MIRA INFORM REPORT

Report Date :

05.11.2014

IDENTIFICATION DETAILS

Name :	MINERA STEEL AND POWER PRIVATE LIMITED (w.e.f.11.02.2011)
Formerly Known As :	KMMI STEEL PRIVATE LIMITED
Registered Office :	811/2, NH 63, Hospet Road, Alipura, Bellary – 583105, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.02.2006
Com. Reg. No.:	08-038481
Capital Investment / Paid-up Capital :	Rs. 350.000 Millions
CIN No.: [Company Identification No.]	U27101KA2006PTC038481
TAN No.: [Tax Deduction & Collection Account No.]	BLRM10570A
PAN No.: [Permanent Account No.]	AACCK7567M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Sponge Iron, Billets, Iron Ore Pellets and Trader of Coal and Also Generation of Power.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term fund based: “BBB-”
Rating Explanation	Have moderate degree of safety and carry moderate credit risk.
Date	June, 2014

Rating Agency Name	ICRA
Rating	Short term non-fund based: “A3”
Rating Explanation	Have moderate degree of safety and carry higher credit risk.
Date	June, 2014

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Aswath
Designation :	DGM in Finance
Contact No.:	91-9480823400
Date :	05.11.2014

LOCATIONS

Registered/ Corporate Office :	811/2, NH 63, Hospet Road, Alipura, Bellary – 583105, Karnataka, India
Tel. No.:	91-8392-237709/ 237799/ 237720/ 237701/ 08
Mobile No.:	91-9480823400 (Mr. Aswath)
Fax No.:	91-8392-237744/ 237799/ 237899
E-Mail :	info@mineragroup.com aswath@mineragroup.com info@kmmisteel.com accounts@mineragroup.com
Website :	www.mineragroup.com
Location :	Owned
Factory :	Yerappanahalli, Taluka Sandur, District Bellary, Karnataka, India

DIRECTORS

As on 30.08.2013

Name :

Noor Ahmed Hothur

Designation :

Managing Director

Address :

No. 54, Mubarak Manzil, Infantory Road, Cantonment, Bellary - 583104, Karnataka, India

Date of Birth/Age :

14.06.1955

Date of Appointment :

15.02.2006

PAN No.:

ABMPA5659A

DIN No.:

00487148

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	U13100KA1980PTC003993	TRIDENT MINING CO PRIVATE LIMITED	Director	10-04-1989	26-03-1989	Active	NO
2	U74210TG2001PTC037973	ZENITH THERMAL EQUIPMENT PRIVATE LIMITED	Director	19-10-2001	19-10-2001	Active	NO
3	U02710KA2002PTC030906	KARI GANUR IRON AND STEEL PRIVATE LIMITED	Managing director	20-08-2002	20-08-2002	Active	NO
4	U35911KA2005PTC036545	HOTHUR MOTORS PRIVATE LIMITED	Director	20-07-2009	14-06-2005	Active	NO
5	U27101KA2006PTC038481	MINERA STEEL AND POWER PRIVATE LIMITED	Managing director	15-02-2006	15-02-2006	Active	NO
6	U13100GA2006PTC004866	INTEGRATED MINERAL RESOURCES PRIVATE LIMITED	Director	01-11-2006	01-11-2006	Active	NO
7	U40101KA2003PTC032141	LIMBAVALI POWER PRIVATE LIMITED	Managing director	02-08-2010	02-08-2010	Active	NO
8	U74899DL1969NPL005064	FEDERATION OF INDIA MINERAL INDUSTRIES	Director	31-07-2014	31-07-2014	Active	NO

Name :

Mr. Tanveer Ahmed

Designation :

Whole-time director

Address :

No. 54, Mubarak Manzil, Cantonment, Bellary - 583104, Karnataka, India

Date of Birth/Age :

27.01.1980

Date of Appointment :

15.02.2006

PAN No.:

AGJPA0949F

DIN No.:

00487144

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	U35911KA2005PTC036545	HOTHUR MOTORS PRIVATE LIMITED	Whole-time director	14-06-2005	14-06-2005	-	Active	NO
2	U27101KA2006PTC038481	MINERA STEEL AND POWER PRIVATE LIMITED	Whole-time director	15-02-2006	15-02-2006	-	Active	NO
3	U13100GA2006PTC004866	INTEGRATED MINERAL RESOURCES PRIVATE LIMITED	Director	01-11-2006	01-11-2006	-	Active	NO
4	U74999KA2006PTC040035	BIODZI ENERGY FARMS (INDIA) PRIVATE LIMITED	Director	21-02-2007	21-02-2007	04-09-2012	Active	NO
5	U40101KA2003PTC032141	LIMBAVALI POWER PRIVATE LIMITED	Director	07-08-2010	06-12-2008	26-06-2012	Active	NO

Name :

Hothur Nafisa Noor

Designation :

Director

Address :

Mubarak Manzil, Cantonment, Bellary - 583104, Karnataka, India

Date of Birth/Age :

22.04.1955

Date of Appointment :

15.12.2006

PAN No.:

ACIPB1785D

DIN No.:

02440884

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	U35911KA2005PTC036545	HOTHUR MOTORS PRIVATE LIMITED	Director	14-06-2005	14-06-2005	Active	NO
2	U27101KA2006PTC038481	MINERA STEEL AND POWER PRIVATE LIMITED	Director	15-12-2006	15-12-2006	Active	NO
3	U40101KA2003PTC032141	LIMBAVALI POWER PRIVATE LIMITED	Director	30-09-2010	02-08-2010	Active	NO

Name :

Nanda Kumar Kadloor

Designation :

Additional director

Address :

No. 166 A, New No. 1011, 39 Cross, 2^nd Block, Rajajinagar, Bangalore - 560010, Karnataka, India

Date of Birth/Age :

30.12.1953

Date of Appointment :

02.09.2013

DIN No.:

03355375

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	U27101KA2006PTC038481	MINERA STEEL AND POWER PRIVATE LIMITED	Additional director	02-09-2013	16-12-2010	Active	NO

KEY EXECUTIVES

Name :	Mr. Aswath
Designation :	DGM in Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Tanveer Ahmed	23000000	65.71
Hothur Nafisa Noor	5000000	14.29
Nikhath	5000000	14.29
Sakina Basith	2000000	5.71
Total	35000000	100.00

As on 30.08.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Sponge Iron, Billets, Iron Ore Pellets and Trader of Coal and Also Generation of Power.

Products :

Item Code No. (ITC Code)	Product Description
72031000	Sponge Iron

Imports :

Products :

Coal and Scrap

Countries :

Singapore

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2013)

Particulars	Installed Capacity	Actual Production
Sponge Iron (MT)	1,20,000	98,888
Wind Mill	4 MW	61,87,720 Units
SMS (MT)	60,000	36,919
WHR PP	8 MW	2,90,30,000 Units

GENERAL INFORMATION

Suppliers :

Newgen, Singapore

Customers :

Others

No. of Employees :

500 (Approximately)

Bankers :

· State Bank of India, SME Branch, Station Road, Bellary - 585101, Karnataka, India

· Union Bank of India, 201, 1st Floor, Car Street, Bellary - 583101, Karnataka, India

· Axis Bank Limited, Corporate Banking Branch, Queens Road, Bangalore - 560001, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	445.257	568.268
SHORT TERM BORROWINGS
Working capital loans from banks	155.161	217.231
Total	600.418	785.499

Banking Relations :	--
Auditors :
Name :	D V Sarovar and Company Chartered Accountants
Address :	Door No 17 (C), Ward No 18, Jayadhurgha Mansion, 2^nd Floor, Opposite ING Vysya Bank, Parvathi Nagar Main Road, Bellary – 583103, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	ABHPL2932R
Subsidiary Company :	Newzen Resources Pte Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Hothur Motors Private Limited CIN No.: U35911KA2005PTC036545 · Trident Minerals, Bellary · Mehaboob Transport Company, Bellary · Hothur Traders, Bellary · Kari Ganur Iron And Steel Private Limited CIN No.: U02710KA2002PTC030906 · Limbavali Power Private Limited CIN No.: U40101KA2003PTC032141 · KMMI-Hospet · Integrated Mineral Resources Private Limited CIN No.: U13100GA2006PTC004866

CAPITAL STRUCTURE

After 30.08.2013

Authorised Capital : Rs. 450.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 350.000 Millions

As on 30.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs.10/- each	Rs. 350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs.10/- each	Rs. 350.000 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	350.000	300.000	300.000
(b) Reserves & Surplus	723.851	604.754	487.528
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	50.000	50.000
Total Shareholders’ Funds (1) + (2)	1073.851	954.754	837.528
(3) Non-Current Liabilities
(a) long-term borrowings	445.257	568.268	534.594
(b) Deferred tax liabilities (Net)	185.218	215.345	201.106
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	630.475	783.613	735.700
(4) Current Liabilities
(a) Short term borrowings	697.488	619.231	321.798
(b) Trade payables	682.328	179.723	423.146
(c) Other current liabilities	251.313	7.924	16.002
(d) Short-term provisions	30.459	24.473	23.843
Total Current Liabilities (4)	1661.588	831.351	784.789
TOTAL	3365.914	2569.718	2358.017
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1213.153	1497.245	1177.045
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	217.869	74.340	180.503
(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	8.262	8.228	2.068
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1439.284	1579.813	1359.616
(2) Current assets
(a) Current investments	79.723	45.310	45.310
(b) Inventories	1023.763	482.378	443.270
(c) Trade receivables	251.564	119.574	75.488
(d) Cash and cash equivalents	165.699	44.309	61.906
(e) Short-term loans and advances	273.083	229.320	310.096
(f) Other current assets	132.798	69.014	62.331
Total Current Assets	1926.630	989.905	998.401
TOTAL	3365.914	2569.718	2358.017

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		TOTAL	2792.700	2067.700	1883.200
Less	EXPENSES
		TOTAL	2673.300	1818.600	1656.700
	PROFIT/ (LOSS) BEFORE TAX		119.400	249.100	226.500
Less	TAX		0.300	67.100	96.900
	PROFIT/ (LOSS) AFTER TAX		119.100	182.000	129.600
	Earnings / (Loss) Per Share (Rs.)		3.40	6.07	4.32

Particulars	31.03.2014
Sales Turnover (Approximately)	2930.000

Expected Sales (2014-2015): Rs. 4000.000 Millions

The above information has been parted by Mr. Aswath (DGM in Finance)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	3.79	9.98	10.40
Return on Investment (ROI) (PBT/Networth)		0.11	0.26	0.27
Debt Equity Ratio (Total Debt/Networth)		1.06	1.24	1.02
Current Ratio (Current Asset/Current Liability)		1.16	1.19	1.27

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	300.000	300.000	350.000
Reserves & Surplus	487.528	604.754	723.851
Share Application money pending allotment	50.000	50.000	0.000
Net worth	837.528	954.754	1073.851
long-term borrowings	534.594	568.268	445.257
Short term borrowings	321.798	619.231	697.488
Total borrowings	856.392	1187.499	1142.745
Debt/Equity ratio	1.023	1.244	1.064

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)
Total Income	1883.200	2067.700	2792.700
		9.797	35.063

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	1883.200	2067.700	2792.700
Profit	129.600	182.000	119.100
	6.88%	8.80%	4.26%

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 four 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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10504141	27/05/2014 *	500,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, QUEENS ROAD, BANGLAORE, KARNATAKA - 560001, INDIA	C07714942
2	10015516	07/05/2013 *	3,261,200,000.00	STATE BANK OF INDIA	SME BRANCH, STATION ROAD, BELLARY, KARNATAKA - 585101, INDIA	B75000919

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loans and advances from related parties	542.327	402.000
Total	542.327	402.000

FIXED ASSETS

· Land

· Buildings

· Factory Building

· Plant and Equipment

· Other plant and Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Other Equipments

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.61.41
UK Pound	1	Rs.98.06
Euro	1	Rs.76.67

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	RAS
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		47

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.