MIRA INFORM REPORT

Report Date :

29.01.2013

IDENTIFICATION DETAILS

Name :	ATLANTA ELECTRICALS PRIVATE LIMITED
Registered Office :	A-6, Avani Park, Near Rajesh Tower Gotri Road, Baroda – 390021, Gujarat
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	15.12.1988
Com. Reg. No.:	04-11648
CIN No.: [Company Identification No.]	U31110GJ1988PTC011648
TAN No.: [Tax Deduction & Collection Account No.]	BRDA01777G
Sales Tax Registration No.:
VAT TIN NO.:	24151000434
C.S.T. TIN NO.:	24151000434
PAN No.: [Permanent Account No.]	AABCA6647B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Transformers

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 239000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

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

INFORMATION PARTED BY

Name :	Mr. Mehul Mehta
Designation :	Senior Executive Finance
Date :	12.06.2008

LOCATIONS

Registered Office :	A-6, Avani Park, Near Rajesh Tower Gotri Road, Baroda – 390021, Gujarat, India
Tel. No.:	91-2692-235023 / 265-2399441
Mobile No.:	91-9825028050
Fax No.:	91-2692-237203
E-Mail :	sales@atlantaelectricals.com
Websites:	www.atlantaelectricals.com
Location :	Owned
Factory :	Plot No. 1503/4, GIDC Estate, Vithal Udyognagar, Anand – 388121, Gujarat, India
Tel. No.:	91-2692-235023 / 237185
Mobile No.:	91-9825028050
Fax No.:	91-2692-237203
E-Mail :	sales@atlantaelectricals.com
Websites:	www.atlantaelectricals.com

DIRECTORS

AS ON 19.09.2009

Name :	Mr. Krupeshbhai Narharibhai Patel
Designation :	Director
Address :	15, Parishram Society, Behind Sarabhai Subhanpura, Baroda – 390007, Gujarat, India
Date Of Birth/Age :	17.10.1954
Date Of Appointment :	27.07.2002
Name :	Mr. Harshadbhai Amritlal Mehta
Designation :	Director
Address :	Amrut Bungalow, Railway Station Road, Vallabh Vidhyanagar – 388120, Gujarat, India
Date Of Birth/Age :	16.01.1948
Date Of Appointment :	15.12.1988
Name :	Mr. Harendra Gulabchand Shah
Designation :	Director
Address :	Parshwa,Plot No.294/2, B/h Mile Stone Town Hall Road, City Bus Stand, Vallabh Vidhyanagar – 388120, Gujarat, India
Date Of Birth/Age :	31.01.1942
Date Of Appointment :	15.12.1988
Name :	Mr. Tanmay Surendrabhai Patel
Designation :	Director
Address :	15, Parishram Society, Behind Sarabhai Subhanpura, Baroda – 390007, Gujarat, India
Date Of Birth/Age :	18.12.1976
Date Of Appointment :	27.07.2002
Name :	Mr. Navinbhai Natubhai Patel
Designation :	Director
Address :	22-23 Rockkadnath Society, Near Race Course Circle, Gotri Road, Baroda – 390007, Gujarat, India
Date Of Birth/Age :	23.06.1945
Date Of Appointment :	27.07.2002
Name :	Mr. Niral Krupeshbhai Patel
Designation :	Director
Address :	15, Parishram Society, Behind Sarabhai Subhanpura, Baroda – 390007, Gujarat, India
Date Of Birth/Age :	10.02.1980
Date Of Appointment :	27.07.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 19.09.2009

Names of Shareholders	No. of Shares
Harold B. D’silva	25750
Harshad A Mehta	41788
Harendra G Shah	51562
Nimish H Shah	2250
Chhaya S Shah	250
Navin N Patel	63525
Sudhaben N Patel	63525
Krupesh N Patel	50863
Niral K Patel	38110
Amish K Patel	38110
Tanmay S Patel	47688
Lalitaben N Patel	15573
Amod Stampings Private Limited	02
Hemang H Shah	2250
Dhaval H Mehta	3750
Geetaben H Mehta	5000
Devsmita P Patel	01
Dhavani P Patel	01
Priyani P Patel	01
Shivagini P Patel	01
TOTAL	450000

AS ON 19.09.2009

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		94.00
Other top fifty shareholders		6.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Transformers
Products :	Electrical Transformers
Exports :
Countries :	Ghana and Mozambique
Imports :
Countries :	France
Terms :
Selling :	Credit ( 60 days and 90 days)
Purchasing :	Cash, Credit ( 60 days)

PRODUCTION STATUS 31.03.2009

Particulars	Unit	Installed Capacity	Actual Production
Electrical Transformer	Nos	1000	62

GENERAL INFORMATION

Customers :

Direct Actual Users

· Ahmedabad Electricity Company Limited.

· Ahmedabad Education Society

· Aishil Engineering Private Limited.

· Africom S.P.R.L

· Areva T and D (India) Limited

· ASSM General Trading F.Z.C

· B.S.E.S. Limited

· Bihar State Electricity Board

· Birla Perucchini Limited.

· CEAT Limited

· Chhatisgarh State Electricity Board

· Coimbatore Pioneer Mills Limited.

· Comicel Limited.

· Dharnendra Ice-Cream Limited.

· Electrotherm (India) Limited.

· Ellora Times Private. Limited. (Ajanta Watches, Orpat)

· Emirates Steels Est.

· Gujarat Electricity Board

· Hynoup Food and Oil Ind. Limited. (Maruti Oil)

· I.T.C. Limited

· Indian Dairy Machinery Corporation

· Indian Telephone Ind. Limited.

· Inductotherm (I) Private Limited.

· Isinox Steels Limited

· Jharkhand State Electricity Board

· Jothi Malleables Private Limited.

· Jyoti Limited

· Kaira Can Company Limited., ( AMUL)

· Muljibhai Patel Society for Research in Nephro Urology
( Kidney Hospital )

· Madhya Pradesh Electricity Board

· Milton Laminates Private Limited.

· Maharashtra State Electricity Board

· Mather and Platt (India) Limited.

· Mono Steel (India) Limited.

· Metallica Engineering Industries

· National Dairy Development Board

· Narayandas Narshingdas and Sons

· New Tech Forge and Foundary Private. Limited.

· Orchav Pharma Private Limited.

· Pillar Induction Furnaces Limited.

· Pioneer Furnace Private Limited.

· PSL Limited.

· Rimtex Engineering Private Limited.

· R.S. Industries (Rolling Mills) Limited.

· Rajasthan State Electricity Board

· R.L. Steel

· Rohini Industrial Electricals Private Limited.

· Sajaji Hotels Private Limited.

· S.G. Multicast Private Limited.

· Samay Electronics Private Limited.

· Shahaji Alloys Steel Private Limited.

· Siemens (India) Limited.

· Sogo Ceramics Private Limited.

· South Eastern Coal Fields Limited.

· S.P. University

· Steel Industrials Kerala Limited. (SILK)

· Surat Electricity Company Limited.

· Surgiplast Limited.

· Suzlon Energy Limited.

· Thana Electric Supply Company Limited. (ETE)

· Tirupati Granites Private Limited.

· Tirupati Steel Private Limited.

· Unique Cold Storage Private Limited.

· Unique Forgings

· Varrsana Ispat Limited.

· Vir Alloys and Steel Company P. Limited.

· Viraj Profiles Limited.

· Welspun Gujarat Stahl Rohren Limited.

No. of Employees :

68

Bankers :

· Bank of Baroda, Vallabh Vidyanagar Branch, Dist Anand, Vallabh Vidyanagar- 388 120, Gujarat, India

· Union Bank of India, Sayajigunj Branch, union Bank Bhavan, Station Road, Baroda – 5, Gujarat, India

· ICICI Bank Limited

Address: Landmark Race Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India

Facilities :

SECURED LOANS	AS ON 31.03.2009 (Rs. In millions)
Term Loan	57.677
Working Capital Loan (Term loan and Working Capital are secured by hypothecation of stock in trade, Book debts, Immovable /Movable Properties and other asset and further secured by Personal Guarantee of the Directors and Corporate guarantee of Amod Stamping Private Limited	114.700
Vehicle Loan (Secured by hypothecation of vehicles)	0.960
TOTAL	173.337

UNSECURED LOANS	AS ON 31.03.2009 (Rs. In millions)
From Directors	2.095
From Relative of Directors	0.350
From Shareholders	11.365
Inter – Corporate Deposits	28.000
TOTAL	41.810

Banking Relations :

Satisfactory

Auditors :

Name :

K.C. Mehta and Company

Chartered Accountants

Address :

2^nd Floor, Meghdhanush, Race Course, Vadodara – 390007, Gujarat, India.

Tel. No.:

91-265-2341626/3086400

Fax No.:

91-265-3086444/455/466

Associates/Subsidiaries :

Amod Stampings Private Limited

CAPITAL STRUCTURE

(As on 31.03.2009)

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs. 100/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
450000	Equity Shares	Rs. 100/- each	Rs.45.000 millions

NOTE:

Of the above 270000 Equity shares of Rs.100 each have been allotted as fully paid up bonus shares during the year by way of capitalization of Profit and Loss Account

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		45.000	18.000	9.995
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.764	38.759	10.569
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		59.764	56.759	20.564
LOAN FUNDS
1] Secured Loans		173.337	127.327	70.349
2] Unsecured Loans		41.810	41.810	32.690
TOTAL BORROWING		215.147	169.137	103.039
DEFERRED TAX LIABILITIES		1.826	4.442	1.809
TOTAL		276.737	230.338	125.412
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		85.597	29.162	15.587
Capital work-in-progress		64.977	16.436	1.273
INVESTMENT		0.763	0.762	0.764
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	73.182	81.606	25.121
	Sundry Debtors	80.799	220.357	194.586
	Cash & Bank Balances	39.381	40.993	30.184
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.618	46.433	10.299
Total Current Assets		227.980	389.389	260.190
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	82.468	175.950	152.402
	Other Current Liabilities			0.000
	Provisions	20.112	29.461	0.000
Total Current Liabilities		102.580	205.411	152.402
Net Current Assets		125.400	183.978	107.788
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		276.737	230.339	125.412

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	240.598	552.616	376.278
		Other Income
		TOTAL (A)	240.598	552.616	376.278
Less	EXPENSES
		Office Expenses
		Administrative Expenses	193.571	461.680	341.744
		Advertising Expenses
		TOTAL (B)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47.027	90.936	34.534
Less	FINANCIAL EXPENSES (D)		28.692	31.671	14.941
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.335	59.265	19.593
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.332	1.243	0.930
	PROFIT BEFORE TAX (E-F) (G)		16.003	58.022	18.663
Less	TAX (H)		2.468	24.441	6.795
	PROFIT AFTER TAX (G-H) (I)		13.535	33.581	11.868
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		35.856	9.087	1.927
Less	APPROPRIATIONS
		Transfer to General Reserve	1.100	2.600	1.200
		Issue of Bonus share	27.000	0.000	0.000
		Dividend	9.000	3.600	2.998
		Tax on Dividend	1.530	0.612	0.509
	BALANCE CARRIED TO THE B/S		10.761	35.856	9.088
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	3.657	3.133
	TOTAL EARNINGS		NA	3.657	3.133
	IMPORTS
		Raw Materials	0.649	2.272	NA
	TOTAL IMPORTS		0.649	2.272	NA
	Earnings Per Share (Rs.)		30	229	NA

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	5.62	6.07	3.17
Net Profit Margin (PBT/Sales)	(%)	6.65	10.49	8.00
Return on Total Assets (PBT/Total Assets}	(%)	6.99	14.87	6.72
Return on Investment (ROI) (PBT/Networth)		0.26	1.02	0.91
Debt Equity Ratio (Total Liability/Networth)		5.31	6.59	12.42
Current Ratio (Current Asset/Current Liability)		2.22	1.89	1.71

		2009	2008
1	NET SALES(in millions)	240.598	552.616
2	NET PROFIT (in millions)
a	Before Tax(in millions)	16.003	58.022
b	After Tax (in millions)	13.535	33.581
3	PROFIT MARGIN
a	Before Tax (%)	6.65	10.49952
b	After Tax (%)	5.63	6.076733
4	GEARING	3.60	2.98
5	CURRENT RATIO	2.22	1.90
6	DEBTOR DAYS( no of days)	175	176
7	DAYS WORKING CAPITAL (no of days)	190	122

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

The Company has achieved the sales (gross) of Rs. 265.369 millions as against Rs. 629.984 millions in the previous year and export sales of Rs NIL as against rs. 3.657 millions in the previous year. The company has earned a net profit of Rs. 13.534 millions as against the Rs. 33.581 millions of previous year. The Directors expect better results for the current year.

TRADE REFERENCES

· Suzlon Infrastructure Services Limited

· Viraj Profile Limited

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U31110GJ1988PTC011648
Name of the company	ATLANTA ELECTRICALS PRIVATE LIMITED
Address	A-6, Avani Park Rajesh Tower Gotri Road, Baroda – 390021, Gujarat, India
This Form is for	Creation of charge
Type of Charges	· Book Debts · Movable Property · Floating Charge
Particular of the charge holder	· Bank of Baroda, Vallabh Vidyanagar Branch, Dist Anand, Vallabh Vidyanagar- 388 120, Gujarat, India
Nature or description of the instrument creating charge	Supplemental composite agreement of hypothecation of goods, book debts, movables machinery and vehicles.
Date of the instrument creating charge	17.03.2008
Amount Secure by the charge	Rs.390.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13.25 % per annum on fresh term loan 12.75 % per annum on cash credit (stocks cum book debts) cum epc cum fbp/fbd 09.75 % per annum on export packing credit Terms of Repayment Repayable on demand subject to yearly review Margin 25.00 % on term loan 30.00 % on stocks 40.00 % on Receivebles 10.00 % on packing credit 20.00 % on inland LC and 20.00 % on Misc bank guarantee Extent and Operation of the charge The charge is against stocks, book debts and plant and machinery of the company being extended byR. 235.000 millions to cover the various credit facilities, making the aggregate Rs. 390.000 millions comprising of term loan- Rs. 90.000 millions, cash credit-115.000 millions, l/c Rs. 35.000 millions and misc. bank guarantee Rs. 150.000 millions granted by the bank to the company.
Short particulars of the property charged	All stocks of Raw materials, stock in process, finished goods, stores, consumables spares, book debts both present and future as also plant and machineries of the company all placed/ situated at plot no. 1503 and 1504, gidc estate, Vithal Udyog nagar, dist. Anand, Gujarat.
Particulars of the present modification	The charge is being modified from Rs. 155.000 millions to Rs. 390.000 millions covering the additional facilities of Rs. 235.000 millions granted to the company.

Name of the company	ATLANTA ELECTRICALS PRIVATE LIMITED
Presented By	Shri Harendra G Shah , Joint Managing Director
1) Date and description of instrument creating the change	Memorandum of Deposit of title deeds in respect of advance secured by equitable mortgage dated 18.09.2000 and 05.08.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 24.500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All that piece and parcel of Non agril Land bearing Plot No. 1503 and 1504 situated at GIDC Estate, Vithal Udyognagar belonging to the company together with all building and structure now standing thereon or to be erected hereafter and Plant and Machineries attached to the earth or permanently fastened to anything attached to the earth – both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	The charge is created by deposit of title deeds of the captioned immovable property for securing credit facilities aggregating to Rs. 24.500 millions granted of the company.
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda Address: Vallabh Vidyanagar Branch, District Anand, Gujarat, India
6) Date and brief description of instrument modifying the charge	Memorandum of entry for equitable mortgage dated 25.January
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	By execution of above mentioned memorandum of entry for second extension of equitable the charge over the property specified 3 is modified / extended to cover the facilities aggregating Rs. 62.000 millions comprising of CC Rs. 30.000 millions LC Rs. 12.000 millions. The charge secured by way of equitable mortgage Rs. 62.000 millions.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Electrical Installation
• Furniture and Fixture
• Office equipment
• Gas Installation
• Computers
• Vehicles
• Testing Equipments

CONTINGENT LIABILITIES

PARTICULARS	AS ON 31.03.2009 (Rs. In millions)
Bank Guarantee	129.598
Income tax disputed in appeals and pending decisions before authorities	1.383

WEBSITE DETAILS:-

Company profile -

Subject was managed by techno crafts and engaged in Manufacturing Power, Distribution and special application type of transformers. The Company was incorporated in 1982 as a partnership firm and started production by the end of 1983. The company has gradually grown and was later converted to a Private Limited Company.

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.53.89
UK Pound	1	Rs.84.93
Euro	1	Rs.72.51

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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

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

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

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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.