MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Name :	MAHARASHTRA STATE ELECTRICITY TRANSMISSION COMPANY LIMITED
Registered Office :	Prakashganga, Plot No. C 19, E Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.05.2005
Com. Reg. No.:	11-153646
Capital Investment / Paid-up Capital :	Rs. 0.500 Million
CIN No.: [Company Identification No.]	U40109MH2005SGC153646
TAN No.: [Tax Deduction & Collection Account No.]	MUM27049E
PAN No.: [Permanent Account No.]	AAECM2936N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The Company engaged in Transmission of Electricity.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Aa (77)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 150000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a State Government Company engaged in Transmission of Electricity. It is a well established company having a fine track record. Financial position of the company appears to be sound. Fundaments are strong and healthy. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. Since it is government company, the creditors and lenders can be confident of their exposure in the company. The company can be considered good 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.

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 :	Prakashganga, Plot No. C 19, E Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-26595031/ 5000 / 26595301
Mobile No.:	91-9930444303 (Ms. Jyoti Arora)
Fax No.:	91-22-26592316 / 26591254
E-Mail :	cs.mseb123@gmail.com
Website :	www.mahatransco.in

DIRECTORS

As on 29.12.2012

Name :

Mr. Arvind Singh

Designation :

Chairman and Managing Director

Address :

36, Ambar Narayan Dabholkar Marg, Malber Hills, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

14.05.1963

Date of Appointment :

21.08.2012

DIN No.:

02780573

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	U40100MH2005SGC153649	MSEB HOLDING COMPANY LIMITED	Director	23-06-10	21-08-09	-	Active	NO
2	U40109MH2005SGC153646	MAHARASHTRA STATE ELECTRICITY TRANSMISSION COMPANY LIMITED	Managing director	21-08-12	21-08-09	-	Active	NO
3	U40100MH2005SGC153648	MAHARASHTRA STATE POWER GENERATION COMPANY LIMITED	Nominee director	21-09-12	21-09-12	30-11-12	Active	NO

Name :

Mr. Vidyadhar Krishnaji Kanade

Designation :

Director

Address :

8, Suruchi Jagannath Bhosale Marg, Mumbai – 400021, Maharashtra, India

Date of Birth/Age :

01.10.1955

Date of Appointment :

31.11.2012

DIN No.:

00246871

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	U45203MH2002SGC136979	MAHARASHTRA AIRPORT DEVELOPMENT COMPANY LIMITED	Director	06-09-04	06-09-04	24-06-11	Active	NO
2	U65920MH1996SGC102273	MAHARASHTRA PATBANDHARE VITTIYA COMPANY LIMITED	Director	07-02-05	07-02-05	-	Active	YES
3	U15130PN2003PLC134014	CHITALI DISTILLERY LIMITED	Nominee director	07-11-06	07-11-06	05-08-08	Amalgamated	NO
4	U40100MH2005SGC153649	MSEB HOLDING COMPANY LIMITED	Additional director	16-11-11	16-11-11	30-11-12	Active	NO
5	U40109MH2005SGC153646	MAHARASHTRA STATE ELECTRICITY TRANSMISSION COMPANY LIMITED	Director	31-12-11	17-11-11	29-01-13	Active	NO
6	U40100MH2005SGC153648	MAHARASHTRA STATE POWER GENERATION COMPANY LIMITED	Additional director	18-11-11	18-11-11	30-11-12	Active	NO
7	U40109MH2005SGC153645	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED	Director	11-08-12	21-11-11	-	Active	NO
8	U40105DL2005PTC138458	RATNAGIRI GAS AND POWER PRIVATE LIMITED	Director	13-01-12	13-01-12	-	Active	NO

Name :

Mr. Uttam Gopinathrao Zalte

Designation :

Whole-Time Director

Address :

3B, Saudamini, MSEB, Officer’s Haji Ali, Mumbai, Maharashtra, India

Date of Birth/Age :

09.03.1955

Date of Appointment :

29.09.2010

DIN No.:

03178875

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	U40109MH2005SGC153646	MAHARASHTRA STATE ELECTRICITY TRANSMISSION COMPANY LIMITED	Whole-time director	29-09-10	05-08-10	-	Active	NO
2	U64201MH2012PLC234316	MAHARASHTRA TRANSMISSION COMMUNICATION INFRASTRUCTURE LIMITED	Director	05-09-12	09-08-12	-	Active	NO

Name :

Mr. Omprakash Kanhayya Yempal

Designation :

Whole-Time Director

Address :

1B, Saudamini, MSEB, Officer’s, Haji Ali, Mumbai - 400034, Maharashtra, India

Date of Birth/Age :

28.09.1954

Date of Appointment :

31.12.2011

DIN No.:

03477608

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	U40102MH2008PLC181433	JAIGAD POWERTRANSCO LIMITED	Nominee director	27-01-11	27-01-11	-	Active	NO
2	U40109MH2005SGC153646	MAHARASHTRA STATE ELECTRICITY TRANSMISSION COMPANY LIMITED	Whole-time director	31-12-11	06-07-11	-	Active	NO

Name :

Mr. Pratap Ganpatrao Mohite

Designation :

Whole-Time Director

Address :

B-801, Park Dew CHS, PT-73, Sector – 20, Kharghar, Raigad – 410210, Maharashtra, India

Date of Birth/Age :

25.01.1961

Date of Appointment :

31.12.2011

DIN No.:

03525561

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	U40109MH2005SGC153646	MAHARASHTRA STATE ELECTRICITY TRANSMISSION COMPANY LIMITED	Whole-time director	31-12-11	25-04-11	-	Active	NO
2	U40109MH2007SGC176309	MAHARASHTRA STATE ELECTRIC POWER TRADING COMPANY PRIVATE LIMITED	Director	20-01-12	20-01-12	-	Active	NO
3	U64201MH2012PLC234316	MAHARASHTRA TRANSMISSION COMMUNICATION INFRASTRUCTURE LIMITED	Director	09-08-12	09-08-12	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Jyoti Arora
Designation :	Company Secretary
Address :	508 B-Wing Meera Arcade Sector – 20, Shilpa Chowk, Kharghar, Navi Mumbai – 410210, Maharashtra, India
Date of Birth/Age :	31.08.1976
Date of Appointment :	18.02.2010
Pan No. :	AEIPC9192F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.12.2012

Names of Shareholders	No. of Shares
Vidyadhar Kanade	49940
Arvind Singh	10
Pratap G Mohite	10
Kunda A. Retrekar	10
Avinash Subhedar	10
V.M. Rajurkar	10
Gulabrao K. Gorde	10
Total	50000

As on 29.12.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Government [Central and State]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company engaged in Transmission of Electricity.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Bank of Baroda
• Union Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings
Long Term Loans
Term Loans from Banks	6609.441	1737.085
Term Loans from Other Parties	58973.468	49118.700
Total	65582.909	50855.785

Banking Relations :	--
Financial Institutions :	Rural Electrification Corporation Limited, Core 4scope Complex, 7 Lodi Road, New Delhi - 110003, India
Auditors :
Name :	Shah and Taparia Chartered Accountants
Address :	12, Navjeevan Wadi, Dhobi Talao, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-40220301 / 14
E-Mail :	info@shahtaparia.com
PAN.:	AAOFS0663D
Holding Company :	Mseb Holding Company Limited CIN No.: U40100MH2005SGC153649
Joint Venture :	Jaigad Power Transco Limited (JPTL)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000000	Equity Shares	Rs.10/- each	Rs.50000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 Million

a. Reconciliation of Number of Shares

Particulars	Number of shares	Rs. In millions
Equity Shares :
Share outstanding at the beginning of the year	50,000	0.500
Share issued during the year	--	--
Share Outstanding at the end of the year	50,000	0.500

b. Shareholders holding more than 5% of equity share capital and shares held by Holding / Ultimate Holding Company

Particulars	Number of shares	Percentage of holding
Equity Shares :
Mr. Vidyadhar Kanade	49,940	99.88%

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		0.500	0.500	0.500
2] Share Application Money		26959.920	26959.920	0.000
3] Share capital suspense A/c		0.000	0.000	26959.920
4] Reserves & Surplus		12852.633	7148.946	3855.534
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		39813.053	34109.366	30815.954
LOAN FUNDS
1] Secured Loans		65582.909	50855.785	38552.516
2] Unsecured Loans		2076.164	1041.164	1111.164
TOTAL BORROWING		67659.073	51896.949	39663.680
DEFERRED TAX LIABILITIES		9399.221	8042.166	7170.461
TOTAL		116871.347	94048.481	77650.095
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		95830.334	77856.501	57002.841
Capital work-in-progress		39211.020	34974.834	30951.421
INVESTMENT		2301.567	302.701	152.177
ASSETS NOT IN USE				127.901
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4326.689	2151.089	1989.992
	Sundry Debtors	5276.158	2791.207	1338.986
	Cash & Bank Balances	914.346	3954.411	3590.779
	Other Current Assets	2722.842	3040.142	0.000
	Loans & Advances	2711.389	2672.302	6900.846
Total Current Assets		15951.424	14609.151	13820.603
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3847.834	1261.318	9606.507
	Other Current Liabilities	26927.219	27144.906	9948.563
	Provisions	5647.945	5288.482	4849.778
Total Current Liabilities		36422.998	33694.706	24404.848
Net Current Assets		(20471.574)	(19085.555)	(10584.245)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		116871.347	94048.481	77650.095

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	23352.478	21159.228	15997.316
		Other Income	2857.854	849.004	1083.675
		TOTAL (A)	26210.332	22008.232	17080.991
Less	EXPENSES
		Repair and Maintenance Expenses	2037.287	2877.702	3043.315
		Employee Benefit Expenses	5794.027	5290.354	3939.736
		Other Expenses	2380.916	1892.728	1034.432
		Prior Period Expenses / (Income)	(1239.571)	229.251	287.138
		TOTAL (B)	8972.659	10290.035	8304.621
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17237.673	11718.197	8776.370
Less	FINANCIAL EXPENSES (D)		4191.193	2829.963	2099.865
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13046.480	8888.234	6676.505
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4220.663	3686.357	2996.155
	PROFIT BEFORE TAX (E-F) (G)		8825.817	5201.877	3680.350
Less	TAX (H)		3122.903	1908.466	1230.215
	PROFIT AFTER TAX (G-H) (I)		5702.914	3293.411	2450.135
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5191.345	2163.434	93.899
Less	APPROPRIATIONS
		Contribution to Special Reserves	NA	0.000	135.200
		Contribution to Contingency Reserves	NA	265.500	245.400
	BALANCE CARRIED TO THE B/S		NA	5191.345	2163.434
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	51.893	17.258	4.562
	TOTAL EARNINGS		51.893	17.258	4.562
	Earnings Per Share (Rs.)		2.12	1.22	0.91

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	21.76	14.96	14.34
Net Profit Margin (PBT/Sales)	(%)	37.79	24.58	23.01
Return on Total Assets (PBT/Total Assets}	(%)	74.91	5.63	5.20
Return on Investment (ROI) (PBT/Networth)		0.22	0.15	0.12
Debt Equity Ratio (Total Debt /Networth)		1.70	1.52	1.29
Current Ratio (Current Asset/Current Liability)		0.44	0.43	0.57

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	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BACKGROUND:

Subject was incorporated under the Companies Act, 1956 on 31 May, 2005. The Certificate of Commencement of Business was received on 15 September, 2005 from the Registrar of Companies. The Company was incorporated as per provisions of the notification of Maharashtra State Electricity Reforms Transfer Scheme, 2005 (hereinafter referred to as the Transfer Scheme) which was issued on 4 June, 2005. As per the aforesaid notification, assets and liabilities forming part of the Transmission Undertaking of erstwhile Maharashtra State Electricity Board as set out in ‘Schedule A’ of the said Notification were transferred and vested to the company with effect from 6 June, 2005. The transfer of Assets and Liabilities under the above Transfer Scheme was made by the Government of Maharashtra. The consideration for the transfer of undertaking being excess of assets over liabilities will be discharged by issue of Equity Shares of Rs. 26959.920 Millions to MSEB Holding Company Limited.

The assets and liabilities of the company as on June 06, 2005 contain balances, which are transferred under the Maharashtra Electricity Reforms Transfer Scheme, 2005 (Transfer Scheme). Accordingly, these balances are approved by MSEB Holding Company Limited. The Final Transfer Scheme is yet to be notified by the Government of Maharashtra, which may have an impact on the financial statements of the Company.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings
Loan from KEC International	41.164	41.164
Short Term Borrowings
Short term loan from banks	2035.000	1000.000
Total	2076.164	1041.164

FIXED ASSETS

• Land
• Leasehold Land
• Buildings
• Hydraulic Works
• Other Civil Works
• Railway Sidings
• Roads and Others
• Plant and Machinery and Equipments
• Lines and Cable Network
• Vehicles
• Furniture and Fixtures
• Office Equipments
• Software Development Expenses

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.54.16
UK Pound	1	Rs.71.74
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--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		77

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.