MIRA INFORM REPORT

Report Date :

16.07.2013

IDENTIFICATION DETAILS

Name :	HOOGHLY ALLOY AND STEELS CO. PRIVATE LIMITED
Registered Office :	Stehen House, Suit No.90, 5^th Floor, 56E, Hemanta Basu Sarani {Formerly-4, BBD Bagh (E)}, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.09.2004
Com. Reg. No.:	21-099838
Capital Investment / Paid-up Capital :	Rs.20.000 millions
CIN No.: [Company Identification No.]	U27106WB2004PTC099838
PAN No.: [Permanent Account No.]	AABCH5848R
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing of Steel Ingots and Structural Steels, trading in Iron and Steel and also acts as a Commission Agents.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 700000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is promoted by the “Agarwal Family”. Subject is an established company having a moderate track record. Financial for the year 2012 is not available. As per the previous year’s, the networth of the company seems to be good. Trade relations are reported to be fair. Business is active. Payment terms are unknown. In view of experienced promoters, the company can be considered for business dealings with some 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Cash Credit: BB+
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	December 28, 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.

INFORMATION PARTED BY

Name :	Mr. Manoj Sharma
Designation :	Finance Department
Contact No.:	91-33-22424278
Date :	16.07.2013

LOCATIONS

Registered Office :	Stehen House, Suit No.90, 5^th Floor, 56E, Hemanta Basu Sarani {Formerly-4, BBD Bagh (E)}, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22424278/ 22105873
Fax No.:	91-33-22105661
E-Mail :	hooghlyalloy@rediffmail.com hooghlyispat@hotmail.com
Website :	http://hooghlysteel.com
Factory :	NH-2,  Dakshin Rajyadharpur, Sreerampur, Hooghly – 712 203, West Bengal, India
Tel. No.:	91-33-26227222
Fax No.:	91-33-26224179

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Ashoke Kumar Guhathakurta

Designation :

Director

Address :

41, D.A.T. Mookherjee Road, Budge, 24, Pargana (S), West Bengal, India

Date of Birth/Age :

18.10.1952

Date of Appointment :

17.09.2004

PAN No.:

AINPG7904M

DIN No.:

00103303

Name :

Mr. Anshul Dewat Singhal

Designation :

Director

Address :

159, Rabindra Sarani, 2^nd Floor, Kolkata – 700 007, West Bengal, India

Date of Birth/Age :

29.01.1983

Date of Appointment :

03.10.2008

DIN No.:

00248543

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	U51311MH2000PTC129939	MGI (INDIA) CONSULTING PRIVATE LIMITED	Director	16/03/2004	16/03/2004	24/03/2008	Active	NO
2	U27106WB1994PLC061906	HOOGHLY EXTRUSIONS LIMITED	Director	29/09/2004	29/09/2004	-	Active	NO
3	U27101GA2003PLC003239	AGASTYA GLOBAL LIMITED	Director	06/08/2005	06/08/2005	-	Active	NO
4	U67120GJ1995PTC025425	FLYING FISH TECHNOLOGIES PRIVATE LIMITED	Director	19/03/2006	19/03/2006	-	Active	NO
5	U27109WB2005PTC103275	INDO EMIRATES BUILDING SOLUTIONS PRIVATE LIMITED	Managing director	04/12/2006	04/12/2006	05/03/2008	Active	NO
6	U45202MH2007PTC173666	INDO EMIRATES BUILDING SYSTEMS PRIVATE LIMITED	Director	31/08/2007	31/08/2007	05/03/2008	Strike off	NO
7	U27106WB2004PTC099838	HOOGHLY ALLOY AND STEELS CO. PRIVATE LIMITED	Director	03/10/2008	03/10/2008	-	Active	NO
8	U28112MH2009PLC197954	JSW STRUCTURAL METAL DECKING LIMITED	Director	08/06/2011	18/02/2010	-	Active	NO
9	U28112MH2009PLC191045	JSW SEVERFIELD STRUCTURES LIMITED	Whole-time director	28/06/2011	20/04/2011	-	Active	NO
10	U85100MH1982NPL027419	SHASHI DEWAT SINGHAL FOUNDATION	Director	18/11/2011	18/11/2011	-	Active	NO

Name :

Mr. Vishwanath Agarwal

Designation :

Director

Address :

6-1A, Moria Street, Kolkata – 700 017, West Bengal, India

Date of Birth/Age :

15.05.1934

Date of Appointment :

17.09.2004

PAN No.:

ACGPA3329J

DIN No.:

00049993

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	U11202HR1985PTC020799	RAWALWASIA OIL INDUSTRIES PRIVATE LIMITED	Director	26/04/1985	26/04/1985	-	Active	NO
2	U27104WB1997PLC085837	HOOGHLY METALS LIMITED	Director	06/11/1997	06/11/1997	-	Active	NO
3	U27106WB2004PTC099838	HOOGHLY ALLOY AND STEELS CO. PRIVATE LIMITED	Director	17/09/2004	17/09/2004	-	Active	NO
4	U60222WB1996PTC080435	CHOPRA RETREADERS PRIVATE LIMITED	Director	14/07/2005	14/07/2005	-	Active	NO

Name :

Mr. Prem Kumar Agarwal

Designation :

Director

Address :

46A, Madan Mohan Malviya Sarani, Kolkata – 700 020, West Bengal, India

Date of Birth/Age :

11.05.1955

Date of Appointment :

14.03.2005

PAN No.:

ACGPA1859H

DIN No.:

00049971

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	U27109HR1985PTC020743	RAWAL WASIA ISPAT UDYOG PRIVATE LIMITED	Director	22/04/1985	22/04/1985	-	Active	NO
2	U27106WB1994PLC061906	HOOGHLY EXTRUSIONS LIMITED	Director	21/02/1994	21/02/1994	-	Active	NO
3	U51109WB1997PTC083675	AVINASH MARKETING PRIVATE LIMITED	Director	01/07/1997	01/07/1997	-	Active	NO
4	U27104WB1997PLC085837	HOOGHLY METALS LIMITED	Director	06/11/1997	06/11/1997	-	Active	NO
5	U70109WB1995PTC072989	ASIAN HOUSING AND INFRASTRUCTURE PRIVATE LIMITED	Director	01/01/2001	01/01/2001	27/03/2013	Active	NO
6	U51109WB1992PTC056171	BENGAL ENTERPRISES PRIVATE LIMITED	Director	14/02/2005	14/02/2005	-	Active	NO
7	U27106WB2004PTC099838	HOOGHLY ALLOY AND STEELS CO. PRIVATE LIMITED	Director	14/03/2005	14/03/2005	-	Active	NO
8	U70101WB2005PTC106035	HAPPY VALLEY REALTORS PRIVATE LIMITED	Director	31/10/2005	31/10/2005	-	Active	NO
9	U45203WB2007PTC117690	HOOGHLY DEVELOPERS PRIVATE LIMITED	Director	07/08/2007	07/08/2007	30/08/2012	Active	NO
10	U51909WB2005PTC101239	PENGUIN VYAPAAR PRIVATE LIMITED	Director	10/09/2009	10/09/2009	-	Active	NO
11	U70101WB2007PTC118610	VISHAL PROMOTORS PRIVATE LIMITED	Director	15/09/2009	15/09/2009	-	Active	NO
12	U70109WB1996PTC079118	U.K.DEVELOPERS PRIVATE LIMITED	Director	31/01/2012	31/01/2012	-	Active	NO
13	U45201WB1973PTC028659	POONAM CONSTRUCTION CO PRIVATE LIMITED	Director	31/01/2012	31/01/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Manoj Sharma
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
Vishwanath Agarwal	107600	5.38
Pushpa Devi Agarwal	180000	9.00
Prem Kumar Agarwal	115000	5.75
Ankit Kumar Agarwal	24100	1.21
Ashok Kumar Agarwal	40100	2.01
Ashok Kumar Agarwal and Others (HUF)	121100	6.06
Pawan Kumar Agarwal	100100	5.01
Pawan Kumar Agarwal and Others (HUF)	62100	3.11
Pista Devi Agarwal	124800	6.24
Prateek Kumar Agarwal	72200	3.61
Prem Kumar Agarwal and Others (HUF)	120100	6.01
Swati Agarwal	96500	4.83
Uma Agarwal	116100	5.81
Vishwanath Agarwal and Others (HUF)	120100	6.01
Vishwanath Agarwal and Sons HUF	100100	5.01
Bengal Enterprises Private Limited, India	385000	19.25
Aman Agarwal	115000	5.75
Total	2000000	100.00

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	19.25
Directors or relatives of directors	80.75
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacturing of Steel Ingots and Structural Steels, trading in Iron and Steel and also acts as a Commission Agents.

Products :

Item Code No. (ITC Code)	72249040
Product Description	Steel Ingots and Structural Steel

Exports :

Products :

· Finished Goods

Countries :

· Sri Lanka

· Japan

· Bangladesh

Terms :

Selling :

Credit

Purchasing :

Credit and Depend

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Production / Purchase During The Year
Ingots, Structural and Rolls	Qty in MT	57936.398

GENERAL INFORMATION

Customers :

End Users and Others

No. of Employees :

400 (Approximately)

Bankers :

· Axis Bank Limited, Corporate Banking Branch, 1, Shakespeare Sarani, AC Market, 3^rd Floor,, Kolkata – 700 071, West Bengal, India

· Bank of Baroda, Burrabazar Branch, 8/C, M.D. Road, Kolkata – 700 007, West Bengal, India

· ING Vysya Bank Limited, Centre Point Building, 21, Hemanta Basu Sarani, Kolkata – 700 001, West Bengal, India

· State Bank of India, Mid Corporate Loan Administration Unit, 7^th Floor, "Samriddhi Bhawan", Block-E, 1, Strand Road, Kolkata – 700 001, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks [Secured against Hypothecation of all movable fixed assets (except vehicles and other assets created out of others bank's /FI's finance) of the company both present and future as Primary Securities and Equitable mortgage of factory land and building, Extension of Hypothecation Charge on all the Current Assets along with personal guarantee of two Directors of the Company as Collateral Security.]	33.050	51.075
Working capital loans banks [Secured against Hypothecation Charge on all the Current Assets including Stock and Book Debts, both present and future as Primary Securities and Extension of Hypothecation on moveable fixed assets (except vehicles and other assets created out of other bank's / FI's finance) of the company both present and future, Equitable mortgage of factory land and building, along with personal guarantee of two Directors of the Company as Collateral Security.]	243.202	160.349
Total	276.252	211.424

Banking Relations :	--
Auditors :
Name :	Aditya Mishra and Company Chartered Accountants
Address :	5/1, Clive Road, Kolkata – 700 001, West Bengal, India
PAN No:	ADYPM7201L

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
2000000	Equity Shares	Rs.10/- each	Rs.20.000 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		20.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		155.046	148.698	141.920
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		175.046	168.698	161.920
LOAN FUNDS
1] Secured Loans		276.252	211.424	237.639
2] Unsecured Loans		0.000	42.500	92.050
TOTAL BORROWING		276.252	253.924	329.689
DEFERRED TAX LIABILITIES		0.819	2.267	3.663
TOTAL		452.117	424.889	495.272
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		84.524	91.872	102.902
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.485	1.485	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	226.086	126.213	130.479
	Sundry Debtors	137.457	97.865	199.076
	Cash & Bank Balances	6.516	19.924	1.703
	Other Current Assets	45.734	62.269	76.017
	Loans & Advances	60.084	59.764	37.192
Total Current Assets		475.877	366.035	444.467
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	71.781	7.192	42.032
	Other Current Liabilities	33.347	23.892	9.151
	Provisions	4.679	3.509	1.005
Total Current Liabilities		109.807	34.593	52.188
Net Current Assets		366.070	331.442	392.279
MISCELLANEOUS EXPENSES		0.038	0.090	0.091
TOTAL		452.117	424.889	495.272

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1264.395	1131.833	1148.951
		Other Income	NA	0.820	0.329
		TOTAL (A)	NA	1132.653	1149.280
Less	EXPENSES
		Office Expenses	NA	1094.458	1091.581
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	1094.458	1091.581
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	38.195	57.699
Less	INTEREST (D)		NA	15.571	26.032
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.439	22.624	31.667
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.956	13.753	23.000
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		9.484	8.871	8.667
	TAX (H)		4.598	3.503	1.006
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		6.333	6.752	10.572
	Taxes paid for earlier years		0.148	0.002	0.024
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.115	11.337	0.789
	BALANCE CARRIED TO THE B/S		24.300	18.091	11.337
	Earnings / (Loss) Per Share (Rs.)		3.17	3.38	NA

Particulars	31.03.2013	31.03.2012
Sales Turnover (Approximately)	1709.200	1442.600

The above information has been parted by Mr. Manoj Sharma (Finance Department).

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	0.60	0.92
Net Profit Margin (PBT/Sales)	(%)	0.75	0.78	0.75
Return on Total Assets (PBT/Total Assets}	(%)	1.69	1.94	1.58
Return on Investment (ROI) (PBT/Networth)		0.05	0.05	0.05
Debt Equity Ratio (Total Debt/Networth)		1.58	1.51	2.04
Current Ratio (Current Asset/Current Liability)		4.33	10.58	8.52

LOCAL AGENCY FURTHER INFORMATION

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 five 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	No
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	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	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Other debt	0.000	42.500
Total	0.000	42.500

Note:

The registered office of the company has been shifted from 76, Stephen House, 4, B.B.D. Bagh (E), Kolkata – 700 001, West Bengal to the present address w.e.f. 02.04.2007.

CONTINGENT LIABILITY (AS ON 31.03.2011)

a. Letter of Credit given to the WBSEDCL for Rs.13.000 millions.

Bankers Charges Report as per Registry

Corporate identity number of the company	U27106WB2004PTC099838
Name of the company	HOOGHLY ALLOY AND STEELS CO. PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Stehen House, Suit No.90, 5^th Floor, 56E, Hemanta Basu Sarani {Formerly-4, BBD Bagh (E)}, Kolkata – 700 001, West Bengal, India E-Mail: hooghlyispat@hotmail.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge Others (Hypothecation on current assets and fixed assets.)
Particular of charge holder	CIN No.: L85110KA1930PLC000124 ING Vysya Bank Limited, Centre Point Building, 21, Hemanta Basu Sarani, Kolkata – 700 001, West Bengal, India E-Mail: cms@companiesinn.com
Nature of description of the instrument creating or modifying the charge	Deed of General Hypothecation.
Date of instrument Creating the charge	26.03.2013
Amount secured by the charge	Rs.325.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Terms of Repayment: ODSIT/BD: On Demand WCDL (Sub limit to ODSIT/BD): On Demand PCL/PCFC/PSL (Sub limit to ODSIT/BD): On Demand ILC/FLC: On Demand ILC/FLC (Sub limit to ODSIT/BD): On Demand LEF (Sub limit to ODSIT/BD): On Demand LCBD: On Demand Margin: ODSIT/BD: 25% on stocks and book debts up to 90 days. WCDL Sub limit to ODSIT/BD): 25% on stocks and book debts up to 90 days. PCL/PCFC/PSL (Sub limit to ODSIT/BD): 15% of PO/LC/Other Orders copy value ILC/FLC: 10% in the form of fixed deposits. ILC/FLC (Sub limit to ODSIT/BD): 10% in the form of fixed deposits LEF (Sub limit to ODSIT/BD): As per banks applicable Norm. LCBD : Nil Extent and Operation of the charge: First ranking pari passu charge on all the current assets and fixed assets including stock and book debts (both present and future) along with ICICI Bank. Others: ODSIT/BD: Rs.225.000 millions WCDL (Sub limit to ODSIT/BD): Rs.(150.000) millions ILC/FLC (Sub limit to ODSIT/BD): Rs.(40.000) millions PCL/PCFC/PSL (Sub limit to ODSIT/BD): Rs.(60.000) millions LEF (Sub limit to ODSIT/BD): Rs.(10.000) millions ILC/FLC: Rs.20.000 millions LCBD: Rs.80.000 millions
Short particulars of the property charged	All the current assets and fixed assets including stock of the company stored or to be stored at NH-2, Delhi Road, Dakshin Rajyadharpur, P.O. Simla, Hooghly -712203. All the book debts of the company from time to time.

FIXED ASSETS:

· Land

· Shed and Building

· Plant and Machinery

· Mould

· Computer

· Office Equipments

· Rolls

· Motor 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.60.05
UK Pound	1	Rs.90.71
Euro	1	Rs.78.47

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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

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

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

RATING EXPLANATIONS

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

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