MIRA INFORM REPORT

Report No. :	345282
Report Date :	16.10.2015

IDENTIFICATION DETAILS

Name :	TITANIUM EQUIPMENT AND ANODE MANUFACTURING COMPANY LIMITED
Registered Office :	Team House, GST Road, Vandalur, Chennai - 600048, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	25.10.1975
Com. Reg. No.:	18-007017
Capital Investment / Paid-up Capital :	Rs.8.304 Million
CIN No.: [Company Identification No.]	U41000TN1975PLC007017
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CHET00312E
PAN No.: [Permanent Account No.]	AAACT1243P
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Subject engaged in manufacturing Industrial Machinery Products such as Heat Exchanges, Pressure Vessels, Storage Tanks, Lined and Cladded Vessels, Rectors, Evaporators, Pumps, Blowers, Electrolyte Tanks, Scrubbers, Fabricated Pipes and Fittings and Heating Coils, etc.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1600000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 1975 engaged in manufacturing industrial machinery products. Its products include heat exchanges, pressure vessels, storage tanks, lined and cladded vessels, rectors, evaporators, pumps, blowers, electrolyte tanks, scrubbers, fabricated pipes and fittings and heating coils. For the financial year ended 2014, company has reported 14.09% sales turnover growth as compared to previous sales turnover and it has maintained decent profitability margins at 13.34% during the year under review. Rating reflects company’s long track record of operations, extensive experience of its promoters in the engineering equipment industry, and healthy financial risk profile, marked by its comfortable capital structure and debt protection metrics. Rating strengths is partially offset by company’s large working capital requirements and the susceptibility of the company’s operating margin to volatility in raw material prices. Trade relations are reported as fair. Payment terms are reported to be usually correct. In view of aforesaid, 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	CRISIL
Rating	Long Term Rating = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 26, 2015

Rating Agency Name	CRISIL
Rating	Short Term Rating = A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	March 26, 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 31-03-2015.

INFORMATION DENIED

MANAGEMENT NON-CO-OPERATIVE

(91-44-22750323)

LOCATIONS

Registered Office :	Team House, GST Road, Vandalur, Chennai - 600048, Tamil Nadu, India
Tel. No.:	91-44-22750323
Mobile No.:	Not Available
Fax No.:	Not Available
E-Mail :	team@drraoholdings.com

DIRECTORS

As on 31.03.2015

Name :

Mr. Suresh Krishnamurthi Rao

Designation :

Whole-Time Director

Address :

33, Maharaja Surya Rao Road, Alwarpet, Chennai – 600018, Tamil Nadu, India

Date of Birth/Age :

26.09.1971

Date of Appointment :

26.12.2011

PAN No.:

00127809

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	L24297TN1983PLC072409	CHEMFAB ALKALIS LIMITED	Director	30/09/1996	30/09/1996	-	Active	NO
2	U74300TN1995PLC033290	TEAM UPD LIMITED	Director	01/04/2007	29/12/2004	-	Amalgamated	NO
3	U41000TN1975PLC007017	TITANIUM EQUIPMENT AND ANODE MANUFACTURING COMPANY LIMITED	Whole-time director	26/12/2011	01/04/2007	-	Active	NO
4	U24100TN2007PLC064201	TEAMCO HITECH ENGINEERING LIMITED	Whole-time director	01/04/2008	09/07/2007	-	Amalgamated	NO
5	U24290TN2009PLC071563	TEAMEC CHLORATES LIMITED	Director	06/05/2009	06/05/2009	20/08/2010	Active	NO

Name :

Mr. Jayakumar Sivagnanam

Designation :

Whole-Time Director

Address :

Plot No.6, IOB Colony, Selaiyur, Chennai – 600073, Tamil Nadu, India

Date of Birth/Age :

08.08.1947

Date of Appointment :

01.07.2014

PAN No.:

00389723

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	U41000TN1975PLC007017	TITANIUM EQUIPMENT AND ANODE MANUFACTURING COMPANY LIMITED	Whole-time director	01/07/2014	01/07/2004	-	Active	NO
2	U24100TN2007PLC064201	TEAMCO HITECH ENGINEERING LIMITED	Director	30/04/2008	28/09/2007	16/06/2008	Amalgamated	NO

Name :

Mr. C.S. Ramesh

Designation :

Additional Director

Address :

New.No.14, Old No. 41, 1st Avenue, 2-A, Abinaya Apts, Sastri Nagar, Adyar, Chennai - 600020, Tamil Nadu, India

Date of Birth/Age :

02.05.1945

Date of Appointment :

30.09.2013

PAN No.:

00019178

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	U41000TN1975PLC007017	TITANIUM EQUIPMENT AND ANODE MANUFACTURING COMPANY LIMITED	Director	30/09/2013	25/10/1975	-	Active	NO
2	L24297TN1983PLC072409	CHEMFAB ALKALIS LIMITED	Director	16/06/1983	16/06/1983	-	Active	NO
3	U74300TN1995PLC033290	TEAM UPD LIMITED	Director	01/10/1996	01/10/1996	-	Amalgamated	NO
4	U24100TN2007PLC064201	TEAMCO HITECH ENGINEERING LIMITED	Director	01/07/2011	09/07/2007	-	Amalgamated	NO

MAJOR SHAREHOLDERS

As on 06.08.2014

Names of Shareholders	No. of Shares
Dr Rao Holdings Pte Limited, Singapore	413592
K.M. Padma	348958
Suresh Krishnamurthi Rao	36000
C.S. Ramesh	5
Krishna Suresh	7
Chandraditya	7
N. Ramachandran	5
Meenakshi Ratnam	31842
Total	830416

As on 06.08.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	49.81
Directors or relatives of Directors	50.19
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject engaged in manufacturing Industrial Machinery Products such as Heat Exchanges, Pressure Vessels, Storage Tanks, Lined and Cladded Vessels, Rectors, Evaporators, Pumps, Blowers, Electrolyte Tanks, Scrubbers, Fabricated Pipes and Fittings and Heating Coils, etc.
Products :	· Heat Exchangers · Pressure Vessels · Storage Tanks · Columns · Reactors · Evaporator · Pumps · Blower
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

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 :

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 :

Information declined by the management.

Bankers :

Banker Name	IDBI Bank Limited
Branch Address	115, Anna Salai, Saidapet, Chenna - 600015, Tamil Nadu, 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

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
SHORT TERM BORROWINGS
Cash credit facility from Bank of Baroda	26.997	15.742
Total	26.997	15.742

Auditors :
Name :	R. Janakiraman and Company Chartered Accountants
Address :	43, Maharaja Surya Road, Alwarpet, Chennai – 600018, Tamil Nadu, India
PAN No.:	AAAFR0910L
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	· Dr. Rao Holdings Private Limited · Chemfab Alkalis Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs.10/-each	Rs.52.500 Million
200000	Preference Shares	Rs.100/-each	Rs.20.000 Million
	Total		Rs.72.500 Million

Issued Capital:

No. of Shares	Type	Value	Amount
945957	Equity Shares	Rs.10/-each	Rs. 9.459 Million

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
830416	Equity Shares	Rs.10/-each	Rs.8.304 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	8.304	8.304	8.304
(b) Reserves & Surplus	553.183	467.299	335.432
(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)	561.487	475.603	343.736
(3) Non-Current Liabilities
(a) long-term borrowings	8.800	0.000	0.000
(b) Deferred tax liabilities (Net)	13.763	12.765	10.860
(c) Other long term liabilities	30.000	30.000	30.000
(d) long-term provisions	1.522	1.575	3.725
Total Non-current Liabilities (3)	54.085	44.340	44.585
(4) Current Liabilities
(a) Short term borrowings	26.997	15.742	38.754
(b) Trade payables	71.729	71.991	21.101
(c) Other current liabilities	32.703	43.369	44.874
(d) Short-term provisions	15.915	30.194	10.503
Total Current Liabilities (4)	147.344	161.296	115.232
TOTAL	762.916	681.239	503.553
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	199.684	168.648	154.099
(ii) Intangible Assets	0.363	0.314	0.263
(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	12.946	12.946	12.946
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	119.379	52.589	2.227
(e) Other Non-current assets	0.500	0.500	0.500
Total Non-Current Assets	332.872	234.997	170.035
(2) Current assets
(a) Current investments	44.383	42.839	39.089
(b) Inventories	151.441	152.332	155.974
(c) Trade receivables	151.241	148.423	65.964
(d) Cash and cash equivalents	68.633	86.990	67.831
(e) Short-term loans and advances	10.558	12.241	3.424
(f) Other current assets	3.788	3.417	1.236
Total Current Assets	430.044	446.242	333.518
TOTAL	762.916	681.239	503.553

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	644.981	552.742	332.539
	Other Income	27.100	36.964	16.551
	TOTAL	672.081	589.706	349.090
Less	EXPENSES
	Cost of Materials Consumed	248.945	154.010	124.537
	Purchases of Stock-in-Trade	19.975	17.917	14.747
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	1.220	6.404	(34.368)
	Other Direct Manufacturing Expenses	49.184	39.347	29.732
	Exceptional Items	0.000	0.000	0.100
	Employees benefits expense	105.158	80.080	74.317
	Other expenses	102.578	88.096	68.507
	TOTAL	527.060	385.854	277.572
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	145.021	203.852	71.518
Less	FINANCIAL EXPENSES	7.075	4.082	5.513
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	137.946	199.770	66.005
Less/ Add	DEPRECIATION/ AMORTISATION	7.994	6.387	5.896
	PROFIT/ (LOSS) BEFORE TAX	129.952	193.383	60.109
Less	TAX	43.848	60.036	15.521
	PROFIT/ (LOSS) AFTER TAX	86.104	133.347	44.588
	IMPORTS
	Raw Materials	9.621	3.461	1.240
	Raw Material Titanium and Inconel Materials	81.662	74.274	14.993
	Components and Stores parts	2.123	0.975	0.595
	Bought Out	47.581	1.222	3.402
	TOTAL IMPORTS	140.987	79.932	20.230
	Earnings / (Loss) Per Share (Rs.)	103.69	160.58	53.69

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
Cash generated from (Used) operations	NA	NA	NA
Cash generated from Operating Activities	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	13.34	24.12	13.40
Operating Profit Margin (PBDIT/Sales)	(%)	22.48	24.12	13.40
Return on Total Assets (PBT/Total Assets}	(%)	17.33	28.94	12.25
Return on Investment (ROI) (PBT/Networth)		0.23	0.41	0.17
Debt Equity Ratio (Total Liability/Networth)		0.06	0.03	0.11
Current Ratio (Current Asset/Current Liability)		2.92	2.77	2.89

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	8.304	8.304	8.304
Reserves & Surplus	335.432	467.299	553.183
Net worth	343.736	475.603	561.487
long-term borrowings	0.000	0.000	8.800
Short term borrowings	38.754	15.742	26.997
Total borrowings	38.754	15.742	35.797
Debt/Equity ratio	0.113	0.033	0.064

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	332.539	552.742	644.981
		66.219	16.688

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	332.539	552.742	644.981
Profit	44.588	133.347	86.104
	13.41%	24.12%	13.35%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

AMALGAMATION OF TEMCO HITECH ENGINEERING LIMITED

a) The transferor Company was mainly engaged in the business of Design and Manufacture of Process Equipment, Metal Anodes and purification and sale of Packaged Drinking Water.

b) The Amalgamation has been given effect to under the pooling of Interest Method as prescribed by the Accounting Standard 14. Pursuant to the Scheme, the Company has recorded the Assets and Liability of Teamco Hitech Engineering Limited (the Transferor Company), in the same form as they were appearing in the Books of the Company at the Close of the Business Hours on the day immediately preceding the appointed day under the Scheme, namely, the 1^st April 2011 at their respective Book values. The Scheme has accordingly been given effect to in these Accounts. Vide the Hon’ble High Court of Madras Order Date 13.12.2011 vide Company petion No. 159 and 160 of 2011.

c) The net surplus in the value of the Net worth of the Amalgamating Company that arose on the determination of the Share Exchange ratio amounting to Rs. 3.055 Million has been credited to the General Reserve Account of the company as per the Scheme, during the year 2011-2012.

d) Pursuant to the Scheme of Amalgamation each of the Shareholders of Teamco Hitech Engineering Limited shall be allotted THREE Equity Shares of Rs.10/-each, of this Company credited as fully paid up, for every 7 (Seven) Equity Shares of Rs.10/-each, held by them in Teamco Hitech Engineering Limited. Accordingly 586633 Equity Shares of this Company have been allotted to the Shareholders of Temco Hitech Engineering Limited, in the year 2011-2012.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10544208	19/12/2014	51,000,000.00	BAJAJ FINANCE LIMITED	AKURDI PUNE, PUNE - 411035, MAHARASHTRA, INDIA	C40980724
2	10538672	07/05/2015 *	555,000,000.00	IDBI BANK LIMITED	115, ANNA SALAI, SAIDAPET, CHENNAI 600015, TAMIL NADU, INDIA	C52878782

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Loans and Advances from related parties	8.800	0.000
Total	8.800	0.000

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 64.82
UK Pound	1	Rs. 100.41
Euro	1	Rs. 74.50

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KRN
Report Prepared by :	SYL

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.