MIRA INFORM REPORT

Report Date :

29.05.2013

IDENTIFICATION DETAILS

Name :	SHINAGO INFRASTRUCTURE AND RESOURCES LIMITED (w.e.f. 06.11.2009)
Formerly Known As :	SHINAGO TRADING AND RESOURCES LIMITED
Registered Office :	“Raheja Towers”, Unit - 407, 4^th Floor, 177, Anna Salai, Chennai – 600 002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.07.2008
Com. Reg. No.:	18-068603
Capital Investment / Paid-up Capital :	Rs.300.000 millions
CIN No.: [Company Identification No.]	U51900TN2008PLC068603
TAN No.: [Tax Deduction & Collection Account No.]	CHES34523G MRIS05547D
PAN No.: [Permanent Account No.]	AAMCS2165H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader and Importer of Timber and Steam Coal.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 1357000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Even though the income has improved the net profitability appears to be low. However, trade relations are fair. Business is active. Payments are reported as slow but correct. 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

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/ Corporate Office :	“Raheja Towers”, Unit - 407, 4^th Floor, 177, Anna Salai, Chennai – 600 002, Tamilnadu, India
Tel. No.:	91-44-42145071
Fax No.:	91-44-45508271
E-Mail :	kripa.ca@gmail.com audit@prabhatgroup.com

DIRECTORS

As on 28.09.2012

Name :

Mr. Mahesh Gopal Patel

Designation :

Director

Address :

49/2-A, Tanjore Main Road, Tiruverumbur, Trichy – 620 013, Tamilnadu, India

Date of Birth/Age :

10.08.1983

Qualification :

Under Graduate

Date of Appointment :

15.02.2013

PAN No.:

AHYPM9063E

DIN No.:

01796495

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	U20101TN1997PTC038776	TRANSWORLD WOOD PRIVATE LIMITED	Managing director	31/03/2004	31/03/2004	-	Active	NO
2	U14106TN2004PTC054364	SHINAGO EXIM PRIVATE LIMITED	Managing director	30/09/2004	30/09/2004	07/02/2013	Active	NO
3	U51900TN2008PLC068603	SHINAGO INFRASTRUCTURE AND RESOURCES LIMITED	Managing director	15/02/2013	17/07/2008	-	Active	NO
4	U51102TN2009PTC073345	UNITED LUMBERS PRIVATE LIMITED	Director	28/10/2009	28/10/2009	-	Active	NO
5	U51909TN2010PTC077782	VEE BEE TIMBERS PRIVATE LIMITED	Director	21/10/2010	21/10/2010	-	Active	NO

Name :

Mr. Gopal Khetha Somji Patel

Designation :

Director

Address :

49/2-A, Tanjore Main Road, Tiruverumbur, Trichy – 620 013, Tamilnadu, India

Date of Birth/Age :

18.06.1964

Qualification :

Under Graduate

Date of Appointment :

17.07.2008

PAN No.:

AAGPG1223R

DIN No.:

01792282

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	U52599TN1995PTC033610	PATIDAR WOOD PRIVATE LIMITED	Director	22/11/1995	22/11/1995	07/02/2013	Active	NO
2	U20101TN1997PTC038777	WEST INDIA IMPEX PRIVATE LIMITED	Director	05/08/1997	05/08/1997	-	Active	NO
3	U20101TN1997PTC038776	TRANSWORLD WOOD PRIVATE LIMITED	Director	30/09/2003	30/09/2003	-	Active	NO
4	U14106TN2004PTC054364	SHINAGO EXIM PRIVATE LIMITED	Director	30/09/2004	30/09/2004	07/02/2013	Active	NO
5	U51900TN2008PLC068603	SHINAGO INFRASTRUCTURE AND RESOURCES LIMITED	Director	17/07/2008	17/07/2008	-	Active	NO
6	U51900TN2011PTC081421	SHINAGO INTERNATIONAL (INDIA) PRIVATE LIMITED	Director	08/07/2011	08/07/2011	-	Active	NO

Name :

Mr. Shivgan Ketha Somji Patel

Designation :

Director

Address :

329, Courtallam Road, Piranoor, Shencottah - 627 809, Tamilnadu, India

Date of Birth/Age :

25.10.1956

Qualification :

Under Graduate

Date of Appointment :

17.07.2008

PAN No.:

AGDPP4928P

DIN No.:

01792535

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	U52599TN1995PTC033610	PATIDAR WOOD PRIVATE LIMITED	Director	22/11/1995	22/11/1995	07/02/2013	Active	NO
2	U20101TN1997PTC038776	TRANSWORLD WOOD PRIVATE LIMITED	Director	05/08/1997	05/08/1997	-	Active	NO
3	U20101TN1997PTC038777	WEST INDIA IMPEX PRIVATE LIMITED	Director	05/08/1997	05/08/1997	-	Active	NO
4	U14106TN2004PTC054364	SHINAGO EXIM PRIVATE LIMITED	Director	30/09/2004	30/09/2004	07/02/2013	Active	NO
5	U51900TN2008PLC068603	SHINAGO INFRASTRUCTURE AND RESOURCES LIMITED	Director	17/07/2008	17/07/2008	-	Active	NO
6	U51900TN2011PTC081421	SHINAGO INTERNATIONAL (INDIA) PRIVATE LIMITED	Director	08/07/2011	08/07/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
Shivgan Ketha Somji Patel	2900000	9.67
Hitesh Shivgan Patel	2000000	6.67
Gopal Kheta Patel	2850000	9.50
Nathu Kheta Patel	2850000	9.50
Dinesh Shivgan Patel	2000000	6.67
Hasmukh Shivgan Patel	2000000	6.67
Mahesh Gopal Patel	2000000	6.67
Suresh Nathu Patel	2000000	6.67
Hirubhai Shivgan Patel	1133300	3.78
Pushba Nathu Patel	1133300	3.78
Ramila Gopal Patel	1133400	3.78
Deepak Gopal Patel	1000000	3.33
Pushpa Dinesh Patel	500000	1.67
Jayamala Hasmukh Patel	500000	1.67
Reena Hitesh Patel	500000	1.67
Hema Mahesh Patel	500000	1.67
Hasmitha Suresh Patel	500000	1.67
Shakundala D. Patel	500000	1.67
Jitendra Gopal Patel	2000000	6.67
Paresh Nathu Patel	2000000	6.67
Total	30000000	100.00

As on 22.03.2013

Names of Allottees	No. of Shares
Shivgan Ketha Somji Patel	2008250
Gopal Kheta Patel	1611250
Nathu Kheta Patel	1985050
Dinesh Shivgan Patel	1262500
Hitesh Shivgan Patel	2259250
Hasmukh Shivgan Patel	1323550
Mahesh Gopal Patel	1046250
Suresh Nathu Patel	1849250
Deepak Gopal Patel	1319800
Jitendra Gopal Patel	956250
Paresh Nathu Patel	923800
Hirubhai Shivgan Patel	500000
Pushba Nathu Patel	387500
Ramila Gopal Patel	387500
Pushpa Dinesh Patel	406250
Jayamala Hasmukh Patel	387500
Reena Hitesh Patel	406250
Hema Mahesh Patel	469800
Hasmitha Suresh Patel	300000
Shakundala D. Patel	210000
Total	20000000

As on 28.09.2012

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

BUSINESS DETAILS

Line of Business :

Trader and Importer of Timber and Steam Coal.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Timber	44034990
Steam Coal	27011920

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Punjab National Bank, 10, Raja Street, Thyagaraya Nagar, Chennai – 600 017, Tamilnadu, India
• Allahabad Bank, 11/1 (New No.23), Vellala Street, Purasavalkam, Chennai – 600 084, Tamilnadu, India
• HDFC Bank Limited
• IndusInd Bank

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks
Punjab National Bank	278.761	311.842
HDFC Bank	3.752	0.000
IndusInd Bank	0.000	0.860
Rupee term loans from others	13.334	4.688
SHORT-TERM BORROWINGS
Rupee term loans from banks	101.134	149.877
Total	396.981	467.267

Banking Relations :	--
Auditors :
Name :	T. Selvaraj and Company Chartered Accountants
Address :	No.32, Dewan Rama Road, Purasawalkam, Chennai – 600 084, Tamilnadu, India
PAN No.:	AAAFT0425E
Subsidiary Company :	Shinago International (HK) Limited
Associates Company, Firm and Sole Traders :	Shinago Exim Private Limited Patidar Wood Private Limited Surya Timber Traders Maruthi Saw Mill Bhavani Saw Mill Prabhat Saw Mill Patel Plywood and Timbers Bhavani Plywood and Timbers Gajanand Wood Products

CAPITAL STRUCTURE

After 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 millions

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 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		300.000	107.001	107.001
2] Share Application Money Pending Allotment		0.000	25.418	2.518
3] Reserves & Surplus		39.163	18.951	6.634
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		339.163	151.370	116.153
LOAN FUNDS
1] Secured Loans		396.981	467.267	294.224
2] Unsecured Loans		405.335	241.361	154.960
TOTAL BORROWING		802.316	708.628	449.184
DEFERRED TAX LIABILITIES		4.859	1.245	0.060
TOTAL		1146.338	861.243	565.397
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		418.566	237.093	286.915
Capital work-in-progress		0.000	236.560	0.000
INVESTMENT		40.990	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	404.546	174.787	88.848
	Sundry Debtors	1589.740	919.844	751.997
	Cash & Bank Balances	56.627	98.293	58.856
	Other Current Assets	4.151	1.872	0.000
	Loans & Advances	228.291	15.960	20.958
Total Current Assets		2283.355	1210.756	920.659
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1595.160	818.304	625.549
	Other Current Liabilities	1.413	4.862	14.070
	Provisions	0.000	0.000	3.312
Total Current Liabilities		1596.573	823.166	642.931
Net Current Assets		686.782	387.590	277.728
MISCELLANEOUS EXPENSES		0.000	0.000	0.754
TOTAL		1146.338	861.243	565.397

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	3069.459	1912.900	1407.603
		Other Income	23.412	15.936	1.396
		TOTAL (A)	3092.871	1928.836	1408.999
Less	EXPENSES
		Purchases of stock-in-trade	3147.517	1934.949	1373.827
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(229.760)	(85.938)
		Employee benefit expense	1.390	1.472
		Other expenses	16.714	8.270
		TOTAL (B)	2935.861	1858.753	1373.827
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		157.010	70.083	35.172
Less	FINANCIAL EXPENSES (D)		124.601	50.571	25.518
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		32.409	19.512	9.654
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.490	1.069	0.051
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		29.919	18.443	9.603
Less	TAX (H)		9.707	6.126	2.969
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		20.212	12.317	6.634
	EARNINGS IN FOREIGN CURRENCY
		Trade Receipts	Nil Nil	45.241 USD 962580	25.760 USD 556127
	Earnings / (Loss) Per Share (Rs.)
	- Basic		1.27	1.15	0.62
	- Diluted		1.27	1.12	0.61

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.65	0.64	0.47
Net Profit Margin (PBT/Sales)	(%)	0.97	0.96	0.68
Return on Total Assets (PBT/Total Assets}	(%)	1.11	1.27	0.80
Return on Investment (ROI) (PBT/Networth)		0.09	0.12	0.08
Debt Equity Ratio (Total Debt/Networth)		2.37	4.68	3.87
Current Ratio (Current Asset/Current Liability)		1.43	1.47	1.43

LOCAL AGENCY FURTHER INFORMATION

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	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	No

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Other loans and advances	405.335	241.361
Total	405.335	241.361

Note:

The registered office of the company has been shifted from 675, 200 FT, Inner Ring Road, Madhavaram, Chennai - 600 110, Tamilnadu, India to the present address w.e.f. 06.12.2010.

CORPORATE INFORMATION:

Subject is public Limited Company incorporated on 17.07.2008 in the state of Tamilnadu, India. The company is engaged in the business of import of timber and coal and trading of the same.

OPERATIONS:

1. FINANCIALS:

During this year, the company took some strategic initiatives to improve its volume and profitability. The effects of these changes are expected to bring results in the coming years. During the year ended March 31, 2012, the company has registered a Gross Income of Rs.3092.871 millions as compared to Rs.1928.836 millions, recorded last year. The Profit before tax was Rs.29.920 millions against Rs.18.443 millions, recorded last year.

2. BUSINESS:

In the current economic scenario, they have witnessed good activity in the construction industry in a large number of non-metro cities besides the metro themselves which resulted into active trading in the timber business. The company has experienced growth in revenues in the year. Overall, there was a high level of activity in the timber and coal trade during the year.

3. CURRENT OUTLOOK:

Things are expected to turnaround for better. There is a lot of activity happening in the construction sector. The GDP is expected to again reach a level of 7.8% in the year 2011-12. Company management is closely monitoring and reviewing these changes to suitably modify its business strategy to suit changed market environment. The company is confident of making its way ahead, without compromising on its core values.

WAREHOUSING PROJECT:

The Warehousing and Saw Mill Project is in the advanced stage of completion and the Revenue stream is expected to pick up in the current year.

CONTINGENT LIABILITIES (AS ON 31.03.2012):

Estimated amount of contracts remaining to be executed and not provided for:

a) On Capital Accounts Rs.98.900 millions

b) On account of Guarantees issued Rs.450.000 millions

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51900TN2008PLC068603
Name of the company	SHINAGO INFRASTRUCTURE AND RESOURCES LIMITED
Address of the registered office or of the principal place of business in India of the company	“Raheja Towers”, Unit - 407, 4^th Floor, 177, Anna Salai, Chennai – 600 002, Tamilnadu, India E-Mail: audit@prabhatgroup.com
This form is for	Creation of charge
Type of charge	Others (Corporate Guarantee)
Particular of charge holder	Allahabad Bank, 11/1 (New No.23), Vellala Street, Purasavalkam, Chennai – 600 084, Tamilnadu, India E-Mail: br.purasavalkam@allahabadbank.in
Nature of description of the instrument creating or modifying the charge	Corporate guarantee given to the bank payment of all sums which now are/or may at any time or times be, due to the bank upon the accounts current or cash credit or any other account special or otherwise, or be the discount of or otherwise in respect of bills of exchange, promissory notes or other negotiable securities drawn accepted or endorsed by or otherwise kept or to be kept in the names of the principal in the books of the Bank at Hong Kong with interest at the floating rates by Bank.
Date of instrument Creating the charge	02.04.2013
Amount secured by the charge	Rs.550.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per sanctioned terms and conditions Terms of Repayment: As per sanctioned terms and conditions Margin Subject to sanctioned terms and conditions Extent and Operation of the charge: Subject to sanctioned terms and conditions
Short particulars of the property charged	All Movable and Immovable Properties.

FIXED ASSETS:

· Land

· Buildings

· Plant and Equipments

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Computer Equipments

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.55.74
UK Pound	1	Rs.84.17
Euro	1	Rs.72.03

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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		33

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.