Awati
Designation :	Director
Address :	Pavan Vinchurni, P.O Nirguti, Phaltan, Satara-415523, Maharashtra, India
Date of Birth/Age :	07.09.1927
Qualification :	Attended Defence Service Staff College, Welington, Nilgiri and Royal College of Defence Studies, London
Date of Appointment :	04.11.1986
DIN No.:	00007383
Name :	Mr. Rammurthi Kumar
Designation :	Managing Director
Address :	A-303, Cascade Vasant Oscar, LBS Marg, Mulund (West), Mumbai-400080, Maharashtra, India
Date of Birth/Age :	17.01.1965
Qualification :	B.COM, ACS, ACWA
PAN No.:	AACPR7788Q
Date of Appointment :	26.09.2007
DIN No.:	00007415
Name :	Mr. Seshadri Venkatachalam
Designation :	Whole Time Director
Address :	174, Govinda Bulding, Jawaharnagar, Road No. 2, Goregaon (West), Mumbai-400062, Maharashtra, India
Date of Birth/Age :	17.09.1957
Qualification :	M.COM, LLB, ACS
PAN No.:	AAQPS7156K
Date of Appointment :	28.09.2007
DIN No.:	01815517
Name :	Mr. Virendra Gharat
Designation :	Whole Time Director
Address :	D-1101, Sarovar Darshan Tower, CHS, Almeida Road, Panchpakhadi, Thane-400602, Maharashtra, India
Date of Birth/Age :	07.06.1955
Qualification :	BE (Mechanical), Class I Marine Engineer
PAN No.:	AKJPG8693A
Date of Appointment :	28.09.2007
DIN No.:	01815581
Name :	Mr. Chunduri Venkata Veerabhadra Rao
Designation :	Director
Address :	502, Empress Court, 184, Sher-E-Punjab Society, Andheri (East), Mumbai-400093, Maharashtra, India
Date of Birth/Age :	01.07.1958
Qualification :	Chartered Engineer and Class I Marine Engineer
PAN No.:	AABPC6750G
Date of Appointment :	28.09.2007
DIN No.:	01815475

KEY EXECUTIVES

Name :	Ms. Seeta Venkatraman Iyer
Designation :	Secretary
Address :	H-1203, Mayuresh Park, Lake Road, Bhandup West, Mumbai-400078, Maharashtra, India
Date of Birth/Age :	01.04.1977
Date of Appointment :	26.09.2007
PAN No.:	AJTPM5628G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 24.08.2012

Names of Shareholders	No. of Shares
Nandlal Pribhdas Tolani	16987886
Nandlal Pribhdas Tolani HUF	941218
Papu Nandlal Tolani	1109597
Sujata Arun Naik	2474788
Sujata Arun Naik	2138500
Mihikaa Arun Naik	5
Tolani Private Limited, India	1
Arun Chandrakant Naik	5
Total	23652000

As on: 27.06.2012

Names of Allotees	No. of Preference Shares
Nandlal Pribhdas Tolani	200000
Total	200000

Equity Share Break up (Percentage of Total Equity)

As on: 24.08.2012

Category	Percentage
Bodies corporate	0.01
Directors or relatives of directors	99.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Shipping Services.

Products :

Product Description	ITC Code
Bulk Carriers	890190.01

GENERAL INFORMATION

No. of Employees :

Information denied by the management

Bankers :

HSH Nordbank AG, 3 Temasek Avenue, #33-00 Centennial Tower, Singapore - 039190

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Foreign currency loans banks secured	5338.300	6288.386
Total	5338.300	6288.386
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	16.950	21.550
Other debt unsecured	84.484	71.909
Total	101.434	93.459

Note:

(Secured by mortgage of ships)

Banking Relations :	--
Auditors :
Name :	Chandabhoy and Jasoobhoy Chartered Accountants
Address :	208, Phoenix House, 'A' Wing, 2nd Floor, 462 Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
PAN No.:	AAAFC5274C
Subsidiary Companies :	Tolani Bulk Carriers Limited CIN No.: U60300MH1991PLC062375 Top Investments and Finance Private Limited CIN No.: U65990MH1976PTC019386
Associate Companies/Enterprises/Trust :	Tolani Private Limited Tolani Shipping (Singapore ) Pte Limited Puni Gopal Shipping Pte. Limited Parvati Shipping Pte. Limited Tolani Engineers Private Limited Tolani Education Foundation Nandlal Tolani Charitable Trust

CAPITAL STRUCTURE

After: 24.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions
500000	Preference Shares	Rs.500/- each	Rs.250.000 Millions
	Total		Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23652000	Equity Shares	Rs.10/- each	Rs.236.520 Millions
200000	Preference Shares	Rs.500/- each	Rs.100.000 Millions
	Total		Rs.336.520 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions
500000	Preferences Shares	Rs.500/- each	Rs.250.000 Millions
	Total		Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23652000	Equity Shares	Rs.10/- each	Rs.236.520 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		236.520	236.520	236.520
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12201.298	11368.243	10867.079
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12437.818	11604.763	11103.599
LOAN FUNDS
1] Secured Loans		5338.300	6288.386	6858.887
2] Unsecured Loans		101.434	93.459	53.184
TOTAL BORROWING		5439.734	6381.845	6912.071
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		17877.552	17986.608	18015.670
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14399.080	15279.215	15225.112
Capital work-in-progress		1832.284	39.684	17.845
INVESTMENT		1453.446	2436.955	2555.087
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.145	77.771	19.300
	Sundry Debtors	118.426	35.470	158.724
	Cash & Bank Balances	2.433	2.177	2.315
	Other Current Assets	139.876	71.217	0.376
	Loans & Advances	174.767	334.292	356.649
Total Current Assets		458.647	520.927	537.364
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.298	152.372	167.731
	Other Current Liabilities	99.780	65.577	5.651
	Provisions	161.827	72.224	146.356
Total Current Liabilities		265.905	290.173	319.738
Net Current Assets		192.742	230.754	217.626
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		17877.552	17986.608	18015.670

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2700.178	1953.271	4356.677
		Other Income	177.324	197.888	30.122
		TOTAL (A)	2877.502	2151.159	4386.799
Less	EXPENSES
		Manufacturing service costs	381.044	230.696
		Employee related expenses	336.197	272.068
		Administrative selling other expenses	256.257	174.583
		Prior period items	0.000	0.253
		TOTAL (B)	973.498	677.600	1592.059
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1904.004	1474.599	2794.740
Less	FINANCIAL EXPENSES (D)		101.323	95.594	219.850
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1802.681	1378.965	2574.890
Less/ Add	DEPRECIATION/ AMORTISATION (F)		862.907	791.434	715.014
	PROFIT BEFORE TAX (E-F) (G)		939.774	587.531	1859.876
Less	TAX (H)		37.997	17.417	46.527
	PROFIT AFTER TAX (G-H) (I)		901.777	570.114	1813.349
Less/ Add	INCOME TAX OF EARLIER YEARS		(17.400)	0.684	0.013
	DEPRECIATION OF EARLIER YEARS		0.000	0.000	9.659
Less/ Add	TRANSFER TO TONNAGE TAX RESERVE UNDER SECTION 115VT OF THE INCOME TAX ACT 1961		(160.000)	(80.000)	406.000
Less/ Add	TRANSFER FROM TONNAGE TAX RESERVE (UTILISES)		0.000	0.000	830.600
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9257.777	8893.713	6966.850
	APPROPRIATIONS
		Transfer to General Reserve	92.000	57.100	182.400
		Dividend	59.130	59.130	118.260
		Tax on Dividend	9.600	9.821	20.098
	BALANCE CARRIED TO THE B/S		9838.832	9257.777	8893.713
	Earnings Per Share (Rs.)		38.86	24.09	76.67

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	31.34	26.50	41.34
Net Profit Margin (PBT/Sales)	(%)	14.58	30.08	42.69
Return on Total Assets (PBT/Total Assets}	(%)	6.33	3.72	11.80
Return on Investment (ROI) (PBT/Networth)		0.08	0.05	0.17
Debt Equity Ratio (Total Liability/Networth)		0.46	0.57	0.65
Current Ratio (Current Asset/Current Liability)		1.72	1.80

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

(Rs. in millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	4.298	152.372	167.731
Total	4.298	152.372	167.731

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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS AND FUTURE OUTLOOK :

During the year, the Companys income from operations stood at Rs.2700.180 millions compared to Rs. 1,953.27 million of the previous year. Net Profit after tax was Rs.919.18 million against Rs. 569.680 millions of the previous year. The addition of one bulk carrier to the Companys fleet acquired in the last quarter of the financial year 2009-2010 and improved freight receipts contributed to enhanced operating revenues. Viewed in the context of volatile freight market conditions, this is a significant achievement and reflects the Companys ability to withstand and perform in a challenging environment.

Consistent with its focus on larger ships with increased carrying capacity, the Company contracted to purchase three modern bulk carriers of 81,000 dwt each from a reputed Shipyard in Korea. The first two vessels are scheduled to be delivered in the second half of 2011 with the third vessel in first half of 2012. The new buildings will be financed to the extent of 60% of the contract price. The Companys financial discipline and fiscal prudence is reflected in the attractive margins at which the banks have agreed to finance the acquisitions.

The Company takes pride in its highly motivated and competent human resources who have contributed their best to bring the Company to its present heights. The Company realizes that skill upgradation through continuous training is imperative for higher productivity. The need for trained professionals with inter-disciplinary skills is imperative for sustainability and growth. In this regard, the Company has the privilege of working closely with the Tolani Maritime Institute for training its personnels to enhance their abilities for facing increasing challenges at sea.

Looking to the future, the Company with its sound financial strength, dedicated personnels and proven business strategy is poised for better times.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U61100MH1974PLC017161
Name of the company	TOLANI SHIPPING COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	10-A, Bakhtawar, Nariman Point, Mumbai - 400021, Maharashtra, India E-mail: seeta@tolanigroup.com
This form is for	Creation of charge
Type of charge	Others (Assignment of Earnings, Insurance of Ship.) Ship
Particular of charge holder	HSH Nordbank AG, 3 Temasek Avenue, #33-00 Centennial Tower, Singapore – 039190 E-mail: cheekeong.wong@hsh nordbank.com.sg
Nature of instrument creating charge	1. Deed of Covenant 2. Assignment of Earnings 3. Assignment of Insurances
Date of instrument Creating the charge	31.05.2012
Amount secured by the charge	Rs.1414.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest LIBOR plus 2.50% margin per annum. Terms of Repayment Borrower to repay the loan in 28 consecutive quarterly installments with such installments being payable on the repayment dates as specified in the Facility Agreement dated 9.12.2011 and a balloon payment as stated in the Facility Agreement being payable on the final repayment dates as specified in the Facility Agreement. Margin 2.50% per annum. Extent and Operation of the charge For securing the term loan from HSH Nordbank AG., Singapore Branch of US$ 25,450,000 equivalent to Rs. 1414.600 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First priority charge of all ten shares of M.V. Prabhu Sumat bearing official no. 3772 including her boats and appurtenances. Gross Tonnage 44,232. First priority Assignment of Earnings of M.V .Prabhu Sumat. First priority Assignment of Insurances of M.V. Prabhu Sumat

Fixed Assets:

• Building
• Fleet
• Office Equipment
• Furniture and Fixtures
• Vehicles

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.52.78
UK Pound	1	Rs.85.16
Euro	1	Rs.67.79

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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.