MIRA INFORM REPORT

Report Date :

16.10.2012

IDENTIFICATION DETAILS

Name :	NIRMAL WIRES PRIVATE LIMITED
Registered Office :	76 – Cotton Street, Kolkata – 700 007, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.10.1981
Com. Reg. No.:	21-034204
Capital Investment / Paid-up Capital :	Rs. 20.447 millions
CIN No.: [Company Identification No.]	U28909WB1981PTC034204
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Galvanised Iron Wire and its Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 745000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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.

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

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 :	76 – Cotton Street, Kolkata – 700 007, West Bengal, India
Tel. No.:	91-33-22698863/22689172
Fax No.:	91-33-22692466
E-Mail :	niramal@niramlwires.com ymaheswari@groupnirmal.com
Website :	www.groupnirmal.com

DIRECTORS

As on 05.09.2011

Name :

Mr. Nirmal Kumar Saraf

Designation :

Managing Director

Address :

76 – Cotton Street, Kolkata – 700 007, West Bengal, India

Date of Birth/Age :

26.01.1959

Date of Appointment :

19.10.1981

DIN No.:

00148591

Voter ID No.:

DKN2825792

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	U28909WB1981PTC034204	NIRMAL WIRES PVT LTD	Managing director	19/10/1981	19/10/1981	-	Active	NO
2	U51109WB1996PTC081845	INTERCON IMPEX PRIVATE LIMITED	Director	29/10/2001	29/10/2001	-	Active	NO
3	U40101WB2005PLC101107	ENDLESS ENERGY LIMITED	Director	12/01/2005	12/01/2005	-	Active	NO
4	U51109WB1988PTC044339	GAJENDRA MERCANTILES PVT LTD	Director	17/01/2012	17/01/2012	-	Active	NO

Name :

Mr. Ramutar Saraf

Designation :

Director

Address :

76 – Cotton Street, Kolkata – 700 007, West Bengal, India

Date of Birth/Age :

02.11.1938

Date of Appointment :

19.10.1981

DIN No.:

00621060

Voter ID No.:

DKN2826824

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	U67120WB1942PTC010994	CENTRAL STORES SUPPLIES PVT LTD	Director	14/10/1970	14/10/1970	-	Active	NO
2	U28909WB1981PTC034204	NIRMAL WIRES PVT LTD	Director	19/10/1981	19/10/1981	-	Active	NO
3	U27100WB2008PTC124814	SHRI AMBIKA METALIKS PRIVATE LIMITED	Director	08/04/2008	08/04/2008	-	Active	NO

Name :

Ms. Radha Raman Saraf

Designation :

Director

Address :

76 – Cotton Street, Kolkata – 700 007, West Bengal, India

Date of Birth/Age :

20.09.1963

Date of Appointment :

03.04.2010

DIN No.:

00621121

Voter ID No.:

DKN2825784

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	U31300WB1991PTC052378	PRATEEK WIRES PVT LTD	Director	19/07/1991	19/07/1991	-	Active	NO
2	U27109WB2003PLC096242	JAI HANUMAN UDYOG LIMITED	Director	23/06/2003	23/06/2003	17/05/2010	Active	NO
3	U40101WB2005PLC101107	ENDLESS ENERGY LIMITED	Director	12/01/2005	12/01/2005	-	Active	NO
4	U27106WB2005PTC103220	TRIVENI WIRE CRAFT PRIVATE LIMITED	Director	19/05/2005	19/05/2005	-	Active	NO
5	U28909WB1981PTC034204	NIRMAL WIRES PVT LTD	Director	03/04/2010	03/04/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.09.2011

Names of Shareholders	No. of Shares
Triveni Devi Saraf	1900
Nirmal Kumar Saraf	16124
Radha Raman Saraf	14907
Piyush Saraf	5210
Sudha Saraf	40
Ramautar Saraf (HUF) '	3750
Ramautak Saraf (SELF)	11467
Nirmal Kumar Saraf (HUF)	11987
Radha Raman Saraf (HUF)	12107
Piyush Saraf (HUF)	10035
Varun Saraf	4850
Shraddha Saraf	4950
Seema Saraf	4910
Gajendra Mercantiles Private Limited, India	47237
TOTAL	149474

As on 16.12.2011

Names of Shareholders	No. of Shares
Gajendra Mercantiles Private Limited, India	27500
TOTAL	27500

As on 01.11.2011

Names of Shareholders	No. of Shares
Gajendra Mercantiles Private Limited, India	27500
TOTAL	27500

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	32.00
Directors or relatives of Directors	68.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Galvanised Iron Wire and its Products.

Products :

ITC Code	Product Descriptions
72173010	G. I. Wire
73121030	G. I. Stay Wire/ Earth Wire

· Galvanised Steel Wires

· Galvanised Stranded Wires

· HTGS Earthwires

· All Aluminum Conductor (AAC)

· Aluminum Steel Reinforced (ACSR)

· Welding Electrodes

· Hot Rolled Products

· Deformed Steel Bars

PRODUCTION STATUS (As on 31.03.2011)

Particulars	2011
	(In Tonnes)
Licensed Capacity	Not Applicable
Installed Capacity	9000000
Actual Production · It includes: Production of M S Wire Production of Barbed Wire Production of Annealed Wire Production of Stay Wire Production of Earth Wire	542.230 172.840 0.000 2514.866 490.609

GENERAL INFORMATION

Customers :

· West bengal State Electricity Distribution Company Limited, India

· West bengal State Electricity Transmission Company Limited, India

· Uttar Pradesh Power Transmission Company Limited, India

· Kerala State Electricity Board

· Bihar State Electricity Board

· Jharkhand State Electricity Board

· Madhyanchal Vidyut Vitran Nigam Limited, India

· Purvanchal Vidyut Vitaran Nigam Limited.

· Paschimanchal Vidyut Vitran Nigam Limited, India

· Subhash Project and Marketing Limited, India

· Shyama Power.

· Nagarjuna Construction Limited, India

· Supreme and Company

· Indo Power Projects Limited, India

· Ramjee Power Construction Limited, India

No. of Employees :

Not Available

Bankers :

Bank of Baroda, India Exchange Branch, 4, India Exchange Place, Kolkata – 700 001, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Cash Credit Secured against hypothecation of Stock of Raw materials, Finished Goods and Plant and Machinery	19.042	0.028
Total	19.042	0.028
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From the Directorate of Cottage and Small Scale Industries, West Bengal From Bodies Corporate From a Director From Shareholders	1.808 4.763 0.280 15.065	1.808 46.288 0.509 14.150
Total	21.916	62.755

Banking Relations :	--
Auditors :
Name :	Ashok Kumar Duggar and Associates Chartered Accountants
Address :	507, Marshall House, 33/1, Netaji Subhas Road, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22306238
PAN No.:	AAIFA2371A
Associates/Subsidiaries :	· Central Stores Supplies Private Limited, India · Concast Tie up Private Limited, India · Gajendra Mercantiles Limited, India · Prateek Wires Private Limited, India · Triveni Wire Crafts private Limited, India

CAPITAL STRUCTURE

As on 31.03.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs. 100/- each	Rs. 20.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
149474	Equity Shares	Rs. 100/- each	Rs. 14.947 millions

NOTE:

Of the above 79274 (2012: 79274) Equity Shares of Rs. 100 each had been allotted in 2008-2009 as fully paid up to the Shareholders of erstwhile Rahul Trafin Private Limited pursuant to the Scheme of Amalgamation.

After 05.09.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
225000	Equity Shares	Rs. 100/- each	Rs. 22.500 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
204474	Equity Shares	Rs. 100/- each	Rs. 20.447 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		14.947	12.927	12.927
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		171.454	126.637	120.429
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		186.401	139.564	133.356
LOAN FUNDS
1] Secured Loans		19.042	0.028	6.264
2] Unsecured Loans		21.916	62.755	2.981
TOTAL BORROWING		40.958	62.783	9.245
DEFERRED TAX LIABILITIES		0.092	0.131	0.084
TOTAL		227.451	202.478	142.685
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.855	5.323	3.415
Capital work-in-progress		99.557	38.929	6.276
INVESTMENT		0.650	0.100	1.650
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	83.348	68.037	26.794
	Sundry Debtors	59.537	92.459	59.720
	Cash & Bank Balances	8.301	7.137	27.811
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.582	9.426	31.393
Total Current Assets		164.768	177.059	145.718
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.684	12.443	12.179
	Other Current Liabilities	1.331	3.791	1.157
	Provisions	7.364	2.699	1.038
Total Current Liabilities		43.379	18.933	14.374
Net Current Assets		121.389	158.126	131.344
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		227.451	202.478	142.685

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	395.871	439.125	393.084
		Other Income	3.525	2.964	3.642
		TOTAL	399.396	442.089	396.726
Less	EXPENSES
		Raw Material Consumed	346.994	372.329	333.418
		Job Work Charges	23.234	24.997	10.145
		Expenses	44.959	53.445	33.834
		(Accretion)/Decretion to Stock	(26.450)	(18.647)	10.402
		TOTAL	388.737	432.124	387.799
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		10.659	9.965	8.927
Less/ Add	DEPRECIATION/ AMORTISATION		1.214	0.863	0.696
	PROFIT BEFORE TAX		9.445	9.102	8.231
Less	TAX		3.008	2.893	2.766
	PROFIT AFTER TAX		6.437	6.209	5.465
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.324	18.116	12.650
	BALANCE CARRIED TO THE B/S		30.761	24.325	18.115
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	0.270	0.931	6.118
	TOTAL EARNINGS		0.270	0.931	6.118
	IMPORTS
		CIF Value of Imports	0.000	26.696	0.000
	TOTAL IMPORTS		0.000	26.696	0.000
	Earnings Per Share (Rs.)		43.06	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.61	1.40	1.37
Net Profit Margin (PBT/Sales)	(%)	2.38	2.07	2.09
Return on Total Assets (PBT/Total Assets}	(%)	5.53	4.99	5.51
Return on Investment (ROI) (PBT/Networth)		0.05	0.06	0.06
Debt Equity Ratio (Total Liability/Networth)		0.45	1.71	0.177
Current Ratio (Current Asset/Current Liability)		3.79	9.35	10.13

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	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	Yes
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	Yes
34]	External Agency Rating, if available	No

CONTINGENT LIABILITY

Contingent Liability not provided for, in respect of: -

(Rs. in millions)

PARTICULARS	31.03.2011
Guarantees Outstanding	12.343
Guarantees given to bank in connection with loan taken by others	30.487

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28909WB1981PTC034204
Name of the company	NIRMAL WIRES PVT LTD
Address of the registered office or of the principal place of business in India of the company	76 - Cottan Street, Kolkata - 700007, West Bengal, India e-mail: niramal@niramlwires.com
This form is for	Modification of charge
Charge identification number of the modified	10260085
Type of charge	Book Debts Movable Property Floating Charge P and M, Stock and other Fixed and Current Assets
Particular of charge holder	Bank of Baroda, India Exchange Branch, 4, India Exchange Place, Kolkata – 700 001, West Bengal, India
Nature of description of the instrument creating or modifying the charge	1. Composite Hypothecation Agreement - LDOC 17 (B) 2. Supplemental Composite Agreement - LDOC 17 (C) 3. Supplemental Memorandum of Entry
Date of instrument Creating the charge	14.09.2012
Amount secured by the charge	Rs. 200.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest shall be paid as per sanction terms i.e. for CC - 3% above Base Rate i.e. 13.50% p.a. with monthly rests. Commission on BG and LC is as per sanction terms i.e. 75% of applicable rate of Bank. Terms of Repayment The Working Capital Limit is for 12 months subject to annual review. Margin The Borrower shall maintain appropriate margin as stipulated in the sanction terms. However, the same is subject to change from time to time. Presently the applicable margins are as follows :- Cash Credit - 25% on paid Stock and Book Debts ( upto 90 days ) LC and BG - 20% cash margin Extent and Operation of the charge The security created under the said Agreement shall operate as continuing security by way of First Charge The charged assets property be kept at the company risk and expense in good condition and fully insured against loss or damages by fire, lighting or explosion or theft and also against loss or damage by riot and civil commotion, etc. as may be required by the Bank in the joint names of the Bank and the Company. Others The Company hereby declares that all the charged property now existing at Madhyamgram Unit are absolute property of and at the sole disposal of the company and free from any prior charge or encumbrance and undertakes that all future property at the Madhyamgram Unit shall likewise be the unencumbered and absolute and disposable property of the company. Other terms and conditions are as per terms and conditions of above referred agreement and sanction letter of the Bank. Refer to attachment.
Short particulars of the property charged	The borrower Company hereby hypothecates and charges by way of 1st charge a) All stocks of RM, WIP and FG and stores and spares now being and lying in the borrower's factory at Jessore Road, Madhyamgram, North 24 Parganas, West Bengal State both present and future. b) All the Book Debts, outstanding and other Current Assets of the Madhyamgram Unit, both present and future. c) All movable Plant and Machinery and other Fixed Assets belonging to the Madhyamgram Unit of the company, both present and future.
Date of latest modification prior to the present modification	23.03.2012
Particulars of the present modification	By this modification the overall credit Limit sanctioned by Bank and secured by the charge has been revised from Rs. 60.000 Millions to Rs. 200.000 Millions comprising of (a) Cash Credit Limit of Rs. 120.000 millions and (b) Bank Guarantee Limit of Rs. 50.000 millions and (c) Letter of Credit Limit of Rs. 30.000 millions respectively.

FIXED ASSETS

· Freehold land

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Instruments

· Generator

· Pollution Control Equipment

· Office Equipment

· Computer

· Air Conditioners

· 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.53.12
UK Pound	1	Rs.85.15
Euro	1	Rs.68.60

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.