MIRA INFORM REPORT

Report Date :

27.10.2012

IDENTIFICATION DETAILS

Name :	CIPY POLY URETHANES PRIVATE LIMITED
Registered Office :	T –127, MIDC Industrial Area, Bhosari, Pune – 411026, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.11.1994
Com. Reg. No.:	11-083328
Capital Investment / Paid-up Capital :	Rs.9.004 millions
CIN No.: [Company Identification No.]	U24219PN1994PTC083328
TAN No.: [Tax Deduction & Collection Account No.]	PNEC00821C
PAN No.: [Permanent Account No.]	AAACC7264R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Urethane and Epoxy Coatings.
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 764000
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 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Bank Lines- Term Loan and Cash Credit: BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	13.12.2011

Rating Agency Name	ICRA
Rating	Bank Lines- Short Term Fund Based and Non Fund Based: A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	13.12.2011

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. Sagar
Designation :	Finance Manger
Contact No.:	91-20-66316400
Date :	05.10.2012

LOCATIONS

Registered Office / Factory Corporate Office:	T –127, MIDC Industrial Area, Bhosari, Pune – 411026, Maharashtra, India
Tel. No.:	91-20-66316400/ 27121706/ 27122586
Fax No.:	91-20-66316460/ 27120491
E-Mail :	sagar@cipypolyurethane.com info@cipypolyurethane.com subash@cipypolyurethane.com drbarveandco@yahoo.com
Website :	http://www.cipypolyurethane.com
Location :	Owned
Factory :	Global Industrial Estate, Shirwal, District Satara, Maharashtra, India
Branch Office :	Located at: · Mumbai · Bengaluru · Kolkata · Delhi

DIRECTORS

As on 31.08.2011

Name :	Mr. Subhash Cheralayathpanku Cipy
Designation :	Managing Director
Address :	Ritu, 11, Green Park, Baner, Pune – 411007, Maharashtra, India
Date of Birth/Age :	16.05.1953
Qualification :	B.E Chemicals
Experience :	32 Years
Date of Appointment :	31.12.2011
DIN No.:	00608724
Name :	Mrs. Sabitha Subash Cipy
Designation :	Director
Address :	Ritu, 11, Green Park, Baner, Pune – 411007, Maharashtra, India
Date of Birth/Age :	06.06.1960
Date of Appointment :	29.11.1994
DIN No.:	00386708

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.08.2011

Names of Shareholders	No. of Shares
Subhash Cipy, Ritu, 11, Green Park, Baner, Pune – 411007, Maharashtra, India	18018
Sabita Cipy, Ritu, 11, Green Park, Baner, Pune – 411007, Maharashtra, India	72018
Total	90036

List of Allottees (As on 13.01.2012)

Names of Allottees	No. of Shares
Ritu Cipy, Ritu, 11, Green Park, Baner, Pune – 411007, Maharashtra, India	1982
Avikal Kunzipurial Sagar, Dream Residency, Flat No. 19, A Wing, S. No. 154/1b/1, Air Port Road, Pune - 411006, Maharashtra, India	696
Total	2678

Equity Share Break up (Percentage of Total Equity)

As on 31.08.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Urethane and Epoxy Coatings.
Products :	· Polyurethane Paints · Floor Coatings · ESD Coatings · Hygienic Coatings · Re Enterable Castings · Adhesives and Sealants · Moisture Curing Urethanes · Clear Coatings · Deck Coatings · Wall Coatings · OEM · Concrete Sealer · Green Coatings · Protective Coatings · Spray applied Polyurethane · Water Proofing and Memt
Exports :
Products :	Urethane and Epoxy Coatings.
Countries :	· Srilanka · Abu Dhabi
Imports :
Products :	Raw Material
Countries :	Europe
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

B.Y.K – Europe

Customers :

Wholesalers and Retailers

· Swathi Engineering Agencies

No. of Employees :

120 (Approximately)

Bankers :

· Axis Bank, Bhosari Branch, 126/B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune – 411 004, Maharashtra, India

· Axis Bank Limited, Corporate Banking Branch, 214/215, 2nd Floor, City Mall, Ganeshkhind Road, Pune – 411007, Maharashtra, India

· Indian Bank, Deccan Gymnkhana, Pune – 411004, Maharashtra, India

· Indian Bank, 759/62, Prabhat Road, Deccan Gymkhana, Pune – 411 004, Maharashtra, India

· UTI Bank Limited, 1262/B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune - 411004, Maharashtra, India

Facilities :

Cash and Credit Rs.100.000 millions (From Axis Bank)

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Axis Bank A/C No 06040 Cash Credit A/c (Secured Against Hypothecation of Movable Fixed Assets, Stock and Debtors and Mortgage of Immovable Fixed Assets and Guaranteed By Directors)	77.760	77.052
2) Axis Bank MTL Loan A/c (Secured Against Hypothecation of Movable Fixed Assets, Current Assets And Mortgage of Land and Buildings and Guaranteed By Directors)	3.706	4.713
3) UTI Bank Loan A/c 25265730 (Secured Against Hypothecation Of Movable Fixed Assets, Mortgage of Immovable Properties and Guaranteed By Directors)	59.745	0.000
4) Axis Bank Loan A/c No. 56373 (Secured Against Hypothecation Of Fixed Assets, Current Assets And Mortgage Of Land and Buildings And Guaranteed By Directors)	11.136	15.137
5) Axis Bank Loan A/c No. 037010600057442 (Secured Against Mortgage of Land and Building at Block T-128 MIDC Bhosari, Stock and Debtors and current assets And Guaranteed by Directors)	11.469	15.073
6) Axis Bank PCFC Loan A/c No. D1245203/910080009177480 (Secured Against Export Bills and Guaranteed by Directors)	3.346	3.655
Total	167.162	115.631
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loan From Directors	0.003	0.268
Total	0.003	0.268

Banking Relations :	--
Auditors :
Name :	D. R. Barve and Associates Chartered Accountants
Address :	461/1, Sadashiv Peth, Tilak Road, Pune – 411030, Maharashtra, India
Tel. No.:	91-20-24455414/ 24453592
PAN.:	AADFD3147J
E-mail:	drb@drbarveandco.in

CAPITAL STRUCTURE

After: 30.08.2011

Authorised Capital : Rs.10.000 millions

Issued, Subscribed & Paid-up Capital : Rs.9.417 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
90036	Equity shares	Rs.100/- each	Rs.9.004 millions

Note:

(Of the above shares 10004, 30012, 45018 shares were allotted as fully paid up by way of Bonus Shares by capitalizing the General Reserve during the financial year 97-98, 99-00, 2002-03 respectively.)

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		9.004	9.004	9.004
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		182.095	151.503	117.368
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		191.099	160.507	126.372
LOAN FUNDS
1] Secured Loans		167.162	115.631	107.061
2] Unsecured Loans		0.003	0.268	0.846
TOTAL BORROWING		167.165	115.899	107.907
DEFERRED TAX LIABILITIES		7.435	5.452	4.236
TOTAL		365.699	281.858	238.515
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		194.175	104.909	59.453
Capital work-in-progress		1.984	4.098	3.670
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.359	41.980	38.012
	Sundry Debtors	246.170	253.229	239.728
	Cash & Bank Balances	53.647	36.383	18.824
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	28.962	13.528	10.190
Total Current Assets		374.138	345.120	306.754
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	182.338	154.367	103.406
	Other Current Liabilities	17.208	17.902	19.352
	Provisions	5.052	0.000	8.604
Total Current Liabilities		204.598	172.269	131.362
Net Current Assets		169.540	172.851	175.392
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		365.699	281.858	238.515

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	725.295	559.323	585.957
		Other Income	6.475	3.892	7.655
		TOTAL (A)	731.770	563.215	593.612
Less	EXPENSES
		Manufacturing Cost	542.355	415.621	431.690
		Increase/ Decrease Stock	0.239	1.914	(0.279)
		Employee Cost	44.492	36.019	31.206
		Administrative & Selling Cost	76.477	38.372	52.918
		TOTAL (B)	663.563	491.926	515.535
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		68.207	71.289	78.077
Less	FINANCIAL EXPENSES (D)		15.962	14.859	13.104
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.245	56.430	64.973
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.547	4.537	3.284
	PROFIT BEFORE TAX (E-F) (G)		46.698	51.893	61.689
Less	TAX (H)		16.063	17.556	24.388
	PROFIT AFTER TAX (G-H) (I)		30.635	34.337	37.301
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.000
		Proposed Dividend	0.000	0.000	0.900
		Provision for Corporate Dividend Tax	0.000	0.000	0.153
	BALANCE CARRIED TO THE B/S		30.635	34.337	36.248
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	31.987	78.968	61.913
	TOTAL EARNINGS		31.987	78.968	140.881
	IMPORTS
		Raw Materials, Capital Goods, etc	15.743	14.344	22.650
	TOTAL IMPORTS		15.743	14.344	36.994
	Earnings Per Share (Rs.)		340.26	381.37	414.30

Particulars	31.03.2013	31.03.2012
Sales Turnover (Approximately)	1000.000	860.000
	(Due to More Project )

The above information has been parted by Mr. Sagar.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.19	6.10	6.28
Net Profit Margin (PBT/Sales)	(%)	6.44	9.27	10.53
Return on Total Assets (PBT/Total Assets}	(%)	8.21	11.53	16.49
Return on Investment (ROI) (PBT/Networth)		0.24	0.32	0.49
Debt Equity Ratio (Total Liability/Networth)		1.95	1.79	1.96
Current Ratio (Current Asset/Current Liability)		1.82	2.00	2.26

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	Yes

Bankers Charges Report as per Registry

Corporate identity number of the company	U24219PN1994PTC083328
Name of the company	CIPY POLY URETHANES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	T–127, MIDC, Bhosari Industrial Area, Pune – 411026, Maharashtra, India E-mail: subash@cipypolyurethane.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10048089
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Axis Bank Limited, Corporate Banking Branch, 214/215, 2nd Floor, City Mall, Ganeshkhind Road, Pune – 411007, Maharashtra, India E-mail: Ruchi.Joshi@axisbank.com
Nature of instrument creating charge	Supplemental Deed of Hypothecation dated 5th May 2012
Date of instrument Creating the charge	05.05.2012
Amount secured by the charge	Rs.299.900 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Agreement with the Bank Terms of Repayment As per Agreement with the Bank Margin As per Agreement with the Bank Extent and Operation of the charge Details of Facilities (Rs. in millions): CC 100.000, EPC/PSC (Sub limit of CC) (10.000), TLII 8.400, TL IV 20.000, TL V 18.000, TL VI 65.000, TL VII 18.500, Inland/Import L.C.20.000, BG 35.000, LER (Sub-limit of CC) (4.000), Adhoc CC 15.000, Total Rs.299.900 millions Exclusive charge of Axis Bank and the charge on hypothecated assets and mortgaged properties shall continue till full repayment of Loan.
Short particulars of the property charged	1) All tangible types of movable assets, Plant and Machinery, fixture, Fittings Cranes, Vehicles, computers, furniture lying on premises at T-127, MIDC, Bhosari, Pune or any other place/ godowns or in transit. 2) All movable goods and assets, stock, raw material, semi finished and finished goods. 3) All Present and future Book Debts, Bills, Contracts, Outstanding, Receivables. Mortgage of immovable properties of Company : 1) All that piece and parcel of the properties bearing Plot No. T-127 in Block "T", Bhosari Industrial Area admeasuring 2337 sq. mtrs. along with factory building admeasuring 778.91 sq. mtrs. Constructed on the said land consisting of Office Building, Shed No.1 and Shed NO.2 with Cycle stand situated at Village Pimpri Waghere, Pune. 2) All that piece and parcel of the property/ies bearing Plot No. T-128 in Block "T", Bhosari Industrial Area admeasuring 2242 sq. mtrs. along with factory building of 1137.26 sq. mtrs. Constructed in,"T" Block, Pimpri Industrial Area of MIDC, Village Bhosari, Taluka Haveli,District Pune. 3) All that piece and parcel of land or ground being a contiguous block admeasuring 55 Hectar 21.50 Aar formed of lands/portions admeasuring (i) 00 Hectare 71,.00 Aar from Gat no. 1122 (part) (ii) 00 Hectare 14.50 Aar from Gat no. 1129 (part) iii) 00 Hectare 35.00 Aar from Gat no. 1140 (part) (iv) 40 Hectare 35.00 Aar bearing Gat nos. 1295 (part), Hissa Nos. 1 to 10 and (v) 13 Hectare 66.00 Aar bearing Gat no. 1296, Hissa Nos. 1 to 10 At Village Shirwal, Taluka Khandala, District Satara. Mortgage of immovable property of Subhash Cipy : All that piece and parcel of the land property bearing S. No. 3/2 (Old S. No. 60/2), Plot Hissa No.15 admeasuring about 2790 sq. mtrs. situated at Village Vitthalnagar, Taluka Haveli, Dist. Pune.
Date of latest modification prior to the present modification	19.09.2011
Particulars of the present modification	Company has availed Adhoc Cash Credit Facility of Rs.15.000 millions Now, total limits availed by the Company are Rs.299.900 millions Also, charge on movable goods and assets,both present and future i.e. all stock of raw material, wok in progress, semi finished and finished goods, packing materials, consumable stores and spares, all the present and future book-debts, outstanding monies, receivables, claims, bills, contracts, engagements, securities is extended to secure the Adhoc CC Facility availed by the Company.

FIXED ASSETS

· Land

· Buildings

· Plant and Machinery

· Laboratories Equipments

· Electric Installation

· Transformer

· Furniture and fixture

· Office Equipment

· Vehicles

· Computer

TRADE REFERENCES

· Swathi Engineering Agencies

· B.Y.K – Europe

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.69.74

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		48

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.