MIRA INFORM REPORT

Report Date :

19.10.2011

IDENTIFICATION DETAILS

Name :	WELSPUN STEEL LIMITED

Formerly Known As :	WELSPUN POWER AND STEEL PRIVATE LIMITED

Registered Office :	S N 650 Village Varsamedi Taluka Anjar, District Kutch-370110, Gujarat

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	03.06.2004

Com. Reg. No.:	04-044249

Capital Investment / Paid-up Capital :	Rs.251.000 Millions

CIN No.: [Company Identification No.]	U27109GJ2004PLC044249

TAN No.: [Tax Deduction & Collection Account No.]	RKTW00058C

PAN No.: [Permanent Account No.]	AAACW5308G

Legal Form :	A closely held Public Limited Liability Company.

Line of Business :	Manufacturer of Sponge Iron, Ingots, Billets and TMT Bars.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 7200000

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.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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

INFORMATION DECLINED BY

Management Non Co-Operative.

LOCATIONS

Registered Office/ Factory :	S N 650 Village Varsamedi Taluka Anjar, District Kutch-370110, Gujarat, India
Tel. No.:	91-2836-279051/53/54/55/56
Fax No.:	91-2836-279050
E-Mail :	secretariallegal@welspun.com dilip_chokhra@welspun.com wpslanjar_gov@welspun.com rashmi_mamtura@welspun.com
Website :

Corporate Office :	Welspun House, 7^th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai-400013, Maharashtra, India.
Tel. No.:	91-22-66136000
Fax No.:	91-22-24908020

Branch 1 :	23 HIG, BDA Housing Complex, Gangadhar Meher Nagar, Jayadev Vihar, Bhubaneshwar-751013, Orissa, India
Tel. No.:	91-674-2300223
Fax No.:	91-674-2300224

Branch 2:	GIDC Industrial Estate, Valia Road, Jagadia, District Bharuch, Gujurat, India
Tel. No.:	91-2645-226305/6/7
Fax No.:	91-2645-220403

DIRECTORS

As on 29.09.2010

Name :	Mr. Balkrishan Goenka
Designation :	Director
Address :	Rocky Isle 46/C, Bhulabhai Desai Road, Breach Candy, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	15.08.1965
Date of Appointment :	03.06.2004

Name :	Mr. S.R. Somani
Designation :	Director
Address :	N-8/18 Ganpati Niwas, Bangur Niwas Building, Goregaon (West), Mumbai-400090, Maharashtra, India.
Date of Birth/Age :	23.01.1948
Date of Appointment :	22.03.2006

Name :	Mr. Shailesh Vaidya
Designation :	Director
Address :	Sumer Heights, K.M. Munshi Marg, Chowpatty, Mumbai-400007, Maharashtra, India
Date of Birth/Age :	03.11.1957
Date of Appointment :	10.05.2006

Name :	Mr. Ram Gopal Sharma
Designation :	Director
Address :	E-707, Military Road, Off Marol Maroshi Road, Lok Sarita Building, Andheri (East), Mumbai-400059, Maharashtra, India
Date of Birth/Age :	11.09.1940
Date of Appointment :	10.05.2006

Name :	Mr. Rajesh R. Mandawewala
Designation :	Director
Address :	161/171-B, Opposite Sidhivinayak Temple, Tanna Residency, Prabhadevi, Mumbai-400025, Maharashtra, India
Date of Birth/Age :	05.05.1962
Date of Appointment :	01.09.2006

Name :	Mr. Murarilal Mittal
Designation :	Director
Address :	1601, P.B. Marg, Marathon Heights, Jai Bharat Oil Mills Compound, Lower Parel, Mumbai-400013, Maharashtra, India
Date of Birth/Age :	11.03.1958
Date of Appointment :	01.09.2006

Name :	Mr. Vijay Singh Bapna
Designation :	Whole Time Director
Address :	5^th Floor, Room No. 503, Sir Pochkhanwala Road, Purna 68-A, Worli, Mumbai-400025, Maharashtra, India
Date of Birth/Age :	28.08.1948
Date of Appointment :	01.04.2009

KEY EXECUTIVES

Name :	Mr. Rajendra Sawant
Designation :	Secretary
Address :	508, B-Wing, 5^th Floor, Bala Seth Madulkar Marg, Purna, 68-A, Lower Parel, Mumbai-400013, Maharashtra, India
Date of Birth/Age :	23.05.1971
Date of Appointment :	01.05.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders		No. of Shares
Krishiraj Trading Limited, Vapi, India		54350100
Welspun Finance Limited, New Delhi, India		10000
Welspun Mercantile Limited, Kutch, India		6659600
Welspun Fintrade Limited, Kutch, India		40950000
Welspun Wintex Limited, Kutch, India		2120000
Goldenarch Estates Private Limited, New Delhi, India		1000000
Nextgen Far East Limited, Wickhams Cay I Road Town		5000000
Welspun Zucchi Textiles Limited, Mumbai, India		100
Welspun Syntex Limited, Dadra and Nagar Havelli		100
Welspun India Limited, Kutch, India		100

As on 29.09.2010

Equity Share Breakup		Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		4.54
Bodies corporate		95.46
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Sponge Iron, Ingots, Billets and TMT Bars.

GENERAL INFORMATION

Bankers :

Punjab National Bank, IIIaco House, Sir P.M. Road, Fort, Mumbai-400001, Maharashtra, India.

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)
From Banks:
Term Loans:
Rupee term loans (including interest accrued and due Rs.1.770 millions as of 31/03/2009 Rs.2.220 millions)	176.957
Foreign currency terra loans (Term loans from banks are secured by way of mortgage (first charge) on ad movable and removable properties of the company both present and future, ranking pari passu, and are personally guaranteed by a promoter director. Further. the sad loans are also secured by second charge on current assets subject to prior charge in favour of working capital facilities)	39.227
Working Capital Loans: Rupee working capital bans (Secured by hypothecation of stocks and book debts of the Company and second charge on entire fixed assets of fire Company and further secured by personal guarantee of a promoter director)	250.350
Total	466.534

Unsecured Loan
From Bank (Short term) (Including interest accrued and due Rs.4.246 millions as at 31.03.2009 Rs.4.991 millions)	604.247
Debentures 9,899.375 6.5% (previous year Libor + Margin 220 basis points) (net of al taxes etc. payable by he Company) Unsecured fully convertible Debenture of Rs.100 each (Including interest accrued and due Rs. Nil as at 31.03.2009 Rs.37.004 millions)	989.937
19711184 8.5% (previous year Libor ÷ Margin 275 basis points) (net of taxes payable by the Company) Unsecured fully convertible Debenture of Rs100 each (for terms of conversion.)	1971.118
Total	3565.302


Banking Relations :	--

Auditors :
Name :	Suresh Surana and Associates Chartered Accountant
Address :	13^th Floor, Bakhtawar, 229 Nariman Point, Mumbai-400021, Maharashtra, India.

Associates/Subsidiaries :	Welspun Maxsteel Limited (U27100MP2008PLC020834) Welspun Orissa Steel Private Limited (U45400DL2007PTC162485)

Group Companies:	Welspun India Limited Welspun Zucchi Textiles Limited Welspun Syntex Limited Welspun Global Bands Limited Welspun Retail Limited Welspun UK Limited Welspun Sorema Europe, S.A Welspun Mexico SA DE CV Welspun USA Inc. Welspun Tubular LLC Welspun Power and Steel Limited Welspun Maxsteel Limited Remi Metals Gujarat Limited Welspun Natural Resources Limited Welspun Investment Limited Welspun Infratech Limited Welspun Energy Limited

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
125500000	Equity Shares	Rs.10/- each	Rs.1255.000 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
150000000	Equity Shares	Rs.10/- each	Rs.1500.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
125500000	Equity Shares	Rs.10/- each	Rs.1255.000 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25100000	Equity Shares	Rs.10/- each	Rs.251.000 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		251.000	251.000	251.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1549.791	1318.574	495.714
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1800.791	1569.574	746.714
LOAN FUNDS
1] Secured Loans		466.534	642.321	654.828
2] Unsecured Loans		3565.302	3451.889	3433.357
TOTAL BORROWING		4031.836	4094.210	4088.185
DEFERRED TAX LIABILITIES		22.311	0.000	225.765

TOTAL		5854.938	5663.784	5060.664

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1256.153	1298.338	1287.456
Capital work-in-progress		111.852	1697.448	3160.513

INVESTMENT		3050.196	290.196	6.903
DEFERREX TAX ASSETS		0.000	8.141	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	584.465	393.796	400.844
	Sundry Debtors	277.563	400.909	243.811
	Cash & Bank Balances	585.517	1370.697	148.570
	Other Current Assets	1.910	7.912	1.219
	Loans & Advances	1075.032	899.478	562.990
Total Current Assets		2524.487	3072.792	1357.434
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	332.117	242.620	232.110
	Other Current Liabilities	574.266	307.598	433.802
	Provisions	181.367	152.913	85.730
Total Current Liabilities		1087.750	703.131	751.642
Net Current Assets		1436.737	2369.661	605.792

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		5854.938	5663.784	5060.664

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	3216.911	3338.047	3152.384
		Other Income	39.261	43.622	58.669
		TOTAL (A)	3256.172	3381.669	3211.053

Less	EXPENSES
		Material cost	2555.269	2287.859	2062.536
		Employees remuneration and benefits	65.871	103.110	68.640
		Manufacturing, administrative, selling and other expenses	249.520	284.518	262.583
		Increase or decrease in stocks	0.000	0.000	33.190
		TOTAL (B)	2870.660	2675.487	2426.949

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		385.512	706.182	784.104

Less	FINANCIAL EXPENSES (D)		49.035	74.444	115.149

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		336.477	631.738	668.955

Less/ Add	DEPRECIATION/ AMORTISATION (F)		75.259	71.641	70.206

	PROFIT BEFORE TAX (E-F) (G)		261.218	560.097	598.749

Less	TAX (H)		30.491	75.737	197.270

	PROFIT AFTER TAX (G-H) (I)		230.727	484.360	401.479

Add	PRIOR PERIOD INCOME / EXPENSES		0.069	(0.152)	(0.627)
	MAT CREDIT ENTITLEMENT PERTAINING TO EARLIER YEAR		0.000	31.177	0.000
	PRIOR YEAR TAX ADJUSTMENT		0.421	(1.402)	(0.029)
	DEFERRED TAX ASSETS RECOGNIZED RELATING TO EARLIER YEARS		0.000	308.877	0.000
	ADJUSTMENT IN ACCORDANCE WITH TRANSITIONAL PROVISION IN ACCOUNTING STANDARD (AS) -15		0.000	0.000	1.099

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1318.574	495.714	93.792

	BALANCE CARRIED TO THE B/S		1549.791	1318.574	495.714

	Earnings Per Share (Rs.)		9.19	19.30	16.00

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.09	14.32	12.50

Net Profit Margin (PBT/Sales)	(%)	8.12	16.78	18.99

Return on Total Assets (PBT/Total Assets}	(%)	6.91	12.81	22.64

Return on Investment (ROI) (PBT/Networth)		0.15	0.36	0.80

Debt Equity Ratio (Total Liability/Networth)		2.84	3.06	6.48

Current Ratio (Current Asset/Current Liability)		2.32	4.37	1.81

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars

31.03.2010

(Rs. in millions

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

332.117

242.620

232.110

Bankers Charges Report as per Registry

This form is for

Modification of charge

Charge identification number of the modified

80011717

Corporate identity number of the company

U27109GJ2004PLC044249

Name of the company

WELSPUN STEEL LIMITED

Address of the registered office or of the principal place of business in India of the company

S N 650 Village Varsamedi Taluka Anjar, District Kutch-370110, Gujarat, India

Type of charge

Book Debts

Movable Property (not being pledge)

Immovable Property

Particular of charge holder

Punjab National Bank, IIIaco House, Sir P.M. Road, Fort, Mumbai-400001, Maharashtra, India.

cvishwanathan@pnb.co.in

Nature of description of the instrument creating or modifying the charge

No Dues Certificate from Punjab National Bank stating payment of Term Loan of Rs. 120.000 Millions thereby reducing its Term Loan Facilities to Rs. 150.000 Millions , No Dues Certificate from Andhra Bank stating payment of Rs. 58.100 Millions thereby reducing its Term Loan Facilities to Rs. 100.000 Millions and No Dues Certificate from State Bank of India stating full payment of its Term Loan facilities of Rs. 100.000 Millions

Date of instrument Creating the charge

24.06.2010

Amount secured by the charge

Rs.550.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

No change with the present modification

Terms of Repayment

No change with the present modification

Margin

As mentioned in earlier modification

Short particulars of the property charged

No change in the property or assets charged for the Term Loan facility with the present modification

Date of latest modification prior to the present modification

24.06.2006

Particulars of the present modification

3^rd Modification:

The term loan facility of Rs.550.000 millions availed by the company from the PNB consortium, after repayment by the consortium banks, stands as follow:

Particular	Rs. In Millions
Punjab National Bank	150.000
Andhra Bank	100.000
State Bank of Patiala	150.000
State Bank of Indore	150.000
Total	550.000

Fixed Assets:

Freehold Land
Lease Hold Improvement
Building
Plant and Machinery
Officer Equipments
Furniture and Fixtures
Vehicle
Power Plant

PRESS RELEASE

APOLLO MANAGEMENT AND WELSPUN CONCLUDE ONE OF INDIA’S

LARGEST PRIVATE EQUITY INVESTMENTS

Silvasa, August 18, 2011: In the Board meeting held at Silvasa, Board of Directors of Welspun Corp Limited (WCL) authorized the issuance and allotment of CCDs and GDR to certain affiliates of Apollo Global Management, LLC (together with its subsidiaries, Apollo), one of the leading global alternative asset managers, which effectively concludes one of India’s largest PE transactions between Welspun Group (Welspun) and Apollo.

As a part of the total commitment, funds affiliated with Apollo have invested approximately USD 290 million in WCL, of which approximately USD 175 million has been invested by way of the preferential allotment of FCD / CCD (Fully / Compulsorily Convertible Debentures) and approximately USD 115 million by way of non-voting Global Depository Receipts (GDR’s). The FCD’s / CCD’s carry a coupon of 5% and will be mandatorily fully converted within 18 months into equity shares at Rupees 225 per share, which represents 13.3% of the equity capital of WCL. Funds affiliated with Apollo have also subscribed for non-voting GDR’s of USD 115 million at the same price of Rupees 225 per share.

Further, funds affiliated with Apollo have acquired 12.5% of the equity of Welspun Maxsteel Limited (WMSL) from Welspun Steel Limited for a total consideration of approximately USD 31 million. Such funds have also agreed to invest approximately USD 29 million into WMSL to be used for additional capital expenditures.

Mr. Sanjay Patel, Head of International Private Equity and Senior Partner of Apollo Management International LLP and Mr. Mintoo Bhandari, the Managing Director of AGM India Advisors Limited have been appointed to the Board of WMSL as Apollo nominees. Furthermore, Mr. Mintoo Bhandari has also been appointed to the Board of WCL as Apollo nominee.

Apollo and its affiliates are also in active discussions with Welspun Infratech Limited (WITL), a subsidiary of WCL, to explore an additional investment of up to USD 150 million in WITL and its subsidiaries, in the form of debt, equity or a combination of the two. The end use of 2 the funds in WITL will be project specific and the form of such investments is being actively reviewed and considered.

About Welspun Group www.welspun.com

USD 3 billion Welspun Group, is an amalgamation of expertise, resources, opportunities and engineering excellence. With global leadership positions in line-pipe and home textiles, its marquee client list includes most of the Fortune 100 Companies operating in the Oil and Gas and Retail sectors like Chevron, Exxon Mobil, Wal-Mart, and Target amongst others. With a strong foothold in over 50 countries, over 24,000 employees and over 100,000 shareholders, Welspun is one of India's fastest growing conglomerates. Welspun believes in its crucial role as a responsible corporate citizen and practices empowerment of the underprivileged and sustenance of the environment. Guided by the six ‘E's - Enrichment of mind, Enrichment of body, Education, Empathy, Empowerment of Women and Environment sustenance, we believe each and every Welspun employee contributes towards the betterment of the community at large.

About Welspun Corp Ltd. (WCL) www.welspuncorp.com

WCL is a one-stop service provider offering complete pipe solutions with the capability to manufacture line-pipes ranging from ½ inch to 100 inches, along with specialized coating, double jointing and bending. With current capacity of approximately 2 million MTPA in Dahej, Anjar in Gujarat, India, Little Rock, Arkansas in the USA and Saudi Arabia, Welspun takes pride in being a preferred supplier to most of the Fortune 100 Oil and Gas companies. With 360 degree offerings, WCL has undertaken some of the most challenging projects in different parts of the world. The company has further strengthened its services to become an integrated pipe manufacturer by setting up a world class plates and coils manufacturing facility. Since its inception, WCL has consistently excelled in new business ventures and is committed to its strategy of complete integration by being a one stop solution in the line-pipe segment, capturing the entire value chain from manufacturing of plate and coil to line pipe and finally to pipe laying. With business excellence being a clear focus, the company will continue with its clear mandate on innovation, technology, global scale operations and capturing the entire value chain as much as possible to generate value for its stakeholders.

About Welspun Maxsteel Ltd www.welspunmaxsteel.com

Welspun Maxsteel Limited is the largest merchant producer of gas based Direct Reduced Iron (DRI) in the country and the first and the only one of its kind in the world to produce both HBI and DRI from the same reactor using state of the art technology. WMSL was formed on 22 May, 2009 after Welspun Steel Limited completed the acquisition of Vikram Ispat, the Sponge Iron division business of Grasim Industries Limited The facilities are spread across 435 acres of land with a captive Port, and is located in Salav Village in Raigad District of Maharashtra.

About Apollo Global Management, LLC www.agm.com

Apollo is a leading global alternative asset manager with offices in New York, Los Angeles, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under management of approximately $72 billion as of June 30, 2011, in private equity, credit-oriented 3 capital markets and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources.

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	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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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

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

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

RATING EXPLANATIONS

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

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.