MIRA INFORM REPORT

Report Date :

24.01.2014

IDENTIFICATION DETAILS

Name :	CONNELL BROS COMPANY (INDIA) PRIVATE LIMITED
Registered Office :	1^st Floor, Hamilton House, 8, J.N. Heredia Marg, Ballard Estate, Mumbai – 400 038, Maharashtra
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	18.05.1999
Com. Reg. No.:	11-119904
Capital Investment / Paid-up Capital :	Rs.53.900 Millions
CIN No.: [Company Identification No.]	U24110MH1999PTC119904
TAN No.: [Tax Deduction & Collection Account No.]	MUMC07445E MUMC10633A MUMC11797C
PAN No.: [Permanent Account No.]	AAACC9611004C
Legal Form :	Private Limited Liability Company
Line of Business :	Distributor of Chemicals.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 1500000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a subsidiary of WILBUR ELLIS CO. UNITRED STATES. It is as established company having moderate track record. The management has failed to file its financial with government department for the year 2012 and 2013. As per previous financial records of 2011, general financial position of the company seems to be fair. However, trade relations are fair. Business is active. Payment terms are unknown. The company can be considered for business dealing 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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 (GENERAL DETAILS)

Name :	Mr. Milan Pathare
Designation :	Accounts Executive
Contact No.:	91-22-66138300
Date :	20.01.2014

LOCATIONS

Registered Office :	1^st Floor, Hamilton House, 8, J.N. Heredia Marg, Ballard Estate, Mumbai – 400 038, Maharashtra, India
Tel. No.:	91-22-22815060/ 66644483/ 66138300
Mobile No.:	91-9820199553 (Ms. Yogita Parab)
Fax No.:	91-22-22818060/ 33818330
E-Mail :	mpathare@cbcind.com admin@abcind.com vrodrigu@cbcind.com ymathur@cbcind.com cbcin.admin@wecocbc.com milan.pathare@wecocbc.com
Website :	http://www.connellbrothers.com http://www.clocind.com http://www.wecocbc.com
Area :	1600 sq. ft.
Location :	Owned
Warehouse:	Located at: · Bhiwandi · Panvel · Delhi
Branch Office 1 :	3^rd Floor, Bansilal Building, 9/15, Homy Mody Street, Fort, Mumbai - 400 023, Maharashtra, India
Tel. No.:	91-22-22815060
Fax No.:	91-22-22818060
E-Mail :	ymathur@cbcind.com
Area:	3500 sq. ft.
Location :	Rented
Branch Office 2 :	1112, Kailash Building, 26, Kasturba Gandhi Marg, New Delhi - 110 001, India
Tel. No.:	91-11-23713691
Fax No.:	91-11-23713692
Area:	1200 sq. ft.
Location :	Rented
Overseas Office:	15 Kamal Ataturk Avenue, Bashati Condominium, Apartment # C/11-12, Road # 17, Banani, Dhaka - 1213
Tel. No.:	88 044 746 50728
Fax No.:	88 044 768 02517
Area:	500 sq. ft.
Location :	Rented

DIRECTORS

AS ON 13.04.2012

Name :

Theodore Eliot III

Designation :

Managing Director

Address :

401, Golden Gate, Avenue Belvedere, California 94920

Date of Birth/Age :

17.10.1953

Date of Appointment :

18.05.1999

DIN No.:

02231188

Name :

Mr. Parthiv Tanil Kilachand

Designation :

Director

Address :

Kilachand House, 95, Nepean Sea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

27.03.1967

Date of Appointment :

18.05.1999

DIN No.:

00005516

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	L21308GJ1989PLC012743	GUJARAT POLY AVX ELECTRONICS LIMITED	Director	11/03/1992	11/03/1992	-	Active	NO
2	U51900MH1994PTC078663	RASAYANI TRADERS PRIVATE LIMITED	Director	30/06/1994	30/06/1994	-	Active	NO
3	L24100MH1955PLC009663	POLYCHEM LIMITED	Managing director	27/07/2012	03/12/1996	-	Active	NO
4	U51900MH1997PTC105312	HIGHCLASS TRADING PRIVATE LIMITED	Director	01/08/1997	01/08/1997	-	Active	NO
5	U17110MH1950PLC007979	GINNERS AND PRESSERS LIMITED	Director	14/08/1997	14/08/1997	-	Active	NO
6	U24110MH1999PTC119904	CONNELL BROS COMPANY (INDIA) PRIVATE LIMITED	Director	18/05/1999	18/05/1999	-	Active	NO
7	U65920MH1983PTC031628	RO-AN INVESTMENTS PRIVATE LIMITED	Director	14/12/2001	14/12/2001	-	Dissolved	NO
8	U65920MH1983PTC031612	VIRSUN INVESTMENTS PRIVATE LIMITED	Director	14/12/2001	14/12/2001	-	Active	NO
9	U65920MH1983PTC031611	MASUMA TRADECORP PRIVATE LIMITED	Director	14/12/2001	14/12/2001	-	Active	NO
10	U51900MH1995PLC087924	SUN TAN TRADING COMPANY LIMITED	Director	12/04/2004	12/04/2004	-	Active	NO
11	U51220MH2000PTC129864	GOURMET LOGISTICS PRIVATE LIMITED	Director	10/03/2006	10/03/2006	21/06/2010	Active	NO
12	U74999MH2004PTC175698	JSM CORPORATION PRIVATE LIMITED	Director	29/09/2007	12/06/2007	-	Active	NO
13	U74140MH2004PTC175689	H R CAFE INDIA PRIVATE LIMITED	Director	29/09/2007	24/08/2007	-	Amalgamated	NO
14	U41000MH2010PLC208418	ENVIRONMENTAL PURIFIERS LIMITED	Director	29/09/2010	29/09/2010	07/12/2010	Active	NO

Name :

Mr. John Pomeroy Thacher

Designation :

Director

Address :

2482/ Spring Mountain Road, St. Helen, California-94574, USA

Date of Birth/Age :

01.10.1954

Date of Appointment :

11.02.2008

DIN No.:

02353500

Name :

Mr. Nandish Tanil Kilachand

Designation :

Director

Address :

95, Nepean Sea Road, Malabar Hill, Kilachand House, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

23.07.1972

Date of Appointment :

18.05.1999

DIN No.:

00005530

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	U32109MH1993PTC072980	CAPUCHIM ELECTRONICS PRIVATE LIMITED	Director	15/02/1994	15/02/1994	-	Dissolved	NO
2	U24110MH1999PTC119904	CONNELL BROS COMPANY (INDIA) PRIVATE LIMITED	Director	18/05/1999	18/05/1999	-	Active	NO
3	U17110MH1950PLC007979	GINNERS AND PRESSERS LIMITED	Director	03/06/1999	03/06/1999	-	Active	NO
4	U51900MH1994PTC078663	RASAYANI TRADERS PRIVATE LIMITED	Director	30/08/1999	30/08/1999	-	Active	NO
5	U51900MH1995PLC087924	SUN TAN TRADING COMPANY LIMITED	Director	31/08/1999	31/08/1999	-	Active	NO
6	U65920MH1983PTC031612	VIRSUN INVESTMENTS PRIVATE LIMITED	Director	14/12/2001	14/12/2001	-	Active	NO
7	U65920MH1983PTC031611	MASUMA TRADECORP PRIVATE LIMITED	Director	14/12/2001	14/12/2001	-	Active	NO
8	U65920MH1983PTC031628	RO-AN INVESTMENTS PRIVATE LIMITED	Director	14/12/2001	14/12/2001	-	Dissolved	NO
9	U15100MH1947PTC005588	TULSI GLOBAL LOGISTICS PRIVATE LIMITED	Whole-time director	01/06/2013	20/12/2002	-	Active	NO
10	U41000MH2010PLC208418	ENVIRONMENTAL PURIFIERS LIMITED	Director	29/09/2010	29/09/2010	07/12/2010	Active	NO
11	L24100MH1955PLC009663	POLYCHEM LIMITED	Director	17/09/2012	27/07/2012	-	Active	NO

Name :

Jeffrey Francis Streblow

Designation :

Director appointed in casual vacancy

Address :

5137, Commbsville Road, California, USA – 94558

Date of Birth/Age :

04.06.1959

Date of Appointment :

17.05.2009

DIN No.:

02682288

Name :

Mr. Yogesh Shivraj Mathur

Designation :

Whole-Time Director

Address :

13- Padam-1, 4B, Peddar Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

22.11.1950

Date of Appointment :

10.05.2011

DIN No.:

01059977

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	U15549PN1995PTC014548	LOKRANJAN BREWERIES PRIVATE LIMITED	Director	03/12/1996	03/12/1996	Active	NO
2	U65990MH1983PTC031629	SHAJA INVESTMENTS PRIVATE LIMITED	Director	20/12/2002	20/12/2002	Active	NO
3	U24110MH1999PTC119904	CONNELL BROS COMPANY (INDIA) PRIVATE LIMITED	Whole-time director	10/05/2011	10/05/2011	Active	NO

Name :

Eugene Scott James Allan Graddy

Designation :

Additional director

Address :

11, Ardmore PK, #13-01, Ardmore PK, Singapore – 259957

Date of Birth/Age :

23.05.1961

Date of Appointment :

10.05.2011

DIN No.:

03583392

KEY EXECUTIVES

Name :	Mr. Milan Pathare
Designation :	Accounts Executive

MAJOR SHAREHOLDERS

AS ON 13.04.2012

Names of Shareholders	No. of Shares
Rasayani Traders Private Limited, India	269500
Wilbur Ellis Company, USA	269500
Total	539000

Equity Share Break up (Percentage of Total Equity)

AS ON 13.04.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributor of Chemicals.

Products :

PRODUCT DESCRIPTION	ITC CODE NO.
Acylic Polymers	39.06
Paper Chemicals	38.24.90
Pigments	32.04

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

100 (Approximately)

Bankers :

· ABN Amro Bank N.V., 7^th Floor, Sakhar Bhavan, Nariman Road, Mumbai – 400 021, Maharashtra, India

· Royal Bank of Scotland, Fort, Mumbai, Maharashtra, India

· ABN Amro Bank N.V., 14, Veer airman Road, Mumbai – 400 023, Maharashtra, India

Facilities :

SECURED LOANS:

PARTICULARS	31.12.2011 (Rs. in Millions)	31.12.2010 (Rs. in Millions)
Working Capital Loans from Banks	63.000	45.000
Total	63.000	45.000

Banking Relations :	--
Auditors :
Name :	Lovelock and Lewes Chartered Accountants
Address :	252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AABFL5878L
Subsidiaries :	Connell Bros Company Bangladesh (Private) Limited

CAPITAL STRUCTURE

AS ON 13.04.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
800000	Equity Shares	Rs.100/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
539000	Equity Shares	Rs.100/- each	Rs.53.900 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		53.900	53.900	53.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		326.774	189.902	134.392
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		380.674	243.802	188.292
LOAN FUNDS
1] Secured Loans		63.000	45.000	21.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		63.000	45.000	21.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		443.674	288.802	209.292
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		43.501	43.575	42.703
Capital work-in-progress		0.498	0.284	0.000
INVESTMENT		0.700	0.700	0.700
DEFERREX TAX ASSETS		11.308	5.969	6.245
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	229.003	212.954	127.624
	Sundry Debtors	255.278	220.002	176.928
	Cash & Bank Balances	56.997	98.338	78.244
	Other Current Assets	0.904	0.968	1.075
	Loans & Advances	197.692	118.635	16.692
Total Current Assets		739.874	650.897	400.563
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	147.170
	Current Liabilities	182.707	243.788	23.752
	Provisions	169.500	168.835	69.997
Total Current Liabilities		352.207	412.623	240.919
Net Current Assets		387.667	238.274	159.644
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		443.674	288.802	209.292

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income from Operations	1485.040	1278.390	1014.570
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	NA	NA
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		215.260	196.620	145.670
Less	INTEREST (D)		7.480	2.630	6.550
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		207.780	193.990	139.120
Less	DEPRECIATION/ AMORTISATION (F)		6.050	6.340	6.330
	PROFIT BEFORE TAX (E-F) (G)		201.730	187.650	132.790
Less	TAX (H)		64.860	62.610	46.090
	PROFIT AFTER TAX (G-H) (I)		136.870	125.040	86.700
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		144.600	101.690	93.680
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares	0.000	59.820	59.820
		Tax on Dividend on Equity Shares	0.000	9.710	10.170
		Transfer to General Reserve	0.000	12.600	8.700
	BALANCE CARRIED TO THE B/S		281.470	144.600	101.690
	EARNINGS IN FOREIGN CURRENCY		776.020	107.020	75.690
	Earnings Per Share (Rs.)		253.93	231.99	160.86

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
Net Profit Margin (PBT/Sales)	(%)	13.58	14.68	13.09
Return on Total Assets (PBT/Total Assets}	(%)	25.75	31.53	29.96
Return on Investment (ROI) (PBT/Networth)		0.53	0.77	0.70
Debt Equity Ratio (Total Debt /Networth)		0.17	0.18	0.11
Current Ratio (Current Asset/Current Liability)		2.10	1.58	1.66

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	Yes
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	No
18]	Major customers	No
19]	Payments terms	Yes
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	No
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

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10029028	29/10/2008 *	150,000,000.00	ABN AMRO BANK N. V.	7TH FLOOR, SAKHAR BHAVAN, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA	A49438963

* Date of charge modification

FIXED ASSETS:

Intangible Assets

· Software

Tangible Assets

· Leasehold Improvements

· Plant and Machinery

· Laboratory Equipments

· Office Equipments

· Furniture and Fixtures

· Computers

· Vehicles

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] 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.61.99
UK Pound	1	Rs.102.67
Euro	1	Rs.83.98

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NKT

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	4
--PROFITABILIRY	1~10	4
--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	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		30

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.