MIRA INFORM REPORT

Report Date :

09.09.2014

IDENTIFICATION DETAILS

Name :	LAKSHMI ELECTRICAL CONTROL SYSTEMS LIMITED
Registered Office :	No.34 A, Kamaraj Road, Coimbatore – 641018, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	03.12.1981
Com. Reg. No.:	18-001124
Capital Investment / Paid-up Capital :	Rs.24.580 Millions
CIN No.: [Company Identification No.]	L31200TZ1981PLC001124
TAN No.: [Tax Deduction & Collection Account No.]	CMBL03019C
PAN No.: [Permanent Account No.]	AAACL3737E
Legal Form :	A Public Limited Liability Company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the design, manufacture, and installation of control panels along with manufacturing engineering plastic components including thermo plastic injection moulding machines, further eventually forayed into generation of wind power.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 3100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal 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

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 tat 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=A-
Rating Explanation	Adequate degree of safety. It carry low credit risk.
Date	16.05.2014

Rating Agency Name	CRISIL
Rating	Short term rating=A1
Rating Explanation	Very strong degree of safety. And carry lowest credit risk.
Date	16.05.2014

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

Management Non Co-operative (91-422-3093500)

LOCATIONS

Registered Office :	No.34 A, Kamaraj Road, Coimbatore – 641018, Tamilnadu, India
Tel. No.:	91-422-3093500
Fax No.:	91-422-2360307
E-Mail :	secretary@lecsindia.com investorscell@lecsindia.com
Website :	www.lecsindia.com
Admin. Office / Works :	Arasur, Coimbatore – 641407, Tamilnadu, India

DIRECTORS

AS ON 31.03.2014

Name :	Mrs. Nethra J.S. Kumar
Designation :	Chairperson and Managing Director
Name :	Mr. N. Suryakumar
Designation :	Director
Name :	Mr. Sanjay Jayavarthanavelu
Designation :	Director
Name :	Mr. D. Senthilkumar
Designation :	Director
Name :	Mr. Ramesh Rudrappan
Designation :	Director
Name :	Mr. A. Palaniappan
Designation :	Director
Name :	Mr. Arun Selvaraj
Designation :	Director

KEY EXECUTIVES

Name :	Mr. B. Satish Krishnan
Designation :	Company Secretary

SHAREHOLDING PATTERN

AS ON 30.06.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	512187	20.84
Bodies Corporate	131206	5.34
Sub Total	643393	26.18
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	643393	26.18
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	50	0.00
Financial Institutions / Banks	200	0.01
Sub Total	250	0.01
(2) Non-Institutions
Bodies Corporate	390772	15.90
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1121662	45.63
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	189762	7.72
Any Others (Specify)	112161	4.56
Directors & their Relatives & Friends	103	0.00
Non Resident Indians	18647	0.76
Overseas Corporate Bodies	1150	0.05
Clearing Members	20135	0.82
Hindu Undivided Families	72076	2.93
Foreign Nationals	50	0.00
Sub Total	1814357	73.81
Total Public shareholding (B)	1814607	73.82
Total (A)+(B)	2458000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	2458000	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the design, manufacture, and installation of control panels along with manufacturing engineering plastic components including thermo plastic injection moulding machines, further eventually forayed into generation of wind power.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Indian Bank

· Bank of Baroda

· Indian Overseas Bank

· HDFC Bank Limited

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Short Term Borrowings
Loans repayable on Demand-Secured
From Banks
Indian Bank-Limit Rs.5 Crores [Security - Paripassu First charge on entire Current Assets of the Company with Bank of Baroda. Secured by Equitable Mortgage by way of deposit of the title deeds of the properties of the Company situated at SF No.147 an extent of 3.35 acres of land, SF No.145/2 an extent of 1.37 acres of land and SF No.145/2B2 an extent of 1.33 acres of land. Interest Rate - 11.20 % p.a. Period of default : Nil]	17.370	5.801
Bank of Baroda-Limit Rs.2.5 Crores [Security - Paripassu First charge on the entire Current Assets of the Company with Indian Bank. Interest Rate - 12.50 % p.a. Period of default : Nil]	14.940	23.418
Total	32.310	29.219

Banking Relations :	--
Auditors :
Name :	N.R. Doraiswami and Company Chartered Accountants
Address :	Coimbatore, Tamilnadu, India
Other related parties :	· Eshann Enterprises Limited · GKD ITR Tooling Center · Harshni Textiles Limited · Integrated Electrical Controls India Limited · Lakshmi Precision Tools Limited · Lakshmi Electrical Drives Limited · Lakshmi Ring Travellers (cbe) Limited · Lakshmi Cargo Company Limited · Lakshmi Technology and Engineering Industries Limited · Lakshmi Life Sciences Limited · LCC Cargo Holding Limited · Lakshmi Machine Works Limited · Mahalaxmi Engineering Holding Limited · Quattro Engineering India Limited · Starline Travels Limited · Sun Spintex Limited · Titan HMG Paints India Limited · Venkata Varadhaa Agencies Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs.50.000 Millions
20000	13.5% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.2.000 Millions
	Total		Rs.52.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2458000	Equity Shares	Rs. 10/- each	Rs.24.580 Millions

· The total number of Shares as on 31/03/2014 and 31/03/2013 are same

· Number of shares held by shareholders holding more than 5% of total shares

Equity Shares	Number of Shares
Smt.Nethra J.S.Kumar	497337
Lakshmi Electrical Drives Limited	131206

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	24.580	24.580	24.580
(b) Reserves & Surplus	764.357	715.083	682.789
(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)	788.937	739.663	707.369
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	6.902	8.311	16.767
(c) Other long term liabilities	1.350	2.320	0.303
(d) long-term provisions	3.327	3.327	3.190
Total Non-current Liabilities (3)	11.579	13.958	20.260
(4) Current Liabilities
(a) Short term borrowings	32.310	29.219	0.000
(b) Trade payables	318.721	261.698	245.261
(c) Other current liabilities	11.776	13.550	13.318
(d) Short-term provisions	20.080	13.970	24.007
Total Current Liabilities (4)	382.887	318.437	282.586
TOTAL	1183.403	1072.058	1010.215
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	137.418	117.084	137.813
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	6.189	0.621	1.186
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	106.960	106.960	106.960
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.300	1.419	1.659
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	251.867	226.084	247.618
(2) Current assets
(a) Current investments	0.000	5.470	10.055
(b) Inventories	154.792	111.844	105.232
(c) Trade receivables	253.537	210.087	270.366
(d) Cash and cash equivalents	446.332	474.482	353.303
(e) Short-term loans and advances	0.472	0.905	1.105
(f) Other current assets	76.403	43.186	22.536
Total Current Assets	931.536	845.974	762.597
TOTAL	1183.403	1072.058	1010.215

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1601.906	1304.437	1639.821
		Other Income	46.076	40.471	21.085
		TOTAL (A)	1647.982	1344.908	1660.906
Less	EXPENSES
		Cost of Materials Consumed	1359.142	1093.556	1309.341
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(14.043)	0.446	2.311
		Employee Benefits Expenses	107.051	105.969	102.435
		Other Expenses	77.730	67.272	78.713
		Exceptional Items	1.027	(4.791)	(19.943)
		TOTAL (B)	1530.907	1262.452	1472.857
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		117.075	82.456	188.049
Less	FINANCIAL EXPENSES (D)		0.629	0.416	0.239
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		116.446	82.040	187.810
Less	DEPRECIATION/ AMORTISATION (F)		23.050	27.856	37.749
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		93.396	54.184	150.061
Less	TAX (H)		29.743	16.139	46.417
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		63.653	38.045	103.644
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		134.028	111.734	232.774
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	10.000	210.400
		Proposed Dividend	12.290	4.916	12.290
		Provision for Corporate Tax on Dividend	2.089	0.835	1.994
	BALANCE CARRIED TO THE B/S		173.302	134.028	111.734
	IMPORTS
		Raw Materials	3.145	0.927	5.576
		Components & Spare Parts	15.355	0.425	4.192
		Capital Goods	19.624	0.000	0.000
	TOTAL IMPORTS		38.124	1.352	9.768
	Earnings Per Share (Rs.)		25.90	15.48	42.17

QUARTERLY RESULTS

(Rs. In Millions)

Particulars	30.06.2014 (Unaudited)
	1^st Quarter
Net Sales	448.700
Total Expenditure	420.700
PBIDT (Excl OI)	28.100
Other Income	10.300
Operating Profit	38.400
Interest	00.300
Exceptional Items	00.300
PBDT	38.400
Depreciation	02.300
Profit Before Tax	36.100
Tax	10.600
Provisions and contingencies	0.000
Profit After Tax	25.500

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	3.86	2.83	6.24
Net Profit Margin (PBT/Sales)	(%)	5.83	4.15	9.15
Return on Total Assets (PBT/Total Assets}	(%)	8.73	5.62	16.64
Return on Investment (ROI) (PBT/Networth)		0.12	0.07	0.21
Debt Equity Ratio (Total Debt /Networth)		0.04	0.04	0.00
Current Ratio (Current Asset/Current Liability)		2.43	2.66	2.70

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	24.580	24.580	24.580
Reserves & Surplus	682.789	715.083	764.357
Net worth	707.369	739.663	788.937
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	29.219	32.310
Total borrowings	0.000	29.219	32.310
Debt/Equity ratio	0.000	0.040	0.041

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	1,639.821	1,304.437	1,601.906
		(20.452)	22.804

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	1,639.821	1,304.437	1,601.906
Profit	103.644	38.045	63.653
	6.32%	2.92%	3.97%

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	No
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

BUSINESS AND OPERATIONS

The Directors inform you that the Turnover including other income for the year under review is Rs.1646.955 Millions as against 1349.699 Millions for the preceding year. The profit before depreciation and tax for the year is Rs.116.445 Millions as against Rs.82.041 Millions for the preceding year. The profit before tax is Rs.93.396 Millions as against Rs.54.185 Millions.

The increase in turnover has been due to improved off take from the customers and also due to expansion of customer base.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian electrical equipment industry has shown some revival in the first half of the current fiscal, after a negative growth of 7.8% in production in 2012-13. Domestic demand, coupled with increase in exports, has managed to keep the industry afloat. In keeping with the trend our company too has posted a positive growth.

There fortunes continue to be tied to the Textile Machinery Manufacturing Industry and the positive growth in that sector during 2013 - 14 has also benefited us favourably.

Overall the trend of demand based on the industrial recovery has been upward during 2014 and this in turn has yielded us good results.

OUTLOOK

They are confident that existing positive growth trend in the country and in our industry should yield us a continual growth in the near term.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80007264	28/06/2006 *	17,500,000.00	BANK OF BARODA	CORPORATE FINANCIAL SERVICES BRANCH, 82,BANK ROAD II FLOOR, COIMBATORE, TAMIL NADU - 641018, INDIA	-
2	80007301	12/03/2014 *	90,000,000.00	INDIAN BANK	COIMBATORE MAIN BRANCH, 31, VARIETY HALL ROAD, CO IMBATORE, TAMIL NADU - 641001, INDIA	C06117360

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant & Equipments

· Furniture & Fixtures

· Vehicles

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 :	PRT
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.