MIRA INFORM REPORT

Report Date :

09.10.2012

IDENTIFICATION DETAILS

Name :	HI-TECH PIPES LIMITED
Registered Office :	15/1 1^st Floor Asaf Ali Road, New Delhi – 110002
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.01.1985
Com. Reg. No.:	55-019750
Capital Investment/ Paid-up Capital:	Rs.4.680 Millions
CIN No.: [Company Identification No.]	U27202DL1985PLC019750
TAN No.: [Tax Deduction & Collection Account No.]	DELKH00408C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Supplier of Steel Coils, Pipes and Tubes
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1056000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established 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 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

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 :	15/1, 1^st Floor, Asaf Ali Road, New Delhi – 110002, India
Tel. No.:	91-11-23210501/ 41440011
Fax No.:	91-11-23210501/ 503
E-Mail :	hitech12@bol.net.in
Website :	www.hitechpipes.in
Unit I :	Plot No.10 Industrial Area, Sikandrabad – 203205, Uttar Pradesh, India
E-Mail :	info@hitechpipes.in
Unit I :	Plot No.16 Industrial Area, Sikandrabad – 203205, Uttar Pradesh, India
E-Mail :	info@hitechpipes.in
Mailing Address	64/5/16, Site – IV, Sahibabad industrial Area, Uttar Pradesh – 201010, India
Tel. No.:	91-120 4645000 (50 Lines)
Fax No.:	91-120-4645050

DIRECTORS

As on 27.09.2011

Name :

Mr. Ajay Kumar Bansal

Designation :

Managing Director

Address :

39/41, Punjabi Bagh, Delhi – 110026, India

Date of Birth/Age :

28.08.1957

Qualification :

Commerce Graduate

Date of Appointment :

01.10.2007

PAN No.:

AADPB6897R

Din No.:

01070123

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	U27202DL1985PLC019750	HI-TECH PIPES LIMITED	Managing director	01/10/2007	02/01/1985	-	Active	NO
2	U74899DL1987PTC028273	JNG CONSTRUCTION PRIVATE LIMITED	Director	05/09/1991	05/09/1991	-	Active	NO
3	U74899DL1993PTC053185	GUJRAT HI-TECH STEELS PRIVATE LIMITED	Director	21/04/1993	21/04/1993	-	Active	NO
4	U51909DL2006PTC146955	VARADA IMPEX PRIVATE LIMITED	Director	15/04/2006	15/04/2006	07/08/2007	Active	NO
5	U70101DL2005PTC139368	AKS BUILDCON PRIVATE LIMITED	Director	01/09/2006	01/09/2006	-	Active	NO
6	U01403DL2007PTC161018	HI-TECH AGROVISION PRIVATE LIMITED	Director	22/03/2007	22/03/2007	-	Active	NO
7	U72900DL2003PTC119120	WEBMAN TECHNOLOGIES PRIVATE LIMITED	Director	21/08/2007	24/07/2007	30/03/2009	Active	NO
8	U74899DL1986PTC025735	HARSO STEELS PRIVATE LIMITED	Director	19/02/2009	19/02/2009	-	Active	NO
9	U27320DL2011PTC214435	HTL METAL PRIVATE LIMITED	Director	20/02/2011	20/02/2011	-	Active	NO
10	U27100DL2011PTC214434	HTL ISPAT PRIVATE LIMITED	Director	20/02/2011	20/02/2011	-	Active	NO
11	U17291DL2012PTC233793	HI-TECH TERRYSOFT PRIVATE LIMITED	Director	30/03/2012	30/03/2012	-	Active	NO

Name :

Mr. Rakesh Kumar Bansal

Designation :

Director

Address :

9/41, Punjabi Bagh, Delhi – 110026, India

Date of Birth/Age :

01.09.1962

Qualification :

Law Graduate

Date of Appointment :

02.01.1985

PAN No.:

AADPB7361C

Din No.:

00119197

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	U27202DL1985PLC019750	HI-TECH PIPES LIMITED	Director	02/01/1985	02/01/1985	-	Active	NO
2	U74899DL1987PTC030025	RAVI DEVELOPERS PRIVATE LIMITED	Director	29/02/1992	29/02/1992	-	Active	NO
3	U74899DL1992PLC051244	APEX ISPAT LIMITED	Managing director	04/12/1992	04/12/1992	-	Active	NO
4	L27201DL1974PLC007114	RAMA STEEL TUBES LIMITED	Director	31/12/1996	31/12/1996	01/05/2007	Active	NO
5	U51909DL2006PTC146955	VARADA IMPEX PRIVATE LIMITED	Director	15/04/2006	15/04/2006	07/08/2007	Active	NO
6	U74899DL1986PTC025735	HARSO STEELS PRIVATE LIMITED	Director	01/05/2007	01/05/2007	-	Active	NO
7	U74899DL1993PTC053185	GUJRAT HI-TECH STEELS PRIVATE LIMITED	Director	19/02/2009	19/02/2009	-	Active	NO
8	U25200PB2010PTC033924	VALLABH POLYVIN PRIVATE LIMITED	Additional director	15/03/2011	15/03/2011	-	Active	NO

Name :

Mr. Anish Bansal

Designation :

Director

Address :

9/41, Punjabi Bagh, Delhi – 110026, India

Date of Birth/Age :

02.11.1984

Qualification :

B.Sc.(Economics in Banking and Finance)

Date of Appointment :

21.09.2009

PAN No.:

AHDPB2140G

Din No.:

00670250

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	U70101DL2005PTC139368	AKS BUILDCON PRIVATE LIMITED	Director	01/09/2006	01/09/2006	-	Active	NO
2	U01403DL2007PTC161018	HI-TECH AGROVISION PRIVATE LIMITED	Director	22/03/2007	22/03/2007	-	Active	NO
3	U27202DL1985PLC019750	HI-TECH PIPES LIMITED	Director	21/09/2009	19/02/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2011

Names of Shareholders	No. of Shares
Ajay Kumar Bansal	41300
Rakesh Kumar Bansal	20200
Anish Bansal	44800
Harbans Lal Bansal	14200
Jaswant Rai	200
Naresh Kumar Bansal	17400
Pardeep Kumar Bansal	400
Brij Lal Sharma	4000
Ashok Kumar Bansal	1000
Harbans Lal HUF	1600
Kumud Bansal	4000
Parveen Bansal	45000
Reeta Rani	4000
Santosh Kumari	2000
A.V.R. Trends International Private Limited, India	20000
Richi Bansal	9000
Vipul Bansal	46000
Abhinav Bansal	13600
Krati Bansal	6000
R.P. Aggarwal Karta R.P. Aggarwal and Sons HUF	10000
Shweta Bansal	45100
Ajay Kumar Bansal (HUF)	29200
Hi-tech Agrovision Private Limited, India	43000
AKS Buildcon Private Limited, India	46000
Total	468000

As on 27.09.2011

Category	Percentage
Bodies corporate	23.00
Directors or relatives of directors	70.00
Other top fifty shareholders	7.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Steel Coils, Pipes and Tubes

Products :

ITC Number	Product Description
72091730	C.R. Coil/Galv. Coil/W. Bems
72111910	M.S. Flat
72169910	W. Beams
73063090	Steel Tubes

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Tubes and Pipes	M.T	NA	5000	232283.500
C.R. Coil/Galv. Coil/W. Bems	M.T	NA	87000	45284.598
M.S. Flat	M.T	NA	30000	16762.165

Note: Installed Capacity is as certified by the Management but not verified by the Auditors, being a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Patiala, Surya Nagar, Rampuri, Ghaziabad -201011, Uttar Pradesh, India

Facilities :

Rs. in Millions

SECUREDLOAN	31.03.2011	31.03.2010
Rupee term loans banks secured	30.332	40.292
Working capital loans banks secured	552.304	453.611
Loans taken for vehicles secured	1.438	3.934
Total	584.074	497.837

Note:

Term loan Secured by first charge of Hypothecation of Plant and Machinery , Land and Building of the Company and gurantees by the Directors of the Company, Cash Credit with State Bank of Patiala Secured by hypothecation of stock of Steel Tubes, Pipes, C.R. Coil, MS Flat, Raw Materials, Goods in Process and finished products etc. and personal guarantees of the Directors of the Company and collateral security of hypothecation of existing Plant & Machinery and Book debts of the company and first charge on Land & building of the company, Vehicle Loan from Banks (Secured against hypothecation of respective vehicles.

UNSECUREDLOAN	31.03.2011	31.03.2010
Loans directors unsecured	25.864	20.181
Fixed Deposits unsecured	0.000	15.000
Other debt unsecured	23.314	19.919
Total	49.178	55.100

Banking Relations :	--
Auditors :
Name :	N.C. Aggarwal and Company Chartered Accountants
Address :	102, Hasrha House, Karampura Commercial Complex, New Delhi -110015, India
Tel. No.:	91-11-25920555-56
Pan No.: :	AAAFN9149H
Associates/Subsidiaries :	· Hi-Tech Agrovision Private Limited CIN No.: U01403DL2007PTC161018 · Harso Steels Private Limited CIN No.: U74899DL1986PTC025735 · Rama Steel Tubes Limited CIN No.: L27201DL1974PLC007114 · JNG Construction Private Limited CIN No.: U74899DL1987PTC028273

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
468000	Equity Share	Rs.10/- each	Rs.4.680 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		4.680	4.680	4.680
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		259.386	227.769	189.541
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		264.066	232.449	194.221
LOAN FUNDS
1] Secured Loans		584.074	497.837	440.913
2] Unsecured Loans		49.178	55.100	64.015
TOTAL BORROWING		633.252	552.937	504.928
DEFERRED TAX LIABILITIES		11.094	11.546	14.795
TOTAL		908.412	796.932	713.944
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		208.975	179.766	166.076
Capital work-in-progress		10.345	29.431	7.394
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	548.219	453.333	333.528
	Sundry Debtors	509.348	507.353	428.289
	Cash & Bank Balances	49.917	40.169	24.129
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	253.541	217.970	217.059
Total Current Assets		1361.025	1218.825	1003.005
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	483.373	430.365	343.425
	Other Current Liabilities	133.127	150.270	114.117
	Provisions	55.433	50.455	4.989
Total Current Liabilities		671.933	631.090	462.531
Net Current Assets		689.092	587.735	540.474
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		908.412	796.932	713.944

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3204.532	3111.256	3124.886
		Other Income	17.010	28.085	2.873
		TOTAL (A)	3221.542	3139.341	3127.759
Less	EXPENSES
		Consumption material Changes in inventories	2852.551	2807.790
		Manufacturing Service Cost	107.808	102.787
		Employee related Expenses	36.246	19.494
		Administrative selling other Expenses	76.144	67.788
		TOTAL (B)	3072.749	2997.859	3006.063
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		148.793	141.482	121.696
Less	FINANCIAL EXPENSES (D)		76.790	66.061	60.764
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		72.003	75.421	60.932
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.141	24.542	24.157
	PROFIT BEFORE TAX (E-F) (G)		45.862	50.879	36.775
Less	TAX (H)		14.246	12.651	13.806
	PROFIT AFTER TAX (G-H) (I)		31.616	38.228	22.969
	Previous year Tax Adjustment		0.000	0.000	(0.092)
	Previous Differed year Tax		0.000	0.000	(2.464)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		32.104	18.876	20.963
Less	APPROPRIATIONS		25.000	25.000	22.500
	BALANCE CARRIED TO THE B/S		38.720	32.104	18.876
	EARNINGS IN FOREIGN CURRENCY		24.835	39.839	193.896
	Earnings Per Share (Rs.)		67.56	82.00	49.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.97	1.22	0.73
Net Profit Margin (PBT/Sales)	(%)	1.43	1.64	1.18
Return on Total Assets (PBT/Total Assets}	(%)	2.92	3.64	3.14
Return on Investment (ROI) (PBT/Networth)		0.17	0.22	0.19
Debt Equity Ratio (Total Liability/Networth)		4.94	5.09	4.98
Current Ratio (Current Asset/Current Liability)		2.03	2.07	2.17

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

REVIEW OF OPERATIONS

During the year, the Company has manufactured 47718.683 M.T. C.R.Coils / Galv. Coils etc. as compared to 50341.525 M.T. in the previous year.

During the year the Company has manufactured 24945.995 M.T. of Steel Pipes as compared to 31868.945 M.T. in the previous year.

During the year the Company has manufactured 18181.335 M.T. of MS Flats as compared to 19321.830 M.T. in the previous year.

The Turnover including other income of the company has increased from Rs.3130.700 Millions to Rs.3217.500 Millions.

CONTINGENT LIABILITY:

Contingent Liabilities in respect of counter guarantee given to the Bankers against the Bank Guarantee and letter of credit of Rs.262.024 Millions (Previous year Rs.237.602 Millions) given by them on behalf of the Company.

Estimated amount of contracts remaining to be executed on Capital account and not provided for (Net of Advances) Rs.5.413 Millions (Previous year Rs.4.140 Millions).

Form 8

Corporate identity number of the company	U27202DL1985PLC019750
Name of the company	HI-TECH PIPES LIMITED
Address of the registered office or of the principal place of business in India of the company	15/1, 1^st Floor Asaf Ali Road, New Delhi – 110002, India Email: hitech12@bol.net.in
This form is for	Modification of Charge
Charge identification number of the charge to be modified	10212908
Type of charge	· Immovable Property · Movable Property · Movable Property · Others
Particular of charge holder	State Bank of Patiala Surya Nagar, Rampuri, Ghaziabad -201011, Uttar Pradesh, India Email: gargavendu.ca@gmail.com
Nature of instrument creating charge	Hypothecation of plant and machinery, book debts and stocks and equitable mortgage of building situated at Plot No. 10, Sikandrabad Industrial Area District Bulandshahar, Uttar Pradesh vide agreement dated on 08.04.2011.
Date of instrument Creating the charge	05.12.2011
Amount secured by the charge	Rs.1176.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : As may be determined by the bank from time to time Terms of Repayment : As per prescribed Agreement. Margin (1) 25% on Raw Materials (2) 25% on Finished Goods (3) Any Other( Specify) 10% on L/C 10% on B/C (3) 25% on Book Debts / Receivables Extent and Operation of the charge: Hypothecation of plant and machinery, book debts and stocks and equitable mortgage of building situated at Plot No. 10, Sikandrabad Industrial Area District Bulandshahar, Uttar Pradesh vide agreement dated on 05.12.2011
Short particulars of the property charged	Hypothecation of plant and machinery, Books Debts and Stocks vide agreement dated 08.04.2011. Equitable mortgage of Building situated at Plot No. 10, Sikandrabad Industrial Area District Bulandshahar, Uttar Pradesh CC Limit 650 Millions, L C Limits Rs.300.000 Millions Bank Guarantee limit Rs.80.000 Millions FLC Limit 82.500 Millions Term loans totaling to Rs.63.600 Millions
Date of instrument modifying the charge	08.04.2011
Particulars of the present modification	Enhancement of credit facility from 1077.900 Millions to 1176.100 Millions

Fixed Assets:

· Land

· Factory Shed and Building

· Plant and Machinery

· Office Equipment

· Computer

· Vehicle

· Furniture and Fixtures

· Rolls

· Truck

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.52.21
UK Pound	1	Rs.84.00
Euro	1	Rs.67.75

INFORMATION DETAILS

Report Prepared by :

VRN

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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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