MIRA INFORM REPORT

Report No. :	306254
Report Date :	03.02.2015

IDENTIFICATION DETAILS

Name :	AQUA DESIGNS INDIA PRIVATE LIMITED (w.e.f.05.05.2010)
Formerly Known As :	AQUA DISIGNS INDIA LIMITED
Registered Office :	No. 9, Jayanthi Nagar Extension, (Behind IBP Petrol Bunk) Off 200’ Road, Kolathur, Chennai – 600099, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	24.12.2002
Com. Reg. No.:	18-050091
Capital Investment / Paid-up Capital :	Rs. 104.851 Millions
CIN No.: [Company Identification No.]	U41000TN2002PTC050091
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 :	Subject is engaged in providing water solutions for institutions, industries, municipal authorities, commercial and public properties.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s strong technical expertise in providing end-to-end solutions in the industrial water and waste-water treatment business marked by above average financial risk profile and sound profitability margins of the company. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company 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

Rating Agency Name	CRISIL
Rating	Long term rating = BB+
Rating Explanation	Moderate degree of safety and high credit risk.
Date	March 14, 2014

Rating Agency Name	CRISIL
Rating	Short term rating = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	March 14, 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.

LOCATIONS

Registered Office :	No. 9, Jayanthi Nagar Extension, (Behind IBP Petrol Bunk) Off 200’ Road, Kolathur, Chennai – 600099, Tamilnadu
Tel. No.:	91-44-37171717
Fax No.:	91-44-37171737
E-Mail :	sales@aquadesigns.in

DIRECTORS

AS ON 05.08.2014

Name :

Suthakar Sreedharan

Designation :

Managing Director

Address :

Old No. 21, New No.3, Victory Avenue, MTH Road, Thirumullaivayil, Chennai – 600062, Tamilnadu, India

Date of Appointment :

28.03.2009

DIN No.:

01690216

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	U41000TN2002PTC050091	AQUA DESIGNS INDIA Private Limited	Managing director	28/03/2009	24/12/2002	-	Active	NO
2	U24119TN2004PTC054752	AQUASOL TECHNOLOGIES PRIVATE LIMITED	Managing director	29/11/2004	29/11/2004	-	Converted to LLP and dissolved	NO
3	AAC-9137	AQUASOL TECHNOLOGIES LLP	Designated Partner	13/11/2014	13/11/2014	-	Active	NO

Name :

Singarajan Kamalam

Designation :

Whole Time Director

Address :

Old No. 21, New No.3, Victory Avenue, MTH Road, Thirumullaivayil, Chennai – 600062, Tamilnadu, India

Date of Appointment :

24.12.2002

DIN No.:

02018614

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	U41000TN2002PTC050091	AQUA DESIGNS INDIA Private Limited	Whole-time director	24/12/2002	24/12/2002	-	Active	NO
2	U24119TN2004PTC054752	AQUASOL TECHNOLOGIES PRIVATE LIMITED	Director	29/11/2004	29/11/2004	-	Converted to LLP and dissolved	NO
3	AAC-9137	AQUASOL TECHNOLOGIES LLP	Body corporate as Designated Partner	13/11/2014	13/11/2014	-	Active	NO

Name :

Venkat Shankar

Designation :

Director

Address :

No. 3C, Nithyashree Aprtments,51, Chamiers Road, R A Puram, Chennai – 600028, Tamilnadu, India

Date of Appointment :

06.08.2010

DIN No.:

02223282

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	U55101TN1994PTC027509	ORIENTAL CUISINES PRIVATE LIMITED	Director	15/04/2008	15/04/2008	24/04/2013	Active	NO
2	U32109TN2007PTC062014	INDUS MOBILE DISTRIBUTION PRIVATE LIMITED	Director	28/09/2009	18/06/2008	-	Active	NO
3	U29299MH1994PTC077795	KAM-AVIDA ENVIRO ENGINEERS PRIVATE LTD	Director	27/09/2011	01/09/2008	-	Active	NO
4	U51909TG2000PTC034653	BALAN NATURAL FOOD PRIVATE LIMITED	Director	09/10/2008	09/10/2008	15/12/2011	Active	NO
5	U72200KA2002PTC030917	TELE DNA COMMUNICATIONS PRIVATE LIMITED	Director	30/11/2009	30/10/2009	22/12/2011	Active	NO
6	U85110TN1994PTC029023	MEDALL HEALTHCARE PRIVATE LIMITED	Director	23/09/2010	08/11/2009	-	Active	NO
7	U31103KA2002PTC030060	UNIVERSAL POWER TRANSFORMER PRIVATE LIMITED	Director	13/08/2010	12/11/2009	-	Active	NO
8	U74130KA2006PTC059425	LOYALTY SOLUTIONS & RESEARCH Private Limited	Director	29/09/2010	29/05/2010	-	Active	NO
9	U41000TN2002PTC050091	AQUA DESIGNS INDIA Private Limited	Director	30/11/2010	06/08/2010	-	Active	NO
10	U31900TN1985PTC011866	Consul Neowatt Power Solutions Private Limited	Director	29/08/2012	05/04/2012	-	Active	NO
11	U18109KA2009PTC051868	BRANDIS MANUFACTURING AND MARKETING PRIVATE LIMITED	Director	30/09/2013	29/11/2012	-	Active	NO

Name :

Venugopala Rao Sri Chittoory

Designation :

Nominee Director

Address :

No.8, 6^th Main Road, 10^th Cross Street, AGS Colony, Velachery, Chennai – 600042, Tamilnadu, India

Date of Appointment :

22.05.2013

DIN No.:

00011403

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	U30007TN1999PTC043325	e-SOLUTIONS PRIVATE LIMITED	Director	19/05/2003	19/05/2003	-	Active	NO
2	U92200TG2003PTC040633	IVISION MEDIA INDIA PRIVATE LIMITED	Director	30/05/2003	30/05/2003	-	Active	NO
3	U72200TN2005PTC055670	SYNERGETIC ENGINEERING SOLUTIONS PRIVATE LIMITED	Director	16/03/2005	16/03/2005	27/08/2007	Active	NO
4	U72200TG2006PTC049521	GTECH INDIA PRIVATE LIMITED	Director	17/03/2006	17/03/2006	20/06/2008	Active	NO
5	U93000TG2005PTC045094	VISAGE MEDIA SERVICES PRIVATE LIMITED	Director	26/02/2007	26/02/2007	-	Active	NO
6	U32109TN2007PTC062014	INDUS MOBILE DISTRIBUTION PRIVATE LIMITED	Director	29/09/2007	08/03/2007	02/03/2009	Active	NO
7	U74900TG2007PTC054615	OCHRE MEDIA PRIVATE LIMITED	Director	26/06/2007	26/06/2007	-	Active	NO
8	U74999TG2006PTC051788	VISWAS BUSINESS SYNERGIES Private LIMITED	Nominee director	21/05/2008	21/05/2008	02/03/2009	Active	YES
9	U31103KA2002PTC030060	UNIVERSAL POWER TRANSFORMER PRIVATE LIMITED	Director	13/08/2010	12/11/2009	-	Active	NO
10	U72200KA2002PTC030917	TELE DNA COMMUNICATIONS PRIVATE LIMITED	Director	29/09/2010	02/04/2010	-	Active	NO
11	U85110AP2006PTC051845	MedPlus Health Services Private Limited	Nominee director	03/02/2011	03/02/2011	04/03/2011	Active	NO
12	U51397TN2001PTC047385	CURA HEALTHCARE PRIVATE LIMITED	Additional director	21/02/2014	25/04/2012	-	Active	NO
13	U41000TN2002PTC050091	AQUA DESIGNS INDIA Private Limited	Nominee director	22/05/2013	22/05/2013	-	Active	NO
14	U74900TN2014PTC097094	AVINI ADVISORS PRIVATE LIMITED	Director	27/08/2014	27/08/2014	-	Active	NO
15	U93000TG2008PTC057908	PEEPUL CAPITAL ADVISORS PRIVATE LIMITED	Additional director	26/09/2014	26/09/2014	-	Active	NO
16	U63000DL2012PTC241107	ECOM EXPRESS PRIVATE LIMITED	Additional director	17/10/2014	17/10/2014	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 05.08.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Sreedhanran K.	200000	1.91
Kamalam S	141700	1.35
Suthakar S	2887500	27.54
Kalaivani V R	287000	2.74
Prabhakar S	317500	3.03
Sophia A	50000	0.48
S.V. Rajan	252800	2.41
V.R. Mini	148000	1.41
Peepul Capital Fund II LLC	5636953	53.76
Chintalapati Holdings Private Limited, Hyderabad	563695	5.38
Total	10485148	100.00

AS ON 05.08.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	53.70
Bodies corporate	5.40
Directors or relatives of Directors	40.90
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in providing water solutions for institutions, industries, municipal authorities, commercial and public properties.
Products :	· Chemical Dosing System · Clarifiers · Demineralizers · Electro Deionizer · Reverse Osmosis
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Information declined by the management.

Bankers :

Indian Overseas Bank, Teynampet Branch, DMS Compound, Teynampet, Chennai – 600006, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Other loans and advance, others	0.958	2.414
SHORT TERM BORROWINGS
Working capital loan from banks	286.363	168.328
Total	287.321	170.742

Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	Guru Kripa Niwas, Ground Floor, 20/7, Lalithpuram Street, Chennai – 600014, Tamilnadu, India
PAN No.:	AABSL1894Q
Memberships :	Not Available
Collaborators :	Not Available
Related Party :	· S. Prabhakar and Proprietor of Aquafabs Engineerings · Aquasol Technologies Private Limited (CIN No.: U24119TN2004PTC054752)

CAPITAL STRUCTURE

AS ON 31.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
11,000,000	Equity Shares	Rs. 10/- each	Rs. 110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,485,148	Equity Shares	Rs. 10/- each	Rs. 104.851 Millions

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	104.851	104.851	85.993
(b) Reserves & Surplus	599.277	558.523	367.074
(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)	704.128	663.374	453.067
(3) Non-Current Liabilities
(a) long-term borrowings	0.958	2.414	8.693
(b) Deferred tax liabilities (Net)	1.337	1.707	0.993
(c) Other long term liabilities	0.492	0.493	0.492
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2.787	4.614	10.178
(4) Current Liabilities
(a) Short term borrowings	286.363	168.328	177.968
(b) Trade payables	685.852	792.750	607.698
(c) Other current liabilities	22.073	44.017	53.508
(d) Short-term provisions	13.528	3.742	11.050
Total Current Liabilities (4)	1007.816	1008.837	850.224
TOTAL	1714.731	1676.825	1313.469
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	105.616	81.202	85.298
(ii) Intangible Assets	4.647	5.228	0.539
(iii) Capital work-in-progress	0.000	1.540	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7.867	7.867	7.867
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	37.457	41.915	39.063
(e) Other Non-current assets	153.453	84.045	86.602
Total Non-Current Assets	309.040	221.797	219.369
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	103.363	12.165	6.750
(c) Trade receivables	1221.261	1351.817	1011.479
(d) Cash and cash equivalents	54.743	63.389	25.973
(e) Short-term loans and advances	26.324	27.657	49.883
(f) Other current assets	0.000	0.000	0.015
Total Current Assets	1405.691	1455.028	1094.100
TOTAL	1714.731	1676.825	1313.469

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1202.700	1104.200	NA
		Other Income	NA	NA	NA
		TOTAL	NA	NA	N A
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX		40.700	30.300	54.720
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		40.700	30.300	54.720
	Earnings / (Loss) Per Share (Rs.)		3.88	2.89	5.22

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	3.38	2.74	0.00
Return on Total Assets (PBT/Total Assets}	(%)	2.38	1.82	4.19
Return on Investment (ROI) (PBT/Networth)		0.06	0.05	0.12
Debt Equity Ratio (Total Liability/Networth)		0.41	0.26	0.41
Current Ratio (Current Asset/Current Liability)		1.39	1.44	1.29

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	85.993	104.851	104.851
Reserves & Surplus	367.074	558.523	599.277
Net worth	453.067	663.374	704.128
long-term borrowings	8.693	2.415	0.958
Short term borrowings	177.968	168.328	286.363
Total borrowings	186.661	170.743	287.321
Debt/Equity ratio	0.412	0.257	0.408

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	1104.200	1202.700
		8.920

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	1104.200	1202.700
Profit	30.300	40.700
	2.74%	3.38%

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 two 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

NOTE:

The Registered office of the company has been shifted from W-35, First Street, Anna Nagar, Chennai – 600040, Tamilnadu, India to the present address w.e.f. 04.08.2008.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10527869	09/09/2014	250,000,000.00	SYNDICATE BANK	MOUNT ROAD BRANCH, 38, SOUTH INDIA BUILDING, ANNA  SALAI, CHENNAI, Tamil Nadu - 600002, INDIA	C31276561
2	10528578	01/09/2014	300,000,000.00	IDBI BANK LIMITED	NO.7, CHEVALIER SHIVAJI GANESAN SALAI, SOUTH BOAG  ROAD, T. NAGAR, CHENNAI, Tamil Nadu - 600017, INDIA	C31916893
3	10522831	17/07/2014	380,000,000.00	BANK OF INDIA	CHENNAI MID CORPORATE BRANCH, IV FLOOR, TARAPORE  TOWERS, 826, ANNA SALAI, CHENNAI, Tamil Nadu - 600002, INDIA	C23481997
4	10181175	16/05/2012 *	710,800,000.00	State Bank of India	Commercial Branch, 232 N.S.C Bose Road, CHENNAI,  Tamil Nadu - 600001, INDIA	B41277393

* Date of charge modification

FIXED ASSETS

· Leasehold land

· Buildings

· Office Equipments

· Furniture and Fixture

· Plant and Machinery

· Tools and 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 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. 61.88
UK Pound	1	Rs. 93.27
Euro	1	Rs. 69.94

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.