MIRA INFORM REPORT

Report No. :	302927
Report Date :	12.01.2015

IDENTIFICATION DETAILS

Name :	HRS PROCESS SYSTEMS LIMITED (w.e.f 22.04.2010)
Formerly Known As :	HRS PROCESS SYSTEMS PRIVATE LIMITED
Registered Office :	201, 2^nd Floor, Karan Selene, 851, Bhandarkar Institute Road, Pune – 411004, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.04.2003
Com. Reg. No.:	25-017846
Capital Investment / Paid-up Capital :	Rs. 5.456 Millions
CIN No.: [Company Identification No.]	U29198PN2003PLC017846
TAN No.: [Tax Deduction & Collection Account No.]	PNEH04305A
PAN No.: [Permanent Account No.]	AABCH2679G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Seller of Heat Exchangers
No. of Employees :	110 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 420000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “HRS International Limited, UK.” It is an established company having satisfactory track The company possesses a favourable financial profile marked by modest networth, low gearing and healthy debt protection metrics. Management has reported a significant increase in its sales volume as well as a net profitability during 2014. The ratings also take into consideration the working capital intensive, modest scale of operations and increasing competition. However, trade relations are fair. Business is active. Payments terms are reported as usually correct. In view of technological support extended form its parent, 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 – 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: BBB–
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	December 20,2013
Rating Agency Name	CRISIL
Rating	Short term rating: A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	December 20,2013

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. Vinay Gokhale
Designation :	Finance Manager
Contact No.:	91-20-25663581

LOCATIONS

Registered / Corporate Office 1:	201, 2^nd Floor, Karan Selene, 851, Bhandarkar Institute Road, Pune – 411004, Maharashtra, India
Tel. No. :	91-20-25663581/ 6047894/ 25663582/ 66047894/ 66047895
Mobile No. :	91-20-25663583
Fax No. :	91-20-25663583
E-Mail :	finance@hrsasia.co.in cthe@hrsasia.co.in
Website :	http://www.hrsasia.co.in
Area :	7100 Sq.fts
Location :	Rented
Corporate Office 2:	501/502, Karan Selene, 851, Bhandarkar Institute Road, Pune – 411004, Maharashtra, India
Tel. No. :	91-91-2137-676701
Fax No. :	91-91-2137-676705
E-Mail :	info@hrsasia.co.in
Area :	15000 Sq. fts
Location :	Owned
Factory:	Gat No.565/1, Koregaon, Bhima, Taluka Shirur, District Pune-411 004, Maharashtra, India-
Tel. No. :	91-2137-676701
Fax No. :	91-2137-676705
E-Mail :	info@hrsasia.co.in
Area :	15000 Sq. fts
Location :	Owned

DIRECTORS

As on 25.09.2014

Name :	Mr. Gokuldas Venugopalan
Designation :	Managing Director
Address :	Flat No.12, Anushka, Bhau Patil Road, Bopodi, Pune - 411003, Maharashtra, India
Date of Birth/Age :	03.06.1963
Date of Appointment :	04.01.2013
DIN No. :	00489737
Name :	Mr. Rajendra Kantrao Dawkar
Designation :	Whole – time Director
Address :	Building No. F1-6, Citadel, B.T Kawade Road, Ghorpadi, Pune - 411001, Maharashtra, India
Date of Birth/Age :	06.02.1967
Date of Appointment :	01.04.2010
DIN No. :	02581847
Name :	Mr. Steven John Pither
Designation :	Director
Address :	10-12, Caxton Way, Watford, England
Date of Appointment :	13.06.2003
DIN No. :	02047015

KEY EXECUTIVES

Name :	Mr. Vinay Gokhale
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2014

Names of Shareholders	No. of Shares
HRS International Limited, England	469146
HRS Heat Exchangers Limited, England	51
Gokuldas Venugopalan	76380
Elizabeth Das	01
Francisco Javier Abad Ruiz	01
Steven John Pither	01
Twydle Michael Robert	01
Total	545581

Equity Share Break up (Percentage of Total Equity)

As on 25.09.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	86.00
Directors or relatives of Directors	14.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Seller of Heat Exchangers
Exports :
Products :	· Heat Exchangers
Countries :	· Malaysia · Australia · Thailand · Dubai · US
Imports :
Products :	Raw Material
Countries :	· Germany · Italy · US.
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

110 (Approximately)

Bankers :

State Bank of India, Deccan Gymkhana, Pune- 411004, Maharashtra, India

Facilities :

CC: Rs. 45.000 Millions // LC: Rs. 35.000 Millions(From State Bank of India )

BC: Rs. 30.000 Millions // TC : Rs. 7.800 Millions

Secured Loan

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

Term loan from State Bank of India

Primary Security: Plant and MAhicenry, Land and Building at Koregaon Bhima Taluka Shirur Pune

Collateral Security: other Fixed / Movable assets of company.

4.731

11.623

Short-term borrowings

Cash Credit facility from State Bank of lndia

Secured Against,

Primary Security: Hypothecation of Stock of Goods (Including Goods

in- transit) and receivables.

Collateral Security: Plant and Machinery. Land anbd Building at Koregaon Bhima, Taluka Shirur. Other Fixed/ Movable Assets.

20.648

31.832

Export Packing Credit

0.000

3.529

Term loans from State Bank Of India

Secured Against,

Primary Security: Plant and Machinely. Land and Building at Koregaon BhimaJaluka Shirur

Collateral Security: Other Fixed/ Movable Assets of company

7.059

7.059

Total

32.438

54.043

Note:

Particulars of loan	Rs.	Term of repayment
Term loan from State Bank of India	4.731	Repayable in 32 monthly installment of Rs. 0.588 Millions, along with interest of 14.60% p.a
Total	4.731

Banking Relations :
Auditors :
Name :	Naniwadekar and Company Chartered Accountants
Address :	2, Nalini Apartments, Plot No. 3/10, Opp. Sndt College, Erandawane, Pune – 411004, Maharashtra, India
Tel. No. :	91-20-25439238/ 25448641
Fax No. :	91-20-25439238
E-Mail :	nanico@vsnl.com
Income-tax PAN of auditor or auditor's firm :	AANPN9281B
Holding Company:	· HRS International Limited, UK
Fellow Subsidiaries::	· HRS Heat Exchangers SDN BHD · HRS FUNKE Heat Exchange FZCO · HRS Heat Exchangers Limited, UK · HRS Heat Exchangers SLU, Spain · HRS Process Technology INC · Heat Exchangers Spares com

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
545581	Equity Shares	Rs.10/- each	Rs. 5.456 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	5.456	5.100	5.100
(b) Reserves & Surplus	140.069	125.284	119.053
(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)	145.525	130.384	124.153
(3) Non-Current Liabilities
(a) long-term borrowings	4.731	11.623	0.000
(b) Deferred tax liabilities (Net)	7.637	6.108	2.907
(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)	12.368	17.731	2.907
(4) Current Liabilities
(a) Short term borrowings	27.707	42.420	27.330
(b) Trade payables	59.989	29.499	14.331
(c) Other current liabilities	66.877	41.113	31.999
(d) Short-term provisions	38.974	30.655	17.703
Total Current Liabilities (4)	193.547	143.687	91.363
TOTAL	351.440	291.802	218.423
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	102.371	88.883	69.959
(ii) Intangible Assets	0.968	0.664	0.217
(iii) Capital work-in-progress	0.000	0.502	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	4.593	4.557	4.335
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	107.932	94.606	74.511
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	107.406	85.850	86.093
(c) Trade receivables	106.977	72.806	32.135
(d) Cash and cash equivalents	6.245	5.735	5.144
(e) Short-term loans and advances	21.091	30.254	16.661
(f) Other current assets	1.789	2.551	3.879
Total Current Assets	243.508	197.196	143.912
TOTAL	351.440	291.802	218.423

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	507.026	408.372	290.690
	Other Income	4.151	1.237	1.964
	TOTAL (A)	511.177	409.609	292.654
Less	EXPENSES
	Cost of Materials Consumed	244.558	199.354	160.979
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	17.632	7.143	(28.950)
	Employees benefits expense	87.552	71.487	52.155
	Other expenses	117.226	104.956	94.210
	TOTAL (B)	466.968	382.940	278.394
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	44.209	26.669	14.260
Less	FINANCIAL EXPENSES (D)	6.410	4.984	4.190
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	37.799	21.685	10.070
Less/ Add	DEPRECIATION/ AMORTISATION (F)	5.046	4.266	4.143
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	32.753	17.419	5.927
Less	TAX (I)	11.586	8.563	1.925
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	21.167	8.856	4.002
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	41.314	35.687	31.198
	TOTAL EARNINGS	41.314	35.687	31.198
	IMPORTS
	Raw Materials	57.266	37.242	27.505
	TOTAL IMPORTS	57.266	37.242	27.505
	Earnings / (Loss) Per Share (Rs.)	38.8	17.37	7.85

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT/ Sales	(%)	4.17	2.17	1.38
PBIDT / Sales	(%)	8.72	6.53	4.91
Return on Total Assets (PBT/Total Assets}	(%)	9.32	5.98	2.71
Return on Investment (ROI) (PBT/Networth)		0.23	0.13	0.05
Debt Equity Ratio (Total Debt /Networth)		0.22	0.41	0.22
Current Ratio (Current Asset/Current Liability)		1.26	1.37	1.58

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	5.100	5.100	5.456
Reserves & Surplus	119.053	125.284	140.069
Net worth	124.153	130.384	145.525
long-term borrowings	0.000	11.623	4.731
Short term borrowings	27.330	42.420	27.707
Total borrowings	27.330	54.043	32.438
Debt/Equity ratio	0.220	0.414	0.223

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	290.690	408.372	507.026
		40.484	24.158

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	290.690	408.372	507.026
Profit	4.002	8.856	21.167
	1.38%	2.17%	4.17%

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

CHANGE OF ADDRESS

The registered office of the company has been shifted from Pune – 411021, Maharashtra, India to the present address w.e.f 22.11.2006

COMPANY INFORMATION

Subject (formerly known as HRS Process Systems Private Limited) was incorporated on 01 April 2003, under the Companied Act, 1956.

The company is a part of HRS Group and is engaged in manufacture and sale of heat exchangers in domestic and export market.

The company is headquarted in Pune with manufacturing location at Koregaon Bims, Shirur

FUTURE PLANS

The company is planning to expand local reach by opening regional offices in north and south India. This facility will help the company be in close touch with customers thereby enhancing their visibility and enabling better business.

Their thrust with focus plan in key growth sectors - pharma, speciality chemicals, cement, steel, snack food, nutraceuticals, food processing, beverage will continue during the year.

Their brand ECOFLUX* will be further strengthened to include heat exchangers in exotic material which give good recognition and business value. Their products - plate heat exchangers, Hot water systems and CIP System - which are required in many sectors, like pharma, food processing, chemical process have good Customer response and they expect healthy growth.

International business is showing good growth with ASEAN economy improving, they expect good business in the coming year.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10029876	27/03/2012 *	165,300,000.00	STATE BANK OF INDIA	DECCAN GYMKHANA, PUNE, MAHARASHTRA - 411004, INDIA	B36228831

* Date of charge modification

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Guarantee	23.597	16.436
Other money for which the company is contingently liable – Income tax (Not Recongnised)	8.083	8.083
Total	31.680	24.519

FIXED ASSETS

v Tangible Assets

· Land

· Building

· Vehicles

· Computers

· Furniture and Fixtures

· Office Equipment

· Plant and Machinery

· Plant and Machinery – Electrical Installations

v Intangible Assets

· Computer Software

· Goodwill

PRESS RELEASES

HRS SYSTEMS PLANS TO DOUBLE REVENUE IN FIVE YEARS

SEPTEMBER 22, 2014

HRS OFFERS HEAT TRANSFER SOLUTIONS FOR PROCESSING APPLICATIONS ACROSS A SPECTRUM OF INDUSTRY SECTORS. IT PLANS TO DOUBLE ITS REVENUE TO RS 1000.000 MILLIONS FROM EXISTING RS 500.000 MILLIONS

HRS Process Systems, part of UK based HRS Group, a heat transfer specialist, is planning to double its revenue to Rs 1000.000 Millions form the existing Rs 500.000 Millions in the next five years.  It is now focusing the the sectors like food processing, pharma and steel and chemicals.

“In recent times, the food processing industry in India has seen reasonable traction. We are convinced that for this sector to continue to grow fast, energy efficiency will be a key differentiator. Large companies in this segment are already gearing up to introduce new varities of processed food products to suit the tastes of the Indian palette in addition to ramping up production of the current products. However, food waste processing, pharma and chemical could present the next big growth opportunity in India. Our company, known for its expertise in applied engineering and innovation, for pasteurizer, sterilizer for pulp, beverage and neutraceuticals, has already introduced a first-of-its-kind-products,” said V Gokuldas, managing director HRS Process Systems.

HRS offers heat transfer solutions for processing applications across a spectrum of industry sectors like chemical, petrochemicals, oil and gas, pharmaceutical, oil and fats, fertilizer, cement, steel, power, agro chemical, OEM (Original Equipment Manufacturers), paint, paper and pulp, textile, automotive, sugar, distillery and breweries, dairy and food and beverage.

Gokuldas added, “HRS is a “Our aim is to double the revenues in the next five years. Our thermal processing units and Ecoflux corrugated heat exchangers help to save 60 per cent of energy. The most energy spent in most of the plants is in the heating and cooling processes. The food industry was facing problem of efficient conversion of farm produce as the product gets easily perished before reaching the consumer. The need of the hour is advanced processing technology whereby we can process and store food for sufficient time required up to consumption. This in turn will see a significant traction in the heat exchangers or food systems space.”  The company has designed ‘HRS ParaDice’, specifically for value added processing in the food sector. It is capable of processing fruit and vegetable dices without any kind of breakage. It can also be used for blanching of vegetables and chilling of ready-to-eat fruits.

HRS PSL’s contribution to the global turnover is over 25 per cent and with the expansion the company expects to see this increase to 50 per cent in the future.  

HRS is one of the leading heat transfer specialists, offers thermal processing technology to some of the large chemical manufacturers such as Jubilant, Atul, Bayer, Syngenta, and Zuari Agro.

Over 45 per cent of the company’s business in India is generated from the food processing industry with a growth rate of 10 per cent year and will touch up to 50 per cent in future.

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.62.40
UK Pound	1	Rs.94.17
Euro	1	Rs.73.61

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUB
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		46

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.