MIRA INFORM REPORT

Report Date :

01.02.2013

IDENTIFICATION DETAILS

Name :	SHREE NAKODA ISPAT LIMITED
Registered Office :	Near Railway Crossing, Mowa, Raipur- 492001, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.04.2000
Com. Reg. No.:	10-014186
Capital Investment / Paid-up Capital :	Rs. 27.449 millions
CIN No.: [Company Identification No.]	U27109CT2000PLC014186
PAN No.: [Permanent Account No.]	AAHCS2143Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Sponge Iron.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 2890000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financial i.e. 2011-2012 are missing from the government department. From the previous year, it seems that the company has recorded huge external borrowing which seems to be increasing over years. 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 some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB (Term loan)
Rating Explanation	The inadequate credit quality. It carry high credit risk
Date	September, 2012

Rating Agency Name	ICRA
Rating	A4 (Non-fund based limits)
Rating Explanation	The risk prone credit quality. It carry high credit risk
Date	September, 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 :	Near Railway Crossing, Mowa, Raipur- 492001, Chattisgarh, India
Tel. No.:	91-771-2282230
Fax No.:	91-771-2282130
E-Mail :	rkagrawal40@yahoo.co.in

DIRECTORS

As on 29.09.2012

Name :

Mr. Virendra Goel

Designation :

Managing Director

Address :

B-35, Sectar-4, Devendra Nagar, Raipur, Chhattisgarh, India

Date of Birth/Age :

02.10.1960

Qualification :

B.Com

Date of Appointment :

15.02.2003

PAN No.:

AEHPG8427N

DIN No.:

00043016

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	U15141CT1991PLC006808	SHREE NAKODA INDUSTRIES LIMITED	Director	05-12-91	05-12-91	-	Active	NO
2	U23109CT2002PLC015315	CG COAL AND POWER LIMITED	Director	30-09-02	30-09-02	-	Active	NO
3	U27109CT2000PLC014186	SHREE NAKODA ISPAT LIMITED	Managing director	15-03-12	15-02-03	-	Active	NO
4	U01410CT2005PLC018224	CHHATTISGARH CAPTIVE COAL MINING LIMITED.	Director	13-04-08	28-12-05	-	Active	NO
5	U10300CT2006PLC020006	MADANPUR SOUTH COAL COMPANY LIMITED	Director	23-09-08	27-02-08	-	Active	NO
6	U27101CT2009PLC021220	SHREE NAKODA ISPAT AND POWER LIMITED	Director	09-06-09	09-06-09	-	Active	NO

Name :

Mr. Ramesh Chandra Goel

Designation :

Whole-time director

Address :

B-35, Sectar-4, Devendra Nagar, Raipur, Chhattisgarh, India

Date of Birth/Age :

12.02.1952

Qualification :

B.Com

Date of Appointment :

01.10.2008

PAN No.:

AEIPG4921L

DIN No.:

00309349

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	U15141CT1991PLC006808	SHREE NAKODA INDUSTRIES LIMITED	Director	05-12-91	05-12-91	-	Active	NO
2	U65921CT1993PLC007472	SHREE NAKODA GLOBAL LIMITED	Director	29-01-03	29-01-03	31-10-12	Active	NO
3	U27109CT2000PLC014186	SHREE NAKODA ISPAT LIMITED	Whole-time director	01-10-08	15-02-03	-	Active	NO

Name :

Mr. Sanjay Goel

Designation :

Whole-time director

Address :

B-35, Sectar-4, Devendra Nagar, Raipur, Chhattisgarh, India

Date of Birth/Age :

25.01.1969

Qualification :

B.Com

Date of Appointment :

01.10.2008

PAN No.:

ACZPG8039Q

DIN No.:

00043096

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	U15141CT1991PLC006808	SHREE NAKODA INDUSTRIES LIMITED	Director	05-12-91	05-12-91	-	Active	NO
2	U65921CT1993PLC007472	SHREE NAKODA GLOBAL LIMITED	Director	02-02-93	02-02-93	31-10-12	Active	NO
3	U27109CT2000PLC014186	SHREE NAKODA ISPAT LIMITED	Whole-time director	01-10-08	15-02-03	-	Active	NO
4	U27101CT2009PLC021220	SHREE NAKODA ISPAT AND POWER LIMITED	Director	09-06-09	09-06-09	-	Active	NO

Name :

Mr. Anant Dave

Designation :

Whole-time director

Address :

Near B.T.I., Shankar Nagar, Raipur, Chhattisgarh, India

Date of Birth/Age :

24.08.1968

Date of Appointment :

01.04.2009

DIN No.:

02481182

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	U27109CT2000PLC014186	SHREE NAKODA ISPAT LIMITED	Whole-time director	01-04-09	01-04-09	-	Active	NO
2	U27101CT2009PLC021220	SHREE NAKODA ISPAT AND POWER LIMITED	Director	25-09-10	12-06-09	-	Active	NO

Name :

Mr. Saroj Kumar Jha

Designation :

Whole-time director

Address :

C-7, Maruti Homes Mohba Bazar, Hirapaur Road, Kota, Raipur, Chhattisgarh, India

Date of Birth/Age :

01.12.1977

Date of Appointment :

01.03.2011

DIN No.:

03426446

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Sanjay Goel	61900
Saroj Goel	14300
Shyamlal Goel and Sons (HUF)	177750
Ramesh Chandra Goel	204250
Virenrlra Goel	365800
Nirmala Goel	209500
Ashok Kumar Goel	400
Surendra Goel	402200
Ramcsh Chandra God (HUF)	112000
Ashok Kumar God (HUF)	160000
Rekha Goel	100000
Virendra Goel (HUF)	128500
Anita Goel	59000
Online Information Technologies Limited, India	55000
Vikram Goel	19125
Sangeeta Goel	613000
Oshin Investment and Finance Private Limited, India	11000
Sidh Housing Development Company Limited, India	15200
Albatross Share Registry Private Limited, India	42200
Gyaneshwar Trading and Finance Company Limited, India	14000
ONE2E Solutions India Private Limited, India	37000
Goel Zenith Agro Private Limited, India	25600
Shree Nakoda Industries Limited, India	87000
Woodland Securities Private Limited, India	4200
Bhadrawati Ispat and Energy Limited, India	36800
Total	2955725

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	11.10
Directors or relatives of Directors	88.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Sponge Iron.

Products :

Item Code No.	Product Description
3303	Sponge Iron
4002	Power

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Sponge Iron	MT	--	165000	31612.000
Power	MW	--	18	--
Ingots/Billets	MT	--	60000
Dolachar	MT	--	--	24175.000
Fly Ash	MT	--	--	2157.000
M.S. Billets	MT	--	--	0.000
Ingots	MT	--	--	0.000
Scrap(Runner/Riser)	MT	--	--	0.000
Fly Ash Bricks	MT	--	--	0.000
Power	Units	--	--	124271900.000

Note:

1. Licensed Capacity is not applicable in view of the Company’s product having been diligence as per the New Liberalised Licensing Policy announced by the Government of India.

2. Installed Capacity is as certified by the Management and not verified by the Auditors being a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Bank of Baroda, MID Corporate Branch, 2^nd Floor, LIC Investment Building, Pandri, Raipur - 492001, Chhattisgarh, India

• Indian Overseas Bank, Gurunank Chowk, MG Road, Raipur - 492001, Chhattisgarh, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	798.195	589.668
Working capital loans banks secured	466.445	284.370
Total	1264.640	874.038

Banking Relations :	--
Auditors :
Name :	Umesh Chandra and Company Chartered Accountants
Address :	Deshbandu Complex, Raipur, Chhattisgarh, India
Tel. No.:	91-771-3296238
Mobile No.:	91-9425503008 / 9329100331
PAN No.:	ADCPG6321P
Associates :	v Shree Nakoda Industries Limited PAN No.: AABCG3855H CIN No.: U15141CT1991PLC006808 v Shree Nakoda Golobal Private Limited PAN No.: AAACU4556A CIN No.: U65921CT1993PLC007472 v Gole Zenith Agro Private Limited PAN No.: AABCG3854G CIN No.: U51219CT1994PTC008201 v Ashok Tradares PAN No.: AAGFA0512K v Goel Polymers v Chhattisharh Captive Coal Minning Limited PAN No.: AACCC7481N v CG Coal and Power Limited PAN No.: AACCC1624P v Shree Nakoda Ispat and Power Limited PAN No.: AANCS4205P CIN No.: U27101CT2009PLC021220

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2955725	Equity Shares	Rs.10/- each	Rs.29.557 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2744925	Equity Shares	Rs.10/- each	Rs.27.449 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		27.449	26.827	16.772
2] Share Application Money		58.400	33.200	105.300
3] Reserves & Surplus		636.407	489.780	288.156
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		722.256	549.807	410.228
LOAN FUNDS
1] Secured Loans		1264.640	874.038	709.401
2] Unsecured Loans		103.621	102.965	128.339
TOTAL BORROWING		1368.261	977.003	837.740
DEFERRED TAX LIABILITIES		22.462	25.049	29.955
TOTAL		2112.979	1551.859	1277.923
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1399.603	822.097	874.109
Capital work-in-progress		98.971	174.049	31.841
Expenditure pending allocation, net		11.851	9.221	0.000
INVESTMENT		9.744	9.744	9.694
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	377.915	309.884	272.300
	Sundry Debtors	163.012	133.974	133.542
	Cash & Bank Balances	9.431	30.849	8.650
	Other Current Assets	0.000	0.000	45.482
	Loans & Advances	290.781	218.033	140.575
Total Current Assets		841.139	692.740	600.549
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	185.778	112.912	205.213
	Other Current Liabilities	34.180	21.331	21.469
	Provisions	28.371	21.749	11.588
Total Current Liabilities		248.329	155.992	238.270
Net Current Assets		592.810	536.748	362.279
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2112.979	1551.859	1277.923

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2639.104	1475.386	1520.358
		Other Income	1.918	2.085	1.360
		TOTAL (A)	2641.022	1477.471	1521.718
Less	EXPENSES
		Consumption materials changes inventories	2260.699	1106.595
		Manufacturing service costs	30.686	38.626	1306.950
		Employee related expenses	20.341	25.474
		Administrative selling other expenses	33.773	32.473
		TOTAL (B)	2345.499	1203.168	1306.950
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		295.523	274.303	214.768
Less	FINANCIAL EXPENSES (D)		98.552	89.223	60.150
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		196.971	185.080	154.618
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.623	57.108	54.662
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		142.348	127.972	99.956
Less	TAX (H)		26.199	16.843	24.743
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		116.149	111.129	75.213
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		257.837	146.708	71.495
	BALANCE CARRIED TO THE B/S		373.986	253.837	146.708
	EARNINGS IN FOREIGN CURRENCY		46.152	0.000	26.910
	Earnings / (Loss) Per Share (Rs.)		42.31	41.42	44.84

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.40	7.52	4.94
Net Profit Margin (PBT/Sales)	(%)	5.39	8.67	6.57
Return on Total Assets (PBT/Total Assets}	(%)	19.71	8.45	6.78
Return on Investment (ROI) (PBT/Networth)		0.20	0.23	0.24
Debt Equity Ratio (Total Debt/Networth)		1.89	1.78	2.04
Current Ratio (Current Asset/Current Liability)		3.39	4.44	2.52

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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loans directors unsecured	1.346	0.095
Deposits related parties unsecured	102.275	102.870
Total	103.621	102.965

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27109CT2000PLC014186
Name of the company	SHREE NAKODA ISPAT LIMITED
Address of the registered office or of the principal place of business in India of the company	Near Railway Crossing, Mowa, Raipur- 492001, Chattisgarh, India Email : rkagrawal40@yahoo.co.in
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge Others (Stock, etc.)
Particular of charge holder	Bank of Baroda, MID Corporate Branch, 2^nd Floor, LIC Investment Building, Pandri, Raipur - 492001, Chhattisgarh, India Email : whlrai@bankofbaroda.com
Nature of instrument creating charge	Composite Hypothecation Agreement (LDOC 17(B))
Date of instrument Creating the charge	03.11.2012
Amount secured by the charge	Rs. 40.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of Repayment 90 Days Margin 10% Cash margin in the form of FDR at the time of opening of LC Extent and Operation of the charge The charge operates on current and movable assets of the Company to secure due repayment of Ad-hoc Inland Letter of Credit of Rs. 40.000 millions sanctioned to the Company by Bank of Baroda together with all fees, interest, commission, charges, cost, expenses and all the monies payable by the Company to the Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All stocks of raw materials, work-in-process, semi-finished goods and finished goods related with production/operation of the plant also packing materials and stores etc All the present and future book-debts, outstanding moneys, receivables, claims, bills, contracts, engagements and securities, etc. All the tangible movable machinery, plant, cranes, boats, crafts, vehicles with spares, tools and accessories and other movables, furniture, fixtures, fittings, offices equipment, etc

CONTINGENT LIABILITIES: (AS ON 31.03.2011)

(a). Contingent liabilities in respect of Bank Guarantee of Rs. 2.705 millions issued by Bank of Baroda in favour of CSIDC and Rs. 0.915 Millions issued by Indian Overseas Bank in favour of CSEB, similarly Bank Guarantee of Rs. 11.512 Millions issued by Bank of Baroda in favour of Coal India Ltd. has not been provided in the books

(b). Disputed liability of Rs.12.599 millions (Previous year Rs. 12.599 millions) on account of Cenvat credit on Capital Goods (Structural Items) againsts which the company has preferred an appeal to CESTAT, New Delhi. Out of total disputed liability of Rs. 12.599 millions the company has already pre deposited Rs. 6.297 millions (Previous year Rs. 6.297).

(c). Disputed liability of Rs.1.013 millions (Previous year Rs. 1.013 millions) on account of Export of Iron Ore Fines through Merchant Exporter against which the company has preferred an appeal to CESTAT, New Delhi.

(d). Disputed liability of Rs. 4.123 millions (Previous year Rs. Nil) on account of Cenvat credit on Capital Goods (Structural Items) against which the company has preferred an appeal to CESTAT, New Delhi.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Office Equipment
• Factory Equipment
• Computer Equipment
• Furniture and Fixture
• 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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.29
UK Pound	1	Rs.84.22
Euro	1	Rs.72.23

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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
TOTAL		30

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.