MIRA INFORM REPORT

Report No. :	324966
Report Date :	29.05.2015

IDENTIFICATION DETAILS

Name :	UNIVERSAL CABLES LIMITED
Registered Office :	P.O. Biral Vikas, Satna – 485005, Madhya Pradesh
Tel. No.:	91-7672-414000 / 257121-27
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	06.03.1945
Com. Reg. No.:	10-001114
Capital Investment / Paid-up Capital :	Rs.231.332 Million
CIN No.: [Company Identification No.]	L31300MP1945PLC001114
TAN No.: [Tax Deduction & Collection Account No.]	JBPU00023C MUMU03691C MUMU04091D
PAN No.: [Permanent Account No.]	AAACU3547P AAACU3457P
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 the manufacturing, laying, selling of Power Cables and Capacitors.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of “M.P. Birla Group”. It is an established company having satisfactory track record. The company has incurred losses from its operational activities. However, the rating takes into consideration financial and managerial support that company receives from its group companies and sound liquidity position of the company. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of strong support from group companies, the company can be considered for business dealings at usual trade terms and condition.

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	CARE
Rating	Long Term Bank Facilities = BBB+
Rating Explanation	Moderate degree of safety and moderate Credit risk
Date	22.01.2015

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A2+
Rating Explanation	Strong degree of safety and low credit risk
Date	22.01.2015

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 PARTED BY

Name :	Mr. Ram Mumdra
Designation :	Senior Manager Account / Finance
Contact No.:	91-7642-414000
Date :	28.05.2015

LOCATIONS

Registered Office / Factory 1 :	P.O. Biral Vikas, Satna-485005, Madhya Pradesh, India
Tel. No.:	91-7672-414000 / 257121-27
Fax No.:	91-7672-257129 / 257131
E-Mail :	headoffice@unistar.co.in accounts@unistar.co.in
Website :	www.unistar.co.in
Corporate Office / Marketing Office :	Industry House, 159, Churchgate Reclamation, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-44422200
Fax No.:	91-22-22027854
E-Mail :	Mumbai@unistar.co.in Mumbai.sales@unistar.co.in
Factory 2 :	Plot Nos. L – 62 to L-64 A, Verna Industrial Estate, Verna, Salcette – 403722, Goa, India
Marketing Office :	Also Located At Allahabad Hyderabad Bangalore Kolkata Baroda Bhopal New Delhi Chennai Raipur Goa

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Harsh V. Lodha
Designation :	Chairman
Date of Birth :	13.02.1967
Date of Appointment :	24.04.1998
Name :	Dr. S R Jain
Designation :	Director
Date of Birth :	29.10.1934
Date of Appointment :	05.09.2006
Name :	Mr. S S Kothari
Designation :	Director
Date of Birth :	25.03.1931
Date of Appointment :	26.10.2005
Name :	Mr. S C Jain
Designation :	Director
Date of Birth :	01.08.1940
Date of Appointment :	27.10.2004
Name :	Mr. Dinesh Chanda
Designation :	Director
Date of Birth :	26.10.1936
Date of Appointment :	23.05.2007
Name :	Mr. Bachh Raj Nahar
Designation :	Director
Date of Birth :	14.06.1951
Date of Appointment :	19.05.2014
Name :	Mr. D R Bansal
Designation :	Chief Mentor and Executive Director

KEY EXECUTIVES

Name :	Mr. Y S Lodha
Designation :	Chief Executive Office
Name :	Mr. Avanish Dwivedi
Designation :	Company Secretary
Audit Committee :	Mr. Dinesh Chanda – Chairman Dr. S R Jain Mr. S S Kothari

SHAREHOLDING PATTERN

AS ON 31.03.2015

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	12155664	52.55
Sub Total	12155664	52.55
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	12155664	52.55
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1200	0.01
Financial Institutions / Banks	119496	0.52
Central Government / State Government(s)	740	0.00
Insurance Companies	811752	3.51
Foreign Institutional Investors	500	0.00
Sub Total	933688	4.04
(2) Non-Institutions
Bodies Corporate	2535133	10.96
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	3086058	13.34
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	2537049	10.97
Any Others (Specify)	1882662	8.14
Foreign Nationals	55756	0.24
Clearing Members	66514	0.29
Trusts & Societies	1760392	7.61
Sub Total	10040902	43.41
Total Public shareholding (B)	10974590	47.45
Total (A)+(B)	23130254	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)	23130254	0.00

BUSINESS DETAILS

Line of Business :

The company is engaged in the manufacturing, laying, selling of Power Cables and Capacitors.

Products :

Product Description	Item Code No.
Optical Fiber	9001.1000
Aluminum Rods	76.04
Capacitors	85.32
Cables	85.44

Exports :

Products :

Finished Goods

Countries :

Mauritius

Imports :

Products :

• Raw Material
• Machinery

Countries :

• Egypt
• Germany
• UK
• Singapore

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	L.M.R. Polymers – Daman
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

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

No. of Employees :

1000 (Approximately)

Bankers :

Banker Name :	State Bank of India
Branch :	Santna Branch, Madhya Pradesh, 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 :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

Facilities :

SECURED LOANS	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
LONG TERM BORROWINGS
Foreign Currency Loan - Buyer's Credit – Secured		82.720
Less : Current Maturities of Long Term Borrowings		44.460
SHORT TERM BORROWINGS
Cash Credit Account		1656.845
Working Capital Demand Loan		0.000
Foreign Currency Loan - Buyer's Credit		0.000
Total	NA	1695.105

Notes:

Long Term Borrowings

a) Foreign Currency Loan - Buyer’s Credit from Bank(s) are secured by hypothecation of entire present and future current assets of the Company. As collateral security, these facilities are additionally secured by way of first charge on certain immovable properties of the Company as continuing security by deposit of title deeds of such immovable properties. It is repayable within 2 years from the Balance sheet date and carries rate of Interest ranging from 1.50% - 3.00%. Long Term Foreign Currency Loan - Buyer’s Credit are repayable in 3 equal Installments.

b) As per the renewed/revised terms and conditions loans from Bodies Corporate amounting to Rs.800.000 Million are repayable in full in the year 2015, Rs.150.000 Million are repayable in the year 2016 and Rs.150.000 Million are repayable in 2017. These loans carry interest @ 10.50% - 11.00% (rate as on reporting date).

Short Term Borrowings

Working Capital Loans from Bank(s) are secured by hypothecation of entire present and future current assets of the Company. As collateral security, these facilities are additionally secured by way of first charge on certain immovable properties of the Company as continuing security by deposit of title deeds of such immovable properties.

Auditors :
Name :	V Sankar Aiyar and Company Chartered Accountant
Joint Ventures :	· Birla Ericsson Optical Limited (BEOL) · Birla Furukawa Fibre Optics Limited (BFL)
Enterprise which is significantly influenced by the Company :	· Vindhya Telelinks Limited (VTL)
Enterprise over which a Director is able to exercise significant influence :	· Shakun Polymers Limited (SPL)

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 231.300 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs. 5.000 Million
24500000	Preference Shares	Rs.10/- each	Rs. 245.000 Million
	Total		Rs. 250.000 Million

Issued Capital:

No. of Shares	Type	Value	Amount
23136074	Equity Shares	Rs.10/- each	Rs. 231.361 Million

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
23130254	Equity Shares	Rs.10/- each	Rs. 231.303 Million
	Add: Forfeited Shares		Rs. 0.029 Million
	Total		Rs. 231.332 Million

a) Reconciliation of the number of shares

Equity Shares	Number of Shares	Rs. In Million
Outstanding at the beginning of the year	23130254	231.332
Outstanding at the end of the year	23130254	231.332

b) Terms/Rights attached to Equity Shares:

The Company has issued only one class of Shares referred to as Equity Shares having a nominal value of Rs.10/- per share. Each holder of Equity Share is entitled to one vote per share.

c) Details of equity shares held by shareholders holding more than 5% shares:

Name of Shareholder	Number of Shares	% holding
Vindhya Telelinks Limited	4839908	20.92
The Punjab Produce and Trading Company Private Limited	2910128	12.58
Gwalior Webbing Company Private Limited	1688573	7.30

As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

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	231.300	231.332	231.332
(b) Reserves & Surplus	879.500	1246.013	1646.935
(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)	1110.800	1477.345	1878.267
(3) Non-Current Liabilities
(a) long-term borrowings	1550.000	1138.260	38.634
(b) Deferred tax liabilities (Net)	0.000	0.000	40.555
(c) Other long term liabilities	1.100	1.618	0.413
(d) long-term provisions	75.600	69.686	22.757
Total Non-current Liabilities (3)	1626.700	1209.564	102.359
(4) Current Liabilities
(a) Short term borrowings	1858.100	1888.366	2051.256
(b) Trade payables	951.800	1032.303	1220.473
(c) Other current liabilities	602.100	278.615	430.005
(d) Short-term provisions	56.600	50.831	133.893
Total Current Liabilities (4)	3468.600	3250.115	3835.627
TOTAL	6206.100	5937.024	5816.253
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1453.900	1544.610	1370.224
(ii) Intangible Assets	0.000	3.593	4.651
(iii) Capital work-in-progress	0.000	9.700	50.662
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	513.200	513.192	507.442
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	143.800	56.887	76.924
(e) Trade Receivables	61.200	133.172	210.401
(f) Other Non-current assets	4.500	40.817	70.252
Total Non-Current Assets	2176.600	2301.971	2290.556
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1136.900	1049.286	1267.905
(c) Trade receivables	2527.700	2233.033	1988.104
(d) Cash and cash equivalents	52.600	48.446	27.432
(e) Short-term loans and advances	339.000	188.706	169.772
(f) Other current assets	117.100	115.582	72.484
Total Current Assets	4173.300	3635.053	3525.697
TOTAL	6206.100	5937.024	5816.253

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	6940.200	6155.147	6189.213
		Other Income	88.700	107.711	78.292
		TOTAL (A)	7028.900	6262.858	6267.505
Less	EXPENSES
		Cost of Materials Consumed	5255.200	4667.315	4592.493
		Purchases of Stock-in-Trade	215.600	267.599	207.002
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	81.900	67.679	(19.517)
		Employees benefits expense	422.200	399.530	414.529
		Other expenses	718.000	804.563	741.578
		TOTAL (B)	6692.900	6206.686	5936.085
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		336.000	56.172	331.420
Less	FINANCIAL EXPENSES (D)		506.900	328.581	253.248
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(170.900)	(272.409)	78.172
Less	DEPRECIATION/ AMORTISATION (F)		176.200	168.734	147.688
	PROFIT BEFORE TAX (E-F) (G)		(347.100)	(441.143)	(69.516)
Less	TAX (H)		0.000	(40.555)	(23.289)
	PROFIT AFTER TAX (G-H) (I)		(347.100)	(400.588)	(46.227)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	36.435	30.926
		Claims From Vendors	NA	0.000	0.200
	TOTAL EARNINGS		NA	36.435	31.126
	IMPORTS
		Raw Materials	NA	914.902	984.612
		Stores & Spares	NA	4.104	7.576
		Capital Goods	NA	82.096	110.735
		Goods Purchased for Resale	NA	81.060	68.638
	TOTAL IMPORTS		NA	1082.162	1171.561
	Earnings / (Loss) Per Share (Rs.)		(15.01)	(17.32)	(2.00)

Expected Sales (2015-2016): Rs.8500.000 Million

The above information has been parted by Mr. Ram

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	0.000	44.460	28.375
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	(5.00)	(6.51)	(0.75)
Operating Profit Margin (PBIDT/Sales)	(%)	4.84	0.91	5.35
Return on Total Assets (PBT/Total Assets}	(%)	(6.26)	(8.23)	(1.34)
Return on Investment (ROI) (PBT/Networth)		(0.31)	(0.30)	(0.04)
Debt Equity Ratio (Total Debt /Networth)		3.07	2.08	1.13
Current Ratio (Current Asset/Current Liability)		1.16	1.12	0.92

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	231.332	231.332	231.300
Reserves & Surplus	1646.935	1246.013	879.500
Net worth	1878.267	1477.345	1110.800
long-term borrowings	38.634	1138.260	1550.000
Short term borrowings	2051.256	1888.366	1858.100
Current Maturities of Long term debt	28.375	44.460	0.000
Total borrowings	2118.265	3071.086	3408.100
Debt/Equity ratio	1.128	2.079	3.068

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	6189.213	6155.147	6940.200
		(0.550)	12.754

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	6189.213	6155.147	6940.200
Profit	(46.227)	(400.588)	(347.100)
	(0.75%)	(6.51%)	(5.00%)

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	Ye
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	Yes
19	Major customers	Yes
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	Yes
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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

Particulars	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
LONG TERM BORROWINGS
Loans from Bodies Corporates		1100.000
SHORT TERM BORROWINGS
Loan From a Bank (repayable on demand)		231.521
Loan From Bodies Corporate (repayable on demand)		0.000
TOTAL	NA	1331.521

INDEX OF CHARGE:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80005490	03/12/2012 *	3,565,000,000.00	State Bank of India	Corporate Accounts Group Branch, Neville House, J N Heredia Marg, Bellard Estate, Mumbai, Maharashtra - 400001, India	B65113060

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.63.90
UK Pound	1	Rs.98.16
Euro	1	Rs.69.74

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.