MIRA INFORM REPORT

Report Date :

04.04.2013

IDENTIFICATION DETAILS

Name :	GANPATI PLASTFAB LIMITED
Registered Office :	334, Shekhawat Mansingh Block, Nemi Sagar Colony, Queens Road, Jaipur – 302 016, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.12.1984
Com. Reg. No.:	17-003152
Capital Investment / Paid-up Capital :	Rs.28.341 millions
CIN No.: [Company Identification No.]	U25209RJ1984PLC003152
PAN No.: [Permanent Account No.]	AAACG6255E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of HDPE/PP Woven Fabric/ Bags.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 367000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loans: BB+ (Suspended)
Rating Explanation	Moderate risk of default (Reason for suspension – Absence of the requisite information from the company)
Date	May, 2012

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 :	334, Shekhawat Mansingh Block, Nemi Sagar Colony, Queens Road, Jaipur – 302 016, Rajasthan, India
Tel. No.:	91-141-5182038/ 4023650
Fax No.:	91-141-2373371
E-Mail :	mail@gpl.co.in
Administrative Office :	UL-7, Amber Tower, S.C. Road, Jaipur – 302 001, Rajasthan, India
Tel. No.:	91-141-2361984/ 2361716/ 2361884
Factory 1 :	C-58 (B), Road No.2D, RIICO Industrial Area, Bindayaka, Jaipur, Rajasthan, India
Factory 2 :	A-200, RIICO Industrial Area, Extension-II, Bagru, Jaipur, Rajasthan, India

DIRECTORS

As on 15.09.2012

Name :	Mr. Ashok Kumar Pabuwal
Designation :	Managing Director
Address :	334, Nemi Sagar, Vaishali Nagar, Jaipur, Rajasthan, India
Date of Birth/Age :	07.09.1954
Qualification :	Graduate
Date of Appointment :	04.12.1984
DIN No.:	00183513
PAN No.:	ACGPP1660H
Name :	Mr. Pradeep Saraf
Designation :	Director
Address :	R-6, Tilak Marg, C Scheme, Jaipur – 302 001, Rajasthan, India
Date of Birth/Age :	11.04.1955
Qualification :	Graduate
Date of Appointment :	03.12.1994
DIN No.:	00183606
Name :	Mr. Mahendra R. Saraf
Designation :	Director
Address :	R-6, Tilak Marg, C Scheme, Jaipur – 302 001, Rajasthan, India
Date of Birth/Age :	15.08.1947
Qualification :	Graduate
Date of Appointment :	08.10.1994
DIN No.:	00183642
Name :	Mr. Satish Chand Gupta
Designation :	Director
Address :	A-513, Malviya Nagar, Opposite to Engineering College, Jaipur – 302 017, Rajasthan, India
Date of Birth/Age :	05.06.1949
Qualification :	Graduate
Date of Appointment :	01.06.2010
DIN No.:	01552279
PAN No.:	ACSPG2297B
Name :	Mr. Ankur Pabuwal
Designation :	Whole-Time director
Address :	334, Shekhawat Mansingh Block, Nemi Sagar Colony, Queens Road, Jaipur – 302 016, Rajasthan, India
Date of Birth/Age :	26.11.1979
Qualification :	Graduate
Date of Appointment :	20.09.2010
DIN No.:	02956493
Name :	Mr. Deepak Bhargava
Designation :	Director
Address :	D-197,Hanuman Nagar, Vaishali Nagar, Jaipur – 302 021, Rajasthan, India
Date of Birth/Age :	25.01.1964
Qualification :	Graduate
Date of Appointment :	01.06.2010
DIN No.:	03020789
PAN No.:	ACGPB4927R
Name :	Mr. Mukund Agarwal
Designation :	Director
Address :	236, Nemi Sagar, Vaishali Nagar, Khatipura Road, Ward No.3, Jaipur – 302 021, Rajasthan, India
Date of Birth/Age :	25.07.1976
Qualification :	Graduate
Date of Appointment :	01.06.2010
DIN No.:	03129019
PAN No.:	AAXPA9366J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 15.09.2012

Note:

Shareholding details file attached.

As on 15.09.2012

Equity Share Breakup	Percentage of Holding
Category
Mutual funds	2.27
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	3.87
Bodies corporate	12.55
Directors or relatives of directors	52.60
Other top fifty shareholders	7.00
Others	21.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of HDPE/PP Woven Fabric/ Bags.

Products :

Item Code No. (ITC Code)	3923
Product Description	PP Woven Circular Bags/Sacks

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	2010-11
Licensed Capacity	Not Applicable
Installed Capacity	9680 MT of HDPE/PP Fabric/Bags/ p.a.
Production
HDPE/PP Bags (000'S Nos.)	70894

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Bikaner and Jaipur, Industrial Finance Branch, 2^nd Floor, Tambi Tower, S.C. Road, Jaipur – 302 001, Rajasthan, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
From Bank
Term Loans	55.643	54.194
SHORT-TERM BORROWINGS
Loans repayable on demand from banks (Equitable Mortgage of Land and Building and hypothecation)	29.313	25.109
Loans repayable on demands
From Banks (Working capital loan Secured by Equitable Mortgage of Land and Building and hypothecation of all tangible moveable machineries and stock of finished goods raw materials and work in process and book debts and also personally guaranteed by directors.)
Total	84.956	79.303

Nature of Security and terms of repayment for Long Term secured borrowings:

Nature of Security	Terms of Repayment
i. Term loan amounting to Rs.NIL (March 31, 2011: Rs.1.547 millions) is secured by Exclusive and specific charge on the assets acquired under the loan for plant at Bindayaka, Jaipur and also personally guaranteed by directors.	Repayable in 72 monthly installments commencing from September, 2006 to October, 2012
ii. Term loan amounting to Rs.45.518 millions (March 31, 2011 Rs.52.618 millions) is secured by pari passu charge on the entire immovable assets at Bagru, Jaipur Plant and exclusive first charge on the entire movables assets acquired out of the loans and also personally guaranteed by directors.	Repayable in 32 Quarterly installments commencing from October, 2011 to September, 2019
iii. Term loan amounting to Rs.9.774 millions (March 31, 2011: Rs.NIL) is secured by Exclusive and specific charge on the assets acquired under the loan for plant at Bagru, Jaipur and also personally guaranteed by directors.	Repayable in 29 Quarterly installments commencing from December, 2012 to December, 2019.

Banking Relations :	--
Auditors :
Name :	Jain Sharma and Company Chartered Accountants
Address :	303, Shyam Anukampa, O-11, Ashok Marg, C-Scheme, Jaipur, Rajasthan, India
Income-tax PAN of auditor or auditor's firm :	AAAFJ7542A

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 millions

Subscribed Capital :

No. of Shares	Type	Value	Amount
2660600	Equity Shares	Rs.10/- each	Rs.26.606 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
2660600	Equity Shares	Rs.10/- each	Rs.26.606 millions
	Add: Forfeited Shares		Rs.1.735 millions
	Total		Rs.28.341 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		28.341	28.341	28.329
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		63.428	50.263	45.195
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		91.769	78.604	73.524
LOAN FUNDS
1] Secured Loans		84.956	79.303	33.313
2] Unsecured Loans		23.941	21.376	16.876
TOTAL BORROWING		108.897	100.679	50.189
DEFERRED TAX LIABILITIES		8.510	7.655	5.668
TOTAL		209.176	186.938	129.381
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		134.244	130.879	74.626
Capital work-in-progress		2.572	0.000	8.525
INVESTMENT		2.049	2.068	2.149
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.079	32.173	13.079
	Sundry Debtors	67.559	38.558	41.660
	Cash & Bank Balances	5.498	0.759	6.265
	Other Current Assets	0.541	0.514	0.000
	Loans & Advances	9.446	14.444	13.874
Total Current Assets		115.123	86.448	74.878
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.863	19.527	27.911
	Other Current Liabilities	13.745	10.366	1.660
	Provisions	4.204	2.564	1.226
Total Current Liabilities		44.812	32.457	30.797
Net Current Assets		70.311	53.991	44.081
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		209.176	186.938	129.381

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	707.971	472.488	395.431
		Other Income	0.303	2.905	1.913
		TOTAL (A)	708.274	475.393	397.344
Less	EXPENSES
		Cost of materials consumed	522.013	361.413	373.970
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	1.169	(11.059)
		Employee benefit expense	24.125	17.254
		Other expenses	117.540	83.647
		TOTAL (B)	664.847	451.255	373.970
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		43.427	24.138	23.374
Less	FINANCIAL EXPENSES (D)		11.286	6.162	3.469
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		32.141	17.976	19.905
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.921	9.048	6.538
	PROFIT BEFORE TAX (E-F) (G)		19.220	8.928	13.367
Less	TAX (H)		6.055	3.865	3.852
	PROFIT AFTER TAX (G-H) (I)		13.165	5.063	9.515
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.797	31.734	22.219
	BALANCE CARRIED TO THE B/S		49.962	36.797	31.734
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	105.103	44.884	34.064
	TOTAL EARNINGS		105.103	44.884	34.064
	CIF VALUE OF IMPORT		3.468	4.351	11.023
	Earnings Per Share (Rs.)		4.95	1.90	3.36

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.86	1.07	2.39
Net Profit Margin (PBT/Sales)	(%)	2.71	1.89	3.38
Return on Total Assets (PBT/Total Assets}	(%)	7.71	4.11	8.94
Return on Investment (ROI) (PBT/Networth)		0.21	0.11	0.18
Debt Equity Ratio (Total Debt/Networth)		1.19	1.28	0.68
Current Ratio (Current Asset/Current Liability)		2.57	2.66	2.43

LOCAL AGENCY FURTHER INFORMATION

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	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	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Deferred payment liabilities (Sales Tax Scheme) (Repayable in 35 monthly installment from April-2013)	16.082	16.082
SHORT-TERM BORROWINGS
Loans repayable on demand from others
From Other Parties
- From Companies	1.500	1.500
- From LIC	2.359	0.794
Loans and advances from related parties
- From Director	4.000	3.000
Total	23.941	21.376

OPERATIONS:

The Company has recorded turnover of Rs.707.971 millions as against Rs.516.642 millions in last year. The Net Profit of the company is Rs.13.165 millions against Rs.5.063 millions in last year. The company is expecting better results in current year looking to the optimum utilisation of capacity of Bagru unit.

EXPANSION PROJECT

Company has set up a new manufacturing unit at A-200, RIICO Industrial Area, Ext-II, Bagru, Jaipur for manufacturing of PP/HDPE Woven Sacks. Company has installed 22 more looms and started commercial operation of the same. Now there are total 52 Looms are in operation are running at their optimum capacity.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2012)

(a) Claims against the company not acknowledged as debt Rs.10.139 millions

(b) Guarantee given to Excise Department of Rs.11.000 millions

Bankers Charges Report as per Registry

Corporate identity number of the company	U25209RJ1984PLC003152
Name of the company	GANPATI PLASTFAB LIMITED
Address of the registered office or of the principal place of business in India of the company	334, Shekhawat Mansingh Block, Nemi Sagar Colony, Queens Road, Jaipur – 302 016, Rajasthan, India E-Mail: mail@gpl.co.in
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of Bikaner and Jaipur, Industrial Finance Branch, 2^nd Floor, Tambi Tower, S.C. Road, Jaipur – 302 001, Rajasthan, India E-Mail: rpkhandelwal@sbbj.co.in
Nature of description of the instrument creating or modifying the charge	Sanction Letter Dated: 20.10.2012 Letter Regarding the Grant of Individual Limits within the overall limit Supplement Agreement of hypothecation of Goods and Assets for increase in overall limit Supplement Agreement of Loan for Increase in the Overall Limit Supplement deeds of Guarantee for increase in overall limit
Date of instrument Creating the charge	27.11.2012
Amount secured by the charge	Rs.8.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 2.75% above base rate i.e. 13.00% p.a. Terms of Repayment: Loan shall be paid in 23 equal quarterly installments of Rs.0.333 million and last installment of Rs.0.341 million. First installment will fall due after 12 months from the date of disbursement. Margin: Land and Buildings/ Plant and machinery - 29.97% for fresh term loan of Rs.8.000 millions Extent and Operation of the charge: First charge by way of hypothecation of company's moveable fixed assets and plant and machinery, both present and future and entire current assets such as raw material, stock-in-process, stores and spares, Finished goods, Semi-finished goods, receivables, other current assets and fixed assets, both present and future. EM of Factory Land and Building situated at C-58 (B), Road No.2D, RIICO Industrial Area, Bindayaka, and A-200, RIICO Industrial Area Extension-II, Bagru, Jaipur to secure Term Loan of Rs.8.000 millions Others: Equitable Mortgage of Office premises at UL-7, Amber Tower, S.C. Road, Jaipur to secure term loan of Rs.8.000 millions.
Short particulars of the property charged	First charge by way of hypothecation of company's moveable fixed assets and plant and machinery, both present and future. First charge by way of hypothecation over company's entire current assets such as raw material, stock-in-process, stores and spares, Finished goods, Semi-finished goods, receivables, other current assets Equitable Mortgage of Factory Land and building at C-58(B), Road No.2D, RIICO Industrial Area, Bindayaka, Jaipur. Equitable Mortgage of Office Premises at UL-7, Amber Tower, S.C. Road, Jaipur. Equitable Mortgage of Factory land and Building at A-200, RIICO Industrial Area Extension-II, Bagru, Jaipur Rajasthan ad measuring 9912.50 sq. mtr. First charge by way of hypothecation over entire fixed assets to the company present and future. Loan is also personally guaranteed by the directors.

FIXED ASSETS:

Tangible Assets

· Leasehold Land

· Building

· Plant and Machinery

· Office Equipments

· Furniture and Fixture

· Vehicles

Intangible Assets

· Computer Software

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 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.54.39
UK Pound	1	Rs.82.05
Euro	1	Rs.69.59

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.