MIRA INFORM REPORT

Report No. :	333565
Report Date :	23.07.2015

IDENTIFICATION DETAILS

Name :	SHRIRAM FOUNDRY PRIVATE LIMITED
Formerly Known :	SHRIRAM FOUNDRY LIMITED SHRIRAM FOUNDRY PRIVATE LIMITED
Registered Office :	47, Shivaji Park, Kolhapur - 416001, Maharashtra
Tel. No.:	91-231-2537395
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	18.07.1984
Com. Reg. No.:	11-033465
Capital Investment / Paid-up Capital :	Rs. 34.000 Million
CIN No.: [Company Identification No.]	U29141PN1984PTC033465
IEC No.:	3193002461
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCS7789Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Cylinder Blocks, Hydraulic Lift Hosing’s, Brake Discs, Pressure Plates and Hoses.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an old and established company incorporated during the year 1984 having a satisfactory track record. Available financial indicates company sound financial risk profile marked by healthy networthe position with low borrowings and favourable gap between trade payable and trade receivable. Further, the rating also takes into consideration good profitability margin of the company. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct and as per commitment. In view of long standing record and sound financial base, the company can be considered normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long-term Bank Facilities: BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August, 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 31-03-2013.

INFORMATION DENIED BY

Name :	Mr. M K Damakale
Designation :	Accountant
Contact No.:	91-231-2537395
Date :	23.07.2015

LOCATIONS

Registered Office :	47, Shivaji Park, Kolhapur - 416001, Maharashtra, India
Tel. No. :	91-231-2537395
Fax No. :	Not Available
E-Mail :	pgassociate@rediffmail.com shriramo@zanvargroup.com
Factory :	Plot No. 32, Sector-11, SIDCUL, Rudrapur – 263153, Uttarakhand, India

DIRECTORS

AS ON 15.11.2014

Name :	Neeraj Narendra Zanvar
Designation :	Director
Address :	52, Kasturi, Shivaji Park, Kolhapur - 416004, Maharashtra, India
Date of Birth/Age :	28.07.1982
Date of Appointment :	10.10.2010
DIN No. :	00239691
Name :	Narendra Rampratap Zanvar
Designation :	Managing director
Address :	52, Kasturi, Shivaji Park, Kolhapur - 416004, Maharashtra, India
Date of Birth/Age :	01.09.1957
Qualification :	B.E. - Electrical
Date of Appointment :	18.07.1984
DIN No. :	00239917
Name :	Ramprtap Shivnarayan Zanvar
Designation :	Managing director
Address :	52, Kasturi, Shivaji Park, Kolhapur - 416004, Maharashtra, India
Date of Birth/Age :	03.02.1935
Qualification :	B.E. Mech
Date of Appointment :	18.07.1984
DIN No. :	00239955
Name :	Shivpratap Bhavarlal Marda
Designation :	Director
Address :	2103, Building No. 3, Plot No. 6, Rukmini Nagar, Kolhapur – 416005, Maharashtra, India
Date of Appointment :	18.07.1984
DIN No. :	02131800
Name :	Rohan Narendra Zanvar
Designation :	Director
Address :	52, Kasturi, Shivaji Park, Kolhapur - 416004, Maharashtra, India
Date of Birth/Age :	31.03.1986
Qualification :	B.E.- Mech
Date of Appointment :	10.10.2010
DIN No. :	02373020

KEY EXECUTIVE

Name :	Mr. M K Damakale
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.11.2014

Names of Equity Shareholders	No. of Shares
Rampratap S. Zanvar	264000
Keshar P. Zanvar	202500
Narendra R. Zanvar	415500
Neeta N. Zanvar	120000
Neeraj N. Zanvar	73500
Rohan N. Zanvar	61500
Ramkrishna M. Dalya	27000
Subhash R. Dalya	76500
Rajendra R. Dalya	42000
Padmavati N. Dalya	7500
Zanvar Finance and Investments Private Limited, India	210000
Total	1500000

Names of Preference Shareholders	No. of Shares
Kesher R. Zanvar and A. M. Somani	500000
Kesher R. Zanvar and Neeraj N. Zanvar and Rohan N. Zanvar	350000
Rampratap S. Zanvar	500000
Narendra R. Zanvar	140000
Neeta N. Zanvar	410000
Jayshree Neeraj Zanvar	10
Total	1900010

AS ON 15.11.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cylinder Blocks, Hydraulic Lift Hosing’s, Brake Discs, Pressure Plates and Hoses.

Products :

Item Code No. (ITC Code)	Product Description
87083000	Motor Vehicle Parts

Brand Names :

--

Agencies Held :

--

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks: --

· The Saraswat Co-Operative Bank Limited, Rajarampuri Branch, Rajarampuri, Kolhapur - 416008, Maharashtra, India

· IDBI Bank Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· Bank of Baroda, Shivaji Chowk Branch, Kolhapur - 416012, Maharashtra, India

· Industrial Development Bank of India, Shahupuri Branch, Kolhapur, Kolhapur - 416001, Maharashtra, India

· HDFC Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Rupee term loans from banks	0.000	42.295
SHORT TERM BORROWINGS
Rupee term loans from banks (Hypothecation of book debts, stock etc)	109.510	70.701
Total	109.510	112.996

Auditors :
Name :	Sudhir Karambelkar and Company Chartered Accountants
Address :	2 6 D 'Monte ST, Bandra (West), Mumbai – 400050, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	ABQFS7442F
Memberships :	--
Collaborators :	--
Enterprises in which Promoters / Directors or their relatives are Substantially Interested :	· Ashta Liners Private Limited CIN No.: U35203MH1988PTC049015 · Zanvar Engineering Export Private Limited CIN No.: U29299PN1992PTC066272 · Rohan Industries · Accurate Engg. Works · E D Steels Private Limited CIN No.: U27310MH1975PTC018180 · Alka Engineering Works · Neeta Engineering Works · S J Iron and Steels Private Limited CIN No.: U27310MH1981PTC025508 · Kasturi Foundry Private Limited CIN No.: U27310PN2006PTC129014 · Vijan Engineers · Zanvar Finance and Investment Private Limited CIN No.: U65993MH1985PTC038190 · RSZ Industries · Zanvar Technology and Consultancy Services · Kasturi Tools

CAPITAL STRUCTURE

As on 15.11.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs. 20.000 Million
8000000	Preference Shares	Rs.10/- each	Rs. 80.000 Million
3000000	Preference Shares	Rs. 100/- each	Rs. 300.000 Million
	Total		Rs. 400.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs.10/- each	Rs. 15.000 Million
1,900,010	Preference Shares	Rs.10/- each	Rs. 19.000 Million
	Total		Rs. 34.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	34.000	34.000	34.000
(b) Reserves & Surplus	1577.208	1221.014	793.240
(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)	1611.208	1255.014	827.240
(3) Non-Current Liabilities
(a) Long-term Borrowings	21.185	63.480	190.913
(b) Deferred Tax Liabilities (Net)	147.330	134.388	120.497
(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)	168.515	197.868	311.410
(4) Current Liabilities
(a) Short term Borrowings	191.073	120.041	298.095
(b) Trade Payables	50.180	141.879	158.078
(c) Other Current Liabilities	18.350	61.438	130.511
(d) Short-Term Provisions	5.730	6.206	5.967
Total Current Liabilities (4)	265.333	329.564	592.651
TOTAL	2045.056	1782.446	1731.301
II. ASSETS
(1) Non-Current Assets
(a) Fixed Assets
(i) Tangible Assets	1100.179	1088.680	1027.028
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital Work-in-progress	2.500	6.875	22.295
(iv) Intangible Assets under Development	0.000	0.000	0.000
(b) Non-Current Investments	34.571	2.071	2.071
(c) Deferred Tax Assets (net)	0.000	0.000	0.000
(d) Long-Term Loan and Advances	31.119	65.413	25.455
(e) Other Non-Current Assets	1.404	1.639	1.873
Total Non-Current Assets	1169.773	1164.678	1078.722
(2) Current Assets
(a) Current Investments	200.043	0.000	0.000
(b) Inventories	161.214	149.488	177.008
(c) Trade Receivables	339.873	296.910	312.278
(d) Cash and Cash Equivalents	42.671	26.645	57.886
(e) Short-Term Loans and Advances	130.832	144.049	104.521
(f) Other Current Assets	0.650	0.676	0.886
Total Current Assets	875.283	617.768	652.579
TOTAL	2045.056	1782.446	1731.301

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2842.198	2834.829	2970.724
		Other Income	24.844	16.816	13.011
		TOTAL (A)	2867.042	2851.645	2983.735
Less	EXPENSES
		Cost of Materials Consumed	1686.988	1643.618	1858.673
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6.541)	22.657	(24.635)
		Employees benefits expense	104.297	99.912	97.780
		Other expenses	489.342	511.162	473.579
		Extraordinary Items	9.009	0.000	0.000
		TOTAL (B)	2283.095	2277.349	2405.397
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		583.947	574.296	578.338
Less	FINANCIAL EXPENSES (D)		6.463	36.904	72.205
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		577.484	537.392	506.133
Less/ Add	DEPRECIATION/ AMORTISATION (F)		78.601	71.265	69.611
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		498.883	466.127	436.522
Less	TAX (H)		141.131	36.946	64.130
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		357.752	429.181	372.392
	EARNINGS IN FOREIGN CURRENCY		273.306	203.982	224.038
	IMPORTS		0.000	7.775	7.390
	Earnings / (Loss) Per Share (Rs.)		238.50	286.12	219.50

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	32.314	113.110
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	443.843	466.127	436.522

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	12.59	15.14	12.54
Operating Profit Margin (PBDIT/Sales)	(%)	20.55	20.26	19.47
Return on Total Assets (PBT/Total Assets}	(%)	24.84	26.28	25.57
Return on Investment (ROI) (PBT/Networth)		0.31	0.37	0.53
Debt Equity Ratio (Total Debt/Networth)		0.13	0.15	0.59
Current Ratio (Current Asset/Current Liability)		3.30	1.87	1.10

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	34.000	34.000	34.000
Reserves & Surplus	793.240	1221.014	1577.208
Net worth	827.240	1255.014	1611.208
long-term Borrowings	190.913	63.480	21.185
Short-term Borrowings	298.095	120.041	191.073
Total borrowings	489.008	183.521	212.258
Debt/Equity ratio	0.591	0.146	0.132

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2970.724	2834.829	2842.198
		(4.574)	0.260

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2970.724	2834.829	2842.198
Profit	372.392	429.181	357.752
	12.54%	15.14%	12.59%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	---
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS

HIGH COURT OF BOMBAY
CASE DETAILS
BENCH:- BOMBAY
PRESENTATION DATE: 21/01/2015
STAMP NO:- WPST/1728/2015			FILING DATE:- 21/01/2015
Reg. No.:-WP/4967/2015			Reg. Date :-03/06/2015
PETITIONER:-	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED	RESPONDENT:-		SHRIRAM FOUNDRY LIMITED
PETN.ADV:-	DSK LEGAL (I1590)	RESP. ADV.:		RAKESH KUMAR SINGH (I5768)
DISTRICT:-	KOLHAPUR
BENCH:-	SINGLE
STATUS:-	PRE-ADMISSION
Next date :-	13/08/2015	STAGE:-		PETITIONS FOR ADMISSION – FRESH [CIVIL SIDE MATTERS]
CORAM:-	HON’BLE SHRI JUSTICE R.M. SAVANT
LAST DATE:-	18/06/2015	STAGE:-		PETITIONS FOR ADMISSION – FRESH [CIVIL SIDE MATTERS]
LAST CORAM:-	HON’BLE SHRI JUSTICE R.M. SAVANT
ACT:-	ELECTRICITY SUPPLIES ACT, 1948

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90090873	18/02/2009 *	105,000,000.00	THE SARASWAT CO-OPERATIVE BANK LTD.	KOLHAPUR BRANCH, RAJARAMPUR, KOLHAPUR, MAHARASHTR  A - 416008, INDIA	A60314036

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Other loans and advances, others	21.185	21.185
SHORT TERM BORROWINGS
Intercorporate borrowings	81.563	49.340
Total	102.748	70.525

ECONOMIC SCENE

The automobile industry including manufacturers of Commercial Vehicles, Passenger Vehicles, Tractors, etc. sources the various components for engine and body from other manufacturers of these components. As per the report from Society of Indian Automobile Manufacturers (SIAM), it is expected that the turnover of Auto component industry will grow by 10-12%.

However, the Auto Component Industry is exposed to cyclical downturns. The continuous increase in prices of base metals, power the fuel is not compensated fully by increase in sale price of components since the prices are controlled by large industrial companies and market competition. This always leads to reduce profitability. Availability of trained and qualified labour is a serious obstacle in growth. Hence, there is always a compulsion of automisation of plant and machinery.

In spite of all these limitations and pressures, your company is trying to increase the turnover by developing new cost effective products by advanced manufacturing techniques.

FINANCE

The company has reduced long term borrowings to Rs. 21.200 Million as on 31/03/2014 from Rs. 63.400 Million as on 31/03/2013. The Directors place on record sincere thanks for the co-operation extended by the Bankers viz, The Sarswat Co-op Bank Limited, IDBI Bank, HDFC Bank, etc.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Other Equipments

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. 63.53
UK Pound	1	Rs. 99.19
Euro	1	Rs. 69.60

INFORMATION DETAILS

Information Gathered by :	SPR
Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		50

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.