MIRA INFORM REPORT

Report Date :

16.10.2013

IDENTIFICATION DETAILS

Name :	ARKEMA CHEMICALS INDIA PRIVATE LIMITED (w.e.f.20.10.2011)
Formerly Known As :	CRAY VALLEY RESINS INDIA PRIVATE LIMITED
Registered Office :	Plot No.D-43 (1), Trans Thane Creek, M.I.D.C. Industrial Area, Shirvane Village, Navi Mumbai – 400076, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	31.01.1997
Com. Reg. No.:	11-105589
Capital Investment / Paid-up Capital :	Rs. 299.400 Millions
CIN No.: [Company Identification No.]	U24132MH1997PTC105589
PAN No.: [Permanent Account No.]	AAACC6482F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Seller of a wide range of Synthetic Resins.
No. of Employees :	Not Available

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 784000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appear some accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payment terms are reported to be slow. The company can be considered for business dealings with some 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.

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 :	Plot No.D-43 (1), Trans Thane Creek, M.I.D.C. Industrial Area, Shirvane Village, Navi Mumbai – 400076, Maharashtra, India
Tel. No.:	91-22-65137101/ 27670901/ 27616038
Fax No.:	91-22-27687998/ 27670901
E-Mail :	tr.raghuraman@crayvalley.com suresh.ramachandran@arkema.com roland.glotzer@arkema.com

DIRECTORS

AS ON 28.06.2013

Name :

Mr. Suresh Ramachandran

Designation :

Director

Address :

C-12, Fairlawn Society, Plot No.7, Sion Trombay Road, Chembur, Mumbai – 400071, Maharashtra, India

Date of Birth/Age :

26.05.1966

Date of Appointment :

08.04.2013

PAN No.:

AGTPS1151P

DIN No.:

00818595

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	U99999GJ1999PTC059384	ARCIL CATALYST PRIVATE LIMITED	Additional director	21/08/2006	21/08/2006	Active	NO
2	U24111TN1985PTC011641	ARKEMA PEROXIDES INDIA PRIVATE LIMITED	Additional director	24/05/2013	02/03/2007	Active	NO
3	U24132MH1997PTC105589	ARKEMA CHEMICALS INDIA PRIVATE LIMITED	Director	08/04/2013	22/09/2011	Active	NO

Name :

Mr. Roland Glotzer

Designation :

Managing Director

Address :

9 Ardmore Pk, #09-01 Ardmore Pk, Singapore 59955,Singapore

Date of Birth/Age :

15.07.1948

Date of Appointment :

08.04.2013

DIN No.:

05256753

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	U24132MH1997PTC105589	ARKEMA CHEMICALS INDIA PRIVATE LIMITED	Managing director	08/04/2013	20/04/2012	Active	NO

Name :

Mr. Dominique Gerard Namer

Designation :

Director

Address :

Royal Pavilion-Apt 1382, 688 Hua Shan, Lu, Shanghai, 200072 China

Date of Birth/Age :

19.01.1952

Date of Appointment :

26.06.2012

DIN No.:

01972656

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	U24111TN1985PTC011641	ARKEMA PEROXIDES INDIA PRIVATE LIMITED	Director	26/03/2008	06/12/2007	-	Active	NO
2	U99999GJ1999PTC059384	ARCIL CATALYST PRIVATE LIMITED	Director	08/04/2008	06/12/2007	01/07/2009	Active	NO
3	U21200MH1980PTC022545	NOBLE SYNTHETICS PRIVATE LIMITED	Additional director	01/07/2011	01/07/2011	30/01/2012	Active	NO
4	U24132MH1997PTC105589	ARKEMA CHEMICALS INDIA PRIVATE LIMITED	Director	26/06/2012	01/07/2011	-	Active	NO

Name :

Mr. Prashant Ramesh Sansare

Designation :

Director

Address :

B-1, 304, Hawares Green Park, Plot No. 15, Sector 22, Kamothe, Navi Mumbai – 410209, Maharashtra, India

Date of Birth/Age :

19.08.1974

Date of Appointment :

28.06.2013

DIN No.:

06591493

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	U24132MH1997PTC105589	ARKEMA CHEMICALS INDIA PRIVATE LIMITED	Director	28/06/2013	03/06/2013	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.06.2013

Names of Shareholders	No. of Shares
Arkema Asie S.A.S., France	59939998
Arkema France S.A., France	1
Total	59939999

AS ON 28.06.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of a wide range of Synthetic Resins.

PRODUCTION STATUS (AS ON 31.12.2011)

Particulars	Unit	Installed Capacity	Actual Production
Synthetic Resins [Solids]	MT	12148	*10,524
Synthetic Resins [with Solvents]	MT	--	**12,818

Notes:

*Includes production from sub-processors (solid output) 3249 MT.

**Includes production from sub-processors 5177 MT and excludes semi finished goods and production for captive consumption.

As per prevailing Industrial Licensing Policy, no Industrial License is required.

Installed capacity is as certified by the management and has not been verified by auditors, as it is a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

BNP Paribas, 2 Homji Street, Fort, Mumbai - 400001, Maharashtra, India

Facilities :

SECURED LOANS	31.12.2012 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital loans from banks	145.000	185.000
Total	145.000	185.000

Banking Relations :	--
Auditors :
Name :	SRBC and Company Chartered Accountants
Address :	4 / B, Krishnamai, Plot No 33-B, Sir Pochkhanwala Road, Worli, Mumbai – 400025, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	ABSFS4151K
Ultimate Holding company :	· Arkema France · Total S.A.
Holding company :	· Arkema Asie SAS · Cray Valley S.A.
Subsidiary company :	Noble Synthetics Private Limited [U21200MH1980PTC022545]
Fellow Subsidiary company :	· Cray Valley Resins (Malaysia) SDN BHD · Cray Valley Limited U.K · Sartomer Asia Limited · Arkema Peroxides India Private Limited [U24111TN1985PTC011641]

CAPITAL STRUCTURE

AS ON 28.06.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
60,000,000	Equity Shares	Rs. 10/- each	Rs. 600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
59,939,999	Equity Shares	Rs. 10/- each	Rs. 599.400 Millions

AS ON 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs. 10/- each	Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29,939,999	Equity Shares	Rs. 10/- each	Rs. 299.400 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	299.400	299.400
(b) Reserves & Surplus	(103.400)	(29.800)
(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)	196.000	269.600
(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	0.100	0.100
Total Non-current Liabilities (3)	0.100	0.100
(4) Current Liabilities
(a) Short term borrowings	325.000	330.000
(b) Trade payables	259.200	247.200
(c) Other current liabilities	4.200	11.900
(d) Short-term provisions	6.100	4.400
Total Current Liabilities (4)	594.500	593.500
TOTAL	790.600	863.200
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	161.000	177.800
(ii) Intangible Assets	0.200	0.500
(iii) Capital work-in-progress	5.200	0.200
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	13.500	13.500
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	5.900	6.400
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	185.800	198.400
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	148.800	178.600
(c) Trade receivables	340.800	376.700
(d) Cash and cash equivalents	17.500	13.200
(e) Short-term loans and advances	97.700	96.300
(f) Other current assets	0.000	0.000
Total Current Assets	604.800	664.800
TOTAL	790.600	863.200

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		299.400
2] Share Application Money		0.000
3] Reserves & Surplus		26.743
4] (Accumulated Losses)		0.000
NETWORTH		326.143
LOAN FUNDS
1] Secured Loans		280.000
2] Unsecured Loans		0.000
TOTAL BORROWING		280.000
DEFERRED TAX LIABILITIES		3.200
TOTAL		609.343
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		186.328
Capital work-in-progress		7.688
INVESTMENT		13.507
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	242.250
	Sundry Debtors	355.366
	Cash & Bank Balances	5.343
	Other Current Assets	0.000
	Loans & Advances	88.488
Total Current Assets		691.447
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	236.214
	Other Current Liabilities	47.225
	Provisions	6.188
Total Current Liabilities		289.627
Net Current Assets		401.820
MISCELLANEOUS EXPENSES		0.000
TOTAL		609.343

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		TOTAL (A)	1417.800	1548.400	1640.780
Less	EXPENSES
		TOTAL (B)	1433.500	1552.800	1575.400
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(15.700)	(4.400)	65.380
Less	FINANCIAL EXPENSES (D)		39.500	35.000	21.220
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(55.200)	(39.400)	44.160
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.400	20.300	18.930
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(73.600)	(59.700)	25.230
Less	TAX (H)		0.000	(3.200)	1.810
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(73.600)	(56.500)	23.420
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. value of Exports	96.400	114.660	136.236
	IMPORTS
		Raw Materials	NA	NA	567.486
	Earnings/ (Loss) Per Share (Rs.)		(2.46)	(1.88)	0.78

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	(5.19)	(3.65)	1.43
Return on Total Assets (PBT/Total Assets}	(%)	(9.53)	(7.03)	2.87
Return on Investment (ROI) (PBT/Networth)		(0.38)	(0.22)	0.08
Debt Equity Ratio (Total Debt/Networth)		1.66	1.22	0.86
Current Ratio (Current Asset/Current Liability)		1.02	1.12	2.39

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90146746	23/09/2011 *	160,000,000.00	SOCIETE GENERALE	MAKER CHAMBER 4 13TH FLOOR, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	B22066260
2	90148058	30/11/2006 *	110,000,000.00	BNP PARIBAS	62 HOMJI STREET, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.12.2012 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital loans from banks	180.000	145.000
Total	180.000	145.000

FINANCIAL PERFORMANCE

During the year, Sales at Rs.1417.800 million was lower by about 8.43% over the previous year sales amounting to Rs. 1548.400 million due to rationalization of products and the unfavourable market conditions. Further Due to competition and recessionary trend in the world market the export turnover of the Company declined by 15.95% to Rs. 96.400 million, as compared to previous year export turnover amounting to Rs. 114.700 million.

The Sales Volume decreased by 17% over 2012 owing to competition, Volatility of input costs and the decision made by the company to scale down low margin business mainly in South India. While the sales volume of Alkyds, Acrylics and polyamides decreased, the sales volume of oil free polyester improved over 2011 due to demand improvement.

The Unit margin improved by 16% over the previous year although overall margins decreased by 4% in value terms owing to volume loss in the current year. This is consistent with the strategy to focus on margin improvement and moving away from low margin business even at the cost of losing volumes.

The employee cost remained roughly same as last year. Other expenses include provision of about Rs 23.000 million towards differential premium payable to MIDC for transfer of the title of lease agreement in the name of the company.

The borrowing costs were higher on account of increase in average rate by interest over 1.3% in the current year over the previous year.

Due to these reasons, during the year, there was loss of Rs. 73.600 Millions of the Company as compared to loss of Rs. 56.500 Millions (previous year).

Due to unfavourable market conditions and stiff competition in the market, the Company was not able to achieve better results as was estimated. Similarly, the Company could not meet the expansion programme due to slow down of economy in India. The directors are confident of better results in the forthcoming year.

In view of decline in profit during the year and to strengthen reserves of the Company, the directors express their inability to recommend payment of any dividends in the year.

FINANCE

At the balance sheet date (31.12.2012) working capital demand loans stood at Rs.325.000 Millions as against Rs. 330.000 Millions as on 31.12.2011. However there was increase in unsecured working capital demand loan from 14.500 Millions to Rs.18.000 Millions.

There was decrease in overall borrowing by Rs.5.000 Million due to reduction in Working Capital requirements.

FUTURE PROSPECTS

The management has implemented business plan to restore and improve profitability while reinforcing it’s commitment to maintain and improve the safety in operations. The plan envisages strengthening customer relationship, optimizing product portfolio and mix, explore export opportunities vigorously and explore opportunities for new products drawing from the global expertise and R&D activities of the group. The management is confident that the actions taken by the company will help to revive the company and put it back on the track of growth in 2013.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

· Goodwill

· 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. 61.69
UK Pound	1	Rs. 98.59
Euro	1	Rs. 83.67

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	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	2
--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
DEFAULTERS
--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.