MIRA INFORM REPORT

Report Date :

05.06.2012

IDENTIFICATION DETAILS

Name :	RATNADEEP METAL AND TUBES LIMITED (w.e.f 17.03.2011)
Formerly Known As :	RATNADEEP METAL AND TUBES PRIVATE LIMITED
Registered Office :	402, Sai Prasad Apartment, Near Darpan Academy, Usmanpura, Ahmedabad – 380013, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.06.2002
Com. Reg. No.:	04-40863
Capital Investment / Paid-up Capital :	Rs.18.865 Millions
CIN No.: [Company Identification No.]	U27101GJ2002PLC040863
TAN No.: [Tax Deduction & Collection Account No.]	AHMR01263D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Exporter of Stainless Steel Carbon Steel and Alloy Steel Stainless Seamless Tubes / Pipes as well as Stainless Steel welded tubes / pipes.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 740000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established company, primarily engaged in trading of metals and metal products. Trade relations are fair. Payments are reported as slow but correct. Directors are reported as resourceful businessmen. However, the company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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 PARTED BY

Name :	Mr. Timir Jain
Designation :	Director
Contact No.:	91-9825027839
Date :	09.05.2012

LOCATIONS

Registered Office :	402, Sai Prasad Apartment, Near Darpan Academy, Usmanpura, Ahmedabad – 380013, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9825027839 (Mr. Timir Jain)
Fax No.:	Not Available
E-Mail :	ppsystem@yahoo.co.in info@ratnadeepmetal.com pmsystem@sancharnet.in
Website :	http://www.rantnadeepmetal.com
Corporate Office :	102, Rajgiri Apartments, 196/198, Khetwadi Back Road, Opposite Khetwadi Lane, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23805700 / 23805701 / 66362742 / 61991000
Mobile No.:	91-9820558811 (Mr. J V Jain)
Fax No.:	91-22-23805702
E-Mail :	Mumbai@rantnadeepmetal.com
Factory :	Survey No.1015/2, Village – Rajpur, 40 km Ahmedabad – Mehsana Highway, Taluka – Kadi, District – Mehsana – 382715, India
Tel. No.:	91-2764-267510/ 267544
Mobile No.:	91-9825024682
Fax No.:	91-2764-267511
E-Mail :	works@ratnadeepmetal.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Bharat S. Jain

Designation :

Director

Address :

16, Sahjivan Society, Opposite Ayodhya Nagar, Near Shantinagar, Usmanpura, Ahmedabad – 380013, Gujarat, India

Date of Birth/Age :

02.08.1963

Date of Appointment :

14.06.2002

DIN No.:

01397053

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	U27101GJ2002PLC040863	RATNADEEP METAL AND TUBES LIMITED	Managing director	1/04/2009	14/06/2002	-	Active	NO
2	U29220GJ2008PTC052960	RATNADEEP ENGINEERING AND AUTOMOTIVE PRIVATE LIMITED	Director	19/02/2008	19/02/2008	-	Active	NO

Name :

Mr. Jayant Virchand Jain

Designation :

Directors

Address :

504, A Wing, 5^th Floor, Goragandhi Palace, 122 Khetwadi Back Road, Mumbai – 400004, Maharashtra, India

Date of Birth/Age :

30.09.1997

Date of Appointment :

14.06.2002

DIN No.:

00909389

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	U27101GJ2002PLC040863	RATNADEEP METAL AND TUBES LIMITED	Managing director	1/04/2009	14/06/2002	-	Active	NO
2	U29220GJ2008PTC052960	RATNADEEP ENGINEERING AND AUTOMOTIVE PRIVATE LIMITED	Director	19/02/2008	19/02/2008	-	Active	NO

Name :

Mr. Timir Jayat Jain

Designation :

Director

Address :

504, A Wing, 5^th Floor, Goragandhi Palace, 122 Khetwadi Back Road, Mumbai – 400004, Maharashtra, India

Date of Birth/Age :

12.12.1982

Date of Appointment :

25.07.2005

DIN No.:

01550136

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	U27101GJ2002PLC040863	RATNADEEP METAL AND TUBES LIMITED	Whole-time director	1/04/2009	25/07/2005	-	Active	NO
2	U29220GJ2008PTC052960	RATNADEEP ENGINEERING AND AUTOMOTIVE PRIVATE LIMITED	Director	19/02/2008	19/02/2008	-	Active	NO

Name :

Mr. Jimik Bharat Sanghavi

Designation :

Director

Address :

16, Sahjivan Society, Opposite Ayodhya Nagar, Near Shantinagar, Usmanpura, Ahmedabad – 380013, Gujarat, India

Date of Birth/Age :

04.06.1988

Date of Appointment :

01.04.2008

DIN No.:

02030852

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	U29220GJ2008PTC052960	RATNADEEP ENGINEERING AND AUTOMOTIVE PRIVATE LIMITED	Director	19/02/2008	19/02/2008	-	Active	NO
2	U27101GJ2002PLC040863	RATNADEEP METAL AND TUBES LIMITED	Whole-time director	1/04/2009	1/04/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Bharat S Sanghavi	248885
Bharat S Sanghavi HUF	53000
Hansaben Jain	202775
Prafulla Jain	208750
Jayant Jain	240530
Jayant Jain HUF	65600
Timir Jian	118865
Varun Jian	63600
Rinkal Jain	91400
Jaimik Shanghvi	56140
Taraben S. Jain	135800
Shantilal Shanghvi	117600
Ruchi Jian	65450
Gayatri Lease Finance Limited	143515
Virendra Raj Mehta and Vimla Mehta	12000
Timir Jian HUF	22100
Bhairav India International	18000
Ratnadeep Engineering and Auto Private Limited	22500
Total	1886510

As on 29.03.2012

Names of Allottees	No. of Shares
Bharat S Sanghavi HUF	4880
Jayant Jain	10850
Rinkal Jain	3700
Ruchi Jian	5950
Jaimik Shanghvi	8885
Taraben S. Jain	6025
Timir Jian	11450
Jayant Jain HUF	5350
Prafulaben B Sanghavi	6450
Hansaben Jain	12000
Gayatri Lease Finance Private Limited	1450
Bharat S Sanghavi	56250
Varun Jian	2500
Shantilal T Jain HUF	5380
Total	141120

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	8.80
Directors or relatives of Directors	91.20
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Exporter of Stainless Steel Carbon Steel and Alloy Steel Stainless Seamless Tubes / Pipes as well as Stainless Steel welded tubes / pipes.
Product:	Manufacturer and Suppliers of Ferrous and Non Ferrous Metal Tubes
Exports :
Products :	· Stainless Steel Carbon Steel · Alloy Steel Stainless Seamless Tubes / Pipes · Stainless Steel welded tubes / pipes
Countries :	Europe
Terms :
Selling :	Cash
Purchasing :	Cash

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Installed Capacity
Curbon / Alloys Tubes	TPA	4500
Seamless Pipes	TPA	1635
SS Welded	TPA	900

Particular	Actual Production
C.S Seamless	3194
S.S. Seamless	979
S.S. Welded Pipes	520
Scrap	276
Others	5134

GENERAL INFORMATION

Customers :	Wholesalers, Retailers and End Users
No. of Employees :	400 (Approximately)
Bankers :	· Axis Bank Limited, Trishul 3^rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad-380006, Gujarat, India. · Vijaya Bank Industrial Finance Branch, Kamdhenu Complex, Ambawadi, Ahmedabad – 380015, Gujarat, India

Banking Relations :	--
Auditors :
Name :	KPSJ and Associates Chartered Accountant
Address :	504, Sahajanand Shoping Centre, Opposite Rajasthan Hindi High School, Shahibaug, Ahmedabad-380004, Gujarat, India.
PAN.:	AAGFK2924D

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital:

No. of Shares	Type	Value	Amount
5000000	Equity Share	Rs.10/- Each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2027630	Equity Share	Rs.10/- Each	Rs.20.276 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1886510	Equity Shares	Rs.10/- each	RS.18.865 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		18.865	16.064	13.589
2] Share Application Money		0.000	0.000	0.100
3] Reserves & Surplus		167.909	122.720	89.365
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		186.774	138.784	103.054
LOAN FUNDS
1] Secured Loans		317.684	262.804	148.819
2] Unsecured Loans		18.001	23.432	33.114
TOTAL BORROWING		335.685	286.236	181.933
DEFERRED TAX LIABILITIES		14.585	9.249	6.497
Security Deposits/ Capital Liabilities		8.427	8.026	2.722
TOTAL		545.471	442.295	294.206
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		173.851	147.217	117.421
Capital work-in-progress		0.207	0.000	3.573
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	314.426	214.367	108.489
	Sundry Debtors	167.151	160.449	82.811
	Cash & Bank Balances	33.525	34.224	29.843
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	46.796	33.904	21.116
Total Current Assets		561.898	442.944	242.259
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors			40.414
	Other Current Liabilities	181.207	138.018	21.096
	Provisions	9.312	9.945	7.682
Total Current Liabilities		190.519	147.963	69.192
Net Current Assets		371.379	294.981	173.067
MISCELLANEOUS EXPENSES		0.034	0.097	0.145
TOTAL		545.471	442.295	294.206

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	903.475	673.107	611.546
		Other Income	2.743	2.714	1.325
		TOTAL (A)	906.218	675.821	612.871
Less	EXPENSES
		Cost of Goods Sold	157.292	184.995	85.051
		Raw Material Consumed	594.879	405.214	397.927
		Manufacturing Expenses	80.095	56.930	66.793
		Payment to Employees	19.371	11.049	10.326
		Administrative Expenses	13.004	13.219	13.660
		Selling and Distribution Expenses	19.540	10.501	9.407
		Increase / Decrease in Stock	(76.002)	(77.852)	(21.805)
		TOTAL (B)	808.179	604.059	561.359
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		98.039	71.762	51.512
Less	FINANCIAL EXPENSES (D)		44.261	24.651	21.784
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		53.778	47.111	29.728
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.845	18.651	11.980
	PROFIT BEFORE TAX (E-F) (G)		33.933	28.460	17.748
Less	TAX (I)		12.269	9.788	5.724
	PROFIT AFTER TAX (G-I) (J)		21.664	18.672	12.024
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		47.905	30.773	20.009
Less	APPROPRIATIONS
		Transfer to General Reserve	0.00	0.000	0.000
		Dividend	0.240	0.224	0.183
		Tax on Dividend	1.448	1.316	1.077
	BALANCE CARRIED TO THE B/S		67.881	47.905	32.773
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	58.171	22.886	53.633
	TOTAL EARNINGS		58.171	22.886	53.633
	IMPORTS
		C.I.F. Value of Import	286.935	167.435	151.835
	TOTAL IMPORTS		286.935	167.435	151.835
	Earnings Per Share (Rs.)		13.47	12.75	10.05

The above information has been parted by Mr. Timir Jain - Director

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.39	2.76	1.96
Net Profit Margin (PBT/Sales)	(%)	3.76	4.23	2.90
Return on Total Assets (PBT/Total Assets}	(%)	6.04	6.43	7.33
Return on Investment (ROI) (PBT/Networth)		0.18	0.18	0.17
Debt Equity Ratio (Total Liability/Networth)		1.02	2.13	0.66
Current Ratio (Current Asset/Current Liability)		2.95	2.99	3.55

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	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
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	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
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	Yes
30) Major Shareholders, if available	Yes

FINANCIAL PERFORMANCE

Turnover of the company grew by 36% closing the year at Rs.995.163 Millions against at Rs.729.886 Millions of the previous year. Profit Before tax increase by 19% from Rs.28.461 Millions to Rs.33.934 Millions Profit after tax increased by 15% from Rs.19.708 Millions to Rs.22.566 Millions

CREDIT FACILITIES CONSRTUIM BETWEEN AXIS BANK AND BOI:

The Board on behalf of Company had approached to various banks for fund requirement for expansion and banking requirement of the company, the board of directors had accepted the consortium arrangement between Axis Bank, a leading new generation private bank and Bank of India, an old and strong public sector bank. They hope a good start, will result a long-term relation and to cater their demand for ambitious future project and satisfactory service. The company has proposed to take term loan of Rs.60.000 Millions from Bank of India for expansion of business.

INCREASE IN PAID UP SHARE CAPITAL

The paid up capital is increase from Rs.16.064 Millions to 18.865 Millions and share premium from Rs.74.815 Millions to Rs.100.028 Millions by raising new capital fund having face value Rs. 2.802 Millions and at Premium of Rs 25.214 Millions during the year under review.

OPERATIONAL REVIEW

Expansion Project for Cylinder Pipe and Auto Pipe :

Company had completed expansion for manufacturing of Carbon /Alloy Seamless Steel tubes / pipes from 1200 to 4500 M.T. /P.A. by installing new Draw Bench Machines, bright annealing furnace and adequate testing infrastructure facilities,

Technology up gradation by Online Bright Annealing for Instrumental tubes and S.S.Tube Mills

Company has completed successfully installation of Online Bright Annealing Furnace on Tube mill to produce welded bright-annealed tubes specially required for Power Plant and automobile industry. Requirement of Bright tubes is highly value added product and its demand is more.

Addition of New Products/ Range of Products:

Company has commenced manufacturing of its new product i.e. Instrumentation tubes 3.00 mm OD to 12.70 mm OD of 100 meter length in suitable coil. The product is highly value additions and gives the edge and strength more above similar units.

Quality, Testing and Productivity Up gradation and Automation:

Company has installed new Bright Annealing furnace for Instrumentation Tubes and Standard S.S. Tubes, which will give long life to the product, cut the chemical process and increase the productivity. The successfully installation of bright annealing process had given a strong and top position in the tube industry all over the world. These tubes are useful in Automobile Industry and Instrumentation for Refinery and Power Plant. Automation and modernization of pilger and tube mill by installation of NPS drive and electronic devices. Company had installed ultrasonic, hydro, video sonic and other equipment for testing of material and key components. Major machineries, boiler and furnace are being gasification.

Prestigious Buyers Approval:

After a long procedure of due dilatation regarding system and financial strength, their inspection of infrastructure facilities for process, in house quality checks and competent man power, the company has received prestigious buyers approvals from M/s Engineers India Limited, Turnkey Project Consultants to all government and major private refineries and oil companies like IOCL, Reliance, BPCL, HPCL, etc. Bharat Heavy Electircals Limited (Haridwar and Hyderabad) had approved and, awarded orders immediately, which had executed successfully and expect continuous flow of such orders. Sabic, UAE, a world well-known largest refinery had also approved, executed orders, had increased the future potential abilities of bulk orders, engine speed age growth to the company through further expansions.

Participating in International Events and capturing export market:

Renowned international buyers all over the world significantly noted the presence of company. Further, the company is in continuous connection with overseas buyers through e-mail, telephonic talk and personal visits, the year under review was a landmark for capturing export market.

Building a Strong Order Position:

Due to continues hard efforts in quality and system improvement and delivery at the committed schedule, brought the company in preferred supplier among the buyers, resultant the company is standing at order level around Rs 450.000 Millions with delivery schedule from three to six months and more than its double in potential inquiries.

FUTURE SCENARIOS

Expansion Project:

1. Automatic and more productive of enhancing the capacity by installing imported machinery from repudiated organization from Russia and South Korea. It will require less labor and less requirement of space and easy to use and further enhancement of quality improvement.

2. Backward Integration to hot piercing plant to further reduction in raw material cost as well as improvement in quality. This will bring down the dependency of imported raw material and getting priority from power generation owing to indigenous sources of raw materials. To reduction of further bottleneck resources

3. Installing MS Pipe plant to catering to supply engineering and OEM (Original equipment maintenance)

4. Firing Business plan for associated company Ratnadeep Engineering and autorotation Private Limited.

1. Forward integration in Finning and heat exchanger Tube.

2. Engineering activity of tooling and machinery manufacturing for Pipe and tube industry.

Plan to establish scientific research Division

Company is planning to enter scientific research in tube and pipe industry to strengthen product and improvement in quality. Company is planning to get prior approval of “Department of science and Technology “Government of India”.

CONTINGENT LIABILITIES

A provision is recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required; and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. During the year company’s contingent liabilities stood at in the form of Buyer Credit line of Rs.133.900 Millions.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27101GJ2002PLC040863
Name of the company	RATNADEEP METAL AND TUBES LIMITED
Address of the registered office or of the principal place of business in India of the company	402, Sai Prasad Apartment, Near Darpan Academy, Usmanpura, Ahmedabad – 380013, Gujarat, India Email: ppsystem@yahoo.co.in
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
CIN, in case charge holder or ARC or assignee is a company	L65110GJ1993PLC020769
Particular of charge holder	Axis Bank Limited, Trishul 3^rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad-380006, Gujarat, India. Email: pranav.pandit@axisbank.com
Nature of instrument creating charge	Deed of Hypothecation dated 09/01/2012
Date of instrument Creating the charge	09.01.2012
Amount secured by the charge	Rs.90.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per bank sanction terms Terms of Repayment Payable on demand Margin 1)Cash credit limit-Stocks-25%,book debts-30%(cover period 120 days) 2)WCDL(INR/FC)(within CC)-stocks-25%,Book debts-30%(cover period 120 days) 3)L/C-I/F-DA/DP(standalone)-10% 4)Buyer's credit(within L/C)-10% Extent and Operation of the charge All the securities Described Hereinbelow have been charged to the bank to secure enhanced facility of Rs.-90.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Entire Current assets and movable fixed assets of the company, both present and future

Fixed Assets:

• Factory Land
• Factory Building

• Plant and Machinery
• Machinery Dies
• Furniture
• Fax Machine
• Motor Car
• Computer
• Air Conditioner
• Mobile Phone
• Motor Cycle

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.55.51
8UK Pound	1	Rs.85.29
Euro	1	Rs.68.86

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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

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

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

RATING EXPLANATIONS

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