MIRA INFORM REPORT

Report Date :

25.01.2011

IDENTIFICATION DETAILS

Name :	MAHAMAYA STEEL INDUSTRIES LIMITED
Registered Office :	B-8 and 9, Sarora Industrial Area, Sarora, Raipur-492001, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.05.1988
Com. Reg. No.:	10-004607
CIN No.: [Company Identification No.]	L27107CT1988PLC004607
TAN No.: [Tax Deduction & Collection Account No.]	JBPR00600F
PAN No.: [Permanent Account No.]	AABCR0695Q
Legal Form :	A Public Limited Liability Company. The company’s Shares are listed on Stock exchange.
Line of Business :	Importer and Exporter of Metal and Metal Products and Iron or Steel Products.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 4700000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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

LOCATIONS

Registered Office :	B-8 and 9, Sarora Industrial Area, Sarora, Raipur-492001, Chhattisgarh, India
Tel. No.:	91-771-4006666 (30 Lines)/ 2326601/ 02/ 03/ 04
Fax No.:	91-771-4006611/ 2324401
E-Mail :	jaswinder_kh@yahoo.com mahamaya@rajeshtrips.com
Website :	http://www.mahamayasteelindustries.com

DIRECTORS

As on 31.03.2010

Name :	Mr. Ramanand Agarwal
Designation :	Chairman and Managing Director
Name :	Mr. Rajesh Agrawal
Designation :	Executive Director
Name :	Mrs. Gulab Bai Agrawal
Designation :	Executive Director
Name :	Mr. D K Porwal
Designation :	Independent Director
Name :	Mr. Neeraj Kansal
Designation :	Independent Director
Name :	Mr. Gitesh Agrawal
Designation :	Independent Director
Name :	Mr. Manish Agrawal
Designation :	Independent Director
Name :	Mr. Atul Garg
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Prahallad Sawadia
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6,777,823	49.95
Bodies Corporate	1,652,047	12.17
Sub Total	8,429,870	62.12
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8,429,870	62.12
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	100	-
Sub Total	100	-
(2) Non-Institutions
Bodies Corporate	3,793,000	27.95
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1,270,330	9.36
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	77,100	0.57
Sub Total	5,140,430	37.88
Total Public shareholding (B)	5,140,530	37.88
Total (A)+(B)	13,570,400	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	13,570,400	100.00

BUSINESS DETAILS

Line of Business :

Importer and Exporter of Metal and Metal Products and Iron or Steel Products.

Products :

Product Description	ITC Code
Steel Structural and Strips	72081201
Blooms and Billets	72071190

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Steel Structural	M.T./ PA	355000	255000	178591.455
Steel Melting Shop	M.T./ PA	200000	148500	--
Gas Plant	Cubic Meter	900000	900000	--
Power	M.W	50	--	--
Pig Iron	M.T/ P.A	180000	--	--
Oxygen Gas Cylinders	Cubic Meter	--	--	112730 nos or 789110 Cubic Meter
Blooms and Billets	--	--	--	104067.485

GENERAL INFORMATION

Bankers :

• UCO Bank
• Mid Corporate Branch, Raipur (C.G.)
• Andhra Bank, Fafadih Chowk, Raipur (C.G.)

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Term Loan from Bank	230.298	304.089
Working Capital Facility from banks	256.543	253.577
LC Facility from Bank	47.419	0.000
Hire Purchase Finance From ICICI Bank	0.000	0.291
Total	534.260	557.957
Note: Secured by way of First pari passu charge on current and fixed assets of the company and personal guarantee of some of directors. Secured by way of hypothecation of vehicles
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Inter Corporate Loans	0.000	176.500
Total	0.000	176.500

Banking Relations :	--
Statutory Auditors :
Name :	Batra Deepak and Associates Chartered Accountant
Address :	17/901, Guru Gobind Nagar, Opposite Dr. Verma’s Clinic, Raipur-492001, Chattisgarh, India
Associates :	Raipur Ferro Alloys Limited (Under merger with another company) Rajesh Re-Rollers Limited (Under merger with another company) Devi Iron and Power Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions
3000000	Preference Shares	Rs. 10/- each	Rs. 30.000 Millions
32000000	8% Redeemable Non Convertible non cumulative Preference Shares	Rs. 10/- each	Rs. 320.000 Millions
	Total		Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13570400	Equity Shares	Rs. 10/- each	Rs. 135.704 Millions
1972300	Optionally Convertible Redeemable Preferences Shares	Rs. 10/- each	Rs. 19.723 Millions
32000000	8% Redeemable Non Convertible Non Cumulative Preference Shares	Rs. 10/- each	Rs. 320.000 Millions
	Total		Rs. 475.427 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		475.427	385.427	165.400
2] Share Application Money		164.500	23.000	0.000
3] Reserves & Surplus		541.489	363.759	298.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1181.416	772.186	463.700
LOAN FUNDS
1] Secured Loans		534.260	557.957	233.600
2] Unsecured Loans		0.000	176.500	404.500
TOTAL BORROWING		534.260	734.457	638.100
DEFERRED TAX LIABILITIES		46.518	45.805	0.300
TOTAL		1762.194	1552.448	1102.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		840.297	858.837	296.600
Capital work-in-progress		33.116	8.419	329.600
INVESTMENT		23.001	23.001	3.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	575.887	435.575	302.800
	Sundry Debtors	393.841	223.460	226.500
	Cash & Bank Balances	35.446	42.403	60.400
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	166.429	150.462	218.200
Total Current Assets		1171.603	851.900	807.900
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	108.980	82.457	273.900
	Other Current Liabilities	78.273	36.904
	Provisions	118.570	70.348	61.100
Total Current Liabilities		305.823	189.709	335.000
Net Current Assets		865.780	662.191	472.900
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1762.194	1552.448	1102.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3860.416	3651.970	3245.400
		Other Income	10.581	8.887	2.100
		TOTAL (A)	3870.997	3660.857	3247.500
Less	EXPENSES
		Consumption of Raw Material	2634.106	2900.551
		Trading Purchase (Pi Iron)	0.000	0.615
		Manufacturing Expenses	856.718	554.887
		Payments to and provision for employees	27.028	25.738	3074.700
		Selling, Administrative and other expenses	36.274	30.220
		Increase/ Decrease in Stocks	36.762	[74.096]
		Prior Period Adjustment	[0.473]	0.957
		TOTAL (B)	3590.415	3438.872	3074.700
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		280.582	222.985	172.800
Less	FINANCIAL EXPENSES (D)		60.446	56.234	21.300
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		220.136	166.751	151.500
Less/ Add	DEPRECIATION/ AMORTISATION (F)		86.520	32.826	19.800
	PROFIT BEFORE TAX (E-F) (G)		133.616	132.925	131.700
Less	TAX (I)		25.017	59.512	39.500
	PROFIT AFTER TAX (G-I) (J)		108.599	73.413	92.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		212.043	191.374	132.800
Less	APPROPRIATIONS
		Transfer to General Reserve	21.720	14.683
		Transfer to Redemption reserve	36.579	30.123
		Proposed Dividend on Equity Shares	6.785	6.785	33.600
		Proposed Dividend on Preference Shares	19.600	0.000
		Tax on Dividend	4.484	1.153
	BALANCE CARRIED TO THE B/S		231.474	212.043	191.400
	Earnings Per Share (Rs.)		6.31	5.41	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010
Type	1^st Quarter	2^nd Quarter
Net Sales	1392.440	1236.100
Total Expenditure	1327.710	1171.560
PBIDT (Excl OI)	64.730	64.540
Other Income	4.310	3.083
Operating Profit	69.040	67.620
Interest	16.350	11.113
Exceptional Items	0.000	0.000
PBDT	52.690	56.510
Depreciation	18.990	19.550
Profit Before Tax	33.710	36.960
Tax	5.610	12.390
Provisions and contingencies	0.000	0.000
Profit After Tax	28.100	24.570
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	28.100	24.570

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.81	2.01	2.84
Net Profit Margin (PBT/Sales)	(%)	3.46	3.64	4.06
Return on Total Assets (PBT/Total Assets}	(%)	6.64	7.77	11.92
Return on Investment (ROI) (PBT/Networth)		0.11	0.04	0.28
Debt Equity Ratio (Total Liability/Networth)		0.71	1.20	2.10
Current Ratio (Current Asset/Current Liability)		3.83	4.49	2.41

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE

During the year the Steel Industry of India emerged as the 5th Largest Producer of the steel in the World. However, the industry faced higher volatility in price and there was a sharp reduction in sale prices across the entire Steel Industry. The company started its second steel structural mill in last year. As a result of increase in the installed capacity the company could get more clients. The production of steel structural including conversion production increase from the level of 1.30 lac MT to 1.79 lacs MT. The production of Blooms

and Billets increased from 58201 MT to 104067 MT effective capacity utilization has also increased. The aggregate sales volume of steel structural was increased from the level of 92165 MT last year to 132206 MT in the current year. The conversion sales increase from 30688 MT to 40754 MT. However, the impact of increase in production and sales in quantity terms is not reflected in absolute terms because of reduction in sale price. The gross turnover of the Company stood at Rs.4255.000 Millions as against Rs.4175.200 Millions in last financial year.

MANAGEMENT DISCUSSION AND ANALYSIS:

Global Economy:

The year 2009 witnessed the turbulence pain and panic from the unprecedented Economic and Financial Crisis adversely impacting the Global Economic growth. As per the IMF'sApril-10 estimates, Global Economic growth in 2009 is estimated to contract by approx.0.6%. China as well as India, cushioned the intensity of Global meltdown during 2009 as demonstrated hereunder.

Global Economy as per the IMF estimates of April 10 contracted by approx. US$3.3trillion while Chinese and Indian Economy expanded by 8.7% and 7.2% respectively.

Real Global Trade decelerated by 10.7% with Merchandize Exports down in value-terms byapprox. 23% to $ 12,147 Billion and Services by 13% to $3,312 Billion while China graduated from the 2nd rank to the highest global merchandize exporter at US$ 1,201Billion in 2009.

Global automobile production contracted by approx. 15% to 60 Million units while China qualified as the World's largest Producer at 13.6 Million units with highest ever domestic sale of Passenger cars of 10.3 Million units up by 52.9%. Similarly, Indian Passenger Vehicle Production and domestic sales, rose by 28% and 26% respectively in FY 2009-10.

The timely, cumulative stimulated economic efforts of all Governments significantlycurtailed the depth, span and intensity of the economic catastrophic spread-although thepossibility of few noted and sovereign defaults continue to haunt the world in the nearterm.

The IMF estimates suggest a positive economic rebound in 2010 with the Global economyregistering a 4.2% growth. Advanced economies and the emerging world growing by 2.3% and6.3% respectively. Further the WTO projects world trade to expand by 9.5% with theAdvanced world growing by 7.5% and the Emerging world by 11%.

Indian Economy:

India registered a strong come back in 2009-10 displaying its ability to withstandextreme external adversities, which destabilized major economics. India recorded GDPgrowth of 7.2% in 2009-10 against 6.7% in 2008-09. This was largely due to the timelyeconomic stimulus fueling investment and consumption. The key diverse ti India's economicgrowth during the year 2009-10 were:

Strong IIP Growth 10.4%

Core Infrastructure Industry Growth 5.5%

Automoblile Production 26%

Capitalizing on the high degree of domestic dependency, low credit leverage and debtex posure and the Government's thrust on Infrastructure creation are expected to accelerate the Indian economy in 2010-11 and beyond. Preliminary guidance by the Central Government for the economic growth in 2010-11 is estimated at 8.2% and 9% in 2011-12

Global Steel Industry

Steel being at the core of economic progress witnessed and unprecedented down turn in2009. Advanced economics bucketed under pressure of large inventories coupled with stand steel demand, the rest of the world (excluding China and India ) suffocated under low domestic demand, their high degree of export dependency on the advanced world added totheir woes. This reconfirmed the concept of increasing global integration and global trade coupling (except China and India)

The Global economic and financial crisis impacted steel consumption consumption declined 6.7% form 1202 mn tones in 2008 to 1,121 mn tones in 2009. Of the consumption,50% was flats (largely consumption lead demand) and 50% was long products (largely infrastructure driven demand). World consumption of finished steel excluding BRIC Country's registered a decline of 26.8% in 2009. Steel consumption of BRIC Countries grew 18%largely dur to the massive consumption of steel from China to satiate stimulated domestic demand. Production and Consumption Production and Consumption

Indian Steel Industry:

The steel industry in India has been moving from strength to strength. India has emerged as the fifth largest producer of steel in the world and is likely to become the second largest producer of crude steel by 2015-16.

Recently, Steel Minister, Mr Virbhadra Singh said that India will become the world's second-largest steel producer by 2012, more than doubling its capacity to 124 million tonnes (MT) as part of the push being given to assist overall infrastructure development.

The National Steel Policy 2005 had projected an annual steel consumption growth of 7per cent based on GDP growth rate of 7-7.5 per cent and production of 110 MT of crude steel by 2019-2020. Nonetheless, with the current rate of ongoing green field and brown field projects, the Ministry of Steel has projected that these growth trends are likely to be exceeded and it is envisaged that in the next five years demand will grow at higher annual average growth rate of over 10 per cent as compared to around 7 per cent growth achieved between 1991-92 and 2005-06.

Moreover, the crude steel production capacity in the country by 2011-12 will be nearly124 MT, 222 memorandum of understanding (MoUs) have been signed with various states for planned capacity of around 276 MT. Major investment plans are in Orissa, Jharkhand, Chhattisgarh, West Bengal, Karnataka, Gujarat and Maharashtra, domestic crude steel production grew at a compounded annual growth rate of 8.6 per cent during 2004-05 and2008-09. India's steel consumption rose 8 per cent in the year ended March 2010, over the same period a year ago on account of improved demand from sectors like automobile, infrastructure and housing. The country's steel consumption increased to 56.3 MT in the 12months to March 2010 from 52.3 MT in the previous year.

Company's Operation:

Last year the company had successfully completed the first phase of expansion by adding 150000 MT PA and the total capacity of heavy structure mill. Due to which this year the Company has introduced new product lines like Angles, H Beam etc. and they are now going for second phase of expansion for which the MoU had already signed with the Government of Chhattisgarh for setting up a 50 MW Power Plant. The Company has already acquired land admeasuring 100 acre. The process of obtaining clearance has started. The operations of the Company would be more cost effective once the power is available from own power plant.

A new Concaster machine is also going to be implemented with a installed capacity of100000 MT PA, and is expected to complete by March 2011. With the existing set up the Company is producing blooms and billets of 160mm to 320mm but with the help of the new concaster machine it will be able to produce small sizes blooms and billets of size l 00mmto 250 mm,

Apart from existing customers like Steel Authority of India Limited, Bharat Heavy Electricals Limited, Essar Construction (India) Limited, Hazira Plates Limited, Stewards and Llyods Limited,Mundra Port and SEZ Limited, Adani Power Limited etc the Company could add new customers like Baid Steel Private Limited, Brahmani Industries Limited, Sunil Hitech engineers Limited, Tulsian Steel Industries Limited etc. Association with these new customers along with the existing customers will enable the Company to generate more business and revenue.

Business Operations:

The Company has achieved the production of 1.79 lacs tonne of steel structural and 1.04lac tones of Billets. The production of Steel Structural increased by 36.60% as compared to last year This is due to new expansion lines, team work, better utilization of resources and effective cost control which has also resulted in to 25.64% growth in EBIDTA.

Opportunities and threats:

The Indian steel Industry witnessed an upward trend during the previous year. It has huge scopes in the future with massive scale of infrastructural development happening all across the country. This upward trend is expected to be continued on account of favourable conditions like competitive prices, increase in consumption of steel owing to up coming infrastructure and Greenfield projects, highly skilled and low cost workforce etc. The major threats for the industry is higher cost of inputs and lower realizations which may put pressure on the profitability and operating margins of the international as well as domestic steel companies. In addition to this, major obstacles are current economic turmoil, technological change, inadequate availability of suitable quality of raw material, increasing prices of raw materials, high cost of energy/capital etc.

Outlook:

The outlook for the industry looks reasonable, since India has good iron ore deposits, skilled manpower and growing demand for steel. The Indian steel industry has made a rapid progress on strong fundamentals over the recent few years. The industry is getting all essential ingredients required for dynamic growth. The government is backing the industry through favorable industrial reforms, while the private sector is supporting it with investments worth billions of Rupees. Even in the tough times of economic slowdown, the industry succeeded to sustain its positive growth momentum on the strong fundamentals of domestic demand from construction, automobile and infrastructure sectors With an impressive track record, the country has become a reputed name in the world steel industry. Global steel giants from all over the world have shown interest in the industry because of its phenomenal performance. The Company continues to compete and participate in the tenders of various Public and Private Sector giants and is hopeful of bagging considerable fresh orders for engineering products.

Contingent Liabilities:

Particulars	31.03.2010 Rs. in Millions
Outstanding Bank Guarantee	35.000
Sales tax demand under appeal	3.827
Central Sales Tax demand under appeal Excise duty liabilities under appeal	1.007 3.421
Estimated amount of contracts remaining to be executed on capital account (net of advances)	30.000
Entry tax not pad on account of exemption from Government of Chhattisgarh. However certificate of exemption yet not received	5.746
Corporate guarantee given for a loan of a body corporate	302.500

Fixed Assets:

· Leasehold Land and Site Development

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

UNAUDITED FINANCIAL RESULTS

(Rs.in Millions)

Particulars	Quarter Ended 30.09.2010	Year to Date Ended on 30.09.2010
1 a. Net Sales/ Income form Operations	1236.101	2628.543
b. Other operating income	0.000	0.000
	1236.101	2628.543
2. Expenditures
a. increase/ decrease in stock in trade	[24.451]	[18.682]
b. Consumption of Raw Materials	943.620	1965.935
c. Purchase of Traded Goods	0.000	0.000
d. Employee cost	7.883	14.168
e. Depreciation	19.549	38.537
f. Other Expenditure	244.506	537.836
g. Total	1191.107	2537.794
3. Profit from Operational before other income, interest and exceptional item (1-2)	44.994	90.749
4. Other Income	3.076	7.382
5. Profit before interest and exceptional item (3+4)	48.070	98.131
6. Interest	11.113	27.464
7. Profit after Interest but before Exceptional Item (5-6)	36.957	70.667
8. Exceptional Item	0.0000	0.000
9. Profit/ Loss from ordinary activities before tax (7+8)	36.957	70.667
10. Tax Expenses	12.387	18.000
11. Net Profit/ Loss from ordinary Activities after tax (9-10)	24.570	52.667
12. Extra Ordinary Items (Net of Tax Expenses)	0.000	0.000
13. Net Profit/ Loss fro the period	24.570	52.667
14. Paid up Equity Shares Capital	135.704	135.704
15. Reserve excluding revaluation reserve (as per balance sheet of previous accounting year.)	--	541.489
16. a) Basic and Diluted EPS before Extra Ordinary Items	1.81	3.88
b) Basic and Diluted EPS after Extra Ordinary Items	1.81	3.88
17. Public Shareholding
- No. of Shares	5140530	5140530
- Percentage of Shareholding	37.88	37.88
18. Promoters and Promoter Group Shareholding
a) Pledged/ Encumbered	0	0
b) Non Encumbered
- No. of Shares	8429870	8429870
- Percentage of Shareholding (As a % of the Total Shareholding of Promoter Group)	100.00	100.00
- Percentage of Shareholding (As a % of the Total Shareholding of Promoter Group)	62.12	62.12

Notes:

1. The above results were taken on record by Board of Directors of their meeting held on 12.11.2010.
2. The figures of previous periods have been regrouped wherever necessary.

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	Indian Rupees
US Dollar	1	Rs.45.58
UK Pound	1	Rs.72.79
Euro	1	Rs.62.01

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	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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	-

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