MIRA INFORM REPORT

Report Date :

10.07.2014

IDENTIFICATION DETAILS

Name :	CITI BANK N.A.
India Branch Office :	293, Dr. D.N. Road, Fort, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.01.1900
Capital Investment / Paid-up Capital :	Rs. 37438.400 Millions
FCRN :	F00471
Legal Form :	Foreign Registered Bank
Line of Business :	Providing Treasury, Corporate banking, Retail banking and Other banking business.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is the banking subsidiary of Citigroup, a leading financial conglomerate and a highly diversified bank with leading positions in many financial product lines. It is a well-established bank having excellent track record. The bank possesses a favourable financial profile marked by healthy resource profile with decent asset size and deposit base along with comfortable capitalization, in the back drop of the challenging macroeconomic environment. Management has reported adequacy albeit, volatility in revenue and earnings, and the large concentration of credit card loans in its retail loan book somewhat counteract the revenue profile during FY13. The ratings also take into consideration, the group’s presence in other areas of financing and fee based activities along with successfully leveraging the “Citibank” brand. Trade relations are praiseworthy. Business is active. Payment terms are regular and as per commitments. In view of strong business position, the subject can be considered excellent 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.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term Subordinated Bonds = AA+
Rating Explanation	High degree of safety and carry lowest credit risk.
Date	July 23, 2013

Rating Agency Name	CRISIL
Rating	Short term Certificate of Deposits = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	July 23, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list and the details of the same are as under :

ENTITY	PERSON	COMPETENT AUTHORITY	REGULATORY CHARGES	REGULATORY ACTION(S) / DATE OF ORDER	FURTHER DEVELOPMENTS
CITIBANK N.A		RBI	Did not adhere to anti money laundering (AML) guidelines Did not comply with “know your customer” norms in opening and/or operating the accounts	Imposed Penalty Rs.2.500 Millions 04-July-2011
CITIBANK N.A		RBI	Did not adhere to instructions issued by RBI in respect of derivatives, such as failure to carry out due diligence in regard to suitability of products, selling derivative products to users not having risk management policies and not verifying underlying/adequacy of underlying and eligible limits under past performance route	Imposed Penalty Rs.1.000 Million 26-April-2011

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 DECLINED

MANAGEMENT NON-COOPERATIVE

(CONTACT NO.: 91-22-26535757)

LOCATIONS

Registered Office :	Located at: · United States of America
Tel. No.:	Not Available
Fax No.:	Not Available
Website :	http://www.online.citibank.co.in http://www.citigroup.com
India Branch Office :	293, Dr. D N Road, Fort, Mumbai - 400001, Maharashtra, India
Tel. No.:	91-22-26535757/ 50/ 56
E-Mail :	naresh.karia@citi.com viral.damania@citi.com
First International Financial Centre :	Plot Nos. C-54 and C-55, G-Block, Bandra Kurla Complex, Bandra [East], Mumbai – 400051, Maharashtra, India
Other Branch Offices :	Located At: · Ahmedabad Akola Aurangabad Bengaluru (M.G. Road and South End Road) Bhopal Bhubaneshwar Chandigarh Chennai (Anna Salai and Alwarpet) Coimbatore Faridabad Gurgaon Indore Jaipur Jalandhar Kochi Kolkata (Brabourne Road and Chowringee Road) Lucknow Ludhiana Mumbai (Lower Parel West, Andheri East, Fort, Juhu, Khar and Vashi) Nanded Nandyal Nasik New DeIhi (Sansad Marg, Punjabi Baug, Nehru Place, South Extension and Vasant Vihar) Noida Puducherry Pune Hyderabad Surat Vadodara Vapi

DIRECTORS

AS ON 22.04.2014

Name :	Anthony M. Santomero
Designation :	Chairman
Name :	Barbara J. Desoer
Designation :	Director
Name :	Duncan P. Hennes
Designation :	Director
Name :	Eugene M. Mcquade
Designation :	Director
Name :	Gary M. Reiner
Designation :	Director
Name :	Robert L. Ryan
Designation :	Director
Name :	Joan E. Spero
Designation :	Director
Name :	Diana L. Taylor
Designation :	Director
Name :	James S. Turley
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Pramit Jhaveri
Designation :	Chief Executive Officer
Name :	Mr. Abhijit Sen
Designation :	Chief Executive Officer

BUSINESS DETAILS

Line of Business :	Providing Treasury, Corporate banking, Retail banking and Other banking business.
Brand Name :	“Citibank”

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Reserve Bank of India

Facilities :

BORROWINGS	31.03.2014 (Rs. in Millions	31.03.2013 (Rs. in Millions
I. Borrowings in India
i) Reserve Bank of India	122140.000	104100.000
ii) Others Banks	4.200	7006.600
iii) Other Institutions and Agencies	18059.200	69137.700
	140203.400	180244.300
II. Borrowings Outside India	123943.800	138315.500
TOTAL	264147.200	318559.800
Secured borrowings included in I and II above	125737.700	162429.700

Banking Relations :	--
Auditors :
Name :	BSR and Company LLP Chartered Accountants
Parent :	Citibank N.A. and its branches
Holding Company of Parent :	Citigroup Inc.
Subsidiaries of Parent :	· Banco Citibank De El Salvador SA Bank Handlowy W Warszawie S.A. Citibank A.G. Frankfurt Citibank Budapest Limited Citibank China Limited Citibank Czech Republic Citibank Espana S.A. Citibank Europe Plc Citibank Hungary Citibank Japan Limited Citibank Korea Inc. Citibank Malaysia Citibank Overseas Investment Corporation Citibank Romania Citibank Turkey Citibank Uganda Limited Citigroup Software Technology and Services (China) Limited Citigroup Transaction Services (Malaysia) Sdn Bhd Citicorp Investment Bank (Singapore) Limited Citicorp Capital Markets Limited 1 Citicorp Clearing Services India Limited 1 Citicorp Finance (India) Limited 1* Citicorp Services India Limited 1 CitiFinancial Consumer Finance India Limited 1*
Fellow Subsidiaries of Parent :	· Citicorp Banking Corporation, Bahrain Citicorp International Finance Corporation Citicorp North America, Inc. Citicorp Securities Asia Pacific Limited Citigroup Global Markets Inc, Asia Citigroup Global Markets Inc, Australia Citigroup Global Markets Inc, Korea Citigroup Global Markets Inc, New York Citigroup Global Markets Inc, Singapore Citigroup Global Markets Mauritius Private Limited Citigroup Services Japan Limited Citigroup Strategic Holding Mauritius Limited Citigroup Technology Inc Citishare Corporation US Citigroup Global Markets India Private Limited 1 Orbitech Limited 1

NOTES:

1 Indicates companies incorporated in India

* Citicorp Finance (India) Limited [CFIL] was merged with CitiFinancial Consumer Finance India Limited [CCFIL] with effect from April 1, 2013 Post the merger, CitiFinancial Consumer Finance India Limited [CCFIL] has been renamed as Citicorp Finance (India) Limited [CFIL].

CAPITAL STRUCTURE

AS ON 31.03.2014

CAPITAL	Amt. in Millions
Amount of deposit kept with RBI under Section II ( 2 ) ( b ) of the Banking Regulation Act, 1949	43230.000

CAPITAL
Initial Capital	2.000
Interest free funds from H.O. for CRAR requirements
Opening Balance	37436.400
Additions during the year	--
	37436.400
TOTAL	37438.400

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
CAPITAL AND LIABILITIES
Capital	37438.400	37438.400	37438.400
Reserves and Surplus	147201.400	136355.100	122404.500
Deposits	783130.200	665593.800	646976.800
Borrowings	264147.200	318559.800	289245.900
Other Liabilities and Provisions	217889.000	125862.800	188209.700
TOTAL	1449806.200	1283809.900	1284275.300
ASSETS
Cash and balance with Reserve Bank of India	47750.800	47843.800	67421.300
Balances with banks and money at call and short notice	115392.700	142445.400	115948.900
Investments	512721.300	440766.200	431666.800
Advances	565193.100	520355.400	471030.000
Fixed Assets	16595.300	17345.400	7871.300
Other Assets	192153.000	115053.700	190337.000
TOTAL	1449806.200	1283809.900	1284275.300
Contingent Liabilities	10528442.500	9830093.700	11529501.500
Bills for Collection	156933.500	121787.000	94273.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Interest Earned	91952.100	89161.400	77676.200
		Other Income	30041.300	19972.200	13932.600
		TOTAL	121993.400	109133.600	91608.800
Less	EXPENSES
		Interest Expended	37382.600	37381.800	28874.600
		Operating Expenses	28564.900	28947.600	28014.400
		Provisions and Contingencies	27118.500	15620.800	15499.900
		TOTAL	93066.000	81950.200	72388.900
	NET PROFIT FOR THE YEAR		28927.400	27183.400	19219.900
Less	APPROPRIATIONS
		Transfer to Statutory Reserve	7231.900	6795.900	4805.000
		Transfer to Foreign Exchange Reserve	0.000	742.500	0.000
		Transfer to Capital Reserve on sale of immovable property	448.800	190.600	0.000
		Transfer to Investment Reserve	97.500	2375.500	1192.800
		Transfer to Special Reserve	148.700	4.200	55.500
	BALANCE CARRIED TO THE B/S		21000.500	17074.700	13166.600
	TOTAL		28927.400	27183.400	19219.900

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	No
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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	Yes

CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

BACKGROUND

The accompanying financial statements for the year ended March 31, 2014 comprise the accounts of Citibank N.A. - India branches ('the Bank'), a banking company under the Banking Regulation Act, 1949. Citibank N.A. is incorporated with limited liability in the United States of America.

The Indian branches of the Bank as at March 31, 2014 are at:

Ahmedabad, Akola, Aurangabad, Bengaluru (M.G. Road and South End Road), Bhopal, Bhubaneshwar, Chandigarh, Chennai (Anna Salai and Alwarpet), Coimbatore, Faridabad, Gurgaon, Indore, Jaipur, Jalandhar, Kochi, Kolkata (Brabourne Road and Chowringee Road), Lucknow, Ludhiana, Mumbai (Lower Parel West, Andheri East, Fort, Juhu, Khar and Vashi), Nanded, Nandyal, Nasik, New DeIhi (Sansad Marg, Punjabi Baug, Nehru Place, South Extension and Vasant Vihar), Noida, Puducherry, Pune, Hyderabad, Surat, Vadodara and Vapi. During the year, the branch at Andheri (West), Mumbai was relocated within the same city to Lower Parel (West) arid the branch at M.G. Road, Bengaluru was moved to a new premise within the same city.

During the year, the Bank has been granted license by Reserve Bank of India (RBI) to open branches in three locations namely Nagpur, Thane and Serilingampally (Hyderabad). As at March 31, 2014, these branches were yet to commence operations.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Claims against the bank not acknowledged as debts	229.200	275.200
Liability on account of outstanding forward exchange contracts	5478532.100	5249999.200
Liability on account of outstanding Rupee Interest Rate Swaps	4730451.700	4326328.900
Guarantees given on behalf of constituents
a) In India	122968.800	94524.700
b) Outside India	40542.400	33370.200
Acceptances, endorsement and other obligations	143034.600	110700.600
Others	12683.700	14894.900
Total	10528442.500	9830093.700

FIXED ASSETS:

· Leasehold Land

Premises

Furniture and Fixtures

Equipments

Other Computer Hardware and related equipments

Personal computers along with operating systems

Software

LAN printers, servers, scanners, fax machines

Vehicles

PRESS RELEASES

BRANCHES NO LONGER AN INCENTIVE TO SUBSIDARISE IN THE COUNTRY: CITIBANK

Apr 11, 2014

MUMBAI: Citibank India said on Thursday that it is not keen on creating a wholly-owned subsidiary to take advantage of the benefits of more branches as it plans to grow its business through e-banking and digitisation.

"As we get licences, we take them. As of now, we are not participating in subsidiarisation, but that doesn't mean that we cannot continue to grow," said Anand Selvakesari, Country Business Manager, consumer banking. "At this point, we have looked at it, and based on what has been proposed, we have decided not to pursue it," he added.

Indeed, the bank has not expanded its branch network in the last five years in India. Currently, it has 42 branches, and has received the Reserve Bank of India's approval to set up three more branches last year, which are yet to start operation.

"Industry is at a point where the traditional model of consumer banking is changing because of digitisationand globalisation. The future of our business is digital," said Jonathan Larsen, global head, retail banking, Asia-Pacific head consumer banking at Citibank. "India is among the top three markets in our consumer banking franchise," he added.

This comment comes at a time when the US-based financial group has decided to shut one third of its branches in Korea. The bank said it will cut the number of its branches to 134 from 190 over the next several months and enhance online services for mobile and tablet platforms.

"We are focusing on urban centres and reshaping our branch network. That involves relocating outlets, consolidating and closing some branches. Reshaping is in line with our strategy," said Larsen.

When asked if Citi would consciously not expand its branch network in India and push digitisation to expand its business, Larsen said, "Branches are important for maintaining relations. 95% of banking transactions happen outside of a branch. The role of the branch banking is to help wealth management clients."

CITIBANK NOT KEEN ON SUBSIDIARY ROUTE IN INDIA AT THIS TIME

Apr 10, 2014

MUMBAI: Citibank India said on Thursday that it is not keen on creating a wholly-owned subsidiary to take advantage of the benefits of more branches as it plans to grow its business through e-banking and digitisation.

"As we get licences, we take them. As of now, we are not participating in subsidiarisation, but that doesn't mean that we cannot continue to grow," said Anand Selvakesari, Country Business Manager, consumer banking. "At this point, we have looked at it, and based on what has been proposed, we have decided not to pursue it," he added.

Indeed, the bank has not expanded its branch network in the last five years in India. Currently, it has 42 branches, and has received the Reserve Bank of India's approval to set up three more branches last year, which are yet to start operation.

"Industry is at a point where the traditional model of consumer banking is changing because of digitisation and globalisation. The future of our business is digital," said Jonathan Larsen, global head, retail banking, Asia-Pacific head consumer banking at Citibank. "India is among the top three markets in our consumer banking franchise," he added.

This comment comes at a time when the US-based financial group has decided to shut one third of its branches in Korea. The bank said it will cut the number of its branches to 134 from 190 over the next several months and enhance online services for mobile and tablet platforms.

"We are focusing on urban centres and reshaping our branch network. That involves relocating outlets, consolidating and closing some branches. Reshaping is in line with our strategy," said Larsen.

When asked if Citi would consciously not expand its branch network in India and push digitisation to expand its business, Larsen said, "Branches are important for maintaining relations. 95% of banking transactions happen outside of a branch. The role of the branch banking is to help wealth management clients."

CITI OFFERS ULTRA RICH NEW CARDS

Apr 11, 2014

MUMBAI: In keeping with its strategy to focus on the rich and the super rich, Citibank on Thursday brought to India two of its exclusive credit cards — Citi Prestige and upgraded its super-exclusive card Citi Ultima to Citi Ultima Infinite.

The high-end cards compete with the likes of the legendary American Express Centurion. Like the Centurion, the Ultima Infinite is made of metal and is offered to customers by invitation only. Ultima cardholders get their own 'lifestyle manager' who is dedicated to one cardholder.

Besides India, Citi Ultima Infinite is offered in Hong Kong and Singapore and is likely to be launched in other markets across Asia which, according to market research, has the fastest-growing number of billionaires.

The other global credit card, Citi Prestige, is also targeted at high net worth individuals and is available against annual fees of Rs 20,000. Officials said that frequent travelers will get benefits in excess of the fees through flight discounts, and stay and dining vouchers in luxury hotels. Cardholders are also entitled to access on a complimentary basis 600 airport lounges across the world.

"With our network, no bank is better placed than Citi to serve the needs of our client base in India who are increasingly global and want access to rewards and services across the world," said Jonathan Larsen, global head of retail banking at Citibank. The largest credit card issuer among foreign banks in India, Citibank is the second largest in terms of credit card spend among all banks.

The new launches are expected to increase the bank's average card spend. "Besides Citi's global network, our international partnerships and deep-seated understanding of the requirements of the ultra-high net worth clientele in India makes us the perfect choice to deliver excellence in service in payment products. This, in itself, is amongst the fastest-growing market segments within the card industry and is being constantly redefined with stronger value propositions to meet the client's discerning aspirations," said Muge Yuzuak, head of cards and personal loans in India.

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] 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. 59.73
UK Pound	1	Rs. 102.36
Euro	1	Rs. 81.38

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	9
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		75

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.