MIRA INFORM REPORT

Report Date :

22.06.2013

IDENTIFICATION DETAILS

Name :	R. L. STEELS AND ENERGY LIMITED (w.e.f. 06.08.1985)
Formerly Known As :	R. L. STEELS LIMITED
Registered Office :	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.08.1985
Com. Reg. No.:	55-021690
Capital Investment / Paid-up Capital :	Rs. 115.534 Millions
CIN No.: [Company Identification No.]	U27202DL1985PLC021690
TAN No.: [Tax Deduction & Collection Account No.]	AAACR5809B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Carbon, Alloy and Special Steel Products in Rounds, Squares, Flats and Special Profiles
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 1543000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears huge loss during 2012 recorded by the company. The external borrowing seems to be huge. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings with great 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

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 :	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	corporate@rlsteel.com delhioffice@rlsteels.com
Website :	http://www.rlsteels.com http://aurangabad.indiabizclub.com
Corporate Office:	Chitegaon, Paithan Road Gut No. 78/81, Pangra Shivar, Aurangabad – 431107, Maharashtra, India
Tel. No.:	91-2431-251163/251453/251659/251667
Fax No.:	91-2431-251879
E-Mail :	admin@rlsteels.com
Branches :	Located at :
Address :	Mumbai 304, Abhay Steel House, 3^rd Floor, Baroda Street, Carnec Bunder, Mumbai – 400009, India
Tel. No.:	91-22-23714886/23481082/23481083/23481084
Fax No.:	91-22-23485736/23483887
E-Mail :	mumbaioffice@rlsteels.com
Address :	Chennai No. 15, Andal Avenue, Gandhi Road, Vella Cherry, Chennai – 600042, Tamilnadu, India
E-Mail :	chennaioffice@rlsteels.com
Address :	Pune Plot No : A-11, Flat No: F/6, F/10, ADC-44, Gayatri Elegance, Sec-26, Near Sambhaji Chowk, Nigdi Pradhikaran – Pune 411044, Maharashtra, India
E-Mail :	marketing@rlsteels.com
Overseas Office:	M/S Pan Gulf International General Trading L.L.C P.O. Box No. 7067, Sharjah, United Arab Emirates (U.A.E)
Tel No.:	+00 9716 5346454
Fax No.:	+00 9716 5346414
E-Mail :	pgi@emirates.net.ae anshul_steel@yahoo.com

DIRECTORS

As on 31.03.2012

Name :

Mr. Raghunanadanlal Gupta

Designation :

Director

Address :

58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

25.03.1996

DIN No.:

00061861

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	L45209MH1985PLC035147	Delma Infrastructure Limited	Director	12/05/1986	12/05/1986	03/12/2012	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Director	21/06/1989	21/06/1989	-	Active	NO
3	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	31/03/1992	31/03/1992	-	Active	NO
4	U27100DL1988PTC212068	SANT EKNATH ROLLING MILLS PVT LTD	Director	01/03/1996	01/03/1996	-	Active	NO
5	U27202DL1985PLC021690	R. L. STEELS AND ENERGY LIMITED.	Director	25/03/1996	25/03/1996	-	Active	NO
6	U27100MH1988PTC045799	AKAR INDUSTRIES PRIVATE LIMITED	Director	03/10/2004	03/10/2004	14/05/2012	Active	NO
7	U74999MH1990PTC055391	AURANGABAD FORGING PRIVATE LIMITED	Director	03/10/2004	03/10/2004	14/05/2012	Active	NO
8	U65990MH1987PTC044787	SHATRUNJI INVESTMENT PVT LTD	Director	03/10/2004	03/10/2004	-	Active	NO
9	U27310MH1987PTC044788	AKAR ALLOYS PVT LTD	Director	03/10/2004	03/10/2004	-	Active	NO
10	U70100MH1988PTC045806	LAVANAYA FINVEST PRIVATE LIMITED	Director	03/10/2004	03/10/2004	-	Active	NO

Name :

Mr. Sunil Todi

Designation :

Director

Address :

Plot No – 40, Sector N -1, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

25.03.1996

DIN No.:

00061952

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	U27202DL1985PLC021690	R. L. STEELS AND ENERGY LIMITED.	Director	25/03/1996	25/03/1996	-	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Managing director	16/09/2010	15/09/2005	-	Active	NO
3	U28999WB2000PTC092308	REFORM TOOLS PRIVATE LIMITED	Director	11/03/2008	11/03/2008	13/10/2010	Active	NO
4	U34300PN1985PLC037909	TRINITY AUTO COMPONENTS LIMITED	Director	29/09/2010	09/08/2010	20/12/2010	Active	NO

Name :

Mr. Narendrakumar Gupta

Designation :

Director

Address :

58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

23.09.2008

DIN No.:

00062268

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	L45209MH1985PLC035147	DELMA INFRASTRUCTURE LIMITED	Director	12/05/1986	12/05/1986	03/12/2012	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Director	21/06/1989	21/06/1989	-	Active	NO
3	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	31/03/1992	31/03/1992	-	Active	NO
4	U27202DL1985PLC021690	R. L. STEELS AND ENERGY LIMITED.	Director	23/09/2008	15/01/2008	-	Active	NO
5	U13100MH2011PTC215716	AKAR MINERALS PRIVATE LIMITED	Director	05/04/2011	05/04/2011	26/08/2012	Active	NO

Name :

Mr. Nitin Gupta

Designation :

Director

Address :

58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

30.06.2004

DIN No.:

00062041

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	U27202DL1985PLC021690	R. L. STEELS AND ENERGY LIMITED.	Director	30/06/2004	30/06/2004	-	Active	NO
2	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	28/09/2008	01/09/2008	-	Active	NO

MAJOR SHAREHOLDERS

As on 27.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
Raghunandan Lal Gupta	2149120	18.6016
Usha Gupta	525640	4.5496
Akar Tools Limited, India	1496540	12.9532
Sushiladevi Gupta	1266000	10.9578
Kathiawad Invest Private Limited, India	1276680	11.0502
Raghunandan Lal Gupta HUF	1151540	9.9671
Gupta Concast Limited	305400	2.6434
Shatrunji Investment Private Limited, India	341600	2.9567
Sant Eknath Rolling Mills Private Limited, Limited	212000	1.8350
Pan Gulf General Trading Company LLC Dubai	173760	1.5040
Shanghai Gulf Geenral Trading Company LLC Dubai	522560	4.5230
Aurangabad Forging Private Limited, India	397000	3.4362
Lavanya Finvest Private Limited, India	312600	2.7057
Akar Alloys Private Limited, India	532900	4.6125
Niharika Gupta	302500	2.6183
Nitin Gupta	147600	1.2775
N.K. Gupta	30000	0.2595
Manjil Vinimay Private Limited	150000	1.2983
Siddheshwari Power Equipment Private Limited	160000	1.3849
Baisakhi Tracom Private Limited	100000	0.8655
Total	11553440	100.0000

As on

Names of Allottee	No. of Shares
Raghunandan Lal Gupta	670000
Nitin Gupta	750000
Gupta Concast Limited	567500
Total	1987500

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2012

Category	Percentage
Bodies corporate	45.74
Directors or relatives of Directors	48.23
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Carbon, Alloy and Special Steel Products in Rounds, Squares, Flats and Special Profiles

Products :

Product Description	Item Code
MS Billets	72071920
AS Billets	72249091
Non Alloy Steel Flat	72149990
Spring Steel Quality	72072020
Forging Quality	72071220

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Installed Capacity
SMS	MT	144000
RMD	MT	147000

GENERAL INFORMATION

Customers :

· L. G. Balkrishnan and Bros. Limited

· Ashok Leyland Limited

· Bharat Forge Limited

· Kalyani Forge Limited

· Jonas Woodhead Spring Limited

· India Leaf Spring Manufacturing Company Private Limited

· Lamina Suspension Products Limited

· Bharat Springs Limited

· Greaves Limited

· Trinity Enginners Private Limited

· Cromption Greaves

· MGM Forging Private Limited

· Varsha Forging Limited

No. of Employees :

Not Available

Bankers :

• Punjab National Bank, Plot No. 316, N-3, CIDCO, Jalna Road, Aurangabad – 431001, Maharashtra, India
• The Shamrao Vithal Co-operative Bank Limited

· Canara Bank

· IDBI Bank Limited

· The Karur Vysaya Bank Limited

· State Bank of India

Facilities :

SECURED LOAN :

Rs. In Millions

Particulars	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Rupee term loans from banks (Term Loans are secured against respective Building and Plant and Machinery. Also secured by floating / 2nd charge on other Assets)	577.230	626.889
Loans taken for vehicles (secured on respective vehicles)	5.348	5.980
Total	582.578	632.869

Particulars	As on 31.03.2012	As on 31.03.2011
SHORT TERM BORROWINGS
Loans repayable on demand from banks (Secured against Hypothecation of Stock in Trade, Stores and Sundry Debtors and also secured by 2nd charge on Block of assets ranking pari-pasu.)	1135.948	937.221
Total	1135.948	937.221

Banking Relations :	--
Auditors :
Name :	A K Bagadia and Company Chartered Accountants
Address :	37 Sopariwala House 293, Princes Street Mumbai – 400002, Maharashtra, India
PAN.:	SSBPB7126M
Associates :	Akar Tools Limited, India Sant Eknath Rolling Mills Private Limited Kathiawad Invest Private Limited, India Akar Alloys Private Limited Gupta Concast Limited, Waluj Lavanya Finvest Private Limited Shatrunj I Investment Private Limited Akar Minerals Private Limited Hariom Trades and Agencies Limited

CAPITAL STRUCTURE

As on 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11553440	Equity Shares	Rs. 10/- each	Rs. 115.534 Millions

After 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13540940	Equity Shares	Rs. 10/- each	Rs. 135.409 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	115.534	93.792
(b) Reserves & Surplus	270.190	415.169
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	52.350
(3) Non-current liabilities
(a) long-term borrowings	748.597	792.308
(b) Deferred tax liabilities (Net)	75.953	95.306
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	1135.948	937.221
(b) Trade payables	538.386	447.703
(c) Other current liabilities	80.635	(60.071)
(d) Short-term provisions	0.000	14.919
TOTAL	2965.243	2788.697
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	933.293	1034.525
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	300.494	136.009
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.303	0.304
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	54.000	60.000
(b) Inventories	658.305	579.094
(c) Trade receivables	771.470	757.010
(d) Cash and cash equivalents	80.922	80.833
(e) Short-term loans and advances	160.490	115.559
(f) Other current assets	5.966	25.363
TOTAL	2965.243	2788.697

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		93.792
2] Share Application Money		24.650
3] Reserves & Surplus		368.662
4] (Accumulated Losses)		0.000
NETWORTH		487.104
LOAN FUNDS
1] Secured Loans		1190.883
2] Unsecured Loans		160.257
TOTAL BORROWING		1351.140
DEFERRED TAX LIABILITIES		86.648
TOTAL		1924.892
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		991.673
Capital work-in-progress		9.683
INVESTMENT		60.304
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	485.952
	Sundry Debtors	539.401
	Cash & Bank Balances	99.146
	Other Current Assets	0.000
	Loans & Advances	109.114
Total Current Assets		1233.613
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	337.913
	Other Current Liabilities	0.000
	Provisions	32.468
Total Current Liabilities		370.381
Net Current Assets		863.232
MISCELLANEOUS EXPENSES		0.000
TOTAL		1924.892

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6312.682	5579.516	4272.862
		Other Income	7.620	5.017	58.519
		TOTAL (A)	6320.302	5584.533	4331.381
Less	EXPENSES
		Cost of materials consumed	4149.887	3610.023
		Purchases of stock-in-trade	3.248	22.924
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(25.266)	(169.069)
		Employee benefit expense	112.011	100.663
		Other expenses	1881.326	1597.787
		TOTAL (B)	6121.206	5162.328	3972.305
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		199.096	422.205	359.076
Less	FINANCIAL EXPENSES (D)		302.028	220.406	186.062
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(102.932)	201.799	173.014
Less/ Add	DEPRECIATION/ AMORTISATION (F)		149.563	133.339	110.351
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(252.495)	68.460	62.663
Less	TAX (H)		(20.549)	21.954	24.488
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(231.946)	46.506	38.175
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		228.063	196.557	182.160
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	15.000	15.000
		Dividend	0.000	0.000	7.503
		Tax on Dividend	0.000	0.000	1.275
	BALANCE CARRIED TO THE B/S		(38.830)	228.063	196.557
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	1552.669	1716.740	1178.221
	TOTAL EARNINGS		1552.669	1716.740	1178.221
	Earnings Per Share (Rs.)		(20.08)	4.96	4.07

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(3.67)	0.83	1.45
Net Profit Margin (PBT/Sales)	(%)	(4.00)	1.24	1.47
Return on Total Assets (PBT/Total Assets}	(%)	(9.48)	4.37	5.08
Return on Investment (ROI) (PBT/Networth)		(0.65)	0.12	0.13
Debt Equity Ratio (Total Debt /Networth)		4.89	3.08	2.77
Current Ratio (Current Asset/Current Liability)		0.99	1.21	3.33

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-------
22]	Litigations that the firm / promoter involved in	---------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--------
26]	Buyer visit details	--------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
LONG TERM BORROWINGS
Rupee term loan from others	72.500	19.500
Deferred sales tax loan	35.719	36.641
Loans and advances from others	57.800	103.298
Total	166.019	159.439

FINANCIAL RESULTS:

During the year the Company has achieved sales of Rs. 6803.558 Millions (Previous year Rs. 6079.959 Millions). The company has suffered loss of Rs. 252.495 Millions compared to the profit of Rs. 68.461 Millions in previous year. A steep rise in the cost of raw materials like iron ore, melting scrap and coal.

COMPANY OVERVIEW

Being a core sector, steel industry tracks the overall economic growth in the long term. Also, steel demand, being derived from other sectors like automobiles, consumer durables and infrastructure, its fortune is dependent on the growth of these user industries.

The government over the last couple of years has continued to lay emphasis on continuation of infrastructure activities in the country. Increased spending on infrastructure will be a key positive for the steel sector as the demand for steel will get a boost. The continuation of tax sops to the housing sector is another positive for steel demand.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27202DL1985PLC021690
Name of the company	R. L. STEELS AND ENERGY LIMITED.
Address of the registered office or of the principal place of business in India of the company	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002, India Email: corporate@rlsteels.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10091253
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Punjab National Bank, Plot No. 316, N-3, CIDCO, Jalna Road, Aurangabad – 431001, Maharashtra, India Email ID: bo0981@pnb.co.in
Nature of instrument creating charge	Supplemental joint deed of hypothecation dated 06.02.2013 in favour of Punjab National Bank Canara Bank IDBI Bank Limited The Karur Vyasya Bank Limited State Bank of India and master restructuring agreement dated 29.12.2012.
Date of instrument Creating the charge	29.12.2012
Amount secured by the charge	Rs. 2865.300 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As specified in the respective agreement. Terms of Repayment As specified in the respective agreement. Margin As specified in the respective agreement. Extent and Operation of the charge Till the repayment as specified in the agreement.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Pari Passu Charge, all the borrower's current assets, Stocks of raw materials, semi finished goods, finished goods, stores and spares, Book Debts, Receivables and all movable current assets. Second Pari Passu charge on all the movable fixed assets of the borrower in favor of the said banks, jointly and severally to each of them ranking pari passu without any preference over the others....
Particulars of the present modification	The Original Joint charge dated 08.02.2012 of Rs. 1874.500 Millions. Now this charge is further modified to Rs. 2865.300 Millions (WCL183 + TL103.53) vide Master Restructuring Agreement dated 29.12.2012 and Supplemental Deed of Hypothecation dated 06.02.2013. In favor of PNB Rs. 1241.100 Millions (WCL78.41+TL45.70), Canara Bank Rs. 425.000 Millions (WCL35.03+TL7.47), IDBI Bank Rs. 554.600 Millions (WCL31.80+TL 23.66), The KVB Limited Rs. 283.500 Millions (WCL22.90+TL5.45), SBI Rs. 361.100 Millions (WCL 14.86+TL 21.25).

FIXED ASSETS:

• Land Building
• Office Building
• Plant and Machinery
• Electrical
• Installation
• Furniture and Fixture
• Computer
• Office Equipment
• Gas Cylinder
• Lab Equipment
• Vehicle
• Kitchen Equipment
• Fire Fighting Equipment

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. 59.35
UK Pound	1	Rs. 92.11
Euro	1	Rs. 78.59

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.