MIRA INFORM REPORT

Report Date :

09.08.2014

IDENTIFICATION DETAILS

Name :	PEPS INDUSTRIES PRIVATE LIMITED
Registered Office :	S F No. 192, Uthupalayam Road, Arasur Post, Palladam Taluka, Coimbatore - 641407, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.09.1995
Com. Reg. No.:	18-006507
Capital Investment / Paid-up Capital :	Rs. 63.801 Millions
CIN No.: [Company Identification No.]	U17111TZ1995PTC006507
PAN No.: [Permanent Account No.]	AABCP9569P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Spring Interior Mattresses and Bedding Projects.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 600000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has achieved a significant growth in its sales turnover as well as net profitability during 2013. Overall performance of the company is improving. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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 their 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 tat 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.

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 DECLINED

MANAGEMENT NON-COOPERATIVE [91-80-28525831]

LOCATIONS

Registered Office/ Factory 1 :	S F No. 192, Uthupalayam Road, Arasur Post Palladam Taluka, Coimbatore -641407, Tamilnadu, India
Tel. No.:	91-422-2680890/ 2360892
Fax No.:	91-422-2360892
E-Mail :	ravichandran@ascentcircuits.com pe+sho@restanicindia.com pepsind1@eth.net gshankarram@restonicindia.cpm mala@eth.net kiriti@pepsindia.com
Website :	www.pepsindia.com
Head Office :	V-ID, NGEF Ancillary (I) Estate, Mahadevpura, Bangalore – 560048, Karnataka, India
Tel. No. :	91-80-28525831/ 28524599
Fax No.:	91-80-28525831
Factory 2 :	Godown No. 1,2,3,4,5, Wing B, Behind Radhika Hotel, Gate No. 1354, Pune Saswad Road, Village Wadki, Pune - 412308, Maharashtra, India
Factory 3 :	No. 249, Swarn Park Industrial Area, Mundka, Nangloi, New Delhi – 110041, India

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Keshavan Madhavan

Designation :

Managing Director

Address :

479, 11^th B Cross, Bell Layout, Vidhyaranyapuram, Bangalore - 560013, Karnataka, India

Date of Birth/Age :

12.07.1953

Date of Appointment :

29.09.2010

PAN No.:

AATPM1021E

DIN No.:

01678629

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	U17111TZ1995PTC006507	PEPS INDUSTRIES PRIVATE LIMITED	Managing director	29/09/2010	27/08/2010	Active	NO

Name :

Mr. Shankarram Gopalan

Designation :

Director

Address :

201, Trinity Gole Link Apartments 139/8, Domlur Layout, Bangalore - 560071, Karnataka, India.

Date of Birth/Age :

04.12.1959

Date of Appointment :

14.09.2006

PAN No.:

AIDPG2737M

DIN No.:

00110783

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	U01300TZ1989PTC002484	HOSUR COIR FOAMS PRIVATE LIMITED	Whole-time director	01/04/2013	24/03/1993	-	Active	NO
2	U31200KA1999PTC024700	ASCENT CIRCUITS PRIVATE LIMITED	Director	01/02/1999	01/02/1999	-	Active	NO
3	U17111TZ1995PTC006507	PEPS INDUSTRIES PRIVATE LIMITED	Director	14/09/2006	16/12/2005	-	Active	NO
4	U17214TZ2010PTC016432	HOSUR MATTRESS INDUSTRIES INDIA PRIVATE LIMITED	Director	13/10/2010	13/10/2010	-	Active	NO

Name :

Mr. Punyamurthy Manjunath

Designation :

Director

Address :

1282, 13^th Cross Indira Nagar II Stage, Binnamanagar, Bangalore-560038, Karnataka, India.

Date of Birth/Age :

05.02.1960

Date of Appointment :

14.09.2006

PAN No.:

ADKPM0177H

DIN No.:

00900902

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	U01300TZ1989PTC002484	HOSUR COIR FOAMS PRIVATE LIMITED	Managing director	01/04/2013	24/03/1993	-	Active	NO
2	U31503KA1986PTC007459	TECHNOVA TAPES (INDIA)PRIVATE LIMITED	Director	25/08/1994	25/08/1994	-	Active	NO
3	U31200KA1999PTC024700	ASCENT CIRCUITS PRIVATE LIMITED	Managing director	01/02/1999	01/02/1999	-	Active	NO
4	U17111TZ1995PTC006507	PEPS INDUSTRIES PRIVATE LIMITED	Director	14/09/2006	16/12/2005	-	Active	NO
5	U31300KL2008PTC027811	GlobalWave Technologies Private Limited	Director	12/05/2008	12/05/2008	-	Active	NO
6	U17214TZ2010PTC016432	HOSUR MATTRESS INDUSTRIES INDIA PRIVATE LIMITED	Director	13/10/2010	13/10/2010	-	Active	NO
7	U74900KA2011PTC059112	ACE ENVIRO TECH PRIVATE LIMITED	Director	13/06/2011	13/06/2011	18/07/2013	Active	NO
8	U40100TZ2013PTC019623	Hosur Industries Power Services Private Limited	Director	26/06/2013	26/06/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Equity Shareholders	No. of Shares
Hosur Coir Foams Private Limited, India	285000
P Manjunath	1266103
G. Ram Shankar	1211100
K Madhavan	411000
Sanjana P. Manjunath	469000
Sunaina P. Manjunath	468000
Total	4110203

Names of Preference Shareholders	No. of Shares
P Manjunath	1134960
G. Ram Shankar	1134960
Total	2269920

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	6.93
Directors or relatives of directors	93.07
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Spring Interior Mattresses and Bedding Projects.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Coir Mattress	Tones	300000	62055

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· Axis Bank Limited, Corporate Banking Branch, No. 1, Queens Road, Bangalore - 560001, Karnataka, India

· State Bank of India, ITI ANCL Industrial Estate Branch, Mahadevapura, Whitefield Road, Bangalore - 560048, Karnataka, India

Facilities :

Secured Loans	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks [Primary: Hypothecation of machineries purchased out of bank finance. collateral EM of factory land and building]	0.000	6.037
SHORT-TERM BORROWINGS
Loans repayable on demand [Primary: Hypothecation of stocks, book debts and other current assets, collateral factory land and building]	131.616	73.706
Total	131.616	79.743

Banking Relations :	--
Auditors :
Name :	CSK Prabhu and Company Chartered Accountants
Address :	First Floor, Auditors Association Buildings, No 7, D B Road, R S Puram, Coimbatore – 641002, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AACFC6296Q
Others Related Party :	· Technova Industries · Hosur Coir Foams Private Limited [U01300TZ1989PTC002484] · Ascent Circuits Private Limited [U31200KA1999PTC024700]

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions
3,000,000	Preference Shares	Rs. 10/- each	Rs. 30.000 Millions
	Total		Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4110203	Equity Shares	Rs. 10/- each	Rs. 41.102 Millions
2269920	Preference Shares	Rs. 10/- each	Rs. 22.699 Millions
	Total		Rs. 63.801 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	63.801	63.801	63.801
(b) Reserves & Surplus	68.154	35.492	6.664
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	131.955	99.293	70.465
(3) Non-Current Liabilities
(a) long-term borrowings	16.133	21.884	17.998
(b) Deferred tax liabilities (Net)	9.346	9.099	7.923
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	25.479	30.983	25.921
(4) Current Liabilities
(a) Short term borrowings	131.616	73.706	59.221
(b) Trade payables	35.194	33.326	34.080
(c) Other current liabilities	35.129	40.263	40.968
(d) Short-term provisions	22.370	21.563	9.059
Total Current Liabilities (4)	224.309	168.858	143.328
TOTAL	381.743	299.134	239.714
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	91.881	91.395	89.139
(ii) Intangible Assets	0.288	0.000	0.000
(iii) Capital work-in-progress	2.000	0.000	0.326
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.014	0.014	0.014
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.587	2.530	2.238
(e) Other Non-current assets	0.000	2.700	1.200
Total Non-Current Assets	97.770	96.639	92.917
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	94.251	60.571	39.059
(c) Trade receivables	120.228	104.815	70.448
(d) Cash and cash equivalents	43.147	11.986	13.415
(e) Short-term loans and advances	19.899	18.346	16.812
(f) Other current assets	6.448	6.777	7.063
Total Current Assets	283.973	202.495	146.797
TOTAL	381.743	299.134	239.714

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Gross Revenue	941.000	741.300	489.177
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		54.122	48.642	27.519
Less/ Add	DEPRECIATION/ AMORTISATION		5.390	5.043	4.022
	PROFIT BEFORE TAX		48.732	43.599	23.497
Less	TAX		16.070	72.427	7.745
	PROFIT AFTER TAX		32.662	28.828	15.752
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	192.147	134.621	116.748
	Earnings Per Share (Rs.)		5.12	4.52	3.83

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	12.83	14.58	9.82
Return on Investment (ROI) (PBT/Networth)		0.37	0.44	0.33
Debt Equity Ratio (Total Debt /Networth)		1.12	0.96	1.09
Current Ratio (Current Asset/Current Liability)		1.27	1.20	1.02

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	63.801	63.801	63.801
Reserves & Surplus	6.664	35.492	68.154
Net worth	70.465	99.293	131.955
long-term borrowings	17.998	21.884	16.133
Short term borrowings	59.221	73.706	131.616
Total borrowings	77.219	95.590	147.749
Debt/Equity ratio	1.096	0.963	1.120

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Gross Revenue	489.177	741.300	941.000
		51.540	26.939

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Gross Revenue	489.177	741.300	941.000
Profit/(Loss) After Tax	15.752	28.828	32.662
	3.22%	3.89%	3.47%

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	Yes
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	10404035	27/06/2013 *	212,600,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, NO. 1. QUEENS ROAD, BANGALORE, KARNATAKA - 560001, INDIA	B80126030
2	90003034	03/12/1996	25,000,000.00	STATE BANK OF INDIA	KTDC BUILDINGS, ERNAKULAM, TAMILNADU, INDIA	-

* Date of charge modification

UNSECURED LOANS

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Loans and advances from others	13.526	13.015
Loans and advances from related parties	2.302	2.136
Loans taken for vehicles	0.305	0.696
Total	16.133	15.847

FINANCIAL RESULTS:

The Company achieved a Net Profit of Rs.48.732 Millions as against Net Profit of Rs.43.599 Millions in the previous year (after charging Depreciation of Rs.5.390 Millions as against Rs.5.043 Millions in the previous year). The Directors are making sincere efforts to improve the performance of the Company. No Dividend is recommended with a view to conserve resources.

BUSINESS PROSPECTS:

The Company has kept up its revenue growth track till date in an ascending order by differentiating their offerings from that of their competitors due to continuous innovations.

The Gross Revenue in the year has been Rs.941.000 Millions as against Rs.741.300 Millions during the previous year recording a growth of 27% while the net profit before Tax Rs.48.700 Millions as against Rs.43.500 Millions during the previous financial year with a growth of 11.95%.

The Company is looking forward to improvising the above performance in the coming fiscal by penetrating the existing markets and introducing the brand in to new markets such as Western and Eastern sectors. The Company is in the process of identifying new talents in its operational gamut and already invested a substantial amount in its infrastructures.

Branded Mattress and in Specific Spring Mattress Segment in our Country is in its infancy when compared with the developing and developed Country; It is the Company which took initiatives to focus totally on the Spring Mattress Segment and today the Company’s brand is not only the largest selling but also the undisputed leader in the category, The Directors are continuously looking forward to build the Company to last forever.

FIXED ASSETS:

· Land

· Buildings

· Factory building

· Other building

· Plant and equipment

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

· Computer equipments

· Other equipments

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. 61.56
UK Pound	1	Rs. 103.50
Euro	1	Rs. 82.41

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	RAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.