MIRA INFORM REPORT

Report Date :

23.08.2013

IDENTIFICATION DETAILS

Name :	BARODA EXTRUSION LIMITED
Registered Office :	Survey No. 65-66, Village Garadia, Jarod – Samlaya Road, Taluka Savli, District Baroda - 391520, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.08.1991
Com. Reg. No.:	04-016200
Capital Investment / Paid-up Capital :	Rs.149.197 Millions
CIN No.: [Company Identification No.]	L27109GJ1991PLC016200
Legal Form :	A Public Limited Liability company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing of High Quality of EC grade copper for heavy electronics users like for High Voltage Transformers, SFG Switch Gears, Top Gears etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 390000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having moderate track record. The company has recorded an huge accumulated loss in its books. External borrowings appear to be huge and are increasing over previous year bearing a negative impact on the subject’s working capital cycle. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with great caution.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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.

INFORMATION DENIED BY

Name :	Mr. Soni
Designation :	Admin and HR Department
Contact No.:	91-9327771212
Date :	21.08.2013

LOCATIONS

Registered Office/ Factory :	Survey No. 65-66, Village Garadia, Jarod – Samlaya Road, Taluka Savli, District Baroda - 391520, Gujarat, India
Tel. No.:	91-2667-251630
Mobile No.:	91-9327771212 (Mr. Soni)
Fax No.:	91-2667-251784
E-Mail :	works@brodaextrusion.com info@barodaextrusion.com copper@barodaextrusion.com
Website :	www.brodaextrusion.com
Branch Office :	102, Pavan Flats, 7 Anandnagar Society, Productivity Road,  Vadodara – 390005, Gujarat, India
Tel. No.:	91-265-2334453
Fax No.:	91-265-2355059

DIRECTORS

As on: 31.03.2012

Name :	Mr. Parasmal Kanugo
Designation :	Chairman and Managing Director
Name :	Mr. Chandrakant Khushaldas
Designation :	Non Executive Director/ Independent Director
Name :	Ms. Rina Patel
Designation :	Non Executive Director/ Independent Director
Name :	Mr. Kesrichand Shah
Designation :	Non Executive Director/ Independent Director

KEY EXECUTIVES

Name :	Mr. Soni
Designation :	Admin and HR Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2013

Category of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	58802722	39.45
Any Others (Specify)	26003900	17.45
Directors of Promoters Companies	26003900	17.45
Sub Total	84806622	56.90
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	84806622	56.90
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	16110926	10.81
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	17959777	12.05
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	24942395	16.73
Any Others (Specify)	5229280	3.51
Hindu Undivided Families	3799022	2.55
Clearing Members	1311887	0.88
Non Resident Indians	8371	0.01
Trusts	110000	0.07
Sub Total	64242378	43.10
Total Public shareholding (B)	64242378	43.10
Total (A)+(B)	149049000	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)	149049000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of High Quality of EC grade copper for heavy electronics users like for High Voltage Transformers, SFG Switch Gears, Top Gears etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Kotak Mahindra Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
From Bank
Kotak Mahindra Bank Limited [Secured by way of Hypothecation of Vehicle] [ Repayable within 36 EMI of Rs. 0.019 Million]	0.424	0.000
SHORT TERM BORROWINGS
From Others- SICOM Limited
Factoring of Receivables Facility	347.293	299.708
Purchase Bill Discounting Facility	50.344	0.000
Total	398.061	299.708

Notes:

The above Loans are secured by way of first charge on the immovable properties as under

Company's office premises situated at 102 Pavan Flats, Anand Nagar Society, Productivity Road, Vadodara

Non Agricultural Land with water resources bearing Account No. 810, Block No. 522, Old Survey No 488-499, situated at Village: Chansad, District: Vadodara

Land bearing Survey No. 287/2- Account No. 72, Survey No .291/2 Account No-73, Survey No. 288 Account No. 123, Survey No 287/1 and 286/2 Account No- 392, Survey No.397/2, Account No. 550 admeasuring 891573.600 Sq. situated at Mouje Dungarpura Sim, Taluka Savli, District Vadodara

Pieces and parcles of Land bearigng Account No- 71 Survey No.2. 206/1/1, 206/2/A, 206/2/B, 210/2/A, 210/2/B at Village Tuisipura Taluka Savli, District Vadodara

Factory Land and Building AT and PO 65-66, Village Garadiya, Taluka- Savli, District Vadodara

The above loans are also further secured by way of Personal Guarantees of Shri Parasmal B Kanugo and Shri Alpesh P Kanugo

Banking Relations :	--
Auditors :
Name :	Parikh Shah Chotalia and Associates Chartered Accountants
Company in which relative of the Director :	Global Copper Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
*15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions
	Less: Calls In Arrears-by others		Rs.0.803 Million
	Total		Rs.149.197 Millions

* Of above 67,50,000 Equity Shares of Rs. 10/- each fully paid up were issued /alloted at a premium of Rs. 2.5/- per share during F.Y 2011- 12 on preferential basis, over and above 3,50,000 equity shares of Rs. 10/- each fully paid up were issued/alloted during FY 2008-2009 on preferential basis

TERMS AND RIGHTS ATTACHED TO EQUITY SHARES

A) The Company has issued Equity Shares of Rs. 10 each fully paid up at a premium of Rs. 2.5/- per equity share during F.Y. 2011-12. Each holder of equity share is entitled to one vote per share.

B) In the event of liquidation, the holders of the equity shares will be entitled to receive remaining assets of the Company after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the Share Holders.

Reconciliation of Shares:	Nos	Rs. In Millions
Opening Share Capital	8250000	82.500
Add: Shares issued during the year	6750000	67.500
Add: Rights/Bonus Shares Issued	-	-
Total	15000000	150.000
Less: Buy back of Shares	-	0
Less Reduction in Capital	-	0
Closing Share Capital	15000000	150.000

List of Share holders having 5% or more Shares

Name of Shareholders	In Nos	In %
Giri Prime Housing and Properties Private Limited	3316510	22.11
Challenger System (India) Private Limited	3500000	23.33
Kanugo Alpesh Parasmal	1161000	7.74
Kanugo Parasmal B.	774990	5.17

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	149.197	81.697
(b) Reserves & Surplus	(50.496)	(38.628)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	98.701	43.069
(3) Non-Current Liabilities
(a) long-term borrowings	0.424	0.000
(b) Deferred tax liabilities (Net)	0.377	0.766
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.786	0.594
Total Non-current Liabilities (3)	1.587	1.360
(4) Current Liabilities
(a) Short term borrowings	417.854	337.665
(b) Trade payables	308.021	147.373
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	10.058	10.181
Total Current Liabilities (4)	735.933	495.219
TOTAL	836.221	539.648
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	22.364	21.077
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.309	0.309
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	30.348	0.000
Total Non-Current Assets	53.021	21.386
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	72.869	96.105
(c) Trade receivables	659.314	328.580
(d) Cash and cash equivalents	11.481	28.057
(e) Short-term loans and advances	39.536	65.520
(f) Other current assets	0.000	0.000
Total Current Assets	783.200	518.262
TOTAL	836.221	539.648

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		81.697
2] Share Application Money		0.000
3] Reserves & Surplus		2.500
4] (Accumulated Losses)		(49.081)
NETWORTH		35.116
LOAN FUNDS
1] Secured Loans		198.364
2] Unsecured Loans		24.832
TOTAL BORROWING		223.196
DEFERRED TAX LIABILITIES		0.454
TOTAL		258.766
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.691
Capital work-in-progress		0.309
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	56.201
	Sundry Debtors	212.754
	Cash & Bank Balances	2.651
	Other Current Assets	0.000
	Loans & Advances	58.579
Total Current Assets		330.185
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	72.829
	Other Current Liabilities	5.665
	Provisions	9.925
Total Current Liabilities		88.419
Net Current Assets		241.766
MISCELLANEOUS EXPENSES		0.000
TOTAL		258.766

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1448.252	894.457	621.206
		Other Income	3.800	11.524	1.812
		TOTAL (A)	1452.052	905.981	623.018
Less	EXPENSES
		Cost of Materials Consumed	1148.890	796.713
		Purchase of Stock in Trade	208.975	66.107
		Changes in inventories of finished goods, work in progress and Stock-in-Trade	38.812	(45.241)
		Employee benefits expenses	9.265	6.229
		Other Expenses	25.728	29.472
		TOTAL (B)	1431.670	853.280	588.122
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.382	52.701	34.896
Less	FINANCIAL EXPENSES (D)		46.390	35.966	20.579
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(26.008)	16.735	14.317
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.123	2.784	2.465
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(29.131)	13.951	11.852
Less	TAX (H)		(0.389)	5.999	5.080
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(28.742)	7.952	6.772
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(41.128)	(49.080)	55.852
	BALANCE CARRIED TO THE B/S		(69.870)	(41.128)	(49.080)
	Earnings Per Share (Rs.)		(2.00)	1.00	0.84

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(1.98)	0.88	1.09
Net Profit Margin (PBT/Sales)	(%)	(2.01)	1.56	1.91
Return on Total Assets (PBT/Total Assets}	(%)	(3.48)	2.59	3.42
Return on Investment (ROI) (PBT/Networth)		(0.30)	0.32	0.34
Debt Equity Ratio (Total Debt/Networth)		4.24	7.84	6.36
Current Ratio (Current Asset/Current Liability)		1.06	1.05	3.73

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	Yes
10]	Designation of contact person	Yes
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	Yes
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	No
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 31.03.2012	As on 31.03.2011
SHORT TERM BORROWINGS
Loans repayable on demand
From Banks	0.000	10.484
From Others	18.055	9.268
Loans and advances from related parties	0.500	0.500
Other loans and advances	1.662	17.705
Total	20.217	37.957

LITIGATION DETAILS

HIGH COURT OF GUJARAT

TAX APPEAL No. 59 of 2007

Status : PENDING

( Converted from : ST/3363/2006 )

CCIN No : 001092200700059

Last Listing Date:

07/12/2006

Coram

HONOURABLE THE CHIEF JUSTICE Y.R.MEENA HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX-I	MR KM PARIKH for: Appellant(s)  1

S.NO.	Name of the Respondant	Advocate On Record
1	BARODA EXTRUSION LTD.	RULE SERVED for :Opponent(s)  1

---

Presented On	: 10/11/2006	Registered On	: 10/11/2006
Bench Category	: DIVISION BENCH	District	: VADODARA
Case Originated From	: THROUGH ADVOCATE	Listed	: 2 times
Stage Name	: FOR FINAL HEARING - TAX MATTERS

Act	INCOME-TAX ACT, 1961

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	15/08/2007	VAKALATNAMA	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	-	MR KM PARIKH:1
2	15/08/2007	DOCUMENT	RULE SERVED  for RESPONDENT(s)  1	-	RULE SERVED:1
3	07/06/2012	APPEARANCE NOTE	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	-	MR KM PARIKH:1
Court Proceedings

S. No.	Notified Date	Court Code	Board Sr. No.	Stage	Action	Coram
1	07/12/2006	1	-	FOR FINAL HEARING - TAX MATTERS	FIXED RULE / ADMIT	HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE SMT. JUSTICE ABHILASHA KUMARI
Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	View	Download
1	TAX APPEAL/59/2007	HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE SMT. JUSTICE ABHILASHA KUMARI	11/10/2007	N	N	View	Download
Certified Copy

S. No.	Applicant Name	Application Type	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MR MANISH R BHATT	ORDINARY	12/10/2007	O/50458/2007	11/10/2007	21/11/2007	26/11/2007	Delivered	-

OPERATIONS:

During the year, the manufacturing sales has increased compared to the previous year 2010-11. The tremendous growth in sales is mainly attributed to overall economic development.

The company could not achieve the desired level of net margin due to heavy interest burden as well as well as low yield due to use of Machinery which is comparatively very old and underutilization of the existing manufacturing capacity. The directors are concentrating their utmost attention to upgrade the existing machinery to achieve a steady growth in sales and job work activity in the coming years.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Baroda Extrusion is engaged in manufacturing of High Quality of EC grade copper for heavy electronics users like for High Voltage Transformers, SFG Switch Gears, top Gears with melting capacity of 3000 MT Per Annum. The Company has also developed quality of international standard and is also planning to export 200 MT of its products by 2012.

SEGMENT WISE PERFORMANCE OR PRODUCT WISE PERFORMANCE:

The segment wise report is not furnished as the company is presently engaged in one business segment i.e. copper extrusion.

OUTLOOK:

As already mentioned that there is a considerable gap between demand and supply of extrusion products. Even the opportunities for exports is a bright which can be achieved by improving the technology and thereby quality of the product. The company is confident that, barring unforeseen circumstances, the profitability of the company would improve in the current financial year.

DISCUSSION ON FINANCIAL PERFORMANCE:

During the year, the total income stood at Rs. 1452.051 Millions for the year as against Rs. 905.982 Millions in the previous year. The increase in sales is mainly on account of low-cost and need-based finance and corresponding increase in orders due to effective marketing. The company could not achieve the desired level of net margin due to heavy interest burden as well as underutilization of the existing manufacturing capacity.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Bank Guarantees	0.500	0.500

Directorate General of Central Excise – Investigation (DGCE-I) during the course of survey on 05-01-2007 debited an amount of Rs 2.500 Millions in RG 23 Part II without raising any demand for excise and therefore the same is shown under the head “Short Term Loans and Advances”. In the opinion of the Board of Directors of the Company no provision is required to be made in respect of such Excise liability as the said liability is not crystallised as on the date of Balance Sheet.

FIXED ASSETS

• Factory Land
• Factory Building
• Office Building
• Plant and Machinery
• Electrical Installation
• Furniture and Fixture
• Vehicles
• Laboratory Equipment
• Dies, tools and Moulds
• Office Equipments
• Computer

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.65.42
UK Pound	1	Rs.102.10
Euro	1	Rs.87.32

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.