MIRA INFORM REPORT

Report Date :

19.03.2013

IDENTIFICATION DETAILS

Name :	KENERSYS INDIA PRIVATE LIMITED
Registered Office :	S. No. 49 Industry House, Opposite Kalyani Steels Limited, Mundhwa, Pune-411036, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.10.2007
Com. Reg. No.:	11-130881
Capital Investment / Paid-up Capital :	Rs.761.222 Millions
CIN No.: [Company Identification No.]	U40102PN2007PTC130881
TAN No.: [Tax Deduction & Collection Account No.]	PNEK08064A
PAN No.: [Permanent Account No.]	AADCK2089H
Legal Form :	Private Limited Liability Company.
Line of Business :	The Company is engaged in the business of Supply, Erection, Installation, Operations and maintenance of Wind Turbine Generators (WTG) and is also engaged in Development of Wind Farm.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 330000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	LONG TERM RATING : ICRA BB-
Rating Explanation	Risk prone credit quality it carry very high credit risk
Date	January, 2013

Rating Agency Name	ICRA
Rating	SHORT TERM RATING : ICRA A4
Rating Explanation	Risk prone credit quality it carry high credit risk
Date	January, 2013

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 :	S. No. 49 Industry House, Opposite Kalyani Steels Limited, Mundhwa, Pune-411036, Maharashtra, India
Tel No :	91-20-30473100
Fax No.	91-20-30473133
E-Mail :	rashmi.ballaney@kenersys.com bhushan.joshi@kenersys.com sanjaygandhi@kenersys.com jpatwardhan@bharatforge.com info@kenersys.com
Website :	http://www.kenersys.com http://www.kalyanigroup.com
Location :	Rented
Corporate Office :	Survey No.15, Keshavanagar, Pune – 411036, Maharashtra, India
Tel No :	91-20-30462899/ 40362888
Fax No :	91-20-41061999
E-Mail :	info_india@kenersys.com
Factory :	B-15/1, Baramati, Maharashtra, India
Area :	140000 Sq. Mtrs
Location :	Leased for 99 years
Local Office :	Business Plaza next to Westin Hotel, 7th Floor, 36/3B, North Main Road, Koregaon Park Annexe, Pune – 411001, Maharashtra, India
Tel. No.:	91-20-30473100
Fax No.:	91-20-30473130
E-Mail :	info_india@kenersys.com
Overseas Office :	Located At Europe Office Address: Kenersys Europe GmbH, portal 10, albersloher Weg 10, 48155 Munster, Germany Tel No.: +49-0-251-21099-0 Fax No.: +49(0)-251-21099-200 E-mail: andreas.reuter@kenersys.com info@kenersys.com Sweden Office : Address: Magnus Fjelde, Tallstigen11, 18235 Danderyd, Sweden Tel. No.: +46-8-753.-05-35 E-Mail: nfo@kenersys.com America Office : Address: Kenersys Americas LLc, 50W. Big Weaver Road, Suite 120, Troy. MI 48084, USA

DIRECTORS

As on: 28.09.2012

Name :	Mr. Shriniwas Balwant Kanade
Designation :	Director
Address :	20, Nityanand Co-operative HSG Society, Pune, Satara Road, Dhankawadi, Pune – 411043, Maharashtra, India
Date of Birth/Age :	04.03.1953
Qualification :	BCom
Date of Appointment :	20.10.2007
DIN No.:	00089063
Name :	Mr. Mohan Shantaram Sapre
Designation :	Director
Address :	Tushar Shram, Spahalya Colony, 32/2 B, Erandwane, Deccan Gymkhana, Pune – 411043, Maharashtra, India
Date of Birth/Age :	25.10.1956
Qualification :	CA
Date of Appointment :	30.03.2009
DIN No.:	01721394
Name :	Mr. Francesco Giuliani
Designation :	Director
Address :	66 Prospect Street, Apartment A, Greenwich, 06830, United State of America
Date of Birth/Age :	16.03.1972
Qualification :	MBA
Date of Appointment :	09.07.2008
DIN No.:	02153917
Name :	Mr. Vinay Chandramouli Sekar
Designation :	Nominee director
Address :	Flat No. 302, Sundrapandiyan St. Ashok Nagar, Murugan DI, Chennai – 6000083, Tamil Nadu, India
Date of Birth/Age :	06.06.1985
Date of Appointment :	30.03.2012
DIN No.:	03553174
Name :	Mr. Kailash Lal Tarachandani
Designation :	Director
Address :	Flat No. 1504/15^th Floor A-Wing, Hill Grange CHS Hiranandani est Patlipada, Thane (West) – 400607, Maharashtra, India
Date of Birth/Age :	02.10.1968
Date of Appointment :	28.09.2012
PAN No.:	AADPT2865K
DIN No.:	06388564
Name :	Mr. Sanjay Gandhi
Designation :	Whole-time director
Address :	Amanora Park Town, Sector R- 12, Tower No. 001, Flat No. 502, Hadapsar, Pune – 411028, Maharashtra, India
Date of Birth/Age :	09.07.1976
Date of Appointment :	28.09.2012
PAN No.:	AHVPG4673M
DIN No.:	06388787

KEY EXECUTIVES

Name :	Mr. Rashmi Ramesh Ballaney
Designation :	Secretary
Address :	Flat No. 49, Wonderland, 7 MG Road, Pune- 411000, Maharashtra, India
Date of Birth/Age :	05.06.1984
Date of Appointment :	31.08.2012
PAN No.:	AHNPB9605Q
Name :	Mr. Kailash Tarachandani
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Kenersys Mauritius Private Limited, Mauritius	66962403
Kalyani Babasaheb Amit	250
DAT Trading Private Limited, Mumbai	786087
IFCI Limited, India	8373440
Total	76122180

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	87.97
Bodies corporate	12.03
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the business of Supply, Erection, Installation, Operations and maintenance of Wind Turbine Generators (WTG) and is also engaged in Development of Wind Farm.

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Wind Turbine Generators	Nos.	250	--
Wind power systems 2 MW	Nos.	--	17

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India Industrial Finance Branch, 2^nd Floor, Tara chambers, Pune - Mumbai Highway, Wakdewadi, Pune – 411003, Maharashtra, India

· HDFC Bank Limited, Pune

· Axis Bank, Deccan Gymkhana

Facilities :

(Rs. In Millions)

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Term Loans Banks	0.000	147.172
Cash Credit from Banks	1055.546	610.884
Amount repayable on Buyer’s Credit	134.346	716.728
Total	1189.892	1474.784

Notes:

· Term loan is repayable in 14 instalments commencing from August 2011 and is secured against first charge by way of registered / equitable mortgage on assets to be acquired out of bank finance and second charge on entire fixed assets of the Company situated at Baramati plant.

· Cash credits are secured against first pari passu charge by way of hypothecation on entire current assets and second pari passu charge on fixed assets. The cash credit is repayable on demand and carries interest @ 12% to 16% per annum.

· Buyer’s credit is for the term of six months and carries interest at the rate ranging from 2.5 % to 5%.

Banking Relations :	--
Auditors :
Name :	S.R Batliboi and Company Chartered Accountants
Address :	C-401, 4th Floor, Panchshil Tech Park, Yerwada, (Near Don Bosco School), Pune – 411006, Maharashtra, India
Tel. No.:	91-22-40356300
Fax No.:	91-22-40356400
PAN No.:	AABFS3421N
Ultimate Holding Company	Kalyani Mauritius Private Limited
Holding Company	Kenersys Mauritius Private Limited
Fellow Subsidiary	Kenersys Europe GMBH Kenersys GmbH

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
77327737	Equity Shares (Class A)	Rs.10/- each	Rs.773.277 Millions
2672263	Equity Shares (Class B)	Rs.10/- each	Rs.26.723 Millions
	Total		Rs.800.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
73449917	Equity Shares (Class A)	Rs.10/- each	Rs.734.499 Millions
2672263	Equity Shares (Class B)	Rs.10/- each	Rs.26.723 Millions
			Rs.761.222 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		761.222	734.499	248.403
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		(679.262)	427.675	276.080
4] (Accumulated Losses)		0.000	0.000	(252.752)
NETWORTH		81.960	306.824	271.731
LOAN FUNDS
1] Secured Loans		1189.892	1474.784	443.060
2] Unsecured Loans		0.000	0.000	242.562
TOTAL BORROWING		1189.892	1474.784	685.622
DEFERRED TAX LIABILITIES		0.000	0.000	0.397
TOTAL		1271.852	1781.608	957.750
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		334.370	294.983	58.906
Capital work-in-progress		2.699	0.000	65.810
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1312.880	1784.203	517.558
	Sundry Debtors	391.051	397.178	402.839
	Cash & Bank Balances	8.818	40.839	33.904
	Other Current Assets	3.196	8.805	0.000
	Loans & Advances	910.920	980.624	663.531
Total Current Assets		2626.865	3211.649	1617.832
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1070.758	925.106	665.755
	Other Current Liabilities	538.376	725.388	118.048
	Provisions	82.948	74.530	0.995
Total Current Liabilities		1692.082	1725.024	784.798
Net Current Assets		934.783	1486.625	833.034
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1271.852	1781.608	957.750

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2194.200	1660.700	524.315
		Other Income			45.066
		TOTAL (A)	2194.200	1660.700	569.381
Less	EXPENSES
		Cost of raw material Consumed	2832.900	2050.600	521.193
		Increase and Decrease in Work In Progress			(31.615)
		Personal Expenses			36.572
		Other Expenses			173.445
		Capital work in Progress			0.000
		TOTAL (B)	2832.900 (Including Financial Expenses)	2050.600 (Including Financial Expenses)	699.595
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				(130.214)
Less	FINANCIAL EXPENSES (D)				34.931
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(638.700)	(389.900)	(165.145)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.100	12.600	6.759
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(674.800)	(402.500)	(171.904)
Less	TAX (I)		0.000	(0.400)	(0.397)
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)		(674.800)	(402.100)	(172.301)
	EARNINGS IN FOREIGN CURRENCY
	Export Earnings		0.700	0.000	NA
	TOTAL EARNINGS		0.700	0.000	NA
	IMPORTS
	Raw Materials		NA	1202.656	573.782
	TOTAL IMPORTS		NA	1202.656	573.782
	Earnings Per Share (Rs.)		8.86	(5.48)	(9.31)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(30.74)	(24.21)	(382.33)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(32.78)
Return on Total Assets (PBT/Total Assets}	(%)	(22.79)	(11.48)	(10.62)
Return on Investment (ROI) (PBT/Networth)		(8.23	(1.31)	(0.32)
Debt Equity Ratio (Total Debt/Networth)		14.52	4.81	2.52
Current Ratio (Current Asset/Current Liability)		1.55	1.86	2.06

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

BUSINESS PERFORMANCE:

Due to the market conditions and challenges in the industry, the Company could achieve only approximately 32% increase in the total income. Since this is lower than the breakeven levels, the company continued to incur losses and loss for the year is Rs.674.800 Millions.

While reviewing the accounts of the company, the Board has noted that the Company’s accumulated losses are more than 50% of its peak net worth during the preceding four financial years, making it a potentially sick company under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. Accordingly, the Board of Directors of the Company will refer the matter to the Board for Industrial and Financial Reconstruction (BIFR).

FUTURE OUTLOOK:

The customer base of the Company comprises of traditional customers and Independent Power producers. During all these years, the Company secured and executed 38 projects in aggregate from clients in Maharashtra, Gujarat and Tamil Nadu. The Company has also signed MOU/orders for over 200 MW approximately from large customer base across the Country, which is highly favorable to the business of the Company. Further, the Company has explored various wind preferred locations across the Country by setting up wind masts which would facilitate in development of the project well in advance to secure future growth.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Guarantees and Counter guarantees given by the Company	246.566	72.601

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U40102PN2007PTC130881
Name of the company	KENERSYS INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	S. No. 49 Industry House, Opposite Kalyani Steels Limited, Mundhwa, Pune 411036, Maharashtra, India E-mail : rashmi.ballaney@kenersys.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10130065
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others (Entire current assets of the Company)
Particular of charge holder	State Bank of India, Industrial Finance Branch, Tara chambers, Mumbai-Pune Road, Wakdewadi, Pune 411003, Maharashtra, India. E-mail : pragyan.sahoo@sbi.co.in
Nature of instrument creating or modifying the charge	Supplemental Agreement of Hypothecation dated February 4, 2013 and Letter regarding Grant of individual limits within overall limits dated February 4, 2013 for the enhancement of Non Fund Based facility to the tune of Rs.300.000 Millions. This enhancement of Rs.300.000 Millions has been done by State Bank of India, whereby the total consortium facility limits stands increased to Rs.2555.000 Millions.
Date of instrument Creating the charge	04.02.2013
Amount secured by the charge	Rs.2255.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: NA Terms of Repayment: Period of Sanction: 12 months Margin: For Letter of Credit - 5%. For Bank Guarantee- 5% Extent and Operation of the charge: 1st Parri passu charge on the current assets of the Company along with Axis Bank. 2nd Parri passu charge by way of mortgage/hypothecation of entire fixed assets of the Company situated at Plot No. B-15/1 in Baramati Industrial Area, Village Tandulwadi, Taluka and Registration sub District Baramati, Pune Land area 1,40,000 sq.mts. Others Rate of Commission: 50% concession on card rates on Letter of Credit and Letter of Comfort commission max 0.95% (excluding service tax) Rate of Commission: Up to 64% concession on card rates in Bank Guarantee commission i.e. to charge at 0.90% p.a. (excluding service tax) as against the maximum applicable rate at 2.75%.
Short particulars of the property charged	1st Parri passu charge on the current assets of the Company along with Axis Bank. 2nd Parri passu charge by way of mortgage/hypothecation of entire fixed assets of the Company situated at Plot No. B-15/1 in Baramati Industrial Area, Village Tandulwadi, Taluka and Registration sub District Baramati, Pune Land area 1,40,000 sq.mts.
Particulars of the present modification	Enhancement of Non Fund Based facility to the tune of Rs.300.000 Millions has been done by State Bank of India, whereby the total consortium facility limits stands increased to Rs.2555.000 Millions. Limits Increased by: Letter of Credit - Rs.70.000 Millions, Bank Guarantee - Rs.220.000 Millions and Forward Contract - Rs.10.000 Millions.

FIXED ASSETS:

· Leasehold Land

· Plant and Machinery

· Office Equipments

· Computers

· Building

· Plant and Machinery

· Motor Vehicles

· Land

· Furniture and Fixture

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.54.29
UK Pound	1	Rs.81.94
Euro	1	Rs.70.02

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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

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