MIRA INFORM REPORT

Report Date :

03.06.2013

IDENTIFICATION DETAILS

Name :	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED
Registered Office :	944 (Old 1680/31) Ramani’s Regency, Trichy Road, Ramanathapuram, Coimbatore-641045, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.11.2003
Com. Reg. No.:	18-010851
Capital Investment/ Paid-up Capital:	Rs.100.376 Millions
CIN No.: [Company Identification No.]	U21012TZ2002PTC010851
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Kraft Paper and Duplex Board.
No. of Employees:	850 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. 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.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	BBB (Long Term Issuer Rating)
Rating Explanation	The default risk is currently low. The capacity for payment of financial commitment is considered adequate.
Date	01.04.2013

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 PARTED BY

Name :	Mr. Sri Nivasan
Designation :	General Manager
Contact No.:	91-9600923881

LOCATIONS

Registered Office / Corporate Office :	944 (Old 1680/31) Ramani’s Regency, Trichy Road, Ramanathapuram, Coimbatore-641045, Tamilnadu, India
Tel. No.:	91-422-4300445
Mobile No.:	91-9600923881 (Mr. Srinivasan)
Fax No.:	91-422-4300449
E-Mail :	sales@sripathipaperboards.com karhikeyan@sripthi.net gmf@sripathi.net
Website :	http://www.sripthipaperboards.com
Area :	5000 Sq. Ft.
Location :	Owned
Factory 1 :	2, Sukkiravarpatti, Sivakasi-626130, Tamilnadu, India
Tel. No.:	91-4562-238171 / 238117 / 238014 / 238049
Fax No.:	91-4562-238147
E-Mail :	sales@sripathi.net
Area :	300 acer
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Ramachandran Krishnasamy
Designation :	Chairman and Managing Director
Address :	2/3, R K Gardens, Chandra Gandhi Nagar, Extension Sowripalayam Post, Coimbatore-641028, Tamilnadu, India
Date of Birth/Age :	30.04.1961
Date of Appointment :	19.11.2003
PAN No.:	AFXPK5490E
DIN No.:	00251421

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	29/05/2002	29/05/2002	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Managing director	19/08/2002	19/08/2002	Active	NO
3	U51909TZ2003PTC010770	SINGLE WINDOW COMMODITIES PRIVATE LIMITED	Director	11/9/2003	11/9/2003	Active	NO
4	L67120TZ1995PLC005763	SINGLE WINDOW SECURITIES LIMITED	Managing director	1/10/2009	1/10/2004	Active	NO
5	U29120TZ2010PTC015883	K.R.S. ENGINEERING INDIA PRIVATE LIMITED	Director	10/3/2010	10/3/2010	Active	NO
6	U02102TZ2005PTC011874	SUDIRMAN PAPER PRIVATE LIMITED	Director	11/3/2010	11/3/2010	Amalgamated	NO
7	U74900TN2008NPL067185	SOUTH INDIAN KRAFT PAPER MILLS ASSOCIATION	Director	28/09/2011	28/09/2011	Active	NO

Name :	Mr. Krishnasamy Ravichandran
Designation :	Managing Director
Address :	Old No.725/6 C, New No.350, Standard Colony, Thiruthangal, Sivakasi, Virudhunagar-626130, Tamilnadu, India
Date of Birth/Age :	29.06.1963
Date of Appointment :	19.11.2003
PAN No.:	AAPPR9861F
DIN No.:	01120533

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Managing director	29/05/2002	29/05/2002	-	Active	NO
2	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	-	Not Available for eFiling	NO
3	U74900TN2008NPL067185	SOUTH INDIAN KRAFT PAPER MILLS ASSOCIATION	Director	30/09/2010	3/3/2010	28/09/2011	Active	NO
4	U02102TZ2005PTC011874	SUDIRMAN PAPER PRIVATE LIMITED	Director	11/3/2010	11/3/2010	-	Amalgamated	NO

Name :	Mr. Ayyappan Ragupathy
Designation :	Whole Time Director
Address :	471 A, Vadakku Radaveethi, Thiruthangal, Virudhunagar-626130, Tamilnadu, India
Date of Birth/Age :	11.02.1958
Date of Appointment :	19.11.2003
PAN No.:	AGDPR8092G
DIN No.:	01128755

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Whole-time director	19/08/2002	19/08/2002	Active	NO

Name :	Mr. Alagamperumal Subbiah
Designation :	Director
Address :	54, Azhagapuri, Virudhunagar-626005, Tamilnadu, India
Date of Birth/Age :	03.06.1960
Date of Appointment :	19.11.2003
DIN No.:	01240122

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Director	19/08/2002	19/08/2002	Active	NO

Name :	Mr. Veerappan Nagaraj
Designation :	Director
Address :	1/18, Azhagapuri, Meesalur PO Virudhunagar-626003, Tamilnadu, India
Date of Birth/Age :	09.05.1962
Date of Appointment :	19.11.2003
DIN No.:	01240207

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Director	19/08/2002	19/08/2002	Active	NO

KEY EXECUTIVES

Name :	Mr. Sri Nivasan
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
R Krishnaswamy	4292041
K Chitrabanu	3146270
R Jayaprakash	100000
B Senthil Kumar	52500
S. Jagannathan	27320
P.R. Krishnamoorthy	5000
V. Vasanthi	50000
Kalarani	50000
Megastox Fin Research Private Limited, India	746950
B. Anuradha	10000
K Ravichandran	761513
R Rukmani	25000
V Nagaraj	339875
A Raghupathi	132896
A Subbiah	198275
S Alagudurai	100000
TOTAL	10037640

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Bodies corporate	7.44
Directors or relatives of Directors	92.56
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of Kraft Paper and Duplex Board.

Products :

ITC Number of Products	48
Description of Product or services	Paper and Board

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Value
Licensed Capacity	TPA	72000
Installed Capacity	TPA	NA
Actual Production
Finished Goods	TPA	71150.98

GENERAL INFORMATION

No. of Employees :

850 (Approximately)

Bankers :

· City Union Bank of India, 13 – Chairman NPSN Arumuga Nadar Road, Sivakasi – 626123, Tamilnadu, India

· Industrial Development Bank of India Limited, Stock Exchange Building, 683-686, Trichy Road, Coimbatore, Tamilnadu, India

· State Bank of Travancore, Coimbatore Branch, 15, SNV Ashirvad, State Bank Road, Coimbatore-641018, Tamilnadu, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Term Loans From Banks	538.783	402.651
Term Loans From Others	9.900	16.200
Other loans and advances	0.265	2.394
Loans repayable on demand from Bank	635.542	364.807
Loans repayable on demand from Others	252.569	159.904
TOTAL	1437.059	945.956

Banking Relations :	--
Auditors :
Name :	Bakthavachalam and Company Chartered Accountant
Address :	15/67 A, KG Layout, Bharathi Park, 8^th Cross Saibaba Colony, Coimbatore-641011, Tamilnadu, India
PAN No.:	AADFB5331Q
Associates :	Single Window Securities Limited Balaji Packaging Industries

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs. 130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10037640	Equity Shares	Rs.10/- each	Rs. 100.376 Millions

AS ON 29.09.2012

Authorised Capital : Rs. 180.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 150.376 Millions

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		100.376	100.000	100.000
2] Share Application Money		97.751	31.611	23.032
3] Reserves & Surplus		324.921	248.985	201.209
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		523.048	380.596	324.241
LOAN FUNDS
1] Secured Loans		1437.059	945.956	592.561
2] Unsecured Loans		7.287	7.982	44.030
TOTAL BORROWING		1444.346	953.938	636.591
DEFERRED TAX LIABILITIES		105.706	87.194	0.000
TOTAL		2073.100	1421.728	960.832
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1212.162	785.636	454.493
Capital work-in-progress		34.595	63.162	156.188
INVESTMENT		0.000	0.079	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	443.809	209.261	129.014
	Sundry Debtors	431.705	332.622	199.816
	Cash & Bank Balances	182.078	58.700	60.541
	Other Current Assets	13.994	6.991	0.000
	Loans & Advances	179.383	238.039	108.007
Total Current Assets		1250.969	845.613	497.378
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	200.690	96.780	106.955
	Other Current Liabilities	202.208	147.907	24.292
	Provisions	21.728	28.075	16.100
Total Current Liabilities		424.626	272.762	147.347
Net Current Assets		826.343	572.851	350.31
MISCELLANEOUS EXPENSES		0.000	0.000	0.120
TOTAL		2073.100	1421.728	960.832

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2497.406	1890.800	1336.500
		Income from Windmill Operations	NA	164.200	24.000
		Other Income		18.700	3.300
		TOTAL (A)	NA	2073.700	1363.800
Less	EXPENSES
		Operating Expenses	NA	1797.700	1173.400
		Difference in Inventory		4.200	(8.900)
		TOTAL (B)	NA	1801.900	1164.500
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		325.459	271.800	199.300
Less	FINANCIAL EXPENSES (D)		NA	82.700	55.100
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	189.100	144.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	64.000	49.600
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		NA	125.100	94.600
Less	TAX (H)		NA	42.600	29.500
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		NA	82.500	65.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	68.600	3.500
	BALANCE CARRIED TO THE B/S		NA	151.100	68.600
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	239.600	253.247	75.076
	TOTAL EARNINGS		239.600	253.247	75.076
	IMPORTS VALUE		654.300	534.312	331.938
	Earnings Per Share (Rs.)		--	8.38	6.51

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	3.98	4.77
Net Profit Margin (PBT/Sales)	(%)	NA	6.62	7.08
Return on Total Assets (PBT/Total Assets}	(%)	NA	7.67	9.94
Return on Investment (ROI) (PBT/Networth)		NA	0.33	0.29
Debt Equity Ratio (Total Debt /Networth)		2.76	2.51	1.96
Current Ratio (Current Asset/Current Liability)		2.95	3.10	3.38

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	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	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)	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Unsecured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Term Loans From Banks	7.287	7.982
TOTAL	7.287	7.982

OUTLOOK

The average per capita consumption of paper is low in India at 12 kgs when compared to Asia’s average of 35 kgs and hence expected to grow. The emergence of FDI in retail sector is expected to trigger the packaging requirements. The company is geared for this and equipped with the latest state of the art machinery with capacity.

FORM 8

Corporate identity number of the company	U21012TZ2002PTC010851
Name of the company	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	944 (Old 1680/31) Ramani’s Regency, Trichy Road, Ramanathapuram, Coimbatore-641045, Tamilnadu, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10023498
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	State Bank of Travancore, Coimbatore Branch, 15, SNV Ashirvad, State Bank Road, Coimbatore-641018, Tamilnadu, India
Nature of instrument creating charge	Form C and I-8 - Supplemental Agreement of Loan for increase in the overall working cap limit Form C and I-9 - Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall working cap limit Form C and I-12 - Lt reg the grant of individual limits within the overall working cap limit Form SF-31 - Shipping Lien Form SF-27 - Trust Letter (For Export) all dated 21.11.2012
Date of instrument Creating the charge	21.11.2012
Amount secured by the charge	Rs. 1215.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest For CC- 2.50%+BR present effective rate 12.75% , For EPC/FDBP/FBEP-As per card rate applicable from time to time, For SLC-3.50%+BR present effective rate 13.75%.For other facilities - no change Terms of repayment For revised Working capital limits - On Demand For others - existing terms continue Margin RM, SIP, FG, Receivable (cover period 120 days) - 20% Extent and operation of the charge The revised working capital limit of Rs. 710.000 Millions (excess of Rs 50.000 Millions) is secured by Ist paripassu charge with IDBI and SBI over entire Current Assets and IInd charge (paripassu with IDBI Bank) on the overall Fixed assets (both present and future) excluding exclusively charged. Charge on the other facilities sanctioned remains unchanged.
Short particulars of the property charged (Including location of the property)	Ist paripassu charge with IDBI and SBI over entire Current Assets and IInd charge (paripassu with IDBI Bank) on the overall Fixed assets (both present and future) excluding exclusively charged situated at all units of the company at Sivakasi, Tamilnadu.
Date of instrument modifying the charge	11.05.2012
Particulars of the present modification	Rs Millions Existing Revised CC 350.000 400.000 DBP (Clean) (5.000) (5.000) EPC/PC/etc (100.000) (100.000) SLC 50.000 50.000 LC/BG 260.000 260.000 Total WC 660.000 710.000 Term Lonas 407.500 405.900 New Corp TL 100.000 100.000 Total 1167.500 1215.900

FIXED ASSETS

• Factory Land
• Wind Mill
• Factory Building
• Borewell
• Machinery
• Computer
• Furniture and Fixtures
• Vehicles
• Wind mill

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. 56.49
UK Pound	1	Rs. 86.00
Euro	1	Rs. 73.68

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.