MIRA INFORM REPORT

Report Date :

15.10.2013

IDENTIFICATION DETAILS

Name :	C.CZARNIKOW SUGAR (INDIA) PRIVATE LIMITED
Registered Office :	House No: 1-8-373/A, Chiran Fort Lane, Begumpet, Hyderabad - 500003, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.09.2004
Com. Reg. No.:	01-044179
Capital Investment / Paid-up Capital :	Rs. 58.146 Millions
CIN No.: [Company Identification No.]	U15424AP2004PTC044179
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Sugar.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 63000
Status :	Moderate
Payment Behaviour :	Slow and Delayed
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears some accumulated losses recorded by the company during 2012. There are no external borrowings. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow and delayed. The company can be considered for business dealings with great 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.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (EMPLOYEE PROVIDENT FUND) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. A Gupta
Designation :	Risk Management
Contact No.:	91-124-4301011
Date :	14.10.2013

LOCATIONS

Registered Office :	House No: 1-8-373/A, Chiran Fort Lane, Begumpet, Hyderabad - 500003, Andhra Pradesh, India
Tel. No.:	91-124-4301011
Fax No.:	Not Available
E-Mail :	anarang@czarnikow.com
Website :	http://www.czarnikow.com
Head Office :	3^rd Floor, JMD Regent Plaza, M.G. Road, Gurgaon – 122002, Delhi India
Tel. No.:	91-124-4301011
Fax No.:	91-124-4301020
Overseas Office :	Located at: · Dubai · Guangzhou · London (HQ) · Mexico City · Miami · Moscow · Nairobi · Point Lisas (Trinidad) · Sao Paulo · Singapore · Tel Aviv

DIRECTORS

As on: 28.09.2012

Name :

William James Rook

Designation :

Director

Address :

The Old Rectory, The Street Birdbrook, Halstead, UK CO94BW

Date of Birth/Age :

12.02.1967

Date of Appointment :

30.09.2011

DIN No.:

03413947

Name :

Mr. Anuj Vijay Kumar Narang

Designation :

Director

Address :

C 2/ 72, Goyal Intercity, Drive In RD, Thalej, Ahmedabad – 380054, Gujarat, India

Date of Birth/Age :

08.09.1971

Date of Appointment :

30.09.2011

DIN No.:

01686940

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	U74900AP2008PTC058600	CLEAN ENERGY INVESTMENTS INDIA PRIVATE LIMITED	Director	09/04/2008	09/04/2008	-	Strike off	NO
2	U15424AP2004PTC044179	C.CZARNIKOW SUGAR (INDIA) PRIVATE LIMITED	Director	30/09/2011	10/12/2010	-	Active	NO

Name :

Robin Cave

Designation :

Director

Address :

63 Royal Hill Greenwich UK SE810SE

Date of Birth/Age :

10.03.1964

Date of Appointment :

30.09.2011

DIN No.:

03414015

KEY EXECUTIVES

Name :	Mr. A Gupta
Designation :	Rick Management

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Czarnikow Group Limited, UK	5814558
C. Czarnikow Sugar Limited, UK	1
Total	5814559

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Sugar.

GENERAL INFORMATION

No. of Employees :	Information declined by the management.
Bankers :	Not Available

Banking Relations :	---
Financial Institution:	Rabobank International, 2/F, Forbes Building, Charanjit Rai Marg, Fort Mumbai 400001, Maharashtra, India
Auditors :
Name :	Italia and Associates Chartered Accountants
Address :	1-8-373/A, Chiranfortlane, Begumpet, Hyderabad-500003, Andhra Pradesh, India
PAN No.:	AAGFS7350F
Holding company :	C. Czarnikow Group 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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5814559	Equity Shares	Rs.10/- each	Rs.58.146 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	58.146	58.146
(b) Reserves & Surplus	(42.152)	(46.316)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	15.994	11.830
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	0.000	0.000
(c) Other current liabilities	3.215	2.329
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	3.215	2.329
TOTAL	19.209	14.159
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.561	0.745
(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	0.000	0.000
(c) Deferred tax assets (net)	0.174	0.000
(d) Long-term Loan and Advances	2.112	1.264
(e) Other Non-current assets	0.000	0.472
Total Non-Current Assets	2.847	2.481
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	7.734	4.243
(d) Cash and cash equivalents	8.353	6.934
(e) Short-term loans and advances	0.275	0.501
(f) Other current assets	0.000	0.000
Total Current Assets	16.362	11.678
TOTAL	19.209	14.159

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		58.146
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(48.660)
NETWORTH		9.486
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		9.486
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.789
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.482
	Cash & Bank Balances	9.823
	Other Current Assets	0.000
	Loans & Advances	2.279
Total Current Assets		12.584
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.369
	Other Current Liabilities	2.118
	Provisions	0.400
Total Current Liabilities		3.887
Net Current Assets		8.697
MISCELLANEOUS EXPENSES		0.000
TOTAL		9.486

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	34.747	26.230	24.915
		Other Income
		TOTAL (A)	34.747	26.230	24.915
Less	EXPENSES
		Office Expenses
		Administrative Expenses	30.396	23.546	22.064
		Advertising Expenses
		TOTAL (B)	30.396	23.546	22.064
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.351	2.684	2.851
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.351	2.684	(2.851)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.338	0.341	0.394
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		4.013	2.343	(3.245)
Less	TAX (H)		(0.151)	0.000	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		4.164	2.343	(3.245)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(46.316)	(48.659)	(45.414)
	BALANCE CARRIED TO THE B/S		(42.152)	(46.316)	(48.659)
	Earnings / (Loss) Per Share (Rs.)		0.72	0.40	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	11.98	8.93	(13.02)
Return on Total Assets (PBT/Total Assets}	(%)	21.08	16.55	(24.27)
Return on Investment (ROI) (PBT/Networth)		0.25	0.20	(0.34)
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		5.09	5.01	3.24

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	No
24]	Banking facility details	No
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	No

BACKGROUND:

Subject was incorporated on 15th September, 2004 with the main object of carrying on Cash and Carry wholesale trading in Sugar with its registered office in Secunderabad. The Company is a 99.99% subsidiary of Czarnikow Group Limited, United Kingdom (Formerly known as C. Czarnikow Sugar Limited) an international sugar merchant. The Company commenced its operations in August 2005, after obtaining approval from the Foreign Investment Promotion Board, Ministry of Finance, and Government of India.

FINANCING OF FUTURE OPERATIONS:

The Company has accumulated losses of Rs.42.152 Millions as of March 31, 2012, thereby partially eroding the net worth of the Company. However during the year the company has made a profit of Rs. 4.164 Millions. The Company is a 99.99% subsidiary of Czarnikow Group Limited, United Kingdom (the Parent Company, formerly known as C.Czarnikow Sugar Limited). The Company with the financial support of its Parent Company is confident of funding its operating and capital expenditure and to continue its operations as a going concern and realize its assets and discharge its liabilities in the normal course of business. Accordingly, these financial statements have been prepared on a going concern basis.

FUTURE PROSPECTS:

The Company has completed Seven years of its commercial operations after obtaining the approval from the Government of India for the foreign equity investment on June 01, 2005. With the buoyancy in the Indian sugar market, the company, in the near future sees a great potential which it expects to tap. The company based on the experience over the last six years, feels that it is in a position to capitalize on the market potential. Also, the company is coming back with the Sugar trading business in the coming financial year.

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10440905	15/07/2013	500,000,000.00	Rabobank International	2/F, Forbes Building, Charanjit Rai Marg,, Fort  Mumbai, Maharashtra -400001, INDIA	B81059073

* Date of charge modification

FIXED ASSETS

· Plant and equipment

· Furniture and fixtures

· Office equipment

· Computer equipments

AS PER WEBSITE DETAILS

PRESS RELEASE:

A CHANGING OUTLOOK CONFIRMED

07 October 2013

Sugar futures prices have rallied almost 200pts over the past month as the market has started to recognise that the downward trend in price is now at an end.

However, though our analysis points towards a much tighter balance sheet, opinions are still mixed around the market and today there is no clear consensus. In fact some of the noise in the market has continued to point towards the negatives for price, which we believe overlooks the underlying trends that point towards a more positive outlook for the market after three years of falling prices that have brought factory closures to many sugar industries around the world.

· Most of the increase in value in the last five years seems to have been transferred directly to the grower, which has left the milling sector today facing high costs and falling revenues.

· As production and consumption become more balanced prices cannot stay below production costs. We see the market as being in the midst of a corrective rally, which we expect to take the form of a slow grind higher.

· We have therefore been surprised by the strength of the initial move, which has taken  physical prices beyond buyers’ price targets and in the short term is drawing out further marginal selling - though interestingly at prices that are still below production costs.

· In this month’s Review we have decided to take a look at what has changed especially since the recent move has been once of the most significant that we have seen all year

“Sugar producers today continue to face a stressed financial environment and while a return to normal rates of return is still illusive the question of what is fair value remains.”

Toby Cohen, Czarnikow Director

A Greater Alignment of Production Costs

· Trends over the past two decades have resulted in a greater alignment of production costs around the world.

· Interestingly, performance risks are shifting in favour of OECD producers as fast growth economies grapple with the implications of what socioeconomic change means for their traditional agricultural models.

· In the shorter term, this is most apparent when we look at how costs have converged between OECD and non-OECD producers.

· With the increase in supply in the NAFTA market there has been a large decline in US sugar prices, which have brought values close to world market levels.

· Though the sugar programme prohibits the export of US sugar onto the world market the situation within Mexico is different.

· Mexican production has expanded in response to high prices and the opportunity to place sugars into the US, but the higher priced US market is becoming saturated.

· The need to generate cash has seen marginal tonnage directed towards the world market, which will reduce pressure within the NAFTA region.

· However, the most interesting development is the negotiations between the Mexican sugar industry and the soft drinks sector over shifting volume back in favour of sugar.

The Indian Trade Dynamic

· Since July low quality export volumes have risen as the collapse in the value of the INR has made Indian sugar competitive onto the world market.

· India was a net importer of sugar in 12/13 but this resulted in an increase in closing stocks, placing pressure on industry cash flow and bringing marginal tonnage to the world market.

· These sugars are difficult to place to consuming markets and we think it likely that India's expanding refining sector will look to source some of their feedstock internally this season.

· Though we believe that India will continue to import Brazilian raw sugar it is possible that demand will soften in the short term ahead of the start of the new season.

· However, with the milling sector under increasing financial pressure cane price negotiations are likely to be difficult, which could delay the start of crushing.

· Refineries in Competition

· 2013 has been a very good year for sugar consumers and sugar refiners who have benefited from strong demand and a high white sugar premium.

· With the return of northern hemisphere white sugar supply it appears as though these dynamics are now reversing as the white sugar premium has begun to trend lower.

· Though origin production of white sugar is at a disadvantage to destination refining in terms of being able to meet consumer requirements it has a cost advantage on an FOB basis.

· For this reason the rise in availability of origin production is depressing the white sugar premium as the primary outlet for these sugars is the futures market and reliance on the trade to source homes. 

· The continued expansion of the global refining sector is leading to greater competition between refineries for markets.

· Despite the recent strength in the white sugar premium not all refineries have increased throughput this season indicating that increased competition from new entrant is forcing some established market players to give up market share.

Functioning Futures

· The function of the futures market is to provide price discovery and to send the right signal to producers and consumers.

· Looking at the recent rally in this context it is clear that the market is reflecting the changing outlook for sugar.

· However, as the pace of change is perhaps more subtle than the size of the recent move it is possible that the market has got a little ahead of itself.

· Nevertheless the issue of value remains a challenge with the market moving closer to equilibrium.

· For producers, low returns continue to risk insolvency while for consumers the availability of sugar below production cost has helped to encourage demand.

“Though the sharp rally in futures prices has brought the market back to a level that is attracting marginal supply and is likely to slow off-take in the short term, it is hard to believe that current prices represent any sort of equilibrium value.”

Stephen Geldart, Senior Analyst

A Changing Outlook Confirmed

· Over the past month expectations have changed. While there is no clear consensus today the three year downtrend in sugar prices has ended and the market is seeking new direction. 

Toby Cohen, Czarnikow Director said “Sugar producers today continue to face a stressed financial environment and while a return to normal rates of return is still illusive the question of what is fair value remains.”

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.61.30
UK Pound	1	Rs.97.99
Euro	1	Rs.83.15

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH /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	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		27

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

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

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

RATING EXPLANATIONS

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

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

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