MIRA INFORM REPORT

Report Date :

25.11.2011

IDENTIFICATION DETAILS

Name :	TIMES FERRO ALLOYS LIMITED
Registered Office :	CE-61, Sector I, Salt Lake City, Kolkata-700064, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.06.2004
Com. Reg. No.:	21-098746
Capital Investment / Paid-up Capital :	Rs.31.161 Millions
CIN No.: [Company Identification No.]	U27109WB2004PLC098746
TAN No.: [Tax Deduction & Collection Account No.]	CALT03057F
PAN No.: [Permanent Account No.]	AACCT0474A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Ferro Silicon, Silico Manganese and Ferro Manganese.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 530000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be under pressure. However trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	CE-61, Sector I, Salt Lake City, Kolkata-700064, West Bengal, India
Tel. No.:	91-33-40001281/23211881/23376468
Fax No.:	91-33-23211883
E-Mail :	timespac.ltd@gmail.com

DIRECTORS

As on 30.09.2010

Name :

Mr. Santosh Agarwal

Designation :

Director

Address :

BE-223, Pushpa Villa, Sector 1, Salt Lake City, Kolkata-700064, West Bengal, India

Date of Appointment :

23.06.2004

Name :

Shwet Agrwal

Designation :

Director

Address :

BE-223, Pushpa Villa, Sector 1, Salt Lake City, Kolkata-700064, West Bengal, India

Date of Appointment :

23.06.2004

Din No.:

00124266

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U25199WB1998PLC086311	BIHAR RAFFIA INDUSTRIES LIMITED	Director	13-01-98	13-01-98	-	Active	NO
2	U25209ML2001PTC006589	MEGHA PLAST PRIVATE LIMITED	Director	06-08-01	06-08-01	07-12-09	Active	NO
3	U27109WB2004PLC098746	TIMES FERRO ALLOYS LIMITED	Director	23-06-04	23-06-04	-	Active	NO
4	U24139AS2005PTC007734	MEGHA GRANULES PRIVATE LIMITED	Director	05-05-05	05-05-05	-	Active	NO
5	U70101WB1999PTC089917	JAI BRIJMOHAN NIKETAN PRIVATE LIMITED	Director	10-03-06	10-03-06	05-10-09	Active	NO
6	U70200WB1999PTC089896	JAI TRIDEV VIHAR PRIVATE LIMITED	Director	10-03-06	10-03-06	05-10-09	Active	NO
7	U70200WB1999PTC089894	JAI GOKUL TOWERS PRIVATE LIMITED	Director	10-03-06	10-03-06	05-10-09	Active	NO
8	U70200WB1999PTC089889	JAI VAIBHAV NIKETAN PRIVATE LIMITED	Director	10-03-06	10-03-06	05-10-09	Active	NO
9	U70101WB1997PTC084181	A. M. SOFTWARE SOLUTIONS PRIVATE LIMITED	Director	22-04-06	22-04-06	-	Active	NO
10	U70101WB1999PTC089918	JAI BADRINATH NIKETAN PRIVATE LIMITED	Director	08-08-06	08-08-06	05-10-09	Active	NO
11	U70101WB1999PTC089911	JAI RAGHUVIR ENCLAVE PRIVATE LIMITED	Director	08-08-06	08-08-06	05-10-09	Active	NO
12	U45207WB1999PLC090826	TIMESPAC INDIA LIMITED	Director	22-12-06	22-12-06	-	Active	NO
13	U26959ML2007PLC008288	TIMES PORTLAND CEMENT LIMITED	Director	12-11-07	12-11-07	-	Active	NO
14	U26940ML2008PLC008306	JPN RYMBAI CEMENTS LIMITED	Director	07-02-08	07-02-08	-	Active	NO
15	U27101ML2008PLC008311	TIMES ALLOYS AND POWER (MEGHALAYA) LIMITED	Director	25-03-08	25-03-08	-	Active	NO
16	U27103ML2002PLC006975	PURBANCHAL ALLOYS LIMITED	Director	28-06-08	28-06-08	16-04-10	Active	NO
17	U74999WB2004PTC099914	SATABADI JUTE PRIVATE LIMITED	Director	14-04-11	14-04-11	-	Active	NO
18	U51432WB2004PTC099867	WELLBUILD CEMENT PRIVATE LIMITED	Director	14-04-11	14-04-11	-	Active	NO

Name :

Mr. Trilok Chand Agarwal

Designation :

Director

Address :

BE-223, Pushpa Villa, Sector 1, Salt Lake City, Kolkata-700064, West Bengal, India

Date of Appointment :

23.06.2011

Din No.:

00123481

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U00389WB1985PLC132787	JAMSHEDPUR WELPACK POLY INDUSTRIES LIMITED	Director	09-08-85	09-08-85	-	Active	NO
2	U28991WB1993PLC059151	TIS FAB LIMITED	Director	16-06-93	16-06-93	-	Active	YES
3	U25199WB1998PLC086311	BIHAR RAFFIA INDUSTRIES LIMITED	Director	13-01-98	13-01-98	-	Active	NO
4	U45207WB1999PLC090826	TIMESPAC INDIA LIMITED	Director	24-12-99	24-12-99	05-06-07	Active	NO
5	U25209ML2001PTC006589	MEGHA PLAST PRIVATE LIMITED	Director	06-08-01	06-08-01	-	Active	NO
6	U51109WB1996PTC079187	HIMTECH SALES PRIVATE LIMITED	Director	24-12-01	24-12-01	-	Active	NO
7	U27103ML2002PLC006975	PURBANCHAL ALLOYS LIMITED	Director	13-12-02	13-12-02	-	Active	NO
8	U26941WB2003PLC096228	PURBANCHAL CEMENT LIMITED	Director	20-05-03	20-05-03	13-08-07	Active	NO
9	U27109WB2004PLC098746	TIMES FERRO ALLOYS LIMITED	Director	14-08-11	23-06-04	-	Active	NO
10	U13209ML2004PLC007488	PURBANCHAL MINES AND MINERALS LIMITED	Director	04-08-04	04-08-04	01-10-08	Active	NO
11	U24139AS2005PTC007734	MEGHA GRANULES PRIVATE LIMITED	Director	05-05-05	05-05-05	-	Active	NO
12	U26959ML2007PLC008288	TIMES PORTLAND CEMENT LIMITED	Director	12-11-07	12-11-07	-	Active	NO
13	U26940ML2008PLC008306	JPN RYMBAI CEMENTS LIMITED	Director	07-02-08	07-02-08	-	Active	NO
14	U27100JH2008PLC013137	DHANANIA STEELS AND POWER LIMITED	Director	17-10-08	17-10-08	-	Active	NO

Name :

Mr. Ayush Agarwal

Designation :

Director

Address :

BE-223, Pushpa Villa, Sector 1, Salt Lake City, Kolkata-700064, West Bengal, India

Date of Appointment :

23.06.2004

Date of Ceasing:

14.08.2011

Din No.:

00124892

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51109WB1996PTC079187	HIMTECH SALES PRIVATE LIMITED	Director	24-12-01	24-12-01	-	Active	NO
2	U40102WB2004PTC097869	NORTH EAST INDUSTRIAL POWER PRIVATE LIMITED	Director	16-02-04	16-02-04	01-10-08	Active	NO
3	U27109WB2004PLC098746	TIMES FERRO ALLOYS LIMITED	Director	23-06-04	23-06-04	14-08-11	Active	NO
4	U17299ML2005PTC007616	NORTH EAST SYNTHETICS PRIVATE LIMITED	Director	06-01-05	06-01-05	-	Dormant	NO
5	U24139AS2005PTC007734	MEGHA GRANULES PRIVATE LIMITED	Director	05-05-05	05-05-05	13-08-10	Active	NO
6	U26959ML2007PLC008288	TIMES PORTLAND CEMENT LIMITED	Director	12-11-07	12-11-07	-	Active	NO
7	U26940ML2008PLC008306	JPN RYMBAI CEMENTS LIMITED	Director	07-02-08	07-02-08	-	Active	NO
8	U27101ML2008PLC008311	TIMES ALLOYS ANDPOWER (MEGHALAYA) LIMITED	Director	25-03-08	25-03-08	-	Active	NO
9	U27100JH2008PLC013137	DHANANIA STEELS AND POWER LIMITED	Director	24-04-08	24-04-08	-	Active	NO
10	U27103ML2002PLC006975	PURBANCHAL ALLOYS LIMITED	Director	30-03-10	30-03-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Santosh Agarwal	30000
Shwet Agarwal	25000
Bimla Tibrewal	7000
Manbhawati Devi Agarwal	27000
Kusum Agarwal	36000
Trilok Chand Agarwal	11000
Ayush Agarwal	10000
Dipali Agarwal	17500
Indu Agarwal	29500
Jai Gokul Towers Private Limited, India	25000
North East Synthetics Private Limited, India	323125
Ankita Merchant Private Limited, India	347750
Aryata Agarwal	1250
Bihar Raffia Industries Limited, India	5000
Suresh Agarwal	1000
AM Software Solutions Private Limited, India	1102016

As on 31.03.2011

Name of Allottees	No. of Shares
North East Synthetics Private Limited, India	42000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	70.85
Directors or relatives of directors	5.17
Other top fifty shareholders	23.98
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Ferro Silicon, Silico Manganese and Ferro Manganese.

Products :

Product Description	Item Code
Ferro Silicon	72022100
Silico Manganese	72023000
Ferro Manganese	72021100

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Ferro Silicon inc. Sales Return – 16 MT	MT	--
Silico Manganese inc. Sales Return – 16 MT	MT	2173.466
Ferro Manganese	MT	1489.524

GENERAL INFORMATION

Bankers :

State Bank of India, Chowringhee Branch, Himalaya House, 38B, J.L. Nehru Road, Kolkata-700071, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
From Bank
Rupees Term Loan	3.509	30.978
FCNRB Loan	22.026	0.000
Working Capital Loan	75.598	80.479
Other Hire Purchase Finance	0.215	0.798
Total	101.348	112.255
Unsecured Loan
From Body Corporate	19.500	23.300
From Other	2.800	1.000
Total	22.300	24.300

Banking Relations :	--
Auditors :
Name :	S. Bhalotia and Associates Chartered Accountants
Address :	20B, British India Street, East India House, Room No. 1 F, Kolkata-700069, West Bengal, India
Tel. No.:	91-33-40047183/84/88
Fax No.:	91-33-40047016
E-Mail :	ho@sbassociates.co.in
Pan No.:	ABDFS9117L
Associates:	Purbanchal Alloys Limited
Enterprise over which (a) above is able to exercise significant influences:	· Times Alloys and Power (Meghalaya) Limited · Times Pac India Limited · AM Software Solutions Private Limited · Times Portland Cement Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3116065	Equity Shares	Rs.10/- each	Rs.31.161 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		31.161	30.741	30.741
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		101.924	92.221	92.221
4] (Accumulated Losses)		0.000	(2.530)	(3.495)
NETWORTH		133.085	120.432	119.467
LOAN FUNDS
1] Secured Loans		101.348	112.255	84.883
2] Unsecured Loans		22.300	24.300	5.525
TOTAL BORROWING		123.648	136.555	90.408
DEFERRED TAX LIABILITIES		3.324	7.716	4.073
TOTAL		260.057	264.703	213.948
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		118.922	126.132	129.814
Capital work-in-progress		17.254	17.104	17.952
INVESTMENT		9.491	6.217	0.120
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	99.922	93.668	42.274
	Sundry Debtors	12.444	29.074	19.797
	Cash & Bank Balances	11.405	5.859	5.448
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	60.567	53.501	34.207
Total Current Assets		184.338	182.102	101.726
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.028	19.950	13.834
	Other Current Liabilities	43.712	45.870	21.545
	Provisions	2.277	1.135	0.422
Total Current Liabilities		70.017	66.955	35.801
Net Current Assets		114.321	115.147	65.925
MISCELLANEOUS EXPENSES		0.069	0.103	0.137
TOTAL		260.057	264.703	213.948

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	246.842	267.095	102.581
		Other Income	23.800	6.932	0.147
		TOTAL (A)	270.642	274.027	102.728
Less	EXPENSES
		Manufacturing and Operating Expenses	226.632	277.571	117.860
		Personnel Expenses	2.060	2.952	2.266
		Administrative and Other Expenses	8.211	9.307	3.766
		Miscellaneous Expenses	0.000	0.000	0.597
		Loss in Foreign Currency Transactions	0.345	0.237	0.000
		Increase and Decrease in Stocks	(2.129)	(44.407)	(34.259)
		TOTAL (B)	235.119	245.660	90.230
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35.523	28.367	12.498
Less	FINANCIAL EXPENSES (D)		18.143	12.859	6.478
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.380	15.508	6.020
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.218	10.901	5.318
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		6.162	4.607	0.702
Less	TAX (H)		(4.391)	3.642	4.197
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		10.553	0.965	(3.495)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2.530)	(3.495)	0.000
	BALANCE CARRIED TO THE B/S		8.023	(2.530)	(3.495)
	Earnings / (Loss) Per Share (Rs.)		3.43	0.31	(1.14)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.90	0.35	(3.40)
Net Profit Margin (PBT/Sales)	(%)	2.50	1.72	0.68
Return on Total Assets (PBT/Total Assets}	(%)	2.03	1.50	0.30
Return on Investment (ROI) (PBT/Networth)		0.05	0.04	0.01
Debt Equity Ratio (Total Liability/Networth)		1.46	1.69	1.06
Current Ratio (Current Asset/Current Liability)		2.63	2.72	2.84

LOCAL AGENCY FURTHER INFORMATION

Note: The registered office of the company has been shifted from FE-219, Sector II, Salt Lake City, Kolkata-700106, West Bengal, India to the present address w.e.f. 10.11.208.

OPERATIONAL RESULTS:

During the year, the company reported total net turnover of Rs.246.842 millions against Rs.267.095 millions in the previous year. Though turnover during the year declined due to obstruction in productions for 79 days because of labour unrest. The PBIT for the year improved to Rs.24.305 millions as against Rs.17.466 millions in the previous year. The company has given main focus on managing variable cost and product mix improvements. The company looks forward to pull through the depression and hope to figure out encouraging impact of its operations.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10211702
Corporate identity number of the company	U27109WB2004PLC098746
Name of the company	TIMES FERRO ALLOYS LIMITED
Address of the registered office or of the principal place of business in India of the company	CE-61, Sector I, Salt Lake City, Kolkata-700064, West Bengal, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge Immovable Property Other
Particular of charge holder	State Bank of India, Chowringhee Branch, Himalaya House, 38B, J.L. Nehru Road, Kolkata-700071, West Bengal, India
Email	ajay.ghosh@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of Loan-cum-Hypothecation - (SME-4). Guarantee Agreement - (SME-3) (2 Sets). Memorandum for Recording extension of Mortgage by Deposit of Title Deeds Covering Enhanced Limits and/or Creation of Equitable Mortgage on Additional Properties for Existing Limits and Enhanced Limit and Additional Facilities.
Date of instrument Creating the charge	22.03.2011
Amount secured by the charge	Rs.243.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit: At 6.75% above Base Rate, with monthly rests. Existing Term Loan - I and II: At 1.00% above SBAR, with monthly rests. Term Loan- III : At 6.75% + 0.50% above Base Rate with monthly rests. Terms of Repayment Working Capital Limit is repayable on demand. The existing Term Loans - I and II of Rs.21.800 Millions and 3.800 Millions, respectively are repayable as per existing terms of Sanction. The New Term Loan of Rs.120.000 Millions is repayable in 60 monthly installments of Rs.2.000 Millions each commencing from January, 2012 and ending on December, 2016. Margin As stipulated by the Bank for the respective assets from time to time. Raw Materials : Indigenous : 25%, Semi-Finished Goods : 25%, Finished Goods : 25%, Components/Consumables/Spares : 25%, Domestic Receivables (60 days) : 35% and Letter of Credit: 25%. Extent and Operation of the charge The charge operates as first charge basis on the whole of the hypothecated current assets and movable fixed assets of the Company, both present and future and mortgaged properties as to secure the maximum amount under the said charge fixed at Rs.243.600 Millions together with interest, costs and charges thereon. Others The Borrower shall not do or allow anything which may prejudice the security and shall comply with the terms and conditions of the Agreements. The overall limit is also secured by corporate guarantee of M/s. Bihar Raffia Industries Limited and M/s. Timespac India Limited. All other terms and conditions continue to remain as before in full force and effect.
Short particulars of the property charged	Hypothecation of current assets including stock and book debts of the Company, both present and future. Hypothecation of plant and machinery along with other movable fixed assets of the Company, both present and future. All that land measuring 5 acres 70 satak more or less at Mouza Paktor, J.L. No.12, P.S. and ADSRO Gangajalhati, District Bankura under Deed No.2171. All that piece and parcel of land measuring 2.97 acres under Mouza Kadasle, J.L. No.22, R.S. Plot Nos.2688, 2689, 1545 and 1547, P.S. Barjora, District Bankura under 2122.
Particulars of the present modification	By this modification, the overall limit is enhanced from Rs.128.300 Millions to Rs.243.600 Millions as stated under and charge on hypothecated current assets, movable fixed assets and above mentioned mortgaged properties of the Company extended to secure the enhanced overall limit together with interest, costs and charges thereon: Cash Credit : Rs.80.000 Millions Term Loan - I : Rs.21.800 Millions Term Loan - II : Rs.3.800 Millions Term Loan - III (New) : Rs.120.000 Millions Letter of Credit: Rs.18.000 Millions.

FIXED ASSETS:

· Land Fee Hold

· Land Lease Hold

· Factory Building

· Administrative Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Computer and Peripherals

· Pollution Control Equipments

· Miscellaneous Fixed Assets

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.52.25
UK Pound	1	Rs.81.23
Euro	1	Rs.69.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.