MIRA INFORM REPORT

Report Date :

14.10.2013

IDENTIFICATION DETAILS

Name :	SUNLUX TECHNOLOGIES PRIVATE LIMITED (w.e.f.15.11.2011)
Formerly Known As :	SUNLUX TECHNOLOGIES LIMITED (w.e.f.02.05.2000) SUNLUX ENGINEERING LIMITED (w.e.f.27.03.2000) SUNLUX ENGINEERING PRIVATE LIMITED
Registered Office :	# 158, 9^th Main, 6^th Sector, HSR Layout, Opposite Lawrence School, Bangalore – 560102, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	19.07.1988
Com. Reg. No.:	08-009290
Capital Investment / Paid-up Capital :	Rs. 16.613 Millions
CIN No.: [Company Identification No.]	U85110KA1988PTC009290
IEC No.:	0700015485
PAN No.: [Permanent Account No.]	AACCS5034K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter, Distributor and Importer of SCADA, Embedded Control System, Remote Crane Control System, Process Automation Systems, Robotic and Mechanical Control System, Computerized based data Acquisition system Field Gateway Unit.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears drastic dip in profit of the company in 2013. However, trade relations are reported to be fair. Business is active. Payment terms are reporter to be slow but correct. The company can be considered for business dealings with some cautions.

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	CRISIL
Rating	SE3A
Rating Explanation	Moderate performance capability and high financial strength.
Date	August 2012

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 PARTED BY

Name :	B. Gopinath Rao
Designation :	Vice President - Operation
Contact No.:	91-9448270253
Date :	14.10.2013

LOCATIONS

Registered Office/ Factory :	# 158, 9^th Main, 6^th Sector, HSR Layout, Opposite Lawrence School, Bangalore – 560102, Karnataka, India
Tel. No.:	91-80-65954374/ 25724545
Fax No.:	91-80-25720500
E-Mail :	info@sunluxtech.com mukesh@sunluxtech.com hrd@sunlux-india.com postmaster@sunlux-india.com support@sunlux-india.com sales@sunlux-india.com info@sunlux-india.com
Website :	http://www.sunlux-india.com
Area :	4200 Sq. ft
Location :	Rented
USA Offices :	· West Coast: 11772 Pine Brook Lane Cupertino CA95014,USA · East Coast: 5808 Fairview Woods Drive, Suite 100 Fairfax Station, VA 22039-1400

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Ramachandra Vasanth Kerur

Designation :

Director

Address :

# L78, 15^th Cross, 5^th Main, 6^m Sector, HSR Layout, Bangalore – 560102, Karnataka, India

Date of Birth/Age :

07.12.1952

Qualification :

Master of Engineering (Indl.Engg)

Date of Appointment :

19.07.1988

DIN No.:

01786811

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	U85110KA1988PTC009290	SUNLUX TECHNOLOGIES PRIVATE LIMITED	Director	19/07/1988	19/07/1988	Active	NO
2	U72900KA2011FTC059728	CREDATIV SOFTWARE (INDIA) PRIVATE LIMITED	Director	26/07/2011	26/07/2011	Active	NO

Name :

Mrs. Rashmi Ramachandra Kerur

Designation :

Director

Address :

# L78, 15^m Cross, 5^th Main, 6^th Sector, HSR Layout, Bangalore – 560102, Karnataka, India

Date of Birth/Age :

25.08.1958

Qualification :

Bachelor of Arts

Date of Appointment :

08.09.2010

DIN No.:

02934199

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	U85110KA1988PTC009290	SUNLUX TECHNOLOGIES PRIVATE LIMITED	Director	08/09/2010	22/05/2010	Active	NO

Name :

Mr. Ravi Subramanyam

Designation :

Director

Address :

# 5808, Fairview, Woods Drive, Fair Fax Station, VA 22039 Fair Fax, USA

Date of Birth/Age :

25.10.1954

Date of Appointment :

25.01.2007

DIN No.:

01614097

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	U85110KA1988PTC009290	SUNLUX TECHNOLOGIES PRIVATE LIMITED	Director	25/01/2007	25/01/2007	Active	NO
2	U72900KA2011FTC059728	CREDATIV SOFTWARE (INDIA) PRIVATE LIMITED	Director	26/07/2011	26/07/2011	Active	NO

KEY EXECUTIVES

Name :	B. Gopinath Rao
Designation :	Vice President – Operation

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	8.13
Directors or relatives of directors	37.76
Other top fifty shareholders	53.84
Others	0.27
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter, Distributor and Importer of SCADA, Embedded Control System, Remote Crane Control System, Process Automation Systems, Robotic and Mechanical Control System, Computerized based data Acquisition system Field Gateway Unit.

Products/ Services :

ITC Code No.	Product Descriptions
85249009 / 85370000	Development of Software and Hardware for Industrial Control System

Agencies Held :

· Rockwell Automation India Private Limited

· G.E-IPPL

· Honeywell Automation India Limited

Exports :

Products :

Protocol converters

Countries :

· U.A.E

· U.S

· Europe

Trade References :

· Cimac

· ABB

· Schneider

· Yokogawa BMTS

· Honeywell

Imports :

Products :

Systems and components

Countries :

· USA

· Taiwan

· Singapore

Trade References :

· Digikey

· Fernall

· Icop

· Redington Advantech

· IEI

Terms :

Selling :

Credit 30 Days

Purchasing :

Cash, Credit and Others [30 Days – 90 Days]

PRODUCTION STATUS (AS ON 31.03.2013)

Products	Installed Capacity	Actual Production
Protocol converter Projects and customized services	50 / month --	15/month Order based

GENERAL INFORMATION

Customers :

End Users, OEM’s and Others (DRDO Labs, Space organization, BARC and PSU’s)

· ABB

· Tata Honeywell

· Satyam

· Nestle

· TVS

· Tata

· Bhel

· IISC

· Central Power Research Institute

No. of Employees :

30 (Approximately)

Bankers :

· Canara Bank, RMV Extension Branch, No. 38, 5^th Cross, 8^th Main, Sadashivanagara. Bangalore – 560080, Karnataka, India

· Axis Bank Limited, White Field Branch, Bangalore – 560080, Karnataka, India

Facilities :

Fund / Non-Fund – Rs. 70.000 Millions [From Canara Bank]

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Overdraft	0.000	0.000
Term Loan	1.221	1.590
Vehicle Loans	0.783	0.803
SHORT TERM BORROWINGS
Overdraft	24.466	14.307
Total	26.471	16.700
Notes: Cash Credit from bank has been secured against hypothecation of stocks and book debts and personal guarantee of directors. Term loans from bank has been secured against hypothecation of Furniture and Computers and personal guarantee of directors. Vehicles loan has been secured against vehicles.

Banking Relations :	--
Auditors :
Name :	A. Rammohan and Company Chartered Accountants
Address :	#12/62, ‘Shanthi’. Reservoir Cross Road, Basavanagudi, Bangalore – 560004, Karnataka, India
Tel. No.:	91-80-26670535/ 47140023
E-Mail :	ramarinaya@yahoo.co.in
Income-tax PAN of auditor or auditor's firm :	AARCA8209J

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs. 10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1661280	Equity Shares	Rs. 10/- each	Rs. 16.613 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	16.613	16.613	16.613
(b) Reserves & Surplus	7.545	6.524	0.293
(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)	24.158	23.137	16.906
(3) Non-Current Liabilities
(a) long-term borrowings	2.004	2.393	0.714
(b) Deferred tax liabilities (Net)	0.351	0.351	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2.355	2.744	0.714
(4) Current Liabilities
(a) Short term borrowings	31.115	14.307	11.020
(b) Trade payables	8.208	6.897	4.613
(c) Other current liabilities	2.529	14.340	0.264
(d) Short-term provisions	0.608	4.922	4.061
Total Current Liabilities (4)	42.460	40.466	19.958
TOTAL	68.973	66.347	37.578
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4.674	5.813	5.281
(ii) Intangible Assets	1.846	2.428	2.439
(iii) Capital work-in-progress	4.490	0.000	0.000
(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	6.400	10.900	0.000
(e) Other Non-current assets	0.000	0.000	1.483
Total Non-Current Assets	17.410	19.141	9.203
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	18.686	34.396	17.651
(c) Trade receivables	24.219	1.855	0.717
(d) Cash and cash equivalents	8.658	10.955	1.591
(e) Short-term loans and advances	0.000	0.000	8.416
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	51.563	47.206	28.375
TOTAL	68.973	66.347	37.578

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Product Revenue	63.765	65.425	44.736
		Service Revenue	4.709	1.552	0.041
		Other Income	1.691	3.387	0.252
		TOTAL	70.165	70.364	45.029
Less	EXPENSES
		Manufacturing and Other Expenses	49.919	38.691	20.138
		Employee benefit Expenses	3.847	6.701	3.433
		Other Expenses	6.086	8.351	5.974
		TOTAL	59.852	53.743	29.545
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		10.313	16.621	15.484
Less	FINANCIAL EXPENSES		5.558	4.772	1.816
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		4.755	11.849	13.668
Less/ Add	DEPRECIATION/ AMORTISATION		2.138	2.347	1.512
	PROFIT BEFORE TAX		2.617	9.502	12.156
	PRIOR PERIOD EXPENSES		0.989	0.000	0.000
Less	TAX		0.607	3.271	2.364
	PROFIT AFTER TAX		1.021	6.231	9.792
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3.725	1.720	2.821
	IMPORTS
		Raw Materials	14.643	14.218	3.496
	Earnings Per Share (Rs.)		0.61	3.75	5.89

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.46	8.86	21.75
Net Profit Margin (PBT/Sales)	(%)	4.10	14.52	27.17
Return on Total Assets (PBT/Total Assets}	(%)	4.06	14.32	32.35
Return on Investment (ROI) (PBT/Networth)		0.11	0.41	0.72
Debt Equity Ratio (Total Debt/Networth)		1.37	0.72	0.69
Current Ratio (Current Asset/Current Liability)		1.21	1.17	1.42

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	Yes
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	No
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10260747	29/12/2010	1,289,000.00	CANARA BANK	RAJMAHAL VILAS EXTN. BRANCH, SADASHIVANAGAR, BANGALORE - 560080, KARNATAKA, INDIA	B02702728
2	90193461	08/05/2013 *	78,289,000.00	CANARA BANK	R.M.V. EXTENSION BRANCH, 38, 5TH CROSS, 8TH MAIN, R.M.V. EXTN, SADASHIVANAGAR, BANGALORE - 560080, KARNATAKA, INDIA	B74678756

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Unsecured Loan from Director	6.649	0.000
Total	6.649	0.000

Note:

The registered office of the company has been shifted from No. 99, Jakkasandra Extension, Off Sarjapur Road, Jakkasandra Industrial Area, Koramangala, Bangalore – 560034, Karnataka, India to the present w.e.f.01.02.2011

FINANCIAL RESULTS

The Company has continued its positive growth. During the year, the company recorded a significant increase in Turnover which is 70.165 Millions as compare to previous year turnover of Rs. 70.179 Millions. However, due to delays in making decisions by defense sector and Govt Departments and adverse market scenario and increase in operating expenses, net profit before tax has decreased to Rs. 2.617 as compared to previous year turnover of Rs. 9.501. For constant positive growth, adequate steps have been taken to improve performance and reduce cost during the current year. It is expected that the productivity and profitability of the company will have considerably positive impact in the coming years. This has impact on the business of our company also. Getting -right kind of experienced people at right price is also a big challenge.

OPERATIONS

During the year, the management has focused on identifying new business opportunities with their core strength in Industrial and Building Automation services and products. They are awaiting the channel partnerships with Loytec Austria and Rockwell Automation India to enhance their services in the coming year.

After having identified Defense as one of their focus area they have been able to create a good pipe line of enquires for the financial year. They have also strengthened their sales team with experienced persons to aggressively market their services and products. There has been considerable delay in ISRO project sue to their internal decision making process to conduct factory acceptance tests for the project awarded to us. The Building automation products have been well accepted by different Building Management solution providers like Trane, Johnson controls, Godrej etc. Company has been successfully marketing the product developed as outcome of their projects in the previous year. The major system integrators are using their Protocol converter products in New Dubai Metro, Malls in Abu Dhabi and elevator control etc. As they had number of enquiries for Rugged Uninterrupted Power supply they have developed and this and is under qualification tests to be put in Market. This has very good potential. They have already have been approached by Indian Navy, BHEL, BEL and ECIL. The company has been rendering system integration services to key companies who are defense vendors.

After having established Middle East market they are proposing to extend their market to other with local distributors for the financial year and also add Total solution for Building

Management systems like Fire Alarm, CCTV surveillance, Access control, emergency and Lighting.

TRADE REFERENCES

· Honeywell Automation India Limited

#53, 54, 55 and 56, Hadapsar Industrial Estate, Hadapsar, Pune – 411013, Maharashtra, India

Mr. Vaibhav K Bhende

Tel. No.: 91-22-67650644

· Rockwell Automation India Private Limited

#131, Functional Industrial Estate, Patparaganj New Delhi – 110092, India

Ms. Meenu Singhal / Kultaj Khanna

Ph No.: 91-120-4671111

· Ingersoll Rand International (India) Limited

Plot No. 35, KIADB Industrial Area, Bidadi, Bangalore – 562109, Karnataka, India

Mr. Srinivasa Udupa

FIXED ASSETS:

· Plant and Equipments

· Furniture and Fixture

· Office Equipments

· Vehicles

· Computer Software

·

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 :

BVA

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	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.