MIRA INFORM REPORT

Report No. :	341756
Report Date :	24.09.2015

IDENTIFICATION DETAILS

Name :	MARUTI PAPERS LIMITED
Registered Office :	8^th KM Stone, Village Sikka, District Muzaffarnagar, Shamli – 247776, Uttar Pradesh
Tel. No.:	91-1398-250500 / 252400
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.09.1988
Com. Reg. No.:	20-010007
Capital Investment / Paid-up Capital :	Rs.51.609 Million
CIN No.: [Company Identification No.]	U21015UP1988PLC010007
IEC No.:	0592049809
TAN No.: [Tax Deduction & Collection Account No.]	MRTM01084G
PAN No.: [Permanent Account No.]	AACCM0303M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the manufacturing of kraft paper from waste paper.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 435000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject was incorporated in September 1988 and is engaged in the manufacturing of kraft paper from waste paper. It has satisfactory track record. The company possesses a decent profile marked by decent networth base along with improvement in the liquidity profile. Further, management has witnessed a significant growth in its operations and profit of the company during FY 2014. The rating also takes into consideration the long track of more than two decades of the company in the Kraft paper industry which has helped in establishing distribution network and customer relationship. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. The company can be considered 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	Long term – fund based limits : BB
Rating Explanation	Have inadequate credit quality and carry high credit risk.
Date	September, 2014

Rating Agency Name	ICRA
Rating	Short term – non fund based limits : A4+
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	September, 2014

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 PARTED BY

Name :	Mr. Vikas
Designation :	Marketing Manager
Contact No.:	91-11-46535663
Date :	22.09.2015

LOCATIONS

Registered Office / Factory :	8^th KM Stone, Village Sikka, District Muzaffarnagar, Shamli – 247776, Uttar Pradesh, India
Tel. No.:	91-1398-250500 / 252400
Mobile No.:	91-9412211050 (Mr. Atul Bansal) 91-9999990008 (Mr. Vikas)
Fax No.:	91-1398-251400
E-Mail :	ca_company@rediffmail.com vikasbansal78@ymail.com
Website :	www.marutipapers.in
Location :	Owned
Locality :	Industrial
Correspondence Office :	Hospital road, Muzaffarnagar, Shamli – 247776, Uttar Pradesh, India
Delhi Office :	D-3, Defence Colony, New Delhi, India
Tel. No.:	91-11-46535663
Fax No.:	91-11-46535662

DIRECTORS

AS ON 27.09.2014

Name :

Mr. Rajeshwar Kumar Bansal

Designation :

Whole-time director

Address :

Hospital Road, Muzaffarnagar, Shamli - 247776, Uttar Pradesh, India

Date of Birth/Age :

29.01.1949

Date of Appointment :

01.04.2013

DIN No.:

00070478

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	U21015UP1988PLC010007	MARUTI PAPERS LIMITED	Whole-time director	01/04/2013	06/09/1988	-	Active	NO

Name :

Mr. Atul Bansal

Designation :

Whole-time director

Address :

Hospital Road, Muzaffarnagar, Shamli - 247776, Uttar Pradesh, India

Date of Birth/Age :

22.06.1977

Date of Appointment :

01.04.2013

DIN No.:

00135853

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	U21015UP1988PLC010007	MARUTI PAPERS LIMITED	Whole-time director	01/04/2013	25/08/2006	-	Active	NO

Name :

Mrs. Anjana Bansal

Designation :

Director

Address :

Hanuman Road, Shamli - 247776, Uttar Pradesh, India

Date of Birth/Age :

10.11.1958

Date of Appointment :

01.01.2010

DIN No.:

02226852

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	U21015UP1988PLC010007	MARUTI PAPERS LIMITED	Director	01/01/2010	04/03/2008	-	Active	NO

Name :

Mrs. Shipra Bansal

Designation :

Whole-time director

Address :

Hospital Road, Muzaffarnagar, Shamli - 251002, Uttar Pradesh, India

Date of Birth/Age :

30.03.1977

Date of Appointment :

01.02.2010

DIN No.:

02874667

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	U21015UP1988PLC010007	MARUTI PAPERS LIMITED	Whole-time director	01/02/2010	01/01/2010	-	Active	NO

Name :

Mr. Ravikant Garg

Designation :

Director

Address :

Mohalla Julam Garh, Shamli - 247776, Uttar Pradesh, India

Date of Appointment :

31.03.2015

DIN No.:

07140669

KEY EXECUTIVES

Name :	Mr. Vikas
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2014

Names of Shareholders	No. of Shares
Atul Bansal	1190500
Rajeshwar Kumar Bansal	1620850
Anjana Bansal	308750
Akhil Bansal	70500
Shipra Bansal	36500
R K Bansal HUF	1068000
Rachna Bansal	110750
Kailash Chand	5000
Ashok Abrol	10000
Amogh Buildestate Private Limited, India	740000
Total	5160850

AS ON 27.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	14.34
Directors or relatives of Directors	85.47
Other top fifty shareholders	0.19
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the manufacturing of kraft paper from waste paper.

Product / Services:

Item Code No.	Product / Services Description
48049000	Kraft Paper

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Products :

Raw Material

Countries :

• Australia
• USA
• London
• Italy
• Spain
• Dubai
• European Countries
• Britain

Terms :

Selling :

Cash and Cheque

Purchasing :

Cash and Cheque

PRODUCTION STATUS: AS ON 31.03.2014

Particulars	Unit	Actual Production
Kraft Paper	M.T.	30332.184

GENERAL INFORMATION

Suppliers :

Reference :	Harmens, USA
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 :

Retailers and End Users

Reference :	Empire Packages Private Limited, Baddi
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 :

800 (Approximately)

Bankers :

Bank Name	Oriental Bank of Commerce
Branch	Hanuman Road, Shamli - 247776, Uttar 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 (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	· Cash Credit : Rs.80.000 Million · Term Loans : Rs.200.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term loans from banks	65.761	95.642
Short-term borrowings
Loans repayable on demand from banks	54.492	63.401
Total	120.253	159.043

Auditors :
Name :	A Jain Agarwal and Company Chartered Accountants
Address :	203/17, Sadar Bazar, Upper Storey, Muzaffarnagar, Uttar Pradesh, India
PAN No.:	AAMFA6693H
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5,500,000	Equity Shares	Rs.10/- each	Rs.55.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,160,850	Equity Shares	Rs.10/- each	Rs.51.609 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	51.609	51.609	51.609
(b) Reserves & Surplus	100.629	91.369	84.505
(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)	152.238	142.978	136.114
(3) Non-Current Liabilities
(a) long-term borrowings	131.276	151.011	121.926
(b) Deferred tax liabilities (Net)	14.204	12.704	10.513
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.767	0.567	0.347
Total Non-current Liabilities (3)	146.247	164.282	132.786
(4) Current Liabilities
(a) Short term borrowings	54.492	63.401	56.508
(b) Trade payables	77.895	66.662	73.231
(c) Other current liabilities	37.447	39.491	47.254
(d) Short-term provisions	1.329	1.649	1.739
Total Current Liabilities (4)	171.163	171.203	178.732
TOTAL	469.648	478.463	447.632
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	269.689	256.237	268.562
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	40.782	0.547
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.100	0.100	0.100
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.816	2.416	3.351
(e) Other Non-current assets	3.413	3.014	1.681
Total Non-Current Assets	277.018	302.549	274.241
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	37.286	66.870	55.712
(c) Trade receivables	142.758	94.007	93.459
(d) Cash and cash equivalents	1.314	1.925	6.123
(e) Short-term loans and advances	1.831	1.091	3.266
(f) Other current assets	9.441	12.021	14.831
Total Current Assets	192.630	175.914	173.391
TOTAL	469.648	478.463	447.632

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	671.733	502.446	535.880
	Other Income	0.196	1.191	0.236
	TOTAL	671.929	503.637	536.116
Less	EXPENSES
	Cost of Materials Consumed	247.749	205.892	220.619
	Purchases of Stock-in-Trade	0.000	0.000	3.311
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.485	(2.877)	(1.909)
	Employees benefits expense	9.023	7.277	6.597
	Other expenses	347.029	230.842	242.867
	TOTAL	604.286	441.134	471.485
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	67.643	62.503	64.631
Less	FINANCIAL EXPENSES	23.050	25.126	26.123
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	44.593	37.377	38.508
Less/ Add	DEPRECIATION/ AMORTISATION	31.236	27.529	28.736
	PROFIT/ (LOSS) BEFORE TAX	13.357	9.848	9.772
Less	TAX	4.097	2.984	3.064
	PROFIT/ (LOSS) AFTER TAX	9.260	6.864	6.708
	Earnings / (Loss) Per Share (Rs.)	1.79	1.33	1.34

Particulars	31.03.2015
Sales Turnover (Approximately)	67.000

Expected Sales ( 2015-2016 ) : Rs. 67.000 Million

The above information has been parted by Mr. Vikas (Marketing Manager).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current maturities of long-term debt	29.079	27.871	27.552
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	33.282	19.045	47.106
Net cash flows from (used in) operating activities	35.879	19.837	48.982

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.38	1.37	1.25
Operating Profit Margin (PBIDT/Sales)	(%)	10.07	12.44	12.06
Return on Total Assets (PBT/Total Assets}	(%)	2.84	2.25	2.19
Return on Investment (ROI) (PBT/Networth)		0.09	0.07	0.07
Debt Equity Ratio (Total Debt /Networth)		1.41	1.69	1.51
Current Ratio (Current Asset/Current Liability)		1.13	1.03	0.97

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	51.609	51.609	51.609
Reserves & Surplus	84.505	91.369	100.629
Share Application money pending allotment	0.000	0.000	0.000
Net worth	136.114	142.978	152.238
long-term borrowings	121.926	151.011	131.276
Short term borrowings	56.508	63.401	54.492
Current maturities of long-term debt	27.552	27.871	29.079
Total borrowings	205.986	242.283	214.847
Debt/Equity ratio	1.513	1.695	1.411

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	535.880	502.446	671.733
		(6.239)	33.693

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	535.880	502.446	671.733
Profit	6.708	6.864	9.260
	1.25%	1.37%	1.38%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	---
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
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 four 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

NOTE

The registered office of the company has been shifted from Subhash Chowk, Shamli - 247776, Uttar Pradesh, India to the present address w.e.f. 01.09.2007.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans and advances from others	42.637	43.991
Deposits from others	22.878	11.378
Total	65.515	55.369

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10579789	20/06/2015	80,000,000.00	ORIENTAL BANK OF COMMERCE	HANUMAN ROAD, SHAMLI - 247776, UTTAR PRADESH, INDIA	C58819368
2	10486832	07/03/2014	500,000.00	ORIENTAL BANK OF COMMERCE	HANUMAN ROAD, SHAMLI - 247776, UTTAR PRADESH, INDIA	C01135946
3	10377781	07/09/2012	20,000,000.00	ORIENTAL BANK OF COMMERCE	HANUMAN ROAD, SHAMLI - 247776, UTTAR PRADESH, INDIA	B58553066
4	10235651	02/08/2010	100,000,000.00	ORIENTAL BANK OF COMMERCE	HANUMAN ROAD, SHAMLI - 247776, UTTAR PRADESH, INDIA	A93167773
5	10178501	26/09/2009	11,000,000.00	ORIENTAL BANK OF COMMERCE	HANUMAN ROAD, SHAMLI - 247776, UTTAR PRADESH, INDIA	A70942412
6	10112831	14/06/2008	25,000,000.00	ORIENTAL BANK OF COMMERCE	SHAMLI, DISTRICTS. MUZAFFARNAGAR, SHAMLI - 247776, UTTAR PRADESH, INDIA	A41830811
7	10112833	14/06/2008	25,000,000.00	ORIENTAL BANK OF COMMERCE	SHAMLI, DISTRICTS. MUZAFFARNAGAR, SHAMLI - 247776, UTTAR PRADESH, INDIA	A41832486
8	10063034	20/06/2015 *	343,300,000.00	ORIENTAL BANK OF COMMERCE	HANUMAN ROAD, SHAMLI - 247776, UTTAR PRADESH, INDIA	C58820002
9	10057396	02/06/2007	11,200,000.00	ORIENTAL BANK OF COMMERCE	SHAMLI, DISTRICTS MUZAFFARNAGAR, SHAMLI - 247776, UTTAR PRADESH, INDIA	A17410846
10	10057395	02/06/2007	28,800,000.00	ORIENTAL BANK OF COMMERCE	SHAMLI, DISTRICTS MUZAFFARNAGAR, SHAMLI - 247776, UTTAR PRADESH, INDIA	A17412404

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Plant and equipment
• Vehicles
• Office 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.65.96
UK Pound	1	Rs.101.19
Euro	1	Rs.73.37

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		45

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.