MIRA INFORM REPORT

Report Date :

29.01.2014

IDENTIFICATION DETAILS

Name :	VWF INDUSTRIES PRIVATE LIMITED (w.e.f.26.06.1995)
Formerly Known As :	VIJAY WIRES AND FILMENTS PRIVTE LIMITED
Registered Office :	No. 90, K. R. Sagar Road, Metagalli, Mysore – 570 016, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	09.05.1978
Com. Reg. No.:	08 - 003314
Capital Investment / Paid-up Capital :	Rs.6.000 Millions
CIN No.: [Company Identification No.]	U13200KA1978PTC003314
TAN No.: [Tax Deduction & Collection Account No.]	BLRV03606B
PAN No.: [Permanent Account No.]	AAACV7037R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier to the Lighting, Electronic and Wire Drawing Industry.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 192000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears some dip in the profitability of the company during current year. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. 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 – 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 services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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 :	No. 90, K. R. Sagar Road, Metagalli, Mysore – 570016, Karnataka, India
Tel. No.:	91-22-8212582459 / 91-821-2582247
Fax No.:	91-22-8212582427 / 91-821-2582427
E-Mail :	cns@vwfindustries.com vwf@sify.com info@vwfindustries.com vwf@vwfindustries.com p.hemdev@gmail.com
Website :	www.vwfindustries.com

DIRECTORS

AS ON 28.09.2013

Name :

Mr. Raghunath Brahmavar Pai

Designation :

Chairman Cum Managing Director

Address :

“Konark”, No. 427, Gokulam 3^rd Stage, Mysore – 570 002, Karnataka, India

Date of Birth/Age :

13.10.1939

Date of Appointment :

01.04.2005

DIN No.:

00291776

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	U13200KA1978PTC003314	VWF INDUSTRIES PRIVATE LIMITED	Managing director	01/04/2005	09/05/1979	Active	NO
2	U85110KA1986PLC007580	TRANSCREDIT AND CAPITAL LIMITED.	Director	24/04/1986	24/04/1986	Active	NO
3	U85110KA1994PTC015431	LITETRONICS VIJAY(INDIA)PRIVATE LIMITED	Director	29/03/1994	29/03/1994	Active	NO
4	U32309KA1994PTC015605	VIJAY LITETRONICS COMPONENTS PRIVATE LIMITED	Director	11/02/2000	11/02/2000	Active	NO
5	U85110KA1994PTC016175	VIJAY PRECISON DIES PRIVATE LIMITED	Director	25/09/2006	25/09/2006	Active	NO

Name :

Mr. Raghunath Ajith Pai

Designation :

Managing Director

Address :

“Konark”, No. 427, Gokulam 3^rd Stage, Mysore – 570 002, Karnataka, India

Date of Birth/Age :

14.08.1966

Date of Appointment :

20.03.1990

DIN No.:

00279375

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	U85110KA1983PTC005327	UNIQUE WIRES PRIVATE LIMITED	Director	01/06/1989	01/06/1989	-	Active	NO
2	U13200KA1978PTC003314	VWF INDUSTRIES PRIVATE LIMITED	Managing director	20/03/1990	20/03/1990	-	Active	NO
3	U32309KA1994PTC015605	VIJAY LITETRONICS COMPONENTS PRIVATE LIMITED	Director	23/05/1994	23/05/1994	-	Active	NO
4	U29220KA1974PTC002521	WOODBORE PRIVATE LIMITED	Director	18/06/1994	18/06/1994	-	Amalgamated	NO
5	U85110KA1994PTC016175	VIJAY PRECISON DIES PRIVATE LIMITED	Director	02/09/1994	02/09/1994	-	Active	NO
6	U51101KA1966PTC001638	LINAS ENGG ENTERPRISES PRIVATE LIMITED	Director	09/03/1996	09/03/1996	-	Amalgamated	NO
7	U85110KA1994PTC015431	LITETRONICS VIJAY(INDIA)PRIVATE LIMITED	Director	07/02/2003	07/02/2003	-	Active	NO
8	U40107GJ1994PTC072015	NETPRO RENEWABLE ENERGY(INDIA)PRIVATE LIMITED.	Director	10/11/2007	10/11/2007	20/10/2008	Active	NO
9	U15139KA2008PTC047724	GREEN EARTH FRESH PRODUCE PRIVATE LIMITED	Director	09/09/2008	09/09/2008	-	Active	NO
10	U74999KA2008PTC047719	ENTECH SIGNS & DISPLAYS INDIA PRIVATE LIMITED	Director	09/09/2008	09/09/2008	-	Active	NO

Name :

Mr. Rajesh Thonse Pai

Designation :

Director

Address :

No.23, Anantha Nagar, Manipal, Udipi – 576119, Karnataka, India

Date of Birth/Age :

05.03.1963

Date of Appointment :

27.03.1993

DIN No.:

00289708

Name :

Mr. Narayana Srinivas Murthy

Designation :

Director

Address :

120, 20^th Main Road, 12B, Cross, J. P. Nagar, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

29.03.1951

Date of Appointment :

22.06.1990

DIN No.:

05196524

Name :

Mr. Roop Sing Chawhan

Designation :

Director

Address :

No. 453, 6^th Phase, J. P. Nagar, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

10.08.1948

Date of Appointment :

29.02.1992

DIN No.:

00568833

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	U13200KA1978PTC003314	VWF INDUSTRIES PRIVATE LIMITED	Director	29/02/1992	29/02/1992	-	Active	NO
2	L29190KA1985PLC007363	SIKA INTERPLANT SYSTEMS LIMITED	Director	30/07/2008	30/07/2008	-	Active	NO
3	U15511AP2001PLC036282	SOVEREIGN DISTILLERIES LIMITED	Director	09/09/2009	12/12/2008	29/09/2010	Active	NO
4	L72200KA1995PLC018734	LOGIX MICROSYSTEMS LIMITED	Director	29/09/2010	29/01/2010	-	Active	NO
5	U27102KA2003PTC032717	BENAKA SPONGE IRON PRIVATE LIMITED	Director	29/09/2010	07/04/2010	02/12/2013	Active	NO
6	L27209KA1981PLC004343	BHUWALKA STEEL INDUSTRIES LIMITED	Director	28/09/2010	01/06/2010	21/11/2013	Active	NO
7	U28900MH1971PTC014993	SIKKA N SIKKA ENGINEERS PRIVATE LIMITED	Additional director	30/11/2011	30/11/2011	-	Active	NO
8	U55205KA2011PTC061497	SIKA TOURISM PRIVATE LIMITED	Director	05/12/2011	05/12/2011	-	Active	NO

MAJOR SHAREHOLDERS

AS ON 28.09.2013

Names of Shareholders	No. of Shares
Ajith R Pai	35000
Alaka R Pai	13200
Alok Gupta	2000
Gopalakrishna Pai	10000
Raghunath B Pai	80000
Rajaram V Balig	9240
Rajendra B Pai	2000
Ramanath P Pai	24000
Ramanath P Pai	25788
Shobha R. Pai	24000
Shobha R. Pai	26000
Surekha Kamath	74000
Surekha Kamath	11000
Ananth Prabhu	6000
Rajesh T. Pai	2000
Trust Rajahee	43000
S N Murthy	2000
Jayaprakash K Kamath	15000
Rhea R Pai	4670
Prathibha A Pai	5432
Raghunath B Pai (HUF)	96300
Nikhil A Pai	8670
Sandhya J Kamath	2020
Olga B Pai	52400
Olga B Pai	6000
Ajith R Pai (HUF)	3000
Nihal A Pai	5040
Dinesh V Baliga	9240
Vinod B Shenoy	3000
Total	600000

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2013

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	43.00
Directors or relatives of Directors	51.00
Other top fifty shareholders	6.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier to the Lighting, Electronic and Wire Drawing Industry.

Products :

Item Code No. (ITC Code)	Product Description
8101.00	Tungsten Wire
8102.00	Moly Wire
8539.00	Tungsten Filaments

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Tungsten Filaments	In	210	210	363.34
Tungsten Wire	Million	240	240	63.26
Molybdenum Wire	Nos	12000*	12000	17.76

* Denotes figures in kgs

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Syndicate Bank, K. R. Circle Branch, Mysore – 570001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Cash Credit (Secured by Hypothecation of all present and future inventories, book debts, trade bills, sight bills, cheques and drafts)	7.554	9.528
Short Term Borrowings
Syndicate Bank
Packing credit loan/ post shipment Demand Loan (Secured by on pledge of finished goods / export bills receivable) (Fully guaranteed by directors)	10.748	10.316
Total	18.302	19.844

Banking Relations :	--
Auditors :
Name :	Hariaharan and Company Chartered Accountant
Address :	No. 4581, “Gomathi”, N. R. Mohalla, Mysore – 570008, Karnataka, India
PAN No.:	AAAFH7690H
Related Party	· Vijay Halocoils (Private) Limited · Unique Wires (Private) Limited · Vijay Precision Dies (Private) Limited · Vijay Litetronics Limited · Litetronics Vijay India (Private) Limited · Entech Signs And Displays India (Private) Limited · Green Earth Fresh Produce (Private) Limited

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs.6.000 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	6.000	6.000	6.000
(b) Reserves & Surplus	42.079	34.355	25.053
(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)	48.079	40.355	31.053
(3) Non-Current Liabilities
(a) long-term borrowings	7.554	9.528	17.900
(b) Deferred tax liabilities (Net)	3.153	3.151	3.149
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	10.707	12.679	21.049
(4) Current Liabilities
(a) Short term borrowings	28.167	29.832	28.137
(b) Trade payables	27.526	10.588	19.892
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	22.466	17.102	12.480
Total Current Liabilities (4)	78.159	57.522	60.509
TOTAL	136.945	110.556	112.611
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	20.551	19.160	19.190
(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	1.353	1.353	1.353
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.044	4.141	2.264
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	24.948	24.654	22.807
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	31.492	16.127	23.604
(c) Trade receivables	72.278	61.748	54.748
(d) Cash and cash equivalents	2.576	0.720	5.143
(e) Short-term loans and advances	5.651	7.307	6.309
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	111.997	85.902	89.804
TOTAL	136.945	110.556	112.611

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		278.446	261.801	207.141
		Other Income		1.833	4.606	6.684
		TOTAL (A)		280.279	266.407	213.825
Less	EXPENSES
		Cost of Materials Consumed		159.829	139.822	122.339
		Purchase of Stock-in-trade		0.360	1.782	0.000
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(0.044)	1.862	(0.454)
		Employee Benefits Expenses		24.794	22.099	16.667
		Other Expenses		75.082	76.712	63.901
		TOTAL (B)		260.021	242.277	202.453
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			20.258	24.130	11.372
Less	FINANCIAL EXPENSES (D)			2.491	3.631	1.347
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			17.767	19.499	10.025
Less	DEPRECIATION/ AMORTISATION (F)			2.452	2.673	2.673
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			15.315	17.826	7.352
Less	TAX (H)			5.802	1.895	1.895
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			9.513	15.931	5.457
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	151.675	142.269	139.369
			Other Earnings	1.810	1.954	2.713
	TOTAL EARNINGS			153.485	144.223	142.082
	IMPORTS
			Raw Materials	150.163	114.480	101.027
			Stores & Spares	1.614	0.747	0.726
			Capital Goods	0.479	0.000	0.000
	TOTAL IMPORTS			152.256	115.227	101.753
	Earnings Per Share (Rs.)			15.85	26.55	9.10

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.39	5.98	2.55
Net Profit Margin (PBT/Sales)	(%)	5.50	6.81	3.55
Return on Total Assets (PBT/Total Assets}	(%)	11.29	16.32	6.61
Return on Investment (ROI) (PBT/Networth)		0.32	0.44	0.24
Debt Equity Ratio (Total Debt /Networth)		0.74	0.98	1.48
Current Ratio (Current Asset/Current Liability)		1.43	1.49	1.48

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	----------
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	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Deposits from related parties:
Fixed deposits from shareholders	16.450	15.085
Loans and advances from related parties:
Factory lease advance	0.000	1.000
Other loans and Advances:
Advances from supplies:
From related parties:
Vijay Precision Dies private Limited	0.000	0.031
Vijay Halocoils Private Limited	0.000	1.283
Unique Wires Private Limited (Job Work)	0.000	1.847
Others	0.969	0.270
Total	17.419	19.516

NOTE: No Charges Exist for Company.

FIXED ASSETS:

· Land

· Building

· Plant and machinery

· Furniture and Fixture

· Vehicles

· Office Equipment

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.62.99
UK Pound	1	Rs.104.61
Euro	1	Rs.86.17

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	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		44

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.