MIRA INFORM REPORT

Report Date :

17.10.2012

IDENTIFICATION DETAILS

Name :	NANDAN GROUND SUPPORT EQUIPMENT PRIVATE LIMITED
Registered Office :	C – 15, Nanddham Industrial Estate, Marol Maroshi Road, Andheri (East), Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.09.2002
Com. Reg. No.:	11-137255
Capital Investment / Paid-up Capital :	Rs.6.550 Millions
CIN No.: [Company Identification No.]	U29200MH2002PTC137255
IEC No.:	0305048775
TAN No.: [Tax Deduction & Collection Account No.]	MUMN12703F
PAN No.: [Permanent Account No.]	AABCN6540Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Ground Handling Equipments and Airport Equipments.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 60000
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 and as per commitments. The company can be considered 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.

INFORMATION PARTED BY

Name :	Mr. Acharya
Designation :	Marketing Manager
Contact No.:	91-8080273134
Date :	16.10.2012

LOCATIONS

Registered Office :	C – 15, Nanddham Industrial Estate, Marol Maroshi Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-29206582
Mobile No.:	91-8080273134 (Mr. Acharya) 91-8080273133 (Mr. Raghunandan)
Fax No.:	91-22-66936878
E-Mail :	info@nandan-india.com
Website :	http://www.nandan.co.in
Location :	Owned
Factory :	D – 205, MIDC Turbhe TTC Industrial Area, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-27635508/ 09/ 10
Fax No.:	91-22-27635510
E-Mail :	sales@nandangse.com
Location :	Owned

DIRECTORS

(AS ON 21.09.2011)

Name :	Mr. Jagdish Chandra Kumar Bhat
Designation :	Managing Director
Address :	2A/ 301, Ashok Nagar, Military Road, Marol, Andheri (East), Mumbai – 400 072, Maharashtra, India
Date of Birth/Age :	08.07.1948
Date of Appointment :	18.09.2002
DIN No.:	00245153
Name :	Mr. Raghunandan Jagadish Bhat
Designation :	Director
Address :	2A/ 301, Ashok Nagar, Military Road, Marol, Andheri (East), Mumbai – 400 072, Maharashtra, India
Date of Birth/Age :	03.08.1979
Date of Appointment :	18.09.2002
DIN No.:	00245259
Name :	Ms. Smitha Jagdish Chandra Bhat
Designation :	Director
Address :	2A/ 301, Ashok Nagar, Military Road, Marol, Andheri (East), Mumbai – 400 072, Maharashtra, India
Date of Birth/Age :	02.10.1981
Date of Appointment :	18.09.2002
DIN No.:	00245232

KEY EXECUTIVES

Name :	Mr. Acharya
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 21.09.2011)

Names of Shareholders	No. of Shares
Jagdish Chandra Kumar Bhat	49350
Raghunandan J. Bhat	14350
Smitha J. Bhat	1800
Total	65500

(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 and Exporter of Ground Handling Equipments and Airport Equipments.

Products :

· Aviation Ground Support Equipment (GSE)

· Material Handling Equipment

· Defense Systems

· Car Parking Solutions

· Aerial Access Equipment

· Car Parking Solutions

· Specialized Body Building

Item Code No. (ITC Code)	0107
Product Description	Hydraulic Lifts

Exports :

Products :

· Ground Handling Equipments

· Airport Equipments

Countries :

· South East Asia

· African Country

· Middle East

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

· Advance Plastics

· Aditya Control System

· Air Marine Frieght Services P.L.

· Akshay Sales Corporation

· Ambika Hardware and Paint Mart

· Ankur Sales Corporation

· Asian Hydraulic

· Automotive Manufacturers P.L.

· Bhairav Abrasive and Tools Centre

· Buthello Transport

· Carrier Transicold Europe SCS

· Delta Metals

· Dinesh Enterprises

· Eicher Motors Limited

· Electro Coats

· Esdee Paints Limited

· Galeon Chemicals India P.L.

· Galeon Trading and Investments

· Ganesh Electrical Engg. Works

· Hydro Dyne Industries

· Hydro-Pneumatic Engineering Works

· James Engineering Works

· Jaydeep Engineering

· Kirit Sales Corporation

· Madhu Engineering Works

· M.G.S. Technologies

· National Trading Corporation

· Nisham Enterprises

· Om Shree Enterprises

· Oriental Gases

· Panth Enterprises

· Pioneer Corporation

· Pioneer Machine Tools

Customers :

End Users

· Aditya Vidyut Appliance Limited

· Air India

· Coastal Project Private Limited

· Dani Aviation Services Private Limited

· EIH Flight Services Limited

· Ewart Investments Limited

· Integrated HQ of MOD Army Camp

· Inter Glob Aviation

· King Fisher Airlines

· Plus Paper Foodpac Limited

· Saswad Mali Sugar Factory

· Shri Rajeshwari Equipment

· The Indian Express

No. of Employees :

100 (Approximately)

Bankers :

· Yes Bank Limited

9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

· State Bank of India

Marol Branch, Andheri East, Mumbai - 400059, Maharashtra, India

· NKGSB Co-Operative Bank Limited

Wadala Branch, Gala No. A-9, Royal Industrial, Estate, Naigaon Cross Road, Wadala, Mumbai – 400031, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
NKGSB Co-operative Bank Limited CC A/C (Secured against hypothecation of Stock and Book Debts)	31.923	0.000
NKGSB Co-operative Bank Limited – Term Loan A/c (Secured against hypothecation of Industrial Gala)	14.022	0.000
State Bank of India – Temporary OD against FD	0.636	0.000
Tata Motor Finance – Vehicle Loan (Secured against hypothecation of Motor Vehicles)	0.415	0.000
State Bank of India – CC – 1053833 (Secured against hypothecation of stock and book debts)		21.910
State Bank of India – Term Loan (Secured against hypothecation of Industrial Gala)	--	7.660
Total	46.996	29.570

Banking Relations :	--
Auditors :
Name :	UDS Associates Chartered Accountants
Address :	210, Rizvi Chambers 1, Hill Road, Bandra (West), Mumbai – 400072, Maharashtra, India
Tel No.:	91-22-66680718
Fax No.:	91-22-66680721
Pan No.:	AACFU3340D
Associates/Subsidiaries :	· Nandan Enterprises C-15 Nanddham Industrial Estate, Marol Maroshi Road, Mumbai – 400059, Maharashtra, India Ph: 91-22-2920-6582/ 7309 Fax: 91-22-6693-68-78 E-mail: info@nandan-india.com Website: www.nandan.co.in · Nandan Equipment Services C-15 Nanddham Industrial Estate, Marol Maroshi Road, Mumbai – 400059, Maharashtra, India Line of Business: AMC of Repairs of Maintenance of Equipments. Ph: 91-22-29206582/ 7309 Fax: 91-22-66936878 E-mail: service@nandan-india.com Website: www.nandan.co.in

CAPITAL STRUCTURE

(AS ON 21.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
805000	Equity Shares	Rs.100/- each	Rs.8.050 millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
65500	Equity Shares	Rs.100/- each	Rs.6.550 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		6.550	6.550	6.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.216	6.772	6.051
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.766	13.322	12.451
LOAN FUNDS
1] Secured Loans		46.996	29.570	33.329
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		46.996	29.570	33.329
DEFERRED TAX LIABILITIES		0.236	0.245	0.146
TOTAL		61.998	43.137	45.926
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.231	20.468	22.834
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.199	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	57.908	46.283	44.717
	Sundry Debtors	9.280	3.861	2.456
	Cash & Bank Balances	3.104	1.066	2.223
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.585	2.128	1.611
Total Current Assets		71.877	53.338	51.007
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	19.833	27.865	25.409
	Other Current Liabilities	8.701	2.226	2.043
	Provisions	0.775	0.578	0.472
Total Current Liabilities		29.309	30.669	27.924
Net Current Assets		42.568	22.669	23.083
MISCELLANEOUS EXPENSES		0.000	0.000	0.009
TOTAL		61.998	43.137	45.926

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	74.000	60.285	61.096
		Other Income	0.087	0.085	0.279
		TOTAL (A)	74.087	60.370	61.375
Less	EXPENSES
		Cost of Goods Sold	42.528	40.387	38.957
		Excise Duty	4.940	2.118	4.353
		Payments to and Provision for Employees	3.963	2.392	2.307
		Administrative and Selling Expenses	12.036	7.412	7.948
		Preliminary Expenses Written off u/s 35D	0.000	0.009	0.009
		TOTAL (B)	63.467	52.318	53.574
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.620	8.052	7.801
Less	FINANCIAL EXPENSES (D)		5.918	4.311	4.073
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.702	3.741	3.728
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.408	2.467	2.811
	PROFIT BEFORE TAX (E-F) (G)		2.294	1.274	0.917
Less	TAX (H)		0.850	0.553	0.544
	PROFIT AFTER TAX (G-H) (I)		1.444	0.721	0.373
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.772	6.051	5.678
	BALANCE CARRIED TO THE B/S		8.216	6.772	6.051
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.169	26.114	10.591
	TOTAL EARNINGS		1.169	26.114	10.591
	Earnings Per Share (Rs.)		22.05	11.01	--

Particulars	31.03.2012
Sales Turnover (Approximately)	120.000

Expected Sales (2012-13): Rs.180.000 Millions

The above information has been parted by Mr. Acharya.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.95	1.19	0.61
Net Profit Margin (PBT/Sales)	(%)	3.10	2.11	1.49
Return on Total Assets (PBT/Total Assets}	(%)	2.52	1.73	1.24
Return on Investment (ROI) (PBT/Networth)		0.16	0.10	0.07
Debt Equity Ratio (Total Liability/Networth)		5.17	4.52	4.92
Current Ratio (Current Asset/Current Liability)		2.45	1.74	1.83

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No

FINANCIAL RESULTS:

The Company has achieved about 23% raise in sales showcasing its resilience to withstand last year's economic turmoil and as stated in their last report "a lot of promise" has been fructified in the current year.

The company has been striving to develop new designs and new products with suitable software and skilled manpower. Thus, gearing itself up to deliver to the demanding new markets for sophisticated GSE equipments as solutions to problems of height and weight at different places and spaces. The Company, with hard work and resolute determination to deliver quality products at the competitive price, has managed to secure a handful of orders and hope to post an impressive sales in the coming years. With diversification in the offerings to the market and geographies the Nandan name is now widely recognized as a troubleshooter for peculiar problems related to material handling. We have also now an increased and improved team of people with the IS0 9001:2008 certification under their belt that will help to take up challenging projects.

CONTINGENT LIABILITIES (AS ON 31.03.2011)

The company y has a disputed property tax due with Navi Mumbai Mahanagar Palika of Rs.11.957 Millions as at 31^st March, 2011 which is contingent in nature. This liability has been contingent on the outcome of the ensuing court rulings in the said adjudicated matter.

FORM 8:

Corporate identity number of the company	U29200MH2002PTC137255
Name of the company	NANDAN GROUND SUPPORT EQUIPMENT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C – 15, Nanddham Industrial Estate, Marol Maroshi Road, Andheri (East), Mumbai – 400 059, Maharashtra, India info@nandan-india.com
This form is for	Modification of charge
Charge identification number of the modified	10240057
Type of charge	Immovable Property
Particular of charge holder	NKGSB Co-operative Bank Limited Wadala Branch, Gala No. A-9, Royal Industrial Estate, Naigaon Cross Road, Wadala, Mumbai – 400031, Maharashtra, India E-Mail: anandshanbhag@nkgsb-bank.com
Nature of description of the instrument creating or modifying the charge	Memorandum of equitable mortgage by way of extension of charge.
Date of instrument Creating the charge	12.08.2011
Amount secured by the charge	Rs.41.750 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: As per sanction Letter Ref. No. ADV/AC/ NGEPL/ Wadala/ 324/11-12/ 09.08.11 for Cash Credit, Term Loan I (WCDL), Term Loan II 14.75 % p.a. M.R. and for Bank guarantee as per bank policy. Terms of Repayment: As per sanction Letter Ref. No. ADV/AC/ NGEPL/ Wadala/ 324/11-12/ 09.08.11 for Cash Credit valid upto 30.06.2012. For Term Loan I (WCDL) Bullet Repayment on or before feb.2012. For Term Loan II 60 EMI of Rs.0.059 Million For bank guarantee valid upto 30.06.2012 and one time Bank Guarantee valid upto Nov.2012. Margin: As per sanction letter ref. No. ADV/AC/NGEPL/ Wadala/ 324/11-12/09.08.11 for cash credit 25 % against stock and 40 % against book debts. For Term Loan I (WCDL) and for term loan ii 25 %. For bank guarantee 10 %. The charge shall operate for due repayment of Total Financial Limit of Rs.41.750 Millions plus interest, bank charges or any other charges on the securities provided to bank more specifically mentioned in charge creation instrument dt. 25.08.2010 already registered vide ID No. 10240057 and modified with present instrument dt. 12.08.2011.
Particulars of the property charged	A) All that Piece and Parcel of land known as Plot of Land No. D-205, situated at Trance Thane Creek Industrial Area, Turbhe, Navi Mumbai- 400705 measuring 2126 sq. mtr. along with structure standing thereon having ground + one upper floor having total built up area 12596 sq. ft. as commercial premises. B) All that Piece and Parcel of Non Agricultural Industrial Land situated at Gat No. 196, Village Dheku, Grampanchayat Sajgaon, Khalapur, District Raigad along with structure standing thereon having Ground Floor with Total Built up area of 8191 sq. ft. as commercial premises.
Particulars of the present modification	Charge shall operate for due repayment of Total Financial Limit of Rs.41.750 Millions consisting of CC Renewal Rs.30.000 Millions, T/L I (WCDL) Rs.3.000 Millions, T/L II Rs.2.500 Millions, BG Renewal Rs.2.500 Millions, and one Time BG of Rs.3.750 Millions on the securities provided to bank more specifically mentioned in charge creation instrument dt. 25.08.2010 already Registered Vide ID No. 10240057 and modified with present instrument of 'memorandum of EM by way of extension of charge' dt.12.08.2011.

FIXED ASSETS:

· Industrial Gala

· Industrial Gals - Renovation

· Computers

· Motor Car

· Motor Bike

· Machinery

· Office Equipments

· Refrigerator

· Furniture and Fixtures

· Mobile Phone

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

Information Gathered by :	SVA
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	5
--CREDIT LINES	1~10	4
--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		43

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.