MIRA INFORM REPORT

Report Date :

19.06.2012

IDENTIFICATION DETAILS

Name :	S A L STEEL LIMITED
Registered Office :	5/1, Shreeji House, Behind M. J. Library, Ashram Road, Ahmedabad – 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.11.2003
Com. Reg. No.:	04-043148
Capital Investment / Paid-up Capital :	Rs. 849.667 Millions
CIN No.: [Company Identification No.]	L29199GL2003PLC043148
TAN No.: [Tax Deduction & Collection Account No.]	AHMS07537F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Sponge Iron and Ferro Alloy Products.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 5000000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealing 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 PARTED BY

Name :	Mr. Yashpal Mehta
Designation :	Finance Executive

LOCATIONS

Registered Office :	5/1, Shreeji House, Behind M J Library Ashram Road, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26578030
Fax No.:	Not Available
E-Mail :	ymehta@shahalloys.com info@shahalloys.com, sujalshah@shahalloys.com, shreyasparikh@shahalloys.com, salsteel.ltd@rediffmail.com saurabh.madaan@salsteel.co.in sal.investor@salsteel.co.in
Website :	http://www.shahalloys.com http://www.salsteelltd.com
Location :	Owned
Corporate Office :	11^th Floor, GNFC Info Tower, S. G. Highway, Bodakdev, Near Grand Bhagwati Hotel, Ahmedabad – 380 054, Gujarat, India
Tel. No.:	91-79-66629100
Fax No.:	91-79-66629130
E-Mail :	sujalshah@shahalloys.com
Factory:	Survey No.245, Village Bharapar, Taluka Gandhidham, District Kutch, Gujarat, India
Administrative Office/ Branch Office :	Block- 2221 / 2222, Shah Industrial Estate, Sola-Kalol Road, Santej, Gandhinagar - 382043, Gujarat, India
Tel. No.:	91-2764-661100/ 11
Fax No.:	91-2764-661110/ 286615
Email:	salsteel.ltd@rediffmail.com

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Rajendra V Shah
Designation :	Chairman and Managing Director
Name :	Mr. K C Thatoi
Designation :	Managing Director
Name :	Mr. Sujal A. Shah
Designation :	Director
Name :	Mr. Babulal M. Singhal
Designation :	Director
Name :	Mr. Piyush R. Chandrana
Designation :	Director
Name :	Mr. Ambalal C Patel
Designation :	Director
Name :	Mr. Harshad M. Shah
Designation :	Director
Name :	Mr. Jethabhai M Shah
Designation :	Director
Name :	Mr. Tejpal S. Shah
Designation :	Director
Name :	Mr. Shrikant N. Jhaveri (w.e.f. 11.05.2011)
Designation :	Director
Name :	Mr. Bhaskar Ghosh (w.e.f. 04.07.2011)
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Yashpal Mehta
Designation :	Finance Executive
Name :	Mr. Saurabh Madaan
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2012)

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	42,959,889	50.56
Sub Total	42,959,889	50.56
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	42,959,889	50.56
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	5,000	0.01
(2) Non-Institutions
Bodies Corporate	10,785,178	12.69
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	22,232,304	26.17
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	8,671,565	10.21
Any Others (Specify)	312,764	0.37
Non Resident Indians	273,212	0.32
Clearing Members	39,552	0.05
Sub Total	42,001,811	49.43
Total Public shareholding (B)	42,006,811	49.44
Total (A)+(B)	84,966,700	100
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	84,966,700	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Sponge Iron and Ferro Alloy Products.

Products :

Products Description	Item Code No.
Sponge Iron	3303
Ferro Alloys	3320
Angle	3302
Power	4003

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Sponge Iron	MT	180000	71738.000
Ferro Alloys	MT	61890	12175.000
Rolling Mill	MT	25000	1016.960
Power Plant	MW	40 MW P Hour	95836.990
Iron Ore Fines	--	--	31820.987
Coal Fine and Others	--	--	10677.720

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

· Union Bank of India

Ashram Road, Branch, Ahmedabad, Gujarat, India

· State Bank of India

· State Bank of Hyderabad

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loan From Banks
Working Capital Facilities Secured by Hypothecation of entire current assets of the company on pari-passu basis with consortium member banks and second charge on fixed assets of the company on Pari-passu basis with consortium member banks subject to first charge on pari-passu basis with Union Bank of India, State Bank of India, State Bank of Saurashtra and State Bank of Hyderabad for their respective term loans. The loan is further secured by personal guarantee of i) Mr. R. V. Shah ii) Mrs. R. R. Shah iii) Mr. J. V. Shah and iv) and Corporate Guarantee of M/s Shah Alloys Limited	343.906	569.580
Term Loans (Installment repayable within one year Rs 62.200 Millions) (Secured by First Mortgage and Hypothecation on all the Immovable and Movable Assets both present and future by way of First Charge ranking pari passu with charges created / to be created in favour of other institution / banks subject to prior charge on current assets in favour of the company’s bankers for working capital borrowings. The loan is further secured by personal guarantee of i) Mr. R. V. Shah ii) Mrs. R. R. Shah iii) Mr. J. V. Shah and iv) and Corporate Guarantee of M/s Shah Alloys Limited)	1233.641	799.880
Vehicles Loans
From Bank and Financial Institutions	15.867	24.855
(Loan acquired under the hire purchase scheme are secured against vehicles.) [Installment repayable within one year Rs 9.500 Millions]
Total	1593.414	1394.315
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	8.319	2.434
Inter-Corporate Loans (From the Company under the same Management)	800.000	800.000
From Others	70.000	0.000
Deferred Payment Liability in respect of Sales Tax.	13.579	13.578
Short Term Loan from Bank	0.000	3.593
Total	891.898	819.605

Banking Relations :	--
Auditors :
Name :	Talati and Talati Chartered Accountant
Address :	Ambica Chambers, Near Old High court, Navrangpura, Ahmedabad – 380009, Gujarat, India
Associates :	· Shah Alloys Limited · Adarsh Foundation (Charitable Trust)

CAPITAL STRUCTURE

(AS ON 24.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
140000000	Equity Shares	Rs. 10/- Each	Rs. 1400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
84966700	Equity Shares	Rs.10/- Each	Rs. 849.667 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
110000000	Equity Shares	Rs. 10/- Each	Rs. 1100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
84966700	Equity Shares	Rs.10/- Each	Rs. 849.667 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		849.667	849.667	849.667
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		406.822	404.095	395.814
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1256.489	1253.762	1245.481
LOAN FUNDS
1] Secured Loans		1593.414	1394.315	1674.474
2] Unsecured Loans		891.898	819.605	816.012
TOTAL BORROWING		2485.312	2213.920	2490.486
DEFERRED TAX LIABILITIES		90.023	85.275	78.395
TOTAL		3831.824	3552.957	3814.362
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1690.750	1872.353	2063.352
Capital work-in-progress		1693.143	1376.766	1270.829
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	528.529	719.185	764.875
	Sundry Debtors	125.089	106.856	93.150
	Cash & Bank Balances	63.417	85.879	168.506
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	325.468	250.281	203.366
Total Current Assets		1042.503	1162.201	1229.897
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	533.571	555.926	512.855
	Other Current Liabilities	51.468	303.679	242.693
	Provisions	9.533	4.090	9.676
Total Current Liabilities		594.572	863.695	765.224
Net Current Assets		447.931	298.506	464.673
MISCELLANEOUS EXPENSES		0.000	5.332	15.508
TOTAL		3831.824	3552.957	3814.362

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3200.910	2984.824	3859.527
		Other Income	23.779	57.413	25.303
		TOTAL (A)	3224.689	3042.237	3884.830
Less	EXPENSES
		Increase/(Decrease) in Stocks	37.237	62.389	(106.436)
		Material Consumed	2025.489	1773.142	2657.064
		Manufacturing and Other Expenses	731.892	720.249	780.872
		TOTAL (B)	2794.618	2555.780	3331.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		430.071	486.457	553.330
Less	FINANCIAL EXPENSES (D)		221.381	268.772	355.677
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		208.690	217.685	197.653
Less/ Add	DEPRECIATION/ AMORTISATION (F)		189.072	196.027	186.302
	PROFIT BEFORE TAX (E-F) (G)		19.618	21.658	11.351
Less	TAX (H)		14.732	8.914	(10.283)
	PROFIT AFTER TAX (G-H) (I)		4.886	12.744	21.634
Less	Prior Period Adjustments		2.159	4.463	2.020
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		115.764	107.483	87.869
	BALANCE CARRIED TO THE B/S		118.491	115.764	107.483
	IMPORTS
		Raw Materials	126.165	74.281	130.705
	TOTAL IMPORTS		126.165	74.281	130.705
	Earnings Per Share (Rs.)		0.03	0.10	0.23

Expected Sales (2011-12): Rs.3500.000 Millions

The above information has been parted by Mr. Yashpal Mehta.

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	571.980	832.820	864.470	1039.260
Total Expenditure	476.840	720.760	744.400	951.300
PBIDT (Excl OI)	95.140	112.060	120.070	87.960
Other Income	0.000	0.000	0.000	33.330
Operating Profit	95.140	112.060	120.070	121.290
Interest	51.920	57.040	54.820	70.570
Exceptional Items	0.000	0.000	0.000	(3.230)
PBDT	43.220	55.020	65.240	47.490
Depreciation	42.550	47.090	46.710	44.250
Profit Before Tax	0.670	7.930	18.540	3.240
Tax	0.410	1.310	2.220	0.480
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	0.260	6.620	16.320	2.760
Extraordinary Items	0.000	(5.960)	(16.250)	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	0.260	0.660	0.070	2.760

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.15	0.42	0.56
Net Profit Margin (PBT/Sales)	(%)	0.61	0.73	0.29
Return on Total Assets (PBT/Total Assets}	(%)	0.72	0.71	0.34
Return on Investment (ROI) (PBT/Networth)		0.02	0.02	0.01
Debt Equity Ratio (Total Liability/Networth)		2.45	2.45	2.61
Current Ratio (Current Asset/Current Liability)		1.75	1.35	1.61

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	No
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last two years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	-----
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	No

CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF:-

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Letter of Credit	49.375	122.369
Bank Guarantee Given	2.627	26.565
Corporate Guarantees Given to Banks for Shah Alloys Limited	800.000	800.00
Claim lodged by party not acknowledge by us	50.007	23.490
Disputed Value Added Tax Demand	36.563	0.000

OPERATIONAL OVERVIEW:

During the year Net Turnover of the Company has been increased to Rs.3200.900 Millions as compared to previous year’s turnover which was Rs. 2984.800 Millions, an increase of around 7.24%. However, Company’s profits after tax has declined a bit mainly due to the factors like lower prevailing selling price of sponge Iron, increase in price of basic raw materials like Coal and Iron ore, inflationary conditions, cost burdens and shortage of working capital etc.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

India has been able to maintain its position as world largest producer of Sponge Iron. Production Capacity in Sponge iron making has also increased over the years. Indian Steel Industry has just come out of recent global economic slowdown. Growth in end-use segments like manufacturing, consumer durables, construction, service sector and agriculture sector have provided good news to Steel Sector. As such, India is expected to maintain its leading position of largest sponge iron producer in the near future also.

On the other hand, Indian Ferro alloys Industry, as a part of the core sector, is engaged in supplying crucial intermediates to steel industry. Ferro alloys are used in production of mild steel, carbon steel, special alloy steel and stainless steel in the country. As India’s steel production is increasing year over year; consumption of ferro alloys is also increasing along with it. The industry has already started importing manganese ore in large volumes. In the face of upward growth trend in Steel Industry, scope of growth in above Industries can be said to be very good in the coming years.

DISCUSSION ON COMPANY’S PERFORMANCE

Company’s net revenue has increased from Rs.2984.800 Millions to Rs.3200.900 Millions. However, the net profits of the company have declined from Rs.8.300 Millions to Rs.2.700 Millions. This decline in profits is attributed mainly on account of high cost of raw material and low price realization owing to slack market conditions.

Company is basically manufacturing Sponge Iron, Ferro Alloys, MS and SS Angle and Power and the same are being sold in the domestic market. Because of the Captive Power Generation Company has advantage of low power cost per unit of manufacturing.

Company is also generating 40 MW Power from Waste Heat Recovery Boiler and Fluidized Bed Combustion Boiler with economic price. Power generated is used for captive consumption and surplus power is sold resulting profit. Around 15MWH Power is being generated from the Kiln waste gases as well which helps in running the plant economically.

SWOT ANALYSIS OF COMPANY

STRENGTH

· Good Industry experience and knowledge of Promoters.

· Good quality standards.

· Cost competitiveness.

· Diverse Supplier Base.

· Long-standing contracts for purchase of raw materials.

· Strong product design and development.

· Skilled, qualified and motivated employees.

· Captive Power Consumption.

WEAKNESSES

· Exposure to raw material price fluctuations.

· Under-utilization of plant capacity.

· Dependency on third party for raw material.

OPPORTUNITIES

· Unexplored Markets.

· Ever-growing demand in Steel Industry.

· Strengthened manufacturing base and the existence of product development and marketing teams.

THREATS

· Rising raw material prices.

· High Cost of Capital.

· Constraint of Raw Material availability.

· Global economic slowdown.

· Unremunerative Prices.

· Unforeseen general macro-economic factors and political turmoil.

FUTURE OUTLOOK:

To avoid volatility and to ensure consistent supplies of good quality raw materials, Company is focusing on establishing long term tie-ups with renowned suppliers of the country like NMDC, Orissa (for Iron Ore), MOIL (for Manganese Ore), OMCL (for Chrome Ore) etc. Efforts are also being made to set up arrangements with GMDC, Gujarat for meeting basic raw material requirements. Also, Company is deciding to set up its own pelletising plant to manufacture Iron Ore pellets to be used in Sponge Iron production. This can result into better yield and will save the costs as well. Furthermore, sponge iron pellets can be profitably exported as well with nil export duty. With effective use of Power plants to its fullest capacity, maximum capacity utilisation of Ferro Alloys plant is being targeted.

FIXED ASSETS:

· Freehold Land

· Factory Building

· Plant and Machinery

· Computers

· Office Equipment

· Furniture and Fixture

· Vehicles

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST MARCH, 2012

(Rs. in millions)

Sr. No.	Particular	Quarter Ended		Year Ended
		31.03.2012 (Unaudited)	31.12.2011 (Unaudited)	31.03.2012 (Unaudited)
1.	Net Sales/Income from Operations	1039.261	861.897	3288.733
2.	Expenditure
	Cost of materials consumed	819.754	328.806	2112.449
	Purchases of stock-in-trade	30.368	20.433	50.802
	Changes in inventories of finished goods, work-in-progress and stock-in-trade	(27.057)	150.612	20.672
	Employee benefits expense	24.480	23.005	90.267
	Depreciation and amortisation expense	44.246	46.705	180.593
	Consumption of Stores & Spares	5.863	7.776	32.532
	Power cost and cost of power generation	49.102	64.445	329.107
	Other Expenditure	48.795	163.217	277.322
	Total	995.551	804.999	3093.744
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	43.710	56.898	194.989
4.	Other Income	33.333	2.571	53.123
5.	Profit Before Interest and Exceptional Items (3+4)	77.043	59.469	248.112
6.	Interest	70.567	54.822	534.353
7.	Profit After Interest but before Exceptional Items (5-6)	6.476	4.647	13.759
8.	Exceptional Items	3.232	2.358	5.590
9.	Profit from Ordinary Activities before Tax (7+8)	3.244	2.289	8.169
10.	Tax Expense	0.484	2.218	4.420
11.	Net Profit from Ordinary Activities after Tax (9-10)	2.760	0.070	3.749
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	2.760	0.070	3.749
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	849.667	849.667	849.667
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	0.03	0.000	0.04
	b) Basic and diluted EPS after extraordinary items	0.03	0.000	0.04
17.	Public Shareholding
	-Number of Shares	42006811	42006811	30256989
	- Percentage of Shareholding	49.44%	49.44%	49.44%
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	30256989	30256989	30256989
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	70.43%	70.43%	70.43%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	35.61%	35.61%	35.61%
	b) Non Encumbered
	- Number of Shares	12702900	12702900	12702900
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	29.57%	29.57%	29.57%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	14.95%	14.95%	14.95%

Particulars	Quarter Ended 31.03.2012
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

NOTES:

1. The above results were reviewed by the Audit Committee and approved by Board of Directors in its meeting held on 15th May, 2012.

2. The statutory auditors have conducted a limited review on above results.

3. The financial statements have been prepared as per Revised Schedule VI of Companies Act, 1956. Accordingly, corresponding financial figures have been regrouped / re-classified, wherever necessary, to make them comparable with the figures of current quarter / year.

4. During the period, pursuant to authority drawn from shareholders in their meeting held on 05.01.2012, the Board has issued and allotted Rs. 320.000 Millions Convertible Warrants on preferential allotment basis to Strategic Investors. Company has received application money to the extent of 25% of value of Warrants from the Investors and the same have been fully utilized towards the purpose of issue for which it had been raised.

5. The Company is manufacturing Ferro Alloys and Sponge Iron, which is basically used in Iron and Steel Industry. Further power generated in the company in its power plant is used for captive as well as trading purpose. In view of this, the company has to consider “Iron and Steel” and “Power” as Primary Reportable business segment, as per Accounting Standard -17, Segment Reporting issued by The Institute of Chartered Accountants of India. However, due to substantial competition, risk, on-going position of Company and largely in the interest of the Company as well as interest of the stake holders involved, the management has not made disclosure of Primary Reportable segment as per Accounting Standard - 17. Further, in view of the fact that the Company has its business within the geographical territory of India, Company has considered “INDIAN GEOGRAPHY” as the only secondary reportable business segment, as per the Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

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. 55.59
UK Pound	1	Rs. 87.34
Euro	1	Rs. 70.66

INFORMATION DETAILS

Information Gathered by :	--
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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

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

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

RATING EXPLANATIONS

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.