MIRA INFORM REPORT

Report Date :

20.06.2013

IDENTIFICATION DETAILS

Name :	AMBICA STEELS LIMITED
Registered Office :	C-54/1, Mezzanie Floor, Wazirpur Industrial Area, New Delhi 110052
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss A/c)
Date of Incorporation :	16.07.1970
Com. Reg. No.:	55-005345
Capital Investment / Paid-up Capital :	Rs. 116.358 Millions
CIN No.: [Company Identification No.]	U27109DL1970PLC005345
TAN No.: [Tax Deduction & Collection Account No.]	DELA13737D
PAN No.: [Permanent Account No.]	AAACA9942Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of steel products, Iron, steel, steel metal products, tools, electrical and mechanical machines, sugar, cotton, oil seeds machinery and fittings.
No. of Employees :	Not Available

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 2856000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The Balance sheet for the year 2012 is not available. The company has recorded better growth in its income during 2012. However, trade relations are as fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered normal for business dealing at usual trade terms and condition.

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

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long term rating: BB+
Rating Explanation	Rating indicate an elevated vulnerability to default risk in the event of adverse changes in business or economic condition.
Date	19 January 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 / Corporate Office :	C-54/1, Mezzanie Floor, Wazirpur Industrial Area, New Delhi 110052, Delhi, India
Tel. No.:	91-11-47034400 (30 lines)
Fax No.:	91-11-47034450
E-Mail :	info@ambicasteels.com agupta@ambicasteels.com dgupta@ambicasteels.com sudhirgarg@ambicasteels.com
Website :	www.ambicasteels.com
Factory 1 :	Plot no.51/2, Site – 4, UPSIDC Industrial Area, Sahibabad – 201010, District Ghaziabad, Uttar Pradesh, India.
Tel. No.:	91-120-4189300 (30 lines)
Fax No.:	91-120-4189399
Factory 2 :	Plot No. 32, Site-2, Loni Road, Industrial Area, Mohan Nagar, Ghaziabad – 201007, Uttar Pradesh, India.
Tel. No.:	91-120-4189200 (30 lines)
Fax No.:	91-120-4189222
Factory 3 :	Plot No. 30, Site -4, UPSIDC Industrial Area, Sahibabad – 201010, District Ghaziabad, Uttar Pradesh, India.
Tel. No.:	91-120-4564585 (4 lines)
Godown 1 :	Plot No 935, Road No.10,Village Kalamboli Taluka Panvel, Distt. Raigad, Navi Mumbai, Maharashtra, India
Godown 2 :	Plot No. 845 G, Village Kalamboli Taluka Panvel, Distt. Raigad, Navi Mumbai, Maharashtra, India
Godown 3 :	A-13, Central Market, RBH Colony Bhiwadi, Rajasthan, India
Godown 4 :	G-642, Basni, Phase-II, Jodhpur-342005, Rajasthan, India
International Office :	Located at: Europe Singapore Hong Kong

DIRECTORS

As on: 24.09.2012

Name :

Mr. Mahender Pal Gupta

Designation :

Whole Time Director

Address :

B-29, Phase – I, Ashok Vihar, Delhi – 110052, India

Date of Birth/Age :

06.04.1938

Date of Appointment :

01.04.2008

DIN No. :

00009803

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	U27109DL1970PLC005345	AMBICA STEELS LIMITED	Whole-time director	01-04-08	19-10-99	-	Active	NO

Name :

Mr. Mahesh Gupta

Designation :

Whole-Time Director

Address :

Flat No. 603 D – II, Omaxe Royal, Residency, Sec. – 44, Noida – 201303, Uttar Pradesh, India

Date of Birth/Age :

30.03.1970

Date of Appointment :

01.04.2008

DIN No. :

00009849

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	U27109DL1970PLC005345	AMBICA STEELS LIMITED	Whole-time director	01-04-08	02-05-95	-	Active	NO

Name :

Mr. Ajay Kumar

Designation :

Whole Time Director

Address :

C-72 IInd Floor, East of Kailash, New Delhi – 110065, India

Date of Birth/Age :

01.02.1965

Date of Appointment :

01.04.2008

DIN No. :

00009973

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	U27109DL1970PLC005345	AMBICA STEELS LIMITED	Whole-time director	01-04-08	15-05-00	-	Active	NO

Name :

Mr. Chander Parkash Tri Bhawan Gupta

Designation :

Managing Director

Address :

H. No. 9, East Avenue Road, East Punjabi Bah, Delhi, - 110026, India

Date of Birth/Age :

12.10.1960

Date of Appointment :

01.04.2012

DIN No. :

01715253

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	U27109DL1970PLC005345	AMBICA STEELS LIMITED	Managing director	01-04-12	19-10-99	-	Active	NO
2	U27106DL2004PLC131284	AMBICA STAINLESS STEEL LIMITED	Director	17-01-05	17-01-05	-	Active	NO
3	U37100DL2010PLC204397	WORLD METAL RECYCLING LIMITED	Director	21-06-10	21-06-10	-	Active	NO
4	U74899DL1985PLC020703	UPHAR STEELS LIMITED	Director	22-07-10	22-07-10	-	Active	NO

Name :

Mr. Satya Parkash Tyagi

Designation :

Whole Time Director

Address :

F-103, Alakhnanda Apartment, Rampuri, Gaziabad, (Utter Pradesh), India

Date of Birth/Age :

01.01.1960

Date of Appointment :

01.04.2008

DIN No. :

01736605

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	U27109DL1970PLC005345	AMBICA STEELS LIMITED	Whole-time director	01-04-08	10-07-03	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Mohit Khanna
Designation :	Secretary
Address :	WZ-1948, Rani Bagh, New Delhi-110034, India
Date of Appointment :	23.08.2012
Pan No :	AQQPK8519E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 24.09.2012

Names of Shareholders	No. of Shares
Mahender Pal (HUF)	35450
Mahender Pal Gupta	96820
Seema Gupta	86900
Chander Prakash Gupta	333890
Chander Prakash (HUF)	34200
Anand Swarup Gupta	119840
Mahesh Gupta	51000
Ajay Kumar Singhal	20000
Uphar Steels Limited	102100
Futureplan Industrial Private Limited	77850
Ashish Bansal	1200
Swati Gupta	46290
Ramesh Kumar	4000
Suman Singhal	5000
Anand Gupta HUF	57000
Ajay Kumar and Sons HUF	5000
Usha Gupta	4760
Sunita Singhal	8000
Richa Gupta	13000
Narender Mohan Gupta	17500
Anuj Singhal	8300
Prerna Gupta	9000
Abhinav Gupta	10000
Ankush Singhal	5360
Bishan Swaroop Gupta – HUF	1020
M R Gupta and Sons HUF	100
Mahesh Gupta HUF	10000
Total	1163580

Equity Share Break up (Percentage of Total Equity)

As on: 24.09.2012

Category	Percentage
Bodies corporate	15.46
Directors or relatives of Directors	84.54
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of steel products, Iron, steel, steel metal products, tools, electrical and mechanical machines, sugar, cotton, oil seeds machinery and fittings.

Products :

Item Code No.	Product Description
72181000	S.S. Ingots
72201190	S.S. Flat
7222119	S.S. Rolled/Bright Bar

· Bright Round Bars

· Flat Bars

· Square and Hexagon Bars

· Pump / Piston Shaft Quality Bars

· Hot Rolled Black Bars and Quality Bar

· Continuous Cast Billets

· Forging Quality Billets

· Improved Machining Ingots

· Material Grades

PRODUCTION STATUS (As On 31.03.2011)

Particulars	Installed Capacity (Figures In M.T)			Actual Production (Figures In M.T)
	Unit 1	Unit 2	Unit 3	Unit 1	Unit 2	Unit 3
Steel, Ingots, Billets, Bar, Flats, Angles	5000	60000	60000	--	--	52952

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Oriental Bank of Commerce, New Delhi – 110001, Delhi, India

· Bank of Maharashtra, B-29, Connaught Place, New Delhi – 110001, India

Facilities :

SECURED LOANS	31.03.2011 (Rs. In Millions)
Rupee Term Loans from Banks	265.288
Working Capital Loan	460.484
Loans taken from Others Fixed Assets	15.812
Total	741.584

Banking Relations :	--
Auditors :
Name :	Rajindera K. Goel and Company Chartered Accountants
Address :	J 288, Ground Floor, Saket, New Delhi – 110017, India
Tel. No.:	91-11-26531642/29555354
Fax No.:	91-11-29555036
Pan No.:	AAEFR3835Q
Subsidiary company (As on 31.03.2011) :	World Metal Recycling Limited, India CIN: U37100DL2010PLC204397

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1200000	Equity Shares	Rs.100/- each	Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1163580	Equity Shares	Rs.100/- each	Rs. 116.358 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		116.358	116.358
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		597.784	525.965
4] (Accumulated Losses)		0.000	0.000
NETWORTH		714.142	642.323
LOAN FUNDS
1] Secured Loans		741.584	783.683
2] Unsecured Loans		72.850	32.650
TOTAL BORROWING		814.434	816.333
DEFERRED TAX LIABILITIES		64.087	59.068
TOTAL		1592.663	1517.724
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		706.680	697.701
Capital work-in-progress		0.000	0.000
INVESTMENT		7.795	0.000
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	868.427	780.125
	Sundry Debtors	699.991	515.803
	Cash & Bank Balances	102.216	80.525
	Other Current Assets	0.000	0.000
	Loans & Advances	321.130	227.401
Total Current Assets		1991.764	1603.854
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	153.286	119.643
	Other Current Liabilities	922.807	642.775
	Provisions	37.483	21.413
Total Current Liabilities		1113.576	783.831
Net Current Assets		878.188	820.023
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		1592.663	1517.724

NOTE:

Balance sheet for the year 2012 is not available only Profit and Loss A/c for the year 2012 is available.
PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	5075.572	4003.688	3310.148
		Other Income	17.664	10.755	55.176
		TOTAL	5093.236	4014.443	3365.324
Less	EXPENSES
		Cost of materials consumed	3532.161	3104.573
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	217.051	(176.196)
		Employee benefit expense	74.345	54.372
		Other Expenses	856.873	748.123
		TOTAL	4680.430	3730.872	3126.226
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		412.806	283.571	239.098
Less	FINANCIAL EXPENSES		224.321	132.020	109.509
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		188.485	151.551	129.589
Less/ Add	DEPRECIATION/ AMORTISATION		48.326	45.008	50.234
	PROFIT BEFORE TAX		140.159	106.543	79.355
Less	TAX		45.730	34.724	22.015
	PROFIT AFTER TAX		94.429	71.819	57.340
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.497	1.678	4.338
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	70.000	60.000
	BALANCE CARRIED TO THE B/S		97.926	3.497	1.678
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	1463.481	1196.057	382.980
	TOTAL EARNINGS		1463.481	1196.057	382.980
	IMPORTS
		Raw Materials	1476.198	975.068	747.211
		Components and Spare Parts	8.067	9.716	0.000
		Capital Goods	130.154	18.401	0.000
	TOTAL IMPORTS		1614.419	1003.185	747.211
	Earnings Per Share (Rs.)		81.15	61.72	49.28

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.85	1.79	1.70
Net Profit Margin (PBT/Sales)	(%)	2.76	2.66	2.40
Return on Total Assets (PBT/Total Assets}	(%)	0.00	5.19	3.45
Return on Investment (ROI) (PBT/Networth)		NA	3.58	0.14
Debt Equity Ratio (Total Debt /Networth)		NA	1.14	1.27
Current Ratio (Current Asset/Current Liability)		NA	1.79	2.05

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

UNSECURED LOANS:

Particulars	31.03.2011 (Rs. In Millions)
Loans from Directors	16.850
Other Debts	56.000
Total	72.850

BANKERS CHARGES REPORT AS PER REGISTRY :

Corporate identity number of the company	U27109DL1970PLC005345
Name of the company	AMBICA STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	C-54/1 Mezzanie Floor, Wazirpur Industrial Area, Delhi-110052, India Email : dgupta@ambicasteels.com
This form is for	Creation of charge
Type of charge	· Immovable Property · Book Debts · Movable Property · Others (All stocks and entire fixed assets of the company)
Particular of charge holder	Oriental Bank Of Commerce Limited, A-Block, Connaught Place, New Delhi- 110001, India Email : bm0179@obc.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of hypothecation of assets and Memorandum of deposit of title deed dated 25.08.2012
Date of instrument Creating the charge	24.08.2012
Amount secured by the charge	Rs.1690.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: At base rate + 3.75% i.e. 14.15% on monthly rests, subject to change in base rate / spread announced by the bank and subject to changes by RBI from time time, penal @2%p.a. Terms of Repayment: As Per Agreement Margin: As Per Agreement Extent and Operation of the charge: Hypothecation of stock of raw material, stock in process, finished goods, stock, spares and receivables in pari-passu basis with consortium Banks Hypothecation of all the current advance to suppliers. Hypothecation of all the fixed assets of the company on pari-passu bank with consortium except of exclusive charge on fixed assets by the Bank.
Short particulars of the property charged	1. Factory Land and Building.area 22625 sq. yd. at 51/2,site-IV / Industrial Area, Shahibabad, Ghaziabad, Uttar Pradesh, India 2. Factory Land and Building. area 28695 sq. yd. at Plot No.32, Loni Road Industrial Area, Site-II, Mohan Nagar, Ghaziabad, Uttar Pradesh, India 3. Factory Land and Bluilding .area 3024.36 sq.mtr. at 51/1/11 to 15,site-IV / Industrial Area, Shahibabad, Ghaziabad, Uttar Pradesh, India 4. Factory Land and Building. area 17500 sq.mtr. at A-30,site-IV/ Industrial Area, Shahibabad, Ghaziabad, Uttar Pradesh, India including machinery and all other assets being established 5. Godown situated at Plot No.854-G in Kalamboli Warehousing Complex, Mumbai, Maharashtra, India 6. Factory Land and Building. area 3024.36 sq.mtr. at 51/1/16 to 21,site-IV / Industrial Area, Shahibabad, Ghaziabad, Uttar Pradesh, India

FIXED ASSETS

• Land and Ware House
• Plant and Machinery
• Pollution Control Equipments
• Building
• Electric Installation
• Rolls
• Office Equipment
• Truck
• Furniture and Fixture
• Tools
• Scooter
• Car
• Computer
• Cycle
• Office complex (DLF)

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. 58.74
UK Pound	1	Rs. 91.99
Euro	1	Rs. 78.70

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	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		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.