MIRA INFORM REPORT

Report Date :

22.10.2013

IDENTIFICATION DETAILS

Name :	SAMRUDDHI INDUSTRIES LIMITED
Formerly Known As :	MALSONS ORGANICS LIMITED
Registered Office :	J-98, MIDC, Kupwad Block, Sangli - 416436 Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.09.1992
Com. Reg. No.:	11-068458
Capital Investment / Paid-up Capital :	Rs. 74.325 Millions
CIN No.: [Company Identification No.]	U24119PN1992PLC068458
TAN No.: [Tax Deduction & Collection Account No.]	KLPS05417G
PAN No.: [Permanent Account No.]	AAHCS9137L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Plastic Products.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 1030000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profit of the company appears to be fluctuating due to volatility in raw material prices. Rating also takes into consideration intensely competitive nature of plastic industry. 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

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities : BB
Rating Explanation	Inadequate credit quality and high credit risk.
Date	May 6, 2013

Rating Agency Name	CARE
Rating	Short term bank facilities : A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	May 6, 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 DECLINED BY

Name :	Mr. Mukund
Designation :	Marketing Manager
Contact No.:	91-233-2645733
Date :	21.10.2013

LOCATIONS

Registered Office/ Manufacturing Unit 1 :	J-98, MIDC, Kupwad Block, Sangli - 416436 Maharashtra, India
Tel. No.:	91-233-2645733/ 2644217/ 2645137
Mobile No.:	91-9423677044 (Mr. Ram Patil)
Fax No.:	91-233-2644903
E-Mail :	rampatil@samruddhi.com account@samruddhi.com
Website :	http://www.samruddhi.com
Area :	500 sq. ft.
Location :	Owned
Manufacturing Unit 2 :	Plot No. 31, L.K. Akiwate Industrial Estate, Jaysingpur, Kolhapur - 416144, Maharashtra, India
Location :	Owned
Manufacturing Unit 3 :	Plot No. 39 and 42, APIIC Industrial Park, Valasapalli, Madanapalle, District – Chittoor – 517325, Andhra Pradesh, India
Manufacturing Unit 4 :	R Plot No.25, 25 Sector 6, Pant Nagar, Rudrapur – 263153, Uttarakhand, India
Corporate/ Head Office :	J-84, MIDC, Kupwad Block, Sangli, Maharashtra, India
Tel No.:	91-233-2645137/ 2644217/ 2644902/ 2645717
Fax No.:	91-233-2644903
Email :	samruddhi@samruddhi.com
International Office :	Silicon Towers, Flat No A-Wing 402, Plot – 46, Sector – 30A Vashi, Navi Mumbai – 400705, Maharashtra, India
Regional Offices and Distribution Centers :	Located at: · Gujarat · Andhra Pradesh · Ahmedabad · Punjab

DIRECTORS

AS ON 27.09.2012

Name :	Mr. Ramakant Narayan Malu
Designation :	Managing director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Date of Birth/Age :	11.05.1966
Qualification :	B.E. (Plastic)
Date of Appointment :	15.05.1995
PAN No.:	ABEPM4681J
DIN No.:	00286135
Name :	Mr. Omprakash Narayan Malu
Designation :	Whole-time director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Date of Birth/Age :	24.02.1969
Qualification :	D. Pharmacy
Date of Appointment :	01.01.2002
PAN No.:	ABFPM6230L
DIN No.:	00286152
Name :	Mr. Pramod Narayan Malu
Designation :	Whole-time director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Date of Birth/Age :	21.11.1973
Qualification :	MBA
Date of Appointment :	25.04.2003
PAN No.:	ABFPM6231M
DIN No.:	00286155
Name :	Mr. Narayan Mangilal Malu
Designation :	Director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Date of Birth/Age :	28.07.1937
Date of Appointment :	08.09.1992
DIN No.:	00286126
Name :	Mrs. Shweta alias Ranjana Pramod Malu
Designation :	Director
Address :	196/ 3, M.G. Road, Jaysingpur, Kolhapur – 416101, Maharashtra, India
Date of Birth/Age :	21.11.1973
Qualification :	B.Com
Date of Appointment :	25.04.2003
DIN No.:	00286168
Name :	Mr. Rajakumar Kisanlal Zawar
Designation :	Director
Address :	Near Chumari Block, Near Hill Garden, Gokak, Belgaum – 591307, Karnataka, India
Date of Birth/Age :	05.12.1958
Qualification :	B.Com
Date of Appointment :	31.08.2006
DIN No.:	03245365
Name :	Mrs. Minal Madhav Bapat
Designation :	Director
Address :	424, Gaon Bhag, Sangli - 416416, Maharashtra, India
Date of Birth/Age :	17.07.1956
Qualification :	LL.B.
Date of Appointment :	21.09.2010
DIN No.:	03343399
Name :	Mr. Venu Dabeer
Designation :	Director
Address :	2 Shivdarshan Society, Gandhinagar – 382424, Gujarat, India
Date of Birth/Age :	06.04.1967
Qualification :	MBA
Date of Appointment :	21.09.2010
DIN No.:	03339990

KEY EXECUTIVES

Name :	Mr. Mukund
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders	No. of Shares
Natwarlal Shriniwas Malu	30
Gulabchand Mangilal Malu	60
Narayan Mangilal Malu	229560
Nandkishore Mangilal Malu	60
Anuradha Parab	30
Kamalakar Bajarang Mhetre	30
Swati Prabhakar Mujumdar	30
Swati Prabhakar Mujumdar	1509720
Omprakash Narayan Malu	1914030
Pramod Narayan Malu	1571580
Pranesh Malharrao Kulkarni	1500
Shankarayya Gurusitldayya Mathpati	1500
Babulal Mammadgous Makandar	1500
Ashok shrishallappa Koti	3000
Ramchandra Venkatesh Mudebihal	1500

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	92.00
Others	8.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Plastic Products.

Products :

ITC Code	Product Descriptions
39239090	Plastic Articles

GENERAL INFORMATION

No. of Employees :

500 (Approximately)

Bankers :

The Karnataka Bank Limited, P. B. No. 599, Mahaveera Circle, Kankanady Mangalore – 575002, Karnataka, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	83.480	105.971
SHORT TERM BORROWINGS
Working capital loans from banks	196.432	191.817
Total	279.912	297.788

Banking Relations :	--
Auditors :
Name :	T C Shah and Company Chartered Accountants
Address :	C C No. 127/2, Rockel Lane, Vakhar Baug, Sangli, Maharashtra, India
Tel. No.:	91-233-2623625/ 2622536
E-Mail :	san_tcco@sancharnet.in
Income-tax PAN of auditor or auditor's firm :	AAGFT5410P
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Ø Samruddhi Value Mkt Limited Ø Samadhan Industries LLP

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
8,500,000	Equity Shares	Rs. 10/- each	Rs. 85.000 Millions
1,500,000	Preference Shares	Rs. 10/- each	Rs. 15.000 Millions
	Total		Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,932,530	Equity Shares	Rs. 10/- each	Rs. 59.325 Millions
1,500,000	Preference Shares	Rs. 10/- each	Rs. 15.000 Millions
	Total		Rs. 74.325 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	74.325	74.325
(b) Reserves & Surplus	183.146	150.778
(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)	257.471	225.103
(3) Non-Current Liabilities
(a) long-term borrowings	122.049	128.325
(b) Deferred tax liabilities (Net)	4.272	0.000
(c) Other long term liabilities	32.553	17.448
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	158.874	145.773
(4) Current Liabilities
(a) Short term borrowings	196.432	191.817
(b) Trade payables	2.852	14.871
(c) Other current liabilities	51.703	30.223
(d) Short-term provisions	24.601	13.923
Total Current Liabilities (4)	275.588	250.834
TOTAL	691.933	621.710
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	230.393	215.219
(ii) Intangible Assets	0.777	0.833
(iii) Capital work-in-progress	27.793	13.611
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.270	0.270
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	51.165	21.975
(e) Other Non-current assets	0.536	0.626
Total Non-Current Assets	310.934	252.534
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	245.395	223.540
(c) Trade receivables	37.245	47.713
(d) Cash and cash equivalents	1.806	6.975
(e) Short-term loans and advances	96.445	90.840
(f) Other current assets	0.108	0.108
Total Current Assets	380.999	369.176
TOTAL	691.933	621.710

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		74.325
2] Share Application Money		0.000
3] Reserves & Surplus		107.729
4] (Accumulated Losses)		0.000
NETWORTH		182.054
LOAN FUNDS
1] Secured Loans		136.646
2] Unsecured Loans		13.465
TOTAL BORROWING		150.111
DEFERRED TAX LIABILITIES		0.000
OTHER LIABILITIES		118.453
TOTAL		450.618
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		138.713
Capital work-in-progress		0.000
INVESTMENT		0.310
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	176.386
	Sundry Debtors	48.092
	Cash & Bank Balances	3.840
	Other Current Assets	0.000
	Loans & Advances	82.538
Total Current Assets		310.856
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		0.000
Net Current Assets		310.856
MISCELLANEOUS EXPENSES		0.739
TOTAL		450.618

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	928.192	866.686	765.369
		Other Income	3.921	2.911	6.251
		TOTAL (A)	932.113	869.597	771.620
Less	EXPENSES
		Cost of materials consumed	593.035	581.053
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(45.935)	(13.383)
		Employee benefit expense	56.147	38.533
		Other expenses	194.700	183.504
		Prior period items	0.168	0.719
		TOTAL (B)	798.115	790.426	670.145
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		133.998	79.171	101.475
Less	FINANCIAL EXPENSES (D)		56.268	38.826	42.036
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		77.730	40.345	59.439
Less/ Add	DEPRECIATION/ AMORTISATION (F)		34.516	27.053	21.550
	PROFIT BEFORE TAX (E-F) (G)		43.214	13.292	37.889
Less	TAX (H)		6.327	0.845	1.951
	PROFIT AFTER TAX (G-H) (I)		36.887	12.447	35.938
	IMPORTS
		Raw Materials	57.033	96.112
		Capital Goods	7.159	0.000
	TOTAL IMPORTS		64.192	96.112	N.A.
	Earnings Per Share (Rs.)		6.19	7.21	6.03

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.96	1.43	4.66
Net Profit Margin (PBT/Sales)	(%)	4.66	1.53	4.95
Return on Total Assets (PBT/Total Assets}	(%)	6.51	2.19	8.43
Return on Investment (ROI) (PBT/Networth)		0.17	0.06	0.21
Debt Equity Ratio (Total Debt/Networth)		1.24	1.42	0.82
Current Ratio (Current Asset/Current Liability)		1.38	1.47	0.00

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	Yes
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	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

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	38.569	22.354
Total	38.569	22.354

PERFORMANCE OVERVIEW

The company has once again registered an impressive performance on all important parameters during FY 2011-12. The company was able to achieve a significant gross turnover of around 1023.700 Millions in the financial year. The company’s Earnings before Interest and Taxes for the year are Rs. 95.600 Millions. The EBIT Margins, by and large has also recorded a sizable growth as compared to last year by 14.76 %. Nevertheless Profit after Taxes excluding exceptional and extra ordinary items are standing at Rs 36.700 Millions being an impressive figure in relation to FY 11-12. Robust operating cash flows contributed to the healthy financial condition of the company.

OUTLOOK

The company believes that in the forthcoming year it will be able to capitalize on its core competencies. The company is constantly committed to its core values and wants to move ahead with a strong vision based Futuristic Outlook. The company has strong principles & fundamentals on the base of which the journey of the company has begun. It is the company’s inherent tendency to adhere to its core values while achieving a sustainable and profitable growth.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24119PN1992PLC068458
Name of the company	SAMRUDDHI INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	J-98, MIDC, Kupwad Block, Sangli - 416436 Maharashtra, India Email: account@samruddhi.com
This form is for	Creation of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	The Karnataka Bank Limited, P. B. No. 599, Mahaveera Circle, Kankanady Mangalore – 575002, Karnataka, India Email: comsec@ktkbank.com CIN No.: L85110KA1924PLC001128
Nature of description of the instrument creating or modifying the charge	Term loan IV of Rs. 64.900 Millions for set up new plant at n-17, Sangli.
Date of instrument Creating the charge	25.12.2012
Amount secured by the charge	Rs. 64.900 Millions
Short particulars of the property charged	Factory building and godown to be constructed factory open Plot No 17/1 at MIDC, Sangli - Miraj Industrial Ares, Kupwad Sangli. Hypothecation of plant and machinery, office furniture, electricity expantion, office equipment, lab equipment, software and hardware and other accessories to be purchased.

FIXED ASSETS:

Ø Land and Buildings

Ø Plant and Machinery

Ø Electrical Installation

Ø Patterns and Moulds

Ø Vehicles

Ø Patents and Trademarks

Ø 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. 61.49
UK Pound	1	Rs. 99.41
Euro	1	Rs. 84.12

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	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		36

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.