MIRA INFORM REPORT

Report Date :

26.06.2012

IDENTIFICATION DETAILS

Name :	STEMCOR INDIA PRIVATE LIMITED
Registered Office :	P/1, Hyde Lane, 9^th Floor, Johar Building, Kolkata – 700073, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.10.2003
Com. Reg. No.:	11-142850
Capital Investment / Paid-up Capital :	Rs.954.150 Millions
CIN No.: [Company Identification No.]	U51420MH2003PTC142850
TAN No.: [Tax Deduction & Collection Account No.]	MUMS36507C
PAN No.: [Permanent Account No.]	AAHCS9299R
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Steel Products.
No. of Employees:	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 5061800
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 :	P/1, Hyde Lane, 9^th Floor, Johar Building, Kolkata – 700073, West Bengal, India
Tel. No.:	91-33-22364601 / 22370935 / 22046666
Fax No.:	91-33-22364602 / 22046669
E-Mail :	angie.fernandes@stemcor.com
Website :	www.stemcor.com

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Matthew Graham Stock
Designation :	Managing Director
Address :	Block 16, Garden Court Complex, Phoenix Mills Compound, 462 S B Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Date of Birth/Age :	10.04.1968
Date of Appointment :	23.10.2003

Other Directorship:

Top of Form

Bottom of Form

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51420WB2003PTC161834	STEMCOR INDIA PRIVATE LIMITED	Managing director	15/02/2012	23/10/2003	30/04/2012	Active	NO
2	U27106OR2006PLC008914	BRAHMANI RIVER PELLETS LIMITED	Director	24/08/2006	24/08/2006	-	Active	NO
3	U13100WB1936PTC008817	ARYAN MINING & TRADING CORPN PVT LTD	Director	11/04/2007	11/04/2007	-	Active	NO
4	U23100MH1997PLC110901	AMBA RIVER COKE LIMITED	Nominee director	05/06/2009	05/06/2009	15/06/2011	Active	NO
5	U61200WB2011PTC158125	VEER SHIPPING PRIVATE LIMITED	Director	28/01/2011	28/01/2011	05/04/2011	Active	NO
6	U70102MH2011PTC217336	Veer Realcon Private Limited	Director	11/05/2011	11/05/2011	-	Active	NO
7	U67190MH2011PTC217322	Veer Broking Private Limited	Director	11/05/2011	11/05/2011	-	Active	NO
8	U51109MH2011FTC218149	STEMCOR MESA INDIA PRIVATE LIMITED	Director	01/06/2011	01/06/2011	-	Active	NO

Name :	Mr. William John Attenborough
Designation :	Director
Address :	Stemcor M.E.S.A.P.O. Box 37324, Suite 707, City Tower 1, Shaikh Zayed Road, Dubai NA, UAE
Date of Birth/Age :	10.07.1952
Date of Appointment :	23.10.2003

Other Directorship:

Top of Form

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51420WB2003PTC161834	STEMCOR INDIA PRIVATE LIMITED	Additional director	15/02/2012	23/10/2003	30/04/2012	Active	NO
2	U27106OR2006PLC008914	BRAHMANI RIVER PELLETS LIMITED	Additional director	18/03/2007	18/03/2007	-	Active	NO

Bottom of Form

Name :	Mr. Vineet Mehra
Designation :	Director
Address :	Apeejay House, 6^th Floor, 3, Dinshaw Waccha Road, Churchgate, Mumbai – 400 020, Maharashtra, India
Date of Birth/Age :	10.12.1980
Date of Appointment :	30.09.2008

Other Directorship:

Top of Form

Bottom of Form

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U20101DL1997PTC085762	RAY SOFTWARE PRIVATE LIMITED	Director	25/03/2004	25/03/2004	-	Active	NO
2	U51420WB2003PTC161834	STEMCOR INDIA PRIVATE LIMITED	Additional director	02/04/2012	31/08/2008	-	Active	NO
3	U13100WB1936PTC008817	ARYAN MINING & TRADING CORPN PVT LTD	Director	26/08/2009	21/10/2008	-	Active	NO
4	U23100MH1997PLC110901	AMBA RIVER COKE LIMITED	Director	05/09/2009	12/05/2009	15/06/2011	Active	NO
5	U70102MH2008PTC182233	Sasmita Estates Private Limited	Additional director	04/07/2009	04/07/2009	-	Active	NO
6	U13100WB2010PTC140900	GREEN VALLEY ENERGY VENTURES PRIVATE LIMITED	Director	11/01/2010	11/01/2010	18/04/2011	Active	NO
7	U61200WB2011PTC158125	VEER SHIPPING PRIVATE LIMITED	Director	28/01/2011	28/01/2011	11/11/2011	Active	NO
8	U67190MH2011PTC217322	Veer Broking Private Limited	Director	11/05/2011	11/05/2011	-	Active	NO
9	U51109MH2011FTC218149	STEMCOR MESA INDIA PRIVATE LIMITED	Director	01/06/2011	01/06/2011	-	Active	NO
10	U62200OR2000PTC006181	SAARC HELICOPTERS PRIVATE LIMITED	Director	16/08/2011	16/08/2011	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Reshma
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Stemcor Holdings Limited, UK	4452969
Ralph Oppenheimer	50001
Stemcor UK Limited	90403244
Stemcor Mesa DMCC	508792
Total	95415006

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Trader of Steel Products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Indusind Bank Limited, Savitri Towers, 3a, Upper Wood Street,, Kolkata - 700017, West Bengal, India

· ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

· Standard Chartered Bank,19, N S Road, Kolkata - 700001, West Bengal, India

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee Term Loans Secured	3456.550	552.402
TOTAL	3456.550	552.402
UNSECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee Term Loans other Unsecured	159.118	202.927
TOTAL	159.118	202.927

Banking Relations :	--
Financial Institution :	IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R.Kamani Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India
Auditors :
Name :	Todarwal and Todarwal Chartered Accountants
Address :	112, Maker Bhavan No. 3, 21, New Marine Lines, Mumbai – 400 020, Maharashtra, India
Ultimate Holding Company:	Stemcor Holdings Limited, UK
Holding Company by shareholding:	Stemcor UK Limited
Subsidiaries :	Aryan Mining and trading corporation Private Limited
Fellow Subsidiaries :	· Stemcor (SEA) PTE Limited · Stemcor MESA DMCC · Brahmani River Pellets Limited

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
95415006	Equity Shares	Rs.10/- each	Rs.954.150 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		954.150	307.350	307.350
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		311.300	94.606	0.000
4] (Accumulated Losses)		0.000	0.000	(101.632)
NETWORTH		1265.450	401.956	205.718
LOAN FUNDS
1] Secured Loans		3456.550	552.402	534.476
2] Unsecured Loans		159.118	202.927	221.923
TOTAL BORROWING		3615.668	755.329	756.399
DEFERRED TAX LIABILITIES		0.000	1.209	0.000
TOTAL		4881.118	1158.494	962.117
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		65.202	66.308	75.293
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		853.443	853.443	1062.192
DEFERREX TAX ASSETS		2.588	0.000	1.659
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	428.721	46.754	49.163
	Sundry Debtors	636.811	161.817	148.766
	Cash & Bank Balances	1594.621	335.630	385.052
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3965.879	1091.441	1159.492
Total Current Assets		6626.032	1635.642	1742.473
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	766.059	32.507	1911.668
	Other Current Liabilities	1819.600	1339.280
	Provisions	80.488	25.112	7.832
Total Current Liabilities		2666.147	1396.899	1919.500
Net Current Assets		3959.885	238.743	(177.027)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4881.118	1158.494	962.117

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		TOTAL	2805.131	395.518
Less	EXPENSES
		TOTAL	NA	NA
	PROFIT BEFORE TAX		246.833	202.875
Less	TAX		30.139	6.636
	PROFIT AFTER TAX		216.694	196.239
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		94.606	(101.632)
	BALANCE CARRIED TO THE B/S		311.300	94.606
	Earnings Per Share (Rs.)		4.61	6.38

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.72	49.62	NA
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.69	11.92	NA
Return on Investment (ROI) (PBT/Networth)		0.20	0.98	NA
Debt Equity Ratio (Total Liability/Networth)		4.69	5.35	13.01
Current Ratio (Current Asset/Current Liability)		2.49	1.17	0.91

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)	--
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	Yes
30) Major Shareholders, if available	Yes

Note:

The company changed its registered office from Apeejay House, 6^th Floor, 3, Dinshaw Waccha Road, Churchgate, Mumbai – 400 020, Maharashtra to Block No.16, Garden Court Complex, Phoenix Mill Compound, Mumbai – 400 013, Maharashtra, it has again been shifted to 10B and C, Nirmal, 241/ 242, Backbay Reclamation, Nariman Point, Mumbai – 400 021, Maharashtra, India.

Form 8:

Bankers Charges Report as per Registry

Corporate identity number of the company	U51420WB2003PTC161834
Name of the company	STEMCOR INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	P/1, Hyde Lane, 9th Floor, Johar Building, Kolkata – 700073, West Bengal, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	INDUSIND BANK LIMITED
Nature of instrument creating charge	Deed of Hypothecation by Borrower.
Date of instrument Creating the charge	30/03/2012
Amount secured by the charge	Rs.1500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest as may be stipulated by the bank from time to time. Terms of Repayment On demand. Margin As may be stipulated by Bank from time to time. Extent and Operation of the charge Hypothecation charge on inventory / receivables of the Company as described under Item No.15 as security for repayment of total facility/ies of Rs.1500.000 Millions together with all interest, costs, charges, expenses and other monies due and payable under the said facilities granted by the bank to the Company.
Short particulars of the property charged	Exclusive First Charge on inventory / receivable of Stemcor India Private Limited and advance given by Stemcor India Private Limited to Brahmani River Pellets Limited

FIXED ASSETS:

· Motor Car

· Electrical Equipment

· Office Equipment

· Telephone System

· Computers

· Furniture and Fixtures

· Plant and Machinery

· Air Conditioner

· Renovation of Office and Res.

PRESS RELEASE:

STEMCOR ACQUIRES STEEL SERVICE CENTRE IN FINLAND

29 May 2012

Stemcor, the world’s largest independent steel trader, has acquired Steel Team Oy, a steel service centre based at the deep-sea port of Uusikaupunki in Finland. Steel Team is a flat steel service centre serving the Scandinavian and Baltic countries. Customer industry segments include machine building, construction, electrical equipment and stockholding. SteelTeam offers a wide range of steel products including: hot rolled plates, coils and sheets; cold rolled coils, slits and sheets; galvanized coils, slits and sheets; and colour coated coils, slits and sheets.  It can cut sheets from coils up to 20mm thick and up to 2150mm wide, as well as slit coils up to 3mm thickness.

Stemcor has appointed Juha Yrjänä as Managing Director of Steel Team to replace Gustaf Kranck, Steel Team’s former owner, who is stepping down from the business.  Prior to joining Stemcor, Juha Yrjänä spent twenty years with Rautaruukki Oyj in different management positions in sales and processing.

Julian Verden, Group Managing Director at Stemcor, said: “Part of Stemcor’s growth plan is to expand down the steel supply chain in distribution, stockholding and service centres. The acquisition of Steel Team, with its strategic port location, will enable Stemcor to increase our market presence in Scandinavia. We are delighted that Juha has joined us and are committed to growing the business and providing the highest level of quality and service to Steel Team’s customers.”

Juha Yrjänä, Steel Team’s new Managing Director said: “SteelTeam now has a good opportunity to move into its next phase of development as a part of Stemcor. The company can prosper with the backing of a larger group while its customers can benefit from Stemcor’s global network and wide range of services.  As a part of the development process, the company will be renamed Stemcor Finland Oy.”

STEMCOR SECURES US$850M EUROPEAN REVOLVING CREDIT FACILITY

27 April 2012

Stemcor, the world’s largest independent steel trader, has signed a US$ 850,000,000 Revolving Credit Facility. The Facility was launched at the end of March 2012 with ABN AMRO Bank N.V., BNP Paribas, ING Bank N.V., Natixis, Société Générale Corporate and Investment Banking and Standard Chartered Bank appointed as Active Bookrunners and Mandated Lead Arrangers.

The Active Bookrunners were joined by Commonwealth Bank of Australia, Crédit Agricole Suisse SA, DBS Bank Ltd, London Branch, Garanti Bank International N.V., HSBC, HSH Nordbank AG, KfW IPEX-Bank GmbH, Nedbank Limited, UBS AG and UniCredit Bank AG who have committed to the Facility as Mandated Lead Arrangers and Bookrunners and by Bank Leumi, Bank of China (UK) Limited, Credit Europe Bank N.V., Credit Suisse AG, Deutsche Bank AG, DHB Bank (Demir-Halk Bank (Nederland) N.V.), Gulf International Bank, OCBC Bank, Rabobank, Raiffeisen Bank International AG and Sumitomo Mitsui Banking Corporation Europe Limited who have committed to the Facility as Mandated Lead Arrangers.

The Facility was launched at US$650,000,000 and was significantly oversubscribed and subsequently increased to US$850,000,000.  The syndicate comprises a total of 45 banks.

The Facility will be used for general corporate purposes and to refinance and cancel Stemcor’s existing US$ 772,500,000 Revolving Credit Facility dated 4th May 2011.

Michael Broom, Chief Financial Officer at Stemcor, said: “Despite the difficult trading conditions and current economic uncertainty, we are pleased with the continued support from our lending group in the refinance of our European revolving credit facility. We have had a strong response to the facility and taken advantage of the oversubscription offered, closing at a level higher than quoted at launch. The year ahead remains challenging for the sector, but we remain cautiously optimistic for the Group and are ready to take advantage of the upturn when it comes.”

STEMCOR ANNOUNCES FULL YEAR AUDITED RESULTS 2011

29 March 2012

HIGHLIGHTS

· Turnover increased by 22% on 2010 to £6.3bn.

· Tonnage invoiced remained static.

· Pre-tax profit of £65m down 22% on 2010, due to a challenging second half.

· Return on Shareholders’ Funds 9% compared to target of 25%.

· Substantial profit contribution from mining investments.

· Business units serving the oil & gas sector performed well.

· Investment in five service centres/stockholders during the year in Belgium, Portugal, Spain, the UK and the USA.

· Strong order book gives grounds for confidence going forward.

· Contribution anticipated in Q4 2012 from Brahmani River Pellets Limited, the Group’s new iron ore pellet plant in India.

Extracts from Chairman's statement

After a solid year in 2010 and a good start to 2011, our results for the full year were disappointing.  Our performance followed the pattern set by the world economy.  Stock markets fell in August and steel prices began to decline in September, as the prospects for the Eurozone appeared to deteriorate and economic uncertainty spread around the world.

We are reporting a Profit before Tax (“PBT”) of £65 million.  For the previous year, 2010, we reported a PBT of £84 million and for 2007, prior to the global financial crisis, £65 million.  2011 appears superficially to have been a relatively decent performance.  However, our non-mining operations contributed only a third as much to PBT in 2011 as they did in 2010.  As a result, not only did PBT reduce year on year, but a much larger proportion of it accrued to our mining partners.

The Profit Attributable to Stemcor shareholders after tax and deduction of minority interests (“AP”) was £22 million, which is the lowest figure since 2005, excluding the recession year of 2009.  The AP was low compared to the PBT because of the large minority and because of a high tax rate.  The Return on Shareholders’ Funds (“ROSF”), calculated as the AP return on Stemcor shareholders equity as at the start of the year, was 9%, compared to our target ROSF of 25%.  In recent years, apart from 2009, our ROSF has ranged from 21% to 44%.  The Group’s figures, with the exception of mining, were unsatisfactory.  Total tonnage invoiced was slightly up on 2010 but, if we take commission tonnage into account, the tonnage that the Group handled actually fell.  Our margins fell in the second half of the year.

Despite difficult economic conditions and problems in the Eurozone, the profit in our forward order book is higher now than it was a year ago and I am optimistic about our trading prospects.  Many of our downstream units are relatively new and satisfactory profits are only accruing as these units develop and mature.  In addition, Brahmani River Pellets Limited (“BRPL”), our pellet plant in India, will make a substantial contribution when it finally starts production.   This is now projected to take place in Q4 although, because we are keen to fully comply with stringent environmental regulations, there is always a risk that the start date may slip back.   The process of obtaining the necessary permissions is lengthy, but much progress has been made since this time last year, and there are now far fewer hurdles standing in the way of completion.   I still expect that BRPL will be commissioned during 2012 and will make a contribution to our bottom line going forward.  Better trading results and an anticipated contribution from BRPL therefore promise a brighter outlook for 2012.

I am relatively confident about prospects for the world economy.  North America, which was first into recession in 2007, now looks as though it will be first into renewed faster growth and hopefully this will spread throughout the rest of the world.  However, we live in volatile and dangerous times, growth is slowing in many of the emerging markets, Europe still has challenges to overcome, so a cautious approach to trading is required.

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.56.53
UK Pound	1	Rs.88.09
Euro	1	Rs.70.83

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		31

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.