MIRA INFORM REPORT

Report Date :

08.09.2012

IDENTIFICATION DETAILS

Name :	BEICO INDUSTRIES PRIVATE LIMITED (w.e.f. 26.03.2008)
Formerly Known As :	BEICO INDUSTRIES LIMITED
Registered Office :	04-01/02, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.01.1980
Com. Reg. No.:	11-022112
Capital Investment/ Paid-up Capital:	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U31100MH1980PTC022112
TAN No.: [Tax Deduction & Collection Account No.]	MUMB11215B
PAN No.: [Permanent Account No.]	AAACB0467B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Electrical Insulating Paper, Enamelled Copper Wires, Commutators, Varnishes and Resins.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 740000
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.

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/ Corporate Office :	04-01/02, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-24938675
Fax No.:	91-22-24938685
E-Mail :	accounts@beicoindustries.com info@beicoindustries.com
Website :	www.beicoindustries.com
Factory :	B-62/2, MIDC, Additional Industrial Area, Ambad, Nasik – 422010, Maharashtra, India

DIRECTORS

As on: 16.09.2011

Name :

Mr. Nikhil Manordas Sanghvi

Designation :

Managing Director

Address :

39, Bharti Manikrao, Lotlikar Marg, Mumbai – 400019, Maharashtra, India

Date of Birth/Age :

09.03.1953

Qualification :

Graduate

Date of Appointment :

01.10.2010

DIN No.:

00381861

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31100MH1980PTC022112	BEICO INDUSTRIES PRIVATE LIMITED	Managing director	01-10-10	16-01-80	-	Active	NO
2	U65990MH1980PTC022704	BEICO INVESTMENTS PRIVATE LIMITED	Director	10-06-80	10-06-80	-	Active	NO
3	U31300MH1973GAP016998	WINDING WIRES MANUFACTURERS ASSOCIATION OF INDIA	Director	29-09-04	29-09-04	-	Active	NO

Name :

Mrs. Divya Nikhil Sanghvi

Designation :

Director

Address :

39, Bharti Manikrao, Lotlikar Marg, Mumbai – 400019, Maharashtra, India

Date of Birth/Age :

21.11.1958

Qualification :

Graduate

Date of Appointment :

23.03.1992

DIN No.:

00381911

Other Directorships :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65990MH1980PTC022704	BEICO INVESTMENTS PRIVATE LIMITED	Director	10-11-80	10-11-80	-	Active	NO
2	U31100MH1980PTC022112	BEICO INDUSTRIES PRIVATE LIMITED	Director	23-03-92	23-03-92	-	Active	NO

Name :

Mr. Dolar Ratilal Koya

Designation :

Director

Address :

45, Tomlin Circle, Burr Ridge, IL - 60521, USA

Date of Birth/Age :

08.10.1936

Qualification :

M.D.

Date of Appointment :

29.09.1997

DIN No.:

01101086

Name :

Mr. Suhrid Nikhil Sanghvi

Designation :

Director

Address :

39/8, Bharati, Sewri Wadala Road, 14A, Kings Circle, Matunga, Mumbai-400019, Maharashtra, India

Date of Birth/Age :

12.07.1982

Qualification :

B.E.

Date of Appointment :

01.11.2009

DIN No.:

02811632

KEY EXECUTIVES

Name :	Ms. Hena
Designation :	Finance Executive
Name :	Mr. Jayant Dangaria
Designation :	Vice President Marketing
E-Mail :	j.dangraia@beicoindustries.com
Name :	Mr. Deepak Dodhiwala
Designation :	Administrative Manager
E-Mail :	deepak.d@beicoindustries.com
Name :	Mr. S.S. Pathak
Designation :	Human Resources Manager
E-Mail :	ss.pathak@beicoindeutries.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 16.09.2011

Names of Shareholders	No. of Shares
Nikhil Sanghvi	976869
Divya Sanghvi	901310
Nikhil Sanghvi, Karta of NMS HUF	469608
Suhrid Sanghvi	712033
Mansi Sanghvi	666
Michelle Sanghvi	468847
Beico Investments Private Limited, India	719367
Pankaj Parekh	1333
Natvarlal Vora	1000
Parag Vora	2084
Janak Vora	1667
Madhusudan M Vora	2084
Devang Vora	1667
Mayank Shah	625
Mukesh K Shah	1674
Ilupa M Shah	1250
Mukesh K Shah	3350
Nalini Mogul	2671
Jayant Sanghvi	6676
Kiran Sanghvi	3339
Rasikla Sanghvi	6676
Bhanu S Desai	2500
Anant P Kamerkar	5024
Manish Bajaj	2234
Ishita Gandhi	434
Tushar Gandhi	434
Anil Gandhi	347
Biren Vora	8884
Rekha Mehta	2000
Rekha Mehta	2000
Bhanoo Desai	2000
Natubhai Parekh	2227
Dolly Lazar	133
Deepak Dodhiwala	2000
Ashok Khadapkar	300
Shankarnand Pathak	400
Dilip Shelar	334
Shantaram Lohar	334
Vilas Ekhande	125
Balasaheb Kurkute	166
Nila Chandarana	445078
Dolar Koya	111278
Dolar Koya	111278
Sachin Mehta	4019
Rajnikant Sanghvi	1000
Mehul Sanghvi	2000
Bharat Sanghvi	1000
Arun Sanghvi	1000
Jayshree Sanghvi	4000
Neil Sanghvi	1000
Jayant Dangaria	1675
Total	5000000

Equity Share Break up (Percentage of Total Equity)

As on: 16.09.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	13.63
Bodies corporate	14.39
Directors or relatives of directors	70.67
Other top fifty shareholders	1.31
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Electrical Insulating Paper, Enamelled Copper Wires, Commutators, Varnishes and Resins.

Products :

Product Description	Item Code
Electrical Insulating Material	8546.9
Electrical Insulating Paper	4811.9
Enameled Copper Wire	8544.9

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Electrical Grade Insulating Paper Composites	MT	NA	1500	561.932
Enameled Copper Wire	MT	NA	2000	490.633
Wire Drawing and Enamelling Machine	Nos.	100	20	1*

Note: *Includes for Capitalisation

GENERAL INFORMATION

Customers :

· ABB

· Areva

· Alstom

· BHEL

· Bosch

· Generator Technologies

· S and S Electric

· Emerson

· Havell’s

· Indian Railways

· L and T

· LECS

· Voltamp

· Siemens

· Schneider Electric

· Suzlon

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda-390015, Gujarat, India

· Citi Bank N.A., Trent House, 2nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	15.500	29.500
Working capital loans banks secured	58.944	50.846
Loans taken for vehicles secured	8.559	3.060
Total	83.003	83.406
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	23.689	29.065
Other debt unsecured	51.049	47.530
Total	74.738	76.595

Banking Relations :	--
Auditors :
Name :
Address :	Gunderia and Company Chartered Accountants
Tel. No.:	1011, Stock Exchange Tower, Dalal Street, Fort, Mumbai-400001, Maharashtra, India
Mobile No.:	91-22-66335350
PAN No.:	AAAFG2905L
Related Parties :	· Beico Investments Private Limited CIN No. U65990MH1980PTC022704

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Share	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Share	Rs.10/- each	Rs.50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.063.2009
SHAREHOLDERS FUNDS
1] Share Capital		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		135.308	102.190	90.032
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		185.308	152.190	140.032
LOAN FUNDS
1] Secured Loans		83.003	83.406	69.731
2] Unsecured Loans		74.738	76.595	80.059
TOTAL BORROWING		157.741	160.001	149.790
DEFERRED TAX LIABILITIES		11.544	12.417	13.778
TOTAL		354.593	324.608	303.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		170.803	195.020	215.067
Capital work-in-progress		4.156	5.872	8.386
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	119.020	75.877	60.870
	Sundry Debtors	107.285	86.484	53.997
	Cash & Bank Balances	7.321	4.892	3.812
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	46.689	35.267	30.959
Total Current Assets		280.315	202.520	149.638
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	58.641	38.957	46.885
	Other Current Liabilities	12.435	10.343	7.027
	Provisions	29.605	29.504	15.677
Total Current Liabilities		100.681	78.804	69.589
Net Current Assets		179.634	123.716	80.049
MISCELLANEOUS EXPENSES		0.000	0.000	0.098
TOTAL		354.593	324.608	303.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.063.2009
	SALES
		Income	683.420	578.670	452.680
		Other Income	14.310	3.180	4.670
		TOTAL (A)	697.730	581.850	457.350
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	576.330	483.350	384.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		121.400	98.500	72.850
Less	FINANCIAL EXPENSES (D)		14.770	17.350	20.370
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		106.630	81.150	52.480
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.290	26.250	27.820
	PROFIT BEFORE TAX (E-F) (G)		82.340	54.900	24.660
Less	TAX (H)		25.950	19.270	8.210
	PROFIT AFTER TAX (G-H) (I)		56.390	35.630	16.450
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		52.650	43.900	43.530
Less/ Add	EXCESS / SHORT PROVISION FOR TAX FOR EARLIER YEARS		0.100	0.000	0.190
Less	APPROPRIATIONS
		Transfer to General Reserve	5.640	2.560	1.650
		Dividend	3.240	3.320	2.120
		Tax on Dividend	20.000	20.000	12.500
	BALANCE CARRIED TO THE B/S		80.260	52.650	43.900
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11.290	10.440	6.450
	TOTAL EARNINGS		11.290	10.440	6.450
	IMPORTS
		Raw Materials	154.159	110.766	39.793
		Packing Material / Stores and Spares	2.076	0.000	0.114
	TOTAL IMPORTS		156.235	110.766	39.907
	Earnings Per Share (Rs.)		11.28	7.13	3.30

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.063.2009
PAT / Total Income	(%)	8.08	6.12	3.60
Net Profit Margin (PBT/Sales)	(%)	12.05	9.49	5.45
Return on Total Assets (PBT/Total Assets}	(%)	18.25	13.81	6.76
Return on Investment (ROI) (PBT/Networth)		0.44	0.36	0.18
Debt Equity Ratio (Total Liability/Networth)		1.39	1.57	1.57
Current Ratio (Current Asset/Current Liability)		2.78	2.57	2.15

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	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

REVIEW OF OPERATIONS:

Gross Revenues of the Insulation Division rose by about 3% to Rs.396.000 Millions from Rs.385.000 Millions in the previous year.

Due to growth in domestic demand, Sales of Enamelled Copper wires rose by 36% in Volume terms (from 347.1 MT to 472.3 MT) and in Value from Rs.172.400 Millions to Rs. 277.900 Millions.

Overall this resulted in the Company ending the year with Total Gross Revenues higher by about 18 % to Rs. 683.000 Millions from Rs. 579.000 Millions

in the previous year.

CURRENT YEARS OUTLOOK:

Gross Revenues in the first four months of the current year were lower by about 7 % as compared to the previous year (Rs.218.000 Millions as against Rs.234.000 Millions in the previous year). The trend is likely to be continued because of the gradual rise in the interest rates coupled with slow consumer demand. This financial year they are gearing up internal systems to manage growth to 100 tons a month with increasing penetration in neighbouring states, which will add in additional revenues.

On the forefront they have started construction of a 40000 sq ft, production facility in Gonde for enamelled wire up-to 2.24mm. They have ordered the machine and they should start production by end of this financial year.

With this additional range they will cover the motor and transformer industry and Beico will establish itself as solution provider for wire and insulation products.

Machine Division Continues to develop new-technology to reduce manufacturing costs and increase efficiency in manufacturing processes. The development of Ultra fine wire enamelling machine is completed and trials are expected to commence shortly.

This machine will add the range of wire production from 0.015 mm to 0.035mm. This will establish BEICO as one of the most advanced machine manufacturers in the enamelled wire industry world-wide.

Additionally they are exploring possibility to set up a sales depot at Vapi, to deliver their customers in Gujarat material at short instance.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U31100MH1980PTC022112
Name of the company	BEICO INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	04-01/02, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India E-mail: accounts@beicoindustries.com
This form is for	Modifications of charges
Charge identification (ID) number of the charge to be modified	90231276
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Citi Bank N.A., Trent House, 2nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India E-mail: vlaxman@vsnl.com
Nature of instrument creating charge	Deed of Modification
Date of instrument Creating the charge	03.09.2010
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest to be charged at such rate/s as may be determined 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 Charge over current assets and movable fixed assets shall rank on first pari passu basis with the charges created / to be created by the company in favour of State Bank of India to the extent of Rs.36.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Pari Passu charge on current assets and movable fixed assets of the Company, both present and future.
Date of instrument modifying the charge	25.01.2008
Particulars of the present modification	The total amount secured now stands enhanced from Rs.60.00 Millions to Rs.100.000 Millions.

Fixed Assets:

• Freehold Land
• Leasehold Land
• Building
• Flat
• Plant and Machinery
• Intangible Asset
• Furniture and Fixtures
• Computers
• Motor Cars

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.55.52
UK Pound	1	Rs.88.49
Euro	1	Rs.70.20

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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

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

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

RATING EXPLANATIONS

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

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

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