MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	ATOTECH INDIA LIMITED
Registered Office :	66 K.M. Stone, NH-8, Delhi Jaipur Highway, Village Sidhrawali, District Gurgaon – 123413, Haryana
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	07.03.1996
Com. Reg. No.:	05-033492
Capital Investment / Paid-up Capital :	Rs.202.752 Millions
CIN No.: [Company Identification No.]	U74999HR1996PLC033492
TAN No.: [Tax Deduction & Collection Account No.]	RTKA04222B
PAN No.: [Permanent Account No.]	AACCM0338G
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Subject is engaged in the business of manufacture of electroplating chemicals.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 1800000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears sharp dip in profit of the company during the financial year 2012. However, general financial position of the company appears to be fair. Trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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 31-03-2012.

INFORMATION DENIDED

MANAGEMENT NON CO – OPERATIVE (91-1274-267190)

LOCATIONS

Registered Offic e/ Factory :	66 K.M. Stone, NH-8, Delhi Jaipur Highway, Village Sidhrawali, District Gurgaon – 123413, Haryana, India
Tel. No.:	91-1274-267190 / 91
Fax No.:	91-1274-267189
E-Mail :	Sanjiv.sharma@atotech.com amar.tiwari@atotech.com
Website :	www.atotechindia.com
Branches :	Technical Center 111 and 112, Phase - IV, Boomasandra Industrial Area, Bangalore - 560099, Karnataka, India Phones: +91- 8110- 419 000 Fax: +91- 8110- 419 020 GURGAON Ground Floor, Enkay Tower, Vanijya Nikunj, Udyog Vihar – V, Gurgaon - 122106, Haryana, India. Phones: +91- 124- 2397 191 / 92, Fax: +91- 124- 2450 135 MUMBAI UNIT No. 209, Krishna Commercial Center 6, Udyog Nagar, Off S. V. Road, Goregaon West, Mumbai - - 400062, Maharashtra, India Phones: +91- 22- 2878 3400, 2878 0043 Fax: +91- 22- 2878 8278 LUDHIANA First Floor, Zoom Building, property No. B-XXIII, 2581/1, R.K. Road, Industrial area – A, Ludhiana- 141003, Punjab, India Phones: +91- 161- 4640192 Fax: +91- 161- 4640192 PUNE 128/2, Sanghavi Complex, Telco Road, Chinchwad, Pune - 411019, Maharashtra, India Phone: +91- 20- 27441601 / 02 Fax: +91- 20- 27441603 CHENNAI A2, Shyams Royal Enclave, 25, Sathiya Nagar, Mogappair Road, Chennai, Tamilnadu - 600050, India Phone: +91- 9600071757

DIRECTORS

As on: 14.05.2013

Name :

Mr. Challa Gopala Krishna Murthy

Designation :

Managing director

Address :

02D – 052, Oakwood, Estate, DLF City, Phase – II, Gurgaon – 122002, Haryana, India

Date of Birth/Age :

16.08.1964

Date of Appointment :

01.01.2013

DIN No.:

06459735

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	U74999HR1996PLC033492	ATOTECH INDIA LIMITED	Managing director	01/01/2013	25/12/2012	-	Active	NO
2	U24241KA2001PTC029520	BOSTIK INDIA PRIVATE LIMITED	Director	18/04/2013	18/04/2013	-	Active	NO

Name :

Mr. Gertjan Willem Van Der Wal

Designation :

Director

Address :

Hofjagerallee, 28A, Berlin 13465

Date of Birth/Age :

21.07.1963

Date of Appointment :

14.05.2010

DIN No.:

02727643

Name :

Mr. Chun Yin Lee

Designation :

Director

Address :

Flat B 11/F, Tower 2, Carments Garden, 9 Coxes Road, Tsim Sha Tsui Kowloon, Hong Kong

Date of Birth/Age :

01.12.1946

Date of Appointment :

14.05.2010

DIN No.:

03104481

Name :

Mr. Gregor Frank

Designation :

Director

Address :

Bochumer Strasse 25, 10555, Berlin Germany - 14055

Date of Birth/Age :

12.03.1960

Date of Appointment :

02.07.2001

DIN No.:

00325610

Name :

Mr. Shambhu Gupta

Designation :

Managing Director

Address :

96, Arjun Marg, DLF City Phase I, Gurgaon, Haryana

Date of Birth/Age :

04.09.1964

Qualification:

B. Tech

Date of Appointment :

01.01.2013

DIN No.:

00294285

KEY EXECUTIVES

Name :	Mr. Amar Nath Tiwari
Designation :	Secretary
Address :	Flat No. 402, House No. 91/1, New Manglapuri, Delhi – 110020, India
Date of Birth/Age :	25.04.1981
Date of Appointment :	20.12.2012
PAN No.:	AEYPT9742E

MAJOR SHAREHOLDERS

As on: 30.06.2013

Names of Shareholders	No. of Shares
Atotech BV, Netherlands	20275194
Shambhu Gupta	1
Gurinder Singh Gulati	1
Challa GK Murthy	1
Rajesh Verma	1
Desh Ranjan Basak	1
Aditya Kumar Joshi	1
Total	20275200

As on: 30.06.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacture of electroplating chemicals.

Products :

Item Code No.	Product Description
38239011	Electroplating Salt

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	· The Hong Kong Shanghai Banking Corporation Limited, Corporate Banking Division; Ece House; 1st Floor, 28; Kasturba Gandhi Marg, New Delhi - 110001,Delhi, India

Banking Relations :	---
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	8th Floor, Tower B, DLF Building No.10,DLF Cyber City, Phase II, Gurgaon - 122002, Haryana, India
PAN No.:	AAAFB9852F
Fellow subsidiaries::	· Atotech Espana, S.A., Spain · Atotech Korea Limited · Atotech Taiwan Limited · Atotech Canada Limited, Canada · Atotech Australia Pty Limited · Atotech Slovenija, Slovenia · Atotech Japan K.K. · Atotech Do Brazil Galvanotecn Limited, Brazil · Atotech CZ AS · Atotech Argentina, S.A.

CAPITAL STRUCTURE

After 30.06.2013

Authorised Capital : Rs. 520.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 241.214 Millions

As on: 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
52000000	Equity Shares	Rs.10/- each	Rs. 520.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20275200	Equity Shares	Rs.10/- each	Rs. 202.752 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	202.752	202.752
(b) Reserves & Surplus	241.926	223.218
(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)	444.678	425.970
(3) Non-Current Liabilities
(a) long-term borrowings	72.450	207.060
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	12.037	12.483
Total Non-current Liabilities (3)	84.487	219.543
(4) Current Liabilities
(a) Short term borrowings	224.000	265.500
(b) Trade payables	372.341	286.238
(c) Other current liabilities	211.245	122.257
(d) Short-term provisions	14.458	25.655
Total Current Liabilities (4)	822.044	699.650
TOTAL	1351.209	1345.163
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	611.867	577.455
(ii) Intangible Assets	8.090	15.687
(iii) Capital work-in-progress	6.188	50.496
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.230	12.640
(d) Long-term Loan and Advances	84.265	74.662
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	710.640	730.940
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	114.556	135.463
(c) Trade receivables	412.798	333.875
(d) Cash and cash equivalents	45.623	46.096
(e) Short-term loans and advances	67.592	98.789
(f) Other current assets	0.000	0.000
Total Current Assets	640.569	614.223
TOTAL	1351.209	1345.163

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		202.752
2] Share Application Money		0.000
3] Reserves & Surplus		186.778
4] (Accumulated Losses)		0.000
NETWORTH		389.530
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		425.000
TOTAL BORROWING		425.000
DEFERRED TAX LIABILITIES		14.179
TOTAL		828.709
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		634.078
Capital work-in-progress		13.514
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	105.905
	Sundry Debtors	299.701
	Cash & Bank Balances	41.052
	Other Current Assets	0.000
	Loans & Advances	197.581
Total Current Assets		644.239
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	329.154
	Other Current Liabilities	91.411
	Provisions	42.557
Total Current Liabilities		463.122
Net Current Assets		181.117
MISCELLANEOUS EXPENSES		0.000
TOTAL		828.709

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Income	1344.522	1245.442	1096.054
		Other Income	11.949	8.564	8.258
		TOTAL (A)	1356.471	1254.006	1104.312
Less	EXPENSES
		Cost of materials consumed	655.541	643.565
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(8.920)	(10.843)
		Employee benefit expense	149.367	118.901
		Other expenses	414.517	386.035
		TOTAL (B)	1210.505	1137.658	977.549
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		145.966	116.348	126.763
Less	FINANCIAL EXPENSES (D)		44.207	38.198	28.414
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		101.759	78.150	98.349
Less/ Add	DEPRECIATION/ AMORTISATION (F)		63.357	68.512	37.268
	PROFIT BEFORE TAX (E-F) (G)		38.402	9.638	61.081
Less	TAX (H)		19.694	(26.802)	19.979
	PROFIT AFTER TAX (G-H) (I)		18.708	36.440	41.102
	EARNINGS IN FOREIGN CURRENCY( FOB VALUE OF EXPORT)		48.970	58.030	41.280
	CIF VALUE OF IMPORTS		354.630	387.330	303.850
	Earnings Per Share (Rs.)		0.92	1.80	2.03

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	1.38	2.91	3.72
Net Profit Margin (PBT/Sales)	(%)	2.86	0.77	5.57
Return on Total Assets (PBT/Total Assets}	(%)	2.86	0.75	4.78
Return on Investment (ROI) (PBT/Networth)		0.09	0.02	0.16
Debt Equity Ratio (Total Debt /Networth)		0.67	1.11	1.09
Current Ratio (Current Asset/Current Liability)		0.78	0.88	1.39

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	202.752	202.752
Reserves & Surplus	223.218	241.926
Net worth	425.970	444.678
long-term borrowings	207.060	72.450
Short term borrowings	265.500	224.000
Total borrowings	472.560	296.450
Debt/Equity ratio	1.109	0.667

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2010	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sale	1096.054	1245.442	1344.522
		13.630	7.955

NET PROFIT MARGIN

Net Profit Margin	31.12.2010	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1096.054	1245.442	1344.522
Profit	36.440	18.708	0.000
	3.32%	1.50%	0.00%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

PARTICULARS	31.12.2012 (Rs. in Millions)	31.12.2011 (Rs. in Millions)
Long-term Borrowings
Other external commercial borrowings	72.450	207.060
Short-term borrowings
Loans repayable on demand from banks	224.000	265.500
Total	296.450	472.560

INDEX OF CHARGES:

No Charges Exist for the Company

COMPANY OVERVIEW

Subject was incorporated in India on 7^th December 1996 to manufacture, import, export, indent, deal, procure, process, produce, buy, sell, lease, store, market, franchise, distribute all specialty chemicals, compounds and equipment’s used in or in relation to general metal finishing business and the production of printed circuit boards and all ingredients and by products thereof.

PERFORMANCE REVIEW

The sales of the Company at Rs.1340.910 millions during the calendar year 2012 are higher than corresponding period in 2011 by Rs. 1243.770 millions representing a growth of 7.81%. The operating profits of the Company witnessed increase compared to last year from Rs. 116.35 million in 2011 to Rs. 145.970 millions in 2012. The net profit for the period decreased from Rs. 36.440 millions in 2011 to Rs.18.710 millions.

The Company has recorded increase in operating profit; however, net profit during the year has declined from previous year. The decrease in Net Profit during the year is Primarily due to deferred tax impact. The company continues to focus on sustaining growth in the emerging markets, costs optimization and efficient management of the working capital.

BUSINESS REVIEW

ELECTRONICS BUSINESS

During the period, in Printed Circuit Boards Chemicals business the Company has achieved Net Sales of Rs.278.120 millions against Rs. 278.620 millions over previous year period.

GENERAL METAL FINISHING BUSINESS

During the period, in GMF segment, maintaining the previous year trend, the Company, has achieved Net Sales of Rs.1062.790 millions against Rs. 965.150 millions over previous year period, which represents a growth of 10.12% over 2011 levels for the similar period.

FIXED ASSETS

Tangible assets

· Land

· Buildings

· Factory Building

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipment’s

· Other Equipment’s

· Leasehold Improvements

Intangible assets

· Goodwill

· Computer Sofsstware

· Other intellectual property rights

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.60.44
UK Pound	1	Rs.100.24
Euro	1	Rs.80.35

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	SUB
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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	NO
--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		44

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.