MIRA INFORM REPORT

Report Date :

31.01.2011

IDENTIFICATION DETAILS

Name :	B.M.M. ISPAT LIMITED (w. e. f. 19.01.2005)
Formerly Known As :	B.M.M. IRON ORE LIMITED
Registered Office :	114, Danapur Village, Hobli Marriamanahalli, Hospet Taluk, Bellary District – 583 222, Karnataka
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	15.04.2002
Com. Reg. No.:	08-30365
CIN No.: [Company Identification No.]	U13100KA2002PLC030365
TAN No.: [Tax Deduction & Collection Account No.]	BLRB05074G
PAN No.: [Permanent Account No.]	AACCB3556B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Trader of Iron Ore.

RATING & COMMENTS

MIRA’s Rating :

Ba (55)

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

Maximum Credit Limit :	USD 17537288
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Trade relations are fair. Business is active. General financial position is good. Payments are reported as usually made as per commitments. The company can be considered good for normal 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 DECLINED BY

Name :	Mr. Malik
Designation :	Accounts
Date :	29.01.2011

LOCATIONS

Registered Office/ Factory :	# 114, Danapur Village, Hobli Marriamanahalli, Hospet Taluk, Bellary District – 583222, Karnataka, India.
Tel. No.:	91 8394 244681/ 82/ 83/ 84
Fax No.:	91 8394244680/ 244686
E-Mail :	bmmplant@bmm.in suman@bmm.in finance@bmmispat.co.in ravishankar@bmm.in
Website :	www.bmm.in
Corporate Office :	101, 1^st Floor, Pride Elite, No.10, Museum Road. Bangalore – 560001, Karnataka, India.
Tel. No.:	91-80-41495660/ 1
Fax No.:	91-80-41495663/ 4
E-Mail :	bmmco@bmm.in bmmplant@bmm.in
Website :	www.bmm.in
Branches :	Bharat Mines and Minerals Mine Owners and Exporters, “Singhi Sadan”, Infantry Road, Cantonment, Bellary – 583104, Karnataka, India.
Tel. No.:	91-8392-242982/ 83/ 84
Fax No.:	91-8392-242968/ 243936
E-Mail :	bharatmines@bharatmines.com suman@bmm.in
Website :	www.bharatmines.com www.bmm.in

DIRECTORS

As on 24.09.2009

Name :	Mr. Saibal Kanti Gupta
Designation :	Director
Address :	No. 14, Singapore Gardens Kanakapura Road, Doddakallasandra (PO), Bangalore – 560062, Karnataka, India.
Date of Birth/Age :	18.08.1938
Date of Appointment :	19.03.2008
Name :	Mr. Dinesh Kumar Singhi
Designation :	Managing Director
Address :	No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, India
Date of Birth/Age :	14.01.1971
Date of Appointment :	15.04.2002
Name :	Mrs. Snehalatha Singhi
Designation :	Chairman
Address :	No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, India
Date of Birth/Age :	08.12.1972
Date of Appointment :	15.04.2002
Name :	Mr. Gollapalli Ramaiah
Designation :	Director
Address :	D. No. 1092, Smiore Colony, Near Fire Station, Kudligi Road, Sandur – 583119, Karnataka, India.
Date of Birth/Age :	15.07.1940
Date of Appointment :	30.09.2006
Name :	Mr. Laxmipat Dudheria
Designation :	Director
Address :	No.7-201-1, Shravanipride Basavangudi Market Road, Bangalore – 560004, India
Date of Birth/Age :	24.08.1962
Date of Appointment :	12.07.2004
Name :	Mr. Mrutunjaya Senapati
Designation :	Director
Date of Birth/Age :	333, 1^st Cross Basaveswara, Hospet + 583201
Date of Appointment :	15.05.1947
Date of Ceasing :	19.03.2008
Name :	Mr. Subramanyam Pratagiri
Designation :	Director
Address :	10-28, Patel Nagar, P and T Colony, Dilsukhnagar, Hyderabad – 500060, Andhra Pradesh, India.
Date of Birth/Age :	25.09.1965
Date of Appointment :	26.07.2008
Name :	Mr. Ganapathi Subramaniam
Designation :	Director
Address :	804, 1-12, Aries Block Zodiar Park, Alto Porvorium, Goa
Date of Birth/Age :	10.04.1947
Date of Appointment :	28.08.2009
Name :	Ms. Suman Sajoria
Designation :	Director
Address :	Bajoria Bhawan, Aparna Nagar, Chauliaganj, Orissa
Date of Birth/Age :	04.04.1982
Date of Appointment :	19.03.2008

KEY EXECUTIVES

Name :	Ms. Suman Bajoria
Designation :	Company Secretary
Address :	No. 251, 1^st Floor, 24^th Main, 5^th Phase, J.P. Nagar, Bangalore – 560 078, Karnataka, India.
Date of Birth/Age :	04.04.1982
Date of Appointment :	19.03.2008
E-Mail :	cssumanbajoria@gmail.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 24.09.2009)

Names of Shareholders	Address	No. of Shares
Dinesh Kumar Singhi	“Singhi Sadan”, Infantry Road, Cantonment, Bellary – 583104, Karnataka, India.	47500000
Snehlatha Singhi	“Singhi Sadan”, Infantry Road, Cantonment, Bellary – 583104, Karnataka, India.	68605
Bellary Securities Private Limited	1 Floor, Thippanna Building, Patel Nagar, Bellary - 583101	180000
Binod Kumar Agarwal	No.149, Cotton Street, Kolkata - 700007	50000
Binoy Roy	No.103, Boral Main Road, Kolkata	55000
Chand Ratan Agarwal	No.46, II floor, K H Road, Bangalore- 560027	50000
Claron Merchants Private Limited	No.184, Jamuna Lal Bazar Street, Kolkata - 700001	100000
Hari Prasad Agarwal	No.46, II floor, K H Road, Bangalore- 560027	50000
Meltex Goods and Services Private Limited	No.219, Old China Bazar Street, Kolkata	150000
Monita Agarwal	No.149, Cotton Street, Kolkata - 700007	50000
Narayan Ram	No.149, Cotton Street, Kolkata - 700007	50000
Pavan Kumar Kothari	No.149, Cotton Street, Kolkata - 700007	50000
Radha Agarwal	No.4/3, A M Lane, Journalist Colony, Bangalore - 560002	25000
Rakesh Jain, HUF	No.59/2, Akkipet, Bangalore - 560053	25000
Sanjay Kumar Agarwal	No.50, M D Road, Kolkata - 700006	50000
Santosh P Agarwal	Fort, Main Road, Bellary - 583101	50000
Seema Kothari	No.8 Priyadarshni Extn, Saraswathi Nagar, Vijayanagar, Bangalore – 560040	60000
Shiva Bhagwan Bhebrajka, HUF	No.31/3, 13^th Main Road, Vijayanagar, Bangalore – 560040	50000
Suman Devi Rakecha	No.31/3, 13^th Main Road, Vijayanagar, Bangalore – 560040	60000
Suman Latha Agarwal	No.149, Cotton Street, Kolkata - 700007	50000
Sumnesh Devi Rakecha	No.31/3, 13^th Main Road, Vijayanagar, Bangalore – 560040	50000
Sunitha Ketan	No.149, Cotton Street, Kolkata - 700007	50000
Venus Dealings Private Limited	No.184, Jamuna Lal Bazar Street, Kolkata - 700001	50000
Vikas Baid	No.8 Priyadarshni Extn, Saraswathi Nagar, Vijayanagar, Bangalore – 560040	60000
Vivek Roy	No.103, Boral Main Road, Kolkata	45000
Times Resource Limited	No.149, Cotton Street, Kolkata - 700007	1085000
Singhi Finlease Private Limited	“Singhi Sadan”, Infantry Road, Cantonment, Bellary – 583104, Karnataka, India.	15395395
Snehfin Investments Private Limited	Plot No.8, Grihalakshmi Apartments, No.90, Bassavangudi, South end Circle, Bangalore	34541000
Total		100000000

(As on 24.09.2009)

Category	Percentage
Bodies corporate	51.50
Directors or relatives of directors	45.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Iron Ore.

Products ;

Products	Item Code No.
Iron Ore	26011130

GENERAL INFORMATION

No. of Employees :

900 (Approximately)

Bankers :

State Bank of India, Collage Road Branch, Pawaj Plaza, Collage Road, Hospet – 583 201, Karnataka, India.

Facilities :

Secured Loan	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Term Loan
Punjab National Bank	382.697	449.888
Canara Bank	219.223	260.120
State Bank of Bikaner and Jaipur	267.671	314.886
State Bank of India, Hospet	1067.104	905.589
Punjab National Bank Car Loan	3.006	4.684
Working Capital Loan
Punjab National Bank	44.250	--
State Bank of India, Hospet	490.189	--
Total	2474.140	1935.167
Unsecured Loan	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Temporary Over Draft from Punjab National Bank	0.090	--
Shareholders / Directors	1082.828	805.381
Total	1082.918	805.381

Banking Relations :	--
Auditors :
Name :	Ostawal and Jain Chartered Accountants
Address :	No. 34, Keshava Nivas, 3rd Floor, 1st Main, Gandhinagar, 1st Main, Gandhinagar, Bangalore - 560009
Subsidiaries :	BMM Overseas Private Limited BMM Global Resources Limited BMM Brazil Mining and Metals Corporation

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
10,00,00,000	Equity Shares	Rs.10/- Each	Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,00,00,000	Equity Shares	Rs.10/- Each	Rs.1000.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		1000.000	500.200	500.200
2] Share Application Money		50.000	499.800	700.020
3] Reserves & Surplus		3334.322	2336.508	353.991
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4384.322	3336.508	1554.211
LOAN FUNDS
1] Secured Loans		2474.140	1935.166	1103.405
2] Unsecured Loans		1082.918	805.381	437.460
TOTAL BORROWING		3557.058	2740.547	1540.865
DEFERRED TAX LIABILITIES		227.202	45.582	11.185
TOTAL		8168.581	6122.637	3106.261
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6107.579	1737.134	889.443
Capital work-in-progress		762.996	2617.675	2031.370
INVESTMENT		208.048	585.760	30.260
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	941.334	135.818	66.162
	Sundry Debtors	250.078	359.752	41.004
	Cash & Bank Balances	154.678	16.767	141.385
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	908.210	928.703	149.720
Total Current Assets		2254.300	1441.040	398.271
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	957.381	182.581	242.421
	Current Liabilities	213.543	60.838	3.485
	Provisions	12.390	15.553	0.722
Total Current Liabilities		1183.314	258.972	246.628
Net Current Assets		1070.986	1182.068	151.643
MISCELLANEOUS EXPENSES		18.973	0.000	3.545
TOTAL		8168.582	6122.637	3106.261

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Sale	3582.694	1209.217	321.087
		Other Income	927.978	1936.325	0.000
		TOTAL (A)	4510.672	3145.542	321.087
Less	EXPENSES
		Cost of Raw Material Consumed	2244.002	792.636	217.474
		Manufacturing Expenses	466.542	37.148	18.015
		Administrative Expenses	97.421	42.916	0.000
		Employees remuneration and Benefits	113.306	34.704	2.306
		Selling and Distribution Expenses	330.047	104.253	42.038
		Amortisation of Intangible Assets	4.720	3.683	0.000
		TOTAL (B)	3256.038	1015.340	279.833
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1254.634	2130.202	41.254
Less	FINANCIAL EXPENSES (D)		153.838	66.831	2.558
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1100.796	2063.371	38.696
Less/ Add	DEPRECIATION/ AMORTISATION (F)		174.987	53.217	5.857
	PROFIT/LOSS FOR THE YEAR BEFORE TAXATION		925.809	2010.154	32.839
Less:	PRIOR PERIOD ADJUSTMENT		6.944	0.453	0.000
	PROFIT BEFORE TAX (E-F) (G)		918.865	2009.701	32.839
Less	TAX (I)		128.115	44.679	10.521
	PROFIT AFTER TAX (G-I) (J)		790.750	1965.022	22.318
	Earnings Per Share (Rs.)		15.64	39.28	--

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	17.53	62.47	6.95
Net Profit Margin (PBT/Sales)	(%)	25.64	166.19	10.23
Return on Total Assets (PBT/Total Assets}	(%)	10.98	63.23	0.98
Return on Investment (ROI) (PBT/Networth)		0.21	0.60	0.02
Debt Equity Ratio (Total Liability/Networth)		1.08	0.90	1.15
Current Ratio (Current Asset/Current Liability)		1.91	5.56	1.61

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors

Particulars	31.03.2009 (Rs. In Millions)	31.03.2008 (Rs. In Millions)	31.03.2007 (Rs. In Millions)
Sundry Creditors
Other Dues	777.933	153.110	--
Capital Creditors	179.448	29.471	--
Sundry Creditors	-	-	242.421

BUSINESS OPERATIONS AND FINANCIAL PERFORMANCE

During the year, the Company recorded a growth of 197% in the gross sales as compared to last year. The growth was recorded mainly on account of inclusion of turnover from the HKT division which was merged in the Company during the year vides order of Honorable High Court of Karnataka dated 9th January, 2009. The company’s profit after tax for the year 2008-09 was Rs.790.700 millions including the share of profit from M/s Bharat Mines and Minerals.

The year under review was a challenging one in many respects. On one hand, the impact of the global slowdown was faced by the steel and mineral industry in general and the Company was no exception. In addition, certain technical hurdles were encountered in the operations of the pellet plant and the power plant. The problems faced by the pellet plant led to decrease in efficiency, production and higher operating cost. The sudden shutdown of the power plant, added further costs as power had to be imported from the grid for running other operational units. The tough market conditions resulted in downward pricing of the Company’s products and stocks which further impacted profitability.

The Company’s share of profit from M/s Bharat Mines and Minerals also dropped by 53% due to fall in prices of iron ore prices worldwide. Even though the volume of turnover has increased, the realization from sales was reduced by 50%.

Despite of all the difficulties and tough operating environment, the Company posted a profitable year of operations with a profit after tax of Rs.790.700 millions.

EXPANSION AND FUTURE BUSINESS PLAN

In spite of a difficult year for reasons discussed earlier, the Company’s endeavor to retain its commitment towards its expansion project is continuing. During the period, the Company made major capital expenditure of Rs.2260.000 millions on its expansion project, even though the financial closure for the same was achieved in the month of August, 2009. The delay in receiving financial sanctions from banks for the expansion project was due to the tight credit conditions prevailing in the last quarter of the year under review. However, the Company continued its determined efforts to keep the expansion project on stream and as per schedule. Through its internal accruals, the Company has completed its sponge iron plant (2 kiln of 500 TPD each) and water pipeline project. The major capital expenditure on sponge iron plant has been capitalized during the year and its 1st kiln started trial production during the year and the 2nd kiln started trial production in the month of July, 2009.

CORPORATE RESTRUCTING

The Honorable High Court of Karnataka sanctioned merger of HKT Mining Private Limited with The Company vide its order dated 9th January, 2009 with appointed date as 1st April, 2007. This merger has added manufacturing division to The Company consisting of a sponge iron plant (60,000 TPA), an induction furnace (1, 00,000 TPA) and a rolling mill (90,000 TPA).

NOTE:

The registered office of the company has been shifted from “Singhi Sadan”, Infantry Road, Cantonment, Bellary – 583104, Karnataka, India. To the present address w.e.f. 04.09.2006.

FORM 8

This form is for	Creation of charge
Corporate identity number of the company	U13100KA2002PLC030365
Name of the company	B.M.M. ISPAT LIMITED
Address of the registered office or of the principal place of business in India of the company	# 114, Danapur Village, Hobli Marriamanahalli, Hospet Taluk, Bellary District – 583 222, Karnataka, India.
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Punjab National Bank Large Corporate Branch, Centenary Building, No.28, M G Road, Bangalore – 560001, Karnataka, India. tr_jairam@vsnl.net
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation
Date of instrument Creating the charge	04.10.2008
Amount secured by the charge	Rs.1000.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per Bank Norms Terms of Repayment: Tenor: Sight LC’s Validity Maximum – 18 Months Margin: 17.5% Extent and Operation of the charge: The charge shall operate to the extent of Rs.1000.000 Millions plus interest, commission, costs, expenses and other charges thereon.
Short particulars of the property charged	Hypothecation by way of first pari passu charge on all present and future raw materials, stock in process, packaging materials finished goods including goods/ assets represented by documents drown under letter of credit and machineries imported/ Purchased under LC Stored/ Installed at No.114, Danapur Village, Hobli Marriamanahalli, Hospet Taluk, Bellary District, Karnataka or wherever else.

Corporate identity number of the company	U13100KA2002PLC030365
Name of the company	B.M.M. ISPAT LIMITED
Address of the registered office or of the principal place of business in India of the company	# 114, Danapur Village, Hobli Marriamanahalli Hospet Taluq, Bellary District – 583222, Karnataka, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Immovable Property Floating Charge
Particular of charge holder	STATE BANK OF INDIA
Nature of instrument creating charge	a. Deed Of Hypothecation Dated 3rd August, 2009 B. Agreement Of Mortgage Dated 3rd August,2009 C. Letter Of Authority To Lender's Agent & Securitee Trustee
Date of instrument Creating the charge	03/08/2009
Amount secured by the charge	Rs.4600.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest At Sbar, Minimum 12.25% Pa With A Reset Of Spread At Cod And Every 2 Years Thereafter. The Pricing Would Not Lower Than Any Other Lender To The Proposed Project During The Tenor Of The Loan Terms of Repayment Repayable In 20 Quarterly Instalments Commencing From July, 2011. Margin 43.85% of Promoters's Contribution Extent and Operation of the charge First charge to the Security Agent for the benefit of the Lenders, in all and singular, the whole of the Borrowers movable & immovable properties &in relation to the project including movable plant and machinery electronics spares, machinery spares, tools, meters, motor vehicles, furniture, fixtures, accessories and all other equipment pertaining to project as detailed in Schedule II to the Deed of Hypothecation. whether installed or not situated at the Borrowers offices
Short particulars of the property charged	First Pari Passu Charge By Way Of Mortgage Of The Entire Land Situated At 114 Danapur Village, Hospet-583222, Bellary District, Karnataka First Charge On The Entire Plant and Machinery And Other Movable Fixed Assets Of The Company On Pari Passu Basis Charge On The Entire Cash Flows Of The Company Including The Share Of Profit From Bmm By Way Of Assignment First Charge On All Interest, Title, Interest, Benefits, Claims And Demands In The Project Personal Guarantee Of Mr. Dinesh Kumar Singhi and Snehalata Singhi, Promoter Directors Of The Company

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.45.74
UK Pound	1	Rs.72.73
Euro	1	Rs.62.73

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

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.