MIRA INFORM REPORT

Report Date :

19.03.2013

IDENTIFICATION DETAILS

Name :	MET TRADE (INDIA) LIMITED
Registered Office :	138-139, Main Road, Near Bharat Petrol Pump, Ghazipur, New Delhi – 110 096
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.02.1997
Com. Reg. No.:	55-084906
Capital Investment / Paid-up Capital :	Rs.155.370 millions
CIN No.: [Company Identification No.]	U27107DL1997PLC084906
TAN No.: [Tax Deduction & Collection Account No.]	DELM04703G
PAN No.: [Permanent Account No.]	AAACM8484F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Lead, Tin and its Alloys.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 22500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track record. Latest financial i.e. 2011-2012 are not available however from the previous year record it seems that financial position of the company is good. Trade relation are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered normal for business dealings 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

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/ Corporate Office/ Marketing Office :	138-139, Main Road, Near Bharat Petrol Pump, Ghazipur, New Delhi – 110 096, India
Tel. No.:	91-11-47109124/ 47109101-199/ 22248890-96
Fax No.:	91-11-22248898/ 47109193
E-Mail :	info@mtil.in info@guptapigments.com pratibha.sharma@mtil.in
Website :	www.mettradeindia.com
Factory 1 :	152, SICOP, Industrial Area, Kathua, Jammu – 184 104, Jammu and Kashmir, India
Tel. No.:	91-1922-233602
Fax No.:	91-1922-233602
Factory 2 :	Village Akbarpur Bheel, Main G.T. Road, Dadri, Gautam Budh Nagar, Uttar Pradesh, India
Tel. No.:	91-120-2662207 / 2051094
Fax No.:	91-120-2662207
Factory 3 :	Survey No.590, 591, 593, Village Bhimasar, Taluka Anjar, Gandhidham, District-Kutch, Gujarat, India
Factory 4 :	Village Mohtli, Tehsil Indora, Damtal, District Kangra – 176 404, Himachal Pradesh, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Raman Gupta
Designation :	Director
Address :	F-73, Preet Vihar, Delhi – 110 092, India
Date of Birth/Age :	29.12.1959
Qualification :	B.Com(Graduate)
Date of Appointment :	04.02.1997
DIN No.:	00106876
Name :	Mr. Ankur Singh
Designation :	Whole Time Director
Address :	A -603, Mod Apartment, Vasundhra Enclave, Delhi - 110 096, India
Date of Birth/Age :	12.11.1971
Qualification :	B.Tech (Graduate)
Date of Appointment :	17.07.2009
DIN No.:	02712564
Name :	Mr. Subhash Chand Tandon
Designation :	Director
Address :	62, Arya Nagar, Sitapur – 261 001, Uttar Pradesh, India
Date of Birth/Age :	25.01.1946
Qualification :	B.Sc (Graduate)
Date of Appointment :	28.09.2010
DIN No.:	03008428

KEY EXECUTIVES

Name :	Ms. Pratibha Sharma
Designation :	Secretary
Address :	90, Shiv Mandir Marg, West Babarpur, Shahadra, Delhi – 110 032, India
Date of Birth/Age :	07.04.1982
Date of Appointment :	23.11.2009
PAN No.:	BNGPS1621B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Raman Gupta	94668150
Raman Gupta (HUF)	6000000
Pasa Investment and Leasing (Private) Limited	2700000
Raman Gupta – Trustee of Mahajan Family Welfare Trust	60000
Raman Gupta – Trustee of Amar Devi Family Welfare Trust	5025000
Met Trade (Global) Limited	241299000
Gupta Pigments (Private) Limited	1558790
Shreya Gupta	409500
Total	351720440

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	69.82
Directors or relatives of Directors	27.03
Other top fifty shareholders	3.15
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Lead, Tin and its Alloys.

Products :

ITC Code	Product Description
78011000 and 78019930	Lead and Lead Alloys
80012000 and 80011090	Tin and Tin Alloys
3391	Lead and Lead Alloys / Tin and Tin Alloys
3890	Silver Bullion

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Lead Products	Qty in Mts	N.A.	1,20,000	34,851
Tin Products	Qty in Mts	N.A.	10,000	454
Aluminium Products	Qty in Mts	N.A.	1,93,000	21,734
Bi-Metals	Qty in Mts	N.A.	N.A.	1.260

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Indusind Bank Limited, Dr. Gopal das building, 28, Barakhamba Road, New Delhi - 110001, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	1409.427	1579.287
Rupee term loans others secured	5172.393	4334.431
Loans taken for fixed assets secured	38.342	0.299
Total	6620.162	5914.017

Banking Relations :	--
Auditors :
Name :	Daver Sikri and Company Chartered Accountants
Address :	4222/1, Luxmi Kunj, Ansari Road, Darya Ganj, New Delhi – 110 002, India
Telefax No.:	91-11-41563004
Income-tax PAN of auditor or auditor's firm :	AATPS9582J
Holding Company :	Met Trade (Global) Limited
Subsidiary Company :	Shrey Industries Limited
Associates :	· Ind-Metchem (Private) Limited · Gupta Pigments Private Limited · Nivedan Fin-Invest lease Limited · Pa4sa Investment and Leasing Private Limited · Amardevi Family Welfare Trust
Overseas - Joint Ventures / Subsidiaries :	· Met Trade Overseas SARL · Mediterian Metal and Alloys FZC · Afromet S.P.R.L · Met Trade Bhutan Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
365000000	Equity Shares	Re.1/- each	Rs.365.000 millions

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount
351720440	Equity Shares	Re.1/- each	Rs.351.720 millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
155370440	Equity Shares	Re.1/- each	Rs.155.370 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		155.370	120.720	117.250
2] Share Application Money		0.000	65.349	80.398
3] Reserves & Surplus		5470.999	2681.446	2284.033
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5626.369	2867.515	2481.681
LOAN FUNDS
1] Secured Loans		6620.162	5914.017	3700.437
2] Unsecured Loans		0.000	0.000	3.580
TOTAL BORROWING		6620.162	5914.017	3704.017
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		12246.531	8781.532	6185.698
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5133.596	1746.828	437.659
Capital work-in-progress		323.121	1058.793	762.791
INVESTMENT		385.667	341.095	360.058
DEFERRED TAX ASSETS		19.138	0.658	14.815
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4212.540	1770.636	2145.635
	Sundry Debtors	1749.438	2876.839	1810.839
	Cash & Bank Balances	48.196	63.625	37.439
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1777.819	1529.365	952.957
Total Current Assets		7787.993	6240.465	4946.870
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	500.706	333.891	137.549
	Other Current Liabilities	671.963	95.600	115.570
	Provisions	230.315	176.816	83.376
Total Current Liabilities		1402.984	606.307	336.495
Net Current Assets		6385.009	5634.158	4610.375
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		12246.531	8781.532	6185.698

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	9769.380	8550.874	7272.693
		Other Income	317.984	53.800	129.230
		TOTAL (A)	10087.364	8604.674	7401.923
Less	EXPENSES
		Consumption materials changes inventories	6781.328	6157.821	6583.876
		Manufacturing service costs	660.443	543.406
		Administrative selling other expenses	334.860	577.363
		TOTAL (B)	7776.631	7278.590	6583.876
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2310.733	1326.084	818.047
Less	FINANCIAL EXPENSES (D)		493.943	468.427	238.534
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1816.790	857.657	579.513
Less/ Add	DEPRECIATION/ AMORTISATION (F)		387.760	127.483	51.654
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1429.030	730.174	527.859
Less	TAX (H)		143.856	841.194	102.511
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		1285.174	648.980	425.348
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2527.222	2195.739	1786.881
	BALANCE CARRIED TO THE B/S		3234..399	2527.222	2212.229
	EARNINGS IN FOREIGN CURRENCY
		Export at FOB value	2792.100	2607.700	NA
	TOTAL EARNINGS		2792.100	2607.700	NA
	IMPORTS
		Raw Materials	4568.900	2789.100	NA
	TOTAL IMPORTS		4568.900	2789.100	NA
	Earnings / (Loss) Per Share (Rs.)		2.01	2.75	3.62

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	12.74	7.54	5.75
Net Profit Margin (PBT/Sales)	(%)	15.09	8.54	7.26
Return on Total Assets (PBT/Total Assets}	(%)	11.06	9.14	9.80
Return on Investment (ROI) (PBT/Networth)		0.25	0.25	0.21
Debt Equity Ratio (Total Debt/Networth)		1.18	2.06	1.49
Current Ratio (Current Asset/Current Liability)		5.55	10.29	14.70

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

FINANCIAL RESULTS

The Company in this financial year achieved a major milestone by achieving gross income beyond Rs. 10000.000 millions. The Company has earned profit before tax of Rs. 800.000 million during the current year as compared to Rs. 426 million during the previous year an increase of 87.79% over the previous year. The Company achieved a Gross Income of Rs.10,087 million as compared to Rs. 8,604 million during previous year an increase of 17.23% over the previous year. This was primarily achieved due to addition of new customers in the domestic and export market.

PERFORMANCE REVIEW

Lead, Lead alloy and Lead oxides are considered to be backbone of modern Lead Acid Storage batteries used in automotive, inverters, railways and other industries. With growing demand of batteries for different applications in most vigorous conditions, demand for specialized and better customized quality of Lead, Lead Alloy and Lead Oxides are growing. The Company is meeting the demand by increasing its production capacities and by bringing new ventures. The Company has been market leader in its product range and due to continuous improvements the Battery manufacturers have invariably opted to use their Companys lead and lead alloys as their preferred choice.

Additionally, the Company has emerged as a leading manufacturer of Aluminum Alloy Ingots/ Rolling products through secondary route conforming to various Indian and International Standards. State of art facilities are located at Gandhidham (Gujarat) and Damtal (Himachal Pradesh). The Company has one of the best equipped laboratories having Optical Emission Electronic Spark Spectrometer, Micro Study Image Analyzer and Inductive Coupled Plasma and XRF etc. for Quality Assurance. The Company believes in supplying high quality products at most economical rates and take necessary quality measures to ensure material as per customer's requirement. The Company is supplying Aluminium Ingots to many prestigious customers in India as well as exporting also.

INDUSTRY OUTLOOK

LEAD

The Global lead industry is growing at 5-6% whereas the Indian lead industry is growing at 11-12% raising leads growing use in batteries and UPS applications, arising out of growing investments in the countrys infrastructure and automobile sectors.

Their industry optimism is derived from some evident realities even as Lead demand increases in India as enlisted below;

The country is short in Lead ore reserves or investments to feed its growing appetite. This will make it imperative for the country to import larger quantities of the metal or commission secondary Lead sources.

There is already a Lead shortage in India, which with passage of time will increase. To feed a national demand for 0.6 million tonnes per annum, India imported nearly 200,000 tonnes in 2010-11.

The share of secondary Lead manufacture will gradually increase, as its production is less capital-intensive, complex, energy-intensive and peopleintensive than primary Lead manufacture from an estimated 54% of total Lead consumption to 90% over the decade.

The organised sector share within India is expected to increase from 27% today to an estimated 45% in a few years, on account of stronger economies of scale, larger investment inflow, graduation to cleaner technologies and a growing plugging of fiscal loopholes that effectively raise production costs for unorganized manufacturers.

A combination of the automobile and industrial growth will catalyse Lead demand, resulting in an annual industry

No other medium stores energy better than Lead, so the likelihood of this metal losing its industry relevance appears remote. Besides, the metal has strong radiation shielding properties, making it safe for use.

Unlike developed countries such as USA and Japan, India lacks an organized network for collection and processing of ULABs. Most unorganized battery recyclers do not use sophisticated technology. Batteries often find their way to backyard smelters in the unorganized sector who use inefficient and environmentally hazardous processes to smelt lead.

ALUMINIUM

Aluminium is the second most abundant element in the earths crust. In nature, however, it only exists in very stable combinations with other materials (particularly as silicates and oxides). The fastest growing industrial metal in the world.

The Global Aluminium Industry had total revenue of USD 50.2 bn in 2009, representing a compound annual growth rate (CAGR) of 2.1% for the period spanning 2005-2009. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 19% for the five year period 2009-2014, which is expected to drive the industry to a value of USD 119.8 Bn by the end of 2014.

India has the credit of being the fifth largest producer of aluminium in the world. The country has a capacity to produce more than 2.7 million tones of aluminium per year, accounting making up about 5% of the total aluminium production on the globe. India enjoys the eighth position among the leading producers of primary aluminium in the world. The country has been witnessing a phenomenal growth in aluminium production over the past ten years. There was stagnation in the consumption of aluminium between the 1990s and 2002 when the consumption of the metal was estimated at 500-600 KT. However, since 2002, there has been a sharp rise in the consumption of aluminium in the nation. Chiefly, the industries that lead in the consumption of aluminium are power, infrastructure, and transportation and related firms.

The country has been witnessing a growing demand for the metal in the domestic market accounting for an enviable growth in the sector.

Recycling of Aluminium

To conserve the natural resources worldwide more and more thrust has been put to recycle the waste. The recycling of aluminium generally produces significant cost savings over the production of new aluminium even when the cost of collection, separation and recycling are taken into account. Over the long term, even larger national savings are made when the reduction in the capital costs associated with landfills , mines and international shipping of raw aluminium are considered.

Recycling aluminium uses about 5% of the energy required to create aluminium from bauxite, because the latter requires a lot of electrical energy to electrolyse aluminium oxide into aluminium.

The vast amount of aluminium used means that even small percentage losses are large expenses, so the flow of material is well monitored and accounted for financial reasons. Efficient production and recycling benefits the environment as well due to less pollution.

TECHNOLOGICAL ADVANCEMENTS

The Company is continuously looking at the modernization and advanced technological systems which can be combined with its existing set up to enhance the productivity and efficiency of the processes. The Company is also putting a major thrust on the new equipments like Battery Breaking and Separation Unit, Tilting Rotary Furnaces to be installed with latest pollution control equipment and with sound acoustic and acid fume extraction system, with complete automation through PLC control and SCADA System.

In Dadri unit, Oxy Burner for fuel has been installed which makes the combustion process efficient and complete resulting into efficient productivity and energy saving. The Company is planning to set up a Rotary kiln with dryer to increase the operating efficiency and output of the other furnaces. It has also carried out a lot of technical advancements through a dedicated team of French design engineers due to which remarkable improvement in the productivity and cost reduction have been achieved.

In Gandhidham, piped gas has been received from Gujarat State Petronet Limited (GSPL) which is expected to give very significant savings in fuel costs which is their major cost component. The Company is also in the advanced stage of installing new balancing equipments like Automatic Shredder and Metal Sorting and Segregation lines for better and fast handling and processing of the scrap. This will also result in higher quality output and significant reduction in the dependence on manual processes and labour costs. In Damtal, Tension leveller has been installed to get the desired metal flatness and smoothness for the rolled aluminium sheets produced.

OPERATIONAL EXCELLENCE

The Company strives to ensure the customers loyalty to the Company, a continuing thrust on quality is essential. In keeping with this motto, the Company has ISO 9001:2000 certification from International Certification Registry Limited. The Company has exhaustive quality management service system at its plants. As part of the Companys core values of responsible corporate citizenship, the Company is committed to preserve the environment and prevent pollution.

The state of art furnace technology to achieve maximum yield and minimum fuel consumption for different varieties of scrap has been installed and put into operations at Gandhidham. The variety of product which can be catered through their Rolled product section at Himachal Pradesh is very versatile.

During the year, more than 75 new customers have been added both in domestic and export segments. On the export side the Company has developed new customers in countries like Korea and Japan. It has sent its various new products for their approvals and the same are expected very soon. It will add significant volumes to total business turnover in year to come.

The Company has set up two warehouses one in Manesar in Haryana and one in Pune in Maharashtra to cater to the North and Western market customers. It has also added to its existing fleet 20 new trucks and including two advanced container tipping trucks for scrap tolling from port to bring more efficiency in the logistic operations.

FIXED ASSETS

· Free hold land

· Lease hold land

· Building

· Computer equipments

· 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 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] 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.54.29
UK Pound	1	Rs.81.94
Euro	1	Rs.70.02

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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		54

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.