MIRA INFORM REPORT

Report Date :

24.09.2013

Tel. No.:	91-79-25840233/ 25842387
Fax No.:	91-79-25841634

IDENTIFICATION DETAILS

Name :	THERMOTECH SYSTEMS LIMITED
Registered Office :	Plot No. 2608, Phase 4, GIDC, Vatva, Ahmedabad - 382445, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.07.1995
Com. Reg. No.:	04-26596
Capital Investment / Paid-up Capital :	Rs.5.600 Millions
CIN No.: [Company Identification No.]	U26933GJ1995PLC026596
TAN No.: [Tax Deduction & Collection Account No.]	AHMT00213D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Industrial Heating Equipments and Heating Systems.
No. of Employees :	Information declined by the management

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 120000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exists
Comments :	Subject is an established company having satisfactory track record. Trade relations are fair. Business is active. Payment terms are usually correct. The company can be considered for business dealing at usual trade terms and condition.

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 BY

Name :	Mr. Rakeshbhai Kanubhai Shah
Designation :	Director
Contact No.:	91- 9824037271
Date :	21.09.2013

LOCATIONS

Registered Office / Factory :	Plot No. 2608, Phase 4, GIDC, Vatva, Ahmedabad-382445, Gujarat, India
Tel. No.:	91-79-25840233/ 25842387
Mobile No. :	91- 9824037271 (Mr. Rakeshbhai Kanubhai Shah)
Fax No.:	91-79-25841634
E-Mail :	thermotech@icenet.net ketanrm@hotmail.com
Website :	http://www.thermotechsystems.com
Location :	Owned

DIRECTORS

As on 29.09.2012

Name :

Mr. Kanubhai Jethalal Shah

Designation :

Chairman and Managing Director

Address :

8, Ghanshyam Baug Society, Uttamnagar, Maninagar, Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

09.09.1939

Date of Appointment :

01.07.2012

DIN No.:

00996831

Name :

Mr. Rajnibhai Jethalal Shah

Designation :

Managing Director

Address :

14, Mangalvilla Apartments, Vadnagra Patidar Society, Rambaug Maninagar, Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

13.09.1949

Date of Appointment :

01.07.2012

DIN No.:

00038744

Name :

Mr. Rakeshbhai Kanubhai Shah

Designation :

Whole Time Director

Address :

4^th Floor, Utsav Complex, Patel Bhuvan, Maninagar, Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

22.04.1963

Date of Appointment :

01.09.2011

DIN No.:

01355664

Name :

Mr. Kinjal Rajnibhai Shah

Designation :

Whole Time Director

Address :

14, Mangalvilla Apartments, Vadnagra Patidar Society, Rambaug Maninagar, Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

02.01.1980

Date of Appointment :

01.09.2011

DIN No.:

01355609

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	U26933GJ1995PLC026596	THERMOTECH SYSTEMS LIMITED	Whole-time director	01-09-11	01-04-05	-	Active	NO
2	U23100GJ2005PTC047089	W2W OILTECH PRIVATE LIMITED	Director	17-11-05	17-11-05	-	Active	NO

Name :

Mr. Mahendrabhai Chandulal Shah

Designation :

Whole Time Director

Address :

49, Deepmala Bunglows, Ghodasar, Maninagar, Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

04.06.1957

Date of Appointment :

01.07.2012

DIN No.:

01355631

Name :

Mr. Jigneshbhai Mahendrabhai Shah

Designation :

Whole Time Director

Address :

43, Deepmala Bunglows, Ghodasar, Maninagar, Ahmedabad-380008, Gujarat, India

Date of Birth/Age :

13.03.1980

Date of Appointment :

01.07.2012

DIN No.:

01355654

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Kanubhai Jethalal Shah	64510
Rakeshbhai Kanubhai Shah	34970
Premilaben Kanubhai Shah	15010
Gitaben Rakeshbhai Shah	30510
Rajnibhai Jethalal Shah	37480
Prafulaben Rajnibhai Shah	39010
Ripal Rajnibhai Shah	5010
Mahendrabhai Chandulal Shah	41500
Jignesh Mahendrabhai Shah	32500
Kinjal Rajnikant Shah	67500
Rakeshbhai kanubhai Shah (HUF)	10000
Sarikaben bhadreshbhai Shah	66000
Ripalben Kinjalbhai Shah	70000
Ripalben Pritnbhai Shah	5000
Pankajben Mahendrabhai Shah	21500
Mahendrabhai Chandulala Shah (HUF)	10000
Jagneshbhai Mahendrabhai Shah (HUF)	6500
Kanubhai Jethalal Shah (HUF)	3000
Total	560000

As on 28.03.2013

Names of Shareholders Allottees	No. of Shares Allotted
Kanubhai Jethalal Shah	88000
Rakeshbhai Kanubhai Shah	88000
Rajnibhai Jethalal Shah	88000
Mahendrabhai Chandulal Shah	44000
Jignesh Mahendrabhai Shah	44000
Kinjal Rajnikant Shah	88000
Total	440000

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Industrial Heating Equipments and Heating Systems.

Products :

Product Description	ITC Code
Thermic Fluid Heater	8514
Steam Boiler	8402
Hot Air/ Water Generator	8402

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Actual Production
Thermic Fluid Heater, Steam Boiler and Hot Air/Water Generator.	106

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Bank of Baroda, Vatva Industrial State, Gidc Vatva Phase Iv,, Ahmedabad - 382445, Gujarat, India

· ING Vysya Bank Limited, P.B.No.4038,Chanakya Building, Near Dinesh Hall, Off Ashram Road,, Ahmedabad - 380009, Gujarat, India

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

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Term Loan/WCTL From ING Vysya Bank Limited LY HDFC Bank	4.336	3.051
Vehicle Loans Against H.P. of Vehicles
HDFC Bank	0.000	0.184
Tata Finance Limited	0.000	0.061
SHORT TERM BORROWINGS
From HDFC Bank - Cash Credit	0.000	11.021
From ING Vysya Bank - Cash Credit/Packing Credit	30.000	0.000
Total	34.336	14.317
Note : (i) Term Loans from ING Vysya Bank Limited is Secured Against Equitable Mortgage of Land and Factory Buildings, Hypothecation of Plant and Machineries, Stocks, Bookdebts etc. and further Guaanteed by the Directors of the Company. (ii) Outstanding Term Loan and Loans and advances from related Parties are repayable over Two/Three years from 31st March, 2012.

Banking Relations :	---
Auditors :
Name :	K.R. Majmudar and Associates Chartered Accountants
Address :	312, Tulsi Complex, Mithakhali Six Roads, Navrangpura, Ahmedabad-380009, Gujarat, India
PAN No.:	ABDPM0180F

CAPITAL STRUCTURE

After 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
560000	Equity Shares	Rs.10/- each	Rs.5.600 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	5.600	5.600
(b) Reserves & Surplus	25.355	19.780
(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)	30.955	25.380
(3) Non-Current Liabilities
(a) long-term borrowings	15.389	12.039
(b) Deferred tax liabilities (Net)	2.094	1.634
(c) Other long term liabilities	10.046	4.464
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	27.529	18.137
(4) Current Liabilities
(a) Short term borrowings	30.000	11.021
(b) Trade payables	34.383	49.384
(c) Other current liabilities	46.710	17.956
(d) Short-term provisions	2.575	2.277
Total Current Liabilities (4)	113.668	80.638
TOTAL	172.152	124.155
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	25.705	25.361
(ii) Intangible Assets	0.646	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	3.000	8.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.359	0.383
(e) Other Non-current assets	6.238	4.164
Total Non-Current Assets	35.948	37.908
(2) Current assets
(a) Current investments	5.000	0.018
(b) Inventories	60.692	46.564
(c) Trade receivables	25.618	21.426
(d) Cash and cash equivalents	22.293	6.618
(e) Short-term loans and advances	22.601	11.621
(f) Other current assets	0.000	0.000
Total Current Assets	136.204	86.247
TOTAL	172.152	124.155

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5.600
2] Share Application Money		0.000
3] Reserves & Surplus		17.605
4] (Accumulated Losses)		0.000
NETWORTH		23.205
LOAN FUNDS
1] Secured Loans		10.185
2] Unsecured Loans		8.123
TOTAL BORROWING		18.308
DEFERRED TAX LIABILITIES		1.274
TOTAL		42.787
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.883
Capital work-in-progress		0.000
INVESTMENT		5.018
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.542
	Sundry Debtors	24.360
	Cash & Bank Balances	7.115
	Other Current Assets	0.360
	Loans & Advances	11.308
Total Current Assets		63.685
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.889
	Other Current Liabilities	13.132
	Provisions	2.778
Total Current Liabilities		49.799
Net Current Assets		13.886
MISCELLANEOUS EXPENSES		0.000
TOTAL		42.787

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	202.022	154.230	129.133
		Other Income	0.797	0.832	8.949
		TOTAL (A)	202.819	155.062	138.082
Less	EXPENSES
		Cost of materials consumed	133.365	110.820
		Employee benefits expense	4.056	3.522	126.422
		Other expenses	51.437	33.009
		TOTAL (B)	188.858	147.351	126.422
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.961	7.711	11.660
Less	FINANCIAL EXPENSES (D)		4.459	2.735	1.895
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.502	4.976	9.765
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.627	1.472	1.231
	PROFIT BEFORE TAX (E-F) (G)		7.875	3.504	8.532
Less	TAX (H)		1.974	1.003	1.782
	PROFIT AFTER TAX (G-H) (I)		5.901	2.501	6.749
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.219	11.345	5.224
Less	APPROPRIATIONS
		Transfer to General Reserve	0.300	0.300	0.300
		Dividend	0.280	0.280	0.280
		Tax on Dividend	0.045	0.047	0.048
	BALANCE CARRIED TO THE B/S		18.495	13.219	11.345
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	36.449	4.860	26.366
	TOTAL EARNINGS		36.449	4.860	26.366
	IMPORTS
		Raw Materials	7.601	2.428	NA
	TOTAL IMPORTS		7.601	2.428	NA
	Earnings Per Share (Rs.)		10.54	4.47	12.60

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.91	1.61	4.89
Net Profit Margin (PBT/Sales)	(%)	3.90	2.27	6.61
Return on Total Assets (PBT/Total Assets}	(%)	4.66	3.02	9.74
Return on Investment (ROI) (PBT/Networth)		0.25	0.14	0.37
Debt Equity Ratio (Total Debt /Networth)		1.47	0.91	0.79
Current Ratio (Current Asset/Current Liability)		1.20	1.07	1.28

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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]	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

LITIGATIONS DETAILS

IN THE HIGH COURT OF DELHI AT NEW DELHI

CS(OS) 953/2010 and I.As. 16182/2010, 1035/2011

M/S THERMAX LIMITED ..... Plaintiff

hrough Mr. N.K. Bhardwaj with Mr. Bikash Ghorai, Advocates

versus

M/S THERMOTECH SYSTEMS LIMITED and ANR..... Defendants

Through Mrs. Pratibha M. Singh with

 Mr. Ashutosh Kumar, Advocates

CORAM:

HON'BLE MR. JUSTICE MANMOHAN

ORDER

29.04.2013

It is stated that Dr. Mohan Dewan, learned counsel for the plaintiff is unwell.

In the interest of justice, adjourned to 25th and 26th September, 2013 at 2.30 p.m. The next date of hearing, i.e., 30th April, 2013 is cancelled.

MANMOHAN, J

APRIL 29, 2013

FINANCIAL RESULT

The company has effected Gross Sales of Rs.214.929 Millions during the year ended 31^st March, 2012.

After providing for Current Tax, Deferred Income Tax and all other expenditure, the company has earned a net profit of Rs. 5.901 Millions during the year from which appropriation for Dividend @ 5% Rs. 0.280 Million Dividend Distribution Tax Rs. 0.045 Million and Transfer to General Reserve Rs.0.300 Million are proposed to be made.

The working results of the first few months of the current year are highly encouraging.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Loans and Advances from Related Parties
Geetaben R Shah	0.027	0.024
Jigneshbhai M Shah	0.813	0.623
Jigneshbhai M Shah (H.U.F)	0.002	0.002
Kanubhai J. Shah (H.U.F)	0.273	0.248
Kanubhai J. Shah (Promoter Director)	1.075	0.688
Kinjalbhai R. Shah	1.918	1.452
Mahendrabhai C. Shah (H.U.F)	0.000	0.000
Mahendrabhai C. Shah (Promoter Director)	1.631	1.306
Pankajben M. Shah	0.002	0.002
Prafulaben R. Shah	1.084	1.120
Premilaben K. Shah	0.028	0.025
Rajnibhai J. Shah (H.U.F)	0.521	0.472
Rajnibhai J. Shah (Promoter Director)	0.952	0.598
Rakeshbhai K. Shah	1.617	1.179
Rakeshbhai K. Shah (H.U.F)	1.024	0.928
Ripalben Kinjalbhai Shah	0.024	0.021
Ripalben Pritenbhai Shah	0.002	0.001
Sarikaben B Shah	0.060	0.054
Total	11.053	8.743

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10441569	08/08/2013	72,113,000.00	BANK OF BARODA	VATVA INDUSTRIAL STATE, GIDC VATVA PHASE IV, AHMEDABAD, GUJARAT - 382445, INDIA	B81438798
2	10302950	28/06/2011	38,900,000.00	ING VYSYA BANK LIMITED	P.B.NO.4038, CHANAKYA BUILDING, NEAR DINESH HALL, OFF ASHRAM ROAD, AHMEDABAD, GUJARAT - 380009, INDIA	B19089887

* Date of charge modification

FIXED ASSETS

· Land

· Factory Building

· Office Building

· Furniture and Fixture

· Plant and Machinery

· Office Equipment

· Computer

· Electrical Installation

· Laboratory Equipment

· Vehicles

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 records 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.4.67

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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
DEFAULTER
--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

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.