MIRA INFORM REPORT

Report No. :	343008
Report Date :	29.09.2015

IDENTIFICATION DETAILS

Name :	PENSOL INDUSTRIES LIMITED
Registered Office :	714, Kakkad Market, 306, Kalbadevi Road, Mumbai – 400002, Maharashtra
Tel. No.:	91-731-254 0145/4068145
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	30.10.1995
Com. Reg. No.:	11-093993
Capital Investment / Paid-up Capital :	Rs. 35.446 Million
CIN No.: [Company Identification No.]	U11100MH1995PLC093993
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the production of Automobile and Industrial Lubricants, Greases and other specialties
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company incorporated during the year 1995 and has satisfactory track. For the financial year ended 2014, company possesses good operational performance with decent profit margins. Further, rating also takes into account of company’s strong financial risk profile support by healthy networth base and low debt balance sheet profile of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 BY

Name :	Mr. Joshi
Designation :	Account Department
Contact No.:	91-731-2540145
Date :	28.09.2015

LOCATIONS

Registered Office :	714, Kakkad Market, 306, Kalbadevi Road, Mumbai – 400002, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	sanjaykhemka11@gmail.com ankit_jain@pensolind.com
Website :	www.pensolind.com
Regional Headquarters 1 :	39, J.J. Road, Ranchi – 834001, Jharkhand, India
Tel. No.:	91-651-2213691
Fax No.:	91-651-2207852
E-Mail :	pensolranchi@pensolind.com
Regional Headquarters 2 :	307, Classic Centre, 575, M.G. Road, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-731-254 0145/4068145
Fax No.:	91-731-254 5984
E-Mail :	pensolindore@pensolind.com
Pensol Depot :	Visakhapatnam (Andhra Pradesh) Salem (Tamil Nadu) Thrissur (Kerala) Bengaluru (Karnataka) Hyderabad, (Andhra Pradesh) Bhiwandi (Maharashtra) Aurangabad (Maharashtra) Ahmedabad (Gujarat Faridabad (Haryana) Jammu Guwahati (Assam Kolkata (West Bengal) Patna (Bihar) Kanpur (Uttar Pradesh) New Delhi Kanpur (Uttar Pradesh) Ludhiana (Punjab)
Manufacturing Units :	Pithampur, Madhya Pradesh Namkum, Jharkhand

DIRECTORS

As on 30.09.2014

Name :

Mr. Chaturbhuj Khemka

Designation :

Director

Address :

39, J.J.Road, Upper Bazar, Ranchi - 834001, Jharkhand, India

Date of Birth/Age :

10.10.1987

Date of Appointment :

01.01.1996

DIN No.:

00473606

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	U00020JH1989PTC003454	SUBARNA AGRO DAIRY PRIVATE LIMITED	Director	14/06/1989	14/06/1989	25/04/2008	Active	NO
2	U11100MH1995PLC093993	PENSOL INDUSTRIES LIMITED	Director	01/01/1996	01/01/1996	-	Active	NO
3	U00314JH1988PTC003186	PENSOL OIL COMPANY PRIVATE LIMITED	Director	15/01/2011	15/01/2011	-	Active	NO

Name :

Mr. Binod Kumar Khemka

Designation :

Whole-Time Director

Address :

P-2/A, Silverlines, 20/2, Manoramaganj, Indore - 452001, Madhya Pradesh, India

Date of Birth/Age :

22.12.1958

Date of Appointment :

31.10.1995

DIN No.:

00413463

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	U85110KA1993PTC014674	PENSOL EXPORTS PRIVATE LIMITED	Director	25/08/1993	25/08/1993	-	Active	NO
2	U11100MH1995PLC093993	PENSOL INDUSTRIES LIMITED	Whole-time director	31/10/2010	31/10/1995	-	Active	NO
3	U45201MP2009PTC021488	S A K Realty Private Limited	Director	02/01/2009	02/01/2009	04/03/2009	Active	NO
4	U80302MP2007PTC019706	S. P. Hostel and Education Private Limited	Director	25/09/2009	14/02/2009	-	Active	NO

Name :

Mr. Manoj Kumar Khemka

Designation :

Director

Address :

Khemka Transport, Upper Bazar, Ranchi - 834001, Jharkhand, India

Date of Birth/Age :

06.10.1960

Date of Appointment :

01.01.2009

DIN No.:

02430937

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	U11100MH1995PLC093993	PENSOL INDUSTRIES LIMITED	Director	01/01/2009	01/01/2009	-	Active	NO
2	U80302MP2007PTC019706	S. P. Hostel and Education Private Limited	Director	25/09/2009	14/02/2009	-	Active	NO

Name :

Mr. Sanjay Kumar Khemka

Designation :

Whole-Time Director

Address :

39, J.J. Road,, Upper Bazar, Ranchi - 834001, Jharkhand, India

Date of Birth/Age :

12.06.1962

Date of Appointment :

31.10.1995

DIN No.:

00413223

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	U05001UR1995PTC018507	PROGRESSIVE DISTRIBUTORS PRIVATE LIMITED	Director	04/08/1995	04/08/1995	-	Active	NO
2	U11100MH1995PLC093993	PENSOL INDUSTRIES LIMITED	Whole-time director	31/10/2010	31/10/1995	-	Active	NO
3	U00314JH1988PTC003186	PENSOL OIL COMPANY PVT.LTD.	Director	26/12/1995	26/12/1995	-	Active	NO
4	U85110KA1993PTC014674	PENSOL EXPORTS PRIVATE LIMITED	Director	25/02/2000	25/02/2000	-	Active	NO
5	U45400WB2007PTC118964	PRANIDHI CONSTRUCTIONS PRIVATE LIMITED	Director	25/09/2007	25/09/2007	-	Active	NO
6	AAA-3139	PRAYAG DEVCON LLP	Designated Partner	20/12/2010	20/12/2010	-	Active	NO

Name :

Mr. Rajkumar Chhawchharia

Designation :

Additional Director

Address :

Bicholi Hapsi Road, Kanadia, Near Adarsh Shishu Vihar School 25, Bijlee Nagar, Indore - 452016, Madhya Pradesh, India

Date of Appointment :

07.05.2015

DIN No.:

07175748

Name :

Mr. Praveen Kumar Bajaj

Designation :

Director

Address :

Bajaj House, Baralal Street, Upper Bazar, Ranchi - 834001, Jharkhand, India

Date of Appointment :

17.05.2015

DIN No.:

07184886

KEY EXECUTIVES

Name :	Mr. Joshi
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Note: Shareholding Details File Attached

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	46.37
Directors or relatives of Directors	46.59
Other top fifty shareholders	7.04
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the production of Automobile and Industrial Lubricants, Greases and other specialties
Products :	Automobile and Industrial Lubricants Automobile and Industrial Greases
Brand Names :	PENSOL
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

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
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

• Action Construction Equipment Limited
• Heavy Engineering Corporation Limited
• Indian Railways
• Oil and Natural Gas Corporation Limited
• Steel Authority of India Limited
• Tata Iron and Steel Company Limited
• Neyveli Lignite Corporation Limited
• Coal India Limited (CIL)
• OCL India Limited (Cement Division)
• Raymonds Limited (J.K. Files Division)
• Action Construction Equipment (P) Limited
• Mahindra Two Wheelers Limited
• Hero Auto Limited
• Garha Gears Limited
• Gujarat Ambuja Exports Limited
• Man Industries Limited
• Mittal Appliances Limited
• Central Reserve Police Force (CRPF)
• ALCAST

Reference :	Center For Advanced Technology (CAT)
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 :

Not Divulged

Bankers :

Union Bank of India, Kanta Toli Branch , Ranchi – 834001, Jharkhand, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loan from banks	0.000	1.043
SHORT TERM BORROWING
Rupee term loan from banks	7.060	7.890
Total	7.060	8.933

Banking Relations :	--
Auditors :
Name :	ASSG and Associates Chartered Accountants
Address :	Kanti Mantion 6, Murai Mohalla, Indore – 452001, Uttar Pradesh, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAJFA9850F
Memberships :	--
Collaborators :	--
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Sanjay Khemka, HUF Baijnath Babulal, Ranchi Manoj Khemka, HUF

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3544600	Equity Shares	Rs.10/- each	Rs. 35.446 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	35.446	35.446	35.446
(b) Reserves & Surplus	389.663	318.113	226.319
(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)	425.109	353.559	261.765
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	1.043	6.277
(b) Deferred tax liabilities (Net)	5.735	0.420	1.003
(c) Other long term liabilities	13.667	13.980	12.428
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	19.402	15.443	19.708
(4) Current Liabilities
(a) Short term borrowings	51.454	28.057	20.444
(b) Trade payables	67.865	69.809	46.116
(c) Other current liabilities	29.122	45.859	31.025
(d) Short-term provisions	40.037	46.141	28.458
Total Current Liabilities (4)	188.478	189.866	126.043
TOTAL	632.989	558.868	407.516
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	53.969	51.004	38.428
(ii) Intangible Assets	0.508	0.821	1.133
(iii) Capital work-in-progress	0.210	1.262	3.526
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	119.478	63.460	42.722
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	1.964	1.796	1.290
Total Non-Current Assets	176.129	118.343	87.099
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	104.247	134.825	100.703
(c) Trade receivables	82.374	79.837	67.932
(d) Cash and cash equivalents	221.001	166.346	114.571
(e) Short-term loans and advances	3.946	12.833	5.808
(f) Other current assets	45.292	46.684	31.403
Total Current Assets	456.860	440.525	320.417
TOTAL	632.989	558.868	407.516

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1109.503	1105.464	983.559
	Other Income	22.819	16.369	22.498
	TOTAL (A)	1132.322	1121.833	1006.057
Less	EXPENSES
	Cost of Materials Consumed	727.675	698.488	695.101
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(6.807)	(6.425)	(8.875)
	Employees benefits expense	20.812	14.206	8.785
	Other expenses	267.097	273.394	222.398
	Extraordinary item before tax	(0.760)	0.000	0.000
	TOTAL (B)	1008.017	979.663	917.409
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	124.305	142.170	88.648
Less	FINANCIAL EXPENSES (D)	5.902	4.101	1.547
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	118.403	138.069	87.101
Less/ Add	DEPRECIATION/ AMORTISATION (F)	3.739	3.358	3.077
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	114.664	134.711	84.024
Less	TAX (H)	43.115	42.917	23.645
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	71.549	91.794	60.379
	CIF Value of Imports	185.244	131.489	NA
	Earnings / (Loss) Per Share (Rs.)	20.18	25.90	17.03

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
Net cash flows from (used in) operations	NA	125.946	68.365
Net cash flows from (used in) operating activities	NA	71.151	44.657

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	6.45	8.30	6.14
Operating Profit Margin (PBIDT/Sales)	(%)	11.20	12.86	9.01
Return on Total Assets (PBT/Total Assets}	(%)	22.34	27.26	23.26
Return on Investment (ROI) (PBT/Networth)		0.27	0.38	0.32
Debt Equity Ratio (Total Debt /Networth)		0.12	0.08	0.10
Current Ratio (Current Asset/Current Liability)		2.42	2.32	2.54

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	35.446	35.446	35.446
Reserves & Surplus	226.319	318.113	389.663
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	261.765	353.559	425.109
long-term borrowings	6.277	1.043	0.000
Short term borrowings	20.444	28.057	51.454
Current maturities of long-term debts	0.000	0.000	0.000
Total borrowings	26.721	29.100	51.454
Debt/Equity ratio	0.102	0.082	0.121

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	983.559	1105.464	1109.503
		12.394	0.365

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	983.559	1105.464	1109.503
Profit	60.379	91.794	71.549
	6.14%	8.30%	6.45%

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)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
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	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
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

OPERATIONAL PERFORMANCE

The Company is engaged in the production of Marketing of Automobile and Industrial Lubricants, Greases and other specialties under the brand name of PENSOL. The Company’s products have been well received in the market and with this the stage is set for Pensol to increase its market share in the domestic market.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWING
Intercorporate borrowings	44.394	20.167
Total	44.394	20.167

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10297363	09/06/2011	7,500,000.00	UNION BANK OF INDIA	KANTA TOLI BRANCH, RANCHI, Jharkhand - 834001, INDIA	B16822728

*Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• 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 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.66.08
UK Pound	1	Rs.100.32
Euro	1	Rs.73.81

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	HNA
Report Prepared by :	ART

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	5
--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		49

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.