MIRA INFORM REPORT

Report Date :

19.10.2011

IDENTIFICATION DETAILS

Name :	APPLE SPONGE AND POWER LIMITED (w.e.f. 21.07.2008)
Formerly Known As :	APPLE SPONGE IRON LIMITED APPLE SPONGE IRON PRIVATE LIMITED
Registered Office :	T-1, III Floor, Anupam Plaza, IIT Crossing, Hauz Khas, Delhi – 110016
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.10.2004
Com. Reg. No.:	55-130241
Capital Investment / Paid-up Capital :	Rs.75.046 Millions
CIN No.: [Company Identification No.]	U27101DL2004PLC130241
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Sponge Iron and M.S.Billets.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 1483000
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 and as per commitments. 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.

INFORMATION DECLINED BY

Name :	Mr. Ravindra
Designation :	Director
Date :	17.10.2011

LOCATIONS

Registered Office :	T-1, III Floor, Anupam Plaza, IIT Crossing, Hauz Khas, Delhi – 110016, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@applegroup.co.in amulmittal@hotmail.com
Website :	http://www.applegroup.co.in
Corporate Office :	B - 16, Sector – 2, Noida – 201 301, Uttar Pradesh, India.
Factory :	C – 4, Five Star, MIDC Industrial Area, Kagal, Kolhapur – 416 236, Maharashtra, India

DIRECTORS

As on 29.09.2010

Name :	Mr. Narendra Kumar Garg
Designation :	Whole-Time Director
Address :	F-22, Model Town II, Delhi, India
Date of Birth/Age :	09.11.1953
Date of Appointment :	28.10.2004
DIN No.:	00013348

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	U27101DL2004PLC130241	Apple Sponge and Power Limited	Whole-time director	20-05-09	28-10-04	-	Active	NO
2	U74120DL2008PLC175180	Apple Industries Limited	Director	11-03-08	11-03-08	-	Active	NO
3	U70109DL2006PTC152797	Delight Buildcon Private Limited	Director	28-09-10	04-12-09	-	Active	NO
4	U27100DL2010PTC198330	Madan Gopal Alloys Private Limited	Director	25-01-10	25-01-10	-	Active	NO
5	U40101DL2010PTC198336	Manan Power Private Limited	Director	25-01-10	25-01-10	-	Active	NO

Name :	Mr. Laxmikant Lath
Designation :	Director
Address :	27, Sun Beam , Peddar Road, Mumbai, Maharashtra, India
Date of Birth/Age :	05.11.1972
Date of Appointment :	28.10.2004
DIN No.:	00064715

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	U65920MH1994PTC081909	Sunil Exim Private Limited	Director	10-10-94	10-10-94	-	Active	NO
2	U51900MH1995PTC093821	Apple Mines and Minerals Private Limited	Director	19-10-95	19-10-95	-	Active	NO
3	U17120MH1982PTC028659	Sunil Bleaching Company Private Limited	Director	01-02-99	01-02-99	-	Active	NO
4	U17100MH1986PTC041732	Eske Tex (India) Private Limited	Director	01-11-99	01-11-99	-	Active	NO
5	U99999MH1981PTC024255	Sunil Synthetics Private Limited	Director	05-07-01	05-07-01	-	Active	NO
6	U17100MH1979PTC021443	Sunil Fabrics Private Limited	Director	10-07-01	10-07-01	-	Active	NO
7	U99999MH1981PTC024256	Sunil Prints Private Limited	Director	18-07-03	18-07-03	-	Active	NO
8	U27101DL2004PLC130241	Apple Sponge and Power Limited	Director	28-10-04	28-10-04	-	Active	NO
9	U29130MH2006PTC163464	Tac Gear Private Limited	Director	02-08-06	02-08-06	-	Under Process of Striking off	YES
10	U18101DL2005PTC136912	B L Garments Private Limited	Director	31-08-06	31-08-06	-	Active	NO
11	U17120MH1990PTC057964	Rarefab Textiles Private Limited	Director	01-02-07	01-02-07	-	Active	NO
12	U72200DL2005PTC136413	Guru Ram Dass Infotech Private Limited	Director	02-02-07	02-02-07	-	Active	NO

Name :	Mr. Ravinder Kumar Gupta
Designation :	Director
Address :	AG-31, Shalimar Bagh, Delhi, India
Date of Birth/Age :	05.06.1957
Date of Appointment :	28.10.2004
DIN No.:	00464098

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	U27101DL2004PLC130241	Apple Sponge and Power Limited	Director	28-10-04	28-10-04	-	Active	NO
2	L99999MH1976PLC019331	Sunil Industries Limited	Director	30-09-08	15-09-07	-	Active	NO

Name :	Mr. Amul Mohan Satish Mohan Mittal
Designation :	Director
Date of Birth/Age :	27.05.1979
Date of Appointment :	10.08.2009
DIN No.:	00345150

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	U74899DL1983PTC015627	Aarti Construction Private Limited	Director	25-10-04	25-10-04	-	Active	YES
2	U74899DL1983PTC015626	Sangeeta Construction Private Limited	Director	25-10-04	25-10-04	-	Dormant	NO
3	U74899DL1983PTC015628	Nippun Construction Private Limited	Director	07-12-06	07-12-06	-	Dormant	NO
4	U27101DL2004PLC130241	Apple Sponge and Power Limited	Director	29-09-10	10-08-09	-	Active	NO
5	U65999DL2003PTC122102	Apple Insurance Brokers Private Limited	Director	29-09-10	05-10-09	-	Active	NO
6	U27100DL2010PTC199022	Yuven Steels Private Limited	Director	12-02-10	12-02-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Apple Buildtech Limited, India	1087250
Ashish Garg	157500
Ashish Gupta	69400
Babu Lal Gupta	90000
Harikishan Das Gupta	58600
Krishna Gupta	16600
Laxmikant Lath	332000
Narender Garg H.U.F.	50000
Narender Kumar Garg	27500
Nitin Gupta	148300
Pradeep Kr. Gupta	16200
R. B. Sugar	50000
Rajeev Gupta	70400
Ravinder Gupta	210250
Ruchi Garg	34700
Shaloo Garg	50000
Shivam Gupta	66600
Vinod Lath	64300
Nirman Stelco Private Limited, India	64000
Apple Metal Industries Limited, India	1000000
Supremo Marketing Private Limited, India	2710000
Monisha Impex Private Limited, India	1390000
Apri Beverages & Foods Private Limited, India	900000
Sanidhya Steels Private Limited, India	400000
Ramji Lal Exim Private Limited, India	480000
Madan Gopal Alloys Private Limited, India	478000
Manan Power Private Limited, India	313000
Eske Tex (India) Private Limited, India	845000
Sunil Industrial Finance Private Limited, India	75000
Total	11254600

List of Allottees

As on 31.03.2011

Names of Allottees	No. of Shares Allotted
Madan Gopal Alloys Private Limited, India	600000
Manan Power Private Limited, India	462500
Sanidhya Steels Private Limited, India	640000
Total	1702500

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Bodies corporate	86.56
Directors or relatives of Directors	8.82
Other top fifty shareholders	4.62
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Sponge Iron and M.S.Billets.
Products :	Sponge Iron M. S. Billet and others

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Sponge Iron	M.T.	NA	30000	17199.278
M.S. Billet	M.T.	NA	30000	15099.900

GENERAL INFORMATION

Suppliers :

• Kairali Engineering Private Limited
• Makharia Machineries Private Limited
• Asianol Lubricants Limited
• Enarayan Elex India Private Limited
• Laimura Technology Private Limited
• Shri K N Mahalaxmi Ispat Private Limited
• Krupal Enterprises
• Tops Security Limited
• Damani Enterprises
• A. A. Malia and Company
• Ajay Metachem Sud Chemie Private Limited
• Anand Sales Corporation
• Deepak Industries
• Electrotherm India Limited
• Devi Industries

Customers :

• Ajay Metalic Private Limited
• Apple Industries Limited
• Arya Steel Rolling (India) Limited
• Ashtavinayak Steel Private Limited
• Balbir Alloys Private Limited
• Ishu Super Steels Private Limited
• K. K. Agencies
• Masina Alloys Private Limited
• Paul Strips and Tubes Private Limted
• Shree Bhimsehewari Ispat Private Limted
• Shri Sidhivinayak Ispat private Limited
• Shree Vaishnav Casting Private Limited
• Solo Metal Private Limted
• Solo Steel Company Private Limted
• Torne Ispat Udyog Private Limted

No. of Employees :

Not Divulged

Bankers :

• Bank of Baroda, 16, Parliament Stree, New Delhi – 110001, India
• Punjab National Bank, ECE House, K. G. Marg, New Delhi – 110001, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Bank of Baroda Term Loan No 1	25.158	34.307
Punjab National Bank Term Loan No.1	78.460	85.000
Bank of Baroda Term Loan No 2	28.750	35.000
Punjab National Bank Term Loan No 2	40.562	54.962
Bank of Baroda Term Loan No 3	50.000	0.000
Punjab National Bank Term Loan No.3	157.485	0.000
INTEREST ACCRUED ON TERM LOAN	3.332	2.509
(Secured by way of pari-passu first charge on entire fixed assets of the company both present and future and further secured by pledge of FDR of Rs.17.200 Millions. Also secured by way of personal guarantee of Narendra kumar Garg, Ravindra Gupta, Laxmikant Lath, Nitin Gupta, Mrs. Shaloo Garg and Corporate Guarantee of Apple Alloys private Limted (Term Loan repayable within one year Rs.36.200 Millions (Previous year Rs.36.200 Millions))
Bank of Baroda CC/Hypothecation Loan	75.925	18.343
Punjab National Bank CC/Hypo Loan	54.377	44.436
(Hypothecation of movable inventories and Book Debts)
TML Financial Services Limited (Secured by way of charge on Tata Timber Truck)	0.307	0.684
SREI Infrastructure Finance Private Limited (Secured by way of charge on JCB Equipment)	0.000	0.560
TATA Capital Limited (Secured by way of charge on a specific Motor Car)	1.230	2.061
Punjab National Bank (Secured by way of charge on a specific Motor Car)	0.587	0.000
Total	516.173	277.862

Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Body Corporate	11.499	1.120
Total	11.499	1.120

Banking Relations :	--
Financial Institution :	TML Financial Services Limited SREI Infrastructure Finance Private Limited TATA Capital Limited
Auditors :
Name :	Dinesh Agarwal and Associates Chartered Accountants
Address :	609/B. Mangalarambh, Kora Kendra Road, Borivali (West), Mumbai – 400092, Maharashtra, India
Tel. No.:	91-22-28987061
Fax No.:	91-22-28987062
E-Mail :	sagarwal_dinesh@hotmail.com
PAN.:	AACFD8388A
Companies / Firm controlled by directors / Relatives:	Apple Commodities Private Limited Apple Alloys Private Limited Esketex India Private Limited Sanjana Enterprise

CAPITAL STRUCTURE

After 30.09.2010

Authorised Capital : Rs.160.000 Millions

Paid-up Capital : Rs.92.071 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
16000000	Equity Shares	Rs.10/- each	Rs.160.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
11254600	Equity Shares	Rs.10/- each	Rs.112.546 Millions

Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount
6254600	Equity Shares (Fully Paid Up)	Rs.10/- each	Rs.62.546 Millions
50000000	Equity Shares (Partly Paid Up)	Rs.10/- each	Rs.12.500 Millions
	Total		Rs.75.046 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		75.046	52.546	42.410
2] Share Application Money		21.860	43.843	16.263
3] Reserves & Surplus		273.874	129.409	81.976
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		370.780	225.798	140.649
LOAN FUNDS
1] Secured Loans		516.173	277.862	241.536
2] Unsecured Loans		11.499	1.120	1.120
TOTAL BORROWING		527.672	278.982	242.656
DEFERRED TAX LIABILITIES		19.119	19.200	7.775
TOTAL		917.571	523.980	391.080
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		279.254	304.342	157.005
Capital work-in-progress		274.797	0.000	118.797
INVESTMENT		0.948	0.625	0.625
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	168.196	194.410	59.396
	Sundry Debtors	136.971	35.255	26.324
	Cash & Bank Balances	84.738	10.802	21.507
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.196	25.012	41.407
Total Current Assets		430.101	265.479	148.634
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	60.393	42.575	28.510
	Other Current Liabilities	3.578	1.514	5.954
	Provisions	3.800	2.740	0.000
Total Current Liabilities		67.771	46.829	34.464
Net Current Assets		362.330	218.650	114.170
MISCELLANEOUS EXPENSES		0.242	0.363	0.483
TOTAL		917.571	523.980	391.080

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	889.236	595.036	269.337
		Other Income	2.365	12.479	0.240
		TOTAL (A)	891.601	607.515	269.577
Less	EXPENSES
		(Increase) / Decrees in Finished Goods	8.215	(41.773)	(3.761)
		Material Cost	623.754	456.180	182.166
		Manufacturing Expenses	151.673	96.020	17.986
		Employee Cost	5.788	4.460	3.007
		Administrative and other Expenses	8.845	8.943	5.760
		Preliminary Expenses Written Off	0.121	0.121	0.121
		TOTAL (B)	798.396	523.951	205.279
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		93.205	83.564	64.298
Less	INTEREST / FINANCIAL EXPENSES (D)		40.781	37.363	19.772
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.424	46.201	44.526
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.698	24.894	14.919
	PROFIT BEFORE TAX (E-F) (G)		20.726	21.307	29.607
Less	TAX (H)		3.762	14.418	11.251
	PROFIT AFTER TAX (G-H) (I)		16.964	6.889	18.356
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		25.245	18.356	0.000
	BALANCE CARRIED TO THE B/S		42.209	25.245	18.356
	Earnings Per Share (Rs.)		3.22	1.62	8.02

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.90	1.13	6.81
Net Profit Margin (PBT/Sales)	(%)	2.33	3.58	10.99
Return on Total Assets (PBT/Total Assets}	(%)	2.92	3.74	9.69
Return on Investment (ROI) (PBT/Networth)		0.06	0.09	0.21
Debt Equity Ratio (Total Liability/Networth)		1.61	1.44	1.97
Current Ratio (Current Asset/Current Liability)		6.35	5.67	4.31

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS

(Rs.In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2009
Sundry Creditors for Material, Capital Goods and Expenses	60.393	42.575	28.510
Total	60.393	42.575	28.510

DETAILS OF SUNDRY CREDITORS

(Rs.In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2009
Sundry Creditors for Material, Capital Goods and Expenses
Kairali Engineering Private Limited	0.129	0.129	0.000
Makharia Machineries Private Limited	0.070	0.159	0.000
Tops Security Limited	0.033	0.032	0.000
Damani Enterprises	0.010	0.061	0.000
Ajay Metachem Sud Chemie Private Limited	0.187	0.348	0.000
Anand Sales Corporation	0.003	0.000	0.000
Deepak Industries	0.029	0.000	0.000
Electrotherm India Limited	0.028	0.040	0.000
Devi Industries	0.063	0.000	0.000
Action Ispat and Power Private Limted	0.000	0.057	0.000
Aishjwarya Shipping and Cleaning	0.000	0.400	0.000
Anshul Steel Limted	0.000	1.500	0.000
Concast India limited	0.000	0.000	1.534
Praja Associates	0.000	0.000	0.960
B S V Minerals	0.000	0.000	0.109
Goa Sponge and Power Limited	0.000	0.000	1.531
Goyal Iron and Steel Private Limited, Nagpur	0.000	0.000	2.198
Apple Commodities Private Limited	0.000	0.000	0.001
Goa Bombay Transport Company	0.000	0.000	0.373
New SMST Transport	0.000	0.000	0.426

CONTINGENT LIABILITY (As on 31.03.2010)

Bank Guarantee Rs.8.727 Millions (Previous year Rs.0.780 Millions) given to Maharashtra State Electricity Distribution Company Limited (MSDEDCL) in respect of electricity connection given by the MSDEDCL to the company against fixed deposits of Rs.8.727 Millions (Previous Year Rs.0.780 Million in Punjab National Bank.

NOTE

Registered office the company has been shifted from “D-10, First Floor, Green Park Main, New Delhi – 110016, India” to the present address

FORM 8

Corporate identity number of the company	U27101DL2004PLC130241
Name of the company	APPLE SPONGE AND POWER LIMITED
Address of the registered office or of the principal place of business in India of the company	T-1, III Floor, Anupam Plaza, IIT Crossing, Hauz Khas, Delhi – 110016, India E-Mail : info@applegroup.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10163740
Type of charge	Immovable property Book debts Movable property (not being pledge) Others (Third Party Guarantee)
Particular of charge holder	Punjab National Bank, ECE House, K.G. Marg, New Delhi – 110001, India E-mail : bo1120@pnb.co.in
Nature of instrument creating charge	Board Resolution Joint Deed of Hypothecation
Date of instrument Creating the charge	22.02.2011
Amount secured by the charge	Rs.491.400 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Punjab National Bank- CC- BR+4.5% Bank of Baroda- CC- BR+ 4.5% Terms of repayment Repayable on Demand Margin Punjab National Bank -For CC Limit - 25% on Raw Material and Finished Goods, 30% for Stores and Spares, 40% on Book Debts For FLC - 15% Bank Of Baroda - 40 % on Book Debts, 30% on Stores and Spares, 25% on Stock. Extent and operation of the charge As per Agreement
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Stock of Raw Material, Semi-Finished goods, Finished goods, Consumables and other chargeable Current Assets Present and Future. Immovable Property (Detailed in Agreement) and Third Party Guarantee
Date of instrument modifying the charge	01.09.2009
Particulars of the present modification	PUNJAB NATIONAL BANK - Cash Credit (Fund Based) - Rs.43.000 Millions (Existing), Rs.79.000 Millions (Enhanced), FLC (Non Fund Based) - Rs.49.000 Millions (Fresh),Term Loan I- Rs.85.000 Millions, Term Loan II - Rs.58.400 Millions. BANK OF BARODA - Cash Credit (Fund Based)- Rs.77.000 Millions (Existing), Rs.141.000 Millions (Enhanced),Term Loan I - Rs.44.000 Millions, Term Loan II - Rs.35.000 Millions. Total Rs.491.400 Millions

FIXED ASSETS

• Land
• Garden
• Building
• Plant and Machinery
• JCB
• Air Conditioner
• Electric Sub Station
• Electric Fitting
• Generator
• Furniture and Fixtures
• Computer
• Office Equipments
• Motor Cycle
• Motor Car
• Truck

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.49.14
UK Pound	1	Rs.77.58
Euro	1	Rs.67.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	4
--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		43

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.