MIRA INFORM REPORT

Report Date :

17.10.2013

IDENTIFICATION DETAILS

Name :	PALTECH COOLING TOWERS AND EQUIPMENTS LIMITED
Registered Office :	Plot No. 26 and 26A, Roz Ka Meo, Industrial Area, Phase-1, Sohna – 122103, Haryana
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.05.1994
Com. Reg. No.:	05-038579
Capital Investment / Paid-up Capital :	Rs. 23.147 Millions
CIN No.: [Company Identification No.]	U74899HR1994PLC038579
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Cooling Tower
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 470000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company has seen an increase in its sales turnover during 2012. The ratings also take into consideration the subject large working capital requirements and small scale of operations in the competitive cooling tower industry. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. The company can be considered normal for business dealing 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	CRISIL
Rating	Long Terms Rating = BB+ (Suspended)
Rating Explanation	Moderate risk of default
Date	30.03.2013

Rating Agency Name	CRISIL
Rating	Short Terms Rating = A4+ (Suspended)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	30.03.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY

Name :	Ms. Panky
Designation :	Account Deparment
Contact No.:	91-124-4499700
Date :	16.10.2013

LOCATIONS

Registered Office / Factory :	Plot No. 26 and 26A, Roz Ka Meo, Industrial Area, Phase-1, Sohna – 122103, Haryana, India
Tel. No.:	91-124-2362961 / 2363139
Fax No.:	Not Available
E-Mail :	admin.nva@gmail.com account@paltec.net.in
Website :	http://www.paltech.in
Location :	Owned
Head Office :	B-604, Sushant Lok, Phase-1, Gurgaon - 122002, Haryana, India
Tel. No.:	91-124-4499700
Fax No.:	91-124-4222466
E-Mail :	paltech@paltech.net.in
Branch Office:	Located At · Mumbai · Kolkata · Chennai · Vadodara · Ludhiana · Haridwar

DIRECTORS

As on 29.09.2012

Name :

Mr. Hari Pal Yadav

Designation :

Managing Director

Address :

B-604, Sushant Lok, Phase – I, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

12.05.1962

Date of Appointment :

01.07.2013

DIN No.:

00126862

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	U74899DL1989PTC034955	PALTECH COOLING TOWERS PVT LTD	Director	07-02-89	07-02-89	-	Active	NO
2	U74899DL1993PTC051923	PALTECH HOTEL PRIVATE LIMITED	Director	01-02-93	01-02-93	-	Active	NO
3	U74899HR1994PLC038579	PALTECH COOLING TOWERS AND EQUIPMENTS LIMITED	Managing director	01-07-13	06-05-94	-	Active	NO
4	U92490HR2011PTC043469	KARISHMA MEDIA CREATIONS PRIVATE LIMITED	Director	22-07-11	22-07-11	-	Active	NO
5	U52100HR2011PTC043712	SEA HAWK SHOPPING PRIVATE LIMITED	Director	24-08-11	24-08-11	-	Active	NO

Name :

Mr. Sanjiv Bansal

Designation :

Whole-Time Director

Address :

C-6/A-2, IIT Chmpus, New Delhi – 110016, India

Date of Birth/Age :

22.10.1963

Date of Appointment :

01.01.2012

DIN No.:

00145636

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	U74899DL1993PTC054188	A.H. ENGINEERS PRIVATE LIMITED	Director	01-09-97	01-09-97	-	Active	NO
2	U74899HR1994PLC038579	PALTECH COOLING TOWERS AND EQUIPMENTS LIMITED	Whole-time director	01-01-12	10-05-03	-	Active	NO

Name :

Mrs. Manju Yadav

Designation :

Whole-Time Director

Address :

B-604, Sushant Lok, Phase – I, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

04.08.1965

Date of Appointment :

01.07.2013

DIN No.:

00148875

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	U74899DL1989PTC034955	PALTECH COOLING TOWERS PRIVATE LIMITED	Director	07-02-89	07-02-89	-	Active	NO
2	U74899DL1993PTC051923	PALTECH HOTEL PRIVATE LIMITED	Director	01-02-93	01-02-93	-	Active	NO
3	U74899HR1994PLC038579	PALTECH COOLING TOWERS AND EQUIPMENTS LIMITED	Whole-time director	01-07-13	06-05-94	-	Active	NO
4	U92490HR2011PTC043469	KARISHMA MEDIA CREATIONS PRIVATE LIMITED	Director	22-07-11	22-07-11	-	Active	NO
5	U52100HR2011PTC043712	SEA HAWK SHOPPING PRIVATE LIMITED	Director	24-08-11	24-08-11	-	Active	NO

Name :

Mr. Vijay Yadav

Designation :

Whole-Time Director

Address :

GI-887, Sarojini, Nagar, New Delhi – 110023, India

Date of Birth/Age :

02.08.1975

Date of Appointment :

01.01.2012

DIN No.:

01254494

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	U74899HR1994PLC038579	PALTECH COOLING TOWERS AND EQUIPMENTS LIMITED	Whole-time director	01-01-12	10-05-03	-	Active	NO
2	U29191DL2004PTC128897	ANTRUSION THERMAL PRIVATE LIMITED	Director	09-11-04	09-11-04	-	Strike off	NO

KEY EXECUTIVES

Name :	Ms. Panky
Designation :	Account Deparment

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Hari Pal Yadav	1419590
Manju Yadav	408600
Sanjeev Bansal	5000
Siddharth Yadav	218500
Paltech Cooling Towers Private Limited, India	139000
Paltech Hotels Private Limited, India	54000
Indomonex Private Limited, India	70000
Total	2314690

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	11.36
Directors or relatives of Directors	88.64
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Industrial Cooling Tower
Products :	· Cooling Towers · Job Work · Chilling Plants
Exports :
Products :	Finished Goods
Countries :	· Sudan · Israel
Terms :
Selling :	L/C / Credit
Purchasing :	L/C / Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

200 (Approximately)

Bankers :

· State Bank of India, Commercial Branch, 6th Floor, Plam Court Building, Near MDI, Gurgaon - 121001, Haryana, India

Tel. No.: 91-124-2223725

· Indian Bank, M.I.A, Bad Form, New Delhi - 110016, Delhi, India

· State Bank of India (MID Corporate Loan Administration Unit), 2nd Floor, Chandni Chowk, Delhi - 110006, Delhi, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Form State Bank of India Corporate Loan	6.970	0.000
HDFC Cat Loan	0.337	0.877
Electronics Finance Limited	3.113	0.000
Electronics Finance Limited II	5.102	0.000
ICICI Bank Car Loan - 0659	0.137	0.000
ICICI Bank Car Loan - 4751	0.144	0.000
Short Term Borrowing
Cash Credit with SBI	78.542	52.875
Cash Credit project with SBI	10.951	0.000
Stand by Line of Credit	20.000	20.000
Total	125.296	73.752

Banking Relations :	---
Auditors :
Name :	VSD and Associates Chartered Accountants
Address :	E-145, Basement, Kalkaji, New Delhi – 110019, India
Tel. No.:	91-11-41329605
PAN No.:	AAEFV5670P
Related Parties :	· Anutrax Incorporation · YAA Incorporation

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2314690	Equity Shares	Rs.10/- each	Rs.23.147 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	23.147	19.147
(b) Reserves & Surplus	96.024	67.327
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	20.000
Total Shareholders’ Funds (1) + (2)	119.171	106.474
(3) Non-Current Liabilities
(a) long-term borrowings	48.970	15.877
(b) Deferred tax liabilities (Net)	5.541	4.333
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.823	1.301
Total Non-current Liabilities (3)	56.334	21.511
(4) Current Liabilities
(a) Short term borrowings	109.493	72.875
(b) Trade payables	71.298	52.961
(c) Other current liabilities	64.927	30.042
(d) Short-term provisions	1.278	1.299
Total Current Liabilities (4)	246.996	157.177
TOTAL	422.501	285.162
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	126.379	91.116
(ii) Intangible Assets	1.800	2.000
(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)	0.000	0.000
(d) Long-term Loan and Advances	7.856	1.616
(e) Other Non-current assets	1.383	2.281
Total Non-Current Assets	137.418	97.013
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	142.073	70.647
(c) Trade receivables	86.440	81.825
(d) Cash and cash equivalents	20.525	15.942
(e) Short-term loans and advances	36.045	19.735
(f) Other current assets	0.000	0.000
Total Current Assets	285.083	188.149
TOTAL	422.501	285.162

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		19.147
2] Share Application Money		0.000
3] Reserves & Surplus		55.833
4] (Accumulated Losses)		0.000
NETWORTH		74.980
LOAN FUNDS
1] Secured Loans		46.622
2] Unsecured Loans		3.562
TOTAL BORROWING		50.184
DEFERRED TAX LIABILITIES		3.874
TOTAL		129.038
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.054
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.337
	Sundry Debtors	83.284
	Cash & Bank Balances	11.454
	Other Current Assets	0.000
	Loans & Advances	12.698
Total Current Assets		148.773
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.326
	Other Current Liabilities	25.154
	Provisions	5.309
Total Current Liabilities		63.789
Net Current Assets		84.984
MISCELLANEOUS EXPENSES		0.000
TOTAL		129.038

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	325.772	290.938	253.181
		Other Income	2.915	1.324	0.754
		TOTAL (A)	328.687	292.262	253.935
Less	EXPENSES
		Cost of Raw materials and Consumables	220.681	183.266
		Increase/ (Decrease) in Inventory	(40.006)	1.863	227.062
		Employees benefits Expenses	34.807	24.140
		Others Expenses	73.640	51.694
		TOTAL (B)	289.122	260.963	227.062
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		39.565	31.299	26.873
Less	FINANCIAL EXPENSES (D)		5.376	3.263	10.573
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.189	28.036	16.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.524	10.531	2.871
	PROFIT BEFORE TAX (E-F) (G)		18.665	17.505	13.429
Less	TAX (H)		5.967	6.011	4.642
	PROFIT AFTER TAX (G-H) (I)		12.698	11.494	8.787
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		53.447	41.953	33.166
	BALANCE CARRIED TO THE B/S		66.145	53.447	41.953
	EARNINGS IN FOREIGN CURRENCY		0.680	29.294
	Earnings Per Share (Rs.)		5.49	5.71	4.59

Particulars	31.03.2013
Sales Turnover (Approximately)	380.000

The above information has been parted by Ms. Pinky

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.86	3.93	3.46
Net Profit Margin (PBT/Sales)	(%)	5.73	6.02	5.30
Return on Total Assets (PBT/Total Assets}	(%)	4.42	6.14	6.96
Return on Investment (ROI) (PBT/Networth)		0.16	0.16	0.18
Debt Equity Ratio (Total Debt /Networth)		1.33	0.83	0.67
Current Ratio (Current Asset/Current Liability)		1.15	1.20	2.33

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	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	Yes
17]	Major suppliers	No
18]	Major customers	No
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

YEAR IN RETROSPECT

During the year, the Company continue to grow and was able to increase both its revenue from operation from Rs. 290.938 Millions (Previous Year) to Rs. 325.772 Millions (Current year) and profit after tax Rs. 11.494 Millions (Previous Year) to Rs. 12.698 Millions (Current year).

CONTINGENT LIABILITIES

Rs. In Million

a) Contingent Liabilities not provided for	31.03.2012	31.03.2011
Bank Guarantees	92.721	31.527
Margin Money against Bank Guarantee	13.908	16.664

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
From Director	22.117	15.000
From Others	11.050	0.000
Total	33.167	15.000

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10340176	25/01/2012	4,274,190.00	ELECTRONICA FINANCE LIMITED	128/A, PLOT NO.3, KAILASHCHANDRA APPARTMENTS, PAUD ROAD, KOTHRUD, PUNE, MAHARASHTRA - 411038, INDIA	B34126870
2	10335373	25/01/2012	6,513,310.00	ELECTRONICA FINANCE LIMITED	128/A, PLOT NO.3, KAILASHCHANDRA APPARTMENTS, PAUD ROAD, KOTHRUD, PUNE, MAHARASHTRA - 411038, INDIA	B32038432
3	10311908	09/03/2012 *	148,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 6TH FLOOR, PLAM COURT BUILDING, NEAR MDI, GURGAON, HARYANA - 121001, INDIA	B36360212
4	10045405	09/03/2012 *	190,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 6TH FLOOR, PLAM COURT BUILDING, NEAR MDI, GURGAON, HARYANA - 121001, INDIA	B36360741
5	90057830	18/05/2006 *	11,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 6TH FLOOR, PLAM COURT BUILDING, NEAR MDI, GURGAON, HARYANA - 121001, INDIA	-

* Date of charge modification

FIXED ASSETS

· Plant

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicle

· Computer

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

Information Gathered by :	PLK
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	4
--RESERVES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.