MIRA INFORM REPORT

Report Date :

31.07.2013

IDENTIFICATION DETAILS

Name :	HALDEX INDIA LIMITED
Registered Office :	B -17, MIDC, Ambad, Nasik – 422010, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.10.1998
Com. Reg. No.:	11-118876
Capital Investment / Paid-up Capital :	Rs.30.000 Millions
CIN No.: [Company Identification No.]	U99999MH1998PLC118876
PAN No.: [Permanent Account No.]	AABCH9044B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of manual and automatic slack adjusters and automotive components.
No. of Employees :	250 (Approximately)

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 440000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Haldex AB, Sweden. It is an established company having satisfactory track record. The company has recorded better growth in its sales turnover but has seen a slight dip in the net profitability during 2012. Financial position appears to be decent. Trade relations are fair. Business is active. Payment terms are usually correct. In view of strong holding company, the subject can be considered normal for 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.

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

MANAGEMENT NON-COOPERATIVE

Contact No.: 91-253-6699501/ 526

LOCATIONS

Registered Office/ Factory :	B-71, MIDC, Ambad, Nasik – 422010, Maharashtra, India
Tel. No.:	91-253-2380091/ 93
Fax No.:	91-253-2380729
E-Mail :	binu.sivanathan@haldex.com a.budhia@haldexindialtd.com vijay.dhanrao@haldex.com amol.borse@haldex.com anand.budhia@haldex.com vishal.shishodia@haldex.com airbrake@haldex.com dharmendra.goyal@haldex.com wim.goossens@haldex.com
Website :	http://www.haldexindia.in
Area :	10000 sq. ft.
Location :	Owned
Factory 2 :	B-8, MIDC, Ambad, Nasik – 422010, Maharashtra, India

DIRECTORS

(AS ON 02.07.2011)

Name :	Mr. Sunil Prem Nath Kaul
Designation :	Director
Address :	House No. 8. Atul Excellency, Sr. No. 2071'2, Kaspate Vast! Wakad, Pune - 411027, Maharashtra, India
Date of Birth/Age :	13.08.1850
Date of Appointment :	01.04.2010
DIN No.:	00110549
Name :	Mr. Jay C. Longbottom
Designation :	Director
Address :	1525, National Avenue. Rockford IL, Rockford – 61103, United States of America
Date of Birth/Age :	12.07.1953
Date of Appointment :	29.03.2007
DIN No.:	01450311
Name :	Mr. Mahendra Kumar Goyal
Designation :	Director
Address :	18, Anand Farm, 25.3 Km Palam Gurgaon Road, Shri Krishna Chowk, Sector – 22, Gurgaon – 122016,  Haryana, India
Date of Birth/Age :	11.01.1969
Date of Appointment :	30.09.2009
DIN No.:	02605616
Name :	Mr. Andreas Hans Ekberg
Designation :	Director
Address :	Olivias Street, 16, Bjarred – 23742, Sweden
Date of Birth/Age :	28.101969
Date of Appointment :	30.09.2009
DIN No.:	03147223
Name :	Mr. Sandeep Balooja
Designation :	Director appointed in casual vacancy
Address :	S. No.32/2, Rakshak Society, Pimole Nilakh, Pune – 411027, Maharashtra, India
Date of Birth/Age :	09.05.1957
Date of Appointment :	30.09.2009
DIN No.:	02940730
Name :	Mr. Wim Goossens
Designation :	Director appointed in casual vacancy
Address :	140 RTE Dela, Wantinau, Strasbourg – 67009, France
Date of Birth/Age :	24.05.1975
Date of Appointment :	29.03.2007
DIN No.:	03358698

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 02.07.2011)

Names of Shareholders	No. of Shares
Asia Invetsments Private Limited, India	1199995
Jagdeep Singh Oberoi	1
Deepak Chopra	1
Ramni Sood	1
Mahendra Kumar Goyal	1
A B Haldex, Sweden	1800000
K.K. Jaggi	1
Total	3000000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	60.00
Bodies corporate	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of manual and automatic slack adjusters and automotive components.

Products :

Products Description	Item Code No.
Parts for Brake of Motor Vehicle	87089900

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Slack Adjusters	Nos	NA	600000	274631
SABA	Nos	NA	600000	486662
CONSEP	Nos	NA	275000	105871

GENERAL INFORMATION

No. of Employees :

Information declined by management

Bankers :

· Kotak Mahindra Bank Limited

15-16 UGF, Ambadeep Building, K G Marg, Connaught Place, New Delhi – 110001, Delhi, India

· Bank of Maharashtra

Ambad Industrial Estate Branch, Nashik – 422010, Maharashtra, India

· Citibank N.A.

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Long Term Borrowings
Term Loan from Banks Term loan from bank is secured by i) An exclusive charge on immovable properties being land and building situated at Plot No. B71 and Plot No. D8 MIDC Ambad, Nasik, ii) First charge on the current assets and movable fixed assets of the Company.	0.000	7.904
Short Term Borrowings
Working capital loans from banks (Working Capital Loans from banks repayable on demand)	82.733	0.000
Total	82.733	7.904

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Mutha Towers, 5th Floor, Suite No. 8, Opposite Airport Road, Yerwada, Pune – 411 006, Maharashtra, India
PAN No.:	AADFP9359C
Holding Company :	· Haldex AB, Sweden
Fellow Subsidiaries :	· Haldex Brake Products Limited - UK · Haldex Brake Products AB – Sweden · Haldex Brake Products GmbH – Germany · Haldex Inc.- USA · Haldex Do Brasil Industries e Comercio Limited – Brasil · Haldex Europe S. A.S – France · Haldex Korea Limited – Korea · Haldex Products De Mexico S.A. DE C.V · Haldex Vehicle Products (Suzhou ) Company Limited – China
Subsidiaries of Asia Investment Private Limited:	· Anand Automotive Systems Limited · Perfect Cicle India Limited · Victor Gasket India Limited
Investing Company in relation to which the Company is a Joint Venture :	· Asia Investment Private Limited

CAPITAL STRUCTURE

(AS ON 28.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- Each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- Each	Rs.30.000 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	30.000	30.000
(b) Reserves & Surplus	79.350	55.355
(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)	109.350	85.355
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	7.904
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	33.643	34.664
Total Non-current Liabilities (3)	33.643	42.568
(4) Current Liabilities
(a) Short term borrowings	82.733	0.000
(b) Trade payables	142.391	129.601
(c) Other current liabilities	36.366	71.032
(d) Short-term provisions	46.238	74.727
Total Current Liabilities (4)	307.728	275.360
TOTAL	450.721	403.283
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	126.028	136.766
(ii) Intangible Assets	6.639	0.991
(iii) Capital work-in-progress	9.441	9.441
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	1.140	1.256
(d) Long-term Loan and Advances	3.796	3.227
(e) Other Non-current assets	4.272	17.400
Total Non-Current Assets	151.316	169.081
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	99.688	102.686
(c) Trade receivables	127.991	89.758
(d) Cash and cash equivalents	22.751	17.009
(e) Short-term loans and advances	16.960	22.205
(f) Other current assets	32.015	2.544
Total Current Assets	299.405	234.202
TOTAL	450.721	403.283

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		30.000
2] Share Application Money		0.000
3] Reserves & Surplus		61.444
4] (Accumulated Losses)		0.000
NETWORTH		91.444
LOAN FUNDS
1] Secured Loans		100.254
2] Unsecured Loans		24.709
TOTAL BORROWING		124.963
DEFERRED TAX LIABILITIES		5.570
TOTAL		221.977
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		153.617
Capital work-in-progress		9.945
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	95.362
	Sundry Debtors	50.387
	Cash & Bank Balances	23.784
	Other Current Assets	0.000
	Loans & Advances	59.933
Total Current Assets		229.466
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	108.015
	Other Current Liabilities	4.115
	Provisions	58.921
Total Current Liabilities		171.051
Net Current Assets		58.415
MISCELLANEOUS EXPENSES		0.000
TOTAL		221.977

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1049.338	910.503	600.443
		Other Income	4.599	7.122	8.374
		TOTAL (A)	1053.937	917.625	608.817
Less	EXPENSES
		Cost of Materials Consumed	720.253	595.131
		Purchases of Stock in trade	0.000	0.655
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(10.329)	1.962	536.980
		Employee benefit Expenses	36.788	34.069
		Other Expenses	136.412	113.495
		Prior Period Items	0.000	4.324
		TOTAL (B)	883.124	749.636	536.980
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		170.813	167.989	71.837
Less	FINANCIAL EXPENSES (D)		9.068	8.775	22.533
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		161.745	159.214	49.304
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.716	33.023	13.468
	PROFIT BEFORE TAX (E-F) (G)		139.029	126.191	35.836
Less	TAX (H)		44.837	27.564	5.575
	PROFIT AFTER TAX (G-H) (I)		94.192	98.627	30.261
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	44.775	42.109
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	9.863	3.026
		Interim Dividend	NA	30.000	0.000
		Tax on Interim Dividend	NA	4.983	0.000
		Proposed Dividend	NA	60.000	21.000
		Tax on Proposed Dividend	NA	9.733	3.568
	BALANCE CARRIED TO THE B/S		NA	28.823	44.775
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	326.714	287.771	200.637
		Commission	0.000	1.575	2.100
		Services	0.029	0.357	0.721
	TOTAL EARNINGS		326.743	289.703	203.458
	IMPORTS
		CIF value of Imports	278.282	244.251	192.906
		Capital Goods	0.000	1.717	0.629
	TOTAL IMPORTS		278.282	245.968	193.535
	Earnings Per Share (Rs.)		31.40	32.88	10.09

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.94	10.75	4.97
Net Profit Margin (PBT/Sales)	(%)	13.25	13.86	5.97
Return on Total Assets (PBT/Total Assets}	(%)	31.59	32.14	9.35
Return on Investment (ROI) (PBT/Networth)		1.27	1.48	0.39
Debt Equity Ratio (Total Debt/Networth)		0.76	0.09	1.37
Current Ratio (Current Asset/Current Liability)		0.97	0.85	1.34

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL: 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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	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

PERFORMANCE AND OPERATIONS

INDIAN ECONOMY

India’s GDP grew at 6.9 % in 2011-12 registering a slower growth rate for the second consecutive year. This is perhaps the slowest growth of the economy since 2003, with exception of 2008-09. While these figures paint rather black picture, when they view them in the global context, India remains the front runner in growth terms. Figures for June 2012 show a drip in GDP growth rates which is now touching 1.8 percent. This is the third fall in the last four months. The World Bank has, in its report title Global Economic Projects estimated that the Indian economy will grow at 6.9% 7.2%, 7.4% (at factor cost) over the next three fiscal years. This is far ahead of most global economies. Thus, while short term macroeconomic indicators appear to be below expectations, the long term forecasts for India are expected to remain on course.

AUTO INDUSTRY

The Indian automobiles industry and more so, the Indian auto components industry continues to be strongest sector and account for large percentage of India’s manufacturing GDP. It is estimated that the overall automobile sales in India will grow by 10-12 percent in 2012-13 with supportive government policies, launch of new models and intensifying enthusiasm for cars among Indian consumers. Financials firms such as Rothschild UK forecast that India would be the third largest auto industry in volumes by 2015. Almost 60% of the turnover of the Indian auto component industry comes from domestic market. Thus, the Indian auto components industry, currently estimated at Rs.1600 Billion (USD 30.77 Billion) is expected to grow at a CAGR of 11.7 percent over 2011-15 on the back of the growth in Indian automobile industry.

DOMESTIC SALES

The Production of Commercial Vehicles had grown by 19.83 percent during 2011-12 against same period last year. Medium and Heavy Commercial Vehicles grown by 10.83 percent and Light Commercial Vehicles recorded growth of 27.33 percent. During the year, the sales volume were contributed by Self Setting Automatic Brake Adjuster (S-ABA), Condensor-cum- Separator (Consep), Manual Brake Adjuster and Worm Wheel. The Company performed well in all the product portfolio.

Turnover for the year ended March 31, 2012 was Rs.1049.300 millions as compared to Rs.910.5 millions in the previous year, reflecting a growth of 15% as compared to previous year and the Profit before Depreciation, Interest and Taxes (PBDIT) was 174.3 millions as compared to Rs.168.0 million in the previous year. Net Profit (PAT) for the year ended March 31, 2012 was Rs.96.5 millions as compared to Rs.98.6 millions in the previous year. The growth in profitability was contributed mainly by reduction of Raw Material cost by way of localization and price reduction.

The Company also made effort to bring down the fixed cost by implementing various cost control measures.

The major thrust of the company in the near future is to add new products for Indian market and consolidate the market share on ABA in domestic market. It will be of great advantage to explore the possibility of supplying ABA’s to cost sensitive market outside India to improve over all global market shares and improve profitability. Expansion of Product portfolio and dynamic strategy to tap after market potential will also boost organic growth of the company.

During the year, the company exported products worth Rs.327.000 millions as against Rs.288.000 millions in the previous year, showing sign of recovery from the economic slowdown by clocking a growth of 14% over the previous year. The Company exports its products mainly to its Collaborators and their affiliates.

BUSINESS OUTLOOK

Determined to consolidate the market position, the company has made strides to become a significant player in its product category in Indian market. The rising metal prices and frequent price reduction by competitors is a concern for the Company. The company is taking effective measures by localization of imported material and cost control measures to maintain its profitability.

Due to regulatory changes, vehicle manufacturers in many countries are switching over from MBA to Automatic Slack Adjusters, which is resulting in gradual shift from Manual to Automatic Brake Adjuster.

CONTINGENT LIABILITIES IN RESPECT OF

Particulars	31.03.2012	31.03.2011	31.03.2010
	(RS. IN MILLIONS)
Demand/ Show cause notice issued by Joint Director of Foreign Trade in respect of DEPB licenses*	43.958	43.958	43.958
Service Tax matters*	3.008	3.008	2.281
Bills Discounted with Bank	51.792	21.126	137.402
Income Tax matters*	1.266	0.461	0.461
Total	100.024	68.553	184.102

i) It is not practicable for the Company to estimate the timings of each outflow, if any, in respect of the above pending resolution of the respective proceedings.

ii) The Company does not expect any reimbursements in respect of the above contingent liabilities.

INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation/ Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10220467	23/02/2011 *	93,300,000.00	KOTAK MAHINDRA BANK LIMITED	15-16 UGF, AMBADEEP BUIDLING, K G MARG, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA	B09308784
2	10011507	09/07/2008 *	140,000,000.00	CITIBANK N.A.	RUSHIRAJ PRESIDENCY, OPP. BHOSALA MILITARY SCHOOL, PLOT NO. 52 & 53, D'SOUZA COLONY, COLLEGE ROAD, NASHIK, MAHARASHTRA - 422005, INDIA	A43532472

* Date of charge modification

FIXED ASSETS:

· Land

· Buildings – Factory

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Motor Vehicle

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 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.59.30
UK Pound	1	Rs.91.18
Euro	1	Rs.78.71

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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	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		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	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.