MIRA INFORM REPORT

Report Date :

01.03.2013

IDENTIFICATION DETAILS

Name :	PENTAIR WATER INDIA PRIVATE LIMITED
Registered Office :	L 52/55, Verna Industries Estate, Phase –II, Verna, Salcete-403 722, Goa
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	26.09.1996
Com. Reg. No.:	24-002193
Capital Investment / Paid-up Capital :	Rs. 325.187 Millions
CIN No.: [Company Identification No.]	U29197GA1996PTC002193
TAN No.: [Tax Deduction & Collection Account No.]	BLRP05854C
PAN No.: [Permanent Account No.]	AABCS8856L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of water purification components.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 6800000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financials are missing with the government department. From the available record, there seems a dip in the turnover and profitability of the company. However, trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with some cautions.

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office / Factory:	L - 52/55, Verna Industries Estate, Phase –II, Verna, Salcetta – 403 722, Goa, India
Tel. No.:	91-832-2883300 / 2783018
Mobile No.:	91-9860335706 (Mr. Alavo Vaz)
Fax No.:	91-832-2883312
E-Mail :	vaz@pantairwater.com vprasad@pentairwater.com mvenkat@pentairwater.com shailesh.prulekar@pentair.com Maruthi.Venkat@pentair.com
Website :	http://www.pentairwater.com
Location :	Owned
Corporate Office/ Sales / Marketing Office :	Green Boulevard, B-9/A, 7^th Floor, Tower B, Sector 62, Noida – 201 301, Uttar Pradesh, India
Tel. No.:	91-120-4199444
Fax No.:	91-120-4199400
E-Mail :	marketing.india@pentair.com
Website :	http://www.pentairwaterindia.com
Location :	Owned
Regional Offices :	CHENNAI Eurocon Tiles, 3^rd Floor, No.161, Greams Road (Landmark near Apollo Hospital), Chennai – 600 006, Tamilnadu, India Tel no.: 91-44-42122046 / 42122047 MUMBAI 301, Omega, Hiranandani Gardens, powai, Mumbai – 400 076, Maharashtra, India Tel No.: 91-22-25706422 / 25623670 AHMADABAD 503, Sukh Sagar Complex, Ashram Road, Usmanpura, Near Fortune Landmark, Ahmadabad – 380 013, Gujarat, India Tel No.: 91-79-30620174

DIRECTORS

As on 29.09.2012

Name :

Mr. Babu Suri Gopi

Designation :

Director

Address :

G-6, Arshad Complex, Madl, Margao – 403 601, Goa, India

Date of Birth/Age :

23.11.1967

Date of Appointment :

20.05.2000

DIN No.:

00002544

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	U29197GA1996PTC002193	PENTAIR WATER INDIA PRIVATE LIMITED	Director	20-05-00	20-05-00	-	Active	NO
2	U29197GA1997PTC002373	PENTAIR WATER TREATMENT PRIVATE LIMITED	Director	20-05-00	20-05-00	-	Active	NO
3	U28110KA2008PTC046581	PENTAIR TECHNICAL PRODUCTS INDIA PRIVATE LIMITED	Director	27-05-08	27-05-08	27-01-12	Active	NO

Name :

Mr. Maruthi Krishna Venkata Rao Gudivada

Designation :

Director

Address :

Flat C-2, Block-A, Sundew Apartments, Margao-403601, Goa, India

Date of Birth/Age :

01.06.1977

Date of Appointment :

30.06.2008

DIN No.:

02032136

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	U29197GA1996PTC002193	PENTAIR WATER INDIA PRIVATE LIMITED	Director	30-06-08	21-01-08	-	Active	NO
2	U29197GA1997PTC002373	PENTAIR WATER TREATMENT PRIVATE LIMITED	Director	30-06-08	21-01-08	-	Active	NO
3	U28110KA2008PTC046581	PENTAIR TECHNICAL PRODUCTS INDIA PRIVATE LIMITED	Director	29-09-12	27-01-12	-	Active	NO

Name :

Mr. Juan Francisco Brondo

Designation :

Director appointed in casual vacancy

Address :

2324 Red River Dr, Mission TX, Texas-78572, Mexico

Date of Birth/Age :

17.10.1961

Date of Appointment :

22.03.2010

DIN No.:

03015949

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	U29197GA1996PTC002193	PENTAIR WATER INDIA PRIVATE LIMITED	Director appointed in casual vacancy	22-03-10	22-03-10	-	Active	NO
2	U29197GA1997PTC002373	PENTAIR WATER TREATMENT PRIVATE LIMITED	Director appointed in casual vacancy	22-03-10	22-03-10	-	Active	NO

Name :

Ms. Angela Dee Lageson

Designation :

Director appointed in casual vacancy

Address :

21 Ludlow Ave, St Paul, Minnesota-55108, United States of America

Date of Birth/Age :

11.09.1968

Date of Appointment :

22.03.2010

DIN No.:

03018715

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	U29197GA1996PTC002193	PENTAIR WATER INDIA PRIVATE LIMITED	Director appointed in casual vacancy	22-03-10	22-03-10	-	Active	NO
2	U29197GA1997PTC002373	PENTAIR WATER TREATMENT PRIVATE LIMITED	Director appointed in casual vacancy	22-03-10	22-03-10	-	Active	NO

Name :

Mr. Vankata Rao GMK

Designation :

Director

Address :

Flat C2, Block A, Sun Dew Apartment, Near Cine Vishant, Margao-403601, South Goa, Goa, India

Date of Birth/Age :

01.06.1977

Date of Appointment :

21.08.2008

KEY EXECUTIVES

Name :	Mr. Vankata Rao GMK
Designation :	Secretary
Address :	Flat C2, Block A, Sun Dew Apartment, Near Cine Vishant, Margao-403601, South Goa, Goa, India
Date of Birth/Age :	01.06.1977
Date of Appointment :	01.07.2005
PAN No.:	AGXPG4714A

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders	No. of Preferences Shares	No. of Equity Shares
EPPS Limited, Mauritius	--	3999980
Pentair Water Treatment (OH) Company, USA	--	14211120
Pentair Water Treatment (OH) Company, USA	14307616	--
Total	14307616	18211100

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of water purification components.

Products :

Product Description	Item Code
Composite Pressure Vessels Components for Water Treatment	70193903

PRODUCTION STATUS AS ON 31.12.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Components for Water Treatment	Nos.	--	300000	85817

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of India, Branch Varnabhuva, Goa, India

Facilities :

Secured Loan	31.12.2010 (Rs. In Millions)	31.12.2009 (Rs. In Millions)
Loans from a bank	0.000	0.004
Total	0.000	0.004

Note:

Secured by hypothecation of vehicles [Amount falling due within one year Nil (as at 31^st December, 2009 Rs. 0.004 million)

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai-400018, Maharashtra, India
Tel. No.:	91-22-56679000
Fax No.:	91-22-56679025
Ultimate Holding Company:	Pentair Inc USA
Holding Company:	Pentair Water Treatment (OH) Company, USA
Subsidiaries :	Pentair Water Treatment Private Limited CIN NO.: U29197GA1997PTC002373
Fellow Subsidiaries :	Structural North America Pentair Water Spain Pentair Water Italy S.R.L. Pentair Pacific Rim (Water) Limited, Hong Kong Pentair Water (Suzhou) Company Limited Pentair Pool Products Inc. Pentair Electronic Packaging Pentair Pump Group Aurora Pentek/Plymouth Products USA STA-RITE Industries, LLC Hoffman Enclosures Inc. Pentair Water Australia Pentair Taunus Electrometalurgica Limited Pentair Water Middle East Hypro LLC Pentair International LLC Schroff GmbH Porous Media Limited Pentair Pump Group Ashland Pentair Water Belgium, BVBA Fairbanks Morse Pump Pentair Residential Filteration LLC Pentair Technical Products India Private Limited Pentair Water Trading Shanghai Petair Filteration Solution LLC

CAPITAL STRUCTURE

As on 31.12.2010

Authorized Capital:

No. of Shares	Type	Value	Amount
24000000	Equity Shares	Rs.10/- each	Rs. 240.000 Millions
22500000	Preference Shares	Rs. 10/- each	Rs. 225.000 Millions
	Total		Rs. 465.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
18211100	Equity Shares [of which 14211120 shares are held by the Holding Company – Pentair Water Treatment (OH) Company, USA, Pentair Inc. USA, being the ultimate holding Company]	Rs.10/- each	Rs. 182.111 Millions
14307616	0% Redeemable Preference Shares Note:-The 0% Redeemable Preference Shares are redeemable at the end of fourteen years from the date of allotment thereof or earlier at the option of the company	Rs. 10/- each	Rs. 143.076 Millions
	Total		Rs. 325.187 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		325.187	325.187	325.187
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1394.768	1264.094	978.762
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1719.955	1589.281	1303.949
LOAN FUNDS
1] Secured Loans		0.000	0.004	0.048
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.004	0.048
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1719.955	1589.285	1303.997
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		304.127	308.565	259.438
Capital work-in-progress		68.933	25.341	12.778
INVESTMENT		0.074	0.074	0.074
DEFERREX TAX ASSETS		26.275	20.472	12.762
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	218.997	176.543	249.386
	Sundry Debtors	414.251	604.410	849.429
	Cash & Bank Balances	704.532	541.983	418.274
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	507.705	315.302	119.302
Total Current Assets		1845.485	1638.238	1636.391
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	430.090	283.078	483.750
	Other Current Liabilities	9.602	7.820	4.633
	Provisions	85.247	112.507	129.063
Total Current Liabilities		524.939	403.405	617.446
Net Current Assets		1320.546	1234.833	1018.945
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1719.955	1589.285	1303.997

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Income (Turnover)	1439.370	1793.080	1820.630
		Other Income	272.834	29.737	38.765
		TOTAL	1712.204	1822.817	1859.395
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1474.764	1338.267	1428.615
		Advertising Expenses
		TOTAL	1474.764	1338.267	1428.615
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		237.440	484.550	430.780
Less/ Add	DEPRECIATION/ AMORTISATION		40.570	46.580	48.020
	PROFIT BEFORE TAX		196.870	437.970	382.760
Less	TAX		66.200	152.640	132.100
	PROFIT AFTER TAX		130.670	285.330	250.660
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1261.590	976.260	725.600
	BALANCE CARRIED TO THE B/S		1392.260	1261.590	976.260
	EXPORT VALUE		1008.878	1533.065	1507.384
	IMPORTS
		Raw Materials	274.401	300.416	426.977
		Stores & Spares	5.085	6.094	9.989
		Capital Goods	35.821	38.715	6.000
	TOTAL IMPORTS		315.307	345.225	442.966
	Earnings Per Share (Rs.)		7.18	15.67	7.70

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	7.63	15.65	13.48
Net Profit Margin (PBT/Sales)	(%)	13.68	24.43	21.02
Return on Total Assets (PBT/Total Assets}	(%)	9.16	22.50	20.19
Return on Investment (ROI) (PBT/Networth)		0.11	0.28	0.29
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		3.52	4.06	2.65

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	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	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	No
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

OPERATING RESULTS AND FUTURE OUTLOOK:

The past year continued to be turbulent because of the slower than expected recovery after recession in certain parts of the world. The company, having a global footprint, has undoubtedly been impacted by that turbulence and it shows up in the results for the year. There is a marked decline of 19.7% in net sales of the company over the corresponding value of Year 2009. There was major decline in export safes of the company into overall global market, but the shortfall in exports was to a larger extent compensated by growth in the domestic market that helped to contain the decline in sales. The management is confident that the more focus on Indian market with New product launches, Market penetration will help us to mitigate the setbacks from continuing Global slowdown.

With the decline in sales, profitability of the company also declined as is evident from the 54.1% drop in Profit before Tax (PBT). The PBT of the company for 2009 stood at Rs. 196.87 million as compared to Rs. 437.97 million of last year.

CONTINGENT LIABILITIES IN RESPECT OF:

i)Disputed demands of Excise authorities Rs. 33.370 millions.

Pending before Central Excise and Customs - Appellate Tribunal - Mumbai. Demands relate to classification issues as regards rate(s) for charging excise duty.

ii)Disputed demands of Excise authorities Rs.3.082 millions.

Pending before Additional Commissioner of Central Excise (Appeals) - Panjim, Goa. Demands pertaining to levy of excise duty on the share retained by the Company in terms of Goa Sales Tax Cum Net Present Value Compulsory Payment Scheme 2005.

iii)Claims against the Company not acknowledged as debts Rs. Nil.

Claim made by Vijaynath Interiors:

During the Year, the High Court of Judicature at Mumbai, Goa Bench has passed an order against the company and accordingly provision has been made in the books of account and paid subsequent to the year end.

iv.)Disputed demands of Income Tax Authorities aggregating to Rs.52.412 millions

Pending before the commissioner of Income Tax (Appeals) - Panjim Goa. Demands primarily relate to adjustment made pursuant to transfer pricing regulations for Assesment year 2005-06, 2006-07 and 2007-08.

v.) Disputed demands of Income Tax Authorities Rs. 53.019 millions

Pending before the Income Tax Appellate Tribunal, Bangalore for the Assesment year 2004-05

vi.) Disputed demands of Income Tax Authorities Rs. 2.375 millions

Pending before the Assistant Commissioner of Commercial taxes, Panaji, Goa. Demand pertaining to to non-submission of C - Forms.

vii) Warranty claims against the Company not acknowledged as debts Rs.168.146 millions.

Customer has made a claim for 130% of order value towards warranty against material supplied for USD 2,786,850/-.

The Company is confident of defending the above claims and expects no liability on these counts.

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Office Equipment

· Furniture and Fixture

· Motor Vehicles

· Goodwill

· 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.53.77
UK Pound	1	Rs.81.57
Euro	1	Rs.70.68

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.