MIRA INFORM REPORT

Report Date :

22.08.2014

IDENTIFICATION DETAILS

Name :	IWL INDIA LIMITED
Registered Office :	W-360, North Main Road, Anna Nagar West, Chennai – 600101, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.10.1988
Com. Reg. No.:	18-016294
Capital Investment / Paid-up Capital :	Rs.23.500 Millions
CIN No.: [Company Identification No.]	U18102TN1988PLC016294
TAN No.: [Tax Deduction & Collection Account No.]	CHEI00248D
PAN No.: [Permanent Account No.]	AAACI1772Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Water Proofing and Emulsion Chemicals used in the Construction Sites.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payment terms are reported to be 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

N E W S

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 DENIED BY

Name :	Mr. Shiva
Designation :	Account Manager
Contact No.:	91-44-45536000
Date :	21.08.2014

LOCATIONS

Registered / Head Office :	W-360, North Main Road, Anna Nagar West, Chennai – 600101, Tamilnadu, India
Tel. No.:	91-44-45536000
Fax No.:	91-44-45536111
E-Mail :	ed@iwl.in ho@iwl.in vvg@iwl.in
Website :	http://www.iwlindia.co.in

DIRECTORS

As on 30.09.2013

Name :

Captian A K Bansal

Designation :

Chairman and Managing Director

Address :

41, Kellys Road, Kilpauk, Chennai – 600 010, Tamilnadu, India

Date of Birth/Age :

13.12.1932

Date of Appointment :

01.02.2013

DIN No. :

00281204

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	U18102TN1988PLC016294	IWL INDIA LIMITED	Managing director	01/02/13	05/10/88	-	Active	NO
2	U29309TN1994PLC026517	MOBIUS VENTURES LIMITED	Director	07/01/94	07/01/94	-	Active	NO
3	U80301TZ1996NPL006970	KODAIKANAL INTERNATIONAL SCHOOL	Director	01/07/06	01/07/06	30/06/07	Active	NO
4	U74999MH1957NPL010924	THE COMPANY OF MASTER MARINERS OF INDIA.	Director	01/04/11	01/04/11	-	Active	NO

Name :

Mr. Shrinivas Anand Rao Kharche

Designation :

Director

Address :

2, Rutland Gate, 6^th Avenue, Chennai – 600 006, Tamilnadu, India

Date of Birth/Age :

07.10.1933

Date of Appointment :

22.01.1991

DIN No. :

02496016

Name :

Mr. Vikash Chandra

Designation :

Director

Address :

2A, Doshi Park View, AD-55, 4^th St. Anna Nagar West, Chennai – 600 040, Tamilnadu, India

Date of Birth/Age :

23.01.1954

Date of Appointment :

10.08.2007

DIN No. :

00168934

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	U33111TN1987PTC014744	COMPTECH ELECTRONICS PRIVATE LIMITED	Director	05/08/87	05/08/87	-	Active	NO
2	U32301TN1989PTC017869	COSMOS MULTISYSTEMS PRIVATE LIMITED	Director	09/08/89	09/08/89	-	Active	NO
3	U45201TN1991PLC021226	CONSOLIDATED CIVIL CONSTRUCTION (INDIA) LTD.	Director	11/09/98	11/09/98	17/06/13	Active	NO
4	U72200TN1999PTC043249	E-OBJECTS PRIVATE LIMITED	Director	30/09/99	30/09/99	-	Active	NO
5	U51395TN2006PTC060623	TOUS LES MEDIASOFT PRIVATE LIMITED	Director	21/07/06	21/07/06	18/12/08	Active	YES
6	U40106TN2007PTC062247	BPL-FTA ENERGIES PRIVATE LIMITED	Director	05/02/07	05/02/07	-	Active	NO
7	U18102TN1988PLC016294	IWL INDIA LIMITED	Additional director	10/08/07	10/08/07	-	Active	NO
8	U72200TN2008PTC069862	PRIMAVERA SOFTWARE PRIVATE LIMITED	Director	17/11/08	17/11/08	31/01/14	Active	NO
9	U74990TN2011PTC081727	PANITEK INNOVATIONS PRIVATE LIMITED	Director	01/08/11	01/08/11	-	Active	NO

Name :

Mr. Ashoke Bansal

Designation :

Managing Director

Address :

41, Kellys Road, Kilpauk, Chennai – 600 010, Tamilnadu, India

Date of Birth/Age :

18.12.1966

Date of Appointment :

01.02.2013

DIN No. :

00281221

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	U18102TN1988PLC016294	IWL INDIA LIMITED	Whole-time director	01/02/13	05/10/88	-	Active	NO
2	U45201TN1991PLC021226	CONSOLIDATED CIVIL CONSTRUCTION (INDIA) LTD.	Director	05/08/91	05/08/91	01/04/04	Active	NO
3	U29309TN1994PLC026517	MOBIUS VENTURES LIMITED	Director	07/01/94	07/01/94	-	Active	NO

Name :

Mr. Ajoy Kumar Gnanam

Designation :

Director

Address :

4, Plot 505, 18^th St., 4^th Sector, K K Nagar, Chennai – 600 078, Tamilnadu, India

Date of Birth/Age :

12.01.1965

Date of Appointment :

21.10.2004

DIN No. :

01093198

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	U18102TN1988PLC016294	IWL INDIA LIMITED	Director	21/10/04	21/10/04	-	Active	NO
2	U80901TN2012PTC086055	KAARG Education Solutions Private Limited	Director	10/04/13	10/04/13	05/07/13	Active	NO
3	U72900TN2012PTC086357	KAARG ITES Solutions Private Limited	Director	10/04/13	10/04/13	05/07/13	Active	NO

KEY EXECUTIVES

Name :	Mr. V Vedagiri
Designation :	Company Secretary
Address :	“Abirami”, 4A, Devadi Street, Mylapore, Chennai – 600 004, Tamilnadu, India
Date of Birth/Age :	29.11.1955
Date of Appointment :	06.12.1996
PAN No. :	ACKPV3066B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
A R Santhanakrishnan	10
Captain A K Bansal	108702
Vandhansah Arma	5
Ashok Bansal	588667
Ashok Mittal	5
Moni Bansal	131923
Anshu bansal	1001
K Ramaswamy	11
S Muthuperumal	11
Moni Bansal / Ashok Bansal	140000
Ashok Bansal / Moni Bansal	70000
Sushil Vadhera	30000
V P Ahuja	30000
Dev Sabharbal	20000
AKR Finance Limited	55000
Suryakant Amin	20000
Moni Bansal / Capt A K Bansal / Ashok Bansal	117290
Ashok Bansal / CAPT A K Bansal / Moni Bansal	96322
CAPT A K Bansal / Moni Bansal / Ashok Bansal	83400
Anshu Bansal	47648
Mobius Venture Limited	5
Anika Bansal (Minor)	490000
Aarti Bansal (Minor)	320000
Total	2350000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	2.00
Directors or relatives of Directors	93.00
Other top fifty shareholders	5.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Water Proofing and Emulsion Chemicals used in the Construction Sites.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Canara Bank, A-12/13, Second Avenue, Anna Nagar East, Chennai – 600 102, Tamilnadu, India

· State Bank of India, Industrial Finance Branch, 103, Anna Salai, Chennai – 600 002, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Indian rupee loan from bank	27.455	31.107
SHORT TERM BORROWINGS
Cash credit from bank	95.564	79.101
Overdraft from bank	16.977	17.576
Total	139.996	127.784

Banking Relations :	--
Financial Institution :	Industrial Finance Corporation of India, Bank of Baroda Building, 16, Sansad Marg, New Delhi – 110001, India
Auditors :
Name :	PKF Sridhar and Santhanam Chartered Accountants
Address :	91, 92, VII, Floor, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600004, Tamilnadu, India
Tel. No. :	91-44-28112985 – 88
Fax No. :	91-44-28112989
E-Mail :	admin@pkfindia.in
Website :	www.okfindia.in
PAN No. :	AAOFS2783G
Associates :	Mobius Ventures Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2350000	Equity Shares	Rs.10/- each	Rs.23.500 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	23.500	23.500	23.500
(b) Reserves & Surplus	141.170	118.412	98.548
(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)	164.670	141.912	122.048
(3) Non-Current Liabilities
(a) long-term borrowings	27.455	31.107	9.429
(b) Deferred tax liabilities (Net)	1.947	2.167	2.630
(c) Other long term liabilities	0.168	0.168	0.168
(d) long-term provisions	0.000	0.196	0.000
Total Non-current Liabilities (3)	29.570	33.638	12.227
(4) Current Liabilities
(a) Short term borrowings	112.541	96.677	87.128
(b) Trade payables	25.958	28.159	17.705
(c) Other current liabilities	27.377	23.647	18.257
(d) Short-term provisions	13.623	13.452	6.441
Total Current Liabilities (4)	179.499	161.935	129.531
TOTAL	373.739	337.485	263.806
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	89.951	55.909	57.192
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	12.213	37.594	6.997
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	7.726	7.443	5.009
(e) Other Non-current assets	38.052	34.896	32.002
Total Non-Current Assets	147.942	135.842	101.200
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	56.470	53.320	54.030
(c) Trade receivables	148.230	114.027	78.232
(d) Cash and cash equivalents	8.593	7.488	2.985
(e) Short-term loans and advances	12.504	26.808	27.359
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	225.797	201.643	162.606
TOTAL	373.739	337.485	263.806

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	977.808	804.892	675.314
		Other Income	7.541	5.435	7.117
		TOTAL	985.349	810.327	682.431
Less	EXPENSES
		Cost of Materials Consumed	603.206	467.135	384.899
		Purchases of Stock-in-Trade	33.662	76.457	77.009
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	6.379	5.039	(7.128)
		Employees benefits expense	51.177	42.499	38.608
		Manufacturing Expenses	19.980	16.194	16.748
		Selling, Administrations and Other Expenses	41.994	29.560	31.433
		Other expenses	169.946	121.108	102.559
		TOTAL	926.344	757.992	644.128
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		59.005	52.335	38.303
Less	FINANCIAL EXPENSES		18.064	15.025	11.483
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		40.941	37.310	26.820
Less/ Add	DEPRECIATION/ AMORTISATION		7.482	4.225	3.961
	PROFIT/ (LOSS) BEFORE TAX		33.459	33.085	22.859
Less	TAX		9.327	11.860	8.189
	PROFIT/ (LOSS) AFTER TAX		24.132	21.225	14.670
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	4.601	0.000	NA
	TOTAL EARNINGS		4.601	0.000	NA
	IMPORTS
		Raw Materials	23.340	8.162	6.464
		Traded goods	29.999	56.423	76.081
		Plant and Machinery	5.454	25.901	0.000
	TOTAL IMPORTS		58.793	90.486	82.545
	Earnings / (Loss) Per Share (Rs.)		10.27	9.03	6.24

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.45	2.62	2.15
Net Profit Margin (PBT/Sales)	(%)	3.42	4.11	3.38
Return on Total Assets (PBT/Total Assets}	(%)	9.25	11.03	8.90
Return on Investment (ROI) (PBT/Networth)		0.20	0.23	0.19
Debt Equity Ratio (Total Debt/Networth)		0.85	0.90	0.79
Current Ratio (Current Asset/Current Liability)		1.26	1.25	1.26

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	23.500	23.500	23.500
Reserves & Surplus	98.548	118.412	141.170
Net worth	122.048	141.912	164.670
long-term borrowings	9.429	31.107	27.455
Short term borrowings	87.128	96.677	112.541
Total borrowings	96.557	127.784	139.996
Debt/Equity ratio	0.791	0.900	0.850

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)
Revenue from Operations	675.314	804.892	977.808
		19.188	21.483

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from Operations	675.314	804.892	977.808
Profit	14.670	21.225	24.132
	2.17%	2.64%	2.47%

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	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	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LITIGATION DETAILS

CHENNAI COURT

CASE STATUS INFORMATION SYSTEM

Case Status:	Pending
Status Of:	CIVIL REVISION PETITION
Case No.:	2869
Year :	2012
Petitioner :	M/S RAPID ROADLINES OF INDIA
Respondent :	M/S IWL INDIA LTD
Pet's Advocate :	M/S.HEMALATHA GAJAPATHY
Res's Advocate :	M/S AJOY KUMAR GNANAM
Category :	NO CATEGORY MENTIONED
	Last Listed on: No Date Mentioned
Case Updated on :	Oct 30 2012

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10084417	29/06/2013 *	254,000,000.00	CANARA BANK	A-12/13, SECOND AVENUE, ANNA NAGAR EAST, CHENNAI, Tamil Nadu - 600102, INDIA	B80660764

* Date of charge modification

FIXED ASSETS

œ Land

œ Leasehold Land

œ Building

œ Plant and Machinery

œ Furniture and Fixture

œ Vehicle

œ Office Equipment

œ Computers

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.60.72
UK Pound	1	Rs.100.72
Euro	1	Rs.80.56

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.