MIRA INFORM REPORT

Report Date :

22.07.2014

IDENTIFICATION DETAILS

Name :	NAOLIN ENTERPRISES LIMITED (w.e.f. 10.03.2014)
Formerly Known As :	ARUNJYOTI ENTERPRISES LIMITED
Registered Office :	Plot No.29, Kharkhana Road, HACP Colony, Secunderabad – 500009, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.02.2001
Com. Reg. No.:	01-072561
Capital Investment / Paid-up Capital :	Rs.72.581 Millions
CIN No.: [Company Identification No.]	L51109TG2001PLC072561
PAN No.: [Permanent Account No.]	AADCA7340K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in trading and marketing of different agricultural products, such as seeds, fertilizers and other agri inputs.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (28)

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 moderate track record. The rating is constrained on account of company’s low profit margin. However, trade relations are reported as fair. Business is active. Payments terms are reported to be 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 31-03-2014.

INFORMATION DENIED

Management Non Co-operative (91-40-30228228)

LOCATIONS

Registered Office :	Plot No.29, Kharkhana Road, HACP Colony, Secunderabad – 500009, Telangana, India
Tel. No.:	91-40-30228228
Fax No.:	Not Available
E-Mail :	csarunjyoti@gmail.com

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Ravinder Rao Polsani

Designation :

Director

Address :

H.No.8-7-177/23, Plot No.2, Satyam Status Enclave, Swarnadhama Nagar, Old Bowenpally, Hyderabad – 500011, Telangana, India

Date of Birth/Age :

05.05.1965

Date of Appointment :

14.08.2008

DIN No.:

01445527

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	U24239TG2002PTC039306	PASURA FARMTEK PRIVATE LIMITED	Director	15/07/2002	15/07/2002	04/02/2011	Active	NO
2	U24219TG1998PTC029489	PASURA BIO-TECH PRIVATE LIMITED	Director	01/04/2006	01/04/2006	27/04/2010	Amalgamated	NO
3	U24239TG2002PTC038762	PASURA LIFE SCIENCES PRIVATE LIMITED	Director	01/04/2006	01/04/2006	15/09/2008	Active	NO
4	U34300TG2007PTC056444	PASURA HEALTH CARE PRIVATE LIMITED	Director	26/11/2007	26/11/2007	15/02/2012	Active	NO
5	L51109TG2001PLC072561	NAOLIN ENTERPRISES LIMITED	Managing director	24/11/2008	14/08/2008	-	Active	NO
6	U74900TG2008PTC061788	PASURA ILLUMINARIES PRIVATE LIMITED	Director	11/11/2008	11/11/2008	20/08/2011	Active	NO
7	U24100TG2007PTC055265	Coromandal Agri Sciences Private Limited	Director	25/04/2011	25/04/2011	31/01/2012	Active	NO
8	U01119TG2013PTC088528	TAAZA STORES PRIVATE LIMITED	Director	24/06/2013	24/06/2013	-	Active	NO

Name :

Mr. Ganesh Vithal Kamath

Designation :

Director

Address :

6/B, Rx-4, Maruti Darshan, Sudarshan Nagar, M.I.D.C. Resid. Zone, Dombivali – 421203, Maharashtra, India

Date of Birth/Age :

11.11.1962

Date of Appointment :

18.02.2009

DIN No.:

00333643

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	U74999MH1995PTC087893	VITAL NEUTRACEUTICALS PRIVATE LIMITED	Director	01/05/1995	01/05/1995	-	Active	NO
2	L51109TG2001PLC072561	NAOLIN ENTERPRISES LIMITED	Director	31/07/2009	18/02/2009	-	Active	NO

Name :

Mr. Ayyalasomayajula Srinivas

Designation :

Director

Address :

12-2-417/34&35, Flat No.202, Svsumeru Nilayam, Sharadanagar, Mehadipatnam, Hyderabad – 500067, Andhra Pradesh, India

Date of Birth/Age :

08.12.1968

Date of Appointment :

14.11.2012

DIN No.:

05271604

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	U51909TG2012PTC080995	PRANA GLOBAL PRIVATE LIMITED	Director	17/05/2012	17/05/2012	-	Active	NO
2	L51109TG2001PLC072561	NAOLIN ENTERPRISES LIMITED	Director	05/05/2014	14/11/2012	-	Active	NO
3	U01119TG2013PTC088528	TAAZA STORES PRIVATE LIMITED	Director	24/06/2013	24/06/2013	-	Active	NO
4	U15316TG2014PTC094801	PRAANA RESTAURANTS PRIVATE LIMITED	Director	09/07/2014	09/07/2014	-	Active	NO

Name :

Mr. Namburu Venugopal

Designation :

Director

Address :

Near Sagar Guest House, Madhira, Khammam District, Madhira – 507203, Andhra Pradesh, India

Date of Birth/Age :

20.10.1986

Date of Appointment :

29.09.2012

DIN No.:

05271638

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	L51109TG2001PLC072561	NAOLIN ENTERPRISES LIMITED	Director	29/09/2012	14/08/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Abhishek Shukla
Designation :	Secretary
Address :	128/37 S Block, Yashoda Nagar, Kanpur Nagar – 208011, Uttar Pradesh, India
Date of Birth/Age :	24.08.1980
Date of Appointment :	19.12.2011
PAN No.:	DHJPS7150G

MAJOR SHAREHOLDERS

AS ON 30.06.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2278272	31.39
Sub Total	2278272	31.39
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2278272	31.39
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	165814	2.28
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	464129	6.39
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	4286522	59.06
Any Others (Specify)	63373	0.87
Clearing Members	57373	0.79
NRIs/OCBs	6000	0.08
Sub Total	4979838	68.61
Total Public shareholding (B)	4979838	68.61
Total (A)+(B)	7258110	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	7258110	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in trading and marketing of different agricultural products, such as seeds, fertilizers and other agri inputs.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Chinatrust Commercial Bank, 42 (Old No.105), Chennai Bangalore Highways NH4, Sriperumbudur, Kanchipuram – 602105, Tamilnadu, India

· Bank of Maharashtra, No.1, Minerva Complex, Sarijini Devi Road, Secunderabad – 500003, Telangana, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions
Long Term Borrowings
Loans and Advances from Others	18.226
Other Loans and Advances	0.352
Short Term Borrowings
Term Loans from Banks	9.628
Total	28.206

Banking Relations :	--
Auditors :
Name :	M M Reddy and Company Chartered Accountants
Address :	G-8, Amrutha Ville, Opposite Yashodha Hospital, Rajbhavan Road, Somajiguda, Hyderabad – 500082, Telangana, India
Tel. No.:	91-40-40272617
Mobile No.:	91-9391015637
Fax No.:	91-40-23418836
PAN No.:	AFWPM0479A

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.72.581 Millions

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7258110	Equity Shares	Rs.10/- each	Rs.72.581 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	72.581	72.581	72.581
(b) Reserves & Surplus	36.166	20.184	13.685
(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)	108.747	92.765	86.266
(3) Non-Current Liabilities
(a) long-term borrowings	20.395	18.578	12.168
(b) Deferred tax liabilities (Net)	1.217	1.158	1.028
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.780	0.530	0.325
Total Non-current Liabilities (3)	22.392	20.266	13.521
(4) Current Liabilities
(a) Short term borrowings	0.855	9.628	5.049
(b) Trade payables	258.477	239.684	255.965
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	15.865	18.087	19.410
Total Current Liabilities (4)	275.197	267.399	280.424
TOTAL	406.336	380.430	380.211
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	27.437	12.094	13.430
(ii) Intangible Assets	0.000	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	24.837	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	0.712	0.767	1.143
Total Non-Current Assets	52.986	12.861	14.573
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	18.642	29.249	14.411
(c) Trade receivables	282.232	276.169	339.847
(d) Cash and cash equivalents	39.139	21.585	0.456
(e) Short-term loans and advances	13.323	39.940	9.321
(f) Other current assets	0.014	0.626	1.603
Total Current Assets	353.350	367.569	365.638
TOTAL	406.336	380.430	380.211

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	3931.768	1640.174	1370.669
		Other Income	0.487	0.680	1.664
		TOTAL (A)	3932.255	1640.854	1372.333
Less	EXPENSES
		Cost of Materials Consumed	0.000	0.000	0.000
		Purchase of Stock-in-trade	3695.143	1567.396	1329.624
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	10.607	(14.837)	9.129
		Employee Benefits Expenses	8.904	7.508	10.216
		Other Expenses	26.124	69.727	18.004
		TOTAL (B)	3740.778	1629.794	1366.973
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		191.477	11.060	5.360
Less	FINANCIAL EXPENSES (D)		165.896	0.000	0.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.581	11.060	5.360
Less	DEPRECIATION/ AMORTISATION (F)		1.357	1.219	1.332
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		24.224	9.841	4.028
Less	TAX (H)		8.241	3.343	3.654
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		15.983	6.498	0.374
	Earnings Per Share (Rs.)		2.20	0.90	0.05

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.41	0.40	0.03
Net Profit Margin (PBT/Sales)	(%)	0.62	0.60	0.29
Return on Total Assets (PBT/Total Assets}	(%)	6.35	2.59	1.06
Return on Investment (ROI) (PBT/Networth)		0.22	0.11	0.05
Debt Equity Ratio (Total Debt /Networth)		0.20	0.30	0.20
Current Ratio (Current Asset/Current Liability)		1.28	1.37	1.30

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	72.581	72.581	72.581
Reserves & Surplus	13.685	20.184	36.166
Net worth	86.266	92.765	108.747
long-term borrowings	12.168	18.578	20.395
Short term borrowings	5.049	9.628	0.855
Total borrowings	17.217	28.206	21.250
Debt/Equity ratio	0.200	0.304	0.195

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	1,370.669	1,640.174	3,931.768
		19.662	139.717

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	1,370.669	1,640.174	3,931.768
Profit	0.374	6.498	15.983
	0.03%	0.40%	0.41%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10441581	17/07/2013	150,000,000.00	CHINATRUST COMMERCIAL BANK	42 (OLD NO.105), CHENNAI BANGALORE HIGHWAYS NH4, SRIPERUMBUDUR, KANCHEEPURAM DISTRICT,, TAMIL NADU, TAMIL NADU - 602105, INDIA	B81428062
2	10346878	23/04/2012 *	50,000,000.00	BANK OF MAHARASTRA	NO.1, MINERVA COMPLEX, SAROJINI DEVI ROAD,, SECUN DERABAD, SECUNDERABAD, ANDHRA PRADESH - 500003, INDIA	B37672318
3	90248683	30/11/2004	155,000,000.00	UTI BANK LTD	6-3-879/B; GREEENLANDS ROAD, BEGUMPET, HYDERABAD, ANDHRA PRADESH - 500016, INDIA	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.102.87
Euro	1	Rs.81.48

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.