MIRA INFORM REPORT

Report Date :

01.07.2014

IDENTIFICATION DETAILS

Name :	BALAJI WAFERS PRIVATE LIMITED
Registered Office :	Vajdi (Vad), Taluka Lodhika, District Rajkot - 360003, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.09.1995
Com. Reg. No.:	04-027555
Capital Investment / Paid-up Capital :	Rs.5.328 Millions
CIN No.: [Company Identification No.]	U15400GJ1995PTC027555
TAN No.: [Tax Deduction & Collection Account No.]	RKTB00207E
PAN No.: [Permanent Account No.]	AACB8755A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Wafers and Snacks.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

A (68)

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

Maximum Credit Limit :	USD 16000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and reputed company having fine track record. The rating reflects Balaji’s Well-established track record of business operation marked by decent brand, strong financial risk profile, adequate liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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 DENIED

Management Non-Cooperative (Tel No.: 91-281-2783755 / 56)

LOCATIONS

Registered Office :	Vajdi (Vad), Taluka Lodhika, District Rajkot - 360003, Gujarat, India
Tel. No.:	91-281-2783755 /56
Fax No.:	91-281-2783747
E-Mail :	contact@balajiwafers.com
Website :	www.balajiwafers.com
Factory 1 :	Plot No. 168, GIDC, Aji, Vasahat, Rajkot - 360003, Gujarat, India
Factory 2 :	Plot No. 2236, Lodhika, Taluk Lodhika, District Rajkot, Gujarat

DIRECTORS

As on 30.09.2013

Name :

Mr. Bhikhalal P. Virani

Designation :

Whole Time Director

Address :

“Krishna”, Arjun Park, Near Astron Society, Rajkot, Gujarat – 360001

Date of Birth/Age :

01.06.1953

Date of Appointment :

22.09.1955

DIN No.:

00533173

Name :

Mr. Chandubhai P. Virani

Designation :

Whole Time Director

Address :

“Balaji” Arjun Park, Near Astron Society, Rajkot, Gujarat - 360001

Date of Birth/Age :

31.01.1957

Date of Appointment :

22.09.1995

DIN No.:

00524980

Name :

Mr. Kanjibhai P Virani

Designation :

Whole Time Director

Address :

“Shri Ram”, Arjun Park, Near Astron Society, Rajkot - 360001, Gujarat

Date of Birth/Age :

18.01.1962

Date of Appointment :

22.09.1995

DIN No.:

00944105

Name :

Mr. Bhikhabhai Keyur Virani

Designation :

Whole Time Director

Address :

“Krishna”, Arjun Park, Near Astron Society, Rajkot, Gujarat - 360001

Date of Birth/Age :

06.09.1983

Date of Appointment :

01.04.2001

DIN No.:

00525200

Name :

Mr. Bhikhabhai Mihir Virani

Designation :

Director

Address :

“Krishna”, Arjun Park, Near Astron Society, Rajkot, Gujarat - 360001

Date of Birth/Age :

06.09.1983

Date of Appointment :

01.05.2004

DIN No.:

00525227

Name :

Mr. Chandubhai Pranay Virani

Designation :

Director

Address :

“Balaji”, Arjun Park, Near Astron Society, Rajkot, Gujarat - 360001

Date of Birth/Age :

07.10.1983

Date of Appointment :

01.05.2004

DIN No.:

00944134

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	U25202GJ2001PTC040276	BALAJI MULTIFLEX PRIVATE LIMITED	Director	12/11/2002	12/11/2002	01/03/2007	Active	NO
2	U15400GJ1995PTC027555	BALAJI WAFERS PRIVATE LIMITED	Whole-time director	01/05/2004	01/05/2004	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Mr. Bhikhabhai Potabhai Virani	91000
Mr. Chandubhai Potabhai Virani	86300
Mr. Kanjibhai Potabhai Virani	82900
Mrs. Rasilaben Kanjibhai Virani	31000
Mrs. Damyanitben Chandubhai Virani	54000
Bhikhabhai Potabhai Virani, HUF	1000
Chandubhai Popatbhai Virani, HUF	4900
Kanjibhai Potabhai Virani, HUF	15700
Mr. Keyurbhai Bhikhabhai Virani	20000
Mrs. Savitaben Bhikhabhai Virani	29000
Mrs. Pravinaben Chandrakant Bhalara	1000
Mr. Chandrakant Vallabhbhai Bhalara	1000
Mr. Mihir Bhikhabhai Virani	46000
Mr. Pranay Chandubhai Virani	60000
Total	523800

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Wafers and Snacks.

Products :

Products Description	ITC Code
Wafers and Namkin and Khakhra	19053211

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· HDFC Bank Limited, 26 A Narayan Properties, Sakinaka, Sakivihar Road, Mumbai - 400013, Maharashtra, India

· Kotak Mahindra Bank Limited, 36-38 A, Nariman Bhavan, 227,D, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term loans from banks	620.266	392.477
Short Term Borrowings
Working capital loans from banks	53.880	60.099
Total	674.146	452.576

Banking Relations :	--
Auditors :
Name :	B M Vasoya and Associates Chartered Accountants
PAN No.:	AELPV5012Q
Associate :	Balaji Multiflex Private Limited CIN No.: U25202GJ2001PTC040276

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2850000	Equity Shares	Rs.10/- each	Rs.28.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
523800	Equity Shares	Rs.10/- each	Rs.5.238 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	5.238	5.238	5.238
(b) Reserves & Surplus	3,920.636	2,787.025	1,888.904
(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)	3,925.874	2,792.263	1,894.142
(3) Non-Current Liabilities
(a) long-term borrowings	635.250	407.172	70.558
(b) Deferred tax liabilities (Net)	115.717	111.380	92.001
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	21.787	18.619	17.927
Total Non-current Liabilities (3)	772.754	537.171	180.486
(4) Current Liabilities
(a) Short term borrowings	53.880	60.099	41.388
(b) Trade payables	178.098	137.202	69.176
(c) Other current liabilities	492.447	325.934	96.175
(d) Short-term provisions	46.847	42.086	22.342
Total Current Liabilities (4)	771.272	565.321	229.081
TOTAL	5,469.900	3,894.755	2,303.709
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2,301.907	1,627.858	1,329.189
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	76.109	337.115	12.217
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	12.500	10.000	29.690
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	18.508	15.890	20.786
Total Non-Current Assets	2,409.024	1,990.863	1,391.882
(2) Current assets
(a) Current investments	35.054	0.054	4.115
(b) Inventories	443.883	438.185	273.478
(c) Trade receivables	51.159	28.811	10.124
(d) Cash and cash equivalents	1,596.932	944.669	422.770
(e) Short-term loans and advances	490.712	184.037	142.244
(f) Other current assets	443.136	308.136	59.096
Total Current Assets	3,060.876	1,903.892	911.827
TOTAL	5,469.900	3,894.755	2,303.709

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		9135.892	7126.719	5436.148
		Other Income		138.788	69.360	51.841
		TOTAL (A)		9274.680	7196.079	5487.989
Less	EXPENSES
		TOTAL (B)		7497.024	5822.442	4729.296
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			1777.656	1373.637	758.693
Less	FINANCIAL EXPENSES (D)			58.849	25.946	16.554
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			1718.807	1347.691	742.139
Less	DEPRECIATION/ AMORTISATION (F)			295.834	210.714	155.910
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			1422.973	1136.977	586.229
Less	TAX (H)			289.363	250.846	129.527
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			1133.610	886.131	456.702
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	0.871	0.705	0.744
	TOTAL EARNINGS			0.871	0.705	0.744
	IMPORTS
			Capital Goods, Stores & Spares	452.103	555.418	174.612
	TOTAL IMPORTS			452.103	555.418	174.612
	Earnings Per Share (Rs.)			2164.00	1692.00	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	12.22	12.31	8.32
Net Profit Margin (PBT/Sales)	(%)	15.58	15.95	10.78
Return on Total Assets (PBT/Total Assets}	(%)	26.44	32.05	25.92
Return on Investment (ROI) (PBT/Networth)		0.36	0.41	0.31
Debt Equity Ratio (Total Debt /Networth)		0.18	0.17	0.06
Current Ratio (Current Asset/Current Liability)		3.97	3.37	3.98

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	5.238	5.238	5.238
Reserves & Surplus	1888.904	2787.025	3920.636
Net worth	1894.142	2792.263	3925.874
long-term borrowings	70.558	407.172	635.250
Short term borrowings	41.388	60.099	53.880
Total borrowings	111.946	467.271	689.130
Debt/Equity ratio	0.059	0.167	0.176

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	5,436.148	7,126.719	9,135.892
		31.099	28.192

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	5,436.148	7,126.719	9,135.892
Profit	456.702	886.131	1,133.610
	8.40%	12.43%	12.41%

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

LITIGATION DETAILS:

HIGH COURT OF GUJARAT

TAX APPEAL No. 562 of 2011

Status : PENDING

( Converted from : ST/1040/2011 )

CCIN No : 001092201100562

Last Listing Date: 27/06/2012

Coram

HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI HONOURABLE MR.JUSTICE Y.B.BHATT

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

S.NO.	Name of the Respondant	Advocate On Record
1	M/S BALAJI WAFERS PRIVATE LIMITED	MRS SWATI SOPARKAR for :Opponent(s) 1

Presented On	: 08/03/2011	Registered On	: 08/03/2011
Bench Category	: DIVISION BENCH	District	: AHMEDABAD
Case Originated From	: THROUGH ADVOCATE	Listed	: 102 times

StageName	FOR REGULAR ADMISSION
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

Other Forums

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	08/03/2011	CERTIFIED COPY	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s) 1	6	MRS MAUNA M BHATT:1
2	08/03/2011	MEMO OF APPEAL/PETITION/SUIT	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s) 1	20	MRS MAUNA M BHATT:1
3	15/08/2011	VAKALATNAMA	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s) 1	-	MRS MAUNA M BHATT:1
4	15/08/2011	VAKALATNAMA	MRS SWATI SOPARKAR ADVOCATE for RESPONDENT(s) 1	-	MRS SWATI SOPARKAR:1
5	27/07/2012	VAKALATNAMA	MRS SWATI SOPARKAR ADVOCATE for RESPONDENT(s) 1	5	MRS SWATI SOPARKAR:1

Court Proceedings

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	Question	Transferred
1	TAX APPEAL/562/2011	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI HONOURABLE MR.JUSTICE N.V.ANJARIA	27/06/2012	N	ORDER	-	Y

Available Orders

S. No.	Applicant Name	ApplicationType	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MRS MAUNA M BHATT	ORDINARY	28/06/2012	O/19523/2012	27/06/2012	29/06/2012	02/07/2012	Delivered	ORDER

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans and advances from directors	2.166	1.565
Loans and advances from others	12.818	13.130
Total	14.984	14.695

OPERATION:

The Company has achieved total income of Rs.9274.600 Millions (including other income of Rs.138.700 Millions) during the year, as compared to total incomes of Rs.7196.000 Millions (including other income of Rs.69.300 Millions) of previous year 2011-12. Moreover, the Net Profit of the Company has also been increased to Rs.113.600 Millions as compared to Rs.886.100 Millions of previous year 2011-12. Total of Reserves and Surplus at the end of the year stood at Rs.3920.600 Millions as compared to Rs.2787.000 Millions.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10146435	09/02/2009	490,700,000.00	Kotak Mahindra Bank Limited	36-38a, Nariman Bhavan, 227,D, Nariman Point, Mumbai, Maharashtra - 400021, India	A58321738
2	10072937	31/10/2007	493,400,000.00	Corporation Bank and Kotak Mahindra Bank Limited	Main Branch, Dhebar Road, Rajkot, Gujarat - 360001, India	A25750118
3	10058549	28/05/2007	300,000,000.00	Kotak Mahindra Bank Limited	36-38a, Nariman Bhavan, 227,D, Nariman Point, Mumbai, Maharashtra - 400021, India	A16999732

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.10
UK Pound	1	Rs.102.33
Euro	1	Rs.82.00

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	KAR
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		68

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

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