MIRA INFORM REPORT

Report Date :

08.05.2012

IDENTIFICATION DETAILS

Name :	CHANDAN STEEL LIMITED
Registered Office :	504, Sukh Sagar, N S Patkar Marg, Mumbai-400007, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.11.1989
Com. Reg. No.:	11 – 54206
Capital Investment / Paid-up Capital :	Rs.295.741 Millions
CIN No.: [Company Identification No.]	U99999MH1989PLC054206
TAN No.: [Tax Deduction & Collection Account No.]	MUMC03758G
PAN No.: [Permanent Account No.]	AAACC4713B
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Stainless Steel billets and electrical cable wires, Pipe fittings flanges.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3767328
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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.

INFORMATION PARTED BY

Name :	Mr. Manoj
Designation :	Accounts Manager
Contact No.:	91-22-66290600
Date :	08.05.2012

LOCATIONS

Registered Office :	504, Sukh Sagar, N S Patkar Marg, Mumbai - 400007, Maharashtra, India.
Tel. No.:	91-22-6629 0600
Fax No.:	91-22-6629 0633 / 34
E-Mail :	exports@chandansteel.net flanges@chandansteel.net chan_mumbai@rediffmail.com csl@chandansteel.net
Website :	http://www.chanssteel.net
Area :	2500 Sq. Ft.
Location :	Owned
Administrative Office :	74, 1^st Floor, C. P. Tank Road, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91–22–2389 0403 / 0477 / 0294
Fax No.:	91–22–2389 0514 / 374 1971
E-Mail :	chanmet@bom3.vsnl.net.in
Location :	Owned
Factory :	31, 32, 33B, 35and 36 GIDC, Umbergaon, District Valsad - 396171, Gujarat, India
Tel. No.:	91-260-2562066 / 4367 / 1166 / 3089999
Fax No.:	91-260-2562287 / 0103 / 3089872
E-Mail :	chanmet@ishwarn.com chanmet@rediffmail.com exports@chandansteel.net
Area :	200 Acres
Location :	Owned
Overseas Offices :	USA Europe China Hong Kong Singapore Brazil Dubai

DIRECTORS

As on 21.09.2011

Name :	Mr. Chunilal Ghamandiram Chandan
Designation :	Chairman and Whole Time Director
Address :	504, Chandralok-A, 97, Nepean Sea Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	26.01.1938
Date of Appointment :	01.09.2007
DIN No.:	00260127
Name :	Mr. Dilip Chunilal Chandan
Designation :	Managing Director
Address :	504, Chandralok-A, 97, Nepean Sea Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	01.01.1962
Date of Appointment :	01.09.2007
DIN No.:	00259884
Name :	Mr. Vijay Kumar Chunilal Chandan
Designation :	Managing Director
Address :	504, Chandralok-A, 97, Nepean Sea Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	05.06.1967
Date of Appointment :	01.09.2007
DIN No.:	00259988
Name :	Mr. Prahalad Hargovind Acharya
Designation :	Director
Address :	No.126/13, Garden View, Indulal Bhuva Marg, Wadala, Mumbai-400031, Maharashtra, India
Date of Birth/Age :	29.09.1943
Date of Appointment :	01.12.2004
DIN No.:	00260284
Name :	Mr. Prabhat Kumar Gopi Kaushik
Designation :	Whole-time Director
Address :	108, Afghan Street, P.O Jammu Tawi, Jammu Kashmir- 180001, India
Date of Birth/Age :	17.07.1951
Date of Appointment :	30.09.2006
DIN No.:	00292959
Name :	Mr. Jagdish Padmakant Joshipura
Designation :	Director
Address :	103, Vasundhara Flats, Near Pritam Nagar, Ellisbridge, Ahmedabad- 380006, Gujarat, India
Date of Birth/Age :	05.03.1951
Date of Appointment :	16.03.1997
DIN No.:	00260590
Name :	Mr. Praveen Chahanlal Jain
Designation :	Director
Address :	301, 3^rd Floor, Padmavati Darshan, A Wing, N.M. Joshi Marg, Lower Parel, Mumbai- 400013, Maharashtra, India
Date of Birth/Age :	01.06.1964
Date of Appointment :	15.07.2007
DIN No.:	00345045
Name :	Mr. Anil Kumar Dhar
Designation :	Director
Address :	Shreeji Sadan, 31, Surel, Near juges Blow, Ahmedabad, Gujarat, India
Date of Birth/Age :	10.09.1952
Date of Appointment :	11.07.2008
DIN No.:	01524239
Name :	Mr. Hiten Parekh
Designation :	Director
Address :	2-C, Shree Vijaya Bhavan, Altamount Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	17.08.1963
Date of Appointment :	23.03.2010
DIN No.:	01686215

KEY EXECUTIVES

Name :	Mr. Jayant Vasant Gudekar
Designation :	Company Secretary
Address :	B-8, Plot No. 543, Susmruti Co- Operatuve Society, Sector-5, Kandivali West, Mumbai- 400067, Maharashtra, India.
Date of Birth/Age :	02.10.1979
Date of Appointment :	01.08.2008
Din No.:	ALMPG9925H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.09.2011

Names of Shareholders (Equity Share)	No. of Shares
Chaitanya D Chandan	437290
Chirag Dilip Chandan	404991
Chunilal Chandan	2255340
Chinulal G Chandan HUF	921455
Dilip C. Chandan	2503793
Dilip C Chandan HUF	955468
Samuben C Chandan	1021952
Urmila Dilip Chandan	1307024
Usha V Chandan	1579915
Vijay C. Chandan	2489450
Vijay C Chandan HUF	1697462
TOTAL	15574140

Names of Shareholders (6% Non-Cumulative Redeemable Preference Shares)	No. of Shares
Chunilal Chandan	1000000
Vijay C. Chandan	2000000
Dilip C. Chandan	630000
Usha V Chandan	300000
Urmila Dilip Chandan	1070000
TOTAL	5000000

Names of Shareholders (9% Non-Cumulative Redeemable Preference Shares)	No. of Shares
Amber Solutions Private Limited, India	1000000
Adhiraj Construction Private Limited, India	2000000
Arnold Holding Limited, India	5430000
Keemtee Financial Service Limited, India	570000
TOTAL	9000000

As on 07.12.2011

Names of Allottees (Equity Share)	No. of Shares
Chinulal G Chandan	28677
Dilip C. Chandan	20780
Vijay C. Chandan	40575
Samuben C Chandan	8480
Urmila Dilip Chandan	21502
Usha V Chandan	16100
Chaitanya D Chandan	3448
Chaitanya D Chandan	3180
Chinulal G Chandan HUF	7106
Dilip C. Chandan HUF	13662
Vijay C. Chandan	13546
TOTAL	177056

Equity Share Break up (Percentage of Total Equity)

As on 21.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Stainless Steel billets and electrical cable wires, Pipe fittings flanges.

Products :

Products Description	ITC Code
S.S Angles	7222.40.20
S.S. Flats	7220.11.90
S.S. Billets	7218.99.10
S.S.R.C.S.	7222.19.92
S.S. Bright Bars	7222.20.12
Hot Roled Flats	7220.90.90
S.S. Wire Rods	7221.00.12
S.S. Wire	7223.00.91
S.S. Round Bars	7222.11.12
S.S. Flanges	7307.21.00

Exports :

Products :

Stainless Steel billets and electrical cable wires, Pipe fittings flanges.

Countries :

· Germany

· Denmark

Imports :

Products :

Raw Material

Countries :

· Singapore

· Germany

· UK

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

GENERAL INFORMATION

Customers:

· Wholesalers

· Retailers  

No. of Employees :

50 [Approximately]

Bankers :

• Gujarat State Financial Corporation, Jal Darshan Building, Ashram Road, Ahmedabad – 380009, Gujarat, India
• Barclays Bank PLC, 601/603, Ceejay House, Shivsagar, Estate, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
• United Bank of India, Corporate Finance Branch, 25, Sir P.M. Road, 2nd Floor, Fort, Mumbai – 400001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. In Millions)	As on 31.03.2010 (Rs. In Millions)
Rupee term loans banks secured	384.351	372.886
Working capital loans banks secured	1833.028	1525.495
Total	2217.379	1898.381
Unsecured Loan	As on 31.03.2011 (Rs. In Millions)	As on 31.03.2010 (Rs. In Millions)
Rupee term loans banks unsecured	50.611	0.000
Deposits related parties unsecured	0.000	151.100
Total	50.611	151.100

Banking Relations :	--
Auditors :
Name :	Shah and Taparia Chartered Accountants
Address :	12, Navjeevan Wadi, Dhobi Talao, Mumbai – 400 002, Maharashtra, India
Tel. No.:	91-22-66319266 / 67/ 68
Fax No.:	91-22-66319266 / 67/ 68
E-Mail :	info@shahtaparia.com
PAN.:	AAOFS0663D
Subsidiary Company :	Chandan Minerals Private Limited Kalikund Investment B.V. KDG Steel sp.z o.o.

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
15000000	Preference Shares	Rs.10/- each	Rs.150.000 Millions
	TOTAL		Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15751196	Equity Shares	Rs.10/- each	Rs.157.512 Millions
14000000	Preference Shares	Rs.10/- each	Rs.140.000 Millions
	TOTAL		Rs.297.512 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
15000000	Preference Shares	Rs.10/- each	Rs.150.000 Millions
	TOTAL		Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15574140	Equity Shares	Rs.10/- each	Rs.155.741 Millions
14000000	Preference Shares	Rs.10/- each	Rs.140.000 Millions
	TOTAL		Rs.295.741 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		295.741	201.056	194.080
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		646.091	494.495	433.740
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		941.832	695.551	627.820
LOAN FUNDS
1] Secured Loans		2217.379	1898.381	1258.320
2] Unsecured Loans		50.611	151.000	11.996
TOTAL BORROWING		2267.990	2049.381	1270.316
DEFERRED TAX LIABILITIES		176.522	148.264	147.294
TOTAL		3386.344	2893.196	2045.430
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1285.178	836.394	782.811
Capital work-in-progress		55.284	236.501	2.780
INVESTMENT		1.973	1.593	1.593
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1215.139	1214.179	992.379
	Sundry Debtors	959.114	779.255	497.678
	Cash & Bank Balances	226.591	146.342	119.642
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	548.215	384.810	284.622
Total Current Assets		2949.059	2524.586	1894.321
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	792.790	587.201	546.172
	Other Current Liabilities	58.296	63.760	42.136
	Provisions	54.064	54.917	47.767
Total Current Liabilities		905.150	705.878	636.075
Net Current Assets		2043.909	1818.708	1258.246
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3386.344	2893.196	2045.430

]

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	4492.786	2913.884	3644.408
		Other Income	71.998	49.970	74.168
		TOTAL (A)	4564.784	2963.854	3718.576
Less	EXPENSES
		Consumption materials changes inventories	3519.506	2203.024	3319.446
		Manufacturing other operating expenses	644.774	454.702
		Prior period items before tax	0.777	(1.534)	(25.078)
		TOTAL (B)	4165.057	2656.192	3344.524
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		399.727	307.662	374.052
Less	FINANCIAL EXPENSES (D)		118.395	169.669	211.420
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		281.332	137.993	162.632
Less/ Add	DEPRECIATION/ AMORTISATION (F)		65.272	53.877	49.593
	PROFIT BEFORE TAX (E-F) (G)		216.060	84.116	113.039
Less	TAX (H)		66.956	34.038	42.507
	PROFIT AFTER TAX (G-H) (I)		149.104	50.078	70.532
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		394.533	356.801	298.207
Less	APPROPRIATIONS
		Proposed Dividend on Equity and Preferences Shares	14.373	10.553	10.204
		Dividend Distribution Tax		1.793	1.734
	BALANCE CARRIED TO THE B/S		529.264	394.533	356.801
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports (Net of Return)	3938.872	2574.224	3181.022
		Foreign Exchange Rate Difference on export	81.141	(68.013)	7.254
	TOTAL EARNINGS		4020.013	2506.211	3188.276
	IMPORTS
		Raw Materials	1686.282	954.575	1411.297
		Capital Goods	80.082	72.467	17.129
	TOTAL IMPORTS		1766.364	1027.042	1428.426
	Earnings Per Share (Rs.)		8.84	3.15	4.86

Particulars	31.03.2012
Sales Turnover (Approximately)	5000.000

Expected Sales (2011-2012) : Rs.5200.000 Millions

The above information has been parted by Mr. Manoj (Accounts Manager)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.27	1.69	1.89
Net Profit Margin (PBT/Sales)	(%)	4.81	2.89	3.10
Return on Total Assets (PBT/Total Assets}	(%)	5.10	2.50	4.22
Return on Investment (ROI) (PBT/Networth)		0.23	0.12	0.18
Debt Equity Ratio (Total Liability/Networth)		3.37	3.96	3.04
Current Ratio (Current Asset/Current Liability)		3.26	3.58	2.98

LOCAL AGENCY FURTHER INFORMATION

NOTE: The registered office of the company has been shifted from 170/172 Kika Street R No.12, Gulalwadi Branch, Gulalwadi, Mumbai- 400004, Maharashtra, India to the present address w. e. f. 11.07.2007

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	Yes
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	Yes
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)	Yes
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

REVIEW OF OPERATIONS

During the year company has gross and net sales of Rs.4900.000 millions and Rs.4490.000 millions as compared to Rs.3160.000 millions and Rs.2910.000 millions for the previous year thereby showing an increase of 55% and 54% respectively. The profit after tax is at Rs.149.100 millions as compared to Rs.50.000 millions showing an increase of 198%. The sales volume also increased to 22306.170 MT as compared to the previous year volume of 19018.80 MT thereby showing an increase of 17.28%.

NEW PROJECTS

They had participated in the Vibrant Gujarat Global Investor’s Submit in 2009 and 2011 and had signed the Memorandum of Understanding with Gujarat Government for their ongoing projects. The Company is shifting its focus from commodity to the value added steel product lines in order to improve on top and bottom lines in future.

The Division has commenced Commercial production in Sept 2010 and is stabilizing now with many trial orders supplied. The Division is now registered with Public Sector Undertakings, engineering consultant firms and corporate bodies etc. They expect the steady flow of orders in the current year 2011-12.

The forging division has shown the performance in terms of volume and value in the year. This division has achieved the total shipment of 1410.583 tons of steel flanges valuing Rs.456.100 millions against the shipment of 861.517 ton valued at 224.300 millions in the previous year.

With the improved economic environment in Europe especially in Germany, the demand of steel forgings is growing and the company is expecting the performance to improve by way increased forging to 3600 MT and the top line at 125 Crores.

In order to achieve the ambitious targets of the year 2011-12 the company has acquired Zapp in Germany, which would also help us in acumen production at home and strategic marketing abroad.

ZAPP – GMBH – ACQUISITION

The Company has acquired Zapp-Gmbh which was under liquidation, a 140 year old Company and was a leader in Forgings and Flanges with many accreditions and approvals of worldwide leading flange users in oil and gas industry and Chemical industries.

This will help us in achieving their targeted sales of forgings. This acquisition will also help us in marketing their products in Europe without much difficulty with less value addition locally in the brand name of Zapp. This synergy in marketing and increased production with Zapp machines is the important consideration for this proposed acquisition.

The Company has also forayed into the existing emerging field of mining in the state of Orissa. The Company has forged two joint ventures to acquire significant acreage of land holding considerable net reserve potential in the field of minerals like Manganese, Iron ore, Gem stone, Bauxite, decorative stones, Limestone and Graphite. They propose to start the mining operation in the second half of the year 2012-13 after setting up the plants for processing the minerals in Orissa.

In this division construction work is completed and machinery installation is in progress. Trial production of first machine will be completed by June 2011 and commercial production will start in July 2011. The machinery division is using their products like Bright bars, Flats, Forgings, wires for manufacturing Textile machineries which are in good demand with the revival of the textile industry. This division is expected to contribute more robustly in 2011-12 and thereafter with good bottom-line prospects.

The Company is planning an increase in the capacity of the Melting Shop from 8 tons to 16 tons thereby doubling the annual capacity from 30000 tons to 60000 tons in order to cater the requirement of steel billets in the new seamless tubes and expanded forging division.

They propose to start the new melting capacity by November, 2011.

FORM 8

Corporate identity number of the company	U99999MH1989PLC054206
Name of the company	CHANDAN STEEL LIMITED
Address of the registered office or of the principal place of business in India of the company	Address : 504, Sukh Sagar, N S Patkar Marg, Mumbai-400007, Maharashtra, India Email : csl@chandansteeel.bet
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Immovable Property
Particular of charge holder	United Bank of India, Corporate Finance Branch, 25, Sir P.M. Road, 2nd Floor, Fort, Mumbai – 400001, Maharashtra, India
Nature of instrument creating charge	1. Recording extension of mortgage/ creation of mortgage by letter evidencing deposit of title deeds. 2. Deed of Hypothecation. 3. Memorandum of confirmation about arrangement for charges for the security crated by deposit of title deeds to properties mentioned along with charge preference stated in schedule 3 of the letter dated 09.12.2011 evidencing deposit of title deeds.
Date of instrument Creating the charge	09.12.2011
Amount secured by the charge	Rs.3352.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per respective banks sanctioned letter. Terms of Repayment As per respective banks sanctioned letter. Margin As per respective banks sanctioned letter. Extent and Operation of the charge Charge operates to secured the fund based and non fund based limits aggregating Rs.3332.500 millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Charge on land bearing Plot No. 31, 32, 33B, 34, 35, 36, 45, 46, 47, 48, 49/2,142, H-198, H-49 and 102/3 situated at GIDC, Taluka Umbergaon District Valsad, Gujarat Charge on land bearing Plot No. J-11, J-12, J-13, 102/2/P2 situated at GIDC, Taluka Umbergaon District Valsad, Gujarat. Charge on fixed assets and current assets installed at above mentioned plots situated at GIDC, Taluka Umbergaon District Valsad, Gujarat. Charge on Plot No. 46/2+11+13 in the name of Mr. Chunilal Chandan situated at Village Dehari, Taluka Umbergaon, District Valsad, and Gujarat. Charge on Plot No. 137 in the name of Mr. Dilip Chandan situated at GIDC, Taluka Umbergaon, District Valsad, Gujarat. Second charge on wind mills at Lamba and Vanku, situated at Gujarat.

FIXED ASSETS

• Free Hold Land
• Lease Hold Land
• Buildings
• Plant and Machinery
• Computers
• Office Equipments
• Furniture and Fixtures
• Vehicles  

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.53.34
UK Pound	1	Rs.86.09
Euro	1	Rs.69.36

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	SDA

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.