MIRA INFORM REPORT

Report Date :

19.06.2014

IDENTIFICATION DETAILS

Name :	RIMA TRANSFORMERS AND CONDUCTORS PRIVATE LIMITED (w.e.f. 26.09.1997)

Formerly Known As :	RIMA CONDUCTORS PRIVATE LIMITED

Registered Office :	18-D, II Phase Peenya Industrial Area, Bangalore – 560058, Karnataka

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	02.01.1986

Com. Reg. No.:	08-007385

Capital Investment / Paid-up Capital :	Rs.5.530 Millions

CIN No.: [Company Identification No.]	U27203KA1986PTC007385

TAN No.: [Tax Deduction & Collection Account No.]	BLRR03453C

PAN No.: [Permanent Account No.]	AAACR7427F

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of Copper Conductors and Electric Transformers.

No. of Employees :	100 (Approximately)

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. There seems some dip in the turnover, the company has also incurred a loss during financial year 2013. 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

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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limits “B”
Rating Explanation	High risk of default
Date	June 2013

Rating Agency Name	ICRA
Rating	Non Fund Based Limits “A4”
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	June 2013

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. Alphonso
Designation :	Accounts Executive
Contact No.:	91-80-28397140
Date :	17.06.2014

LOCATIONS

Registered Office / Factory 1 :	18-D, II Phase Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-28397140
Fax No.:	Not Available
E-Mail :	alphonso@thdeltagroup.net
Website :	http://www.thedltagroup.net
Location :	Owned
Locality :	Industrial

Factory 2 :	R-330, T. T. C., MIDC Industrial Area, Behind IPCL, Rable, Thane Belapur Road, P O Ghansoli, Navi Mumbai – 400701, Maharashtra, India
Tel. No.:	91-22-27692558 / 27691168
Fax No.:	91-22-27692780

DIRECTORS

As on: 28.09.2013

Name :

Mr. Diwakar Mahabala Shetty

Designation :

Chairman and Managing Director

Address :

701, Wood Stock, JP Road, Versova, Andheri West, Mumbai-400061, Maharashtra, India.

Date of Birth/Age :

02.10.1943

Date of Appointment :

02.01.1986

DIN No.:

01005792

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	U27203MH1981PTC024559	DELTA TRANS CONDUCTORS PRIVATE LIMITED	Managing Director	05/06/1981	05/06/1981	-	Active	NO
2	U27203KA1986PTC007385	RIMA TRANSFORMERS AND CONDUCTORS PRIVATE LIMITED	Managing Director	16/10/2009	02/01/1986	-	Active	NO
3	U32109MH1984PTC032329	SHERATRON CONDUCTORS PRIVATE LIMITED	Director	01/06/1989	01/06/1989	-	Active	NO

Name :

Mr. Ritesh Diwakar Shetty

Designation :

Managing Director

Address :

701, Wood Stock, JP Road, Versova, Andheri West, Mumbai-400061, Maharashtra, India.

Date of Birth/Age :

31.12.1972

Date of Appointment :

12.01.1993

DIN No.:

00866187

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	U27203MH1981PTC024559	DELTA TRANS CONDUCTORS PRIVATE LIMITED	Director	01/04/1992	01/04/1992	-	Active	NO
2	U27203KA1986PTC007385	RIMA TRANSFORMERS AND CONDUCTORS PRIVATE LIMITED	Managing Director	16/10/2009	12/01/1993	-	Active	NO

Name :

Ms. Rima Diwakar Shetty

Designation :

Whole-Time Director

Address :

Diwarekha No. 9, 2^nd B Main Road, Kempannalay Out Gutiahalli, Bangalore-560020, Karnataka, India.

Date of Birth/Age :

25.01.1979

Date of Appointment :

31.03.1997

DIN No.:

00882307

Name :

Mrs. Rekha Diwakar Shetty

Designation :

Whole-Time Director

Address :

701, Wood Stock, JP Road, Versova, Andheri West, Mumbai-400061, Maharashtra, India.

Date of Birth/Age :

02.01.1950

Date of Appointment :

02.01.1986

DIN No.:

01020171

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	U27203MH1981PTC024559	DELTA TRANS CONDUCTORS PRIVATE LIMITED	Director	05/06/1981	05/06/1981	-	Active	NO
2	U27203KA1986PTC007385	RIMA TRANSFORMERS AND CONDUCTORS PRIVATE LIMITED	Whole-Time Director	02/01/1986	02/01/1986	-	Active	NO
3	U32109MH1984PTC032329	SHERATRON CONDUCTORS PRIVATE LIMITED	Director	01/06/1989	01/06/1989	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Alphonso
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2013

Names of Shareholders	No. of Shares	%age
Diwakar Mahabala Shetty	20947	37.88
Rekha Diwakar Shetty	10461	18.92
Ritesh Diwakar Shetty	6428	11.62
Rima Diwakar Shetty	17464	31.58

Total	55300	100.00

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2013

Category		Percentage

Directors or relatives of directors		100.00

Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Copper Conductors and Electric Transformers.

Products :

Product Description	Item Code
Paper covered copper aluminum strips, wires copper and aluminum bars flats profiles etc.	8544.11
Power and distribution transformers	8504.22

Exports :

Products :

Finished Goods

Countries :

Bangladesh
Sri Lanka
Dubai

Imports :

Products :

Raw Materials

Countries :

Sweden
Germany

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

Canara Bank, SME Branch, 473D, 13^th Cross, II Stage, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Long Term Maturities of Finance Lease Obligations	1.647	3.171
Term Loan from Bank	44.994	47.100
Installments of Term Loan Payable within Year	(4.738)	(4.626)

Short Term Borrowings
Working Capital Loan from Bank (Cash credit from bank is primarily secured by hypothecation of inventories, books debts and collateral security by way of hypothecation of existing plant and machinery, land and building and other fixed assets of the company. It is additionally secured by two immovable property by way equitable mortgage of title deeds to the directors and also by the personal guarantee of all the directors)	93.676	79.817

Total	135.579	125.462
Long Term Borrowings Notes: A) Term loans from Banks – Secured includes: i) From Indusind-Rs.15.232 Millions is outstanding as on 31.03.2013, is secured by mortgage of immoveable property being Residential Property belonging to the company, with carrying an interest rate @ 13.25% p.a and is repayable in balance 100 equal monthly installments of Rs.0.246 Million. Also secured by personal guarantee of directors of the company. ii) From HDFC Bank Limited-Rs.14.323 Millions is outstanding as on 31.03.2013, is secured by mortgage of immoveable property being Residential Property belonging to the company, with carrying a floating rate of interest at interest band between 12.50 % to 13% p.a and is repayable in balance 106 equal monthly installments of Rs.0.228 Million. Also secured by personal guarantee of directors of the company. iii) From HDFC Bank Limited-Rs.15.438 Millions with carrying an interest rate @ 12.20% p.a and is repayable in balance 104 equal monthly installments of Rs.0.241 Million, mortgaged on the securities belonging to the directors. iv) Long term maturities of finance leases are secured by hypothecation of vehicles taken on lease, the details of the leans are given below:- a) Loan from HDFC Bank Limited, outstanding principal amount as on 31.03.2013 is Rs.1.628 Millions, repayable in balance 12 EMIs, carrying interest rate of 11.51% p.a. b) Loan from HDFC Bank Limited, outstanding principal amount as on 31.03.2013 is Rs.0.019 Million, repayable in balance 3 EMIs, carrying interest rate of 11.04% p.a. B) Term loans from others parties – Secured includes: From LIC – Rs.4.651 Millions is secured by insurance policy with a carrying rate of interest at 9.00% p.a.

Banking Relations :

Auditors :

Name :

Ishwar and Gopal

Chartered Accountants

Address :

Sri Vinayak Building, 21/3, T.S.P. Road, Kalasipalyam, Bangalore – 560002, Karnataka, India

Tel. No.:

91-80-26701694 / 26700009

Fax No.:

91-80-26706317

E-Mail :

gopal@gkcas.com

keshav@gkcas.com

PAN No.:

AAAFT2474E

Associates Concerns :

Delta Transconductors Private Limited, Mumbai, Maharashtra, India
Delta Copper FZE, Sharjah, Dubai, UAE
Sheratron Electronics Private Limited, Mumbai, Maharashtra, India
Kalyani Logistics

CAPITAL STRUCTURE

As on: 28.09.2013

Authorised Capital:

No. of Shares	Type	Value	Amount

75000	Equity Shares	Rs.100/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount

55300	Equity Shares	Rs.100/- each	Rs.5.530 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	5.530	5.530	5.530
(b) Reserves & Surplus	48.045	59.773	58.890
(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)	53.575	65.303	64.420

(3) Non-Current Liabilities
(a) long-term borrowings	46.554	50.296	18.909
(b) Deferred tax liabilities (Net)	0.000	5.199	5.613
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.028	2.007	1.320
Total Non-current Liabilities (3)	48.582	57.502	25.842

(4) Current Liabilities
(a) Short term borrowings	93.676	79.817	78.077
(b) Trade payables	93.503	154.216	106.878
(c) Other current liabilities	15.013	17.019	27.506
(d) Short-term provisions	1.394	0.206	11.094
Total Current Liabilities (4)	203.586	251.258	223.555

TOTAL	305.743	374.063	313.817

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	48.010	79.191	83.350
(ii) Intangible Assets	0.176	0.298	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	6.703	35.785	35.786
(c) Deferred tax assets (net)	8.546	0.000	0.000
(d) Long-term Loan and Advances	1.432	2.621	4.086
(e) Other Non-current assets	1.600	3.970	6.340
Total Non-Current Assets	66.467	121.865	129.562

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	106.277	98.776	77.158
(c) Trade receivables	85.129	105.733	60.525
(d) Cash and cash equivalents	22.706	29.168	19.791
(e) Short-term loans and advances	22.794	16.151	3.130
(f) Other current assets	2.370	2.370	23.651
Total Current Assets	239.276	252.198	184.255

TOTAL	305.743	374.063	313.817

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Gross Receipt	249.000	360.200	412.000
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA

Less	EXPENSES
		TOTAL	NA	NA	NA

	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)		9.222	26.526	24.815

	FINANCIAL EXPENSES		30.312	20.580	14.940

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(21.090)	5.946	9.875

	DEPRECIATION/ AMORTISATION		4.383	4.713	3.867

	PROFIT / (LOSS) BEFORE TAX		(25.473)	1.232	6.017

	TAX		(13.744)	0.349	1.856

	PROFIT / (LOSS) AFTER TAX		(11.729)	0.882	4.151

	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		45.001	44.127	41.227

	BALANCE CARRIED TO THE B/S		33.272	45.001	44.128

	EARNINGS IN FOREIGN CURRENCY
	Export of Goods calculated on FOB Basis		31.751	21.515	78.403
	Consultancy Services		3.269	2.881	0.000
	TOTAL EARNINGS		35.020	24.396	78.403

	IMPORTS
		Raw Materials	4.485	3.604	2.882

	Earnings / (Loss) Per Share (Rs.)		(212.10)	15.95	75.06

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	(8.77)	0.36	2.16

Return on Investment (ROI) (PBT/Networth)		(0.48)	0.02	0.09

Debt Equity Ratio (Total Debt/Networth)		2.62	1.99	1.51

Current Ratio (Current Asset/Current Liability)		1.18	1.00	0.82

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	5.530	5.530	5.530
Reserves & Surplus	58.890	59.773	48.045
Net worth	64.420	65.303	53.575

long-term borrowings	18.909	50.296	46.554
Short term borrowings	78.077	79.817	93.676
Total borrowings	96.986	130.113	140.230
Debt/Equity ratio	1.506	1.992	2.617

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)
Gross Receipt	412.000	360.200	249.000
		-12.573	-30.872

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Gross Receipt	412.000	360.200	249.000
Profit	4.151	0.882	(11.729)
	1.01%	0.24%	(4.71%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CORPORATE INFORMATION

Subject is incorporated on 2nd January 1986 in the state of Karnataka, India. The Company is engaged in the manufacture and sale or Transformers and Conductors.

OPERATIONAL REVIEW

The Company's Gross Receipts net of Central Excise Duty amounted to Rs.249.000 Millions as against Rs.360.200 Millions in the previous year. The Company's net profit / (Loss) after tax for the year is Rs.(11.729) Millions as compared to Rs.0.882 Millions in the previous year. The loss incurred during the year is mainly on account of reduction in sales of Transformer Division, on account of sluggish market conditions overall resulted in higher Finance cost, as well as certain orders being deferred Debt Recovery from Buyers on account of sluggish market conditions has resulted in higher Finance cost. Due to this certain orders were deferred resulting in lower turnover.

UNSECURED LOAN

(Rs. In Millions)

	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Term Loan from Other Parties	4.651	4.651

Total	4.651	4.651

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10311404	04/02/2014 *	205,000,000.00	Canara bank	SME BRANCH, 473D, 13TH CROSS, II STAGE, PEENYA INDUSTRIAL AREA, BANGALORE - 560058, KARNATAKA, INDIA	B95705109
2	10293249	29/06/2011	16,800,000.00	INDUSIND BANK LIMITED	NEW NO. 34, OLD NO. 115 AND 116, G. N. CHETTY ROAD, OPPOSITE HOTEL PENINSULA, T. NAGAR, CHENNAI - 600017, TAMILNADU, INDIA	B15370596

* Date of charge modification

FIXED ASSETS

Factory Building
Office Building
Plant and Machinery
Furniture and Fixture
Electrical Installations
Testing Equipments
Office Equipments
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 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.60.12
UK Pound	1	Rs.102.00
Euro	1	Rs.81.43

INFORMATION DETAILS

Information Gathered by :	DIV

Analysis Done by :	PLK

Report Prepared by :	VNK

SCORE & RATING EXPLANATIONS

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