MIRA INFORM REPORT

Report Date :

04.08.2014

IDENTIFICATION DETAILS

Name :	MAHALAXMI DHATU UDHYOG PRIVATE LIMITED
Registered Office :	C-52, M.I.D.C., Industrial Area, Hingna, Nagpur – 440 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.06.1996
Com. Reg. No.:	11-100065
Capital Investment / Paid-up Capital :	Rs.4.711 millions
CIN No.: [Company Identification No.]	U28920MH1996PTC100065
TAN No.: [Tax Deduction & Collection Account No.]	NGPM03635C / NGPM01489F
PAN No.: [Permanent Account No.]	AABCM8361J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Re-rolling of Steel, Stainless Steel, Alloy Steel, H.T. and Medium Manganese Steel.
No. of Employees :	Approximately 170 (In Office: 20 and In Factory: 150)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management of the company has not filed its latest financial i.e. March 2013 with the Government Department. As per available financial of 2012, the profit margin of the company is low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

NEWS

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20%! Equities came in second with annualized return of 15.5%! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs.10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BB-
Rating Explanation	Moderate risk of default.
Date	February 10, 2014

Rating Agency Name	CRISIL
Rating	Short Term Rating: A4+
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	February 10, 2014

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Ashish Acharya
Designation :	Accounts Executive
Contact No.:	91-7104-235452
Date :	02.08.2014

LOCATIONS

Registered Office/ Factory :	C-52, M.I.D.C., Industrial Area, Hingna, Nagpur – 440 016, Maharashtra, India
Tel. No.:	91-7104-234126/ 234127/ 235452
Fax No.:	Not Available
E-Mail :	mahalaxmi_dhatu@rediffmail.com preetishreecs@gmail.com mahalaxmingp@gmail.com Director: vrathi@mahalaxmidhatu.com Career Opportunity: tscharpe@mahalaxmidhatu.com Accounts: rdvyas@mahalaxmidhatu.com Enquiry: aacharya@mahalaxmidhatu.com
Website :	http://mdupl.co.in
Location :	Owned
Locality :	Industrial
Corporate Office:	Anaj Bazar, Itwari, Nagpur – 440 002, Maharashtra, India
Tel. No.:	91-712-2762550
Fax No.:	91-712-3093846/ 777230
Factory 2 :	A-20, M.I.D.C., Industrial Area, Butibori, Nagpur – 441 108, Maharashtra, India
Bangalore Office :	No.275/8, New Timber Yard Layout, Mysore Road, Banagalore – 560 026, Karnataka , India
Tel. No.:	91-80-26743909

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Krishnakumar Nandlal Rathi

Designation :

Director

Address :

74, Civil Lines, Temple Road, Nagpur – 440 001, Maharashtra, India

Date of Birth/Age :

20.10.1964

Date of Appointment :

07.06.1996

DIN No.:

01193401

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	U28920MH1996PTC100065	MAHALAXMI DHATU UDHYOG PRIVATE LIMITED	Director	07-06-1996	07-06-1996	-	Active	NO
2	U40105MH2009PTC193784	ANCHAL POWERCOM PRIVATE LIMITED	Director	02-07-2009	02-07-2009	-	Active	NO
3	U13209MH2009PTC193783	VARUNANCHAL METAL AND ALLOYS PRIVATE LIMITED	Director	02-07-2009	02-07-2009	-	Active	NO
4	U01409MH2013PTC239595	MAHALAXMI AGROCHEM INDIA PRIVATE LIMITED	Director	14-01-2013	14-01-2013	-	Active	NO

Name :

Mr. Varun Krishnakumar Rathi

Designation :

Director

Address :

74, Civil Lines, Temple Road, Nagpur – 440 001, Maharashtra, India

Date of Appointment :

01.09.2012

DIN No.:

05197087

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	U13209MH2009PTC193783	VARUNANCHAL METAL AND ALLOYS PRIVATE LIMITED	Director	05-02-2012	05-02-2012	-	Active	NO
2	U40105MH2009PTC193784	ANCHAL POWERCOM PRIVATE LIMITED	Director	05-02-2012	05-02-2012	-	Active	NO
3	U28920MH1996PTC100065	MAHALAXMI DHATU UDHYOG PRIVATE LIMITED	Director	01-09-2012	01-09-2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ashish Acharya
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Narayandas Daga	1000
Narsingdas Daga	500
Krishna Rathi	3090
Shakuntaladevi Rathi	10
Anchal Powercom Private Limited, India	16400
Varunanchal Metal and Alloys Private Limited, India	26110
Total	47110

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	90.24
Directors or relatives of directors	6.58
Other top fifty shareholders	3.18
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Re-rolling of Steel, Stainless Steel, Alloy Steel, H.T. and Medium Manganese Steel.
Products :	· Steel Angles · Steel Rounds · Steel Flats · Steel Gate Channels · Unequal Angles
Exports :
Products :	· Finished Goods
Countries :	· Dubai · Singapore · Myanmar
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

PRODUCTION STATUS [AS ON 31.03.2012]:

Licensed and Installed Capacity:

(a) As explained, no license is necessary for the profit of the company.

(b) Installed capacity: 40000 M.T. per annum.

Particulars	Unit	Actual Production
Iron and Steel	M.T.	16419.93

GENERAL INFORMATION

Suppliers :

· Steel Authority of India

Customers :

End Users

· K.E.C. International Limited, Nagpur

· Jyoti Structures Limited, Mumbai

· Amitasha Enterprises (Private) Limited, Nagpur

· Gulf Joyti International LLT, Dubai

· Aster Private Limited, Hyderabad

· Richardson and Cruddas (1972) Limited, Nagpur

· Unitech Power Transmission Limited, Butibori

· B.S. Transcom Limited, Hyderabad

· Tata Projects Limited, Umred

No. of Employees :

Approximately 170 (In Office: 20 and In Factory: 150)

Bankers :

· Bank of Baroda, Dharampeth Branch, West High Court Road, Dharampeth, Nagpur – 440 010, Maharashtra, India

· HDFC Bank Limited

Facilities :

Secured Loans	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan (Secured against Fixed Assets)	8.850
Car Loan from HDFC Bank Limited	0.450
SHORT TERM BORROWINGS
Bank of Baroda (Secured against hypothecation of plant and machinery and stock-in-trade)	103.726
Total	113.026

Banking Relations :	--
Auditors :
Name :	Agrawal Chhallani and Company Chartered Accountants
Address :	51/A, Ground Floor, New Colony, Behind Chhaoni Police Chowky, Nagpur – 440 001, Maharashtra, India
Tel. No.:	91-712-2595653/ 2595750
PAN No.:	AACFA2753L
Holding Company :	Varunanchal Metal and Alloys Private Limited (CIN No.: U13209MH2009PTC193783)

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
47110	Equity Shares	Rs.100/- each	Rs.4.711 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	4.711	4.711
(b) Reserves & Surplus	290.689	289.059
(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)	295.400	293.770
(3) Non-Current Liabilities
(a) Long-term borrowings	53.561	52.034
(b) Deferred tax liabilities (Net)	10.277	6.767
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	63.838	58.801
(4) Current Liabilities
(a) Short term borrowings	114.503	103.726
(b) Trade payables	13.010	2.218
(c) Other current liabilities	25.393	12.011
(d) Short-term provisions	0.027	0.251
Total Current Liabilities (4)	152.933	118.206
TOTAL	512.171	470.777
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	220.674	220.981
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	2.791	2.592
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	3.860	6.431
Total Non-Current Assets	228.325	230.004
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	124.395	122.389
(c) Trade receivables	132.913	102.734
(d) Cash and cash equivalents	1.103	1.304
(e) Short-term loans and advances	19.723	8.016
(f) Other current assets	5.712	6.330
Total Current Assets	283.846	240.773
TOTAL	512.171	470.777

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.711
2] Share Application Money		0.000
3] Reserves & Surplus		123.696
4] (Accumulated Losses)		0.000
NETWORTH		128.407
LOAN FUNDS
1] Secured Loans		52.270
2] Unsecured Loans		38.189
TOTAL BORROWING		90.459
DEFERRED TAX LIABILITIES		3.003
TOTAL		221.869
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		48.308
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	69.383
	Sundry Debtors	92.056
	Cash & Bank Balances	10.299
	Other Current Assets	0.000
	Loans & Advances	18.672
Total Current Assets		190.410
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.347
	Other Current Liabilities	12.436
	Provisions	3.066
Total Current Liabilities		16.849
Net Current Assets		173.561
MISCELLANEOUS EXPENSES		0.000
TOTAL		221.869

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	616.004	350.983	522.361
		Other Income	2.843	4.525
		TOTAL (A)	618.847	355.508	522.361
Less	EXPENSES
		Purchases of stock-in-trade	577.756	300.571	507.172
		Change in Inventory of Goods	(45.951)	5.046
		Manufacturing Expenses	40.255	16.339
		Employee Benefits Expenses	8.794	7.161
		Other Expenses	7.428	4.904
		TOTAL (B)	588.282	334.021	507.172 (Including Financial Expenses)
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		30.565	21.487
Less	FINANCIAL EXPENSES (D)		22.771	13.691
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.794	7.796	15.189
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.295	1.900	2.474
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		5.499	5.896	12.715
Less	TAX (H)		3.651	3.765	NA
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		1.848	2.131	NA
	Earnings / (Loss) Per Share (Rs.)		39.22	45.00	NA

Particulars	31.03.2014	31.03.2013
Sales Turnover (Approximately)	980.000	800.000

The above information has been parted by Mr. Ashish Acharya (Accounts Executive).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.30	0.60	NA
Net Profit Margin (PBT/Sales)	(%)	0.89	1.68	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.08	1.26	5.33
Return on Investment (ROI) (PBT/Networth)		0.02	0.02	0.04
Debt Equity Ratio (Total Debt/Networth)		0.57	0.53	0.70
Current Ratio (Current Asset/Current Liability)		1.86	2.04	11.30

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012
	(INR in Mlns.)	(INR in Mlns.)
Share Capital	4.711	4.711
Reserves & Surplus	289.059	290.689
Share Application money pending allotment	0.000	0.000
Net worth	293.770	295.400
Long-term borrowings	52.034	53.561
Short term borrowings	103.726	114.503
Total borrowings	155.760	168.064
Debt/Equity ratio	0.530	0.569

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012
	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	350.983	616.004
		75.508

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	350.983	616.004
Profit	2.131	1.848
	0.61%	0.30%

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	Yes
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	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
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	90351779	29/09/2005	300,000.00	HDFC BANK LIMITED	LOWER PAREL, MUMBAI, MAHARASHTRA, INDIA	-
2	90351705	19/09/2013 *	163,600,000.00	BANK OF BARODA	DHARAMPETH BRANCH, WEST HIGH COURT ROAD, DHARAMPETH, NAGPUR, MAHARASHTRA - 440010, INDIA	B85896470
3	80029848	19/01/2009 *	62,500,000.00	BANK OF BARODA	DHARAMPETH BRANCH, WEST HIGH COURT ROAD, NAGPUR,  MAHARASHTRA - 440010, INDIA	A54810262

* Date of charge modification

Unsecured Loans	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
From Others	42.734
Total	42.734

FIXED ASSETS:

· Land - Leasehold

· Land - Freehold

· Factory Building and Shed

· Electrical Installation

· Weigh Bridge

· Vehicles

· Office Equipments

· Computers

· Fuel Saving Device

· Plant and Machinery

· Fax Machine

· Pusher Furnace

· Power Factor Controller

· Furniture

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.60.85
UK Pound	1	Rs.102.69
Euro	1	Rs.81.46

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	DIV
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--CREDIT LINES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.