MIRA INFORM REPORT

Report Date :

21.10.2013

IDENTIFICATION DETAILS

Name :	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED
Registered Office :	Tirumala Complex,1st Floor, 4/2, Brodipet, Guntur – 522002, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.04.2005
Com. Reg. No.:	01-045993
Capital Investment / Paid-up Capital :	Rs. 122.500 Millions
CIN No.: [Company Identification No.]	U17110AP2005PTC045993
TIN No.:	28390225189
PAN No.: [Permanent Account No.]	AAICS9427J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarns
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 840000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Reserve of the company appears to be insufficient. External borrowing is more than networth. There is dip in the profit of the company during 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = BB-
Rating Explanation	Moderate risk of default
Date	14.08.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4+
Rating Explanation	Have minimal degree of safety and carry vary high credit risk
Date	14.08.2013

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.

LOCATIONS

Registered Office :	Tirumala Complex,1st Floor, 4/2, Brodipet, Guntur – 522002, Andhra Pradesh, India
Tel. No.:	91-863-2234599 / 6535259
Fax No.:	91-863-2234589
E-Mail :	dsc_director@rediffmail.com md@slpspinningmills.com ed@slpspinningmills.com gm@slpspinningmills.com accounts@slpspinningmills.com marketing@slpspinningmills.com stores@slpspinningmills.com
Website :	http://www.slpspinningmills.com
Factory :	Chebrolu Donka (towards Tenali) Narakoduru, Chebrolu, Guntur – 522212, Andhra Pradesh, India
Tel. No.:	91-863-2534402
Fax No.:	91-863-2534401

DIRECTORS

As on 29.09.2012

Name :

Mr. Surya Prakasa Rao Tadikamalla

Designation :

Director

Address :

D. No. 3-14-24, Old Pattabhipuram, Guntur – 522006, Andhra Pradesh, India

Date of Birth/Age :

12.06.1952

Date of Appointment :

26.04.2005

DIN No.:

00052860

PAN No.:

ACAPD0921D

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	U63022AP1992PTC014663	SIVASAI COLD STORAGE PRIVATE LIMITED	Managing director	11/08/1992	11/08/1992	Active	NO
2	U24230AP1994PTC019088	MITOTECH PHARMACEUTICALS PRIVATE LIMITED	Director	05/01/1995	05/01/1995	Active	NO
3	U74999AP1996PTC024486	SAI SIVAM COLD STORAGE PRIVATE LIMITED	Managing director	01/07/1996	01/07/1996	Active	NO
4	U17110AP2005PTC045993	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	26/04/2005	26/04/2005	Active	NO
5	U63022AP2005PTC046100	SARWANI COLD STORAGE PRIVATE LIMITED	Whole-time director	04/05/2005	04/05/2005	Active	NO
6	U63020AP2010PTC071486	UMAMAHESWARA COLD STORAGE PRIVATE LIMITED	Director	02/12/2010	02/12/2010	Active	NO
7	U63022AP2012PTC081522	SRAWANI COLD STORAGE PRIVATE LIMITED	Director	21/06/2012	18/06/2012	Active	NO

Name :

Mr. Siva Sankara Rao Karumuri

Designation :

Director

Address :

Plot No. 11, Kanchan Towers, Pattabhipuram, Guntur – 522006, Andhra Pradesh, India

Date of Birth/Age :

15.01.1960

Date of Appointment :

26.04.2005

DIN No.:

00052864

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	U17110AP2005PTC045993	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	26/04/2005	26/04/2005	Active	NO
2	U63022AP1997PTC027498	POPULAR COLD STORAGE PRIVATE LIMITED	Director	03/10/2009	03/10/2009	Active	NO

Name :

Mr. Venkata Apparao Kothuri

Designation :

Vice Chairman

Address :

D. No. 3-25-6, Plot No. B1-52 Lane, Ravindra Nagar, Guntur – 522006, Andhra Pradesh, India

Date of Birth/Age :

12.10.1946

Date of Appointment :

26.04.2005

DIN No.:

00052870

PAN No.:

ADSPK7466K

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	U63022AP1997PTC027498	POPULAR COLD STORAGE PRIVATE LIMITED	Director	01/08/1999	01/08/1999	Active	NO
2	U01135AP2004PTC044850	VIJAYADURGA AGRO FARMS PRIVATE LIMITED	Director	13/12/2004	13/12/2004	Active	NO
3	U17110AP2005PTC045993	SREE LALITHA PARAMESWARI SPINNING MILLS PRIVATE LIMITED	Director	26/04/2005	26/04/2005	Active	NO
4	U63020AP2010PTC070266	VASAVIRATNA COLD STORAGE PRIVATE LIMITED	Managing director	03/09/2010	01/09/2010	Active	NO

Name :

Mr. Surya Prakasa Rao Desu

Designation :

Managing director

Address :

D. No. 5-62-9a, 6/19, Brodipet, Guntur – 522002, Andhra Pradesh, India

Date of Birth/Age :

05.08.1957

Date of Appointment :

26.04.2005

DIN No.:

00052877

Name :

Mr. Ambareesh Tripuramallu

Designation :

Director

Address :

D. No. 7-1-46, Station Road, Sattenapalli – 522403, Andhra Pradesh, India

Date of Birth/Age :

01.07.1966

Date of Appointment :

26.04.2005

DIN No.:

00052889

PAN No.:

ADHPT0281G

Name :

Mr. Venkata Durga Malleswara Rao Tripuramallu

Designation :

Director

Address :

D. No. 7-1-46, Station Road, Sattenpalli – 522403, Andhra Pradesh, India

Date of Birth/Age :

17.06.1965

Date of Appointment :

26.04.2005

DIN No.:

00052903

PAN No.:

ABCPT4957G

Name :

Mr. Venkata Seshagiri Rao Tripuramallu

Designation :

Chairman

Address :

D. No. 7-1-46, Station Road, Sattenapalli – 522403, Andhra Pradesh, India

Date of Birth/Age :

15.06.1942

Date of Appointment :

26.04.2005

DIN No.:

00052909

Name :

Mr. Venkataramana Sikhakolanu

Designation :

Whole-time director

Address :

D. No. 7-1-18, Station Road, Sattenpalli – 522403, Andhra Pradesh, India

Date of Birth/Age :

18.03.1979

Date of Appointment :

26.04.2005

DIN No.:

01681021

Name :

Mr. Venkata Bhaskara Rao Kunala

Designation :

Director

Address :

D. No. 3-11-9, Vasavi Nilayam, Old Pattabhipurma, Guntur – 522006, Andhra Pradesh, India

Date of Birth/Age :

26.08.1966

Date of Appointment :

26.04.2005

DIN No.:

00052927

PAN No.:

ADSPK7396J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	33.29
Other top fifty shareholders	66.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Yarns

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Spindles	No. of Kgs	24960	24960	2111195

Note: The Installed Capacity are as per certification given by the management

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Specialised Commercial Branch, Kannavarithota, Guntur – 522004, Andhra Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Rupee term loans from banks	283.689	206.217
Short-term borrowings
Loans repayable on demand	167.334	142.424
Total	451.023	348.641

Banking Relations :	---
Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	10-3-21, Sambasivapet, Guntur, Andhra Pradesh, India
PAN No.:	AADFB8032G
Related Party :	Sree Tirumala Cot Ton Corporation Sree Tirumala Cotton Traders

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs. 100/- each	Rs. 70.000 Millions
525000	Preferences Shares	Rs. 100/- each	Rs. 52.500 Millions
	Total		Rs.122.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs. 100/- each	Rs. 70.000 Millions
525000	Preferences Shares	Rs. 100/- each	Rs. 52.500 Millions
	Total		Rs.122.500 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	122.500	122.500
(b) Reserves & Surplus	88.787	77.642
(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)	211.287	200.142
(3) Non-Current Liabilities
(a) long-term borrowings	308.866	211.571
(b) Deferred tax liabilities (Net)	39.338	38.144
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.150	0.000
Total Non-current Liabilities (3)	348.354	249.715
(4) Current Liabilities
(a) Short term borrowings	167.334	142.424
(b) Trade payables	38.448	44.661
(c) Other current liabilities	35.066	44.373
(d) Short-term provisions	20.918	14.737
Total Current Liabilities (4)	261.766	246.195
TOTAL	821.407	696.052
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	495.282	361.396
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	1.957	11.311
(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	7.415	4.517
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	504.654	377.224
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	190.476	199.970
(c) Trade receivables	37.814	37.631
(d) Cash and cash equivalents	16.228	23.536
(e) Short-term loans and advances	54.159	44.262
(f) Other current assets	18.076	13.429
Total Current Assets	316.753	318.828
TOTAL	821.407	696.052

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		70.000
2] Share Application Money		0.000
3] Reserves & Surplus		38.227
4] (Accumulated Losses)		0.000
NETWORTH		108.227
LOAN FUNDS
1] Secured Loans		305.192
2] Unsecured Loans		36.347
TOTAL BORROWING		341.539
DEFERRED TAX LIABILITIES		24.506
TOTAL		474.272
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		343.561
Capital work-in-progress		9.904
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.954
	Sundry Debtors	9.940
	Cash & Bank Balances	5.918
	Other Current Assets	6.621
	Loans & Advances	84.560
Total Current Assets		160.993
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	29.328
	Other Current Liabilities	0.651
	Provisions	10.207
Total Current Liabilities		40.186
Net Current Assets		120.807
MISCELLANEOUS EXPENSES		0.000
TOTAL		474.272

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	592.985	497.345	208.367
		Other Income		13.020	8.198
		TOTAL (A)	592.985	510.365	216.565
Less	EXPENSES
		Raw material consumed			109.059
		Payment and benefit to employees			7.588
		Manufacturing, Selling, Administrative and Other Expenses			33.060
		Taxes and Licenses			0.533
		Decrease of stocks			1.585
		TOTAL (B)	589.265	442.874	151.825
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial and Depreciation Expenses)	(Including Financial and Depreciation Expenses)	64.740
Less	FINANCIAL EXPENSES (D)				20.687
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				44.053
Less/ Add	DEPRECIATION/ AMORTISATION (F)				10.510
	PROFIT BEFORE TAX (E-F) (G)		3.720	67.491	33.543
Less	TAX (H)		(13.526)	27.446	16.855
	PROFIT AFTER TAX (G-H) (I)		17.246	40.045	16.688
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		77.641	38.226	21.538
Less	APPROPRIATIONS
		Transfer to General Reserve	6.101	0.630	0.000
	BALANCE CARRIED TO THE B/S		88.786	77.641	38.226
	IMPORTS
		Capital Goods	NA	11.912	37.975
	Earnings Per Share (Rs.)		14.08	32.69	24.65

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.91	7.85	7.71
Net Profit Margin (PBT/Sales)	(%)	NA	13.57	16.10
Return on Total Assets (PBT/Total Assets}	(%)	0.45	9.86	6.65
Return on Investment (ROI) (PBT/Networth)		0.02	0.34	0.31
Debt Equity Ratio (Total Debt /Networth)		2.25	1.77	3.16
Current Ratio (Current Asset/Current Liability)		1.21	1.30	4.01

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	Yes

FINANCIAL RESULTS:

The Company has made the turnover of Rs. 592.985 Millions during the year against the last year of Rs 510.365 Millions and recorded a profit before taxation of Rs. 3.720 Millions for the year. The net profit after tax is Rs. 17.246 Millions.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Term loans from others	25.177	5.354
Total	25.177	5.354

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80002621	22/07/2013 *	569,800,000.00	STATE BANK OF INDIA	SPECIALISED COMMERCIAL BRANCH, KANNAVARITHOTA,  GUNTUR, ANDHRA PRADESH - 522004, INDIA	B82266594
2	90262880	27/10/2005	131,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, KANNAVARITTHA, GUNTUR, ANDHRA  PRADESH, INDIA	-

* Date of charge modification

FIXED ASSETS:

• Land
• Non-Factory Buildings
• Factory Buildings
• Plant and Machinery
• Electrical Installation
• Furniture and Fixture
• Lab Testing Equipment
• Office Equipment
• Vehicles
• Plantations

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.61.28
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

INFORMATION DETAILS

Report Prepared by :

NTH

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	3
--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		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.