MIRA INFORM REPORT

Report Date :

23.01.2012

IDENTIFICATION DETAILS

Name :	SNAM ALLOYS PRIVATE LIMITED
Registered Office :	21 (E), Industrial Estate, Attibele, Anekal Taluk, Bangalore – 562107, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.11.1985
Com. Reg. No.:	08-007257
Capital Investment / Paid-up Capital :	Rs.9.600 Millions
CIN No.: [Company Identification No.]	U27101KA1985PTC007257
TAN No.: [Tax Deduction & Collection Account No.]	BLRS01125F
PAN No.: [Permanent Account No.]	AACCS7473G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer, Exporter and Trader of Alloys, Silicons and Carbides, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. 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. Profit and loss account of the company for the year 2010-2011 is not available.

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

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	21 (E), Industrial Estate, Attibele, Anekal Taluk, Bangalore – 562107, Karnataka, India
Tel. No.:	91-80-25587710
Fax No.:	91-80-41320199/ 91-413-2699199
E-Mail :	snamgroup@gmail.com snam@blr.vsnl.net.in
Website :	http://www.sapl.com
Factory :	Kariamanickam Village, Nettapakkam, Pondicherry - 605106, India
Tel. No.:	91-413-2699440 / 2699106
Fax No.:	91-413-2699199
Area :	13 acres
Location :	Owned
Corporate Office :	40-A, 1^st Cross, Gupta Layout, Bangalore-560008, Karnataka, India
Tel. No.:	91-80-25587710
Fax No.:	91-4344-276880
E-Mail :	snam@md2.vsnl.net.in/ snamgroup@sify.com
Area :	1500 sq. ft.
Location :	Rented

DIRECTORS

As on 30.09.2011

Name :

Mr. Muralidhar Dhuddu

Designation :

Whole Time Director

Address :

116, 1^st Cross, Ulsoor Road, Bangalore – 560042, Karnataka

Date of Birth/Age :

25.11.1951

Qualification :

FCA

Date of Appointment :

05.11.1985

DIN :

00409842

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	U29200KA1979PTC003670	SNAM ABRASIVES PRIVATE LIMITED	Director	3/12/1979	3/12/1979	Active	NO
2	U74999KA1983PTC005586	SNAM MICRO ABRASIVES PRIVATE LIMITED	Director	21/09/1983	21/09/1983	Active	NO
3	U27101KA1985PTC007257	SNAM ALLOYS PRIVATE LIMITED	Director	5/11/1985	5/11/1985	Active	NO
4	U85110KA1994PLC015539	INNOVA SECURITIESANDINVESTMENTS LIMITED	Director	15/12/1995	15/12/1995	Active	NO
5	U72900KA2000PTC026350	TECHWEB TECHNOLOGIES PRIVATE LIMITED	Director	17/08/2000	17/08/2000	Active	NO
6	U91110KA1938NPL000244	FEDERATION OF KARNATAKA CHAMBERS OF COMMERCE AND INDUSTRY	Director	30/06/2006	30/06/2006	Active	NO
7	U45203TZ2007PLC013841	SIPCOT HOSUR INFRASTRUCTURE LIMITED	Director	2/8/2007	3/7/2007	Strike off	NO
8	U27107KA2007PLC044365	JAIN AND SNAM ALLOYS (INDIA) LIMITED	Director	14/11/2007	14/11/2007	Active	NO
9	U93030TZ2010NPL016202	HOSUR SIPCOT INFRASTRUCTURE DEVELOPMENT ASSOCIATION	Director	8/7/2010	8/7/2010	Active	NO

Name :

Mr. Sivaraman Thammanur Venkatesan

Designation :

Director

Address :

No. 18, 2^nd Cross, Kumaran Nagar, Lawspet, Pondicherry, Pondicherry- 605008

Date of Birth/Age :

02.06.1943

Qualification :

B.E. Chemical

Date of Appointment :

05.11.1985

DIN :

00501138

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	U29200KA1979PTC003670	SNAM ABRASIVES PRIVATE LIMITED	Director	3/12/1979	3/12/1979	Active	NO
2	U74999KA1983PTC005586	SNAM MICRO ABRASIVES PRIVATE LIMITED	Director	21/09/1983	21/09/1983	Active	NO
3	U27101KA1985PTC007257	SNAM ALLOYS PRIVATE LIMITED	Director	5/11/1985	5/11/1985	Active	NO
4	U27107KA2007PLC044365	JAIN AND SNAM ALLOYS (INDIA) LIMITED	Director	14/11/2007	14/11/2007	Active	NO

Name :

Mr. Naik Dayanand Hiriadka

Designation :

Director

Address :

Laxmidaya, 126, Charles Campbell Road, Cox Town, Bangalore- 560005, Karnataka, India.

Date of Birth/Age :

14.02.1938

Qualification :

B.E. Electrical and Mechanical

Date of Appointment :

05.11.1985

DIN :

00501302

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	U29200KA1979PTC003670	SNAM ABRASIVES PRIVATE LIMITED	Director	3/12/1979	3/12/1979	Active	NO
2	U74999KA1983PTC005586	SNAM MICRO ABRASIVES PRIVATE LIMITED	Director	21/09/1983	21/09/1983	Active	NO
3	U27101KA1985PTC007257	SNAM ALLOYS PRIVATE LIMITED	Director	5/11/1985	5/11/1985	Active	NO
4	U27107KA2007PLC044365	JAIN AND SNAM ALLOYS (INDIA) LIMITED	Director	14/11/2007	14/11/2007	Active	NO

Name :

Mr. Srikanth Sivaraman

Designation :

Whole-time Director

Address :

No. 18 Second Cross, Kumaran Nagar, Lawspet, Pondicherry-605008, Pondicherry, India

Date of Birth/Age :

04.09.1970

Qualification :

B.E. Chemical

Date of Appointment :

09.07.2011

DIN :

03109254

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Muralidhar Dhuddu	25616
Sivaraman Thammanur Venkatesan	25616
Naik Dayanand Hiriadka	25616
Vasumati Sivaraman	6384
Saraswati D. Naik	6384
Veena Muralidhar	6384
Total	96000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer, Exporter and Trader of Alloys, Silicons and Carbides, etc.

Products :

• Alloys
• Silicons
• Carbides

· Ferro Graphite Recarboriser

· Ferro Silicon Magnesium

· Incoulants

Products Description	ITC Code No.
Ferro Silicon Metric Tonne	72022100
Ferro Silicon Magnesium Metric Tonne	72029922

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Ferro Silicon Metric Tonne	MT	-	14567.41
Ferro Silicon Magnesium Metric Tonne	MT	-	10066.62

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, Overseas Branch, LHO Compound, St. Marks Road, Bangalore-560001, Karnataka, India
• Citi Bank N.A., 506 - 507, Level 5, NO.30, M G Road, Prestige Meridain 2, Bangalore – 560001, Karnataka, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Open Cash Credit with SBI secured by hypothecation of stock of raw material, finished goods etc and mortgage of land and building and plant and machinery of Ferro Silicon unit and Ferro Silicon Magnesium unit at Pondicherry and Pakala Andhra Pradesh	205.429	165.474
Term Loan from SBI Bangalore (Secured by mortgage of land and building, plant and machinery and hypothecation of movable properties of Ferro Silicon, Ferro Silicon Magnesium unit at Pakala, Andhra Pradesh)	60.035	77.547
Total	265.464	243.021
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Deposit related parties	10.931	12.631
Other Debt	0.344	0.574
Total	11.275	13.205

Banking Relations :	--
Auditors :
Name :	S. Anantha and Company Chartered Accountants
Address :	S. V. Complex, 2^nd Floor, No. 55, K. R. Road, Basavanagudi, Bangalore-560004, Karnataka, India
Tel. No.:	91-80-26520758/41469306
Fax No.:	91-80-26620057/ 26603052
E-Mail :	sonduras@bgl.vsnl.net.in sonduras@airtelmail.in sonduras@dataone.in
PAN :	AABFA8541R / AAIPA9734B
Related Parties : [parties under common control with whom transaction have taken place] [As on 31.03.2010]	Snam Abrasives Private Limited Snam Micro Abrasives Private Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs.100/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96,000	Equity Shares	Rs.100/- each	Rs.9.600 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
96,000	Equity Shares	Rs.100/- each	Rs.9.600 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96,000	Equity Shares	Rs.100/- each	Rs.9.600 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		9.600	9.600	9.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		391.768	257.760	172.694
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		401.368	267.360	182.294
LOAN FUNDS
1] Secured Loans		265.464	243.021	162.353
2] Unsecured Loans		11.275	13.205	12.991
TOTAL BORROWING		276.739	256.226	175.344
DEFERRED TAX LIABILITIES		10.534	11.179	0.144
TOTAL		688.641	534.765	357.782
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		226.562	218.791	157.187
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		10.723	10.723	10.724
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	284.142	167.915	113.357
	Sundry Debtors	274.701	217.742	100.641
	Cash & Bank Balances	0.518	1.554	10.659
	Other Current Assets	7.345	6.590	0.000
	Loans & Advances	51.825	34.739	79.329
Total Current Assets		618.531	428.540	303.986
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	130.380	72.820	96.692
	Other Current Liabilities	28.427	44.872	12.776
	Provisions	8.368	5.597	4.647
Total Current Liabilities		167.175	123.289	114.115
Net Current Assets		451.356	305.251	189.871
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		688.641	534.765	357.782

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	1320.197	1673.383
		Other Income	4.470	0.317
		TOTAL (A)	1324.667	1673.700
Less	EXPENSES
		Raw Material Consumed	751.217	1202.698
		Change in Opening and Closing Stock	(6.948)	(17.496)
		Manufacturing, Administrative and Selling Expenses	417.287	349.767
		TOTAL (B)	1161.556	1534.969
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		163.111	138.731
Less	FINANCIAL EXPENSES (D)		10.537	15.388
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		152.574	123.343
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.276	5.617
	PROFIT BEFORE TAX (E-F) (G)		128.298	117.726
Less	TAX (H)		43.233	46.954
	PROFIT AFTER TAX (G-H) (I)		85.065	70.772
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports U-II	451.103	986.268
		Freight on Exports U-II	9.017	25.107
		FOB Value of Exports EOU	96.526	0.000
		Freight on Exports EOU	1.294	0.000
	TOTAL EARNINGS		557.940	1011.375
	IMPORTS
		Raw Materials	398.787	725.473
		Capital Goods	4.739	0.759
	TOTAL IMPORTS		403.526	726.232
	Earnings Per Share (Rs.)		1483.09	944.40

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	6.42	4.23
Net Profit Margin (PBT/Sales)	(%)	NA	9.72	7.04
Return on Total Assets (PBT/Total Assets}	(%)	NA	19.82	25.53
Return on Investment (ROI) (PBT/Networth)		NA	0.48	0.65
Debt Equity Ratio (Total Liability/Networth)		1.11	1.42	1.59
Current Ratio (Current Asset/Current Liability)		3.70	3.47	2.66

LOCAL AGENCY FURTHER INFORMATION

Contingent Liabilities :

Rs. in millions

PARTICULARS	31.03.2011	31.03.2010
Guarantees provided by Bankers Corporate Guarantee in respect of loan taken from Bank by other companies under the same management, to the extent of working capital facilities actually utilised. The maximum limit in respect of such loan is Rs.95.000 millions (Actual utilisation as of the year end is Rs.26.469 millions)	19.871	17.871

Bankers Charges Report as per Registry

Corporate identity number of the company	U27101KA1985PTC007257
Name of the company	SNAM ALLOYS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	21(E), Industrial Estate, Attibele, Anekal Taluk, Bangalore – 562107, Karnataka, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Others- Stocks, Plant and Machinery
Particular of charge holder	Citi Bank N.A., 506 - 507, Level 5, NO.30, M G Road, Prestige Meridain 2, Bangalore – 560001, Karnataka, India Email : mounika.kancheti@citi.com
Nature of instrument creating charge	Goods Security Agreement.
Date of instrument Creating the charge	03.10.2011
Amount secured by the charge	Rs.35.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - As may be stipulated by the bank from time to time. Terms of Repayment - All facilited are repayable on demand. Margin - As agreed from time to time. Extent and Operation of the charge - First Pari passu charge by hypothecation of the all borrower's movable and non-movable assets(including Plant and Machinery, Stocks and Book Debts forming part of its current assets both present and future. Second charge on plant and Machinery (Assets subject to Specific charge for terms loans availed by the borrower) shall be remain as security to the bank for the due payment by the borrower to the bank on demand.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Pari passu charge by hypothecation of the all movable and non-movable assets (including Plant and Machinery, Stocks and Book Debts forming part of its current assets both present and future. Second charge on plant and Machinery (Assets subject to Specific charge for terms loans availed by the borrower) shall be remain as security to the bank for the due payment by the borrower to the bank on demand.

This form is for	Modification of charge
Charge identification number of the modified	80036101
Corporate identity number of the company	U27101KA1985PTC007257
Name of the company	SNAM ALLOYS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	21 (E), Industrial Estate, Attibele, Anekal Taluk, Bangalore – 562107, Karnataka, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge Immovable Property
Particular of charge holder	State Bank of India, Overseas Branch, LHO Compound, St. Marks Road, Bangalore-560001, Karnataka, India
Email	rjr.cs69@gmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental agreement of hypothecation of goods and assets for increase in the overall limit form c-2a; letter regarding the grant of individual limits within the overall limit form c-5 and memorandum for recording extension of mortgage by deposit of title deeds form - b (all pertain to the same charge)
Date of instrument Creating the charge	24.01.2011
Amount secured by the charge	Rs.602.100 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Snam Alloys Private Limited: WCL - at 5.50% above br, effective rate 13.10% p.a. At monthly rests. Snam Abrasives Private Limited: as per annexure i enclosed. Terms of Repayment Snam Alloys: WCL - on demand. Advance is for a period of 12 months. Margin RM/components/consumables/spares - 25% Sip/fg/receivables - 30% Extent and Operation of the charge Exclusive first charge on the assets of the company and to the full extent. Company current assets and other movables cover to the extent of Rs. 604.300 Millions and immovable property cover to the extent of Rs. 602.100 Millions. Others Snam Alloys Private Limited limit Rs. 506.700 Millions and Snam Abrasives Private Limited limit Rs. 95.400 Millions, total Rs. 602.100 Millions. (Balance amount of Rs. 97.600 Millions (TL) separate charge registered for original limit and for the reduced limit (present o/s) is being filed now, vide charge id no. 10134886).
Short particulars of the property charged	I) Hypo. of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, II) stores, components, furniture and fittings; other movables, plant and machinery, vehicles and assets to be purchased out of bank finance III) EM of immovable property situated at No. 75/1, 86/5, 80/2, 86/6, 81/1B, 74/3, 80/1, 81/2, 74/2 village No. 55, Kariyannickam Nittapakkam Panchayathi, Pondicherry.
Date of latest modification prior to the present modification	06.11.2008
Particulars of the present modification	The amount secured by the charge stands increased to Rs. 602.100 Millions. Above continue for the enhanced limit. All other terms and conditions remain unchanged.

Fixed Assets:

v Land

v Building

v Plant and Machinery

v Lab Equipments

v Air Conditioners

v Vehicles

v Furniture

v Computers

v Office Appliances

v Factory Equipments

v Car

v Software

v Electric Installation

v Lab Equipments

v Air pollution control system

v Inspection Equipments

v Instrumentation and Monitoring Equipments

WEBSITE DETAILS

THE BEGINNINGS

What started out as a venture of 3 technocrats to manufacture 500 tons of silicon carbide grew to a position of strength and respectability.

Snam group of companies consists of the following companies:

• Snam Abrasives Private Limited, manufacturing Abrasive grade Silicon Carbide and Synthetic Saw Grade -diamonds.
• Snam Micro Abrasives Private Limited Manufacturing micro grit Silicon Carbide
• Snam Alloys Private Limited, manufacturing Ferro Silicon, Ferro Silicon Magnesium and Inoculants

Snam Alloys now sells in more than 30 countries and across five continents. In 2006 Snam Alloys has also started manufacturing operations at its joint venture plant in Lanzhou, China. This plant produces Ferro Silicon Magnesium.

Snam Alloys caters to the requirements of Cast Iron and Ductile Iron foundries around the world. Snam is now planning to have one more manufacturing facility in the world to cater to its ever-growing customer base.

Hawk-eyed Quality Control

Being accredited with the ISO 9001 certification is enough proof of the highest quality in Snam’s manufacture of Ferro Silicon, Ferro Silicon Magnesium and Inoculants.

• Snam believes in stringent quality checks at various stage of manufacture.
• From unloading, docketing and storage of raw materials to the crushing and sizing of the final product.
• So each product goes through several quality checks before it leaves the factory
• Moreover the laboratory houses the most modern and well-calibrated instruments manned by competent and highly trained engineers who monitor quality scrupulously.

Snam Alloys – uniqueness

• Snam Alloys is the only producer in India to collectively manufacture Ferro Silicon, Ferro Silicon
  Magnesium and Ferro Silicon based Inoculants.
• The only producer that has tuned its operations to cater to the need of the foundry industries.
• The only producer in India to produce Ferro Silicon Magnesium by plunging Magnesium into molten Ferro Silicon as soon as it is tapped from the submerged arc Ferro Silicon Furnace. This keeps the inherited properties of Ferro Silicon intact.
• The only producer of inoculants by alloying active ingredients in molten Ferro Silicon. Hence the customer is assured of supplier characteristics, consistent quality and excellent performance capabilities.

AWARDS AND CERTIFICATES

1. ISO 9001: 2000 Certification

2. Best Vendor Award from Nelcast Limited

3. Certificate of Approval from Dgp Hinoday Industries

4. Best Exporter Award from Eepc

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.50.32
UK Pound	1	Rs.77.96
Euro	1	Rs.65.30

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		65

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.