MIRA INFORM REPORT

Report Date :

10.02.2012

IDENTIFICATION DETAILS

Name :	RAAJRATNA METAL INDUSTRIES LIMITED (w.e.f. 25.10.1994)
Formerly Known As :	RAAJRATNA CHEMICALS PRIVATE LIMITED
Registered Office :	909 Sakar III, Near Income Tax Circle, Ahmedabad-380014, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.05.1988
Com. Reg. No.:	04-10673
Capital Investment / Paid-up Capital :	Rs.83.622 Millions
CIN No.: [Company Identification No.]	U24231GJ1988PLC010673
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporters and Importer of Stainless Steel Wires.
No. of Employees :	1000 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 4900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 PARTED BY

Name :	Mr. Kinesh Shah
Designation :	Accounts Manager
Contact No.:	91-79-27543681
Date :	09.02.2012

LOCATIONS

Registered Office :	909 Sakar III, Near Income Tax Circle, Ahmedabad-380014, Gujarat, India
Tel. No.:	91-79-27543681/84
Fax No.:	91-79-27543085/26568085
E-Mail :	raajratna@raajratna.com accounts@raajratna.com
Website :	http://www.raajratna.com/
Area :	4000 sq. ft.
Location :	Owned
Head Office :	126, Mittal Court, A Wing, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22829342/44/45/46
Fax No.:	91-22-22829343
E-Mail :	mumbai@raajratna.com
Factory 1 :	Survey No. 146, Bileshwarpura, Ahmedabad-Mehsana Highway, Taluka Kalol, District Gandhinagar, Gujarat, India
Tel. No.:	91-2764-233664/233665
Fax No.:	91-2764-233663
Location :	Owned
Factory 2 :	Survey No. 99, Bileshwarpura, Ahmedabad-Mehsana Highway, Taluka Kalol, District Gandhinagar, Gujarat, India
Branch Office :	Shop No. 7, Anup Estate, Sector 10-A, Main Road, Gurgaon-122001, Haryana, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Babulal Dalichand Sanghvi

Designation :

Chairman and Managing Director

Address :

17, Lakdawala Building, 5 Khetwadi Lane, Mumbai – 400004, Maharashtra, India

Date of Birth/Age :

08.10.1951

Date of Appointment :

01.04.2007

Din No.:

00601159

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29308GJ1991PTC016444	RAAJRATNA ELECTRODES PRIVATE LIMITED	Director	18-10-91	18-10-91	Active	NO
2	U31300GJ2001PTC040056	RAINOX WIRES PRIVATE LIMITED	Director	27-09-01	27-09-01	Amalgamated	NO
3	U27209GJ2004PLC044288	RAAJRATNA VENTURES LIMITED	Director	10-06-04	10-06-04	Active	NO
4	U65990GJ1992PTC018491	RAAJRATNA STOCKHOLDING PRIVATE LIMITED	Director	21-06-05	21-06-05	Active	NO
5	U24231GJ1988PLC010673	RAAJRATNA METAL INDUSTRIES LIMITED	Managing director	01-04-07	27-09-05	Active	NO
6	U51102GJ2006PTC047612	RAAJRATNA STAINLESS PRIVATE LIMITED	Director	27-01-06	27-01-06	Active	NO
7	U40104AP2001PTC045088	VS LIGNITE POWER PRIVATE LIMITED	Director	30-09-08	17-09-07	Active	NO
8	U13200MH2011PTC216947	RAJGURU MINERALS PRIVATE LIMITED	Director	02-05-11	02-05-11	Active	NO

Name :

Mr. Tarachand Dalichand Sanghvi

Designation :

Director

Address :

43, Highway Park Society, Rambaug Road, Sabarmati, Ahmedabad – 380005, Gujarat, India

Date of Birth/Age :

18.07.1947

Date of Appointment :

01.04.2007

Din No.:

00601195

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U29308GJ1991PTC016444	RAAJRATNA ELECTRODES PRIVATE LIMITED	Director	18-10-91	18-10-91	Active	NO
2	U27209GJ2004PLC044288	RAAJRATNA VENTURES LIMITED	Director	17-01-05	17-01-05	Active	NO
3	U24231GJ1988PLC010673	RAAJRATNA METAL INDUSTRIES LIMITED	Whole-time director	01-04-07	27-09-05	Active	NO
4	U51102GJ2006PTC047612	RAAJRATNA STAINLESS PRIVATE LIMITED	Director	27-01-06	27-01-06	Active	NO
5	U45201GJ2010PTC060706	RAAJRATNA NIRMAN PRIVATE LIMITED	Director	13-05-10	13-05-10	Active	NO

Name :

Mr. Arvindkumar Dalichand Sanghvi

Designation :

Managing Director

Address :

15, Shantiniketan Society, Near Gujarat College Road, Ellis Bridge, Ahmedabad – 380006, Gujarat, India

Date of Birth/Age :

01.01.1956

Date of Appointment :

01.04.2007

Din No.:

00435340

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	L27100GJ1990PLC014383	REAL STRIPS LIMITED	Managing director	01-04-09	22-11-90	-	Active	NO
2	U29308GJ1991PTC016444	RAAJRATNA ELECTRODES PRIVATE LIMITED	Managing director	18-10-91	18-10-91	-	Active	NO
3	L17110GJ1988PLC010504	AARVEE DENIMS AND EXPORTS LIMITED	Director	03-02-96	03-02-96	-	Active	NO
4	U31300GJ2001PTC040056	RAINOX WIRES PRIVATE LIMITED	Director	27-09-01	27-09-01	-	Amalgamated	NO
5	U65990GJ1992PTC018491	RAAJRATNA STOCKHOLDING PRIVATE LIMITED	Director	15-11-02	15-11-02	-	Active	NO
6	U27209GJ2004PLC044288	RAAJRATNA VENTURES LIMITED	Director	10-06-04	10-06-04	-	Active	NO
7	U24231GJ1988PLC010673	RAAJRATNA METAL INDUSTRIES LIMITED	Managing director	01-04-07	27-09-04	-	Active	NO
8	U51102GJ2006PTC047612	RAAJRATNA STAINLESS PRIVATE LIMITED	Director	27-01-06	27-01-06	-	Active	NO
9	U24100GJ2010PTC060200	UNICAL CHEMICALS INDIA PRIVATE LIMITED	Director	08-04-10	08-04-10	14-06-10	Active	NO
10	U40106GJ2010PTC061338	EMERAL ENERGY SOLUTIONS PRIVATE LIMITED	Director	29-06-10	29-06-10	27-12-11	Active	NO
11	U40106GJ2010PTC061359	RAAJRATNA RENEWABLE ENERGY PRIVATE LIMITED	Director	29-06-10	29-06-10	-	Active	NO

Name :

Mr. Naresh Babulal Sanghvi

Designation :

Director

Address :

15, Shantiniketan Society, Near Gujarat College Road, Ellis Bridge, Ahmedabad – 380006, Gujarat, India

Date of Birth/Age :

13.06.1973

Date of Appointment :

01.04.2007

Din No.:

00601322

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	U72900GJ2000PTC037745	CONCEPT INFOWAY PRIVATE LIMITED	Director	07-04-00	07-04-00	-	Active	NO
2	U24231GJ1988PLC010673	RAAJRATNA METAL INDUSTRIES LIMITED	Whole-time director	01-04-07	20-10-01	-	Active	NO
3	U65990GJ1992PTC018491	RAAJRATNA STOCKHOLDING PRIVATE LIMITED	Director	15-11-02	15-11-02	-	Active	NO
4	U31300GJ2001PTC040056	RAINOX WIRES PRIVATE LIMITED	Director	25-08-03	25-08-03	-	Amalgamated	NO
5	U27209GJ2004PLC044288	RAAJRATNA VENTURES LIMITED	Managing director	01-06-11	01-04-05	-	Active	NO
6	U40100AP2004PTC076551	RAAJRATNA ENERGY HOLDINGS PRIVATE LIMITED	Director	30-09-08	20-03-08	-	Active	NO
7	U40106GJ2010PTC061338	EMERAL ENERGY SOLUTIONS PRIVATE LIMITED	Director	29-06-10	29-06-10	27-12-11	Active	NO
8	U40106GJ2010PTC061359	RAAJRATNA RENEWABLE ENERGY PRIVATE LIMITED	Director	29-06-10	29-06-10	-	Active	NO

Name :

Mr. Manish Babulal Sanghvi

Designation :

Whole Time Director

Address :

15, Shantiniketan Society, Near Gujarat College Road, Ellis Bridge, Ahmedabad – 380006, Gujarat, India

Date of Birth/Age :

23.05.1980

Date of Appointment :

18.05.2010

Din No.:

03089574

Name :

Mr. Ashimkumar Rakhalraj Banerjee

Designation :

Technical Director

Address :

Evershine Apartment II, J P Road, Andheri West, Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

04.09.1949

Date of Appointment :

01.04.2007

Din No.:

02010493

KEY EXECUTIVES

Name :	Mr. Purvashi D. Adhvaryu
Designation :	Secretary
Address :	20, Avantika Park, Raw House, Behind Sun-N-Step Clue, Memnagar, Ahmedabad-380061, Gujarat, India
Date of Birth/Age :	08.02.1977
Date of Appointment :	01.09.2011
Pan No.:	AFRPA163B
Name :	Mr. Kinesh Shah
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Arvindkumar Dalichand Sanghvi	2637616
Tarachand Dalichand Sanghvi	1244166
Babulal Dalichand Sanghvi	2575417
Pankhiben Babulal Sanghvi	244167
Manish Babulal Sanghvi	346917
Ashok Tarachand Sanghvi	275250
Ashish Arvindbhai Sanghvi	188542
Tarachand Ashokkumar (H.U.F.)	80000
Anil Kumar T Sanghvi	123500
Kunal A Sanghvi	185375
Lilaben A. Sanghvi	114254
Naresh B Sanghvi	232833
Pramila N. Sanghvi	50000
Rakhee V Sanghvi	50000
Vinod B Sanghvi	220000
Sital Manish Sanghvi	50000
Raajratna Stockholding Private Limited, India	13046

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.20
Directors or relatives of directors	99.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporters and Importer of Stainless Steel Wires.

Products :

Product Description	ITC Code
Stainless Steel Wire	722300
Stainless Steel Bright Bars	722230

Exports :

Products :

Stainless Steel Wires

Countries :

· US

· Europe

· Middle East

· Australia

· New Zealand

· Asia

· Germany

Imports :

Products :

Raw Material

Countries :

· Taiwan

· Japan

Terms :

Selling :

Cash and Credit / Depends

Purchasing :

Cash and Credit / Depends

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity
S.S. / Copper Wires	MT	36000
S.S. Scrap	MT	NA
Power Generation	Units	6.75 MW

Actual Production:

Particulars	Unit	Production
		Own	Job Work
S.S. / Copper Wires	MT	27878.968	3162.007
S.S. Scrap	MT	587.848	NA
Power Generation	Units	10206583	NA

GENERAL INFORMATION

Suppliers :

· Universal Profile

· Mukund Limited

Customers :

Retailers and Others [Manufacturer]

· Sudhir Automotive India Private Limited

· Punchmahal Steel Private Limited

No. of Employees :

1000 [Approximately]

Bankers :

· The Bank of Baroda Limited, Ashram Road, Vallabh Sadan, Opposite Natraj Cinema, Ahmedabd-380009, Gujarat, India

· Standard Chartered Bank, Branch C G Road, Ahmedabad, Gujarat, India

· Industrial Development Bank of India Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai-400005, Maharashtra, India

· Axis Bank, Lawgarden Branch

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loan	462.765	502.469
Working capital loans	2279.646	1096.043
Loans taken for fixed assets	0.692	2.735
Total	2743.103	1601.247
Unsecured Loan
Other debt	2.439	31.576
Total	2.439	31.576

Banking Relations :	--
Auditors :
Name :	Mehta Lodha and Company Chartered Accountants
Address :	105, Sakar – I, Opposite Gandhigram Railway Station, Ahmedabad – 380014, Gujarat, India
Pan No.:	AAMFS3865K
Name :	Shah Kantilal and Company Chartered Accountants
Address :	804, Sarap Building, Opposite Navjivan Press, Off Ashram Road, Ahmedabad – 380014, Gujarat, India
Pan No.:	AACFM6805H
Subsidiaries :	· Raajratna Stainless Wire (USA) Inc. · Erre Inox SPA, Italy · Stainless Wire Limited, UK · Raajratna Stockholding Private Limited · Raajratna Electrodes Private Limited · Raajratna Fasteners Private Limited · Real Strips Limited · Concept Infoway Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8362166	Equity Shares	Rs.10/- each	Rs.83.622 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		83.622	83.622	83.622
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1166.249	976.054	938.952
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1249.871	1059.676	1022.573
LOAN FUNDS
1] Secured Loans		2743.103	1601.247	1191.042
2] Unsecured Loans		2.439	31.576	57.371
TOTAL BORROWING		2745.542	1632.823	1248.413
DEFERRED TAX LIABILITIES		167.000	145.853	117.360
TOTAL		4162.413	2838.352	2388.346
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1270.445	1166.929	1116.537
Capital work-in-progress		36.625	36.310	8.799
INVESTMENT		48.580	39.074	15.656
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	787.734	543.068	317.325
	Sundry Debtors	1863.177	1092.659	813.050
	Cash & Bank Balances	3.689	1.285	35.908
	Other Current Assets	307.389	255.668	174.586
	Loans & Advances	220.160	83.401	63.653
Total Current Assets		3182.149	1976.081	1404.522
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	291.252	312.577	135.364
	Other Current Liabilities	20.140	12.191	10.970
	Provisions	63.994	55.274	10.834
Total Current Liabilities		375.386	380.042	157.168
Net Current Assets		2806.763	1596.039	1247.354
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4162.413	2838.352	2388.346

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5234.203	3085.665	3667.086
		Other Income	86.730	124.530	102.678
		TOTAL (A)	5320.933	3210.195	3769.764
Less	EXPENSES
		Consumption Materials Changes Inventories	3918.455	2325.424
		Manufacturing Service Costs	376.674	261.638
		Employee Related Expenses	124.063	95.510	3499.109
		Administrative Selling Other Expenses	262.478	172.983
		Prior Period Items	(0.041)	3.981
		TOTAL (B)	4681.629	2859.536	3499.109
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		639.304	350.659	270.655
Less	FINANCIAL EXPENSES (D)		160.301	100.130	144.412
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		479.003	250.529	126.243
Less/ Add	DEPRECIATION/ AMORTISATION (F)		126.068	111.178	77.508
	PROFIT BEFORE TAX (E-F) (G)		352.935	139.351	48.735
Less	TAX (H)		114.146	53.494	22.667
	PROFIT AFTER TAX (G-H) (I)		238.789	85.857	26.068
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		796.054	779.069	748.374
Add	PRIOR PERIOD TO ADJUSTMENT		0.000	0.000	2.106
Add	PROFIT AMALGAMATION		0.000	0.000	22.303
Less	APPROPRIATIONS
		Transfer to General Reserve	50.000	20.117	10.000
		Proposed Dividend	41.811	41.811	9.783
		Corporate Dividend Tax	6.783	6.944	0.000
	BALANCE CARRIED TO THE B/S		936.249	796.054	779.068
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3739.044	1984.765	2597.458
	IMPORTS
		Raw Materials	965.819	701.717	646.210
		L P G	0.000	0.000	5.459
		Stores & Spares	51.159	33.012	29.122
		Capital Goods	109.119	29.651	158.473
		Trading Goods	0.000	0.307	63.548
	TOTAL IMPORTS		1126.097	764.687	902.812
	Earnings Per Share (Rs.)		28.56	10.27	3.37

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.49	2.67	0.69
Net Profit Margin (PBT/Sales)	(%)	6.63	4.52	1.33
Return on Total Assets (PBT/Total Assets}	(%)	7.93	4.43	1.93
Return on Investment (ROI) (PBT/Networth)		0.28	0.13	0.05
Debt Equity Ratio (Total Liability/Networth)		2.50	1.90	1.37
Current Ratio (Current Asset/Current Liability)		8.47	5.20	8.94

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	291.252	312.577	135.364

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	No
12) Profitability for last three years	No
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	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OPERATIONS AND FUTURE PROSPECTS

The Company has performed satisfactorily during the year under consideration; Net Sales has stood at Rs.5234.200 millions against Rs.3085.700 millions compared to previous year and Net profit after tax stood at Rs. 254.000 millions against Rs.89.800 millions compared to previous year. The Net sales increased by 69.63 % during the current year when compared with previous year in value terms and the sales in quantity is increased by 37.95 %, when compared with previous year.

The Company has installed Profile Rolling Mill to manufacture any shape of wire, during the year which has already started commercial production in March 2011.

FUTURE PROSPECTUS

The Company has bought Nickel Platting Plant from Sweden to manufacture Nickel Coated Wire It is expected to be commissioned by end of September 11 and commercial production is expected to start during 1^st half of October 2011. Based on the market feedback from the customers that demand is growing and economic scenario seems to be further accelerated, to overall growth including their sector, they may be able to have edge over their domestic and overseas competitors in view of the latest technology being used by the Company.

TRADE REFERENCES:

· Universal Profile

· Mukund Limited

· Sudhir Automotive India Private Limited

· Punchmahal Steel Private Limited

FIXED ASSETS

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Air Conditioner

· Office Equipments

· Computers

· Vehicles

· Wind Mill Project

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.49.29
UK Pound	1	Rs.78.10
Euro	1	Rs.65.59

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.