MIRA INFORM REPORT

Report Date :

06.08.2013

IDENTIFICATION DETAILS

Name :	ANSALDOCALDAIE BOILERS INDIA PRIVATE LIMITED
Registered Office :	ASV Adarsh, Door No.719, Block C, 1^st and 3^rd Floor, Pathari Road, Chennai – 600 002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.02.2005
Com. Reg. No.:	18-055309
Capital Investment / Paid-up Capital :	Rs.500.000 millions
CIN No.: [Company Identification No.]	U28123TN2005PTC055309
PAN No.: [Permanent Account No.]	AAFCA0623B
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in manufacturing industrial boilers, power utility steam boilers and Engineering, Procurement and Construction (EPC) related to power utilities.
No. of Employees :	144 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 2338000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profit margin and reserves of the company appears to be low. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Facilities: B
Rating Explanation	High risk of default.
Date	26.03.2013

Rating Agency Name	CARE
Rating	Short Term Facilities: A4
Rating Explanation	Minimal degree of safety and higher credit risk.
Date	26.03.2013

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 DECLINED

Management non-cooperative

(Tel. No.: 91-44-45920101)

LOCATIONS

Registered Office :	ASV Adarsh, Door No.719, Block C, 1^st and 3^rd Floor, Pathari Road, Chennai – 600 002, Tamilnadu, India
Tel. No.:	91-44-45920101
Fax No.:	91-44-45920100
E-Mail :	info@ansaldoboiler.in

DIRECTORS

AS ON 29.09.2012

Name :

Mrs. Barbara Ellen Lefebvre

Designation :

Managing director

Address :

1, Trivanne Plat, Crawley, RH107TW, United Kingdom

Date of Birth/Age :

28.12.1955

Qualification :

Bachelor Chemical Engineering

Date of Appointment :

06.05.2011

DIN No.:

01622199

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51505DL1996PTC203860	DOOSAN BABCOCK ENERGY INDIA PRIVATE LIMITED	Director	29/09/2007	01/05/2007	03/06/2009	Amalgamated	NO
2	U28123TN2005PTC055309	ANSALDOCALDAIE BOILERS INDIA PRIVATE LIMITED	Managing director	06/05/2011	06/05/2011	-	Active	NO

Name :

Mr. Sitaramachandra Rao Safaru

Designation :

Director

Address :

195, O Block, Ganapathy Colony, Anna Nagar East, Chennai – 600 102, Tamilnadu, India

Date of Birth/Age :

10.05.1953

Qualification :

Bachelor of Engineering

Date of Appointment :

29.09.2012

DIN No.:

00018931

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51505DL1996PTC203860	DOOSAN BABCOCK ENERGY INDIA PRIVATE LIMITED	Director	29/09/2007	20/09/2002	03/06/2009	Amalgamated	NO
2	U28123TN2005PTC055309	ANSALDOCALDAIE BOILERS INDIA PRIVATE LIMITED	Director	29/09/2012	18/01/2011	-	Active	NO
3	U29253TN2009PTC074036	ANSALDOCALDAIE - GB ENGINEERING PRIVATE LIMITED	Director	30/04/2011	30/04/2011	-	Active	NO

Name :

Mr. Ramesh Patel

Designation :

Director

Address :

13, Joel Ave, Edison, New Jersey, 08837-2909, United States of America

Date of Birth/Age :

11.10.1947

Qualification :

Bachelor of Engineering, MS

Date of Appointment :

30.09.2011

DIN No.:

01684376

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999MH2007PTC167948	ECO-NIRMAN PRIVATE LIMITED	Director	31/07/2007	31/07/2007	-	Active	NO
2	U24100DL2007PTC166537	LEEDS LIFE SCIENCES PRIVATE LIMITED	Director	07/08/2007	07/08/2007	20/06/2009	Active	NO
3	U74140MH2008PTC188847	IMAGINATION DESIGN AND COMMUNICATIONS INDIA PRIVATE LIMITED	Director	11/12/2008	11/12/2008	21/05/2011	Active	NO
4	U55101MH2008PTC188846	NG HOSPITALITY INDIA PRIVATE LIMITED	Director	11/12/2008	11/12/2008	-	Active	NO
5	U28123TN2005PTC055309	ANSALDOCALDAIE BOILERS INDIA PRIVATE LIMITED	Director	30/09/2011	18/01/2011	-	Active	NO

Name :

Mr. Girish Manjanath Bhat

Designation :

Director

Address :

Flat No.2, Bournville Apartments, Cadbury House, 19, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

12.02.1958

Qualification :

Chartered Accountant

Date of Appointment :

30.09.2011

DIN No.:

01691290

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U15430MH1948PLC006457	CADBURY INDIA LIMITED	Whole-time director	07/06/1999	07/06/1999	01/04/2008	Active	NO
2	U28123TN2005PTC055309	ANSALDOCALDAIE BOILERS INDIA PRIVATE LIMITED	Director	30/09/2011	18/01/2011	-	Active	NO

Name :

Mr. Penati Massimo

Designation :

Director

Address :

VIA Cattaneo, Carlo N94, Legnano, MI 20025, Italy

Date of Birth/Age :

06.07.1957

Qualification :

Bachelor Nuclear Engineering

Date of Appointment :

30.09.2011

DIN No.:

03400112

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U28123TN2005PTC055309	ANSALDOCALDAIE BOILERS INDIA PRIVATE LIMITED	Director	30/09/2011	18/01/2011	-	Active	NO

Name :

Mr. Longo Giorgio

Designation :

Director

Address :

Esquilino 9, Milano 20148, Italy

Date of Birth/Age :

01.02.1951

Qualification :

Bachelor Mechanical Engineering

Date of Appointment :

30.09.2011

DIN No.:

03400376

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U28123TN2005PTC055309	ANSALDOCALDAIE BOILERS INDIA PRIVATE LIMITED	Director	30/09/2011	18/01/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
GB Engineering Enterprises Private Limited, India	300000
Ansaldo Caldaie S. p. A., Italy	11300000
Gammon Inida Limited, India	36700000
Total	48300000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	26.00
Bodies corporate	74.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing industrial boilers, power utility steam boilers and Engineering, Procurement and Construction (EPC) related to power utilities.

Products/ Services :

Item Code No. (ITC Code)	8402
Product Description	Installation, Erection, Commissioning of Boilers and parts thereof

GENERAL INFORMATION

No. of Employees :

144 (Approximately)

Bankers :

IDBI Bank Limited, Anna Salai, P.B. No.805, Saidapet, Chennai – 600 015, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	90.000	0.000
SHORT TERM BORROWINGS
Working capital loans from banks (Cash Credit from IDBI Bank)	256.438	50.127
Total	346.438	50.127

Banking Relations :	--
Auditors :
Name :	Natvarlal Vepari and Company Chartered Accountants
Address :	Oricon House, 4^th Floor, 12, K. Dubash Marg, Mumbai – 400 023, Maharashtra, India
PAN No.:	AAAFN2322E
Holding Company :	Gammon India Limited, India (CIN No.: L74999MH1922PLC000997)
Joint Venture :	Ansaldocaldaie – GB Engineering Private Limited, India (CIN No.: U29253TN2009PTC074036)
Associates :	· Ansaldo Caldaie S.p.A., Italy · Franco Tosi Meccanica, Italy · Ras Cities and Townships Private Limited, India (CIN No.: U70102AP2005PTC047148)

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.10/- each	Rs.1250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	500.000	500.000
(b) Reserves & Surplus	84.503	72.830
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	584.503	572.830
(3) Non-Current Liabilities
(a) Long-term borrowings	90.000	0.000
(b) Deferred tax liabilities (Net)	3.658	0.000
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	93.658	0.000
(4) Current Liabilities
(a) Short term borrowings	308.330	53.311
(b) Trade payables	365.605	64.470
(c) Other current liabilities	341.403	262.632
(d) Short-term provisions	2.051	0.000
Total Current Liabilities (4)	1017.389	380.413
TOTAL	1695.550	953.243
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14.290	15.343
(ii) Intangible Assets	43.776	5.590
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	180.050	0.000
(c) Deferred tax assets (net)	0.000	0.098
(d) Long-term Loan and Advances	189.697	312.246
(e) Other Non-current assets	264.537	119.766
Total Non-Current Assets	692.350	453.043
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	216.616	104.163
(c) Trade receivables	578.435	164.000
(d) Cash and cash equivalents	177.392	99.742
(e) Short-term loans and advances	30.201	132.295
(f) Other current assets	0.556	0.000
Total Current Assets	1003.200	500.200
TOTAL	1695.550	953.243

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		20.000
2] Share Application Money		0.000
3] Reserves & Surplus		59.771
4] (Accumulated Losses)		0.000
NETWORTH		79.771
LOAN FUNDS
1] Secured Loans		82.791
2] Unsecured Loans		131.180
TOTAL BORROWING		213.971
DEFERRED TAX LIABILITIES		0.098
TOTAL		293.840
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.390
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	103.755
	Sundry Debtors	128.254
	Cash & Bank Balances	8.245
	Other Current Assets	0.000
	Loans & Advances	232.770
Total Current Assets		473.024
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	180.788
	Other Current Liabilities	10.496
	Provisions	3.290
Total Current Liabilities		194.574
Net Current Assets		278.450
MISCELLANEOUS EXPENSES		0.000
TOTAL		293.840

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	GROSS INCOME		1677.955	401.640	299.930
	EXPENSES		1639.110	374.793	287.348
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		35.784	17.243	12.581
Less/ Add	DEPRECIATION/ AMORTISATION		16.255	4.818	2.941
	PROFIT / (LOSS) BEFORE TAX		19.529	12.425	9.640
Less	TAX		7.855	3.905	3.287
	PROFIT / (LOSS) AFTER TAX		11.674	8.520	6.353
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		68.291	59.771	53.418
	BALANCE CARRIED TO THE B/S		NA	68.291	59.771
	EARNINGS IN FOREIGN CURRENCY		Nil	Nil	21.900
	IMPORTS
		Materials	NA	NA	27.600
		Consumables, Components and Spares	NA	NA	6.000
	TOTAL IMPORTS		NA	NA	33.600
	Earnings / (Loss) Per Share (Rs.)		0.23	0.17	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	1.29	1.30	1.97
Return on Investment (ROI) (PBT/Networth)		0.03	0.02	0.12
Debt Equity Ratio (Total Debt/Networth)		0.68	0.09	2.68
Current Ratio (Current Asset/Current Liability)		0.99	1.31	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	Yes
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	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	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans and advances from related parties	51.892	3.184
Total	51.892	3.184

CURRENT PROJECTS AND ORDERS:

1) OPG Power

(a) OPG

2: The Company has an ongoing contract to design, engineer, manufacture and supply 320TPH (80MW), pulverized coal fired boiler. All supplies of materials for the same are complete are the erection, commissioning activities are going on at the site.

(b) OPG

3: The Company is also executing another 320TPH (80MW), pulverized coal fired boiler for which around 50% of the materials supply is over and the activities of erection and commissioning are in process.

2) Nagai Power

The Company has an ongoing contract with Nagai Power to design, engineer, manufacture and supply pulverized coal fired boiler suitable for 150 MW electrical power generation. About 30% of the material supplies are complete. At site, the erection work is in progress by the client under the supervision of the engineers of the company.

MARKETING AND SALES:

The power sector for the year has slowed down in India due to various factors such as problems in land acquisition, environment clearances, funding from banks, fuel allocation etc. However, the Company continues to bid for the jobs in India in 660 MW Class as well as 500MW Class (2 x 500 Mw Lignite fired boilers- a niche product for Ansaldo) in co-operation with Analdo Caldaie S. p. A. Italy. The Company is also bidding for jobs in India as well as abroad in the 160 MW Class. They are also developing plan to increase the sales of spares and positioning to bid for the Renovation and Mdernization of the existing power boilers.

FINANCE:

During the year, pursuant to the resolution passed at the Extraordinary General Meeting of the Company on 02nd June 2011 for the authority to the Board to call for the application money for the Rights Issue of shares, the company received a share application money from one of its shareholders Ansaldo Caldaie S. p. A. Italy (AC Italy) amounting Rs.156.600 millions. The respective portions towards share allotment from the other shareholders in their proportion of existing shareholding not received till date. Further, the company is waiting for the issue of the Foreign Inward Remittance Certificate (the FIRC) from the RBI as the said remittance was received in Indian currency instead of Euros.

SIGNIFICANT DEVELOPMENTS:

The Company has established capacity to handle very high moisture (38%) coals by plant trials. Boiler Design Optimization were carried out for the coal fired boilers of 150MW Class to provide cost effective solutions.

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10191857	23/08/2012 *	2,050,000,000.00	IDBI Bank Limited	115, Anna Salai, P.B. No.805, Saidapet, Chennai, Tamilnadu - 600015, India	B57612699

* Date of charge modification

FIXED ASSETS:

· Office Equipments

· Furniture and Fixtures

· Computers

· Software Items

· Plant and Machinery

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] 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.60.82
UK Pound	1	Rs.92.97
Euro	1	Rs.80.73

INFORMATION DETAILS

Information Gathered by :	PLK
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	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.