MIRA INFORM REPORT

Report Date :

04.07.2014

IDENTIFICATION DETAILS

Name :	AEGAN BATTERIES LIMITED
Registered Office :	715, 10^th A Main, 4^th Block, Jayanagar, Bangalore – 560041, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.10.2010
Com. Reg. No.:	08-055616
Capital Investment / Paid-up Capital :	Rs.260.000 Millions
CIN No.: [Company Identification No.]	U24232KA2010PLC055616
TAN No.: [Tax Deduction & Collection Account No.]	BLRA14999F
PAN No.: [Permanent Account No.]	AAICA9223A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Industrial Batteries and Automotive Batteries for UPS, Standby, Solar and Telecom Applications and Inverters.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Reserves of the company seems to be low. However, trade relations are reported as fair. Business is active. Payment terms are 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 – 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 BY

Name :	Ms. Zubeda Begum
Designation :	Sale Manager
Contact No.:	91-9663378669
Date :	03.07.2014

LOCATIONS

Registered Office :	715, 10^th A Main, 4^th Block, Jayanagar, Bangalore – 560 041, Karnataka, India
Tel. No.:	91-80-41483943/ 26560303
Mobile No.:	91-9663378669 (Ms. Zubeda Begum)
Fax No.:	91-80-41483943/ 26560404
E-Mail :	gopi@aegan.co.in smrajunaidu@gmail.com rk@aegan.co.in
Website :	http://www.aegan.co.in
Location :	Owned
Factory :	# 26/1 and 27/3 Chudugundanahalli, Lakkur Hobli, Malur Taluk, Kolar District - 563 160, Karnataka, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Thyagarajan Arunkumar

Designation :

Managing Director

Address :

715, 10^th A Main, 4^th Block, Jayanagar, Bangalore – 560 041, Karnataka, India

Date of Birth/Age :

22.07.1976

Date of Appointment :

22.10.2010

PAN No.:

AFPPA8318B

DIN No.:

01243318

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	U55101KA1997PTC023007	AEGAN HOTELS PRIVATE LIMITED	Director	12/11/1997	12/11/1997	-	Active	NO
2	U05190WB2002PLC183308	CHLORIDE ALLOYS INDIA LIMITED	Additional director	10/09/2010	25/09/2002	-	Active	NO
3	U74900KA2008PTC048739	AEGAN INDUSTRIES PRIVATE LIMITED	Managing director	30/03/2011	30/12/2008	-	Active	NO
4	U24232KA2010PLC055616	AEGAN BATTERIES LIMITED	Managing director	22/10/2010	22/10/2010	-	Active	NO
5	U27310KA2012PTC065056	LEADAGE ALLOYS PRIVATE LIMITED	Director	11/03/2013	11/03/2013	17/08/2013	Active	NO
6	U27100KA2013PLC069939	LEADAGE METALS LIMITED	Director	25/01/2014	02/07/2013	-	Active	NO

Name :

Mr. Thyagarajan Rajkumar

Designation :

Whole Time Director

Address :

715, 10^th A Main, 4^th Block, Jayanagar, Bangalore – 560 041, Karnataka, India

Date of Birth/Age :

25.12.1978

Date of Appointment :

01.06.2012

PAN No.:

AGHPR5807M

DIN No.:

01243319

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	U55101KA1997PTC023007	AEGAN HOTELS PRIVATE LIMITED	Director	12/11/1997	12/11/1997	20/03/2013	Active	NO
2	U05190WB2002PLC183308	CHLORIDE ALLOYS INDIA LIMITED	Whole-time director	01/07/2008	25/09/2002	31/03/2010	Active	NO
3	U74900KA2008PTC048739	AEGAN INDUSTRIES PRIVATE LIMITED	Director	30/12/2008	30/12/2008	-	Active	NO
4	U24232KA2010PLC055616	AEGAN BATTERIES LIMITED	Whole-time director	01/06/2012	22/10/2010	-	Active	NO
5	U27100KA2013PLC069939	LEADAGE METALS LIMITED	Director	25/01/2014	25/01/2014	-	Active	NO

Name :

Mrs. Chitra Rajkumar

Designation :

Whole Time Director

Address :

715, 10^th A Main, 4^th Block, Jayanagar, Bangalore – 560 041, Karnataka, India

Date of Birth/Age :

13.02.1982

Date of Appointment :

01.06.2012

PAN No.:

AFFPC9746M

DIN No.:

01243321

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	U05190WB2002PLC183308	CHLORIDE ALLOYS INDIA LIMITED	Director	22/02/2004	22/02/2004	18/06/2008	Active	NO
2	U74900KA2008PTC048739	AEGAN INDUSTRIES PRIVATE LIMITED	Additional director	24/07/2009	24/07/2009	-	Active	NO
3	U24232KA2010PLC055616	AEGAN BATTERIES LIMITED	Whole-time director	01/06/2012	22/10/2010	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Zubeda Begum
Designation :	Sale Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	%age
Thyagarajan Arunkumar	14739486	52.64
Thyagarajan Rajkumar	8595000	30.70
A.B. Devi	2176464	7.77
Rajkumar Chitra	1259050	4.50
T. Arunkumar-HUF	550000	1.96
T. Rajkumar-HUF	650000	2.32
Muthuraju	10000	0.04
Narayanan	10000	0.04
Sivakumar	10000	0.04
Total	28000000	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Industrial Batteries and Automotive Batteries for UPS, Standby, Solar and Telecom Applications and Inverters.

Products :

Item Code No. (ITC Code)	Product Description
85061000	Batteries

¨ Automotive Batteries

¨ Industrial Batteries

¨ AGM VRLA Batteries

¨ Monobloc Batteries

¨ Tubular Monobloc Batteries

¨ Traction Batteries

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank of India, Jayanagar Branch, Bangalore, Karnataka, India (Contact No.: 91-80-25943392)

· State Bank of India, Commercial Branch, 78/79 Park Road, Erode – 638 003, Tamilnadu, India

· Axis Bank Limited

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	312.352	268.458
SHORT TERM BORROWINGS
Working capital loans from banks	151.742	26.985
Total	464.094	295.443

Banking Relations :	--
Auditors :
Name :	BVC and Company Chartered Accountants
Address :	Royal Orchid, No.371/5-1, First Floor, Above Barista, 8^th Main Road. Sadashiva Nagar, Bangalore – 560 080, Karnataka, India
PAN No. :	AASPR3952L
Related Party :	Aegan Industry Private Limited

CAPITAL STRUCTURE

After 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
28000000	Equity Shares	Rs.10/- each	Rs.280.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
28000000	Equity Shares	Rs.10/- each	Rs.280.000 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs.10/- each	Rs.260.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs.10/- each	Rs.260.000 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	260.000	169.449	0.700
(b) Reserves & Surplus	2.885	(10.296)	0.000
(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)	262.885	159.153	0.700
(3) Non-Current Liabilities
(a) long-term borrowings	334.119	271.708	0.000
(b) Deferred tax liabilities (Net)	3.785	7.587	0.000
(c) Other long term liabilities	65.454	43.630	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	403.358	322.925	0.000
(4) Current Liabilities
(a) Short term borrowings	151.742	26.985	0.000
(b) Trade payables	99.836	48.275	0.000
(c) Other current liabilities	88.954	26.788	12.399
(d) Short-term provisions	1.736	0.000	0.000
Total Current Liabilities (4)	342.268	102.048	12.399
TOTAL	1008.511	584.126	13.099
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	539.682	368.190	10.326
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	11.821	39.517	0.266
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.597	30.942	0.700
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	562.100	438.649	11.292
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	255.743	88.078	0.000
(c) Trade receivables	87.338	5.012	0.000
(d) Cash and cash equivalents	8.107	3.869	0.822
(e) Short-term loans and advances	95.223	48.518	0.328
(f) Other current assets	0.000	0.000	0.657
Total Current Assets	446.411	145.477	1.807
TOTAL	1008.511	584.126	13.099

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	611.547	8.948	0.000
		Other Income	0.614	0.690	0.000
		TOTAL	612.161	9.638	0.000
Less	EXPENSES
		Cost of Materials Consumed	463.448	24.601	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(76.576)	(34.538)	0.000
		Employees benefits expense	41.860	5.173	0.000
		Other expenses	103.652	10.451	0.000
		TOTAL	532.384	5.687	0.000
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		79.777	3.951	0.000
Less	FINANCIAL EXPENSES		45.099	3.942	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		34.678	0.009	0.000
Less/ Add	DEPRECIATION/ AMORTISATION		25.298	2.718	0.000
	PROFIT/ (LOSS) BEFORE TAX		9.380	(2.709)	0.000
Less	TAX		(3.802)	7.587	0.000
	PROFIT/ (LOSS) AFTER TAX		13.182	(10.296)	0.000
	Earnings / (Loss) Per Share (Rs.)		0.59	1.45	0.00

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.15	(106.83)	0.00
Net Profit Margin (PBT/Sales)	(%)	1.53	(30.27)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.94	(0.50)	0.00
Return on Investment (ROI) (PBT/Networth)		0.04	(0.02)	0.00
Debt Equity Ratio (Total Debt/Networth)		1.85	1.88	0.00
Current Ratio (Current Asset/Current Liability)		1.30	1.43	0.15

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	0.700	169.449	260.000
Reserves & Surplus	0.000	(10.296)	2.885
Net worth	0.700	159.153	262.885
long-term borrowings	0.000	271.708	334.119
Short term borrowings	0.000	26.985	151.742
Total borrowings	0.000	298.693	485.861
Debt/Equity ratio	0.000	1.877	1.848

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	0.000	8.948	611.547
			6,734.455

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	0.000	8.948	611.547
Profit	0.000	(10.296)	13.182
		(115.06%)	2.16%

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

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from related parties	21.767	3.250
Total	21.767	3.250

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10311601	27/09/2013 *	669,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 78/79 PARK ROAD, ERODE, Tamil Nadu - 638003, INDIA	B88896964

* Date of charge modification

CORPORATE INFORMATION

The company was incorporated on 22^nd October, 2010 under the provisions of the Companies Act, 1956. With a mission "To meet the needs and expectations of all its stakeholders: to provide an environment to enable its employees to reach levels of unmatched excellence; to contribute to the preservation of the environment that we live in."

The company is manufacturing Traction and UPS Batteries. These products are in great demand and are making comprehensive offering of usage in India as well as International markets.

MANAGEMENT DISCUSSION AND ANALYSIS

OPERATIONS

During the period, company has registered a turnover of Rs.611.500 millions and company is having the projected turnover for the year 2013-14 is Rs. 1400.000 millions

INDUSTRY CONDITIONS AND REVIEW OF OPERATIONS

The lead-acid storage battery, important energy storage device, is the most widely used secondary storage cell by automobile and other industries.

s

The manufacturing process of Lead Acid Batteries is largely based on imported technology and it has been observed that there has been repetitive import of technology and further more foreign collaboration, in some cases have been extended for unduly long times. In view of this, it was thought desirable to undertake the review of present status of this industry and to identify and analyze critical inputs required for absorption of imported technology.

Although the domestic demand was good, exports are yet to reach the levels attained before the global economic crisis. The domestic consumption driven growth in India is a positive development holding much promise for the future of the Indian economy and industry.

COMPANY OUTLOOK

As far as Battery Industry concern appears to be promising. The high Growth rate in both auto and auto ancillary industries are expected to Continue for the samewould also result in better prospects for your Company’s business.

The company manufactures all type of lead acid batteries for automotive and industrial applications.

FIXED ASSETS

œ Land

œ Buildings

œ Plant and Equipment

œ Furniture and Fixtures

œ Vehicles

œ Office Equipment

œ Computer Equipments

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.59.72
UK Pound	1	Rs.102.45
Euro	1	Rs.81.54

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.