MIRA INFORM REPORT

Report No. :	506229
Report Date :	28.04.2018

IDENTIFICATION DETAILS

Name :	VARROC LIGHTING SYSTEMS (INDIA) PRIVATE LIMITED
Registered Office :	Survey No.279, Block-B, Hissa No.2, Village Mann, Hinjewadi, Taluka Mulshi, Pune - 411057, Maharashtra
Tel. No.:	91-20-66752100
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	13.03.2012
Com. Reg. No.:	11-142539
Capital Investment / Paid-up Capital :	INR 4.400 Million
CIN No.: [Company Identification No.]	U31401PN2012PTC142539
IEC No.: [Import-Export Code No.]	Not Divulged
GSTN : [Goods & Service Tax Registration No.]	27AADCV9832F1Z2
TIN No.:	27620914511
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCV9832F
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of design, manufacture, exporter and sale of automotive lighting applications mainly head lamps, tail lamps, fog lamps and other automotive lighting products for four wheeler passenger/commercial vehicle. [Registered activity and also confirmed by management]
No. of Employees :	300 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a wholly owned subsidiary of “Varroc Engineering Private Limited” and was incorporated in the year 2012. It is having fine track. The company is engaged in automotive lighting business. Its products include exterior lighting products, front and rear lighting systems, auxiliary lamps and key, sub components such as projectors and electronic modules etc. For the financial year 2017, the company has registered decrease in its revenue from operation as compared to previous year but maintained decent profitability margin of 9.87%. Rating takes into consideration sound financial profile of the company marked by healthy networth base and low debt balance sheet. Further, rating also derives strength from its healthy improvement in profitability profile during the year and long-established relationship with its customers. However, rating strength is partially offset by exposure to cyclicality in automotive industry. Trade relations are reported as fair. Business is active. Payments are seems to be regular. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term rating = AA-
Rating Explanation	High degree of safety and very low credit risk.
Date	06.10.2017
Rating Agency Name	ICRA
Rating	Short Term Rating = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	06.10.2017

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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 28.04.2018.

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Balram
Designation :	Key Executive
Contact No.:	91-20-66752100
Date :	27.04.2018

LOCATIONS

Registered Office / Technical Center / Factory :	Survey No.279, Block-B, Hissa No.2, Village Mann, Hinjewadi, Taluka Mulshi, Pune - 411057, Maharashtra, India
Tel. No.:	91-20-66752100
Fax No.:	91-20-66752115
E-Mail :	companysecretary@varrocgroup.com varroc.info@varrocgroup.com
Website :	www.varroclighting.com http://varrocgroup.com

DIRECTORS

AS ON 31.03.2017

Name :	Mr. Tarang Jain
Designation :	Director
Address :	Gut No.41(P), Opposite Walmi Kanchanwadi, Aurangabad-Paithan Road, Aurangabad-431105, Maharashtra, India
Date of Birth/Age :	21.03.1962
Qualification :	MBA Finance
Date of Appointment :	13.03.2012
PAN No.:	AAXPJ4083B
DIN No.:	00027505
Name :	Mr. Arjun Tarang Jain
Designation :	Director
Address :	Gut No 41 P, Halcyon Opposite Walmi Kanchanwadi Paithan Road Aurangabad 431005, Maharashtra, India
Date of Appointment :	20.07.2017
DIN No.:	07228175

KEY EXECUTIVES

Name :	Mr. Balram
Designation :	Key Executive

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders	No. of Shares
Varroc Engineering Private Limited, India	439996
Tarang Jain (Beneficial Interest Held By Varroc Engineering Private Limited)	1
Total	439997

AS ON 08.09.2017

Equity Share Break up	Percentage
Category
Promoters - Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of design, manufacture, exporter and sale of automotive lighting applications mainly head lamps, tail lamps, fog lamps and other automotive lighting products for four wheeler passenger/commercial vehicle. [Registered activity and also confirmed by management]

Products / Services :

Item Code No. (ITC Code)	Product Description
3748	Lighting Systems of motor cars or four wheelers

• Rear lamps
• Front fog lamps

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Advance Payment and Cheque

Purchasing :

Advance Payment and Cheque

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

300 (Approximately)

Bankers :

Bank Name	The Saraswat Co-Operative Bank Limited
Branch	--
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Facilities :

SECURED LOANS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Term loans	85.042	283.016
SHORT TERM BORROWINGS
Working capital loans from banks	127.577	95.486
Total	212.619	378.502

Auditors :
Name :	Price Waterhouse and Company LLP Chartered Accountants
Address :	7th Floor , Tower-A-Wing 1, Business Bay, Airport Road, Yerwada, Pune-411006, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAHFP0187A
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Varroc Engineering Private Limited, India CIN No.: U28920MH1988PLC047335
Fellow Subsidiary Companies:	Varroc Lighting Systems Inc., United States Varroc Lighting Systems S.r.O, Czech Republic Fores Elastomech India Private Limited, India CIN No.: U29190MH2005PTC157474 Varroc TYC Auto Lamps Company Limited, China Varroc Lighting Systems, Mexico

CAPITAL STRUCTURE

AS ON 08.09.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
450000	Equity Shares	INR 10/- each	INR 4.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
439997	Equity Shares	INR 10/- each	INR 4.400 Million

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4.400	4.400	4.400
(b) Reserves & Surplus	423.873	239.485	232.209
(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)	428.273	243.885	236.609
(3) Non-Current Liabilities
(a) long-term borrowings	85.042	283.016	163.556
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	29.847	29.347	7.541
Total Non-current Liabilities (3)	114.889	312.363	171.097
(4) Current Liabilities
(a) Short term borrowings	127.577	95.486	205.750
(b) Trade payables	436.170	625.387	512.672
(c) Other current liabilities	131.957	170.816	185.082
(d) Short-term provisions	11.393	5.580	15.611
Total Current Liabilities (4)	707.097	897.269	919.115
TOTAL	1250.259	1453.517	1326.821
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	580.817	638.185	512.950
(ii) Intangible Assets	0.106	0.475	5.571
(iii) Capital work-in-progress	5.029	22.229	41.687
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.025	0.025	0.025
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	239.983
(e) Other Non-current assets	175.292	181.594	0.000
Total Non-Current Assets	761.269	842.508	800.216
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	145.354	169.088	195.259
(c) Trade receivables	221.295	329.063	188.628
(d) Cash and cash equivalents	19.378	15.783	33.208
(e) Short-term loans and advances	0.000	0.000	109.331
(f) Other current assets	102.963	97.075	0.179
Total Current Assets	488.990	611.009	526.605
TOTAL	1250.259	1453.517	1326.821

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	1892.052	2208.983	1237.392
	Other Income	24.566	11.906	23.000
	TOTAL	1916.618	2220.889	1260.392
Less	EXPENSES
	Cost of Materials Consumed	1002.775	1291.718	927.475
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(4.679)	(10.883)	(3.917)
	Employees benefits expense	250.186	222.063	152.964
	Exceptional items	(123.752)	0.000	0.000
	Other expenses	476.041	559.652	291.905
	TOTAL	1600.571	2062.550	1368.427
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	316.047	158.339	(108.035)
Less	FINANCIAL EXPENSES	44.250	57.112	55.683
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	271.797	101.227	(163.718)
Less	DEPRECIATION/ AMORTISATION	85.122	93.059	88.795
	PROFIT/ (LOSS) BEFORE TAX	186.675	8.168	(252.513)
Less	TAX	0.000	0.000	(11.713)
	PROFIT/ (LOSS) AFTER TAX	186.675	8.168	(240.800)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	180.100	182.200	2.800
	Sale of Service	60.200	87.800	0.000
	TOTAL EARNINGS	240.300	270.000	2.800
	IMPORTS
	Raw Materials	133.600	175.500	156.600
	Stores & Spares	2.400	8.400	6.100
	Capital Goods	1.400	197.800	129.800
	TOTAL IMPORTS	137.400	381.700	292.500
	Earnings / (Loss) Per Share (INR)	424.26	18.56	(11386.41)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	70.768	86.111	42.149
Net cash flows from (used in) operations	254.036	93.812	(14.418)
Net cash flows from (used in) operating activities	255.228	92.802	(12.274)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365)	42.69	54.37	55.64
Account Receivables Turnover (Income / Sunday Debtors)	8.55	6.71	6.56
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	158.76	176.72	201.76
Inventory Turnover (Operating Income / Inventories)	2.17	0.94	(0.55)
Asset Turnover (Operating Income / Net Fixed Assets)	0.54	0.24	(0.19)

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.69	0.87	0.85
Debt Equity Ratio (Total Liability / Networth)	0.66	1.91	1.74
Current Liabilities to Networth (Current Liabilities / Net Worth)	1.65	3.68	3.88
Fixed Assets to Networth (Net Fixed Assets / Networth)	1.37	2.71	2.37
Interest Coverage Ratio (PBIT / Financial Charges)	7.14	2.77	(1.94)

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin [(PAT / Sales) * 100]	%	9.87	0.37	(19.46)
Return on Total Assets ((PAT / Total Assets) * 100)	%	14.93	0.56	(18.15)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	43.59	3.35	(101.77)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	0.69	0.68	0.57
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.49	0.49	0.36
G-Score Ratio Financial (Networth / Total Assets)	0.34	0.17	0.18
G-Score Ratio Debt (Debts / Equity Capital)	64.41	105.59	93.51
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.69	0.68	0.57

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	4.400	4.400	4.400
Reserves & Surplus	232.209	239.485	423.873
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	236.609	243.885	428.273
Long-term borrowings	163.556	283.016	85.042
Short term borrowings	205.750	95.486	127.577
Current Maturities of Long term debt	42.149	86.111	70.768
Total borrowings	411.455	464.613	283.387
Debt/Equity ratio	1.739	1.905	0.662

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	1237.392	2208.983	1892.052
		78.519	(14.347)

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	1237.392	2208.983	1892.052
Profit / (Loss)	(240.800)	8.168	186.675
	(19.46%)	0.37%	9.87%

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	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

BACKGROUND

The ‘Company’ is engaged in the business of design, manufacture and sale of automotive lighting applications mainly head lamps, tail lamps, fog lamps and other automotive lighting products for four wheeler passenger/commercial vehicle. The Company has one manufacturing plant in India and sells primarily in India.

PERFORMANCE

During the year the Company has achieved gross income of INR 1916.600 million as compared to INR 2220.800 million for financial year 2015-16. There has been significant increase in profit for the year to INR 186.600 million as compared to loss after tax of INR 8.200 million for previous financial year mainly due to reduction in cost of material consumed, finance costs and other expenses. Your Board of directors is hopeful to continue improving the performance in the years to come.

ECONOMY / INDUSTRY OUTLOOK

The Indian auto market started off on a promising note in FY 2016-17, encouraging bumps on the way in the second half. The total domestic sales, encompassing all the segments, posted an unflattering single-digit growth of 6.8% during the FY 2016-17. A stable government framework, increased purchasing power, large domestic market, and an ever increasing development in infrastructure have made India a favourable destination for investment.

The demonetization of high currency notes, and the Supreme Court prohibiting the sale of BS-III vehicles effective from 1st April, 2017 put brakes on the growth momentum.

Global automotive lighting market has very broad market in coming recent years. Market analysts have predicted that automotive industry is about to grow at a rapid pace, moreover, the speedy rising sales of passenger cars and technological innovations have also been a growth momentum.

Indian automotive component industry benefits from a strong domestic market as well as growing capability to meet the demands of global customers. With OEMs pursuing standardization and homogenization of multiple vehicle platform, realizable market for Indian automotive component manufacturers is expected to grow as OEMs seeks fair technology input at low cost of manufacturing.

The Company is preparing for a modest industry growth this year with continued focus on improvement in productivity, and reduction of fixed costs. Increasing customer share of business and new customer acquisitions continue to be priority areas. The company will continue the momentum of improving its operations from last year by optimizing fixed costs and reducing scrap. The lesser number of programs this year will help in reducing launch costs which was one of the factors that impacted their margins last year.

INDEX OF CHARGE:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Amount	Address
1	C61599924	10585778	BAJAJ FINANCE LIMITED	13/08/2015	-	150000000.0	Akurdi, Pune-411035, Maharashtra, India
2	C41869074	10545950	THE SARASWAT CO-OPERATIVE BANK LTD.	22/01/2015	-	100000000.0	Madhuleni, Khadekshwar, Aurangabad-431001, Maharashtra, India
3	C32431975	10529384	THE SARASWAT CO-OPERATIVE BANK LTD.	07/11/2014	-	100000000.0	Madhuleni, Khadekshwar, Aurangabad-431001, Maharashtra, India
4	C61295713	10515917	THE SARASWAT CO- OPERATIVE BANK LTD	05/08/2014	10/08/2015	100000000.0	Madhuleni, Khadekshwar, Aurangabad-431001, Maharashtra, India
5	C17264904	10515914	THE SARASWAT CO-OPERATIVE BANK LTD	05/08/2014	-	30000000.0	Madhuleni, Khadekshwar, Aurangabad-431001, Maharashtra, India
6	B69411726	10407596	THE SARASWAT CO-OPERATIVE BANK LTD	05/02/2013	-	152400000.0	Madhuleni, Khadekshwar, Aurangabad-431001, Maharashtra, India
7	B62038831	10386334	HDFC BANK LIMITED	25/10/2012	-	70000000.0	HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Other money for which company is contingently liable	1.123	1.123
Total	1.123	1.123

FIXED ASSETS:

Tangible Asset:

• Land
• Building
• Plant and equipment
• Furniture and Fixture
• Office equipment
• Computer
• Vehicles

Intangible Asset:

· Computer software

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 records 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	INR
US Dollar	1	INR 66.78
UK Pound	1	INR 92.89
Euro	1	INR 80.74

INFORMATION DETAILS

Information Gathered by :	ARC
Analysis Done by :	PRS
Report Prepared by :	BHG

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.