MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	SWAM PNEUMATICS PRIVATE LIMITED
Registered Office :	112, Navjivan Vihar, New Delhi – 110 017
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.03.1978
Com. Reg. No.:	55-008921
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
CIN No.: [Company Identification No.]	U74899DL1978PTC008921
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of rotary piston blowers, centrifugal blowers, centrifugal fans, rotary dry vacuum pumps, etc.
No. of Employees :	150 (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 658000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company has performed well during the current year. 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

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.

INFORMATION PARTED BY

Name :	Mr. Y.K. Yadav
Designation :	Accounts Department
Contact No.:	91-120-4696222
Date :	14.03.2013

LOCATIONS

Registered Office :	112, Navjivan Vihar, New Delhi – 110 017, India
Tel. No.:	91-11-26693215/ 26692511
Fax No.:	Not Available
E-Mail :	gambhir_nanda@yahoo.com sales@swamatics.com swamatic@airtelmail.in
Website :	http://www.swamatics.com
Area :	2000 sq. ft.
Location :	Owned
Head Office/ Corporate Office/ Factory 1 :	C-2, Sector-3, Noida – 201 301, Uttar Pradesh, India
Tel. No.:	91-120-4696222/ 2527610/ 2537282
Fax No.:	91-120-2443283
Factory 2 :	B-9, Sector-57, Noida, Uttar Pradesh, India
Factory 3 :	B-111, Sector – 67, Noida, Uttar Pradesh, India

DIRECTORS

As on 18.08.2012

Name :	Mr. Sudershan Kumar Gambhir
Designation :	Director
Address :	112, Navjivan Vihar, New Delhi – 110 017, India
Date of Appointment :	05.07.1978
DIN No.:	00733917
Name :	Mrs. Swarn Gambhir
Designation :	Director
Address :	112, Navjivan Vihar, New Delhi – 110 017, India
Date of Appointment :	16.03.1978
DIN No.:	00733863
Name :	Mr. Abhishek Gambhir
Designation :	Director
Address :	112, Navjivan Vihar, New Delhi – 110 017, India
Date of Appointment :	30.04.2003
DIN No.:	02766844

KEY EXECUTIVES

Name :	Mr. Y.K. Yadav
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.08.2012

Names of Shareholders	No. of Shares
Swarn Gambhir	176500
S.K. Gambhir	840000
Abhishek Gambhir	290000
Monica Gambhir	129500
Vens Raj Gambhir	1500
Suderahan Gambhir	1500
Raj Kapoor	6000
Vertika Gambhir	27500
Baby Arushi Gambhir (Under guardianship of Abhishek Gambhir)	12500
Sanchit Gambhir (Under guardianship of Abhishek Gambhir)	15000
Total	1500000

As on 05.01.2013

Names of Allottees	No. of Shares
S.K. Gambhir	100000
Abhishek Gambhir	70000
Monica Gambhir	40000
Swarn Gambhir	20000
Vertika Gambhir	20000
Total	250000

As on 18.08.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.52
Others	0.48
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of rotary piston blowers, centrifugal blowers, centrifugal fans, rotary dry vacuum pumps, etc.
Products :	Blowers Rotary Piston Blowers Rotary Piston Compressors Twin Lobe Blowers Process Gas Blowers High Pressure Blowers Truck Blowers Blowers With Secondary Suction Multi Stage Centrifugal Blowers Centrifugal Fans Centrifugal Blowers Mechanical Vacuum Boosters Rotary Dry Vacuum Pumps Heat Transfer Equipments Transfer Fin Type Heat Exchanger Shell Type Heat Transfer Equipment Tube Type Heat Transfer Equipment Liquid Ring Vacuum Pumps & Compressors Acoustic Enclosures Sound Proof Housings For Blowers/fans/turbines Reactive Silencers Absorptive Silencers Blow Off Silencers Rotary Piston Blowers Compressors Dry Screw Vacuum Pumps Condenser Exhausters
Exports :
Products :	Finished Goods
Countries :	South East Asia Australia Switzerland
Imports :
Products :	Raw Materials
Countries :	South Africa Korea
Terms :
Selling :	Cheque and RTGS
Purchasing :	Cheque and RTGS

GENERAL INFORMATION

Suppliers :

J.C. Steel (Ghaziabad)

Customers :

End Users and Manufacturer

Indian Clients:

· Indian Oil Corporation Limited

· Bhushan Steel Limited

· National Thermal Power Corporation

· Engineers India Limited

· Taj Group of Hotels

· Oil and Natural Gas Commission

· Nirma Limited

· National Aluminium Company

· Larsen and Turbo

· Jindal

· ACC Limited

· Kothari Fermantation and Bio-Chem Limited, India

· Dhandapani Cement – India

· Reliance Petroleum Limited

· Reliance Industries Limited

· Dabur India

· Jai Ambey Chemicals – India

· Thermax Limited– India

· Coperian Ideal Private Limited

Overseas Clients:

· Mitsubishi Heavy Ind.

· Thai Organic Chemicals

· Gannon Dunkerley

· Oil and Natural Gas Commission

· VA Tech Wabag

· Izhar Enterprises

· Samsung Engg. Co

· Petrofac International Limited

· Konkola Copper Mines

· SNC-Lavalin Inc – Canada

· Bechtel Limited

· Aishil Engineering –Zambia

· Tecnimont Limited

· Penden Cement – Bhutan

No. of Employees :

150 (Approximately)

Bankers :

• State Bank of India, Commercial Branch, Sector-18, Noida – 201 301, Uttar Pradesh, India
• Axis Bank Limited, 4/10, OPG House, Asaf Ali Road, New Delhi – 110 002, India
• Axis Bank Limited, D-81, Malviya Nagar, Delhi – 110 017, India (Contact No.: 91-11-41831434)
• Axis Bank Limited, 2^nd Floor, Statesman House, 148, Barakhamba Road, New Delhi – 110 001, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan from SBI	0.000	0.001
CC Limit from SBI	0.000	2.034
CC Limit from Axis Bank against mortgage of Plant and Machinery and Hypothecation of Stocks.	46.655	24.554
Total	46.655	26.589

Banking Relations :	--
Auditors :
Name :	Tiwari and Associates Chartered Accountants
Address :	T-8, Green Park, New Delhi – 110 017, India
Tel. No.:	91-11-26166225/ 26198237
Income-tax PAN of auditor or auditor's firm :	AAAFT0011E

CAPITAL STRUCTURE

After 18.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1750000	Equity Shares	Rs.10/- each	Rs.17.500 Millions

As on 18.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 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		15.000	12.500	10.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		149.603	90.824	69.601
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		164.603	103.324	80.401
LOAN FUNDS
1] Secured Loans		46.655	26.589	23.768
2] Unsecured Loans		1.805	1.134	2.314
TOTAL BORROWING		48.460	27.723	26.082
DEFERRED TAX LIABILITIES		3.926	3.272	2.364
TOTAL		216.989	134.319	108.847
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		143.985	114.601	97.481
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		36.736	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.354	29.419	11.893
	Sundry Debtors	88.766	63.217	49.227
	Cash & Bank Balances	45.664	25.065	8.125
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.276	9.127	5.999
Total Current Assets		159.060	126.828	75.244
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.856	43.373	57.395
	Other Current Liabilities	71.630	59.882
	Provisions	12.332	3.862	6.519
Total Current Liabilities		122.818	107.117	63.914
Net Current Assets		36.242	19.711	11.330
MISCELLANEOUS EXPENSES		0.026	0.007	0.036
TOTAL		216.989	134.319	108.847

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Revenue from Operations	498.948	278.582
		Other Income	49.565	31.560
		TOTAL (A)	548.513	310.142
Less	EXPENSES
		Cost of Material Consumed	263.274	166.537
		Changes in inventories of Finished Goods, Stock-in-process and Stock-in-trade	6.063	(8.465)
		Employees Benefit Expenses	36.345	28.212
		Other Expenses	133.901	71.074
		TOTAL (B)	439.583	257.358
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		108.930	52.784
Less	FINANCIAL EXPENSES (D)		4.270	7.710
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		104.660	45.074
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.499	9.033
	PROFIT BEFORE TAX (E-F) (G)		93.161	36.041
Less	TAX (H)		30.199	11.884
	PROFIT AFTER TAX (G-H) (I)		62.962	24.157
	EARNINGS IN FOREIGN CURRENCY		19.768	NA
	Earnings Per Share (Rs.)		41.97	NA

Expected Sales (2012-2013): Rs.600.000 millions

The above information has been parted by Mr. Y.K. Yadav (Accounts Department).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	11.48	7.79	NA
Net Profit Margin (PBT/Sales)	(%)	18.67	12.94	NA
Return on Total Assets (PBT/Total Assets}	(%)	30.74	14.93	NA
Return on Investment (ROI) (PBT/Networth)		0.57	0.35	NA
Debt Equity Ratio (Total Debt/Networth)		0.29	0.27	0.32
Current Ratio (Current Asset/Current Liability)		1.30	1.18	1.18

LOCAL AGENCY FURTHER INFORMATION

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 two years	Yes
12) Profitability for last two years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	Yes
18) Major customers	Yes
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	No
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

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Due to Directors and Shareholders	1.805	1.134
Total	1.805	1.134

PERFORMANCE:

The performance of the Company has shown a satisfactory growth during the year as its Turnover and profits have been increased. As a result thereof the company established another unit in Sector-67, which started production during the year. As a part of its expansion plant the Company is making efforts to establish a fourth unit in Sector-57, NOIDA. These units have been established in order to meet the increasing demand of the product manufactured by the Company within the country and abroad.

Bankers Charges Report as per Registry

Corporate identity number of the company	U74899DL1978PTC008921
Name of the company	SWAM PNEUMATICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	112, Navjivan Vihar, New Delhi – 110 017, India E-Mail: gambhir_nanda@yahoo.co.in
This form is for	Modification of charge
Charge identification number of the modified	10274454
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Axis Bank Limited, 2^nd Floor, Statesman House, 148, Barakhamba Road, New Delhi – 110 001, India E-Mail: f8.axisbank@gmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental Deed of Hypothecation.
Date of instrument Creating the charge	08.09.2012
Amount secured by the charge	Rs.250.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per Sanction Letter No. AXISB/DEL II SME/2012-13/6680 dated 07.09.2012 to be amended from time to time. Terms of Repayment: As per Sanction Letter No. AXISB/DEL II SME/2012-13/6680 dated 07.09.2012 to be amended from time to time. Margin: As per Sanction Letter No. AXISB/DEL II SME/2012-13/6680 dated 07.09.2012 to be amended from time to time. Extent and Operation of the charge: Extent and Operation - 100% Others: The above is to secure the following :- Cash Credit = Rs.50.000 millions, LCBD = 10.000 millions^, Cash Credit (adhoc for 2 months)= 10.000 millions, Letter of Credit = 20.000 millions* Bank Guarantee = 160.000 millions* ^Cash credit adhoc limit of Rs.10.000 millions sanctioned with one way interchangeability from LCBD to Cash credit limit, allowed for 2 months. *full interchangeability from LC to BG and interchangeability from BG to LC permitted upto Rs.140.000 millions. Total NFB exposure shall not exceed Rs.180.000 millions at any given point of time.
Short particulars of the property charged	Hypothecation by way of first and exclusive charge over all present and future current assets and movable fixed assets (except vehicles) financed by other Banks / FIS) of the company stored or to be stored at the company's godowns or premises or wherever else the same may be.
Date of latest modification prior to the present modification	19.12.2011
Particulars of the present modification	Bank's first and exclusive charge over all present and future current assets and movable fixed assets (except vehicles) financed by other Banks / FIS) of the company already registered for Rs.240.000 millions shall stand enhanced to Rs.250.000 millions.

TRADE REFERENCES:

· Indian Oil Corporation Limited

· Bhushan Steel Limited

· Reliance Industries Limited

· J.C. Steel (Ghaziabad)

FIXED ASSETS:

· Factory Land

· Factory Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Vehicles

· Air Conditioner

· Fans

· Computer

WEBSITE DETAILS:

PROFILE:

Subject is a global leader in rotary blower technology and related equipment, and is to be out for technology, innovation and excellence. Subject has grown over the year and today is 4^th largest blower manufacturer company globally with rotary blowers up to 75000 m3/h. The group has four state of the art manufacturing plants equipped with CNC machines and inhouse testing facility upto 1000 kw. Subject manufacture Rotary Blowers, Process Air Blowers, High Pressure Blower Fan, Transfer Fine Tune, Rotary Air Blowers, Liquid Ring Vacuum Pumps, Centrifugal Fans, Gas Boosters, Process Gas Blowers, Screw Vacuum Pumps, Mechanical Vacuum Boosters, Truck Blowers.

Their highly motivated engineers and work force face, each contact with commitment to meet the client process specification whether. The company has executed many prestigious projects under the stringent quality requirements. The highly qualified engineering personnel of subject, supported by comprehensive in house computer aided design, development and management systems, for efficient service to their clients. Their quality system has been accredited with ISO-9001 quality standards and procedures. The company’s head office and works are located at near New Delhi, the capital city of India.

Subject leader in rotary blower technology, has during its nearly three decades of experience in design and manufacture of blowers has acquired exceptional product development capabilities to meet the stringent quality and performance requirements and to confirm to the customer’s tough and diversified specification. Emphasis has been on innovative design, precision engineering and responsiveness to customers, Subject thus offers its advance technology next generation excel TR-Series Blowers; equipped with latest features, enabling it more reliable, energy efficient and its maintenance. Blowers are ruggedly built with appropriate rotor shaft design, aiming at low deflection and critical consideration. The rotors are supported on heavy duty antifriction oil lubricated bearing. The rotor profiles of Axcel are computer generated enabling better uniform clearances and higher volumetric efficiency. The blowers have accuracies and manufactured on CNC machines. The blowers are available for flows upto 75000m3/hr. and pressure 1.10kg/cm2. The blowers are suitable or continuous operation to work as compressors or as exhausters.

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] 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.54.44
UK Pound	1	Rs.81.33
Euro	1	Rs.70.50

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SMN

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	6
--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	NO
--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.