MIRA INFORM REPORT

Report Date :

12.10.2012

IDENTIFICATION DETAILS

Name :	PANCHMAHAL STEEL LIMITED
Registered Office :	Plot No. 117, GIDC Industrial Estate, Kalol, District Panchmahal – 389 330, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.09.1972
Com. Reg. No.:	04 – 002153
Capital Investment / Paid-up Capital :	Rs. 189.044 millions
CIN No.: [Company Identification No.]	L2710GJ1972PLC002153
TAN No.: [Tax Deduction & Collection Account No.]	BRDP01051B
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacture of Stainless Steel Long Products in the form of Wire Rods, Bars and Wires.
No. of Employees :	7000 (Approximately)

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 5470000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some dip in the profitability of the company. However, networth appears to be satisfactory. 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 / Factory :	Plot No. 117, GIDC Industrial Estate, Kalol, District Panchmahals – 389 330, Gujarat, India
Tel. No.:	91-2676-304777
Fax No.:	91-2676-304888/304889
E-Mail :	psl.kal@rms.sprintrpg.ems.vsnl.net.in panchmahal@panchmahalstee.com sales@panchmahalsteel.com panchmahal@panchmahalsteel.co.in dnagar@panchmahalsteel.co.in
Website :	http://www.panchmahalstee.com
Corporate Office :	"Landmark", 7th Floor, Race Course Circle, Baroda - 390 007, Gujarat, India
Tel. No.:	91-265-3051777
Fax No.:	91-265-3051705

DIRECTORS

As on 31.03.2012

Name :	Mr. Ashok Malhotra
Designation :	Chairman and Managing Director
Date of Birth/Age :	27.08.1952
Qualification :	B. Com
Date of Appointment :	18.02.1976
Name :	Mr. Mohanraj M. Singhi
Designation :	Director
Date of Birth/Age :	19.12.1939
Qualification :	B.Com. LLB.
Date of Appointment :	24.03.1992
Name :	Mr. Nilesh B. Mehta
Designation :	Director
Date of Birth/Age :	24.04.1962
Qualification :	FCA, PGDM - IIM Ahmedabad
Experience :	Investment Banking, Private Equity and Fund related activities & Corporate Advisory services.
Date of Appointment :	26.12.1997
Other Directorship:	· Jyothy Laboratories Limited · Suashish Diamond Limited · Vikalpa Financial & Management Services Private Limited · Access Asset Manager Private Limited · Access Trusteeship Co. Private Limited · Aavishkaar Ventures Trustees Private Limited · Bhavitha Charitable Trust · Henkel India Limited
Name :	Mr. Amal Dhru
Designation :	Director
Date of Birth/Age :	17.09.1951
Qualification :	FCA, PGDM - IIM Ahmedabad
Experience :	Finance, Accounts, Taxation & Management Consultancy
Date of Appointment :	31.01.2004
Other Directorship:	· Sirhind Steel Limited · Comprehensive Finance Services Private Limited · Pahal Financial Services Private Ltd · FXB India Suraksha · Urja Products Private Limited · Indo-Amercian Chamber of Com. · Jupiter Oasis Holidays Private Limited
Name :	Mr. Milan Shah
Designation :	Director
Date of Birth/Age :	14.02.1960
Qualification :	B.Com, FCA, ACS
Date of Appointment :	01.09.2006
Name :	Mr. Hanish Malhotra
Designation :	Director (Marketing)
Name :	Mr. Pradeep Sharma
Designation :	Director (Operations)

KEY EXECUTIVES

Name :	Mr. Deepak Nagar
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on 30.06.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2113500	11.18
Bodies Corporate	10238313	54.16
Sub Total	12351813	65.34
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	12351813	65.34
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5700	0.03
Financial Institutions / Banks	576660	3.05
Insurance Companies	331000	1.75
Foreign Institutional Investors	1000	0.01
Sub Total	914360	4.84
(2) Non-Institutions
Bodies Corporate	4914425	26.00
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 millions	521324	2.76
Individual shareholders holding nominal share capital in excess of Rs. 0.100 millions	184485	0.98
Any Others (Specify)	18053	0.10
Non Resident Indians	505	0.00
Hindu Undivided Families	17548	0.09
Sub Total	5638287	29.83
Total Public shareholding (B)	6552647	34.66
Total (A)+(B)	18904460	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	18904460	0.00

BUSINESS DETAILS

Line of Business :

Manufacture of Stainless Steel Long Products in the form of Wire Rods, Bars and Wires.

Products :

ITC Code	Product Description
72221100	Rolled Products
72222000	Bright Bars
73261910	Forged Products
72189910	Steel Billets

PRODUCTION STATUS (As on 31.03.2012)

Class of Goods	Units	Registered Capacity	Installed Capacity (As certified by the Managing Director)
Steel Billets	M.T.	150,000	150,000
Bars, Rods, Coils & Wires	M.T.	150,000	72,000

GENERAL INFORMATION

No. of Employees :

7000 (Approximately)

Bankers :

State Bank of India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
(A)Debentures 5% Non Convertible Debentures (NCD - Series 2) Interest accrued but not due (B) Working Capital Advance a) From State Bank of India Cash Credit Bills Discounting Export Packing Credit	0.000 0.000 251.007 45.562 150.000	6.933 1.782 308.901 79.059 79.972
Total	446.569	476.647

NOTES:

(A)

The Debentures are secured by first pari passu charge over all the immovable and movable properties of the Company situated at the Registered Office of the Company at Kalol, District Panchmahals (Gujarat) and all movable properties, subject to the prior charge of working capital lenders over Inventories, Receivables and other chargeable Current Assets, in favour of M/s Axis Trustee Services Limited, the Debenture Trustees appointed for the benefit of the Debenture Holders. The 5% Non-Convertible Debentures - Series 2 (NCDs-series2) along with coupon rate are redeemable in 12 equal quarterly installments over a period of 3 years commencing from June 30, 2010 and ending on March 31, 2013.

(B)

The Working Capital Advances from State Bank of India are secured by first charge over the Inventories, Receivables and other chargeable Current Assets; second charge over the immovable properties situated at Plot No.117, GIDC Industrial Estate, Kalol, District Panchmahals and is further guaranteed by Chairman and Managing Director of the Company.

Banking Relations :	--
Auditors :
Name :	J.R.S Patel and Company Chartered Accountants
Address :	Vadodara, Gujarat, India
Memberships :	· All India Stainless Steel Industry Association · Indian Institute of Metals · International Stainless Steel Forum · Association of Indian Forging Industry · Engineering and Export promotion Council · Export Import Club of India · Indian Stainless Steel Association · Indo American Chamber of Commerce · Indo German Chamber of Commerce · Southern Africa Stainless Steel Development Association · Australian Stainless Steel Development Association
Associates/Subsidiaries :	· Amil Enterprises Private Limited, India · Honeyvick Enterprises Private Limited, India

CAPITAL STRUCTURE

As on 31.03.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs. 10/- each	Rs. 400.000

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
18904460	Equity Shares	Rs. 10/- each	Rs. 189.044 millions
	Add: Forfeited Equity Shares
5600	Forfeited Equity Shares	Rs.3 /-Each	Rs.0.017 Millions
4600	Forfeited Equity Shares	Rs.6/- Each	Rs.0.028 Millions
500	Forfeited Equity Shares	Rs.7/- Each	Rs.0.003 Millions
	TOTAL		Rs. 189.092 millions

NOTES:

1) Reconciliation of Issued, Subscribed and Paid up Share Capital

(Rs. in millions)

SHARE CAPITAL	31.03.2012
	No. of Shares	Face Value
Equity Shares at the beginning of the year	18904460	189.045
Add : Equity Shares allotted during the year	--	--
Equity Shares at the end of the year	18904460	189.045

2) Details of Shares held by each shareholder in excess of 5% of Paid up share capital

(Rs. in millions)

NAME OF SHARE HOLDER	31.03.2012
	No. of Shares held	% Holding in Shares
a) Mr.Ashok Malhotra	1234380	6.53
b) Honeyvick Enterprises Private Limited	6798000	35.96
c) Amil Enterprises Private Limited	3440313	18.20
d) Asset Reconstruction Company (India) Limited	3988920	21.10

3) The Company is having only one class of shares i.e Equity carrying a nominal value of Rs.10/- per share.

4) Every holder of the equity share of the Company is entitled to one vote per share held.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		189.092	189.092	180.018
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1178.576	1175.986	1006.790
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1367.668	1365.078	1186.808
LOAN FUNDS
1] Secured Loans		446.569	476.647	713.783
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		446.569	476.647	713.783
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1814.237	1841.725	1900.591
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1146.653	1220.590	1332.604
Capital work-in-progress		37.547	20.359	3.203
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		31.960	58.344	110.276
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1447.314	1393.268	1080.717
	Sundry Debtors	257.629	307.935	260.803
	Cash & Bank Balances	47.238	60.922	47.394
	Other Current Assets	6.992	6.315	0.000
	Loans & Advances	194.844	228.065	193.049
Total Current Assets		1954.017	1996.505	1581.963
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1052.957	1157.094	487.543
	Other Current Liabilities	185.900	175.728	537.161
	Provisions	117.088	121.256	102.756
Total Current Liabilities		1355.945	1454.078	1127.460
Net Current Assets		598.072	542.427	454.503
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1814.237	1841.725	1900.591

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4641.612	4046.041	2924.354
		Other Income	12.813	10.525	16.157
		TOTAL (A)	4654.425	4056.566	2940.511
Less	EXPENSES
		Cost of Materials Consumed	3228.287	2913.549	1989.320
		Manufacturing Expenses	791.805	681.364	579.053
		Changes in Inventory of Finished Goods	(104.347)	(214.679)	(209.607)
		Employee Benefits Expenses	183.167	165.346	151.222
		Other Expenses	253.561	110.855	0.000
		Administrative, General and Selling Expenses	0.000	0.000	72.353
		Excise Duty on Finished Goods	0.000	0.000	25.507
		TOTAL (B)	4352.473	3656.435	2607.848
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		301.952	400.131	332.663
Less	FINANCIAL EXPENSES (D)		96.390	88.289	41.197
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		205.562	311.842	291.466
Less/ Add	DEPRECIATION/ AMORTISATION (F)		120.274	139.705	137.168
Less	PRIOR PERIOD ITEMS		1.388	(1.047)	0.000
	PROFIT BEFORE TAX (E-F) (G)		83.900	173.184	154.298
Less	TAX (I)		26.383	57.364	8.563
	PROFIT AFTER TAX (G-I) (J)		57.517	115.820	145.735
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		381.541	298.321	244.209
Less	APPROPRIATIONS
		Transfer to Debenture Redemption Reserve	(3.900)	(34.400)	38.650
		Transfer to General Reserve	6.000	12.000	11.000
		Proposed Dividend	47.300	47.300	35.994
		Tax on Proposed Dividend	7.700	7.700	5.978
	BALANCE CARRIED TO THE B/S		324.441	381.541	298.321
	EARNINGS IN FOREIGN CURRENCY		2259.716	1455.264	576.157
	IMPORTS
		Raw Materials	1847.348	1608.884	1105.482
		Stores & Spares	64.841	28.977	50.489
		Capital Goods	4.860	13.281	0.000
	TOTAL IMPORTS		1917.049	1651.142	1155.971
	Earnings Per Share (Rs.)		3.04	6.26	10.38

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2012
	1^st Quarter
Net Sales	983.910
Total Expenditure	921.550
PBIDT (Excl OI)	62.360
Other Income	11.910
Operating Profit	74.270
Interest	25.640
Exceptional Items	0.000
PBDT	48.630
Depreciation	23.830
Profit Before Tax	24.830
Tax	8.120
Provisions and contingencies	0.000
Profit After Tax	16.710
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	16.710

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.23	2.85	4.96
Net Profit Margin (PBT/Sales)	(%)	1.80	4.28	5.17
Return on Total Assets (PBT/Total Assets}	(%)	2.70	5.38	5.19
Return on Investment (ROI) (PBT/Networth)		0.06	0.12	0.13
Debt Equity Ratio (Total Liability/Networth)		1.31	1.41	1.55
Current Ratio (Current Asset/Current Liability)		1.44	1.37	1.40

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	Yes
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	No
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	No

FINANCIAL RESTRUCTURING

The Company has fully implemented the Scheme of Compromise and/or Arrangement as approved by Hon'ble High Court of Gujarat. The matter related to dissenting creditor is pending before the Hon'ble High Court of Gujarat.

OPERATIONS
 
The sales and other income of the Company is Rs.4654.400 millions as against Rs.4056.500 millions in the previous year. The operating profit is Rs.289.100 millions as compared to Rs.389.600 millions in the previous year.
 
The global economic uncertainties, recessionary trends and depreciating rupee continue to create a challenging business environment. However, the Company is well poised to face these uncertainties and the management is confident and optimistic of the growth and bright future of the Company.
 
INDUSTRY STRUCTURE, DEVELOPMENTS AND OUTLOOK:
 
The Company is primarily engaged in the manufacture of stainless steel long products in the form of wire rods, bars and wires, which find application in a wide range of applications in engineering, construction and Infrastructure, automotive and railways, consumer durables, food processing and dairy industry, housing and pharmaceuticals.
 
The Company is an established and recognized quality producer of Stainless Steel long products and exporting around the world.
 
The business environment will continue to be challenging on account of the global and local uncertainties. However, the Company is well geared to meet these challenges and the management is confident and optimistic of the growth and bright future of the Company.
 
INTERNAL CONTROL SYSTEMS
 
The Company has proper and adequate systems of internal control ensuring efficiency of operations, statutory compliances, reporting and recording of transactions. The system is supported by management and internal audit.
 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30.06.2012

		Quarter Ended on
	PARTICULARS	30.06.2012
Sr.	PART - I	Unaudited
No.
1	(a) Income from Operations ( Net of Excise Duty)	961.677
	(b) Other Operating Income	22.233
	Total Income From Operations	983.910
2	Expenditure:
	a. Changes in Inventories of Finished Goods	(36.161)
	b. Cost of Materials Consumed	656.743
	c. Employee Benefits Expense	39.063
	d. Depreciation & Amortisation Expense	23.795
	e. Power and Fuel	1,08.871
	f. Manufacturing Expenses	69.831
	g. Other Expenses	83.207
	Total Expenses	945.349
3	Profit from Operations before Other Income & Finance Cost	38.561
4	Other Income	11.909
5	Profit before Interest	50.470
6	Finance Cost	25.638
7	Profit (+) / Loss(-) from Ordinary Activities before Tax	24.832
8	Tax Expense :
	a. Provision for Current Tax	4.968
	Less : MAT Credit Entitlement	(4.968)
	b. Deferred Tax	8.122
9	Net Profit (+) / Loss(-) from Ordinary Activities after Tax	16.710
10	Paid up Equity Share Capital ( Face value per share Rs.10/-)	189.092
11	Reserves excluding Revaluation Reserve
12	Basic & Diluted Earning Per Share (not annualised) Rs.	0.884
	PART - II
A 1	Particulars of Shareholding : Public Shareholding
	- Number of Shares	6,552,647
	- Percentage of Holding	34.66%
2	Promoters and Promoter Group Shareholding a. Pledged / Encumbered
	- Number of Shares	4,872,180
	- Percentage of Shares (as a % of total shareholding	39.45%
	of promoter and promoter group)
	- Percentage of Shares (as a % of total share capital of the Company	25.77%
	b. Non - Encumbered
	- Number of Shares	7,479,633
	- Percentage of Shares (as a % of total shareholding	60.55%
	of promoter and promoter group)
	- Percentage of Shares (as a % of total share capital of the Company	39.57%
B	Investor Complaints
	Pending at the beginning of the quarter
	Received during the quarter
	Disposed during the quarter
	Remaining unresolved at the end of the quarter

Notes:

1. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 27th July, 2012.

2. The Limited Review of these results has been carried out by the Statutory Auditors of the Company.

3. Dividend of Rs.2.50/- per Equity Share declared by the members at the Annual General Meeting held on 16th July, 2012 for the year ended 31st March, 2012 was paid on 18th July, 2012.

4. Previous quarters figures have been recast / regrouped wherever necessary.

CONTINGENT LIABILITY

Contingent Liability not provided for, in respect of: -

(Rs. in millions)

		31.03.2012
a)	Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances)	186,88,010
b)	Letter of Credits Outstanding	1465,22,599
c)	Claims against Company not acknowledged as debts	185,82,336
d)	Disputed Excise, Custom & Service Tax Liabilities	126,34,028
e)	Disputed Income Tax Liabilities	272,51,851
f)	Guarantee given to M.G.V.C.L. by Company's Banker	346,17,067

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above therefore no provision against is considered.

FIXED ASSETS

· Leasehold Land

· Land and Development

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Motor Vehicles.

· EDP Equipments

· 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.53.07
UK Pound	1	Rs.84.95
Euro	1	Rs.68.24

INFORMATION DETAILS

Report Prepared by :

NID

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	4
--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	YES
--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.