MIRA INFORM REPORT

Report Date :

11.06.2014

IDENTIFICATION DETAILS

Name :	HI-CAN INDUSTRIES PRIVATE LIMITED
Registered Office :	Plot No.2621/22, Gate No.1, Road No. D-2, Lodhika, G.I.D.C., Metoda, Lodhika, Rajkot – 360 021, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.07.2009
Com. Reg. No.:	04-057456
Capital Investment / Paid-up Capital :	Rs.62.500 millions
CIN No.: [Company Identification No.]	U28112GJ2009PTC057456
PAN No.: [Permanent Account No.]	AACCH2331N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of tin cans used in packaging food products.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 212000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There are accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payment 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

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: B
Rating Explanation	Have high risk of default.
Date	May 15, 2014

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. Ankit
Designation :	Export Manager
Contact No.:	91-9725010969
Date :	10.06.2014

LOCATIONS

Registered Office/ Corporate Office :	Plot No.2621/22, Gate No.1, Road No. D-2, Lodhika, G.I.D.C., Metoda, Lodhika, Rajkot – 360 021, Gujarat, India
Tel. No.:	91-2827-287888/ 287889
Mobile No.:	91-9725010969 (Mr. Ankit)
Fax No.:	91-2827-287887
E-Mail :	vipulshahca@gmail.com info@hicanindia.com info@radhegroup.com audit@radhegroup.com
Website :	http://www.hicanindia.com
Factory :	Plot No.588, Manjusar Savli Road, Near Nirmal Canal Char Rasta, Manjusar, Taluka: Savli, Vadodara – 391 770, Gujarat, India
Tel. No.:	91-2667-262008/ 262009
Fax No.:	91-2667-262007

DIRECTORS

AS ON 25.09.2013

Name :

Dr. Shailesh Vallabhdas Makadia

Designation :

Director

Address :

125, Vrundavan Society, Kalawad Road, Rajkot – 360 005, Gujarat, India

Date of Birth/Age :

10.05.1969

Date of Appointment :

06.07.2009

DIN No.:

00593049

Election Commission Identity Card No.:

GJ/04/019/216826

PAN No.:

ACTPM5536C

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	U74999GJ1998PTC034646	RADHE TYRE RETREADING PRIVATE LIMITED	Director	11-09-1998	11-09-1998	08-12-2008	Active	NO
2	U27104GJ2003PTC042466	HI-CON TECHNO CAST PRIVATE LIMITED	Director	06-06-2003	06-06-2003	30-03-2014	Active	NO
3	U29219GJ2004PTC043909	RADHE RENEWABLE ENERGY DEVELOPMENT PRIVATE LIMITED	Director	05-04-2004	05-04-2004	30-03-2014	Active	NO
4	U92130GJ2005PLC047002	SHILBOND INFO-MEDIA LIMITED	Director	21-11-2005	21-11-2005	-	Active	NO
5	U51100GJ2005PTC047245	RADHE EXIM PRIVATE LIMITED	Director	09-12-2005	09-12-2005	31-03-2014	Active	NO
6	U35112GJ2006PLC049031	CORE MARINE-TECH LIMITED	Director	06-09-2006	06-09-2006	22-10-2010	Active	NO
7	U27109GJ2006PTC049342	HI-MAC CASTINGS PRIVATE LIMITED	Director	10-11-2006	10-11-2006	30-03-2014	Active	NO
8	U40106GJ2007PTC052013	RADHE-AUST ENERGY SYSTEMS PRIVATE LIMITED	Director	19-10-2007	19-10-2007	-	Strike off	NO
9	U35110GJ2008PLC053502	RADHE MARINE-TECH LIMITED	Director	04-04-2008	04-04-2008	-	Strike off	NO
10	U51109GJ2008PTC054553	I BOND MARKETING PRIVATE LIMITED	Director	23-07-2008	23-07-2008	-	Strike off	NO
11	U40108GJ2009PTC055881	RADHE GREEN ENERGY PLANTATION PRIVATE LIMITED	Director	12-01-2009	12-01-2009	-	Active	NO
12	U24239GJ2009PTC057349	HERBULES PHARMA PRIVATE LIMITED	Director	25-06-2009	25-06-2009	-	Active	NO
13	U65993GJ2009PTC057355	RADHE ASSOCIATES PRIVATE LIMITED	Director	26-06-2009	26-06-2009	30-03-2014	Active	NO
14	U28112GJ2009PTC057456	HI-CAN INDUSTRIES PRIVATE LIMITED	Director	06-07-2009	06-07-2009	-	Active	NO
15	U15490GJ2009PTC057790	VITAGREEN PRODUCTS PRIVATE LIMITED	Director	13-08-2009	13-08-2009	14-05-2014	Active	NO
16	U99999WB1996PTC126290	RNG FINLEASE PRIVATE LIMITED	Director	13-03-2010	13-03-2010	30-03-2014	Active	NO
17	U28999GJ2010PTC060622	HI GREEN TRANSMISSION PRIVATE LIMITED	Director	10-05-2010	10-05-2010	-	Strike off	NO
18	U37200GJ2011PTC066917	SHANTOL GREEN ENERGY (INDIA) PRIVATE LIMITED	Director	16-09-2011	16-09-2011	-	Active	NO

Name :

Mr. Jigar Dhruvkumar Dave

Designation :

Director

Address :

8-A, Radhkrishn Colony, Mangalpura Road, Anand – 388 001, Gujarat, India

Date of Birth/Age :

05.09.1968

Date of Appointment :

12.01.2010

DIN No.:

02891355

KEY EXECUTIVES

Name :	Mr. Ankit
Designation :	Export Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.09.2013

Names of Shareholders	No. of Shares
Shailesh Vallabhdas Makadia	845250
Nilesh Ratilal Makadia	5250
Radhe Renewable Energy Development Private Limited, India	1312500
Radhe Associates Private Limited, India	1732500
RNG Finlease Private Limited, India	2354500
Total	6250000

AS ON 25.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	86.39
Directors or relatives of directors	13.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of tin cans used in packaging food products.

Products :

Item Code No. (ITC Code)	73102110
Product Description	Tin Can
Item Code No. (ITC Code)	74040019
Product Description	Scrap
Item Code No. (ITC Code)	73089090
Product Description	HPHRU (Heat Pipe and Heat Recovery Unit)

PRODUCTION STATUS [AS ON 31.03.2013]:

Particulars	Unit	Actual Production
Cans	(in nos.)	13957383
Copper Wire Scrap	(in kgs.)	25266.5
Melting Scrap	(in kgs.)	118393.0

GENERAL INFORMATION

No. of Employees :

Information declined by the Management.

Bankers :

• IDBI Bank Limited, Manjalpur Branch, Manjalpur, Vadodara – 390 009, Gujarat, India
• Bank of India, Mid Corporate Branch, Para Bazar, Rajkot – 360 001, Gujarat, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks (Hypothecation of Plant, Machinery and Building)	26.583	40.105
Rupee term loans from others (Hypothecation of spark)	0.000	0.101
SHORT-TERM BORROWINGS
Working capital loans from banks (Hypothecation of stocks and book debts)	99.660	102.903
Total	126.243	143.109

Banking Relations :	--
Auditors :
Name :	Changela Arpitkumar Vrujlal Chartered Accountant
Address :	Changela Street, Near Post Office, Village Moviya, Taluka Gondal, Rajkot – 360 330, Gujarat, India
PAN No.:	ALTPC5538R
Associates :	Radhe Exim Private Limited, India (CIN No.: U51100GJ2005PTC047245) Radhe Renewable Energy Development Private Limited, India (CIN No.: U29219GJ2004PTC043909) RNG Finlease Private Limited, India (CIN No.: U99999WB1996PTC126290) Hi-Mac Castings Private Limited, India (CIN No.: U27109GJ2006PTC049342) Hi-Con Technocast Private Limited, India (CIN No.: U27104GJ2003PTC042466) Shantol Green Energy (India) Private Limited, India (CIN No.: U37200GJ2011PTC066917)

CAPITAL STRUCTURE

AS ON 25.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6250000	Equity Shares	Rs.10/- each	Rs.62.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6250000	Equity Shares	Rs.10/- each	Rs.62.500 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	62.500	62.500	62.500
(b) Reserves & Surplus	(9.616)	(9.742)	(17.135)
(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)	52.884	52.758	45.365
(3) Non-Current Liabilities
(a) Long-term borrowings	53.604	62.296	83.230
(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	0.000	0.000	0.000
Total Non-current Liabilities (3)	53.604	62.296	83.230
(4) Current Liabilities
(a) Short term borrowings	99.660	102.903	72.415
(b) Trade payables	19.643	33.587	15.053
(c) Other current liabilities	17.174	14.358	5.961
(d) Short-term provisions	1.675	0.208	0.352
Total Current Liabilities (4)	138.152	151.056	93.781
TOTAL	244.640	266.110	222.376
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	69.922	79.221	87.413
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	4.193	4.928	(0.480)
(d) Long-term Loan and Advances	5.302	8.891	21.500
(e) Other Non-current assets	7.970	11.582	6.693
Total Non-Current Assets	87.387	104.622	115.126
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	110.676	111.501	39.962
(c) Trade receivables	30.600	28.009	22.430
(d) Cash and cash equivalents	0.640	1.554	37.950
(e) Short-term loans and advances	5.700	0.000	0.982
(f) Other current assets	9.637	20.424	5.926
Total Current Assets	157.253	161.488	107.250
TOTAL	244.640	266.110	222.376

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	235.046	225.518	74.799
		Other Income
		TOTAL (A)	235.046	225.518	74.799
Less	EXPENSES
		Office Expenses	200.153	186.725	70.573
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	200.153	186.725	70.573
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		34.893	38.793	4.226
Less	INTEREST (D)		23.430	24.960	9.449
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.463	13.833	(5.223)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.399	11.747	11.432
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		1.064	2.086	(16.655)
Less	TAX (H)		0.938	(5.407)	0.480
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		0.126	7.493	(17.135)
	EARNINGS IN FOREIGN CURRENCY		USD 24990.00	Nil	NA
	Earnings / (Loss) Per Share (Rs.)		0.02	1.20	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.05	3.32	(22.91)
Return on Total Assets (PBT/Total Assets}	(%)	0.44	0.80	(7.47)
Return on Investment (ROI) (PBT/Networth)		0.02	0.04	(0.37)
Debt Equity Ratio (Total Debt/Networth)		2.90	3.13	3.43
Current Ratio (Current Asset/Current Liability)		1.14	1.07	1.14

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	62.500	62.500	62.500
Reserves & Surplus	(17.135)	(9.742)	(9.616)
Share Application money pending allotment	0.000	0.000	0.000
Net worth	45.365	52.758	52.884
Long-term borrowings	83.230	62.296	53.604
Short term borrowings	72.415	102.903	99.660
Total borrowings	155.645	165.199	153.264
Debt/Equity ratio	3.431	3.131	2.898

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Income	74.799	225.518	235.046
		201.499	4.225

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Income	74.799	225.518	235.046
Profit	(17.135)	7.493	0.126
	(22.91%)	3.32%	0.05%

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	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	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]	PAN of Proprietor/Partner/Director, if available	Yes
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10278246	04/02/2013 *	201,395,000.00	BANK OF INDIA LIMITED	RAJKOT MAIN BRANCH, PARA BAZAR, RAJKOT, GUJARAT  - 360001, INDIA	B69949428
2	10278245	04/02/2013 *	196,395,000.00	BANK OF INDIA LIMITED	RAJKOT MAIN BRANCH, PARA BAZAR, RAJKOT, GUJARAT  - 360001, INDIA	B68921279

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Loans and advances from directors	0.301	0.866
Loans and advances from others	26.720	21.224
Total	27.021	22.090

OVERVIEW OF THE COMPANY:

The Company is a Private Limited Company domiciled in India and is not listed on any Stock Exchange.

The Company has manufacturing facilities at Manjusar, District Vadodara. The Company is currently engaged in manufacturing of Tin Cans and sells primarily in India through its own marketing personnel and modern trade.

FUTURE OUTLOOKS AND PROSPECTUS:

During the current year, the Company has achieved the Revenue from Operation and Other Income of Rs.235.046 millions. The Company has earned profit of Rs.34.893 millions before depreciation and interest.

The Directors are trying their level best to improve performance of the Company in terms of Turnover and Profitability. The prospects of the Company’s business are bright and positive.

FIXED ASSETS:

· Land

· Buildings

· Plant and Equipment

· Office Equipment

· Furniture and Fixtures

· Vehicles

· Computer

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.59.26
UK Pound	1	Rs.99.63
Euro	1	Rs.80.59

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	RAS
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.