MIRA INFORM REPORT

Report Date :

11.12.2012

IDENTIFICATION DETAILS

Name :	SONA ALLOYS PRIVATE LIMITED
Registered Office :	4^th Floor, Medi-Max House, Opposite Karnavati Hospital, Ellis Bridge, Ahmedabad – 380 006, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.01.2007
Com. Reg. No.:	04-049708
Capital Investment / Paid-up Capital :	Rs.1667.934 Millions
CIN No.: [Company Identification No.]	U27107GJ2007PTC049708
TAN No.: [Tax Deduction & Collection Account No.]	AHMS13750C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 7593000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The reserves of the company appears insufficient. The profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A4+ (Short Term Bank Facility)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	April 2, 2012

Rating Agency Name	CARE
Rating	BB+ (Long Term Bank Facility)
Rating Explanation	Moderate risk of default.
Date	April 2, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered / Head Office :	4^th Floor, Medi-Max House, Opposite Karnavati Hospital, Ellis Bridge, Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-40071603/ 40071604-05
Fax No.:	91-79-40071607
E-Mail :	hiteshshah@sonaalloys.com hemangshah@sonaalloys.com info@sonaalloys.com hiteshshah@medimaxindia.com sonasteel@gmail.com vijaykumar@sonaalloys.com
Website :	http://www.sonaalloys.com
Location :	Owned by Sister concern company
Factory :	C-1, MIDC, Village Lonand, Taluka Khandala, District Satara – 415 521, Maharashtra, India
Tel No.:	91-2169-226826/ 226828
Fax No.:	91-2169-226826
Branch Office:	C2/15, Brahma Estate, NIBM Road, Kondwa, Pune – 411 048, Maharashtra, India
Tel No.:	91-20-26831546/ 30428329
Fax No:	91-20-26837239

DIRECTORS

As on 30.09.2011

Name :

Mr. Rishabhkumar Sonaram Jain

Designation :

Director

Address :

2259-B, Agrasen Bhawan, Near H.K. Dave’s Bungalow, Bhavnagar – 364 002, Gujarat, India

Date of Birth/Age :

10.10.1954

Date of Appointment :

04.01.2007

DIN No.:

00933473

Voter ID No.:

CFP4005898

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27107GJ2007PTC049708	SONA ALLOYS PRIVATE LIMITED	Director	04/01/2007	04/01/2007	-	Active	NO
2	U74999GJ2009PTC055956	YAMUNA ADVISORY PRIVATE LIMITED	Director	23/01/2009	23/01/2009	12/03/2010	Active	NO
3	U61200GJ2009PTC058142	BHIKKAMAL CHHOTELAL EXIM PRIVATE LIMITED	Director	17/09/2009	17/09/2009	-	Active	NO

Name :

Mr. Asit Pawankumar Jain

Designation :

Director

Address :

E-302, Ashawari, Behind Fun Republic, Near Karnavati Club, S.G. Highway, Satellite, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

12.09.1976

Date of Appointment :

04.01.2007

DIN No.:

01353705

Voter ID No.:

LPZ8935751

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U15133UP1997PTC021486	GANPATI COLD WAREHOUSE PRIVATE LIMITED	Director	03/03/1997	03/03/1997	-	Active	NO
2	U33112GJ1998PTC034598	AMJAY MEDIMAX (INDIA) PRIVATE LIMITED	Director	10/06/1999	10/06/1999	-	Active	NO
3	U67120GJ1996PTC030017	NEUROMED IMAGING CENTRE PRIVATE LIMITED	Director	10/11/2003	10/11/2003	-	Active	NO
4	U27107GJ2007PTC049708	SONA ALLOYS PRIVATE LIMITED	Director	04/01/2007	04/01/2007	-	Active	NO
5	U74999GJ2009PTC055956	YAMUNA ADVISORY PRIVATE LIMITED	Director	20/03/2012	23/01/2009	22/03/2012	Active	NO
6	U35100GJ2009PTC056426	SONA SHIPBREAKING PRIVATE LIMITED	Director	24/03/2009	24/03/2009	-	Strike off	NO
7	U51101GJ2011PTC065854	SONA MINERAL EXIM PRIVATE LIMITED	Director	10/06/2011	10/06/2011	-	Active	NO
8	U74140GJ2010PTC060773	GANGA ADVISORY PRIVATE LIMITED	Director	20/03/2012	20/03/2012	22/03/2012	Active	NO

Name :

Mr. Amit Ratankumar Jain

Designation :

Director

Address :

E-302, Ashawari, Behind Fun Republic, Near Karnavati Club, S.G. Highway, Satellite, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

10.07.1973

Date of Appointment :

01.01.2008

DIN No.:

01353681

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U67120GJ1996PTC030017	NEUROMED IMAGING CENTRE PRIVATE LIMITED	Director	15/10/1997	15/10/1997	-	Active	NO
2	U33112GJ1998PTC034598	AMJAY MEDIMAX (INDIA) PRIVATE LIMITED	Director	31/08/1998	31/08/1998	-	Active	NO
3	U27107GJ2007PTC049708	SONA ALLOYS PRIVATE LIMITED	Director	01/01/2008	01/01/2008	-	Active	NO
4	U51101GJ2011PTC065854	SONA MINERAL EXIM PRIVATE LIMITED	Director	10/06/2011	10/06/2011	-	Active	NO

KEY EXECUTIVES

Name :	R. Vijayakumar
Designation :	Secretary
Address :	C-12, Shrinand Nagar, Part One, Vejalpur, Ahmedabad – 380 051, Gujarat, India
Date of Birth/Age :	27.01.1957
Date of Appointment :	07.05.2011
PAN No.:	AAVPR3039F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares	Percentage of holding
Amit Ratankumar Jain	5372123	3.22
Rishabhkumar Sonaram Jain	5617482	3.37
Asit Pawankumar Jain	1413345	0.85
Neuromed Imaging Centre Private Limited, India	55870527	33.50
Ganpati Cold Ware House Private Limited, India	897602	0.54
Narayani Vyapar Private Limited, India	29016065	17.40
Amjay Medimax India Private Limited, India	14225150	8.53
Ratankumar Sonaram Jain	499500	0.30
Tulsi Trimpex Private Limited, India	33935465	20.35
Krist Corporation, USA	912487	0.55
Sachin Patel, USA	378221	0.23
Ganga Advisory Private Limited, India	150000	0.09
Gurukul Dealers Private Limited, India	7595450	4.55
Yamuna Advisory Private Limited, India	10910000	6.54
Total	166793417	100.00

As on 30.03.2012

Names of Allottees	No. of Shares
Rishabhkumar Sonaram Jain	12680
Ganpati Cold Ware House Private Limited, India	600000
Tulsi Trimax Private Limited, India	5610000
A.S. Perrum Private Limited, India	1000000
Purple Tradecom Private Limited, India	200000
Total	7422680

As on 30.09.2011

Equity Shares Break Up Category	Percentage
Bodies corporate	92.04
Directors or relatives of directors	7.96
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Steel.
Products :	v Pig Iron v Steel Billets v Rolled Products v Granulated Slag

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	2010-11
Licensed Capacity	336000
Installed Capacity	336000
Actual Production – Pig Iron (In M.T.)	58035.42

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v State Bank of India, Industrial Finance Branch, Gujarat Bhavan, Opposite M.J. Library, Ellis Bridge, Ahmedabad – 380 006, Gujarat, India

v State Bank of Saurashtra, Industrial Finance Branch, Gujarat Bhavan, Near M.J. Library, Ellis Bridge, Ahsram Road, Ahmedabad – 380 006, Gujarat, India

v Bank of India, Ahmedabad Corporate Banking Branch, 2^nd Floor, Bank of India Building, Bhadra, Ahmedabad – 380 001, Gujarat, India

v State Bank of India, Industrial Finance Branch, 1^st Floor, Neptune Tower, Annexe, Opposite Gandhigram R.S., Off Ashram Road, Ahmedabad – 380 009, Gujarat, India

v Allahabad Bank

v Dena Bank

v State Bank of Indore

v State Bank of Mysore

v State Bank of Patiala

v State Bank of Travancore

v Union Bank of India

Facilities :

Secured Loan	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Term Loans from Banks	3728.674	1889.618
Interest accrued but not due on loans (All the above facilities are secured against hypothecation of plant and machinery and equitable mortgage of factory land and building and further guaranteed by directors)		17.127
Total	3728.674	1906.745

Unsecured Loan	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Buyers credits from banks	367.383	586.287
Interest accrued on buyers credit		4.700
Incorporate Borrowings		3.897
Total	367.383	594.884

Banking Relations :	--
Auditors :
Name :	Sunil Poddar and Company Chartered Accountants
Address :	301-305, Vrajbhumi complex, B/H Shilp Buildings, Off C. G. Road, Navrangapur, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26402893/ 26431097
Fax No.:	91-79-26462614
PAN No.:	ABEFS3044F
Related Parties :	v Neuromed Imaging Centre Private Limited, India v Ganga Advisory Private Limited, India v Gurukul Dealers Private Limited, India v Narayani Vyapar Private Limited, India v Tulsi Trimpex Private Limited, India v Yamuna Advisory Private Limited, India v Shree Krishna Ship Breaking v Bhikkmal Chhotelal Exim Private Limited v Amjay Medimax India Private Limited, India

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000000	Equity Shares	Rs.10/- each	Rs.2000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
174216097	Equity Shares	Rs.10/- each	Rs.1742.161 Millions

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
175000000	Equity Shares	Rs.10/- each	Rs.1750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
166793417	Equity Shares	Rs.10/- each	Rs.1667.934 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		1667.934	287.708	138.249
2] Share Application Money		220.100	0.000	41.563
3] Reserves & Surplus		10.272	862.825	414.447
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1898.306	1150.533	594.259
LOAN FUNDS
1] Secured Loans		3728.674	1906.745	690.871
2] Unsecured Loans		367.383	594.884	55.955
TOTAL BORROWING		4096.057	2501.629	746.826
DEFERRED TAX LIABILITIES		3.210	0.000	0.000
TOTAL		5997.573	3652.162	1341.085
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3789.774	5.538	3.210
Capital work-in-progress		1712.591	3474.424	1243.635
INVESTMENT		60.000	67.500	60.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1609.059	0.000	0.000
	Sundry Debtors	120.141	0.000	0.000
	Cash & Bank Balances	196.006	57.878	13.592
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	293.102	166.547	35.107
Total Current Assets		2218.308	224.425	48.699
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1664.954	72.884	8.028
	Other Current Liabilities	118.997	49.552	7.476
	Provisions	2.517	0.834	0.000
Total Current Liabilities		1786.468	123.270	15.504
Net Current Assets		431.840	101.155	33.195
MISCELLANEOUS EXPENSES		3.368	3.545	1.045
TOTAL		5997.573	3652.162	1341.085

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income from Operation	921.550	0.000	0.000
		Other Income	55.614	0.000	0.000
		TOTAL (A)	977.164	0.000	0.000
Less	EXPENSES
		Increase/ Decrease in Stock	(625.361)	0.000	0.000
		Material Consumed	1240.229	0.000	0.000
		Manufacturing Expenses	136.114	0.000	0.000
		Administrative, Selling & General Expenses	62.243	0.000	0.000
		Miscellaneous Expenses w/off	0.178	0.000	0.000
		TOTAL (B)	813.403	0.000	0.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		163.761	0.000	0.000
Less	FINANCIAL EXPENSES (D)		105.128	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		58.633	0.000	0.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		46.002	0.000	0.000
	PROFIT BEFORE TAX (E-F) (G)		12.631	0.000	0.000
Less	TAX (H)		3.210	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		9.421	0.000	0.000
	Earnings Per Share (Rs.)		0.05	0.00	0.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.96	0.00	0.00
Net Profit Margin (PBT/Sales)	(%)	1.37	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.21	0.00	0.00
Return on Investment (ROI) (PBT/Networth)		0.01	0.00	0.00
Debt Equity Ratio (Total Liability/Networth)		3.10	2.28	1.28
Current Ratio (Current Asset/Current Liability)		1.24	01.82	3.14

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	No
30) Major Shareholders, if available	Yes
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	Yes
34) External Agency Rating, if available	Yes

Note:

The Registered Office of the company has been shifted from 403, Sakar – I, Opposite Nehru Bridge, Ashram Road, Ahmedabad – 380 006, Gujarat, India, to the present address w.e.f. 01.01.2008.

OPERAITIONAL PERFORMANCE:

During the year, the company successfully commenced the commercial operations of its 0.3 MTPA Integrated Steel Plant. The company produced 58035.42 MT Pig Iron and achieved Gross Sales of Rs.1041.000 millions, since the commencement of its commercial operations on 26.11.2010. The company did face some teething problems in stabilizing of its operations and the plant could get stabilized during the end of the March, 2011. The Directors inform the members that the company will see fully stabilized operations during the FY 2011-12, with targeted sales of Rs.8000.000 millions.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27107GJ2007PTC049708
Name of the company	SONA ALLOYS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	4^th Floor, Medi-Max House, Opposite Karnavati Hospital, Ellis Bridge, Ahmedabad – 380 006, Gujarat, India E-Mail: vijaykumar@sonaalloys.com
This form is for	Modification of charge
Charge identification number of the modified	10134430
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	State Bank of India, Industrial Finance Branch, 1^st Floor, Neptune Tower, Annexe, Opposite Gandhigram R.S., Off Ashram Road, Ahmedabad – 380 009, Gujarat, India E-Mail: sbi.60327@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Joint Deed of Hypothecation with State Bank of India, being consortium leader-enhancing the present 1. Working Capital limit (Fund Based) to Rs.2839.200 millions, 2. Term Loan Rs.4274.900 millions and New Corporate Loans of Rs.446.000 millions aggregating to Rs.7560.100 millions (earlier charge registered for Rs.7310.100 millions on 30.07.2012.)
Date of instrument Creating the charge	08.08.2012
Amount secured by the charge	Rs.7560.100 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per agreement Terms of Repayment: As per agreement Margin: As per agreement Extent and Operation of the charge: Securing (1) current assets for Working Capital limits and Corporate Loan as 1^st charge and for Term Loans (Outstanding and New) as 2^nd charge and (2) on immovable assets at Plot No.C1 and C1 Part at MIDC, Lonand, Industrial Area, Village Lonand, Taluka Khandala, District Satara (Maharashtra) for Working capital as 2^nd Charge and for Term Loans (Outstanding and New) as 1^st Charge.
Short particulars of the property charged	(1) Entire Current assets of the Company and (2) All piece or parcel of leasehold land known as Plot No.C1 and C-1/ part in the Lonand Industrial Area, District Satara, Maharashtra admeasuring 36,600 Sq. Mtrs. and 5,20,873 Sq. Mtrs. respectively together with all buildings and structures thereon, all Plants and Machinery attached to the earth or permanently fastened to anything to the earth, both present and future
Particulars of the present modification	Charge on the Current assets and Fixed Assets of the Company increased from Rs.7310.100 millions registered by MCA on 30.07.2012 to Rs.7560.100 millions

FIXED ASSETS:

v Vehicles

v Computer

v Office Equipments

v Furniture and Fixtures

v Land and Development

v Factory Building

v Electrical Installation

v Plant and Machinery

v Computer Software

WEBSITE DETAILS:

PROFILE:

Subject having registered office in Ahmedabad was incorporated as private limited company on January 4, 2007 with an objective to set up a greenfield mini integrated steel plant. The company is promoted by Jain group from Ahmedabad who are already in ship breaking and steel trading business besides interest in other areas such as health care, horticulture and industrial gases. The company has been set up to fulfil the long cherished dream of group founder Shri Sonaram Jain to manufacture primary steel.

MILESTONES

Sr. No	Milestone	Date
1	Incorporation of company	January 4, 2007
2	Possession of land	June 7, 2007
3	MOU with Maharashtra Government	June 18,2007
4	Ordering of rolling mill package	August 1, 2007
5	Appointment of MN Dastur as main consultant	October 6, 2007
6	Start of site activities	November 5, 2007
7	Financial closure	December 2007
8	Environmental clearance	January 30, 2008
9	Ordering of blast furnace package	January 31, 2008
10	Ordering of sinter plant package	January 31, 2008

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 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.54.34
UK Pound	1	Rs.87.09
Euro	1	Rs.70.13

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--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		27

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.