MIRA INFORM REPORT

Report No. :	326808
Report Date :	11.06.2015

IDENTIFICATION DETAILS

Name :	DEFSYS SOLUTIONS PRIVATE LIMITED
Registered Office :	Block – I –B Plot No. 35 A3, KIADB Industrial Area, Chokkahall, Kasaba Hobli, Hoskote Taluka, Bangalore – 562114, Karnataka
Tel. No.:	91-80-27971156
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	08.01.2007
Com. Reg. No.:	08-041408
Capital Investment / Paid-up Capital :	Rs. 9.500 Million
CIN No.: [Company Identification No.]	U73100KA2007PTC041408
IEC No.:	0706027612
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCD5328D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Aircraft Components.
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 16000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established in the year 2007. DEFSYS Solutions targets the military and para-military market with the object of providing solutions for tactical and training systems. It has well established its expertise in the areas on military simulators, unmanned vehicles, and vehicle sensor technologies. It is an established company having a moderate track. The company has incurred an accumulated loss during 2014. External Borrowings of the company also seems to be huge. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some cautions.

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

EXTERNAL AGENCY RATING

Not Available

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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 PARTED BY

Name :	Mr. Shakil Rahman
Designation :	Accountant
Contact No.:	91-8027971156
Date :	10.06.2015

LOCATIONS

Registered Office :	Block – I –B Plot No. 35 A3, KIADB Industrial Area, Chokkahall, Kasaba Hobli, Hoskote Taluka, Bangalore – 562114, Karnataka, India
Tel. No.:	91-80-27971156 / 27900334
Mobile No.:	91-8027971156 (Mr. Shakil Rahman)
Fax No.:	91-80-2791156 / 27971144
E-Mail :	info@defsys.co.in
Location :	Owned
Factory :	Located At: Bangalore Delhi Gurgaon

DIRECTORS

As on : 30.09.2014

Name :

Mr. Sushant Mohan Gupta

Designation :

Director

Address :

1 Underhill Lane, Civil Line, New Delhi – 110054, India

Date of Birth/Age :

04.09.1977

Date of Appointment :

18.12.2008

DIN No. :

00002979

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	U74899DL1995PTC069817	AMERICAN HOTELS AND RESTAURANTS PRIVATE LIMITED	Director	30/07/1999	30/07/1999	10/03/2008	Active	NO
2	U74899DL1995PTC069436	DMG FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	04/08/1999	04/08/1999	-	Active	NO
3	U72200DL2002PTC115786	ACTIA INDIA PRIVATE LIMITED	Director	12/06/2002	12/06/2002	-	Active	NO
4	U74999DL1998PTC096332	FORESIGHT SOLUTIONS PRIVATE LIMITED	Director	03/10/2005	03/10/2005	-	Active	NO
5	U55101DL2005PTC142050	DM SOUTH INDIA HOSPITALITY PRIVATE LIMITED	Director	24/10/2005	24/10/2005	-	Active	NO
6	U29219DL2006PTC145000	SPIRAL EHL ENGINEERING PRIVATE LIMITED	Director	18/01/2006	18/01/2006	-	Active	NO
7	U63033DL2006PTC145688	HORIZON AEROSPACE (INDIA) PRIVATE LIMITED	Director	01/02/2006	01/02/2006	-	Active	NO
8	U63033DL2007PTC158694	TEAM AVIATION (INDIA) PRIVATE LIMITED	Director	25/10/2007	25/10/2007	13/01/2014	Active	NO
9	U24246DL1997PTC087056	DMG DEVELOPERS PRIVATE LIMITED	Additional director	06/11/2007	06/11/2007	15/12/2008	Active	YES
10	U72900DL2007PTC170362	Spiral E-Systems Private Limited.	Director	13/11/2007	13/11/2007	-	Active	NO
11	U63013DL2007PTC170851	HORIZON AIR SUPPORT MAINTENANCE (INDIA) PRIVATE LIMITED	Managing director	12/11/2008	07/07/2008	-	Active	NO
12	U73100KA2007PTC041408	DEFSYS SOLUTIONS PRIVATE LIMITED	Director	18/12/2008	18/12/2008	-	Active	NO
13	U74999DL2006PTC154003	DEFSYS TECHNICAL SERVICES PRIVATE LIMITED	Director	07/09/2009	23/01/2009	-	Active	NO
14	U40104DL2009PTC194587	DM POWER PRIVATE LIMITED	Director	23/09/2009	23/09/2009	-	Active	NO
15	U74140DL2010PTC199962	DOM ADVISORY SERVICES PRIVATE LIMITED	Director	12/03/2010	12/03/2010	03/10/2012	Strike off	NO
16	U55101DL1997PTC274536	CHOWGULE RESORTS PRIVATE LIMITED	Director	28/09/2013	01/07/2013	-	Active	NO
17	AAA-3072	DARUN HOSPITALITY LLP	Body corporate as Designated Partner	13/12/2010	13/12/2010	-	Active	NO

Name :

Mr. Sushen Mohan Gupta

Designation :

Director

Address :

1 Underhill Lane, Civil Line, New Delhi – 110054, India

Date of Birth/Age :

29.03.1975

Date of Appointment :

28.09.2013

DIN No. :

00275993

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	U74899DL1995PTC069436	DMG FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	19/02/1996	19/02/1996	-	Active	NO
2	U70101KL1985PTC004274	KAIRALI ESTATE AND EXPORTS P LTD	Director	07/07/1998	07/07/1998	-	Active	NO
3	U67120DL1998PTC096331	DM LUXURY RESORTS PRIVATE LIMITED	Director	18/09/1998	18/09/1998	-	Active	NO
4	U74999DL1998PTC096332	FORESIGHT SOLUTIONS PRIVATE LIMITED	Director	18/09/1998	18/09/1998	-	Active	NO
5	U74899DL1995PTC069817	AMERICAN HOTELS AND RESTAURANTS PRIVATE LIMITED	Director	30/07/1999	30/07/1999	-	Active	NO
6	U72200DL2002PTC115786	ACTIA INDIA PRIVATE LIMITED	Managing director	16/07/2007	12/06/2002	-	Active	NO
7	U35990DL1987PTC028747	DEFTRONICS (INDIA) PRIVATE LIMITED	Director	11/04/2003	11/04/2003	-	Active	NO
8	U55101DL2005PTC142050	DM SOUTH INDIA HOSPITALITY PRIVATE LIMITED	Director	24/10/2005	24/10/2005	-	Active	NO
9	U29219DL2006PTC145000	SPIRAL EHL ENGINEERING PRIVATE LIMITED	Director	21/10/2013	18/01/2006	-	Active	NO
10	U74920DL2006PTC154181	ULTIMATE TACTICAL AND COMBAT PRIVATE LIMITED.	Director	21/09/2006	21/09/2006	31/03/2009	Active	NO
11	U70101DL2004PTC128041	DEVASHRYA REALTY PRIVATE LIMITED	Director	17/09/2008	19/03/2008	21/03/2015	Active	NO
12	U63013DL2007PTC170851	HORIZON AIR SUPPORT MAINTENANCE (INDIA) PRIVATE LIMITED	Director	30/09/2008	07/07/2008	-	Active	NO
13	U63033DL2006PTC145688	HORIZON AEROSPACE (INDIA) PRIVATE LIMITED	Director	10/07/2008	10/07/2008	-	Active	NO
14	U40104DL2009PTC194587	DM POWER PRIVATE LIMITED	Director	23/09/2009	23/09/2009	-	Active	NO
15	U55101DL1997PTC274536	CHOWGULE RESORTS PRIVATE LIMITED	Director	21/12/2010	21/12/2010	-	Active	NO
16	U73100KA2007PTC041408	DEFSYS SOLUTIONS PRIVATE LIMITED	Director	28/09/2013	25/02/2013	-	Active	NO
17	U74999DL2006PTC154003	DEFSYS TECHNICAL SERVICES PRIVATE LIMITED	Director	30/09/2013	25/02/2013	-	Active	NO

Name :

Dmitry Bernadiner

Designation :

Additional director

Address :

M-123, Park Place, DLF Phase-V, Gurgaon, 122002, Haryana, INDIA

Date of Appointment :

01.10.2014

DIN No. :

06982649

Name :

Mr. Chittaranjan Sharma

Designation :

Director

Address :

Flat No. E-181, The Icon DLF Phase 5, Gurgaon – 122009, Haryana, India

Date of Appointment :

02.03.2015

DIN No. :

07111889

Name :

Mr. Biswajit Mukerjee

Designation :

Additional Director

Address :

B 103 Crown Apts, Sector-7 Plot – 18B, Dwarka, Delhi – 110075, India

Date of Appointment :

14.04.2015

DIN No. :

07167190

KEY EXECUTIVES

Name :	Mr. Shakil Rahman
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Spiral E-Systems Private Limited, India	949000	99.89
Foresight Solutions Private Limited, India	1000	0.11
Total	950000	100.00

As on 30.09.2014

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Aircraft Components.
Products :	Aircraft Components
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Aircraft Components
Countries :	Israel Germany
Imports :
Products :	Raw Material
Countries :	USA Israel France
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS : Not Available

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesalers and Retailers

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

• Hindustan Aeronautics limited

No. of Employees :

60 (Approximately)

Bankers :

Banker Name	Canara Bank,
Branch Address	Trinity Circle Branch, Shankaranarayana Building, No. 25, M.G. Road, Bangalore – 56001, Karnataka, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• Syndicate Bank, Hoskote Branch, Karnataka, India

Auditors :
Name :	Ravi and Shrihari
Address :	No. 169, Sona Tapovan, 1 and 2 Floor, 18^th Cross, M.C. Layout, Vijayanagar, Bangalore – 560040, Karnataka, India
Tel. No.:	91-80-41281122 / 23107750
Fax No.:	91-80-23107751
E-Mail :	ksravi121@gmail.com
PAN No.:	AADFR8339Q
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Company :	Mantra Technical Services Private Limited
Sister Concern :	Spiral EHL Engineering Mantra Solution Private Limited India Electronic Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
950000	Equity Shares	Rs. 10/- each	Rs. 9.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
950000	Equity Shares	Rs. 10/- each	Rs. 9.500 Million

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	9.500	9.500	9.500
(b) Reserves & Surplus	(3.641)	(5.029)	(1.127)
(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)	5.859	4.471	8.373
(3) Non-Current Liabilities
(a) long-term borrowings	19.750	14.139	10.992
(b) Deferred tax liabilities (Net)	0.000	0.000	0.014
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.403	0.499	0.807
Total Non-current Liabilities (3)	20.153	14.638	11.813
(4) Current Liabilities
(a) Short term borrowings	19.146	19.044	17.689
(b) Trade payables	6.517	2.475	1.076
(c) Other current liabilities	18.656	21.003	21.141
(d) Short-term provisions	0.918	1.028	0.917
Total Current Liabilities (4)	45.237	43.550	40.823
TOTAL	71.249	62.659	61.009
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.260	3.714	4.454
(ii) Intangible Assets	0.005	0.009	0.015
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.090	0.090	0.090
(c) Deferred tax assets (net)	0.083	0.136	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	7.176	7.744	8.419
Total Non-Current Assets	9.614	11.693	12.978
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	26.348	25.950	27.587
(c) Trade receivables	19.635	10.580	8.747
(d) Cash and cash equivalents	6.079	4.591	5.752
(e) Short-term loans and advances	4.135	4.654	2.092
(f) Other current assets	5.438	5.191	3.853
Total Current Assets	61.635	50.966	48.031
TOTAL	71.249	62.659	61.009

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income		7.625	26.220
	Percentage Completion-Revenue		1.215	0.000
	Other Income		4.404	0.352
	TOTAL		13.244	26.572
Less	EXPENSES
	Raw Materials Consumed		3.054	5.965
	Employees benefits expense	NA	7.856	20.210
	Other expenses		2.333	9.967
	TOTAL		13.243	36.142
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		0.001	(9.570)
Less	FINANCIAL EXPENSES		3.301	2.976
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1.844	(3.300)	(12.546)
Less/ Add	DEPRECIATION/ AMORTISATION	0.403	0.751	0.935
	PROFIT/ (LOSS) BEFORE TAX	1.441	(4.051)	(13.481)
Less	TAX	0.053	(0.150)	0.574
	PROFIT/ (LOSS) AFTER TAX	1.388	(3.901)	(14.055)
	EARNINGS IN FOREIGN CURRENCY
	Services	58.518	1.538	0.554
	TOTAL EARNINGS	58.518	1.538	0.554
	Earnings / (Loss) Per Share (Rs.)	1.46	(4.11)	(14.79)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

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

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	NA	(51.16)	(53.60)
Operating Profit Margin (PBIDT/Sales)	(%)	NA	0.01	(36.50)
Return on Total Assets (PBT/Total Assets}	(%)	2.03	(6.49)	(22.13)
Return on Investment (ROI) (PBT/Networth)		0.25	(0.91)	(1.61)
Debt Equity Ratio (Total Liability/Networth)		6.64	7.42	3.43
Current Ratio (Current Asset/Current Liability)		1.36	1.17	1.18

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	9.500	9.500	9.500
Reserves & Surplus	(1.127)	(5.029)	(3.641)
Share Application money pending allotment	0.000	0.000	0.000
Net worth	8.373	4.471	5.859
long-term borrowings	10.992	14.139	19.750
Short term borrowings	17.689	19.044	19.146
Current Maturities of Long Term Debt	0.000	0.000	0.000
Total borrowings	28.681	33.183	38.896
Debt/Equity ratio	3.425	7.422	6.639

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)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	No
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 two 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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

NOTE: Registered office of the company has been shifted from No. 208, First Floor, Oxford Towers, 13, airport Road, Bangalore – 560008, Karnataka, India to the present address w.e.f. 01.10.2007

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10191908	03/05/2014 *	35,000,000.00	CANARA BANK	TRINITY CIRCLE BRANCH, SHANKARNARAYANA BUILDING,  NO.25, M G ROAD, BANGALORE, KARNATAKA - 560001, INDIA	C05963012

* Date of charge modification

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. 63.88
UK Pound	1	Rs. 98.47
Euro	1	Rs. 72.15

INFORMATION DETAILS

Information Gathered by :	REK
Analysis Done by :	RES
Report Prepared by :	TRU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		26

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.