MIRA INFORM REPORT

Report Date :

09.07.2014

IDENTIFICATION DETAILS

Name :	THE EIMCO-K.C.P. LIMITED (w.e.f.17.10.1968)
Formerly Known As :	THE EIMCO-K.C.P. PRIVATE LIMITED
Registered Office :	New No. 239, Old No.183, Annasalai, Ramakrishna Buildings, Chennai – 600006, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.09.1967
Com. Reg. No.:	18-005550
Capital Investment / Paid-up Capital :	Rs.6.000 Millions
CIN No.: [Company Identification No.]	U27209TN1967PLC005550
IEC No.:	0488004586
TAN No.: [Tax Deduction & Collection Account No.]	CHET00256E
PAN No.: [Permanent Account No.]	AAACT2962M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Liquid Solids Separation Equipments.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company seems to be sound and healthy. Profitability of the company is fair. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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

NEWS

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Sudhir Kumar
Designation :	Accounts Executive
Contact No.:	91-44-28555171
Date :	06.05.2014

LOCATIONS

Registered Office :	New No. 239, Old No.183, Annasalai, Ramakrishna Buildings, Chennai – 600 006, Tamilnadu, India
Tel. No.:	91-44-28555171
Fax No.:	91-44-28555863
E-Mail :	ekcp@md2.vsnl.net.in ekcp@vsnl.com skcp@md2.vsnl.net.in
Factory :	11A, 3^rd Main Road, Industrial Estate, Anbattur, Chennai – 600 058, Tamilnadu, India
Branch Office :	231, Arun Chambers, J. Dadaji Road, Tardeo, Mumbai - 400 034, Maharashtra, India
Tel. No.:	91-22-24944030
Fax No.:	91-22-24954608
E-Mail :	ekcp@md2.vsnl.net.in
Branch Offices :	Group’s offices Located in · Hyderabad · Mumbai · Cochin · Delhi · Kolkata · Bangalore

DIRECTORS

As on: 29.08.2013

Name :

Mrs. Irmgard Velagapudi M Rao

Designation :

Director

Address :

No. 15, Damodarapuram, Main Road, Chennai – 600020, Tamilnadu, India

Date of Birth/Age :

18.09.1936

Qualification :

Diploma in Commerce

Date of Appointment :

18.10.2001

DIN No.:

00091370

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	U65993TN1996PTC037113	DURGAMBA INVESTMENT PRIVATE LIMITED	Director	12/12/1996	12/12/1996	-	Active	NO
2	L15421TN1995PLC033198	K.C.P.SUGAR AND INDUSTRIES CORPORATION LIMITED	Managing Director	29/03/2010	11/09/2000	-	Active	NO
3	U40105TN1992PTC022298	ENERGY DEVICE TECHNOLOGY (INDIA) PRIVATE LIMITED	Director	07/05/2001	07/05/2001	-	Active	NO
4	U74140TN1980PTC008358	V M RAO CONSULTANTS PRIVATE LIMITED	Director	20/08/2001	20/08/2001	-	Active	NO
5	U73100TN1998PLC041501	KCP SUGARS AGRICULTURAL RESEARCH FARMS LIMITED	Director	18/10/2001	18/10/2001	-	Active	NO
6	U27209TN1967PLC005550	THE EIMCO-K.C.P. LIMITED	Director	18/10/2001	18/10/2001	-	Active	NO

Name :

Mrs. Kiran Rao Velagapudi

Designation :

Director

Address :

No. 11, 3^rd Street, Kasturi Estate, Chennai – 600086, Tamilnadu, India

Date of Birth/Age :

18.12.1964

Qualification :

Degree in Anthrapology

Date of Appointment :

31.07.2003

DIN No.:

00091466

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	L15421TN1995PLC033198	K.C.P.SUGAR AND INDUSTRIES CORPORATION LIMITED	Whole-time director	29/07/2012	29/07/2002	-	Active	NO
2	U27209TN1967PLC005550	THE EIMCO-K.C.P. LIMITED	Director	31/07/2003	31/07/2003	-	Active	NO
3	U65993TN1996PTC037113	DURGAMBA INVESTMENT PRIVATE LIMITED	Director	31/08/2005	31/08/2005	-	Active	NO
4	U74140TN1980PTC008358	V M RAO CONSULTANTS PRIVATE LIMITED	Director	04/07/2007	04/07/2007	-	Active	NO
5	U55100TN2010PTC075641	AMETHYST CAFE PRIVATE LIMITED	Managing Director	10/05/2010	10/05/2010	-	Active	NO

Name :

Mr. Jakka Satyanarayana

Designation :

Director

Address :

Old 76/5/1, New 34/5/1, Bazullah Road, T Nagar, Chennai – 600017, Tamilnadu, India

Date of Birth/Age :

15.05.1936

Qualification :

B.Com Hons MBA

Date of Appointment :

14.02.2001

DIN No.:

00020580

Name :

Mr. Krishnaswamy Kalyanaraman

Designation :

Director Appointed in Casual Vacancy

Address :

Old No.16 / New No.25, Third Main Road, M.C. Nagar, Chittlapakkam, Chennai – 600064, Tamilnadu, India

Date of Birth/Age :

29.06.1945

Qualification :

M.Tech

Date of Appointment :

10.08.2007

DIN No.:

01761928

KEY EXECUTIVES

Name :	Mr. Sudhir Kumar
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 29.08.2013

Names of Shareholders	No. of Shares
Irmgad Velagapudi M Rao	3
KCP Sugars and Industries Corporation Limited, India	599990
P.R. Ramakrishnan	1
R. Prabhu	1
Ramaniklala Kalyani	1
Vinod R Sethi	1
Kiran Rao	1
R. Ganesan	1
S. Chidambaram	1
Total	600000

AS ON: 29.08.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Liquid Solids Separation Equipments.

Products :

Item Code No.	Product Description
84212190	Solid-Liquid Separation Equipment

Exports :

Products :

Finished Goods

Countries :

USA

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

150 (Approximately)

Bankers :

· Axis Bank Limited

Corporate Banking Branch, Karumuttu Nilayam, No.192, Anna Salai, Chennai – 600002, Tamilnadu, India

· Canara Bank

787, Mount Road, Madras – 600002, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
Short Term Borrowings
Rupee term loans from banks	16.836	19.164
Total	16.836	19.164

Banking Relations :	--
Auditors :
Name :	B. Purushottam and Company Chartered Accountants
Address :	Flat No.3-D, Pioneer Homes, 23-A, North Boag Road, T. Nagar, Chennai-600017, Tamilnadu, India
PAN No.:	AADFB9589N
Holding Company :	· K.C.P. Sugar and Industries Corporation Limited CIN No. : L15421TN1995PLC033198

CAPITAL STRUCTURE

AS ON: 28.09.2013

Authorised Capital:

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 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	97.037	74.713	55.543
(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)	103.037	80.713	61.543
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.096	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	21.313	26.945	20.682
Total Non-current Liabilities (3)	21.313	27.041	20.682
(4) Current Liabilities
(a) Short term borrowings	16.836	19.164	40.941
(b) Trade payables	69.958	44.242	42.125
(c) Other current liabilities	70.176	46.510	46.736
(d) Short-term provisions	10.718	12.149	4.937
Total Current Liabilities (4)	167.688	122.065	134.739
TOTAL	292.038	229.819	216.964
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	19.953	19.414	17.989
(ii) Intangible Assets	0.878	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.171	0.000	0.637
(d) Long-term Loan and Advances	2.990	3.614	1.351
(e) Other Non-current assets	17.665	14.057	12.208
Total Non-Current Assets	41.657	37.085	32.185
(2) Current assets
(a) Current investments	0.650	0.000	0.000
(b) Inventories	102.345	68.664	72.568
(c) Trade receivables	122.207	110.920	91.438
(d) Cash and cash equivalents	1.386	3.463	6.487
(e) Short-term loans and advances	23.793	9.687	14.286
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	250.381	192.734	184.779
TOTAL	292.038	229.819	216.964

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	-Income	340.308	314.776	276.449
	-Other Income	18.442	7.053	4.934
	TOTAL	358.750	321.829	281.383
Less	EXPENSES
	-Cost of Materials Consumed	39.699	28.112	139.706
	-Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(33.931)	(0.892)	1.990
	-Employees benefits expense	50.976	42.221	44.592
	-Other expenses	257.567	213.330	69.410
	TOTAL	314.311	282.771	255.698
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	44.439	39.058	25.685
Less	FINANCIAL EXPENSES	6.044	6.464	9.138
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	38.395	32.594	16.547
Less/ Add	DEPRECIATION/ AMORTISATION	4.839	3.271	3.633
	PROFIT/ (LOSS) BEFORE TAX	33.556	29.323	12.914
Less	TAX	11.232	10.153	3.558
	PROFIT/ (LOSS) AFTER TAX	22.324	19.170	9.356
	EARNINGS IN FOREIGN CURRENCY
	Exports Earnings	93.226	40.062	47.454
	Earnings / (Loss) Per Share (Rs.)	37.21	31.95	15.59

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	6.22	5.96	3.33
Net Profit Margin (PBT/Sales)	(%)	9.86	9.32	4.67
Return on Total Assets (PBT/Total Assets}	(%)	11.50	12.76	5.97
Return on Investment (ROI) (PBT/Networth)		0.33	0.36	0.21
Debt Equity Ratio (Total Debt/Networth)		0.16	0.24	0.67
Current Ratio (Current Asset/Current Liability)		1.49	1.58	1.37

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	6.000	6.000	6.000
Reserves & Surplus	55.543	74.713	97.037
Net worth	61.543	80.713	103.037
long-term borrowings	0.000	0.000	0.000
Short term borrowings	40.941	19.164	16.836
Total borrowings	40.941	19.164	16.836
Debt/Equity ratio	0.665	0.237	0.163

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	276.449	314.776	340.308
		13.864	8.111

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	276.449	314.776	340.308
Profit	9.356	19.170	22.324
	3.38%	6.09%	6.56%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes/ No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	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)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

REVIEW OF OPERATIONS

During the period Company has received Orders totaling to Rs.447.720 Millions as compared to Rs.362.955 Millions during the previous year. From the enclosed Annual Accounts it may be noted that the income earned from the sale of product and services by the Company for the year ended 31st March 2013 was Rs.366.767 Millions as against Rs.342.606 Millions in the previous year. The Profit was at Rs.33.556 Millions for the year as against profit of Rs.29.323 Millions for the previous year. After providing for current and deferred taxation, the net profit for the year was Rs.22.324 Millions to which after adding the brought forward surplus of Rs.62.708 Millions, the carry forward surplus to the next year amounted to Rs.85.032 Millions.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/ Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90288462	06/02/2014 *	250,000,000.00	AXIS BANK LIMITED	Corporate Banking Branch, Karumuthu Nilayam, No.192 Anna Salai, Chennai, Tamilnadu - 600002, India	B96395447
2	90291632	04/01/1974	5,000,000.00	FIRST NATIONAL CITY BANK	Madras, Madras, Tamilnadu, India	-

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Office Building

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· 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.59.95
UK Pound	1	Rs.102.78
Euro	1	Rs.81.39

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.