MIRA INFORM REPORT

Report No. :	352359
Report Date :	02.12.2015

IDENTIFICATION DETAILS

Name :	TAEGUTEC INDIA PRIVATE LIMITED (w.e.f.10.03.2003)
Formerly Known As :	TAEGUTEC INDIA LIMITED
Registered Office :	#119 and 120, 4^th Phase, Bommasandra Industrial Area, Attibele Hobli, Bangalore – 562099, Karnataka
Tel. No.:	91-80-27839111
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	27.10.1999
Com. Reg. No.:	08-025888
Capital Investment / Paid-up Capital :	Rs.46.987 Million
CIN No.: [Company Identification No.]	U27109KA1999PTC025888
IEC No.:	0799011401
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACT9923C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Cutting Tools. (Confirmed by management)
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 5700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of IMC International Metal Working Co., B V Netherlands. It was incorporated in the year 1999 and has fine track. Rating takes into consideration strong financial risk profile of the company marked by adequate networth base and comfortable gearing in FY14. Further the company has reported significant increase in sales turnover and profit along with decent profit margin of nearly 16% in the year under consideration. Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitments. In view of long track record of business operations along with decent financial condition and support from its holding company, the subject can be considered for business dealings with 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	ICRA
Rating	Long term: fund based facilities: AA-
Rating Explanation	High degree of safety and very low credit risk.
Date	March 2015

Rating Agency Name	ICRA
Rating	Short term: fund based facilities: A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk
Date	March 2015

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 31-03-2015.

LOCATIONS

Registered Office / Factory :	#119 and 120, 4^th Phase, Bommasandra Industrial Area, Attibele Hobli, Bangalore – 562099, Karnataka, India
Tel. No.:	91-80-27839111 / 27831870 / 72
Fax No.:	91-80-27839123 / 27831869
E-Mail :	vkumar@taegutec-india.com sales@taegutec-india.com neha@taegutec-india.com
Website :	http://www.taegutec-india.com
Branches :	No.1385, 4^th ‘A’ Cross, 10^th Main, RPC Layout, Hampi Nagar, Bangalore – 560014, Karnataka, India
Mobile No. :	91-8088239009 (Mr. Prashanth K.M.)

DIRECTORS

AS ON 31.03.2015

Name :

Mr. Lakshmikanthan Krishnan

Designation :

Managing director

Address :

M 48, Diamond District, Airport Road, Bangalore - 560017, Karnataka, India

Date of Birth/Age :

16.03.1959

Date of Appointment :

01.01.2005

DIN No.:

00316429

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	U27109KA1999PTC025888	TAEGUTEC INDIA PRIVATE LIMITED	Managing director	1/1/2005	1/1/2005	-	Active	NO
2	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	8/9/2011	8/9/2011	-	Active	NO
3	U91100KA2012NPL063245	INDIAN CUTTING TOOL MANUFACTURERS' ASSOCIATION	Director	27/03/2012	27/03/2012	-	Active	NO
4	U93000KA1964ULL001532	KARNATAKA STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED	Director	5/5/2012	5/5/2012	17/05/2013	Active	NO

Name :

Moshe Sharon

Designation :

Director

Address :

SOD 104, Han Nam 657-3,, YongSan Gu, Seoul, 140210, Israel

Date of Birth/Age :

04.04.1948

Date of Appointment :

01.04.2002

DIN No.:

00494804

Name :

Mr. Srinivasan Rangarajan

Designation :

Director

Address :

Dhanya, 126, Nandidurg Road, Bangalore - 560046, Karnataka, India

Date of Birth/Age :

10.09.1941

Date of Appointment :

01.03.2000

DIN No.:

00043658

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	U29221KA1994PTC015104	NTTF INDUSTRIES Private LIMITED	Director	6/1/1994	6/1/1994	-	Active	NO
2	U72400KA1994PTC016526	RAS TRANSFORMATION TECHNOLOGIES PRIVATE LIMITED	Director	19/11/1994	19/11/1994	-	Strike off	NO
3	L35999TN1962PLC004943	SUNDRAM FASTENERS LIMITED	Director	22/09/2014	6/3/1995	-	Active	NO
4	L29150KA1976PLC003017	YUKEN INDIA LIMITED	Director	29/06/1995	29/06/1995	-	Active	NO
5	U26919TN1982PLC009622	MURUGAPPA MORGAN THERMAL CERAMICS LTD	Director	16/06/2015	24/06/1998	-	Active	NO
6	U85110KA1999NPL025461	NETTUR TECHNICAL TRAINING FOUNDATION	Director	13/07/1999	13/07/1999	19/06/2015	Active	NO
7	U27109KA1999PTC025888	TAEGUTEC INDIA PRIVATE LIMITED	Director	1/3/2000	1/3/2000	-	Active	NO
8	L85110TZ1955PLC015049	TTK PRESTIGE LIMITED	Director	21/08/2014	9/10/2000	-	Active	NO
9	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Director	1/9/2014	9/2/2002	-	Active	NO
10	U66030TN2001PLC047977	CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LIMITED	Director	22/03/2002	22/03/2002	1/11/2012	Active	NO
11	L35921TN1949PLC002905	TUBE INVESTMENTS OF INDIA LIMITED	Director	9/6/2004	9/6/2004	6/8/2012	Active	NO
12	L29112PN1978PLC088972	KIRLOSKAR INDUSTRIES LIMITED	Director	20/01/2005	20/01/2005	30/03/2010	Active	NO
13	U02710KA2004PTC034823	DAKSHIN FOUNDRY PRIVATE LIMITED	Director	29/03/2005	29/03/2005	4/7/2012	Active	NO
14	L24231TN1958PLC003647	TTK HEALTHCARE LIMITED	Director	29/12/2005	29/12/2005	1/4/2015	Active	NO
15	L72200KA1999PLC025564	MindTree Limited	Director	24/10/2006	24/10/2006	19/07/2013	Active	NO
16	U74140KA2007PTC042217	EDUTECH NTTF INDIA PRIVATE LIMITED	Director	28/04/2007	28/04/2007	19/06/2015	Active	NO
17	U29259GJ1979PLC003467	STERLING ABRASIVES LIMITED	Director	4/6/2009	22/04/2009	-	Active	NO
18	U74300KA2009PTC050726	BANGALORE INTERNATIONAL EXHIBITION SERVICES PRIVATE LIMITED	Director	24/08/2009	24/08/2009	-	Strike off	NO
19	L29120PN2009PLC133351	KIRLOSKAR OIL ENGINES LIMITED	Director	9/7/2010	30/03/2010	-	Active	NO
20	U29290MH1973GAP016420	INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION	Director	29/08/2012	29/08/2012	6/9/2013	Active	NO
21	U74900KA2012NPL067059	IMTMA Machine Tool Industry Park	Director	6/12/2012	6/12/2012	-	Active	NO

Name :

Hyun Jun Han

Designation :

Nominee director

Address :

Shincheon Hyperion Apt 102-2101, 148-4, Shincheon-3dong, Dong-Gu, Daegu, 701825, Republic of Korea

Date of Birth/Age :

15.04.1960

Date of Appointment :

20.04.2011

DIN No.:

03535395

KEY EXECUTIVES

Name :	Neha Jain
Designation :	Secretary
Address :	2, Gopal Pura, Maxi Road, Ujjain - 456001, Madhya Pradesh, India
Date of Birth/Age :	31.07.1979
Date of Appointment :	16.08.2005
PAN No:	AFNPJ6303B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares	%age holding
IMC International Metalworking CO., B V, Netherlands (Formerly Known as Iscar International B V)	3054100	65.00
Shivangini Properties Private Limited, India	1644570	35.00
Total	4698670	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

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	65.00
Bodies corporate	35.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Cutting Tools. (Confirmed by management)

Products :

Item Code No.	Product Description
82090010	Insert
82090010	Tool Holder

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

Banker Name	State Bank of India
Branch Address	Industrial Finance Branch, Residency Road, Bangalore - 560025, Karnataka, India
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

Auditors :
Name :	BSR and Associates LLP Chartered Accountant
Address :	Maruti Infotech Centre, 11/1 and 12/1 East wing, II Floor, Koramangla Inner Ring Road, Bangalore -560070, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AADFB6889R
Memberships :	Not Available
Collaborators :	Not Available
Ultimate Holding company:	IMC International Metalworking Company BV, Netherlands
Fellow Subsidiary company:	ISCAR Limited, Israel TaeguTec Limited, Korea (TT Korea), Republic of Korea Ingersoll Cutting Tools, Germany, Germany IT.TE.DI.S.R.L, Italy Tungaloy India Private Limited, India [U51909MH2009FTC215964] IMC Dalian China, China UNITAC Incorporated, Japan Tungaloy Corporation, Japan UOP, Germany Shafir Productio system Limited, Israel Taegutec Limited, Thailand

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs. 60.000 Million
8000000	Preference Shares	Rs.10/- each	Rs. 80.000 Million
	Total		Rs. 140.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4698670	Equity Shares	Rs.10/- each	Rs. 46.987 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	46.987	46.987	46.987
(b) Reserves & Surplus	1935.918	1920.984	1751.103
(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)	1982.905	1967.971	1798.090
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	80.318	69.010	59.137
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	6.797	6.327	5.044
Total Non-current Liabilities (3)	87.115	75.337	64.181
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	295.401	244.266	309.860
(c) Other current liabilities	55.730	102.555	95.515
(d) Short-term provisions	82.046	24.201	21.667
Total Current Liabilities (4)	433.177	371.022	427.042
TOTAL	2503.197	2414.330	2289.313
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	813.412	796.115	704.961
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	10.668	19.207	81.679
(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	11.691	10.885	24.164
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	835.771	826.207	810.804
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	521.313	489.630	525.436
(c) Trade receivables	391.734	342.989	453.170
(d) Cash and cash equivalents	682.402	706.153	441.263
(e) Short-term loans and advances	58.273	39.467	54.892
(f) Other current assets	13.704	9.884	3.748
Total Current Assets	1667.426	1588.123	1478.509
TOTAL	2503.197	2414.330	2289.313

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Turnover	2292.946	2208.529	2347.826
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
Less	EXPENSES	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX	558.344	553.887	732.514
Less	TAX	180.725	180.617	235.705
	PROFIT/ (LOSS) AFTER TAX	377.619	373.270	496.809
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	7.492	3.985	8.384
	TOTAL EARNINGS	7.492	3.985	8.384
	Earnings / (Loss) Per Share (Rs.)	80.37	79.44	105.73

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.000	0.000	0.000
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	485.953	697.577	647.961

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	22.40	23.13	33.18
Return on Investment (ROI) (PBT/Networth)		0.28	0.28	0.41
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		3.85	4.28	3.46

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	46.987	46.987	46.987
Reserves & Surplus	1751.103	1920.984	1935.918
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1798.090	1967.971	1982.905
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Current maturities of long-term debts	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

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)
Turnover	2347.826	2208.529	2292.946
		(5.933)	3.822

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Turnover	2347.826	2208.529	2292.946
Profit	496.809	373.270	377.619
	21.16%	16.90%	16.47%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

OPERATING PERFORMANCE

During the period, the Company made a turnover of Rs. 2292.946 Million as against previous years Rs. 2208.529 Million and has earned a Net Profit before Tax of Rs. 558.344 Million as against Rs. 553.887 Million in the previous year.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90197839	30/01/2003 *	110,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RESIDENCY ROAD, BANGAL ORE, KARNATAKA - 560025, INDIA	-

* Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• 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 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.66.52
UK Pound	1	Rs.100.44
Euro	1	Rs.70.44

INFORMATION DETAILS

Analysis Done by :	KIN
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILITY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	8
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		67

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.