MIRA INFORM REPORT

Report No. :	307753
Report Date :	17.02.2015

IDENTIFICATION DETAILS

Name :	PACT INDUSTRIES LIMITED (w.e.f. 14.03.2008)
Formerly Known As :	PREET HOSIERY EXPORTS LIMITED
Registered Office :	303, Hotel The Taksonz, Opposite Railway Station, G. T. Road, Ludhiana – 141008, Punjab
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	31.03.1993
Com. Reg. No.:	16-013193
Capital Investment / Paid-up Capital :	Rs. 59.408 Millions
CIN No.: [Company Identification No.]	L18101PB1993PLC013193
TAN No.: [Tax Deduction & Collection Account No.]	JDPO01529D
PAN No.: [Permanent Account No.]	AAACP9830G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Steel Ingots and Rods.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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 record. The rating is constrained on account of company’s moderate financial risk profile marked by low reserves and thin profitability margins of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution. Note: company not listed on BSE and NSE.

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	CARE
Rating	Long term rating [suspended] = B+
Rating Explanation	Risk prone credit quality and carries very high credit risk.
Date	02.02.2015

Rating Agency Name	CARE
Rating	Short term rating [suspended] =A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	02.02.2015

Reason for suspension:

Absence of requisite information.

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. Harpret Singh
Designation :	Managing Director
Contact No.:	91- 9815200524
Date :	11.02.2015

LOCATIONS

Registered Office :	303, Hotel The Taksonz, Opposite Railway Station, G. T. Road, Ludhiana – 141008, Punjab, India
Tel. No.:	Not Available
Mobile No.:	91- 9815200524 (Mr. Harpret Singh)
Fax No.:	Not Available
E-Mail :	hptakkar@gmail.com hotel@hoteltaksonz.com
Website :	Http://Pactindustries.Com
Location :	Owned
Factory 1 :	Bilga Road, Sahnewal Khurd, Ludhiana, Punjab, India
Tel. No.:	91-161-2844888
Area :	4.25 Acers
Location :	Owned
Factory 2:	Kartar Complex G.T. Road, Jallandhar Bye Pass, Ludhiana , Punjab, India

DIRECTORS

As on: 31.03.2014

Name :	Mr. Avtar Singh
Designation :	Chairman
Address :	House No. 754, Kartar Complex. G. T. Road, Jal. Bypass, Ludhiana – 141008, Punjab, India
Date of Birth/Age :	28.05.1942
Date of Appointment :	01.09.2011
DIN No.:	00570465
Name :	Mr. Gurdeep Singh
Designation :	Managing Director
Address :	House No. 754, Kartar Complex. G. T. Road, Jal. Bypass, Ludhiana – 141008, Punjab, India
Date of Birth/Age :	25.08.1966
Date of Appointment :	01.10.2011
DIN No.:	00570507
Name :	Mr. Harpreet Singh
Designation :	Managing Director
Address :	House No. 754, Kartar Complex. G. T. Road, Jal. Bypass, Ludhiana – 141008, Punjab, India
Date of Birth/Age :	06.02.1969
Date of Appointment :	01.10.2011
DIN No.:	00570541
Name :	Mr. Amarjit Singh
Designation :	Director
Address :	1773, 3B –II, Sector 60, Mohali – 160055, Punjab, India
Date of Birth/Age :	06.04.1941
Date of Appointment :	30.12.2006
DIN No.:	00192351
Name :	Mr. Narinder Jit Singh Sethi
Designation :	Director
Address :	50 – K, Sarabha Nagar, Ludhiana – 141001, Punjab, India
Date of Birth/Age :	01.04.1945
ate of Appointment :	30.12.2006
DIN No.:	01368026
Name :	Mr. Amandeep Singh
Designation :	Director
Address :	205, Guru Teg Bahadur Nagar, Jalandhar – 144001, Punjab, India
Date of Birth/Age :	05.11.1972
Date of Appointment :	30.09.2011
DIN No.:	01263581

KEY EXECUTIVES

Name :	Sakshi Sharma
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.12.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian	3668050	74.24
(2) Foreign	0	0.00
(B) Public Shareholding	3668050	74.24
(1) Institutions
Mutual Funds / UTI	0	0.00
Financial Institutions / Banks	0	0.00
Central Government / State Government(s)	0	0.00
Insurance Companies	0	0.00
Foreign Institutional Investors	0	0.00
Sub Total	0	0.00
(2) Non-Institutions
Bodies Corporate	84850	1.72
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1187800	24.04
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	0	0.00
Any Others (Specify)	100	0.00
Directors & their Relatives & Friends	0	0.00
Clearing Members	0	0.00
Trusts	0	0.00
Non Resident Indians	0	0.00
Foreign Port Folio Investor Corporate	0	0.00
Sub Total	1272750	25.76
Total Public shareholding (B)	1272750	25.76
Total (A)+(B)	4940800	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	4940800	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Steel Ingots and Rods.
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :
Products :	Raw Material
Countries :	· Africa · Brazil · USA · UAE · UK · Europe
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Suppliers :

Indica Group, UAE

Customers :

· Ranveer Steel

· Renny Steel

No. of Employees :

100 (Approximately)

Bankers :

State Bank Of India, Miller Ganj, Ludhiana - 141003, Punjab, India

Cash and Credit – 70.000 Millions

Facilities :

Secured Loan	As on 31.03.2014 (Rs. In Millions)	As on 31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS:
Term loans from State Bank OF India	18.764	27.299
SHORT TERM BORROWINGS:
State Bank of Indian C/c	52.636	65.895
State Bank of Indian L/c	27.763	17.858
Total	99.163	111.052

Banking Relations :	--
Auditors :
Name :	Rajesh Mehru and Company Chartered Accountants

CAPITAL STRUCTURE

AS ON: 31.03.2014

Authorized Capital:

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
4940800	Equity Shares	Rs.10/- each	Rs. 49.408 Millions
1000000	Preference Equity Shares	Rs.10/- each	Rs. 10.000 Millions
	Total		Rs. 59.408 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	59.408	49.408	49.408
(b) Reserves & Surplus	34.509	26.821	4.234
(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)	93.917	76.229	53.642
(3) Non-Current Liabilities
(a) long-term borrowings	34.883	43.060	44.252
(b) Deferred tax liabilities (Net)	0.107	0.078	0.046
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	34.990	43.138	44.298
(4) Current Liabilities
(a) Short term borrowings	80.399	83.753	67.066
(b) Trade payables	4.909	31.716	30.042
(c) Other current liabilities	6.840	9.720	0.000
(d) Short-term provisions	4.165	3.626	3.259
Total Current Liabilities (4)	96.313	128.815	100.367
TOTAL	225.220	248.182	198.307
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	91.642	87.928	64.131
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	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	7.188	10.403	7.371
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	98.830	98.331	71.502
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	67.607	68.414	43.090
(c) Trade receivables	43.014	52.070	51.955
(d) Cash and cash equivalents	10.320	17.042	25.438
(e) Short-term loans and advances	2.307	9.183	6.322
(f) Other current assets	3.142	3.142	0.000
Total Current Assets	126.39	149.851	126.805
TOTAL	225.220	248.182	198.307

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	502.464	497.759	463.458
		Other Income	2.275	6.423	0.137
		TOTAL (A)	504.739	504.182	463.595
Less	EXPENSES
		Cost of Materials Consumed	427.998	428.220	398.303
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	0.000	(7.326)
		Employees benefits expense	1.870	2.122	4.195
		Manufacturing Expenses	53.716	52.225
		Other expenses	1.813	2.686	54.443
		TOTAL (B)	485.397	485.253	449.615
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.342	18.929	13.980
Less	FINANCIAL EXPENSES (D)		11.039	10.999	6.055
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.303	7.930	7.925
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.312	6.651	6.733
	PROFIT BEFORE TAX (E-F) (G)		1.991	1.279	1.192
Less	TAX (H)		0.615	0.428	0.046
	PROFIT AFTER TAX (G-H) (I)		1.376	0.851	1.146
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.009	1.543	1.368
Less	INCOME TAX OF PREVIOUS YEAR		NA	0.000	0.971
	BALANCE CARRIED TO THE B/S		3.385	2.009	1.543
	Earnings Per Share (Rs.)		0.23	0.17	0.23

Expected sales : Rs.520.000 Millions

The above information has been parted by Mr. Harpreet Singh.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.27	0.17	0.25
Net Profit Margin (PBT/Sales)	(%)	3.85	3.80	3.02
Return on Total Assets (PBT/Total Assets}	(%)	0.88	0.52	0.60
Return on Investment (ROI) (PBT/Networth)		0.02	0.02	0.02
Debt Equity Ratio (Total Debt/Networth)		1.23	1.66	2.08
Current Ratio (Current Asset/Current Liability)		1.31	1.16	1.26

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	49.408	49.408	59.408
Reserves & Surplus	4.234	26.821	34.509
Share Application money pending allotment	0.000	0.000	0.000
Net worth	53.642	76.229	93.917
long-term borrowings	44.252	43.060	34.883
Short term borrowings	67.066	83.753	80.399
Total borrowings	111.318	126.813	115.282
Debt/Equity ratio	2.075	1.664	1.227

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	463.458	497.759	502.464
		7.401	0.945

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	463.458	497.759	502.464
Profit	1.146	0.851	1.376
	0.25%	0.17%	0.27%

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 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	No
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 LOAN

Particulars	As on 31.03.2014 (Rs. In Millions)	As on 31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS:
Loans and advances from directors	0.000	0.641
Loans and advances from others	16.118	15.120
Total	16.118	15.761

MANAGEMENT DISCUSSIONS AND ANALYSIS OVERVIEW

a) Business:

The Company is manufacturing steel ingots and the future is bright since all the products manufactures by the company will be consumed by the cycle and auto parts manufacturing units situated at Ludhiana. The board does not foresee any problem from sales and marketing point of view. As far as manufacturing is concerned there will not be any problem since the raw material and specialized labour is easily available in the city.

In addition the company is also continuing with its business of fabric trading. Since the company does not foresee major expansion in fabric business it is concentrating on casting business.

b) Financial Analysis and Review of Operations:

PRODUCTION AND SALES REVIEW

During the year, the Company has registered a turnover of Rs. 504.739 Millions as compared to Rs.504.182 Millions showing growth over the previous year’s turnover. The business- wise performance is as

under:

i) Fabric & cloth: During the year, the Sales of processed fabric increased from 203.599 Millions to 228.027 Millions showing good growth over the previous year. The Production of processed fabric also increased during the year. Besides this during the year the Company has undertaken fabrication of outside parties although fabrication of knitted cloth has decreased.

ii) Garments: The Company has not done any business in garment segment due to huge competition.

iii) Steel:- During the year, the Sales of Ingots (Steel) decreased from 300.583 Millions to 274.437 Millions. Decrease in turnover is due to instability in the steel industry. The Board of directors expects better results in future.

STATEMENT OF STANDALONE/ CONSOLIDATE UNAUDITED / AUDITED RESULTS FOR THE QUARTER ENDED 31.12.2014

Sr. No.	Particulars			3 months ended	Preceding 3 months ended	Previous year ended
				31.12.2014	30.09.2014	31.12.2014
				Unaudited	Unaudited	Unaudited
1	(a) Net Sales/Income from Operations			110.331	113.551	352.018
	(b)Other Operating Income			--	--	--
	Total Income From Operations (Net)			110.331	113.551	352.018
2	Expenditure
	(a)		Cost of Materials Consumed	82.277	102.860	293.669
	(b)		Purchases of Stock-in-Trade	--	--	--
	(c)		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	9.154	(13.299)	1.335
	(d)		Employees benefits expense	0.600	0.500	2.200
	(e)		Depreciation and amortization expense	1.600	1.600	4.800
	(f )		Other expenses	14.525	19.265	42.355
			TOTAL (B)	108.156	110.926	344.359
3	Profit from operation before other income, interest and other exceptional items(1-2)			2.175	2.625	7.659
4	Other Income			1.500	1.000	2.750
5	profit before interest and exceptional items(3+4)			3.675	3.625	10.409
6	Interest			3.200	3.000	8.800
7	Profit after interest but before exceptional items(5-6)			0.475	0.625	1.609
8	Exceptional Items			0.000	0.000	0.000
9	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)			0.475	0.625	1.609
10	Tax Expenses			0.142	0.188	0.498
11	Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10)			0.333	0.437	1.111
12	Extra Ordinary Items			0.000	0.000	0.000
13	Net Profit(+)/Loss(-) for the period (11-+12)			0.333	0.437	1.111
14	Paid-up Equity Share Capital			49.408	59.408	59.408
15	Reserves excluding revaluation reserves			7.187	6.854	7.187
16		Earning Per Share
(a)		Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		0.06	0.09	14.54
(b)		Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		0.06	0.09	14.54
17		Public Shareholding
		Number of Shares		1272750	1272750	1272750
		Percentage of Shareholding		25.76	25.76	25.76
18		Promoters and Promoter group
		a) Pledged/Encumbered
		Number of shares		NIL	NIL	NIL
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		NIL	NIL	NIL
		Percentage of Shares (as a % of the total share capital of the Company)		NIL	NIL	NIL
		b) Non-encumbered
		Number of shares		3668050	3668050	3668050
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		74.24	74.24	74.24
		Percentage of Shares (as a % of the total share capital of the Company)		74.24	74.24	74.24
		Particulars				3 months ended 31.12.2014
		INVESTOR COMPLAINTS
		Pending at the beginning of the quarter				0
		Received during the quarter				0
		Disposed off during the quarter				0
		Remaining unresolved at the end of the quarter				0

INDEX OF CHARGES:

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10148336	09/12/2014 *	143,000,000.00	STATE BANK OF INDIA	SME, OVERSEAS BRANCH, DHOLEWAL, LUDHIANA, PUNJAB  - 141003, INDIA	C39222856

* Date of charge modification

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 judgment 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.62.20
UK Pound	1	Rs.96.00
Euro	1	Rs.71.00

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--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	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		28

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.