MIRA INFORM REPORT

Report Date :

11.09.2012

IDENTIFICATION DETAILS

Name :	SLS TUBES PRIVATE LIMITED
Registered Office :	43, 1^ST Carpenter Street, C. P. Tank, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.09.2007
Com. Reg. No.:	11-173724
Capital Investment / Paid-up Capital :	Rs.110.425 Millions
CIN No.: [Company Identification No.]	U28990MH2007PTC173724
TAN No.: [Tax Deduction & Collection Account No.]	MUMSS8774C
PAN No.: [Permanent Account No.]	AALCS1837M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Stainless Steel Pipes, Carbon Steel Pipes, Seamless / Welded Pipes, Tubes and U-Tubes
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 630000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Company has performed well in the year 2010-2011. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for business dealing at usual trade terms and condition.

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	CARE
Rating	Long Term Bank Facilities = BB
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation
Date	Fab 2012

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A4
Rating Explanation	Having minimal degree of safety regarding timely payment of financial obligation it carry very high credit risk and are susceptible to default
Date	Fab 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 :	43, 1^ST Carpenter Street, C. P. Tank, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23813552 / 23813553
Fax No.:	91-22-23895550
E-Mail :	account@slstubes.com info@slstubes.com slsscorodite@rediffmail.com
Website :	http://www.slstubes.com
Corporate Office 1 :	SLS House, Plot No. 53-B, Opposite. General Company, Opposite Bank, Naranpura Crossing Road, Usmanpura, Ahmedabad-380013, Gujarat, India
Tel. No.:	91-79-2755 3406 / 07
Fax No.:	91-79-2755 3408
Corporate Office 2:	904, Venus Atlantis, Near Reliance Petrol Pump, Prahladnagar Road, Ahmedabad-380051, Gujarat India
Tel. No.:	91-79-49005000 (1 to 50) line
Fax No.:	91-79-49005050
E-Mail :	sales@slstubes.com export@slstubes.com
Factory 1:	Survey No.: 68-55 B/s. Simla Hotel Mehsana Highway, Billeswarpura - 382 729, District Gandhinagar, Gujarat India
Factory 2:	Survey No.: 55/3 B/s. Simla Hotel Mehsana Highway, District Gandhinagar, Billeswarpura - 382 729, Gujarat, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Mahesh Shantilal Sanghvi

Designation :

Director

Address :

B/805, Vasant vihar, Dafnala Road, Shahibag, Ahmedabad - 380004 Gujarat India

Date of Birth/Age :

23.10.1981

Date of Appointment :

01.09.2007

DIN No.:

01507210

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	U72200GJ2000PTC037382	SLS INDUSTRIES PRIVATE LIMITED	Director	18/02/2000	18/02/2000	-	Active	NO
2	U27109MH1994PTC163692	SLS STAINLESS PRIVATE LIMITED	Director	29/09/2007	1/4/2007	-	Active	NO
3	U28990MH2007PTC173724	SLS TUBES PRIVATE LIMITED	Director	1/9/2007	1/9/2007	-	Active	NO
4	U27200GJ1994PTC021540	OPTIMA STAINLESS PRIVATE LIMITED	Director	10/10/2007	10/10/2007	-	Active	NO

Name :

Mr. Shantilal Premchand Sanghvi

Designation :

Director

Address :

B-805, Vasant Vihar, Dafnala Road, Shahibag, Ahmedabad – 380004, Gujarat, India

Date of Birth/Age :

06.05.1958

Date of Appointment :

05.04.2008

DIN No.:

00483385

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	U27104MH1994PTC162301	SCORODITE STAINLESS INDIA PRIVATE LIMITED	Director	23/05/1994	23/05/1994	15/07/2008	Active	NO
2	U72200GJ2000PTC037382	SLS INDUSTRIES PRIVATE LIMITED	Director	18/02/2000	18/02/2000	-	Active	NO
3	U27109MH1994PTC163692	SLS STAINLESS PRIVATE LIMITED	Managing director	21/03/2007	21/03/2007	-	Active	NO
4	U27200GJ1994PTC021540	OPTIMA STAINLESS PRIVATE LIMITED	Director	10/10/2007	10/10/2007	-	Active	NO
5	U28990MH2007PTC173724	SLS TUBES PRIVATE LIMITED	Director	5/4/2008	5/4/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Mahesh Shantilal Sanghvi	553667
Manjulaben Shantilal Shanghvi	161000
Shantilal Premchand Sanghvi	348667
Pradip Shantilal Shanghvi	180000
Optima Stainless Private Limited, India	6659200
Mangalya Soft-Tech Limited, India	3140000
Total	11042534

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	88.74
Directors or relatives of Directors	11.26
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Stainless Steel Pipes, Carbon Steel Pipes, Seamless / Welded Pipes, Tubes and U-Tubes

Products :

PRODUCT DESCRIPTION	ITEM CODE NO.
S. S. Welded Pipes	7306.90
Stainless Steel Seamless Tubes	7304.90
Carbon Steel Seamless Tubes	7304.90

· Duplex and Super Duplex Pipes

· Titanium and Hastelloy Products

· Stainless Steel Welded / ERW Pipes and Tubes

· Stainless Steel Seamless Pipes and Tubes

· U Bend Tubes

· Carbon Steel/Alloy Steel Seamless Pipes

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Actual Production
Welded S.S. Tubes and Pipes	MT	3600
Seamless Tubes S.S.	MT	1800
Seamless Tubes C.S.	MT	7200

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Baroda, Ashram Road Branch, Vallabh Sadan, Opposite. Natraj Cinema, Ashram Road, Ahmedabad - 380009, Gujarat, India

· IDBI Bank Limited, Opposite Muncipal Staff Quarters, Near Lal Bunglow, Off. C. G. Road, Ahmedabad – 380006, Gujarat, India

· State Bank of Bikaner and Jaipur

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	42.140	52.087
Working capital loans secured	60.540	8.395
Loans taken for fixed assets secured	0.373	0.561
Total	103.053	61.043
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	2.891	3.367
Public deposits unsecured	29.077	11.300
Total	31.968	14.667

Banking Relations :	--
Auditors :
Name :	R.R.S. and Associates Chartered Accountants
Address :	211, Kamal Complex, Opposite. SBS, Near Stadium Circul, C.G. Road, Ahmedabad – 380009, Gujarat, India
PAN.:	AAFFR0472A

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11042534	Equity Shares	Rs.10/- each	Rs.110.425 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		110.425	22.678	2.680
2] Share Application Money		5.900	9.400	50.788
3] Reserves & Surplus		42.228	93.879	12.713
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.553	125.957	66.181
LOAN FUNDS
1] Secured Loans		103.053	61.043	0.000
2] Unsecured Loans		31.968	14.667	58.397
TOTAL BORROWING		135.021	75.710	58.397
DEFERRED TAX LIABILITIES		7.011	0.827	0.065
TOTAL		300.585	202.494	124.643
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		128.252	76.315	5.302
Capital work-in-progress		7.651	67.864	67.231
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	91.577	56.175	35.296
	Sundry Debtors	140.627	136.733	109.002
	Cash & Bank Balances	10.586	11.544	2.551
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	18.967	22.687	5.341
Total Current Assets		261.757	227.139	152.190
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	130.691	102.393
	Other Current Liabilities	83.763	39.552	0.788
	Provisions	13.316	2.985	1.851
Total Current Liabilities		97.079	173.228	105.032
Net Current Assets		164.678	53.911	47.158
MISCELLANEOUS EXPENSES		0.004	4.404	4.952
TOTAL		300.585	202.494	124.643

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	526.233	255.231	257.266
		Other Income		0.688S	0.048
		TOTAL (A)	526.233	255.919	257.314
Less	EXPENSES
		Cost of Goods		238.431	251.091
		Direct Expenses		1.795	0.000
		Administration, Selling and Other Expenses		2.860	3.031
		Personnel Expenses		3.925	0.473
		Preliminary Expenses Written Off		0.004	0.004
		TOTAL (B)	478.314	247.015	254.599
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial Expenses)	8.904	2.715
Less	FINANCIAL EXPENSES (D)			4.484	0.065
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.919	4.420	2.650
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.157	1.972	0.082
	PROFIT BEFORE TAX (E-F) (G)		42.762	2.448	2.568
Less	TAX (I)		15.184	1.272	0.896
	PROFIT AFTER TAX (G-I) (J)		27.578	1.176	1.672
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.569	2.393	0.721
	BALANCE CARRIED TO THE B/S		32.147	4.569	2.393
	Earnings Per Share (Rs.)		2.50	0.67	6.24

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.24	0.46	0.65
Net Profit Margin (PBT/Sales)	(%)	NA	0.96	1.00
Return on Total Assets (PBT/Total Assets}	(%)	10.96	0.81	1.63
Return on Investment (ROI) (PBT/Networth)		0.26	0.02	0.04
Debt Equity Ratio (Total Liability/Networth)		1.46	1.98	2.47
Current Ratio (Current Asset/Current Liability)		2.70	1.31	1.45

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	No
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	No
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 RESULTS

The total income during the year under report increased to Rs. 526.223 Millions as compared to the previous year’s total income of Rs. 255.919 Millions. The net profit of the company was Rs. 27.578 Millions as against previous year’s net profit of Rs. 1.176 Millions.

NOTE

Registered office of the company has been shifted from “9, Kamar Building, 1st Floor, Cawasji Patel Street, Fort, Mumbai – 400001, Maharashtra, India” to the present address w.e.f. 01.05.2008

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U28990MH2007PTC173724
Name of the company	SLS TUBES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	43, 1^ST Carpenter Street, C. P. Tank, Mumbai – 400004, Maharashtra, India account@slstubes.com
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Bank of Baroda, Ashram Road Branch, Vallabh Sadan, Opposite. Natraj Cinema, Ashram Road, Ahmedabad - 380009, Gujarat, India ashram@bankofbaroda.com
Nature of instrument creating charge	Instrument relating to deposit of Title deeds for creation of charge for various credit limit executed on 29.03.12 creating a, 1. First exclusive charge by way of equitable mortgage on immovable properties as described in clause 15 of this form.
Date of instrument Creating the charge	29.03.2012
Amount secured by the charge	Rs.296.680 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Term Loan and Cash Credit - 5.50% abv BR i.e.16.25% p.a. at Present at monthly rest Inland /Foreign L/C - -charges as per bank/FEDAI rules BG- -commission 0.2 and 0.25% resp. on Perf. and Fin. BG Terms of Repayment Term Loan - Term Loan is to be repaid in 47 monthly Installment of Rs. 0.780 Million each and Last installment of Rs.0.080 Million. Cash Credit - Validity 12 months/ Repayment on Demand /to be renewed yearly. Inland/import L/C DP/DA-90 days / Period-12 months / Repayment on Demand / to be renewed yearly. Margin 1. Term Loan - Term Loan is to be repaid in 47 monthly Installment of Rs. 0.780 Million each and Last installment of Rs.0.080 Million. 2. Cash Credit - 25% RM, SIP, FG, Stores and spares and Packing materials 40% on book debts up to 90 days 3. Inland/import L/C DP/DA-90 days - 20% cash margin 4. Inland / Foreign Bank Guarantee (performance / financial) - Cash margin @ 20% Extent and Operation of the charge Charge created by way of equitable mortgage by deposit of documents of all the assets described in Column No.15 herein below are mortgaged and charged to the bank to secure Various credit facilities of Rs. 296.680 Millions granted by the Bank to the Company (Borrower) plus interest, commission, costs, charges, expenses and other monies payable by the Company to the Bank. This charge operates as exclusively first Charge. Others Sr. No. Nature of Facility Limit Rs. in Millions 1. Term Loan (Take over) 36.680 2 Cash Credit 170.000 3. Inland/Import L/C DP/DA 40.000 4. Buyers credit (40.000) 5. Bank Guarantee 50.000 TOTAL 296.680
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Block no 77/p, 68/p/5, Survey no 55/p/3, Near Simla Hotel, Mehsana Highway, Village Bileshwarpura, District Gandhinagar Flat No 243, 24th Floor, Siddheshdarshan Khetwadi Main Road, Girgaon, Khetwadi, Mumbai SLS House, Plot No 53B, S.P No 3, C.S No 820, Opposite General Co-Op Bank, Near Naranpura Railway Crossing, Ahmedabad-380013

FIXED ASSETS

• Land and land Development
• Factory Shed Building
• Plant and Machinery
• Electrical Fittings and Fixtures
• Computer
• Office Building
• Camera
• Furniture and Fixtures
• Office Equipments
• Freeze
• Vehicles

WEBSITE DETAILS

PROFILE

Established in the year 2007, Subject, is a Mumbai based manufacturers, suppliers and exporters of seamless and welded pipes, tubes including U-Tubes, flanges and fittings that are available in Stainless Steel, Carbon Steel, Titanium and Hastelloy. The complete product range they deal in includes Duplex Steel Pipes, Super Duplex Steel Pipes, Titanium Pipes and Tubes, Titanium Flanges, Titanium Fittings, Hastelloy Pipes and Tubes, Hastelloy Flanges, Hastelloy Fittings and Stainless Steel Fittings. Further, they also offer Welded / ERW Pipes and Tubes, Seamless Pipes and Tubes, U Bend Tubes and Carbon Steel/Alloy Steel Seamless Pipes.

Their business operations are led by Mr. Shanti Bhai Sanghvi, who holds with him extensive experience in this industry. His dedicated support and visionary guidance has helped then in emerging as a leading player in this industry. Further, the service support of experienced industry professionals also allow then to deliver stainless steel and carbon steel pipes and tubes in a wide range of finishes as demanded by their customers.

Operating from their registered office located at Ahmadabad and corporate office located at Mumbai, today, they are successfully catering to the challenging requirements of diverse industries. Their expertise in bringing out innovation in the offered product range and consistent approach in delivering quality products at competitive prices has also helped us in sustaining the end product demands of today’s highly competitive market place.

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.55.52
UK Pound	1	Rs.88.49
Euro	1	Rs.70.20

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.