MIRA INFORM REPORT

Report Date :

11.02.2014

IDENTIFICATION DETAILS

Name :	KHS MACHINERY PRIVATE LIMITED
Registered Office :	53, Madhuban, Near Madalpur Under Bridge, Ellisbridge P.O., Ahmedabad – 380 006, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.05.1997
Com. Reg. No.:	04-032397
Capital Investment / Paid-up Capital :	Rs.10.000 millions
CIN No.: [Company Identification No.]	U29199GJ1997FTC032397
PAN No.: [Permanent Account No.]	AAEFP3641G AABCK2513Q
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is in the business of manufacturing of bottling and packaging machines.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3647000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is a subsidiary of KHS GmbH, Germany. It is an established company having a satisfactory track record. The company has achieved significant growth in its profitability during current financial year. General 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 for business dealings at usual trade terms and condition.

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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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.

LOCATIONS

Registered Office :	53, Madhuban, Near Madalpur Under Bridge, Ellisbridge P.O., Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-26442729/ 26440331/ 26443236
Fax No.:	91-79-26421324
E-Mail :	info@mamata.com khs@khsindia.com mahendra@ad1.vsnl.net.in mamata@wilnetonline.net mamatagroup@mamata.com
Website :	www.khsindia.com www.khs.com
Sales Office :	15, Madhuban, Near Madalpur Under Bridge, Ellisbridge P.O., Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-26440331/ 26443236/ 25832866
Fax No.:	91-79-26445146
Factory :	Plot No.14/16, GIDC, Phase-I, Near Hirapur Chowkadi, Vatva-Mahemdabad Highway, Ahmedabad – 382 435, Gujarat, India
Tel. No.:	91-79-66100000
Fax No.:	91-79-66100010
E-Mail :	khs@khsindia.com

DIRECTORS

AS ON 23.09.2013

Name :	Mr. Mahendra Narsinhbhai Patel
Designation :	Director
Address :	15, Kairavi Bunglow, Near Sarthi Hotel, Vastrapur Road, Boadakdev, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	17.01.1949
Date of Appointment :	26.05.1997
DIN No.:	00104997
Name :	Mr. Yatindra Ramakant Sharma
Designation :	Managing Director
Address :	7, Royal Crescent, Bunglows, Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	14.03.1955
Date of Appointment :	01.05.2002
DIN No.:	00349038
PAN No.:	AKUP63527L
Name :	Mr. Jlohann Grabenweger
Designation :	Nominee Director
Address :	Welserstrasse, 28 Ludwigshafenamrhein 67063, Germany
Date of Birth/Age :	02.01.1963
Date of Appointment :	19.01.2006
DIN No.:	01251313
Name :	Mr. Matthias K. Nimeyer
Designation :	Nominee Director
Address :	Pelikanstr 57, Hannover-30177, Germany
Date of Birth/Age :	19.05.1967
Date of Appointment :	06.09.2010
DIN No.:	02855100
Name :	Mr. Parthasarathi Ghose
Designation :	Director
Address :	16, Yogeshwar Bunglows, Gulab Tower Raod, Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	06.02.1969
Date of Appointment :	25.03.2011
DIN No.:	03521131
PAN No.:	ABDFG8545K
Name :	Mr. Anke Baerbel Fischer
Designation :	Nominee Director
Address :	Beimdorf 31, Duesseldorf – 40547, Germany
Date of Birth/Age :	15.06.1965
Date of Appointment :	25.03.2011
DIN No.:	03525431
Name :	Mr. Marc Hartmann
Designation :	Nominee Director
Address :	An Der Thomaskirche 58, Duesseldorf, Germany – 40470
Date of Birth/Age :	12.01.1965
Date of Appointment :	29.09.2012
DIN No.:	05290468

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.09.2013

Names of Shareholders	No. of Shares
Mahendra N. Patel	27490
Nayana M. Patel	10
Mamata Machinery Private Limited, India	13750
KHS GmbH, Germany	945000
Yatindra R. Sharma	13750
Total	1000000

AS ON 23.09.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	94.50
Bodies corporate	1.38
Directors or relatives of directors	4.12
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is in the business of manufacturing of bottling and packaging machines.

Products :

Item Code No. (ITC Code)	84198950
Product Description	Pasteurizer
Item Code No. (ITC Code)	84223000
Product Description	Bottle Filling Machinery
Item Code No. (ITC Code)	84283300
Product Description	Other lifting, handling, loading or unload machine.
Item Code No. (ITC Code)	84313990
Product Description	Parts suitable for use solely or principally with machinery.
Item Code No. (ITC Code)	84431900
Product Description	Date Coder
Item Code No. (ITC Code)	90314900
Product Description	Measuring or Checking Instruments

PRODUCTION STATUS (AS ON 31.03.2011):

Particulars	Unit	Actual Production
Bottling Machines	Nos.	243

Note: *Licensed capacity is not applicable in terms of Government of India’s Notification No. S.O.477 (E) dated July 25, 1991. Management is of the view that considering the nature of manufacturing activity, it is not possible to determine Installed Capacity on which auditors have placed reliance without verification, this being a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, Industrial Estate Branch, Vatva, Ahmedabad – 382 445, Gujarat, India
• Standard Chartered Grindlays Bank, C.G. Road, Ahmedabad – 380 006, Gujarat, India
• HDFC Bank Limited, Navrangpura Branch, Ahmedabad – 380 009, Gujarat, India
• ICICI Bank Limited, JMC Branch

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Loans repayable on demand from Banks (Hypothecation of Vehicles)	3.345	12.213
Total	3.345	12.213

Banking Relations :	---
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	252, Veer Savarkar Marg, Shivagi Park, Dadar, Mumbai – 400 028, Maharashtra, India
PAN No.:	AAEFP3641G
Holding Company :	KHS GmbH, Germany
Fellow Subsidiary Companies :	· KHS Industria De Maquinas Ltda, Brazil · KHS Asia Pte. Limited, Singapore · KHS Inc. USA, United States · KHS Machinery and Equipment (Qinhuangdao) Co. Limited, China · KHS Pacific Pty Limited, Australia · KHS Corpoplast GmbH and Co, KG, Germany · KHS Mexico S.A, Mexico
Other Related Parties :	· Mamata Air Wings, India · Mamata Machinery Private Limited

CAPITAL STRUCTURE

AS ON 23.09.2013

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
1000000	Equity Shares	Rs.10/- each	Rs.10.000 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	10.000	10.000	10.000
(b) Reserves & Surplus	901.815	602.410	513.286
(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)	911.815	612.410	523.286
(3) Non-Current Liabilities
(a) Long-term borrowings	3.345	12.213	5.783
(b) Deferred tax liabilities (Net)	1.993	8.960	12.334
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	24.914	15.628	0.000
Total Non-current Liabilities (3)	30.252	36.801	18.117
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	587.954	469.960	322.364
(c) Other current liabilities	210.732	245.237	289.231
(d) Short-term provisions	65.487	56.163	49.930
Total Current Liabilities (4)	864.173	771.360	661.525
TOTAL	1806.240	1420.571	1202.928
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	349.305	378.774	391.687
(ii) Intangible Assets	1.181	0.970	1.514
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	11.360	39.678	15.089
(e) Other Non-current assets	10.000	3.043	7.981
Total Non-Current Assets	371.846	422.465	416.271
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	336.061	342.786	324.133
(c) Trade receivables	331.403	180.364	287.842
(d) Cash and cash equivalents	742.350	425.180	138.686
(e) Short-term loans and advances	22.930	49.107	35.542
(f) Other current assets	1.650	0.669	0.454
Total Current Assets	1434.394	998.106	786.657
TOTAL	1806.240	1420.571	1202.928

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2654.162	1448.629	2204.418
		Other Income
		TOTAL (A)	2654.162	1448.629	2204.418
Less	EXPENSES
		Office Expenses	2166.511	1266.916	1936.659
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	2166.511	1266.916	1939.659
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		487.651	181.713	264.759
Less	INTEREST & FINANCIAL EXPENSES (D)		8.604	2.679	3.428
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		479.047	179.034	261.331
Less/ Add	DEPRECIATION/ AMORTISATION (F)		50.609	42.682	42.031
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		428.438	136.352	219.300
Less	TAX (H)		129.033	23.983	74.554
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		299.405	112.369	144.746
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		506.023	428.199	303.764
Less	APPROPRIATIONS
		Proposed Dividend	0.000	20.000	5.000
		Tax on Proposed Dividend	0.000	3.245	0.811
		Transfer to General Reserve	0.000	11.300	14.500
	BALANCE CARRIED TO THE B/S		805.428	506.023	428.199
	EARNINGS IN FOREIGN CURRENCY		559.757	95.758	221.284
	Earnings/ (Loss) Per Share (Rs.)		299.41	112.37	144.75

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	11.28	7.76	6.57
Return on Total Assets (PBT/Total Assets}	(%)	23.72	9.60	18.23
Return on Investment (ROI) (PBT/Networth)		0.47	0.22	0.42
Debt Equity Ratio (Total Debt /Networth)		0.00	0.02	0.01
Current Ratio (Current Asset/Current Liability)		1.66	1.29	1.19

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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LITIGATIONS DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 461 of 2012

Status: PENDING ( Converted from : ST/1386/2012 ) CCIN No : 001092201200461

Last Listing Date: 09/08/2012

Coram

· HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI

· HONOURABLE MR.JUSTICE N.V.ANJARIA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX II	MRS MAUNA M BHATT for: Appellant(s)  1

S.NO.	Name of the Respondant	Advocate On Record
1	KHS MACHINERY PRIVATE LIMITED	MR MANISH J SHAH for :Opponent(s)  1

Presented On	: 10/07/2012	Registered On	: 10/07/2012
Bench Category	: DIVISION BENCH	District	: AHMEDABAD
Case Originated From	: THROUGH ADVOCATE	Listed	: 1 times
StageName	: BOARD NO. I-A
Classification	DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act	INCOME-TAX ACT, 1961

OFFICE DETAILS

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	10/07/2012	CERTIFIED COPY	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	6	MRS MAUNA M BHATT:1
2	10/07/2012	MEMO OF APPEAL/PETITION/SUIT	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	20	MRS MAUNA M BHATT:1
3	15/08/2012	VAKALATNAMA	MR MANISH J SHAH ADVOCATE for RESPONDENT(s)  1	-	MR MANISH J SHAH:1
4	15/08/2012	VAKALATNAMA	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	-	MRS MAUNA M BHATT:1
5	11/10/2012	VAKALATNAMA	MR MANISH J SHAH ADVOCATE for RESPONDENT(s)  1	5	MR MANISH J SHAH:1

COURT PROCEEDINGS

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	09/08/2012	3	-	BOARD NO. I-A	FIXED RULE / ADMIT	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE N.V.ANJARIA

AVAILABLE ORDERS

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	View	Download
1	TAX APPEAL/461/2012	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE N.V.ANJARIA	09/08/2012	N	N	View	Download

CERTIFIED COPY

S. No.	Applicant Name	Application Type	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MRS MAUNA M BHATT	ORDINARY	14/08/2012	O/26860/2012	09/08/2012	29/08/2012	30/08/2012	Delivered	-

Note:

No Charges Exist for Company.

GENERAL INFORMATION:

The Company is in the business of Manufacturing of bottling and packaging machines. It was established in the year 1997. It has manufacturing plant in India and sells primarily in India as well as outside India. Today, KHS India offers complete lines as well as stand-alone equipment for Glass, Can and PET application for beverage industry, viz. Soft drinks, Beer and Spirits. The range of machines offered includes Filler Crowner/Cappers, Rinsers, Washers, Deaerator-Mixer-Carbonators, pick-n-place Unpackers and Packers, Labelers, Tunnel Pasteurisers, Shrink packers, Palletisers, all types of Conveyor systems, blow moulding machineries, pouching machine etc.

YEAR IN RETROSPECT:

The company has performed with excellent results. In comparison to last year performance, Sales have grown by 83.2%. There has been impressive profit growth by 269% of last year. Also export registered business of Rs.560.000 millions.

Company generated excellent impression in the market. The company has received prestigious awards like EEPC Export Excellence Award, CII National HR Excellence Award and IGCCC Outstanding Export Award by German JV.

The company has successfully implemented technology of PET Filler Block first time in Indian Market by local manufacturing. They look forward to broad based market driven growth for the next year.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Machinery

· Computer

· Furniture and Fixture

· Vehicles

· Office Equipment

Intangible Assets

· Computer Software

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.62.19
UK Pound	1	Rs.102.14
Euro	1	Rs.84.74

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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	YES
--LITIGATION	YES/NO	YES
--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		50

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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