MIRA INFORM REPORT

3decades

MIRA INFORM REPORT

Report No. :	512432
Report Date :	01.06.2018

IDENTIFICATION DETAILS

Name :	PYROTEK INDIA PRIVATE LIMITED

Registered Office :	Gate No. 1228/1, 1228/2, 1229/1, 1230/4, 1230/5, 1230/6, Village Sanaswadi, Taluka Shirur, Pune – 411208, Maharashtra
Tel. No.:	91-2137-668020 / 668000

Country :	India

Financials (as on) :	31.03.2017

Date of Incorporation :	09.02.2000

Com. Reg. No.:	11-020157

Capital Investment / Paid-up Capital :	INR 522.984 Million

CIN No.: [Company Identification No.]	U29299PN2000PTC020157

IEC No.: [Import-Export Code No.]	Not Divulged

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AABCP8012H

GSTN : [Goods & Service Tax Registration No.]	Not Divulged

Legal Form :	Private Limited Liability Company

Line of Business :	The Company is primarily engaged in the business of development, manufacture and sale of high-temperature materials for industrial applications. (Registered activity)

No. of Employees :	Information declined by the management

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject was incorporated in the year 2000. For the financial year 2017, the company has achieved revenue growth of 21.96% as compared to the previous year along with decent profit margin of 8.76%. The moderate financial risk profile of the company is marked by negative reserve base. Rating takes into consideration the subject’s negligible debt balance sheet profile due to unsecured debt recorded in the books. Payment seem to be slow but correct. In view of aforesaid, the company can be considered for business dealings with some caution.

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	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 31-03-2018.

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 01.06.2018

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 DENIED

MANAGEMENT NON-COOPERATIVE (TEL NO.: 91-213-7668000)

91-44-26811071 (NOT WORKING)

LOCATIONS

Registered Office / Factory 1.:	Gate No. 1228/1, 1228/2, 1229/1, 1230/4, 1230/5, 1230/6, Village Sanaswadi, Taluka Shirur, Pune – 411208, Maharashtra, India
Tel. No.:	91-2137-668020 / 668000
Mobile No.:	91-9850743121 (Mr. Yogesh Dhusia)
Fax No.:	91-2137-668050
E-Mail :	yogdhu@pyrotek.inc.com pune@pyrotek-inc.com
Website :	www.pyroteck.info www.pyrotek-inc.com
Area :	17 acers
Location :	Owned
Locality:	Commercial/ Industrial

Factory 2 :	Shed No. 3, SIDCO Industrial Estate, Thirumazhisai, Chennai – 600124 Tamilnadu, India

Kolkata Office:	National Business Development Office, Mangalam Business Centre, Suite No. 610, 6^th Floor, A Block, 22 Camac Street, Kolkata – 700016, West Bengal, India
Tel. No.:	91-44-67106619

Chennai Office.:	Plot No. S-43 and S-43A, SIPCOT Industrial Estate, Pillaipakkam, Sriperumbudur Taluk, Kancheepuram District - 602105, Tamilnadu, India
Tel. No.:	91-44-67106619

DIRECTORS

As on 31.03.2017

Name :	Mr. Martin Plsek
Designation :	Director
Address :	Hrazka 615/30 Brno 62100 Czech Republic.
Date of Birth/Age :	28.02.1977
Date of Appointment :	17.06.2010
DIN No. :	03100736

Name :	Mr. Vivekananda Sharad Lokre
Designation :	Managing Director
Address :	601- 6^th Floor, 5^th Avenue CHS, Near City Pride, Kothrud, Pune – 411029, Maharashtra, India
Date of Birth/Age :	18.06.1962
Qualification :	MBA and BE Mechanical
Date of Appointment :	10.09.2016
PAN No.:	AAIPL6270B
DIN No.:	03567929

Name :	Mr. Don Zel Ting
Designation :	Director
Address :	1609 S Crest Rd Spokane 99203 United States
Date of Appointment :	15.02.2015
DIN No.:	07069330

Name :	Mr. Shirish Krishnaji Zingade
Designation :	Whole-time Director
Address :	Row House No. A-17, Erica Magarpatta, City Hadapsar, Pune – 411013, Maharashtra, India
Date of Birth/Age :	01.06.1966
Qualification :	M Com FCA CMA
Date of Appointment :	15.02.2015
PAN No.:	AAAPZ3634K
DIN No.:	07098358

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2017

Names of Shareholders (Equity Shares)		No. of Shares
Pyrotek Inc. – United States of America		40698427
Pyroteck FZE – United Arab Emirates		1

Total		40698428

Names of Shareholders (Preference Shares)		No. of Shares
Pyrotek Inc. – United States of America		529589

Total		529589

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2017

Category	Percentage
Promoter - Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is primarily engaged in the business of development, manufacture and sale of high-temperature materials for industrial applications. (Registered activity)

Products :

Item Code No.	Product Description
38249090	Refining Agents and Fluxes
73141490	Glass
69039090	Other Caster parts
70199090	Glass fibre Fabric Shapes
70191900	Wooven Glass Fiber Fabric
69149000	Ceramic Foam Filters and others
39269091	Accoustics and Personal Protection Equipments
84798999	Machining and Degassing
69039090	Caster and Graphite Parts
69149000	Ceramic Foam Filters
38160000	Chemical coatings

NIC Code No.	Product Description
321.2	Fibre Glass Fabric Shapes
300.8	Fluxes

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

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 :

Information declined by the management

Bankers :

Bank Name	The Hongkong and Shanghai Banking Corporation Limited
Branch	Amar Avinash Corporate City, Bund Garden Road, Pune – 411001, Maharashtra, India
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 Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Short-term Borrowings
Loans repayable on demand from banks	0.000	71.141

Total	0.000	71.141

Auditors :
Name :	MZSK and Associates Chartered Accountants
Address :	Floor 6, Building No. 1, Cerebrum IT Park, Kayani Nagar, Pune, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AACFK3470E

Memberships :	Not Available

Collaborators :	Not Available

Holding Company.:	Pyrotek - Inc USA

Fellow Subsidiary.:	Pyrotek (Asia) Limited, Hong Kong Pyrotek Bahrain S.P.C Pyrotek CZ, S.R.O., Czech Republic Pyrotek Engineering Materials (Pty.) Limited. - South Africa Pyrotek Engineering Materials Limited. - Grevenbroich, Germany Pyrotek Engineering Materials Limited. - MK, United Kingdom Pyrotek Engineering Materials Limited. -Zaragoza, Spain Pyrotek High-Temperature Industrial Products Inc., Canada, Pyrotek High-Temperature Industrial Products Inc., Drummondville, PT. Pyrotek Indonesia., Indonesia Pyrotek (Guangxi Nanning) High-Temperature Materiral Co. Pyrotek Limited - Russia Pyrotek (Taiwan) Materials Co. Limited Pyrotek Inc - Korea Pyrotek Middle East FZE - Dubai Pyrotek Scandanavia AB - Sweden Pyrotek Switzerland S.A, Pyrotek Thailand Co. Limited Pyrotek Mexico S,de R. L.de C.V. Pyrotek, Pty. Limited. - Sydney, Australia Pyrotek Products Limited. - Auckland, New Zealand Pyrotek Japan Limited. Pyrotek Refrakter Industry and Trade Limited Co, Turkey Metaullics System Europe B.V., Netherlands Pyrotek Inc - Argentina Pyrotek Inc - Sherbrooke Pyrotek Engineering Materils Limited - Italy Pyrotek Dongguan Limited., China TAB Refractory Construction and Maintenance Co. Limited. Shenzhen Pyrotek Inc., China Pyrotek Xian Metallurgical Material Co. Limited Pyrotek Tecnologia Limiteda Brazil

CAPITAL STRUCTURE

After 29.09.2017

Authorised Capital : INR 600.000 Million

Issued, Subscribed & Paid-up Capital : INR 522.984 Million

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount

49500000	Equity Shares	INR 10/- each	INR 495.000 Million
550000	Preference Shares	INR 100/- each	INR 55.000 Million
	Total		INR 550.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

40698428	Equity Shares	INR 10/- each	INR 406.984 Million
529589	Preference Shares	INR 100/- each	INR 52.959 Million
	Total		INR 459.943 Million

FINANCIAL DATA

[all figures are in Rupees 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	459.943	434.050	434.050
(b) Reserves and Surplus	(17.520)	(123.624)	(124.667)
(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)	442.423	310.426	309.383

(3) Non-Current Liabilities
(a) long-term borrowings	194.516	293.994	292.837
(b) Deferred tax liabilities (Net)	17.737	0.000	0.000
(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)	212.253	293.994	292.837

(4) Current Liabilities
(a) Short-term borrowings	0.000	71.141	55.293
(b) Trade payables	109.213	71.277	63.078
(c) Other current liabilities	150.058	60.507	53.770
(d) Short-term provisions	5.222	1.319	2.442
Total Current Liabilities (4)	264.493	204.244	174.583

TOTAL	919.169	808.664	776.803

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	426.922	446.213	438.742
(ii) Intangible Assets	1.937	2.311	6.552
(iii) Tangible assets capital work-in-progress	15.019	1.943	4.931
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term loans and advances	8.137	5.133	1.818
(e) Other Non-current assets	0.000	0.000	3.990
Total Non-Current Assets	452.015	455.600	456.033

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	172.366	131.360	121.029
(c) Trade receivables	173.661	147.315	124.415
(d) Cash and bank balances	58.986	1.674	2.704
(e) Short-term loans and advances	61.923	71.856	68.344
(f) Other current assets	0.218	0.859	4.278
Total Current Assets	467.154	353.064	320.770

TOTAL	919.169	808.664	776.803

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Total Revenue from operations	1143.886	937.886	922.182
	Other Income	0.341	1.224	2.195
	TOTAL	1144.227	939.110	924.377

Less	EXPENSES
	Cost of Materials Consumed	364.906	313.085	314.859
	Purchases of Stock-in-Trade	171.690	149.098	211.035
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(25.705)	(10.271)	(11.278)
	Employee benefit expense	160.396	138.875	127.817
	Other expenses	281.775	252.041	220.796
	TOTAL	953.062	842.828	863.229

	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	191.165	96.282	61.148

Less	FINANCIAL EXPENSES	25.710	51.036	26.727

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	165.455	45.246	34.421

Less/ Add	DEPRECIATION/ AMORTISATION	44.449	44.203	39.180

	PROFIT/ (LOSS) BEFORE TAX	121.006	1.043	(4.759)

Less	TAX	20.808	0.000	0.000

	PROFIT/ (LOSS) AFTER TAX	100.198	1.043	(4.759)

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	703.572	587.202	528.972
	TOTAL EARNINGS	703.572	587.202	528.972

	IMPORTS
	Raw Materials	139.761	113.735	81.561
	Components and spare parts	138.377	112.591	106.163
	Capital Goods	4.302	1.636	3.314
	TOTAL IMPORTS	282.440	227.962	191.037

	Earnings / (Loss) Per Share (INR)	2.58	0.03	(0.15)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	88.699	19.900	18.777
Net cash flows from (used in) operations	190.736	66.985	(8.508)
Net cash flows from (used in) operating activities	179.740	66.966	12.907

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days [Sundry Debtors / Income * 365]	55.41	57.33	49.24

Account Receivables Turnover [Income / Sunday Debtors]	6.59	6.37	7.41

Average Payment Days [Sundry Creditors / Purchases * 365]	74.29	56.29	43.78

Inventory Turnover [Operating Income / Inventories]	1.11	0.73	0.51

Asset Turnover [Operating Income / Net Fixed Assets]	0.43	0.21	0.14

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio [(Borrowing + Current Liabilities) / Total Assets]	0.60	0.64	0.63

Debt Equity Ratio (Borrowings / NetWorth)	0.64	1.24	1.19

Current Liabilities to Networth (Current Liabilities / NetWorth)	0.60	0.66	0.56

Fixed Assets to NetWorth (Net Fixed Assets / NetWorth)	1.00	1.45	1.46

Interest Coverage Ratio [PBIT / Financial Charges]	7.44	1.89	2.29

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin [(PAT / Sales) * 100]	(%)	8.76	0.11	(0.52)

Return on Total Assets [(PAT / Total Assets) * 100]	(%)	10.90	0.13	(0.61)

Return on Investment (ROI) [(PAT / NetWorth) * 100]	(%)	22.65	0.34	(1.54)

SOLVENCY RATIO

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio [Current Assets / Current Liabilities]	1.77	1.73	1.84

Quick Ratio [(Current Assets - Inventories) / Current Liabilities]	1.11	1.09	1.14

G-Score Ratio Financial [NetWorth / Total Assets]	0.48	0.38	0.40

G-Score Ratio Debt [Debts / Equity Capital]	0.62	0.89	0.85

G-Score Ratio Liquidity [Total Current Assets / Total Current Liabilities]	1.77	1.73	1.84

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

FINANCIAL ANALYSIS

[all figures are in 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	434.050	434.050	459.943
Reserves & Surplus	(124.667)	(123.624)	(17.520)
Net worth	309.383	310.426	442.423

Long-term borrowings	292.837	293.994	194.516
Short term borrowings	55.293	71.141	0.000
Current maturities of long-term debts	18.777	19.900	88.699
Total borrowings	366.907	385.035	283.215
Debt/Equity ratio	1.186	1.240	0.640

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	922.182	937.886	1143.886
		1.703	21.964

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	922.182	937.886	1143.886
Profit/ (Loss)	(4.759)	1.043	100.198
	(0.52%)	0.11 %	8.76 %

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	No
8	Designation of contact person	No
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	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

CORPORATE INFORMATION

The company incorporated on 9^th February 2000, is a subsidiary of the Pyrotek-Inc, a privately owned multinational Company, specialized in the development, manufacture and sale of high temperature materials for industrial applications. Pyrotek-inc was found in 1957 in Washington, USA. Pyrotek has gained the international stature by spreading its operations across the globe.

UNSECURED LOAN

Unsecured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Term loans from others	194.516	293.994

Total	194.516	293.994

INDEX OF CHARGES:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G76789494	100154296	The Hongkong and Shanghai Banking Corporation Limited	05/02/2018	-	-	460000.0	Amar Avinash Corporate City, Bund Garden Road, Pune – 411001, Maharashtra, India
2	C36517035	10065271	The Hongkong and Shanghai Banking Corporation Limited	13/07/2007	09/12/2014	-	200000000.0	Amar Avinash Corporate City, Bund Garden Road, Pune – 411001, Maharashtra, India

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Estimated amount of contracts remaining to be executed on capital account and not provided for	1.961	0.557

FIXED ASSETS

Land
Buildings
Plant and equipment
Furniture and fixtures
Vehicles
Office equipment
Computer 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 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 67.82
UK Pound	1	INR 90.17
Euro	1	INR 78.70

INFORMATION DETAILS

Information Gathered by :	GAY

Analysis Done by :	PRY

Report Prepared by :	KJL

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	NO
--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.