MIRA INFORM REPORT

Report Date :

20.04.2011

IDENTIFICATION DETAILS

Name :	RATNADEEP METAL AND TUBES LIMITED
Registered Office :	402, Sai Prasad Apartment, Near Darpan Academy, Usmanpura, Ahmedabad – 380013, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.06.2002
Com. Reg. No.:	04-40863
CIN No.: [Company Identification No.]	U27101GJ2002PLC040863
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturing and Supplying of Stainless Steel Carbon Steel and Alloy Steel Stainless Seamless Tubes / Pipes as well as Stainless Steel welded tubes / pipes.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 560000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established company, primarily engaged in trading of metals and metal products. Trade relations are fair. Payments are reported as slow but correct. Directors are reported as resourceful businessmen. However, the company can be considered normal 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Timir Jain
Designation :	Director
Contact No.:	91-9825027839
Date :	15.03.2011

LOCATIONS

Registered Office :	402, Sai Prasad Apartment, Near Darpan Academy, Usmanpura, Ahmedabad – 380013, Gujarat, India
E-Mail :	ppsystem@yahoo.co.in info@ratnadeepmetal.com pmsystem@sancharnet.in
Website :	http://www.rantnadeepmetal.com
Corporate Office :	102, Rajgiri Apartments, 196/198, Khetwadi Back Road, Opposite Khetwadi Lane, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23805700/ 1/ 66362742
Mobile No.:	91-9820558811
Fax No.:	91-22-23805702
E-Mail :	Mumbai@rantnadeepmetal.com
Factory :	Survey No.1015/2, Village – Rajpur, 40 km Ahmedabad – Mehsana Highway, Taluka – Kadi, District – Mehsana – 382715, India
Tel. No.:	91-2764-267510/ 267544
Mobile No.:	91-9825024682
Fax No.:	91-2764-267511
E-Mail :	works@ratnadeepmetal.com

DIRECTORS

AS ON 30.06.2009

Name :	Mr. Bharat S. Jain
Designation :	Director
Address :	16, Sahjivan Society, Opposite Ayodhya Nagar, Near Shantinagar, Usmanpura, Ahmedabad – 380013, Gujarat, India
Date of Appointment :	14.06.2002
Name :	Mr. Jayant Virchand Jain
Designation :	Directors
Address :	504, A Wing, 5^th Floor, Goragandhi Palace, 122 Khetwadi Back Road, Mumbai – 400004, Maharashtra, India
Date of Appointment :	14.06.2002
Name :	Mr. Timir Jayat Jain
Designation :	Director
Address :	504, A Wing, 5^th Floor, Goragandhi Palace, 122 Khetwadi Back Road, Mumbai – 400004, Maharashtra, India
Date of Appointment :	25.07.2005
Name :	Mr. Jimik Bharat Jain
Designation :	Director
Address :	16, Sahjivan Society, Opposite Ayodhya Nagar, Near Shantinagar, Usmanpura, Ahmedabad – 380013, Gujarat, India
Date of Appointment :	01.04.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2009

Names of Shareholders	No. of Shares
Bharat Jain HUF	42750
Bharat Jain	217500
Hansaben Jain	156625
Prafulla Jain	180600
Jayant Jain	205770
Jayant Jain HUF	38250
Timir Jian	96225
Varun Jian	44500
Rinkal Jain	71500
Jaimik Shanghvi	47000
Taraben S. Jain	109150
Shantilal Shanghvi	89750
Ruchi Jian	54000
Gayatri Lease Finance Limited	134380
Virendra Raj Mehta and Vimla Mehta	12000
Total	1500000

List of Allottees

Names of Allottees	No. of Shares
Universal Credit and Securities Limited, Ahmedabad	12000
Gujarat Jhaveri Spinners Limited, Ahmedabad	4000
Yankee Management Services Private Limited, Ahmedabad	8000
Gayatri Lease Finance Private Limited, Ahmedabad	1735
Bhairav India International, Ahmedabad	18000
Total	43735

AS ON 30.06.2009

Equity share breakup
Category	Percentage
Bodies corporate	9.88
Directors or relatives of directors	89.24
Others	0.88
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Supplying of Stainless Steel Carbon Steel and Alloy Steel Stainless Seamless Tubes / Pipes as well as Stainless Steel welded tubes / pipes.
Terms :
Selling :	Cash
Purchasing :	Cash

PRODUCTION STATUS(AS ON 31.03.2010)

Particulars	Unit	Installed Capacity
Curbon / Alloys Tubes	TPA	4500
Seamless Pipes	TPA	1635
SS Welded	TPA	900

Particular	Actual Production
C.S Seamless	2394
S.S. Seamless	509
S.S. Welded Pipes	3628
Scrap	311
Others	6722

GENERAL INFORMATION

Customers :

Retailers, End Users and Dealers

No. of Employees :

400 (In Office) (Approximately)

Bankers :

• Axis Bank Limited, Trishul 3^rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad-380006, Gujarat, India.
• Vijaya Bank Industrial Finance Branch, Kamdhenu Complex, Ambawadi, Ahmedabad – 380015, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. In Millions )	As on 31.03.2009 (Rs. In Millions)
Vehicles Loan (all the above secured by hypothecation of vehicles )	1.018	1.705
Term Loan	64.118	41.643
Cash Credit (all are secured by hypothecation of all type of current assets, plant and machinery and mortgages of factory land and buildings)	193.683	105.471
Total	258.816	148.819
Unsecured Loan
From director	0.000	0.880
From members and their relatives	23.431	24.943
From corporate entries/ bank	0.000	7.291
Total	23.431	33.114

Banking Relations :	--
Auditors :
Name :	KPSJ and Associates Chartered Accountant
Address :	504, Sahajanand Shoping Centre, Opposite Rajasthan Hindi High School, Shahibaug, Ahmedabad-380004, Gujarat, India.
Tel. No.:	91-79-25621950/ 4627
Mobile No.:	91-9327014733

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital:

No. of Shares	Type	Value	Amount
5000000	Equity Share	Rs.10/- Each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1606360	Equity Share	Rs.10/- Each	Rs. 16.063 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		16.063	13.589	11.414
2] Share Application Money		0.000	0.100	0.100
3] Reserves & Surplus		122.720	89.365	51.755
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		138.783	103.054	63.269
LOAN FUNDS
1] Secured Loans		258.816	148.819	88.652
2] Unsecured Loans		23.431	33.114	15.405
TOTAL BORROWING		282.247	181.933	104.057
DEFERRED TAX LIABILITIES		9.249	6.497	3.957
Security Deposits/ Capital Liabilities		8.026	8.719	9.896
TOTAL		438.305	300.203	181.179
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		147.217	117.422	75.369
Capital work-in-progress		0.000	3.573	6.461
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	214.367	108.488	80.258
	Sundry Debtors	160.448	82.811	47.605
	Cash & Bank Balances	34.223	29.843	19.327
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	33.904	23.314	16.423
Total Current Assets		442.942	244.456	163.613
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	142.006	55.513	57.724
	Provisions	9.944	9.880	6.748
Total Current Liabilities		151.950	65.393	64.472
Net Current Assets		290.992	179.063	99.141
MISCELLANEOUS EXPENSES		0.096	0.145	0.208
TOTAL		438.305	300.203	181.179

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	673.107	611.546	404.583
		Other Income	2.714	1.325	0.721
		TOTAL (A)	675.821	612.871	405.304
Less	EXPENSES
		Cost of Goods Sold	184.995	85.050	35.698
		Raw Material Consumed	405.214	397.927	263.094
		Manufacturing Expenses	56.930	66.792	41.899
		Payment to Employees	11.049	10.326	8.421
		Administrative Expenses	13.219	13.660	11.114
		Selling and Distribution Expenses	10.501	9.406	19.236
		Increase / Decrease in Stock	(77.852)	(21.805)	(4.703)
		TOTAL (B)	604.059	561.356	374.759
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		71.762	51.515	30.545
Less	FINANCIAL EXPENSES (D)		24.651	21.784	10.174
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.111	29.731	20.371
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.651	11.980	7.304
	PROFIT BEFORE TAX (E-F) (G)		28.460	17.751	13.067
Less	TAX (I)		9.788	5.727	4.278
	PROFIT AFTER TAX (G-I) (J)		18.672	12.024	8.789
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.773	20.009	11.636
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.000
		Dividend	0.223	0.183	0.060
		Tax on Dividend	1.316	1.077	0.356
	BALANCE CARRIED TO THE B/S		49.445	32.033	20.009
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	22.886	53.633	25.147
	TOTAL EARNINGS		22.886	53.633	25.147
	IMPORTS
		C.I.F. Value of Import	167.435	151.835	83.723
	TOTAL IMPORTS		167.435	151.835	83.723
	Earnings Per Share (Rs.)		12.75	10.05	18.50

Expected Sales (2010-2011) : Rs. 1000.000 millions.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.76	1.91	2.19
Net Profit Margin (PBT/Sales)	(%)	4.22	2.82	3.22
Return on Total Assets (PBT/Total Assets}	(%)	4.82	4.90	5.47
Return on Investment (ROI) (PBT/Networth)		0.20	0.17	0.20
Debt Equity Ratio (Total Liability/Networth)		3.12	2.40	2.66
Current Ratio (Current Asset/Current Liability)		2.91	3.74	2.54

LOCAL AGENCY FURTHER INFORMATION

CREDIT FACILITIES CONSRTUIM BETWEEN AXIS BANK AND BOI:

The Board on behalf of Company had approached to various banks for fund requirement for expansion and banking requirement of the company, the board of directors had accepted the consortium arrangement between Axis Bank, a leading new generation private bank and Bank of India, a old and strong public sector bank. We hope a good start, will result a long-term relation and to cater our demand for ambitious future project and satisfactory service. The company has proposed to take term loan of Rs.60.000 millions from Bank of India for expansion of business.

INCREASE IN PAID UP SHARE CAPITAL

The paid up capital is increased from Rs.13.589 millions to 16.064 millions and share premium from Rs.58.592 millions to Rs.74.815 millions by raising new capital fund having face value Rs. 2.465 millions and at Premium of Rs 16.133 millions during the year.

OPERATIONAL REVIEW

Completing Expansion Project for Carbon Steel :

Company had completed expansion for manufacturing of Carbon /Alloy Seamless Steel tubes / pipes from 1200 to 4500 M.T. /P.A. by installing new Draw Bench Machines, bright annealing furnace and adequate testing infrastructure facilities, Completing Online Bright Annealing for Stainless Steel Welded Tubes Company has completed successfully installation of Online Bright Annealing Furnace on Tube mill to produce welded bright-annealed tubes specially required for Power Plant and automobile industry. Requirement of Bright tubes is highly value added product and its demand is more.

Addition of New Products/ Range of Products :

Company has commenced manufacturing of its new product i.e. Instrumentation tubes 3.00 mm OD to 12.70 mm OD of 100 meter length in suitable coil. The product is highly value additions and gives the edge and strength more above similar units.

Quality and Productivity:

Company has installed new Bright Annealing furnace for Instrumentation Tubes and Standard S.S. Tubes, which will give long life to the product, cut the chemical process and increase the productivity. The successfully installation of bright annealing process had given a strong and top position in the tube industry all over the world. These tubes are useful in Automobile Industry and Instrumentation for Refinery and Power Plant.

Prestigious Buyers Approval:

After a long procedure of due dilatation regarding system and financial strength, their inspection of infrastructure facilities for process, in house quality checks and competent man power, the company has received prestigious buyers approvals from M/s Engineers India Limited, Turnkey Project Consultants to all government and major private refineries and oil companies like IOCL, Reliance, BPCL, HPCL, etc. Bharat Heavy Electrical Limited (Haridwar and Hyderabad) had approved and, awarded orders immediately, which had executed successfully and expect continuous flow of such orders. Sabic, UAE, a world well-known largest refinery had also approved, executed orders, had increased the future potential abilities of bulk orders, engine speed age growth to the company through further expansions.

Participating in International Events:

Renowned international buyers all over the world significantly noted the presence of company. Further, the company is in continuous connection with overseas buyers through e-mail, telephonic talk and personal visits, the year was a landmark for capturing export market.

Building a Strong Order Position:

Due to continues hard efforts in quality and system improvement and delivery at the committed schedule, brought the company in preferred supplier among the buyers, resultant the company is standing at order level around Rs 450.000 millions with delivery schedule from three to six months and more than its double in potential inquiries.

FUTURE SCENARIOS

Expansion Project:

Online annealing, Seamless pilgering mill, S.S.Tube Mill, Hydraulic and Cylinder Tube Plants The company has planned to install new automatic plant to expand the SS tube capacity by installing two more pilger mills, 24 meter cold draw bench and more SS welded tube mills with online bright annealing facility along nitrogen plant. It will improve capacity by 1470 MT/PA with higher productivity and better quality norms. The highly ambitious expansion will push the company in frontline in the industry. The company is absorbing the in house technology to cut the cost of project and quality substantially. The company will remain as lowest capital investment per M.T. among the tube industry. Online annealing for seamless in pilgering, which is latest technical development in the tube industry. Further, the company is in process to establish a rolling mill to reuse the scrap tube. Resultant the annual capacity increases seamless tubes from 1635 MT to 3105 MT, SS Tube from 900 MT to 1460 MT/PA to meet the order position. Company is going to start manufacturing Fuel Injection and Hydraulic Tubes specially required for Automobile Industry at Unit – 2. The fuel injection tubes are very critical product and is very highly value added and its demand is in huge bulk. Company is also going to start manufacturing Cylinder Tube (Ready to Honing) at Unit 1. Cylinder tubes has very close OD – ID tolerance and its requirement is in bulk in India.

Form : 8

Bankers Charges Report as per Registry

Name of the company

RATNADEEP METAL AND TUBES LIMITED

Presented By

Bharat S. Jain, Director of the Company

1) Date and description of instrument creating the change

1) Agreement of hypothecation of stock and book debts dated 4^th January 2005 and

2) Memorandum of deposit of title deeds to create equitable mortgage on immovable properties of the company dated 4^th January 2005

3) Hypothecation agreement dated 4^th January 2005 for hypothecation of plant and machinery.

Executed by the company in favour of the Vijaya Bank Industrial Finance Branch, Kamdhenu Complex, Ambawadi, Amedabad, A certified copy of agreement of hypothecation and Memorandum is enclosed herewith.

2) Amount secured by the charge/amount owing on the securities of charge

Cash Credit facility of Rs. 18.000 Millions

Mortgage Loan of Rs. 3.800 Millions

Secured Loan of Rs. 14.200 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

1) The whole of the borrower’s present and future stock of raw materials, goods in process or manufacture and all finished and manufactured goods and articles such as raw material, work in process and finished goods comprising of pipes, tubes etc. and book debts, stock-in-trade including all stock of raw materials, work in process, semi finished goods, and finished goods, stores whatsoever ad wheresoever situate and / or in transit.

All the present and future book debts, outstanding monies receivables including moneys, receivables by way of the cash assistance and / or cash incentives under the cash incentive scheme or any others scheme claim including claims by way of refund of customs / excise duty, under the duty draw back scheme or any other scheme, bills, invoices document, contracts. Insurance policies, guarantees, engagements, securities, investment and right.

All the movable machineries and plant f the borrower together with spares, tools and accessories, and other movables, both present and future belonging, to or in possession or under control of borrower whether lying stored and kept whether in possession of borrower or of the bank of any third party whether in India or elsewhere (including all such goods, other movables assets as may be in course of shipment transit or delivery)

2) All the immovable properties and superstructure there on, by way of mortgage, situated at

(A) Plot No. 603,604 GIDC Industrial Estate, Chatral, Taluka Kalol, District Gandhinagar

(B) 1015/2 Mouje Raipur Village, Taluka Kadi, Mehsana Highway

(C) 1013/1 Mouje Raipur Sim, Taluka Kadi, Mehsana, Highway.

4) Gist of the terms and conditions and extent and operation of the charge.

All the goods and assets described in column No. 3 hereinabove are hypothecation and charged to Vijaya Bank of India by way of first charge (subject to any charge of any third party which may have been notified by the borrower an accepted of the bank as having priority over its own charge) as security and discharge by borrower to the bank on demand a sum of Rs. 36.000 Millions together with interest, interest tax, commission, costs, charge and expenses etc. in respect of following financial assistances granted to the borrower.

Nature of Facility	Rs. In Millions
Cash Credit facility of	18.000
Mortgage Loan of	3.800
Secured Loan of	14.200
Total	36.000

5) Name and Address and description of the person entitled to the charge.

Vijaya Bank, Industrial Finance Branch, Kamdhenu Complex, Ambewadi, Ahemedabad, India

6) Date and brief description of instrument modifying the charge

Nil

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Nil

This form is for	Modification of charge
Charge identification number of the modified	80020965
Corporate identity number of the company	U27101GJ2002PLC040863
Name of the company	RATNADEEP METAL AND TUBES LIMITED
Address of the registered office or of the principal place of business in India of the company	402, Sai Prasad Apartment, Near Darpan Academy, Usmanpura, Ahmedabad – 380013, Gujarat, India
Type of charge	Book Debts Movable Property Immovable Property
Number of charge holder(s)	1
Particular of charge holder	Vijaya Bank Industrial Finance Branch, Kamdhenu Complex, Ambawadi, Ahmedabad – 380015, Gujarat, India
Nature of description of the instrument creating or modifying the charge	Supplementary Agreement
Date of instrument Creating the charge	28.12.2006
Amount secured by the charge	In case the amount is in foreign currency, rupee equivalent to be stated Rs. 49.300 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest PLR+2.25%=13.75% Terms of Repayment Additional CC (H) Adhoc limit of Rs. 7.000 million granted by bank for the period of 2 months i.e. from 28.12.2006 to 28.02.2007 Margin Cash Credit (Hypothecation) – on stock 25% and on book debts 50% ILC / FLC –DP / DA basis 15% Extent and Operation of the charge All the securities as described hereinbelow in column No. 14 have been charged and mortgaged to the bank to secure its 1) cash credit (hypothecation) facility of Rs. 29.300 millions (including additional CC (H) Adhoc limit of Rs. 7.000 millions) and 2) ILC / FLC facility of Rs. 20.000 millions making aggregate limit of Rs. 49.300 millions
Short particulars of the property charged	1) Hypothecation of raw material, work-in-process and finished goods comprising of pipes, tubes etc. 2) Hypothecation of book debts, receivables, claims etc. 3) Hypothecation of plant and machinery at Rajpur plant. 4) Factory land / building/ shed at survey No. 1015/2 Village: Rajpur, Taluka Kadi, District: Mehsana.
Date of latest modification prior to the present modification	21.09.2005
Particulars of the present modification	By Virtue of said Modification, charge created earlier on 04.01.2005 and subsequently modified on 21.09.2005 is now extended for the additional CC (H) ADHOC limit of Rs. 7.000 millions aggregate limit of Rs. 49.300 millions.

Fixed Assets :

• Factory Land
• Factory Building

• Plant and Machinery
• Machinery Dies
• Furniture
• Fax Machine
• Motor Car
• Computer
• Air Conditioner
• Mobile Phone
• Motor Cycle

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. 44.68
UK Pound	1	Rs. 72.56
Euro	1	Rs. 63.53

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.