MIRA INFORM REPORT

Report Date :

05.10.2013

IDENTIFICATION DETAILS

Name :	FINOLEX J-POWER SYSTEMS LIMITED (w.e.f. 13.09.2013)
Formerly Known As :	FINOLEX J-POWER SYSTEMS PRIVATE LIMITED
Registered Office :	26/27, Mumbai - Pune Road, Pimpri, Pune – 411018, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.01.2008
Com. Reg. No.:	11-131238
Capital Investment / Paid-up Capital :	Rs.980.000 Millions
CIN No.: [Company Identification No.]	U31300PN2008PTC131238
TAN No.: [Tax Deduction & Collection Account No.]	PNEF01065B
PAN No.: [Permanent Account No.]	AABCF1868R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of High Voltage Power Cable.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 2500000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears huge accumulated losses recorded by the company in financial year 2012. Trade relations are reported to be fair. Business is active. Payment terms are reported to be slow. 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB (Long Term Loans)
Rating Explanation	Inadequate credit quality and high credit risk.
Date	February 2013

Rating Agency Name	ICRA
Rating	A4 (Short Term Non Fund Based)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	February 2013

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

Management Non Cooperative. (91-20-27475963)

LOCATIONS

Registered Office / Factory :	26/27, Mumbai - Pune Road, Pimpri, Pune – 411018, Maharashtra, India
Tel. No.:	91-20-27475963
Fax No.:	91-20-27472239
E-Mail :	dsilva_rg@finolex.com sunil_shetty@finolexpower.com sales@finolex.com mahesh_kulkarni@finolex.com
Website :	www.finolexpower.com
Location :	Owned
Plant:	Gate Number 1142-1149, Shirwal, Taluka Khandala, District Satara – 412801, Maharashtra, India

DIRECTORS

As on: 26.09.2012

Name :

Mr. Deepak Kishan Chhabria

Designation :

Director

Address :

329-331, Sindh Housing Society, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

31.10.1962

Date of Appointment :

04.01.2008

DIN No.:

01403799

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	L31300MH1967PLC016531	FINOLEX CABLES LIMITED	Whole-time director	01/07/2013	13/02/1992	-	Active	NO
2	U45203PN2007PLC129575	FINOLEX INFRASTRUCTURE LIMITED	Director	07/02/2007	07/02/2007	-	Active	NO
3	U65993MH1988PTC048533	MOHINI INVESTMENTS PVT LTD	Director	29/09/2007	30/03/2007	-	Amalgamated	NO
4	U65993MH1988PTC049172	VKC INVESTMENTS PRIVATE LIMITED	Director	29/09/2007	30/03/2007	-	Amalgamated	NO
5	U65993MH1988PTC048956	K P INVESTMENTS PVT LTD	Director	29/09/2007	30/03/2007	-	Amalgamated	NO
6	U32205MH1988PTC048534	FINO COMMUNICATION EQUIPMENTS PVT LTD	Director	29/09/2007	30/03/2007	-	Amalgamated	NO
7	U24231MH1979PTC020957	FINOLIB CHEMICALS PVT LTD	Director	29/09/2007	30/03/2007	-	Amalgamated	NO
8	U25209MH1985PTC036459	HI TECH POLY COATINGS PVT LTD	Director	29/09/2007	30/03/2007	-	Amalgamated	NO
9	U22221MH1987PTC045090	PRATIBHA XERO GRAPHIC IMPRESSIONS PVT LTD	Director	29/09/2007	30/03/2007	-	Amalgamated	NO
10	U31300PN2008PLC131238	FINOLEX J-POWER SYSTEMS LIMITED	Director	04/01/2008	04/01/2008	-	Active	NO
11	U91110PN2005NPL020305	YOUNG PRESIDENTS ORGANIZATION (PUNE CHAPTER)	Director	31/12/2011	12/08/2011	-	Active	NO
12	U74999MH1971PTC015021	ORBIT ELECTRICALS PRIVATE LIMITED	Director	08/09/2012	24/03/2012	-	Active	NO
13	U74900PN2011PTC139393	Corning Finolex Optical Fibre Private Limited	Additional director	11/12/2012	11/12/2012	-	Active	NO

Name :

Mr. Mahesh Viswanathan

Designation :

Director

Address :

A-201, Runwal Spring Park, Off Baner Road, Pune – 411045, Maharashtra, India

Date of Birth/Age :

25.04.1960

Date of Appointment :

29.07.2009

DIN No.:

02780987

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	U31300PN2008PLC131238	FINOLEX J-POWER SYSTEMS LIMITED	Director	29/07/2009	06/05/2009	-	Active	NO
2	L31300MH1967PLC016531	FINOLEX CABLES LIMITED	Managing director	01/07/2013	01/11/2010	-	Active	NO
3	U74900PN2011PTC139393	Corning Finolex Optical Fibre Private Limited	Additional director	11/12/2012	11/12/2012	-	Active	NO

Name :

Mr. Gautam Kumar Banerjee

Designation :

Director

Address :

Flat No.102, Swasti Apartments, Road No.6, Kalyani Nagar, Pune – 411006, Maharashtra, India

Date of Birth/Age :

15.09.1956

Date of Appointment :

28.07.2011

DIN No.:

03276691

Name :

Fumio Yoshida

Designation :

Director

Address :

3-18-6, Kamata Ohta Ku, Japan 1440052

Date of Birth/Age :

06.02.1950

Date of Appointment :

29.07.2009

DIN No.:

02127830

Name :

Masataka Miyake

Designation :

Director

Address :

1-25-1-612. Nakoji Amagasaki City, Japan 6610974

Date of Birth/Age :

20.05.1959

Date of Appointment :

16.01.2012

DIN No.:

02127981

PAN No.:

BTBPM6684F

Name :

Yoshihiro Yoshihara

Designation :

Director

Address :

8-28-505, Nishioji-Cho, Kusatsu-Shi Shiugaken Japan 5250037

Date of Birth/Age :

10.11.1965

Date of Appointment :

28.07.2011

DIN No.:

03163050

KEY EXECUTIVES

Name :	Mr. Mahesh Arvind Kulkarni
Designation :	Secretary
Address :	Flat No.9, Murlidhar Kunj Apartments, Lane No.10, Dahanukar Colony, Pune – 411038, Maharashtra, India
Date of Birth/Age :	23.09.1975
Date of Appointment :	09.11.2009
PAN No.:	APNPK9967L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 26.09.2012

Names of Shareholders	No. of Shares
Finolex Cables Limited, India	48020000
J-Power Systems Corporation, Japan	49980000
Total	98000000

As on: 15.06.2013

Names of Allottees	No. of Shares
Finolex Cables Limited, India	12250000
J-Power Systems Corporation, Japan	12750000
Total	25000000

Equity Share Break up (Percentage of Total Equity)

As on: 26.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of High Voltage Power Cable.

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· Export-Import Bank of India (Exim Bank), Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· State Bank of India Industrial Finance Branch, Tara Chambers,2nd floor, Near Mairaaipolice Chowky, Old Pune Mumbai Highway, Wakdewadi, Pune - 411003, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Rupee term loans from banks	491.112	408.259
Foreign currency term loans from banks	539.905	599.385
SHORT TERM BORROWINGS
Working capital loans from banks	10.666	0.000
Total	1041.683	1007.644

Banking Relations :	--
Auditors :
Name :	S. V. Ghatalia and Associates Chartered Accountants
Address :	C-401, 4th Floor, Panchshil Tech Park, Yerwada (Near Don Bosco School) Pune - 411 006, Maharashtra, India
PAN No.:	AACFS6921Q
Joint Venture :	Finolex Cables Limited
Holding Company :	J Power Systems Corporation

CAPITAL STRUCTURE

After 26.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
123,000,000	Equity Shares	Rs.10/- each	Rs.1230.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
123,000,000	Equity Shares	Rs.10/- each	Rs.1230.000 Millions

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
123,000,000	Equity Shares	Rs.10/- each	Rs.1230.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
98,000,000	Equity Shares	Rs.10/- each	Rs.980.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	980.000	980.000	780.000
(b) Reserves & Surplus	(330.936)	(110.060)	(16.904)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	649.064	869.940	763.096
(3) Non-Current Liabilities
(a) long-term borrowings	1031.017	1007.644	645.850
(b) Deferred tax liabilities (Net)	0.000	23.057	0.000
(c) Other long term liabilities	0.844	0.336	11.321
(d) long-term provisions	0.000	0.000	0.126
Total Non-current Liabilities (3)	1031.861	1031.037	657.297
(4) Current Liabilities
(a) Short term borrowings	10.666	0.000	0.000
(b) Trade payables	11.028	13.706	0.000
(c) Other current liabilities	275.956	61.728	76.744
(d) Short-term provisions	1.900	1.329	0.400
Total Current Liabilities (4)	299.550	76.763	77.144
TOTAL	1980.475	1977.740	1497.537
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1817.078	939.520	99.302
(ii) Intangible Assets	27.827	1.007	0.504
(iii) Capital work-in-progress	0.000	791.227	1169.709
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	42.905	59.175	26.558
(e) Other Non-current assets	7.621	20.022	19.389
Total Non-Current Assets	1895.431	1810.951	1315.462
(2) Current assets
(a) Current investments	0.000	129.494	152.898
(b) Inventories	39.148	12.339	0.000
(c) Trade receivables	7.444	2.350	0.000
(d) Cash and cash equivalents	2.128	18.677	6.247
(e) Short-term loans and advances	36.261	0.658	20.970
(f) Other current assets	0.063	3.271	1.960
Total Current Assets	85.044	166.789	182.075
TOTAL	1980.475	1977.740	1497.537

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	212.566	53.234	0.000
		Other Income	6.040	10.124	10.289
		TOTAL	218.606	63.358	10.289
Less	EXPENSES
		Office Expenses	439.482	156.514	14.289
		Administrative Expenses
		Advertising Expenses
		TOTAL	439.482	156.514	14.289
	PROFIT/ (LOSS) BEFORE TAX		(220.876)	(93.156)	(4.000)
Less	TAX		0.000	0.000	0.275
	PROFIT/ (LOSS) AFTER TAX		(220.876)	(93.156)	(4.275)
	EARNINGS IN FOREIGN CURRENCY
		Earnings by way of exports	3.188	0.000	0.000
	TOTAL EARNINGS		3.188	0.000	0.000
	Earnings/ (Loss) Per Share (Rs.)		(2.25)	(0.95)	(0.07)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(101.04)	(147.03)	(41.55)
Net Profit Margin (PBT/Sales)	(%)	(103.91)	(174.99)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(11.15)	(7.85)	(1.22)
Return on Investment (ROI) (PBT/Networth)		(0.34)	(0.11)	(0.01)
Debt Equity Ratio (Total Debt /Networth)		1.60	1.16	0.85
Current Ratio (Current Asset/Current Liability)		0.28	2.17	2.36

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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	Yes

COMPANY OUTLOOK:

The Company commenced commercial production with 66 KV and progressively went to manufacture 220 KV as well. The cables have passed all the specification in in-house lab and 66 KV and 220 KV was sent to third party government lab in CPRI and have passed successfully. The Company successfully executed order for Singapore utility and has secured prestigious turnkey order of Rs.380 Millions from Maharashtra State Electricity Board. The Company is first in India to manufacture 2500 sq mm conductor.

The Company intends to get BIS and NABL accreditation and have submitted application to the concerned department for the same.

BUSINESS OUTLOOK:

There has been less than expected growth in the Power sector and as a result a negative growth has been registered for Power Cables production in the country for the year under review as per data published by IEEMA. Delays have been observed in implementation of T&D projects by large utilities.

Although many utilities have ambitious plans to augment underground transmission and distribution network, they are facing problem of poor financial conditions and also delay in financial closure. This has resulted in general slowdown in the demand for HV cables in 66kV and above category. Many tenders are in the pipeline for quite some time but not floated or decided as was expected earlier.

It is however encouraging to note that a large number of EHV underground transmission projects are underway with finance from JICA and also from internal accruals of the utilities.

There are barriers in participation in some of the tenders due to stipulation of Qualifying Requirements in terms of number of years of experience and /or minimum supply record of cables in KMs. There are also certain policy measures such as Project Imports and FTAs signed with various countries by the Government of India which has allowed increased competition from overseas manufacturers. Our Company has already made a modest beginning in securing a Rs.370 Million contract from MSETCL which will help in establishing its credentials and participating many future tenders.

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10367226	27/09/2012 *	470,000,000.00	State Bank of India Industrial Finance Branch	Tara Chambers, 2nd floor, Near Mairaaipolice Chowky, Old Pune Mumbai Highway, Wakdewadi, Pune, Maharashtra - 411003, INDIA	B60381357
2	10173652	26/11/2012 *	550,200,000.00	Export-Import Bank of India (Exim Bank)	Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, MUMBAI, Maharashtra - 400005, INDIA	B64582612
3	10174188	27/09/2012 *	609,800,000.00	State Bank of India Industrial Finance Branch	Tara Chambers,2nd floor, Near Mairaaipolice Chowky, Old Pune Mumbai Highway, Wakdewadi, Pune, Maharashtra - 411003, INDIA	B60382983

* Date of charge modification

FIXED ASSETS:

· Building

· Plant and machinery

· Furniture and fittings

· Computers

· Office equipment

· Vehicles

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.61.41
UK Pound	1	Rs.99.29
Euro	1	Rs.83.68

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.