MIRA INFORM REPORT

Report Date :

04.07.2012

IDENTIFICATION DETAILS

Name :	SONI ISPAT LIMITED (w.e.f. 19.10.2004)
Formerly Known As :	SONI STRIPS LIMITED
Registered Office :	510, Gokul Building, 80 A, Baroda Street, Mumbai – 400 009, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	07.01.1985
Com. Reg. No.:	10-200485
Capital Investment / Paid-up Capital :	Rs. 200.000 Millions
CIN No.: [Company Identification No.]	U27105MH1985PLC200485
TAN No.: [Tax Deduction & Collection Account No.]	BPLS05340G
PAN No.: [Permanent Account No.]	AAICS2617L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Stainless Steel Plants.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 1942660
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Mr. Hemnani, the account manager has denied to disclose any information related to the subject. The management of the company has failed to file its financials with the government department after the year 2009. Business is active. Payments are unknown. The company can be considered for business dealings with some cautions.

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

INFORMATION DECLINED BY

Name :	Mr. G T Hemnani
Designation :	Accounts Manager
Contact No.:	91-9713975314
Date :	03.07.2012

LOCATIONS

Registered Office :	510, Gokul Building, 80 A, Baroda Street, Mumbai – 400 009, Maharashtra, India
Mobile No.:	91-9752593550 (Mr. Kamal – Finance Department)
E-Mail :	sonistrips@yahoo.com contact@soniispat.com compliance@metalman-india.com sales@soniispat.com soniispat@yahoo.co.in
Website :	http://www.soniispat.com
Head Office / Marketing Office :	“Janak”, 11, New Palasia, 2^nd Floor, Indore – 452 001, Madhya Pradesh, India
Tel. No.:	91-731-4025522/ 4240100/ 01/ 02/ 06
Fax No.:	91-731-4025555/ 5066149/ 4077777
E-mail:	sales@soniispat.com
Area :	1500 Sq. ft.
Location :	Owned
Factory :	805 A, Pithampur Industrial Area, Sector – III, Pithampur – 454775, District Dhar, Madhya Pradesh, India
Tel. No.:	91-7292-509817 / 501560
Branch Office :	Located at: New Delhi Mumbai

DIRECTORS

AS ON 26.09.2009

Name :	Mr. Rajiv Lochan Soni
Designation :	Chairman cum Managing Director
Address :	19/2, Manoramaganj, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	23.09.1956
Qualification:	Graduate
Date of Appointment :	07.01.1985

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	U27105MH1985PLC200485	SONI ISPAT LIMITED	Director	07-01-85	07-01-85	Active	YES
2	L27100MH1971PLC015144	METALMAN INDUSTRIES LIMITED	Managing director	01-07-94	01-07-94	Active	NO
3	U51900MH1997PLC111832	AMULYA EXPORTS LIMITED	Director	05-02-03	05-02-03	Active	YES
4	U45200MH2007PTC170924	BHAVIKA INFRASTRUCTURES PRIVATE LIMITED	Director	23-05-07	23-05-07	Active	YES
5	U91990MP1951GAP000736	THE MADHYA PRADESH FLYING CLUB LIMITED	Director	29-09-10	29-09-10	Active	NO

Name :	Mr. Vijay Soni
Designation :	Director
Address :	19/2, Manoramaganj, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	07.09.1958
Qualification:	Graduate
Date of Appointment :	07.01.1985

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	U27105MH1985PLC200485	SONI ISPAT LIMITED	Director	07-01-85	07-01-85	-	Active	YES
2	L27100MH1971PLC015144	METALMAN INDUSTRIES LIMITED	Whole-time director	01-07-94	01-07-94	-	Active	NO
3	U51900MH1997PLC111832	AMULYA EXPORTS LIMITED	Director	05-02-03	05-02-03	-	Active	YES
4	U45200MH2007PTC170924	BHAVIKA INFRASTRUCTURES PRIVATE LIMITED	Director	23-05-07	23-05-07	-	Active	YES
5	U51909MH2007PTC172447	DARSHAN MERCANTILE PRIVATE LIMITED	Additional director	23-07-07	23-07-07	25-03-11	Active	NO
6	U27320MH2007PLC173515	NAMCO CORP LIMITED	Additional director	20-12-10	27-08-07	-	Active	NO
7	U36912MH2008PTC178488	TRUE VALUE DIAMONDS PRIVATE LIMITED	Director	05-02-08	05-02-08	25-03-11	Active	NO
8	U51909MH2009PTC194346	NAMCO COAL PRIVATE LIMITED	Director	24-07-09	24-07-09	-	Active	NO
9	U27101MH2009PTC194593	NAMCO INDUSTRIES PRIVATE LIMITED	Director	03-08-09	03-08-09	18-12-10	Active	NO
10	U45200MP2010PTC023677	NAMCO REALITY PRIVATE LIMITED	Director	31-05-10	31-05-10	25-03-11	Active	NO
11	U70100MP2010PTC024137	VISIONARY REALINFRA PRIVATE LIMITED	Director	18-08-10	18-08-10	19-02-11	Active	NO
12	U45400HR2007PTC036927	PANACEA WAREHOUSING AND INFRASTRUCTURES PRIVATE LIMITED	Additional director	14-09-10	14-09-10	25-03-11	Active	NO

Name :	Mr. Jagdish Chandra Naredi
Designation :	Director
Address :	284, Mahalakshmi Nagar, Opposite Bombay Hospital, Indore-452010, Madhya Pradesh, India
Date of Birth/Age :	01.08.1948
Date of Appointment :	12.03.2004

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	U67120MP1994PLC008428	METALMAN SECURITIES LIMIED	Director	30-03-07	30-03-07	-	Active	NO
2	U27105MH1985PLC200485	SONI ISPAT LIMITED	Director	30-05-09	30-05-09	-	Active	YES
3	U27100MH2009PTC196424	KINETIC STEELS PRIVATE LIMITED	Director	14-10-09	14-10-09	22-03-10	Active	NO
4	U51900MH1997PLC111832	AMULYA EXPORTS LIMITED	Director	02-01-10	02-01-10	-	Active	YES

Name :	Mr. Sharang Soni
Designation :	Director
Address :	19/2, Manoramaganj, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	18.06.1979
Qualification:	Graduate
Date of Appointment :	12.03.2004
Date of Ceasing:	01.10.2010

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	U51900MH1997PLC111832	AMULYA EXPORTS LIMITED	Director	06-02-01	06-02-01	01-10-10	Active	YES
2	U27105MH1985PLC200485	SONI ISPAT LIMITED	Director	12-03-04	12-03-04	01-10-10	Active	YES
3	L27100MH1971PLC015144	METALMAN INDUSTRIES LIMITED	Whole-time director	30-09-05	30-09-05	01-10-09	Active	NO
4	U14108MP2008PTC020533	GOLDMANN MINMET PRIVATE LIMITED	Director	01-04-08	01-04-08	-	Active	YES
5	U27320DL2008PTC176982	GOLDMANN METALS PRIVATE LIMITED	Director	22-04-08	22-04-08	-	Active	YES
6	U27101MH2009PLC194916	TOTAL INDUSTRIES LIMITED	Director	13-08-09	13-08-09	-	Active	NO
7	U25203MH2010PTC201189	JANAK POLYMERS PRIVATE LIMITED	Director	08-06-10	23-03-10	01-01-11	Active	NO
8	U28999MH2010PTC201300	SONI FABRICATION PRIVATE LIMITED	Director	25-03-10	25-03-10	-	Active	NO
9	U27100MH2009PTC196424	KINETIC STEELS PRIVATE LIMITED	Director	30-06-10	30-06-10	15-12-10	Active	NO

KEY EXECUTIVES

Name :	Mr. G S Aggarwal
Designation :	Vice President
Name :	Ms. Rajni
Designation :	Accounts Department
Name :	Mr. Kamal
Designation :	Finance Department
Name :	Mr. G T Hemnani
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2009

Names of Shareholders	No. of Shares
Jaishree Soni	3800000
Rakesh Soni	530000
Poonam Soni	1690000
Sharnag Soni	1590000
Pooja Soni	1590000
Rajiv Lochan Soni	611000
Shabnam Soni	1663000
Sanam Soni	1563000
Sajan Soni	1563000
Vijay Soni	611000
Anu Soni	1663000
Namit Soni	1463000
Ujjawal Soni	1463000
Sunil Anand	200000
Total	20000000

AS ON 30.09.2009

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Stainless Steel Plants.
Products :	Stainless Steel Alloys Steel Mild Steel

GENERAL INFORMATION

Bankers :

• State Bank of Indore (Lead Bank), Pithampur Branch, Pithampur – 454 775, Madhya Pradesh, India
• State Bank of Bikaner and Jaipur, Sanyogitaganj, Murai Mohalla, Indore, Madhya Pradesh, India
• Oriental Bank of Commerce
• State Bank of Mysore
• Bank of India, Palasia Branch, 575/ 1, M.G. Road, Indore – 452 001, Madhya Pradesh, India
• ICICI Bank, R. N. T. Marg
• State Bank of India, Commercial Branch, Near GPO, A.B. Road, Indore – 452 001, Madhya Pradesh, India
• UCO Bank, Anoop Nagar, Indore-452008, Madhya Pradesh, India

Facilities :

SECURED LOANS :	AS ON 31.03.2009 RS. IN MILLIONS	AS ON 31.03.2008 RS. IN MILLIONS
From Financial Institutions and Banks
Working Capital Loans Cash Credit/ WCDL/ FCNRB (Secured by hypothecation of stocks/ book debts etc)	599.111	597.484
Term Loans Term Loans from banks/ financial institutions (Secured by mortgage of immovable assets and personal guarantee of Directors)	161.969	250.912
Total	761.080	848.396

Banking Relations :	--
Auditors :
Name :	S.S. Solanki and Company Chartered Accountants
Address :	402, Trade House, 16/3, South Tukoganj, Indore – 452 001, Madhya Pradesh, India
Tel. No.:	91-731-5065092
Associates/ Subsidiaries :	· Metalman Industries Limited Address : 802-A, Industrial Area, Pithmpur, Madhya Pradesh, India · London Metal Exchange · The Indian Stainless Steel Development Association · Engineering Export Promotion Council · International Stainless Steel Forum · Amulya Exports

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011	31.03.2010
Sales Turnover (Approximately)	7000.000	7780.000

The above information has been parted by Mr. G T Hemanani (Accounts Manager).

NOTE: Price of Finished Goods Come down.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		200.000	200.000	200.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		285.665	262.766	125.802
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		485.665	462.766	325.802
LOAN FUNDS
1] Secured Loans		761.080	848.396	800.489
2] Unsecured Loans		204.000	164.000	116.500
TOTAL BORROWING		965.080	1012.396	916.989
DEFERRED TAX LIABILITIES		34.491	31.013	25.767
TOTAL		1485.236	1506.175	1268.558
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		454.409	491.982	460.954
Capital work-in-progress		62.835	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	544.608	740.417	862.399
	Sundry Debtors	665.795	545.526	269.303
	Cash & Bank Balances	153.237	104.025	82.696
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	284.938	195.636	93.379
Total Current Assets		1648.578	1585.604	1307.777
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	637.587	517.224	406.111
	Other Current Liabilities	43.007	54.197	94.074
	Provisions	0.000	0.000	0.000
Total Current Liabilities		680.594	571.421	500.185
Net Current Assets		967.984	1014.183	807.592
MISCELLANEOUS EXPENSES		0.008	0.010	0.012
TOTAL		1485.236	1506.175	1268.558

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	6875.119	6656.935	5301.773
		Other Income		26.834
		TOTAL (A)	6875.119	6683.769	5301.773
Less	EXPENSES
		Cost of Material	5729.286	5404.744
		Manufacturing Expenses	676.218	805.289
		Employee Cost	45.630	39.120	5375.567
		Operating and Other Expenses	89.184	72.264
		Increase/ Decrease in Stock	74.651	9.851	(232.112)
		TOTAL (B)	6614.969	6331.268	5143.455
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		260.150	352.501	158.318
Less	FINANCIAL EXPENSES (D)		192.319	160.366	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		67.831	192.135	158.318
Less/ Add	DEPRECIATION/ AMORTISATION (F)		38.473	33.977	31.148
	PROFIT BEFORE TAX (E-F) (G)		29.358	158.158	127.170
Less	TAX (I)		6.459	21.194	26.213
	PROFIT AFTER TAX (G-I) (J)		22.899	136.964	100.957
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		157.766	80.802	24.845
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	60.000	NA
	BALANCE CARRIED TO THE B/S		170.665	157.766	NA
	Earnings Per Share (Rs.)		1.14	6.85	5.05

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	0.33	2.05	1.90
Net Profit Margin (PBT/Sales)	(%)	NA	2.38	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.40	7.61	7.19
Return on Investment (ROI) (PBT/Networth)		0.06	0.34	0.39
Debt Equity Ratio (Total Liability/Networth)		3.39	3.42	4.35
Current Ratio (Current Asset/Current Liability)		2.42	2.77	2.61

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

NOTE:

The registered office of the company has been shifted from “Janak”, 11, New Palasia, Indore – 452 001, Madhya Pradesh to the present address w.e.f. 05.01.2010.  

OPERATIONS:

The period under repot, despite of the recessionary conditions prevailing globally, the company has been able to register a moderate growth on turnover, though the profitability has surely been impacted adversely during this year due to steep fluctuations n prices of steel products. However, the situation has normalized and the company expects to complete its expansion project by the end of the current financial, which has also been delayed due to situation on explained above.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27105MH1985PLC200485
Name of the company	SONI ISPAT LIMITED
Address of the registered office or of the principal place of business in India of the company	510, Gokul Building, 80 A, Baroda Street, Mumbai – 400 009, Maharashtra, India E-Mail: amulyaexports@gmail.com
This form is for	Modification of Charge
Charge identification number of the charge to be modified	10251087
Type of charge	Immovable Property
Particular of charge holder	Uco Bank, Anoop Nagar, Indore-452008, Madhya Pradesh, India
Nature of instrument creating charge	Memorandum of Entry
Date of instrument Creating the charge	23.11.2010
Amount secured by the charge	Rs. 340.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 4.25% p.a. over the base rate subject to the minimum 12.25% p.a. with monthly rests. Terms of Repayment Repayable in total door to door tenure in 7.25 years including drawl including period of 3 quarters and moratorium form COB of the entire project of 2 quarters and net repayment period of 6 years. The entire loan of Rs. 340.000 Millions with interest, charges and expenses shall be repayable. Quarterly installment shall be payable in arrears on the last day of each quarter commencing after 15 months from the date of 1^st disbursement. Margin 38.85% of the project cost. Extent and Operation of the charge 1^st charge on pari-passu with, existing term lenders of the consortium mortgage of the land and building and plant and machinery and other movable assets of the company (both existing and future) Corporate guarantee given by Metalman Industries Limited and Amulya Exports Limited
Short particulars of the property charged	1^st charge on pari-passu with, existing term lenders of the consortium mortgage of the land and building and plant and machinery and other movable assets of the company both present and future other than the assets exclusively financed by MPFC at Plot No. 805-A, Industrial Area, Sector-III, Tehsil and District Dhar (M.P.) 2^nd Pari passu charge on Current Assets of the company (present and future)
Particulars of the present modification	1^st charge on pari passu basis with, existing term lenders of the consortium mortgage of the land and building and plant and machinery and other movable assets of the company (both existing and future) by way of Deposit of Title Deeds.

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Office Equipments
• Computers
• Furniture and Fixtures
• Vehicles

WEBSITE DETAILS:

PROFILE:

Subject, a semi integrated plant carrying out activities of melting, continuous slab casting and plate rolling in special grades of steel like stainless steel, alloy steel and mild steel. It is part of the Metalman Group which has over 1100 Employees and a turnover of over $150 Million USD. Subject has an installed capacity of melting and rolling over 0.2 Million Metric Tons of Special steel in flat and long products.

GROUP:

Subject is a rapidly growing company in the steel sector. Subject is a part of the flagship Metalman Group which is a three decade-old business group. The group has over 900 employees and has an annual turnover of over USD One hundred and twenty five million.

Subject is a semi integrated plant carrying out activities of melting, continuous slabs casting and plate rolling in special grade of steel like Stainless steel, Alloy steel and Mild steel. The company's manufacturing facility is located at Pithampur, near Indore in Madhya Pradesh. Subject has an installed capacity of melting and rolling over 0.2 million metric tons per annum. The company's ranges of product include Stainless steel, Alloy steel and Mild steel slabs and plates in customized Dimensions. The company follows the induction furnace → AOD → LRF → continues slab caster route for manufacturing of stainless steel and alloy steel on slab.

The company has installed state of the art steel refining equipment such as AOD converter and a Ladle Refining Furnace to adhere to the most stringent quality requirements. In compliance of its corporate social responsibility program, the company has established a Fume Extraction System complex to keep the emission well below environmental requirements. The company's products are exported worldwide.

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.54.81
UK Pound	1	Rs.86.04
Euro	1	Rs.69.06

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.