MIRA INFORM REPORT

Report Date :

26.10.2012

IDENTIFICATION DETAILS

Name :	TWINSTAR INDUSTRIES LIMITED (w.e.f. 31.07.2009)
Formerly Known As :	TWINSTAR SOFTWARE EXPORTS LIMITED
Registered Office :	Plot No.EL-178, TTC MIDC Industrial Area, Mahape, Navi Mumbai – 400701, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.06.1994
Com. Reg. No.:	11-079084
Capital Investment / Paid-up Capital :	Rs.224.602 Millions
CIN No.: [Company Identification No.]	L30007MH1994PLC079084
PAN No.: [Permanent Account No.]	AAACB1529J
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Subject is engaged in the business of Software Development.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 900000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appear some accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some cautions.

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 :	Plot No.EL-178, TTC MIDC Industrial Area, Mahape, Navi Mumbai – 400701, Maharashtra, India
Tel. No.:	91-22-28397864/ 27619576/ 27619498
Fax No.:	91-22-28262462
E-Mail :	dsmehta@hotmail.com
Corporate Office :	702, Feme Plaza, Near Chakala Andheri - Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Daulatmal S. Mehta

Designation :

Managing Director

Address :

901, Himachal, Juhu Lane, Andheri (West), Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

09.01.1957

Date of Appointment :

23.06.1994

DIN No.:

01575366

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	U65910MH1992PLC069063	TWIN STAR HOLDING AND FINANCE LTD.	Director	16/10/1992	16/10/1992	-	Active	NO
2	L30007MH1994PLC079084	TWINSTAR INDUSTRIES LIMITED	Managing director	23/06/1994	23/06/1994	-	Active	NO
3	U99999MH1996PTC096067	BHOOMI COMPUTERS PRIVATE LIMITED	Director	28/03/2011	08/10/2001	06/07/2012	Active	NO
4	U64200MH1996PLC103469	ORIGINET TECHNOLOGIES LIMITED	Director	30/09/2011	28/03/2011	-	Active	NO

Name :

Mr. Yogesh Kumar Narendra Wadhwana

Designation :

Director

Address :

13, Sagar Tarang, 81/83, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

13.05.1960

Date of Appointment :

01.03.1995

DIN No.:

00266533

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	U65990MH1984PTC033385	YATIN INVESTMENT AND TRADING PVT LTD	Director	07/07/1984	07/07/1984	-	Active	NO
2	U65910MH1984PTC033379	WADHWANA LEASING PRIVATE LIMITED	Director	07/07/1984	07/07/1984	-	Active	NO
3	L01115MP1943PLC000221	BSI LIMITED	Managing director	04/11/1985	04/11/1985	-	Active	NO
4	U67120MH1982PLC026725	BSI SECURITIES INTERNATIONAL LIMITED	Director	16/08/1986	16/08/1986	-	Active	NO
5	U99999MH1987PTC043353	NEERAV INVESTMENT AND TRADING PVT LTD	Director	25/05/1987	25/05/1987	-	Active	NO
6	U99999MH1987PLC043354	BSI CAPITAL AND FINANCE LIMITED	Director	03/10/1987	03/10/1987	-	Active	NO
7	U65990MH1988PTC046550	KOSHISH INVESTMENT AND TRADING PRIVATE LIMITED	Director	15/03/1988	15/03/1988	-	Active	NO
8	U65990MH1987PTC043358	PROSPEROUS INVESTMENTS AND TRADING PRIVATE LIMITED	Director	24/02/1989	24/02/1989	-	Active	NO
9	U51900MH1984PTC033657	WADHWANA TRADING AND AGENCIES PRIVATE LIMITED	Director	04/08/1994	04/08/1994	-	Active	NO
10	L30007MH1994PLC079084	TWINSTAR INDUSTRIES LIMITED	Director	01/03/1995	01/03/1995	-	Active	NO
11	U72900MH2000PLC127876	NETIZENS TECHNOLOGIES LIMITED	Director	24/07/2000	24/07/2000	-	Active	NO
12	U51900MH2000PLC128129	YKY COMMODITIES LIMITED	Director	08/08/2000	08/08/2000	16/12/2011	Active	NO
13	U65990MH1988PTC046551	PINK ROSE INVESTMENT AND TRADING PRIVATE LIMITED	Director	15/03/2007	15/03/2007	-	Active	NO
14	U51109WB2005PTC102383	GRADIENT COMMERCIAL PRIVATE LIMITED	Director	12/11/2007	12/11/2007	-	Active	NO
15	U51220DL2008PTC181652	Fleetwood Trading Private Limited	Director	04/08/2008	04/08/2008	-	Active	NO
16	AAA-6890	ANASSA REALTY LLP	Designated Partner	15/11/2011	15/11/2011	-	Active	NO

Name :

Mr. Nirmal Jain

Designation :

Director

Address :

13, B.J.S. Colony, Ram Vihar, Jodhpur – 342001, Rajasthan, India

Date of Birth/Age :

01.09.1959

Date of Appointment :

29.04.2000

DIN No.:

01506352

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	U64200MH1996PLC103469	ORIGINET TECHNOLOGIES LIMITED	Director	30/09/2010	11/01/2000	21/02/2011	Active	NO
2	U65920MH1996PTC100610	STUTI FINLEASE PRIVATE LIMITED	Director	28/02/2000	28/02/2000	-	Active	NO
3	L30007MH1994PLC079084	TWINSTAR INDUSTRIES LIMITED	Director	29/04/2000	29/04/2000	-	Active	NO
4	U99999MH1996PTC096067	BHOOMI COMPUTERS PRIVATE LIMITED	Director	05/07/2012	05/07/2012	-	Active	NO

Name :

Mr. Kailash Mehta

Designation :

Director

Address :

153, Mutho Ka Bas, Sojat Ward No.12^th Sojat District Pali, Jodhpur - 306104, Rajasthan, India

Date of Birth/Age :

26.06.1952

Date of Appointment :

23.06.1994

DIN No.:

01741399

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	Company/ LLP Status	Defaulting status
1	U65910MH1992PLC069063	TWIN STAR HOLDING AND FINANCE LTD.	Director	16/10/1992	16/10/1992	Active	NO
2	U14101RJ1994PTC008483	TWINSTAR MINERALS AND CHEMICALS PRIVATE LIMITED	Director	15/06/1994	15/06/1994	Active	NO
3	L30007MH1994PLC079084	TWINSTAR INDUSTRIES LIMITED	Director	23/06/1994	23/06/1994	Active	NO
4	U99999MH1996PTC104413	REDIANT FINVEST PRIVATE LIMITED	Director	02/02/2000	02/02/2000	Active	NO
5	U99999MH1996PTC096067	BHOOMI COMPUTERS PRIVATE LIMITED	Director	05/07/2012	05/07/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2012)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3623800	16.11
Bodies Corporate	1901700	8.45
Sub Total	5525500	24.56
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5525500	24.56
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	14300	0.06
Financial Institutions / Banks	200000	0.89
Central Government / State Government(s)	39150	0.17
Foreign Institutional Investors	16800	0.07
Any Others (Specify)	250000	1.11
Stressed Assets Stabilisation Fund	250000	1.11
Sub Total	520250	2.31
(2) Non-Institutions
Bodies Corporate	7204630	32.02
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	3490103	15.51
Individual shareholders holding nominal share capital in excess of Rs.0.100 Millions	5163757	22.95
Any Others (Specify)	595760	2.65
Clearing Members	32091	0.14
Non Resident Indians	563669	2.51
Sub Total	16454250	73.13
Total Public shareholding (B)	16974500	75.44
Total (A)+(B)	22500000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	0.00
(2) Public	--	0.00
Sub Total	--	0.00
Total (A)+(B)+(C)	22500000	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Software Development.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Union Bank of India Abdul Rehman Street Branch, Bhagat Mansion, 176/180, Abdul Rehman Street, Mumbai – 400003, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	N. K. Jalan and Company Chartered Accountant
Address :	2-A, Mayur Apartments, Dadabhi Cross Road No.3, Vile Parle (West), Mumbai – 400056, Maharashtra, India
PAN No.:	AAAHJ1858B

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
22500000	Equity Shares	Rs.10/- each	Rs.225.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22460236	Equity Shares	Rs.10/- each	Rs.224.602 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		224.600	224.602	174.602
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	19.837	19.837
4] (Accumulated Losses)		(0.300)	(30.179)	(31.087)
NETWORTH		224.300	214.260	163.352
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		224.300	214.260	163.352
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.600	19.120	20.631
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		116.000	98.996	53.195
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	43.800	57.919	124.674
	Cash & Bank Balances	13.200	0.092	6.206
	Other Current Assets	0.000	0.119	0.119
	Loans & Advances	83.900	68.871	60.932
Total Current Assets		140.900	127.001	191.931
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	50.200	24.897	96.789
	Other Current Liabilities	0.000	5.960	5.616
	Provisions	0.000	0.000	0.000
Total Current Liabilities		50.200	30.857	102.405
Net Current Assets		90.700	96.144	89.526
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		224.300	214.260	163.352

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	322.000	105.739	205.434
		Other Income	0.000	0.034	0.000
		TOTAL (A)	322.000	105.773	205.434
Less	EXPENSES
		Cost of Materials	313.700	100.992	199.737
		Employee Related Expenses	0.800	0.172	0.212
		Administrative, Selling and Other Expenses	1.600	2.191	2.733
		TOTAL (B)	316.100	103.355	202.682
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.900	2.418	2.752
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.900	2.418	2.955
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.500	1.510	1.659
	PROFIT BEFORE TAX (E-F) (G)		4.400	0.908	1.093
Less	TAX (H)		(5.700)	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		10.100	0.908	1.093
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(31.087)	(32.180)
	BALANCE CARRIED TO THE B/S		NA	30.179	(31.087)
	Earnings Per Share (Rs.)		0.45	0.04	0.05

QUARTERLY RESULTS

PARTICULARS	30.06.2011
Type	1^st Quarter
Net Sales	47.290
Total Expenditure	46.560
PBIDT (Excl OI)	0.730
Other Income	0.000
Operating Profit	0.730
Interest	0.150
Exceptional Items	0.000
PBDT	0.580
Depreciation	0.380
Profit Before Tax	0.200
Tax	0.060
Provisions and contingencies	0.000
Profit After Tax	0.140
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	0.140

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.14	0.86	0.53
Net Profit Margin (PBT/Sales)	(%)	1.37	0.86	0.53
Return on Total Assets (PBT/Total Assets}	(%)	2.78	0.62	0.51
Return on Investment (ROI) (PBT/Networth)		0.02	0.00	0.01
Debt Equity Ratio (Total Liability/Networth)		0.22	0.14	0.63
Current Ratio (Current Asset/Current Liability)		2.81	4.12	1.87

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	No
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	No
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

OPERATIONS AND OVERALL PERFORMANCES:

During the year the profits of the Company was Rs.0.908 Million against profits of Rs.1.296 Millions in the previous year. The directors are hopeful that the strategies and Business Plans made by the Management will reap more positive yields in the time to come.

FORM 8

This form is for	Creation of charge
Corporate identity number of the company	L30007MH1994PLC079084
Name of the company	Twinstar Industries Limited
Address of the registered office or of the principal place of business in India of the company	Plot No EL-178, TTC MIDC Industrial Area, Mahape, Navi Mumbai – 400701, Maharashtra, India dsmehta@hotmail.com
Type of charge	Book Debts
Particular of charge holder	· Union Bank of India Abdul Rehman Street Branch, Bhagat Mansion, 176/180, Abdul Rehman Street, Mumbai – 400003, Maharashtra, India cbsarstreet@unionbankofindia.com
Nature of description of the instrument creating or modifying the charge	Hypothecation (Book-Debts) Agreement
Date of instrument Creating the charge	28/01/2012
Amount secured by the charge	Rs.5.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest 16.90% per annum with monthly rests or at such other revised rate/s as may be prescribed by the Bank from time to time Terms of Repayment On Demand Margin As per sanction terms. Extent and Operation of the charge To secure Cash Credit (Hypothecation) Book-Debts facility of Rs.5.000 Millions under CGTMSE granted by the Bank to the Company
Short particulars of the property charged	Hypothecation by way of First Charge in favour of the Bank: All the Borrower's Present and Future Book-Debts, Outstanding Monies, Deposits, Receivable Claims Bills Contract Securities Investments Rights and Assets

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Other Equipments

· Furniture and Fixtures

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.63
UK Pound	1	Rs.86.18
Euro	1	Rs.69.75

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.