MIRA INFORM REPORT

Report Date :

27.11.2014

IDENTIFICATION DETAILS

Name :	MAHABAL METALS PRIVATE LIMITED
Registered Office :	The Mahabal Group, C/O, P.B. No.30, Miraj – 416 410, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.10.1996
Com. Reg. No.:	11-103515
Capital Investment / Paid-up Capital :	Rs.2.885 Millions
CIN No.: [Company Identification No.]	U29299MH1996PTC103515
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	KLPM01788D
PAN No.: [Permanent Account No.]	AABCM8611K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Auto Components.
No. of Employees :	750 (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 satisfactory track record. Rating reflects sound financial risk profile marked by decent liquidity position and established track record of operations. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealing 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.

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	CARE
Rating	Long Term Bank Facilities = BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	05.12.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	05.12.2013

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. Ashok Kadam
Designation :	Accounts Manager
Contact No.:	91-9823314122
Date :	26.11.2014

LOCATIONS

Registered Office :	The Mahabal Group, C/O, P.B. No.30, Miraj – 416 410, Maharashtra, India
Tel. No.:	91-233-2211101/ 2211102/ 2211103/ 2211104/ 2211201
Mobile No.:	91-9823314122 (Mr. Ashok Kadam)
Fax No.:	91-233-2211106
E-Mail :	kadam.ashok@mahabal.in deepak.bosle@mahabal.in www.mahabalgroup.com san_smahabal@sancharnet.in san_mmpl@sancharnet.in san_mahabal@sancharnet.in amrutparakh@rediffmail.com
Area :	2 Acres
Location :	Owned
Factory 1 :	“Mahabal Metals” at Plot No.23, 24, Gut No.57, 36 and Plot No.85/1 and 2, Marathe Industrial Estate, Miraj, Maharashtra, India
Factory 2 :	There is one new unit coming up at Kupwad District, Gut No. E 25, Miraj, Maharashtra, India
Area :	9.5 Acres
Location :	Owned
Branch Address:	Plot No. 23, Miraj Block MIDC, Miraj-416410, Sangli, Maharashtra, India
Tel. No.:	233 2645392, 2645393
Fax:	233 2644092
Email:	san_mahabal@sancharnet.in san_mmpl@sancharnet.in

DIRECTORS

As on 30.09.2013

Name :	Mr. Sanjay Gopalrao Damale
Designation :	Director
Address :	Near R.M. High School, Brahminpuri, Miraj – 416 410, Maharashtra, India
Date of Birth/Age :	15.07.1961
Date of Appointment :	10.08.2008
DIN No. :	02392776
Name :	Mr. Shrikant Madhavrao Mahabal
Designation :	Director
Address :	Near Bhanu Talim, Brahminpuri, Miraj – 416 410, Maharashtra, India
Date of Birth/Age :	01.06.1959
Qualification :	Engineer
Date of Appointment :	25.10.1996
DIN No. :	00314421
PAN No.:	AAZPM3948A
Name :	Mr. Hemant Madhavrao Mahabal
Designation :	Director
Address :	Plot No. D U-20, G.M. Industrial Estate, A/P. Miraj, Miraj – 416 410, Maharashtra, India
Date of Birth/Age :	06.03.1962
Qualification :	Engineer
Date of Appointment :	25.10.1996
DIN No. :	00314483
PAN No.:	AAZPM3945P
Name :	Mr. Nishikant Madhavrao Mahabal
Designation :	Director
Address :	Plot No.D-417-20, G.M. Industrial Estate, Miraj – 416 410, Maharashtra, India
Date of Birth/Age :	29.12.1966
Qualification :	Engineer
Date of Appointment :	25.10.1996
DIN No. :	00314567
PAN No.:	AAZPM3947R

KEY EXECUTIVES

Name :	Mr. Ashok Kadam
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Shrikant Madhavrao Mahabal	960
Hemant Madhavrao Mahabal	960
Nishikant Madhavrao Mahabal	960
Sanjay Gopalrao Damale	5
Total	2885

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

7

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Auto Components.

Products :

Item Code No. (ITC Code)	87081090
Product Description	Automobile Components

Brand Names :

--

Agencies Held :

--

Exports :

Products :

Finished Goods

Countries :

• Singapore
• UK
• USA

Imports :

Products :

Raw Materials

Countries :

• Japan
• Germany
• USA

Terms :

Selling :

Cash / L/C/ Credit

Purchasing :

Cash / L/C/ Credit

GENERAL INFORMATION

Suppliers :

Reference :	Sasa Goa Limited
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

End Users and Others

Reference :	Mahindra and Mahindra Limited
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

750 (Approximately)

Bankers :

• IDBI Bank Limited IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
• Industrial Development Bank of India, Opposite Vita Dairy, Brahmnpuri, Miraj – 416 410, Maharashtra, India
• HDFC Bank Limited (Mumbai)
• HDFC Bank Limited (Sangli)
• ICICI Bank Limited
• ABN Amro Bank
• Kotak Mahindra Bank Limited
• Rajarambapu Co-Operative Bank Limited
• The United Western Bank, Miraj Branch, Miraj - 416410, Maharashtra, India

Banker Name	Bank of Baroda
Branch Address	Miraj – 416 410, Maharashtra, India
Person Name (With Designation)	Mr. Khatarkar
Contact Number	91-7066861245 / 233-2224363
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	2010
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash Credit Rs.320.000 Millions
Account Operation	Satisfactory
Remarks (If any)	As claimed by Mr. Khatarkar (Chief Manager) subject having very good track record for banking transaction.

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Rupee term loans from banks	179.997	232.115
Short Term Borrowing
Rupee term loans from banks (EM of P&M & hypothecation of RM, FG, WIP & Book Debts)	142.048	288.000
Total	322.045	520.115

Banking Relations :	---
Auditors :
Name :	Y.P. Lele and Company Chartered Accountants
Address :	F-5, Laxmi Vijay Apartment, Jilebi Chowk, Brahmanpuri, Miraj – 416 410, Maharashtra, India
Tel. No.:	91-233-2222700
PAN No.:	AAJPL6040J
Associated Companies :	Mahabal Auto Ancillaries Private Limited Trinitas Engineers and Founders Private Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.1000/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2885	Equity Shares	Rs.1000/- each	Rs.2.885 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	2.885	2.885	2.885
(b) Reserves & Surplus	566.318	474.675	401.160
(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)	569.203	477.560	404.045
(3) Non-Current Liabilities
(a) long-term borrowings	180.040	235.045	195.974
(b) Deferred tax liabilities (Net)	6.498	20.753	31.509
(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)	186.538	255.798	227.483
(4) Current Liabilities
(a) Short term borrowings	142.048	288.000	207.573
(b) Trade payables	167.985	194.152	119.947
(c) Other current liabilities	138.114	137.613	114.003
(d) Short-term provisions	39.653	49.709	17.664
Total Current Liabilities (4)	487.800	669.474	459.187
TOTAL	1243.541	1402.832	1090.715
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	593.155	607.458	617.779
(ii) Intangible Assets	0.799	0.881	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.750	1.750	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	23.403	92.527	35.719
Total Non-Current Assets	619.107	702.616	653.498
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	165.346	173.456	105.109
(c) Trade receivables	368.478	364.866	257.389
(d) Cash and cash equivalents	14.178	31.215	18.271
(e) Short-term loans and advances	75.267	129.867	54.658
(f) Other current assets	1.165	0.812	1.790
Total Current Assets	624.434	700.216	437.217
TOTAL	1243.541	1402.832	1090.715

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
SALES
	Income	1771.812	1791.416	1331.212
	Labour Charges Received	21.010	31.330	26.628
	Other Income	17.458	16.428	2.936
	TOTAL	1810.228	1839.175	1360.776
EXPENSES
	Office Expenses			1159.951
	Administrative Expenses
	Advertising Expenses
	TOTAL			1159.951
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		NA	NA	200.825
INTEREST				33.956
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION				166.869
DEPRECIATION/ AMORTISATION				147.098
PROFIT BEFORE TAX		111.946	121.905	19.771
TAX		20.245	34.244	5.946
PROFIT AFTER TAX		91.701	87.661	13.825
APPROPRIATIONS
	Interim Dividend	2.885	8.655	2.880
	I.T on Interim Dividend	0.468	1.437	0.432
	Proposed Dividend	2.885	2.885	2.885
	Income Tax on Dividend	0.468	0.468	0.479
	Transfer to General Reserve	85.200	73.500	5.600
PROFIT AFTER APPROPRIATION		0.550	0.259	0.245
EARNINGS IN FOREIGN CURRENCY
	Export on FOB basis	229.135	207.577	171.662
	On Account Export	0.000	73.657	155.163
TOTAL EARNINGS		229.135	281.234	326.825
IMPORTS
	CIF value of Imports	1.787	10.859	0.000
TOTAL IMPORTS		1.787	10.859	0.000
Earnings Per Share (Rs.)			30385.10	4792.03

Particulars	31.03.2014
Sales Turnover (Approximately)	1800.000

The above information has been parted by Mr. Ashok Kadam.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT / Sales)	(%)	5.18	4.89	1.04
Operating Profit Margin (PBIDT/Sales)	(%)	NA	NA	15.09
Return on Total Assets (PBT/Total Assets}	(%)	9.01	8.70	1.81
Return on Investment (ROI) (PBT/Networth)		0.20	0.26	0.05
Debt Equity Ratio (Total Debt /Networth)		0.57	1.10	1.00
Current Ratio (Current Asset/Current Liability)		1.28	1.05	0.95

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	2.885	2.885	2.885
Reserves & Surplus	401.160	474.675	566.318
Net worth	404.045	477.560	569.203
long-term borrowings	195.974	235.045	180.040
Short term borrowings	207.573	288.000	142.048
Total borrowings	403.547	523.045	322.088
Debt/Equity ratio	0.999	1.095	0.566

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	1331.212	1791.416	1771.812
		34.570	(1.094)

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	1331.212	1791.416	1771.812
Profit	13.825	87.661	91.701
	1.04%	4.89%	5.18%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular	31.03.2013	31.03.2012	31.03.2011
Current maturities of long-term debt	136.084	131.617	111.175

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%	No
14]	Estimation for coming financial year	No
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	No
26]	Buyer visit details	No
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	Yes

UNSECURED LOAN (Rs. In Millions)

	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Rupee term loans from banks	0.043	2.930
Total	0.043	2.930

FINANCIAL REVIEW:

Financial Year 2012-2013 was a challenging year. The year witnessed that due to recession companies turnover is slightly decreased compared to last year but net profit is increased by 5 % with the last year. The company has recorded a Net Profit after Tax (PAT) of Rs. 91.701 Millions during the year as compared to Rs. 87.661 Millions in the previous year.

FUTURE PLANS:

The year in retrospect was satisfactory. Board is optimistic to attain reasonable & sustainable growth in the current financial year. Company will in process to set up new plant at Sanand, Gujrat.

OPERATION

The company has expanded its arm by establishing a new unit at 5A/1, MIDC, Miraj and has commissioned its production from last week of March, 2010. In during year company has used capacity more than 75% and produced 25000 MT CI and SG casting for Tata Motors, Mahindra and Volvo.

EXPORTS

During the year Exports turnover is decreased about 18.52 % in at Rs. 22.91 crore (previous year Rs. 28.12 crore). Sharing of export turnover is more than 15% of the net sales of the company during the year. The Company performed convincingly well and Company initiated several export promotion measures to improve exports.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10529527	14/10/2014	115,000,000.00	Bank of Baroda	High School Road, Miraj Branch, Miraj, Maharashtra - 416410, India	C32525305
2	10519163	26/08/2014	103,000,000.00	Bank of Baroda	Miraj Branch, Miraj, Maharashtra - 416410, India	C19990852
3	10495012	25/04/2014	75,000,000.00	Bank of Baroda	Miraj Branch, Miraj, Maharashtra - 416410, India	C02390987
4	10330955	30/12/2011	25,550,000.00	Rajarambau Sahakari Bank Limited	Gandhi Chowk Miraj, Miraj, Maharashtra - 416410, India	B30300651
5	10302689	30/12/2011 *	100,000,000.00	Bank of Baroda	Miraj Branch,, Miraj, Maharashtra - 416410, India	B30898605
6	10280780	24/08/2012 *	572,000,000.00	Bank of Baroda	Miraj Branch,, Miraj, Maharashtra - 416410, India	B59145508

* Date of charge modification

FIXED ASSETS:

• Land
• Buildings
• Plant And Equipment
• Factory Equipments
• Furniture And Fixtures
• Vehicles
• Office Equipment
• Computer Equipments
• Bridges Roads Ports Culverts
• Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.86
UK Pound	1	Rs.97.23
Euro	1	Rs.77.21

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SMT
Report Prepared by :	MTN

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	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		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.