MIRA INFORM REPORT

Report Date :

25.06.2014

IDENTIFICATION DETAILS

Name :	FESTO CONTROLS PRIVATE LIMITED
Registered Office :	No.237B, Bommasandra Industrial Area, Anekal Taluk, Bangalore – 560099, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	03.02.1986
Com. Reg. No.:	08-007449
Capital Investment / Paid-up Capital :	Rs. 30.200 Millions
CIN No.: [Company Identification No.]	U29220KA1986PTC007449
PAN No.: [Permanent Account No.]	AAACF2940F
Legal Form :	Private Limited Liability Company
Line of Business :	Designing, Development and Manufacturing of Pneumatic Products and PU Tubing.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 11800000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Fundamental of the company is decent. Financial position of the company is strong and healthy. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal for business dealings at usual trade terms and conditions.

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.

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 :	Ms. Rajshree
Designation :	Accounts Department
Contact No.:	91-80-22240994
Date :	24.06.2014

LOCATIONS

Registered Office :	No.237B, Bommasandra Industrial Area, Anekal Taluk, Bangalore – 560099, Karnataka, India
Tel. No.:	91-80-22894100/ 22240994
Fax No.:	91-80-27832058
E-Mail :	info_in@festo.com sales_in@in.festo.com
Website :	http://www.festo.com
Branch Offices :	Located at: · Ahmedabad · Aurangabad · Baroda · Calcutta · Coimbatore · Delhi · Kolhapur · Ludhiana · Madras · Mumbai · Nashik · Pune · Secunderabad

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Rashmikant Joshi

Designation :

Managing director

Address :

Festo Plot, Golden Coin City, Audapura Village, Attibele Hobli, Bangalore – 560100, Karnataka, India

Date of Birth/Age :

26.08.1963

Date of Appointment :

01.04.2014

PAN No.:

AANPJ6389A

DIN No.:

00014341

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	Company/ LLP Status	Defaulting status
1	U29220KA1986PTC007449	FESTO CONTROLS PRIVATE LIMITED	Managing director	01/04/2014	01/04/2002	Active	NO
2	U72900HR2009PTC039161	FERRANTI COMPUTER SYSTEMS INDIA PRIVATE LIMITED	Director	30/09/2011	03/11/2010	Active	NO

Name :

Mr. Piyushkumar Shah

Designation :

Managing director

Address :

Festo Plot, Golden Coin City, Audapura Village, Attibele Hobli, Bangalore – 560100, Karnataka, India

Date of Birth/Age :

25.07.1963

Date of Appointment :

01.04.2014

PAN No.:

ABWPS2915B

DIN No.:

00014361

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	Company/ LLP Status	Defaulting status
1	U29220KA1986PTC007449	FESTO CONTROLS PRIVATE LIMITED	Managing director	01/04/2014	01/04/2002	Active	NO

Name :

Mr. Sudarsan Varadaraj

Designation :

Director

Address :

“Rasasayang” 227/1, Tea Estates, Race Course, Coimbatore – 641018, Tamilnadu, India

Date of Birth/Age :

22.01.1958

Date of Appointment :

16.04.2000

DIN No.:

00133533

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	U02511TZ1970PLC000611	ELGI RUBBER PRODUCTS LIMITED	Director	31/03/2008	21/04/1984	-	Amalgamated	NO
2	L02511TZ1981PLC010010	ELGI RUBBER COMPANY LIMITED	Managing director	12/03/1988	12/03/1988	-	Amalgamated	NO
3	L15314TN1961PLC004674	KLRF LIMITED	Director	05/10/1990	05/10/1990	-	Active	NO
4	U31200TZ1991PLC003193	GEO RENEWABLE POWER LIMITED	Director	21/03/1991	21/03/1991	-	Amalgamated	NO
5	U29253TZ1981PLC001104	ELGI ULTRA INDUSTRIES LIMITED	Director	18/08/1992	18/08/1992	-	Active	NO
6	L17111TZ1962PLC001200	SUPER SPINNING MILLS LIMITED	Director	13/03/1993	13/03/1993	-	Active	NO
7	L29120TZ1960PLC000351	ELGI EQUIPMENTS LIMITED	Director	18/11/1993	18/11/1993	-	Active	NO
8	U31200TZ1963PLC000487	ELGI ELECTRIC AND INDUSTRIES LIMITED	Director	15/07/1996	15/07/1996	17/09/2009	Active	NO
9	U72200TZ1996PLC009971	LRG TECHNOLOGIES LIMITED	Director	19/07/1996	19/07/1996	-	Active	NO
10	U51909TZ1997PTC007965	TYRE POINT PRIVATE LIMITED	Director	10/06/1997	10/06/1997	-	Active	NO
11	L02511TZ1998PLC008630	TREADSDIRECT LIMITED(AMALGAMATED	Managing director	01/04/2008	02/11/1998	-	Amalgamated	NO
12	U29220KA1986PTC007449	FESTO CONTROLS PRIVATE LIMITED	Director	16/04/2000	16/04/2000	-	Active	NO
13	L25119TZ2006PLC013144	ELGI RUBBER COMPANY LIMITED	Managing director	01/01/2011	16/10/2006	-	Active	NO
14	U26941TZ1990PTC002672	ACHUTHA VULCANISING CEMENT PRIVATE LIMITED	Director	28/09/2007	28/08/2007	-	Amalgamated	NO
15	U25111TZ2003PLC017268	TITAN TYRECARE PRODUCTS LIMITED	Director	30/09/2009	09/07/2009	-	Active	NO
16	U25114TZ2010PLC016201	TREADSDIRECT LIMITED	Managing director	01/01/2014	07/07/2010	-	Active	NO

Name :

Mr. Michael Molleken

Designation :

Director

Address :

Kaninchenberg 15 31787 Hameln Germany

Date of Birth/Age :

13.04.1959

Date of Appointment :

29.09.2010

DIN No.:

03137668

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	Company/ LLP Status	Defaulting status
1	U29220KA1986PTC007449	FESTO CONTROLS PRIVATE LIMITED	Director	29/09/2010	28/06/2010	Active	NO

KEY EXECUTIVES

Name :	Ms. Rajshree
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Festo AG, Germany	2750394
Festo Holding GmbH, Germany	1
Total	2750395

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Designing, Development and Manufacturing of Pneumatic Products and PU Tubing.

Products/ Services :

ITC Code No.	Product Descriptions
39172990	PU Tubing
84798999	Pnematics Cylinder

GENERAL INFORMATION

No. of Employees :	Not Divulged
Bankers :	Not Divulged

Banking Relations :	--
Auditors :
Name :	S Janardhan and Associates Chartered Accountants
Address :	Apartment No 103/106, Embassy Centre, No 11, Crescent Road, Bangalore – 560001, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AACFM2246C
Holding Company :	Festo AG, Germany
Fellow Subsidiary Company :	· Festo A.G and Company, Kg., Germany · Festo Automacao., Brazil · Festo China Limited · Festo Corporation, USA · Festo Didiatic Gmbh and Company · Festo Korea Company Limited · Festo Limited, " FESTO Thailand" · Festo Limited, Hong Kong · Festo Production Limited, China · Festo Production S.R. O, Ceska Lipa ("Festo Check") · Festo Pte Limited, Singapore · Festo Pty Limited ( " FESTO Australia") · Festo Sdn, Berhad, Malasiya · Polyvanced Gmbh

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,750,395	Equity Shares	Rs. 10/- each	Rs. 27.504 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,020,002	Equity Shares	Rs. 10/- each	Rs. 30.200 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	30.200	30.200	30.200
(b) Reserves & Surplus	2929.355	2567.834	2141.000
(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)	2959.555	2598.034	2171.200
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	15.570	0.000	9.209
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.008	6.060	1.062
Total Non-current Liabilities (3)	17.578	6.060	10.271
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	90.314	104.289	48.131
(c) Other current liabilities	128.165	96.700	112.232
(d) Short-term provisions	131.604	186.757	129.638
Total Current Liabilities (4)	350.083	387.746	290.001
TOTAL	3327.216	2991.840	2471.472
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	648.842	504.696	511.922
(ii) Intangible Assets	8.883	8.109	4.084
(iii) Capital work-in-progress	0.638	43.835	15.460
(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)	0.000	3.718	0.000
(d) Long-term Loan and Advances	14.106	68.526	38.276
(e) Other Non-current assets	40.819	21.608	439.345
Total Non-Current Assets	713.288	650.492	1009.087
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	589.646	518.635	456.804
(c) Trade receivables	529.589	494.970	529.602
(d) Cash and cash equivalents	1351.061	1263.049	428.606
(e) Short-term loans and advances	84.069	25.988	30.537
(f) Other current assets	59.563	38.706	16.836
Total Current Assets	2613.928	2341.348	1462.385
TOTAL	3327.216	2991.840	2471.472

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3547.000	3517.000	2946.000
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		606.331	683.699	556.531
Less/ Add	DEPRECIATION/ AMORTISATION		53.531	43.887	42.923
	PROFIT BEFORE TAX		552.800	639.812	513.608
Less	TAX		191.279	212.978	167.809
	PROFIT AFTER TAX		361.521	426.834	345.799
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2368.181	1941.347	1595.548
	BALANCE CARRIED TO THE B/S		2729.702	2368.181	1941.347
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	100.000	133.000	111.000
	Earnings Per Share (Rs.)		119.71	141.34	114.50

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	15.59	18.19	17.43
Return on Total Assets (PBT/Total Assets}	(%)	16.62	21.73	20.91
Return on Investment (ROI) (PBT/Networth)		0.19	0.25	0.24
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		7.47	6.04	5.04

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	30.200	30.200	30.200
Reserves & Surplus	2141.000	2567.834	2929.355
Net worth	2171.200	2598.034	2959.555
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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	2946.000	3517.000	3547.000
		19.382	0.853

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	2946.000	3517.000	3547.000
Profit	345.799	426.834	361.521
	11.74%	12.14%	10.19%

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	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	Yes
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 COMPANY

SALES

The Company has achieved a net sales turnover of Rs. 3547.000 millions for the year 2012-13, as against Rs. 3517.000 millions during the year 2011-12 and made a profit after tax of Rs.361.000 Millions for the year 2012-13 as against Rs.426.000 Millions during the previous year.

BUY BACK OF SHARES

During the current year in May 2013, the Company successfully completed the Buy Back of 269607 fully paid Equity Shares of Rs.10/- each at a price of Rs.2400/- per share. An aggregate amount of Rs.647.057 Millions was used for this purpose. Consequently the paid up capital has been reduced to Rs. 27.504 Millions.

CONTINGENT LIABILITIES:

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Claims against the Company not acknowledged as debts (a) Income tax matters	0.000	27.656

FIXED ASSETS:

· Land

· Buildings

· Factory building

· Plant and equipment

· Factory equipments

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Computer software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.11
UK Pound	1	Rs. 102.32
Euro	1	Rs. 81.75

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUM
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		58

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.