MIRA INFORM REPORT

Report Date :

14.07.2014

IDENTIFICATION DETAILS

Name :	SHACHIHATA (INDIA) PRIVATE LIMITED (w.e.f. 19.03.2014)
Formerly Known As :	ARTLINE INDIA PRIVATE LIMITED
Registered Office :	Survey No.1092/126, Perambakkam Road, Village Viswanathpuram, Post Ulandhai, District Tiruvallur, Tiruvallur – 602105, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	17.02.1998
Com. Reg. No.:	18-070123
Capital Investment / Paid-up Capital :	Rs.27.649 Millions
CIN No.: [Company Identification No.]	U36991TN1998PTC070123
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Stationary.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 174000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating reflects moderate financial risk profile marked by thin profit margin, low reserve position and huge borrowing recorded by the company. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 PARTED BY

Name :	Mr. Mahesh Kumar
Designation :	Finance Department
Contact No.:	91-22-33912100
Date :	11.07.2014

LOCATIONS

Registered Office :	Survey No.1092/126, Perambakkam Road, Village Viswanathpuram, Post Ulandhai, District Tiruvallur, Tiruvallur – 602105, Tamilnadu, India
Tel. No.:	91-44-27658141
Fax No.:	91-44-27658284
E-Mail :	pranali.more@artline-india.com raveendran@fabercastell.co.in
Website :	http://www.artlineworld.com
Location :	Owned
Factory / Corporate Office :	107-109, Meadows, Sahar Plaza Complex, M. V. Road, JB Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-33912100
Fax No.:	91-22-67729200 / 28203687

DIRECTORS

As on 07.09.2013

Name :

Mr. Anup Bhaskaran Rana

Designation :

Managing Director

Address :

201 and 202, Delphi, 2nd Floor, 73 Pali Hill, Nargis Dutt Road, Bandra (West), Mumbai - 400050, Maharashtra, India

Date of Birth/Age :

03.01.1955

Date of Appointment :

20.04.2007

DIN No.:

00874231

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	U36991MH1996PTC103223	A W FABER CASTELL (INDIA) PRIVATE LIMITED	Managing director	15/10/1996	15/10/1996	28/03/2014	Active	NO
2	U36991GA1997PTC002335	PUMA STATIONERY PRIVATE LIMITED	Managing director	01/01/2009	10/05/1997	-	Active	NO
3	U36991GA1997PTC002401	DELTA STATIONERY PRIVATE LIMITED	Managing director	31/07/1997	31/07/1997	-	Amalgamated	NO
4	U36991MH1997PTC110627	A W FABER-CASTELL STATIONERY PRIVATE LIMITED	Managing director	09/10/1997	09/10/1997	-	Amalgamated	NO
5	U63040MH1998PTC113210	GILPIN TOURS AND TRAVEL MANAGEMENT INDIA PRIVATE LIMITED	Director	29/01/1998	29/01/1998	-	Active	NO
6	U36991TN1998PTC070123	SHACHIHATA (INDIA) PRIVATE LIMITED	Managing director	20/04/2007	31/03/1998	-	Active	NO
7	U72400TN2010PTC074715	SPAN THOUGHTWORKS PRIVATE LIMITED	Director	30/03/2013	30/03/2013	-	Active	NO

Name :

Mr. Masayoshi Funahashi

Designation :

Director

Address :

Grand Maison Shirakabe Oumeisou 403, 4-79-2 Shirakabe, Higashi-Ku Nagoya, Aichi, 4610011, Japan

Date of Birth/Age :

18.05.1965

Date of Appointment :

12.05.2004

DIN No.:

01300608

Name :

Mr. Yasuji Mori

Designation :

Nominee Director

Address :

Flat 4, Ingle Wood, Fulshaw Park, South, Wilmslow, SK9 1QG, Cheshire, United Kingdom

Date of Birth/Age :

22.02.1951

Date of Appointment :

30.08.2010

DIN No.:

01522080

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	U36991TN1998PTC070123	SHACHIHATA (INDIA) PRIVATE LIMITED	Nominee director	30/08/2010	28/01/2002	-	Active	NO

Name :

Mr. Akinori Funahasi

Designation :

Nominee Director

Address :

1-3-24, Minamigaoka, Chikusa, Nagoya, Aichi, 4640042, Japan

Date of Birth/Age :

27.08.1973

Date of Appointment :

30.08.2010

DIN No.:

02820261

Name :

Mr. Nobuhiro Inukai

Designation :

Nominee Director

Address :

Survey No.1095/126, Perambakkam Road, Post- Ulandhai, Village Viswanathapuram Tiruvallur - 602105, Tamilnadu, India

Date of Birth/Age :

08.03.1965

Date of Appointment :

12.08.2011

DIN No.:

03595394

Name :

Mr. Stanley Hillary Vaz

Designation :

Additional Director

Address :

A-307 Shraddha CHS, New Shastri Nagar, Goregaon West, Mumbai – 400104, Maharashtra, India

Date of Birth/Age :

01.11.1954

Date of Appointment :

08.02.2014

DIN No.:

00780539

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	U36991TN1998PTC070123	SHACHIHATA (INDIA) PRIVATE LIMITED	Additional director	08/02/2014	03/10/2006	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Mahesh Kumar
Designation :	Finance Department
Name :	Mrs. Pooja Udeshi
Designation :	Practicing Company Secretary
Address :	12, 14^th Floor, Navjivan Society, Building No. 3, Lamington Road, Mumbai – 400008, Maharashtra, India
Tel. No.:	91-22-66310888 / 66314830
Fax No.:	91-22-66314830
Email ID :	pooja@hkcs.com

MAJOR SHAREHOLDERS

As on 07.09.2013

Names of Shareholders	No. of Shares	% of Holding
Shachihata Inc., India	1410111	51.00
Rana Holdings Pty. Limited, Australia	1354612	48.99
Anup Bhaskaran Rana	200	0.01
Total	2764923	100.00

Equity Share Break up (Percentage of Total Equity)

As on 07.09.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Stationary.
Exports :
Products :	Finished Goods
Countries :	· Malaysia · Japan
Imports :
Products :	Raw Material
Countries :	· China · Malaysia
Terms :
Selling :	Depend
Purchasing :	Depend

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

150 (Approximately)

Bankers :

Corporation Bank, JB Nagar Branch, Mumbai, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Vehicle loan From bank (Term of repayment 3 years April 2012-February 2015, EMI Rs.0.034 Million) (Secured by hypothecation off the car purchase)	0.349	0.691
Debenture (6800000 – 1.875% fully convertible debenture of Rs.10 each) (The debenture will be converted into equal number of equity shares at the end of 7 years from the date of allotment of FCD i.e. FY 2007-20008.)	68.000	68.000
Short Term Borrowings
Vehicle loan From bank	0.342	0.305
Total	68.691	68.996

Banking Relations :	--
Auditors :
Name :	K. S. Aiyar and Company Chartered Accountants
Address :	54/2, Paulwells Road, St. Thomas Mount, Chennai – 600016, Tamilnadu, India
PAN No.:	AAAFK6843P
Holding Company :	· Shachihata Inc., India
Associate Companies :	· Rana Holdings Pty. Limited, Australia · Shachihata (Malaysia) Sdn. Bhd., Malaysia · Shachihata (Changzhou) Stationery Limited · Rana Holding Private Limited, Australia · Aw Faber-Castell (India) Private Limited, India

CAPITAL STRUCTURE

As on 07.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3250000	Equity Shares	Rs.10/- each	Rs.32.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2764923	Equity Shares	Rs.10/- each	Rs.27.649 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	27.649	27.649	27.649
(b) Reserves & Surplus	15.788	13.713	12.937
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.041	0.041	0.041
Total Shareholders’ Funds (1) + (2)	43.478	41.403	40.627
(3) Non-Current Liabilities
(a) long-term borrowings	74.897	75.467	82.713
(b) Deferred tax liabilities (Net)	8.014	7.253	6.312
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.054	1.144	0.275
Total Non-current Liabilities (3)	83.965	83.864	89.300
(4) Current Liabilities
(a) Short term borrowings	3.549	3.693	0.000
(b) Trade payables	30.722	38.546	17.125
(c) Other current liabilities	10.820	8.770	15.987
(d) Short-term provisions	2.634	1.620	2.314
Total Current Liabilities (4)	47.725	52.629	35.426
TOTAL	175.168	177.896	165.353
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	89.765	87.323	89.058
(ii) Intangible Assets	0.397	0.486	0.000
(iii) Capital work-in-progress	3.933	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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.173	0.161	0.152
Total Non-Current Assets	94.268	87.970	89.210
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	36.576	33.695	36.501
(c) Trade receivables	30.742	43.552	29.678
(d) Cash and cash equivalents	6.128	7.150	7.741
(e) Short-term loans and advances	4.004	2.684	0.179
(f) Other current assets	3.450	2.845	2.044
Total Current Assets	80.900	89.926	76.143
TOTAL	175.168	177.896	165.353

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL		118.772	79.841	NA
	EXPENSES			121.464	80.592	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			7.296	6.363
Less	DEPRECIATION/ AMORTISATION			4.645	4.460
	PROFIT/(LOSS) BEFORE TAX			2.651	1.903	NA
Less	TAX			0.576	1.127
	PROFIT/(LOSS) AFTER TAX			2.075	0.776	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			9.425	8.649	8.649
	BALANCE CARRIED TO THE B/S			11.500	9.425	8.649
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	57.012	28.509	NA
	TOTAL EARNINGS			57.012	28.509	NA
	IMPORTS
			Raw Materials	40.590	22.426
			Stores & Spares	0.031	0.431
			Capital Goods	3.137	11.873
	TOTAL IMPORTS			43.758	34.730	NA
	Earnings Per Share (Rs.)			0.75	NA	NA

Particulars	31.03.2014
Sales Turnover (Approximately)	180.000

The above information has been parted by Mr. Mahesh Kumar

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.75	0.97	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.55	1.07	NA
Return on Investment (ROI) (PBT/Networth)		0.06	0.05	NA
Debt Equity Ratio (Total Debt /Networth)		1.80	1.91	2.04
Current Ratio (Current Asset/Current Liability)		1.70	1.71	2.15

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	27.649	27.649	27.649
Reserves & Surplus	12.937	13.713	15.788
Share Application money pending allotment	0.041	0.041	0.041
Net worth	40.627	41.403	43.478
long-term borrowings	82.713	75.467	74.897
Short term borrowings	0.000	3.693	3.549
Total borrowings	82.713	79.160	78.446
Debt/Equity ratio	2.036	1.912	1.804

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	79.841	118.772
		48.761

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Sales	79.841	118.772
Profit	0.776	2.075
	0.97%	1.75%

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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans from group companies (terms of repayment – Repayable in 8 equal half yearly installment beginning from Jan 2010)	0.000	6.776
Loans from group companies (terms of repayment – Repayable in 8 equal half yearly installment beginning from June 2015)	6.548	0.000
Short Term Borrowings
Loans and advances from related parties	3.207	3.388
Total	9.755	10.164

OPERATIONS:

During the financial year, the Company’s total income was Rs.118.772 Millions as against Rs.79.841 Millions achieved in the previous year. After meeting all expenses, the Company achieved a profit of Rs.20.075 Millions for the year. With the improved economic conditions, the directors are optimistic about the performance in the coming year.

NO CHARGES EXIST FOR THE COMPANY

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.60.18
UK Pound	1	Rs.103.15
Euro	1	Rs.81.87

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	DIV
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.