MIRA INFORM REPORT

Report Date :

22.06.2013

IDENTIFICATION DETAILS

Name :	WELLKNOWN POLYESTERS LIMITED
Registered Office :	14^th Floor, “B” Wing, Nirmal, 241/242, Backbay Reclamation, Nariman Point, Mumbai – 400 021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss Account)
Date of Incorporation :	23.10.1996
Com. Reg. No.:	11-103477
Capital Investment / Paid-up Capital :	Rs.144.945 Millions (As on 31.03.2011)
CIN No.: [Company Identification No.]	U17114MH1996PLC103477
PAN No.: [Permanent Account No.]	AAACW1018K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Texturised and Polyester Yarns.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 13000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Wellknown Group. It is the biggest manufacturer of Air Textured yarn in India. It is well an established and reputed company having good track. Fundament seems healthy and strong. Financially company performance appears good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal 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.

EXTERNAL AGENCY RATING

May 2013

CRISIL has kept is all outstanding rating under continuous surveillance. CRISIL is yet to secure adequate from the company.

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. Anil
Designation :	Accounts Head
Contact No.:	91-22-66207000
Date :	21.06.2013

LOCATIONS

Registered Office/ Corporate Office :	14^th Floor, “B” Wing, Nirmal, 241/242, Backbay Reclamation, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22070054/ 66207000
Fax No.:	91-22-22070054/ 66207050
E-Mail :	wtil@vsnl.com info@welknown.net.in
Website :	http://www.wellknownpolyester.com http://www.wellknowntextile.com
Location:	Owned
Factory:	Plot No.178, 185, Dabhel Industrial Co-operative Society Limited, Nani Daman, Daman – 396 210, India
E-Mail :	info@wellknown.net.in
Branch Office :	D/423 International Trade Centre, Majura Gate, Surat, Gujarat, India
Tel No.:	91-261-3255945
Fax No.:	91-261-3927155

DIRECTORS

As on: 28.09.2012

Name :	Mr. Anil Madanlal Gupta
Designation :	Managing Director
Address :	9/41, Joothica Building, Sleater Road, Greater Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	01.09.1964
Date of Appointment :	01.04.2012
DIN No.:	01376458
Name :	Mr. Ashok Madanlal Gupta
Designation :	Whole Time Director
Address :	2/7, Joothica Building, Sleater Road, Greater Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	30.09.1959
Date of Appointment :	01.10.2010
DIN No.:	01510569
Name :	Mrs. Latadevi Madanlal Gupta
Designation :	Director
Address :	9/41, Joothica Building, Sleater Road, Greater Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	12.01.1939
Date of Appointment :	29.09.2009
DIN No.:	02489852

KEY EXECUTIVES

Name :	Mr. Anil
Designation :	Accounts Head

MAJOR SHAREHOLDERS

As on: 28.09.2012

Names of Equity Shareholders	No. of Shares
Anil Kumar Gupta	2407419
Charulata Gupta	1121157
Madanlal Gupta, Karta Madanlal Gupta- HUF	38860
Ashok Kumar Gupta Karta Ashok Kumar Gupta HUF	37607
Anil Gupta, Karta Anil Gupta HUF	123776
Latadevi Gupta	542
Rahul A. Gupta, NG Anil Gupta	1288560
Saakshi A. Gupta Ng. Ashok Kumar Gupta	21310
Wellknown Hitech Projects Private Limited, India	53049
Wellknown Technologies Private Limited, India	1205208
Wellknown Textiles Industries Private Limited, India	5913907
Total	12211395

Names of Preference Shareholders	No. of Shares
Anil Gupta	1377
Charulata Gupta	245
Madanlal Gupta, Karta Madanlal Gupta, HUF	269
Ashok Gupta, Karta Ashok Gupta HUF	103
Anil Gupta, Karta Anil Gupta, HUF	60
Rahul A. Gupta NG Anil Gupta	633
Saakshi A. Gupta NG Anil Gupta	435
Wellknown Technologies Private Limited, India	167939
Wellknown Textile Industries Private Limited, India	255000
Total	426061

As on: 31.03.2013

Names of Allottees (Preference Shares)	No. of Shares
Ashtavinayak Agrofarms Private Limited, India	200000
Total	200000

As on: 01.02.2013

Names of Allottees (Preference Shares)	No. of Shares
Wellknown Textile Industries Private Limited, India	100000
Wellknown Technologies Private Limited, India	100000
Total	200000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Bodies corporate	58.73
Directors or relatives of Directors	41.27
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Texturised and Polyester Yarns.

Products :

Product Description	ITC Code
Synthetic Filament Yarn	5402
Texturised and Twisted Yarn	54023300

Exports :

Products :

Finished Goods

Countries :

· Egypt

· Maxico

Imports :

Products :

Raw Material

Countries :

· Japan

· Singapore

Terms :

Selling :

Credit / Depend

Purchasing :

Credit / Depend

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity
Texturised Yarn*	MT	17936
Twisted Yarn*	MT	7472
Fully Drawn Yarn #	MT	232

Particulars	Unit	Production
Installed Capacity Polyester Filament Yarns
Texturised/ Twisted Yarn	MT	60484.573
Partially Oriented Yarn	MT	19715.436
Fully Drawn Yarn	MT	41587.901
Polyesters Chips	MT	29998.882

GENERAL INFORMATION

Suppliers :

Customers :

Retailers, End Users and others

No. of Employees :

500 (Approximately)

Bankers :

· The Shamrao Vithal Co-operative Bank Limited, Sleater Road Branch, Mumbai – 400 007, Maharashtra, India

· Indian Overseas Bank, Nariman Point Branch, Bakhtwar, Nariman Point, Mumbai – 400 021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans secured
Rupee term loans banks secured	2608.839	2621.327
Foreign currency loans secured
Foreign currency loans banks secured	2283.202	2757.603
Working capital loans secured
Working capital loans banks secured	1117.108	724.640
Loans taken for fixed assets secured
Loans taken for vehicles secured	1.021	0.000
Total	6010.170	6103.570

Banking Relations :
Auditors :
Name :	Mittal and Associates Chartered Accountants
Address :	105, M K Bhavan, 300, S.B.S. Marg, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-30287901/ 2/ 3
E-Mail :	mm@mittal-associate.com
PAN No.:	AAAFM9559Q
Subsidiaries :	Wellknown Synthetics (Private) Limited CIN No.: U17110MH1997PTC110093
Associates :	· Wellknown Textile Industries (Private) Limited CIN No.: U17110MH1987PTC043355) · Wellknown Housing Development Private Limited CIN No.: U70102MH2009PTC193678) · Wellknown Chemicals (Private) Limited · Wellknown Hitech Projects Private Limited (Formerly known as Wellknown Financial Securities Private Limited). · Wellknown Technologies Private Limited · Wellknown Logistics Private Limited · Wellknown Landmark Ventures Private Limited · Wellknown Infratech Private Limited · Wellknown Properties Private Limited

CAPITAL STRUCTURE

After: 28.09.2012

Authorised Capital : Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12211395	Equity Shares	Rs.10/- each	Rs.122.114 Millions
826061	Preference Shares	Rs.100/- each	Rs.82.606 Millions
			Rs.204.720 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
13500000	Equity Shares	Rs.10/- each	Rs.135.000 Millions
400000	Preference Shares	Rs.100/- each	Rs.40.000 Millions
	Total		Rs.175.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12211395	Equity Shares	Rs.10/- each	Rs.122.114 Millions
228311	Preference Shares	Rs.100/- each	Rs.22.831 Millions
	Total		Rs.144.945 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		144.945	135.643
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		3266.277	2221.234
4] (Accumulated Losses)		0.000	0.000
NETWORTH		3411.222	2356.877
LOAN FUNDS
1] Secured Loans		6010.170	6103.570
2] Unsecured Loans		0.000	1.351
TOTAL BORROWING		6010.170	6104.921
DEFERRED TAX LIABILITIES		697.565	423.691
TOTAL		10118.957	8885.489
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6992.515	5430.567
Capital work-in-progress		140.597	1241.378
INVESTMENT		193.302	161.884
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1908.902	898.595
	Sundry Debtors	710.941	377.969
	Cash & Bank Balances	1287.467	910.686
	Other Current Assets	190.207	88.478
	Loans & Advances	1232.157	579.971
Total Current Assets		5329.674	2855.699
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	324.017	257.569
	Other Current Liabilities	1794.258	372.605
	Provisions	418.856	173.865
Total Current Liabilities		2537.131	804.039
Net Current Assets		2792.543	2051.660
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		10118.957	8885.489

NOTE: Balance Sheet For The Year 2012 Is Not Available, Only Profit And Loss Account Is Available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	15771.515	13256.095	6596.504
		Other Income	231.804	143.635	174.764
		TOTAL (A)	16003.319	13399.730	6771.268
Less	EXPENSES
		Cost of materials consumed	12384.480	9541.991	5721.019
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(814.227)	(337.627)
		Employee benefit expense	220.729	244.434
		Other expenses	1932.952	1754.068
		Exceptional items before tax	0.001	0.314
		TOTAL (B)	13723.935	11203.180	5721.019
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2279.384	2196.550	1050.249
Less	FINANCIAL EXPENSES (D)		431.659	387.205	242.638
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1847.725	1809.345	807.611
Less/ Add	DEPRECIATION/ AMORTISATION (F)		372.953	345.636	195.463
	PROFIT BEFORE TAX (E-F) (G)		1474.772	1463.709	612.148
Less	TAX (H)		339.591	394.301	203.512
	PROFIT AFTER TAX (G-H) (I)		1135.181	1069.408	408.636
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1672.545	893.625	564.684
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	27.500	30.000
		Dividend	NA	1.404	0.056
		Tax on Dividend	NA	8.454	8.454
		Capital Redemption Reserve	NA	9.292	1.705
		Preference Share Redemption Reserve	NA	243.838	39.480
	BALANCE CARRIED TO THE B/S		NA	1672.545	893.625
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	1794.442	343.824
		Compensation		0.000	73.993
	TOTAL EARNINGS		NA	1794.442	417.817
	IMPORTS
		Capital Goods	NA	51.780	1985.476
		RM / Stores		3769.371	1351.234
	TOTAL IMPORTS		NA	3821.151	3336.710
	Earnings Per Share (Rs.)
	Basic		90.96	85.83	35.62
	Diluted		77.33	74.66	--

Particulars	31.03.2013
Sales Turnover (Approximately)	19190.000

The above information has been parted by Mr. Anil.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.09	7.98	6.03
Net Profit Margin (PBT/Sales)	(%)	9.35	11.02	9.28
Return on Total Assets (PBT/Total Assets}	(%)	NA	11.88	7.39
Return on Investment (ROI) (PBT/Networth)		NA	0.43	0.26
Debt Equity Ratio (Total Debt /Networth)		NA	1.76	2.59
Current Ratio (Current Asset/Current Liability)		NA	2.10	3.55

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
Creditors due others	NA	324.017	257.569
Total	NA	324.017	257.569

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	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	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note

The Registered office of the company has been shifted from 46, Swadeshi Market, First Floor, Kalbadevi Road, Mumbai – 400 002, Maharashtra, India to the present address w.e.f. 02.04.2007.

FINANCIAL PERFORMANCE (AS ON 31.03.2011)

In line with the expectations of the Management of the Company, the turnover and profitability of the Company has jumped by leaps and bounds. The Company recorded a turnover of Rs.14042.300 Millions (Rs.6762.169 Millions). Profit for the Year has shot up to Rs.1463.709 Millions (Rs.612.148 Millions) and Profit after Tax shot up to Rs.1069.408 Millions (Rs.408.637 Millions).

UNSECURED LOAN

(Rs. in Millions)

Particulars	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	0.000	1.351
Total	0.000	1.351
The Shamrao Vithal Co-operative Bank Limited Cash Credit Limit Rs.4800.000 Millions

EXPORTS (AS ON 31.03.2011)

During the year Company’s exports touched Rs.2008.900 Millions (Rs.362.837 Millions). Efforts are on to boost export earnings of the Company. Company’s exports diversified to various American, African and Asian countries. Efforts are on to enhance geographical horizons of the Exports. Various blueprints and plans have been chalked out, benefits of which could be reaped in the years to come.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17114MH1996PLC103477
Name of the company	WELLKNOWN POLYESTERS LIMITED
Address of the registered office or of the principal place of business in India of the company	14th Floor, "B" Wing, Nirmal, 241/242, Backbay Reclamation, Nariman Point, Mumbai – 400021, Maharashtra, India info@wellknown.net.in
This form is for	Creation of charge
Type of charge	· Movable property (not being pledge) · Others (Except Plant and Machinery Financed By LBBW Germany)
Particular of charge holder	Axis Bank Limited, Corporate Banking Branch, Axis House, Bombay Dyieng Mills Compound, P B Marg, Worli, Mumbai - 400025, Maharashtra, India Arti.Gadodia@axisbank.com
Nature of instrument creating charge	Composite hypothecation deed dated 11th may 2013
Date of instrument Creating the charge	11.05.2013
Amount secured by the charge	Rs.600.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the sanction letter issued by the bank bearing reference AXISB/CO/MC/NS/094/13-14 dated 6th may 2013 Terms of Repayment As per the sanction letter issued by the bank bearing reference AXISB/CO/MC/NS/094/13-14 dated 6th may 2013 Margin Cash margin of Rs.200.000 Millions in the form of fixed deposit to be brought upfront Build up margin of Rs.20.000 Millions starting from the 13th month from the date issue of LC Extent and Operation of the charge The charge is to operate as security for the due repayment of the credit facility of INR 600.000 Millions together with interests, additional interest, costs, charges, expenses and all other moneys payable by the company to the bank from time to time. Others Not Applicable
Short particulars of the property or asset(s) charged (including complete address and location of the property)	· First paripassu charge with other term lenders on the entire fixed assets of the company (existing and proposed) including mortgage of factory land and building except plant and machinery...... · .....Exclusively financed by LBBW Germany · First Paripassu Charge On Machineries Purchased Out of The Proposed CAPEX LC/LOU For Buyer's Credit · Second paripassu charge with other term lenders on entire current assets of the company · Fixed deposit with accrued interest (face value--Rs.10.200 Millions lying with state bank of India on first parripassu basis with other term loan and working capital lenders · Corporate guarantee of well known textile industries private limited · All other terms and conditions as per terms and conditions of sanction letter issued by the bank bearing reference AXSB/CO/MC/NS/094/13-14 dated 6th may 2013

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2011)

a) Bank Guarantee of Rs.45.109 Millions (P.Y. Rs.23.669 Millions) taken against Fixed Deposit of Rs.9.159 Millions (P.Y. Rs.8.761 Millions).

b) Outstanding Letter of Credit of Rs.388.018 Millions. (PY Rs.100.270 Millions)

c) The Company has imported certain machineries under EPCG Scheme. The Company is under obligation to export Texturised Yarn 8 time of duty saved within a period of 8 years from the date of respective licenses. Total duty saved amounting to Rs.834.497 Millions (P.Y. Rs.790.339 Millions) and for this the company is under obligation to export goods amounting to Rs.6675.976 Millions (P.Y. Rs.6322.715 Millions). The company has fulfilled the export obligation amounting to Rs.2645.474 Millions (P.Y. Rs.860.597 Millions).

FIXED ASSETS:

· Land Freehold

· Building

· Plant and Machinery

· Motor Vehicle

· Office Equipment

· Furniture and Fixtures

· Computers

· Computer Software

· Trade Mark

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.35
UK Pound	1	Rs.92.11
Euro	1	Rs.78.59

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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.