MIRA INFORM REPORT

Report Date :

16.10.2012

IDENTIFICATION DETAILS

Name :	MEGATHERM ELECTRONICS PRIVATE LIMITED
Registered Office :	123, SDF Building, Block GP, Sector V, Salt Lake City, Kolkata – 700091, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.06.1989
Com. Reg. No.:	21-47097
Capital Investment / Paid-up Capital :	Rs.19.920 Millions
CIN No.: [Company Identification No.]	U32109WB1989PTC047097
TAN No.: [Tax Deduction & Collection Account No.]	CALM02078G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Electric Induction Melting and Heating Equipments.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 620000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some dip in the turnover and profitability of the company; it is due to selling and distribution expenses for overseas project. However, networth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered can be considered normal for business dealing 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	CRISIL
Rating	A3+ (Letter of Credit)
Rating Explanation	Moderate degree of safety, it carry higher credit risk.
Date	19.01.2012
Rating Agency Name	CRISIL
Rating	BBB (Cash Credit)
Rating Explanation	Moderate degree of safety, it carry moderate credit risk.
Date	19.01.2012

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 :	123, SDF Building, Block GP, Sector V, Salt Lake City, Kolkata – 700091, West Bengal, India
Tel. No.:	91-33-23577352/ 7745/ 7854/ 6043/ 24014234/ 4235
Mobile No.:	91-9831188818 (Mr. Vikas)
Fax No.:	91-33-23377757/ 24013246
E-Mail :	megatherm@vsnl.com v.varshneya@megatherm.com sales@megatherm.com contact@megatherm-india.com tkbagchi@megatherm.com
Website :	www.megatherm-india.com
Area :	46000 sq. ft.
Location :	Owned
Factory 1 :	Plot L-1, Block GP, Sector V, Kolkata – 700091, West Bengal, India
Factory 2/ Branch Office :	1, Taratala Road, Kolkata – 700088, West Bengal, India
Tel No.:	91-33-24014234/ 4235
Fax No.:	91-33-24013246
E mail:	emt@megatherm.com
Area :	18000 Sq. ft
Located	Owned

DIRECTORS

(AS ON 30.09.2011)

Name :

Ms. Shesadri Bhushan Chanda

Designation :

Chairman Cum Managing Director

Address :

Udita 030402, 1050/ 1, Survey Park, Kolkata-700075, West Bengal India

Date of Birth/Age :

21.08.1956

Date of Appointment :

22.06.1989

Voter ID No.:

WB/23/150/527230

DIN No.:

00961593

Other Directorships :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
U32109WB1989PTC047097	Megatherm Electronics Private Limited	Managing director	22-06-89	22-06-89	Active	NO
U29299WB1988SGC044800	Emt Megatherm Private Limited	Managing director	24-10-05	24-10-05	Active	NO
U51101UP2009PTC038375	Ema Megatherm Induction Equipments Private Limited	Managing director	20-10-09	06-10-09	Active	NO
U31900WB2010PTC154236	Megatherm Transmission and Distribution Private Limited	Director	22-10-10	22-10-10	Active	NO

Name :

Mrs. Ayati Chanda

Designation :

Director

Address :

Udita 03-04-02, 1050/1, Survey Park, Kolkata – 700075, West Bengal, India

Date of Birth/Age :

06.03.1963

Date of Appointment :

01.11.2005

Voter ID No.:

WB/23/150/537231

DIN No.:

00962425

Other Directorships :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
U29299WB1988SGC044800	EMT Megatherm Private Limited	Director	24-10-05	24-10-05	Active	NO
U32109WB1989PTC047097	Megatherm Electronics Private Limited	Director	01-11-05	01-11-05	Active	NO
U31900WB2010PTC154236	Megatherm Transmission and Distribution Private Limited	Director	22-10-10	22-10-10	Active	NO

Name :

Mr. Satadri Chanda

Designation :

Director

Address :

Udita 03-04-02, 1050/1, Survey Park, Kolkata – 700075, West Bengal, India

Date of Birth/Age :

01.09.1989

Date of Appointment :

24.09.2008

DIN No.:

02302312

Other Directorships :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
U32109WB1989PTC047097	Megatherm Electronics Private Limited	Director	30-09-08	24-09-08	Active	NO
U31900WB2010PTC154236	Megatherm Transmission and Distribution Private Limited	Director	22-10-10	22-10-10	Active	NO

Name :

Mr. Aaditeya Datta

Designation :

Director

Address :

114, Netaji SC Bose Road, Jadavpur, Kolkata – 700040, West Bengal, India

Date of Birth/Age :

20.02.1973

Date of Appointment :

24.09.2008

PAN No.:

AGFPD8405K

DIN No.:

02322749

Other Directorships :

CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
U32109WB1989PTC047097	MEGATHERM ELECTRONICS PVT LTD	Director	30/09/2008	24/09/2008	Active	NO

Name :

Mr. Tapan Kumar Bagchi

Designation :

Additional director

Address :

185/7, Santoshpur Avenue, Kolkata - 700075, West Bengal, India

Date of Birth/ Age :

27.09.1951

Date of Appointment :

01.06.2011

PAN No.:

ACXPB8848E

DIN No.:

03550099

Other Directorships :

CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
U32109WB1989PTC047097	MEGATHERM ELECTRONICS PVT LTD	Director	30/09/2011	01/06/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Shesadri Bhushan Chanda	195350
Ayati Chanda	3850
Total	199200

(AS ON 09.03.2012)

Names of Allottees	No. of Shares Allotted
Shesadri Bhushan Chanda	20550
Ayati Chanda	400
Total	20950

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of all types of Furnance like Medium Furnances, Induction Melting Furnances and Melting Furnances.

Products :

Products Description	Item Code No.
Medium/ High Frequency Induction Furnace	84771000

GENERAL INFORMATION

No. of Employees :

300 (Approximately)

Bankers :

· United Bank of India

Old Court House Street, 11 Hemant Basu Sarani, Kolkata – 700001, West Bengal, India

· State Bank of India

Commercial Branch, 24, Park Street, Kolkata - 700016, West Bengal, India

· Axis Bank Limited

Credit Management Centre (CMC), 1, Shakespeare Sarani, AC Market, 3^rd Floor, Kolkata – 700071, West Bengal, India

· HDFC Bank

HDFC Bank House, Salt Lake Branch, Kolkata, West Bengal, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Bank Borrowing for Working Capital - Cash Credit Account SBI	--	1.018
Vehicle Loan from Banks/ Non Banking Financial Company (NBFC) – Bank	0.526	0.786
Total	0.526	1.804

Banking Relations :	--
Auditors :
Name :	Bhattacharjee Roy Chaudhari and Associates Chartered Accountant
Address :	36, Strand Road, First Floor, Room no. 13, Kolkata – 700001, West Bengal, India
PAN No.:	AACFB3225G
Subsidiary :	· EMT Mehatherm Private Limited, CIN No.:U29299WB1988SGC044800 · Megatherm Transmission and Distribution Private Limited, CIN No.:U31900WB2010PTC154236

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Capital	Rs.100/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2201500	Equity Capital	Rs.100/- each	Rs.22.015 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Capital	Rs.100/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
199200	Equity Capital	Rs.100/- each	Rs.19.920 Millions

NOTE:

Out of which 99,600 shares have been issued as bonus shares of Rs.100/- each.

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		19.920	19.920	9.960
2] Share Application Money		2.095	2.095	2.095
3] Reserves & Surplus		133.462	127.350	114.873
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		155.477	149.365	126.928
LOAN FUNDS
1] Secured Loans		0.526	1.804	66.661
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.526	1.804	66.661
DEFERRED TAX LIABILITIES		2.021	1.213	1.507
TOTAL		158.024	152.382	195.096
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.168	37.937	30.583
Capital work-in-progress		1.459	0.000	0.000
INVESTMENT		96.957	5.621	3.845
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	46.571	9.181	79.269
	Sundry Debtors	102.626	86.626	162.209
	Cash & Bank Balances	22.829	31.560	22.098
	Other Current Assets	4.993	6.203	4.455
	Loans & Advances	34.226	107.223	157.912
Total Current Assets		211.245	240.793	425.943
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	32.665	38.613	19.411
	Other Current Liabilities	138.745	83.354	191.252
	Provisions	2.760	10.002	54.612
Total Current Liabilities		174.170	131.969	265.275
Net Current Assets		37.075	108.824	160.668
MISCELLANEOUS EXPENSES		4.365	0.000	0.000
TOTAL		158.024	152.382	195.096

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	629.602	996.100	1249.803
		Other Income		0.081
		TOTAL	629.602	996.181	1249.803
Less	EXPENSES
		TOTAL	615.343	955.627	1220.613
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		14.259	40.554	29.190
Less/ Add	DEPRECIATION/ AMORTISATION		4.140	6.800	8.485
	PROFIT BEFORE TAX		10.119	33.754	20.705
Less	TAX		4.007	11.316	5.837
	PROFIT AFTER TAX		6.112	22.438	14.868
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	510.724	339.668	309.055
	TOTAL EARNINGS		510.724	339.668	309.055
	IMPORTS
		Raw Materials	32.722	4.062	56.765
	TOTAL IMPORTS		32.722	4.062	56.765
	Earnings Per Share (Rs.)		306.83	0.23	149.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.97	2.25	1.19
Net Profit Margin (PBT/Sales)	(%)	NA	3.39	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.41	12.11	4.54
Return on Investment (ROI) (PBT/Networth)		0.07	0.23	0.16
Debt Equity Ratio (Total Liability/Networth)		1.12	0.90	2.62
Current Ratio (Current Asset/Current Liability)		1.21	1.84	1.61

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

BUSINESS PERFORMANCE

The company has experienced many adversaries in term of cut throat competitions in the market place, high material intensive projects and low margin orders. Combination of these factors have resulted in reduction of net revenue by Rs.375.986 Millions compared to last financial year. The dip in profit has been primarily due to selling and distribution expenses for overseas projects.

Export revenue on the other have improved substantially over the last financial year by Rs.171.056 Millions and constitutes approximately 82% of the total revenue. The company continues to maintain its presence on projects constituting 3 overseas and 3 domestic projects.

BUSINESS PROJECTS

In the current financial year, company is facing strong challenge in term of procuring steady and high margin order-and the4 management is determined and confident to turn around in the second half of the fiscal year and expected to progress satisfactorily.

INDUSTRY STRUCTURE AND DEVELOPMENT

Despite the global slowdown, the Indian economy expanded by 8.3% during 2010-11 as against 7.4% during 2009-10 which was primarily due to Government's stimulus package. The manufacturing sector and capital goods industry made a significant contribution to the growth of the economy. However, the world economy is currently emerging from the clutches of a wide spread slowdown, triggered by the excesses in the global financial market. While the developed economies are recovering slowly, aided by the liberal stimulus packages, they are grapping with many challenges such as high unemployment, weak and volatile financial markets and impending trade barriers.

In the Indian context, negative signs are visible. Along with the current global challenges, the Indian economy also need to contend with the rising spectra of inflation and tight monetary conditions. There is a need for a second green revolution in the agricultural sector, a otherwise the rising food prices may continue to dominate inflationary conditions. Needless to add, higher economic growth would also require a significant addition to infrastructure as well as increase in across the board productivity levels.

The challenge as they know are many, yet, the Indian economy has inherent strengths to rise above these challenge and move towards accelerated growth in the medium to long term.

OUTLOOK

The company has registered presence in various countries of the world and continues to look forward for healthy business growth. It has earned a high reputation for itself and therefore multiple opportunities keep coming for its consideration. The company has undertaken new ventures like production of transformers in its new plant at Kharagpur and off-loading of MS/SS Assembly section to Ankurhati plant at Howrah.

CONTINGENT LIABILITY IN RESPECT OF:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Guarantees given by Banks	33.014	32.546
Letter of Credit given by Banks	0.266	19.729
Claims against the company not acknowledge as debts in respect of – Excise duty matters	2.000	2.000

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U32109WB1989PTC047097
Name of the company	MEGATHERM ELECTRONICS PVT LTD
Address of the registered office or of the principal place of business in India of the company	123 SDF Building, Block GP, Sector V, Salt Lake City, Kolkata – 700091, West Bengal, India megatherm@vsnl.com
Type of charge	Immovable Property
Particular of charge holder	United Bank of India Old Court House Street, 11, Hemant Basu Sarani, Kolkata – 700001, West Bengal, India bankservices.3005@yahoo.in
Nature of description of the instrument creating or modifying the charge	1) Demand Promissory Note 2) Letter of Continuity 3) Letter of Lien 4) Hypothecation Agreement(Goods, Book Debts, Plant and Machineries 5) Agreement for Assignment of Rent 6) Agreement for Term Loan against future rent receivables 7) Agreement of Term Loan 8) Letter of Guarantee 9) Form of Negative Lien
Date of instrument Creating the charge	22.02.2012
Amount secured by the charge	Rs.150.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest BR+3.25% i.e. 13.50% p.a. with monthly rests. However rate of interest is subject to change from time to time in terms of directives of RBI/IBA/H.O Terms of Repayment Rs.25Lacs per qtr. for 1st 6 qtrs starting after 6 months from 1st disbursement and then Rs.6.750 Millions per qtr in next 20 qtrs. Margin 39.98% of the project cost of Rs.249.900 Millions.
Short particulars of the property charged	1) Exclusive charge by way of equitable mortgage of land measuring 0.84 acre at Salt Lake Sector V, and G+11, building to be constructed thereon at an estimated cost of Rs.249.900 Millions. 2) Agreement for assignment of future rental income from the proposed office building. Personal guarantee of Mr. S.B. Chanda

FIXED ASSETS:

· Land – Leasehold

· Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Office Equipment

· Computers

· Vehicles

· Tools and Equipment

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.52.70
UK Pound	1	Rs.84.51
Euro	1	Rs.68.16

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		45

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.