MIRA INFORM REPORT

Report Date :

13.10.2014

IDENTIFICATION DETAILS

Name :	SONI AUTO AND ALLIED INDUSTRIES LIMITED(w.e.f. 06.06.2007)
Formerly Known As :	SONI AUTO AND ALLIED INDUSTRIES PRIVATE LIMITED
Registered Office :	Plot No. M-19, Vith Phase, Adityapur Industrial Area, Gamharia, Jamshedur – 831001, Jharkhand
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	19.10.1984
Com. Reg. No.:	03-002045
Capital Investment / Paid-up Capital :	Rs.37.404 Millions
CIN No.: [Company Identification No.]	U50300JH1984PLC002045
TAN No.: [Tax Deduction & Collection Account No.]	RCHS00633D
PAN No.: [Permanent Account No.]	AAECS3393K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of all kind of Leaf Springs.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 670700
Status :	Satisfactory
Payment Behavior :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s sound financial risk profile and fair liquidity position of the company. 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 condition.

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	Moderate degree of safety and moderate credit risk
Date	January 16, 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. Niraj
Designation :	Finance Department
Contact No.:	91-7488157035
Date :	10.10.2014

LOCATIONS

Registered Office/Factory 1 :	Plot No. M-19, Vith Phase, Adityapur Industrial Area, Gamharia, Jamshedur – 831001, Jharkhand, India
Tel. No.:	91- 657-3297781/3292455
Mobile No.:	91-7488157035 (Mr. Niraj)
Fax No.:	91-657-2202371
E-Mail :	sonico@soniauto.com soniauto@satyam.net.in
Website :	http://www.sonicoleafsprings.com
Corporate Office :	467 & 468, Marshall House (4th Floor), 25 Strand Road, Kolkata-700001, West Bengal, India
Tel. No.:	91- 33-30284828
Fax No.:	91- 33-22307828
E-Mail :	http://www. essc@cal.vsnl.net.in.
Factory 2 :	Plot No. A 21 (P) A 22 (F) 23 (P), Village-Sidadih, Thana No. -70, Large Sector, Gamharia, Jamshedpur – 832108, Jharkhand, India

DIRECTORS

As on: 10.09.2014

Name :

Mr. Bhajanlal A. Jhunjhunwala

Designation :

Director

Address :

2-Aucland Square Circus, Avenue Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

17.12.1943

Date of Appointment :

21.06.2007

DIN:

00422948

Name :

Mr. Rajeev Jhunjhunwala

Designation :

Managing Director

Address :

2-Aucland Square Circus, Avenue Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

30.01.1969

Date of Appointment :

30.11.1995

DIN:

00422944

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	U50300JH1984PLC002045	SONI AUTO & ALLIED INDUSTRIES LIMITED	Managing director	21/06/2007	30/11/1995	-	Active	NO
2	U51109WB1994PTC065614	New Rain Papers Private Limited	Director	11/06/2002	11/06/2002	-	Active	NO
3	U51109WB1994PTC065581	NEW RAIN (BANGALORE) PAPER AGENCIES PRIVATE LIMITED	Director	11/06/2002	11/06/2002	-	Active	NO
4	U51909WB1994PTC066158	New Rain Commodities Private Limited	Director	11/06/2002	11/06/2002	-	Active	NO
5	U50300JH1970PTC000880	PRAVAT FABRICATORS PRIVATE LIMITED	Director	27/08/2005	27/08/2005	-	Active	NO
6	U27100WB2008PTC123510	P. B. Ispat Private Limited	Director	04/03/2008	04/03/2008	-	Active	NO
7	U52100WB2010PTC146503	FAIRWAY DEALCOM PRIVATE LIMITED	Director	03/05/2010	03/05/2010	-	Active	NO
8	U52100WB2010PTC146502	SKYLINE DEALTRADE PRIVATE LIMITED	Director	03/05/2010	03/05/2010	-	Active	NO
9	U52100WB2010PTC146501	GREENVIEW COMMOTRADE PRIVATE LIMITED	Director	03/05/2010	03/05/2010	-	Active	NO
10	U51109WB2007PTC120211	SANCHIT TRADE-LINK PRIVATE LIMITED	Director	31/05/2010	31/05/2010	-	Active	NO
11	U52100WB2010PTC143774	PROBE DISTRIBUTORS PRIVATE LIMITED	Director	18/02/2013	18/02/2013	-	Active	NO
12	U45208WB2007PTC114555	LOFTY DEVELOPERS PRIVATE LIMITED	Director	18/02/2013	18/02/2013	-	Active	NO

Name :

Ms. Pushpa Devi Jhunjhunwala

Designation :

Director

Address :

2-Aucland Square Circus, 3^rd Floor, Avenue Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

02.07.1949

Date of Appointment :

01.03.2005

DIN:

00422990

Name :

Ms. Preeti Jhunjhunwala

Designation :

Director

Address :

2-Aucland Square Circus, Avenue Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

04.11.1971

Date of Appointment :

01.03.2005

DIN:

00422953

Name :

Mr. Bhagwati Prasad Bagla

Designation :

Director

Address :

218 B, Chittaranjan Avenue, Kolkata – 700 006, West Bengal, India

Date of Birth/Age :

15.08.1933

Date of Appointment :

30.11.1995

DIN:

00422984

Name :

Mr. Rajib Kumar Lalwani

Designation :

Director

Address :

Udita, Flat No. UDO 30407, 1050 / 1, Survey Park, Kolkata – 700 075, West Bengal, India

Date of Birth/Age :

08.08.1962

Date of Appointment :

21.06.2007

DIN:

00422942

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	U50300JH1984PLC002045	SONI AUTO & ALLIED INDUSTRIES LIMITED	Managing director	21/06/2007	15/06/2006	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 10.09.2014

Names of Shareholders	No. of Shares
Mr. Rajeev Jhunjhunwala	31863
Ms. Pushpa Devi Jhunjhunwala	67971
Ms. Preeti Jhunjhunwala	39010
Ms. Poonam Devi Bagla	150
Mrs. Yamini Khandelwal	7500
Mr. Bhanjanlal Jhunjhunwala	48844
Bhanjanlal Jhunjhunwala (HUF) and Others	10000
Rajeev Jhunwal Assocites and Others (HUF)	23000
Mrs. Parvati Devi Bhuwania	2
P.B. Ispat Private Limited	145700
Total	374040

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2014

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]
Bodies corporate	38.95
Directors or relatives of directors	59.05
Other top fifty shareholders	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of all kind of Leaf Springs.
Products :	Leaf Spring Assemblies Parabolic leaf Spring
Exports :
Products :	Leaf Springs
Countries :	Bangladesh Nepal
Imports :
Products :	Machineries
Countries :	China Germany
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

GENERAL INFORMATION

Customers :

Wholesalers and Retialers

No. of Employees :

300 (Approximately)

Bankers :

• Union Bank of India Main Branch, Jamshedpur Kamani Centre, Bistupur, Jamshedpur, Jharkhand, India
• State Bank Of India, SME Branch, Adityapur, Jamshedpur, Jamshedpur - 831013, Jharkhand, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Term Loan From Bank. (Payable in equated monthly installment)	0.472	0.745
Term Loan From Bank (Secured by hypothecation of stock bill and all movable Assets)	7.859	8.038
Short Term Borrowing
From Bank
Working Capital Loan from bank (Hypothecations of inventories and Receivable)	80.442	91.130
Buyers Credit From Bank (Financed Against Purchase of Machinery payable in one year)	8.641	7.385
Letter of Credit (For Purchase of Raw Material payable Within 1 Year)	9.776	0.000
Total	107.190	107.298

Banking Relations :	--
Auditors :
Name :	R. K. Dua and Company Chartered Accountants
Address :	19, Ram Mandir Area, 2^nd Floor, Opposites Punjab National Bank, Bistupur, Jamshedpur – 831 001, Jharkhand, India
Tel. No.:	91-657-2321380/ 2756061
Fax No.:	91-657-2756060

CAPITAL STRUCTURE

As on: 30.09.2014

Authorized Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs.100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
374,040	Equity Shares	Rs.10/- each	Rs. 27.404 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	37.404	34.704	34.704
(b) Reserves & Surplus	130.250	118.011	109.339
(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)	167.654	152.715	144.043
(3) Non-Current Liabilities
(a) long-term borrowings	8.331	8.783	0.986
(b) Deferred tax liabilities (Net)	3.859	1.550	1.665
(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)	12.190	10.333	2.651
(4) Current Liabilities
(a) Short term borrowings	98.859	98.515	109.315
(b) Trade payables	53.927	22.392	47.189
(c) Other current liabilities	1.693	3.594	1.377
(d) Short-term provisions	2.798	6.245	6.095
Total Current Liabilities (4)	157.277	130.746	163.976
TOTAL	337.121	293.794	310.670
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	118.326	116.855	88.708
(ii) Intangible Assets	0.000	0.000	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	0.300	0.300	0.200
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.471	4.339	13.887
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	123.097	121.494	102.795
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	127.870	100.748	141.362
(c) Trade receivables	59.786	41.575	37.498
(d) Cash and cash equivalents	7.126	12.071	10.620
(e) Short-term loans and advances	3.753	10.531	6.825
(f) Other current assets	15.489	7.375	11.570
Total Current Assets	214.024	172.300	207.875
TOTAL	337.121	293.794	310.670

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	c652.407	791.849	911.797
		Other Income	8.107	1.328	1.038
		TOTAL (A)	660.514	793.177	912.835
			[Due to market fluctuation]
Less	EXPENSES
		Cost of Materials Consumed	464.035	555.980	639.874
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6.074)	7.061	22.704
		Employees benefits expense	28.213	24.543	26.234
		Other expenses	143.828	167.972	187.493
		TOTAL (B)	630.002	755.556	876.305
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		30.512	37.621	36.530
Less	FINANCIAL EXPENSES (D)		9.024	11.089	10.162
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.488	26.532	26.368
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.808	12.389	12.174
	PROFIT BEFORE TAX (E-F) (G)		7.680	14.143	14.194
Less	TAX (H)		3.772	4.587	4.496
	PROFIT AFTER TAX (G-H) (I)		3.908	9.556	9.698
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		54.434	45.761	36.870
Less	APPROPRIATIONS
		Propose Dividend	0.694	0.694	0.695
		1 Tax for Earlier Years	0.042	0.077	0.000
		Tax on Dividend	0.112	0.112	0.112
	BALANCE CARRIED TO THE B/S		57.494	54.434	45.761
	Earnings Per Share (Rs.)		11.12	27.54	27.95

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.59	1.20	1.06
Net Profit Margin (PBT/Sales)	(%)	1.18	1.79	1.56
Return on Total Assets (PBT/Total Assets}	(%)	2.28	4.82	4.57
Return on Investment (ROI) (PBT/Networth)		0.05	0.09	0.10
Debt Equity Ratio (Total Debt/Networth)		0.64	0.70	0.77
Current Ratio (Current Asset/Current Liability)		1.36	1.32	1.27

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	34.704	34.704	37.404
Reserves & Surplus	109.339	118.011	130.250
Net worth	144.043	152.715	167.654
long-term borrowings	0.986	8.783	8.331
Short term borrowings	109.315	98.516	98.859
Total borrowings	110.301	107.299	107.190
Debt/Equity ratio	0.766	0.703	0.639

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	911.797	791.849	652.407
		(13.155)	(7.610)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	911.797	791.849	652.407
Profit	9.698	9.556	3.908
	1.06%	1.21%	0.60%

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 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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES:

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10034890	31/07/2014 *	138,300,000.00	STATE BANK OF INDIA	SME BRANCH, ADITYAPUR, JAMSHEDPUR, JHARKHAND - 83  1013, INDIA	C18196741

* Date of charge modification

FIXED ASSETS:

• Land
• Buildings
• Factory Shed
• Plant and Machinery
• Electric Installation
• Air Conditioner
• Furniture and Fixtures
• Tools and Implements
• Type Writer
• T V S Moped
• Bicycle
• Scooters
• Generators
• Computer and Accessories
• EPBAX System
• Fax Machine
• Car Truck
• Flat
• Office Equipment
• Vehicle

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.61.16
UK Pound	1	Rs.98.62
Euro	1	Rs.77.67

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KRN
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.