MIRA INFORM REPORT

Report No. :	494441
Report Date :	01.03.2018

IDENTIFICATION DETAILS

Name :	NEXT EDUCATION INDIA PRIVATE LIMITED (w.e.f. 05.07.2010)
Formerly Known As :	HELIX TECHNOLOGY SOLUTIONS PRIVATE LIMITED
Registered Office :	8-2-269/A/2/1 to 6, 201-202 and 209-210, 1^st Floor, Sri Nilaya Cyber Spazio, Road No.2, Banjara Hills, Hyderabad – 500034, Telangana
Tel. No.:	91-40-30949422
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	16.10.2007
Com. Reg. No.:	36-055933
Capital Investment / Paid-up Capital :	INR 319.697 Million
CIN No.: [Company Identification No.]	U72200TG2007PTC055933
IEC No.: [Import-Export Code No.]	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
GSTN : [Goods & Service Tax Registration No.]	Not Divulged
PAN No.: [Permanent Account No.]	AABCH9484P
Legal Form :	Private Limited Liability Company.
Line of Business :	Subject is primarily engaged in providing e-learning services, content development and books for academic education. [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 :

A+

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

Maximum Credit Limit :	USD 7000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Next Education India Private Limited was incorporated in the year 2007. It is headquartered in Hyderabad, India and is engaged in offering learning solutions for students across K–12. For the financial year 2017, the company has achieved decent growth in its revenue as compared to the previous year along with an average profit margin of 2.11%. The sound financial risk profile of the company is marked by adequate net worth base along with strong debt protection metrics due to negligible debt balance sheet profile. The market position is supported by the company's in-house content development and technical capabilities, diverse customer base across India, and efficient sales and aftersales services. These strengths are partially offset by exposure to counterparty risks and to the risk of non-renewal of contracts, and to intense competition from other established players. Payment seems to be regular. In view of aforesaid, 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL RATING
Rating	Long Term Borrowing = BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	22.12.2016

Rating Agency Name	CRISIL RATING
Rating	Short Term Borrowing = A2
Rating Explanation	Strong degree of safety and low credit risk
Date	22.12.2016

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 31-03-2016.

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 28.02.2018.

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.: 91-40-30949422 / 44369922]

Tel. No.: 91-9822735421 [Mr. Arun Jain] not belongs to Subject Company.

LOCATIONS

Registered Office :	8-2-269/A/2/1 to 6, 201-202 and 209-210, 1^st Floor, Sri Nilaya Cyber Spazio, Road No.2, Banjara Hills, Hyderabad – 500034, Telangana
Tel. No.:	91-40-30949422 / 44369922
Fax No.:	Not Available
E-Mail :	secretarial@nexteducation.in info@nexteducation.in
Website :	www.nexteducation.in
Branch Office :	Mylady Chambers, CC 44/1095-C, C-1, C-3, C-4, Pottakuzhy Cross ROAD, Koloor, Kochi – 682017, Kerala, India

DIRECTORS

As on 31.03.2017

Name :

Mr. Daljit Bajwa Singh

Designation :

Whole-Time Director

Address :

H-No-1-8-373-378-380,383 ,408 Krishe Gardens Chiran Fort Lane, Begumpet

Secunderabad – 500003, Andhra Pradesh, India

Date of Birth/Age :

25.09.1969

Date of Appointment :

16.10.2007

DIN No.:

01788068

PAN No.:

ADGPB4479F

Name :

Mr. Beasdev Ralhan

Designation :

Whole-Time Director

Address :

H No 327, St, 23 Newjagatpura Hoshiarpur – 146001, Punjab, India

Date of Birth/Age :

12.07.1976

Date of Appointment :

14.12.2010

DIN No.:

02709434

PAN No.:

ADQPR3695B

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U72200KA2009PTC050634	FRESHPIXEL LABS INDIA PRIVATE LIMITED	13/08/2009	-

Name :

Mr. Raveendranath Madavana Venugopala Kamath

Designation :

Whole-Time Director

Address :

49/699, Madavana House, Elamakkara Po, Kochi – 682026, Kerala, India

Date of Birth/Age :

02.09.1976

Date of Appointment :

21.03.2012

DIN No.:

02890813

PAN No.:

AFAPK2594L

KEY EXECUTIVES

Name :	Akhil T.M
Designation :	Company Secretary
Address :	Thandassery House P.O Poothole, S.N. Park Thrissur – 680004, Kerala, India
Date of Appointment :	08.12.2014
PAN No.:	AVUPA1181H
Name :	Mr. Raveendranath Madavana Venugopala Kamath
Designation :	Chief Financial Officer (KMP)
Address :	49/699, Madavana House, Elamakkara Po, Kochi – 682026, Kerala, India
Date of Birth/Age :	02.09.1976
Date of Appointment :	21.03.2012
PAN No.:	AFAPK2594L
Name :	Mr. Beasdev Ralhan
Designation :	Chief Financial Officer (KMP)
Address :	H No 327, St, 23 Newjagatpura Hoshiarpur – 146001, Punjab, India
Date of Birth/Age :	12.07.1976
Date of Appointment :	14.12.2010
PAN No.:	ADQPR3695B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2017

Names of Shareholders	No. of Shares
Daljit Bajwa Singh	5000
Kedar Chowdhary	1405241
Anurag Dikshit	21208111
Deependra Singh Bhartari	1405231
Raveendranath Kamath MV, India	2722754
Hari Sharan Dikshit	3147838
Soma Pujari	2075471
Beas Dev Ralhan	100
Total	31969746

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2017

Category	Percentage
Promoter – (Individual/ Hindu Undivided Family – Indian)	8.52
Promoter – (Individual/ Hindu Undivided Family – Foreign National)	66.34
Public – (Individual/ Hindu Undivided Family – Indian)	14.26
Public – (Individual/ Hindu Undivided Family – Non Resident India)	4.39
Public – (Individual/ Hindu Undivided Family – Foreign National)	6.49
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in providing e-learning services, content development and books for academic education. [Registered Activity]

Products :

Item Code No.	Product Description
99929200	Educational Support Services

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	HDFC Bank Limited
Branch	HDFC Bank House, Senapati Bapat Marg, Lower Parel West, Mumbai – 400013, 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)	--

• Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Rupee term loans from banks	488.017	422.391
Short-term borrowings
Loans repayable on demand from banks	244.881	91.610
Total	732.898	514.001

Auditors :
Name :	B S R and Associates Chartered Accountants
Address :	Maruthi Info-Tech Centre, 11-12/1 Inner Ring Road, Koramangala, Bangalore - 560071, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAIFB7355D
Memberships :	Not Available
Collaborators :	Not Available
Others Related Party :	Next Education Foundation

CAPITAL STRUCTURE

AFTER 31.03.2017

Authorised Capital : INR 410.000 Million

Issued, Subscribed & Paid-up Capital : INR 323.577 Million

As on 31.03.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	INR 10/- each	INR 350.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31969746	Equity Shares	INR 10/- each	INR 319.697 Million

FINANCIAL DATA

[all figures are in 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	319.697	319.697	319.697
(b) Reserves & Surplus	2148.583	2076.556	1975.007
(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)	2468.280	2396.253	2294.704
(3) Non-Current Liabilities
(a) long-term borrowings	488.017	422.391	382.816
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	51.973	51.964	33.708
(d) long-term provisions	82.591	111.973	120.879
Total Non-current Liabilities (3)	622.581	586.328	537.403
(4) Current Liabilities
(a) Short term borrowings	244.881	91.610	0.000
(b) Trade payables	252.053	170.273	98.966
(c) Other current liabilities	540.161	442.385	348.828
(d) Short-term provisions	39.668	44.445	39.736
Total Current Liabilities (4)	1076.763	748.713	487.530
TOTAL	4167.624	3731.294	3319.637
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	132.018	87.839	69.041
(ii) Intangible Assets	422.990	324.166	281.006
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	85.488	32.447	16.027
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	151.270	132.025	80.650
(e) Other Non-current assets	1529.841	1498.680	1517.377
Total Non-Current Assets	2321.607	2075.157	1964.101
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	392.077	306.290	242.491
(c) Trade receivables	1254.885	1129.552	766.203
(d) Cash and cash equivalents	79.435	122.699	262.055
(e) Short-term loans and advances	79.508	52.977	50.028
(f) Other current assets	40.112	44.619	34.759
Total Current Assets	1846.017	1656.137	1355.536
TOTAL	4167.624	3731.294	3319.637

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	2737.114	2318.996	1901.320
	Other Income	5.657	3.422	9.974
	TOTAL	2742.771	2322.418	1911.294
Less	EXPENSES
	Cost of Materials Consumed	159.556	84.804	19.359
	Purchases of Stock-in-Trade	732.740	773.056	836.243
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	54.547	(97.259)	(115.893)
	Employees benefits expense	774.149	699.500	495.174
	CSR Expenditure	0.541	0.000	0.000
	Other expenses	709.706	547.391	422.153
	TOTAL	2431.239	2007.492	1657.036
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	311.532	314.926	254.258
Less	FINANCIAL EXPENSES	98.872	67.970	53.405
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	212.660	246.956	200.853
Less	DEPRECIATION/ AMORTISATION	154.883	175.814	155.666
	PROFIT/ (LOSS) BEFORE TAX	57.777	71.142	45.187
Less	TAX	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX	57.777	71.142	45.187
	IMPORTS
	Raw Materials	147.418	183.814	141.852
	TOTAL IMPORTS	147.418	183.814	141.852
	Earnings / (Loss) Per Share (INR)	1.81	2.23	1.47

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	184.641	167.325	153.673
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	174.144	88.667	(56.610)

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	167.34	177.79	147.09
Account Receivables Turnover (Income / Sundry Debtors)	2.18	2.05	2.48
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	103.10	72.45	42.22
Inventory Turnover (Operating Income / Inventories)	0.79	1.03	1.05
Asset Turnover (Operating Income / Net Fixed Assets)	0.49	0.71	0.69

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.42	0.36	0.31
Debt Equity Ratio (Total Liability / Networth)	0.37	0.28	0.23
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.44	0.31	0.21
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.26	0.19	0.16
Interest Coverage Ratio (PBIT / Financial Charges)	3.15	4.63	4.76

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	2.11	3.07	2.38
Return on Total Assets ((PAT / Total Assets) * 100)	%	1.39	1.91	1.36
Return on Investment (ROI) ((PAT / Networth) * 100)	%	2.34	2.97	1.97

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.71	2.21	2.78
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.35	1.80	2.28
G-Score Ratio Financial (Networth / Total Assets)	0.59	0.64	0.69
G-Score Ratio Debt (Debts / Equity Capital)	2.87	2.13	1.68
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.71	2.21	2.78

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	319.697	319.697	319.697
Reserves & Surplus	1975.007	2076.556	2148.583
Net worth	2294.704	2396.253	2468.280
long-term borrowings	382.816	422.391	488.017
Short term borrowings	0.000	91.610	244.881
Current Maturities of Long term debt	153.673	167.325	184.641
Total borrowings	536.489	681.326	917.539
Debt/Equity ratio	0.234	0.284	0.372

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	1901.320	2318.996	2737.114
		21.968	18.030

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	1901.320	2318.996	2737.114
Profit	45.187	71.142	57.777
	2.38%	3.07%	2.11%

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	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	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

COMPANY OVERVIEW

Subject was incorporated on 16 October 2007, as a private limited company. The registered office of the company is located Hyderabad, India. The Company is primarily engaged in providing e-learning services, content development and books for academic education.

OPERATION

During the year, the Company recorded total revenue of INR 2742.771 Million as compared to previous year revenue of INR 2322.418 Million. The Directors are happy to report the company registered a profit of INR 57.777 Million.

INDEX OF CHARGES:

Charges Registered
SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G54350004	100116249	HDFC BANK LIMITED	27/01/2017	17/09/2017	-	1242610000.0	HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN
2	G36417558	10463108	Kotak Mahindra Bank Limited	13/11/2013	-	17/02/2017	150000000.0	36-38A, NARIMAN BHAVAN, 227,D,NARIMAN POINT,MUMBAIMH400021IN
3	G36417152	10430212	Kotak Mahindra Bank Limited	17/05/2013	-	17/02/2017	200000000.0	36-38A, NARIMAN BHAVAN, 227,D,NARIMAN POINT,MUMBAIMH400021IN
4	G36418242	10538020	KOTAK MAHINDRA BANK LIMITED	05/12/2014	24/11/2016	17/02/2017	950000000.0	27BKC, C 27, G BlockBandra Kurla Complex, Bandra (E),MumbaiMa400051IN
5	C69440493	10379542	KOTAK MAHINDRA BANK LIMITED	26/09/2012	-	14/10/2015	200000000.0	36-38A, NARIMAN BHAVAN, 227,D,NARIMAN POINT,MUMBAIMH400021IN
6	B78444569	10344882	KOTAK MAHINDRA BANK LIMITED	03/03/2012	-	14/06/2013	300000000.0	36-38A, NARIMAN BHAVAN, 227,D,NARIMAN POINT,MUMBAIMH400021IN

FIXED ASSETS

• Furniture and Fixture
• Office Equipment
• Computer Equipment
• Leasehold Improvement

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 64.85
UK Pound	1	INR 90.58
Euro	1	INR 79.97

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	PRI
Report Prepared by :	JYO

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.