MIRA INFORM REPORT

Report No. :	308091
Report Date :	17.02.2015

IDENTIFICATION DETAILS

Name :	QUEST RETAIL PRIVATE LIMITED
Registered Office :	G-10, Ground Floor, City Pulse, Narain Singh Circle, Tonk Road, Jaipur – 302004, Rajasthan
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	25.11.2005
Com. Reg. No.:	17-021656
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U52190RJ2005PTC021656
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACQ1315K
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is in the business of trading in Cosmetics and Toiletries.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

A (58)

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 1530000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a subsidiary company of M/s Lotus Retail Private Limited. It is an established company having fine track. Profitability of the company is good. General financials of the company appears to be decent. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. In view of strong holding company, subject can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	15.12.2014

Rating Agency Name	CRISIL
Rating	Short term rating = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	15.12.2014

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 DENIED BY

Name :	Mr. Rahul Jain
Designation :	Finance Manager
Contact No.:	91-124-417444
Date :	16.02.2015

LOCATIONS

Registered Office :	G-10, Ground Floor, City Pulse, Narain Singh Circle, Tonk Road, Jaipur – 302004, Rajasthan, India
Tel. No.:	91-141-4171444
Fax No.:	Not Available
E-Mail :	mittalnaren@datainfosys.net suvendu.sahu@planetretail.in bidita.rath@questretail.com

DIRECTORS

As on 05.09.2014

Name :

Ashok Patni

Designation :

Director

Address :

R K House, Madanganj, Kishangarh, Ajmer – 305801, Rajasthan, India

Date of Birth/Age :

24.01.1954

Date of Appointment :

28.09.2007

DIN No.:

00008166

Name :

Suresh Patni

Designation :

Director

Address :

R K House, Madanganj, Kishangarh, Ajmer – 305801, Rajasthan, India

Date of Birth/Age :

28.11.1956

Qualification :

Experience :

Date of Appointment :

28.09.2007

PAN No.:

Passport No.:

Voter ID No.:

DIN No.:

00008230

Other Directorship:

Name :

Surender Sharma

Designation :

Director

Address :

Cottage No4, B M Rohtagi Apartments, Ram Kishore Road, Civil Lines, Delhi – 110054, India

Date of Birth/Age :

29.01.1945

Date of Appointment :

17.07.2013

DIN No.:

01566605

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	U74899DL1984PTC018973	FANGLE FANNEL FLESIBLE FOAM PRIVATE LIMITED	Director	28/03/1999	28/03/1999	25/03/2009	Active	NO
2	U74899DL1988PLC032881	SHARP CORP LIMITED	Director	06/05/2013	06/05/2013	-	Active	NO
3	U52190RJ2005PTC021656	QUEST RETAIL PRIVATE LIMITED	Director	17/07/2013	17/07/2013	-	Active	NO

Name :

Shriti Singh Malhotra

Designation :

Director

Address :

A-104, Ridgewood Estate, DLF Phase 4, Near Galeria, Gurgaon – 122009, Haryana, India

Date of Birth/Age :

15.04.1970

Date of Appointment :

28.09.2011

DIN No.:

03307509

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	U52190RJ2005PTC021656	QUEST RETAIL PRIVATE LIMITED	Director	28/09/2011	27/01/2011	-	Active	NO
2	U52190MH1999PTC258831	PLANET RETAIL HOLDINGS PRIVATE LIMITED	Director	02/03/2011	02/03/2011	10/01/2013	Active	NO
3	U52190RJ2005PTC021657	NEW HORIZONS RETAIL PRIVATE LIMITED	Director	16/07/2013	16/07/2013	-	Active	NO
4	U52190RJ2006PTC021855	BLOSSOM RETAIL PRIVATE LIMITED	Director	16/07/2013	16/07/2013	-	Active	NO
5	U15492RJ2006PTC023547	PLANET COFFEE COMPANY PRIVATE LIMITED	Director	16/07/2013	16/07/2013	-	Active	NO
6	U52190RJ2005PTC020202	MAGNUS FASHION TRADELINKS PRIVATE LIMITED	Director	16/07/2013	16/07/2013	-	Active	NO
7	U52190RJ2005PTC021739	LOTUS RETAIL PRIVATE LIMITED	Director	16/07/2013	16/07/2013	-	Active	NO
8	U52190RJ2007PTC023775	FELIX RETAIL CREATIONS PRIVATE LIMITED	Director	16/07/2013	16/07/2013	-	Active	NO
9	U74992RJ2005PTC020266	VIRENDRA IMPEX PRIVATE LIMITED	Director	16/07/2013	16/07/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rahul Jain
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.09.2014

Names of Shareholders	No. of Shares
Shriti Singh Malhotra as Nominee of Lotus Retail Private Limited, India	1
Lotus Retail Private Limited, India	999999
Total	1000000

Equity Share Break up (Percentage of Total Equity)

As on 05.09.2014

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The Company is in the business of trading in Cosmetics and Toiletries.
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

· UCO Bank, Mid Corporate Branch, 5, Parliament Street, New Delhi - 110001, India

· The Hongkong And Shanghai Banking Corporation Limited

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Rupee term loans from banks [Terms of Re-payment and Interest The Working Capital Loan and Term Loan from the HDFC bank are re-payable on demand and interest on these loans as at the year end is 12.55% per annum]	7.006	17.006
Other loans and advances	1.200	0.000
Short-term borrowings
Rupee term loans from banks	10.000	7.416
Working capital loans from banks	63.439	132.877
Loans taken for vehicles [Term Loan from Finance Company i.e Toyota Financial Services Ltd. Amounting to Rs 2.066 Millions is secured against hypothecation of Motor Car.]	0.860	0.000
Total	82.505	157.299

Note :

Long term borrowing

Nature of Security:

(a) Term Loan & Working Capital Loan from HDFC Bank : Secured by exclusive charge by way of hypothecation of the entire current assets, moveable and immovable fixed assets of the company both present and future, further secured by personal guarantee of the promoter Sh. V.P. Sharma and Corporate guarantee of holding company Lotus Retail Private Limited and Equitable Mortgage of properties belonging to promoters/directors and relatives.

Terms of Re-payment and Interest

The Working Capital Loan and Term Loan from the HDFC bank are re-payable on demand and interest on these loans as at the year end is 12.55% per annum.

Short term borrowing

Term Loan & Working Capital Loan from HDFC Bank : Secured by exclusive charge by way of hypothecation of the entire current assets, moveable and immovable fixed assets of the company both present and future, further secured by personal guarantee of the promoter Sh. V.P. Sharma and Corporate guarantee of holding company Lotus Retail Private Limited and Equitable Mortgage of properties belonging to promoters/directors and relatives.

Working Capital Loan includes a sum of Rs.52.280 Millions towards Buyers Credit which is financed by J.P. Morgan Chase bank, Singapore to be repaid on due dates by HDFC bank out of sanctioned working capital.

Banking Relations :
Auditors :
Name :	R. Mohnot and Company Chartered Accountants
Address :	C-68, Lal Kothi, Jaipur - 302015, Rajasthan, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAEFR3658K
Memberships :	--
Collaborators :	--
Others Entities:	· Planet Retail Holdings Private Limited [U52190RJ1999PTC015993] · Magnus Fashion Tradelinks Private Limited [U52190RJ2005PTC020202]
Holding company :	Lotus Retail Private Limited [U52190RJ2005PTC021739]

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs.10.000 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	10.000	10.000	10.000
(b) Reserves & Surplus	523.477	362.034	242.397
(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)	533.477	372.034	252.397
(3) Non-Current Liabilities
(a) long-term borrowings	76.262	140.209	96.894
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	4.000	2.000	2.000
(d) long-term provisions	9.797	7.175	4.980
Total Non-current Liabilities (3)	90.059	149.384	103.874
(4) Current Liabilities
(a) Short term borrowings	74.300	140.293	105.083
(b) Trade payables	239.667	126.071	76.179
(c) Other current liabilities	91.412	95.755	96.844
(d) Short-term provisions	21.425	20.478	26.432
Total Current Liabilities (4)	426.804	382.597	304.538
TOTAL	1050.340	904.015	660.809
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	210.360	193.493	172.572
(ii) Intangible Assets	18.847	12.759	15.063
(iii) Capital work-in-progress	7.139	12.129	9.005
(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)	6.798	5.588	2.551
(d) Long-term Loan and Advances	91.246	80.658	70.890
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	334.390	304.627	270.081
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	556.860	468.582	305.778
(c) Trade receivables	75.128	53.880	28.756
(d) Cash and cash equivalents	67.053	37.345	10.804
(e) Short-term loans and advances	13.264	36.090	43.691
(f) Other current assets	3.645	3.491	1.699
Total Current Assets	715.950	599.388	390.728
TOTAL	1050.340	904.015	660.809

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1698.000	1388.300	1092.429
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
Less	EXPENSES	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	283.200	206.100	187.786
Less/ Add	DEPRECIATION/ AMORTISATION	33.800	27.900	23.171
	PROFIT/ (LOSS) BEFORE TAX	249.400	178.200	164.615
Less	TAX	87.900	58.600	57.731
	PROFIT/ (LOSS) AFTER TAX	161.500	119.600	106.884
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	322.400	202.800	95.916
	Balance Carried to the B/S	483.900	322.400	202.800
	IMPORTS
	Trading Goods	604.932	446.000	277.425
	Capital Goods	7.085	7.960	6.267
	TOTAL IMPORTS	612.017	453.960	283.692
	Earnings / (Loss) Per Share (Rs.)	161.5	119.6	--

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	9.51	8.61	9.78
Return on Total Assets (PBT/Total Assets}	(%)	24.06	20.11	25.35
Return on Investment (ROI) (PBT/Networth)		0.47	0.48	0.65
Debt Equity Ratio (Total Debt /Networth)		0.28	0.75	0.80
Current Ratio (Current Asset/Current Liability)		1.68	1.57	1.28

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	10.000	10.000	10.000
Reserves & Surplus	242.397	362.034	523.477
Share Application money pending allotment	0.000	0.000	0.000
Net worth	252.397	372.034	533.477
long-term borrowings	96.894	140.209	76.262
Short term borrowings	105.083	140.293	74.300
Total borrowings	201.977	280.502	150.562
Debt/Equity ratio	0.800	0.754	0.282

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	1092.429	1388.300	1698.000
		27.084	22.308

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	1092.429	1388.300	1698.000
Profit	106.884	119.600	161.500
	9.78%	8.61%	9.51%

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	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	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	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

NOTE :

The registered office of the company has been shifted from E - 10, Gokhale Marg, 'C' Scheme, Jaipur – 302001, Rajasthan, India to the present address w.e.f. 01.02.2009.

FINANCIAL HIGHLIGHTS

During the Fiscal 2013-14, Net Revenue at Rs. 1698.000 Millions was increased by a moderate 22% as compared to Net Revenue at Rs. 1388.300 Millions of previous financial year 2012-13. Profit before Tax for the Fiscal 2013-14 was up by an impressive 40% at Rs. 249.400 Millions as compared to Rs. 178.200 Millions for the previous financial year and Profit After Tax stood at Rs. 161.400 Millions up by 35% as compared to Rs. 119.600 Millions for the corresponding period of the previous financial year.

OVERVIEW OF OPERATIONS

Company’s products received fairly good response and acceptance in Indian consumers. Enthused by the response, the Company embarking on moderate expansion plan for the next financial year and in the process the company has signed up for new stores to be opened in upcoming Malls and high streets as well as in Tier ?II and Tier - III cities across the country and already become a name to reckon in the cosmetic retail industry of the Country for its brands under the name and style of ‘The Body Shop’ and ‘Kiehl’s’.

Since the last report, the Company has opened 16 new stores of ‘The Body Shop’ and ‘Kiehl’s’ at Metro, Tier ‘I and Tier-II cities across the country. At present the Company has 124 stores across Pan-India.

The Directors are pleased to intimate that the Company has achieved many prestigious awards at locally as well as at The Global Franchisee Forum for Asia Pacific region. The awards received at The Global Franchise Forum are symbol of Excellence in Retail, of setting up International standards of Retail Stores and Retail practices by Quest Retail and launching and successfully establishing ‘The Body Shop’ brand in the Indian Market.

There has been a moderate growth of 31% in the sales for the first quarter of current financial year 2013-14 vis-à-vis the sales of the corresponding quarter of last year, however the margins are under tremendous pressure due to adverse foreign exchange rate clubbed with increase in power and other operational costs. Looking into the potential for consumption of cosmetic and toiletries products in India, the directors are hopeful of sustainability in the growth trajectory.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Loans and advances from others [Terms of Repayment of Long Term Borrowings: Repayable after 12 months from the Balance Sheet date, however no repayment term has been stipulated.]	68.056	123.204
Total	68.056	123.204

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10526124	04/10/2014	8,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI  TED	25, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, IN  DIA	C29840584
2	10519124	28/08/2014	80,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMI  TED	25, BARAKHAMA ROAD, NEW DELHI, DELHI - 110001, IND  IA	C19971415
3	10312859	30/01/2013 *	250,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W  , MUMBAI, MAHARASHTRA - 400013, INDIA	B68897917

* Date of charge modification

FIXED ASSETS

· Leasehold Improvements

· Furniture and Fixtures

· Office and Other Equipments

· Computers

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

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	SUM
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		58

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.