MIRA INFORM REPORT

Report Date :

28.01.2013

IDENTIFICATION DETAILS

Name :	D AND H SECHERON ELECTRODES PRIVATE LIMITED
Registered Office :	213D / 215 D, Vishnu Shopping Centre, Plot No.37, Sector 15, CBD Belapur, Navi Mumbai – 400614, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.06.1965
Com. Reg. No.:	11-164343
Capital Investment / Paid-up Capital :	Rs. 68.410 millions
CIN No.: [Company Identification No.]	U32101MH1965PTC164343
TAN No.: [Tax Deduction & Collection Account No.]	BPLD00066D
PAN No.: [Permanent Account No.]	AAACD6111E
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of Welding Electrodes.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Latest financial i.e. 2011-2012 are missing from the Government department. From the available financial of 2011, it seems that the company is progressing well. 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 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

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	BBB (FUND BASED LIMITS)
Rating Explanation	The moderate credit quality. It carry higher than average credit risk.
Date	August - 2012
Rating Agency Name	ICRA
Rating	A3+ (NON FUND BASED LIMITS)
Rating Explanation	The moderate credit quality. It carry higher credit risk.
Date	August - 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 :	213 D/215 D, Vishnu Shopping Centre, Plot No.37, Sector 15, CBD Belapur, Navi Mumbai-400 614, Maharashtra, India.
Tel. No.:	91-22-27561339 and 27561798
Fax No.:	91-22-27561299
E-Mail :	dnchcbd@dnhsecheron.net nsp4u.2007@rediffmail.com tandi@dnhsecheron.net
Website :	http://www.dnhsecheron.com
Corporate Office :	Merchant Chambers, 5^th Floor, west wing, 41 New Marine Lines, Opposite Patkar Hall, Mumbai-400020, Maharashtra, India.
Tel. No.:	91-22-40428112/ 40428100/ 22037663/ 40428100
Fax No.:	91-22-40428101/ 22037664
E-Mail :	narendrasamala@dnhsecheron.net
Website :	http://www.dnhsecheron.com
Factory :	44-46, Industrial Estate Kila Maidan, Post Bag No. 3, Indore-452006, Madhya Pradesh, India.
Tel. No.:	91-731-2412331/37
Fax No.:	91-731-2412338
E-Mail :	dnhi@sancharnet.in
Website :	http://www.dnhsecheron.com
Factory 2 :	Village: Dakachya, A.B. Road, District Indore, Madhya Pradesh, India
Tel. No.:	91-731-2309001/ 2805253/ 2805083
Fax No.:	91-731-2805177 Note: The companies have other 2 Factories which is also located in Indore.
Branches:	Located At: · Mumbai · Nashik · Nagpur · Vasai · Ahmedabad · Surat · Gandhidham · Jamnagar · Baroda · Pune · Kolkata · Durgapur · Cuttack · Rourkela · Angul · Jharsuguda · Guwahati · Delhi · Faridabad · Ghaziabad · Chandigarh · Ludhiana · Secundrabad · Vizag · Chennai · Coimbatore · Neyveli · Trichy · Kochi · Bangalore · Mangalore · Gulbarga · Kanpur · Sitapur · Anpara · Korba · Bilaspur · Bhilai · Satna · Jamshedpur · Bokaro · Indore · Chittorgarh · Udaipur · Jodhpur

DIRECTORS

As on 22.09.2012

Name :	Mr. Murli Dhar Khatri
Designation :	Managing Director
Address :	184 Kalani Nagar, Aerodrome Road, Indore-452005, Madhya Pradesh, India.
Date of Birth/Age :	08.03.1940
Date of Appointment :	01.07.2006
DIN No.:	00064698
Name :	Mr. Parasmal Mogra
Designation :	Director
Address :	60, New Dewas Road, Indore-452003, Madhya Pradesh, India.
Date of Birth/Age :	01.06.1952
Date of Appointment :	01.07.2006
DIN No.:	00264164
Name :	Mr. Arvind A. Maheshwari
Designation :	Director
Address :	22, Maket Tower, “I” Cuffe Parade, Mumbai-400005, Maharashtra, India.
Date of Birth/Age :	23.11.1971
Date of Appointment :	12.06.2003
DIN No.:	00094313
Name :	Ms. Suman Maheshwari
Designation :	Director
Address :	21-22, Maket Tower, “I” Cuffe Parade, Mumbai-400005, Maharashtra, India.
Date of Birth/Age :	10.05.1950
Date of Appointment :	17.07.1986
DIN No.:	00094423
Name :	Mr. Ashok H. Maheshwari
Designation :	Chairman
Address :	21-22, Maket Tower, “I” Cuffe Parade, Mumbai-400005, Maharashtra, India.
Date of Birth/Age :	12.04.1946
Date of Appointment :	14.06.1986
DIN No.:	00094358

KEY EXECUTIVES

Name :	Ms. Shweta Agrawal
Designation :	Secretary
Date of Appointment :	21.05.2009

MAJOR SHAREHOLDERS

As on 22.09.2012

Names of Shareholders	No. of Shares
Sam Holding (Bombay) Private Limited (India)	191024
Sam Farms and Food Private Limited (India)	177203
Sam Project Developers Private Limited (India)	174420
Sam Spintex Limited (India)	30281
Dwekam Weldtech Limited (India)	42573
Celestical Commercial Private Limited (India)	5542
Sam Capital Market Limited (India)	22584
Sam Hoteliers and Resorts Private Limited (India)	23614
Steward Trading and Investment Private Limited (India)	7084
Suman A. Maheshwari and Geetanjali A. Maheshwari	3288
Suman A. Maheshwari and Seema A. Maheshwari	2976
Seema A. Maheshwari and Suman A. Maheshwari	510
Gitanjali A. Maheshwari and Suman A. Maheshwari	385
Arvind A. Maheshwari “HUF”	9756
Ashutosh Maheshwari “HUF”	1080
Total	692320

Equity Share Break up (Percentage of Total Equity)

As on 22.09.2012

Category	Percentage
Bodies corporate	97.40
Directors or relatives of Directors	1.03
Other top fifty shareholders	1.57
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Welding Electrodes.

Products :

Product Description	Item Code (ITC Code)
Coated Electrodes for Electric arc Welding	831110.00
Co2 Wires	722990.06

· SMAW/ MMAW Electrodes

· Consumables for GMAW Process

· Filler wire for GTAW Process

· Low heat input SMAW welding Electrodes

· Flux Cored Wires

Exports :

Products :

Finished Goods

Countries :

· Africa

· UAE

Imports :

Products :

Raw Materials

Countries :

Australia

Terms :

Selling :

L/C and Advance Payments

Purchasing :

L/C and Advance Payments

GENERAL INFORMATION

Suppliers :

Tata Motors

Customers :

Industries and Dealers

· L and T

· Godrej and Boyce

No. of Employees :

600 (Approximately)

Bankers :

· Union Bank of India, 1/3, Murai Mohalla, Sanyogitaganj, Indore-452001, Madhya Pradesh, India.

· Contact No.: 91-1800-222244

· Citi Bank, Unit No. 1 to 4 and 101 to 106 Ground and First Floor, Apoilo Square 7/2 Race Course Road, opposite Nanaijan Kothi saloarkan pratima Chouata, Indore-452007, Madhya Pradesh, India

· HDFC Bank

· ICICI Bank

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee Term Loan
From Bank	103.379	83.113
From Other	9.803	47.488
Working Capital Loan
From Bank	124.267	119.662
Loans taken for Fixed Assets
For Vehicles	10.286	13.180
Total	247.735	263.443
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee Term Loan From Banks	6.820	4.345
Rupee Term Loan From Others	102.856	57.942
Loans Directors	0.937	3.400
Interest accrued due other debt	0.845	1.304
Total	111.458	66.991

Banking Relations :	---
Financial Institution:	· Fullerton India Credit Company Limited, Megh Towers, 3^rd Floor, Old No. 307, New No. 165, Poonmallee High Road, Maduraoyal, Chennai – 600095, Tamilnadu, India · 3I Infotech Trusteeship Services Limited, 3^rd To 6^th Floor, International Infotech Park, Tower No. 5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400703, Maharashtra India
Auditors :
Name :	G.V. Rangnekar and Company Chartered Accountant
Address :	698, M.G. Road, Topkhana, Maharashtriya Sahitya Sabha, Indore-452001, Madhya Pradesh, India.
PAN No.:	AABFG4195R
Group Company:	· D and H Secheron Industries Private Limited · D and H Secheron Welding Institute · Dwekam Electrodes Private Limited · Sam Industries Limited · Gaurang Metals Private Limited
Associates/Subsidiaries :	· Sam Farms and Foods Private Limited · Sam Holdings (Bombay) Private Limited · Sam Project Developers Private Limited

CAPITAL STRUCTURE

As on 22.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
990000	Equity Share	Rs.100/- Each	Rs. 99.000 Millions
10000	Preference Share	Rs. 100/-Each	Rs. 1.000 Million
	Total		Rs. 100.000 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
985800	Equity Shares	Rs.100/- each	Rs. 98.580 Millions

Issued Capital:

No. of Shares	Type	Value	Amount
692320	Equity Shares	Rs.100/- each	Rs. 69.232 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
990000	Equity Share	Rs.100/- Each	Rs. 99.000 Millions
10000	Preference Share	Rs. 100/-Each	Rs. 1.000 Million
	Total		Rs. 100.000 Millions

Issued Capital:

No. of Shares	Type	Value	Amount
985800	Equity Share	Rs.100/- Each	Rs. 98.580 Millions

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
684100	Equity Share	Rs.100/- Each	Rs. 68.410 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		68.410	68.410	68.410
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		266.567	227.374	209.489
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		334.977	295.784	277.899
LOAN FUNDS
1] Secured Loans		247.735	263.443	187.413
2] Unsecured Loans		111.458	66.991	48.791
TOTAL BORROWING		359.193	330.434	236.204
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		694.170	626.218	514.103
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		224.136	266.706	181.091
Capital work-in-progress		1.866	15.009	91.839
INVESTMENT		211.750	192.170	78.388
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	270.763	280.728	206.255
	Sundry Debtors	112.782	68.668	87.092
	Cash & Bank Balances	68.926	42.536	78.696
	Other Current Assets	3.167	2.174	0.898
	Loans & Advances	257.644	170.929	117.479
Total Current Assets		713.282	565.035	490.420
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	200.807	191.271	142.267
	Other Current Liabilities	139.794	121.136	102.488
	Provisions	116.263	100.595	82.880
Total Current Liabilities		456.864	413.002	327.635
Net Current Assets		256.418	152.033	162.785
MISCELLANEOUS EXPENSES		0.000	0.300	0.000
TOTAL		694.170	626.218	514.103

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2150.074	1686.101	1567.454
		Other Income		14.545	12.598
		TOTAL (A)	2150.074	1700.646	1580.052
Less	EXPENSES
		Raw Materials, Packing Materials, Finished Goods and Semi-Finished Goods		982.010	915.545
		Manufacturing Expenses		108.105	78.484
		Selling and Distribution Expenses		153.026	142.131
		Payments to and Provision for Employees		134.443	115.737
		Director’s Remuneration		31.142	30.140
		Administrative and Other Expenses		160.495	161.631
		Loss on Sale of Forward Contract		0.000	0.372
		Loss on Sale of Shares		0.000	10.131
		TOTAL (B)	2044.625 (Including Finance and Depreciation Expenses)	1569.221 (Including Finance and Depreciation Expenses)	1454.171 (Including Finance and Depreciation Expenses)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			131.425	125.881
Less	FINANCIAL EXPENSES (D)			28.912	30.129
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			102.513	95.752
Less/ Add	DEPRECIATION/ AMORTISATION (F)			21.233	17.089
	PROFIT BEFORE TAX (E-F) (G)		105.429	81.280	78.663
Less	TAX (H)		34.207	27.636	30.549
	PROFIT AFTER TAX (G-H) (I)		71.222	53.644	48.114
Add	Previous Year’s income/provision written back		0.635	1.155	7.586
Less	Previous year Expenses		0.473	4.376	0.394
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.589	8.979	2.065
Less	APPROPRIATIONS
		Transfer to General Reserve	30.000	20.000	20.000
		Interim Dividend	16.418	0.000	12.134
		Tax on Interim Dividend	2.727	0.000	2.062
		Dividend	8.209	24.628	12.134
		Tax on Dividend	1.332	4.185	2.062
	BALANCE CARRIED TO THE B/S		23.287	10.589	8.979
	Earnings Per Share (Rs.)		104.11	73.70	64.30

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.31	3.15	3.05
Net Profit Margin (PBT/Sales)	(%)	4.90	4.82	5.02
Return on Total Assets (PBT/Total Assets}	(%)	0.11	9.77	11.71
Return on Investment (ROI) (PBT/Networth)		0.31	0.27	0.28
Debt Equity Ratio (Total Liability/Networth)		2.43	2.51	2.03
Current Ratio (Current Asset/Current Liability)		1.56	1.37	1.50

Above information has been parted by Mr. Prakash Ramani.

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	200.807	191.271	142.267
Sundry Creditors	200.807	191.271	142.267

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	Yes
18]	Major customers	Yes
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	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CHANGE OF ADDRESS:

Registered office of the company has been shifted from 44/46, Industrial Estate, Kila Maidan, Indore, Madhya Pradesh, India to the present address w.e.f. 03.08.2006

PERFORMANCE:

During the year, the company has posted appreciable operating performance in terms of enhancement in overall sales and maintenance of sales realization.

The Gross sales and other income of the company have gone up by about 27.59%, Total cost of goods produced appreciated by about 30.77%. Selling and Administrative expenses rose by 7.90%. The Management is keeping the controllable costs under control and upgraded its sales performance during the year. The Directors have also undertaken expansion at Dakachya and Sanwer plant at Indore where additional machineries have been installed.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U32101MH1965PTC164343
Name of the company	D AND H SECHERON ELECTRODES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	213D / 215D, Vishnu Shopping Centre, Plot no. 37, sector - 15, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Fullerton India Credit Company Limited, Megh Towers, 3^rd Floor, Old No. 307, New No. 165, Poonmallee High Road, Maduraoyal, Chennai – 600095, Tamilnadu, India
Nature of instrument creating charge	Memorandum of deposit of title deeds dated 31.10.2012 Facility agreement dated 31.10.2012 Facility letter dated 25.10.2012
Date of instrument Creating the charge	31.10.2012
Amount secured by the charge	Rs. 50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Floating interest at the rate of fullerton benchmark primi lending rate (17.25%) – 3.75%SPREAD = currently 13.50% per annum computed with monthly rest. Terms of Repayment The principal amount together with applicable interest shall be repaid in 60equated monthly installments. The due date of the monthly onstallment shall be 5^th day of each calendar months Margin Not Applicable Extent and Operation of the charge Security created by way of equitable mortgage on properties more particularly described in schedule A opf the memorandum of the deposit of title deeds for Rs. 50.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Office bearing No. 113 to 118 and 213 to 218, on Plot No. 37, Admeasuring 3969.10 sq.mt. in D wing , Vishnu office Premises Co- Operative Society limited, sector – 15, CBD Belapur, Taluka and District - Thane

CONTINGENT LIABILITIES

Contingent liabilities are not provided for and are disclosed by way of notes.

Fixed Assets:

· Land

· Buildings

· Plant and Machinery

· Generator Set

· Electrical and Water Installation

· Office Equipments and Furniture

· Laboratory Equipments

· Cycle Stand

· 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.53.85
UK Pound	1	Rs.85.25
Euro	1	Rs.71.72

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	SPN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.