MIRA INFORM REPORT

Report Date :

24.07.2014

IDENTIFICATION DETAILS

Name :	RICOH INDIA LIMITED
Registered Office :	1201, Building No. 12, Solitaire Corporate Park, Andheri - Ghatkopar Link Road, Andheri (East), Mumbai-400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.10.1993
Com. Reg. No.:	11-074694
Capital Investment / Paid-up Capital :	Rs. 397.700 Millions
CIN No.: [Company Identification No.]	L74940MH1993PLC074694
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14081E
PAN No.: [Permanent Account No.]	AAACR4151J
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacture and Distribution of Photocopiers, Paper Guillotines and Duplicating Machines.
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s improved operational performance and profit achieved during financial year 2014. Trade relations are fair. Business is active. Payment terms are reported to be slow but 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.

INDIAN ECONOMIC OVERVIEW

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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. Santosh
Designation :	Accounts Executive
Contact No.:	91-22-67032090
Date :	21.07.2014

LOCATIONS

Registered Office :	1201, Building No. 12, Solitaire Corporate Park, Andheri - Ghatkopar Link Road, Andheri (East), Mumbai-400 093, Maharashtra, India
Tel. No.:	91-22-66833000
Fax No.:	91-22-67032099
E-Mail :	ril.secretarial@ricoh.co.in
Website :	http://www.ricoh.co.in
Location :	Owned
Corporate Office :	2nd Floor, Salcon Aurum Building Plot No. 4, District Centre, Jasola, New Delhi-110025, India
Tel. No.:	91-11-49103000 / 49103100 / 49103200
Fax No.:	91-11-49103099 / 49103199
E-Mail :	ril.info@ricoh.co.in
Factory 1 :	A- 9, GIDC Electronic Estate, ‘K’ Road, Sector 15, Gandhinagar – 382 044, Gujarat, India
Factory 2 :	Block-GP, Sector V, Salt Lake Electronic Complex, Kolkata – 700 091, West Bengal, India

DIRECTORS

As on: 31.03.2013

Name :	Mr. N. Majima
Designation :	Non-Executive (Chairman)
Date of Birth/Age :	24.05.1952
Qualification :	Graduate from Kyoto University, Foreign Languages (French) Faculty
Expertise in specific functional areas :	International Marketing and Strategic Business Planning
Date of Appointment :	23.07.2008
Name :	Mr. T. Takano
Designation :	Managing Director and Chief Executive Officer
Date of Birth/Age :	30.08.1954
Qualification :	Law Graduate from Keio Gijuku University, Tokyo
Experience :	35 Years
Expertise in specific functional areas :	Corporate Marketing and Administration
Date of Appointment :	01.04.2011
Name :	Mr. D. C. Singhania
Designation :	Non-Executive (Independent)
Name :	Mr. U. P. Mathur
Designation :	Non-Executive (Independent)
Date of Birth/Age :	29.03.1937
Qualification :	M.Com, Bachelor of Law, Associate Member of the Institute of Company Secretaries of India
Expertise in specific functional areas :	Corporate Laws
Date of Appointment :	08.07.2005
Name :	Mr. R. K. Pandey
Designation :	Non-Executive (Independent)
Date of Birth/Age :	20.01.1940
Qualification :	M. Com, Bachelor of Law Fellow Member of the Institute of Company Secretaries of India & Post Graduate Diploma in Business Administration
Expertise in specific functional areas :	Corporate Laws and Capital Market
Directorships held in other Public Companies (excluding Foreign Companies)	-Hanung Toys and Textiles Limited -Precise Laboratories Private Limited -Sanghi Industries Limited -Welcure Drugs and Pharmaceuticals Limited -Morgan Ventures Limited -British Healthcare Products Limited -PTC Industries Limited -Shree Rajasthan Syntex Limited -Andhra Cements Limited -Kanpur Fertilizer and Cement Limited -Jindal Polyfilms Limited -Jaypee Uttar Bharat Vikas Private Limited -Kamdhenu Ispat Limited -Steren Impex (Private) Limited
Date of Appointment :	27.06.2008
Name :	Mr. Hi Kitada
Designation :	Non-Executive Director

KEY EXECUTIVES

Name :	Mr. Manish Sehgal
Designation :	Company Secretary
Name :	Mr. Manoj Kumar
Designation :	Chief Financial Officer
Name :	Mr. Shinichi Nagashima
Designation :	Vice President
Qualification :	BS (Engg)
Experience :	21.07.2008
Date of Appointment :	32 Years
Name :	Ms. Fusako Hojo
Designation :	Manager Special Account Business Development
Qualification :	Graduate
Experience :	13 Years
Date of Appointment :	01.11.2011
Name :	Mr. Santosh
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2014

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	29270370	73.60
Sub Total	29270370	73.60
Total shareholding of Promoter and Promoter Group (A)	29270370	73.60
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	500400	1.26
Financial Institutions / Banks	5800	0.01
Insurance Companies	2400	0.01
Sub Total	508600	1.28
(2) Non-Institutions
Bodies Corporate	3143510	7.90
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4071629	10.24
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2718743	6.84
Any Others (Specify)	55309	0.14
Non Resident Indians	48909	0.12
Trust & Foundation	6400	0.02
Sub Total	9989191	25.12
Total Public shareholding (B)	10497791	26.40
Total (A)+(B)	39768161	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)	39768161	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

		Details of Shares held
Sl. No.	Name of the Shareholder	No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Ricoh Company Limited	1,83,10,578	46.04
2	NRG Group Limited	1,09,59,792	27.56
	Total	2,92,70,370	73.60

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Globe Capital Market Limited	641720	1.61
2	IDFC Equity Opportunity Series	500000	1.26
	Total	1141720	2.87

BUSINESS DETAILS

Line of Business :

Manufacture and Distribution of Photocopiers, Paper Guillotines and Duplicating Machines.

Products :

ITC Code	Product Description
84433930	Photo Copying Apparatus
84433100	Colour Printer
84729020	Digital Duplicator

Imports :

Products :

Raw Materials

Countries :

· China

· Thailand

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :	Retailers and End Users
No. of Employees :	700 (Approximately)
Bankers :	· The Mizuho Corporate Bank Limited · The Bank of Tokyo – Mitsubishi UFJ Limited · Citibank N.A. · BNP Paribas

Banking Relations :	--
Auditors :
Name :	Sahni Natarajan and Bahl Chartered Accountants
Address :	303, Mansarover, 90, Nehru Place, New Delhi – 110 019, India
Holding company :	Ricoh Company Limited, Japan
Fellow Subsidiaries :	NRG Holding Plc., U.K. Ricoh Asia Pacific Operations Limited Ricoh Thermal Media (WUXI) Ricoh Europe B.V. Ricoh Asia Pacific Pte Limited Ricoh Australia Pty Limited Ricoh Creative Service Company Ricoh China Company Limited Pentax Ricoh Imaging Company Limited

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.397.700 Millions

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
45000000	Equity Shares	Rs.10/- each	Rs. 450.000 Millions
500,000	7.5% Cumulative Redeemable Preference Shares	Rs.100/-each	Rs. 50.000 Millions
	Total		Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39768161	Equity Shares	Rs.10/- each	Rs. 397.700 Millions

Details of Shareholders holding more than 5 percent Shares of the total number of Shares

Particulars	As on 31.03.2013
Ricoh Company Limited, Japan	18310578
Percentage of Shareholding	46%
NRG Holding Plc., U.K	10959792
Percentage of Shareholding	28%

Reconciliation of Issued, Subscribed & Fully Paid up Share Capital

Particulars	As on 31.03.2013
Number of Equity Shares at the beginning of the year	39766961
Number of Equity Shares at the end of the year	39766961

Rights, Preferences and Restrictions attached to Shares

Equity shares: The Company has one class of Equity Shares having a par value of Rs.10 per Share.Each Shareholder is eligible for one vote per Share held. In the event of Liquidation , the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their Shareholding.

Shares in the Company held by the Holding Company and Subsidiaries of Holding Company in Aggregate

Particulars	As on 31.03.2013
18,310,578 Shares (Previous Year 18,310,578) held by Ricoh Company Limited, Japan, being Holding Company of the Company.	183.100
10,959,792 Shares (Previous Year 10,959,792) held by NRG Holding Plc., U.K., being Subsidiary of Ricoh Company Limited, Japan.	109.600

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	397.700	397.700	397.700
(b) Reserves & Surplus	1000.200	827.900	841.100
(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)	1397.900	1225.600	1238.800
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	30.800	29.600	28.700
(d) long-term provisions	73.200	47.900	46.500
Total Non-current Liabilities (3)	104.000	77.500	75.200
(4) Current Liabilities
(a) Short term borrowings	3573.300	2544.900	1147.100
(b) Trade payables	3061.400	2251.100	906.100
(c) Other current liabilities	396.400	1343.600	403.900
(d) Short-term provisions	69.800	3.800	13.100
Total Current Liabilities (4)	7100.900	6143.400	2470.200
TOTAL	8602.800	7446.500	3784.200
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	612.200	247.300	232.900
(ii) Intangible Assets	81.800	89.900	121.800
(iii) Capital work-in-progress	44.800	5.400	2.300
(iv) Intangible assets under development	0.000	81.300	15.600
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	55.400	46.200	10.500
(d) Long-term Loan and Advances	225.100	232.900	194.200
(e) Other Non-current assets	336.200	452.900	213.500
Total Non-Current Assets	1355.500	1155.900	790.800
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2064.100	1550.100	734.000
(c) Trade receivables	3191.800	1842.300	972.100
(d) Cash and cash equivalents	383.400	720.000	544.100
(e) Short-term loans and advances	582.300	461.500	301.500
(f) Other current assets	1025.700	1716.700	441.700
Total Current Assets	7247.300	6290.600	2993.400
TOTAL	8602.800	7446.500	3784.200

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	10486.486	6331.200	4315.200
		Other Income	18.190	15.300	17.300
		TOTAL (A)	10504.676	6346.500	4332.500
Less	EXPENSES
		Purchase of traded goods	7884.738	5160.700	2877.400
		Changes in inventories of stock in trade	(514.014)	(816.100)	(180.600)
		Employee benefit expenses	890.249	787.500	660.800
		Other expenses	1463.861	989.800	866.800
		TOTAL (B)	9724.834	6121.900	4224.400
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		779.842	224.600	108.100
Less	FINANCIAL EXPENSES (D)		317.176	139.700	59.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		462.666	84.900	48.500
Less/ Add	DEPRECIATION/ AMORTISATION (F)		161.456	80.900	73.100
	PROFIT / (LOSS) BEFORE TAX		301.210	4.000	(24.600)
	TAX		128.931	(17.200)	(1.400)
	PROFIT / (LOSS) AFTER TAX		172.279	(13.200)	(26.000)
	Earnings Per Share (Rs.)		4.33	(0.33)	(0.65)

Note:

1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 27, 2014.

2. Other Expenses include exchange fluctuation loss of Rs. 290.900 Millions (Previous year Rs. 77.200 Millions).

3. The Company has paid Rs. 6.437 Millions towards Voluntary Retirement Scheme taken out during the quarter ended March 31, 2014 as compared to the previous quarter ended March 31, 2013 of Rs. 104.100 Millions. 

4. The figures for the quarter ended March 31, 2014 are the balancing figures between the audited figures in respect of full financial year upto March 31, 2014 and the unaudited published year to date figures upto Dec 31,2013, being the date of end of the third quarter of the financial year which were subjected to limited review.

5. Previous year/period figures have been regrouped/rearranged/re-classified wherever considered necessary.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	1.64	-0.21	-0.60
Net Profit Margin (PBT/Sales)	(%)	2.87	0.06	-0.57
Return on Total Assets (PBT/Total Assets}	(%)	3.54	0.05	-0.65
Return on Investment (ROI) (PBT/Networth)		0.22	0.00	-0.02
Debt Equity Ratio (Total Debt/Networth)		2.56	2.08	0.93
Current Ratio (Current Asset/Current Liability)		1.02	1.02	1.21

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	397.700	397.700	397.700
Reserves & Surplus	841.100	827.900	1000.200
Net worth	1238.800	1225.600	1397.900
long-term borrowings	0.000	0.000	0.000
Short term borrowings	1147.100	2544.900	3573.300
Total borrowings	1147.100	2544.900	3573.300
Debt/Equity ratio	0.926	2.076	2.556

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	4315.200	6331.200	10486.486
		46.719	65.632

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	4315.200	6331.200	10486.486
Profit	(26.000)	(13.200)	172.279
	(0.60%)	(0.21%)	1.64%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

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)	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

Note: The Registered Office of the company has been shifted from 1104 Arcadia, 195, N. C. P. A. Road Nariman Point, Mumbai – 400021, Maharashtra, India to the present register office.

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2014	As on 31.03.2013
Short term borrowing
Loan Repayable on Demand		739.500
Buyer's Line Credit	NA	1605.400
Working Capital Loan		200.000
Total	NA	2544.900

CONTINGENT LIABILITIES

Particulars	As on 31.03.2013
Sales tax demands disputed by the Company	264.600
Income-tax demands disputed by the Company	0.800
Bank Guarantees given to customers	255.100
Rent cases	2.900
Consumer Claims	0.500

FIXED ASSETS:

• Goodwill
• Leasehold Land
• Factory Buildings
• Plant and Machinery
• Furniture, Fixtures Office Equipments
• Computer Hardware
• Machines capitalized
• Vehicles
• Computer Software

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.102.68
Euro	1	Rs. 81.03

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	KAR
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		41

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.