MIRA INFORM REPORT

Report Date :

21.09.2013

IDENTIFICATION DETAILS

Name :	MPI MACHINES LIMITED
Formerly Known As :	MP CAB-COND MACHINES LIMITED M.P. CAB-COND MACHINES PRIVATE LIMITED
Registered Office :	MPI House, Gola Ka Mandir, Airport Road, Gwalior – 474 005, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.09.1987
Com. Reg. No.:	10-004130
Capital Investment / Paid-up Capital :	Rs.3.500 millions
CIN No.: [Company Identification No.]	U31200MP1987PLC004130
TAN No.: [Tax Deduction & Collection Account No.]	BPLM03661A/ BPLM01426F
PAN No.: [Permanent Account No.]	AACCM0029N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Wire Making Machines and Industrial Plants Machines
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 135000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in profit and sales of the company in financial year 2012. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

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

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

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

INDIAN ECONOMIC OVERVIEW

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

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

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

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

Management non-cooperative

(Tel. No.: 91-751-4048549)

LOCATIONS

Registered Office/ Factory :	MPI House, Gola Ka Mandir, Airport Road, Gwalior – 474 005, Madhya Pradesh, India
Tel. No.:	91-751-4048549/ 4048135/ 2361002/ 4097200
Mobile No.:	91-9993075522 (Mr. Anil Gupta)
Fax No.:	91-751-2366979/ 4015204/ 4048008
E-Mail :	mpihouse@airtelmail.in sales@mpimachines.com venkatmpcab@yahoo.com
Website :	http://www.mpigwl.com
Area :	3500 sq. ft.
Location :	Owned
Branch Office :	J-60, First Floor, Lajpat Nagar – III, New Delhi – 110024, Delhi, India
Tel. No.:	91-11-29834826
Fax No.:	91-11-29833771

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Ashok Kashiram Gupta

Designation :

Whole-Time Director

Address :

B-7, Basant Vihar, Gwalior – 474 007, Madhya Pradesh, India

Date of Birth/Age :

10.02.1952

Date of Appointment :

01.04.2011

DIN No.:

00023536

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U15520MP1981PTC001841	SAGAR AVENUES PRIVATE LIMITED	Director	15/07/1986	15/07/1986	-	Active	NO
2	U31200MP1987PLC004130	MPI MACHINES LIMITED	Whole-time director	01/04/2011	14/09/1987	-	Active	NO
3	U74210MP1988PTC004911	TILAK POWER CABLES PRIVATE LIMITED	Director	25/11/1988	25/11/1988	-	Active	NO
4	U31300MP1978PLC001437	KRISHNA ELECTRICAL INDUSTRIES LIMITED	Director	01/01/1992	01/01/1992	-	Active	NO
5	L31200MP1994PLC008359	M.P. TELELINKS LIMITED	Director	27/05/1994	27/05/1994	-	Active	NO
6	U31102MP1999PTC013446	GWALIOR TRANS-CON PRIVATE LIMITED	Director	01/04/1999	01/04/1999	-	Active	NO
7	U67120MP1999PTC013872	A.G.R. SECURITIES PRIVATE LIMITED	Director	01/12/1999	01/12/1999	-	Active	NO
8	U45201MP2000PTC014080	DURGA INDUSTRIES PRIVATE LIMITED	Director	02/03/2000	02/03/2000	-	Active	NO

Name :

Mr. Anil Kashiram Gupta

Designation :

Whole-Time Director

Address :

B-14, Basant Vihar, Gwalior – 474 007, Madhya Pradesh, India

Date of Birth/Age :

06.03.1957

Date of Appointment :

01.04.2011

DIN No.:

01142560

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U15520MP1981PTC001841	SAGAR AVENUES PRIVATE LIMITED	Director	11/03/1985	11/03/1985	-	Active	NO
2	U31200MP1987PLC004130	MPI MACHINES LIMITED	Whole-time director	01/04/2011	14/09/1987	-	Active	NO
3	U74210MP1988PTC004911	TILAK POWER CABLES PRIVATE LIMITED	Director	25/11/1988	25/11/1988	-	Active	NO
4	U31300MP1978PLC001437	KRISHNA ELECTRICAL INDUSTRIES LIMITED	Director	14/01/1994	14/01/1994	-	Active	NO
5	L31200MP1994PLC008359	M.P. TELELINKS LIMITED	Director	27/05/1994	27/05/1994	-	Active	NO
6	U31102MP1999PTC013446	GWALIOR TRANS-CON PRIVATE LIMITED	Director	01/04/1999	01/04/1999	-	Active	NO
7	U65910MP2000PTC014091	DART SECURITIES PRIVATE LIMITED	Director	07/03/2000	07/03/2000	-	Active	NO

Name :

Mr. Ajay Kashiram Gupta

Designation :

Director

Address :

B-5, Basant Vihar, Gwalior – 474 007, Madhya Pradesh, India

Date of Birth/Age :

06.02.1963

Date of Appointment :

14.09.1987

DIN No.:

00024975

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U31200MP1987PLC004130	MPI MACHINES LIMITED	Director	14/09/1987	14/09/1987	-	Active	NO
2	U31300MP1978PLC001437	KRISHNA ELECTRICAL INDUSTRIES LIMITED	Managing director	29/09/2012	07/04/1988	-	Active	NO
3	U74210MP1988PTC004911	TILAK POWER CABLES PRIVATE LIMITED	Director	10/02/1992	10/02/1992	-	Active	NO
4	L31200MP1994PLC008359	M.P. TELELINKS LIMITED	Director	27/05/1994	27/05/1994	-	Active	NO
5	U31102MP1999PTC013446	GWALIOR TRANS-CON PRIVATE LIMITED	Director	01/04/1999	01/04/1999	-	Active	NO
6	U67120MP1999PTC013873	A.N.K.SECURITIES PRIVATE LIMITED	Director	01/12/1999	01/12/1999	-	Active	NO
7	U45201MP2000PTC014080	DURGA INDUSTRIES PRIVATE LIMITED	Director	02/03/2000	02/03/2000	-	Active	NO
8	U15520MP1981PTC001841	SAGAR AVENUES PRIVATE LIMITED	Director	27/09/2012	21/10/2011	-	Active	NO

Name :

Tusharika Gupta

Designation :

Additional Director

Address :

14-B, Basant Vihar, Gwalior – 474 007, Madhya Pradesh, India

Date of Birth/Age :

03.05.1983

Date of Appointment :

28.03.2013

DIN No.:

06538809

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Ashok Gupta	1000
Ajay Gupta	56800
Anil Gupta	41400
Ashok Gupta, Karta of Ashok Gupta and Sons	35800
Gita Gupta	23000
Usha Gupta	3000
Renu Gupta	7500
Kashiram Gupta, Karta of Kashiram Gupta and Sons	20000
Ruchi Goyal	10000
Tusharika Gupta	11000
Deepshika Gupta	15500
Rahul Gupta	5000
Akriti Gupta	8000
Namrata Gupta	10000
Kashiram Gupta	102000
Total	350000

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wire Making Machines and Industrial Plant and Machines.

Products :

Product Description	Item Code
Cable Machines	84794000

· Wire Drawing Machine

· Wire Stranding Machine

· Wire / Strip Armouring Machine

· Steel Tap Armouring Machine

· Drum Twister for Power Cable Machine

· Cable Sheathing and Jacketing Line

· Cable Rewind Line

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	State Bank of India, Commercial Branch, City Centre, Gwalior – 474 011, Madhya Pradesh, India

Banking Relations :	--
Auditors :
Name :	V. Bapna and Company Chartered Accountants
Address :	Sarafa Bazar, Gwalior – 474 005, Madhya Pradesh, India
PAN No.:	AABFV3800E

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/-each	Rs.4.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs.10/-each	Rs.3.500 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	3.500	3.500
(b) Reserves & Surplus	30.145	28.620
(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)	33.645	32.120
(3) Non-Current Liabilities
(a) Long-term borrowings	4.677	4.099
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	4.677	4.099
(4) Current Liabilities
(a) Short term borrowings	12.302	10.186
(b) Trade payables	7.323	13.908
(c) Other current liabilities	20.506	18.280
(d) Short-term provisions	0.226	0.203
Total Current Liabilities (4)	40.357	42.577
TOTAL	78.679	78.796
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	9.462	9.646
(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	2.376	2.376
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	5.409	5.409
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	17.247	17.431
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	32.722	35.666
(c) Trade receivables	14.583	14.743
(d) Cash and cash equivalents	9.029	5.696
(e) Short-term loans and advances	2.309	1.592
(f) Other current assets	2.789	3.668
Total Current Assets	61.432	61.365
TOTAL	78.679	78.796

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.500
2] Share Application Money		0.000
3] Reserves & Surplus		26.755
4] (Accumulated Losses)		0.000
NETWORTH		30.255
LOAN FUNDS
1] Secured Loans		4.965
2] Unsecured Loans		3.800
TOTAL BORROWING		8.765
DEFERRED TAX LIABILITIES		0.000
TOTAL		39.020
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.448
Capital work-in-progress		0.000
INVESTMENT		2.376
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.463
	Sundry Debtors	16.908
	Cash & Bank Balances	4.234
	Other Current Assets	0.409
	Loans & Advances	9.946
Total Current Assets		48.960
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.055
	Other Current Liabilities	13.509
	Provisions	0.200
Total Current Liabilities		22.764
Net Current Assets		26.196
MISCELLANEOUS EXPENSES		0.000
TOTAL		39.020

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	93.758	95.254	135.641
		Other Income	0.002	0.001	0.530
		TOTAL (A)	93.760	95.255	136.171
Less	EXPENSES
		Cost of materials consumed	63.631	73.601	126.550
		Changes in inventories of finished goods and stock in process	0.390	(11.972)
		Employee benefit expense	6.114	5.862
		Other expenses	17.359	20.667
		TOTAL (B)	87.494	88.158	126.550
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.265	7.097	9.621
Less	FINANCIAL EXPENSES (D)		2.454	2.629	2.849
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.811	4.468	6.772
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.487	1.688	1.735
	PROFIT BEFORE TAX (E-F) (G)		2.324	2.780	5.037
Less	TAX (H)		0.800	0.915	0.666
	PROFIT AFTER TAX (G-H) (I)		1.524	1.865	4.371
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		17.297	15.432	NA
	BALANCE CARRIED TO THE B/S		18.821	17.297	NA
	EARNINGS IN FOREIGN CURRENCY
		Export of goods	2.267	16.257	59.103
	TOTAL EARNINGS		2.267	16.257	59.103
	IMPORTS
		Raw Materials	NA	5.533	8.466
		Capital Goods	NA	0.000	0.746
		Others	NA	1.547	1.167
	TOTAL IMPORTS		NA	7.080	10.379
	Earnings Per Share (Rs.)		4.35	5.33	12.49

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.63	1.96	3.21
Net Profit Margin (PBT/Sales)	(%)	2.48	2.92	3.71
Return on Total Assets (PBT/Total Assets}	(%)	3.05	3.64	8.48
Return on Investment (ROI) (PBT/Networth)		0.07	0.09	0.17
Debt Equity Ratio (Total Debt/Networth)		0.50	0.44	0.29
Current Ratio (Current Asset/Current Liability)		1.52	2.21	2.15

LOCAL AGENCY FURTHER INFORMATION

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	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	--
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	No

PERFORMANCE

The company has clocked revenue from operations of Rs.93.757 millions as compared to Rs.95.253 millions in the previous year. The reduction is an occurrence in the normal operation cycle of the company, contributing marginal downward curve in the business growth of the company. It is not out of place to mention, that the company had to experience the global upheaval in the industrial scenario, faced with huge contraction in the demands for the capital equipments in both the domestic as well as export markets. The power projects in the Indian economy have been affected by their financial difficulties and hence, procurement of capital equipments including cable machines have been either halted or reduced and ongoing power projects have slowed down their completion of the projects and consequently, placement of orders for capital equipment purchases–cable machines has been reduced, causing an impact in the business cycle of the company.

YEARS AHEAD

The Government of India after a year that has undergone severe financial constraints faced with inflationary forces and significant plummeting growth in the allocation and application of funds for procurement of capital equipments by the power projects, in the midst of overall industrial recession in the domestic as well as external markets, has now slowly been initiating various economic measures to revive the market and it is optimistic to note that in the months ahead, the revival of market forces would definitely extend a helping hand to the company to look forward, expansion of market demand for the purchase of power capital equipments –cable machines.

The Government of India is in the process of introducing a novel plan of action for restructuring financially affected SEBs by which, the rehabilitation scheme would infuse additional capital to SEBs, as it would enable them to strengthen their net worth and in a better position to seek financial credit limits from banks/FIs to increase their procurement of cable machines and other capital equipments towards speeding up the power projects that are in halted stages due to paucity of funds.

It is further cherishing to note that the company in the beginning months of FY 2012-13, has executed sizable export orders to Uganda and the company in addition to strengthening its stand in the domestic market, is also focused to explore the export demand particularly in the African countries, as this geographical area is gaining momentum to find its entry into the industrial revolution and the silver lining is that the company is not akin to the foreign markets as it has been executing export orders continuously over a decade.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Unexpired bank guarantee	7.511	20.079

FIXED ASSETS:

· Building

· Plant and Machine

· Foundation Fittings

· Electric Fittings

· Laboratory Equipments

· Office Equipments

· Air Conditioner

· Furniture and Fixture

· Vehicles

· Computers

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.62.24
UK Pound	1	Rs.99.90
Euro	1	Rs.84.23

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.