MIRA INFORM REPORT

Report Date :

11.05.2013

IDENTIFICATION DETAILS

Name :	NAHAR POLY FILMS LIMITED (w.e.f. 15.06.2011)
Formerly Known As :	Nahar Investments and Holding Limited
Registered Office :	376, Industrial Area A, Ludhiana – 141003, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.11.1988
Com. Reg. No.:	008820
Capital Investment / Paid-up Capital :	Rs. 125.777 Million
CIN No.: [Company Identification No.]	L17115PB1988PLC008820
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Polyfilms
No. of Employees :	189 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 6000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of the Ludhiana based ‘Nahar Group of Industries’. It is an established company having a satisfactory track record. The company has recorded better growth in its revenue and profits during 2012. There appears continuous dip in the share price of the company. However, trade relations are reported as decent. Business is active. Payments terms are usually correct and as per commitment. The company can be considered 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	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating:- BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	December 10, 2012

Rating Agency Name	CRISIL
Rating	Short term rating:- AB
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	December 10, 2012

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 PARTED BY

Name :	Mr. Anil Garg
Designation :	Finance Head
Contact No.:	91-161-5066220
Date :	09.05.2013

LOCATIONS

Registered Office :	376, Industrial Area A, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2600701/705
Fax No.:	91-161-2222942/2601956
E-Mail :	anilgarg@owmnahar.com secnsm@owmnhar.com smk@owmnahar.com
Website :	http://www.naharpolyfilms.com
Location :	Owned
Factory :	Village Simrai, Mandideep Dist. Raisen, Madhya Pradesh – 464993, India
Tel. No.:	91-7480-295447
Fax No.:	91-7480-233090
Corporate Office :	Nahar Tower 376 Industrial Area-A, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2600701/705
Fax No.:	91-161-2222942/2601956

DIRECTORS

As on: 31.03.2012

Name :	Mr. Jawahar Lal Oswal
Designation :	Chairman
Name :	Mr. Dinesh Oswal
Designation :	Director
Name :	Mr. Kamal Oswal
Designation :	Director
Name :	Mr. Dinesh Gogna
Designation :	Director
Name :	Mr. Komal Jain
Designation :	Director
Name :	Dr. (Mrs.) H. K.Bal
Designation :	Director
Name :	Dr. Om Parkash Sahni
Designation :	Director
Name :	Mr. Kanwar Sain Maini
Designation :	Director
Name :	Dr. Suresh Kumar Singla
Designation :	Director
Name :	Dr. Yash Paul Sachdeva
Designation :	Director
Name :	Dr. Amrik Singh Sohi
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Individuals / Hindu Undivided Family	136773	0.56
Bodies Corporate	16860958	68.57
Sub Total	16997731	69.13
Total shareholding of Promoter and Promoter Group (A)	16997731	69.13
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2464	0.01
Financial Institutions / Banks	860	0.00
Foreign Institutional Investors	24000	0.10
Sub Total	27324	0.11
(2) Non-Institutions
Bodies Corporate	539445	2.19
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	6298312	25.62
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	674238	2.74
Any Others (Specify)	50941	0.21
Non Resident Indians	38963	0.16
Directors 7 their Relatives & Friends	11754	0.05
Trusts	224	0.00
Sub Total	7562936	30.76
Total Public shareholding (B)	7590260	30.87
Total (A)+(B)	24587991	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)	24587991	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Polyfilms
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers
• End Users

No. of Employees :

189 (Approximately)

Bankers :

• Oriental Bank of Commerce
• Bank of Maharashtra

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Oriental Bank of Commerce	632.609	747.629
Bank of Maharashtra	324.673	383.709
Working Capital Loans from banks	79.343	126.613
Total	1036.625	1257.951

*The Term loan is secured by way of first charge (on pari passu basis) on factory land and building and hypothecation of Plant and Machinary and other movable / immovable fixed assets acquired / to be acquired under the project of BOPP plant at Mandideep, Bhopal. It is further secured by Second pari pasu charge on current assets of the company. The Term Loan is personally guaranted by a Director of the Company and corporate guarantee of Rs. 250.000 million (Oriental Bank of Commerce) and Rs.150.000 million (To Bank of Maharashtra) given by M/s. Nahar Spinning Mills Limited.

The above term loans are repayable in installments as per terms of respective agreement over a period of 8-10 years after moratorium period of 2-3 years..

Banking Relations :	--
Auditors :
Name :	Gupta Vigg and Company Chartered Accountants
Address :	101-Kismat Complex, G.T. Road, Miller Ganj, Ludhiana-141 003, Punjab, India
Group Company :	Monto Carlo Foohion Limited Cotton Country Rotary Limited Oswal Leasing Limited
Associates :	Nahar Spinning Mills Limited Nahar Capital and Financial Services Limited Nahar Industrial Enterprises Limited Oswal Woollen Mills Limited Vanaik Spinning Mills Limited Abhilash Growth Fund (Private) Limited Atam Vallabh Financers Limited Bermuda Insurance Brokers Pvt. Limited Kovalam Investments and Trading Company Limited Ludhiana Holdings Limited Monica Growth Fund (Private) Limited Nagdevi Trading and Investment Co. Limited Nahar Growth Fund (Private) Limited Neha Credit and Investment (Private) Limited Ogden Trading and Investment Company (Private) Limited Ruchika Growth Fund (Private) Limited Sankeshwar Holding Company Limited Vanaik Investors Limited Vardhman Investments Limited J.L. Growth Fund Limited Jawahar Lal and Sons

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
90000000	Equity Shares	Rs.5/- each	Rs.450.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24587991	Equity Shares	Rs.5/- each	Rs.122.940 Million
	Share Forefited Account		Rs. 2.837 Million
	Total		Rs.125.777 Million

Reconciliation of Shares Outstanding At The Beginning And At The End Of The Reporting Period

Particulars	Equity Shares
	Number	Rs. In Million
Shares outstanding at the beginning of the year	24587991	122.939
Shares Issued during the year
Shares bought back during the year
Shares outstanding at the end of the year	24587991	122.939

Name of Shareholders holding more than 5% shares of the company

Name of Shareholder	Current Year No. of Shares held % of Holding	Previous Year
		No. of Shares held	% of Holding
M/s Nahar Capital & Financial	12087671 49.16	12087671	49.16
Services Limited
M/s Nahar Industrial Enterprises Limited	1264720 5.14	1264720	5.14

a) The company has not issued any shares in persuance to contract(s) without payment being received in cash during five year immediately preceding the date as at which the Balance Sheet is prepared.

b) The company has not issued any fully paid up Bonus Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

c) The company has not bought back any Shares during five year immediately preceding the date as at which the

Balance Sheet is prepared.

Agregate value of calls unpaid

Unpaid Calls	Rs. In Million
By Directors	Nil
By Officers	Nil

Shares Forfieted

Number of shares 349336

Amount 2836688

The above shares are forfeited in financial year 2006-07 upon non-payment of calls.

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		125.777	125.777	125.777
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1382.061	1326.307	1298.966
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1507.838	1452.084	1424.743
LOAN FUNDS
1] Secured Loans		1036.625	1257.951	533.916
2] Unsecured Loans		0.000	1.500	0.000
TOTAL BORROWING		1036.625	1259.451	533.916
DEFERRED TAX LIABILITIES		29.758	0.000	0.000
TOTAL		2574.221	2711.535	1958.659
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1366.981	1486.222	20.131
Capital work-in-progress		1.693	25.393	1489.644
Capitalisation		0.000	0.000	33.640
INVESTMENT		951.421	951.422	1056.419
DEFERREX TAX ASSETS		0.000	8.741	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	84.654	147.498	12.626
	Trade receivable	235.538	162.877	0.000
	Cash & Bank Balances	12.580	10.221	13.861
	Other Current Assets	8.753	193.110	0.000
	Loans & Advances	172.660	9.170	276.612
Total Current Assets		514.185	522.876	303.099
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.587	44.928	914.291
	Other Current Liabilities	222.059	228.190	19.948
	Provisions	16.413	10.001	10.035
Total Current Liabilities		260.059	283.119	944.274
Net Current Assets		254.126	239.757	(641.175)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2574.221	2711.535	1958.659

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2457.481	1522.019	0.000
		Other Income	26.671	46.228	43.404
		TOTAL (A)	2484.152	1568.247	43.404
Less	EXPENSES
		Cost of material consumed	1574.830	1055.575
		Changes in inventories of finished goods work-in-progress and stock-in-trade	20.427	(61.257)
		Employee benefit Expenses	45.050	35.715
		Others expenses	386.622	234.826
		TOTAL (B)	2026.929	1264.859	3.908
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		457.223	303.388	Including Financial and Depreciation
Less	FINANCIAL EXPENSES (D)		181.792	149.311
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		275.431	154.077
Less/ Add	DEPRECIATION/ AMORTISATION (F)		145.773	124.823
	PROFIT BEFORE TAX (E-F) (G)		129.658	29.254	39.496
Less	TAX (H)		70.033	36.494	5.000
	PROFIT AFTER TAX (G-H) (I)		59.625	(7.240)	34.496
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	218.211	55.831	0.020
		Commission Earnings	0.000	0.000	0.000
		Other Earnings	0.000	0.000	0.000
	TOTAL EARNINGS		218.211	55.831	0.020
	IMPORTS
		Raw Materials	122.231	75.404	11.444
		Stores & Spares	5.744	4.763	81.625
		Capital Goods	0.000	5.928	1013.877
	TOTAL IMPORTS		127.975	86.095	1106.946
	Earnings Per Share (Rs.)		2.85	1.48	1.40

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	31.06.2012	31.09.2012	31.12.2012
	Unaudited	Unaudited	Unaudited
Net Sales	384.300	642.500	566.200
Total Expenditure	360.100	552.700	531.100
PBIDT (Excl OI)	24.200	89.800	35.200
Other Income	12.000	0.300	03.400
Operating Profit	36.100	90.100	38.600
Interest	39.500	41.400	39.100
Exceptional Items	0	0	0
PBDT	(3.400)	48.700	(0.500)
Depreciation	36.400	36.400	36.400
Profit Before Tax	(39.700)	12.300	(36.900)
Tax	(15.400)	6.500	(16.100)
Provisions and contingencies	0	0	0
Profit After Tax	(24.400)	5.900	(20.800)
Extraordinary Items	0	0	0
Prior Period Expenses	0	0	0
Other Adjustments	0	0	0
Net Profit	(24.400)	5.900	(20.800)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.40	(0.46)	79.48
Net Profit Margin (PBT/Sales)	(%)	5.28	1.92	0.00
Return on Total Assets (PBT/Total Assets}	(%)	6.89	1.46	122.19
Return on Investment (ROI) (PBT/Networth)		0.08	0.02	0.02
Debt Equity Ratio (Total Debt/Networth)		0.69	0.87	0.37
Current Ratio (Current Asset/Current Liability)		1.98	1.84	0.32

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	No
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	No
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	Yes

UNSECURED LOAN

Particulars	As on 31.03.2012	As on 31.03.2011
Loans from related parties	0.000	1.500
Total	0.000	1.500

Working capital facilities under consortium arrangement are secured by way of first pari pasu charge on Current Assets, second pari pasu charge on fixed assets including equitable mortgage of factory land and building of the company and is personaly guaranteed by a Director of the Company.

OPERATIONAL REVIEW

The members must be aware that the BOPP Films plant started its operations on 20th May, 2010. Thus the year is the company's Ist full year of operations. During its Ist full year operations, company achieved an operating income of Rs.2648.200 out of which Rs.225.000 is export turnover. Thus the Company has made a good beginning in the export markets. On financial front, the company performed reasonably well and earned a profit before interest and depreciation (PBIT) of Rs.457.200 million during the year. After providing Rs.181.800 million towards finance cost and Rs.145.800 million towards depreciation, it earned a profit before tax of Rs.129.700 million. After providing for income tax and deferred tax of Rs.59.600 million and adjustment of earlier years tax, the company earned a net profit of Rs.7.02 million. After appropriation of profit as per detail hereinabove an amount of Rs.55.000 million has been transferred to General Reserve thereby increasing company's reserve to Rs.933.300 million as on 31^st March, 2012.

CHANGE OF COMPANY'S NAME

The National Stock Exchange of India Limited and The Stock Exchange, Mumbai have approved the change of company's name from Nahar Investments and Holding Limited to Nahar Poly Films Limited with effect from 15.06.2011. The ISIN of the scrip is INE308A01027. The scrip code of the Company for trading at National

Stock Exchange Association Limited (NSE) and The Stock Exchange Limited, Mumbai (BSE) are as under:

For trading at BSE: 523391

For trading at NSE: NAHAR POLY

INDUSTRY STRUCTURE AND DEVELOPMENTS

The BOPP films of flexible packaging industry, has emerged as one of the most popular, high growth films in the world. Lower costs and convenience has added to the growth of BOPP films in the flexible packaging. The BOPP Films industry which has started as replacement for cellophance because of its better moisture barrier properties has created its own identity in flexible packaging market. Because of its properties, BOPP Films are more suitable for packaging of food products like snack food, biscuits, pasta and meat etc. Over the past few years, the growing preference for sophisticated and hygienically packaging has been driving the growth for BOPP Films both in developed and emerging markets. In India the demand for BOPP Films has grown from 227 tons in1978 to 0.350 million tons in 2012. The industry has been growing rapidly due to strong economic growth and rising middle class looking for more sophisticated packed food and consumer goods.

Having regard to the immense opportunities for BOPP Films, the company put up a BOPP project with a capacity of 30000 TPA in the state of Madhya Pradesh. The Plant is equipped with state of the art manufacturing facilities imported from Bruckner of Germany. The plant has started it operation on 20^th May, 2010; The products of the company have been well received in the markets.

FUTURE OUTLOOK

The future outlook of the BOPP Films industry seems to be reasonably good as the growth driver of the yester years are still present in the Asian markets especially India and China. This will give a further push to the demand for the BOPP Films. The phenomenal growth of retail segment coupled with economic growth of the country are also expected to influence of flexible packaging industry favorably. The company is looking at the future with optimism and shall be expanding its business activities into the new areas, in due course of time so that it can make use of available opportunities and emerge as fully integrated flexible packaging company.

CONTIGENT LIABILITIES

PROVISION AND CONTIGENT LIABILITIES

a) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if: - the company has a present obligation as a result of past event.

- A probable outflow of resources embodying economic benefits is expected to settle the obligation and

- The amount of the obligation can be reliably estimated.

b) Contingent Liability is disclosed in case of:

- A present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or

- A possible obligation, unless the probability of outflow in settlement is remote.

Particulars	As on 31.03.2012	As on 31.03.2011
	Rs. n Million	Rs. n Million
Contingent Liabilities	Nil	Nil
Claims against the company not acknowledged as debt	Nil	Nil
Guarantees	Nil	Nil
Other money for which the company is contingently liable	Nil	Nil
Commitments	Nil	Nil
Estimated amount of contracts remaining to be executed on capital account and not provided for	0.040	Nil
Uncalled liability on shares and other investments partly paid	Nil	Nil
Letter of Credit outstanding in favour of Suppliers of Goods (Net of Advances)	16.214	11.668
Other commitments (specify nature)	Nil	Nil
Total	16.255	11.668

FIXED ASSETS

• Land and Building
• Plant and Machinery
• Vehicles
• Furniture and Fixtures

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. 54.54
UK Pound	1	Rs. 84.19
Euro	1	Rs. 71.10

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.