MIRA INFORM REPORT

Report Date :

24.09.2013

IDENTIFICATION DETAILS

Name :		MARATHON ELECTRIC MOTORS (INDIA) LIMITED (w.e.f. 17.12.2007)
Formerly Known As :		ALSTOM INDUSTRIAL PRODUCTS LIMITED
Registered Office :		58, Taratala Road, Kolkata – 700024, West Bengal
Country :		India
Financials (as on) :		31.03.2012
Date of Incorporation :		06.04.2004
Com. Reg. No.:		21-098278
Capital Investment / Paid-up Capital :		Rs. 39.864 Millions
CIN No.: [Company Identification No.]		U29120WB2004PLC098278
TAN No.: [Tax Deduction & Collection Account No.]		CALA08752C
PAN No.: [Permanent Account No.]		AAFCA5012Q
Legal Form :		A Closely Held Public Limited Liability Company
Line of Business :		Manufacturer and Marketer of Electrical Products like Motors and Industrial Fans.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (62)

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 6760000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having good track record. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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	A1	A1

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

INDIAN ECONOMIC OVERVIEW

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

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : “A”
Rating Explanation	Adequate degree of safety and low credit risk.
Date	11.06.2013

Rating Agency Name	CRISIL
Rating	Short term rating : “A1”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	11.06.2013

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 :	58, Taratala Road, Kolkata – 700024, West Bengal, India
Tel. No.:	91-33-24695560/ 24695561
Fax No.:	91-33-24698530/ 24695369
E-Mail :	memi.mktg@marathonelectric.com mktg@marathonelectric.com marathonelectric.india@marathonelectric.com
Website :	http://www.marathonelectric.com

DIRECTORS

As on 28.09.2012

Name :

Mr. Maharaj Kishen Trisal

Designation :

Director

Address :

V – 9/ 3, DLF City, Phase – 3, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

26.11.1953

Qualification :

B.TECH

Date of Appointment :

30.12.2008

DIN No. :

00059545

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	U74899DL1995PLC073261	SUDHIR GENSETS LIMITED	Director	01/03/2006	01/03/2006	-	Active	NO
2	U31909HR1994FTC032429	MARATHON ELECTRIC INDIA PRIVATE LIMITED	Director	29/09/2006	29/09/2006	-	Active	NO
3	U40101DL1997PLC088255	RBC MOTORS INDIA LIMITED	Additional director	02/11/2007	02/11/2007	-	Amalgamated	NO
4	U29120WB2004PLC098278	MARATHON ELECTRIC MOTORS (INDIA) LIMITED	Director	30/12/2008	02/11/2007	-	Active	NO
5	U70102DL2007PLC160912	SUDHIR POWER PROJECTS LIMITED	Director	30/09/2010	23/03/2010	-	Active	NO
6	L52110DL1989PLC037097	KOHINOOR FOODS LIMITED.	Additional director	10/11/2012	10/11/2012	-	Active	NO
7	L45201DL1983PLC016821	ANSAL HOUSING AND CONSTRUCTION LIMITED	Additional director	14/02/2013	14/02/2013	-	Active	NO

Name :

Mr. Sheel Kapoor

Designation :

Director

Address :

Flat – 86, Plot No.102, Jai Apartments, Patparganj, New Delhi – 110092, India

Date of Birth/Age :

02.08.1969

Qualification :

B.TECH , MBA

Date of Appointment :

30.12.2008

DIN No. :

00063765

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	U31909HR1994FTC032429	MARATHON ELECTRIC INDIA PRIVATE LIMITED	Director	29/09/2006	29/09/2006	-	Active	NO
2	U40101DL1997PLC088255	RBC MOTORS INDIA LIMITED	Additional director	02/11/2007	02/11/2007	-	Amalgamated	NO
3	U29120WB2004PLC098278	MARATHON ELECTRIC MOTORS (INDIA) LIMITED	Director	30/12/2008	02/11/2007	-	Active	NO

Name :

Prasanta Kumar Bose

Designation :

Director

Address :

West Wind, Flat 12C, BL 178, Raja S.C. Mullick Road, Kolkata – 700084, West Bengal, India

Date of Birth/Age :

21.09.1953

Qualification :

B . Tech (MECH), M.Tech (IE & OR)

Date of Appointment :

30.01.2008

DIN No. :

02050666

Name :

Scott Douglas Brown

Designation :

Director

Address :

9, Coyote CT, Madison, Wisconsin 53717

Date of Birth/Age :

24.07.1959

Date of Appointment :

23.09.2009

DIN No. :

02505852

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	U29120WB2004PLC098278	MARATHON ELECTRIC MOTORS (INDIA) LIMITED	Director	23/09/2009	16/02/2009	-	Active	NO
2	U31909HR1994FTC032429	MARATHON ELECTRIC INDIA PRIVATE LIMITED	Director	19/09/2009	16/02/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
Regal Beloit Finance BV, Nether	3986389
Dutch Horizon I LLC	1
Dutch Horizon II LLC	2
Dutch Horizon III LLC	2
Dutch Horizon IV LLC	2
Dutch Horizon V LLC	3
Dutch Horizon VI LLC	3
Total	3986402

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer of Electrical Products like Motors and Industrial Fans.

Products :

Item Code No. (ITC Code)	Product Description
85015190	Electrical Motors
84145990	Industrial Flow and Axial Flow Fans

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Motors Large Machine Unit (LMU)	Nos.	--	1,600	1,229
Low Tension (LT) motors Industrial Product Unit (IPU)	Nos.	--	31,250	28,351
Industrial Fans (IPU)	Nos.	--	100,000	61,168

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

IDBI Bank Limited, Kolkata Main Branch (Mcg), Idbi House, 44 Shakespeare Sarani, Kolkata - 700017, West Bengal, India

Facilities :

SECURED LOAN	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SHORT TERM BORROWING
Other loans and advances, others	(A) 5.383	(B) 67.490
Total	5.383	67.490
NOTE (A) Loans from bank Current Account-overdrawn (Secured by hypothecation of inventory and trade receivables) (B) Loans from bank Current Account-overdrawn (Secured by hypothecation of inventory and trade receivables)

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sell Chartered Accountants
Address :	7^th Floor, Building 10, Tower B, DLF Cyber City Complex, DLF City Phase-II, Kolkata, West Bengal, India
PAN No. :	AABFD2095B
Holding company :	Regal Beloit Finance BV (RBF), Netherland
Ultimate Holding Company :	Regal Beloit Corporation (RBC), USA
Fellow Subsidiaries :	· Marathon Electric India Private Limited CIN No.: U31909HR1994FTC032429 · Wuxi Hwada Motor Company Limited, China · Dutchi Motors BV, The Netherlands · Marathon Electric Far East Pte. Limited, Singapore · RBC Manufacturing Corporation, USA · CMG Electric Motors (Asia Pacific) Pte. Limited, Singapore · CMG Electric Motors South Africa, South Africa · Sankey Australia Pty. Limited, Australia

CAPITAL STRUCTURE

As on 31.03.2012

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3986402	Equity Shares	Rs.10/- each	Rs.39.864 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	39.864	39.864
(b) Reserves & Surplus	1650.516	1416.319
(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)	1690.380	1456.183
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	34.258	39.592
Total Non-current Liabilities (3)	34.258	39.592
(4) Current Liabilities
(a) Short term borrowings	5.383	67.490
(b) Trade payables	819.947	674.170
(c) Other current liabilities	90.038	61.949
(d) Short-term provisions	92.544	81.543
Total Current Liabilities (4)	1007.912	885.152
TOTAL	2732.550	2380.927
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	378.213	206.656
(ii) Intangible Assets	0.000	0.134
(iii) Capital work-in-progress	14.888	95.334
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	61.956	74.897
(d) Long-term Loan and Advances	74.841	100.037
(e) Other Non-current assets	2.057	2.057
Total Non-Current Assets	531.955	479.115
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	672.327	766.246
(c) Trade receivables	1380.014	1008.846
(d) Cash and cash equivalents	75.255	73.207
(e) Short-term loans and advances	72.650	53.418
(f) Other current assets	0.349	0.095
Total Current Assets	2200.595	1901.812
TOTAL	2732.550	2380.927

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		39.864
2] Share Application Money		0.000
3] Reserves & Surplus		1294.607
4] (Accumulated Losses)		0.000
NETWORTH		1334.471
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		1334.471
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		208.402
Capital work-in-progress		2.225
INVESTMENT		0.000
DEFERRED TAX ASSETS		80.514
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	443.867
	Sundry Debtors	870.758
	Cash & Bank Balances	316.676
	Other Current Assets	0.000
	Loans & Advances	138.737
Total Current Assets		1770.038
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	401.482
	Other Current Liabilities	196.953
	Provisions	128.273
Total Current Liabilities		726.708
Net Current Assets		1043.330
MISCELLANEOUS EXPENSES		0.000
TOTAL		1334.471

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3444.763	2783.261	2627.983
		Other Income	15.928	22.386	29.957
		TOTAL (A)	3460.691	2805.647	2657.940
Less	EXPENSES
		Cost of materials consumed	2341.000	2187.619
		Purchases of stock-in-trade	17.596	22.404
		Employee benefit expense	312.779	236.350
		Other expenses	360.625	333.871
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	33.641	(197.719)
		TOTAL (B)	3065.641	2582.525	2323.824
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		395.050	223.122	334.116
Less	FINANCIAL EXPENSES (D)		3.741	1.012	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		391.309	222.110	334.116
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.962	32.403	30.346
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		354.347	189.707	303.770
Less	TAX (H)		120.150	67.995	124.212
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		234.197	121.712	179.558
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	59.104	10.703	6.974
	TOTAL EARNINGS		59.104	10.703	6.974
	IMPORTS
		Capital items	33.509	81.731	4.324
		Raw materials and components	401.189	420.622	111.282
	TOTAL IMPORTS		434.698	502.353	115.606
	Earnings / (Loss) Per Share (Rs.)		58.75	30.53	45.04

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.77	4.34	6.76
Net Profit Margin (PBT/Sales)	(%)	10.29	6.82	11.56
Return on Total Assets (PBT/Total Assets}	(%)	13.34	8.58	15.35
Return on Investment (ROI) (PBT/Networth)		0.21	0.13	0.23
Debt Equity Ratio (Total Debt/Networth)		0.00	0.05	0.00
Current Ratio (Current Asset/Current Liability)		0.22	2.15	2.44

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10047328	30/04/2009 *	100,000,000.00	PUNJAB NATIONAL BANK	B.R.B.B. ROAD BRANCH, 135, B.R.B.B. ROAD, KOLKATA - 700001, WEST BENGAL, INDIA	A64044845
2	10033907	15/12/2010 *	380,000,000.00	IDBI BANK LIMITED	KOLKATA MAIN BRANCH (MCG), IDBI HOUSE, 44 SHAKESP EARE SARANI, KOLKATA - 700017, WEST BENGAL, INDIA	B01237346

* Date of charge modification

NOTE

The registered office of the company has been shifted from D-2, Gillander House, 8, N.S. Road, Kolkata – 700001, West Bengal to the present address w.e.f. 18.10.2006.

OPERATIONS REVIEW

The financial year 2011-12 was a reasonably good year for the Company. This year their revenue grew by 23.7% compared to the previous financial year. Also the Net Profit before taxation and Operational Profit grew by 87.3% and 77.8% respectively, even though the commodity prices remained at a high level throughout the year. Their new Lamination manufacturing as well as Fabrication Plants, which were set up in AEI Factory, went fully operational in this year. This has contributed to the overall profit growth and Quality of the product. Also, this has reduced the delivery time for large HT and LT Motors increasing the turnover by almost 20%. However, during the third and fourth quarters of 2011-12, the Indian market started slowing down because of various reasons like environmental clearance problems for projects; coal linkage problems to Power Plants, high interest rate etc. This resulted in postponement and cancellation of many Power Sector and Infrastructural Projects where they supply their products either directly or through OEMs. As a result of this, coupled with the faster execution of orders in hand owing to the in house manufacturing of laminations and fabrications, the order book started dwindling and was not at a satisfactory level when they ended the year 2011-12. The Company is trying to take suitable actions to counter this market slowdown as far as possible and has decided to expand its customer base by tapping new markets and organising visits and technical seminars.

The publication of its monthly Newsletter carrying information on various technical aspects of products/processes as well as new product introductions in the market, has been started in this year to improve communications with their customers.

The company also took up a number of cost productivity projects and was able to save a good amount of cost. Various Projects carried out under Lean Six Sigma and Kaizen Activities gave the Company remarkable benefits. The efforts which were started a few years ago in the area of EHS (Environment Health and Safety) activities is now strongly embedded in the Company culture and as a result, in 2011-2012, the Company has won the Regal Beloit SAFE Award for the second consecutive year.

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2012	31.03.2011
a. Claims against the company not acknowledged as debts towards:*
Demands raised by Income tax authorities	28.575	9.154
Demands raised by Sales tax authorities	67.239	21.414
Demands raised by Excise authorities	59.902	61.403
Demands in respect of leased premises	9.438	9.438
Total	165.154	101.409

* No provision is considered necessary since the Company expects favourable decisions

FIXED ASSETS

v TANGIBLE ASSETS

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Office equipment

· Computer equipments

v INTANGIBLE ASSETS

· Goodwill

· 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.62.52
UK Pound	1	Rs.100.26
Euro	1	Rs.84.67

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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		62

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.