MIRA INFORM REPORT

Report Date :

20.02.2014

IDENTIFICATION DETAILS

Name :	M B RUBBERS PRIVATE LIMITED
Registered Office :	195, Gagan Vihar, Delhi - 110051
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.07.1988
Com. Reg. No.:	55-052019
Capital Investment / Paid-up Capital :	Rs. 20.000 Millions
CIN No.: [Company Identification No.]	U74899DL1988PTC052019
TAN No.: [Tax Deduction & Collection Account No.]	DELM03296G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Footwear.
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 190000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profit margin of the company is low. Borrowings of the company are also huge. Further, the rating also take into considerations more-than-expected increase in working capital requirement. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : B+
Rating Explanation	High risk of default.
Date	November 13, 2013

Rating Agency Name	CRISIL
Rating	Short term rating : A4
Rating Explanation	Minimal degree of safety it carry very high credit risk.
Date	November 13, 2013

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 PARTED BY

Name :	Mr. Mukesh Jain
Designation :	Finance Department
Contact No.:	91-9650492222
Date :	19.02.2014

LOCATIONS

Registered Office :	195, Gagan Vihar, Delhi – 110051, India
Tel. No.:	Not Available
Mobile No.:	91-9650492222 (Mr. Mukesh Jain)
Fax No.:	Not Available
E-Mail :	jainrakesh412@rediffmail.com ektta@mbrubbers.com mukeshjain556@gmail.com
Website :	http://www.mbrubbers.com
Factory :	D-13 and14, Site-IV, Industrial Area, Sahibabad, District Ghaziabad – 201010, Uttar Pradesh, India
Tel. No.:	91-120-2895464/ 465/ 466
Fax No.:	91-120-2895466
E-Mail :	nikhil.jain@mbrubbers.com ektta@satyam.net.in

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Rakesh Jain

Designation :

Director

Address :

195, Gagan Vihar, Delhi – 110051, India

Date of Birth/Age :

18.03.1957

Date of Appointment :

15.12.1990

DIN No.:

00116438

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	U74899DL1988PTC052019	M B RUBBERS PRIVATE LIMITED	Director	15/12/1990	15/12/1990	-	Active	NO
2	U25199PB1988PTC008570	M.B.RUBBER PRIVATE LIMITED	Director	15/12/1990	15/12/1990	-	Not Available for eFiling	NO
3	U70109DL2006PTC149013	ROCKWOOD INFRASTRUCTURE PRIVATE LIMITED.	Director	28/06/2006	28/06/2006	-	Active	NO
4	U70101DL2006PTC148027	ASHARFI PROPERTIES AND DEVELOPRS PPRIVATE LIMITED	Additional director	13/11/2006	13/11/2006	15/05/2008	Active	NO
5	U77499DL2005PTC135336	R S PIPES PRIVATE LIMITED	Director	08/12/2006	08/12/2006	-	Active	NO
6	U91100MH1951GAT008683	ALL INDIA RUBBER INNDUSTRIES ASSOCIATION	Director	27/09/2008	27/09/2008	-	Active	NO

Name :

Mr. Vipan Mehta

Designation :

Director

Address :

195, Gagan Vihar, Delhi – 110051, India

Date of Birth/Age :

22.05.1958

Date of Appointment :

15.12.1990

DIN No.:

00119003

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	Company/ LLP Status	Defaulting status
1	U25199PB1988PTC008570	M.B.RUBBER PRIVATE LIMITED	Director	15/12/1990	15/12/1990	Not Available for eFiling	NO
2	U74899DL1988PTC052019	M B RUBBERS PRIVATE LIMITED	Director	15/12/1990	15/12/1990	Active	NO
3	U77499DL2005PTC135336	R S PIPES PRIVATE LIMITED	Director	08/12/2006	08/12/2006	Active	NO

Name :

Mr. Parmod Jain

Designation :

Director

Address :

194, Gagan Vihar, Delhi – 110051, India

Date of Birth/Age :

01.08.1959

Date of Appointment :

03.08.2005

DIN No.:

00120111

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	Company/ LLP Status	Defaulting status
1	U10000DL1994PTC058895	ZEE FOOTWEARS PRIVATE LIMITED	Director	09/05/1994	09/05/1994	Active	NO
2	U25199PB1988PTC008570	M.B.RUBBER PRIVATE LIMITED	Director	03/08/2005	03/08/2005	Not Available for eFiling	NO
3	U74899DL1988PTC052019	M B RUBBERS PRIVATE LIMITED	Director	03/08/2005	03/08/2005	Active	NO

KEY EXECUTIVES

Name :	Mr. Mukesh Jain
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	98.01
Other top fifty shareholders	1.99
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Footwear.
Exports :
Products :	Finished Goods
Countries :	· Germany
Imports :
Products :	Raw Material
Countries :	· Korea
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash, Credit and Depend

GENERAL INFORMATION

Suppliers :

· Reliance Industries Limited

Customers :

End Users

· Suncorp Exim India Private Limited

No. of Employees :

350 (Approximately)

Bankers :

· Oriental Bank of Commerce

SSI Branch, Site IV, Industrial Area, Sahibabad, Ghaziabad - 201001, Uttar Pradesh, India

· HDFC Bank Limited

· Deutsche Bank

· Indusind Bank Limited

Facilities :

Cash Credit – Rs. 137.000 Millions, L/C – Rs. 20.000 Millions, Bank Guarantee – Rs. 30.000 Millions (From Oriental Bank of Commerce)

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Term Loans From Banks	93.066	27.045
From Others	0.000	19.379
SHORT TERM BORROWINGS
Loans repayable on demand Cash Credit #	94.725	111.268
Total	187.791	157.692
SHORT TERM BORROWINGS Cash Credits limit from Oriental Bank of Commerce is secured against hypothecation of stocks and book debts and equitable mortgage of specific properties and personal guarantee of directors.

Banking Relations :	--
Financial Institutions :	· Kotak Prime Limited · GE Money Financial Services Limited
Auditors :
Name :	Lalit Gupta And Associates Chartered Accountants
Address :	412-Arunachal Building, 19-Barakhamba Road, Connaught Place, New Delhi – 110001, India
Tel. No.:	91-11-23717400/ 23718900
Income-tax PAN of auditor or auditor's firm :	AAAFL5833E
Associates :	· R. S. Pipes Private Limited · H. B. Rubber Private Limited · Zee Footwear Private Limited · Theta International Private Limited · Oshina Expo Private Limited · Oshina Expo

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs. 100/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs. 100/- each	Rs. 20.000 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	20.000	20.000	8.000
(b) Reserves & Surplus	27.533	21.985	17.701
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	2.100
Total Shareholders’ Funds (1) + (2)	47.533	41.985	27.801
(3) Non-Current Liabilities
(a) long-term borrowings	116.019	63.535	71.643
(b) Deferred tax liabilities (Net)	0.070	0.067	0.278
(c) Other long term liabilities	4.094	4.215	4.215
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	120.183	67.817	76.136
(4) Current Liabilities
(a) Short term borrowings	94.725	111.268	88.581
(b) Trade payables	143.625	49.251	39.878
(c) Other current liabilities	23.918	12.750	8.107
(d) Short-term provisions	2.606	2.323	1.976
Total Current Liabilities (4)	264.874	175.592	138.542
TOTAL	432.590	285.394	242.479
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	45.514	37.055	35.088
(ii) Intangible Assets	0.000	0.000	0.000
(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	0.020	0.020	0.020
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	8.469	2.043	2.059
(e) Other Non-current assets	5.018	3.473	3.474
Total Non-Current Assets	59.021	42.591	40.641
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	104.440	97.627	107.724
(c) Trade receivables	220.780	123.231	70.394
(d) Cash and cash equivalents	6.566	3.090	2.470
(e) Short-term loans and advances	41.547	18.747	20.998
(f) Other current assets	0.236	0.108	0.252
Total Current Assets	373.569	242.803	201.838
TOTAL	432.590	285.394	242.479

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	760.460	457.132	397.122
		Other Income	1.145	1.621	4.349
		TOTAL (A)	761.605	458.753	401.471
Less	EXPENSES
		Cost of Materials Consumed	446.003	361.467	324.054
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(14.118)	6.441	(20.076)
		Purchases of Stock-in-Trade	201.376	4.488	17.516
		Employees benefits expense	21.769	15.353	14.244
		Other expenses	67.557	36.211	37.131
		TOTAL (B)	722.587	423.960	372.869
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		39.018	34.793	28.602
Less	FINANCIAL EXPENSES (D)		24.099	22.538	17.663
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.919	12.255	10.939
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.763	5.858	5.417
	PROFIT BEFORE TAX (E-F) (G)		8.156	6.397	5.522
Less	TAX (H)		2.608	2.113	1.765
	PROFIT AFTER TAX (G-H) (I)		5.548	4.284	3.757
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.445	0.000	0.000
	IMPORTS
		Raw Materials	27.643	43.829	37.779
		Capital Goods	8.480	2.842	0.654
	TOTAL IMPORTS		36.123	46.671	38.433
	Earnings Per Share (Rs.)		27.74	39.21	46.96

Expected Sales (2013-2014): Rs. 1000.000 Millions

The above information has been parted by Mr. Mukesh Jain (Finance Department)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.73	0.93	0.94
Net Profit Margin (PBT/Sales)	(%)	1.07	1.40	1.39
Return on Total Assets (PBT/Total Assets}	(%)	1.89	2.24	2.28
Return on Investment (ROI) (PBT/Networth)		0.17	0.15	0.20
Debt Equity Ratio (Total Debt/Networth)		4.43	4.16	5.76
Current Ratio (Current Asset/Current Liability)		1.41	1.38	1.46

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Share Capital	8.000	20.000	20.000
Reserves & Surplus	17.701	21.985	27.533
Share Application money pending allotment	2.100	0.000	0.000
Net worth	27.801	41.985	47.533
long-term borrowings	71.643	63.535	116.019
Short term borrowings	88.581	111.268	94.725
Total borrowings	160.224	174.803	210.744
Debt/Equity ratio	5.763	4.163	4.434

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
SALES	397.122	457.132	760.460
		15.111	66.355

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Sales	397.122	457.132	760.460
Profit	3.757	4.284	5.548
	0.95%	0.94%	0.73%

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	Yes
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	10098912	11/04/2008	6,800,000.00	ORIENTAL BANK OF COMMERCE SS	BRANCH SITE-IV INDUSTRIAL AREA, SAHIBABAD, GHAZIABAD - 201001, UTTAR PRADESH, INDIA	A36833119
2	10019476	08/09/2006	30,500,000.00	ORIENTAL BANK OF COMMERCE SSI	BRANCH SITE-IV INDUSTRIAL AREA, SAHIBABAD, GHAZIABAD - 201001, UTTAR PRADESH, INDIA	A04615878
3	80000648	03/07/2013 *	187,000,000.00	ORIENTAL BANK OF COMMERCE	SSI BRANCH SITE-IV, INDUSTRIAL AREA, SAHIBABAD, GHAZIABAD - 201001, UTTAR PRADESH, INDIA	B80738883
4	80000649	03/07/2013 *	187,000,000.00	ORIENTAL BANK OF COMMERCE	SSI BRANCH SITE-IV, INDUSTRIAL AREA, SAHIBABAD, GHAZIABAD - 201001, UTTAR PRADESH, INDIA	B80739030

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Loans and Advances from related parties	22.953	17.111
Total	22.953	17.111

CONTINGENT LIABILITIES:

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Bank Guarantee	23.817	4.628

TRADE REFERENCES:

· Reliance Industries Limited

· Suncorp Exim India Private Limited

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipments

· Computers and Peripherals

· Vehicles

· Commercial Plot

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. 62.12
UK Pound	1	Rs. 103.93
Euro	1	Rs. 85.17

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.