MIRA INFORM REPORT

Report No. :	334065
Report Date :	31.07.2015

IDENTIFICATION DETAILS

Name :	H&V ADVANCED MATERIALS (INDIA) PRIVATE LIMITED (w.e.f. 22.12.2014)
Formerly Known As :	RAMAN FIBRESCIENCE PRIVATE LIMITED
Registered Office :	Survey No. 38, Mysore - Ooty Road, 12^th KM, K.N. Hundi, Kadakola Post, Mysuru – 571311, Karnataka
Tel. No.:	91-80-41306528
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	05.01.2007
Com. Reg. No.:	08-041393
Capital Investment / Paid-up Capital :	Rs. 51.607 Million
CIN No.: [Company Identification No.]	U21099KA2007PTC041393
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCR4755M
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged primarily in the manufacture of specially engineered Glass Fibre Mat with application as battery separator and also High Efficiency Particulate Air (HEPA) media made to the highest international specifications, Contract research and development in various fiber composite materials.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 290000
Status :	Satisfactory
Payment Behavior :	Usually correct
Litigation :	Clear
Comments :	Subject Company was incorporated in the year 2007 with the name of “Raman FibreScience Private Limited” and name got changed to “H&V Advanced Materials (India) Private Limited” with effect from 22th December 2014. It is having satisfactory track. Rating takes into consideration sound financial risk profile marked by adequate revenue base and acceptable gearing of the company in FY14. Further company has achieved significant growth in its sales turnover and net profile in FY14further net profitability also decent i.e. 9%. Overall financial condition of the company appears to be decent. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings with 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

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.

LOCATIONS

Registered Office :	Survey No. 38, Mysore - Ooty Road, 12^th KM, K.N. Hundi, Kadakola Post, Mysuru – 571311, Karnataka, India
Tel. No.:	91-80-41306528
Fax No.:	91-80-41306529
E-Mail :	srinivasaiah@ramanfibre.com aroonraman@yahoo.co.uk

DIRECTORS

AS ON 15.09.2014

Name :

Aroon Raman

Designation :

Director

Address :

No.100, 5^TH Main, Paramahamsa Road, Yadavagiri, Mysore, 570020, Karnataka, India

Date of Birth/Age :

21.03.1960

Date of Appointment :

05.01.2007

PAN No.:

ABXPR5463J

DIN No.:

00201205

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	U73100KA1990PTC010732	TELOS INVESTMENTS & TECHNOLOGIES PRIVATE LIMITED	Director	13/02/1990	13/02/1990	-	Active	NO
2	U20232KA1978PLC003383	RAMAN BOARDS LTD	Director	13/07/1991	13/07/1991	01/03/2007	Amalgamated	NO
3	U08031KA1993PTC014692	ARYAMUN INVESTMENTS PRIVATE LIMITED	Director	10/01/2003	10/01/2003	-	Strike off	NO
4	U21099KA2007PTC041393	H&V Advanced Materials (India) Private Limited	Director	05/01/2007	05/01/2007	-	Active	NO
5	U65993KA1990PTC010733	ATUR INVESTMENTS PRIVATE LIMITED	Director	25/02/2007	25/02/2007	-	Strike off	NO
6	U74140KA2007PTC042217	EDUTECH NTTF INDIA PRIVATE LIMITED	Director	15/07/2008	15/07/2008	-	Active	NO
7	L65191TN1954PLC002429	SUNDARAM FINANCE LIMITED	Director	16/09/2014	27/02/2009	-	Active	NO
8	U93000KA1964ULL001532	KARNATAKA STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED	Director	20/04/2010	20/04/2010	02/04/2011	Active	NO
9	L35921TN1960PLC004175	WHEELS INDIA LIMITED	Director	08/09/2014	15/04/2011	-	Active	NO
10	U34100TN2009PLC071439	TVS AUTOMOBILE SOLUTIONS LIMITED	Director	29/09/2011	13/06/2011	-	Active	NO
11	L85110KA1995PLC019126	BRIGADE ENTERPRISES LIMITED	Director	05/08/2014	29/10/2013	-	Active	NO
12	L29224TN1954PLC000318	CARBORUNDUM UNIVERSAL LIMITED	Director	01/08/2014	30/10/2013	-	Active	NO

Name :

Jochem Alfred Hofstetter

Designation :

Director

Address :

Kelkheimer Strasse 105, Bad Soden Am Taunus, 065812, Germany

Date of Appointment :

01.11.2014

DIN No.:

03307541

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	U21023PN2011FTC139046	Hollingsworth & Vose Trading Company (India) Private Limited	Director	31/03/2011	31/03/2011	-	Amalgamated	NO
2	U21020PN2011FTC140205	Hollingsworth & Vose (India) Private Limited	Director	19/07/2011	19/07/2011	-	Active	NO
3	U21099KA2007PTC041393	H&V Advanced Materials (India) Private Limited	Director	25/11/2014	01/11/2014	-	Active	NO

Name :

David Sturenburg Von Loesecke

Designation :

Director

Address :

80 Martins Lane, Hingham, Massachusetts, 02043, United States Of America

Date of Appointment :

01.11.2014

DIN No.:

03319150

Name :

John Stanley Madej

Designation :

Director

Address :

143, Green Street, Medfield, Massachusetts, 020521918, United States Of America

Date of Appointment :

01.11.2014

DIN No.:

06995528

Name :

Raghu Ram Akella

Designation :

Flat 304, Geranium Sankalp, Central Park, BLK 13, Jawa MN RD, Yadavagiri, Mysore, 570020, Karnataka, India

Address :

Managing director

Date of Appointment :

18.11.2014

DIN No.:

07015181

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.09.2014

Names of Shareholders	No. of Shares
Aroon Raman	3828000
Afried Raman	10000
Sudha Raman and Mr. Manu Raman	275000
Sudha Raman and Mr. Vikram Raman	250000
Mr. Venkatachari Krishnan – HUF	51000
Jayshree Ananth and Dr. M.S. Ananth	5000
Harini Srinivasan and Ms. Shalini Deepa Srinivasan	4000
Indu Malini Ananthachari	4000
T. Ananthchari	15000
Jayashri Shridharan and R. Sridharan	12500
Mr. R. Raghavan and Lakshmi Raghavan	25000
Ranga Gopalswami and R.G. Nadadur	10000
Sripriya Chari	6000
Mythili Rangachari	30000
R. Madhavan	6250
Mr. Naval Jal Patel and Armaity Naval Patel	5000
Susheela padmanabhan and T.N.P. Durai	17500
Susheela padmanabhan and Jayanthai Balaji	11250
Lakshmi Durai and M.T.N.P. Durai	11250
Srilata Raman	3000
S.R. Mashvan (HUF)	25000
G. K. Natesh	75000
Col. Raghu Akella VSM	220000
Shyam Krishnan	220000
Divya Krishnan	10000
Sarala Krishnan	10000
Dr. M.S. Ananth	10000
Radhika Sridharan and Jayshri Sridharan	1000
	10000
Total	5160750

Equity Share Break up (Percentage of Total Equity)

AS ON 15.09.2014

Category	Percentage
Directors or relatives of Directors	74.37
Other top fifty shareholders	25.63
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is The company is engaged primarily in the manufacture of specially engineered Glass Fibre Mat with application as battery separator and also High Efficiency Particulate Air (HEPA) media made to the highest international specifications, Contract research and development in various fiber composite materials.

Products :

Item Code No.	Product Description
7019	Glass Fibre Mats

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

· State Bank of India, SME Branch, #7/3, M.R.N. Signature, Vishwamanava Double Road, Saraswathipuram, Mysore - 570009, Karnataka, India

· State Bank of India, Commercial Branch, Vishwamanava Double Road, Saraswathipuram, Mysore - 570009, Karnataka, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term loans from banks	37.653	57.535
Short-term borrowings
Loans repayable on demand	46.889	49.432
Total	84.542	106.967

Auditors :
Name :	M A Narasimhan And Company Chartered Accountants
Address :	No. 25 (Old - 13), 1st Floor, 7th Cross, Swimming Pool Extension, Malleswaram, Bangalore – 560003, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAGFM7833H
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AFTER : 15.09.2014

Authorised Capital : Rs. 70.000 Million

Issued, Subscribed & Paid-up Capital : Rs. 53.929 Million

AS ON 15.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7,000,000	Equity Shares	Rs.10/- each	Rs. 70.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,160,750	Equity Shares	Rs.10/- each	Rs. 5.167 Million

ABRIDGED BALANCE SHEET

FINANCIAL DATA

[all figures are in Rupees Million]

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	51.607	51.607	51.607
(b) Reserves & Surplus	52.622	26.084	18.772
(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)	104.229	77.691	70.379
(3) Non-Current Liabilities
(a) long-term borrowings	37.653	57.535	67.645
(b) Deferred tax liabilities (Net)	14.551	12.483	11.445
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.607	2.285	2.008
Total Non-current Liabilities (3)	54.811	72.303	81.098
(4) Current Liabilities
(a) Short term borrowings	46.889	49.432	30.313
(b) Trade payables	36.161	23.864	13.561
(c) Other current liabilities	39.297	20.850	13.012
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	122.347	94.146	56.886
TOTAL	281.387	244.140	208.363
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	130.771	120.861	124.871
(ii) Intangible Assets	16.908	16.564	1.186
(iii) Capital work-in-progress	6.887	15.252	6.875
(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	19.371	12.271	9.958
(e) Other Non-current assets	1.665	1.416	1.223
Total Non-Current Assets	175.602	166.364	144.113
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	42.136	35.400	33.261
(c) Trade receivables	53.069	34.232	24.263
(d) Cash and cash equivalents	2.934	2.321	1.348
(e) Short-term loans and advances	7.566	5.755	5.371
(f) Other current assets	0.080	0.068	0.007
Total Current Assets	105.785	77.776	64.250
TOTAL	281.387	244.140	208.363

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	TOTAL INCOME	319.790	200.157	208.392
Less	TOTAL EXPENSES	283.020	185.476	189.346
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION	36.770	14.681	19.046
Less	DEPRECIATION/ AMORTISATION	7.877	6.186	5.506
	PROFIT BEFORE TAX	28.893	8.495	13.540
Less	TAX	2.355	1.183	1.793
	PROFIT AFTER TAX	26.538	7.312	11.747
	EARNINGS IN FOREIGN CURRENCY	95.145	25.246	6.820
	Earnings Per Share (Rs.)	5.14	1.42	2.28

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	23.700	16.500	8.400
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	8.30	3.65	5.64
Return on Total Assets (PBT/Total Assets}	(%)	10.53	3.71	6.72
Return on Investment (ROI) (PBT/Networth)		0.28	0.11	0.19
Debt Equity Ratio (Total Liability/Networth)		1.04	1.59	1.51
Current Ratio (Current Asset/Current Liability)		0.86	0.83	1.13

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	51.607	51.607	51.607
Reserves & Surplus	18.772	26.084	52.622
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	70.379	77.691	104.229
long-term borrowings	67.645	57.535	37.653
Short term borrowings	30.313	49.432	46.889
CURRENT MATURITIES OF LONG-TERM DEBTS	8.400	16.500	23.700
Total borrowings	106.358	123.467	108.242
Debt/Equity ratio	1.511	1.589	1.039

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	208.392	200.157	319.790
		(3.952)	59.770

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	208.392	200.157	319.790
Profit	11.747	7.312	26.538
	5.64%	3.65%	8.30%

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	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
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	No
17	Details of sister concerns	No
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	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

NOTE:

Registered office of the company has been shifted from No.313, 5^TH Cross, 7^TH 'B', Main, 4^TH Block, Koramangala Lay Out, Bangalore - 560034, Karnataka, India to the present address.

REVIEW OF ACTIVITIES

2013-14 was the fifth financial year of the company since the commercial introduction of its Battery Separator products. In last years Annual Report for FY 2012-13 they had reported that significant effort had gone during that year in the product scale-up and commercialization of their Hi-Sep PG separator in its various forms with and without separator ribs. The innovative nature of this project was such that it had been funded through a special low cost loan from the Department of Science & Technology, Government of India.

They are pleased to announced that these efforts bore good fruit during 2013-14 the year. Top line in terms of sales revenue grew by 60% from 200.100 Million to Rs.319.700 Million during the year. The earnings before Interest, Tax, Depreciation and Amortization (EBITDA) increased from Rs.30.208 Million to Rs.52.676 Million or a growth of 74.37%. The Profit Before Tax (PBT) correspondingly increased from Rs.8.495 Million to Rs.28.893 Million or a growth of 240.12 % in the current year.

The gratifying financial year was largely driven by sales of the newly developed products such as Hi-Sep PG, Base web, Hi-Sep PG with glass tissue and Hi-Sep PG with rib and glass tissue in the form of ready to use pouches. Due to the availability of these materials, inroads were made into prime Indian OEM customers such as Exide, TAFE and Amco. Sales to this segment went up from Rs.39.195 Million during 2012-13 to Rs.83.395 Million in 2013-14. Even more importantly, the company was able to take its Export sales from Rs.26.312 Million to Rs.99.412 Million during the year. The strengthening of U.S. Dollar against the Rupee also contributed to the profit margins in a strong way, more than offsetting the increase in imported material costs.

OUTLOOK

The demand for batteries in India depend both on new vehicle production as also existing vehicle population. The new vehicle sales has been extremely weak over the last eighteen months as reflected in the slump in the automotive industry. Replacement demand however continues to be reasonably maintained in the automotive battery segment. But a good monsoon during 2012-13 and slightly lower lever of overall power demand led to a below normal sale of back-up power products including batteries. Hence domestic demand for batteries will remain muted and company’s strategy would be to grow market share by focusing on larger customers where they have large headroom to grow especially in the automotive and industrial battery segments of the major players.

Equally, their export thrust will continue to remain strong. They have a large number of customers in the approval and sampling pipelines and even a approval in some of the products will lead to a substantial growth in volumes. To achieve the above, the company expects to implement some process break-throughs leading to a steep fall in energy and certain material costs during the year which will allow them to become globally competitive

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10377570	31/08/2012	9500000	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	Khanija Bhavan 5th Floor ,East Wing 49, Race Course Road, Bangalore, Karnataka - 560001, INDIA	B58491036

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.64.00
UK Pound	1	Rs.99.83
Euro	1	Rs.70.07

INFORMATION DETAILS

Analysis Done by :	KIN
Report Prepared by :	DDD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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 unfavorable 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.