MIRA INFORM REPORT

Report Date :

08.10.2013

IDENTIFICATION DETAILS

Name :	KARNAL MILK FOODS LIMITED
Registered Office :	134 K.M. Stone, Village Dadupur, G.T. Road, Karnal – 132001, Haryana
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.11.1991
Com. Reg. No.:	05-031481
Capital Investment / Paid-up Capital :	Rs.66.529 Millions
CIN No.: [Company Identification No.]	U15202HR1991PLC031481
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Trader of Milk Dairy Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 580000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Sales turnover of the company has increased in financial year 2012. But profit margin of the company appears to be low. However, trade relations are fair. Business is active. Payment terms are 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 – 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 (Fund Based Limits)
Rating Explanation	Inadequate credit quality and high credit risk.
Date	September 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 (91-184-2388900)

LOCATIONS

Registered Office/ Factory :	134 K.M. Stone, Village Dadupur, G.T. Road, Karnal – 132001, Haryana, India
Tel. No.:	91-184-2388900/ 2388200
Fax No.:	91-184-2388100
E-Mail :	amitsehgalcs@gmail.com info@karanmilk.co karanmilk@gmail.com marketing@karanmilk.com exports@karanmilk.com dinesh@djainassociates.com
Website :	www.karanmilk.com
Corporate Office :	202, Time House, 5- Commercial Complex Wazirpur, Delhi – 110052, India
Tel. No.:	91-11-27372314/ 27377881
Fax No.:	91-11-27373684
Marketing Office (Kolkata) :	Room No. 6, IInd Floor 20/1, M. D. Road, Kolkata – 700007, West Bengal, India
Tel. No.:	91-33-22183771/ 22087771
Fax No.:	91-33-22749418
Marketing Office (Gurgaon) :	U.S. Square, Plot No. 64-65, Udyog Vihar, Phase-4, NH-8, Gurgaon - 122016, Haryana, India

DIRECTORS

As on: 31.08.2012

Name :

Mr. Vipin Gupta

Designation :

Director

Address :

14, The Mall, Karnal - 132001, Haryana, India

Date of Birth/Age :

29.08.1963

Qualification :

Graduate

Date of Appointment :

26.11.1991

PAN No.:

ABFPG9126P

DIN No.:

00108338

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	U15202HR1991PLC031481	KARNAL MILK FOODS LIMITED	Director	26/11/1991	26/11/1991	-	Active	NO
2	U32109DL1996PTC082602	ELECTROVISION INDIA PRIVATE LIMITED	Director	16/10/1996	16/10/1996	-	Active	NO
3	U74899DL2000PLC103611	KMF SOLUTIONS LIMITED	Director	04/02/2000	04/02/2000	-	Active	NO
4	U51909DL2000PTC106149	KMF INTERNATIONAL PRIVATE LIMITED	Director	07/06/2000	07/06/2000	-	Active	NO
5	U45201DL2005PTC133499	B M G BUILDCON PRIVATE LIMITED	Director	02/03/2005	02/03/2005	-	Active	NO
6	U18101DL2005PTC139295	ROOPAK LOOMTEX PRIVATE LIMITED	Director	03/08/2005	03/08/2005	31/07/2013	Active	NO
7	U15201DL2005PTC138427	GEE VEE FOODS PRIVATE LIMITED	Director	03/08/2005	03/08/2005	-	Active	NO
8	U45201DL2006PTC144367	CHESTER LAND DEVELOPERS PRIVATE LIMITED	Director	02/01/2006	02/01/2006	-	Active	NO
9	U24233DL2006PTC150486	SAMRIDHI BIOTECH PRIVATE LIMITED	Director	24/03/2007	24/03/2007	-	Active	NO
10	U74900DL2007PTC164960	KMF MANAGEMENT AND CONSULTANTS PRIVATE LIMITED	Director	20/06/2007	20/06/2007	-	Active	NO
11	U15490DL2007PTC164961	PLATINUM FOOD PRIVATE LIMITED	Director	20/06/2007	20/06/2007	-	Active	NO
12	U15137DL2007PTC165892	ALPHA MILKPOWDERS PRIVATE LIMITED	Director	16/07/2007	16/07/2007	-	Active	NO
13	U51101DL2005PTC142087	ALLENE OVERSEAS PRIVATE LIMITED	Director	05/02/2009	05/02/2009	24/06/2009	Active	NO
14	U74999DL2010PTC200984	INNOVATION DATA ANALYTICS PRIVATE LIMITED	Additional director	10/09/2011	10/09/2011	-	Active	NO
15	U70109DL2011PTC219658	STANDARD BUILDHOMES PRIVATE LIMITED	Director	15/09/2011	15/09/2011	-	Active	NO
16	U45200DL2012PTC232773	VRS BUILDCON PRIVATE LIMITED	Director	13/03/2012	13/03/2012	-	Active	NO
17	U45400DL2012PTC245528	S.T.B.J. DEVELOPERS PRIVATE LIMITED	Director	30/11/2012	30/11/2012	-	Active	NO
18	U45209DL2012PTC246449	ALL TIME PROMOTERS PRIVATE LIMITED	Director	19/12/2012	19/12/2012	-	Active	NO
19	U45200DL2013PTC250133	V.G. PROMOTERS PRIVATE LIMITED	Director	30/03/2013	30/03/2013	-	Active	NO

Name :

Mr. Gian Parkash Gupta

Designation :

Director

Address :

14, The Mall, Karnal - 132001, Haryana, India

Date of Birth/Age :

21.11.1942

Qualification :

Graduate

Date of Appointment :

26.11.1991

PAN No.:

ABFPG9127N

DIN No.:

00108366

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	U15202HR1991PLC031481	KARNAL MILK FOODS LIMITED	Director	26/11/1991	26/11/1991	-	Active	NO
2	U32109DL1996PTC082602	ELECTROVISION INDIA PRIVATE LIMITED	Director	16/10/1996	16/10/1996	-	Active	NO
3	U74899DL2000PLC103611	KMF SOLUTIONS LIMITED	Director	04/02/2000	04/02/2000	-	Active	NO
4	U51909DL2000PTC106149	KMF INTERNATIONAL PRIVATE LIMITED	Director	07/06/2000	07/06/2000	-	Active	NO
5	U18101DL2005PTC139295	ROOPAK LOOMTEX PRIVATE LIMITED	Director	03/08/2005	03/08/2005	31/07/2013	Active	NO
6	U15201DL2005PTC138427	GEE VEE FOODS PRIVATE LIMITED	Director	03/08/2005	03/08/2005	-	Active	NO
7	U24233DL2006PTC150486	SAMRIDHI BIOTECH PRIVATE LIMITED	Director	03/07/2006	03/07/2006	-	Active	NO
8	U74900DL2007PTC164960	KMF MANAGEMENT AND CONSULTANTS PRIVATE LIMITED	Director	20/06/2007	20/06/2007	-	Active	NO

Name :

Mr. Vineet Gupta

Designation :

Director

Address :

14, The Mall, Karnal - 132001, Haryana, India

Date of Birth/Age :

15.10.1971

Qualification :

Graduate

Date of Appointment :

26.11.1991

DIN No.:

00554467

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	U15202HR1991PLC031481	KARNAL MILK FOODS LIMITED	Director	26/11/1991	26/11/1991	-	Active	NO
2	U51101DL2005PTC142087	ALLENE OVERSEAS PRIVATE LIMITED	Director	24/10/2005	24/10/2005	24/06/2009	Active	NO
3	U15490DL2007PTC164961	PLATINUM FOOD PRIVATE LIMITED	Director	20/06/2007	20/06/2007	14/11/2008	Active	NO

Name :

Smarth Gupta

Designation :

Director

Address :

14, The Mall, Opposite SP Residence, Karnal – 132001, Haryana, India

Date of Birth/Age :

11.04.1990

Date of Appointment :

05.11.2012

DIN No.:

02285284

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.08.2012

SHAREHOLDING DETAILS FILE ATTACHED

As on: 31.03.2013

Names of Allottees	No. of Shares
KMF Solution Limited	60800
Salwan Builders Developers Private Limited	26000
Electrovisions India Private Limited	33240
Roopak Loomtex Private Limited	8400
KMF International Private Limited	45800
Shipra Gupta	25600
Gian Parkash Gupta	240000
Total	439840

Equity Share Break up (Percentage of Total Equity)

As on: 31.08.2012

Category	Percentage
Bodies corporate	5.71
Directors or relatives of directors	94.29
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Trader of Milk Dairy Products.

Products :

Product Description	ITC Code
Milk and Milk Products	04039090

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India – Industrial Finance Branch, Jawahar Vyapar Bhawan, 14th Floor, 1 Tolstoy Marg, New Delhi – 110001, India
• HDFC Bank Limited
• ICICI Bank Limited
• Axis Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG-TERM BORROWINGS
Rupee term loans from banks	1.137	1.142
SHORT-TERM BORROWINGS
Loans repayable on demand	99.960	119.142
Total	101.097	120.284

Banking Relations :	--
Auditors :
Name :	Dinesh K. Jain and Associates Chartered Accountants
Address :	Geeta Mandir Road, Geeta Market, Haryana, India
PAN No.:	AAEFD6898H

CAPITAL STRUCTURE

After: 31.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7092740	Equity Shares	Rs.10/- each	Rs.70.927 Millions

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6652900	Equity Shares	Rs.10/- each	Rs.66.529 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	66.529	66.529
(b) Reserves & Surplus	75.125	68.090
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	5.584	5.059
Total Shareholders’ Funds (1) + (2)	147.238	139.678
(3) Non-Current Liabilities
(a) long-term borrowings	23.631	33.700
(b) Deferred tax liabilities (Net)	20.436	20.527
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	44.067	54.227
(4) Current Liabilities
(a) Short term borrowings	99.960	119.142
(b) Trade payables	53.542	27.537
(c) Other current liabilities	2.616	3.105
(d) Short-term provisions	4.706	3.857
Total Current Liabilities (4)	160.824	153.641
TOTAL	352.129	347.546
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	115.986	120.206
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	2.215	1.765
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3.685	5.020
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	121.886	126.991
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	161.982	114.946
(c) Trade receivables	48.148	93.090
(d) Cash and cash equivalents	10.049	7.889
(e) Short-term loans and advances	10.064	4.630
(f) Other current assets	0.000	0.000
Total Current Assets	230.243	220.555
TOTAL	352.129	347.546

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		66.529
2] Share Application Money		8.374
3] Reserves & Surplus		61.136
4] (Accumulated Losses)		0.000
NETWORTH		136.039
LOAN FUNDS
1] Secured Loans		179.068
2] Unsecured Loans		0.000
TOTAL BORROWING		179.068
DEFERRED TAX LIABILITIES		20.453
TOTAL		335.560
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		127.043
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	191.777
	Sundry Debtors	38.101
	Cash & Bank Balances	12.857
	Other Current Assets	0.000
	Loans & Advances	14.665
Total Current Assets		257.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.352
	Other Current Liabilities	6.530
	Provisions	0.000
Total Current Liabilities		48.882
Net Current Assets		208.518
MISCELLANEOUS EXPENSES		0.000
TOTAL		335.560

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1135.266	1056.323	1009.639
		Other Income	1.376	1.164	1.222
		TOTAL (A)	1136.642	1057.487	1010.861
Less	EXPENSES
		Cost of materials consumed	1115.921	869.331
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(90.381)	94.877
		Employee benefit expense	2.767	2.762
		Other expenses	69.760	54.649
		TOTAL (B)	1098.067	1021.619	972.690
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.575	35.868	38.171
Less	FINANCIAL EXPENSES (D)		17.393	17.604	20.247
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.182	18.264	17.924
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.643	9.423	9.123
	PROFIT BEFORE TAX (E-F) (G)		11.539	8.841	8.801
Less	TAX (H)		3.409	1.904	3.044
	PROFIT AFTER TAX (G-H) (I)		8.130	6.937	5.757
	Earnings Per Share (Rs.)		1.22	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.72	0.66	0.57
Net Profit Margin (PBT/Sales)	(%)	1.02	0.84	0.87
Return on Total Assets (PBT/Total Assets}	(%)	3.30	2.56	2.29
Return on Investment (ROI) (PBT/Networth)		0.08	0.06	0.06
Debt Equity Ratio (Total Debt/Networth)		0.84	1.09	1.32
Current Ratio (Current Asset/Current Liability)		1.43	1.44	5.27

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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
LONG-TERM BORROWINGS
Loans and advances from directors	19.294	28.533
Loans and advances from others	3.200	4.025
Total	22.494	32.558

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90061785	11/07/2013 *	299,300,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH JAWAHAR VYAPAR BHAWAN,  14TH FLOOR, 1 TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA	B83459859
2	90060391	26/04/1994	6,500,000.00	PUNJAB NATIONAL BANK	CLOCK TOWER, KARNAL, HARYANA, INDIA	-
3	90060247	10/05/1994 *	6,500,000.00	PUNJAB NATIONAL BANK	CLOCK TOWER BRANCH, KARNAL, HARYANA, INDIA	-

* Date of charge modification

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Plant and Equipment
• Furniture and Fixtures
• Vehicles
• Office Equipment

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.61.78
UK Pound	1	Rs.99.06
Euro	1	Rs.83.84

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.