MIRA INFORM REPORT

Report Date :

13.10.2014

IDENTIFICATION DETAILS

Name :	MADRAS ENGINEERING INDUSTRIES PRIVATE LIMITED
Registered Office :	14, Sathyanarayana Avenue, Rajaannamalaipuram, Chennai – 600028, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	17.11.1976
Com. Reg. No.:	18-007223
Capital Investment / Paid-up Capital :	Rs.15.750 Millions
CIN No.: [Company Identification No.]	U35999TN1976PTC007223
TAN No.: [Tax Deduction & Collection Account No.]	CHEM00053E
PAN No.: [Permanent Account No.]	AAACM4509P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Automobile Parts.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 3260000
Status :	Satisfactory
Payment Behavior :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There seems drastic dip in the profit of the company during 2013. However, general financial position of the company seems to be decent. Trade relations are reported to be fair. Business is active. Payment terms are reported to be slow but 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 slowly 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 Electro herm 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 Blue Ridge 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 willfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

On Mobile 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	CRISIL
Rating	Long term rating= “BBB-”
Rating Explanation	Have moderate degree of safety and carry moderate credit risk
Date	April 21, 2014
Rating Agency Name	CRISIL
Rating	Short Term Rating=”A3”
Rating Explanation	Have moderate degree of safety and carry higher credit risk
Date	April 14, 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 DENIED BY

Management non co-operative (91-44-26258433)

LOCATIONS

Registered Office :	14, Satyanarayana Avenue, Madras – 600 028, Tamilnadu, India
Tel. No.:	91-44-26258433 / 26254346
Fax No.:	91-44-26250178
E-Mail :	meil@giasmdol.vsnl.net.in
Website :	http://www.madrasengineering.com
Location :	Owned
Factory 1 (Manual Slack Adjusters) :	C-6 Industrial Estate, Ambattur, Chennai – 600058, Tamilnadu, India.
Tel. No.:	91-44-43983200 / 91-44-26258433
Fax No.:	91-44-26250178
E-Mail :	meil@madrasengineering.com
Factory 2 (Automatic Slack Adjusters) :	5 and 6, SIDCO Industrial Estate, Maraimalainagar - 603209. India.
Tel. No.:	91-44-47423100 / 91-44-27452646
Fax No.:	91-44-27452546
Factory 3 Automatic Slack Adjusters) :	Plot No. AA7, 6th Avenue, Auto Ancillary SEZ, Natham Sub Post, Mahindras World City, Chengelpet, Kancheepuram District - 603 002, Tamil Nadu, India.
Tel. No.:	91-44-47423000
Fax No.:	91-44-47423099

DIRECTORS

As on: 25.07.2013

Name :

Mr. Parthasarathy Echampadi Krishnaswamy

Designation :

Managing director

Address :

14, Sathyanarayana Avenue, Chennai – 600028, Tamilnadu, India

Date of Birth/Age :

22.07.1936

Qualification :

BE

Date of Appointment :

17.11.1976

PAN No.:

AAHPP4796M

DIN No.:

00919970

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	U34103TN1968PTC005665	KARKIT PRIVATE LIMITED	Director	27/11/1968	27/11/1968	-	Active	NO
2	U35999TN1976PTC007223	MADRAS ENGINEERING INDUSTRIES PRIVATE LIMITED	Managing director	01/11/2009	17/11/1976	11/02/2014	Active	NO
3	U72200TN2011PTC078721	INDIX INTERNET INDIA PRIVATE LIMITED	Director	06/01/2011	06/01/2011	11/02/2014	Active	NO
4	U72900TN2012PTC088309	INDIXSHOP INTERNET PRIVATE LIMITED	Director	01/11/2012	01/11/2012	11/02/2014	Active	NO

Name :

Mrs. Radha Parthasarathy

Designation :

Director

Address :

14, Sathyanarayana Avenue, Chennai – 600028, Tamilnadu, India

Date of Birth/Age :

21.12.1940

Date of Appointment :

17.11.1976

PAN No.:

AAAPP7813N

DIN No.:

00947986

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	U34103TN1968PTC005665	KARKIT PRIVATE LIMITED	Director	27/11/1968	27/11/1968	-	Active	NO
2	U35999TN1976PTC007223	MADRAS ENGINEERING INDUSTRIES PRIVATE LIMITED	Whole-time director	14/02/2014	17/11/1976	-	Active	NO

Name :

Mr. Sriram Sivaram

Designation :

Whole-time director

Address :

14, Sathyanarayana Avenue, Chennai – 600028, Tamilnadu, India

Date of Birth/Age :

18.04.1968

Date of Appointment :

02.02.2006

PAN No.:

AACPS3906M

DIN No.:

01070444

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	U35999TN1976PTC007223	MADRAS ENGINEERING INDUSTRIES PRIVATE LIMITED	Whole-time director	02/02/2006	02/02/2006	-	Active	NO
2	U99999DL1959PLC176013	AUTOMOTIVE COMPONENT MANUFACTURERS ASSOCIATION OF INDIA	Director	06/09/2011	06/09/2011	05/09/2013	Active	NO
3	U85320TN1999NPL041989	YOUNG PRESIDENTS ORGANISATION (CHENNAI CHAPTER)	Director	02/12/2013	07/10/2013	-	Active	NO

Name :

Mrs. Priya Sriram

Designation :

Managing director

Address :

14, Sathyanarayana Avenue, Chennai – 600028, Tamilnadu, India

Date of Birth/Age :

06.04.1968

Date of Appointment :

20.04.2007

PAN No.:

AAAPP7815L

DIN No.:

02532252

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	U35999TN1976PTC007223	MADRAS ENGINEERING INDUSTRIES PRIVATE LIMITED	Managing director	03/12/2012	20/04/2007	-	Active	NO

KEY EXECUTIVES

Name :	Mr. A Raghavan
Designation :	Company Secretary
Address :	Plot No. 237, 7^th Cross Extn., Heritage Jayendra Nagar, Sembakkam, Chennai – 600 073, Tamilnadu, India
Tel No.:	91-44-22782232

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares
E K Parthasarathy (HUF)	12500
Radha Parthasarathy	181333
E K Parthasarathy	871000
Priya Parthasarathy	17833
Sanjay Parthasarathy	17334
Sundram Fasteners Limited	125000
John Bruce, UK.	350000
Total	1575000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	22.00
Bodies corporate	8.00
Directors or relatives of directors	70.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Automobile Parts.

Products :

Products Category	ITC Code
Automatic Slack Adjusters	8708

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

• State Bank of India, Commercial Branch, No.232 NSC Bose Road, Chennai - 600001, Tamil Nadu, INDIA
• Standard Chartered Bank, 19 Rajaji Salai, Chennai – 600001, Tamil Nadu, INDIA

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Term Loan From Banks
Foreign currency term loan from banks (To be repaid in 16 equal monthly installments of USD 937500 commencing from 15^th September, 2012)	462.375	629.241
Other Loan and Advances	127.053	0.000
Short Term Borrowing
Working capital loans from banks	169.245	85.726
Total	758.673	714.967

Banking Relations :	--
Auditors :
Name :	Natraj Associates Chartered Accountants
Address :	288, TTK Road, Alwarpet, Chennai – 600 018, Tamilnadu, India
PAN:	AAAFN0364N
Associates :	John Bruce Limited, United Kingdom

CAPITAL STRUCTURE

As on: 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,575,000	Equity Shares	Rs.10/- each	Rs. 15.750 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	15.750	15.750	15.750
(b) Reserves & Surplus	798.922	725.335	558.963
(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)	814.672	741.085	574.713
(3) Non-Current Liabilities
(a) long-term borrowings	589.428	629.241	0.000
(b) Deferred tax liabilities (Net)	4.738	24.366	25.734
(c) Other long term liabilities	0.550	0.550	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	594.716	654.157	25.734
(4) Current Liabilities
(a) Short term borrowings	169.245	85.726	38.001
(b) Trade payables	119.139	138.919	138.595
(c) Other current liabilities	325.847	275.388	99.443
(d) Short-term provisions	2.453	22.249	23.008
Total Current Liabilities (4)	616.684	522.282	299.047
TOTAL	2026.072	1917.524	899.494
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1354.963	649.396	348.621
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	21.531	242.442	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.177	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	9.901	153.578	56.549
(e) Other Non-current assets	0.804	0.958	0.607
Total Non-Current Assets	1388.376	1046.374	405.777
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	118.422	110.447	83.655
(c) Trade receivables	264.337	314.116	316.829
(d) Cash and cash equivalents	134.725	365.949	65.131
(e) Short-term loans and advances	19.418	19.293	6.111
(f) Other current assets	100.794	61.345	21.991
Total Current Assets	637.696	871.150	493.717
TOTAL	2026.072	1917.524	899.494

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES TURNOVER		1862.170	2368.700	2061.730
	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		156.350	297.459	300.661
Less	FINANCIAL EXPENSES		45.096	23.072	17.392
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		111.254	274.387	283.269
Less/ Add	DEPRECIATION/ AMORTISATION		56.932	41.663	36.036
	PROFIT BEFORE TAX		54.322	232.724	247.233
Less	TAX		(19.264)	29.740	50.198
	PROFIT AFTER TAX		73.586	202.984	197.035
Less	APPROPRIATIONS
		General reserve	0.000	20.500	20.000
		Interim Dividend	0.000	15.750	15.750
		Proposed Dividend	0.000	15.750	15.750
		Tax on Dividend	0.000	5.112	5.171
		Total (M)	0.000	57.112	56.671
	BALANCE CARRIED TO THE B/S		73.586	145.872	140.364
	EARNINGS IN FOREIGN CURRENCY		675.119	742.400	657.500
	Earnings Per Share (Rs.)		46.72	128.88	125.10

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	2.71	13.89	27.49
Return on Investment (ROI) (PBT/Networth)		0.07	0.31	0.43
Debt Equity Ratio (Total Debt/Networth)		0.93	0.96	0.07
Current Ratio (Current Asset/Current Liability)		1.03	1.67	1.65

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	15.750	15.750	15.750
Reserves & Surplus	558.963	725.335	798.922
Net worth	574.713	741.085	814.672
long-term borrowings	0.000	629.241	589.428
Short term borrowings	38.001	85.726	169.245
Total borrowings	38.001	714.967	758.673
Debt/Equity ratio	0.066	0.965	0.931

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 Turnover	2061.730	2368.700	1862.170
		14.889	(21.384)

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 Turnover	2061.730	2368.700	1862.170
Profit	197.035	202.984	73.586
	9.56%	8.57%	3.95%

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	No
10]	Designation of contact person	No
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	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	10523235	22/05/2014	51,000,000.00	STANDARD CHARTERED BANK	19, RAJAJI SALAI, CHANNAI, TAMILNADU - 600001, INDIA	C24714321
2	10404266	28/12/2012	46,936,500.00	STANDARD CHARTERED BANK	19 RAJAJI SALAI, CHENNAI, TAMILNADU - 600001, INDIA	B68579770
3	10324857	02/09/2014 *	175,000,000.00	STANDARD CHARTERED BANK	19 RAJAJI SALAI, CHENNAI, TAMILNADU - 600001, INDIA	C18923243
4	10299229	02/09/2014 *	843,700,000.00	STANDARD CHARTERED BANK	19 RAJAJI SALAI, CHENNAI, TAMILNADU - 600001, INDIA	C19229541
5	90293838	31/07/1999	330,600.00	INDIA EQUIPMENT LEASING LTD	21 PATULLOS ROAD, CHENNAI, TAMILNADU - 600000, INDIA	-
6	90293442	24/05/1988	300,000.00	LAKSHMI GENERAL FINANCE LTD	21 PATULLOS ROAD MADRAS, MADRAS, TAMILNADU - 600  002, INDIA	-
7	90287164	27/03/2014 *	507,300,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, NO.232 NSC BOSE ROAD, CHENNAI,  TAMILNADU - 600001, INDIA	C04777777
8	90293423	08/08/1985	319,500.00	HERITA FINANCE& SECURITIES P LTD	106 I V STREET ABHIRAMAPURA M, MADRAS, TAMILNADU  - 600018, INDIA	-
9	90291681	05/09/1977	700,000.00	INDIAN BANK	HARBOUR BRANCH, MADRAS, TAMILNADU - 600001, INDIA	-

Date of charge modification

FIXED ASSETS:

• Land
• Building
• Plant and equipment
• Furniture and fixture
• Vehicles
• Office Equipments
• Goolwill

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.61.46
UK Pound	1	Rs.98.77
Euro	1	Rs.77.65

INFORMATION DETAILS

Information Gathered by :	HLT
Analysis Done by :	RSM
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	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		48

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.