MIRA INFORM REPORT

Report Date :

13.05.2014

IDENTIFICATION DETAILS

Name :	EUREKA ELECTRODES AND WIRES PRIVATE LIMITED
Registered Office :	S-21-S22/ SEZ, Sipcot IGC, Perundurai-638052, Tamil Nadu, India
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.03.2009
Com. Reg. No.:	015069
Capital Investment / Paid-up Capital :	Rs. 16.500 Million
CIN No.: [Company Identification No.]	U31908TZ2009PTC015069
PAN No.: [Permanent Account No.]	AACCE16054R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Steel Welding Electrodes and Cuttings.
No. of Employees :	25 (Approximately) Ø Office-5 Ø Factory-20

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 74000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is established company having moderate track record. The rating reflects moderate financial risk profile marked by losses that company has incurred from its operation and low reserves of the company. However, trade relations are fair. Business is active. Payment terms are slow. 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.

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 :	R. Anandan
Designation :	Manager- International Trade.
Contact No.:	91-9443316676
Date :	12.04.2014

LOCATIONS

Registered Office/Factory :	S-21-S22/ SEZ, Sipcot IGC, Perundurai-638052, Tamil Nadu, India
Tel. No.:	91-4294-234313
Mobile No.:	91-9443316676 (Mr. Anandan)
Fax No.:	91-4294-234213
E-Mail :	elwindia@gmail.com info@eurekaelectrodes.com
Website :	http://www.elwi.in
Office:	1351 Sq. Ft
Factory :	21613 Sq.ft

DIRECTORS

As on: 30.09.2013

Name :

Mr. Chandrashekar K.

Designation :

Director

Address :

79- A Jaganatha Nagar, Civil Aero Drome Post, Coimbatore – 641014, Tamilnadu, India

Date of Birth/Age :

26.06.1962

Qualification :

Diploma in Mechanical Engineering and Post Diploma in Metallurgy.

Experience :

27 Years

Date of Appointment :

13.03.2009

DIN No.:

00390974

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	U02520TZ1989PTC003064	EUREKA SYSTEMS AND ELECTRODES PRIVATE LIMITED	Managing director	23-10-89	23-10-89	-	Active	NO
2	U21012TZ2005PTC012155	TRIYAMBHAVA NETWORK PRIVATE LIMITED	Director	16-09-05	16-09-05	-	Active	NO
3	U31908TZ2009PTC015069	EUREKA ELECTRODES AND WIRES PRIVATE LIMITED	Director	13-03-09	13-03-09	-	Active	NO

Name :

Mr. S. Ganesan

Designation :

Director

Address :

160, K.P.R. Layout, Singanallur, Coimbatore – 641005, Tamilnadu, India

Date of Birth/Age :

11.03.1958

Qualification :

B.E.Mechanical

Experience :

27 Years

Date of Appointment :

13.03.2009

DIN No.:

00420188

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
1	U02520TZ1989PTC003064	EUREKA SYSTEMS AND ELECTRODES PRIVATE LIMITED	Whole-time director	01-01-10	23-10-89	-	Active
2	U31908TZ2009PTC015069	EUREKA ELECTRODES AND WIRES PRIVATE LIMITED	Director	13-03-09	13-03-09	-	Active

Name :

Mr. K. Kuppusamy

Designation :

Director

Address :

9-1, Chinnadankoil, Near Water Pumping Station, Karur - 639001, Tamilnadu, India

Date of Birth/Age :

13.09.1958

Qualification :

Graduate

Experience :

32 Years

Date of Appointment :

13.03.2009

DIN No.:

00420109

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	U02520TZ1989PTC003064	EUREKA SYSTEMS AND ELECTRODES PRIVATE LIMITED	Director	16-10-95	16-10-95	-	Active	NO
2	U31908TZ2009PTC015069	EUREKA ELECTRODES AND WIRES PRIVATE LIMITED	Director	13-03-09	13-03-09	-	Active	NO

Name :

Mr. Karupannan Subramanian

Designation :

Director

Address :

2/92, Mahatma Gandhi Road, Bharathi Nagar, Karur – 639002, Tamilnadu, India

Date of Birth/Age :

03.06.1956

Qualification :

Graduate

Experience :

32 Years

Date of Appointment :

13.03.2009

DIN No.:

00050477

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	U02520TZ1989PTC003064	EUREKA SYSTEMS AND ELECTRODES PRIVATE LIMITED	Director	16-10-95	16-10-95	-	Active	NO
2	U65191TN1997PLC038258	ASHOK FINANCE (KARUR) LIMITED	Director	26-05-97	26-05-97	-	Active	NO
3	U72200TZ2003PTC010868	CAP DIGISOFT SOLUTIONS PRIVATE LIMITED	Additional director	08-12-08	08-12-08	25-06-12	Active	NO
4	U31908TZ2009PTC015069	EUREKA ELECTRODES AND WIRES PRIVATE LIMITED	Director	13-03-09	13-03-09	-	Active	NO
5	U51900TN2009PTC071203	R.K.EXPORTS (KARUR) PRIVATE LIMITED	Managing director	01-05-09	01-04-09	-	Active	NO
6	U40102TN2012PTC087845	R K WIND FARMS ( KARUR) PRIVATE LIMITED	Director	28-09-12	28-09-12	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Anandan
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
K.Chandrashekar	490380
S.Ganesan	146520
S. Ramakrishnan	145530
K.Kuppusamy	242880
M. Rajagopal	115170
S. Jothi	169950
K. Subramnian	339570
Total	1650000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Steel Welding Electrodes and Cuttings.
Products :	Ø Welding and Cutting Consumables Ø Raw Materials Ø Plant and Machinery Ø Turnkey projects Ø Wire Machinery
Brand Names :	Welding Electrodes
Agencies Held :	Ø Indian Ø Foreign
Exports :
Products :	Welding Electrodes
Countries :	Ø USA Ø Haiti Ø Guyana Ø Angola Ø Algeria Ø Nigeria
Imports :
Products :	Rutile
Countries :	Ø Australia Ø Vietnam
Terms :
Selling :	LC and Others
Purchasing :	LC and Credit

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Welding Electrodes	1520 MT	473 MT

GENERAL INFORMATION

Customers :

Wholesalers and OEM’s

No. of Employees :

25 (Approximately)

Ø Office-5

Ø Factory-20

Bankers :

Corporation Bank, Singanallur Branch, 349-350 Trichy Road, Coimbatore - 641005, Tamilnadu, India

Facilities:

Ø CC-CUM-PCL: 60.00 Lacs

Ø FDBN : 30.00 Lacs

Ø Term Loan : 78.09 Lacs

Ø Import L/C : 30.00 Lacs

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Term loan from nationalised bank [Secured by the 1^st charge on the Fixed Assets and 2^nd Charge on the Current Assets of the Company on paripassu Basis]	8.679	10.419
SHORT TERM BORROWINGS
Cash credit account with bank	5.522	5.983
Total	14.201	16.402
Note: Amounting to Rs.55.21 Lacs [Rs.55.21 lacs] Availed from Corporation Bank ,Singanallur, Coimbatore is secured by way of Hypothecation of Finished Goods, Raw Materials, Stock in Process, Stores, Spares and Book Debts of the of the Company and the Fixed Assets of the company. Two Directors of the company have given personal guarantee for the loan

Banking Relations :	---
Auditors :
Name :	Mr. P.Mahendran Chartered Accountant
Address :	B,304, Raheja Centre, Avinashi Road, Coimbatore-641018
Tel. No.:	91-422-2244337
E-Mail :	pm_fca@yahoo.com
PAN No.:	ACSPM7162R
Sister Concern:	Eureka Systems and Electrodes Private limited Address: 11/15 A, Selvarajapuram, Chinthhamanipudur, Comimbatore103. Line of Business: Manufacturing and selling of welding electrodes- Domestic

CAPITAL STRUCTURE

As on: 30.09.20113

Authorised Capital :

No. of Shares	Type	Value	Amount
18,50,000	Equity Shares	Rs.10/- each	Rs. 18.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16,50,000	Equity Shares	Rs.10/- each	Rs. 16.500 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	16.500	16.500
(b) Reserves & Surplus	2.051	2.397
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	18.551	18.897
(3) Non-Current Liabilities
(a) long-term borrowings	9.498	10.679
(b) Deferred tax liabilities (Net)	1.682	1.198
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	11.180	11.877
(4) Current Liabilities
(a) Short term borrowings	5.522	5.983
(b) Trade payables	7.370	3.165
(c) Other current liabilities	3.556	4.510
(d) Short-term provisions	0.155	0.136
Total Current Liabilities (4)	16.603	13.794
TOTAL	46.334	44.568
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	30.880	31.375
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.131	0.178
(e) Other Non-current assets	0.166	0.166
Total Non-Current Assets	31.177	31.719
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	10.171	9.458
(c) Trade receivables	3.563	1.405
(d) Cash and cash equivalents	0.379	0.031
(e) Short-term loans and advances	0.926	1.955
(f) Other current assets	0.118	0.000
Total Current Assets	15.157	12.849
TOTAL	46.334	44.568

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		14.000
2] Share Application Money		0.000
3] Reserves & Surplus		3.322
4] (Accumulated Losses)		0.000
NETWORTH		17.322
LOAN FUNDS
1] Secured Loans		15.436
2] Unsecured Loans		0.000
TOTAL BORROWING		15.436
DEFERRED TAX LIABILITIES		0.000
TOTAL		32.758
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.382
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.395
	Sundry Debtors	1.163
	Cash & Bank Balances	0.052
	Other Current Assets	0.000
	Loans & Advances	1.464
Total Current Assets		9.074
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.698
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		7.698
Net Current Assets		1.376
MISCELLANEOUS EXPENSES		0.000
TOTAL		32.758

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	33.938	26.538	23.742
		Other Income	0.239	0.121	NA
		TOTAL (A)	34.177	26.659	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		Total (B)	30.423	22.646	17.705
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.754	4.013	6.037
Less	FINANCIAL EXPENSES (D)		2.329	2.640	1.322
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.425	1.373	4.715
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.286	1.264	1.206
	PROFIT BEFORE TAX (E-F) (G)		0.139	0.109	3.509
Less	TAX (H)		0.485	1.221	0
	PROFIT AFTER TAX (G-H) (I)		(0.346)	(1.112)	3.509
	Earnings Per Share (Rs.)		0.20	0.05	2.5

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	-1.01	-4.17	NA
Net Profit Margin (PBT/Sales)	(%)	0.41	0.41	14.78
Return on Total Assets (PBT/Total Assets}	(%)	0.30	0.24	8.67
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.20
Debt Equity Ratio (Total Debt /Networth)		0.81	0.88	0.89
Current Ratio (Current Asset/Current Liability)		0.91	0.93	1.18

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	16.500	16.500
Reserves & Surplus	2.397	2.051
Net worth	18.897	18.551
long-term borrowings	10.679	9.498
Short term borrowings	5.983	5.522
Total borrowings	16.662	15.020
Debt/Equity ratio	0.882	0.810

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	23.742	26.538	33.938
		11.777	27.885

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	23.742	26.538	33.938
Profit	3.509	(1.112)	(0.346)
	14.78%	-4.19%	-1.02%

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	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10212800	01/11/2013 *	16,809,000.00	CORPORATION BANK	349- 350 TRICHY ROAD, SINGANALLUR BRANCH, COIMBAT  ORE, Tamil Nadu - 641005, INDIA	B92321363

* Date of charge modification

UNSECURED LOAN (Rs. In Million)

	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Term loan from directors, Shareholder and relatives	0.820	0.260
Total	0.820	0.260

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Electrical Machinery

· Laboratories Equipment

· Generators

· Computer

· Furniture and Fixtures

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.59.72
UK Pound	1	Rs.100.81
Euro	1	Rs.82.22

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	SBN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	Yes
--LITIGATION	YES/NO	No
--OTHER ADVERSE INFORMATION	YES/NO	No
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	No
--EXPORT ACTIVITIES	YES/NO	Yes
--AFFILIATION	YES/NO	Yes
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
DEFAULTER
--RBI	YES/NO	No
--EPF	YES/NO	No
TOTAL		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.