MIRA INFORM REPORT

Report Date :

08s.11.2014

IDENTIFICATION DETAILS

Name :	PREMIER INDIA BEARINGS LIMITED
Registered Office :	413, Marshall House, 25 Strand Road, Kolkata, West Bengal – 700001, India
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	03.10.1988
Com. Reg. No.:	21 - 045316
Capital Investment / Paid-up Capital :	Rs. 58.540 Million
CIN No.: [Company Identification No.]	U27109WB1988PLC045316
PAN No.: [Permanent Account No.]	AABCP5416D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Distributor of Bearings and Allied Products.
No. of Employees :	Information declined by the management

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

Maximum Credit Limit :	USD 470000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. As per registrar of companies the date of balance sheet (i.e financial filed) is shown as 31.03.2014 but the documents related to the financials of 2014 are not available from any source. As per available financials, Rating reflects sound financial risk profile marked by decent liquidity position of the company. Rating also takes into consideration long track record of the company in bearing trading business. Trade relations are reported to be fair. Business is active. Payments 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.

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. Mohan
Designation :	Accountant
Contact No.:	Not Available
Date :	03.11.2014

LOCATIONS

Registered Office :	413, Marshall House, 25 Strand Road, Kolkata, West Bengal – 700001, India
Tel. No.:	91-33-22300640/22301926
Mobile No.:	Not Available
Fax No.:	91-33-22485745
E-Mail :	mltater@rediffmail.com
Website :	pibl@vsnl.com
Branches/ Located At :	Northern Region Chandigarh, Punjab Ludhiana Punjab Gurgaon, Haryana Guwahati, Assam Jamshedpur, Jharkhand Western Region Mumbai, Maharashtra Nashik, Maharashtra Gandhidham, Kutch Ernakulam, Kochi Chennai, Tamilnadu Hosur, Tamilnadu Kattoor, Coimbatore Bengaluru, Karnataka Hospet, Karnataka

DIRECTORS

As on 30.09.2013

Name :

Mr. Chain Roop Chandalia

Designation :

Director

Address :

25 Strand Road, Kolkata, West Bengal – 700001, India.

Date of Birth/Age :

03.02.1956

Date of Appointment :

27.04.1989

DIN No.:

00190294

PAN No.:

ABYPC1969R

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	U27109WB1988PLC045316	PREMIER INDIA BEARINGS LTD	Director	27/04/1989	27/04/1989	-	Active	NO
2	U33112WB1988PTC045092	HI-TECH BEARINGS PVT LTD	Director	18/03/1991	18/03/1991	-	Active	NO
3	U29130WB2002PTC095291	ZKL BEARINGS (INDIA) PRIVATE LIMITED	Director	02/06/2003	02/06/2003	-	Active	NO
4	U51109WB1991PTC053967	CRYSTAL BEARINGS PVT LTD	Director	10/07/2003	10/07/2003	-	Active	NO
5	U51909WB2002PTC095064	SILVERSON DEALERS PRIVATE LIMITED	Director	09/12/2003	09/12/2003	15/12/2008	Active	NO
6	U65993WB1994PTC062045	MKS CREDIT & FINANCE PVT LTD	Director	02/07/2006	02/07/2006	-	Active	NO
7	U65993WB1994PTC062044	VITRAG CREDIT & FINANCE PVT. LTD.	Director	02/07/2006	02/07/2006	-	Active	NO
8	U52110WB2006PTC111012	ZKL INDIA PRIVATE LIMITED	Director	29/07/2006	29/07/2006	-	Strike off	NO
9	U51109WB2007PTC112599	CARCO SEALS INDIA PRIVATE LIMITED	Director	16/01/2007	16/01/2007	-	Strike off	NO
10	U67120WB1996PTC081589	VIKRAM FINVEST PRIVATE LIMITED	Director	21/04/2008	21/04/2008	-	Active	NO
11	U51909WB2004PTC100397	SOUND SUPPLIERS PRIVATE LIMITED	Director	25/05/2011	25/05/2011	-	Active	NO
12	U51900WB2006PTC107911	ADINATH DISTRIBUTORS PRIVATE LIMITED	Director	30/08/2011	30/08/2011	-	Active	NO
13	U70101WB2005PTC101913	RAJMANI PROPERTIES PRIVATE LIMITED	Director	02/01/2012	02/01/2012	-	Active	NO

Name :

Mr. Surendra Kumar Choraria

Designation :

Director

Address :

25 Strand Road, Kolkata, West Bengal – 700001, India.

Date of Birth/Age :

31.05.1955

Date of Appointment :

30.01.1989

DIN No.:

00190327

PAN No.:

ACLPC2103K

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	U27109WB1988PLC045316	PREMIER INDIA BEARINGS LTD	Director	30/01/1989	30/01/1989	-	Active	NO
2	U33112WB1988PTC045092	HI-TECH BEARINGS PVT LTD	Director	06/05/1991	06/05/1991	-	Active	NO
3	U45201WB1994PTC062238	TIRUMALA CARETAKER PVT LTD	Director	01/04/1996	01/04/1996	18/10/2012	Active	NO
4	U51909WB2002PTC095064	SILVERSON DEALERS PRIVATE LIMITED	Director	09/12/2003	09/12/2003	15/12/2008	Active	NO
5	U51109WB1991PTC053967	CRYSTAL BEARINGS PVT LTD	Director	24/05/2004	24/05/2004	-	Active	NO
6	U29130WB2002PTC095291	ZKL BEARINGS (INDIA) PRIVATE LIMITED	Director	24/05/2004	24/05/2004	-	Active	NO
7	U65993WB1994PTC062045	MKS CREDIT & FINANCE PVT LTD	Director	02/07/2006	02/07/2006	-	Active	NO
8	U65993WB1994PTC062044	VITRAG CREDIT & FINANCE PVT. LTD.	Director	02/07/2006	02/07/2006	-	Active	NO
9	U52110WB2006PTC111012	ZKL INDIA PRIVATE LIMITED	Director	29/07/2006	29/07/2006	-	Strike off	NO
10	U51109WB2007PTC112599	CARCO SEALS INDIA PRIVATE LIMITED	Director	16/01/2007	16/01/2007	-	Strike off	NO
11	U67120WB1996PTC081589	VIKRAM FINVEST PRIVATE LIMITED	Director	21/04/2008	21/04/2008	-	Active	NO
12	U51109WB2008PTC122170	MASTERMIND VYAPAAR PRIVATE LIMITED	Director	24/08/2010	24/08/2010	-	Active	NO
13	U51909WB2004PTC100397	SOUND SUPPLIERS PRIVATE LIMITED	Director	25/05/2011	25/05/2011	-	Active	NO
14	U51900WB2006PTC107911	ADINATH DISTRIBUTORS PRIVATE LIMITED	Director	30/08/2011	30/08/2011	-	Active	NO

Name :

Mr. Vijay Kumar Sethia

Designation :

Director

Address :

41, Armenian Street, Madras, - 600001. Tamilnadu, India.

Date of Birth/Age :

30.11.1957

Date of Appointment :

27.04.1989

DIN No.:

01538886

PAN No.:

AADPV8972D

KEY EXECUTIVES

Name :	Mr. Mohan
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	87.39
Directors or relatives of Directors	5.82
Other top fifty shareholders	6.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributor of Bearings and Allied Products.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• The Royal Bank Of Scotland
• Bank Of Baroda
• State Bank Of India
• Syndicate Bank
• HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai - 400013, Maharashtra, India

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Rupee Term Loans From Bank ( Term Loan From HDFC Bank is secured by hypothecation of entire Land and Building situated at B-XX1-14651- Dholewal Chowk, Ludhina – 141 003 in the name of the company.	8.942	0.000
Term Loan From Others (Term Loan From HDB Financial Services Limited is secured byhypothecation of flat situated at 35 Ballygunge Park, Kolkata – 700 019 In the name of the Director Of the Company	21.036	0.000
Long – Term Maturities of Finance Lease Obligations (Finance Lease Obligations are secured by hypothecation of Vehicles)	0.802	2.891
Total	30.780	2.891

Banking Relations :	---
Auditors :
Name :	V. K. Patawari and Company Chartered Accountant
Address :	33, Brabourne Road, 3^rd Floor, Kolkata – 700001, West Bengal, India
PAN No.:	AAFFV4830L
Related Parties : Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	Phonenix Trading Corporation Hi-Tech Bearings Private Limited U33112WB1988PTC045092 Crystal Bearings Private Limited U51109WB1991PTC053967

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs. 60.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5854014	Equity Shares	Rs.10/- each	Rs. 58.540 Million

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	58.540	58.540	58.540
(b) Reserves & Surplus	107.464	101.239	96.722
(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)	166.004	159.779	155.262
(3) Non-Current Liabilities
(a) long-term borrowings	31.002	3.113	4.323
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	12.220	10.037	8.419
Total Non-current Liabilities (3)	43.222	13.150	12.742
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	264.676	194.667	179.533
(c) Other current liabilities	134.617	105.682	79.114
(d) Short-term provisions	0.401	0.085	0.271
Total Current Liabilities (4)	399.694	300.434	258.918
TOTAL	608.920	473.363	426.922
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	42.204	20.420	20.264
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	16.771	19.164	9.224
(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)	6.077	4.602	3.827
(d) Long-term Loan and Advances	7.383	6.636	5.528
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	72.435	50.822	38.843
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	106.852	83.426	82.062
(c) Trade receivables	381.760	322.290	289.451
(d) Cash and cash equivalents	41.433	12.514	10.023
(e) Short-term loans and advances	6.440	4.311	6.543
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	536.485	422.541	388.079
TOTAL	608.920	473.363	426.922

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1392.120	1197.213	1048.413
		Other Income	0.729	1.099	0.793
		TOTAL (A)	1392.849	1198.312	1049.206
Less	EXPENSES
		Cost of Materials Consumed	0.000	0.000	0.000
		Purchases of Stock-in-Trade	1277.933	1085.401	946.340
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	-23.426	-1.363	9.825
		Employees benefits expense	42.259	32.712	29.719
		Other expenses	68.361	58.612	43.822
		TOTAL (B)	1365.127	1175.362	1029.706
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.722	22.950	19.500
Less	FINANCIAL EXPENSES (D)		12.313	10.348	8.177
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.409	12.602	11.323
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.037	5.426	4.546
	PROFIT BEFORE TAX (E-F) (G)		9.372	7.176	6.777
Less	TAX (H)		3.147	2.660	2.094
	PROFIT AFTER TAX (G-H) (I)		6.225	4.516	4.683
	Earnings Per Share (Rs.)		1.06	0.77	0.79

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin PAT / Sales	(%)	0.45	0.38	0.45
Operating Profit Margin (PBDIT/Sales)	(%)	1.99	1.92	1.86
Return on Total Assets (PBT/Total Assets}	(%)	1.60	1.60	1.64
Return on Investment (ROI) (PBT/Networth)		0.06	0.04	0.04
Debt Equity Ratio (Total Debt /Networth)		0.19	0.02	0.03
Current Ratio (Current Asset/Current Liability)		1.34	1.41	1.50

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	58.540	58.540	58.540
Reserves & Surplus	96.722	101.239	107.464
Net worth	155.262	159.779	166.004
long-term borrowings	4.323	3.113	31.002
Short term borrowings	0.000	0.000	0.000
Total borrowings	4.323	3.113	31.002
Debt/Equity ratio	0.028	0.019	0.187

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	1048.413	1197.213	1392.120
		14.193	16.280

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	1048.413	1197.213	1392.120
Profit	4.683	4.516	6.225
	0.45%	0.38%	0.45%

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	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	No
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

UNSECURED LOAN

(Rs. In Millions)

PARTICULAR	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Loans Repayable On Demand From Others	0.221	0.222
Total	0.221	0.222

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10359826	04/06/2012	13,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W  , MUMBAI, Maharashtra - 400013, INDIA	B41281759
2	80034144	05/05/2009 *	248,500,000.00	BANK OF BARODA	International Business Branch, 4, India Exchange  Place, KOLKATA, West Bengal - 700001, INDIA	A63324800
3	80034135	18/12/2008 *	70,000,000.00	BANK OF BARODA	INTERNATIONAL BUSINESS BRANCH, 4 INDIA EXCHANGE P  ALACE, KOLKATA, West Bengal - 700001, INDIA	A54153713
4	80034143	05/05/2009 *	248,500,000.00	BANK OF BARODA	International Business Branch, 4, India Exchange  Place, KOLKATA, West Bengal - 700001, INDIA	A63324610

* Date of charge modification

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.61.40
UK Pound	1	Rs.98.06
Euro	1	Rs.77.18

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SMT
Report Prepared by :	SPR

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--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	NO
--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.