MIRA INFORM REPORT

Report No. :	318174
Report Date :	22.04.2015

IDENTIFICATION DETAILS

Name :	TOSHIBA TRANSMISSION AND DISTRIBUTION SYSTEMS (INDIA) PRIVATE LIMITED (w.e.f. 07.01.2014)
Formerly Known As :	TERRA TRANSMISSION AND DISTRIBUTION INDIA PRIVATE LIMITED
Registered Office :	Rudraram Village, Patancheru Mandal, Medak District – 502329, Telangana
Tel. No.:	91-40-30712222
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.06.2013
Com. Reg. No.:	36-088501
Capital Investment / Paid-up Capital :	Rs.16330.100 Million
CIN No.: [Company Identification No.]	U40108TG2013PTC088501
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Transformers and related products.
No. of Employees :	4000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a newly incorporated subsidiary of “Toshiba Corporation, Japan” which is establishing itself gradually. Mr. Chandra Sekhar, Marketing Manager provided complete information and confirmed that the management of “Toshiba Corporation, Japan” primarily took over an Indian company named as “Vijay Electricals Limited” on December 27^th, 2013 and has complete the statutory procedures for the acquisition as on January 06, 2014. The company possesses a favaurable financial profile marked by healthy capital base and structure coupled with zero leverage, along with strong liquidity profile backed by adequate liquid cash during FY2014. Management has witnessed a decent revenue base with a full scale entry into India T and D market, whereas has reported a loss from its first partial year of commercial operations during FY2014. However, trade relations are improving. Business is active. Payment terms are reported as usually correct. In view of strong parental support and reputation in the global market, the subject 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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. Chandra Sekhar
Designation :	Marketing Manager
Contact No.:	91-9392148226
Date :	18.04.2015

LOCATIONS

Registered Office / Factory :	Rudraram Village, Patancheru Mandal, Medak District – 502329, Telangana, India
Tel. No.:	91-40-30712222
Mobile No.:	91-9392148226 (Mr. Chandra Sekhar)
Fax No.:	91-40-30712245
E-Mail :	chandrashekhar@toshiba-ttdi.com
Website :	www.toshiba-ttdi.com
Area :	160 Acer
Location :	Owned
Branch 1 :	1107, Hemkunt Chambers 89, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-26423634 / 91-11-24502955
Fax No.:	91-11-41618334
Branch 2 :	6, Waterloo Street, Unit 102, I Floor, Kolkatta – 700069, West Bengal, India
Tel. No.:	91-33-30243643
Fax No.:	91-33-30244162
Branch 3 :	601, 6th Floor, C&B Square, Big Cinema Complex, Andheri - Kurla Road, Chakala, Andheri (East), Mumbai - 400 059, Maharashtra, India
Tel. No.:	91-22-61911519/1549
Fax No.:	91-22-61911524
Branch 4 :	A-2/425, GIDC, Makarapura Vadodara – 390010 Gujarat, India
Tel. No.:	91-265-2356805

DIRECTORS

As on 15.12.2014

Name :	Katsutoshi Toda
Designation :	Chairman
Address :	Plot No. 204, Temple Square Apartments, Sri Bagh Colony, Kothaguda, Hyderabad – 500084, Telangana, India
Date of Birth/Age :	01.12.1956
Date of Appointment :	15.12.2014
DIN No.:	06730348
Name :	Shinji Miyake
Designation :	Whole time Director
Address :	Plot No. 103, Temple Square Apartments, Sri Bagh Colony, Kothaguda, Hyderabad – 500084, Telangana, India
Date of Birth/Age :	29.06.1969
Date of Appointment :	15.12.2014
DIN No.:	06730337
Name :	Isao Hioki
Designation :	Whole time Director
Address :	Plot No. 503, Temple Square Apartments, Sri Bagh Colony, Kothaguda, Hyderabad – 500084, Telangana, India
Date of Birth/Age :	04.02.1960
Date of Appointment :	15.12.2014
DIN No.:	06730378
Name :	Masatoshi Ono
Designation :	Whole time Director
Address :	Plot No. 205, Temple Square Apartments, Sri Bagh Colony, Kothaguda, Hyderabad – 500084, Telangana, India
Date of Birth/Age :	02.09.1957
Date of Appointment :	15.12.2014
DIN No.:	06730380
Name :	Kazutoshi Ogata
Designation :	Director
Address :	18-33-1014, Nishiarai, sakae, CHO 1 – Chome Adachi – KU, Tokyo – 1230843, Japan
Date of Birth/Age :	19.09.1968
Date of Appointment :	15.12.2014
DIN No.:	06632292
Name :	Taketoshi Miyamoto
Designation :	Director
Address :	21 – 15 – 107, Shimura, 3-Chome, Itabashiku, Tokyo – 1740056, Japan
Date of Birth/Age :	26.05.1967
Date of Appointment :	15.12.2014
DIN No.:	06730401
Name :	Mr. Ashok Narindernath Kamra
Designation :	Director
Address :	PO Box 36967, Abu Dhabi – 36967, United Arab Emirates
Date of Birth/Age :	27.12.1960
Date of Appointment :	15.12.2014
DIN No.:	06779719

KEY EXECUTIVES

Name :	Mr. Suresh Babu Pentyala
Designation :	Secretary
Address :	12-2-B23-A/76, Santosh Nagar, Mehdipatnam, Hyderabad – 500028, Telangana, India
Date of Birth/Age :	10.07.1964
Date of Appointment :	28.12.2013
PAN No.:	ACUPP4459Q
Name :	Mr. Chandra Sekhar
Designation :	Marketing Manager

MAJOR SHAREHOLDERS

As on As on 15.12.2014

Names of Shareholders	No. of Shares
Toshiba Corporation, Japan	1633009999
Toshiba Substation Equipment Technology Corporation	1
Total	1633010000

As on As on 15.12.2014

Equity Share Break up (Percentage of Total Equity)

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Transformers and related products.

Products :

Product Description	Item Code No. (ITC Code)
Transformers not exceeding 650 KVA	85042100

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Transformers and related products

Countries :

• Italy
• UK
• Kenia
• Germany

Imports :

Products :

Raw Material

Countries :

• USA
• Korea
• Japan

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	A.K. Steel, USA
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

• Godrej, Mumbai, Maharashtra, India
• Bajaj

No. of Employees :

4000 (Approximately)

Bankers :

• State Bank of India, Hyderabad, Telangana, India
• Deutsche Bank, Bangalore Branch, Karnataka, India

Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountants
Address :	Tidel Park 6^th and 7^th Floor, Module 601, 701-702 No. 4 Rajiv Gandhi Salai, Taramani, Chennai – 600113, Tamilnadu, India
PAN No.:	ACHFS9118A
Memberships :	Not Available
Collaborators :	Not Available
Associate :	Toshiba Corporation, Japan
Fellow Subsidiary company :	Toshiba India Private Limited, India Toshiba Trading Incorporated, Japan

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
2000000000	Equity Shares	Rs.10/- each	Rs.20000.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
1633010000	Equity Shares	Rs.10/- each	Rs.16330.100 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	20.06.2013 To 31.03.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	16330.100
(b) Reserves & Surplus	(6.400)
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	16323.700
(3) Non-Current Liabilities
(a) long-term borrowings	0.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	284.800
Total Non-current Liabilities (3)	284.800
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	1874.800
(c) Other current liabilities	1924.000
(d) Short-term provisions	60.100
Total Current Liabilities (4)	3858.900
TOTAL	20467.400
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4417.000
(ii) Intangible Assets	6152.400
(iii) Capital work-in-progress	38.200
(iv) Intangible assets under development	694.600
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	30.100
(d) Long-term Loan and Advances	170.600
(e) Other Non-current assets	54.300
Total Non-Current Assets	11557.200
(2) Current assets
(a) Current investments	0.000
(b) Inventories	1906.700
(c) Trade receivables	4171.600
(d) Cash and cash equivalents	2401.300
(e) Short-term loans and advances	360.700
(f) Other current assets	69.900
Total Current Assets	8910.200
TOTAL	20467.400

PROFIT & LOSS ACCOUNT

	PARTICULARS	20.06.2013 To 31.03.2014
	SALES
	Income	1623.800
	Other Income	45.400
	TOTAL	1669.200
Less	EXPENSES	1501.200
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	168.000
Less	FINANCIAL EXPENSES	29.700
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	138.300
Less/ Add	DEPRECIATION/ AMORTISATION	146.300
	PROFIT/ (LOSS) BEFORE TAX	(8.000)
Less	TAX	(1.600)
	PROFIT/ (LOSS) AFTER TAX	(6.400)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	209.400
	TOTAL EARNINGS	209.400
	IMPORTS
	CIF value of imports	267.900
	TOTAL IMPORTS	267.900
	Earnings / (Loss) Per Share (Rs.)	0.00

ABRIDGED BALANCE SHEET

(TAKEN OVER BUSINESS)

SOURCES OF FUNDS	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5858.668
(b) Reserves & Surplus	0.000
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	5858.668
(3) Non-Current Liabilities
(a) long-term borrowings	142.888
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	202.107
Total Non-current Liabilities (3)	344.995
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	2911.913
(c) Other current liabilities	875.476
(d) Short-term provisions	27.301
Total Current Liabilities (4)	3814.690
TOTAL	10018.353
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2848.775
(ii) Intangible Assets	14.101
(iii) Capital work-in-progress	162.102
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.065
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	62.552
(e) Other Non-current assets	0.000
Total Non-Current Assets	3087.595
(2) Current assets
(a) Current investments	0.000
(b) Inventories	2294.053
(c) Trade receivables	4009.716
(d) Cash and cash equivalents	187.200
(e) Short-term loans and advances	389.556
(f) Other current assets	50.233
Total Current Assets	6930.758
TOTAL	10018.353

PROFIT & LOSS ACCOUNT

(TAKEN OVER BUSINESS)

	PARTICULARS	31.03.2013
	SALES
	Income	10616.102
	Other Income	43.226
	TOTAL	10659.328
Less	EXPENSES
	Cost of Materials Consumed	7740.710
	Purchases of Stock-in-Trade	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(14.646)
	Employees benefits expense	973.340
	Other expenses	1020.666
	TOTAL	9720.070
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	939.258
Less	FINANCIAL EXPENSES	654.180
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	285.078
Less/ Add	DEPRECIATION/ AMORTISATION	293.572
	PROFIT/ (LOSS) BEFORE TAX	(8.494)
Less	TAX	1.368
	PROFIT/ (LOSS) AFTER TAX	(9.862)
	Earnings / (Loss) Per Share (Rs.)	-0.01

Expected Sales (2014-2015): Rs.12000.000 Million

The above information has been parted by Mr. Chandra Sekhar (Marketing Manager).

KEY RATIOS

PARTICULARS		20.06.2013 To 31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	(0.39)	(0.09)
Operating Profit Margin (PBDIT / Sales)	(%)	10.35	8.85
Return on Total Assets (PBT/Total Assets}	(%)	(0.04)	(0.09)
Return on Investment (ROI) (PBT/Networth)		0.00	0.00
Debt Equity Ratio (Total Debt /Networth)		0.00	0.02
Current Ratio (Current Asset/Current Liability)		2.31	1.82

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	20.06.2013 To 31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	5858.668	16330.100
Reserves & Surplus	0.000	(6.400)
Net worth	5858.668	16323.700
long-term borrowings	142.888	0.000
Short term borrowings	0.000	0.000
Total borrowings	142.888	0.000
Debt/Equity ratio	0.024	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	20.06.2013 To 31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	10616.102	1623.800
		(84.704)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	20.06.2013 To 31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	10616.102	1623.800
Profit	(9.862)	(6.400)
	(0.09%)	(0.39%)

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
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	No

PERFORMANCE REVIEW

During the period, the company has recorded total revenue (net of excise duty) of Rs.1669.200 Million and EBITDA of Rs.168.000 Million. The Loss before Tax and Loss after Tax were Rs.8.000 Million and Rs.6.400 Million respectively. During the period under review, the company has achieved export turnover of Rs.209.400.

OUTLOOK

T and D Equipment industry is currently witnessing an over capacity situation, which has led to a fierce price competition amongst the players in the industry. Cut throat competition has led to the erosion in the margins of our company. Additions to power generation have slowed down and this has adversely affected the T & D Equipment industry. The major reasons for the slowdown in domestic power generation capacity additions were delay in supply of power equipment, inability to get adequate fuel linkages, delay in land acquisition, environmental issues and tight credit crunch faced by major industries around the world due to the global financial meltdown. The culmination of above factors has put the margins under severe pressure for the industry as a whole.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Sales Tax Deferment	0.000	176.325
Less : Current maturities of long term debt	0.000	33.437
Total	0.000	142.888

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

• Land and Development
• Buildings
• Plant and Machinery
• Computers
• Office Equipment
• Furniture and Fixture
• Vehicles

Website Details:

Press Release:

TOSHIBA TO SET UP RS. 180-CRORE UNIT IN HYDERABAD

November 11, 2014

Toshiba Corporation on Monday announced that it would reinforce its transmission and distribution business in India with a 3-billion yen (approximately US $ 30 million) investment in a new production capacity at Toshiba Transmission and Distribution Systems (India) Private Limited in Hyderabad.

In a press release issued from Tokyo, Chairman and Managing Director of the corporation’s Transmission and Distribution (T and D) vertical, Katsutoshi Toda, said that a new line for large power transformers would come on line in spring 2015, around the same time as the full-scale launch of a new line for switchgears. Alongside its existing production line of small and medium capacity transformers and low and medium voltage switchgears, the new power transformer line would support production of 765 kV transformers with a capacity of 500 MVA, while the new switchgear line would produce high voltage products.

“Toshiba is seeking to secure a 20 per cent share of the Indian market by the year 2018 and also reinforce out T and D vertical as a core production base for other major markets including Europe, ASEAN and Africa, Mr. Toda said. India continued to record high economic growth and long-term capital investment for infrastructure was expected in key areas like electricity and transportation.

The release said Indian Government was promoting measures to increase the number 765 kV sub-stations, increasing the country’s transmission capacity five times by the year 2017. This policy was driving the demand for large power transformers and high voltage switchgear.

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.62.56
UK Pound	1	Rs.93.56
Euro	1	Rs.67.49

INFORMATION DETAILS

Information Gathered by :	RKH
Analysis Done by :	SUB
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	4
--CREDIT LINES	1~10	6
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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.