MIRA INFORM REPORT

Report Date :

29.12.2014

IDENTIFICATION DETAILS

Name :	CADENSWORTH (INDIA) LIMITED (w.e.f. 07.12.2007)
Formerly Known As :	CADENSWORTH (INDIA) PRIVATE LIMITED
Registered Office :	SPL Guindy House, 95 Mount Road, Guindy, Chennai - 600032, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.12.2002
Com. Reg. No.:	18-050014
Capital Investment / Paid-up Capital :	Rs.13.013 Millions
CIN No.: [Company Identification No.]	U52392TN2002PLC050014
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CHEC04183E
PAN No.: [Permanent Account No.]	AABCC9872E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Distribution business and after sales services of IT and other products.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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 :	Clear
Comments :	Subject is an established company having satisfactory track record. Financial position of the company seems to be decent. Trade relations are 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 – 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

NOT AVAILABLE

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 :	Ms. Shilpa
Designation :	Business Development Manager
Contact No.:	91-9022611881
Date :	27.12.2014

LOCATIONS

Registered Office :	SPL Guindy House, 95 Mount Road, Guindy, Chennai-600032, Tamilnadu, India
Tel. No.:	91-44-30690290 / 42243353
Fax No.:	91-44-22352790
E-Mail :	shanmugam.kannan@cdwindia.com muthukumaran.a@reingtonco.in
Corporate Office :	No. 21, Venkatakrishna Road, Mandaveli, Chennai - 600028, Tamilnadu, India
Services Division – RMA and Repair :	JSD Towers, 79 , J.N. Road, Vadapalani, Chennai – 600026, Tamilnadu, India
Branch Office 1:	Ground Floor, B-28, Okhala Industrial Estate, Phase – 1, New Delhi – 110020, India
Branch Offices :	Also Located At: · Delhi · Mumbai · Kolkata · Hyderabad · Goa · Gujarat · Karnataka · Tamilnadu · Haryana · Pondichery · Rajasthan

DIRECTORS

As on 24.07.2014

Name :

Mr. Raghunandan Maniyedath

Designation :

Director

Address :

Flat No. 5, Sreyas Visalakshi, 22, First Street, Cenotaph Road, Teynampet, Chennai - 600018, Tamilnadu, India

Date of Birth/Age :

01.11.1947

Date of Appointment :

11.12.2002

DIN No.:

00082171

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	L52599TN1961PLC028758	REDINGTON (INDIA) LIMITED	Whole-time director	01/03/2013	01/03/1999	-	Active	NO
2	U65929TN1990PLC057809	NOOK MICRO DISTRIBUTION LIMITED	Director	30/03/1999	30/03/1999	-	Active	NO
3	U52392TN2002PLC050014	CADENSWORTH (INDIA) LIMITED	Director	11/12/2002	11/12/2002	-	Active	NO
4	U52390TN2011PLC081001	CURRENTS TECHNOLOGY RETAIL (INDIA) LIMITED	Director	10/06/2011	10/06/2011	17/10/2013	Active	NO

Name :

Mr. Arunachalam Balasubramaniam

Designation :

Director

Address :

B 31, Ashok Visesh Gopala Krishna Road, T. Nagar, Chennai - 600017, Tamilnadu, India

Date of Birth/Age :

06.05.1953

Date of Appointment :

07.02.2006

DIN No.:

00082410

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	U65929TN1990PLC057809	NOOK MICRO DISTRIBUTION LIMITED	Director	30/04/2000	30/04/2000	-	Active	NO
2	U52392TN2002PLC050014	CADENSWORTH (INDIA) LIMITED	Director	07/02/2006	07/02/2006	-	Active	NO
3	U52390TN2011PLC081001	CURRENTS TECHNOLOGY RETAIL (INDIA) LIMITED	Director	10/06/2011	10/06/2011	17/10/2013	Active	NO
4	U65993TN1995PLC032050	REDINGTON (INDIA) INVESTMENT LIMITED	Director	30/09/2011	27/07/2011	29/06/2012	Active	NO

Name :

Sarthi Partha Neogi

Designation :

Director

Address :

Flat 2A, Athreya Apartments, 94A, St. Mary’s Road, R A Puram, Chennai-600028, Tamilnadu, India

Date of Birth/Age :

27.02.1958

Date of Appointment :

29.09.2007

DIN No.:

01816223

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	U52392TN2002PLC050014	CADENSWORTH (INDIA) LIMITED	Director	29/09/2007	07/09/2007	-	Active	NO
2	U93030MH2013NPL239265	Technology Distribution Association of India	Director	10/06/2014	10/06/2014	-	Active	NO

Name :

Mr. Anand Chakravarthy

Designation :

Director

Address :

Coral Samudra, 3C No. 19, Seaward Road, Valmikingr, Thiruvamiyur, Chennai-600041, Tamilnadu, India

Date of Birth/Age :

16.07.1967

Date of Appointment :

26.07.2013

DIN No.:

06585368

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	U52392TN2002PLC050014	CADENSWORTH (INDIA) LIMITED	Director	26/07/2013	26/04/2013	-	Active	NO

Name :

Mrs. Parvathi Jagannadhan

Designation :

Director

Address :

11A, 14^th Seaward Eoad, Valmiki Nagar, Thiruvanmiyur, Chennai – 600041, Tamilnadu, India

Date of Birth/Age :

29.01.1958

Date of Appointment :

24.07.2014

DIN No.:

06871023

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	U65929TN1990PLC057809	Nook Micro Distribution Limited	Director	14/07/2014	16/05/2014	-	Active	NO
2	U52392TN2002PLC050014	CADENSWORTH (INDIA) LIMITED	Director	24/07/2014	20/05/2014	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Shilpa
Designation :	Business Development Manager

MAJOR SHAREHOLDERS

As on 24.07.2014

Names of Shareholders	No. of Shares
Raghunandan Maniyedath	1
Redington (India) Limited, India	1301288
J K Senapati	1
E H Kasturi Rangan	1
A Athinarayanan	1
Ramesh Natarajan	1
Parvathi Jagannadhan	1
Total	1301294

Equity Share Break up (Percentage of Total Equity)

As on 24.07.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Distribution business and after sales services of IT and other products.

Products :

Product Description	Item Code No. (ITC Code)
Distribution of networking products	84717090 84717020

Brand Names :

--

Agencies Held :

--

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Information denied by management

Bankers :

· The Hong Kong and Shanghai Banking Corporation Limited, No 30, Rajaji Salai, Chennai - 600001, Tamilnadu, India

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
SHORT TERM BORROWINGS
Loans repayable on demand from banks	541.193	504.170
Loans repayable on demand from others	0.000	100.000
Total	541.193	604.170

Banking Relations :	--
Auditors :
Name :	A.S. Varadharajan and Company Chartered Accountants
Address :	Flat No. 2, Ground Floor, Krishnalaya Flats No. 243 (Old No. 118), R.K. Mutt Road, Mandaveli, Chennai-600028, Tamilnadu, India
PAN No:	AAIFA7346M
Memberships :	--
Collaborators :	--
Holding Company :	· Redington (India) Limited CIN No.: L52599TN1961PLC028758
Associate :	· Currents Technology Retail (India) Limited CIN No.: U52390TN2011PLC081001
Fellow Subsidiary Company :	· Easyaccess Financial Services Limited CIN No.: U65999TN2005PLC069447 · Nook Micro Distribution Limited CIN No.: U65929TN1990PLC057809 · Proconnect Supply Chain Solutions Limited CIN No.: U63030TN2012PLC087458 · Redington Distribution Pte Limited

CAPITAL STRUCTURE

As on 24.07.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1301294	Equity Shares	Rs.10/- each	Rs.13.013 Millions

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	13.013	13.013	13.013
(b) Reserves & Surplus	326.614	229.761	156.508
(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)	339.627	242.774	169.521
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	135.000	135.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	4.149	8.442	0.650
Total Non-current Liabilities (3)	4.149	143.442	135.650
(4) Current Liabilities
(a) Short term borrowings	676.193	604.170	0.000
(b) Trade payables	1,706.966	436.521	10.602
(c) Other current liabilities	99.099	134.031	6.064
(d) Short-term provisions	0.322	0.151	0.105
Total Current Liabilities (4)	2,482.580	1,174.873	16.771
TOTAL	2,826.356	1,561.089	321.942
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17.786	12.183	9.637
(ii) Intangible Assets	0.162	0.281	0.005
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	7.653	4.984	4.989
(d) Long-term Loan and Advances	0.061	0.288	5.537
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	25.662	17.736	20.168
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	926.304	102.100	2.929
(c) Trade receivables	1,756.165	1,386.840	31.181
(d) Cash and cash equivalents	85.546	19.592	50.758
(e) Short-term loans and advances	32.679	34.821	216.906
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2,800.694	1,543.353	301.774
TOTAL	2,826.356	1,561.089	321.942

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		4,298.644	2,120.929	107.923
		Other Income		91.968	18.042	16.775
		TOTAL (A)		4,390.612	2,138.971	124.698
Less	EXPENSES
		Cost of Materials Consumed		4,766.263	2,005.390	8.237
		Purchase of Stock-in-trade		0.000	0.000	2.954
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(824.204)	(99.171)	0.000
		Employee Benefits Expenses		63.211	36.137	12.187
		Other Expenses		161.643	70.751	35.186
		TOTAL (B)		4,166.913	2,013.107	58.564
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			223.699	125.864	66.134
Less	FINANCIAL EXPENSES (D)			74.152	12.735	3.347
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			149.547	113.129	62.787
Less	DEPRECIATION/ AMORTISATION (F)			4.263	4.571	4.732
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			145.284	108.558	58.055
Less	TAX (H)			48.431	35.305	18.777
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			96.853	73.253	39.278
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	95.508	87.503	0.000
	TOTAL EARNINGS			95.508	87.503	0.000
	IMPORTS
			Raw Materials	3032.610	1340.246	0.000
			Stores & Spares	0.251	0.315	0.000
			Capital Goods	0.000	2.334	0.000
	TOTAL IMPORTS			3032.861	1342.895	0.000
	Earnings / (Loss) Per Share (Rs.)			74.43	56.29	30.18

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	2.25	3.45	36.39
Operating Profit Margin (PBIDT/Sales)	(%)	5.20	5.93	61.28
Return on Total Assets (PBT/Total Assets}	(%)	5.15	6.98	18.32
Return on Investment (ROI) (PBT/Networth)		0.43	0.45	0.34
Debt Equity Ratio (Total Debt /Networth)		1.99	3.04	0.80
Current Ratio (Current Asset/Current Liability)		1.13	1.31	17.99

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	13.013	13.013	13.013
Reserves & Surplus	156.508	229.761	326.614
Share Application money pending allotment	0.000	0.000	0.000
Net worth	169.521	242.774	339.627
Long Term borrowings	135.000	135.000	0.000
Short Term borrowings	0.000	604.170	676.193
Total borrowings	135.000	739.170	676.193
Debt/Equity ratio	0.796	3.045	1.991

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	107.923	2,120.929	4,298.644
		1,865.224	102.677

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	107.923	2,120.929	4,298.644
Profit	39.278	73.253	96.853
	36.39%	3.45%	2.25%

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	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	----------
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 LOANS:

Particulars	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Loans repayable on demand	0.000	135.000
SHORT TERM BORROWINGS
Loans repayable on demand	135.000	0.000
Total	135.000	135.000

PERFORMANCE

The revenue of your Company was Rs.4390.612 Millions as against Rs.2138.971 Millions in the previous year (Year on Year Growth 105.27%) and the Profit after tax was Rs.96.853 Millions as against Rs.73.253 Millions in the previous year (Year on Year Growth 32.21 %). The Earnings per Share is increased to Rs.74.43 in the year as compared to Rs. 56.29 in the previous year.

BUSINESS REVIEW:

In a year filled with economic uncertainty and slowing demand, The Company has managed to double its revenue and also grew absolute gross margin by over 50% year on year.

Most of the brands adopted for distribution during last one year have made significant contribution to both revenue and profitability growth. Revenue from distribution of products in the area of Storage, Wireless LAN, Security, 3D printing solutions made significant contribution to the growth. The Company will continue identify and add key brands in disruptive technology areas of IT infrastructure world for distribution.

The Company strongly believes that channel enablement as a key differentiator in Solution Based Distribution. The Company has made significant investments in the areas of Consulting, Training, Services (CTS) and lead generation to support its channel partners. The Company will continue to make investments in these areas to strengthen its capabilities to enable channel.

Repairs, Return Material Authorisation (RMA), Reverse Logistics Services business division showed a promising growth during the year. Toshiba Digital Media Network Taiwan Corporation signed up with Cadensworth for RMA support Services of Hard Disk Drive in India during the year. Flash Global Logistics added few more brands for the services rendered by The Company. The Company will continue to look for new brands to boost revenues from RMA services during coming year.

The Company was recognized and honoured in distribution business by two vendors (EMC & DLink) during the year.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10508632	18/06/2014	300,000,000.00	ING Vysya Bank Limited	No.22,Ing Vysya House, M.G. Road, Bangalore, Bangalore, Karnataka - 560001, India	C11021151
2	10446128	19/08/2013	250,000,000.00	The Hongkong And Shanghai Banking Corporation Limited	No 30, Rajaji Salai, Chennai, Tamil Nadu - 600001, India	B83595785
3	10422669	02/04/2013	250,000,000.00	HDFC Bank Limited	HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	B74012725

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.63.64
UK Pound	1	Rs.98.98
Euro	1	Rs.77.74

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.