MIRA INFORM REPORT

Report Date :

22.03.2013

IDENTIFICATION DETAILS

Name :	ARMS PAPER LIMITED (w.e.f. 24.6.2009)
Formerly Known As :	CONTECH SOFTWARE LIMITED
Registered Office :	604, Avdhesh House, Opposite Shri Guru Govind Gurudwara, S. G. Highway, Thal Tej, Ahmedabad - 380054, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.03.1983
Com. Reg. No.:	04 - 006041
Capital Investment / Paid-up Capital :	Rs. 55.040 Millions
CIN No.: [Company Identification No.]	L21098GJ1983PLC006041
TAN No.: [Tax Deduction & Collection Account No.]	AHMC00755G
PAN No.: [Permanent Account No.]	AAACC7751R
Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on Stock Exchange.
Line of Business :	Trading of Paper Products.
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

s

Maximum Credit Limit :	USD 220000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. During current year there appears slight fall in the sales and profitability of the company However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	604, Avdhesh House, Opposite Shri Guru Govind Gurudwara, SG Highway, Thaltej, Ahmedabad – 380054, Gujarat, India
Fax No.:	91-79-26859223
E-Mail :	armspaperltd@gmail.com contechsoftware@gmail.com
Website :	www.armspapers.com

DIRECTORS

As on: 26.07.2012

Name :	Mr. Jamna Prasad Maheshwari
Designation :	Chairman-cum-Managing Director
Experience :	36 Year’s
Name :	Mr. Hemant Mehta
Designation :	Non-Executive Director
Experience :	15 Year’s
Name :	Mr. Arvind Baldwa
Designation :	Non-Executive Director
Experience :	15 Year’s
Name :	Mr. Nikhil Rajpuria
Designation :	Independent Director
Experience :	5 Year’s
Name :	Mr. Nishant Kumar
Designation :	Independent Director
Experience :	5 Year’s
Name :	Mr. Kirit Patel
Designation :	Independent Director
Experience :	10 Year’s

KEY EXECUTIVES

Name :	Mr. Alpesh Gandhi
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on: 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	921274	16.70
Sub Total	921274	16.70
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	921274	16.70
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	912969	16.54
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1384864	25.10
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2297667	41.64
Any Others (Specify)	1426	0.03
Non Resident Indians	520	0.01
Clearing Members	906	0.02
Sub Total	4596926	83.30
Total Public shareholding (B)	4596926	83.30
Total (A)+(B)	5518200	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	5518200	0.00

BUSINESS DETAILS

Line of Business :

Trading of Paper Products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Indian Overseas Bank
• Corporation Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Financial Institution ( Vehicle Loan )	0.000	0.062
TOTAL	0.000	0.062

Nature of security and terms of repayment for secured borrowings

Vehicle Loan ;

Term Loan from Financial Institution was taken during the year 2009-2010 carring rate of interest @ 10.57% p.a. and is to be repayable in 36 equal monthly installments starting from August 2009. The loan is secured by hypothecation of vehicle.

Banking Relations :

--

Auditors :

Name :

Talati and Talati

Chartered Accountants

Address :

Ahmedabad – 380054, Gujarat, India

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5518200	Equity Shares	Rs.10/- each	Rs. 55.182 Millions
	Less : Calls In arrears-by others		Rs. 0.142 Millions
	Total		Rs. 55.040 Millions

Reconciliation of number of shares:

(Rs. In Millions)

Equity shares:	As at March 31,2012
No of Shares	Amount
Shares outstanding at the beginning of the year 5.515,200 Add: Shares Issued during the year	55.040
Shares outstanding at the end of the year 5.515.200	55.040

Terms.' rights, preferences end restrictions attached to securities:

The company has one class of equity shares having a par value of Rs. 10 each. Each share holder is eligible for one vote per share held. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential dues, in proportion to their shareholding.

Details of share holders holding more than 5% shares In the company

	As at March 31,2012
Name of share holders	No of Shares held	% of holding
Sangeeta Afay Goenka	1346477	24.44
Mangal Keshav Capllal Limiled	691849	12.54
Mangal Keshav Securities United	1735	0.03
Shyamsundar Makhanlal Tibrewal	625549	11.34
Siddharth Shyamsundar Tibrewal	121.497	2 20
Laxmidevi Tibrewal	-	-
Nihita Talati	-	-

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		55.040	55.040	55.040
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		15.059	12.956	7.661
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		70.099	67.996	62.701
LOAN FUNDS
1] Secured Loans		0.000	0.062	12.288
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.062	12.288
DEFERRED TAX LIABILITIES		0.027	0.079	0.073
TOTAL		70.126	68.137	75.062
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.330	0.445	0.600
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	5.539	0.000
	Sundry Debtors	39.960	5.224	16.088
	Cash & Bank Balances	0.221	0.627	0.060
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	61.595	66.902	59.967
Total Current Assets		101.776	78.292	76.115
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.536	9.959	1.653
	Other Current Liabilities	0.746	0.201	0.000
	Provisions	0.698	0.440	0.000
Total Current Liabilities		31.980	10.600	1.653
Net Current Assets		69.796	67.692	74.462
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		70.126	68.137	75.062

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	96.923	128.005	206.531
		Other Income	1.372	5.254	1.394
		TOTAL (A)	98.295	133.259	207.925
Less	EXPENSES
		Purchase on Stock-in-Trade	86.088	129.231
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	5.539	(5.539)	189.522
		Employee benefits charges	1.528	1.298
		Other expenses	1.970	1.943
		TOTAL (B)	95.125	126.933	189.522
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.170	6.326	18.403
Less	FINANCIAL EXPENSES (D)		0.020	0.869	2.951
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.150	5.457	15.452
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.115	0.156	0.119
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		3.035	5.301	15.332
Less	TAX (H)		0.934	0.006	0.070
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		2.101	5.295	15.262
	Basic		0.38	0.96	2.98
	Diluted		0.38	0.96	2.98

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	7.200	7.200	140.400
Total Expenditure	7.500	7.500	139.600
PBIDT (Excl OI)	(0.300)	(0.300)	0.800
Other Income	1.000	1.100	0.000
Operating Profit	0.700	0.800	0.800
Interest	0.000	0.000	0.000
Exceptional Items	0.000	0.000	0.000
PBDT	0.700	0.800	0.800
Depreciation	0.000	0.000	0.000
Profit Before Tax	0.700	0.800	0.800
Tax	0.300	0.300	0.200
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	0.400	0.500	0.500
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	0.400	0.500	0.500

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.14	3.97	7.34
Net Profit Margin (PBT/Sales)	(%)	3.13	4.14	7.42
Return on Total Assets (PBT/Total Assets}	(%)	2.97	6.73	19.98
Return on Investment (ROI) (PBT/Networth)		0.04	0.08	0.24
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.20
Current Ratio (Current Asset/Current Liability)		3.18	7.39	46.05

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	No
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	No
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

OPERATIONS:

The Company has earned a total revenue of Rs. 98.295 Millions as compared to Rs. 133.260 Millions in the previous year. The total expenditure incurred during the year was Rs. 95.260 Millions as compared to Rs. 127.959 Millions in the previous year. The Net Profit after taxation during the year is Rs. 2.102 Millions as compared to Rs. 5.296 Millions in the previous year. The Directors are exploring various new business opportunities that will enable the Company to improve its financial position.

Global scenario of Paper Industry:
 
Paper industry plays a very prominent role in World economy-Annual revenue from this sector exceeds USD 500 Bn. World Consumption of Paper and Boards grew from 169 Mn tones in 1981, to 250 Mn tones in 1993, to 352 Mn tones in 2005 and to 390 Mn tones currently.
 
Global Paper manufacturing industry is largely dominated by North America, Western Europe and Asia. Over 100 Mn tones of paper and board are consumed by North America, Asia (inct. Japan) accounts for 140 Mn tones and Europe`s share is around 102 Mn tones per annum. The robust growth in Asian economies resulted in large capacity additions in China and India. Additionally, the rising levels of literacy in the region and the sustained thrust on increasing the spread of education are expected to provide the background for sustained demand for paper in this geography.
 
The following factors can be considered as generic demand drivers for paper, globally:
 
* Wide scope of application; Paper is used for diverse purpose viz. Writing, printing, decorating, tissues, etc. Additionally, it enjoys a wide consumer base i.e., across age groups and socio-economic strata.
 
* Short lifecycle: The consumable nature of paper results in short lifespan of paper thereby generating immediate replacement demand.
 
* Absence of substitute: Although polymeric and alternative replacements have been designed to substitute paper, the same are prohibitively expensive.
 
Indian Paper Industry:
 
The Indian Paper Industry has 642 mills with a rated capacity of 9Mn MTPA and operates with a capacity utilization factor (CUF) of 82%, The demand for Paper is expected to increase from 9Kg per capita to 14 Kg per capita by FY 14. The average size of Indian Paper Mills is 38,000 MTPA compared to Global average of 400,000 MTPA. The sector remains fragmented, with a significant amount of capacity concentrated amongst the smaller players with capacities of less than 7,500 MTPA. The domestic paper industry ranks 15th in terms of capacity globally at 9Mn MTPA, with estimated sales of INR 321bn.
 
With regards to India, specific factors contributing to the increasing demand for paper are as follows:-
 
* The ongoing phase of economic growth is a major factor boosting consumption of paper and paperboard. This is most evident from the growth of FMCG and printing sector which are the end users for this product.
 
* Increase in government speeding’s on education and rising levels of literacy are contributing to the enhancement of consumption of paper in the form of increasing demand for textbooks, newspapers, magazines, etc.
 
* The historically low levels of per capita consumption in the country coupled with the growth in population are also resulting in an upward trend in paper demand.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^st DECEMBER 2012

(Rs. In Millions)

	Quarter Ended		Nine Month ended
Particulars	31.12.2012	30.09.2012	31.12.2012
	Unaudited		Unaudited
I. Income from Operations
(a) Net Sales / Income from Operations	140.410	7.206	1,54.794
(b) Other operating Income
Total Income from operations	140.410	7.206	1,54.794
2. Expenses
(a) Purchase of stock-in-trade	157.884	6.596	171.043
(b) Increase/Decrease in stock-in-trade	(21.774)		(21.774)
© Employee benefits expense	0.408	0.404	1.188
(d) Depreciation and amortisation	0.021	0.021	0.064
(e) Other expenses	3.105	0.515	2.048
Total expenses	139.644	7.536	152.569
3. Profit (Loss) from Operation before other Income, finance costs and exceptional Items (1-2)	0.766	(0.330)	2.225
4.Other Income	0.000	1.096	0.000
5. Profit (Loss) from ordinary activities before finance costs and exceptional items (3+ 4)	0.766	0.766	2.225
6. Finance costs	0.003	0.002	0.006
7. Profit/(Loss) from ordinary activities after finance costs but before exceptional items (5+ 6)	0.763	0.764	2.219
8. Exceptional Items
9. Profit / (Loss) from ordinary activities before tax [7+8]	0.763	0.764	2.219
10. Tax expenses	0.232	0.248	0.749
11. Net Profit (+)/Loss(-) from ordinary activities after tax (9-10)	0.531	0.516	1.470
12. Extraordinary Items (Net of tax expense Rs. Nil)
13. Net Profit (+)/Loss (-) for the period (11-12)	0.531	0.516	1.470
14. Paid Up Equity Share capital (Face Value ?. 10/- Per Share)	55.040	55.040	55.040
15.Reserves excluding revaluation reserves as per Balance Sheet of Previous Accounting Year
16 Basic and Diluted Earning Per Share	0.10	0.09	0.27
A. PARTICULARS OF SHARE HOLDING
1. Public shareholding
- Number of Shares	4596926	4596926	4596926
- Percentage of Shareholding	83.30%	83.30%	83.30%
2. Promoters and promoter group shareholding
a) Pledged / Encumbered
- Number of Shares
- Percentage of Shares (as a % of the total shareholding of promoters and promoter group)
b) Non – encumbered
- Number of Shares	921274	921274	921274
- Percentage of shares (as a % of the total shareholding of promoters and promoter group)	100%	100%	100%
Percentage of shares (as a % of total share capital of the company)	16.70%	16.70%	16.70%

B. INVESTOR COMPLAINTS	3 Months ended
Pending at the beginning of the quarter	0
Received during the quarter	0
Disposed of during the quarter	0
Remaining unresolved at the end of the quarter	0

NOTES:

1 The above unaudited financial statement was reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on February 14,

2013. The limited review as required under clause 41 of Listing Agreements has been carried out by Statutory Auditors of the company.

2. The Company is engaged in trading of paper products and does not operate in any other reportable segment. Accordingly AS-17 “Segmental reporting’ is not applicable.

3 Figures for the previous period has been regrouped / reclassified wherever required

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.54.28
UK Pound	1	Rs.82.06
Euro	1	Rs.70.23

INFORMATION DETAILS

Report Prepared by :

RAJ

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	NO
--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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.