MIRA INFORM REPORT

Report Date :

30.01.2013

IDENTIFICATION DETAILS

Name :	KAMAKSHI FLEXIPRINTS PRIVATE LIMITED
Registered Office :	42, Changodar Industrial Estate, Sarkhej - Rajkot Highway, Changodar, Taluka Sanand, District Ahmedabad - 382213, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.07.1994
Com. Reg. No.:	04-022457
Capital Investment / Paid-up Capital :	Rs. 10.300 millions
CIN No.: [Company Identification No.]	U25200GJ1994PTC022457
TAN No.: [Tax Deduction & Collection Account No.]	AHMK00338C
PAN No.: [Permanent Account No.]	AAACK8773B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Flexible Packaging Material.
No. of Employees :	Information denied by Management

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 185000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears huge external borrowings recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small business dealings at usual trade terms and condition.

NOTES :

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

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.

INFORMATION DENIED BY

Name :	Mr. Narendra
Designation :	Director
Date :	29.01.2013

LOCATIONS

Registered Office :	42, Changodar Industrial Estate, Sarkhej - Rajkot Highway, Changodar, Taluka Sanand, District Ahmedabad - 382213, Gujarat, India
Tel. No.:	91-2717-250140/250540
Mobile No.:	91-9825608081 (Narendra Madanlal Goel)
Fax No.:	91-2717-250540
E-Mail :	narendra@kamakshiflexiprints.com marketing@kamakshiflexiprints.com
Website :	www.kamakshiflexiprints.com

DIRECTORS

As on 24.09.2012

Name :	Mr. Harish Surendrakumar Goel
Designation :	Director
Address :	A – 9 / 104, Goel Intercity, Drive in Road, Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	14.10.1969
Qualification :	BSC
Date of Appointment :	11.07.1994
DIN No.:	00586207
Name :	Mr. Surendrakumar Ratanlal Goel
Designation :	Director
Address :	A – 9 / 104, Goel Intercity, Drive in Road, Thaltej, Ahmedabad – 380 054, Gujarat, India
Qualification :	B.Com
Date of Appointment :	10.02.1995
DIN No.:	00513864
Name :	Mr. Narendra Madan Dhupar
Designation :	Director
Address :	A / 301, Ayodhya Apartment, near Ashamegh Bunglow – 3, Satellite, Ahmedabad – 380 015, Gujarat, India
Date of Appointment :	06.04.2008
DIN No.:	00104123

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2012

Names of Shareholders	No. of Shares
Harish S. Goel	95410
Surendra S. Khemka	10
Vinodkumar R Mittal	47350
Anilkumar R Mittal	53850
Agrawal Yogeshkumar R	4000
Ramesh K. Chandra Agrawal	4000
Surendra R Goel	57900
Latatrani S. Goel	41960
Divyarani H. Goel	229070
Deepa S. Goel	10980
Purshottam B. Badodaria	2
Renuka Agrawal	4000
Asha Vinodkumar Agrawal	12010
Shalini Govindsharan Agrawal	6000
Asharani Garg	10
Ansul Anilkumar Bansal	10
Neelam Goyal	2
Rajendra Prasad Goyal	2
Neerajkumar Goyal	2
Pushpa Devi Mittal	19100
Typhoon Financial Services Limited, India	20000
Surendra R. Goel karta of Gyaniram Chhotelal HUF	4600
Omprakash Mittal Karta of Giriraj Ramjidas Mittal HUF	5000
Adinath Synthetic	1
Ganesh Entrerprise	1
Gallant Impex Private Limited, India	74800
Swatantra Veer Gupta	20002
Usharani Gupta	20002
Jyoti Dhupar	113610
Vineet Nahar	8
Narendra Dhupar	52002
Narendra Dhupar (HUF)	2
Omprakash Dhupar	17500
Rakesh bansal	2000
Kamal Chand Jain	57000
Tripada Infrastructure Private Limited, India	57800
Neha Bansal	4
TOTAL	1030000

As on 24.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	14.82
Directors or relatives of Directors	62.67
Other top fifty shareholders	22.51
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Flexible Packaging Material.

Products :

ITC Code	Product Descriptions
392010.01	Flexible Packaging Material

· Stand Up Pouches

· Centre Seal Pouches

· Spout Pouches

· Vacuum Pouches

· 3 Side Seal Pouches

· 4 Side seal Pouches

· Patch Handle Bags

· Poly Film Rolls

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity
3 layer Co-Extruded Polythin Film	MT	2447
Printed and Laminated Plastic Co-Extruded Films/Products	MT	2533

ACTUAL PRODUCTION:

Particulars	Actual Production
Own Production:
Plastic Film Roll [IN MT]	1231
Bags and Pouches [Nos. in Thousand]	15025
Job Production:
Plastic Film Roll [IN MT]	61
Bags and Pouches [Nos. in Thousand]	0

GENERAL INFORMATION

Customers :

· Tata Chemicals

· Kodak India Limited, India

· Safal

· Brintons Carpets

· Jubilant Organosys

· Gujarat Ambuja Export limited, India

· Hindustan Lever Limited, India

· Kohinoor Foods Limited

· Rashtriya Chemicals and Fertilizers Limited, India

· Pioma Industries

· Sanghvi Foods Private Limited, India

· Northern Minerals Limited, India

· Dhanuka Agritech Limited, India

· Koteshwar Chem Foods Limited, India

No. of Employees :

Information denied by Management

Bankers :

· Small Industries Bank of India, 1^st Floor, Navjivan Amrit Jayanti Bhavan, Navjivan Post Office, Ahmedabad – 380 014, Gujarat, India

· Bank of Baroda, Ashram Road Branch, Ashram Road, Ahmedabad-380009, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
(a) Secured Term Loans from Financial Institution Small Industries Development Bank of India (Repayable in 72 monthly installments (Secured by Hypothecation of Plant and Machineries and Mortgage of Factory Land and Building and Personal Guarantee of Directors) Vehicle Loans (Repayable in 36 equal monthly installments (Secured by Hypothecation of Cars) Secured Loans Repayable on Demand: From Bank Cash Credit Buyer's Credit Packing Credit Foreign Bill Discounted from Bank (Secured by Hypothecation of Stocks and Book Debts and Further secured by second charge on Mortgage of Factory Land and Building, Plant and Machineries and Mortgage of Residential Properties of Directors, Personal Guarantee of Directors and two Shareholders of the company.)	31.090 0.701 55.320 6.180 11.373 3.584	36.000 0.588 47.605 9.481 0.000 0.000
Total	108.248	93.674

Banking Relations :	--
Auditors :
Name :	Agrawal and Mandowara Chartered Accountants
Address :	709, Hemkoot Complex, Opposite Nehru Bridge, Ashram Road, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-26580906/07
PAN No.:	ADMPM4331K
Memberships :	· Gujarat State Plastics Manufacturers Associations · All India Manufactures Association · Plastic Export Promotion Council · Global Dun and Bradstreet Database · National Small Industries Corporation Limited (a Government of India Enterprise)
Enterprises in which Key Management Personnel have Significant Influence :	· Gallant Impex Private Limited, India

CAPITAL STRUCTURE

As on 31.03.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs. 10/- each	Rs. 12.500 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
1030000	Equity Shares	Rs. 10/- each	Rs. 10.300 millions

NOTE:

Reconciliation of Number of Share Outstanding

Particulars	As At 31.03.2012
	Numbers	Value
Equity Shares Outstanding at the beginning of the Year	1030000	103000000
Add: Press Issue / Bonus / ESOP / Conversion	0	0
Less: Buy Back / Other Changes	0	0
Equity Shares Outstanding at the End of the Year	1,030,000	103,000,000

Shareholders Holding More Than 5% Equity Shares of The Company

Name of Shareholders	As At 31.03.2012
	Numbers	%
Harish S Goel	95410	9.26%
Anilkumar R. Mittal	53,850	5.23%
Surendra R. Goel	57,900	5.62%
Divyarani H. Goel	229,070	22.24%
Gallant Impex Private Limited, India	74,800	7.26%
Tripada Infrastructure Private Limited, India	57,800	5.61%
Jyoti Dhupar	1,13,610	11.03%
Narendra Dhupar	52,002	5.05%
Kamalchand Jain	57,000	5.53%
TOTAL	791,442	76.83%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.300	10.300	10.300
2] Share Application Money		2.000	1.600	3.500
3] Reserves & Surplus		34.344	32.281	31.273
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		46.644	44.181	45.073
LOAN FUNDS
1] Secured Loans		108.248	93.674	100.924
2] Unsecured Loans		20.632	20.458	13.799
TOTAL BORROWING		128.880	114.132	114.723
DEFERRED TAX LIABILITIES		6.398	5.397	5.467
TOTAL		181.922	163.710	165.263
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		80.327	84.787	88.387
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	72.132	50.030	33.935
	Sundry Debtors	56.157	29.809	44.033
	Cash & Bank Balances	2.923	3.737	2.742
	Other Current Assets	0.975	1.125	0.000
	Loans & Advances	20.777	16.039	17.053
Total Current Assets		152.964	100.740	97.763
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	32.994	12.419	16.260
	Other Current Liabilities	16.905	8.370	2.658
	Provisions	1.470	1.028	2.081
Total Current Liabilities		51.369	21.817	20.999
Net Current Assets		101.595	78.925	76.764
MISCELLANEOUS EXPENSES		0.000	0.000	0.112
TOTAL		181.922	163.710	165.263

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	284.394	222.133	231.915
		Other Income	0.311	1.437	1.327
		TOTAL (A)	284.705	223.570	233.242
Less	EXPENSES
		Cost of Materials Consumed	211.455	183.617	192.334
		(Increase) / Decreases in Stocks	1.174	(10.517)	(5.848)
		Employee benefit Expenses	5.412	4.412	0.000
		Other Expenses	44.264	28.892	0.000
		Manufacturing Expenses	0.000	0.000	15.746
		Payments to and Provisions for Employee	0.000	0.000	3.864
		General, Administrative and Selling Expenses	0.000	0.000	14.122
		TOTAL (B)	262.305	206.404	220.218
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22.400	17.166	13.024
Less	FINANCIAL EXPENSES (D)		13.710	10.626	7.282
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8..690	6.540	5.742
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.640	5.601	1.405
	PROFIT BEFORE TAX (E-F) (G)		3.050	0.939	4.337
Less	TAX (I)		0.988	(0.070)	1.723
	PROFIT AFTER TAX (G-I) (J)		2.062	1.009	2.614
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.529	8.520	5.471
	MAT CREDIT OF EARLIER YEARS		0.000	0.000	0.435
	BALANCE CARRIED TO THE B/S		11.591	9.529	8.520
	EARNINGS IN FOREIGN CURRENCY		41.200	0.000	0.199
	IMPORTS
		Raw Materials	27.761	34.939	0.000
	TOTAL IMPORTS		27.761	34.939	0.000
	Earnings Per Share (Rs.)		2.00	0.98	2.54

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.72	0.45	1.12
Net Profit Margin (PBT/Sales)	(%)	1.07	0.42	1.87
Return on Total Assets (PBT/Total Assets}	(%)	1.31	0.51	2.33
Return on Investment (ROI) (PBT/Networth)		0.06	0.02	0.10
Debt Equity Ratio (Total Debt/Networth)		2.76	2.58	2.54
Current Ratio (Current Asset/Current Liability)		2.97	4.61	4.66

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade Payables	32.994	12.419	16.260

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	Yes
10]	Designation of contact person	Yes
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	Yes
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	No

UNSECURED LOAN:

Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Unsecured Loans from Financial Institution Small Industries development Bank of India (Repayable in 20 and 16 equal quarterly installments) (Above Loans from Small Industries Development Bank of India are against Personal Guarantee of Directors and collaterally secured by Equitable Mortgage of the Residential Property owned by one of the Director of the Company.)	12.875	15.375
Unsecured Loans and Advances from Related Parties Unsecured Loan from Directors and Shareholders	7.757	5.083
Total	20.632	20.458

NOTE:

Registered office of the company has been shifted from 295, New Cloth Market Raipur, Ahmedabad – 380 001. Gujarat, India to the present address w.e.f. 03.01.2009

PERFORMANCE OF THE COMPANY

The year has seen healthy growth in the operations of the Company. Net Revenue from Operations has increased by 28%. The Company has explored overseas markets has registered Export Sales of Rs. 41.200 Millions during the year (Previous year – NIL). The PBIDT has increased by Rs. 5.235 Millions, a growth of 30.50% against the previous year. The Profit after Tax for the year has doubled at Rs.2.062 Millions, against Rs.1.009 Millions for the previous year. While consolidating the existing operations, the directors propose a small modernization programme during the current year, which will result in further add to growth in Sales and Profitability of the Company.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25200GJ1994PTC022457
Name of the company	KAMAKSHI FLEXIPRINTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	42, Changodar Industrial Estate, Sarkhej-Rajkot Highway, Changodar, Taluka Sanand, District Ahmedabad-382213, Gujarat, India e-mail: narendra@kamakshiflexiprints.com
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	Small Industries Bank of India, 1^st Floor, Navjivan Amrit Jayanti Bhavan, Navjivan Post Office, Ahmedabad – 380 014, Gujarat, India e-mail: jaykgupta@sidbi.in
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation
Date of instrument Creating the charge	08.10.2012
Amount secured by the charge	Rs. 28.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest For Term Loan of Rs. 6.800 millions 13.25% For Term Loan of Rs. 21.200 millions 12.50% Terms of Repayment 72 monthly installments Margin as per agreement Extent and Operation of the charge 1. First charge by way of hypothecation in favour of SIDBI of the plant, machinery, equipment, tools, spares, accessories and all other assets which have been or proposed to be acquired under the project/scheme. 2. Extension First charge by way of hypothecation in favour of SIDBI of all the Borrower's movables, (save and except book debts) including the movables, plant, machinery, machinery spares, tools and accessories, office equipments, computers, F and F, both present and future.
Short particulars of the property charged	First charge by way of hypothecation in favour of SIDBI of the plant, machinery, equipment, tools, spares, accessories and all other assets which have been or proposed to be acquired under the project. Extension First charge by way of hypothecation in favour of SIDBI of all the Borrower's movables, (save and except book debts) including the movables, plant, machinery, machinery spares, tools and accessories, office equipments, computers, furnitures and fixtures, both present and future, located at Plot No.42 and Plot no 42 (P), Block No.388, situate at Mouje Changodar Village, Sananad

FIXED ASSETS:

• Land
• Factory Building
• Plant and Machinery
• Vehicles
• Furniture and Fixtures
• Computer
• Office Equipment

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.53.70
UK Pound	1	Rs.84.35
Euro	1	Rs.72.21

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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		35

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.