MIRA INFORM REPORT

Report Date :

05.11.2012

IDENTIFICATION DETAILS

Name :	GANGA IRON AND STEEL TRADING COMPANY LIMITED
Registered Office :	29-A, Small Factory Area, Bagadganj, Nagpur – 440 008, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.06.2008
Com. Reg. No.:	11-183081
Capital Investment / Paid-up Capital :	Rs.122.523 millions
CIN No.: [Company Identification No.]	U27310MH2008PLC183081
TAN No.: [Tax Deduction & Collection Account No.]	NGPG02516D
TIN No.:	27220702786
PAN No.: [Permanent Account No.]	AADCG2390R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Dealer of Iron and Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It is an authorised distributor for Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, Kamdhenu Isapt Limited etc. There appears huge external borrowings recorded by the company. It has recorded a healthy growth in its income from operations during 2011. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB+ (Long Term Rating)
Rating Explanation	Moderate risk of default.
Date	July 20, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Corporate Office/ Stock Yard and Godown 1 :	29-A, Small Factory Area, Bagadganj, Nagpur – 440 008, Maharashtra, India
Tel. No.:	91-712-2771428/ 2779358/ 2730062
Fax No.:	91-712-2765250
E-Mail :	gangairon@yahoo.co.in
Website :	http://www.gangasteel.com
Branch Office 1 :	156, Light Industrial Area, Bhilai – 490 026, Chhattisgarh, India
Tel. No.:	91-788-2285762/ 2286196
Fax No.:	91-788-2285018
E-Mail :	gangaironsteel@gmail.com
Branch Office 2 :	Sant Tukdoji Ward, Near Taj Engineering, N.H.No.6, Bhandara – 441 904, Maharashtra, India
Stock Yard and Godown 2 :	Plot No.79-80, At Bhanewadi, Near Pardi Octroi Naka, Nagpur – 440 008, Maharashtra, India
Stock Yard and Godown 3 :	D-2, MIDC Industrial Area, Butibori, Nagpur – 440 018, Maharashtra, India
Stock Yard and Godown 4 :	Sant Tukdoji Ward, Near Taj Engineering, N.H.No.6, Bhandara - 441 904, Maharashtra, India

DIRECTORS

As on 30.09.2011

Name :

Mrs. Anju Mukesh Agrawal

Designation :

Director

Address :

287, Hariniketan, Wardhman Nagar, Nagpur – 440 008, Maharashtra, India

Date of Birth/Age :

19.01.1968

BA

Date of Appointment :

03.06.2008

DIN No.:

01712274

Other Directorship :

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	U27109MH1995PLC090023	KAUSHIK UDYOG LIMITED	Director	28/06/1995	28/06/1995	-	Active	NO
2	U27310MH2008PLC183081	GANGA IRON AND STEEL TRADING COMPANY LIMITED	Director	03/06/2008	03/06/2008	-	Active	NO

Name :

Mr. Mukesh Omprakash Agrawal

Designation :

Director

Address :

287, Hariniketan, Wardhman Nagar, Nagpur – 440 008, Maharashtra, India

Date of Birth/Age :

09.07.1968

BE

Date of Appointment :

03.06.2008

DIN No.:

01712337

Other Directorship :

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	U27109MH1995PLC090023	KAUSHIK UDYOG LIMITED	Director	30/09/2002	30/09/2002	-	Active	NO
2	U27310MH2008PLC183081	GANGA IRON AND STEEL TRADING COMPANY LIMITED	Director	03/06/2008	03/06/2008	-	Active	NO
3	U27310MH2010PTC211569	ANURAG IRON PRODUCTS PRIVATE LIMITED	Director	30/06/2011	30/06/2011	-	Active	NO

Name :

Mrs. Seema Gopal Agrawal

Designation :

Director

Address :

287, Wardhaman Nagar, Nagpur – 440 009, Maharashtra, India

Date of Birth/Age :

20.01.1969

Date of Appointment :

03.06.2008

DIN No.:

01712492

Other Directorship :

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	U27109MH1995PLC090023	KAUSHIK UDYOG LIMITED	Director	28/06/1995	28/06/1995	-	Active	NO
2	U27310MH2008PLC183081	GANGA IRON AND STEEL TRADING COMPANY LIMITED	Director	03/06/2008	03/06/2008	-	Active	NO

Name :

Mr. Gopal Omprakash Agrawal

Designation :

Director

Address :

287, Wardhaman Nagar, Nagpur – 440 009, Maharashtra, India

Date of Birth/Age :

25.10.1965

B. Com

Date of Appointment :

03.06.2008

DIN No.:

01712592

Other Directorship :

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	U27109MH1995PLC090023	KAUSHIK UDYOG LIMITED	Director	30/09/2002	30/09/2002	-	Active	NO
2	U27310MH2008PLC183081	GANGA IRON AND STEEL TRADING COMPANY LIMITED	Director	03/06/2008	03/06/2008	-	Active	NO
3	U27310MH2010PTC211569	ANURAG IRON PRODUCTS PRIVATE LIMITED	Director	30/06/2011	30/06/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ajay Agrawal
Designation :	Marketing Manager
Name :	Mr. Satish Kumar
Designation :	Marketing Manager
Name :	Mr. Dhanraj Billore
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Gopal Omprakash Agrawal	1080000
Seema Gopal Agrawal	4365000
Anju Mukesh Agrawal	3875000
Mukesh Omprakash Agrawal	615000
Anita Shrikant Agrawal	100000
Shrikant Agrawal	150000
Kaushik Udyog Limited, India	320000
Avinash Omprakash Jaiswal	5000
Nitesh Rajkumar Nagrani	4000
Ashok Kadulal Prajapati	5000
Chetan Ghanshyam Khinchi	6000
Pradeep Narbheram Dholakia	6000
Vipul Pradeep Dholakia	6000
Dinesh Harilal Fulwani	8000
Naneshwar Vithal Gajarlewar	4000
Sohan Sahetar Choudhary	6000
Mohd. Yunus Sheikh	6000
Ramgopal Pyarelal Malviya	10000
Shailendramani Hariwansma Tripathi	3000
Ramesh Fulchand Vakhariya	6000
Dheeraj Sanjay Khodke	4000
Omkar Bhaiyalal Soni	8000
Manohar A. Matwade	8000
Yogesh Kisan Sirame	4000
Chandrakant Tukaram Petkar	6000
Sachin Sudhakar Polkundwar	5000
Narendra Shankarrao Rohankar	4000
Dimple Amit Vakhariya	8000
Pravin Fullchand Vakhariya	4000
Mir Viquar Ali	4000
Harish Rameshrao Chouhan	4000
Narendra K. Chambhare	8000
Ashok Baliram Lede	5000
Praful Anantlal Dasariya	5000
Ravindra Kumar Krishana Kumar	10000
Digambersingh Balwantsingh Rawat	4000
Dharmendra Udaysingh Rawat	4000
Rahul Baburao Gurve	5000
Gopichand Dalatrao Gajbhiye	5000
Mohanr Shankar Gandhalavar	5000
Udaysingh Laxmansingh Rawat	4000
Raju Jyotirao Ghodeswar	5000
Tejram Kacharu Khobragade	4000
Pankaj Hiralal Dudhekar	4000
Rahul Haribhau Nagrale	4000
Dhiraj P. Gajbhiye	4000
Devendra Hedaoo	8000
Sandeep Ukey	6000
Kishor Sonbhadre	5000
Lakshmikant Chambhare	5000
Yogesh Kori	6000
Vishal Kamble	10000
Manoj Vanjani Proprietor of Vasan Agencies	20000
Ashok Vanjani Proprietor of Vasan Wines	27001
Sushil Jejani Proprietor of Jejani Enterprises	70000
Rajendrakumar Agrawal	10000
Prakashchandra Agrawal	5000
Pooja Hazare	4000
Kalpana Kundu	4000
Dilip Patne	6000
Supreme Company Limited, India	230000
Alembic Securities Private Limited, India	20600
Buniyad Chemicals Limited, India	99700
Alliance lntermediateries and Network Private Limited, India	60000
Volplast Limited, India	48000
Kinescope (India) Private Limited, India	100000
Mahutkarsh Securities and Finance Private Limited, India	265000
New Era Alkaloids and Export Limited, India	292500
Natura Hue Chem Limited, India	95500
Sandeep Suri	120000
Shakuntala Minerals Private Limited, India	20000
Total	12252301

As on 25.11.2011

Names of Allottees	No. of Shares
Meena Sharma	5600
Suryajyoti Associated Paper (Private) Limited, India	20000
Abha Rani Vinimay Private Limited, India	80000
Kinescope (India) Private Limited, India	30000
Kavita R. Agrawalla	9000
Total	144600

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	12.66
Directors or relatives of directors	83.13
Other top fifty shareholders	4.21
Total	100.00

BUSINESS DETAILS

Line of Business :

Dealer of Iron and Steel.

Products :

Item Code No. (ITC Code)	72
Product Description	Iron and Steel Products

v MS Angle

v MS Channel

v Beam

v TMT Bars

v MS Flat

v MS Round

v Billet

v Plate / Chequered Plate

v CR Coil and Sheet

v HR Coil and Sheet

v Wire Rods

v GC Sheet

v GP Sheet

v Rail

v Pipe

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, Plot No.51, Rajat Arcade, MIDC T. Point, Wadi, Nagpur – 440 023, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans others secured	1.548	0.480
Working capital loans banks secured	292.283	0.000
Total	293.831	0.480

Unsecured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	278.789	347.088
Total	278.789	347.088

Banking Relations :	--
Auditors :
Name :	Loya Bagri and Associates Chartered Accountants
Address :	Nagpur, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFL2607C
Related Parties :	Kaushik Udyog Limited D-2, MIDC Industrial Area, Butibori, Nagpur, Maharashtra, India Tel. No.: 91-7104-280205 Fax No.: 91-7104-280028 E-mail : kaushik_udyog@yahoo.co.in Ganga Iron and Steel Trading Company Ganga Udyog

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
12396901	Equity Shares	Rs.10/- each	Rs.123.969 millions

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions

Issued Capital :

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

Subscribed Capital :

No. of Shares	Type	Value	Amount
12396901	Equity Shares	Rs.10/- each	Rs.123.969 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
12252301	Equity Shares	Rs.10/- each	Rs.122.523 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		122.523	75.350	75.350
2] Share Application Money Pending Allotment		7.230	123.845	73.260
3] Reserves & Surplus		120.665	20.735	2.606
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		250.418	219.930	151.216
LOAN FUNDS
1] Secured Loans		293.831	0.480	0.000
2] Unsecured Loans		278.789	347.088	0.000
TOTAL BORROWING		572.620	347.568	0.000
DEFERRED TAX LIABILITIES		0.038	0.000	0.000
TOTAL		823.076	567.498	151.216
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.578	10.986	0.000
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.001	0.052
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	384.757	364.379	0.000
	Sundry Debtors	334.290	214.260	0.000
	Cash & Bank Balances	7.262	38.973	0.114
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	216.499	42.738	152.572
Total Current Assets		942.808	660.350	152.686
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	108.790	92.706	0.012
	Other Current Liabilities	7.520	1.223	0.000
	Provisions	15.000	9.910	1.510
Total Current Liabilities		131.310	103.839	1.522
Net Current Assets		811.498	556.511	151.164
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		823.076	567.498	151.216

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	2858.955	1924.427	0.000
		Other Income	5.448	4.490	4.947
		TOTAL (A)	2864.403	1928.917	4.947
Less	EXPENSES
		Consumption materials changes inventories	2716.287	1834.405	0.883
		Manufacturing service costs	27.050	15.532
		Employee related expenses	1.934	0.960
		Administrative selling other expenses	25.014	19.347
		TOTAL (B)	2770.285	1870.244	0.883
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		94.118	58.673	4.064
Less	INTEREST FINANCIAL EXPENSES (D)		46.927	28.755	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.191	29.918	4.064
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.117	1.794	0.000
	PROFIT BEFORE TAX (E-F) (G)		45.074	28.124	4.064
Less	TAX (H)		15.035	9.996	1.458
	PROFIT AFTER TAX (G-H) (I)		30.039	18.128	2.606
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		20.734	2.606	0.000
	BALANCE CARRIED TO THE B/S		NA	20.734	2.606
	Earnings Per Share (Rs.)		2.45	2.41	22.50

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.05	0.94	52.68
Net Profit Margin (PBT/Sales)	(%)	1.58	1.46	0.00
Return on Total Assets (PBT/Total Assets}	(%)	4.72	4.19	2.66
Return on Investment (ROI) (PBT/Networth)		0.18	0.13	0.03
Debt Equity Ratio (Total Liability/Networth)		2.81	2.05	0.01
Current Ratio (Current Asset/Current Liability)		7.18	6.36	100.32

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)	No
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
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

FINANCIAL PERFORMANCE:

The company posted another year of impressive results testifying to the robustness of the corporate strategy of creating multiple drivers of growth. The company recorded a Net Profit after tax Rs.30.039 millions during the year as against a Net Profit of Rs.18.128 millions during the previous financial year. In the years to come the company is looking forward to give to its valuable shareholders continued growth and profits.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27310MH2008PLC183081
Name of the company	GANGA IRON AND STEEL TRADING COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	29-A, Small Factory Area, Bagadganj, Nagpur – 440 008, Maharashtra, India E-Mail: gangairon@yahoo.co.in
This form is for	Modification of charge
Charge identification number of the modified	10225132
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	Bank of Baroda, Plot No.51, Rajat Arcade, MIDC T. Point, Wadi, Nagpur – 440 023, Maharashtra, India E-Mail: mca21@in.com
Nature of description of the instrument creating or modifying the charge	Supplemental Composite Agreement of Hypothecation of goods, book debts, movable machinery and vehicle.
Date of instrument Creating the charge	29.09.2011
Amount secured by the charge	Rs.300.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 3% above Bank rate i.e. 13.75% per annum at present, with monthly rests. Terms of Repayment: On demand. Margin: 25% on all types of stocks. 25% on book debts. Extent and Operation of the charge: The charge operates as a security on the properties of the company.
Short particulars of the property charged	Hypothecation of stock of steel i.e. round, angles, channel, flats, beams, flats, etc. and book debts of the company.
Particulars of the present modification	By present modification cash credit limit was increase from Rs.220.000 millions to Rs.300.000 millions. Thus total credit facilities stand at Rs.300.000 millions.

FIXED ASSETS:

v Buildings (Godown)

v Vehicles

v Trailors

v Generator

v Weigh Bridge

v Cranes

v Furniture, Fittings and Fittings

v Office Equipments

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 guiltyor 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.53.66
UK Pound	1	Rs.86.37
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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

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

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

RATING EXPLANATIONS

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

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