MIRA INFORM REPORT

Report Date :

19.06.2014

IDENTIFICATION DETAILS

Name :	VALUE POINT SYSTEMS PRIVATE LIMITED
Registered Office :	No 66, 4th Cross Kaveri Layout Tavarekere Main Road, Bangalore – 560029, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.04.1996
Com. Reg. No.:	08-020289
Capital Investment / Paid-up Capital :	Rs.2.255 Millions
CIN No.: [Company Identification No.]	U30007KA1996PTC020289
TAN No.: [Tax Deduction & Collection Account No.]	BLRV00753E
PAN No.: [Permanent Account No.]	AAACV4796R
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer of HP, DELL, CISCO, Fujitsu, Hitachi, EMC, NETT APP, Symantec, Microsoft, Kaseya, Oracle, Cyber roam, VMware, Citric, etc.
No. of Employees :	2400 (Approximately)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There is a dip in sales turnover of the company as compared to previous year. Rating also reflects intense competition from other player in it hardware industry and increasing external borrowing over previous year. However, trade relation are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: BB-
Rating Explanation	Inadequate credit quality and high credit risk.
Date	06.12.2013

Rating Agency Name	CARE
Rating	Short term bank facilities: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	06.12.2013

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. Chandra Kumar
Designation :	Business Manager
Contact No.:	91-9986098465
Date :	19.06.2014

Name :	Shashi Ranjan
Designation :	Business Manager
Contact No.:	91-9739047223
Date :	19.06.2014

LOCATIONS

Registered Office :	No 66, 4th Cross Kaveri Layout Tavarekere Main Road, Bangalore – 560029, Karnataka, India
Tel. No.:	91-80-66266000
Mobile No.:	91-9986098465 (Mr. Chandra Kumar) 91-9739047223 (Shashi Ranjan)
Fax No.:	91-80-66266001
E-Mail :	fms@valuepoint.co.in gbhat@valuepoint.in
Website :	www.valuepoint.in
Area :	10000 Sq ft
Branch Office :	Located At Chennai 91-44-42555531 Delhi 91-11-45089482 Hyderabad 91-40-66133131 Mangalore 91-44-42555532

DIRECTORS

As on 30.09.2013

Name :

Mr. Ramachandra Sridhar Shanbagh

Designation :

Whole-time director

Address :

No. 45, Pompashram, 2^nd Floor, 6^th Cross, Opposite SSLC Board, Malleshwaram, Bangalore – 560003, Karnataka, India

Date of Birth/Age :

02.03.1968

Qualification :

Bachelor of Engineering

Experience :

28 Years

Date of Appointment :

15.04.1996

DIN No.:

00048879

PAN No.:

ACIPS8546H

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	U30007KA1996PTC020289	VALUE POINT SYSTEMS PRIVATE LIMITED	Whole-time director	15/04/1996	15/04/1996	-	Active	NO
2	U72200KA2006PTC038809	VALUE POINT TECHNOLOGIES PRIVATE LIMITED	Director	22/03/2006	22/03/2006	-	Strike off	NO
3	U73100KA2006PTC039140	VALUEPOINT IT SERVICES PRIVATE LIMITED	Director	27/04/2006	27/04/2006	-	Strike off	NO
4	U72900KA2006PTC038982	VALUEPOINT CORP HOLDINGS PRIVATE LIMITED	Director	14/07/2006	14/07/2006	-	Active	NO
5	U72200KA2006PTC039958	VALUEPOINT KNOWLEDGEWORKS PRIVATE LIMITED	Director	14/07/2006	14/07/2006	-	Active	NO
6	U72200KA2012PTC064520	VALUEPOINT TECHSOL PRIVATE LIMITED	Director	22/06/2012	22/06/2012	-	Active	NO

Name :

Mr. Sampath Kumar H Ramaswamy Iyengar

Designation :

Whole-time director

Address :

No. 57, Flat No. T2, Santhrupthi Apartment, 6^th Main, 15^th Cross, Opposite SSLC Board, Malleshwaram, Bangalore – 560003, Karnataka, India

Date of Birth/Age :

16.06.1969

Qualification :

Bachelor of Engineering

Experience :

30 Years

Date of Appointment :

15.04.1996

DIN No.:

01922696

PAN No.:

AAFPI7675E

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	U30007KA1996PTC020289	VALUE POINT SYSTEMS PRIVATE LIMITED	Whole-time director	15/04/1996	15/04/1996	-	Active	NO
2	U72200KA2006PTC038809	VALUE POINT TECHNOLOGIES PRIVATE LIMITED	Director	22/03/2006	22/03/2006	-	Strike off	NO
3	U73100KA2006PTC039140	VALUEPOINT IT SERVICES PRIVATE LIMITED	Director	27/04/2006	27/04/2006	-	Strike off	NO
4	U72200KA2006PTC039958	VALUEPOINT KNOWLEDGEWORKS PRIVATE LIMITED	Director	14/07/2006	14/07/2006	-	Active	NO
5	U72900KA2006PTC038982	VALUEPOINT CORP HOLDINGS PRIVATE LIMITED	Director	14/07/2006	14/07/2006	-	Active	NO
6	U63040KA2010PTC053110	INNOVENTURE HOLIDAYS PRIVATE LIMITED	Director	01/04/2010	01/04/2010	01/04/2012	Active	NO
7	U72900KA2008PTC046966	THOUGHTNET TECHNOLOGIES (INDIA) PRIVATE LIMITED	Director	06/09/2010	06/09/2010	-	Active	NO
8	U72900KA2010PTC056299	TECHNOBIND SOLUTIONS PRIVATE LIMITED	Director	21/12/2010	21/12/2010	-	Active	NO
9	U72900MH2011PTC225092	ALLTIMEIT SOLUTIONS PRIVATE LIMITED	Director	09/04/2012	09/04/2012	-	Active	NO
10	U72200KA2012PTC064520	VALUEPOINT TECHSOL PRIVATE LIMITED	Director	22/06/2012	22/06/2012	-	Active	NO
11	AAC-3081	TUTORPOD LEARNING LLP	Body corporate as Designated Partner	20/05/2014	20/05/2014	-	Active	NO
12	AAC-3136	EDECOSYS SYSTEMS LLP	Designated Partner	21/05/2014	21/05/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Chandra Kumar
Designation :	Business Manager
Name :	Shashi Ranjan
Designation :	Business Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	%age
Ramachandra Sridhar Shanbagh	11275	50.00
Sampath Kumar H Ramaswamy Iyengar	11275	50.00
Total	22550	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Dealer of HP, DELL, CISCO, Fujitsu, Hitachi, EMC, NETT APP, Symantec, Microsoft, Kaseya, Oracle, Cyber roam, VMware, Citric, etc.
Terms :
Selling :	Credit (30 Days)
Purchasing :	Credit (30 Days)

GENERAL INFORMATION

Customers :

• Retailers
• End users

No. of Employees :

2400 (Approximately)

Bankers :

• Corporation Bank, South End Road, Mill Corner, Sheshadripuram P.O., Malleswaram, Bangalore - 560020, Karnataka, India
• ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015,
• Gujarat, India

Facilities :

Credit Limit: Rs.80.000 Millions

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks	18.800	0.000
Loans taken for fixed assets	0.625	0.718
Total	19.425	0.718

Banking Relations :	--
Auditors :
Name :	Walker, Chandiok and Company Chartered Accountants
Address :	Wings, First Floor, 16/1, Cambridge Road, Ulsoor, Bangalore - 560 008, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAASW4298R
Auditors :
Name :	BVC and Company Chartered Accountants
Address :	371, 1^st Floor, 8^th Main Sadashivnagar, Bangalore, Karnataka, India
Tel No.:	91-80-67589918
Subsidiary company:	Value Point Technologies Private Limited, India [U72200KA2006PTC038809]
Associate:	Thoughtnet Technologies (India) Private Limited, India [U72900KA2008PTC046966]
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Source Hub India Private Limited, India [U72900KA2004PTC033656] Valuepoint IT Services Private Limited, India [U73100KA2006PTC039140] Value point Knowledgeworks Private Limited, India [U72200KA2006PTC039958] Valuepoint Corp Holdings Private Limited, India [U72900KA2006PTC038982] Valuepoint Techsol Private Limited, India [U72200KA2012PTC064520] Wiseworks IT Valuepoint Global Ventures LLC AllTimeIT Solutions Private Limited, India [U72900KA2010PTC056299]

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22550	Equity Shares	Rs.100/- each	Rs. 2.255 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	2.255	2.255	2.255
(b) Reserves & Surplus	110.248	99.099	105.038
(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)	112.503	101.354	107.293
(3) Non-Current Liabilities
(a) long-term borrowings	19.425	0.718	0.000
(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	7.023	7.095	7.043
Total Non-current Liabilities (3)	26.448	7.813	7.043
(4) Current Liabilities
(a) Short term borrowings	88.282	87.011	56.785
(b) Trade payables	84.163	110.170	174.657
(c) Other current liabilities	22.907	20.062	45.399
(d) Short-term provisions	0.812	5.332	1.856
Total Current Liabilities (4)	196.164	222.575	278.697
TOTAL	335.115	331.742	393.033
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	47.221	14.257	7.623
(ii) Intangible Assets	1.157	1.400	0.366
(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	30.909	28.400	13.770
(c) Deferred tax assets (net)	13.035	12.358	14.286
(d) Long-term Loan and Advances	29.957	47.119	40.897
(e) Other Non-current assets	2.906	16.561	27.622
Total Non-Current Assets	125.185	120.095	104.564
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	17.962	40.812	38.902
(c) Trade receivables	166.293	146.329	224.039
(d) Cash and cash equivalents	12.221	10.120	5.631
(e) Short-term loans and advances	7.240	4.396	3.804
(f) Other current assets	6.214	9.990	16.093
Total Current Assets	209.930	211.647	288.469
TOTAL	335.115	331.742	393.033

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	943.789	1150.025	1198.221
	Other Income	5.087	22.438	41.013
	TOTAL (A)	948.876	1172.463	1239.234
Less	EXPENSES
	Purchases of Stock-in-Trade	693.185	958.753	1042.663
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	24.307	(2.050)	(12.012)
	Employees benefits expense	125.878	116.202	106.550
	Other expenses	41.935	48.182	3.056
	Prior period items	(0.493)	2.852	(14.998)
	TOTAL (B)	884.812	1123.939	1125.259
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	64.064	48.524	113.975
Less	FINANCIAL EXPENSES (D)	18.263	16.887	9.644
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	45.801	31.637	104.331
Less/ Add	DEPRECIATION/ AMORTISATION (F)	7.893	2.814	86.558
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	37.908	28.823	17.773
Less	TAX (I)	20.470	11.208	12.043
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	17.438	17.615	5.730
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	NA	88.592	104.875
Less	APPROPRIATIONS
	Transfer to General Reserve	NA	NA	5.000
	Dividend	NA	NA	14.500
	Tax on Dividend	NA	NA	2.513
	Balance Carried to the B/S	NA	NA	88.592
	Earnings / (Loss) Per Share (Rs.)	773.33	781.17	254.14

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.84	1.50	0.46
Net Profit Margin (PBT/Sales)	(%)	4.02	2.51	1.48
Return on Total Assets (PBT/Total Assets}	(%)	13.02	9.91	4.87
Return on Investment (ROI) (PBT/Networth)		0.34	0.28	0.17
Debt Equity Ratio (Total Debt /Networth)		0.96	0.87	0.53
Current Ratio (Current Asset/Current Liability)		1.07	0.95	1.04

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	2.255	2.255	2.255
Reserves & Surplus	105.038	99.099	110.248
Net worth	107.293	101.354	112.503
long-term borrowings	0.000	0.718	19.425
Short term borrowings	56.785	87.011	88.282
Total borrowings	56.785	87.729	107.707
Debt/Equity ratio	0.529	0.866	0.957

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	1198.221	1150.025	943.789
		(4.022)	(17.933)

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	1198.221	1150.025	943.789
Profit	5.730	17.615	17.438
	0.48%	1.53%	1.85%

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)	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	Yes

CORPORATE INFORMATION

Subject was founded in 1991 under the provisions of the Companies Act, 1956. The Company is a technology solutions provider with its core business aligned to enable clients to setup and run businesses and critical applications through provisioning of technology infrastructure and maintenance services. The Company provides the aforesaid services through strategic alliances with partners such as Hewlett Packard, Microsoft, Sun Microsystems and CISCO.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Short-term borrowings
Working capital loans from banks	88.282	87.011
Total	88.282	87.011

FIXED ASSETS

Tangible assets

• Land
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments
• Other equipments
• Leasehold improvements

Intangible assets

• 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.60.12
UK Pound	1	Rs.102.00
Euro	1	Rs.81.43

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	KVT

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	4
--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	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		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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.