MIRA INFORM REPORT

Report Date :

19.04.2013

IDENTIFICATION DETAILS

Name :	HIRA POWER AND STEELS LIMITED (w.e.f. 02.01.2007)
Formerly Known As :	HIRA GLOBAL POWER AND STEELS LIMITED (w.e.f. 08.08.2006) JAIN CARBIDE AND CHEMICALS LIMITED
Registered Office :	557, 563 Urla Industrial Area, Raipur – 492001, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss Account)
Date of Incorporation :	27.07.1984
Com. Reg. No.:	10-002512
Capital Investment / Paid-up Capital :	Rs.43.991 Millions (As on: 31.03.2011)
CIN No.: [Company Identification No.]	U24117CT1984PLC002512
TAN No.: [Tax Deduction & Collection Account No.]	JBPJ004218
PAN No.: [Permanent Account No.]	AABCJ0138Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Ferro Alloys Products, Generation of Electricity and Mining Activity.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 4500000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The balance sheet of 2012 is not made available. As per available financials, the company is found to be performing well. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal business dealing 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	June 2012

Rating Agency Name	ICRA
Rating	A2 (Short Term Rating)
Rating Explanation	Strong degree of safety and low credit risk.
Date	June 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 :	557, 563 Urla Industrial Area, Raipur – 492001, Chhattisgarh, India
Tel. No.:	91-771-2323018 / 4082500 / 4082600
Fax No.:	91-771-4082501
E-Mail :	sanjaykedia@hpslindia.com ycrao65@gmail.com admin@hpslindia.com
Website :	http://www.hiragroupindia.com
City Office :	Om Kutir, Civil Lines, Raipur - 493111, Chhattisgarh, India
Tel. No.:	91-771-2429464
Fax No.:	91-771-2430531
E-Mail :	city_office@hpslindia.com

DIRECTORS

As on: 29.09.2012

Name :	Mr. Om Prakash Agrawal
Designation :	Managing Director
Address :	Om Kutir, Civil Lines, Raipur - 493111, Chhattisgarh, India
Date of Birth/Age :	15.03.1952
Qualification :	Graduate
Date of Appointment :	01.04.2008
DIN No.:	00839197
Name :	Mr. Vikas Agrawal
Designation :	Whole Time Director
Address :	Om Kutir, Civil Lines, Raipur - 493111, Chhattisgarh, India
Date of Birth/Age :	06.12.1980
Qualification :	Electrical Engineer
Date of Appointment :	04.06.2003
DIN No.:	01075816
Name :	Mr. Rahul Agrawal
Designation :	Whole Time Director
Address :	Om Kutir, Civil Lines, Raipur - 493111, Chhattisgarh, India
Date of Birth/Age :	27.06.1983
Qualification :	Engineer
Date of Appointment :	31.03.2004
DIN No.:	00495027
Name :	Mr. Devendra Pratap Singh
Designation :	Whole Time Director
Address :	Mig-2229, Housing Board Colony, Veersawarkar Nagar, Hirapur, Raipur, Chhattisgarh, India
Date of Birth/Age :	06.04.1968
Date of Appointment :	16.08.2012
DIN No.:	05354919
Name :	Mr. Alok Agrawal
Designation :	Director
Address :	Sushila, 5. Park Avenue, Choubey Colony, Raipur - 492001 Chhattisgarh, India
Date of Birth/Age :	05.07.1968
Date of Appointment :	29.10.2009
DIN No.:	00494805
Name :	Mr. Subhash Mahendru
Designation :	Director
Address :	B-2, HIG, MPHB Colony, Raipurnaka, Durg – 491001, Chhattisgarh, India
Date of Birth/Age :	10.02.1952
Date of Appointment :	21.06.2004
DIN No.:	01355122
Name :	Mr. Om Prakash Goyal
Designation :	Director
Address :	21/466, Kewal Cottage, Opposite Saggar Nursing Home Civil Lines Raipur- 492001, Chhattisgarh, India
Date of Birth/Age :	28.06.1954
Qualification :	Civil Engineer
Date of Appointment :	11.08.2008
DIN No.:	02320467
Name :	Mr. Kamal Keshore Gulati
Designation :	Whole Time Director
Address :	C-704, 7th Floor, Gorai Shivsambhu, Borivali (West), Mumbai - 400092, Maharashtra, India
Date of Birth/Age :	28.02.1959
Qualification :	M.A.(Economics)
Date of Appointment :	11.08.2008
DIN No.:	02332912

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
O.P. Agrawal	2108800
O.P. Agrawal (HUF)	477450
Rajdevi Agrawal	48650
Ekta Agrawal	30100
Vikas Agrawal	822000
Rahul Agrawal	829000
Stylowear Private Limited, India	19000
Revro Real Estate and Finance Private Limited, India	6500
Evero Properties and Finance Private Limited, India	2500
Antral Finance and Investment Private Limited, India	12100
Hira Global Alloys Limited, India	43000
Total	4399100

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	1.89
Directors or relatives of directors	98.11
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ferro Alloys Products, Generation of Electricity and Mining Activity.

Products :

Product Description	ITC Code
Ferro Manganese	72021100
Silico Manganese	72023000

PRODUCTION STATUS (As On 31.03.2011)

Particulars	Unit	Installed Capacity
Ferro Alloys:
Silico Manganese	MT	41000
Ferro Manganese	MT	46000
Ferro Silicon	MT	30000
Pig Iron	MT	45000
Power Plant
Power	MW	20

Note

1. The licenced and installed capacity as certified by the management.

2. The installed capacity of Ferro alloys plant depends upon the product manufactured by the Company. The installed capacity mentioned above is based on manufacture of single product I.e. in case of production of Silico Manganese the plant capacity is 35000 TPA and in case of production of Ferro Manganese in capacity is 40000 TPA. In case both the product is manufactured the capacity would vary depending upon the product mix.

Particulars	Unit	Actual Production
Silico Manganese	MT	11531.050
Ferro Manganese	MT	24502.900
Power Generation	In Units	160666201

GENERAL INFORMATION

Customers :

• Tata Motors Limited
• Mahindra and Mahindra Limited
• Greaves Cotton Limited
• Kalyani Steels Limited
• Mukand Limited (Hospet Steel Plant)
• Ispat Industries Limited
• Bhushan Steel and Strips Private Limited
• Kalyani Corporate Limited
• Bhilai Steel Plant
• Vishakhapatnam Steel Plant
• Bokaro Steel Plant
• Rourkela Steel Plant

No. of Employees :

Not Available

Bankers :

• Bank of India, 2^nd Floor, Ravi Bhawan, Sharda Chowk, Raipur - 492001, Chhattisgarh, India
• Bank of India, Main Branch, Samvet Shikhar Complex, Rajbandha Maidan, Raipur - 492001, Chhattisgarh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011
Rupee term loans banks secured (A)	123.802
Rupee term loans financial institutions secured	96.429
Working capital loans banks secured (B)	616.823
Other debt secured (C)	15.127
Total	852.181
Notes: (A) The above Loans are further secured by Personal guarantee of Promoters/ Directors (B) The above Loans are further Secured by Personal guarantee of Promoters/Directors. (C) Other Loans are secured by hypothecation of Vehicles

Banking Relations :	--
Auditors :
Name :	O. P. Singhania and Company Chartered Accountants
Address :	"JDS Chambers" 1^st Floor 6 Central Avenue Choube Colony, Raipur - 492001, Chattisgarh, India
PAN.:	AAAFO3891P
Associates:	Godawari Power and Ispat Limited Hira Ferro Alloys Limited Alok Ferro Alloys Limited Jagdamba Power and Alloys Limited Hira Steels Limited Hira Cement Limited Hira Power and Alloys Limited Hira Global Marketing Limited Hira Global Limited Chhattisgarh Power and Coal Beneficiation Limited Hira Global Alloys Limited R.R. Ispat Limited RVR Smelters Private Limited

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4399100	Equity Shares	Rs.10/- each	Rs.43.991 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		43.991	43.991
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		1091.135	899.758
4] (Accumulated Losses)		0.000	0.000
NETWORTH		1135.126	943.749
LOAN FUNDS
1] Secured Loans		852.181	781.841
2] Unsecured Loans		183.221	126.525
TOTAL BORROWING		1035.402	908.366
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		2170.528	1852.115
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		808.543	817.896
Capital work-in-progress		64.761	35.167
INVESTMENT		5.426	24.263
DEFERREX TAX ASSETS		73.001	50.148
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1209.932	460.765
	Sundry Debtors	302.651	57.833
	Cash & Bank Balances	249.711	118.264
	Other Current Assets	0.000	0.000
	Loans & Advances	288.143	381.139
Total Current Assets		2050.437	1018.001
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	689.083	39.951
	Other Current Liabilities	71.012	17.518
	Provisions	82.962	46.781
Total Current Liabilities		843.057	104.250
Net Current Assets		1207.380	913.751
MISCELLANEOUS EXPENSES		11.417	10.890
TOTAL		2170.528	1852.115

Note: Balance Sheet for the year 2012 is not available, only profit and loss account is available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2857.410	2242.081	1327.140
		Other Income	60.700	29.414	26.396
		TOTAL (A)	2918.110	2271.495	1353.536
Less	EXPENSES
		Cost of materials consumed	1721.956	1575.442
		Purchases of stock-in-trade	300.644	301.587
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	149.376	(202.421)
		Employee benefit expense	77.921	54.687
		Other expenses	329.143	182.024
		TOTAL (B)	2579.040	1911.319	1083.403
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		339.070	360.176	270.133
Less	FINANCIAL EXPENSES (D)		114.368	89.865	59.907
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		224.702	270.311	210.226
Less/ Add	DEPRECIATION/ AMORTISATION (F)		52.711	50.797	43.599
	PROFIT BEFORE TAX (E-F) (G)		171.991	219.514	166.627
Less	TAX (H)		7.638	22.066	9.954
	PROFIT AFTER TAX (G-H) (I)		164.353	197.448	156.673
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		856.844	674.467	522.941
Less	APPROPRIATIONS
		Adjustment For Employees Benefit as per Transitional Prov.		0.941	0.000
		Dividend		4.399	4.399
		Tax on Dividend		0.731	0.748
	BALANCE CARRIED TO THE B/S		NA	856.844	674.467
	EARNINGS IN FOREIGN CURRENCY		NA	18.926	NA
	TOTAL IMPORTS		NA	1321.307	234.133
	Earnings Per Share (Rs.)		37.36	44.88	35.67

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.63	8.69	11.58
Net Profit Margin (PBT/Sales)	(%)	6.02	9.79	12.56
Return on Total Assets (PBT/Total Assets}	(%)	NA	7.68	8.61
Return on Investment (ROI) (PBT/Networth)		NA	0.19	0.18
Debt Equity Ratio (Total Debt/Networth)		NA	0.91	0.96
Current Ratio (Current Asset/Current Liability)		NA	2.43	9.76

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	Yes
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	No
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	No

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2011
Rupee term loans banks unsecured (A)	146.077
Deferred sales tax loan unsecured (B)	7.144
Other debt unsecured (C)	30.000
Total	183.221

Notes:

(A) From Banks secured by pledge of property of other body corporate

(B) Sales tax payable (under Sales tax Deferment Scheme)

(C) From Body corporate

CONTINGENT LIABILITIES NOT PROVIDED FOR

(Rs. In Millions)

Particular	31.03.2011	31.03.2010
Entry Tax	0.067	0.067
Commercial Tax	4.360	2.722
Excise Duty	57.823	47.196
Bank Gaurantee	26.583	14.400
Claims not acknowledge as debts	8.657	0.000

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U24117CT1984PLC002512
Name of the company	HIRA POWER AND STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	557, 563 Urla Industrial Area, Raipur – 492001, Chhattisgarh, India E-mail: ycrao65@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90206318
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of India, Main Branch, Samvet Shikhar Complex, Rajbandha Maidan, Raipur - 492001, Chhattisgarh, India E-mail: raipur.raipur@bankofindia.com
Nature of instrument creating charge	1. Joint deed of hypothecation 2. Hypothecation of tangible movable machinery and plant for creating second charge/ pari passu charge 3. Working capital consortium agreement
Date of instrument Creating the charge	10.11.2012
Amount secured by the charge	Rs.475.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest For Cash Credit :- 1. Bank of India : 2.50% above base rate. 2. Syndicate Bank : Base Rate + 5.50% LC/BG : As per norms of the Banks Terms of Repayment As per norms/ discretion of the Bank. Margin BANK OF INDIA : Cash Credit : Proposed Finished Goods/ Stock in Trade : 25% Book Debts (up to 90days) : 40% Non Fund Based - Cash Margin : 20% Buyers Credit : 20% Margin and 10% Margin to be applied every month SYNDICATE BANK : Cash Credit : Margin of 25% on Raw Materials 30% on finished goods and 40 % on receivables. Extent and Operation of the charge First Pari Passu charge by way of Hypothecation on entire Stocks, Book Debts and other current assets of the Company. Second Pari Passu Charge by way of hypothecation on movable fixed assets of the Company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Pari Passu charge by way of Hypothecation on entire Stocks, Book Debts and other current assets of the Company and Second Pari Passu Charge by way of hypothecation on movable fixed assets of the Company situated at the premises of the company at Urla Industrial Complex, Raipur and where ever else.
Date of instrument modifying the charge	20.09.2007
Particulars of the present modification	Working Capital Limits has been enhanced to Rs 475.000 Millions, the details of which are as under. Bank of India Cash Credit Fund Based : Rs 175.000 Millions Non Fund Based LC/BG/ Buyers Credit : Rs 25.000 Millions Syndicate Bank Cash Credit Fund Based : Rs 225.000 Millions Non Fund Based LC/BG/ Buyers Credit : Rs 50.000 Millions Total : Rs 475.000 Millions

AS PER WEBSITE DETAILS

BOARD OF DIRECTORS

Mr. OP Agrawal

Chairman cum Managing Director

33 years of experience in various techno commercial aspects of industries like Ferro Alloys, Steel, Power and Sponge Iron have truly made O P Agrawal a name to recon within the industry. Aged 59 years, he is a commerce graduate and founder of Hira Group. His store of knowledge has helped turn all the endeavors of the company into a win.

He has remained as a trump element for the group in the manufacturing sector for the good. He has been completely involved in the setting up of the Ferro Alloy projects of Hira Group.

Mr. Vikas Agrawal

Executive Director

A second generation entrepreneur aged 30 years Vikas Agrawal has introduced a ray of freshness and a young spirit in the company. An electrical engineering graduate, he is presently sharing the chair as the executive director. He is responsible for the activities starting from financing a New Project, day to day financial control, and complete administration of the Project. His brilliance has added a different dimension in the company, newer ideas leading to newer heights never accomplished before.

Mr. Rahul Agrawal

Executive Director

A second generation entrepreneur and an engineering graduate Rahul Agrawal aged 27 believes that entrepreneurship is his passion. He is responsible for looking after Mining and New Projects in India and abroad such as in South Africa, Turkey, Qatar, Oman, Kazakhstan etc. Motivated by business and technology, he takes everyday as a new challenge as directs all his efforts towards winning it! His conviction and knowledge of the field has proved to be an asset.

Mr. SC Mahendru

Director – Finance

A qualified Chartered Accountant with 32 years of experience. Associated in all the Companies of HIRA GROUP in their Corporate Planning, - System Designing, - Preparation of Detailed Project Report, - Getting Sanction/Syndication of Loans from Banks FIs from almost all the prominent Bank/FIs, Planning of IPO/Pvt. Equity.

Mr. Kamal Gulati

Director

With postgraduate qualifications in Economics coupled with participation in Sales and Marketing Management related courses, Mr. Gulati has over 30 years of experience in Business Development and Strategic Planning. He has diverse experience in sourcing, structuring, setting up green field projects, identifying foreign trade markets and forging joint ventures and business alliances.

Mr. OG Goyal

Director

Looking after Land acquisition and liaisoning for various projects in Pipeline

Mr. Devendra Pratap Singh

Director – Administration

A Law Graduate, M.A. (Economics), MBA (HR and Marketing), Management Professional having more than 21 years hands-on experience of multiple location and business groups, at Corporate level as well as Unit level, in the field of "Human Resources, Personnel and Administration, Industrial Relations" in large Labour intensive industrial Organizations, like, Integrated Steel Plants, Heavy Engineering and Power Industries, Foreign Liquor, Fertilizers and Chemicals, both in the Green-field Projects as well as in the manufacturing industries. Associated with group since June 2012 and involved in Administration and Liaison activities.

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 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.54.03
UK Pound	1	Rs.82.43
Euro	1	Rs.70.49

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	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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.