MIRA INFORM REPORT

Report Date :

14.01.2013

IDENTIFICATION DETAILS

Name :	CIGFIL LIMITED
Registered Office :	No.37, Armenian Street, Chennai – 600001, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.08.1970
Com. Reg. No.:	18-005883
Capital Investment / Paid-up Capital :	Rs.1.422 Millions
CIN No.: [Company Identification No.]	U16000TN1970PLC005883
TAN No.: [Tax Deduction & Collection Account No.]	CHEC00079C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Cigarette Filter
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 15000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. The latest financials are not made available with the government department. As per previous year’s, the companies performance seems to be high. Financially seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal 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

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 :	No.37, Armenian Street, Chennai – 600001, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	cigfil@vsnl.com panch@cigfil.com ravindran@cigfil.com
Website :	http://www.cifgil.com

DIRECTORS

As on: 27.09.2012

Name :

Mr. Subbiachettiar Thangavel

Designation :

Director

Address :

11 Pullimandapam Road, Ammamandadam Extn, Srirangam, Trichy – 620006, Tamilnadu, India

Date of Birth :

22.11.1931

Date of Appointment :

10.06.1988

DIN No.:

00870483

Name :

Mr. Ramaswamy Marimuthu Shanmukham

Designation :

Director

Address :

89, Grey Town Coimbatore 641018, Tamilnadu, India

Date of Birth :

18.08.1932

Date of Appointment :

28.061988

DIN No.:

00700432

Name :

Mr. Kadirvel Subbiah Chettiar

Designation :

Director

Address :

47, Nowraji Street, Chetpet, Chennai – 600031, Tamilnadu, India

Date of Birth/Age :

21.07.1935

Date of Appointment :

28.06.1988

DIN No.:

00700675

Name :

Mr. Ramanathan Panchapakesan

Designation :

Managing Director

Address :

No. 182, 1^st Main Mahalakshmi Layout, Bangalore – 560086, Karnataka, India

Date of Birth :

16.10.1952

Date of Appointment :

28.10.2010

DIN No.:

00515881

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	U25209KA1998PTC023840	INNOVA POLYPAK PRIVATE LIMITED	Director	30/07/1998	30/07/1998	16/07/2009	Active	NO
2	U25209KA1999PTC026059	BUILDMET FIBRES PRIVATE LIMITED	Director	09/12/1999	09/12/1999	-	Active	NO
3	U51101KA2002PTC030027	FOOD CREATIONS PRIVATE LIMITED	Managing director	22/01/2002	22/01/2002	-	Active	NO
4	U14339KA1993PTC014339	SHAKTHI KIRAN FOODS PRIVATE LIMITED	Managing director	10/10/2002	10/10/2002	-	Active	NO
5	U16000TN1970PLC005883	CIGFIL LTD	Managing director	28/10/2010	28/10/2010	-	Active	NO

Name :

Mr. Panchapakesan Malathi

Designation :

Director Appointed in Casual

Address :

182 I Main, Mahalakshmi Layour, Bangalore – 560086, Karnataka, India

Date of Birth/Age :

21.04.1953

Date of Appointment :

15.07.2010

DIN No.:

02005363

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	U25209KA1997PTC023044	INNOVA POLYTEX PRIVATE LIMITED	Director	29/10/1998	29/10/1998	-	Active	NO
2	U50101KA1998PTC024476	INNOVA CARTONS PRIVATE LIMITED	Director	02/12/1998	02/12/1998	-	Active	NO
3	U18101KA2004PTC034092	INNOVA APPARELS PRIVATE LIMITED	Managing director	08/06/2004	08/06/2004	-	Active	NO
4	U24246KA2006PTC038423	INNOVA CONSUMER CARE PRIVATE LIMITED	Director	08/02/2006	08/02/2006	-	Active	NO
5	U74900KA2010PTC052725	TARGET MULTIPACK INDIA PRIVATE LIMITED	Director	26/02/2010	26/02/2010	-	Active	NO
6	U16000TN1970PLC005883	CIGFIL LTD	Director appointed in casual vacancy	15/07/2010	15/07/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 27.09.2012

Names of Shareholders	No. of Shares
T P S L Manoharan	281
A S K A Rajamanika Chetty	141
S S Natarajan	141
Venkata reddy	141
Rama Achi	175
Sarada Devi	75
A Sikkander Batcha	266
G Rukumani	50
Meenakshi Sundaram	50
Lakshmanan Chettiar	75
A P Natesan	75
RM Palaniappan	22
M Senaikarasi	100
K K Kanakasababpathy	113
M Subbiah Chettiar	1001
S Thangavel	280
S Kadrivel	280
S Manivel	280
S Saraswathi	280
Vijyalakshmi	280
T Jayashree	280
M Hemamalini	280
Prema	280
K Srimathi	280
K Geetha	280
K Ramesh	280
Ananthalakshmi	280
S Anand Kumar	280
RM Shanmugam	280
Umamaheshwari	280
Akilandeshwari	280
K Susheela	280
V G Mahadevan	280
M Pichimal	259
D S Kumar	280
M Raghunandan	280
R Panchapakesan	2436
P Malathi	1832
P Devi	1387
Total	14220

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	80.00
Other top fifty shareholders	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cigarette Filter

Products :

Item Code No.	Product Description
56012200	Cigarette Filter Rod
39232990	P P Woven Sacks and Allied products
39269080	P P Woven Fabrics

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Cigarette Filter Rods	4400.000 MNR	2753.9229 MNR
Polypropylene Woven Fabrics / Sacks	5400.00 MTs	2935.430 MTs

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Mysore, Corporate Accounts Branch, No.18,, Midford Gardens, Ramanashree Arcade, M.G.Road, Bangalore - 560001, Karnataka, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Bills payable accepted	9.866	26.265
Bills Purchase Account	5.217	19.732
Export Packing Credit SMB / IFB	90.711	55.871
Term Loan – I SMB / IFB	9.560	29.106
Term Loan – II SMB / IFB	8.118	20.212
Term Loan – III SMB / IFB	20.311	0.000
Cash Credit – SMB / IFB	64.712	59.767
Kotak Mahindra Finance Limited	0.494	1.087
Total	208.989	212.041
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Unsecured Loan	72.860	32.835
Total	72.860	32.835

Banking Relations :	--
Auditors :
Name :	Mr. N. Naresh Chartered Accountant
Address :	1113, 10^th D, Cross, 11^th Main Mahalakshimipuram, Bangalore – 560086, Karnataka, India
PAN.:	ABEPN1476C

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14220	Equity Shares	Rs.100/- each	Rs.1.422 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		1.422	1.422	1.422
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		126.234	117.600	110.463
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		127.656	119.022	111.885
LOAN FUNDS
1] Secured Loans		208.989	212.041	211.115
2] Unsecured Loans		72.860	32.835	24.235
TOTAL BORROWING		281.849	244.876	235.35
DEFERRED TAX LIABILITIES		3.051	2.538	1.957
TOTAL		412.556	366.436	349.192
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		192.951	181.544	188.909
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.209	0.209	0.209
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	155.570	115.253	110.062
	Sundry Debtors	196.427	164.857	148.484
	Cash & Bank Balances	9.626	4.297	2.808
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	92.368	82.121	76.882
Total Current Assets		453.991	366.528	338.236
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	164.350	120.088	124.259
	Other Current Liabilities	47.637	42.675	36.939
	Provisions	22.608	19.082	16.964
Total Current Liabilities		234.595	181.845	178.162
Net Current Assets		219.396	184.683	160.074
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		412.556	366.436	349.192

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	662.597	525.497	533.050
		Service Income	19.839	31.471	32.347
		Other Income	18.962	11.170	12.191
		Labour Charges Received	118.732	91.040	199.008
		TOTAL (A)	820.130	659.178	776.596
Less	EXPENSES
		Manufacturing and Other Expenses	682.823	546.731	657.126
		Administrative Expenses	67.537	52.047	59.651
		TOTAL (B)	750.360	598.778	716.777
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		69.770	60.400	59.819
Less	FINANCIAL EXPENSES (D)		34.997	28.837	30.543
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.773	31.563	29.276
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.100	21.728	21.174
	PROFIT BEFORE TAX (E-F) (G)		12.673	9.835	8.102
Less	TAX (H)		4.038	2.699	1.548
	PROFIT AFTER TAX (G-H) (I)		8.635	7.136	6.554
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		115.533	108.397	101.843
	BALANCE CARRIED TO THE B/S		124.168	115.533	108.397
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	246.370	146.654	162.507
	TOTAL EARNINGS		246.370	146.654	162.507
	IMPORTS
		Raw Materials	324.099	267.147	212.135
		Stores & Spares	0.412	0.854	0.617
	TOTAL IMPORTS		324.511	268.001	212.752
	Earnings Per Share (Rs.)		607.24	501.86	460.92

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.05	1.08	0.84
Net Profit Margin (PBT/Sales)	(%)	1.55	1.49	1.51
Return on Total Assets (PBT/Total Assets}	(%)	1.96	1.79	1.53
Return on Investment (ROI) (PBT/Networth)		0.10	0.08	0.07
Debt Equity Ratio (Total Liability/Networth)		4.05	3.59	3.69
Current Ratio (Current Asset/Current Liability)		1.94	2.02	1.89

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	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	No
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

FILTER-RODS DIVISION:

The sales volume of filter-rods for the year has been at the same level as that of the previous year. The Management has chalked out a modernization plan to upgrade and augment the capacities of this Division.

POLYMER DIVISION:

The Management's sustained marketing efforts resulted in good increase in exports of the Company's Polymer Division. The Company has made capital investments and increased the FIBC manufacturing capacity during the year.

APPARELS DIVISION:

The Company has consolidated the operations during the year.

PACKAGING DIVISION:

The operation of this Division has been satisfactory.

FUTURE PROSPECTS:

Though the general economic scenario of the Indian industry has been good with expectations of sustained growth momentum, there are enough indicators pointing towards slow down in certain sectors; due to increased globalization of trade, the travails of both the US and the EU economies do cause some anxiety about the contagion effect. However, the Management is confident of sailing through the challenging times unscathed by leveraging the goodwill of the customers earned through the years as suppliers of quality products and reliable service providers.

Bankers Charges Report as per Registry

Corporate identity number of the company	U16000TN1970PLC005883
Name of the company	CIGFIL LIMITED
Address of the registered office or of the principal place of business in India of the company	NO.37, Armenian Street,Chennai-1, Tamil Nadu – 600001, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of Mysore, , Corporate Accounts Branch, Ramanashree Arcade, no.18, M G road, Bangalore, - 560001, Karnataka, India
Nature of instrument creating charge	Agreement of Loan-Cum-Hypothecation Sme - 2 And Letter of Confirmation For Extension of Mortgage By Deposit of Title Deeds Sme - 8 (Both Pertain To The Same Charge)
Date of instrument Creating the charge	25.09.2010
Amount secured by the charge	Rs. 395.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 1) WCL - At 4.00% Above Br, Effective Rate 11.75% per Annum 2) TL new - AT 4.25% Above Br, Effective Rate 12.00% per annum existing limits as per existing terms of sanction. Terms of repayment WCL - on demand. Advance is for a period of 12 months. TI new - in 20 Quarterly installments of Rs. 1.125 Millions each commencing from Quarter ending September 2011. Existing limits as per existing terms of sanction. Margin RM/SIP/FG : 25% RECEIVABLES/BD : 50% LC/BG : 10% TL NEW - 36% Extent and operation of the charge Exclusive first charge on the assets of the company and to the full extent. Other Cash Credit Rs.60.000 Millions, EPC Rs 50.000 CRS; FDBP/FUBP RS 40.000 Millions; LC RS 60.000 Millions, BG 2.500 Millions; TL-1 RS 140.000 Millions; CL RS 20.000 Millions; TL-2 RS 22.500 Millions; TOTAL Rs 395.000 Millions.
Short particulars of the property charged (Including location of the property)	Hypothication of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, Stores, components, furniture and fittings; other movables, plant and machinery, vehicles and assets to be purchased out of bank finance. Equitable mortgage of land and building situated at SY. 28,29, and 26 AT Kacharakanahalli Village, Jadigenahalli Hobli, Hoskote Taluk, Bangalore Rural District. Equitable mortgage of land and building situated at sy. no. 8, Thanneranahalli, Yeshwanthpura Hobli, Bangalore North Taluk, Tumkur Road, Bangalore. Equitable mortgage of land and building situated at sy. No.70, tumkur road, Yeshwanthpura, Bangalore Extension of Scope of Equitable Mortgage of Land And Building Situated At Flat No. A-704 and B-702, Ramanajyothi Apartments, Tumkur Road, Bangalore And Industrial Shed Bearing No.293B, 2nd Stage, Peenya Industrial Estate, Bangalore
Date of instrument modifying the charge	12.10.2009
Particulars of the present modification	The amount secured by the charge stands increased to Rs. 395.000 Millions. All other terms and conditions remain unchanged.

FIXED ASSETS:

• Filter Road Division
• Polymers Division
• Building
• Land
• Plant and Machinery
• R and D Equipments
• Electrical Installation
• Office Equipments
• Motor Vehicles
• Other Vehicles
• Furniture and Fittings

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] 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.54.54
UK Pound	1	Rs.88.05
Euro	1	Rs.72.29

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.