MIRA INFORM REPORT

Report Date :

25.05.2012

IDENTIFICATION DETAILS

Name :	R. L. STEELS AND ENERGY LIMITED (w.e.f. 06.08.1985)
Formerly Known As :	R. L. STEELS LIMITED
Registered Office :	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.08.1985
Com. Reg. No.:	021690
Capital Investment / Paid-up Capital :	Rs. 115.534 Millions
CIN No.: [Company Identification No.]	U27202DL1985PLC021690
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of Spring Steel flats, special Alloy steel - Rounds and RCS and various profile sections.
No. of Employees :	Information Denied by Management

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Financials of the company appears to be goods. 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 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.

INFORMATION DENIED

Management Non Co-operative (91-2431-251163)

LOCATIONS

Registered Office :	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	corporate@rlsteel.com delhioffice@rlsteels.com
Website :	http://www.rlsteels.com http://aurangabad.indiabizclub.com
Corporate Office:	Chitegaon, Paithan Road Gut No. 78/81, Pangra Shivar, Aurangabad – 431107, Maharashtra, India
Tel. No.:	91-2431-251163/251453/251659/251667
Fax No.:	91-2431-251879
E-Mail :	admin@rlsteels.com
Branches:	Located at Mumbai Chennai Pune
Overseas Office:	M/S Pan Gulf International General Trading L.L.C P.O. Box No. 7067, Sharjah, United Arab Emirates (U.A.E)
Tel No.:	+00 9716 5346454
Fax No.:	+00 9716 5346414
E-Mail :	pgi@emirates.net.ae anshul_steel@yahoo.com

DIRECTORS

As on 27.09.2011

Name :	Mr. R L Gupta
Designation :	Director
Address :	58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India
Date of Appointment :	25.03.1996
DIN No.:	00061861
Name :	Mr. Sunil Todi
Designation :	Director
Address :	Plot No – 40, Sector N -1, Aurangabad – 431001, Maharashtra, India
Date of Appointment :	25.03.1996
DIN No.:	00061952
Name :	Mr. N K Gupta
Designation :	Director
Address :	58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India
Date of Appointment :	15.01.2008
DIN No.:	0006228
Name :	Mr. Nitin Gupta
Designation :	Director
Address :	58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India
Date of Appointment :	30.06.2004
DIN No.:	00062041

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2010

Names of Shareholders	No. of Shares
Raghunandan Lal Gupta	1578120
Raghunandan Lal Gupta HUF	1046540
Usha Gupta	477640
Akar Tools Limited, India	945540
Sushiladevi Gupta	1224000
Akar Tools Limited Unit Iv	683000
Kathiawad Invest Private Limited, India	836680
Gupta Concast Limited	236400
Shatrunji Investment Private Limited, India	256600
Sant Eknath Rolling Mills	212000
Hari Om Trading and Agencies Limited, India	59600
Pan Gulf General Trading Company LLC Dubai	173760
Shanghai Gulf Geenral Trading Company LLC Dubai	522560
Aurangabad Forging Private Limited, India	370000
Akar Alloys Private Limited, India	204600
Lavanya Finvest Private Limited, India	274200
Niharika Gupta	278000
Total	9379240

As on 21.03.2012

Names of Allotees	No. of Shares
Akar Alloys Private Limited, India	63300
Gupta Concast Limited, India	9000
Kathiawad Invest Private Limited, India	318000
Lavanya Finvest Private Limited, India	6400
Shatrunji Investment Private Limited, India	6000
Aurangabad Forging Private Limited, India	6000
Raghunandan Lal Gupta	17000
Raghunandan Lal Gupta HUF	127000
N K Gupta	2000
Usha Gupta	20000
Sushiladevi Gupta	20000
Niharika Gupta	4500
Total	599200

As on 03.10.2011

Names of Allotees	No. of Shares
Akar Alloys Private Limited, India	200000
Akar Tools Limited, India	410000
Gupta Concast Limited, India	60000
Kathiawad Invest Private Limited, India	42000
Lavanya Finvest Private Limited, India	20000
Shatrunji Investment Private Limited, India	18000
Aurangabad Forging Private Limited, India	4000
Raghunandan Lal Gupta HUF	88000
Raghunandan Lal Gupta Occ. Business	342000
Nitin Gupta Occ. Business	88000
N K Gupta Occ. Business	16000
Usha Gupta Occ. Business	28000
Sushiladevi Gupta	18000
Niharika Gupta	20000
Total	1354000

As on 21.03.2012

Names of Allotees	No. of Shares
Akar Alloys Private Limited, India	47000
Lavanya Finvest Private Limited, India	4000
Shatrunji Investment Private Limited, India	48000
Aurangabad Forging Private Limited, India	4000
Raghunandan Lal Gupta Occ. Business	102000
N K Gupta Occ. Business	12000
Sushiladevi Gupta Occ. Business	4000
Total	221000

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	7.00
Bodies corporate	54.00
Directors or relatives of Directors	39.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Spring Steel flats, special Alloy steel - Rounds and RCS and various profile sections.

Products :

Product Description	Item Code
MS Billets	72071920
AS Billets	72249091
Non Alloy Steel Flat	72149990

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Installed Capacity
SMS	MT	144000
RMD	MT	147000

GENERAL INFORMATION

Customer:

· Lucas TVS Limited

· L. G. Balkrishnan and Bros. Limited

· Ashok Leyland Limited

· Bharat Forge Limited

· Kalyani Forge Limited

· Jonas Woodhead Spring Limitedand

· Lamina Suspension Products Limited

· Bharat Springs Limited

· Greaves Limited

· Trinity Enginners Private Limited

· Cromption Greaves

· Amforge Industries Limited

· MGM Forging Private Limited

· Varsha Forging Limited

· Bomaby Forging Limited

· Amtek Auto Industries Limited

· Praveen Industries

No. of Employees :

Information Denied by Management

Bankers :

· Punjab National Bank, Aurangpura, Aurangabad – 431001, Maharashtra, India

· Canara Bank

· IDBI Bank Limited

· The Karur Vysaya Bank Limited

· State Bank of India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans others secured	637.320	463.511
Working capital loans others secured	926.790	718.365
Loans taken for vehicles secured	5.980	9.007
Total	1570.090	1190.883
Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	100.819	103.423
Deferred sales tax loan unsecured	36.641	37.334
Other debt unsecured	19.500	19.500
Total	156.960	160.257

Banking Relations :	--
Auditors :
Name :	A K Bagadia and Company Chartered Accountant
Address :	37 Sopariwala House 293, Princes Street Mumbai – 400002, Maharashtra, India
PAN.:	SSBPB7126M
Related Party :	· Akar Tools Limited, India (CIN: L29220MH1989PLC052305) · Sant Eknath Rolling Mills Private Limited( (CIN: U27100DL1988PTC212068) · Kathiawad Invest Private Limited, India (CIN: U65990MH1988PTC045799)

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11553440	Equity Shares	Rs.10/- each	Rs. 115.534 Millions

As on 31.03.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9379240	Equity Shares	Rs.10/- each	Rs. 93.792 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		93.792	93.792	93.792
2] Share Application Money		52.350	24.650	0.000
3] Reserves & Surplus		415.169	368.662	339.265
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		561.311	487.104	433.057
LOAN FUNDS
1] Secured Loans		1570.090	1190.883	906.551
2] Unsecured Loans		156.960	160.257	166.322
TOTAL BORROWING		1727.050	1351.140	1072.873
DEFERRED TAX LIABILITIES		95.305	86.648	86.992
TOTAL		2383.666	1924.892	1592.922
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1034.525	991.673	831.033
Capital work-in-progress		136.009	9.683	3.197
INVESTMENT		60.304	60.304	55.301
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	579.094	485.952	526.461
	Sundry Debtors	782.373	539.401	400.724
	Cash & Bank Balances	91.126	99.146	49.847
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	113.080	109.114	110.817
Total Current Assets		1565.673	1233.613	1087.849
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	399.200	337.913	364.907
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	13.645	32.468	19.551
Total Current Liabilities		412.845	370.381	384.458
Net Current Assets		1152.825	863.232	703.391
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2383.666	1924.892	1592.922

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5511.619	4272.862	5114.375
		Other Income	70.956	58.519
		TOTAL (A)	5582.575	4331.381	5114.375
Less	EXPENSES
		Consumption material changes inventories	3574.854	2830.688
		Manufacturing service cost	1135.760	771.001
		Contract Cost	87.686	73.909
		Employee related expenses	97.039	93.054
		Administrative and Selling Expenses	265.030	203.653
		TOTAL (B)	5160.369	3972.305	4753.068
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		422.206	359.076	361.307
Less	FINANCIAL EXPENSES (D)		220.406	186.062	209.957
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		201.800	173.014	151.350
Less/ Add	DEPRECIATION/ AMORTISATION (F)		133.339	110.351	101.283
	PROFIT BEFORE TAX (E-F) (G)		68.461	62.663	50.067
Less	TAX (H)		21.954	24.488	21.878
	PROFIT AFTER TAX (G-H) (I)		46.507	38.175	28.189
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		196.557	182.160	177.749
Less	APPROPRIATIONS
		Transfer to General Reserve	15.000	15.000	15.000
		Proposed Dividend	0.000	7.503	7.503
		Provision for Dividend Tax	0.000	1.275	1.275
	BALANCE CARRIED TO THE B/S		228.064	196.557	182.160
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	1716.740	1178.221	2093.267
	TOTAL EARNINGS		1716.740	1178.221	2093.267
	Earnings Per Share (Rs.)		4.96	4.07	3.01

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.83	1.45	0.55
Net Profit Margin (PBT/Sales)	(%)	1.24	1.47	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.37	5.08	4.60
Return on Investment (ROI) (PBT/Networth)		0.12	0.13	0.12
Debt Equity Ratio (Total Liability/Networth)		0.74	0.76	0.89
Current Ratio (Current Asset/Current Liability)		3.79	3.33	2.83

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors due Small Micro Enterprise	0.000	291.862	333.632
Creditors due Others	399.200	46.051	31.275
Total	399.200	337.913	364.907

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	Yes
10) Designation of contact person	No
11) Turnover of firm for last three years	No
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	Yes
19) Payments terms	No
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

PROSPECTS

During the year, the company has achieved sales of Rs.6203.151 Millions (Previous Years Rs.4757.291 Millions) All the expansion programme of the company are on track. The company is keen to have backward integration and is in advance discussion for assured source of supply of raw material. The Indian economy has been growing at around 8.5%. Automobile Industry has also shown growth India’s automobile industry grew 27.4% from 14.06 million units in 2009-10 to 17.92 million units in 2010-11 with at as the economies of several nations returning to normalcy, the demand for steel basen of USD 73 billion, accounting for 6% of the country’s GDP. The net profit of the company has been increased from Rs.62.664 Millions to Rs.68.460 Millions. The company is confident that in the coming year there will be increase in the sales revenue as well as profitability.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27202DL1985PLC021690
Name of the company	R. L. STEELS AND ENERGY LIMITED.
Address of the registered office or of the principal place of business in India of the company	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002, India Email: corporate@rlsteels.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10094133
Type of charge	Immovable property
Particular of charge holder	Punjab National Bank, Aurangpura, Aurangabad – 431001, Maharashtra, India Email: bo0981@pnb.co.in
Nature of instrument creating charge	Memorandum of Mortgage for Creating Second Pari Passu Charge dated 08.02.2012 in favour of: 1) Punjab National Bank 2) Canara Bank 3) IDBI Bank Limited 4) The Karur Vysaya Bank Limited and 5) State Bank of India
Date of instrument Creating the charge	08.02.2012
Amount secured by the charge	Rs. 1874.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As specified in the respective agreement. Terms of Repayment As specified in the respective agreement. Margin As specified in the respective agreement. Extent and Operation of the charge Till the repayment as specified in the agreement.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All that piece and parcel of land, hereditaments and premises bearing Gut No. 81(1 H 06R sq. mtrs.) situated at village Pangra, Paithan Road, Distt. Aurangabad-431107. All that piece and parcel of land, hereditaments and premises bearing Gut No.Gut No. 78 (1 H 60R) situated at village Pangra, Paithan Road, Distt. Aurangabad-431107. All that piece and parcel of land, hereditaments and premises bearing Gut No.Gut No. 79 (1 H 12R) situated at village Pangra, Paithan Road, Distt. Aurangabad-431107. All that piece and parcel of land, hereditaments and premises bearing Gut No.Gut No. 80 (3 H 81R) situated at village Pangra, Paithan Road, Distt. Aurangabad-431107. All that piece and parcel of land, hereditaments and premises bearing Plot No.F-18/19, MIDC (15136 sq mtrs.), MIDC Chikalthana, Aurangabad-431210. All that piece and parcel of land, hereditaments and premises bearing Gut No.Gut No. 85 (1 H 24R) situated at village Pangra, Paithan Road, Distt. Aurangabad-431107. All that piece and parcel of land, hereditaments and premises bearing Gut No.Gut No. 86 (3 H 79R) situated at village Pangra, Paithan Road, Distt. Aurangabad-431107. All that piece and parcel of land, hereditaments and premises along with infrastructure created/erected or would be created/erected thereon to the above mentioned (i) to (vii) property.
Date of instrument modifying the charge	24.08.2010
Particulars of the present modification	The original joint charge dtd. 13.03.08 was for Rs. 860.000 Millions modified and increased to Rs. 1605.000 Millions vide MOM dated 24.08.2010 in favour of PNB(Rs. 709.000 Millions),Canara Bank(Rs. 339.000 Millions), IDBI Bank (Rs. 324.000 Millions) and The Karur Vysya Bank Limited Now this charge is further modified and increased to Rs. 1874.500 Millions vide MOM dated 08.02.2012 in favour of PNB(Rs. 796.500Millions),Canara Bank(Rs. 371.000 Millions), IDBI Bank (Rs. 324.000 Millions) ,The Karur Vysya Bank Limited(Rs.233.000 Millions) and SBI (Rs. 150.00 Millions)

Fixed Assets:

· Land Building

· Office Building

· Plant and Machinery

· Electrical

· Installation

· Furniture and Fixture

· Computer

· Office Equipment

· Gas Cylinder

· Lab Equipment

· Vehicle

· Kitchen Equipment

· Fire Fighting Equipment

· Pollution

AS PER WEBSITE DETAILS

COMPANY PROFILE

Subject an ISO 9001: 2000 company is one of the manufacturers of Spring Steel flats, special Alloy steel - Rounds and RCS and various profile sections. RLS is situated in the heart of power surplus State of Maharashtra and connected with rail, road and air. RLS is having excellent technology and infrastructure, competes with the best in steel manufacturing process. Quality of steel manufactured at RLS is well accepted in domestic as well as global markets.

RLS specializes in serving customer's requirement just in time. RLS undertake continuous technological developments through efficient, determined, dedicated and dynamic team of highly skilled professionals to meet stringent requirement of customers. RLS products used for various applications of Automobile, Engineering, Defense , Railway etc. RLS steel products used for manufacturing critical components such as spring assemblies and spring leaves for OEMs for heavy, medium and light vehicles. Flanges, connecting rods, connecting rod caps, axels, gears, axel shaft, link chain, drive shaft high tensile fasteners, elastic rail clips and helical springs.
RLS believe in total satisfaction and delight of customers.

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.56.28
UK Pound	1	Rs.88.25
Euro	1	Rs.70.81

INFORMATION DETAILS

Information Gathered by :	JML
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	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.