MIRA INFORM REPORT

Report Date :

08.04.2014

IDENTIFICATION DETAILS

Name :	BIHAR STATE POWER (HOLDING) COMPANY LIMITED
Formerly Known As :	BIHAR STATE ELECTRICITY BOARD
Registered Office :	Vidyut Bhawan, Bailey Road, Patna – 800001, Bihar
Country :	India
Date of Incorporation :	16.04.2012
Com. Reg. No.:	03-018495
Capital Investment / Paid-up Capital :	Rs.110.000 Millions
CIN No.: [Company Identification No.]	U40102BR2012SGC018495
TAN No.: [Tax Deduction & Collection Account No.]	PTNB04189D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of Generation, Transmission, Distribution and Trading of Electricity.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a State Government of Bihar Company established during 2012 and having a satisfactory track record. Management of the company denied to disclose any information to us. As per the indirect source, we found that the subject has the responsibility of promoting and coordinating development of generation, supply and distribution of electricity in the State of Bihar on an efficient and economic basis of management. Its aim is to improve power generation capability by inventing new projects for improvement of transmission and distribution of power in the State of Bihar. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of active technical and financial support from “Government of Bihar” 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

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 DENIED BY

Name :	Mr. N K Jha
Designation :	Deputy General Manager
Contact No.:	91-612-2504464
Date :	03.04.2014

LOCATIONS

Registered Office :	Vidyut Bhawan, Bailey Road, Patna – 800001, Bihar, India
Tel. No.:	91-612-2504005
Fax No.:	91-612-2504005
E-Mail :	kritikirancs@gmail.com

DIRECTORS

As on: 08.10.2013

Name :	Mr. Sandeep Poundrik
Designation :	Managing Director
Address :	I.G. Prisons, Govt. of Bihar, Patna – 800001, Bihar, India
Date of Birth/Age :	03.10.1968
Date of Appointment :	05.06.2013
DIN No.:	01865958
Name :	Mr. Sanjay Kumar Agarwal
Designation :	Nominee Director
Address :	Bhaisasur, Vard No – 19, Town/ Village - Bihar Sharif, Biharsharif - 803101, Bihar, India
Date of Birth/Age :	03.02.1976
Date of Appointment :	19.09.2013
DIN No.:	06521811
Name :	Mr. Sanjay Kumar Singh
Designation :	Director
Address :	Shivangan East of Gandhi Murti, Purwi Patel Nagar, Patna – 800023, Bihar, India
Date of Birth/Age :	05.10.1971
Date of Appointment :	30.03.2013
DIN No.:	01821509
Name :	Mr. Sanjeev Hans
Designation :	Nominee Director
Address :	District Magistrate Residence, Madhubani – 847211, Bihar, India
Date of Birth/Age :	19.10.1973
Date of Appointment :	16.01.2014
DIN No.:	05342058
Name :	Mr. Santosh Kumar Mall
Designation :	Nominee Director
Address :	Flat – 3/33, Officers Flat Set, Baily Road, Patna - 800023, Bihar, India
Date of Birth/Age :	14.08.1973
Date of Appointment :	18.01.2014
DIN No.:	06815379
Name :	Mr. Jitendra Srivastava
Designation :	Whole-Time Director
Address :	Room Number - 208, Circuit House, Birchand Patel Path, Patna – 800001, Bihar, India
Date of Birth/Age :	19.11.1974
Date of Appointment :	31.01.2014
DIN No.:	06817799

KEY EXECUTIVES

Name :	Mr. N K Jha
Designation :	Deputy General Manager
Name :	Kiran Kriti
Designation :	Secretary
Address :	B 505, Murlidhar Vatika Bailey Road, Patna – 800014, Bihar, India
Date of Birth/Age :	28.10.1981
Date of Appointment :	02.07.2012
PAN No.:	BCXPK3914P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 08.10.2013

Names of Shareholders	No. of Shares
Governor of Bihar, India	10999400
Rameshwar Singh	100
Vijoy Prakash	100
Sandeep Poundrik	100
Brijesh Mehrotra	100
Sanjeev Hans	100
Prabhat Shankar	100
Total	11000000

Equity Share Break up (Percentage of Total Equity)

As on: 08.10.2013

Category	Percentage
Government (Central and State)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Generation, Transmission, Distribution and Trading of Electricity.

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Canara Bank, South Gandhi Maidan, Patna - 800001, Bihar, India
Facilities :	--

Banking Relations :	--
Auditors :	Not Divulged

CAPITAL STRUCTURE

As on: 08.10.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000000	Equity Shares	Rs.10/- each	Rs.20000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

NOT AVAILABLE

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	No
12]	Profitability for last three years	No
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	No
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
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

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10400046	02/01/2013	26,700,000,000.00	CANARA BANK	SOUTH GANDHI MAIDAN, PATNA, BIHAR - 800001, INDIA	B66912106

WEBSITE DETAILS

DUTIES, MISSION AND OBJECTIVES

The duties of the Company have been defined in Section 18 of the Electricity Supply Act, 1948. It has been charged with the responsibility of promoting a co-ordinated development of generation, supply and distribution of electricity in the State of Bihar on an efficient and economic basis of management.

Though BSPHCL deals in only one product, i.e., electrical power, its significance and utility value is enormous for the State. Almost all aspects of modern life-style are dependent on it in one way or another.

In order to ensure that its responsibilities are discharged effectively and efficiently, the Company has engaged nearly 1,700 officer and 14,850 staffs on various posts to generate its own power and to maintain proper distribution system. It arranges to supply the electricity properly to the consumers and maintain their equipments.

The responsibility of catering to entire state means BSPHCL must always be able to understand present as well as future trends of power consumption. It has to formulate and implement schemes for power generation so that growth in demand can be met successfully in time.

Sometimes, it also becomes necessary for BSPHCL to purchase power from outside agencies in order to meet the local demand.

As on today, the installed generating capacity of BSPHCL in terms of its Thermal and Hydro-Electrical plants, exceeds 559.2 MW.

The Company has its full-fledged Accounts and Audit Department for proper keep-up of its financial transaction as also to ensure efficient financial management on the commercial line.

The Company has also its personnel wing to safeguard the interest of all its employees. The bio-data and service of the employee have been computerized at its Headquarters.

The entire organization of the Bihar State Power Holding Company Limited has been set up keeping in view the functions entrusted to it i.e., coordinated development of generation, transmission and distribution of electricity in the State.

NEW POWER PROJECTS

· Barauni TPS Extension – District Begusarai.

· Muzaffarpur TPS Extension – District Muzaffarpur

· Nabinagar Super TPP – District: Aurangabad

IPP Power Stations under Case-II Tariff Based Bidding

· Buxar Bijlee Company Private Limited – District Buxar.

· Lakhisarai Bijlee Company Private Limited – District Lakhisarai.

· Pirpainti Bijlee Company Private Limited – District Bhagalpur.

IPP Power Stations (MOU signed with BSEB)

· Jas Infrastructure Capital Pvt Limited, Nagpur at District: Banka

· Nalanda Power Company Limited, Kolkata at District: Bhagalpur

· Ganga Power and Natural Resources Limited, Kolkata at District: Bhagalpur

· India Power Corporation Limited, Kolkata

· AES India Private Limited, Gurgaon

· MIRACH Power Private Limited, Gurgaon

Other IPP projects approved by State Investment Planning Board (SIPB)

· Subhas Projects and Marketing Limited, Kolkata.

· Cement Manufacturing Company Limited, Kolkata.

· Essar Power, Ranchi

· Usha Martin, New Delhi

· East-West Power Generation Company Limited, Maharastra

· Triton Energy Limited.,Gurgaon, Haryana

· Krishak Bharti Co-operative Limited, New Delhi

· Arrissan Power Limited, Kolkata

· Global Powmin, Ranchi

Nuclear Power Project

· NPCIL proposed for installation of 4x700 MW Nuclear Power Plant at Rajauli, District Nawadah.

· 23,000 hectare-meter (320 cusecs) quantity of water is required, of which 14016 hectare-meter (160 cusec) would be consumptive. Water Resources Dept., GoB indicated adequate quantity of water not available from proposed Dhanarjay reservoir and existing Phulwaria reservoir for plant of 4x700 MW. Water Resources Dept., GoB indicated availability of 12785 cubic meters per hour (127 cusecs) water to meet requirement of 2x700 MW or 4X450 MW. NPCIL has been requested to process with regard to expected availability of water.

PRESS RELEASES

PATNA'S RESIDENTS SUFFER AS POWER CRISIS CONTINUES

PATNA: Thousands of residents living in western parts of the city had a tough time as power situation remained grim on the third consecutive day on Tuesday despite the technical experts of the South Bihar Power Distribution Company Limited (SBPDCL) being on job to rectify the damaged cable on Bailey Road.

The restoration work is not likely to complete before Thursday. The major parts of western Patna had plunged into acute power crisis on Sunday afternoon after the Digha grid station cable was damaged, said H R Pandey, spokesman of Bihar State Power (Holding) Company Limited (BSPHCL). "It will take a couple of days more to restore the normal power supply," Pandey said.

"We are supplying power on an alternate basis to the localities on regular intervals mainly for water storage," Pandey added.

Residents found it hard to complete their household chores as interrupted power supply adversely affected the water supply as well and many of them did not have that much storage facility to use water when they needed it the most. "I have already ordered for mineral water container for my daily use. Since we cannot use our water filter due to fluctuating power supply, we have managed the daily supply of my quota of mineral water from the local retailer," said Mamta of Buddha Colony.

But that, too, was not so easy for an average middle class family. A newlywed couple of Shivpuri had to take shelter at her relative's place in Rajendra Nagar for the time being. Dozens of residents living in apartments located in East and West Boring Canal roads had similar problems of getting clean drinking water.

"We are not able to pay extra amount daily for the diesel to keep the genset running during prolonged power cuts. It's a very costly affair," said another resident in an apartment in S K Puri locality.

Dozens of coaching and computer centres located in the densely populated Boring Road locality were the worst sufferers due to the non-availability of gensets. Several beauty parlours, branded showrooms, nursing homes and shopping malls are dependent on high capacitor gensets.

The consumption of diesel has increased manifold in the last couple of days. A local petrol pump outlet dealer admitted that the sale of diesel has increased manifold. "These days residents carry it in a container for storage," said a dealer.

During the peak evening hours, several small and big shopkeepers had to depend on rented gensets or battery-driven invertors.

The worst hit areas were new Pataliputra, North S K Puri, Boring Road, East Boring Canal Road, West Boring Canal Road, Nehru Nagar, Digha, Kurji, Rajiv Nagar, Buddha Colony, Anandpuri, Indrapuri, Shivpuri and Rajapur Pul.

BIHAR STATE POWER (HOLDING) COMPANY LIMITED RANKS 26TH AMONG POWER UTILITIES IN INDIA

PATNA: Bihar State Power (Holding) Company Limited (BSPHCL) is ranked 26th among state distribution utilities in India, according to the Union power ministry's first annual integrated rating of state distribution utilities.

The rating exercise was carried out by Independent Credit Rating Agencies (ICRA). BSPHCL has been rated superior to Madhya Pradesh, Tripura, Uttarakhand, Rajasthan, Jharkhand and UP distribution utilities. Out of 39 distribution utilities, BSPHCL has been rated 'B' in March 2013. The rating methodology has been designed to facilitate assessment of performance of the utilities in an objective and holistic manner, said an official.

The key strength of BSPHCL has been highlighted in the report. It said there was satisfactory progress in terms of reforms and restructuring of the energy sector which includes unbundling of functional lines and corporatization, timely receipt of subsidy from the state government, effective functioning of Bihar Electricity Regulatory Commission (BERC), timely availability of audited financial accounts for FY 2012, timely filling of tariff petition/orders. The report also said the steady progress/implementation has been made in key reform measures such as special courts for antitheft measures, unbundling of utilities, setting up of consumer grievance forums, etc.

It said the Fuel and Power Purchase Cost Adjustment (FPPCA) framework is operational, allowing an increase in such 'uncontrollable' cost items to be recovered from consumers on monthly basis.

Several parameters, including financial performances, audited accounts, reform measures, regulatory environment and incentives were taken into the consideration before ranking the states.

Energy minister Bijendra Prasad Yadav has expressed satisfaction over the report. He said the government, in recent years, has taken several initiatives in the energy sector to improve its functioning. "In a very short period of time, we have initiated several measures, including increasing revenue collection, maintaining fiscal discipline, taking antitheft measures and unbundling of the erstwhile BSEB," the minister said.

"The government has also increased its subsidy of Rs 1800.000 crore per month to the BSPHCL to enhance its power purchase capacity and to meet the revenue gap," the minister said. During the last decade, it was merely Rs 550.000 crore per month.

POWERMEN THREATEN INDEFINITE STRIKE FROM FEBRUARY 18

PATNA: Power workers, engineers and officials of Bihar, under the banner of 'Vidyut Kamgar Padadhikari Abhiyanta Sanyukta Sangharsh Morcha', have threatened to proceed on an indefinite strike from February 18 to press for the implementation of their 'agreed' seven-point charter of demands.

After a face-off for eight days between the agitating powermen and the state government, the workers had withdrawn their strike call following the agreement reached between the two sides in the last week of September last.

The leaders of 17 unions had agreed to withdraw their strike call following an assurance by state energy minister Bijendra Prasad Yadav to concede all their demands. "None of our demands has been met till date despite the written agreement with the CMD of Bihar state power (holding) company limited (BSPHCL)," said Power Engineering Service Association (PESA) spokesman B L Yadav.

On Sunday, the union members organized a meeting and decided to stage dharna at zonal offices, at Gaya on January 17, at Bhagalpur on January 20, at Barauni on January 21, at Muzaffarpur on January 23, at Darbhanga on January 24, at Saharsa on January 25 and at Patna on January 31.

"After the phase-wise demonstration, we will serve a fresh ultimatum to the government as well as the BSPHCL for indefinite strike. This time, we will not tolerate any coercive action by the government," Yadav said.

"The minister had agreed to order a high-level inquiry by the then chairman of Board of Revenue into the police lathicharge on power workers on September 13. He has already retired and the matter is still pending," Yadav told TOI on Sunday. The government had also agreed to withdraw all pending cases against power workers except those related to corruption and vigilance matters since 2010. But nothing happened, he said.

"As per the agreement, a meeting was to be held once every two months between the employees and the CMD of BSPHCL to sort out any issue. But no meeting has been held so far," he added.

Other demands include implementation of the transfer policy of employees as per the government norms, implementation of recommendations of the pay anomaly committee, promotion of employees against vacant higher posts and immediate stoppage of transferring government land to private firms in the name of giving franchise.

POWERGRID INKS JV AGREEMENT WITH BIHAR STATE POWER (HOLDING) COMPANY LIMITED

Joint Venture agreement between Bihar State Power (Holding) Company Limited (BSPHCL) & Power Grid Corporation of India Limited (POWERGRID), a Govt. of India Enterprise was signed on 29.12.2012 at Patna in presence of the Sri Bijendra Prasad Yadav Honble Energy Minister, Sri R.N. Nayak, CMD, POWERGRID and Shri P.K. Rai, Chairman, BSPHCL and other dignitaries. The name of the joint venture company will be Bihar Grid Company Limited.

This JV Company will take up the works of strengthening and augmentation of transmission system in Bihar. It is expected that more than 6000 MW electricity will be available in the state from different sources by the end of 12th plan. The state – wide transmission of this bulk power shall require construction of new transmission grid sub-stations and transmission lines of 400/220/132 kV levels.

The salient features of the JV Company will be:-

Both POWERGRID and BSPHCL shall have 50:50 share in the new company i.e, Bihar Grid Company Limited

The number of directors from both the companies shall be same in the new company.

The transmission sector of the state will be benefitted with the enhanced Techno Managerial Expertise.

The efforts of the State to bring it at par with the rest of the nation have received a fillip with this initiative.

POWERGRID is already implementing the final phases of Transmission works that were covered under Rashtriya Sam Vikas Yojana (RSVY) in Bihar at a cost of approximately Rs.30000.000 Millions The current augmentation will take place in two more phases of Rs. 63000.000 Millions and Rs. 100000.000 Millions so as to enable the State in achieving the projected national per capita consumption of 1275 units by 2016-17. The tariff will be determined by BERC.

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.59.95
UK Pound	1	Rs.99.36
Euro	1	Rs.82.15

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	SUB
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.