MIRA INFORM REPORT

Report Date :

25.09.2013

IDENTIFICATION DETAILS

Name :	ELGI ELECTRIC AND INDUSTRIES LIMITED (w,e,f,05.10.2001)
Formerly Known As :	FESTO ELGI PRIVATE LIMITED
Registered Office :	Elgi Towers, 737-D, Green Fields, Puliakulam Road, Coimbatore – 641 045, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.04.1963
Com. Reg. No.:	18-000487
Capital Investment / Paid-up Capital :	Rs.47.500 Millions
CIN No.: [Company Identification No.]	U31200TZ1963PLC000487
TAN No.: [Tax Deduction & Collection Account No.]	CMBE03026C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Electric Motor, Over Head Traveling Cleaner and Alternator System
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 239000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company has seen a better growth in its sales turnover as well as net profitability during 2013. The rating take into consideration the establish and reputed customer base e.g. – Siemens Limited, Indian Railways etc. Trade relations are fair. Business is active. Payment terms reported as slow but correct. In view of strong percentage by virtue of it belonging to the renowned Coimbatore based “Sara Elgi Group” and the operational and financial support extended by the group, the subject 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	IRCA
Rating	Long term fund based facilities =”BB”
Rating Explanation	Moderate risk of default
Date	June 2012

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 :	Elgi Towers, 737-D, Green Fields, Puliakulam Road, Coimbatore – 641 045, Tamilnadu, India
Tel. No.:	91-422-2311711
Fax No.:	91-422-2314411
E-Mail :	eeil@eeh.saraelgi.com rmdmarketing@eeh.saraelgi.com texmarketing@eeh.saraelgi.com
Website :	www.elgielectric.com
Factory :	Mullipadi Village, Tamarai Kulam, P O Pollachi Taluk, Coimbatore – 642 109, Tamil Nadu, India
	91-425-9259351/ 352/ 353
	91-425-9259212
Branches :	Located at: · Bangalore E-Mail: eeilblr@eeh.saraelgi.com · Hyderabad E-Mail: eeilhyd@eeh.saraelgi.com · Kolkata E-Mail: eeilkol@eeh.saraelgi.com · Madurai E-Mail: eeilmadurai@eeh.saraelgi.com · Mumbai E-Mail:eeilmumbai@eeh.saraelgi.com

DIRECTORS

AS ON 31.07.2013

Name :

Mr. Sumanth Ramamurthi

Designation :

Director

Address :

74, Appusamy Layout, Red Fields, Coimbatore – 641 018, Tamil Nadu, India

Date of Birth/Age :

12.08.1959

Date of Appointment :

14.04.2008

DIN :

00002773

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	U29253TZ1981PLC001104	ELGI ULTRA INDUSTRIES LIMITED	Director	27-04-84	27-04-84	Active	NO
2	U31200TZ1963PLC000487	ELGI ELECTRIC AND INDUSTRIES LIMITED	Director	14-04-08	06-10-88	Active	NO
3	L17111TZ1962PLC001183	PRECOT MERIDIAN LIMITED	Director	22-02-92	22-02-92	Active	NO
4	L17111TZ1962PLC001200	SUPER SPINNING MILLS LIMITED	Managing director	01-04-11	22-02-92	Active	NO
5	U65993TZ1993PTC010451	SARA ELGI INSURANCE ADVISORY SERVICES PRIVATE LIMITED	Director	24-02-93	24-02-93	Active	NO
6	U01211TZ1984PLC001522	SUPER FARM PRODUCTS LIMITED	Director	13-03-93	13-03-93	Active	NO
7	U31100TZ1995PLC006403	SARA ELGI INDUSTRIES LIMITED	Director	03-08-95	03-08-95	Active	NO
8	U45201TZ1996PLC007037	ELGI BUILDING PRODUCTS LIMITED	Director	15-03-96	15-03-96	Active	NO
9	U67120TZ1993PLC004314	SARA ELGI INDUSTRIAL RESEARCH AND DEVELOPEMENT LIMITED	Director	30-07-01	30-07-01	Active	NO
10	U17111TZ2005PLC012229	SUPER SARA TEXTILES LIMITED	Director	19-10-05	19-10-05	Active	NO
11	L18100TZ1981PLC013940	KAKATIYA TEXTILES LTD	Managing director	30-05-11	30-06-06	Active	NO
12	U29197TZ2001PLC009863	SARA ELGI ENVIROTECH LIMITED	Director	30-09-08	30-07-08	Active	NO
13	U05110TZ1980PLC000989	SARA TRADING AND INDUSTRIAL SERVICES LIMITED	Director	30-09-08	30-08-08	Active	NO
14	U28111TZ2003PLC010797	SARA ELGI ARTERIORS LIMITED	Director	30-09-08	30-08-08	Active	NO

Name :

Mr. Chattapuram Viswanathan Parameswaran

Designation :

Director

Date of Birth/Age :

15.10.1944

Address :

T-1, Vishranth, 70, Solembedu Road, Ambattur (OT), Chennai – 600 053, Tamilnadu, India

Date of Appointment :

27.08.2012

DIN No.:

02651751

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	U51909TN1995PTC030625	EMDI IMPEX PRIVATE LIMITED	Director	05-03-04	05-03-04	Active	NO
2	U31200TZ1963PLC000487	ELGI ELECTRIC AND INDUSTRIES LIMITED	Director	27-08-12	30-06-12	Active	NO

Name :

Mr. Ramaswamy Raghupati

Designation :

Director

Address :

7/3A, New No.10, Vidhya Nagar, Civilaerodrom, Coimbatore – 641 014, Tamilnadu, India

Date of Birth/Age :

21.11.1946

Date of Appointment :

19.03.2010

DIN :

02799882

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	U31200TZ1963PLC000487	ELGI ELECTRIC AND INDUSTRIES LIMITED	Director	19-03-10	17-09-09	Active	NO

MAJOR SHAREHOLDERS

AS ON 31.07.2013

Names of Shareholders	No. of Shares
Chitra D. Vidyaprakash	16800
N. Krishnasamraj Ranganayaki	7950
Sumanth Ramamurthi	980000
Master Sanjay Krishna Ramamurthy	100000
Hemlatha Ramamurthi	778400
Minor Nivedita Lakshmi Narayanaswamy	60050
Master Nikhil Govind Ramamurthi	400
Sumanth Ramamurthi (Managing Trustee) Nikhil Govind Ramamurthi Family Trust	252000
Sumanth Ramamurthi (Managing Trustee) Sanjay Krishna Ramamurthi Family Trust	252000
Super Spinning Mills Limited, India	860000
Arjun Prakash	60000
Nithya Vidhya Prakash	60000
Indralakshmi Vidhya Prakash	60000
Ajeyavel Narayanasamy	60000
V. Soundararajan	290000
V. Rajsri	400
Sara Elgi Insurance Advisory Services Private Limited, India	456000
Sara Elgi Industrial Research and Development Limited, India	456000
Total	4750000

Equity Share Break up (Percentage of Total Equity)

AS ON 31.07.2013

Category	Percentage
Bodies corporate	37.31
Directors or relatives of Directors	50.26
Other top fifty shareholders	12.43
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Electric Motor, Over Head Traveling Cleaner and Alternator System

Products :

· Textile

· Motors

Product Description	Item Code (ITC Code No.)
Electric Motor	8501.00
Overhead Traveling Cleaner	8448.10
Alternator	8501.00

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

· State Bank of India

· Corporation Bank

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Working Capital Loans
From Banks	3.524	83.294
Total	3.524	83.294

NOTE:

Secured Loan Details:

Open Cash Credit: from State Bank of India (Limit Rs.50.000 Millions @ 14.75% Interest), Corporation Bank (Limit Rs.45.000 Millions @ 14.20%) and HDFC (Limit is Rs.30.000 Millions @ 17.5%) are secured by hypothecation of raw materials, stock-in-process, finished goods, spares and book debts on pari passu basis.

The said loans are further secured by an equitable mortgage subject to prior charge in favour of SBI on the company’s immovable properties and hypothecation of plant and machinery.

Collateral Security: 1. Land and Industrial Building in SF No.34,35,36/1C, 36/1B, 36/4 in Mullupadi Village, Thamaraikulam post adjacent to Magna Electro castings in Coimbatore-Pollachi main road (4.38 acres and 85.98cents)

Personal guarantee given by Sri. Sumanth Ramamurthi

Banking Relations :	--
Auditors :
Name :	N.R. Doraiswami and Company Chartered Accountants
Address :	“Manchillu”, 48, Race Cource, Coimbatore – 641 018, Tamil Nadu, India
PAN No.:	AABFN5721A
Other Related Parties :	· Super spinning Mills limited · Elgi Building Products Limited · Sara Elgi Arteriors Limited · Sara Elgi Envirotech Limited · Sara Elgi Industrial Research and Development Limited · Elgi Software and Technologies Limited · Elgi Ultra Industries Limited · Kakatiya Textiles Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs. 10/- each	Rs.75.000 Millions
1000000	Preference Shares	Rs. 10/- each	Rs.10.000 Millions
	Total		Rs.85.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4750000	Equity Shares	Rs. 10/- each	Rs.47.500 Millions

NOTE:

47,50,000 Equity Shares of rs.10/- each fully paid up (of the above shares 15,00,000 shares allotted as fully paid up by way of bonus shares by capitalisation of Reserves and 3,00,000 equity shares of rs.10/- each allotted for consideration other than cash as fully paid up)

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011 (15 months)
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	47.500	47.500	47.500
(b) Reserves & Surplus	12.358	3.236	(0.473)
(c) Money received against share warrants	0.000	0.000	0.000
	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	59.858	50.736	47.027
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	11.439	6.359	4.634
(c) Other long term liabilities	1.153	1.153	0.000
(d) long-term provisions	9.166	7.577	0.000
Total Non-current Liabilities (3)	21.758	15.089	4.634
(4) Current Liabilities
(a) Short term borrowings	3.524	85.278	105.903
(b) Trade payables	60.331	63.739	216.664
(c) Other current liabilities	143.252	133.496	29.921
(d) Short-term provisions	11.127	1.768	5.154
Total Current Liabilities (4)	218.234	284.281	357.642
TOTAL	299.850	350.106	409.303
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	62.518	93.890	104.346
(ii) Intangible Assets	8.711	12.195	27.746
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	3.047	0.107	0.659
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	29.437	29.694	40.999
(e) Other Non-current assets	3.846	3.226	0.000
Total Non-Current Assets	107.559	139.112	173.750
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	63.499	76.839	95.155
(c) Trade receivables	93.565	99.761	109.767
(d) Cash and cash equivalents	11.161	11.032	15.392
(e) Short-term loans and advances	20.116	19.968	4.559
(f) Other current assets	3.950	3.394	10.680
Total Current Assets	192.291	210.994	235.553
TOTAL	299.850	350.106	409.303

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011 (15 months)
	SALES
		Income	569.491	546.473	642.439
		Other Income	2.030	1.531	4.922
		TOTAL (A)	571.521	548.004	647.361
Less	EXPENSES
		Cost of materials consumed	314.423	306.701	372.973
		Purchases of stock-in-trade	58.013	74.158	77.196
		Changes in inventories of finished goods, work-in-progress and stock in trade	3.375	4.773	(10.006)
		Employee benefit expense	45.271	45.273	55.971
		Other expenses	91.102	67.513	84.319
		Exceptional Items	0.352	0.548	0.125
		Extraordinary Items	23.658	14.236	4.984
		TOTAL (B)	536.194	513.202	585.562
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35.327	34.802	61.799
Less	FINANCIAL EXPENSES (D)		8.620	17.213	22.932
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		26.707	17.589	38.867
Less/	DEPRECIATION/ AMORTISATION (F)		10.361	12.641	10.380
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		16.346	4.948	28.487
Less	TAX (H)		7.224	1.239	12.601
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		9.122	3.709	15.886
	EARNINGS IN FOREIGN CURRENCY
		Export of goods in FOB Basis	13.115	37.575	40.548
		Commission Earnings	16.915	3.740	3.067
	TOTAL EARNINGS		30.030	41.315	43.615
	IMPORTS
		Raw Materials	17.842	16.842	14.531
		Traded Goods	51.451	66.205	67.626
	TOTAL IMPORTS		69.293	83.047	82.157
	Earnings Per Share (Rs.)		1.92	0.78	3.34

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.60	0.68	2.45
Net Profit Margin (PBT/Sales)	(%)	2.87	0.91	4.43
Return on Total Assets (PBT/Total Assets}	(%)	6.20	1.56	7.75
Return on Investment (ROI) (PBT/Networth)		0.27	0.10	0.61
Debt Equity Ratio (Total Debt /Networth)		0.06	1.68	2.25
Current Ratio (Current Asset/Current Liability)		0.88	0.74	0.66

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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Loan from others	0.000	1.984
Total	0.000	1.984

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90009070	19/03/2007 *	72,500,000.00	CORPORATION BANK	INDUSTRIAL FINANCE BRANCH, TRICHY ROAD, COIMBATORE – 641 018, TAMIL NADU, INDIA	-
2	90008880	19/03/2007 *	104,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 1443, TRICHY ROAD, COIMBATORE – 641 018, TAMIL NADU, INDIA	-

* Date of charge modification

WORKING OF THE COMPANY:

During the year the company achieved a Sales Turnover of Rs.569.500 Millions as against a turnover of Rs.546.500 Millions in the previous year. Subject has earned other income to the extent of Rs.2.000 Millions as against Rs.1.500 Millions in the previous year.

During the period, Subject has made a Profit after tax of Rs.9.100 Millions as against Rs.3.700 Millions in the previous year.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Tools, Jigs, Dies and Patterns

· Electrical Fittings

· Office Equipments

· Furniture and Fittings

· Vehicles

· Office Assets

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.62.66
UK Pound	1	Rs.100.46
Euro	1	Rs.84.60

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		43

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.