MIRA INFORM REPORT

Report Date :

14.10.2013

IDENTIFICATION DETAILS

Name :	PREET MACHINES LIMITED (w.e.f. 28.02.2008)
Formerly Known As :	PREET MACHINES PRIVATE LIMITED
Registered Office :	64, Pushpanjali, Delhi – 110092
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.01.2001
Com. Reg. No.:	55-109126
Capital Investment / Paid-up Capital :	Rs. 43.432 Millions
CIN No.: [Company Identification No.]	U74899DL2001PLC109126
TAN No.: [Tax Deduction & Collection Account No.]	DELP14624B
PAN No.: [Permanent Account No.]	AADCP4281A
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of Rolling Mill Machinery.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 990000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Sales and profit of the company has increased during the financial year 2012. Trade relations are fair. Business is active. Payments are usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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	Fund based : “BB” (Suspended)
Rating Explanation	Inadequate credit quality and high credit risk.
Date	December, 2011

Reason for suspension: There is insufficient information from company.

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 :	64, Pushpanjali, Delhi – 110092, India
Tel. No.:	Not Available
Mobile No.:	91-9818088988 (Mr. Gurmeet Singh) 91-9810539399 (Mr. Preet Singh)
Fax No.:	Not Available
E-Mail :	preet@preetgroup.com info@preetgroup.com mk_arora@yahoo.com
Website :	http://www.preetgroup.com/
Area :	3000 Sq. ft.
Location :	Owned
Factory :	D:14 & D:15 & D:8 & D:9 & D:10 & D:11 & D:23 & E:8. Sector: A-3, Tronica City Industrial Area, District Loni, Ghaziabad - 201102, India
Tel. No.:	91-120-2696697 / 2696698
Fax No.:	91-120-2696701
Area :	25000 Sq. ft.
Location :	Owned
US Office:	2, Naomi Ct. Melville, NY 11747 USA
Tel. No.:	+1-646-279-5903

DIRECTORS

As on 22.09.2012

Name :

Mr. Gurmeet Singh Chauhan

Designation :

Director

Address :

64, Savita Vihar, Delhi – 110092, India

Date of Birth/Age :

09.04.1977

Qualification :

Under Graduate

Date of Appointment :

01.04.2008

PAN No. :

ADHPC7852L

DIN No. :

00479805

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	U74899DL2001PLC109126	PREET MACHINES LIMITED	Whole-time director	01/04/2008	09/01/2001	-	Active	NO
2	U27104DL2006PTC147493	SANJOG TECHNOLOGIES PRIVATE LIMITED	Director	14/03/2006	14/03/2006	-	Amalgamated	NO

Name :

Mr. Preet Singh Chauhan

Designation :

Managing Director

Address :

64, Savita Vihar, Delhi – 110092, India

Date of Birth/Age :

09.01.1976

Qualification :

Under Graduate

Date of Appointment :

01.04.2008

PAN No. :

ADGPL5355B

DIN No. :

00479841

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	U74899DL2001PLC109126	PREET MACHINES LIMITED	Managing director	01/04/2008	09/01/2001	-	Active	NO
2	U27104DL2006PTC147493	SANJOG TECHNOLOGIES PRIVATE LIMITED	Director	14/03/2006	14/03/2006	-	Amalgamated	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2012

Names of Equity Shareholders	No. of Shares
S. Preet Singh S. Kuldeep Singh	618000
S. Gurmeet Singh S. Kuldeep Singh	797700
S. Kuldeep Singh S. Harbhajan Singh	247700
Kawaljeet Kaur S. Kuldeep Singh	210500
Keerat Kaur	91000
Gurjeet Kaur	210500
S. Gurmeet Singh (HUF)	50000
S. Preet Singh (HUF)	145000
Virender Kumar	15200
Virender Kumar (HUF)	13450
Ram Lubhaya	15500
Ram Lubhaya (HUF)	16800
Supan Finance Private Limited, India	7500
Lyca Industries Limited, India	5500
Bhanu Securities Private Limited, India	5000
Swift Octofoam Private Limited, India	5000
S.M.Wire Industries Private Limited, India	5000
Ingita Financial Services Limited, India	5000
Macro Data Studio Private Limited, India	381300
Thirdwave Agency Private Limited, India	977500
Total	3823150

Names of Preference Shareholders	No. of Shares
Macro Data Studio Private Limited, India	520000
Total	520000

As on 22.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	43.91
Directors or relatives of Directors	56.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Rolling Mill Machinery.

GENERAL INFORMATION

Customers :

· Mid India Power and Steel Limited

· Top Worth Steels (Private) Limited

· CG Ispat (Private) Limited

· Mahamaya Strips Limited

· SAL Steels Limited

· Shah Alloys Limited

· Juhi Steels Limited

· RKS Alloys Limited

· GEE Ispat (Private) Limited

· Jai Laxmi Steel and Alloys (Private) Limited

· Hans Ispat Limited

No. of Employees :

Not Available

Bankers :

Punjab and Sind Bank, Zonal Office-I, Sidhartha Enclave, Ashram Chowk, New Delhi - 110014, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	3.164	8.464
SHORT TERM BORROWINGS
Rupee term loans from banks	3.152	0.000
Working capital loans from banks	94.717	86.711
Total	101.033	95.175

Banking Relations :	--
Auditors :
Name :	M K Arora and Company Chartered Accountant
Address :	57, F F Mall Road, Kingsway Camp, G.T.B. Nagar, Delhi – 110009, India
Tel. No. :	91-11-27601057 / 27601059
Income-tax PAN of auditor or auditor's firm :	AAGFM1071R
Other Related Party :	Macro Data Studio Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs. 60.000 Millions
3000000	Preference Shares	Rs.10/- each	Rs. 30.000 Millions
	Total		Rs. 90.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3823150	Equity Shares	Rs.10/- each	Rs. 38.232 Millions
520000	Preference Shares	Rs.10/- each	Rs. 5.200 Millions
	Total		Rs. 43.432 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	43.432	42.173
(b) Reserves & Surplus	205.311	123.588
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	2.500
Total Shareholders’ Funds (1) + (2)	248.743	168.261
(3) Non-Current Liabilities
(a) long-term borrowings	18.440	30.516
(b) Deferred tax liabilities (Net)	1.593	1.792
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	20.033	32.308
(4) Current Liabilities
(a) Short term borrowings	97.869	86.711
(b) Trade payables	211.853	48.771
(c) Other current liabilities	322.766	326.633
(d) Short-term provisions	10.579	2.418
Total Current Liabilities (4)	643.067	464.533
TOTAL	911.843	665.102
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	163.749	144.088
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	7.858	0.016
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.805	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	172.412	144.104
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	438.827	265.483
(c) Trade receivables	54.492	4.875
(d) Cash and cash equivalents	75.484	84.931
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	170.628	165.709
Total Current Assets	739.431	520.998
TOTAL	911.843	665.102

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		42.173
2] Share Application Money		0.000
3] Reserves & Surplus		115.784
4] (Accumulated Losses)		0.000
NETWORTH		157.957
LOAN FUNDS
1] Secured Loans		105.351
2] Unsecured Loans		23.336
TOTAL BORROWING		128.687
DEFERRED TAX LIABILITIES		3.954
TOTAL		290.598
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		139.808
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	251.997
	Goods in Transit	0.000
	Sundry Debtors	16.471
	Cash & Bank Balances	8.025
	Other Current Assets	73.928
	Loans & Advances	13.835
Total Current Assets		364.256
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.124
	Other Current Liabilities	174.721
	Provisions	2.621
Total Current Liabilities		213.466
Net Current Assets		150.790
MISCELLANEOUS EXPENSES		0.000
TOTAL		290.598

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1340.169	886.979	628.188
		Other Income	4.387	2.304	1.130
		TOTAL (A)	1344.556	889.283	629.318
Less	EXPENSES
		Purchases of stock-in-trade	1280.114	688.539
		Employee benefit expense	9.227	7.393
		Other expenses	191.291	131.995
		Extraordinary items	0.541	0.637
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(199.210)	19.479
		TOTAL (B)	1281.963	848.043	603.182
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		62.593	41.240	26.136
Less	FINANCIAL EXPENSES (D)		11.939	14.950	0.071
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		50.654	26.290	26.065
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.163	18.229	17.568
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		29.491	8.061	8.497
Less	TAX (H)		10.418	0.256	5.315
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		19.073	7.805	3.182
	EARNINGS IN FOREIGN CURRENCY		74.768	NA	NA
	Earnings / (Loss) Per Share (Rs.)		4.39	1.85	0.75

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.42	0.88	0.51
Net Profit Margin (PBT/Sales)	(%)	2.20	0.91	1.35
Return on Total Assets (PBT/Total Assets}	(%)	3.27	1.21	1.28
Return on Investment (ROI) (PBT/Networth)		0.12	0.05	0.05
Debt Equity Ratio (Total Debt/Networth)		0.47	0.70	0.81
Current Ratio (Current Asset/Current Liability)		1.15	1.12	1.12

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	Yes
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	Yes
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10373612	27/08/2012	225,000,000.00	PUNJAB AND SIND BANK	ZONAL OFFICE-I, SIDHARTHA ENCLAVE, ASHRAM CHOWK, NEW DELHI - 110014, INDIA	B56865215
2	10373393	02/08/2012	125,000,000.00	PUNJAB AND SIND BANK	ZONAL OFFICE-I, SIDHARTHA ENCLAVE, ASHRAM CHOWK, NEW DELHI - 110014, INDIA	B56748890
3	10373395	02/08/2012	20,000,000.00	PUNJAB AND SIND BANK	ZONAL OFFICE-I, SIDHARTHA ENCLAVE, ASHRAM CHOWK, NEW DELHI - 110014, INDIA	B56750441
4	10373398	02/08/2012	80,000,000.00	PUNJAB AND SIND BANK	ZONAL OFFICE-I, SIDHARTHA ENCLAVE, ASHRAM CHOWK, NEW DELHI - 110014, INDIA	B56751878
5	10141913	27/01/2009	80,000,000.00	PUNJAB AND SIND BANK	BRANCH ANAND VIHAR, DELHI - 110092, INDIA	A56438922
6	10072590	24/01/2009 *	100,000,000.00	PUNJAB AND SIND BANK	BRANCH ANAND VIHAR, DELHI - 110092, INDIA	A55737704

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Loans and advances from directors	15.276	22.052
Total	15.276	22.052

NOTE

The Registered Office of the company has been shifted from 27, Savita Vihar, Delhi – 110092, India to the present address w.e.f. 21.12.2009

YEAR IN RETROSPECT

The Directors are putting in their best efforts to improve the performance of the Company.

Material Changes etc.

No material changes and commitments affecting the financial position of the Company have occurred between the end of the financial year of the Company-31 st March, 2012 and the date of this Report.

AMALGMATION OF ONE COMPANY WITH THE CCOMPANY

Sanjog Technologies Private Limited {hereinafter referred to as the Transferor Companies} haves since been amalgamated with the Company as per Scheme approved by Hon’ble Delhi High Court vide its order dated 19 th October 2011 in CP(s) No. 194/2011, with an appointed date as 1 st April 2010.

Since the Scheme has been approved on 19 th October, 2011 with retrospective effect from 01.04.2010, its effect has been taken in financial statements i.e. Balance Sheet, Profit and Loss Account and Schedules attached thereto. The certified copy of order is in the process of being obtained and filed with the Registrar of Companies as per Section 394(3) of the Companies Act, 1956.

The Assets, Liabilities and Reserves of the Transferor Companies have been recorded by the Company under the Pooling of Interest Method as per AS 14.

Authorised Capital

Consequent upon amalgamation of Transferor Companies with the Company, the Authorised Share Capital of the Company has been increased from Rs. 7,00,00,000 to Rs. 90.000. Issued, Subscribed and Paid up Capital :

Consequent upon the Scheme of amalgamation taking effect , the allotment of shares proposed to be made by the Company to the Shareholders of the Transferor Companies is as follows :

Name of the Company	No. of Equity Shares of Rs. 10/- of the Company to be issued pursuant to scheme of amalgamation.		Share Exchange Ratio
njog Technologies Private Limited	98,650	1:10

Amalgamation Reserve created pursuant to Scheme of Amalgamation :

(Rs. In Millions)

Particulars	Share capital	Share capital alloted by the company	Reserve created as a result of amalgamation (amalgamation reserve)
Sanjog Technologies Private Limited (Ratio 1 : 10)	9.865	986500	8.879
Amalgamation Reserve			8.879

Consequent upon the Scheme of Amalgamation 492840 equity shares hold by Sanjog Technologies Private Limited (Hereinafter referred as amalgamating company) of Preet Machines Limited (hereinafter referred as amalgamated company) have been cancelled.

That compliance to be made the effect of the scheme of amalgamation has been given as approved by Hon?ble High Court of Delhi and cross share holding has been cancelled.

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Other 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.61.16
UK Pound	1	Rs.97.77
Euro	1	Rs.82.78

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	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		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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