MIRA INFORM REPORT

Report Date :

18.03.2013

IDENTIFICATION DETAILS

Name :	TCP LIMITED

Registered Office :	“TCP” Saptagiri Bhavan, New No.4 (Old No.10), Karpagambal Nagar, Luz Church Road, Mylapore, Chennai – 600 004, Tamilnadu

Country :	India

Financials (as on) :	31.03.2009

Date of Incorporation :	08.06.1971

Com. Reg. No.:	005999

CIN No.: [Company Identification No.]	L24200TN1971PLC005999

TAN No.: [Tax Deduction & Collection Account No.]	CHET00143D

PAN No.: [Permanent Account No.]	AAACT3615K

Legal Form :	Public Limited Liability Company. Company’s Shares are listed on the Stock Exchange.

Line of Business :	Manufacturer of Chemical Plants and Power Plants.

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 9225000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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

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

INFORMATION PARTED BY

Name :	Mr. Shridhar
Designation :	DGM Purchase Manager
Contact No.:	91-44-24991518

LOCATIONS

Registered Office :	“TCP” Saptagiri Bhavan, New No.4 (Old No.10), Karpagambal Nagar, Luz Church Road, Mylapore, Chennai – 600 004, Tamilnadu, India
Tel. No.:	91-44-24994018/ 24991518/ 24991289
Fax No.:	91-44-24992435
E-Mail :	tcpchem@eth.net chem.@tcpindia.com
Website :	www.tcpindia.com
Area :	7000 Sq ft
Location :	Owned

Factory :	Kalrai Kudai Village, Koviloor, Sivaganga, District TN – 630 307, Tamilnadu, India
Area :	25 Aq Sq ft
Location :	Owned

Power Plant:	Chennai Gupum, Pondi, Tamilnadu, India

DIRECTORS

Name :	Mr. Masilamani Ethurajan
Designation :	Chairman cum Managing Director
Address :	110, Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamil Nadu, India
Date of Birth/Age :	01.08.1934
Date of Appointment:	06.11.1986

Name :	Mr. V.R. Venktaachalam
Designation :	Managing Director
Address :	25, Sir C. V. Raman Salai, Alwarrpet, Chennai – 600 018, Tamil Nadu, India
Date of Birth/Age :	09.04.1960
Qualification:	Graduation
Date of Appointment:	06.11.1986

Name :	Mr. M. Nandagopal
Designation :	Director
Address :	6, Rutland Gate, 6^th Street, Nungambakkam, Chennai – 600 006, Tamil Nadu, India
Date of Birth/Age :	09.06.1939
Date of Appointment:	06.11.1986

Name :	Mr. A.S. Thillainayagam
Designation :	Director
Address :	27^th Street, Gopalapuram, Chennai – 600 086, Tamil Nadu, India
Date of Birth/Age :	17.02.1952
Date of Appointment:	30.12.1987

Name :	Mr. M.E. Shanmugam
Designation :	Director
Address :	110, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004, Tamil Nadu, India
Date of Birth/Age :	14.04.1967
Date of Appointment:	31.03.1988

Name :	Mr. V. Rajasekaran
Designation :	Director
Address :	Plot 499, 4^th Sector, 18^th Street, K. K. Nagar, Chennai – 600 078, Tamil Nadu, India
Date of Birth/Age :	06.11.1952
Qualification:	M.Tech, MBA
Date of Appointment:	01.03.1992

Name :	Mr. Aravind Nandagopal
Designation :	Director
Address :	6, Rutland Gate, 6^th Street, Chennai – 600 006, Tamil Nadu, India
Date of Birth/Age :	06.04.1975
Date of Appointment:	14.06.1995

Name :	Mr. Natrajan Nandagopal
Designation :	Director
Address:	6, Rutland Gate, 6^th Street, Nungambakkam Chennai-600006, Tamilnadu, India
Date of Birth/Age :	21.12.1968
Date of Appointment:	14.08.1995

Name :	Ms. Radha Venkataachalam
Designation :	Director
Address:	25, Sir C V Raman Road, Alwarpet, Chennai-600018, Tamilnadu, India
Date of Birth:	23.05.1963
Date of Appointment:	20.08.2001

Name :	Mr. V. Sengutuvan
Designation :	Director

KEY EXECUTIVES

Name :	Mr. A. Sampath
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2008

Names of Shareholders		No. of Shares
V R Venkataachalam		1519570
M E Shanmugam		1024503
M Gandhi		789708
R Rajeshwari		300000
V Senguttuvan		295588
Radha Venkataachalamm		241526
A S Thillai Nayagam		135000
Thirumagal Mills Limited		126000
V Samyuktha		120000
R Kamalam		97500
R Andal		78782
R Radha		69950
N P V Ramasamy Udayar		54602
R Padma Udayar		51300
S Arundhathis		50450

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2008

Category		Percentage of Holding
Bodies corporate (not mentioned above)		2.00
Directors or relatives of directors		75.00
Other top fifty (50) shareholders (other than listed above)		23.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals and Power Plants.

Products :

· Sodium Hydrosulphite

· Liquid Sulphur Di-Oxide

· Sodium Formaldehyde Sulphoxylate - Product Data – Tangolite

Product Description	ITC Code
Sodium Hydrosulphite	28321002.00
Liquid Sulphur Dioxide	28112300.00
Sodium Formal Dehyde Sulphoxylate	28311002.00
Zinc Formal Dehyde Sulphoxylate	28319092.00
Generation of Power	271600.00

Exports :

Countries :

US, Thaiwan, Pakistan

Imports :

Products :

Sodium Formet

Countries :

Spain, Taiwan, Switzerland

Terms :

Selling :

Cash

Purchasing :

Credit (180 Days)

GENERAL INFORMATION

Customers :

Wholesalers
End Users

No. of Employees :

50 (In Office), 180 (In Factory), 100 (In Branches)

Total: 330

Bankers :

State Bank of India
Indian Overseas Bank, Commercial and Institutional Credit Branch, 98-A, Dr. Radhakrishnan Salai, Mylapore, Chennai-600 004, Tamilnadu, India

· Allahabad Bank

· Global Trust Bank

· Karnataka Bank

Hongkong and Shanghai Banking Corporation Limited

Facilities :

Secured Loans	31.03.2008 Rs. In Millions
From Banks
Cash Credit Account	380.705
Term Loan
State Bank of India	265.190
HDFC Bank	113.333
Indian Overseas Bank	253.508
Development Credit Bank Limited	60.000
Total	1072.736
Note: Secured by the Hypothecation of raw materials, stores and spares, work-in-process, finished goods and book debts including specific documentary bills ands second charge by way of Equitable Mortgage on the fixed assets of Chemicals, power and biomass divisions. Secured by the Hypothecation/ Equitable Mortgage of the whole of specific immovable properties including movable plant and machinery and other fixed assets pertaining to Chemicals, Power and Biomass division on pari passu basis and pari passu second charge on the Current Assets of Chemical, Power and Biomass Division and exclusive charge on Wind Mills to SBI.


Banking Relations :	--

Auditors :
Name :	T. Selvaraj and Company Chartered Accountants

Subsidiaries:	Victory Chennai Hotels Private Limited U55101TN2001PTC046673

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	11% cumulative Redeemable Preference Shares	Rs.100/- each	Rs.2.500 Millions
11750000	Equity Shares	Rs.10/- each	Rs.117.500 Millions
	Total		Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5031909	Equity Shares	Rs.10/- each	Rs.50.319 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		50.300	50.319	50.319
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2256.000	1673.936	1558.638
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2306.300	1724.255	1608.957
LOAN FUNDS
1] Secured Loans		797.000	1072.736	953.046
2] Unsecured Loans		221.100	139.993	392.720
TOTAL BORROWING		1018.100	1212.729	1345.766
DEFERRED TAX LIABILITIES		0.000	7.982	17.849

TOTAL		3324.400	2944.966	2972.572

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		999.600	1097.525	906.028
Capital work-in-progress		6.700	15.945	0.000

INVESTMENT		1181.600	957.128	953.530
DEFERREX TAX ASSETS		8.100	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	348.800	408.310	636.925
	Sundry Debtors	1052.900	318.734	374.564
	Cash & Bank Balances	4.700	3.029	3.858
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	709.000	851.816	879.561
Total Current Assets		2115.400	1581.889	1894.908
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	805.900	612.472	599.697
	Provisions	181.100	95.049	182.196
Total Current Liabilities		987.000	707.521	781.893
Net Current Assets		1128.400	874.368	1113.015

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		3324.400	2944.966	2972.573

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
Sales Turnover		2927.500	1925.382	1887.535
Other Income		29.300	121.214	54.883
Total Income		2956.800	2046.596	1942.418

Profit/(Loss) Before Tax		605.300	138.082	213.430
Provision for Taxation		5.600	5.373	2.212
Profit/(Loss) After Tax		599.700	132.709	211.218

Export Value		NA	47.858	14.495

Import Value		NA	201.194	436.323

Expenditures :
	Manufacturing Expenses		313.415	315.241
	Raw Material Consumed		1319.953	1218.997
	Increase/(Decrease) in Finished Goods	2351.500	24.469	(42.305)
	Interest		124.612	103.143
	Depreciation & Amortization		126.065	133.912
Total Expenditure		2351.500	1908.514	1728.988

Basic and Diluted Earnings Per Share (Rs.)		118.71	26.00	48.00

QUARTERLY RESULTS

PARTICULARS	30.06.2009 (1^st Quarter)	30.09.2009 (2^nd Quarter)	31.12.2009 (3^rd Quarter)
Gross Sales	644.600	576.500	614.500
Other Operating Income	13..800	6.400	17.600
Other Income	0.000	0.000	0.000
Total Income	658.400	582.900	632.100
Total Expenditure	458.000	435.300	477.900
PBIDT	200.400	147.600	154.200
Interest	26.300	20.200	18.700
PBDT	174.100	127.400	135.500
Depreciation	25.600	27.200	33.900
Tax	48.300	(6.400)	(2.200)
Fringe Benefit Tax	0.000	0.000	0.000
Deferred Tax	0.000	0.000	0.000
Reported Profit After Tax	100.200	106.600	103.800
Extra-ordinary Items	0.000	0.000	0.000
Adjusted Profit After Extra-ordinary item	100.200	106.600	103.800

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	20.28	6.48	10.87

Net Profit Margin (PBT/Sales)	(%)	20.68	7.17	11.31

Return on Total Assets (PBT/Total Assets}	(%)	19.43	5.15	7.62

Return on Investment (ROI) (PBT/Networth)		0.26	0.08	0.13

Debt Equity Ratio (Total Liability/Networth)		0.87	1.11	1.32

Current Ratio (Current Asset/Current Liability)		2.14	2.24	2.42

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject was incorporated on 8th June 1971 as a Joint Sector Unit with Tamil Nadu Industrial Development Corporation Limited (TIDCO) and has set up its Plant at Karaikudi, a notified backward area for manufacture of 4600 MTs of Sodium Hydrosulphite in technical collaboration with Mitsubishi Corporation, Japan. Gradually the capacity of Sodium Hydrosulphite was increased to 9000 MT as on March, 2003. The Company has also put a Liquid Sulphur Dioxide Plant of capacity of 4950 MTs being the captive plant for manufacture of Sodium Hydrosulphite, in technical collaboration with M/s Garbato Impianti Chimici s.r.l. Milano. Apart from its captive plant for SHS, the Company has also put an additional Sulphur Dioxide Plant for supply of So2 to Refineries and to augment the existing production of Sodium Hydrosulphite. The Sodium Hydrosulphite manufactured by the Company is being marketed throughout the length and breadth of the country. In 1998 the company made diversification by entering into Coal based Power Project at a cost of Rs.1098.400 Millions. The total capacity was 63.5 MW. The project was financed by ICICI Term loans. The Company was awarded ISO-9002 by Det Norske Vertias, The Netherlands. In 2001-2002 the company made rights issue of 2 equity shares for every 1 equity share on par and in lieu of this the share capital stands increased to Rs.50.300 Millions. The company has been marketing its product abroad in countries like USA, UK, Spain, Italy etc.

CONTINGENT LIABILITIES:

(a) Letter of Credit opened by banks for purchase of raw materials Rs.50.232 Millions (2007 – Rs.140.973 Millions)

(b) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for Rs.0.118 Million (2007 – Rs.165.543 Millions)

(d) Guarantee given by the bankers on behalf of company Rs.132.951 Millions (2007 – Rs.19.260 Millions) /- Excise duty Rs.1.418 Million (2007 – Rs.1.227 Millions) for which the company has preferred an appeal before the appellate authorities and it is pending. Out of this, a sum of Rs.0.433 Million (Rs.0.374 Million) has been paid under protest.

Unsecured Loans	31.03.2008 Rs. In Millions
Fixed Deposit	53.658
Directors’/ Promoters’ Contribution	56.835
Inter Corporate Deposit	29.500
Total	139.993

FIXED ASSETS:

Land
Leasehold Land
Leasehold Building
Building
Plant and Machinery
Water Supply Works
Computers
Office Equipments
Miscellaneous Equipments
Furniture and Fittings
Vehicles

WEBSITE DETAILS:

PROMOTERS OF THE COMPANY

Subject was incorporated on 8th June 1971, as a Joint Sector Unit, with the Tamil Nadu Industrial Development Corporation Limited (TIDCO).

In pursuance to the decision of the State Government to disinvest the shares of the Joint Sector Unit held by TIDCO, in favour of private promoters, the shares of the company were disinvested by TIDCO Limited, in favour of the Udayar Group, with effect from 7th November 1986.

PRODUCTS, CAPACITY AND TECHNICAL KNOW HOW

The company has set up its Plant for the manufacture of 4600 MT’s (re endorsed from 3300 tonnes) of Sodium Hydrosulphite (SHS), with the technical Know-how from the Mitsubishi Corporation of Japan, through the unique Sodium Formate Route, adopted for the first time in India. The plant is located at Karaikudi, a notified backward area, in Tamil Nadu state.

The product, Viz., Sodium Hydrosulphite, has a very wide application in the industries like Textiles, Jaggery, Pharmaceuticals and Ceramics.

The Company has also set up a Plant for the manufacture of 4950 MT’s of Liquid Sulphur Dioxide, as a captive plant, for the supply of Liquid Sulphur Dioxide for the manufacture of Sodium Hydrosulphite (SHS), with the technical Know-how from M/s Garbato Implanti Chimici s.r.l. Milano, Italy.

The company has also put up an additional Sulphur Dioxide Plant for the supply of Sulphur Dioxide to Refineries and also to augment the supplies for the production of Sodium Hydrosulphite.

The company has consistently achieved higher capacity utilization, which is unique in any chemical industry.

PROJECT COST AND FINANCING

The project was implemented at a project cost of about Rs.80.000 Millions. The commercial production commenced on 1st October 1978.

The project was initially financed by the All India Central Financial Institutions by way of Equity participation, private placement of debentures, and a Term Loan assistance of Rs.52.000 Millions, with a share capital of Rs.19.272 Millions, which included Cumulative Redeemable Preference Shares of Rs.2.500 Millions. The Company has fully repaid the institutional Term loan assistance of Rs.52.000 Millions and has also redeemed the Cumulative

Redeemable Preference Shares of Rs.2.500 Millions, within the time limit prescribed for redemption. The company has obtained the central subsidy for setting up the Plant in a notified backward area.

PRODUCT APPLICATIONS

The product has got application in the following industries:

a) Textile: As reducing agent or Dyeing Auxiliary in Vat Dyeing.

b) Food: As a preservative

c) Sugar/Jaggery: For purification as a Bleaching Agent in the removal of organic and other impurities.

d) Pharmaceutical: As a Bleaching Agent in the manufacture of certain Antibiotics and Analgesics.

e) Paper: Used as a Bleaching Agent in paper and pulp industry.

f) Clay: Bleaching of clay for removing iron impurities.

g) VAT: Manufacture of Vat Dyes.

h) Soap: Bleaching of Crude Soap.

i) Tanning of Leather: Used as a “Reducing Agent” in the preparation of Chrome Tanned Leather.

MARKET

The Sodium Hydrosulphite manufactured by the company is being marketed throughout the country. In view of the unique manufacturing process adopted by the company, as compared to the process adopted by the competitors, the quality of the product manufactured by the company is superior when compared to the products of the competitors. Thus, the product manufactured by the company is widely acclaimed as the best and is readily accepted in both the Indigenous and the International markets.

ISO 9002

The company has been granted ISO 9002 Quality System Certificate by DET NORSKE VERITAS, Netherlands. The company has also been given ISO 14001 (Environment Management System) for its Power Plant.

EXPORT

The company is exporting its products to France, Spain, Italy, Germany, U.K., Netherlands, U.S.A., and Indonesia and is earning valuable foreign exchange. Considering the presence of multinational giants in the aforesaid countries, marketing similar products, the consistent export performance by the company is a significant achievement by the company and is a testimony to the quality of its product.

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. 54.16
UK Pound	1	Rs. 81.74
Euro	1	Rs. 70.50

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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.