MIRA INFORM REPORT

Report Date :

26.05.2014

IDENTIFICATION DETAILS

Name :	KAM-AVIDA ENVIRO ENGINEERS PRIVATE LIMITED
Registered Office :	Plot No. 2, Survey No. 255/1, Hinjewadi, Taluka : Mulshi, District, Pune- 411057, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	19.04.1994
Com. Reg. No.:	11-077795
Capital Investment / Paid-up Capital :	Rs.18.340 Millions
CIN No.: [Company Identification No.]	U29299MH1994PTC077795
TAN No.: [Tax Deduction & Collection Account No.]	PNEK05831A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Supplier and Trader of Engineering Goods, Drain Cleaning Machines, Cleaning Equipments, etc.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 1955000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred loss from its operational activities during the financial year 2013. However, trade relations are fair. Business is active. Payment terms are slow. 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

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.24532 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 :	Mr. Nilesh
Designation :	Accountant
Contact No.:	91-20-66756300
Date :	09.05.2014

LOCATIONS

Registered Office/ Factory :	Plot No. 2, Survey No. 255/1, Hinjewadi, Taluka : Mulshi, District, Pune- 411057, Maharashtra, India
Tel. No.:	91-20-66756300
Fax No.:	91-20-66756400
E-Mail :	accounts1@kam-avida.com

DIRECTORS

As on: 27.09.2013

Name :

Mr. Manohar Krishna

Designation :

Managing Director

Address :

3, Gandhali Damle Path, Off Law College Road, Pune – 411004, Maharashtra, India

Date of Birth/Age :

30.10.1959

Date of Appointment :

19.04.1994

DIN No.:

00919073

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	U51909PN1993PTC070814	Kam Marketing Private Limited	Director	16/02/1993	16/02/1993	01/07/2008	Active	NO
2	U29299MH1994PTC077795	Kam-Avida Enviro Engineers Private Limited	Managing director	19/04/1994	19/04/1994	-	Active	NO

Name :

Mr. Mukund Krishnaji Kanade

Designation :

Director

Address :

Flat No. 01, Mont Vert Solitaire, S. No. 260/1, Baner Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

05.07.1936

Date of Appointment :

06.10.2001

DIN No.:

00649609

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	U33112PN2000PLC018531	Nasan Medical Systems Limited	Director	02-04-2001	02-04-2001	01-04-2012	Active	NO
2	U29299MH1994PTC077795	Kam-Avida Enviro Engineers Private Limited	Director	06-10-2001	06-10-2001	-	Active	NO
3	U31200PN1992PTC016377	Cotmac Electronics Private Limited	Director	19-04-2006	19-04-2006	01-11-2008	Active	NO

Name :

Mr. Parthasarathy VenkatShankar

Designation :

Director

Address :

No.3C, Nithyashree Apartments, 51 Chamirs Road, R. A. Puram, Chennai-600028, Tamilnadu, India

Date of Birth/Age :

27.04.1966

Date of Appointment :

27.09.2011

DIN No.:

02223282

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	U55101TN1994PTC027509		Oriental Cuisines Private Limited	Director	15/04/2008	15/04/2008	24/04/2013	Active		NO
2	U32109TN2007PTC062014		Indus Mobile Distribution Private Limited	Director	28/09/2009	18/06/2008	-	Active		NO
3	U29299MH1994PTC077795		Kam-Avida Enviro Engineers Private Limited	Director	27/09/2011	01/09/2008	-	Active		NO
4	U51909AP2000PTC034653		Balan Natural Food Private Limited	Director	09/10/2008	09/10/2008	15/12/2011	Active		NO
5	U72200KA2002PTC030917		Tele Dna Communications Private Limited	Director	30/11/2009	30/10/2009	22/12/2011	Active		NO
6	U85110TN1994PTC029023		Medall Healthcare Private Limited	Director	23/09/2010	08/11/2009	-	Active		NO
7	U31103KA2002PTC030060		Universal Power Transformer Private Limited	Director	13/08/2010	12/11/2009	-	Active		NO
8	U74130KA2006PTC059425		Loyalty Solutions and Research Private Limited	Director	29/09/2010	29/05/2010	-	Active		NO
9	U41000TN2002PTC050091		Aqua Designs India Private Limited	Director	30/11/2010	06/08/2010	-	Active		NO
10	U31900TN1985PTC011866	Consul Consolidated Private Limited		Director	29/08/2012	05/04/2012	-		Active	NO
11	U18109KA2009PTC051868	Brandis Manufacturing And Marketing Private Limited		Additional director	29/11/2012	29/11/2012	-		Active	NO

Name :

Mr. Porusasp Rustam Dadachanji

Designation :

Director

Address :

A7, Gera Park, 15/13, Boat Club Road Camp, Pune – 411001, Maharashtra, India

Date of Birth/Age :

12.07.1951

Date of Appointment :

01.09.2008

DIN No.:

02013834

KEY EXECUTIVES

Name :	Mr. Nilesh
Designation :	Accountant

Name :	Mr. C. V. Kulkarni
Designation :	Company Secretary
Address :	Flat No. 2, B Wing, “Suyash Apartments”. 769/770, Sadashiv Peth, Barrister Gadgil Street, Pune - 411030
Tel. No.:	91-2446-7238/39
Mobile No.:	91-9422309448

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 27.09.2013

Names of Shareholders	No. of Shares
Manohar Krishna	57243
Renuka Krishna	6155
Meena Krishna	4250
Chintalapati Holdings Private Limited, India	5302
Peepul Capital Fund LLC, Mauritius	105232
Palmyrah Capital Pte. Limited, Singapure	5222
Total	183404

As on: 27.09.2013

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]	60.22
Bodies corporate	2.89
Directors or relatives of directors	36.89
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Supplier and Trader of Engineering Goods, Drain Cleaning Machines, Cleaning Equipments, etc.
Products :	· Drain Cleaning Machine · Garbage Collection and Transportation Machine · Sweeping · Industrial Vaccum Cleaner and Spillage Recovery · Floor Cleaning Machine · CCTV Inspection Machine
Exports :
Products :	Drain Cleaning Machines
Countries :	· Sri Lanka · Bangalore
Imports :
Products :	Pumps
Countries :	· Italy · Germany
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

100 (Approximately)

Bankers :

· Axis Bank Limited, 1262/B, Sterling Plaza, Jangli Maharaj Road, Deccan Gymkhana, Pune - 411004, Maharashtra, India

· The Ratnakar Bank Limited, Shahupuri, Kolhapur – 416001, Maharashtra, India

· HDFC Bank Limited

· ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan from AXIS Bank Limited A/C No.86106 (Secured by mortgage of factory shed and building at plant II)	0.000	1.901
Term Loan from AXIS Bank Limited A/C No.34295 (Secured by mortgage of Office Buildings)	4.181	0.473
HDFC Bank Car Loan (Secured by mortgage of Car (Tata Safari) )	0.124	0.000
Reliance Consumer Finance- 215411 (Secured by mortgage of Man Chassis 1613)	1.435	1.901
ICICI Loan (Secured by mortgage of Car (Etios) )	0.572	0.000
SHORT TERM BORROWINGS
Cash Credit A/c No. 5340 from AXIS Bank Limited (Primary Security: Hypothecation of all current assets of the company, collateral security, charge on fixed assets of the company, including movable fixed assets, vehicals and mortgage of factory land and building situated at Hinjewadi)	148.980	159.653
Cash Credit A/c No. 0005- Ratnakar Bank Limited (Primary Security: Hypothecation of all current assets of the company, collateral security, charge on fixed assets of the company, including movable fixed assets, vehicals and mortgage of factory land and building situated at Hinjewadi)	82.715	7.183
Cash Credit Linked Current Account (24240)	(0.426)	(0.332)
Total	237.581	170.779

Banking Relations :	--
Auditors :
Name :	Jayant Joshi and Company Chartered Accountants
Address :	11, Kasturi Apartments, Dahanukar Colony Lane 17, Kothrud, Pune – 411038, Maharashtra, India
Tel. No.:	91-20-25458946
E-Mail :	jayantjoshi_co@rediffmail.com
PAN No.:	AADFJ2227R
Holding Company :	Peepul Capital Fund LLC
Related Parties :	· Kam Communication (Division of Kam marketing Private Limited) · Kam Marketing Private Limited

CAPITAL STRUCTURE

As on: 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions
32000	Preference Shares	Rs.10/- each	Rs.3.200 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
183404	Equity Shares	Rs.100/- each	Rs.18.340 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	18.340	14.081	12.596
(b) Reserves & Surplus	470.409	527.160	328.236
(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)	488.749	541.241	340.832
(3) Non-Current Liabilities
(a) Long-term borrowings	6.312	11.210	13.741
(b) Deferred tax liabilities (Net)	20.721	23.081	9.142
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	0.000	0.651	0.000
Total Non-current Liabilities (3)	27.033	34.942	22.883
(4) Current Liabilities
(a) Short term borrowings	286.002	213.916	153.953
(b) Trade payables	171.928	248.525	131.314
(c) Other current liabilities	113.289	181.767	114.247
(d) Short-term provisions	2.872	1.826	0.606
Total Current Liabilities (4)	574.091	646.034	400.120
TOTAL	1,089.873	1,222.217	763.835
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	120.894	104.292	98.289
(ii) Intangible Assets	27.645	32.346	0.000
(iii) Capital work-in-progress	0.000	4.455	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	148.539	141.093	98.289
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	211.228	146.466	162.859
(c) Trade receivables	398.752	708.802	376.177
(d) Cash and cash equivalents	54.917	28.478	12.096
(e) Short-term loans and advances	150.153	111.921	60.335
(f) Other current assets	126.284	85.457	54.079
Total Current Assets	941.334	1,081.124	665.546
TOTAL	1,089.873	1,222.217	763.835

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
SALES
	Gross Income	492.356	869.059	457.178
PROFIT / (LOSS) AFTER TAX		(52.492)	50.424	(5.592)
Earnings / (Loss) Per Share (Rs.)		286.21	274.93	30.49

Particulars	31.03.2014
Sales Turnover (Approximately)	450.000

The above information has been parted by Mr. Nilesh

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	0.00	0.00	0.00
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	0.00
Debt Equity Ratio (Total Debt/Networth)		286.01	213.93	153.99
Current Ratio (Current Asset/Current Liability)		1.64	1.67	1.66

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	12.596	14.081	18.340
Reserves & Surplus	328.236	527.160	470.409
Net worth	340.832	541.241	488.749
long-term borrowings	13.741	11.210	6.312
Short term borrowings	153.953	213.916	286.002
Total borrowings	167.694	225.126	292.314
Debt/Equity ratio	0.492	0.416	0.598

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	457.178	869.059	492.356
		90.092	-43.346

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	457.178	869.059	492.356
Profit	-5.592	50.424	-52.492
	-1.22%	5.80%	-10.66%

LOCAL AGENCY FURTHER INFORMATION

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	NO

UNSECURED LOANS

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Short Term Borrowings
HDFC Bank	0.288	2.012
Religer Finevest Limited	3.500	0.000
Bajaj Finance Limited	2.145	0.000
Capital First Limited	2.000	0.000
Inter Corporate Deposits	46.800	45.400
Total	54.733	47.412

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10340912	26/08/2013 *	130,000,000.00	THE RATNAKAR BANK LIMITED	SHAHUPURI,KOLHAPUR, Maharashtra416001, INDIA	B85221620
2	10073513	13/07/2007	620,000.00	AXIS BANK LIMITED	1262/B, STERLING PLAZA, JANGLI MAHARAJ ROAD DEC  CAN GYMKHANA, PUNE, Maharashtra - 411004, INDIA	A25531153
3	10018030	13/04/2012 *	291,900,000.00	AXIS BANK LIMITED	1262/B, STERLING PLAZA, JANGLI MAHARAJ ROAD, DEC  CAN GYMKHANA PUNE, Maharashtra - 411004, INDIA	B38981767

FIXED ASSETS

· Land

· Factory Building

· Office Building

· Plant and Machinery

· Furniture and Fittings

· Drawing Board

· Dies and Pattems

· Patents

· Development Expenses

· Electrical Installation

· Vehicles

· Office Equipment

· Computers and Peniph

· Borewell

· MSD Equip (DJB 5 V.)

· MSD Equip (DJB 7 V.)

· MSD Equip (Hubli. Dharwad)

· MSD Equip (Gulbarga Municipal corporation)

· MSD Equip (Kambi and Sweeper)

· MSD Equip (Kambi 6LCH6)

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.58.77
UK Pound	1	Rs.98.66
Euro	1	Rs.79.81

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	KAR
Report Prepared by :	OKR

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.