MIRA INFORM REPORT

Report Date :

26.08.2013

IDENTIFICATION DETAILS

Name :	MANGALAM ALLOYS LIMITED
Formerly Known As :	MANGALAM ALLOYS PRIVATE LIMITED
Registered Office :	Plot No. 3123-3126, GIDC, Phase III, Chhatral, District Gandhinagar – 382729, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.08.1988
Com. Reg. No.:	04-011051
Capital Investment / Paid-up Capital :	Rs.63.349 Millions
CIN No.: [Company Identification No.]	U27109GJ1988PLC011051
TAN No.: [Tax Deduction & Collection Account No.]	AHMM01070G
PAN No.: [Permanent Account No.]	AABCM6740P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Stainless Steel Ingots, Bars, etc.
No. of Employees :	500 (Approximately)

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 970000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears some dip in profitability of the company. However, networth of the company is 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.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB+ (Working Capital Limits)
Rating Explanation	Inadequate credit quality and high credit risk.
Date	February 2013

Rating Agency Name	ICRA
Rating	A4+ (LC/BG Limits)
Rating Explanation	Risk prone credit quality and high credit risk.
Date	February 2013

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 PARTED BY

Name :	Mr. Ajay Patel
Designation :	Accounts Department
Contact No.:	91-2764-232064
Date :	23.08.2013

LOCATIONS

Registered Office/ Factory :	Plot No. 3123-3126, GIDC, Phase III, Chhatral, District Gandhinagar – 382729, Gujarat, India
Tel. No.:	91-2764-232064/ 232025
Fax No.:	91-2764-234361
E-Mail :	sales@mangalamalloys.com ajay.patel@mangalamalloys.com mangalam@ucmindia.com tusharmehta@mangalamalloys.com export@mangalamalloys.com purchase@mangalamalloys.com
Website :	www.mangalamalloys.com
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :	Mr. Uttamchand Chandanmal Mehta
Designation :	Managing Director
Address :	3, Chandramauleshwar Farm, Near Mohamadpura Bus Stop, Ambli Bopal Road, Ahmedbad, Gujarat, India
Date of Birth/Age :	20.11.1953
Qualification :	B.E. (Chem)
Date of Appointment :	01.09.2009
PAN No.:	ABCPM3554A
DIN No.:	00153639
Name :	Mr. Lokeshkumar Bansilal Jain
Designation :	Whole Time Director
Address :	A 2, 102, Vishwas City – I, Opposite Shayon City, R C Technical Road, Ghatoldia, Ahmedabad, Gujarat, India
Date of Birth/Age :	05.01.1973
Qualification :	C.A. and I.C.W.A.
Date of Appointment :	01.10.2012
PAN No.:	ADEPJ7179J
DIN No.:	00186623
Name :	Mr. Tushar Uttamchand Mehta
Designation :	Whole Time Director
Address :	3, Chandramauleshwar Farm, Near Mohamadpura Bus Stop, Ambli Bopal Road, Ahmedbad, Gujarat, India
Date of Birth/Age :	09.06.1987
Qualification :	B.E. (Mech)
Date of Appointment :	01.10.2012
PAN No.:	AMOPM6461H
DIN No.:	00187046

KEY EXECUTIVES

Name :	Mr. Ajay Patel
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Bhandari Pirakashchandra Chandmal	40500
Bhandari Mankumari Prakashchandra	31500
Bhandari Avinash Prakashchand	22500
Bhandari Rachna Prakashchandra	11250
Bhandari Pirakashchandra Chandmal Jointly With Avinash Bhandari and Reema Bhandari	18000
Bhandari Pirakashchandra C. Jointly With Mankumari Bhandari	6750
Raval Motilal Maganlal Prop's of Rekha Enterprise	13200
Purohit Bhanwarlal Bhurji	4000
Mehta Tirth Uttamchand	13700
Mehta Tushar Uttamchand	127750
Mehta Pushpadevi Uttamchand	400650
Mehta Uttamchand Chandanmal	851000
Mehta Uttamchand Jointly With Pushpadevi Uttamchand	2000
Netvision Web Technologies Limited, India	50000
Shelja Finlease Private Limited, India	331700
Tribhuvan Lease Finance Private Limited, India	2364650
Ankit Ashokkumar Gupta	10000
Ashokkumar Sonderlal Gupta	10000
Rajesh Agrawal Jointly With Ranchna Agrawal	20000
Archer Financial Services Private Limited, India	312000
Grin BPO Services Private Limited, India	237750
Green Star Financial Services Private Limited, India	336000
Suraj Corporate Services Private Limited, India	240000
TPL Finance Limited, India	420000
Richgold Finance and Securities Limited, India	380000
Dhanlaxmi Lease Finance Private Limited, India	80000
Total	6334900

As on: 30.11.2012

Names of Allottee	No. of Shares
Tushar Uttamchand Mehta	52200
Pushpaben Uttamchand Mehta	208000
Total	260200

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	75.02
Directors or relatives of directors	22.02
Other top fifty shareholders	2.96
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Stainless Steel Ingots, Bars, etc.

Products :

Product Description	Item Code No.
S S Ingots and other Primary Forms	72181000
Stainless Steel	7218

Exports :

Products :

· Finished Goods

Countries :

· Singapore

· Vietnam

· South Africa

Imports :

Products :

· Raw Materials

Countries :

· USA

· Germany

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
S.S. and Other Alloys Ingots and Castings (mainly Captive use)	M.T	30900	46152
S.S. and other Alloys Flats, Rounds, Brightbar and Fasteners	M.T	54000	19486.13

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

500 (Approximately)

Bankers :

· State Bank of India, Industrial Finance Branch, Gujarat Bhavan, Opposite M.J. Library, Ellisbridge, Ahmedabad – 380006, Gujarat, India

· State Bank of India, Industrial Finance Branch, 1st Floor, Neptune Tower Annexe, Opposite Gandhigram RS, Ahmedabad - 380009, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG-TERM BORROWINGS
Rupee term loans from banks (Payable in Monthly installments with varying interest rate linked to bank rate of bank from time to time)	93.165	81.471
SHORT-TERM BORROWINGS
Working capital loans from banks	223.316	183.176
Total	316.481	264.647

‘

Banking Relations :	--
Auditors :
Name :	Kishan M. Mehta and Company Chartered Accountants
Address :	6^th Floor, Premchand House Annexe, Old High Court Way, Ashram Road, Ahmedbad – 380009, Gujarat, India
PAN.:	AABFK8431G
Associates :	· Unison Forgings Limited CIN No.: U27100GJ2006PLC047841 · Tribhuvan Lease Finance Private Limited CIN No.: U65910GJ1995PTC024789
Sister Concern :	· Mehta Alloys Limited · Universal Metals Limited

CAPITAL STRUCTURE

After: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6595100	Equity Shares	Rs.10/- each	Rs.65.951 Millions

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6334900	Equity Shares	Rs.10/- each	Rs.63.349 Millions

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	63.349	63.349
(b) Reserves & Surplus	179.664	169.772
(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)	243.013	233.121
(3) Non-Current Liabilities
(a) long-term borrowings	99.681	88.044
(b) Deferred tax liabilities (Net)	30.926	31.515
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.515	1.267
Total Non-current Liabilities (3)	132.122	120.826
(4) Current Liabilities
(a) Short term borrowings	254.469	230.846
(b) Trade payables	117.057	128.412
(c) Other current liabilities	58.920	44.260
(d) Short-term provisions	5.578	6.468
Total Current Liabilities (4)	436.024	409.986
TOTAL	811.159	763.933
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	248.285	242.904
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	14.556	9.206
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	9.726	10.230
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	5.397	6.998
(e) Other Non-current assets	46.519	43.218
Total Non-Current Assets	324.483	312.556
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	240.237	223.916
(c) Trade receivables	191.073	175.680
(d) Cash and cash equivalents	8.388	8.334
(e) Short-term loans and advances	37.232	36.096
(f) Other current assets	9.746	7.351
Total Current Assets	486.676	451.377
TOTAL	811.159	763.933

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		54.549
2] Share Application Money		0.000
3] Reserves & Surplus		131.982
4] (Accumulated Losses)		0.000
NETWORTH		186.531
LOAN FUNDS
1] Secured Loans		227.126
2] Unsecured Loans		6.953
TOTAL BORROWING		234.079
DEFERRED TAX LIABILITIES		33.068
DEFERRED PAYMENT CREDIT		0.076
TOTAL		453.754
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		233.377
Capital work-in-progress		8.229
INVESTMENT		10.230
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	153.186
	Sundry Debtors	174.536
	Cash & Bank Balances	10.398
	Other Current Assets	0.000
	Other Non Current Assets	0.000
	Loans & Advances	55.865
Total Current Assets		393.985
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	151.513
	Other Current Liabilities	33.587
	Provisions	6.967
Total Current Liabilities		192.067
Net Current Assets		201.918
MISCELLANEOUS EXPENSES		0.000
TOTAL		453.754

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1371.569	1228.448	1188.541
		Other Income	12.861	1.774	5.873
		TOTAL (A)	1384.430	1230.222	1194.414
Less	EXPENSES
		Cost of materials consumed	946.758	892.742
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	1.185	(48.064)
		Employee benefit expenses	41.787	31.258
		Other Expenses	301.760	271.017
		Prior Period Items	0.000	0.100
		TOTAL (B)	1291.490	1147.053	1111.189
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		92.940	83.169	83.225
Less	FINANCIAL EXPENSES (D)		41.463	29.373	27.662
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		51.477	53.796	55.563
Less/ Add	DEPRECIATION/ AMORTISATION (F)		27.551	24.710	21.776
	PROFIT BEFORE TAX (E-F) (G)		23.926	29.086	33.787
Less	TAX (H)		14.034	4.496	14.590
	PROFIT AFTER TAX (G-H) (I)		9.892	24.590	19.197
	BALANCE CARRIED TO THE B/S		NA	85.870	61.280
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	125.251	103.034	47.817
	TOTAL EARNINGS		125.251	103.034	47.817
	IMPORTS
		Raw Materials	240.435	189.262	98.134
		Consumables Stores	1.188	1.292	1.400
		Capital Goods	2.764	0.000	0.041
	TOTAL IMPORTS		244.387	190.554	99.575
	Earnings Per Share (Rs.)		1.56	3.88	3.58

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.71	1.99	1.61
Net Profit Margin (PBT/Sales)	(%)	1.74	2.37	2.84
Return on Total Assets (PBT/Total Assets}	(%)	3.04	3.91	5.39
Return on Investment (ROI) (PBT/Networth)		0.10	0.12	0.18
Debt Equity Ratio (Total Debt/Networth)		1.46	1.37	1.25
Current Ratio (Current Asset/Current Liability)		1.12	1.10	2.05

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS

(Rs. In Millions)

Particular	31.03.2012	31.03.2011	31.03.2010
Current Maturities Of Long-Term Debt Details	45.981	33.239	NA
Total	45.981	33.239	NA

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	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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

FINANCIAL RESULTS:

During the year the company has earned a profit of Rs.9.892 Millions after providing Rs.27.551 Millions towards depreciation and Rs.12.200 Millions towards Income Tax and after crediting Rs. 0.589 Millions towards deferred tax assets.

OPERATION AND REVIEW:

During the year the turnover has increased but profit has decreased in comparison to earlier year due to market consition. The directors are putting efforts to further boost the activities and expect better future prospects in the coming year.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
LONG-TERM BORROWINGS
Rupee term loans from banks (Payable in Monthly installments with varying interest rate linked to bank rate of bank from time to time)	0.472	2.119
Term loans from others (Loan from Body Corporate is repayable after 31st March, 2013 with interest @9% p.a.)	6.045	4.404
Loans and advances from directors	0.000	0.050
SHORT-TERM BORROWINGS
Loans repayable on demand from others	31.152	36.212
Loans repayable on demand from banks	0.000	11.458
Total	37.669	54.243

CONTINGENT LIABILITIES

(Rs. in Millions)

Particular	31.03.2012	31.03.2011
Bank Guarantees	13.563	11.000
Letter of Credit	9.565	9.823
Income Tax in Appeal	0.252	--
Custom Duty in Appeal	2.163	4.469
Workman Compensation not acknowledge	0.450	0.845
Electricity Liabilities	1.599	1.593

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10423619	02/04/2013	20,000,000.00	BANK OF INDIA	SCIENCE CITY BRANCH SHOP NO 4, 5, 6 SARJAN COMPLEX, SCIENCE CITY ROAD SOLA, AHMEDABAD, Gujarat - 380060, INDIA	B74388463
2	10192012	26/11/2012 *	541,200,000.00	State Bank of India	INDUSTRIAL FINANCE BRANCH, 1ST FLOOR, NEPTUNE TOWER ANNEXE, OPPOSITE GANDHIGRAM RS, AHMEDABAD, GUJARAT - 380009, INDIA	B64563257
3	80024379	26/11/2012 *	541,200,000.00	State Bank of India	INDUSTRIAL FINANCE BRANCH, 1ST FLOOR, NEPTUNE TOWER ANNEXE, OPPOSITE GANDHIGRAM RS, AHMEDABAD, GUJARAT - 380009, INDIA	B64560402

Note: * Date of charge modification

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Factory Building

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· 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 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.64.69
UK Pound	1	Rs.100.80
Euro	1	Rs.86.30

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.