MIRA INFORM REPORT

Report Date :

17.10.2013

IDENTIFICATION DETAILS

Name :	WELSPUN ENERGY LIMITED (w.e.f. 08.03.2008)
Formerly Known As :	WELSPUN ENERGY PRIVATE LIMITED (w.e.f.28.07.2006) PRANAM TRADELINK PRIVATE LIMITED
Registered Office :	Welspun City, P. O. Versamedi, Taluka Anjar, Kutch – 370110, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.08.2002
Com. Reg. No.:	04-041136
Capital Investment / Paid-up Capital :	Rs.673.666 Millions
CIN No.: [Company Identification No.]	U51909GJ2002PLC041136
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	They are into power Generations (Solar and Thermal Power)
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 14120000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of Welspun Corporation Limited. It is an established company having satisfactory track record. The company has recorded better growth in sales turnover and profitability during the year 2012. The rating taken in to consideration the unconditional and irrevocable letter of credit and corporate guarantee given by its parent company Welspun Corporation Limited. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities A+
Rating Explanation	Adequate credit quality and average credit risk.
Date	September 27, 2013

Rating Agency Name	CARE
Rating	Long term bank facilities (Non funded based) BBB-
Rating Explanation	Inadequate credit quality and high credit risk.
Date	September 27, 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 DENIED

MANAGEMENT NON – COOPERATIVE (91-11-66034600)

LOCATIONS

Registered Office / Works :	Welspun City, P. O. Versamedi, Taluka Anjar, Kutch – 370110, Gujarat, India
Tel. No.:	91-2836-279051/ 2/ 5/ 6
Mobile No.:	91-9892703663 (Mr. Satish Sharma)
Fax No.:	91-2836-279051/ 050
E-Mail :	secretariallegal@welspun.com mandar_ranade@welspun.com priya_pakhare@welspun.com rashmi_mamtura@welspun.com welcity@yahoo.co.in jigar_shah@welspun.com pratiksha_panchal@welspun.com
Website :	http://www.welspunenergy.com
Corporate Office :	3^rd Floor, Press Trust of India, 4 Parliament Street, New Delhi – 110001, India
Tel. No.:	91-11-66034600 / 66034627
Fax No.:	91-11-66273090
Branch Office:	Kishan Colony, Near Kanasar Choroaha, BAP, Phlodi (OSIAN), Jodhpur, Rajasthan, India

DIRECTORS

As on: 29.09.2011

Name :	Mr. Balkrishan Gopiram Goenka
Designation :	Director
Address :	Rocky Isle, 46/C, Bhulabhai Desai Road, Breach Candy, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	15.08.1966
Date of Appointment :	10.02.2010
DIN No.:	00270175
Name :	Mr. Vineet Rajkumar Mittal
Designation :	Director
Address :	7^th Floor, Shubham Building, Gandhigram Road, Near Iskcon Temple, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	05.09.1974
Date of Appointment :	10.02.2010
DIN No.:	00058552
Name :	Mr. Sindoor Vineet Mittal
Designation :	Whole-time director
Address :	701, Shubham Building, Gandhidham Raod, Near Iskcon Temple, Juhu, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	28.03.1983
Date of Appointment :	01.04.2011
DIN No.:	00292184
Name :	Mr. Devendra Patil
Designation :	Director
Address :	B/13, Yojna Co-operative Housing Society Limited, Natwar Nagar, Road No. 5, Jogeshwari (East), Mumbai -400060, Maharashtra, India
Date of Birth/Age :	07.11.1959
Date of Appointment :	25.08.2010
DIN No.:	00062784
Name :	Mr. Sitaram Somani
Designation :	Director
Address :	N-8/18, Ganpati Niwas Bangur Niwas, Goregaon (West), Mumbai – 400090, Maharashtra, India
Date of Birth/Age :	23.01.1948
Date of Appointment :	15.09.2006
DIN No.:	00005017

KEY EXECUTIVES

Name :	Mrs. Jyoti Suryakant Mistry
Designation :	Company Secretary
Address :	C/3, Bindu Shopping Center, Tilak Raod, Santacruz (West), Mumbai – 400054
Date of Birth/Age :	07.07.1974
Date of Appointment :	04.07.2011
Pan No:	AFOPM6807L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2011

Names of shareholders	No. of Shares
Krishiraj Trading Limited, India	273000
Welspun Corp Limited, India	273000
Vineet Mittal	252000
Welspum Fintrade Limited, India	251997
Devendra Patil	1
Pradeep Joshi	1
Shashikant Thorat	1
Total	1050000

As on 18.03.2013

Names of Allottee	No. of Shares Allotted
Krishiraj Trading Limited, India	6050955
Welspum Fintrade Limited, India	1910828
Total	7961783

As on 31.03.2012

Names of Allottee	No. of Shares Allotted
Welspun Corp. Limited, India	17242300
Krishiraj Trading Limited, India	30042000
Candor Power Private Limited, India	9853000
Welspun Fintrade Limited, India	9179300
Total	66316600

As on 31.05.2012

Names of Allottee	No. of Shares Allotted
Welspun Corp. Limited, India	42978042
Krishiraj Trading Limited, India	76455749
Candor Power Private Limited, India	24795000
Welspun Fintrade Limited, India	15650170
Welspun Mercantile Limited, India	2489534
Welspun Wintex Limited	2326667
B.K. Goenka	604933
Total	165300095

As on 31.03.2013

Names of Allottee (Equity Shares)	No. of Shares Allotted
Candor Power Private Limited	33040672
Bhadrawati Ispat and Energy Private Limited	24936356
Mr. Vineet Mittal	4988304
Total	62965332

As on 31.03.2013

Names of Allottee (Preference Shares)	No. of Shares Allotted
Candor Power Private Limited	80626146
Bhadrawati Ispat and Energy Private Limited	60849921
Mr. Vineet Mittal	12172503
Total	153648570

As on: 29.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	76.00
Directors or relatives of Directors	24.00
Total	100.00

BUSINESS DETAILS

Line of Business :

They are into power Generations (Solar and Thermal Power)

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· ICICI Bank Limited, ICICI Tower, NBCC Place, Bhisham Pitamah Marg, Pragati Vihar, New Delhi - 110003, India

· IDBI Bank Limited, IDBI Towerwtc Complex, Cuffee Parade, Mumbai – 400005, Maharashtra, India

Facilities :

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Term loans
From Bank	971.000	0.000
Total	971.000	0.000

Banking Relations :	--
Auditors :
Name :	Sureka Associates Chartered Accountants
Address :	45C, Mandhana Manor, Mogal Lane, Matunga Road (West), Mumbai – 400016, Maharashtra, India
Tel. No.:	91-22-24306150/ 24327608
Fax No.:	91-22-24327608
E-Mail :	srekas@vsnl.com
PAN.:	AAMFS8201P
Subsidiaries :	œ Welspun Energy Madhya Pradesh Limited o CIN No. : U40300MH2009PLC197014 œ Welspun Energy Anuppur Private Limited o CIN No. : U40108MH2007PTC170611 œ Welspun Urja India Limited o CIN No. : U40109MH2006PLC165964 œ Welspun Renewables Energy Limited o CIN No. : U40103MH2009PLC197021 œ Welspun Energy Chhattisgarh Limited o CIN No. : U40103MH2009PLC197024 œ Welspun Energy Up Private Limited o CIN No. : U40300MH2010PTC211286 œ Welspun Solar AP Private Limited o CIN No. : U40109MH2008PTC178769 œ Welspun Solar Madhya Pradesh Private Limited o CIN No. : U40106MH2010PTC206275 œ Welspun Solar Rajasthan Private Limite o CIN No. : U40105MH2010PTC206475 œ Welspun Solar Punjab Private Limited o CIN No. : U40300MH2010PTC211302 œ Welspun Urja Gujarat Private Limited o CIN No. : U40300MH2010PTC207034 œ Welspun Energy Rajasthan Private Limited o CIN No. : U40108MH2006PTC165751 œ Welspun Energy Maharashtra Private Limited (WEMHPL), ceased to be subsidiary w.e.f03 January, 2011 œ Welspun Energy Meghalaya Private Limited (WEMGFL) œ Welspun Energy Resources Private Limited (WERSPL) œ Weispun Energy Jharkhand Private Limited (WEJFL), incorporated as on 29 October, 2010. œ Weslpun Energy Orissa Private limited (WEQPL), incorporated as on 03 November, 2010. œ Weispun Energy Park Private Limited (WEPPL), incorporated as on 28 August, 2010. œ Welspun Solar Park Private Limited (WSPPL), incorporated as on 14 September, 2Q10. œ Welspun Solar Tech Private Limited (WSTPL). incorporated as on 23 July, 2010
Associates :	œ Welspun corp limited (WCL) œ Krishiraj Trading Limited (KTL) œ MI Mysolar 24 Private Limited (MMPL)# œ Unity Power Private Limited (UPPL) ## œ Northwest Energy Private Limited (NEPL) ### œ Welspun Fintrade Limited (WEL) Ceased to be associated w.e.f. 31.03.2012 # WREL has purchased 49% shareholding during the current year. ##WSAPL has purchased 49% shareholding during the current year. ###WSAPL purchased 47% shareholding during the current year.

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000000	Equity Shares	Rs.10/- each	Rs. 2500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
67366600	Equity Shares	Rs.10/- each	Rs.673.666 Millions

As on: 21.09.2012

Authorised Capital : Rs. 5000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 3349.595 Millions

Reconciliation of number of Shares outstanding at beginning and at the end of year:

Particulars	31.03.2012 No. of Shares
At the beginning of the year	1050000
Issued during the year	66316600
At end of the year	67366600

The details of shareholder holding more than 5% shares:

	31.03.2012
Name of Shareholders	No. of Share	% of Holding
Welspun Crop Limited	17515300	26.00
Krishiraj Trading Limited	30315000	45.00
Welspun Fintrade Limited	9431300	14.00
Candor Power Private Limited	9853000	14.60
Total	67114600	99.60

Terms/rights attached to equity shares:

The company has only one class of equity shares having per value Rs. 10 per Shares. Each holder of equity shares is entitled to one vote per shares.

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	673.666	10.500
(b) Reserves & Surplus	367.155	0.065
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	2489.307	664.000
Total Shareholders’ Funds (1) + (2)	3530.128	674.565
(3) Non-Current Liabilities
(a) long-term borrowings	971.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	6.903	1.911
Total Non-current Liabilities (3)	977.903	1.911
(4) Current Liabilities
(a) Short term borrowings	130.048	0.000
(b) Trade payables	6.307	0.209
(c) Other current liabilities	52.925	10.054
(d) Short-term provisions	2.495	2.473
Total Current Liabilities (4)	191.775	12.736
TOTAL	4699.806	689.212
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	54.182	10.503
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	6.634
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1999.150	30.495
(c) Deferred tax assets (net)	0.464	0.202
(d) Long-term Loan and Advances	2279.083	261.565
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	4332.879	309.399
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	12.691	0.000
(d) Cash and cash equivalents	66.156	14.658
(e) Short-term loans and advances	26.047	178.630
(f) Other current assets	262.033	186.525
Total Current Assets	366.927	379.813
TOTAL	4699.806	689.212

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.500
2] Share Application Money		72.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(0.094)
NETWORTH		72.406
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		72.406
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.208
Capital work-in-progress		6.634
INVESTMENT		4.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	35.422
	Other Current Assets	0.000
	Loans & Advances	26.142
Total Current Assets		61.564
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.003
	Other Current Liabilities	0.003
	Provisions	0.000
Total Current Liabilities		0.006
Net Current Assets		61.558
MISCELLANEOUS EXPENSES		0.006
TOTAL		72.406

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	440.789	186.075	0.006
		Other Income	5.197	0.515	0.000
		TOTAL	445.986	186.590	0.006
Less	EXPENSES
		Purchase of stock in trade	200.028	0.000
		Employee benefit expenses	59.098	100.579
		Other Expenses	108.408	79.164
		TOTAL	367.534	179.743	0.037
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		78.452	6.847	(0.031)
Less	FINANCIAL EXPENSES		15.927	6.387	0.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		62.525	0.460	(0.031)
Less/ Add	DEPRECIATION/ AMORTISATION		2.210	0.461	0.003
	PROFIT/(LOSS) BEFORE TAX		60.315	(0.001)	(0.034)
Less	TAX		18.263	(0.160)	0.000
	PROFIT/(LOSS) AFTER TAX		42.052	0.159	(0.034)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.065	(0.094)	(0.060)
	BALANCE CARRIED TO THE B/S		42.117	0.065	(0.094)
	IMPORTS
		Office Equipment	1.068	0.442	NA
	TOTAL IMPORTS		1.068	0.442	NA
	Earnings/(Loss) Per Share (Rs.)		34.16	0.15	(0.68)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	9.43	0.08	(566.66)
Net Profit Margin (PBT/Sales)	(%)	13.68	(0.00)	(566.66)
Return on Total Assets (PBT/Total Assets}	(%)	2.23	(0.00)	(0.05)
Return on Investment (ROI) (PBT/Networth)		0.02	(0.00)	(0.00)
Debt Equity Ratio (Total Debt /Networth)		0.31	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.91	29.82	10260.66

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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The Registered Office of the company has been shifted from N-4, Dikshanti Apartment, Near Malav Talav, Near Devas Flats, Jivrajpurak, Ahmedabad, Gujarat, India, to the present address w.e.f. 31.07.2006.

UNSECURED LOAN:

Particulars	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Short Term Borrowing
Repayable on demand
Loans and advance from related parties	130.048	0.000
Total	130.048	0.000

INDEX CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10389648	29/10/2012	1,000,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B63137129
2	10382556	28/09/2012	1,000,000,000.00	ADITYA BIRLA FINANCE LIMITED	Indian Rayon Compound, Veraval, Gujarat - 362266,INDIA	B60390960
3	10349823	26/05/2012 *	1,000,000,000.00	ICICI BANK LIMITED	ICICI Tower, NBCC Place, Bhisham Pitamah Marg, Pragati Vihar, NEW DELHI, Delhi - 110003, INDIA	B41428335

* Date of charge modification

FIXED ASSETS:

· Building and Improvements

· Computer

· Furniture and Fixture

· Office Equipment

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 :	PDT
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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	--

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