MIRA INFORM REPORT

Report Date :

12.09.2013

IDENTIFICATION DETAILS

Name :	TABLETS (INDIA) LIMITED
Registered Office :	Jhaver Centre, R A Building, IV Floor, 19, Marshalls Road, Chennai-600008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.07.1938
Com. Reg. No.:	18-002883
Capital Investment / Paid-up Capital :	Rs.8.150 Millions
CIN No.: [Company Identification No.]	U24231TN1938PLC002883
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is primarily engaged in manufacturing of branded generic pharmaceuticals formulations; and also engaged in selling of aqua and animal feed supplements and sports supplements.
No. of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2550000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exists
Comments :	Subject is a well established company having satisfactory track record. Overall financial of the company appears to be decent. Trade relations are fair. Business is active. Payment terms are 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	ICRA
Rating	BBB – [Long Term Fund Based Facilities]
Rating Explanation	Moderate credit quality and average credit risk.
Date	July 2013

Rating Agency Name	ICRA
Rating	A3 [Short Term Non Fund Based Facilities]
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	July 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 :	Jhaver Centre, R A Building, IV Floor, 19, Marshalls Road, Chennai-600008, Tamilnadu, India
Tel. No.:	91-44-42050121
Fax No.:	Not Available
E-Mail :	vr@tabletsindia.com av@tabletindia.com
Factory :	No. 179, T.H. Road, Chennai-60008, Tamilnadu, India
Tel No.:	91-44-45963300

DIRECTORS

AS ON 26.09.2012

Name :

Mr. Chimakurthy Venkata Subbarao

Designation :

Whole Time Director

Address :

Prince Greenwoods, Sandal C 203, 66, Vanagaram Road, Athipet, Ambattur, Chennai-600058, Tamilnadu, India

Date of Birth/Age :

08.11.1943

Date of Appointment :

25.12.1985

Din No.:

00231063

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	U24231TN1938PLC002883	TABLETS (INDIA) LIMITED	Managing director	01/10/2011	25/12/1985	Active	NO

Name :

Mr. Rajagopal Thiruvengadam

Designation :

Whole Time Director

Address :

2/374, A Ramachandra Main Road, Mannappakam Village, Chennai-600116, Tamilnadu, India

Date of Birth/Age :

11.03.1951

Date of Appointment :

01.01.1997

Din No.:

02225457

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	U24231TN1938PLC002883	TABLETS (INDIA) LIMITED	Director	01/10/2011	01/01/1997	Active	NO
2	U70101TN2010PTC076442	VALCYRIE DEVELOPERS PRIVATE LIMITED	Director	05/07/2010	05/07/2010	Active	NO
3	U70102TN2010PTC077973	ASRT REAL ESTATES PRIVATE LIMITED	Director	03/11/2010	03/11/2010	Active	NO
4	U70102TN2010PTC078441	RTUV REAL ESTATES PRIVATE LIMITED	Director	14/12/2010	14/12/2010	Active	NO
5	U70102TN2011PTC078773	RJJS REAL ESTATES PRIVATE LIMITED	Director	11/01/2011	11/01/2011	Active	NO

Name :

Mr. Sankara Narayanan

Designation :

Whole Time Director

Address :

21, Manjolai II Street, Kalaimagal Nagar, Chennai-600097, Tamilnadu, India

Date of Birth/Age :

23.01.1957

Date of Appointment :

01.10.2005

Din No.:

00421889

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	U24231TN1938PLC002883	TABLETS (INDIA) LIMITED	Director	01/10/2011	30/09/2005	Active	NO

Name :

Mr. Vishwanatha Rao Kambale Vasudev

Designation :

Whole Time Director

Address :

Flat 1E, Block 14, Jain Sundharban Apartments, Nolambur, Chennai-600095, Tamilnadu, India

Date of Birth/Age :

24.11.1959

Date of Appointment :

01.12.2010

Din No.:

03077179

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	U24231TN1938PLC002883	TABLETS (INDIA) LIMITED	Whole-time director	01/12/2010	28/04/2010	Active	NO

KEY EXECUTIVES

Name :	Arumbakkam Venkataraman
Designation :	Secretary
Date of Appointment :	21.04.2007
Pan No.:	AABPV1652N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 26.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	66.89
Other top fifty shareholders	33.11
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in manufacturing of branded generic pharmaceuticals formulations; and also engaged in selling of aqua and animal feed supplements and sports supplements.

GENERAL INFORMATION

No. of Employees :

Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]

Bankers :

· Citibank N.A., 163, Anna Salai, Second Floor, Chennai-600002, Tamilnadu, India

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Short Term Borrowings
Working Capital Loans From Banks	217.996	184.396
TOTAL	217.996	184.396

Banking Relations :	--
Auditors :
Name :	M C Ranganathan and Company Chartered Accountants
Address :	147/1, II Floor, Suscons Sivakam Square, G N Chetty Road, T Nagar, Chennai-600017, Tamilnadu, India
PAN No:	AAEFM7466Q

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1350000	Equity Shares	Rs.10/- each	Rs.13.500 Millions
100000	Preferences Shares	Rs.10/- each	Rs.1.000 Million
	TOTAL		Rs.14.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
815000	Equity Shares	Rs.10/- each	Rs.8.150 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	8.150	8.150
(b) Reserves & Surplus	631.015	326.369
(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)	639.165	334.519
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	4.153	4.342
(c) Other long term liabilities	21.281	23.116
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	25.434	27.458
(4) Current Liabilities
(a) Short term borrowings	217.996	184.396
(b) Trade payables	149.705	120.868
(c) Other current liabilities	42.531	31.530
(d) Short-term provisions	3.284	3.219
Total Current Liabilities (4)	413.516	340.013
TOTAL	1078.115	701.990
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	416.379	165.427
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	21.105	24.105
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	52.854	36.380
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	490.338	225.912
(2) Current assets
(a) Current investments	26.785	0.000
(b) Inventories	304.280	218.795
(c) Trade receivables	157.517	141.566
(d) Cash and cash equivalents	42.458	31.224
(e) Short-term loans and advances	35.877	55.272
(f) Other current assets	20.860	29.221
Total Current Assets	587.777	476.078
TOTAL	1078.115	701.990

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		8.150
2] Share Application Money		0.000
3] Reserves & Surplus		287.939
4] (Accumulated Losses)		0.000
NETWORTH		296.089
LOAN FUNDS
1] Secured Loans		161.713
2] Unsecured Loans		22.093
TOTAL BORROWING		183.806
DEFERRED TAX LIABILITIES		4.947
TOTAL		484.842
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		167.318
Capital work-in-progress		0.000
INVESTMENT		84.438
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	247.141
	Sundry Debtors	73.496
	Cash & Bank Balances	28.886
	Other Current Assets	0.000
	Loans & Advances	47.766
Total Current Assets		397.289
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	69.089
	Other Current Liabilities	92.730
	Provisions	2.384
Total Current Liabilities		164.203
Net Current Assets		233.086
MISCELLANEOUS EXPENSES		0.000
TOTAL		484.842

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1818.855	1579.295	1443.028
		Other Income	5.273	6.482	35.877
		TOTAL (A)	1824.128	1585.777	1478.905
Less	EXPENSES
		Cost of materials consumed	568.642	459.289
		Purchases of stock-in-trade	285.050	250.604
		Employee benefit expense	367.062	314.492	1396.290
		Other expenses	520.863	467.763
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(30.366)	1.774
		Prior period items	(0.652)	(1.113)
		TOTAL (B)	1710.599	1492.809	1396.290
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		113.529	92.968	82.615
Less	FINANCIAL EXPENSES (D)		17.307	18.873	18.717
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		96.222	74.095	63.898
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.526	13.468	13.775
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		81.696	60.627	50.123
Less	TAX (H)		25.897	19.125	16.682
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		55.799	41.502	33.441
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		198.454	163.819	136.262
Less	APPROPRIATIONS
		Transfer to General Reserve	6.000	4.500	3.500
		Dividend of Equity Shares	2.038	2.038	2.038
		Dividend Tax	0.331	0.331	0.346
	BALANCE CARRIED TO THE B/S		245.884	198.452	163.819
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.204	6.556	3.570
	IMPORTS
		Raw Materials	145.207	74.049	91.343
		Capital Goods	9.085	6.466	1.025
	TOTAL IMPORTS		154.292	80.515	92.368
	Earnings / (Loss) Per Share (Rs.)		68.47	50.93	41.03

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.05	2.62	2.26
Net Profit Margin (PBT/Sales)	(%)	4.49	3.84	3.47
Return on Total Assets (PBT/Total Assets}	(%)	7.73	8.94	9.17
Return on Investment (ROI) (PBT/Networth)		0.13	0.18	0.17
Debt Equity Ratio (Total Debt/Networth)		0.34	0.55	0.62
Current Ratio (Current Asset/Current Liability)		1.42	1.40	2.42

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	No
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	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10399071	29/12/2012	220,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI - 400013, MAHARASHTRA, INDIA	B66388687
2	10368034	24/07/2012	40,000,000.00	CITI BANK N.A.	163, ANNA SALAI, SECOND FLOOR, CHENNAI - 600002, TAMILNADU, INDIA	B44696417
3	90301893	27/07/1994	320,000.00	CITI BANK	N A 766 ANNA SALAI, MADRAS, TAMILNADU, INDIA	-
4	90301891	18/07/1994	211,000.00	CITI BANK	N A 766 ANNA SALAI, MADRAS, TAMILNADU, INDIA	-
5	90300319	10/09/1993	15,500,000.00	BHARAT OVERSEAS BANK LTD	LARGE ADVANCES BRANCH HABEEB TOWERS 756 ANNA SALA, MADRAS - 600002, TAMILNADU, INDIA	-
6	90301851	10/04/1996 *	15,500,000.00	BHARAT OVERSEAS BANK LTD	LARGE ADVANCES BRANCH HABEEB TOWERS 756 ANNA SALA, MADRAS - 600002, TAMILNADU, INDIA	-
7	90287207	25/02/2010 *	270,200,000.00	STATE BANK OF INDIA	SIRUTHOZHIL BRANCH, NO.2, VALLUVARKOTTAM, CHENNAI - 600034, TAMILNADU, INDIA	A80401029
8	90298486	01/06/2005 *	34,000,000.00	STATE BANK OF INDIA	SIRUTHOZHIL BRANCH, MADRAS- 600034, TAMILNADU, INDIA	-
9	90301710	02/09/1994 *	66,900,000.00	STATE BANK OF INIDA	SIRUTHOZHIL BRANCH 320 VALLUVAR KOTTAM HIGH ROAD, NUNGAMBAKKAM, MADRAS- 600034, TAMILNADU, INDIA	-
10	90299874	19/06/2012 *	261,600,000.00	STATE BANK OF INDIA	LEATHER AND INTERNATIONAL BRNACH, KILPAUK, CHENNAI- 600010, TAMILNADU, INDIA	B42988634
* Date of charge modification

CAST DETAILS

CHENNAI COURT

CASE STATUS INFORMATION SYSTEM

Case Status:

Pending

Status Of:

CIVIL MISC. APPEAL

Case No.:

3129

Year :

2009

Petitioner :

COMMISSIONER OF CENTRAL EXCISE

Respondent :

M/S TABLETS INDIA LIMITED

Pet's Advocate :

M/S. T.R. SENTHIL KUMAR

Res's Advocate :

Category :

Central Excises and Salt Act, 1944 (1 of 1944)

Last Listed on:

No Date Mentioned

Case Updated on :

04.01.2012

Connected Application(s)

Application Type	Application Number	Application Year
MP	1	2009

No Connected Matter(s)

REVIEW OF OPERATIONS:

The year has shown an improved performance of the company in terms of Turnover as well as profits. When compared to the previous year the Sales and Other Income of Rs.1869.895 Millions recorded an increase of 15.51% and Profit before tax of Rs.81.696 Millions recorded 34.75%. The Export Turnover of the Company including through Merchant Exporter is Rs.294.413 Millions.

FUTURE PLANS:

The Company is planning for a growth rate of around 12% in the ensuing year and is confident of achieving the same.

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.63.90
UK Pound	1	Rs.100.47
Euro	1	Rs.84.65

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.