MIRA INFORM REPORT

Report Date :

10.10.2012

IDENTIFICATION DETAILS

Name :	KUNDAN INDUSTRIES LIMITED
Registered Office :	"Kundan House", Harisiddhi Industrial Estate, Gorai Pada, Vasai (East), Thane, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.09.1995
Com. Reg. No.:	092326
Capital Investment / Paid-up Capital :	Rs. 40.000 millions
CIN No.: [Company Identification No.]	U28900MH1995PLC092326
TAN No.: [Tax Deduction & Collection Account No.]	MUMK11922B / PNEK05671B
PAN No.: [Permanent Account No.]	AAACK6811G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stainless Steel and Fasteners.
No. of Employees :	Not Avialable

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 1216000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. It has achieved some growth in its sales and profits during 2011. However, the company has huge external borrowings which can be a threat to the company’s liquidity. However, trade relations are reported as fair. Business is active. Payments are reported to be usually 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	A4 (Short term Bank Facilities)
Rating Explanation	Minimal degree of safety and higher credit risk
Date	9.10.2012

Rating Agency Name	CARE
Rating	BB+ (Long term Bank Facilities)
Rating Explanation	Moderate risk of default
Date	9.10.2012

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: Factory :	Kundan House”, Harisiddhi Industrial Estate, Gorai Pada, Vasai (East), District Thane – 401208, Maharashtra, India
Tel. No.:	91-250-2455394 / 95 / 96 / 97 / 98
Mobile No.:	91-9322361888 (Mr. Shiv Kumar)
Fax No.:	91-250-2455830
E-Mail :	kndanaccounts@yahoo.co.in accounts@kundan.com accounts@kundan.in
Website :	www.kundan.com
Corporate Office :	Plot No.291, Kundan House, Dattapada Road, Above HDFC Bank, Borivali (East), Mumbai-400066, Maharashtra, India
Tel. No.:	91-22-61521234-349/23400551/23400911/23414249/2455394/8
Fax No.:	91-22-23447360/28820162/61521359
Marketing Office :	252,Yusuf Meharali Road, 2^nd Floor, Mahesh Niwas Mumbai-400 003 (India)
Tel. No.:	91-22-23400551 / 23414249 / 23400911
Fax No.:	91-22-28820162 / 23447360
E-Mail :	fasteners@kundan.com
Branch Offices :	Located at: · No. 459, 6^th Road, Vivek Nagar, Bangalore-560047, Karnataka, India · 29, Sarat Bose Road, Kolkata - 700020, West Bengal, India · Mumbai · Delhi

DIRECTORS

As on 30.09.2011

Name :

Bharatbhushan Kishorilal Gupta

Designation :

Managing director

Address :

25-B Manali Building No4, Evershine Nagar, Malad (West), Mumbai- 400064, Maharashtra, India

Date of Birth/Age :

01.01.1950

Date of Appointment :

04.09.2006

DIN No.:

00373046

Name :

Ripudaman Kishorilal Gupta

Designation :

Director

Address :

51/52- Manali Building No 1/B, Evershine Nagar, Malad (W), Mumbai- 400064, Maharashtra, India

Date of Birth/Age :

01.01.1960

Date of Appointment :

04.09.1995

DIN No.:

01063163

Name :

Krishan Kumar Kishorilal Gupta

Designation :

Director

Address :

A/ 1403 Vastu Tower, Evershine Nagar, Malad (West), Mumbai- 400064, Maharashtra, India

Date of Birth/Age :

18.08.1963

Date of Appointment :

04.09.1995

DIN No.:

00373413

Name :

Mukesh Kumar Gupta

Designation :

Director

Address :

73-74 Manali Buiding No 5 Evershine Nagar, Malad (W), Mumbai- 400064, Maharashtra, India

Date of Birth/Age :

11.07.1965

Date of Appointment :

04.09.1995

DIN No.:

00372861

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	U28900MH1995PLC092326	KUNDAN INDUSTRIES LIMITED	Director	04/09/1995	04/09/1995	-	Active	NO
2	U24100MH2008PTC182345	K K CHEMPRO (INDIA) PRIVATE LIMITED	Director	17/05/2008	17/05/2008	-	Active	NO
3	U18201MH2007PTC174559	INSAI FASHIONS PRIVATE LIMITED	Director	05/07/2011	05/07/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Bharat Bhushan Kishorilal Gupta	350000
Ripudaman Kishorilal Gupta	350000
Krishankumar Kishorilal Gupta	350000
Mukeshkumar Kishorilal Gupta	350000
Manjula Bharat Bhushan Gupta	350000
Sudha Ripudaman Gupta	350000
Jyoti Krishankumar Gupta	350000
Vijaya Mukeshkumar Gupta	350000
Kishorilal Roshanlal Gupta	80000
Bharat Bhushan Kishorilal Gupta (HUF)	252000
Ripudaman Kishorilal Gupta (HUF)	252000
Krishankumar Kishorilal Gupta (HUF)	252000
Mukeshkumar Kishorilal Gupta (HUF)	252000
Nisha Kedar Palekar	56000
Mohan Kishor Sabnis	56000
Total	4000000

LIST ALLOTTEES AS ON 01.09.2012

Names of Shareholders	No. of Shares
Mr. Shailesh S Shah Jointly with Mr. Pankaj Sitaram	750000
Ms Kajal Shailesh Shah	500000
Mrs Kantaben Sitaram Shah	300000
Mrs. Mandakini Shailesh Shah	100000
Mr. Pankaj Sitaram Shah Jointly with Mrs. Mandakini Shailesh Shah, and Pankaj Sitaram Shah HUF, and Mr. Darshit Pankaj Shah	500000
Mr. Pankaj Sitaram Shah	100000
Mr. Shailesh S Shah, Jointly with Mrs. Rita Pankaj Shah and Shailesh S Shah HUF	500000
Mrs. Rita Pankaj Shah	50000
Mr. Sitaram Chunilal Shah	300000
Sitaram Chunilal Shah HUF	100000
Mr. Bhavik Shailesh Shah	150000
Mr. Darshit Pankaj Shah	150000
M/s. S. Sitaram Exim Private Limited, India	1500000
Total	5000000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	97.20
Other top fifty shareholders	2.80
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Stainless Steel and Fasteners.
Products :	Stainless Steel and Fasteners Nut-Bolts Screws Washers Studs Hex Bolts Special Carbon Fasteners

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Indusind Bank Limited, Acme Plaza, CTS No.32, Opposite Sangam Talkies, Andheri-Kurla Road, Andheri (East), Mumbai - 400059, Maharashtra, India

• Bank of Baroda, Mount Poinsur Branch, I C Colony, Church Compound, Borivali (West), Mumabi 400103, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	143.213	136.614
Rupee term loans financial institutions secured	103.804	89.048
Rupee term loans others secured	362.564	323.051
Total	609.581	548.713
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Working capital loans others unsecured	20.453	138.025
Total	20.453	138.025

Banking Relations :	--
Auditors :
Name :	Naresh Sharma and Company Chartered Accountants
Address :	42, Manali Building No 5, Evershine Nagar, Malad (West),Mumbai, Maharashtra, India
PAN No.:	AAJPS2317M

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

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

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs.90.000 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		40.000	40.000	40.000
2] Share Application Money		23.000	0.000	0.000
3] Reserves & Surplus		241.015	201.983	174.055
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		304.015	241.983	214.055
LOAN FUNDS
1] Secured Loans		609.581	548.713	486.044
2] Unsecured Loans		20.453	138.025	58.758
TOTAL BORROWING		630.034	686.738	544.802
DEFERRED TAX LIABILITIES		13.076	9.002	6.337
TOTAL		947.125	937.722	765.194
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		311.310	270.330	263.527
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.247	5.248	6.248
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	583.425	436.958	421.593
	Sundry Debtors	283.695	277.301	132.124
	Cash & Bank Balances	93.032	34.423	40.045
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	168.938	205.293	177.647
Total Current Assets		1129.090	953.975	771.409
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	351.554	255.826	230.372
	Current Liabilities	103.228	11.189	7.211
	Provisions	43.740	25.000	38.604
Total Current Liabilities		498.522	292.015	276.187
Net Current Assets		630.568	661.960	495.222
MISCELLANEOUS EXPENSES		0.000	0.184	0.197
TOTAL		947.125	937.722	765.194

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1080.095	894.479	883.039
		Other Income	33.379	47.335	46.759
		TOTAL (A)	1113.474	941.814	929.798
Less	EXPENSES
		Consumption materials changes inventories	749.881	655.095	814.859
		Manufacturing service costs	18.656	17.310
		Contract cost	0.294	0.365
		Employee related expenses	58.009	50.181
		Administrative selling other expenses	101.823	78.557
		TOTAL (B)	928.663	801.508	814.859
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		184.811	140.306	114.939
Less	FINANCIAL EXPENSES (D)		103.878	77.999	81.010
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		80.933	62.307	33.929
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.502	14.425	11.036
	PROFIT BEFORE TAX (E-F) (G)		63.431	47.882	22.893
Less	TAX (I)		22.399	17.165	11.544
	PROFIT AFTER TAX (G-I) (J)		41.032	30.717	11.349
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	118.405	290.453	377.118
	IMPORTS
		Raw Materials		0.000	109.893
		Stores & Spares		4.059	10.971
	TOTAL IMPORTS		NA	4.059	120.864
	Earnings Per Share (Rs.)		10.26	7.67	2.83

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.69	3.26	1.22
Net Profit Margin (PBT/Sales)	(%)	5.87	5.35	2.59
Return on Total Assets (PBT/Total Assets}	(%)	4.40	3.91	2.21
Return on Investment (ROI) (PBT/Networth)		0.21	0.20	0.11
Debt Equity Ratio (Total Liability/Networth)		3.71	4.04	3.84
Current Ratio (Current Asset/Current Liability)		2.26	3.27	2.79

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	No
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

DISCLOSURE OF CONTINGENT LIABILITIES AND PROVISIONS

(Rs. in Millions)

Contingent Liabilities	31.03.2011	31.03.2010
1 LC issued through Bank of Baroda LC issued through State Bank of India	0.000 119.958	0.000 89.772
2 Claims against the company not acknowledged as debts.
3 Guarantee\s given by the Company s bankers Bank of Baroda State Bank Of India The Karnataka Bank Limited	1.900 0.812 0.060	0.000 0.884 0.060
4(i) Excise Department has raised a demand of Rs. 2.200 Millions on the Company in case of flood claim of June 2002. The Company has paid a sum of Rs.0.500 Millions as deposit against this claim
ii) Excise Department has raised claim of Rs. 1.050 Millions in case of flood claim in the year July 2005.
(iii) Excise Department has raised a demand of Rs. 6.400 Millions on 24.06.2008 and the appeal against the same in pending.
. iv) Excise department has raised demand of Rs. 0.750 Million.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28900MH1995PLC092326
Name of the company	KUNDAN INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Kundan House”, Harisiddhi Industrial Estate, Gorai Pada, Vasai (East), District Thane – 401208, Maharashtra, India Email: accounts@kundan.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10314641
Type of charge	Immovable property
Particular of charge holder	Indusind Bank Limited, Acme Plaza, CTS No.32, Opposite Sangam Talkies, Andheri-Kurla Road, Andheri (East), Mumbai - 400059, Maharashtra, India Email: vlaxman@vsnl.com
Nature of instrument creating charge	Memorandum of Entry for Deposit of title deeds.
Date of instrument Creating the charge	29.08.2012
Amount secured by the charge	Rs.143.142 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest as may be stipulated by the bank from time to time. Terms of Repayment Loan shall be repayable in suitable instalments. Margin As may be stipulated by Bank from time to time. Extent and Operation of the charge The Company created an equitable mortgage by way of deposit of title deeds in respect of its immovable properties as described under item No.15 as security for the due repayment of Rs.143.142 Millions (Comprising : TL of Rs.117.767 Millions, LRD of Rs.12.175 Millions, LER on IRS of Rs.13.200 Millions), together with all costs, commission, interest and expenses and Other charges.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All that pieces and parcels of Land bearing CTS No.291-A (Old CTS No.TP/LO-5060, Admg.328 s.mtrs, together with building consisting of Ground and 7 upper floors, Village-Kanheri, Taluka Borivali, MSD, together with the buildings and structures constructed to/to be constructed thereon and all the fixed plant, machinery fixture and fittings annexed thereto.
Date of instrument modifying the charge	29.08.2012
Particulars of the present modification	In addition to the existing securities of Lease property of the company, the Company has also created mortgage on immovable property being lying and situated at CTS No.291-A (Old CTS No.TP/LO-5060, Admg.328 s.mtrs, together with building consisting of Ground and 7 upper floors, Village-Kanheri, Taluka Borivali as security for repayment of monies due and payable under the facility of Rs.143.142 Millions, granted by the Bank to the Company.

FIXED ASSETS:

· Land

· Factory Building

· Office Building

· Plant and Machinery

· Furniture and Fixture

· Electrical Fittings

· Office Equipments

· Vehicles

· Computers

· Residential Flats

· Live Stock

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 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.52.38
UK Pound	1	Rs.84.00
Euro	1	Rs.67.99

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		35

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.