MIRA INFORM REPORT

Report Date :

11.03.2013

IDENTIFICATION DETAILS

Name :	SOUTHERN ISPAT AND ENERGY LIMITED
Registered Office :	19/629(1) "Sreyas"Near Yakkara School Bus Stop, West Yakkara,  Palakkad -  678001, Kerala
Country :	India
Financials (as on) :	30.06.2012
Date of Incorporation :	27.06.1995
Com. Reg. No.:	09-009171
Capital Investment / Paid-up Capital :	Rs.1321.491 Millions
CIN No.: [Company Identification No.]	L45309KL1995PLC009171
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Ms Ingots or Trading of Steel Products
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 7500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management has failed to file its financials with the government department since 2009. There appears some dip in the revenue earned from operation and drastic dip in the profitability during 2012. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. 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 – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

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 :	19/629(1) "Sreyas"Near Yakkara School Bus Stop, West Yakkara,  Palakkad -  678001, Kerala, India
Tel. No.:	91-491-2531698 / 2523461
Fax No.:	91-491-2520035
E-Mail :	sil12@sify.com
Website :	http://www.southernispatltd.com
Corporate Office :	17, 2nd Floor, Millennium Plaza Banstal Road, Raipur (C.G) 492001, India
Branch Office:	407 - 412, Span Center 4th Floor, South Avenue Santacruz (W) Mumbai 400054, Maharashtra, India
Tel. No.:	91-22-61434567
E-Mail :	sielmum@gmail.com
Factory :	Kariankode P.O., Kottayi Palakkad - – 678 572, Kerala, India
Branch Office :	118, Atlanta Estate, Western Express Highway, Goregoan (E), Mumbai 63, Maharashtra, India

DIRECTORS

As on: 30.06.2012

Name :	Shri Vivek Agarwal
Designation :	Chairman and Managing Director
Name :	Shri Manish Kumar Mishra
Designation :	Director
Name :	Shri Umesh Kumar Sahu
Designation :	Director
Name :	Shri Thiagaraja Iyer Venkatramani
Designation :	Independent Director
Name :	Shri V. Manikandan
Designation :	Independent Director
Name :	Shri T. N. Sivakumar
Designation :	Independent Director

SHAREHOLDING PATTERN

As on: 31.12.2012

Category of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1786281	4.31
Bodies Corporate	101475	0.24
Any Others (Specify)	124400	0.30
Directors/Promoters & their Relatives & Friends	124400	0.30
Sub Total	2012156	4.85
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2012156	4.85
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	5380674	12.98
Any Others (Specify)	0	0.00
Sub Total	5380674	12.98
(2) Non-Institutions
Bodies Corporate	7358045	17.74
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	13362868	32.22
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	11489771	27.71
Any Others (Specify)	1865586	4.50
Non Resident Indians	1111713	2.68
Clearing Members	753873	1.82
Sub Total	34076270	82.17
Total Public shareholding (B)	39456944	95.15
Total (A)+(B)	41469100	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	90679980	0.00
Sub Total	90679980	0.00
Total (A)+(B)+(C)	132149080	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ms Ingots or Trading of Steel Products

PRODUCTION STATUS As on (30.06.2012)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
CTD Bars, Angle	TPA	24000	--	--
Shots & Grits	TPA	4000	4000	--
M.S. Ingots	TPA	24000	16000	4735.580

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Palakkad

Facilities :

(Rs. In Millions)

Secured Loan	As on 30.06.2012	As on 30.06.2011
Short Term Borrowing
Cash Credit Limit From SBI (Secured by Hypothecation of Company’s Raw Material, Finished goods, Stock in Process, Stores, Spares and Book Debt and Equitable Mortgage on the fixed assets of the company. Interest rate on such Secured Demand Loan from Banks is linked with the base rate of respective banks. Overdue amount as on Balance Sheet date is Rs.2.290 Millions which has been shown under other current Liability.)	30.000	29.074
Total	30.000	29.074

Banking Relations :	--
Auditors :
Name :	M/s Sunil Johri and Associates Chartered Accountants
Address :	Raipur, Chattisgarh, India
Subsidiaries :	· SIEL · FZE
Relative of key management personnel where transaction have been taken place during the year :	· Kerala Sponge Iron Ltd. · Sree Enterprises · K. K. Agarwalla

CAPITAL STRUCTURE

As on: 30.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
160000000	Equity Shares	Rs.10/- each	Rs.1600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
132149080	Equity Shares	Rs.10/- each	Rs.1321.491 Millions

The Company has issued one class of shares referred to as equity shares having a par value of Rs. 10/- Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of Company, the holder of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Company is yet to file various e-forms as required under Companies Act, 1956

Reconciliation of the number of shares outstanding

Particulars	As at 30.06.2012 (In Nos.)	As at 30.06.2012 (In Millions)
Number of shares at the beginning Add: Shares issued on exercise of employee stock options	132,149,080	1321.491
Number of shares at the end of the year	132,149,080	1321.491
Details of Shareholder holding more than 5 % shares No. of Shareholder	No. of Shares held	% of Holding
NIL

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2012	30.06.2011	30.06.2010
SHAREHOLDERS FUNDS
1] Share Capital		1321.491	1321.491	216.407
2] Share Application Money		0.000	69.000	0.000
3] Reserves & Surplus		572.597	411.860	117.077
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1894.088	1802.351	333.483
LOAN FUNDS
1] Secured Loans		30.000	29.074	51.252
2] Unsecured Loans		0.000	0.000	11.490
TOTAL BORROWING		30.000	29.074	62.742
DEFERRED TAX LIABILITIES		9.020	11.305	17.907
TOTAL		1933.108	1842.730	414.133
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		77.627	96.461	119.620
Capital work-in-progress		7.668	6.700	0.000
INVESTMENT		7.651	7.651	5.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	25.580	8.965	11.963
	Sundry Debtors	987.239	1434.698	346.435
	Cash & Bank Balances	772.466	899.587	16.330
	Other Current Assets	5.009	7.785	23.255
	Loans & Advances	838.225	449.760	1.787
Total Current Assets		2628.519	2800.795	399.770
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	812.153	1045.594	76.618
	Other Current Liabilities	16.654	73.845
	Provisions	0.000	0.000	34.439
Total Current Liabilities		828.807	1119.439	111.057
Net Current Assets		1799.712	1681.355	288.713
MISCELLANEOUS EXPENSES		40.450	50.562	0.000
TOTAL		1933.108	1842.730	414.133

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.06.2012	30.06.2011	30.06.2010
	SALES
		Income	3270.052	4523.910	3287.274
		Other Income	179.714	(5.459)	1.442
		TOTAL (A)	3449.766	4518.451	3288.716
Less	EXPENSES
		Cost of Material Consumed	3250.248	4279.870	3159.710
		Changes in Inventory of FG, WIP and Stock In trade	(4.876)	6.888
		Employee Benefits	2.720	2.533
		Other Expenses	174.874	58.744
		Exceptional Items Expenses	0.000	0.340
		TOTAL (B)	3422.966	4348.375	3159.710
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.800	170.076	129.006
Less	FINANCIAL EXPENSES (D)		3.863	10.431	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.937	159.645	129.006
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.272	24.054	11.919
	PROFIT BEFORE TAX (E-F) (G)		3.665	135.591	117.087
Less	TAX (H)		(16.250)	23.087	34.790
	PROFIT AFTER TAX (G-H) (I)		5.290	112.504	82.297
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		187.344	95.657	23.988
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	20.816	10.628
	BALANCE CARRIED TO THE B/S		NA	187.344	95.657
	Earnings Per Share (Rs.)		0.04	2.51	7.46

QUARTERLY RESULTS

PARTICULARS	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter
Net Sales	560.900	803.900
Total Expenditure	553.300	796.200
PBIDT (Excl OI)	07.600	07.800
Other Income	0.000	0.000
Operating Profit	07.600	07.800
Interest	01.500	01.600
Exceptional Items	0.000	0.000
PBDT	06.100	06.200
Depreciation	03.900	03.700
Profit Before Tax	02.200	02.500
Tax	00.400	0.5000
Provisions and contingencies	0.000	0.000
Profit After Tax	1.700	2.000
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	1.700	2.000

KEY RATIOS

PARTICULARS		30.06.2012	30.06.2011	30.06.2010
PAT / Total Income	(%)	0.15	2.49	2.50
Net Profit Margin (PBT/Sales)	(%)	0.11	3.10	3.56
Return on Total Assets (PBT/Total Assets}	(%)	0.14	4.68	22.54
Return on Investment (ROI) (PBT/Networth)		0.00	0.08	0.35
Debt Equity Ratio (Total Debt/Networth)		0.02	0.02	0.02
Current Ratio (Current Asset/Current Liability)		3.17	2.50	3.60

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	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	Yes
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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

REVIEW OF OPERATIONS:

During the year the Company’s financial performance has been adversely affected due to the non availability of raw material, increasing raw material costs, high bank interest rates and volatile foreign exchange. The company took various initiatives to improve its profitability by diversification which helped the company to post a reasonable performance for the year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEW:

The financial year 2011-12 has been one of the most challenging years for the Company. The combined effect of European debt crisis and global economic slowdown along with the domestic challenges of non availability and high cost of raw material has impacted the Iron and Steel industry and the performance of the Company. SIEL saw through this challenging period has achieved healthy growth in sales and profitability and is poised to emerge as a stronger Company to deliver enhanced shareholder value over the coming years. During the financial year 2011-12, The Company registered a 24% growth in revenues to Rs.10011.630 million, 2.5% growth in EBIDTA to Rs.434.180 million and 13% rise in PAT to Rs. 412.510 million.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

With recent global developments contributing to a significant rebalancing of portfolios as a result of rapidly changing risk perceptions and appetites, the Indian macroeconomic environment has looked turbulent during the past year. After a promising start to the decade, with achievements like maintaining GDP growth rate around 8 percent, bringing down fiscal deficit to 4.8 percent of GDP as well as containing current account deficit to 2.6%, the fiscal year 2011- 12 has been challenging for the Indian Economy. The year started on a note of optimism through impressive growth in exports and high levels of foreign exchange inflows, only to moderate as the year progressed through continued monetary tightening in response to the untamed inflationary pressures. Gradually, high levels of inflation gave way to a slow-down in the growth. Additionally, as fiscal conditions worsened over the year, export numbers were revised in light of data discrepancies leading to a widening of trade deficit. In light of a perceivably weak macroeconomic environment, a well-planned economic revival policy from the Government’s part is required to get back the Indian Economy on the path to stable and prosperous growth.

GLOBAL STEEL INDUSTRY OVERVIEW:

Performance of major advanced economies has been a point of concern as the economic outlook of the Euro Area continues to be grim in the shadow of a protracted sovereign debt crisis. Japan is still trying to cope up with the economic impact of natural calamities which is having an impact on its export partners. Despite some modest signs of improvement in the US, the European debt problem has unquestionably remained as a dominant global factor and a source of volatility in asset and currency markets all over the world. By contrast, emerging market economies have generally shown reasonable robustness – mainly on account of their domestic drivers and increasing linkages with each other. Nevertheless a slowdown in advanced economies is a point of concern as

it impacts the investment and exchange rate channel of the domestic economy. The world steel industry is a key driver of the world’s economy.

INDIAN STEEL INDUSTRY AND ITS PROSPECTS:

The global Steel industry has witnessed reasonable demand growth and Steel making capacities have gradually shifted to emerging markets such as China and India. However, the high cost of raw material and increased volatility in prices has put pressure on margins. India is poised to be a dominant player in the Global Steel industry with a strong growth in its economy. Demand for steel products is being driven primarily by infrastructure and consumption led sectors including construction, automobile, white goods and oil and gas. However, the Steel industry in India has suffered due to the non availability and high prices of Iron Ore, high interest rates and foreign exchange volatility. Steel is at the core of a green economy, in which economic growth and environmental responsibility work hand in hand. The steel industry believes that sustainable development must meet the needs of the present without compromising the ability of future generations to meet their own needs. Within this, a green economy delivers prosperity for all nations, wealthy and poor alike, while preserving and enhancing the planet’s resources.

Steel’s two key components are iron (one of Earth’s most abundant elements) and recycled steel. Once steel is produced it becomes a permanent resource because it is 100% recyclable and has an infinite life cycle. Infinite recyclability without loss of properties makes steel unique and valuable. For example, trade in ferrous scrap has been steadily increasing over the years.

In 2011, world average steel use per capita was 215 kg, it has steadily increased over time. Steel touches every aspect of their lives. No other material has the same unique combination of strength, formability and versatility. Steel is central to transport, housing, energy, agriculture, water and infrastructure.

COMPANY OVERVIEW:

The Company is focused on its vision to emerge as a low cost producer of value added Steel products with captive mineral resources and captive power. The Company is also focused on mining its own iron ore in order to improve margins and also to setup a Beneficiation Plant to exploit the resources.

OUTLOOK:

With continued focus of the government on the infrastructure development and Power sector, the consumption of steel is expected to increase, which is expected to translate into demand growth for sponge iron and finished steel in form of rods, bars and wires. Domestic demand is also expected to remain robust because of sustained growth of major steel consuming sector such as construction, infrastructure and capital goods, barring temporary decline in the growth due to collapse of global financial markets.

FIXED ASSETS:

· Land and Site Development

· Computers and Printers

· Drum Container

· Vehicles

· 6MT FURNANCE

· Electrical Installations

· Plant and Machinery

· Pollution Control Equipments

· EPBAX

· Furniture and Fixtures

· Xerox Machine

· Miscellaneous Fixed Assets

· Office Equipment

· Air Conditioner

· Tools and Tackles

· Building

AS PER WEBSITE DETAILS:

Southern Ispat and Energy Limited was incorporated as Southern Ispat Limited onJune 27, 1995 with the Registrar of Companies , Kerala vide Registration Number . 09-09171 and obtained Certificate of Commencement of business on August 30, 1995 and started commercial production. The name of the company was subsequently changed toSouthern Ispat and Energy Limited on September 18, 2008 with the Registrar Of Companies, Kerala vide registration number. L45309KL1995PLC009171. The Registered Office of the company is situated at 19/629 (1) ,”Shreyas”, West Yakkara, Palakkad, Kerala- 678001.

SIEL owns about 4.02 acres of land at Village Kottayi, District Pallakkad in the State of Kerala where the Company’s factory is located. This factory is presently having a manufacturing capacity of 21600 tonnes per annum (TPA) of Ingots.

The Company came out with a Public issue on February 1996, which was oversubscribed.  The shares of the Company are listed with Bombay Stock Exchange Limited, Cochin Stock Exchange Limited, Madras Stock Exchange Limited and Ahmedabad Stock Exchange Limited. It is also listed in National Stock Exchange and Luxembourg Stock Exchange.

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.54.40
UK Pound	1	Rs.81.57
Euro	1	Rs.71.24

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.