MIRA INFORM REPORT

Report No. :	326815
Report Date :	12.06.2015

IDENTIFICATION DETAILS

Name :	BHARAT ELECTRONICS LIMITED
Registered Office :	Outer Ring Road, Nagavara, Bangalore – 560045, Karnataka
Tel. No.:	91-80-25039300 / 25039266
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	21.04.1954
Com. Reg. No.:	08-000787
Capital Investment / Paid-up Capital :	Rs. 800.000 Million
CIN No.: [Company Identification No.]	L32309KA1954GOI000787
TAN No.: [Tax Deduction & Collection Account No.]	BLRB04051F/ BLRC00582B
PAN No.: [Permanent Account No.]	AAACB5985C
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The Company is engaged in manufacture and supply of strategic electronic products primarily to Defence Services.
No. of Employees :	10305 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (76)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 230000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a public sector undertaking, was established under the Ministry of Defense (MOD) to cater to the needs of the defense sector. It is a well-established company having excellent track record. The rating takes into account the majority ownership by the Government of India. BEL’s strategic position as a dominant supplier of defense electronics to the Indian armed forces. The rating also takes into consideration company strong financial risk profile marked by healthy net worth and decent profitability of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – 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

Rating Agency Name	ICRA
Rating	Fund based limits: “AAA”
Rating Explanation	Highest degree of safety and lowest credit risk.
Date	March 2015

Rating Agency Name	ICRA
Rating	Non-Fund based limits: “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	March 2015

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 DECLINED

Management non cooperative (91-44-22326906)

LOCATIONS

Registered Office :	Outer Ring Road, Nagavara, Bangalore – 560045, Karnataka, India
Tel. No.:	91-80-25039300 / 25039266
Fax No.:	91-80-25039305 / 25039233
E-Mail :	cmd@giasbg01.vsnl.net.in imd@bel-india.com info@bel-india.com secretary@bel.co.in rodel@bel.co.in nmdel@bel.co.in corpcomn@bel.co.in
Website :	http://www.bel-india.com
Factory 1 :	Jalahalli Post, Bangalore - 560013, Karnataka, India
Tel. No.:	91-80-28382626
Fax No.:	91-80-28382067
Factory 2 :	Site IV, Sahibabad Industrial Area, Bharat Nagar Post, Ghaziabad - 201 010, Uttar Pradesh, India
Tel. No.:	91-120-2777707
Fax No.:	91-120-2776730
Factory 3 :	NDA Road, Pashan, Pune - 411 021, Maharashtra, India
Tel. No.:	91-20-25865400, 22903000
Fax No.:	91-20-25880577, 25888789
Factory 4 :	Post Box No. 26, Ravindranath Tagore Road, Machalipatnam - 521 001, Andhra Pradesh, India
Tel. No.:	91-8672-223581-83
Fax No.:	91-8672-222640
Factory 5 :	Plot No. 405, Industrial Area, Phase III, Panchkula - 134 113, Haryana, India
Tel. No.:	91-172-3937252, 2591528, 3937400
Fax No.:	91-172-2594548 / 2591463
Factory 6 :	Balbhadrapur, Kotdwara - 246 149, Uttaranchal, India
Tel. No.:	91-1382-231171 to 231178
Fax No.:	91-1382-231132, 231135
Factory 7 :	Plot No. L-1, MIDC, Industrial Area, Raigad District, Taloja - 410 308, Maharashtra, India
Tel. No.:	91-22-27412701
Fax No.:	91-22-27412888 / 27412887
Factory 8 :	Post Box No. 981, Nandambakkam, Chennai – 600 089, Tamilnadu, India
Tel. No.:	91-44-22326906
Fax No.:	91-44-22326905
Factory 9 :	Nacharam Industrial Estate, Hyderabad – 500076, Andhra Pradesh, India
Tel. No.:	91-40-27194700
Fax No.:	91-40-27171406

DIRECTORS

As on: 31.03.2014

Name :	Mr. Anil Kumar
Designation :	Chairman and Managing Director
Name:	Mr. M L Shanmukh
Designation:	Director (Human Resources)
Name :	Mr. H N Ramakrishna
Designation :	Director (Marketing)
Name :	Mr. Sunil Kumar Sharma
Designation :	Director (Bangalore Complex)
Name :	Mr. Amol Newaskar
Designation :	Director (Other Units)
Name :	Dr. Ajit T Kalghatgi
Designation :	Director (Research & Development)
Part - Time Independent Directors
Name:	Mr. P K Mishra
Designation:	Joint Secretary (ES), Ministry of Defence, Department of Defence Production
Name:	Lt Gen S P Kochhar
Designation:	Bar to AVSM, SM, VSM, ADC, Signal Officer-in-Chief and Senior Colonel Commandant, Corps of Signals, Army Headquarters
Part-time Independent Directors
Name:	Mr. N Sitaram
Designation:	former Chief Controller (R&D), DRDO
Name:	Prof Anurag Kumar
Designation:	Professor, IISc, Bangalore
Name:	Prof R Venkata Rao
Designation:	Vice-Chancellor, National Law School of India University, Bangalore
Name:	Mr. S M Acharya
Designation:	IAS (Retd), ex - Secretary to Government of India
Name:	Lt Gen (Retd) Vinod Kumar Mehta
Designation:	ex - Director General Quality Assurance, Ministry of Defence
Name:	Mr. Vikram Srivastava
Designation:	IPS (Retd), ex - DG CRPF & ITBP
Permanent Special Invitees to all the Board Meetings :
Name:	Mr. P K Kataria
Designation:	Additional Financial Advisor and Joint Secretary, Ministry of Defense
Name:	Vice Admiral Dilip Deshpande
Designation:	AVSM, AVSM, VSM, Chief of Material, Indian Navy

KEY EXECUTIVES

Name:	Mr. M N Krishnamurthy, IPS
Designation:	Chief Vigilance Officer
Name:	Mrs. Elaine Mathias
Designation:	Executive Director
Name:	Mr. C.R. Prakash
Designation:	Company Secretary
General Managers :	Mr. P C Jain Mr. Vipin Katara Mr. Ghanshyam Narain Mr. V V Balakrishnan Mr. V K Mehta Mr. V D Bevinamarad Mr. Koshy Alexander
UNITS : (Executive Directors / General Manager)
Bangalore :	· Mr. Philip Jacob · Mr. Manmohan Handa · Mr. R Chandrakumar · Mr. A R Krishna Murthy · Mr. M M Joshi · Mr. M Vijayaraghavan · Mr. Sanmoy Kumar Acharya · Mr. M V Gowtama · Mr. K R Natarajan · Mr. Suresh Katyal · Mr. S Chandrasekar · Cdr (Retd) T Jagannath · Mr. Nataraj Krishnappa
Chennai :	· Mr. Vijay Gundannavar
Ghaziabad :	· Mr. Girish Kumar · Mr. R K Handa · Mr. A K Sharma
Hyderabad :	· Mr. R N Bagdalkar
Kotdwara :	· Mr. D K Mehrotra
Machilipacnam	· Mr. G Raghavendra Rao
Navi Mumbai	· Mr. S S Gokhale
Panchkula	· Mr. N Suresh
Pune :	· Mr. A R Vaidya
CRL, Bangalore :	Mr. V Mahesh, Chief Scientist

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	60015859	75.02
Sub Total	60015859	75.02
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	60015859	75.02
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6721390	8.40
Financial Institutions / Banks	112206	0.14
Insurance Companies	5477551	6.85
Foreign Institutional Investors	2746002	3.43
Sub Total	15057149	18.82
(2) Non-Institutions
Bodies Corporate	2417218	3.02
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1911156	2.39
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	168500	0.21
Any Others (Specify)	430118	0.54
Clearing Members	323637	0.40
Non Resident Indians	99406	0.12
Trusts	7075	0.01
Sub Total	4926992	6.16
Total Public shareholding (B)	19984141	24.98
Total (A)+(B)	80000000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	80000000	0.00

BUSINESS DETAILS

Line of Business :	The Company is engaged in manufacture and supply of strategic electronic products primarily to Defence Services.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

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 :

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

No. of Employees :

10305 (Approximately)

Bankers :

· State Bank of India

· State Bank of Hyderabad

· State Bank of Patiala

· State Bank of Travancore

· State Bank of Mysore

· State Bank of Bikaner & Jaipur

· ICICI Bank

· AXIS Bank

· IDBI Bank

· HDFC Bank

· Canara Bank

· Syndicate Bank

· Vijaya Bank

· Bank of Baroda

· Andhra Bank

Statutory Auditors :
Name :	R G N Price and Company Chartered Accountants
Branch Auditors :
Name :	· Mittal Gupta and Company, Lucknow · Rao and Narayan Vijayawada · M B Bafna and Company, Pune
Cost Auditors:	P S V and Associates Chartered Accountants
Address:	Bangalore, India
Subsidiary :	· BEL Optronic Devices Limited (Equity Holding 92.79%)
Joint Venture Companies :	· GE BE Private Limited (Equity Holding 26 %) · BEL Multitone Private Limited (Equity Holding 49 %)

CAPITAL STRUCTURE

As on: 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.800.000 Million

As on: 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs. 1000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.10/- each	Rs. 800.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	800.000	800.000	800.000
(b) Reserves & Surplus	78050.289	69372.377	62236.946
(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)	78850.289	70172.377	63036.946
Government Grants	91.051	126.125	191.716
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	10.757	69.461	43.230
(d) long-term provisions	4332.896	3561.895	3484.185
Total Non-current Liabilities (3)	4343.653	3631.356	3527.415
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	11261.400	11970.591	11268.561
(c) Other current liabilities	54016.759	56939.354	62759.237
(d) Short-term provisions	3433.858	2432.965	3677.540
Total Current Liabilities (4)	68712.017	71342.910	77705.338
TOTAL	151997.010	145272.768	144461.415
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	7705.353	6504.489	5742.274
(ii) Intangible Assets	5.693	4.977	12.272
(iii) Capital work-in-progress	1396.554	1967.373	1612.992
(iv) Intangible assets under development	1.199	1.199	1.199
(b) Non-current Investments	191.153	119.811	119.811
(c) Deferred tax assets (net)	3377.959	2994.946	2715.731
(d) Long-term Loan and Advances	615.658	628.411	1303.036
(e) Other Non-current assets	893.279	937.311	798.378
Total Non-Current Assets	14186.848	13158.517	12305.693
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	33694.320	32987.083	31912.865
(c) Trade receivables	37861.433	41285.369	33346.708
(d) Cash and cash equivalents	58815.306	45643.661	53024.923
(e) Short-term loans and advances	6904.278	11535.302	13079.462
(f) Other current assets	534.825	662.836	791.764
Total Current Assets	137810.162	132114.251	132155.722
TOTAL	151997.010	145272.768	144461.415

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	28314.318	62755.232	61038.175
	Other Income	2352.978	4284.744	6099.830
	TOTAL (A)	30667.296	67039.976	67138.005
Less	EXPENSES
	Cost of Materials Consumed	12535.733	31395.310	32994.548
	Purchases of Stock-in-Trade	1503.970	4440.281	252.171
	Cost of Stores and Spares Consumed	0.000	0.000	7602.599
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	1019.258	473.328	(2780.012)
	Employees benefits expense	3664.644	10304.256	11107.887
	Other expenses	2632.141	7224.400	5436.225
	Prior Period Items	0.000	0.000	63.745
	TOTAL (B)	21355.746	53837.575	54677.163
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	9311.550	13202.401	12460.842
Less	FINANCIAL EXPENSES (D)	11.230	33.961	7.817
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	9300.320	13168.440	12453.025
Less/ Add	DEPRECIATION/ AMORTISATION (F)	426.386	1421.045	1307.104
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	8873.934	11747.395	11145.921
Less	TAX (H)	1645.284	2431.177	2247.593
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	7228.650	9316.218	8898.328
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	29668.252	26577.832	24090.014
Less	APPROPRIATIONS
	Interim Dividend		480.000	480.000
	Proposed Final Dividend		1384.000	1304.000
	Dividend Tax		316.787	299.483
	Transfer to General Reserve		4000.000	4000.000
	Transfer to Capital Reserve		45.011	327.027
	BALANCE CARRIED TO THE B/S	NA	29668.252	26577.832
	Earnings / (Loss) Per Share (Rs.)	90.36	82.91	111.23

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	(5002.027)	(14290.444)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	25.53	14.85	14.58
Net Profit Margin (PBT/Sales)	(%)	32.89	21.04	20.41
Return on Total Assets (PBT/Total Assets}	(%)	6.04	8.38	7.96
Return on Investment (ROI) (PBT/Networth)		0.11	0.17	0.18
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.01	1.85	1.70

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	800.000	800.000	800.000
Reserves & Surplus	62236.946	69372.377	78050.289
Net worth	63036.946	70172.377	78850.289
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	0.000	0.000
Total borrowings	0.000	0.000	0.000
Debt/Equity ratio	0.000	0.000	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	61038.175	62755.232	28314.318
		2.813	(54.881)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	61038.175	62755.232	28314.318
Profit	8898.328	9316.218	7228.650
	14.58%	14.85%	25.53%

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	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	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 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	--
33]	Market information	--
34]	Payments terms	No
35]	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80037904	27/01/2014 *	29,000,000,000.00	State Bank of India	Specialized Mid Corporate Branch, No. 97, Railway  Parallel Road, Kumara Park West, Bangalore, Karnataka - 560020, INDIA	B95268611

* Date of charge modification

FIXED ASSETS

· Freehold land

· Leasehold land

· Roads and Culverts

· Buildings

· Installations

· Plant and Machinery

· Electronic Equipment

· Equipment for R and D Lab

· Vehicles

· Office Equipment and Furniture

· Fixtures and other Equipment

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. 63.89
UK Pound	1	Rs. 98.89
Euro	1	Rs. 72.31

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		76

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.