MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	BAZARGAON PAPER AND PULP MILLS PRIVATE LIMITED
Registered Office :	Gala No.2, D.P.K. Compound, Behind Lucky Hotel, Kherani Road, Sakinaka, Mumbai - 400072, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.11.1983
Com. Reg. No.:	11-031398
Capital Investment / Paid-up Capital :	Rs. 8.000 Millions
CIN No.: [Company Identification No.]	U21010MH1983PTC031398
TAN No.: [Tax Deduction & Collection Account No.]	NGPB00481F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Kraft Paper.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 258000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management has failed to file its financial with the government department after the year 2010. As per available financial record (2010), the overall financial position of the company appears to be decent. Trade relations are reported as fair. Business is active. Payments are reported to be unknown. 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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 DECLINED BY

Name :	Mr. Ram
Designation :	Manager
Contact No.:	91-712-2523040
Date :	06.11.2013

LOCATIONS

Registered Office :	Gala No.2, D.P.K. Compound, Behind Lucky Hotel, Kherani Road, Sakinaka, Mumbai - 400 072, Maharashtra, India
Tel. No.:	91-22-28525731
Fax No.:	Not Available
E-Mail :	bppml1@yahoo./com
Area :	1500 sq. ft.
Location :	Owned
Factory :	22/1, KH Mouza, Panghnori, Bazargao District, Nagpur - 440012, Maharashtra, India
Tel. No.:	91-712-2523040
Fax No.:	91-712-2523556

DIRECTORS

AS ON 30.09.2010

Name :

Mr. Surajbhan Ramsarandas Agarwal

Designation :

Managing Director

Address :

02/005, Ashiyana, Co-operative Housing Society, Andheri (East), Mumbai, Maharashtra, India

Date of Birth/Age :

20.04.1944

Date of Appointment :

22.11.1983

DIN No.:

00116591

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	Company/ LLP Status	Defaulting status
1	U21010MH1983PTC031398	BAZARGAON PAPER AND PULP MILLS PRIVATE LIMITED	Managing director	22/11/1983	22/11/1983	Active	NO
2	U54380MH1989PLC054380	CRYSTAL PAPER MILLS LIMITED	Managing director	27/11/1989	27/11/1989	Active	NO
3	U21010MH1991PLC063789	ANCHOR PAPER MILLS LIMITED	Managing director	28/10/1991	28/10/1991	Active	YES
4	U21000MH2004PTC149307	MAJESTIC PAPER MILLS PRIVATE LIMITED	Managing director	28/10/2004	28/10/2004	Active	NO
5	U21010MH1992PLC065112	DECOR PAPER MILLS LIMITED	Managing director	01/07/2012	10/02/2005	Active	NO
6	U21098MH2010PLC198581	KOLAR PAPER MILLS LIMITED	Director	14/08/2012	06/01/2010	Active	NO
7	U21000MH2010PLC207471	PONDY PULP AND PAPER LIMITED	Director	06/09/2010	06/09/2010	Active	NO
8	U13203MH2010PTC209854	A-ONE MINERALS PRIVATE LIMITED	Director	08/11/2010	08/11/2010	Active	NO

Name :

Mr. Jaiprakash Narsingdas Agarwal

Designation :

Director

Address :

02/005, Ashiyana, Co-operative Housing Society, Andheri (East), Mumbai, Maharashtra, India

Date of Birth/Age :

02.01.1949

Date of Appointment :

22.11.1983

DIN No.:

00116632

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	Company/ LLP Status	Defaulting status
1	U21010MH1983PTC031398	BAZARGAON PAPER AND PULP MILLS PRIVATE LIMITED	Director	22/11/1983	22/11/1983	Active	NO
2	U54380MH1989PLC054380	CRYSTAL PAPER MILLS LIMITED	Director	27/11/1989	27/11/1989	Active	NO
3	U21010MH1991PLC063789	ANCHOR PAPER MILLS LIMITED	Director	28/10/1991	28/10/1991	Active	YES
4	U21000MH2004PTC149307	MAJESTIC PAPER MILLS PRIVATE LIMITED	Director	28/10/2004	28/10/2004	Active	NO
5	U21010MH1992PLC065112	DECOR PAPER MILLS LIMITED	Whole-time director	01/07/2012	10/02/2005	Active	NO
6	U21098MH2010PLC198581	KOLAR PAPER MILLS LIMITED	Director	14/08/2012	06/01/2010	Active	NO
7	U21000MH2010PLC207471	PONDY PULP AND PAPER LIMITED	Director	06/09/2010	06/09/2010	Active	NO
8	U13203MH2010PTC209854	A-ONE MINERALS PRIVATE LIMITED	Director	08/11/2010	08/11/2010	Active	NO

Name :

Mr. Sushilkumar Narsingdas Agarwal

Designation :

Director

Address :

02/005, Ashiyana, Co-operative Housing Society, Andheri (East), Mumbai, Maharashtra, India

Date of Birth/Age :

20.05.1963

Date of Appointment :

22.03.1993

DIN No.:

00116668

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	Company/ LLP Status	Defaulting status
1	U21010MH1992PLC065112	DECOR PAPER MILLS LIMITED	Director	01/07/2012	29/01/1992	Active	NO
2	U21010MH1983PTC031398	BAZARGAON PAPER AND PULP MILLS PRIVATE LIMITED	Director	22/03/1993	22/03/1993	Active	NO
3	U21010MH1991PLC063789	ANCHOR PAPER MILLS LIMITED	Director	15/11/1995	15/11/1995	Active	YES
4	U54380MH1989PLC054380	CRYSTAL PAPER MILLS LIMITED	Director	19/11/1995	19/11/1995	Active	NO
5	U21010MH1998PTC117231	NEW BOMBAY PAPER MILLS PRIVATE LIMITED	Director	19/01/2004	19/01/2004	Active	NO
6	U21000MH2004PTC149307	MAJESTIC PAPER MILLS PRIVATE LIMITED	Director	28/10/2004	28/10/2004	Active	NO
7	U21098MH2010PLC198581	KOLAR PAPER MILLS LIMITED	Director	14/08/2012	06/01/2010	Active	NO
8	U21000MH2010PLC207471	PONDY PULP AND PAPER LIMITED	Director	06/09/2010	06/09/2010	Active	NO
9	U13203MH2010PTC209854	A-ONE MINERALS PRIVATE LIMITED	Director	08/11/2010	08/11/2010	Active	NO

KEY EXECUTIVES

Name :	Mr. Ram
Designation :	Manager
Name :	Ramanuj Asawa
Designation :	Company Secretary
Address :	1, Shivajinagar, Gandhinagar Square, Opposite Lad College, North Ambazari Road, Nagpur - 440010, Maharashtra, India
E-Mail :	asawaramanuj@gmail.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Surajbhan Agarwal	153700
Jaiprakash Agarwal	96750
Usha Kiran Agarwal	19800
Rajkumar Agarwal	88000
Sushilkumar Agarwal	103250
Padmadevi Agarwal	49450
Santoshdevi Agarwal	53550
Samir Agarwal	10500
Vinitadevi Agarwal	14000
Ritesh Agarwal	29500
Ashish Agarwal	30500
Dayabhai Prajapati	140000
Shelly Agarwal	10000
S.R. Agarwal (H.U.F.)	500
J.P. Agarwal (H.U.F.)	500
Total	800000

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	17.00
Directors or relatives of directors	83.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Kraft Paper.

Products :

Item Code No. (ITC Code)	480429
Product Description	M.G. Kraft Paper

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	2009-2010
a) Licensed Capacity	N.A
b) Installed Capacity	25000 MT*
c) Production - Kraft Paper (Net of Scrapping as waste)	17052 MT

* As certified by the management and relied upon by them a technical matter

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

v State Bank of India, Sme Branch, Ravi Nagar, Amravati Road, Nagpur – 440033, Maharashtra, India

v Andhra Bank, Dharampeth, Nagpur, Maharashtra, India

v Kotak Mahindar Bank, 36-38A, Nariman Bhavan, 227 D, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

SECURED LOANS :	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
State Bank Of India – IFB Working Capital	60.774	50.928
Term Loan [Both Secured against Hypothecation of Current Assets, Raw Materitl, Work-In-Progress, Finished goods and Sundry Debtors and first charge on entire present future Fixed Assets of the Company with Gurantee of all Directors and Decor Chemicals private limited)	10.525	18.641
Hire Purchase Finance Sundaram Finance Limited (Contract No BM 1905)	0.068	0.316
Kotak Mahindra Finanace Limited (Agree CV1293949)	0.000	0.813
Magma Fincrop Limited (AgreeHO/G/O/03/08/001177) (secured against underlying vehicle)	0.900	0.000
Total	72.267	70.698

Banking Relations :	--
Auditors :
Name :	Gupta Sarda and Bagdia Chartered Accountants
Address :	Business Plaza", 6, Farm Land, Central Bazar Road, Lokmat Square, Nagpur - 440 010, Maharashtra, India
Tel. No.:	91-712-2437195/ 2438181
Income-tax PAN of auditor or auditor's firm :	AAAFG8821D
Related Parties :	v Hyderabad Trading Company v Majestic Paper Mills v Crystal Paper Mills Limited v Apex Paper Mills v Apex Trading Company v Décor Chemicals limited v Décor paper Mills Limited v Bangalore Trading Company v Apex Realities v New Bombay Paper Mills

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
800,000	Equity Shares	Rs.10/- each	Rs. 8.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		8.000	8.000	8.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		56.431	52.408	46.123
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		64.431	60.408	54.123
LOAN FUNDS
1] Secured Loans		72.267	70.698	92.924
2] Unsecured Loans		13.271	19.477	23.059
TOTAL BORROWING		85.538	90.175	115.983
DEFERRED TAX LIABILITIES		28.261	29.129	29.024
TOTAL		178.230	179.712	199.130
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		65.230	74.761	87.516
Capital work-in-progress		21.010	21.010	14.501
INVESTMENT		0.000	0.000	0.804
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.260	35.552	40.280
	Sundry Debtors	64.589	57.475	76.998
	Cash & Bank Balances	0.535	1.321	1.785
	Other Current Assets	0.141	0.133	0.089
	Loans & Advances	19.496	21.452	12.567
Total Current Assets		130.021	115.933	131.719
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.828	15.887	20.853
	Other Current Liabilities	16.086	14.763	12.733
	Provisions	3.117	1.342	1.824
Total Current Liabilities		38.031	31.992	35.410
Net Current Assets		91.990	83.941	96.309
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		178.230	179.712	199.130

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	298.441	295.991	274.837
		Other Income	1.468	2.019	4.457
		TOTAL (A)	299.909	298.010	279.294
Less	EXPENSES
		TOTAL (B)	282.899	277.589	258.031
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.010	20.421	21.363
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.775	12.783	11.674
	PROFIT BEFORE TAX (E-F) (G)		6.235	7.638	9.589
	TAX (H)		2.212	1.356	4.254
	PROFIT AFTER TAX (G-H) (I)		4.023	6.284	5.233
	EARNINGS IN FOREIGN CURRENCY		0.000	0.000	0.544
	IMPORTS
		Raw Materials	53.503	65.884	52.164
		Plant and Machinery	0.000	0.691	0.350
	TOTAL IMPORTS		53.503	66.575	52.514
	Earnings Per Share (Rs.)		5.03	7.86	6.54

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.34	2.11	1.87
Net Profit Margin (PBT/Sales)	(%)	2.09	2.58	3.49
Return on Total Assets (PBT/Total Assets}	(%)	3.19	4.01	4.37
Return on Investment (ROI) (PBT/Networth)		0.10	0.13	0.18
Debt Equity Ratio (Total Debt/Networth)		1.33	1.49	2.14
Current Ratio (Current Asset/Current Liability)		3.42	3.62	3.72

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	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	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	No
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

UNSECURED LOANS

UNSECURED LOANS	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
From Director	3.033	3.033
From Share Holders and Promoters	6.286	6.286
From Others	3.952	10.158
Total	13.271	19.477

NOTE:

Registered office of the company has been shifted from 105, Sagartech Plaza 'A' K. A. Road, Sakinaka Junction, Mumbai, Maharashtra, India to the present address w.e.f. 29.02.2008

OPERATION:

The company has produced 17705 MT of Kraft paper as compared to 17052 MT of 2008-09. During the year under report, the company has achieved turnover of Rs.298.441 millions as compared to Rs.295.991 millions of previous year.

The company has achieved PAT of Rs.4.023 millions during the year as compared to Rs.6.284 millions of 2008-09.

The company has planned to move into the higher GSM market with the installation of the third wire but could not execute the same due to ongoing recession and bleak market conditions. The company has planned to start the third wire in the next financial year.

There have been measures taken to reduce the downtime and the operating costs and these have been successful. The company has taken measures to increase the yield and minimize the fresh water consumption. This has further lead to reduction in power consumption.

CONTINGENT LIABILITIES IN RESPECT OF:

Particular	31.03.2010 (Rs. in millions)
a) Bank Guarantee provided to various parties	0.050
b) Letter of Credit and Bills Discounted with Bank	9.517
c) Demand by Central Excise department for Service Tax Liability for the F.Y.2005-06, Contested by the Company in Appeal.	0.000
D) Demand by Excise department for wrong availment of Cenvat credit for F.Y 2008-09, amounting to Rs.1.652 millions, Penalty thereon for Rs.1.652 millions and Evasion of Custom duty of Rs.0.632 million and Penalty thereon for Rs.0.632 million Contested by The Company in CESTAT (Appeal) (Rs.0.150 million deposited)	4.570

FIXED ASSETS:

v Land

v Buildings (Factory)

v Buildings (Non-Factory)

v Plant and Machinery

v Vehicles

v Water Cooler and Heater

v Electrical Installation

v Furniture and Fixture

v Intercom

v Trans Receiver

v Fax Machine

v Air Conditioner

v Computer

v Goods Vehicle

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 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. 62.73
UK Pound	1	Rs. 100.92
Euro	1	Rs. 84.06

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--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.