MIRA INFORM REPORT

Report Date :

23.10.2013

IDENTIFICATION DETAILS

Name :	BIRLASOFT (INDIA) LIMITED (w.e.f. 07.05.2007)

Formerly Known As :	BIRLASOFT LIMITED BIRLA HORIZONS INTERNATIONAL LIMITED

Registered Office :	Birla Tower, 8th Floor, 25, Barakhamba Road, New Delhi – 110001

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	20.01.1995

Com. Reg. No.:	55-064560

Capital Investment / Paid-up Capital :	Rs.140.000 Millions

CIN No.: [Company Identification No.]	U74899DL1995PLC064560

TAN No.: [Tax Deduction & Collection Account No.]	DELB06525B

PAN No.: [Permanent Account No.]	AAACB2769E

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Providing IT Solutions and Services.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 139000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a part of the CK Birla Group. It is a well established and reputed company having a good track record. The company has shown a better increase in its net profitability and has wiped off some part of its accumulated losses during 2013. However, the rating take into consideration the strong parentage and long standing experience of the promoters and brand name. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal 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

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	A1+ (SO) Short Term
Rating Explanation	Strong degree of safety and carry lowest credit risk.
Date	September 18, 2013

Rating Agency Name	CARE
Rating	AA- (SO) Long Term
Rating Explanation	High degree of safety and very low credit risk.
Date	September 18, 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 :	Birla Tower, 8th Floor, 25, Barakhamba Road, New Delhi – 110001, India
Tel. No.:	91-11-42092100
Fax No.:	91-11-42092198
E-Mail :	compliance@birlasoft.com
Website :	http://www.birlasoft.com

Corporate Office :	H–9, Sector 63, Noida – 201306, Uttar Pradesh, India
Tel. No.:	91-120-6629000/ 4079000
Fax No.:	91-120-6629494/ 4079494/ 6629484

Delivery Center :	Located at: Noida Chennai Bangalore Hyderabad Thane

Overseas Offices :	Located at: Switzerland Australia Singapore Canada Sweden Canada Dubai Poland The Czech Republic

DIRECTORS

As on: 19.07.2013

Name :	Ms. Amita Birla
Designation :	Director
Address :	Birla House, 8-9, Alipur Road, Kolkata – 700027, West Bengal, India
Date of Birth/Age :	07.12.1956
Qualification :	Graduate
Date of Appointment :	16.03.1995
DIN No.:	00837718

Name :	Mr. Chandrakant Birla
Designation :	Director
Address :	24, Aurangzeb Road, New Delhi – 110001, India
Date of Birth/Age :	09.01.1955
Qualification :	Graduate
Date of Appointment :	20.01.1995
DIN No.:	00118473

Name :	Mr. Ashok Kumar Ladha
Designation :	Director
Address :	W-51,Greater Kailash ll, New Delhi – 110048, India
Date of Birth/Age :	15.04.1949
Qualification :	Graduate
Date of Appointment :	19.03.1997
DIN No.:	00089360

Name :	Mr. Pramod Chandra Agarwala
Designation :	Director
Address :	Flat 7,233, Circular Road, Kolkata, West Bengal - 700020, India
Date of Birth/Age :	25.01.1932
Qualification :	Graduate
Date of Appointment :	20.01.1995
DIN No.:	00065335

Name :	Mr. Ananthanarayanan Sankara Narayanan
Designation :	Director
Address :	Old No. 10, New No. 12, First Avenue Harrington Road, Chetpel, Chennai - 600031, Tamilnadu, India
Date of Birth/Age :	29.07.1942
Qualification :	Graduate
Date of Appointment :	16.05.2000
DIN No.:	00385632

Name :	Mr. Manohar Lal Pachisia
Designation :	Director
Address :	8/12, Alipur Road, Kolkata - 700027, West Bengal, India
Date of Birth/Age :	06.11.1944
Qualification :	Graduate
Date of Appointment :	07.07.2006
DIN No.:	00065431

KEY EXECUTIVES

Name :	Mr. Ashok Kumar Ladha
Designation :	Manager
Address :	W-51, Greater Kailash II, New Delhi – 130048, India
Date of Birth/Age :	15.04.1949
Date of Appointment :	19.03.1997
PAN No.:	ABAPL7754K

Name :	Mr. Gaurav Singhal
Designation :	Secretary
Address :	C.318, Vivek Vihar, New Delhi - 110095, India
Date of Birth/Age :	08.03.1978
Date of Appointment :	09.09.2011
PAN No.:	AYBPS8970Q

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 19.07.2013

Names of Shareholders		No. of Shares
Birlasofl Enterprises Limited, India		13999993
Birlasoft Enterprises Limited, India and Pramod Chandra Agarwala		1
Birlasoft Enterprises Limited, India and Kashi Prasad Chaudhary		1
Birlasoft Enterprises Limited, India and Ashok Kumar Ladha		1
Birlasoft Enterprises Limited, India and Dipak Shantilal Mehta		1
Birlasoft Enterprises Limited, India and Brahma Swamp Gilra		1
Birlasofl Enterprises Limited, India and Shyam Sunder Sharma		1
Birlasoft Enterprises Limited, India and T.E.S. Varadhan		1

Total		14000000

Equity Share Break up (Percentage of Total Equity)

As on: 19.07.2013

Category		Percentage
Bodies corporate		100.00

Total		100.00

BUSINESS DETAILS

Line of Business :

Providing IT Solutions and Services.

Products :

Product Description	ITC Code
IT Solutions and Services	99831311

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Axis Bank Limited, B-2 and B-3, Sector 16, Noida - 201301, Uttar Pradesh, India
Axis Bank Limited, Trishul 3rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India
Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG-TERM BORROWINGS
Other loans and advances
Asset loan	35.776	13.023
Finance lease obligation	18.566	34.543
Loan from Others	6.329	10.734
SHORT-TERM BORROWINGS
Cash credit facilities from bank	145.151	255.832
Pre-shipment Credit in Foreign Currency	0.000	51.876
Export packing credit	40.000	0.000
Short term loan	0.000	50.000

Total	245.822	416.008
Notes: Foreign currency term loan is secured by way of first charge on the entire movable fixed assets, both present and future, ranking pari-passu. The facility is further secured exclusively against the entire fixed assets located at software development center in Noida units and also, secured against the first charge on the entire current assets of the Company both present and future, ranking pari-passu and corporate guarantee of Rs. 37.500 millions from ultimate holding company, National Engineering Industries Limited. It carries interest @ LIBOR plus 6.4% - LIBOR plus 7.8% p. a. The entire loan has been fully repaid during the current financial year. Asset loan is secured by the assets taken on loan and corporate guarantee of Rs. 23.300 millions (equivalent to 50% of the loan amount) from ultimate holding company, National Engineering Industries Limited. Interest on asset loan varies from 11.49% to 12.75% and is repayable in quarterly installments with maximum term of 4 years. The loan outstanding as at 31 March 2013 is repayable within 10-15 quarterly installments (31 March 2012: 1-15 installments). Finance lease obligation is secured by hypothecation of computers and software taken on lease and it is secured by corporate guarantee from ultimate holding company, National Engineering Industries Limited for Rs. 17.3 million (equivalent to 50% of Finance lease obligation). Interest on finance leases varies from 8.00% to 12.55% and is repayable in quarterly installments having maximum term of four years. The finance lease obligation outstanding as at 31 March 2013 is repayable within 7- 10 quarterly installments (31 March 2012: 3-14 quarterly installments) Loan from others includes loan obtained for purchase of software. It is secured corporate guarantee of Rs. 5.400 millions (equivalent to 50% of the loan amount) from ultimate holding company, National Engineering Industries Limited. Interest on loan is 12.55% and is repayable in quarterly installments. The term of the loan is 4 years and the outstanding balance as at 31 March 2013 is repayable within 9 quarterly installments (31 March 2012: 13 quarterly installments). Cash credit facilities from banks are secured by way of first charge on the entire current assets, both present and future and corporate guarantee from ultimate holding company, National Engineering Industries Limited for Rs. 300.000 millions. It is repayable on demand and carries interest @12.50% p.a. Pre shipment credit in foreign currency is secured by way of first charge on the entire current assets, both present and future, movable fixed assets and corporate guarantee of Rs. 50.000 millions from ultimate holding company, National Engineering Industries Limited. It is repayable within six month and carries interest @ LIBOR plus 3.75% p.a. The entire amount of borrowing has been fully repaid in the current financial year. Export packing credit is secured by way of first charge on the entire current assets, both present and future, movable fixed assets and corporate guarantee of Rs. 40.000 millions from ultimate holding company, National Engineering Industries Limited. It is repayable within six month and carries interest @ 11.0% p.a. Short term loan is secured by corporate guarantee from ultimate holding company, National Engineering Industries Limited for Rs. 50.000 millions. It is repayable within 3 months and carries interest @14.50% p.a. The entire amount of borrowing has been fully repaid in the current financial year.


Banking Relations :	--

Auditors :
Name :	S.R. Batliboi and Associates LLP Chartered Accountants
Address :	Golf View Corporate Tower B, Sector 42, Sector Road, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-4644000
Fax No.:	91-124-4644050
PAN No.:	AAMFS2483H

Ultimate Holding Company :	National Engg. Industries Limited CIN No.: L29130WB1946PLC013643

Fellow Subsidiary Company :	Birlasoft Inc. Birlasoft (UK) Limited

Subsidiary Company :	Birlasoft Sdn. Bhd Birlasoft (Beijing) Technologies Company Limited Birlasoft (WUXI) Information Technologies Company Limited

Holding Company :	Birla Soft Limited CIN No.: U72900DL2010PLC197773 Birlasoft Enterprises Limited CIN No.: U72200DL1999PLC100410

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

14000000	Equity Shares	Rs.10/- each	Rs.140.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	140.000	140.000	140.000
(b) Reserves & Surplus	(105.218)	(307.037)	(310.934)
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	34.782	(167.037)	(170.934)

(3) Non-Current Liabilities
(a) long-term borrowings	60.671	58.300	48.313
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	36.887	47.212	49.785
(d) long-term provisions	47.980	50.326	47.719
Total Non-current Liabilities (3)	145.538	155.838	145.817

(4) Current Liabilities
(a) Short term borrowings	313.051	675.608	597.138
(b) Trade payables	389.649	438.110	3.065
(c) Other current liabilities	256.913	150.946	635.496
(d) Short-term provisions	54.776	54.367	59.088
Total Current Liabilities (4)	1014.389	1319.031	1294.787

TOTAL	1194.709	1307.832	1269.670

ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	281.842	366.737	427.672
(ii) Intangible Assets	75.056	38.153	70.182
(iii) Capital work-in-progress	1.232	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	45.551	3.437	0.800
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	316.076	307.061	272.799
(e) Other Non-current assets	2.723	3.878	4.051
Total Non-Current Assets	722.480	719.266	775.504

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	230.053	358.255	272.554
(d) Cash and cash equivalents	69.945	68.233	48.831
(e) Short-term loans and advances	105.279	75.934	104.723
(f) Other current assets	66.952	86.144	68.058
Total Current Assets	472.229	588.566	494.166

TOTAL	1194.709	1307.832	1269.670

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3988.680	3721.474	3236.406
		Other Income	8.807	3.238	10.196
		TOTAL (A)	3997.487	3724.712	3246.602

Less	EXPENSES
		Employee Benefit Expenses	2550.784	2672.323	2476.991
		Other Expenses	1000.974	790.732	783.354
		TOTAL (B)	3551.758	3463.055	3260.345

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		445.729	261.657	(13.743)

Less	FINANCIAL EXPENSES (D)		62.210	78.664	76.988

	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		383.519	182.993	(90.731)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		148.125	178.589	206.200

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		235.394	4.404	(296.931)

Less	TAX (H)		33.575	0.507	(3.871)

	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		201.819	3.897	(293.060)

	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(307.040)	(310.930)	(92.290)

	ADJUSTMENT FOR CAPITAL REDUCTION SCHEME		0.000	0.000	74.420

	BALANCE CARRIED TO THE B/S		(105.220)	(307.040)	(310.930)

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3793.964	3360.411
		Interest Income	0.100	0.228
		Other Earnings	0.471	0.354
	TOTAL EARNINGS		3794.535	3360.993	2863.500

	IMPORTS
		Capital Goods	19.502	44.069	NA
	TOTAL IMPORTS		19.502	44.069	NA

	Earnings/ (Loss) Per Share (Rs.)		14.42	0.28	(27.51)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.05	0.10	(9.03)

Net Profit Margin (PBT/Sales)	(%)	5.90	0.12	(9.17)

Return on Total Assets (PBT/Total Assets}	(%)	20.51	0.34	(23.40)

Return on Investment (ROI) (PBT/Networth)		6.77	(0.03)	1.74

Debt Equity Ratio (Total Debt/Networth)		10.74	(4.39)	(3.78)

Current Ratio (Current Asset/Current Liability)		0.47	0.45	0.38

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

CORPORATE INFORMATION

The Subject is a global provider of IT solutions and services. The Company provides services in the areas of Software development, Package implementation, Application management and Testing. It leverages its domain knowledge in the areas of Banking, Financial Services, Manufacturing and Healthcare and ERP implementation. The Company also has overseas branches at Singapore, Australia, Sweden, Switzerland, Canada, Dubai, Poland and The Czech Republic and wholly owned subsidiaries in Malaysia, Mexico and China.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2013	As on 31.03.2012
SHORT-TERM BORROWINGS
Inter Corporate deposit repayable on demand from related parties	32.900	72.900
Inter Corporate deposit repayable on demand from others	95.000	245.000

Total	127.900	317.900

Notes:

Inter corporate loans are unsecured. It is repayable on demand and carries interest @ 9.5% to 12.0% p.a.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10246871	23/08/2011 *	50,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA - 400018, INDIA	B20969929
2	80024820	26/05/2005	130,000,000.00	UTI BANK LIMITED	B-2 AND 3 SECTOR-16, , NOIDA, NOIDA, UTTAR PRADESH - 201301, INDIA	-
3	80024821	21/12/2011 *	600,000,000.00	AXIS BANK LIMITED	B-2 AND B-3, SECTOR 16, NOIDA, UTTAR PRADESH - 201301, INDIA	B29677283
4	80024819	06/04/2004	80,000,000.00	UTI BANK	B-2 AND 3, SECTOR-16, NOIDA, NOIDA, UTTAR PRADESH - 201301, INDIA	-

* Date of charge modification

FIXED ASSETS

Tangible Assets

Plant and Equipment
Factory Equipments
Furniture and Fixtures
Vehicles
Office Equipment
Computer Equipments
Leasehold Improvements

Intangible Assets

Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.49
UK Pound	1	Rs.99.41
Euro	1	Rs.84.12

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	7
--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		58

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.

MIRA INFORM REPORT

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