MIRA INFORM REPORT

Report Date :

03.06.2014

IDENTIFICATION DETAILS

Name :	ZF HERO CHASSIS SYSTEMS PRIVATE LIMITED (w.e.f. 11.05.2010)
Formerly Known :	HERO CHASSIS SYSTEMS PRIVATE LIMITED
Registered Office :	603, International Trade Tower, Nehru Place, New Delhi - 110019
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	16.12.2008
Com. Reg. No.:	55-185888
Capital Investment / Paid-up Capital :	Rs. 32.300 Millions
CIN No.: [Company Identification No.]	U34300DL2008PTC185888
TAN No.: [Tax Deduction & Collection Account No.]	DELH06876C
PAN No.: [Permanent Account No.]	AACCH1472L
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is Engaged in a Business of Supply Chain Management, Assembly and Sequencing of Chassis Modules Including of End Axles Modules.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 100000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between “Hero Motors Limited” and “ZF India Private Limited” It is an established company having moderate track. The company possesses a weak financial profile marked by consecutive losses for previous years resulting into accumulation of the same during FY 2013. However, trade relations seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of experienced promoters and established brand image, the subject 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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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 DECLINED BY

Name :	Mr. Vikas Gaikwad
Contact No.:	91-9765777081
Date :	21.05.2014

LOCATIONS

Registered/ Corporate Office :	603, International Trade Tower, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-40511700
Fax No.:	91-11-26471230
E-Mail :	manish@heromotors.com akdewan@heromotors.com legal@heromotors.com
Website :	http://www.zf.com http://www.heromotors.com
Factory 1:	Gat No. 43, Navlakh Umbre,Talegaon, MIDC,Pune-411507, Maharashtra, India
Factory 2 :	110,GIDC Estate, Dist-Panchmahal,Halol-389 350 ,(Gujarat), India
Factory 3 :	Plot No. 2/8, Phase – III, GIDC, Near HNG Company, Halol – 3839350, District Panchal Mahal, Gujarat, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Pankaj Munjal

Designation :

Director

Address :

B-5, Greater Kailash, New Delhi – 110048, India

Date of Birth/Age :

15.12.1962

Date of Appointment :

16.12.2008

DIN No.:

00005330

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	U65921PB1979PTC004044	THAKURDEVI INVESTNENTS PVT LTD	Director	20-11-81	20-11-81	21-05-10	Active	NO
2	U65921PB1981PTC004730	BHAGYODAY INVESTMENTS PVT LTD	Director	26-11-81	26-11-81	-	Active	NO
3	U27109PB1974PLC003386	SATYAM AUTO COMPONENTS LIMITED	Director	24-12-81	24-12-81	-	Active	NO
4	U67120PB1981PTC004752	MUNJAL INVESTMENTS PVT LTD	Director	05-07-84	05-07-84	21-05-10	Active	NO
5	U67120PB1981PTC004753	ANADI INVESTMENTS PVT LTD	Director	13-07-84	13-07-84	21-05-10	Active	NO
6	L34101HR1985PLC020934	MUNJAL SHOWA LIMITED	Director	16-05-85	16-05-85	-	Active	NO
7	U74140DL1987PLC026696	HERO FINANCIAL SERVICES LIMITED	Director	16-01-87	16-01-87	-	Active	NO
8	U27104HR1996PTC033093	SUNBEAM AUTO Private Limited	Director	02-05-96	02-05-96	21-05-10	Active	NO
9	U35911PB1966PLC002667	HERO CYCLES LIMITED	Managing director	01-10-11	24-02-98	-	Active	NO
10	U72200DL2000PLC108318	HERO GLOBAL DESIGN LIMITED	Director	25-10-00	25-10-00	-	Active	NO
11	U74140DL2001PLC111461	HERO ASSOCIATES LIMITED	Director	28-06-01	28-06-01	-	Strike off	NO
12	U29299DL1998PLC093496	HERO MOTORS LIMITED	Managing director	26-09-01	26-09-01	-	Active	NO
13	U34102DL1997PTC088319	MUNJAL BROTHERS PRIVATE LIMITED	Director	02-08-02	02-08-02	-	Active	NO
14	U55204HR2007PTC048786	Munjal Hospitality Private Limited	Director	08-01-07	08-01-07	-	Active	NO
15	U74900DL2007PTC164863	Falcon Cycles Private Limited	Director	18-06-07	18-06-07	-	Active	NO
16	U34200DL2007PTC166351	MUNJAL KIRIU INDUSTRIES PRIVATE LIMITED	Director	11-02-11	27-07-07	-	Active	NO
17	U62200DL2008PTC177022	MUNJAL AVIATION PRIVATE LIMITED	Director	22-04-08	22-04-08	-	Active	NO
18	U74120DL2008PTC183682	MUNJAL ALTERNATE FUELS PRIVATE LIMITED	Director	24-09-08	24-09-08	-	Active	NO
19	U34300DL2008PTC185888	ZF HERO CHASSIS SYSTEMS PRIVATE LIMITED	Director	16-12-08	16-12-08	-	Active	NO
20	U35122DL2009PTC188762	HERO TRANSMISSION PRIVATE LIMITED	Director	24-03-09	24-03-09	-	Active	NO
21	U35920PB1988PLC008589	URBAN TRAIL CYCLES LIMITED	Director	29-09-10	15-05-10	-	Active	NO
22	U51399PB1988PTC008584	PRAGATI TYRES PRIVATE LIMITED	Director	29-09-10	15-05-10	-	Active	NO
23	U13204DL2010PTC207758	MUNJAL LIGHT METALS PRIVATE LIMITED	Director	01-09-10	01-09-10	-	Active	NO
24	U66000DL2011PTC224465	MUNJAL INSURANCE SERVICES PRIVATE LIMITED	Director	02-09-11	02-09-11	-	Active	NO
25	U35990DL2014PTC266813	PLUSDRIVE INTERNATIONAL PRIVATE LIMITED	Director	24-03-14	24-03-14	-	Active	NO

Name :

Mr. Rajesh Gulati

Designation :

Director

Address :

Flat No EB – 17, Mayapuri Enclave, New Delhi – 110064, India

Date of Birth/Age :

04.02.1972

Date of Appointment :

06.08.2009

DIN No.:

01973677

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	U72200DL2000PLC108318	HERO GLOBAL DESIGN LIMITED	Director	30-09-08	10-12-07	-	Active	NO
2	U74120DL2008PTC183682	MUNJAL ALTERNATE FUELS PRIVATE LIMITED	Director	24-09-08	24-09-08	-	Active	NO
3	U34300DL2008PTC185888	ZF HERO CHASSIS SYSTEMS PRIVATE LIMITED	Director	13-08-09	06-08-09	-	Active	NO
4	U35122DL2009PTC188762	HERO TRANSMISSION PRIVATE LIMITED	Director	30-09-10	07-10-09	-	Active	NO

Name :

Mr. Amit Gupta

Designation :

Director

Address :

97, Girdhar Enclave, In Front Of Devidyal Appartment, Main G.T. Road, Sahibabad, Ghaziabad – 201005, Uttar Pradesh, India

Date of Birth/Age :

12.07.1978

Date of Appointment :

08.05.2012

DIN No.:

02990732

Name :

Mr. Olaf Kinghagen

Designation :

Director

Address :

Hermann, Lons, Weg – 17, Stemshom, 49448, Germany

Date of Birth/Age :

26.01.1971

Date of Appointment :

30.03.2010

DIN No.:

03013993

Name :

Mr. Andreas Klein

Designation :

Director

Address :

Blumenthaistrasse 25, Osnabrueck – 49076, Germany

Date of Birth/Age :

05.07.1966

Date of Appointment :

30.03.2010

DIN No.:

03014117

Name :

Mr. Peter Hoidmann

Designation :

Director

Address :

Humperdinckstreasse 16 A, Osnabrueck – 49076, Germany

Date of Birth/Age :

20.04.1969

Date of Appointment :

30.03.2010

DIN No.:

03014131

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
Hero Motors Limited	1615000
ZF India Private Limited	1615000
Total	3230000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The Company is Engaged in a Business of Supply Chain Management, Assembly and Sequencing of Chassis Modules Including of End Axles Modules.
Products :	Gears and Transmissions Ferrous Casting Chassis Systems Sheet Metal New Projects Engineering Services Bicycle

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Not Available

Banking Relations :	---
Auditors :
Name :	S.V. Ghatalia and Associates LLP Chartered Accountant
Address :	C-401, 4^th Floor, Panchshil Tech Park, Yerwada, Near Don – Bosco School, Pune – 411006, India
Tel. No.:	91-20-66036000
Fax No.:	91-20-66015900
PAN No.:	AACFS6921Q
Related Parties :	Joint Venture Partners Hero Motors Limited, India ZF India Private Limited Affiliate Companies Hero Cycles Limited, India Munjal Kiriu Industries Private Limited, India

CAPITAL STRUCTURE

As on: 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3230000	Equity Shares	Rs.10/- each	Rs. 32.300 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	32.300	32.300	32.300
(b) Reserves & Surplus	(4.900)	4.557	20.421
(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)	27.400	36.857	52.721
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	55.400
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.789	0.766	0.399
Total Non-current Liabilities (3)	0.789	0.766	55.799
(4) Current Liabilities
(a) Short term borrowings	24.365	29.441	32.099
(b) Trade payables	33.457	42.371	29.555
(c) Other current liabilities	66.344	62.475	3.836
(d) Short-term provisions	0.606	0.413	0.221
Total Current Liabilities (4)	124.772	134.700	65.711
TOTAL	152.961	172.323	174.231
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	32.478	37.269	32.276
(ii) Intangible Assets	61.410	71.706	82.002
(iii) Capital work-in-progress	0.000	0.000	1.505
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.015	0.015	0.015
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.479	4.916	3.774
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	98.382	113.906	119.572
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10.327	9.995	7.806
(c) Trade receivables	40.663	45.630	44.818
(d) Cash and cash equivalents	0.643	0.455	0.482
(e) Short-term loans and advances	2.946	2.337	1.553
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	54.579	58.417	54.659
TOTAL	152.961	172.323	174.231

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	203.010	207.682	140.120
		Other Income	1.117	0.777	1.113
		TOTAL	204.127	208.459	141.233
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	200.590	219.462	137.305
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.537	(11.003)	3.928
Less/ Add	DEPRECIATION/ AMORTISATION		5.920	4.861	14.830
	PROFIT BEFORE TAX		(9.457)	(15.864)	(10.902)
Less	TAX		0.000	0.000	(1.677)
	PROFIT AFTER TAX		(9.457)	(15.864)	(9.225)
	EARNINGS IN FOREIGN CURRENCY
		FOB Price	0.257	5.217	-
	IMPORTS
		Raw Materials	-	1.985	0.501
		Traded Goods	-	2.735	1.381
	TOTAL IMPORTS		-	4.720	1.882
	Earnings Per Share (Rs.)		(2.93)	(4.91)	(2.86)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(4.63)	(7.61)	(6.53)
Net Profit Margin (PBT/Sales)	(%)	(4.66)	(7.64)	(7.78)
Return on Total Assets (PBT/Total Assets}	(%)	(6.18)	(9.21)	(6.31)
Return on Investment (ROI) (PBT/Networth)		(0.35)	(0.43)	(0.21)
Debt Equity Ratio (Total Debt /Networth)		0.89	0.80	1.66
Current Ratio (Current Asset/Current Liability)		0.44	0.43	0.83

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	32.300	32.300	32.300
Reserves & Surplus	20.421	4.557	(4.900)
Net worth	52.721	36.857	27.400
long-term borrowings	55.400	0.000	0.000
Short term borrowings	32.099	29.441	24.365
Total borrowings	87.499	29.441	24.365
Debt/Equity ratio	1.660	0.799	0.889

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	140.120	207.682	203.010
		48.217	-2.250

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	140.120	207.682	203.010
Profit	(9.225)	(15.864)	(9.457)
	(6.58)%	(7.64)%	(4.66)%

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	Yes
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	No
24]	Banking facility details	No
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 CHARGES: NO CHARGES EXIST FOR THE COMPANY

UNSECURED LOAN (Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
SHORT TERM BORROWINGS
Bank overdraft (amount repayable on demand)	24.365	29.441
Total	24.365	24.441
Note: The company has availed bank overdraft facility with its banker against Guarantee issued by ZF Friedriohshefen AG, Germany. The overall limit of the of the facility is Rs. 50.000 Millions. The bank overdraft is repayable on demand and carries interest rate between 7.25% to 7.5% p.a

FIXED ASSETS

Ø Computers

Ø Office Equipments

Ø Furniture and Fixtures

Ø Plant and Machinery

Ø Vehicles

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.59.14
UK Pound	1	Rs.99.02
Euro	1	Rs.80.63

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	SBN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	4
--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		33

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.