MIRA INFORM REPORT

Report No. :	319019
Report Date :	25.04.2015

IDENTIFICATION DETAILS

Name :	ARORA KNIT FAB PRIVATE LIMITED
Registered Office :	HA – 51, Focal Point, Phase – VI, Ludhiana – 141010, Punjab
Tel. No.:	91-161-2673781
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.11.2000
Com. Reg. No.:	16-024076
Capital Investment / Paid-up Capital :	Rs.33.543 Million
CIN No.: [Company Identification No.]	U18101PB2000PTC024076
IEC No.:	3000011382
TIN No.:	03761020269
PAN No.: [Permanent Account No.]	AACCA9779K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Home Furnishing Products and Knitted Fabrics.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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 :	Clear
Comments :	Subject is an established company having moderate track. The rating is constrained on account of low profitability and moderate capital structure marked by high gearing. However, it has fair liquidity position backed by favourable gap between trade receivables and payables during FY2014. The rating also takes note of its group company which is in the same line of business and managed by same promoters. Trade relation are reported to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

Rating Agency Name	CRISIL
Rating	Long term rating=BB
Rating Explanation	Inadequate credit qualities and high credit risk.
Date	10.10.2014

Rating Agency Name	CRISIL
Rating	Short term rating=A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	10.10.2014

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. Veekramjeet
Designation :	Accountant
Contact No.:	91-8872082211
Date :	23.04.2015

LOCATIONS

Registered Office/ Factory 1 :	HA – 51, Focal Point, Phase – VI, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-2673781/5071703/5071706
Mobile No.:	91-8437970000 (Ms. Divya) 91-8872082211 (Mr. Veekramjeet)
Fax No.:	91-161-5069775
E-Mail :	info@afcomefurnishings.com
Website :	http://www.aroragroupofcompanies.com
Factory 2 :	Sardar Nagar, Rahon Road, Ludhiana - 141007, Punjab, India

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Ravinder Pal Singh

Designation :

Whole Time Director

Address :

13 Shakti Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

05.11.1959

Date of Appointment :

01.07.2012

DIN No.:

00349027

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	U18101PB1993PTC013025	ARORA FABRICS PVT LIMITED	Director	04/02/1993	04/02/1993	-	Active	NO
2	U18101PB2000PTC024076	ARORA KNIT FAB PRIVATE LIMITED	Whole-time director	01/07/2012	20/08/2003	-	Active	NO
3	U45201PB1995PTC017139	KVR BUILDERS PRIVATE LIMITED	Director	19/10/2005	19/10/2005	-	Strike off	NO
4	U18109PB2008PTC031572	ARORA FABRIC INDUSTRIES PRIVATE LIMITED	Director	09/01/2008	09/01/2008	-	Active	NO

Name :

Mr. Mahinder Singh Arora

Designation :

Whole Time Director

Address :

13 Shakti Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

05.11.1961

Date of Appointment :

01.07.2012

DIN No.:

00349080

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	U18101PB2000PTC024076	ARORA KNIT FAB PRIVATE LIMITED	Whole-time director	01/07/2012	22/11/2000	-	Active	NO
2	U18101PB1993PTC013025	ARORA FABRICS PVT LIMITED	Additional director	24/11/2007	30/08/2003	-	Active	NO
3	U45201PB1995PTC017139	KVR BUILDERS PRIVATE LIMITED	Director	19/10/2005	19/10/2005	-	Strike off	NO
4	U18109PB2008PTC031572	ARORA FABRIC INDUSTRIES PRIVATE LIMITED	Director	09/01/2008	09/01/2008	-	Active	NO

Name :

Ms. Neena Arora

Designation :

Whole Time Director

Address :

13 Shakti Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

27.07.1964

Date of Appointment :

01.07.2012

DIN No.:

00365191

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	U18101PB1993PTC013025	ARORA FABRICS PVT LIMITED	Director	04/02/1993	04/02/1993	-	Active	NO
2	U18101PB2000PTC024076	ARORA KNIT FAB PRIVATE LIMITED	Whole-time director	01/07/2012	01/04/2006	-	Active	NO

Name :

Mr. Harjit Kaur

Designation :

Whole Time Director

Address :

13 Shakti Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

01.09.1961

Date of Appointment :

01.07.2012

DIN No.:

00365296

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	U18101PB1993PTC013025	ARORA FABRICS PVT LIMITED	Additional director	24/11/2007	04/02/1993	-	Active	NO
2	U18101PB2000PTC024076	ARORA KNIT FAB PRIVATE LIMITED	Whole-time director	01/07/2012	01/04/2006	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Veekramjeet
Designation :	Accountant

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Ravinder Singh Arora	210425
Mohinder Singh Arora	211655
Harjit Kaur	221900
Nena Arora	1410050
Ravinder Singh Arora (HUF)	17530
Daljit singh	8000
Mohinder Singh Arora	18690
Rakesh Kumar	7500
Poonam Rani	8500
Sarabjit Singh Bedi	10000
Naresh Kumar	9000
Rakesh Bhatia	9000
Sunita bhatia	9000
Sonia	5000
Ravi Malik	17000
Datar Sinh	6500
Gurmeet Kaur	9000
Raman Kumar Salopal	9000
Sandhya Salopal	9000
Arora Fabrics Private Limited	850500
Lally Prasad	4000
Rajiv Kumar	2000
Santosh Kumar	2000
Utkarsh Appreals	1000
Nidhi Arora	90000
Sukpreet Singh	98000
Tajinder Pal Kaur	100000
Total	3354250

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Bodies corporate	25.35
Directors or relatives of Directors	74.65
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Home Furnishing Products and Knitted Fabrics.
Products :	Home Furnishing Products Knitted Fabrics
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Home Furnishing Products Knitted Fabrics
Countries :	Germany Dubai Canada
Imports :
Products :	Yarn Machine Parts
Countries :	Taiwan Korea China
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

Customers :

Company Name :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

No. of Employees :

250 (Approximately)

Bankers :

Banker Name :	Punjab National Bank
Branch :	Miller Ganj, Ludhiana – 141003, Punjab, India
Person Name (With Designation) :	Not Divulged
Contact Number :	Not Divulged
Name of Account Holder :	Not Divulged
Account Number :	Not Divulged
Account Since (Date/Year of Account Opening) :	Not Divulged
Average Balance Maintained :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loans from banks	5.455	0.599
Short Term Borrowings
Loans repayable on demand from banks	283.929	286.705
Total	289.384	287.304

Auditors :
Name :	Davinder Pal Singh and Company Chartered Accountant
Address :	524-L, Model Town, Ludhiana, Punjab, India
PAN No.:	AACFD9127D
Collaborators :	Not Divulged
Membership :	Not Divulged
Related Parties :	Arora Industries

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5750000	Equity Shares	Rs.10/- each	Rs.57.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3354250	Equity Shares	Rs.10/- each	Rs.33.543 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	33.543	33.542	33.542
(b) Reserves & Surplus	59.429	54.063	56.909
(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)	92.972	87.605	90.451
(3) Non-Current Liabilities
(a) long-term borrowings	5.455	0.599	5.127
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	143.541	163.795	105.864
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	148.996	164.394	110.991
(4) Current Liabilities
(a) Short term borrowings	289.222	289.953	217.208
(b) Trade payables	62.070	14.905	11.847
(c) Other current liabilities	3.333	3.933	3.773
(d) Short-term provisions	7.200	6.621	6.498
Total Current Liabilities (4)	361.825	315.412	239.326
TOTAL	603.793	567.411	440.768
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	57.086	65.355	63.253
(ii) Intangible Assets	0.067	0.000	0.000
(iii) Capital work-in-progress	0.829	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	9.818	6.970	6.210
(e) Other Non-current assets	0.000	0.000	0.020
Total Non-Current Assets	67.800	72.325	69.483
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	268.833	249.092	232.783
(c) Trade receivables	183.229	183.092	116.349
(d) Cash and cash equivalents	37.411	27.481	15.826
(e) Short-term loans and advances	46.520	35.421	6.327
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	535.993	495.086	371.285
TOTAL	603.793	567.411	440.768

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL	1744.338	1684.555	1607.284
	TOTAL EXPENSES		1681.500	1632.267	1557.940
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		62.838	52.288	49.344
Less	FINANCIAL EXPENSES		48.951	42.695	37.706
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		13.887	9.593	11.638
Less	DEPRECIATION/ AMORTISATION		8.522	6.969	9.182
	PROFIT BEFORE TAX		5.365	2.624	2.456
Less	TAX		0.000	0.700	1.500
	PROFIT AFTER TAX		5.365	1.924	0.956
	Earnings Per Share (Rs.)		1.60	0.57	NA

Expected Sales (2014-2015): Rs.1800.000 Million

The above information has been parted by Mr. Veekramjeet (Accountant)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets)	(%)	0.89	0.46	0.56
Return on Investment (ROI) (PBT/Networth)		0.06	0.03	0.03
Debt Equity Ratio (Total Debt /Networth)		3.17	3.32	2.46
Current Ratio (Current Asset/Current Liability)		1.48	1.57	1.55

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	33.542	33.542	33.543
Reserves & Surplus	56.909	54.063	59.429
Share Application money pending allotment	0.000	0.000	0.000
Net worth	90.451	87.605	92.972
long-term borrowings	5.127	0.599	5.455
Short term borrowings	217.208	289.953	289.222
Total borrowings	222.335	290.552	294.677
Debt/Equity ratio	2.458	3.317	3.170

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Total Income	1607.284	1684.555	1744.338
		4.808	3.549

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Total Income	1607.284	1684.555	1744.338
Profit	0.956	1.924	5.365
	0.06%	0.11%	0.31%

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	Yes
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	----------
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

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Short Term Borrowings
Other loans and advances	5.293	3.248
Total	5.293	3.248

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10354111	29/03/2012	18,500,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	B39108113
2	10043086	06/03/2007	14,900,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	A12811857
3	90172774	15/10/2013 *	552,150,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	B89118509
4	90174344	14/05/2004	6,000,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
5	90312024	14/05/2004	6,000,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
6	90174185	23/05/2003	13,127,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
7	90311864	23/05/2003	13,127,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
8	90311834	19/02/2003	35,000.00	Centurain Bank Limited	15; Feroze Gandhi Market, Ludhiana, Punjab, India	-
9	90311721	26/03/2002	3,800,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
10	90174064	26/03/2002	5,800,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
11	90175274	19/02/2002	350,000.00	Centurain Bank Limited	15; Feroze Gandhi Market, Ludhiana, Punjab, India	-
12	90311643	05/11/2001 *	1,000,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
13	90174010	05/11/2001 *	5,000,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
14	90173957	20/07/2001 *	9,000,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
15	90311602	20/07/2001 *	9,000,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
16	90311575	09/10/2014 *	435,700,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	C31699978
17	90173933	22/08/2005 *	8,500,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
18	90311560	20/07/2001 *	1,750,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-
19	90175203	20/07/2001 *	17,500,000.00	Punjab National Bank	Miller Ganj, Ludhiana, Punjab - 141003, India	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· 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 records 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.63.40
UK Pound	1	Rs.95.42
Euro	1	Rs.68.49

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUM
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.