MIRA INFORM REPORT

Report Date :

03.09.2012

IDENTIFICATION DETAILS

Name :	GAJUMAL MULCHAND FRUIT PRIVATE LIMITED
Registered Office :	24, New Fruit Market Naroda Road, Ahmadabad – 380025, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.03.1997
Com. Reg. No.:	04-031978
Capital Investment / Paid-up Capital :	Rs.2.500 Millions
CIN No.: [Company Identification No.]	U15499GJ1997PTC031978
Legal Form :	Private Limited Liability Company
Line of Business :	Subject acts as an Importer and Commission Agent of Fruits.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 64000
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.

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. Vishal Ramchand Vadhwa
Designation :	Director
Contact No.:	91-79-22204120
Date :	03.09.2012

LOCATIONS

Registered Office :	24, New Fruit Market Naroda Road, Ahmadabad - 380025, Gujarat, India
Tel. No.:	91-79-22204120/ 22204122
Mobile No.:	91-9879761377 (Mr. Lakhmichand Vadhwa) 91-9879761477 (Mr. Ramchand Vadhwa) 91-9879761677 (Mr. Vihal Vadhwa) 91-9825604877 (Mr. Dhiraj Vadhwa)
Fax No.:	91-79-22204993
E-Mail :	gm_fruits@yahoo.com
Location :	Owned

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Ramchand Gajumal Wadhwa
Designation :	Director
Address :	9/A, Shrinagar Society, B/H. Telecom Colony, Bhairavnath Road, Maninagar, Ahmadabad – 380 022, Gujarat, India
Date of Birth/Age :	06.11.1961
Date of Appointment :	26.03.1997
DIN No :	00431833
Name :	Mr. Dhiraj Ramchand Vadhwa
Designation :	Director
Address :	9/A, Shrinagar Society, B/H. Telecom Colony, Bhairavnath Road, Maninagar, Ahmadabad - 380 022, Gujarat, India
Date of Birth/Age :	26.12.1982
Date of Appointment :	01.11.2000
DIN No.:	00432155
Name :	Mr. Vishal Ramchand Vadhwa
Designation :	Director
Address :	9/A, Shrinagar Society, B/H. Telecom Colony, Bhairavnath Road, Maninagar, Ahmadabad - 380 022, Gujarat, India
Date of Birth/Age :	24.12.1984
Date of Appointment :	05.03.2007
DIN :	01828052
Name :	Mr. Lakhmichand Gajumal Wadhwa
Designation :	Director
Address :	9/A, Shrinagar Society, B/H. Telecom Colony, Bhairavnath Road, Maninagar, Ahmadabad - 380022, Gujarat, India
Date of Birth/Age :	05.02.1951
Date of Appointment :	26.03.1997
DIN No.:	00432300

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Lakhmichand Gajumal Vadhwa Preeti Vijay Chawla	2760
Barkha Chandwani Poonam Chandwani	100
Ramchand Gajumal HUF Vishal Ramchand	1310
Hemandas Alkhdinomal C/O. H.B. Traders	100
Dhiraj Ramchand HUF Dhiraj Ramchand Vadhwa	1100
Kanaiyala Gajumal HUF Srunali Kanaiyalal Vadhwa Ansita Kanaiyalal	1300
Pushpa Agarwal Abhishek Agarwal	10
Kishanchand Hiranand HUF Rajni Kishanchand Ajay Kishanchand	10
Rajivbhai R. Rajiv Brothers and Company	80
Ashokbhai C/o. Ashok Traders Mamta Ajay Kundani	10
Vikram M. Sejani Chandra Sejani	10
Ganshyam Bachubhai HUF Ganshyam Bachubhai	10
Dharamdas Gidwani Shital Gidwani Prashant Gidwani	10
Lachhumal Govidndram HUF	10
Kamlesh Bachubhai HUF Kamlesh Bachubhai	10
Gangaram Triakamdas	10
Renu Chandwani Janki Chnadwani Vinu Chandwani	10
Vinay Gidwani C/o. D.V. Imports Vinay Gidwani Raghav Traders	10
Hemantkumar HUF	10
Satish Narayandas	10
Deepak Gidwani C/o. IFC International	10
Ramesh P Variyani Radhaben P. Variyani Ramesh P. Variyani C/o. Sanskruti A Ladies Shop	10
Sanjay S. Puraswani	10
Hundraj Govindram Devnani Deepak Hundraj Devnani Poonam Hundraj Devnani	10
Niru Gidwani Bhavesh Gidwani	10
Aditi Gidwani Kanisha Gidvani	10
Ramesh Gahimal C/o. D.R. Fabric	10
Tolaram Jaisinghani	10
Ishwar T. Baksani Poonam Bakshani	10
Sumit Gidwani C/o. Gangaram Mulchand and Company	10
Sumit Gidwani HUF Sumit Gidwani	10
Sangita Kantilal Porwal Ratnaben Ambalal Porwal	10
The Ahmedabad Wholesale Fruit Merchant Association	10
S. Nareshkumar	10
Harichand Gidwani HUF Harichand T. Gidwani Madhu Gidwani	10
Nitesh Devendas Udernani	10
S.K. Bhatia HUF S.K. Bhatia Sonia Bhatia S.K. Bhatia HUF C/o. M.S. Electronics	10
Manoj Bhatia Yamini bhatia	10
Amit Gidwani HUF Amit Gidwani	10
Gajumal Mulchand HUF	81000
Lakhmichand Gajumal HUF	1600
Gajumal Family Trust Vadhwa Family Trust Shantaben Family Trust	100010
Mohiniben Lakhmichand	1100
Ashmi Dhiraj Vadhwa	15000
Sunita Kanaiyalal Vadhwa	21100
Aartiben Ramchand Vadhwa	21100
Ramchand D. Chandwani Arunkumar R. Chandwani	10
Ramchand Gajumal Vadhwa	1000
Kaniyalal Gajumal Vadhwa	1000
Kishanchand Devendani Udernani	10
Total	250000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	99.80
Other top fifty shareholders	0.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject acts as an Importer and Commission Agent of Fruits.
Imports :
Products :	Fruits
Countries :	· USA · China · Sri Lanka
Terms :
Selling :	Cash and Credit (30-60 days)
Purchasing :	L/C, Cash and Credit (30-60 days)

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

35 (Approximately)

Bankers :

· State Bank of India

Naroda Road Branch, Naroda, Ahmedabad - 380025, Gujarat, India

· HDFC Bank Limited

HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, Indi

· HDFC Bank

Ahmedabad Main Branch, Gujarat, India

· Jammu and Kashmir Bank Limited

· State Bank of India

· The Vijay Co-operative Bank Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
HDFC Bank Limited (Secured against hypothecation of stock, book debts, other current receivable and personal guarantee of directors of the director of the company and further secured by way of equitable mortgage of personal properties of directors and relatives of directors)	79.609	89.582
Total	79.609	89.582
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	14.619	14.092
From Shareholders and Relatives of Directors	79.796	70.083
Total	94.415	84.175

Banking Relations :	--
Auditors :
Name :	Khimani and Company Chartered Accountants
Address :	222/1, Opposite Kadia Building, Rajaji Ni Pole, Shahpur, Ahmadabad – 380001, Gujarat, India
Mobile No.:	91-9374022455
Email :	caayaz_khimani2009@yahoo.co.in
PAN :	ASBPK1984G

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 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		2.500	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13.417	9.861	6.936
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.917	12.361	9.436
LOAN FUNDS
1] Secured Loans		79.609	89.582	27.976
2] Unsecured Loans		94.415	84.175	101.016
TOTAL BORROWING		174.024	173.757	128.992
DEFERRED TAX LIABILITIES		0.001	0.000	0.000
TOTAL		189.942	186.118	138.428
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.999	2.361	1.252
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		0.000	0.166	0.163
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	150.307	116.813	86.922
	Cash & Bank Balances	6.336	6.714	8.951
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	100.037	78.463	63.368
Total Current Assets		256.680	201.990	159.241
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	77.260	16.927	21.178
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.482	1.477	1.065
Total Current Liabilities		78.742	18.404	22.243
Net Current Assets		177.938	183.586	136.998
MISCELLANEOUS EXPENSES		0.000	0.000	0.010
TOTAL		189.942	186.118	138.428

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	149.700	0.000	0.000
		Income from Operations	30.346	30.553	21.781
		Other Income	0.087	0.100	6.692
		TOTAL (A)	180.133	30.653	28.473
Less	EXPENSES
		Purchases	142.966	0.000	0.000
		Direct Expenses	1.979	1.880	1.591
		Employment Costs	4.638	3.286	2.715
		Administrative and General Expenses	2.496	2.583	2.090
		Business Loss / Bad Debts	0.00	0.000	6.144
		Director’s Remuneration	1.416	1.416	1.279
		Preliminary Expenses W/Off	0.000	0.011	0.011
		TOTAL	153.495	9.175	13.830
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.638	21.478	14.643
Less	FINANCIAL EXPENSES (D)		20.295	16.499	11.264
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.343	4.979	3.379
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.133	0.516	0.412
	PROFIT BEFORE TAX (E-F) (G)		5.210	4.463	2.967
Less	TAX (H)		1.654	1.538	0.955
	PROFIT AFTER TAX (G-H) (I)		3.556	2.925	2.012
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.318	0.393	0.381
Less	APPROPRIATIONS
		Transfer to General Reserve	2.000	2.000	2.000
	BALANCE CARRIED TO THE B/S		2.874	1.318	0.393
	Earnings Per Share (Rs.)		14.22	6.15	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.97	9.54	7.07
Net Profit Margin (PBT/Sales)	(%)	3.48	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	1.94	2.18	1.85
Return on Investment (ROI) (PBT/Networth)		0.33	0.36	0.31
Debt Equity Ratio (Total Liability/Networth)		15.88	15.54	16.03
Current Ratio (Current Asset/Current Liability)		3.26	10.97	7.16

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Creditors for Goods	6.354	14.208	19.887
- Creditors for Expenses and others	70.906	2.719	1.291
Total	77.260	16.927	21.178

PARTIAL DETAILS

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Creditors for Expenses and Others
Hutch	0.007
Torrent Power Limited	0.028
HDFC Import Bill Amt Payable	68.859
Bharat Sanchar Nigam	0.004
Eskay Logistics – Mumbai	0.637
Reliance Hello – Bill Payable	0.000
Khimani and Company	0.047
ECB Indi C/o Apexa Parmar	0.011	2.719	1.291
APMC payment A/c	0.396
Sundry Debtors – Credit Balance	0.068
Professional Feed – TDS	0.029
Interests TDS Payable	0.817
Salary TDS Payable	0.002
Contractor Sub Contractor TDS	0.001
Tata Indicom	0.000
Total	70.906	2.719	1.291

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	No
18]	Major customers	No
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

FUTURE PROSPECTS

The company expects that the market of their product will improve in the near future.

FORM 8

Corporate identity number of the company	U15499GJ1997PTC031978
Name of the company	GAJUMAL MULCHAND FRUITS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	24 New Fruit Market, Naroda Road, Ahmadabad, Gujarat, India gm_fruits@yahoo.com
This form is for	Modification of charge
Charge identification number of the charge to be modified	10230557
Type of charge	§ Immovable Property
Particular of charge holder	HDFC Bank Limited HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India CIN No.: L65920MH1994PLC080618 Email : rbbform8@hdfcbank.com
Nature of instrument creating charge	Memorandum recording past transactions of creation of Mortgage by Deposit of Title Deeds.
Date of instrument Creating the charge	15/12/2011
Amount secured by the charge	Rs. 265.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest Interest at the rate as may be communicated by the Bank from time to time. Terms of repayment On Demand Margin As may be stipulated by the Bank from time to time. Extent and operation of the charge The Company accorded & gave oral consent to Bank to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as stated under Item No.15 below, as security for repayment of Rs.265.000 Millions by the Company, together with principal, interest, liquidated damages, costs, charges and expenses.
Short particulars of the property charged (Including location of the property)	Shop No.24, admeasuring 87.22 sq.mtrs in the Anant Co-operative Industrial Estate Limited, on the land bearing Final Plot No.48/P, 50, 52 all paiki, of T P Scheme no 12 int the sim of Mouje Asarva of Taluka: City, District Ahmedabad. Shop No.34, admeasuring 87.22 sq.mtrs in the Anant Co-operative Industrial Estate Limited, on the land bearing Final Plot No.48/P, 50, 52 all paiki, of T. P. Scheme No.12 in the sim of Mouje Asarva of Taluka: City, District Ahmedabad. Shop No.86, admeasuring 87.22 sq. mtrs in the Anant Co-operative Industrial Estate Limited, on the land bearing Final Plot No.48/P, 50, 52 and 65 all paiki, of T. P. Scheme No.12 in the sim of Mouje Asarva of Taluka: City, District Ahmedabad Shop No.87, admeasuring 96.99 sq. mtrs. in the Anant Co-operative Industrial Estate Limited, on the land bearing Final Plot No.48/P, 50, 52 and 65 all paiki, of T. P. Scheme No.12 in the sim of Mouje Asarva of Taluka: City, Dist Ahmedabad Plot No. A/9 (paiki) admeasuring 286 sq. yard, together with superstructure being Basement, Ground Floor, Second Floor Cabin, Scheme known as "G.M Complex" in the fruit Merchant Shops and warehousing Co-operative Society Limited, situated on the Land bearing Final Plot No 49 Paiki, of T P Scheme no 12 in the sim of Mouje Asarva of Taluka : City, District Ahmedabad
Particulars of the present modification	The charge shall now stand increased from Rs.180.000 Millions to Rs.265.000 Millions in favour the Bank against the equitable mortgage of immovable property at Ahmedabad.

FIXED ASSETS:

· Vehicles

· Electrical Equipments

· Computer

· Furniture and Fixtures

· Office Equipments

· Telecom Equipments

· Air Conditioners

· Generators

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 records 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.55.72
UK Pound	1	Rs.87.95
Euro	1	Rs.69.66

INFORMATION DETAILS

Information Gathered by :	JML
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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.