MIRA INFORM REPORT

Report Date :

16.12.2014

IDENTIFICATION DETAILS

Name :	ELGI ELECTRIC AND INDUSTRIES LIMITED
Formerly Known As :	FESTO ELGI PRIVATE LIMITED
Registered Office :	Elgi Towers, 737-D, Green Fields, Puliakulam Road, Coimbatore – 641 045, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	25.04.1963
Com. Reg. No.:	18-000487
Capital Investment / Paid-up Capital :	Rs.38.900 Million
CIN No.: [Company Identification No.]	U31200TZ1963PLC000487
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CMBE03026C
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Electric Motor, Over Head Traveling Cleaner and Alternator System
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 260000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Rating reflects sound financial risk profile marked by improvement in performance of the company and decent liquidity position. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	IRCA
Rating	Long term fund based facilities = BB +
Rating Explanation	Inadequate credit quality and high credit risk.
Date	June 2014

Rating Agency Name	IRCA
Rating	Short term non fund based facilities = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	June 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. Devaraj
Designation :	Deputy Manager Account
Contact No.:	91-422-2311711
Date :	12.12.2014

LOCATIONS

Registered / Corporate Office :	Elgi Towers, 737-D, Green Fields, Puliakulam Road, Coimbatore – 641 045, Tamil Nadu, India
Tel. No.:	91-422-2311711
Fax No.:	91-422-2314411
E-Mail :	devaraj@eeb.saraelgi.com rmdmarketing@eeh.saraelgi.com texmarketing@eeh.saraelgi.com elgielectric@eeh.saraelgi.com
Website :	www.eeh.saraelgi.com www.elgielectric.com
Factory :	Mullipadi Village, Tamarai Kulam, P O Pollachi Taluk, Coimbatore – 642 109, Tamil Nadu, India
	91-425-9259351/ 352/ 353
	91-425-9259212
Branches :	Located at: · Bangalore E-Mail: eeilblr@eeh.saraelgi.com · Hyderabad E-Mail: eeilhyd@eeh.saraelgi.com · Kolkata E-Mail: eeilkol@eeh.saraelgi.com · Madurai E-Mail: eeilmadurai@eeh.saraelgi.com · Mumbai E-Mail:eeilmumbai@eeh.saraelgi.com

DIRECTORS

As on 30.07.2014

Name :

Mr. Sumanth Ramamurthi

Designation :

Director

Address :

74, Appusamy Layout, Red Fields, Coimbatore – 641 018, Tamil Nadu, India

Date of Birth/Age :

12.08.1959

Date of Appointment :

14.04.2008

DIN No.:

00002773

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	U29253TZ1981PLC001104	ELGI ULTRA INDUSTRIES LIMITED	Director	27/04/1984	27/04/1984	-	Active	NO
2	U31200TZ1963PLC000487	ELGI ELECTRIC AND INDUSTRIES LIMITED	Director	14/04/2008	06/10/1988	-	Active	NO
3	L17111TZ1962PLC001200	SUPER SPINNING MILLS LIMITED	Whole-time director	01/04/2014	22/02/1992	-	Active	NO
4	L17111TZ1962PLC001183	PRECOT MERIDIAN LIMITED	Director	05/09/2014	22/02/1992	-	Active	NO
5	U65993TZ1993PTC010451	SARA ELGI INSURANCE ADVISORY SERVICES PRIVATE LIMITED	Director	24/02/1993	24/02/1993	-	Amalgamated	NO
6	U01211TZ1984PTC001522	SUPER FARM PRODUCTS Private Limited	Director	13/03/1993	13/03/1993	-	Active	NO
7	U31100TZ1995PLC006403	SARA ELGI INDUSTRIES LIMITED	Director	03/08/1995	03/08/1995	-	Active	NO
8	U45201TZ1996PLC007037	ELGI BUILDING PRODUCTS LIMITED	Director	15/03/1996	15/03/1996	-	Active	NO
9	U67120TZ1993PLC004314	SARA ELGI INDUSTRIAL RESEARCH AND DEVELOPEMENT LIMITED	Director	30/07/2001	30/07/2001	-	Amalgamated	NO
10	U17111TZ2005PLC012229	SUPER SARA TEXTILES LIMITED	Director	19/10/2005	19/10/2005	-	Active	NO
11	L18100TZ1981PLC013940	KAKATIYA TEXTILES LTD	Managing director	30/05/2014	30/06/2006	-	Active	NO
12	U29197TZ2001PLC009863	SARA ELGI ENVIROTECH LIMITED	Director	30/09/2008	30/07/2008	-	Active	NO
13	U28111TZ2003PLC010797	SARA ELGI ARTERIORS LIMITED	Director	30/09/2008	30/08/2008	-	Active	NO
14	U05110TZ1980PLC000989	SARA TRADING AND INDUSTRIAL SERVICES LIMITED	Director	30/09/2008	30/08/2008	-	Amalgamated	NO

Name :

Mr. Chattapuram Viswanathan Parameswaran

Designation :

Director

Date of Birth/Age :

15.10.1944

Address :

T-1, Vishranth, 70, Solembedu Road, Ambattur (OT), Chennai – 600 053, Tamilnadu, India

Date of Appointment :

27.08.2012

DIN No.:

02651751

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	U51909TN1995PTC030625	EMDI IMPEX PRIVATE LIMITED	Director	05/03/2004	05/03/2004	-	Under Process of Striking off	NO
2	U31200TZ1963PLC000487	ELGI ELECTRIC AND INDUSTRIES LIMITED	Director	27/08/2012	30/06/2012	-	Active	NO

Name :

Mr. Ramaswamy Raghupathy

Designation :

Director

Address :

7/3A, New No.10, Vidhya Nagar, Civilaerodrom, Coimbatore – 641 014, Tamilnadu, India

Date of Birth/Age :

21.11.1946

Date of Appointment :

19.03.2010

DIN No.:

02799882

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	U31200TZ1963PLC000487	ELGI ELECTRIC AND INDUSTRIES LIMITED	Director	19/03/2010	17/09/2009	-	Active	NO
2	U45201TZ1996PLC007037	ELGI BUILDING PRODUCTS LIMITED	Director	22/09/2014	20/08/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Devaraj
Designation :	Deputy Manager Account

MAJOR SHAREHOLDERS

As on 30.07.2014

Names of Shareholders	No. of Shares
Chitra D. Vidyaprakash	16800
N. Krishnasamraj Ranganayaki	7950
Sumanth Ramamurthi	966950
Master Sanjay Krishna Ramamurthy	100000
Hemlatha Ramamurthi	947050
Minor Nivedita Lakshmi Narayanaswamy	60050
Master Nikhil Govind Ramamurthi	134800
Sumanth Ramamurthi (Managing Trustee) Nikhil Govind Ramamurthi Family Trust	252000
Sumanth Ramamurthi (Managing Trustee) Sanjay Krishna Ramamurthi Family Trust	252000
Arjun Prakash	60000
Nithya Vidhya Prakash	60000
Indralakshmi Vidhya Prakash	60000
Ajeyavel Narayanasamy	60000
V. Rajsri	400
Super Farm Products Limited	912000
Total	3890000

As on 30.07.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	23.45
Directors or relatives of Directors	68.83
Other top fifty shareholders	7.72
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Electric Motor, Over Head Traveling Cleaner and Alternator System
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Thailand Iran Bangladesh Srilanka
Imports :
Products :	Raw Material
Countries :	China USA
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Mother India forming Private Limited, Bangalore, Karnataka, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Nahar Group of Companies, Ludhiana, Punjab, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

150 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Commercial Branch, Trichy Road, Coimbatore -641018, Tamil Nadu, India
Person Name (With Designation)	Mr. Rahul (Deputy Manager)
Contact Number	91-422-2302961
Name of Account Holder	Elgi Electric and Industries Limited
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	5 Year
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash Credit = 50.000 Million
Account Operation	Good
Remarks (If any)	Mr. Rahul informed that company having good track record with banker in payment behavior.

• Corporation Bank, Commercial Branch, Trichy Road, Coimbatore -641018, Tamil Nadu, India
• HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (W), Mumbai – 400013, Maharashtra, India
• HDFC Bank Limited, Mariam Centre, 751-B, Anna Salai, Chennai – 600002, Tamil Nadu, India
• UTI Bank Limited, Trishul, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad – 380006, Gujarat, India
• The Lakshmi Vilas Bank Limited, Upplipalayam Branch, Coimbatore – 641018, Tamil Nadu, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
SHORT TERM BORROWINGS
Working Capital Loans from banks	26.377	3.524
Total	26.377	3.524

Financial Institutions :	Elgi Equipments Limited, Elgi Industrial Complex Iii, Trichy Road, Singanallur , Coimbatore - 641005, Tamil Nadu, India
Auditors :
Name :	N.R. Doraiswami and Company Chartered Accountants
Address :	Manchillu 48, Race Course, Coimbatore – 641018, Tamil Nadu, India
PAN No.:	AABFN5721A
Memberships :	---
Collaborators :	---
Other Related Parties :	Super Spinning Mills Limited Elgi Building Products Limited Sara Elgi Arteriors Limited Sara Elgi Envirotech Limited Sara Elgi Industrial Research and Development Limited Sara Elgi Industries Limited Elgi Ultra Industries Limited Kakatiya Textiles Limited Precot Meridian Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/-each	Rs.75.000 Million
1000000	Preference Shares	Rs.10/-each	Rs.10.000 Million
	Total		Rs.85.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3890000	Equity Shares	Rs.10/-each	Rs.38.900 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	38.900	47.500	47.500
(b) Reserves & Surplus	52.443	12.358	3.235
(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)	91.343	59.858	50.735
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	7.974	11.439	6.358
(c) Other long term liabilities	1.078	1.153	1.153
(d) long-term provisions	8.453	9.166	7.577
Total Non-current Liabilities (3)	17.505	21.758	15.088
(4) Current Liabilities
(a) Short term borrowings	65.014	3.524	85.278
(b) Trade payables	72.853	60.331	63.740
(c) Other current liabilities	91.565	143.252	133.496
(d) Short-term provisions	16.231	11.126	1.768
Total Current Liabilities (4)	245.663	218.233	284.282
TOTAL	354.511	299.849	350.105
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	57.551	62.518	93.889
(ii) Intangible Assets	5.226	8.710	12.195
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	58.903	3.047	0.106
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	67.893	29.437	29.694
(e) Other Non-current assets	0.000	3.846	3.226
Total Non-Current Assets	189.573	107.558	139.110
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	74.046	63.499	76.839
(c) Trade receivables	64.413	93.564	99.761
(d) Cash and cash equivalents	12.214	11.161	11.033
(e) Short-term loans and advances	12.257	20.116	19.968
(f) Other current assets	2.008	3.951	3.394
Total Current Assets	164.938	192.291	210.995
TOTAL	354.511	299.849	350.105

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	673.117	569.490	546.473
	Other Income	3.364	2.031	1.530
	TOTAL	676.481	571.521	548.003
Less	EXPENSES
	Cost of Materials Consumed			306.701
	Purchases of Stock-in-Trade			74.158
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade			4.773
	Employees benefits expense			45.273
	Other expenses			67.513
	TOTAL	599.596	512.183	498.418
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	76.885	59.338	49.585
Less	FINANCIAL EXPENSES	2.045	8.620	17.212
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	74.840	50.718	32.373
Less/ Add	DEPRECIATION/ AMORTISATION	10.511	10.361	12.640
Less	EXCEPTIONAL ITEMS	1.277	0.352	0.548
Less	EXTRAORDINARY ITEMS	0.000	23.659	14.236
	PROFIT/ (LOSS) BEFORE TAX	63.052	16.346	4.949
Less	TAX	17.986	7.224	1.240
	PROFIT/ (LOSS) AFTER TAX	45.066	9.122	3.709
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	55.454	13.115	37.574
	Commission	15.978	16.914	3.739
	TOTAL EARNINGS	71.432	30.029	41.313
	IMPORTS
	Raw Materials	31.065	17.841	16.841
	Traded Goods	41.846	51.451	66.205
	TOTAL IMPORTS	72.911	69.292	83.046
	Earnings / (Loss) Per Share (Rs.)	11.59	2.34	0.95

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	6.69	1.60	0.67
Operating Profit Margin (PBDIT/Sales)	(%)	11.42	10.41	9.07
Return on Total Assets (PBT/Total Assets}	(%)	21.33	5.51	1.41
Return on Investment (ROI) (PBT/Networth)		0.69	0.27	0.10
Debt Equity Ratio (Total Liability/Networth)		0.71	0.06	1.68
Current Ratio (Current Asset/Current Liability)		0.67	0.88	0.74

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	47.500	47.500	38.900
Reserves & Surplus	3.235	12.358	52.443
Net worth	50.735	59.858	91.343
long-term borrowings	0.000	0.000	0.000
Short term borrowings	85.278	3.524	65.014
Total borrowings	85.278	3.524	65.014
Debt/Equity ratio	1.681	0.059	0.712

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	546.473	569.490	673.117
		4.212	18.196

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	546.473	569.490	673.117
Profit	3.709	9.122	45.066
	0.68%	1.60%	6.70%

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	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	Yes

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90009070	19/03/2007 *	72,500,000.00	CORPORATION BANK	INDUSTRIAL FINANCE BRANCH, TRICHY ROAD, COIMBATORE, Tamil Nadu - 641018, INDIA	-
2	90008880	19/03/2007 *	104,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 1443, TRICHY ROAD, COIMBATORE,  Tamil Nadu - 641018, INDIA	-

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
SHORT TERM BORROWINGS
Loans from Directors	38.637	0.000
Total	38.637	0.000

FIXED ASSETS

Tangible Assets

• Land
• Building
• Plant and Machinery
• Patterns
• Electrical Fittings
• Office Equipments
• Furniture and Fittings
• Vehicles
• Other Assets

Intangible Assets

• Technical Know How Fees
• 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 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.62.65
UK Pound	1	Rs.98.53
Euro	1	Rs.78.01

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	SUM
Report Prepared by :	PNM

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
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.