MIRA INFORM REPORT

Report Date :

14.02.2013

IDENTIFICATION DETAILS

Name :	GAJRA GEARS PRIVATE LIMITED
Registered Office :	Elve Chambers, Green Street, Fort, Mumbai-400023, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.02.1974
Com. Reg. No.:	11-017201
Capital Investment / Paid-up Capital :	Rs.85.344 Millions
CIN No.: [Company Identification No.]	U29130MH1974PTC017201
TAN No.: [Tax Deduction & Collection Account No.]	MUMG08324B BPLG00086C
PAN No.: [Permanent Account No.]	AAACG1589P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Automobile Transmission Gears.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 435000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management of the company has not filed its financials with the government for the year 2012. As per previous year’s record, there appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payment terms are slow. 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 – 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	CARE
Rating	B [Long Term]
Rating Explanation	High risk of default
Date	October 2011 to March 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 :	Elve Chambers, Green Street, Fort, Mumbai-400023, Maharashtra, India
Tel. No.:	91-22-22662088/22663527/22663020
Fax No.:	91-22-22662742
E-Mail :	elvgajra@bom3vsnl.net.in
Website :	http://www.gajra.com
Factory :	Station Road, Dewas-455001, Madhya Pradesh, India
Tel. No.:	91-7272-421000/421111/421222/421333/421444
Fax No.:	91-7272-421001/421002
E-Mail :	gajra@gajra.com
Zonal Office :	Located At: New Delhi Jalandhar Kanpur Nanital Rohtak Jaipur Ghaziabad Kolkata Gauhati Ranchi Dewas Ahmedabad Bangalore Kochi Patna Mumbai Raipur Chennai Vijayawada

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Ramesh Bhishma Gajra

Designation :

Chairman cum Managing Director

Address :

13/ 1, Race Course Road, Indore-452003, Madhya Pradesh, India

Date of Birth/Age :

08.08.1950

Qualification :

24.12.1990

Din No.:

00313056

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	Company/ LLP Status	Defaulting status
1	U51909MH1979PTC021074	BHISHAM MERCANTILE PRIVATE LIMITED	Director	28/02/1979	28/02/1979	Active	NO
2	U51909MH1979PTC021075	GAJRA MERCANTILE PRIVATE LIMITED	Director	28/02/1979	28/02/1979	Active	NO
3	U51900MH1979PTC021211	RBG GLOBAL MARKETING PRIVATE LIMITED	Director	04/10/1990	04/10/1990	Active	NO
4	U29130MH1974PTC017201	GAJRA GEARS PRIVATE LIMITED	Managing director	24/12/1990	24/12/1990	Active	NO

Name :

Mr. Subhash Chander Gandhi

Designation :

Managing Director

Address :

188, Saket Nagar, Indore-452004, Madhya Pradesh, India

Date of Birth/Age :

02.01.1936

Qualification :

24.12.1990

Din No.:

00102443

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	U29130MH1974PTC017201	GAJRA GEARS PRIVATE LIMITED	Managing director	24/12/1990	24/12/1990	-	Active	NO
2	U99999DL1959PLC176013	AUTOMOTIVE COMPONENT MANUFACTURERS ASSOCIATION OF INDIA	Director	25/08/2000	25/08/2000	03/09/2008	Active	NO
3	U29130MP2010PTC023343	RAGHU PRECISION ENGINEERING PRIVATE LIMITED	Director	07/04/2010	07/04/2010	-	Active	NO

Name :

Mr. Gautam Ramesh Gajra

Designation :

Whole Time Director

Address :

13/ 1, Race Course Road, Indore-452003, Madhya Pradesh, India

Date of Birth/Age :

27.12.1976

Date of Appointment :

25.06.1998

Din No.:

00312950

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	Company/ LLP Status	Defaulting status
1	U29130MH1974PTC017201	GAJRA GEARS PRIVATE LIMITED	Director	26/06/1998	26/06/1998	Active	NO
2	U24230MH2000PTC129343	REXEL PHARMA (INDIA) PRIVATE LIMITED	Director	24/10/2000	24/10/2000	Strike off	NO

Name :

Mr. Pramod Kumar Devsharan Tiwari

Designation :

Director

Address :

46-Sector-B, Vishali Nagar, Annapurana Road, Indore-452001, Madhya Pradesh, India

Date of Birth/Age :

29.03.1956

Date of Appointment :

05.08.2010

Din No.:

03166598

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of 14% Redeemable Cumulative Preferences Shares	No. of 10% Redeemable Cumulative Preferences Shares	No. of Equity Shares
Bhisam Investments Private Limited	--	--	1160400
Gautam Ramesh Gajra	--	--	60000
Kamal Sabharwal	--	--	28800
Karishma Gajra	--	--	60000
Kennedy Investments Private Limited	--	--	1160400
Ramesh Gajra	1500000	50000	180000
Ramesh Gajra (Managing Trustee) on behalf of R.B. Gajra Family Trust	--	175000	69600
Rashmi Gajra	--	--	60000
Romi Sabharwal	--	--	28800
Romi Sabharwal (As Karta of Romi Sabharwal)	--	--	28800
Shakun Investments Private Limited	--	--	1160400
Ramesh Gajra (On behalf of all members of R.B. Gajra HUF)	--	--	786600
Ramesh Gajra Jointly with Vijay Chainani	--	--	100
Ramesh Gajra Jointly with M.A. Gunari	--	--	100
Ramesh Gajra Jointly with T.V. Jagtiani	--	--	200
Ramesh Gajra Jointly with Jenny Almeida	--	--	100
Ramesh Gajra Jointly with B.S. Gajra	--	--	100
TOTAL	1500000	225000	4784400

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	73.00
Directors or relatives of directors	27.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Automobile Transmission Gears.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
87.08	Transmission and Differential Gears
87.08	Starter Pinions and Coller Bush
82.07	Cutting Tools
84.31	3F AG Pallets
84.56	Laser Marking Machine

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity #	Actual Production
Gears Components	MT	4210	3427*
Cutting Tools	Nos.	3480	3121**
3F AG Pallets	Nos.	6000	--
Lasser Marking Machine	Nos.	6	--

NOTE:

· * Includes Job work

· ** Includes Captive consumption.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of Indore, Moti Bunglow, Dewas, Madhya Pradesh, India
• Indian Overseas Bank, Mumbai, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans banks	210.487 [A]	250.224
Working capital loans banks	137.987 [B]	139.837
Interest accrued due other debt	2.143	2.191
TOTAL	350.617	392.252
NOTE: (A) Secured by Hypothecation of all moveable properties including moveable plant and machinery by first charge and Second Charge on Current Assets, present and future, subject to prior specific and exclusive charges of banks, institutions and joint equitable mortgage by deposit of title deeds of Land and Building A sum of Rs.54.651 Millions is due for repayment in the next financial year out of the above loans ( Previous Year Rs. 39.716 Millions) (B) Working capital from banks Secured by hypothecation of stock of raw materials, work-in-process, finished goods, stores, tools, spares, book-debts and documents of title to goods. Further secured by second charge on all fixed assets of the Company. Loans from Banks and Financial Institutions are personally guaranteed by the Promoter Directors, Elve Corporation a partnership firm, pledge of equity shares to the extent of 30% and also one residential flat of Miss Rashmi Gajra [Her Guarantee restricted to the extent of Rs. 3.200 Millions only].

Banking Relations :	--
Financial Institution :	· Madhya Pradesh Financial Corporation, A.B. Road, Indore-452001, Madhya Pradesh, India · Tafe Motors and Tractors Limited, No. 35, Nungambakkam High Road, Chennai-600034, Tamilnadu, India
Auditors :
Name :	R.D. Joshi and Company Chartered Accountants
Address :	Shiv Vilas Palace, Rajwada, Indore, Madhya Pradesh, India
PAN No:	AADFR9289F
Associates :	· Gajra Differential Gears Private Limited Address: Lohar Pipliya, Near Kshipra A.B. Road, Dewas-455001, Madhya Pradesh, India Tel No.: 91-7272-264151/264152/264153/264154 Fax No.: 91-7272-264574 Email: gajradg@gajra.com · Elve Corporation Address: Elve Chambers, Green Street, Fort, Mumbai-400023, Maharashtra, India Tel No.: 91-22-22662088/22661698/22663527/22663020 Fax No.: 91-22-22662742 Email: elvgajra@bom3.vsnl.net.in · Raghu Engineering, Dewas, Madhya Pradesh, India

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
1500000	14% Redeemable Cumulative Preferences Shares	Rs.10/- each	Rs.15.000 Millions
350000	10% Redeemable Cumulative Preferences Shares	Rs.100/- each	Rs.35.000 Millions
	TOTAL		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4784400	Equity Shares	Rs.10/- each	Rs.47.844 Millions
1500000	14% Redeemable Cumulative Preferences Shares	Rs.10/- each	Rs.15.000 Millions
225000	10% Redeemable Cumulative Preferences Shares	Rs.100/- each	Rs.22.500 Millions
	TOTAL		Rs.85.344 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		85.344	85.344	67.844
2] Share Application Money		0.000	0.000	11.250
3] Reserves & Surplus		90.715	90.715	90.715
4] (Accumulated Losses)		(67.127)	(93.715)	(79.158)
NETWORTH		108.932	82.344	90.651
LOAN FUNDS
1] Secured Loans		350.617	392.252	367.690
2] Unsecured Loans		116.379	113.722	114.209
TOTAL BORROWING		466.996	505.974	481.899
DEFERRED TAX LIABILITIES		23.100	27.400	36.900
TOTAL		599.028	615.718	609.450
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		309.445	368.361	434.260
Capital work-in-progress		16.315	16.315	16.315
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	397.938	370.895	372.251
	Sundry Debtors	253.067	188.252	196.718
	Cash & Bank Balances	31.600	20.425	26.705
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.698	31.075	35.466
Total Current Assets		708.303	610.647	631.140
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	442.855	400.589	466.115
	Other Current Liabilities	4.970	4.043	5.254
	Provisions	7.320	1.773	5.013
Total Current Liabilities		455.145	406.405	476.382
Net Current Assets		253.158	204.242	154.758
MISCELLANEOUS EXPENSES		20.110	26.800	4.117
TOTAL		599.028	615.718	609.450

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1452.000	1039.039	1197.801
		Machining Charges		13.631	10.695
		Miscellaneous Income		1.192	2.318
		TOTAL (A)	1452.000 [Including Excise Duty]	1053.862	1210.814
Less	EXPENSES
		Raw Materials Consumed		347.495	467.667
		Manufacturing Expenses		186.477	269.573
		Purchase of Trading Goods		90.625	87.448
		Personnel Expenses		228.167	241.669
		Administrative and Other Expenses		26.861	36.322
		Selling and Distribution Expenses		62.765	47.192
		Bad Debts Written Off		2.574	3.478
		Increase/Decrease in Stocks		3.881	(39.397)
		Prior Year Adjustments		(0.369)	0.000
		TOTAL (B)	NA	948.476	1113.952
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			105.386	96.862
Less	FINANCIAL EXPENSES (D)			61.033	65.203
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			44.353	31.659
Less/ Add	DEPRECIATION/ AMORTISATION (F)			68.409	68.311
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		27.800	(24.056)	(36.652)
Less	TAX (H)		NA	(9.500)	(11.025)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		NA	(14.556)	(25.627)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(79.158)	(53.531)
	BALANCE CARRIED TO THE B/S		NA	(93.714)	(79.158)
	EARNINGS IN FOREIGN CURRENCY		299.995	239.520	NA
	Earnings / (Loss) Per Share (Rs.)		NA	(2.23)	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	(1.38)	(2.12)
Net Profit Margin (PBT/Sales)	(%)	NA	(2.31)	(3.05)
Return on Total Assets (PBT/Total Assets}	(%)	2.73	(2.45)	(3.44)
Return on Investment (ROI) (PBT/Networth)		0.25	(0.29)	(0.40)
Debt Equity Ratio (Total Debt/Networth)		4.29	6.14	5.32
Current Ratio (Current Asset/Current Liability)		1.55	1.50	1.32

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	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	No
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

OPERATIONS AND RESULTS:

The year ended with an excellent growth and recorded a turnover of Rs. 1452.000 Millions as against Rs. 1138.800 Millions in the previous year registering an increase of 28% and resulted a profit of Rs.27.800 Millions as against a loss of Rs.24.400 Millions in the previous year. The improved economic condition globally together-with various steps towards cost reduction and high level efficiency, the company could perform well in all the market segments. The order-flow from the markets were quite encouraging during the period. This will ensure better performance for the next year.

Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Other debt	116.379	113.722
TOTAL	116.379	113.722

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U29130MH1974PTC017201
Name of the company	GAJRA GEARS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Elve Chambers, Green Street, Fort, Mumbai-400023, Maharashtra, India
Type of charge	Movable Property [not being pledge] Floating Charge
Particular of charge holder	Madhya Pradesh Financial Corporation, A.B. Road, Indore-452001, Madhya Pradesh, India Email: rajkirtani@gajra.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation executed by Gajra Gears Private Limited and Gajra Differential Gears Limited in favour of MPFC. on 21st March, 2012 to secure repayment of Working Capital Medium Term Loan of Rs. 25.000 Millions availed by the Gajra Differential Gears Limited from Madhya Pradesh Financial Corporation.
Date of instrument Creating the charge	21.03.2012
Amount secured by the charge	Rs.25.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The rate of Interest shall be 15.25% p.a. shall be payable quarterly. Rebate @ of 1% will be allowed for timely repayment. Penalty of 2% shall be charged in case of default. Terms of Repayment The loan will be repaid in Five and half year in 20 quarterly installments with six month off period. The details are as under; First Four quarterly Installments of Rupees 0.250 Million each, Next Eight quarterly Installments of Rupees 1.000 Million each and balance Eight quarterly Installments of Rupees 2.000 Millions each. First Installment will commence from 1st Oct, 2012 upto 1st July, 2017. Extent and Operation of the charge In addition to the property of Gajra differential Gears Limited described in Schedule A of the agreement ,MPFC Will have Exclusive First charge extended by way of hypothecation on Plant and Machinery of Gajra Gears Private Limited as an additional security
Short particulars of the property charged	Hypothecation of Plant and Machinery as per Schedule B of the agreement situated at Gajra Gears Private Limited station Road Dewas, M.P.

FIXED ASSETS:

• Freehold Land
• Buildings
• Plant and Machinery
• Furniture
• Fittings and Equipments
• Vehicles

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.53.85
UK Pound	1	Rs.84.43
Euro	1	Rs.72.40

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		34

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.