MIRA INFORM REPORT

Report Date :

30.08.2013

IDENTIFICATION DETAILS

Name :	SARU SMELTING PRIVATE LIMITED
Registered Office :	Saru Nagar, Sardhana Road, Meerut – 250001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.04.1946
Com. Reg. No.:	20-001460
Capital Investment / Paid-up Capital :	Rs. 2.630 Millions
CIN No.: [Company Identification No.]	U24242UP1946PTC001460
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in different business activities. These activities are: Manufacturing and selling of Ferrous and Non Ferrous Alloys and its Allied Items Business of Real Estate Manufacturing and selling of Item of Lead.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 123000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has recorded modest scale of business operation. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight 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.

LOCATIONS

Registered Office :	Saru Nagar, Sardhana Road, Meerut – 250001, Uttar Pradesh, India
Tel. No.:	91-121-2556051/2555449
Fax No.:	91-121-2555969
E-Mail :	info@sarumetals.com
Website :	www.sarumetals.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Shashank Jain

Designation :

Director

Address :

Vijjayant, 101/2, Prabhat Nagar, Meerut – 250001, Uttar Pradesh, India

Date of Birth/Age :

13.02.1959

Date of Appointment :

18.04.1988

DIN No.:

00199931

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	U24242UP1946PTC001460	SARU SMELTING PRIVATE LIMITED	Director	18/04/1988	18/04/1988	-	Active	NO
2	U74899DL1988PTC031774	USHANK CREDITS PRIVATE LIMITED	Director	12/03/1992	12/03/1992	-	Active	NO
3	U74899DL1995PLC064819	USHANK TELECOMMUNICATIONS LIMITED	Director	30/01/1995	30/01/1995	-	Active	NO
4	U32109DL1995PLC072860	USHANK SHUWA TECHNOLOGY LIMITED	Director	28/09/1995	28/09/1995	-	Strike off	NO
5	U27103UP1948PLC001944	SARU ENGINEERING CORPORATION LIMITED	Director	07/04/1997	07/04/1997	-	Active	NO
6	U79140UP1986NPL007846	FEDERATION OF U P CHAMBERS OF COMM.AND INDUSTRY	Director	15/05/1999	15/05/1999	-	Active	NO
7	U91110UP1945NPL001322	THE WESTERN U.P. CHAMBER OF COMMERCE AND INDUSTRY	Director	24/09/2003	24/09/2003	-	Active	NO

Name :

Mr. Ashu Jain

Designation :

Director

Address :

Vijjayant, 101/2, Prabhat Nagar, Meerut – 250001, Uttar Pradesh, India

Date of Birth/Age :

05.10.1962

Date of Appointment :

15.04.1994

DIN No.:

00593862

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	U74899DL1988PTC031774	USHANK CREDITS PRIVATE LIMITED	Director	07/04/1997	07/04/1997	-	Active	NO
2	U24242UP1946PTC001460	SARU SMELTING PRIVATE LIMITED	Director	07/04/1997	07/04/1997	-	Active	NO
3	U27103UP1948PLC001944	SARU ENGINEERING CORPORATION LIMITED	Director	07/04/1997	07/04/1997	-	Active	NO
4	U74899DL1995PLC064819	USHANK TELECOMMUNICATIONS LIMITED	Director	07/04/1997	07/04/1997	-	Active	NO
5	U74899UR1986PTC032749	I.M.S.I.(INDIA) PRIVATE LTD.	Director	30/09/2005	30/09/2005	-	Active	NO

Name :

Mrs. Kalpana Jain

Designation :

Director

Address :

Vijjayant, 101/2, Prabhat Nagar, Meerut – 250001, Uttar Pradesh, India

Date of Birth/Age :

14.06.1960

Date of Appointment :

04.12.2007

DIN No.:

00200044

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	U74899DL1988PTC031774	USHANK CREDITS PRIVATE LIMITED	Director	28/05/1988	28/05/1988	-	Active	NO
2	U74899DL1995PLC064819	USHANK TELECOMMUNICATIONS LIMITED	Director	29/09/2008	29/11/2007	-	Active	NO
3	U24242UP1946PTC001460	SARU SMELTING PRIVATE LIMITED	Director	29/09/2008	04/12/2007	-	Active	NO

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Equity Shareholders (Ordinary)	No. of Shares
Ushank Credits (P) Limited	23137
Multan Singh Jain (HUF)	1200
Multan Singh Jain	45841
Shashnak Jain	10766
Ashu Jain	8968
Suresh Chand Jain	200
Modi Chand Kewal	200
Rambhiari Lal Mishra	10
Baman D. Mukharjee	5
Nirmala L. Sanghavi	4
Gromore Tools (P) Limited	40
Raja Joginder Singh	29
Total	90400

Names of Equity Shareholders (Deferred)	No. of Shares
Ushank Credits (P) Limited	1862
Multan Singh Jain (HUF)	16042
Usha Jain	9536
Shashnak Jain	435
Ashu Jain	2062
Nenhey Mal Jain	52
H.N. Kamath	10
Nirmala L. Sanghavi	1
Total	30000

Names of Preference Shareholders	No. of Shares
Ushank Credits (P) Limited	154
Multan Singh Jain	1740
Shashnak Jain	302
Ashu Jain	2
Nirmala L. Sanghavi	2
Total	2200

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in different business activities. These activities are:

1. Manufacturing and selling of Ferrous and Non Ferrous Alloys and its Allied Items
2. Business of Real Estate
3. Manufacturing and selling of Item of Lead.

Products :

Product Description	ITC Code
Fluxes Alloys	CH. No. 38
Tin and Tin Alloys	CH. No. 80
Lead and Lead Alloys	CH. No. 78
Bismuth and Cadmium Alloys	CH. No. 81
Soldering Wire	CH. No. 83

PRODUCTION STATUS (As on 31.03.2012)

Particulars	Unit	Installed Capacity	Actual Production
Non Ferrous Alloy	MT	350	17.475
Non Ferrous Alloy Wire	MT	190	22.885
Non Ferrous Alloy Strip and Foils	MT	60	5.196
Electric Flux	MT	60	1.391

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, Abu Lane, Meerut – 250001, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Term Loan from Banks
ICICI Bank (Car Loan)	0.043	0.229
State Bank of India (Car Loan)	0.219	0.307
HDFC Bank Limited (Car Loan)	0.387	0.712
Working Capital Term Loans from Bank of Baroda	1.500	2.100
Tata Finance Limited (Car Loan)	0.393	0.000
Short Term Borrowings
From Bank of Baroda, Meerut
Working Capital Loans	3.012	2.668
Total	5.554	6.016

Note:

Long Term Borrowings

Nature of Security	Terms of Repayment
Term Loan for Vehicle (HDFC, Meerut) amounting to Rs. 0.712 Million as on March 31, 2012 (March 31, 2011 Rs.0.965 Million) is secured by way of hypothecation of vehicle and personal guarantees of the directors.	Repayable in 36 monthly installments commencing from April-2011 .Last installment due in March-14.Rate of interest is 14.6% p.a. as at year end.
Term Loan for Vehicle (ICICI, Meerut) amounting to Rs. 0.229 Million as on March 31, 2012 (March 31, 2011 Rs. 0.392 Million) is secured by way of hypothecation of Innova Car and personal guarantees of the directors	Repayable in 60 monthly installments commencing from Jul-08.Last installment due in June-13.Rate of interest is 13.75% p.a. as at year end.
Term Loan for Vehicle (State Bank of India) amounting to Rs. 0.307 Million as on March 31, 2012 (March 31, 2011 Rs. 0.385 Million) is secured by way of Hypothecation of Woxwagan POLO Car and Personal Guarantee of Directors.	Repayable in 60 monthly installments commencing from May-10. Last installment due in April-15. Rate of interest 11.25% p.a.
Term Loan for Vehicle (Tata Finance Limited) amounting to Rs. 0.470 Million as on March 31, 2012 (March 31, 2011 Rs.NIL) is secured by way of Hypothecation of Woxwagan POLO Car and Personal Guarantee of Directors.	Repayable in 60 monthly installments commencing from Nov-11. Last installment due in Oct-16. Rate of interest 14% p a. as at year end.
Working Capital Term Loan (Bank of Baroda) amounting to Rs. 2.271 Millions as on March 31, 2012 (March 31, 2011 Rs 29.29) is secured by way of Hypothecation of machinery, stock and land and building and personal guarantees of the working directors of the company.	Repayable in 28 quarterly installments commencing from Dec-08. Last installment due in Sep-15. Rate of interest 14% p.a. as at year end.

Short Term Borrowings :

Working Capital Loans amounting to Rs.3.12 Millions (Previous year Rs. 2.668 Millions) from Bank of Baroda, Meerut, which are secured against Stocks and Stores, Bills for Collections, Book Debts, Plant and Machinery and Company's Land and Building and personal guarantees of the working directors of the company.

Banking Relations :	--
Auditors :
Name :	V.S. Gupta and Company Chartered Accountants
Address :	Western Kutchery Road, Meerut – 250001, Uttar Pradesh, India
Tel. No.:	91-121-2642252/2642852
Fax No.:	91-121-4000536
E-Mail :	vsgupta101@gmail.com
PAN No.:	AAAFY6765H
Related Parties :	Saru Infra Division

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
116000	Equity Shares (Ordinary)	Rs. 25/- each	Rs. 2.900 Millions
30000	Equity Shares (Deferred)	Rs. 5/- each	Rs. 0.150 Million
4500	Preference Shares	Rs. 100/- each	Rs. 0.450 Millions
	Total		Rs. 3.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5200	Equity Shares (Ordinary)	Rs. 25/- each	Rs. 0.130 Million
85200	Equity Shares (Ordinary)	Rs. 25/- each	Rs. 2.130 Millions
30000	Equity Shares (Deferred)	Rs. 5/- each	Rs. 0.150 Million
2200	9.5% Cumulative Preference Shares	Rs. 100/- each	Rs. 0.220 Million
	Total		Rs. 2.630 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.630	2.500
(b) Reserves & Surplus	28.235	7.408
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.130
Total Shareholders’ Funds (1) + (2)	30.865	10.038
(3) Non-Current Liabilities
(a) long-term borrowings	2.542	3.348
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	2.542	3.348
(4) Current Liabilities
(a) Short term borrowings	3.250	2.668
(b) Trade payables	16.697	12.657
(c) Other current liabilities	3.079	4.810
(d) Short-term provisions	0.000	0.215
Total Current Liabilities (4)	23.026	20.350
TOTAL	56.433	33.736
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	31.404	12.158
(ii) Intangible Assets	2.500	0.000
(iii) Capital work-in-progress	0.000	0.000
(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	0.896	0.891
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	34.800	13.049
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	9.683	8.485
(c) Trade receivables	5.748	4.896
(d) Cash and cash equivalents	0.277	0.961
(e) Short-term loans and advances	5.925	6.345
(f) Other current assets	0.000	0.000
Total Current Assets	21.633	20.687
TOTAL	56.433	33.736

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.630
2] Share Application Money		0.000
3] Reserves & Surplus		7.792
4] (Accumulated Losses)		(0.653)
NETWORTH		9.769
LOAN FUNDS
1] Secured Loans		7.115
2] Unsecured Loans		0.000
TOTAL BORROWING		7.115
DEFERRED TAX LIABILITIES		0.000
TOTAL		16.884
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.363
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.659
	Sundry Debtors	4.756
	Cash & Bank Balances	1.625
	Other Current Assets	0.000
	Loans & Advances	7.959
Total Current Assets		19.999
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.005
	Other Current Liabilities	2.173
	Provisions	0.300
Total Current Liabilities		14.478
Net Current Assets		5.521
MISCELLANEOUS EXPENSES		0.000
TOTAL		16.884

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	INCOME		NA	NA	NA
	EXPENSES		NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.086	1.292	1.883
Less/ Add	DEPRECIATION/ AMORTISATION		0.555	0.609	0.698
	PROFIT BEFORE TAX		0.531	0.683	1.185
Less	TAX		0.000	0.215	0.300
	PROFIT AFTER TAX		0.531	0.468	0.885
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(0.316)	(0.653)	(1.331)
	BALANCE CARRIED TO THE B/S		0.215	(0.315)	(0.653)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	5.155	6.302	12.788
		Commission Earnings	0.000	0.000	0.206
	TOTAL EARNINGS		5.155	6.302	12.994
	Earnings Per Share		3.64	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Return on Total Assets (PBT/Total Assets}	(%)	2.36	3.17	3.78
Return on Investment (ROI) (PBT/Networth)		0.02	0.07	0.12
Debt Equity Ratio (Total Debt /Networth)		0.19	0.60	0.73
Current Ratio (Current Asset/Current Liability)		0.94	1.02	1.38

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	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	No

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
Loans and advances from related parties
Smt. Kalpana Jain	0.238	0.000
Total	0.238	0.000

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80025716	11/07/2008 *	9,744,000.00	BANK OF BARODA	ABU LANE, MEERUT, Uttar Pradesh - 250001, INDIA	A42877019

FIXED ASSETS:

• Land
• Building
• C and M Shop Building
• Electrical Installations and Fittings
• Tubelite and hand Pumps
• Laboratory Apparatus
• Furniture and Fittings
• Weighing Machine and Scale
• Tools and Implements
• Patterns and Drawings
• Library Books
• Hands Carts
• Machinery and Equipments
• Motor Car
• Computers
• Lead Shielding Project

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. 67.71
UK Pound	1	Rs. 105.14
Euro	1	Rs. 90.03

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	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		27

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.