MIRA INFORM REPORT

Report Date :

23.03.2013

IDENTIFICATION DETAILS

Name :	QED AGRO SYSTEMS PRIVATE LIMITED (w.e.f. 14.12.2001)
Formerly Known As :	QED AGRO SYSTEMS LIMITED
Registered Office :	# 133, Bommasandra Jigani Link Road, KIADB Industrial Area, Jigani, Bangalore – 562 106, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.04.2000
Com. Reg. No.:	08-026862
Capital Investment / Paid-up Capital :	Rs.6.930 millions
CIN No.: [Company Identification No.]	U01409KA2000PTC026862
TAN No.: [Tax Deduction & Collection Account No.]	BLRQ00057B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Color Sorter, Rice Whitener Pearl, Rice Polisher Diamond, Pneumatic Sheller etc.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 430,776
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Financial position of the company appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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.

INFORMATION DENIED BY

Name :	Mr. Ashok Kumar
Designation :	Key Executive
Contact No. :	91-9341218299
Date :	25.02.2013

LOCATIONS

Registered Office/Factory :	# 133, Bommasandra Jigani Link Road, KIADB Industrial Area, Jigani, Bangalore – 562 106, Karnataka, India
Tel. No.:	91-80-27803074 / 27839581 / 82 / 83
Fax No.:	91-80-27839872
E-Mail :	info@qedsorter.com sales@qedsorter.com service@qedsorter.com
Website :	www.qedsorter.com
Location :	Owned

DIRECTORS

As on 29.09.2012

Name :	Mr. Ashok Kumar Polepally Janardhan
Designation :	Managing Director
Address :	268-A, Building Classic Orchards, BGT Road, SOS Village P.O., Bangalore – 560 076, Karnataka, India
Date of Birth/Age :	24.01.1963
Date of Appointment :	04.06.2000
DIN No.:	01978055

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01409KA2000PTC026862	Qed Agro Systems Private Limited	Managing director	04-06-00	04-06-00	Active	NO
2	U70102KA2007PTC042008	Prithvi Ventures Private Limited	Director	07-03-07	07-03-07	Active	NO
3	U29256KA2009PTC049312	Kunstwerk Machinery India Private Limited	Managing director	08-04-09	06-03-09	Active	NO

Name :	Mr. Udaykumar Kantharaj Bhaskara
Designation :	Director
Address :	48/1-GF, Old Kanakapura Road, Opposite Krest Park Apartment, Ratna Vilas Road, Basavanagudi, Bangalore – 560 004, Karnataka, India
Date of Birth/Age :	26.04.1963
Date of Appointment :	26.03.2001
DIN No.:	00148638

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01409KA2000PTC026862	Qed Agro Systems Private Limited	Director	26-03-01	26-03-01	Active	NO
2	L74999KA1984PLC049960	Zoom Exports Limited	Director	26-08-02	26-08-02	Active	NO

Name :	Mr. Ramakrishnan Iyer S
Designation :	Director
Address :	151, Navnath 3 Cross New Bypanahalli Extension, Off Old Madras Road, Indiranagar, Bangalore – 560 038, Karnataka, India
Date of Birth/Age :	25.11.1956
Date of Appointment :	04.06.2000
DIN No.:	00181640

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	U31909KA1998PTC023907	ESCO ELECTRONICS PRIVATE LIMITED	Director	30/06/1998	30/06/1998	-	Dormant	NO
2	U01409KA2000PTC026862	QED AGRO SYSTEMS PRIVATE LIMITED	Director	04/06/2000	04/06/2000	-	Active	NO
3	U31200TZ1984PTC001476	DYNA SPEDE INTEGRATED SYSTEMS PRIVATE LIMITED	Director	30/09/2009	30/07/2009	-	Active	NO
4	U40108KA2010PTC053515	YIELDOPIA ENERGY PRIVATE LIMITED	Director	07/05/2010	07/05/2010	-	Active	NO
5	U20299TZ2010PTC015896	SRIVARI CRAFT TECH PRIVATE LIMITED	Additional director	16/01/2012	16/01/2012	-	Active	NO
6	U32300DL2012PTC230808	TMS TRAFFIC SIGNAL COMPANY PRIVATE LIMITED	Director	31/01/2012	31/01/2012	-	Active	NO
7	U32109DL2012PTC232061	TMS METERING SOLUTION PRIVATE LIMITED	Director	25/02/2012	25/02/2012	-	Active	NO

Name :	Mr. Vasu Thiruvalli
Designation :	Director
Address :	22, 19^th Cross, D-6, 7^th Main, BTM 2^nd Stage, Bangalore – 560 076, Karnataka, India
Date of Birth/Age :	07.07.1968
Date of Appointment :	06.04.2000
DIN No.:	00466808

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01409KA2000PTC026862	Qed Agro Systems Private Limited	Director	06-04-00	06-04-00	Active	NO
2	U29256KA2009PTC049312	Kunstwerk Machinery India Private Limited	Director	06-03-09	06-03-09	Active	NO

Name :	Mr. Badrinath Nelvagal
Designation :	Director
Address :	633, 3^rd Block, 3^rd Stage, Basaveswaranagar, Bangalore – 560 079, Karnataka, India
Date of Birth/Age :	22.09.1960
Date of Appointment :	06.04.2000
DIN No.:	00466821

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01409KA2000PTC026862	Qed Agro Systems Private Limited	Director	06-04-00	06-04-00	Active	NO
2	U72200KA2006PTC038488	Mindframe Educatives Private Limited	Director	15-02-06	15-02-06	Active	NO
3	U29256KA2009PTC049312	Kunstwerk Machinery India Private Limited	Director	06-03-09	06-03-09	Active	NO

Name :	Mr. Venkatachalam Raveen Bomashetty
Designation :	Director
Address :	#47/4, 6^th Main, Tata Solk Farm, Bangalore – 560 028, Karnataka, India
Date of Birth/Age :	14.05.1963
Date of Appointment :	26.03.2001
DIN No.:	02138695

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U01409KA2000PTC026862	Qed Agro Systems Private Limited	Director	26-03-01	26-03-01	Active	NO
2	U72200KA2006PTC038488	Mindframe Educatives Private Limited	Director	15-02-06	15-02-06	Active	NO
3	U70102KA2007PTC042008	Prithvi Ventures Private Limited	Director	07-03-07	07-03-07	Active	NO
4	U29256KA2009PTC049312	Kunstwerk Machinery India Private Limited	Whole-time director	08-04-09	06-03-09	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Badrinath Nelvagal	176645
Ashok Kumar Polepally Janardhan	176645
Vasu Thiruvalli	176645
Ramakrishnan Iyer S	69300
Padmaja Badrinath	7000
Shirin Ashok Kumar	7000
N Rajeswari	7000
B K Udaykumar	31185
Raveen Venkatachalam	31185
Radhika	10395
Total	693000

As on 30.09.2012

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Color Sorter, Rice Whitener Pearl, Rice Polisher Diamond, Pneumatic Sheller etc.
Products :	· Color Sorter · Electronic Color Sorting Machines · Color Sorter Sortex Machines · Grain Processing Machineries · Conveying System · Multi Purpose Sorter, etc.

GENERAL INFORMATION

No. of Employees :

150 (Approximately)

Bankers :

Bank of India

Jayanagar Branch, No. 2904, 11^th Main, 4^th Block, Jayanagar, Bangalore – 560 011, Karnataka, India

Facilities :

Secured Loans	As on 31.03.2012 Rs. in millions	As on 31.03.2011 Rs. in millions
Term Loans – Secured
From Banks
Term loan – Building	3.614	6.014
Total	3.614	6.014

Note

Term Loan Building (Sanction : Rs. 16.150 Millions)

Repayable in 28 quarterly instalment of Rs. 0.600 millions Plus interest with a moratorium period of one year or completion which ever is earlier. Interest payable as and when serviced during moratorium period. Interest at 0% over BOIBPLR with minimum of 12% p.a. Loan Secured against EM of property situated at Plot No.133, Sy No.25 & 27 Bommasandra Jigani Link Road, Bommasandra Industrial Area, Bommasandra Village, Anekal Taluk, Jigani.

The above term loan is guaranteed by directors of the Company VIZ,, Ashok Kumar P J, Badrinath N & Vasu T

Unsecured Loans	As on 31.03.2012 Rs. in millions	As on 31.03.2011 Rs. in millions
Loan from Directors
Ashok Kumar P J	0.030	0.030
Badrinath N	0.197	0.197
Vasu T	0.298	0.298
Total	0.525	0.525

Working Capital Loan (Cash Credit) from Bank are secured by way of Hypothecation of Stocks & Book Debts, Hypothecation of Plant and Machinery, Furniture & Fixtures.

The above working capital loan is secured by personal guarantee of the directors VIZ., Ashok Kumar P J, Badrinath N & Vasu T.

Banking Relations :	--
Auditors :
Name :	D. G. Anil Kumar and Company Chartered Accountants
Address :	No. 151, 2^nd Phase, Royal Lake Front Residency, J. P. Nagar, 8^th Phase, Bangalore – 560 076, Karnataka, India
Tel. No.:	91-80-32941544
PAN No.:	AAMPA6645B

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7,00,000	Equity Shares	Rs.10/- each	Rs.7.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6,93,000	Equity Shares	Rs.10/- each	Rs.6.930 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		6.930	6.930	6.930
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		100.764	53.361	30.086
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		107.694	60.291	37.016
LOAN FUNDS
1] Secured Loans		3.614	6.014	6.894
2] Unsecured Loans		0.525	0.525	0.525
TOTAL BORROWING		4.139	6.539	7.419
DEFERRED TAX LIABILITIES		0.534	0.543	0.141
TOTAL		112.367	67.373	44.576
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		33.189	33.430	21.656
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		20.627	12.823	10.332
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21.989	8.075	13.769
	Sundry Debtors	58.694	33.118	24.365
	Cash & Bank Balances	61.783	48.205	14.839
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	50.651	39.290	18.274
Total Current Assets		193.117	128.688	71.247
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	78.109	69.427	38.479
	Other Current Liabilities	55.057	35.742
	Provisions	1.400	2.399	20.180
Total Current Liabilities		134.566	107.568	58.659
Net Current Assets		58.551	21.120	12.588
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		112.367	67.373	44.576

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	445.737	320.277	195.139
		Other Income	7.863	4.023	1.947
		TOTAL (A)	453.600	324.300	197.086
Less	EXPENSES
		Office Expenses
		Administrative Expenses	368.700	278.300	167.883
		Advertising Expenses
		TOTAL (B)	368.700	278.300	167.883
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		84.900	46.000	--
Less	FINANCIAL EXPENSES (D)		1.500	1.400	--
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		83.400	44.600	29.202
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.700	1.800	0.765
	PROFIT BEFORE TAX (E-F) (G)		79.700	42.800	28.437
Less	TAX (I)		27.300	14.500	7.011
	PROFIT AFTER TAX (G-I) (J)		52.400	28.300	21.426

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	11.55	8.72	10.87
Net Profit Margin (PBT/Sales)	(%)	17.88	13.36	14.57
Return on Total Assets (PBT/Total Assets}	(%)	35.21	26.40	30.60
Return on Investment (ROI) (PBT/Networth)		0.73	0.70	0.76
Debt Equity Ratio (Total Debt/Networth)		0.03	0.10	0.20
Current Ratio (Current Asset/Current Liability)		1.43	1.19	1.21

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	No
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

NOTE

The Registered Office of the company has been shifted from No. 248, 16^th Main, 17^th Cross B.T.M. 2^nd Stage, Bangalore - 560 076 Karnataka India to the present address w.e.f. 10.12.2010.

FORM 8

Corporate identity number of the company	U01409KA2000PTC026862
Name of the company	QED AGRO SYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 248, 16^th Main, 17^th Cross B.T.M. 2^nd Stage, Bangalore - 560 076 Karnataka India
This form is for	Creation of charge
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others o Stocks, Machineries, Furnitures, etc.
Particular of charge holder	Bank of India Jayanagar Branch, No. 2904, 11^th Main, 4^th Block, Jayanagar, Bangalore – 560 011, Karnataka, India E-Mail : jsurya@vsnl.com
Nature of instrument creating charge	Hypothecation Cum Loan Agreement (Plant and Machinery, Stocks and Book Debts) Term Loan Agreement Memorandum Evidencing Creation of Equitable Mortgage (All the documents relate to the same charge)
Date of instrument Creating the charge	28.08.2009
Amount secured by the charge	Rs.16.150 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @0% over BOI BPLR minimum 12% p.a with monthly rests Terms of Repayment TL of Rs.16.150 millions : Repayable in 28 quarterly instalments of Rs.0.600 million each Margin Stocks : 25% Book debts : 40% TL (New Proposed) : 22.36% Extent and Operation of the charge Charge extends by way of first charge on all the assets throughout the period of sanctioned limits. Others NA
Short particulars of the property or asset(s) charged (including complete address and location of the property)	· Hypothecation of the whole of the present and future stocks, book debts, machineries such as electronic color sorting machines, furnitures and fixtures belonging to the company · EM on co's immovable properties situated at Plot bearing No. 133 formed out of Sy. Nos 25 and 27 of Bommasandra - Jigani Link Road Industrial Area, within the limits of Bandenallasandra Village, Jigani Hobli, Anekal Taluk, Bangalore District, measuring 4,885 Sq. mtrs.

FIXED ASSETS

· Computers, UPS and Accessories

· Electrical Fittings Equipments

· Furniture and Fixtures

· Mobile Phones

· Plant and Machinery

· Equipments for R and D

· Accent Car

· Factory Land

· Factory Building WIP

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.54.33
UK Pound	1	Rs.82.55
Euro	1	Rs.70.10

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	NLM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.