MIRA INFORM REPORT

Report No. :	295662
Report Date :	05.01.2015

IDENTIFICATION DETAILS

Name :	SHALIMAR CHEMICAL WORKS LIMITED
Registered Office :	92 E, Alipore Road, Kolkata – 700027, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.05.1945
Com. Reg. No.:	21-012325
Capital Investment / Paid-up Capital :	Rs.100.730 Millions
CIN No.: [Company Identification No.]	U24299WB1945PLC012325
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECS7442K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Coconut Oil, Mustard Oil, Edible Oil, Vegetable Oil, Meat Masala, Cooking Oil, Ayurvedic Jasmine Oil, Ayurvedic Hair Oil, Medicated Hair Oil, Chef Spices etc.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 2800000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well established company having a good track record. Profitability of the company seems to be decent. General financial position of the company seems to be sound and healthy. Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered for business dealings at usual trade terms and condition.

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	23.10.2013

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. Indronil Roy
Designation :	Deputy Sales Manager
Contact No.:	91-9831832899
Date :	03.01.2015

LOCATIONS

Registered Office/ Factory :	92 E, Alipore Road, Kolkata – 700027, West Bengal, India
Tel. No.:	91-33-24793166 / 2169 / 2382 / 9026 / 5907
Mobile No.:	91-9830336353 (Mr. Prakash Sarkar) 91-9831832899 (Mr. Indronil Roy)
Fax No.:	91-33-24793557
E-Mail :	srmanager.accounts@scwl-india.com corporate@scwl-india.com
Website :	http://www.scwl-india.com
Branch Office :	Located at Agartala Ahmedabad Burdwan Calicut Cuttack Delhi Guwahati Hyderabad Jaipur Jamshedpur Kanpur Madhupura Ganj Mumbai Patna Raipur Siliguri Tura Uttarakhand

DIRECTORS

As on 14.08.2014

Name :

Mr. Lokenath Bhattacharjee

Designation :

Managing Director

Address :

3B, Rajhans, 6 Hastings Park Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

29.08.1948

Date of Appointment :

03.08.1982

DIN No.:

00562943

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	U24299WB1945PLC012325	SHALIMAR CHEMICAL WORKS LTD	Managing director	01/04/2013	03/08/1982	-	Active	NO
2	U15143WB2002PTC094569	RONIL OIL & FOODS PRIVATE LIMITED	Director	29/04/2002	29/04/2002	-	Active	NO
3	U15142WB2003PTC096671	SHALIMAR OVERSEAS INDUSTRIES PRIVATE LIMITED	Director	30/07/2003	30/07/2003	-	Active	NO
4	U51909WB1993PTC060480	ZEDD COMMERCIAL PRIVATE LIMITED	Director	09/10/2010	09/10/2010	-	Active	NO

Name :

Mr. Somenath Bhattacharjee

Designation :

Managing Director

Address :

3B, Rajhans, 6 Hastings Park Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

04.10.1955

Date of Appointment :

01.05.1997

DIN No.:

00562880

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	U24299WB1945PLC012325	SHALIMAR CHEMICAL WORKS LTD	Managing director	01/04/2013	01/05/1997	-	Active	NO
2	U15143WB2002PTC094569	RONIL OIL & FOODS PRIVATE LIMITED	Director	29/04/2002	29/04/2002	-	Active	NO
3	U15142WB2003PTC096671	SHALIMAR OVERSEAS INDUSTRIES PRIVATE LIMITED	Director	30/07/2003	30/07/2003	-	Active	NO
4	U51909WB1993PTC060480	ZEDD COMMERCIAL PRIVATE LIMITED	Director	09/10/2010	09/10/2010	-	Active	NO

Name :

Mr. Ashok Kumar Bose

Designation :

Director

Address :

16-2-147/3, Anand Nagar, Malakpet, Hyderabad – 500036, Andhra Pradesh, India

Date of Birth/Age :

10.06.1959

Date of Appointment :

13.04.2001

DIN No.:

00562717

Name :

Mr. Nikhilesh Basu

Designation :

Director

Address :

18-8-278/A/2, Rakshapuram Colony, Saidabad, Hyderabad - 500059, Andhra Pradesh, India

Date of Birth/Age :

11.03.1961

Date of Appointment :

13.04.2001

DIN No.:

00562807

Name :

Mr. Kushal Bhattacharjee

Designation :

Whole Time Director

Address :

3B, Rajhans, 6 Hastings Park Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

13.06.1980

Date of Appointment :

09.11.2012

DIN No.:

02236632

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	U24299WB1945PLC012325	SHALIMAR CHEMICAL WORKS LIMITED	Whole-time director	09/11/2012	16/06/2008	-	Active	NO

Name :

Mrs. Indrani Bhattacharjee

Designation :

Director

Address :

3B, Rajhans, 6 Hastings Park Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

15.08.1954

Date of Appointment :

16.06.2008

DIN No.:

02236514

Name :

Mrs. Chandralekha Bhattacharjee

Designation :

Director

Address :

3B, Rajhans, 6 Hastings Park Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

24.08.1966

Date of Appointment :

16.06.2008

DIN No.:

02236044

Name :

Mr. Tilok Bhattacharjee

Designation :

Director

Address :

3B, Rajhans, 6 Hastings Park Road, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

12.01.1988

Date of Appointment :

09.11.2012

DIN No.:

06428615

KEY EXECUTIVES

Name :	Mr. Indronil Roy
Designation :	Deputy Sales Manager

MAJOR SHAREHOLDERS

As on 14.08.2014

Names of Shareholders	No. of Shares
Lokenath Bhattacharjee	4567261
Somenath Bhattacharjee	4367540
Ashok Kumar Bose	1200
Nikhilesh Basu	1200
Kushal Bhattacharjee	215000
Indrani Bhattacharjee	204943
Chandralekha Bhattacharjee	204946
Tilok Bhattacharjee	205000
Hirak Bhattacharjee	205000
Suraiya Minerals and Chemicals Private Limited, India	143
Panchana Mondal	50480
Sadhan Chandra Mondal	37378
Kanailal Naskar	6442
Baloram Naskar	6429
Total	10072962

Equity Share Break up (Percentage of Total Equity)

As on 14.08.2014

Category	Percentage
Directors or relatives of Directors	98.98
Other top fifty shareholders	1.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Coconut Oil, Mustard Oil, Edible Oil, Vegetable Oil, Meat Masala, Cooking Oil, Ayurvedic Jasmine Oil, Ayurvedic Hair Oil, Medicated Hair Oil, Chef Spices etc.

Products :

Product Description	Item Code No. (ITC Code)
Filtered Coconut Oil	1513
Spices(Chilli)	0904
Spices(Turmeric)	0910
Filtered Mustard Oil	1514

Brand Names :

--

Agencies Held :

--

Exports :

Products :

Finished Goods

Countries :

• Bangladesh
• UAE
• Nepal
• Canada

Imports :

Not Divulged

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Duvulged

Customers :

End Users

No. of Employees :

500 (Approximately)

Bankers :

• Andhra Bank, Kolkata Main Branch, 14/1 B, Ezra Street, Kolkata - 700001, West Bengal, India
• Kotak Mahindra Bank Limited, 7th Floor, Ambadeep Building, K G Marg, New Delhi, Delhi - 110001, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Rupee term loans from banks	38.407	0.033
SHORT TERM BORROWINGS
Working capital loans from banks	210.725	195.635
Total	249.132	195.668

Auditors :
Name :	S. R. Kar and Associates Chartered Accountants
Address :	66J, Tollygunge Road, Kolkata-700033, West Bengal, India
PAN No.:	AEPPK1823G
Memberships :	--
Collaborators :	--
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Ronil Oil and Foods Private Limited CIN No.:- U15143WB2002PTC094569 Shalimar Overseas Industries Private Limited CIN No.:- U15142WB2003PTC096671 Nilgiri Oil and Allied Industries Rajatgiri Oil Industries

CAPITAL STRUCTURE

As on 14.08.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10072962	Equity Shares	Rs.10/- each	Rs.100.730 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	100.730	5.000	5.000
(b) Reserves & Surplus	863.972	785.929	668.884
(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)	964.702	790.929	673.884
(3) Non-Current Liabilities
(a) long-term borrowings	38.407	0.033	1.877
(b) Deferred tax liabilities (Net)	2.500	2.495	2.370
(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)	40.907	2.528	4.247
(4) Current Liabilities
(a) Short term borrowings	210.725	195.635	203.442
(b) Trade payables	0.000	0.000	0.000
(c) Other current liabilities	119.693	154.648	130.081
(d) Short-term provisions	289.244	6.799	7.681
Total Current Liabilities (4)	619.662	357.082	341.204
TOTAL	1,625.271	1,150.539	1,019.335
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	209.149	170.155	137.448
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	26.250	7.854	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	3.078	3.078	3.078
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	290.914	1.080	0.834
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	529.391	182.167	141.360
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	424.668	375.310	190.996
(c) Trade receivables	3.496	4.178	3.300
(d) Cash and cash equivalents	601.389	543.337	651.197
(e) Short-term loans and advances	55.133	37.127	31.060
(f) Other current assets	11.194	8.420	1.422
Total Current Assets	1,095.880	968.372	877.975
TOTAL	1,625.271	1,150.539	1,019.335

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		3,432.347	3,058.194	3,030.188
		Other Income		55.214	47.555	19.150
		TOTAL (A)		3,487.561	3,105.749	3,049.338
Less	EXPENSES
		Cost of Materials Consumed		2,608.592	2,186.904	2,238.026
		Purchase of Stock-in-trade		17.034	13.375	6.380
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(92.938)	(40.314)	24.214
		Employee Benefits Expenses		39.955	32.947	28.604
		Other Expenses		552.338	571.035	459.317
		Changes in inventories of finished goods, work-in-progress and stock-in-trade		182.298	120.552	83.713
		TOTAL (B)		3,307.279	2,884.499	2,840.254
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			180.282	221.250	209.084
Less	FINANCIAL EXPENSES (D)			25.087	18.657	19.377
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			155.195	202.593	189.707
Less	DEPRECIATION/ AMORTISATION (F)			24.572	19.611	16.814
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			130.623	182.982	172.893
Less	TAX (H)			44.962	60.087	56.357
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			85.661	122.895	116.536
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	NA	3058.194	3030.188
	Earnings / (Loss) Per Share (Rs.)			8.50	245.81	233.09

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	2.50	4.02	3.85
Operating Profit Margin (PBDIT/Sales)	(%)	5.25	7.23	6.90
Return on Total Assets (PBT/Total Assets}	(%)	6.89	16.06	17.01
Return on Investment (ROI) (PBT/Networth)		0.14	0.23	0.26
Debt Equity Ratio (Total Debt /Networth)		0.26	0.25	0.30
Current Ratio (Current Asset/Current Liability)		1.77	2.71	2.57

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	5.000	5.000	100.730
Reserves & Surplus	668.884	785.929	863.972
Share Application money pending allotment	0.000	0.000	0.000
Net worth	673.884	790.929	964.702
Long Term borrowings	1.877	0.033	38.407
Short Term borrowings	203.442	195.635	210.725
Total borrowings	205.319	195.668	249.132
Debt/Equity ratio	0.305	0.247	0.258

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	3,030.188	3,058.194	3,432.347
		0.924	12.234

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	3,030.188	3,058.194	3,432.347
Profit	116.536	122.895	85.661
	3.85%	4.02%	2.50%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

TURNOVER:

The Company’s turnover during the year under review was Rs.3487.600 Millions as against Rs.3105.700 Millions during the previous year i.e. an increase of 12.30% approx. over the previous year’s sale.

PROFITS:

For the year, Company earned a profit after tax of Rs.85.660 Millions as against Rs.122.895 Millions last year, a decrease of Rs.37.235 Millions. The decrease of profit after tax is due to sudden jump in Raw Material prices mainly Coconut Oil.

The Company achieved 12.30% growth in terms of Sales. During the year the Company’s borrowing from Andhra Bank have increased to Rs.210.725 Millions.

FUTURE PROSPECTS:

The Current Year of the Company has started with an optimistic note. Barring any unforeseen circumstances, the Directors are confident of achieving a fair growth in all sphere of its activities. The Company has introduced its new products, Ayurvedic Hair Oil in the market. The Company shall shortly introduce some other range of products in the Hair Oil segment as well as in the Anticeptic Cosmetic segment. During the Current year the Company has planned to increase its Coconut Oil and Spices production drastically by the way of setting up off highly mechanized plants at Hyderabad.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10466899	04/08/2014 *	30,000,000.00	Kotak Mahindra Bank Limited	7th Floor, Ambadeep Building, K G Marg, New Delhi, Delhi - 110001, India	C16144164
2	10466903	04/12/2013	60,000,000.00	Kotak Mahindra Bank Limited	7th Floor, Ambadeep Building, K G Marg, New Delhi, Delhi - 110001, India	B92262559
3	80044049	27/01/2014 *	232,000,000.00	Andhra Bank	Kolkata Main Branch, 14/1b, Ezra Street, Kolkata, West Bengal - 700001, India	B97791073

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.62.39
UK Pound	1	Rs.94.17
Euro	1	Rs.73.61

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUM
Report Prepared by :	VNT

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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.