MIRA INFORM REPORT

Report No. :	340376
Report Date :	11.09.2015

IDENTIFICATION DETAILS

Name :	GRAND POLYCOATS COMPANY PRIVATE LIMITED
Registered Office :	204, Siddharth Complex, R. C. Dutt Road, Alkapuri, Vadodara-390007, Gujarat
Tel. No.:	91-265-3064200
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	10.02.1988
Com. Reg. No.:	04-010350
Capital Investment / Paid-up Capital :	Rs. 62.883 Million
CIN No.: [Company Identification No.]	U74999GJ1988PTC010350
IEC No.:	03498003071
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACG8439N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Coating and Special Polymers.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1032800
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company incorporated in the year 1988 having satisfactory track record. Available financial indicates company sound financial risk profile marked by healthy networth position with negligible debt and favorable gap between trade payable and trade receivable. Further, the rating also takes into consideration good profitability margin of the company. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. In view of long track record and acceptable financial base, the company can be considered normal for 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	CRISIL
Rating	Long term rating: “BBB-”
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	05.03.2015
Rating Agency Name	CRISIL
Rating	Short term rating: “A3”
Rating Explanation	Moderate degrre of safety and higher credit risk.
Date	05.03.2015

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 31-03-2013.

INFORMATION DECLINED BY

Name :	Ms. Gautami
Designation :	Office Executive
Contact No.:	91-265-3064200
Date :	08.09.2015

LOCATIONS

Registered/ Head Office :	204, Siddharth Complex, R. C. Dutt Road, Alkapuri, Vadodara-390007, Gujarat, India
Tel. No.:	91-265-3064200/ 3064201
Fax No.:	91-265-2337022
E-Mail :	bharat@grandpolycoats.com maildeveshpathak@rediffmail.com marketing@grandpohycots.com maulik@team.infinity.com
Website :	http://www.grandpolycoats.com
Factory :	Padra-Jaspur Road, Padra, Vadodara – 391440, Gujarat, India
Tel. No.:	91-2662-304200/ 304201/ 221345/ 222462/ 222935
Fax No.:	91-2662-223462

DIRECTORS

AS ON 28.09.2014

Name :

Mr. Maulik Chandraketu Mehta

Designation :

Director

Address :

604, Indraprastha, Opposite Ellorapark Market, Ellora Park, Baroda-390007, Gujarat, India

Date of Birth/Age :

04.07.1965

Date of Appointment :

10.10.2003

DIN No.:

00010848

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	U51410GJ1998PTC035145	ARCUS RESOURCES PRIVATE LIMITED	Director	16/12/1998	16/12/1998	-	Active	NO
2	U67120GJ1995PLC028236	INFINITY CONSULTANTS LIMITED	Director	01/04/2003	01/04/2003	-	Active	NO
3	U74999GJ1988PTC010350	GRAND POLYCOATS COMPANY PRIVATE LIMITED	Director	10/10/2003	10/10/2003	-	Active	NO
4	U72200GJ2005PTC045652	C-SAM (INDIA) PRIVATE LIMITED	Director	24/03/2005	24/03/2005	-	Amalgamated	NO
5	U72200GJ2000PTC038116	POPNET INFOTECH INDIA PRIVATE LIMITED	Director	24/03/2005	24/03/2005	-	Amalgamated	NO
6	U24100MH1984PLC033942	TARAK CHEMICALS LIMITED	Director	16/05/2005	16/05/2005	-	Active	NO
7	U72200GJ2005PTC046802	MASTERCARD MOBILE TRANSACTIONS SOLUTIONS PRIVATE LIMITED	Director	30/09/2005	30/09/2005	-	Active	NO
8	U72200MH2007PLC171849	INDIA INTERACTIVE TECHNOLOGIES LIMITED	Director	20/06/2007	20/06/2007	-	Active	NO
9	U72900GJ2008PTC055259	PITRODA INFOTECH PRIVATE LIMITED	Director	17/10/2008	17/10/2008	-	Active	NO
10	U24117GJ1999PTC035429	NEWAGE ECO SOLUTIONS PRIVATE LIMITED	Director	30/09/2010	01/08/2010	04/07/2011	Active	NO
11	U34300MH1971PTC015262	SUCHI FASTENERS PRIVATE LIMITED	Director	30/09/2011	27/11/2010	-	Active	NO
12	U72300HR2007PTC037388	NEWGEN ITES PRIVATE LIMITED	Director	03/09/2012	10/11/2011	-	Active	NO
13	U29130GJ2014PTC079773	TMSS DALFAB ENGINEERS PRIVATE LIMITED	Director	12/06/2014	12/06/2014	-	Active	NO
14	U74140GJ2015PTC083060	SKILLTELLIGENT SOLUTIONS PRIVATE LIMITED	Director	29/04/2015	29/04/2015	-	Active	NO
15	AAC-5372	GP ENVIROCOATS LLP	Designated Partner	12/10/2014	12/10/2014	-	Active	NO

Name :

Mr. Bharat Punjalal Chokshi

Designation :

Managing Director

Address :

22, Shanti Nagar Society, Dinesh Mill Road, Vadodara-390005, Gujarat, India

Date of Birth/Age :

08.05.1958

Date of Appointment :

10.02.1988

PAN No.:

ABDPC3438Q

DIN No.:

00111725

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	Company/ LLP Status	Defaulting status
1	U74999GJ1988PTC010350	GRAND POLYCOATS COMPANY PRIVATE LIMITED	Director	10/02/1988	10/02/1988	Active	NO
2	U24224GJ2002PTC040987	ADMARK POLYCOATS PRIVATE LIMITED	Director	22/07/2002	22/07/2002	Active	NO
3	U25200GJ2010PTC062731	NANOVATION PRODUCTS PRIVATE LIMITED	Additional director	27/11/2010	27/11/2010	Active	NO
4	AAA-5375	NOVOSIS GREEN TECHNOLOGIES LLP	Designated Partner	29/06/2011	29/06/2011	Active	NO
5	AAC-0787	BPC INNOVATION LLP	Designated Partner	11/02/2014	11/02/2014	Active	NO

Name :

Ms. Anita Bharat Chokshi

Designation :

Director

Address :

22/A, Shanti Nagar Society, Dinesh Mill Road, Akota, Baroda- 390020, Gujarat, India

Date of Birth/Age :

20.11.1961

Date of Appointment :

10.02.1988

PAN No.:

ABEPC2755P

DIN No.:

01654486

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	Company/ LLP Status	Defaulting status
1	U74999GJ1988PTC010350	GRAND POLYCOATS COMPANY PRIVATE LIMITED	Director	10/02/1988	10/02/1988	Active	NO
2	U24224GJ2002PTC040987	ADMARK POLYCOATS PRIVATE LIMITED	Director	15/07/2007	15/07/2007	Active	NO
3	AAC-0787	BPC INNOVATION LLP	Designated Partner	11/02/2014	11/02/2014	Active	NO
4	AAC-5372	GP ENVIROCOATS LLP	Body corporate as Designated Partner	02/08/2014	02/08/2014	Active	NO

KEY EXECUTIVES

Name :	Ms. Gautami
Designation :	Office Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Aditi B. Chokshi	314400	5.00
Amishi B. Chokshi	314400	5.00
Ankur B. Chokshi	115500	1.84
Bharat Chokshi and Family Trust, India	5544000	88.16
Total	6288300	100.00

AS ON 28.09.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Coating and Special Polymers.
Products :	· Primer · Intermediates · Top Coat · Speciality Coating · Elastomeric Coating · Floor Coating
Brand Names :	--
Agencies Held :	--
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Bank of Baroda
Branch:	Sayajigunj, Vadodara - 390005, Gujarat, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Small Industries Development Bank of India, Vikas Deep 22, Station Road, Lucknow – 226019, Uttar Pradesh, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Working capital loans from banks	10.830	32.828
Total	10.830	32.828

Banking Relations :	--
Auditors :
Name :	Shah and Bhandari Chartered Accountants
Address :	38/101, Gautam Nagar, Race Course, Vadodara – 390007, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AANFS8293E
Memberships :	--
Collaborators :	--
Associates :	· Admark Polycoats Private Limited · Infinity Consultants Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs. 10/- each	Rs. 75.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6288300	Equity Shares	Rs. 10/- each	Rs. 62.883 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	62.883	62.883	62.883
(b) Reserves & Surplus	298.597	271.215	250.511
(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)	361.480	334.098	313.394
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.503	0.804	0.830
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.503	0.804	0.830
(4) Current Liabilities
(a) Short term borrowings	18.830	43.328	47.449
(b) Trade payables	125.780	123.007	119.886
(c) Other current liabilities	5.867	4.810	5.210
(d) Short-term provisions	19.424	18.731	11.416
Total Current Liabilities (4)	169.901	189.876	183.961
TOTAL	531.884	524.778	498.185
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	68.718	73.488	58.328
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	6.811
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.008	0.008	0.008
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	29.870	28.365	38.667
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	98.596	101.861	103.814
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	87.018	71.825	62.897
(c) Trade receivables	327.571	300.574	281.866
(d) Cash and cash equivalents	13.146	44.445	40.977
(e) Short-term loans and advances	5.553	6.073	8.631
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	433.288	422.917	394.371
TOTAL	531.884	524.778	498.185

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	926.437	823.723	823.266
		Other Income	1.806	1.790	NA
		TOTAL (A)	928.243	825.513	NA
Less	EXPENSES
		TOTAL (B)	879.292	785.043	NA
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		48.951	40.470	69.951
Less	FINANCIAL EXPENSES (D)		3.473	3.743	4.316
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		45.478	36.727	65.635
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.576	9.364	8.853
	PROFIT BEFORE TAX (E-F) (G)		35.902	27.363	56.782
Less	TAX (H)		8.520	6.659	16.578
	PROFIT AFTER TAX (G-H) (I)		27.382	20.704	40.204
	Earnings Per Share (Rs.)		4.35	3.29	6.39

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.000	0.000	NA
Cash Generated from Operations	33.208	43.880	NA
Net Cash Flow from (used in) Operations	9.395	34.662	42.126

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	2.96	2.51	4.88
Operating Profit Margin (PBDIT/Sales)	(%)	5.28	4.91	8.50
Return on Total Assets (PBT/Total Assets}	(%)	6.75	5.21	11.56
Return on Investment (ROI) (PBT/Networth)		0.10	0.08	0.18
Debt Equity Ratio (Total Debt/Networth)		0.05	0.13	0.15
Current Ratio (Current Asset/Current Liability)		2.55	2.23	2.14

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	62.883	62.883	62.883
Reserves & Surplus	250.511	271.215	298.597
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	313.394	334.098	361.480
Long-term borrowings	0.000	0.000	0.000
Short term borrowings	47.449	43.328	18.830
Total borrowings	47.449	43.328	18.830
Debt/Equity ratio	0.151	0.130	0.052

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	823.266	823.723	926.437
		0.056	12.469

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	823.266	823.723	926.437
Profit	40.204	20.704	27.382
	4.88%	2.51%	2.96%

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	Yes
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	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	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	10069386	01/09/2007	32,500,000.00	BANK OF BARODA	SAYAJIGUNJ, VADODARA, Gujarat - 390005, INDIA	A23996606
2	10027374	11/10/2006	19,500,000.00	BANK OF BARODA	SAYAJIGUNJ, VADODARA, Gujarat - 390005, INDIA	A06469456
3	90109492	30/09/1996	250,000.00	SMALL INDUSTRIAL DEVELOPMENT BANK OF INDIA	VIKAS DEEP, 22 STATION ROAD, LOCKNOW, Uttar Prade  sh - 226019, INDIA	-
4	90111993	08/07/1989 *	300,000.00	BANK OF INDIA	UNIVERSITY ROAD BRANCH, VADODARA, Gujarat, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
SHORT TERM BORROWINGS
Loans and advances from related parties	8.000	10.500
Total	8.000	10.500

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
Letters of Credits Issued by the Bank	18.297	11.086
Bank Guarantee(Net of Margin)	0.835	2.241
Matter Pending with ITAT	0.538	0.538
Total	19.670	13.865

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Other 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 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. 66.58
UK Pound	1	Rs. 102.29
Euro	1	Rs. 74.71

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	DIV
Report Prepared by :	IND

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.