MIRA INFORM REPORT

Report Date :

19.07.2013

IDENTIFICATION DETAILS

Name :	KHS MACHINERY PRIVATE LIMITED
Registered Office :	53, Madhuban, Near Madalpur Underbridge, Ellisbridge P.O., Ahmedabad – 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.05.1997
Com. Reg. No.:	04-032397
Capital Investment / Paid-up Capital :	Rs. 10.000 Millions
CIN No.: [Company Identification No.]	U29199GJ1997PTC032397
PAN No.: [Permanent Account No.]	AAEFP3641G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Machines used to Manufacturer soft drink bottles.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a subsidiary of KHS GmbH, Germany. It is a well established company having a good track record. There appears slight dip in sales and profitability during 2012. However, general financial strength seems to be strong. Liquidity position appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal 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.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Jignesh Patel
Designation :	Assistant Manager
Contact No.:	91-79-66100000
Date :	19.07.2013

LOCATIONS

Registered Office :	53, Madhuban, Near Madalpur Underbridge, Ellisbridge P.O., Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26442729 / 26440331 / 26443236 / 66100000 / 2644033 / 26440331
Fax No.:	91-79-26421324 / 66100010
E-Mail :	info@mamata.com khs@khsindia.com mahendra@ad1.vsnl.net.in mamata@wilnetonline.net mamatagroup@mamata.com
Website :	www.khsindia.com www.khs.com
Head Office :	15, Madhuban Ellisbridge, Near Madalpur Underbridge, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-25832866
Factory :	Plot No. 14/16, GIDC, Phase – I, Hirapur, Chawkad, Vatva, Ahmedabad – 382435, Gujarat, India
Tel. No.:	91-79-5832023/24/25/25833581/26440331
Fax No.:	91-79-5832026/25832867/26421324
E-Mail :	khs@khsindia.com

DIRECTORS

As on 29.09.2012

Name :	Mr. Mahendra Narsinhbhai Patel
Designation :	Managing Director
Address :	15 Kairavi Bungalow, Near Sarthi Hotel, Vastrapur Road, Boadakdev, Ahmedabad-380015, Gujarat, India
Date of Birth/Age :	17.01.1949
Date of Appointment :	26.05.1997
DIN No.:	00104997
Name :	Mr. Yatindra Ramakant Sharma
Designation :	Managing Director
Address :	7 Royal Crescent, Bungalows, Thaltej, Ahmedabad – 380059, Gujarat, India
Date of Birth/Age :	14.03.1955
Date of Appointment :	01.05.2002
DIN No.:	00349038
Name :	Mr. Jlohann Grabenweger
Designation :	Nominee Director
Address :	Welserstrasse, 28 Ludwigshafenamrhein 67063, Germany
Date of Birth/Age :	02.01.1963
Date of Appointment :	19.01.2006
DIN No.:	01251313
Name :	Mr. Matthias Nimeyer
Designation :	Nominee Director
Address :	Pelikanstr 57, Hannover-30177, Germany
Date of Birth/Age :	19.05.1967
Date of Appointment :	06.09.2010
DIN No.:	02855100
Name :	Mr. Parthasarathi Ghose
Designation :	Director
Address :	16 Yogeshwar Bunglows, Gulab Tower Raod, Thaltej, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	06.02.1969
Date of Appointment :	25.03.2011
DIN No.:	03521131
Name :	Mr. Eike Sebastian Hagen
Designation :	Nominee Director
Address :	Welchselstr 40, Essen – 45136, Germany
Date of Birth/Age :	20.04.1976
Date of Appointment :	25.03.2011
DIN No.:	03525407
Name :	Mr. Anke Baerbel Fischer
Designation :	Chairman cum Managing Director
Address :	Beimdorf 31, Duesseldorf – 40547, Germany
Date of Birth/Age :	15.06.1965
Date of Appointment :	25.03.2011
DIN No.:	03525431
Name :	Mr. Marc Hartmann
Designation :	Nominee Director
Address :	An Der Thomaskirche 58, Duesseldorf, Germany – 40470
Date of Birth/Age :	12.01.1965
Date of Appointment :	14.05.2012
DIN No.:	05290468

KEY EXECUTIVES

Name :	Mr. Jignesh Patel
Designation :	Assistant Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
N Mahendra Patel	27490
M Nayana Patel	10
Mamata Machinery Private Limited, Gujarat, India	13750
KHS Machine UND- Anlagenbauy AG, Germany	945000
R Yatindra Sharma	13750
Total	1000000

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	94.50
Bodies corporate	1.38
Directors or relatives of Directors	4.12
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Machines used to manufacturer soft drink bottles.

Products :

Description of product or service category	ITC Code
Bottle cleaning and Drying machinery	84222020
Bottle filling machinery	84223000
Packing or Wrapping Machinery	84224000
Labelling machinery	84223000
Pasteuriser	84198950
Aerating beverage Machinery	84223000

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Bottling Machines	Nos.	243

Note: *Licensed capacity is not applicable in terms of Government of India’s Notification No. S.O.477 (E) dated July 25, 1991. Management is of the view that considering the nature of manufacturing activity, it is not possible to determine Installed Capacity on which auditors have placed reliance without verification, this being a technical matter.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• State Bank of India, Industrial Estate Branch, Vatva, Ahmedabad – 382445, Gujarat, India
• Standard Chartered Grindlays Bank, C. G. Road, Ahmedabad – 380006, Gujarat, India
• HDFC Bank Limited, Navrangpura Branch, Ahmedabad – 380009, Gujarat, India
• ICICI Bank Limited, JMC Branch

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Term loans from banks (Secured by Hypothecation of Vehicles Purchase there from)	12.213	5.783
Total	12.213	5.783

Banking Relations :	---
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Plot YOY 14 Block EP, Sector V, Saltlake Electronic Complex, Bidhan Nagar, Kolkata – 700091, West Bengal, India
PAN No.:	AAEFP3641G
Holding Company :	KHS GmbH, Germany
Ultimate Holding Company :	Salzgitter AG, Germany
Other related parties where there is significant influence and transactions have taken place:	· Mamata Airwings · Mamata Machinery Private Limited
Fellow Subsidiaries where common control exists and transactions have taken place:	· KHS Corpoplast GmbH and Company KG - Hamburg · KHS Asia Pte. Limited (Singapore) · KHS China GLM2 Company Limited (China) · KHS Industria De Maquinas Ltda (Brasil) · KHS Pacific Pty Limited - Victoria/Australia · KHS Inc - USA · Kloeckner Desma Machinery Private Limited · KHS AG (Thailand) Limited - Thailand · KHS Machine And Equipment (Qinhuangdao) Company Limited · KHS Mexico S.A.

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	10.000	10.000
(b) Reserves & Surplus	602.410	513.286
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	612.410	523.286
(3) Non-Current Liabilities
(a) long-term borrowings	12.213	5.783
(b) Deferred tax liabilities (Net)	8.960	12.334
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	21.173	18.117
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	469.960	322.364
(c) Other current liabilities	245.237	289.231
(d) Short-term provisions	71.790	49.929
Total Current Liabilities (4)	786.987	661.524
TOTAL	1420.570	1202.927
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	378.774	391.687
(ii) Intangible Assets	0.970	1.514
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	39.678	15.088
(e) Other Non-current assets	3.043	7.981
Total Non-Current Assets	422.465	416.270
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	342.786	324.133
(c) Trade receivables	180.364	287.842
(d) Cash and cash equivalents	425.180	138.686
(e) Short-term loans and advances	49.106	35.542
(f) Other current assets	0.669	0.454
Total Current Assets	998.105	786.657
TOTAL	1420.570	1202.927

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		10.000
2] Share Application Money		0.000
3] Reserves & Surplus		374.350
4] (Accumulated Losses)		0.000
NETWORTH		384.350
LOAN FUNDS
1] Secured Loans		11.252
2] Unsecured Loans		50.000
TOTAL BORROWING		61.252
DEFERRED TAX LIABILITIES		14.320
TOTAL		459.922
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		415.159
Capital work-in-progress		2.240
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	368.841
	Sundry Debtors	291.405
	Cash & Bank Balances	94.328
	Other Current Assets	0.312
	Loans & Advances	59.214
Total Current Assets		814.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	212.398
	Other Current Liabilities	518.780
	Provisions	40.399
Total Current Liabilities		771.577
Net Current Assets		42.523
MISCELLANEOUS EXPENSES		0.000
TOTAL		459.922

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1448.629	2204.418	1777.418
		Other Income
		TOTAL (A)	1448.629	2204.418	1777.418
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1266.916	1936.659	1601.628
		Advertising Expenses
		TOTAL (B)	1266.916	1939.659	1601.628
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		181.713	264.759	175.790
Less	FINANCIAL EXPENSES (D)		2.679	3.428	4.640
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		179.034	261.331	171.150
Less/ Add	DEPRECIATION/ AMORTISATION (F)		42.682	42.031	40.034
	PROFIT BEFORE TAX (E-F) (G)		136.352	219.300	131.116
Less	TAX (H)		23.983	74.554	47.445
	PROFIT AFTER TAX (G-H) (I)		112.369	144.746	83.671
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		428.199	303.764	231.418
Less	APPROPRIATIONS
		Transfer to General Reserve	11.300	14.500	8.400
		Dividend	20.000	5.000	2.500
		Tax on Dividend	3.245	0.811	0.425
	BALANCE CARRIED TO THE B/S		506.023	428.199	303.764
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	95.758	221.284	36.150
	TOTAL EARNINGS		95.758	221.284	36.150
	IMPORTS
		Raw Materials	NA	NA	591.134
		Bought Out Components	NA	NA	53.638
		Capital Goods	NA	NA	0.256
	TOTAL IMPORTS		NA	NA	645.028
	Earnings Per Share (Rs.)		112.369	144.75	83.67

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.76	6.57	4.71
Return on Total Assets (PBT/Total Assets}	(%)	9.60	18.23	16.11
Return on Investment (ROI) (PBT/Networth)		0.22	0.42	0.34
Debt Equity Ratio (Total Debt /Networth)		0.02	0.01	2.17
Current Ratio (Current Asset/Current Liability)		1.27	1.19	1.06

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular	31.03.2012	31.03.2011	31.03.2010
Current maturities of long-term debt	10.536	15.646	Not Available

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	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
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

LITIGATIONS DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 461 of 2012

Status : PENDING ( Converted from : ST/1386/2012 ) CCIN No : 001092201200461

Last Listing Date: 09/08/2012

Coram

· HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI

· HONOURABLE MR.JUSTICE N.V.ANJARIA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX II	MRS MAUNA M BHATT for: Appellant(s)  1

S.NO.	Name of the Respondant	Advocate On Record
1	KHS MACHINERY PRIVATE LIMITED	MR MANISH J SHAH for :Opponent(s)  1

Presented On	: 10/07/2012	Registered On	: 10/07/2012
Bench Category	: DIVISION BENCH	District	: AHMEDABAD
Case Originated From	: THROUGH ADVOCATE	Listed	: 1 times
StageName	: BOARD NO. I-A
Classification	DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act	INCOME-TAX ACT, 1961

OFFICE DETAILS

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	10/07/2012	CERTIFIED COPY	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	6	MRS MAUNA M BHATT:1
2	10/07/2012	MEMO OF APPEAL/PETITION/SUIT	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	20	MRS MAUNA M BHATT:1
3	15/08/2012	VAKALATNAMA	MR MANISH J SHAH ADVOCATE for RESPONDENT(s)  1	-	MR MANISH J SHAH:1
4	15/08/2012	VAKALATNAMA	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	-	MRS MAUNA M BHATT:1
5	11/10/2012	VAKALATNAMA	MR MANISH J SHAH ADVOCATE for RESPONDENT(s)  1	5	MR MANISH J SHAH:1

COURT PROCEEDINGS

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	09/08/2012	3	-	BOARD NO. I-A	FIXED RULE / ADMIT	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE N.V.ANJARIA

AVAILABLE ORDERS

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	View	Download
1	TAX APPEAL/461/2012	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE N.V.ANJARIA	09/08/2012	N	N	View	Download

CERTIFIED COPY

S. No.	Applicant Name	Application Type	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MRS MAUNA M BHATT	ORDINARY	14/08/2012	O/26860/2012	09/08/2012	29/08/2012	30/08/2012	Delivered	-

YEAR IN RETROSPECT:

This year the Company faced a tough time and recorded a 35% reduction in sales. This in turn effected a 22% reduction in profit after tax in comparison to 2010 -11.

The Company tried its best to reduce the material costs and these were significantly reduced by 8% of the sales under its cost reduction programme 2011-12. This has been possible due to increase in the use of indigenous materials. They have been successful in bringing down there reliance on imports from 30% to 22% during the year under consideration. This has helped us to control the cost of manufacturing and get profitability of 12.5% before interest, tax and depreciation. This is at the same performance level of 2010 -11.

The company has been able to win excellent goodwill from its customers. KHS India has again been awarded the Best Supplier Performance Award – 2011-12 by Coca Cola India.

The audit conducted by SABMiller verifies that the commercial capacity and quality management system of KHS India are in line with the SABMiller Quality Standards and Processes. They got an Accreditation Certificate from SABMiller plc valid till March 2016 and became the certified vendor of SABMiller.

The company also received a Star performer Award by EEPC (Engineering Export Promotion Council) in the product group of Miscellaneous General Purpose Machinery.

The company is looking forward to much broad based business and profitability growth next year. They have taken steps for global product manufacturing at competitive costs for expanding their inter-company business for coming year. They expect some good order intake for next year in light of good growth in beverage industry despite of economic challenges in country.

FIXED ASSETS:

· Freehold Land

· Factory Building

· Plant and Machinery

· Computer

· Furniture and Fixture

· Vehicles

· Office Equipment

· Computer Software

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.59.71
UK Pound	1	Rs.90.59
Euro	1	Rs.78.22

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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

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.