MIRA INFORM REPORT

Report Date :

10.09.2014

IDENTIFICATION DETAILS

Name :	CIPSA TEC INDIA PRIVATE LIMITED (w.e.f. 03.03.2011)
Formerly Known As :	CIPSA-RIC INDIA PRIVATE LIMITED
Registered Office :	Plot No. 7 & 8, S. No. 97, 98 & 121, Hire Halli Industrial Area, Tumkur – 572168, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.11.2005
Com. Reg. No.:	08-037765
Capital Investment / Paid-up Capital :	Rs. 201.761 Millions
CIN No.: [Company Identification No.]	U30007KA2005PTC037765
PAN No.: [Permanent Account No.]	AACCC7122N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Printed Circuit Boards.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exists
Comments :	Subject is an established company having a moderate track record. Reserves of the company seems to be low during 2013. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : “B”
Rating Explanation	Have high risk of default.
Date	16.07.2014

Rating Agency Name	CRISIL
Rating	Short term rating : “A4”
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	16.07.2014

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 (GENERAL DETAILS)

Name :	Mr. R. V. Sudhakar
Designation :	Sales and Marketing Department
Contact No.:	91-9845344267
Date :	09.09.2014

LOCATIONS

Registered Office/ Factory:	Plot No. 7 & 8, S. No. 97, 98 & 121, Hire Halli Industrial Area, Tumkur – 572168, Karnataka, India
Tel. No. :	91-816-2243400/ 2243700
Mobile No. :	91-9845344267 (Mr. R. V. Sudhakar)
Fax No. :	91-816-2243700
E-Mail :	pkprabhakar@cipsatec.com venkat@cipsaric.com
Website :	www.cipsatec.com
Location :	Owned

DIRECTORS

As on 30.09.2013

Name :

Mr. Anil Gupta

Designation :

Director

Address :

No 62/2, Palm Medadows, White Field, Airport Road, Bangalore - 560066, Karnataka, India

Date of Birth/Age :

28.09.1962

Date of Appointment :

25.11.2005

DIN No. :

00101079

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	U72200KA1998PTC024513	CONVERGENT COMMUNICATIONS (INDIA) PRIVATE LIMITED	Nominee director	14-03-2011	11-12-1998	27-04-2012	Active	NO
2	U28998KA1989PTC009813	TUNGABADRA DAIRY PROUDUCTS PRIVATE LIMITED	Director	01-03-2002	01-03-2002	-	Strike off	NO
3	U72900KA2001PTC029813	CONVERGENT WIRELESS COMMUNICATIONS PRIVATE LIMITED	Director	01-03-2002	01-03-2002	30-03-2012	Active	NO
4	U30007KA2005PTC037765	CIPSA TEC INDIA PRIVATE LIMITED	Director	25-11-2005	25-11-2005	-	Active	NO
5	U32109KA2007PTC043071	INDIC EMS ELECTRONICS PRIVATE LIMITED	Whole-time director	21-02-2014	08-06-2007	-	Active	NO
6	U29299KA2007PTC043346	ELSU REPOINTING ASIA PRIVATE LIMITED	Director	10-07-2007	10-07-2007	25-11-2008	Active	NO
7	U74140KA2009PTC051090	HT TRACK TEST INDIA PRIVATE LIMITED	Director	05-10-2009	05-10-2009	06-03-2010	Active	NO
8	U32204KA2011PTC060178	CIRCUIT MAKERS PRIVATE LIMITED	Director	16-01-2012	16-01-2012	-	Active	NO

Name :

Mr. Alok Garg

Designation :

Managing Director

Address :

104, Adarash Palm Meadows-1, Whitefield Road Ramagondanahalli, Bangalore - 560066, Karnataka, India

Date of Birth/Age :

12.08.1959

Date of Appointment :

25.11.2005

PAN No.:

AGJPA0753B

DIN No. :

00224641

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	U30007KA2005PTC037765	CIPSA TEC INDIA PRIVATE LIMITED	Managing director	25-11-2005	25-11-2005	-	Active	NO
2	U32109KA2007PTC043071	INDIC EMS ELECTRONICS PRIVATE LIMITED	Director	08-06-2007	08-06-2007	11-02-2014	Active	NO
3	U29299KA2007PTC043346	ELSU REPOINTING ASIA PRIVATE LIMITED	Director	10-07-2007	10-07-2007	25-11-2008	Active	NO
4	U74140KA2009PTC051090	HT TRACK TEST INDIA PRIVATE LIMITED	Director	05-10-2009	05-10-2009	16-03-2010	Active	NO
5	U32204KA2011PTC060178	CIRCUIT MAKERS PRIVATE LIMITED	Director	26-08-2011	26-08-2011	-	Active	NO

Name :

Soh Yew Hock

Designation :

Additional Director

Address :

Apt Blk 601, 62 # 06 - 17, Choa Chu Cang Street, 680601, Singapore

Date of Appointment :

15.03.2014

DIN No. :

06842264

Name :

Low Kean Boon

Designation :

Additional Director

Address :

Apt Blk 698b, 61 #09-322, Hougang Street, 532698, Singapore

Date of Appointment :

15.03.2014

DIN No. :

06842268

Name :

Tan Saik Lian

Designation :

Additional Director

Address :

31 Amber Road #22-08, Singapore, 439943

Date of Appointment :

15.03.2014

DIN No. :

06844266

KEY EXECUTIVES

Name :	Mr. R. V. Sudhakar
Designation :	Sales and Marketing Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Alok Garg	4392126	21.77
Anil Gupta	4392123	21.77
Cipsa Laster SL	2284634	11.32
Circuitios Impresos Profesionales SA, Spain	5105252	25.30
Rodriguez Y Michavila Asesories Financieros, Spain	1689346	8.37
Tecnomec SRL	2297831	11.39
Sangita Gupta	7381	0.04
Poonam Alok Garg	7378	0.04
Total	20176071	100.00

Allottee as on 31.03.2014

Names of Allottee	No. of Shares
Circuit Makers (S) Pte. Limited, Singapore	18596945
Total	18596945

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	55.00
Directors or relatives of Directors	45.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Printed Circuit Boards.

Products :

Item Code No. (ITC Code)	Product Description
99811294	Services in Electrical

Exports :

Products :

Finished Goods

Countries :

· Europe

USA

Imports :

Products :

Raw Material

Countries :

· China

Hong Kong

Taiwan

UK

GENERAL INFORMATION

No. of Employees :

400 (Approximately)

Bankers :

Corporation Bank, Corporate Banking Branch, Rallaram Building, No. 30, Mission Road, Bangalore - 560027, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	51.158	120.167
SHORT TERM BORROWINGS
Rupee term loans from banks	301.043	159.473
Total	352.201	279.640

Banking Relations :	--
Auditors :
Name :	S Krishnaswamy and Company Chartered Accountants
Address :	No. 389/1, 7th Main, 42 cross, 5th Block, Jayanagar, Bangalore, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AAYFS5079B
Associates :	· Circuit Makers Private Limited CIN No.: U32204KA2011PTC060178 Indic EMS Electronics Private Limited CIN No.: U32109KA2007PTC043071 Circuitos Impresos Profesionales S. A Tecno Mec SRL

CAPITAL STRUCTURE

After 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
41,000,000	Equity Shares	Rs.10/- each	Rs. 410.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38,773,016	Equity Shares	Rs.10/- each	Rs. 387.730 Millions

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
21,000,000	Equity Shares	Rs.10/- each	Rs. 210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20,176,071	Equity Shares	Rs.10/- each	Rs. 201.761 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	201.761	201.761	201.761
(b) Reserves & Surplus	0.472	(9.246)	35.515
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.932
Total Shareholders’ Funds (1) + (2)	202.233	192.515	238.208
(3) Non-Current Liabilities
(a) long-term borrowings	55.575	127.069	234.862
(b) Deferred tax liabilities (Net)	8.675	14.293	18.631
(c) Other long term liabilities	35.265	42.075	2.308
(d) long-term provisions	5.106	3.645	2.118
Total Non-current Liabilities (3)	104.621	187.082	257.919
(4) Current Liabilities
(a) Short term borrowings	301.043	159.473	180.842
(b) Trade payables	172.690	246.763	156.472
(c) Other current liabilities	124.365	114.266	94.258
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	598.098	520.502	431.572
TOTAL	904.952	900.099	927.699
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	424.790	501.995	597.316
(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	0.060	0.060	4.060
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	9.492	6.071	2.870
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	434.342	508.126	604.246
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	241.965	198.843	159.176
(c) Trade receivables	193.642	157.846	127.092
(d) Cash and cash equivalents	17.320	23.416	20.534
(e) Short-term loans and advances	16.419	11.224	16.241
(f) Other current assets	1.264	0.644	0.410
Total Current Assets	470.610	391.973	323.453
TOTAL	904.952	900.099	927.699

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	574.805	647.619	593.644
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		TOTAL (B)	NA	NA	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		134.659	89.678	NA
Less	FINANCIAL EXPENSES (D)		68.566	72.607	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		66.093	17.071	45.757
Less/ Add	DEPRECIATION/ AMORTISATION (F)		61.992	66.171	67.037
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		4.101	(49.100)	(21.280)
Less	TAX (H)		(5.617)	(3.932)	(6.776)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		9.718	(45.168)	(14.504)
	EARNINGS IN FOREIGN CURRENCY
		Printed Circuit Boards			167.600
	TOTAL EARNINGS		91.000	195.000	167.600
	IMPORTS
		Raw Materials			120.493
		Stores & Spares			118.671
		Capital goods			14.517
	TOTAL IMPORTS		NA	NA	253.681
	Earnings / (Loss) Per Share (Rs.)		0.48	(2.24)	(0.72)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	0.71	(7.58)	(3.58)
Return on Total Assets (PBT/Total Assets}	(%)	0.45	(5.46)	(2.30)
Return on Investment (ROI) (PBT/Networth)		0.02	(0.26)	(0.09)
Debt Equity Ratio (Total Debt/Networth)		1.76	1.49	1.75
Current Ratio (Current Asset/Current Liability)		0.79	0.75	0.75

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	201.761	201.761	201.761
Reserves & Surplus	35.515	(9.246)	0.472
Share Application money pending allotment	0.932	0.000	0.000
Net worth	238.208	192.515	202.233
long-term borrowings	234.862	127.069	55.575
Short term borrowings	180.842	159.473	301.043
Total borrowings	415.704	286.542	356.618
Debt/Equity ratio	1.745	1.488	1.763

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	593.644	647.619	574.805
		9.092	(11.243)

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	593.644	647.619	574.805
Profit	(14.504)	(45.168)	9.718
	(2.44%)	(6.97%)	1.69%

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	Yes
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	Yes
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

LITIGATION DETAILS

CASE PENDING

High Court of Karnataka -Bangalore Bench

COP 50/2014

Petitioner/ SAppnt. Name	CIRCUIT FOIL LUXEMBOURG S.A.R.1		Respondent/ Defnt. Name	M/S CIPSA TEC INDIA PRIVATE LIMITED
Petnr./ Appnt. Advocate	RAJESWARA P N		Respnt./ Defnt. Advocate	PUTTIGE R RAMESH
Date Filed	07/03/2014	Classification	District	Out Of State

Stage	PENDING FOR ADMISSON	Last Posted For	ADMISSION
Last Action Taken	ADJOURNED	Last Date of Action	04/09/2014	Next Hearing Date
Latest Order	LIST AFTER 2 WKS FOR SETTLEMENT
Before Hon'ble Judge/s	A.S.BOPANNA

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80004746	08/07/2013 *	501,100,000.00	CORPORATION BANK	CORPORATE BANKING BRANCH, RALLARAM BUILDING, NO. 30, MISSION ROAD, BANGALORE, KARNATAKA - 560027, INDIA	B79761508

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from others	4.417	6.902
Total	4.417	6.902

CHANGE OF ADDRESS

The registered office of the company has been shifted from Plot No. 20, KIADB Industrial Area, Doddaballapura, Bangalore Rural District, Bangalore – 561203, Karnataka, India to the present address w.e.f. 30.11.2009.

FIXED ASSETS

Tangible Assets

· Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

Motor Vehicles

Office Equipment

Computer Equipments

Other Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.43
UK Pound	1	Rs.97.25
Euro	1	Rs.77.93

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		27

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.