MIRA INFORM REPORT

Report Date :

14.05.2013

IDENTIFICATION DETAILS

Name :	MITTAL CORP LIMITED (w.e.f. 16.12.2008)
Formerly Known As :	JEWELS SEAMLESS LIMITED (w.e.f. 16.09.2008) JEWEL SEAMLESS LIMITED (w.e.f. 28.08.1995) JEWEL STEELS LIMITED
Registered Office :	315, Jolly Bhawan No.1, 10, New Marine Line, Mumbai – 400 020, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.07.1985
Com. Reg. No.:	11-169768
Capital Investment / Paid-up Capital :	Rs.326.502 millions
CIN No.: [Company Identification No.]	U27106MH1985PLC169768
PAN No.: [Permanent Account No.]	AABCJ1303P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Stainless Steel Billets and Flats.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 4230000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB [Term Loan]
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	January 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Mahindra Jain
Designation :	Chief Finance Officer
Contact No.:	91-731-2437500
Name :	Mr. S. Gupta
Designation :	Assistant of Chief Finance Officer
Date :	10.05.2013

LOCATIONS

Registered Office :	315, Jolly Bhawan No.1, 10, New Marine Line, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91-22-22007526
Fax No.:	91-22-22072752
E-Mail :	mittal.corp@yahoo.com info@mittalcorp.net
Website :	http://www.mittalcorp.net
Corporate Office :	Maa Krepa, 16/1, New Palasia, Opposite Aishwarya Apatemtn, Near Curewell Hospital, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-2437500 / 2436063
Fax No.:	91-731-2430408
Factory 1 :	Plot No.159, Sector-III, Industrial Area, Pithampur, District Dhar, Madhya Pradesh, India
Factory 2 :	Plot No.164-C, Sector III, Industrial Area, Pithampur, District Dhar, Madhya Pradesh, India
Branch Office :	Located At: Ahmedabad Delhi Jodhpur

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Karan Mittal
Designation :	Managing Director
Address :	153/1, Y.N. Road, Indore – 452 003, Madhya Pradesh, India
Date of Birth/Age :	31.12.1978
Date of Appointment :	25.09.2002
DIN No.:	00328725
Name :	Mr. Dinesh Kumar Agrawal
Designation :	Whole Time Director
Address :	471, Sudama Nagar, Indore – 452 009, Madhya Pradesh, India
Date of Birth/Age :	12.10.1967
Date of Appointment :	08.02.1999
DIN No.:	00328874
Name :	Mr. Vinod Kumar
Designation :	Whole Time Director
Address :	101, Pushp Ratan Pride, 35/2, New Palsia, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	08.07.1952
Date of Appointment :	12.08.2009
DIN No.:	02728746
Name :	Mr. Chandra Prakash Swarnkar
Designation :	Director
Address :	Gurukripa, C-1, 2919A, Phase-1, Shushant Lok, Gurgaon – 122 001, Harayana, India
Date of Birth/Age :	01.05.1948
Date of Appointment :	12.08.2009
DIN No.:	00262730
Name :	Mr. Jaiprakash Narain Lal
Designation :	Director
Address :	26, Dilpasand Colony, Race course Road, Near Abhay Prashal, Indore-452003, Madhya Pradesh, India
Date of Birth/Age :	11.03.1948
Date of Appointment :	06.12.2011
DIN No.:	06397527
Name :	Mr. Jugal Kishore Tandon
Designation :	Director
Address :	B-201, Mon Repos, 45, HK Bhabhu Road, Lands End, Bandra (West), Mumbai-400050, Maharashtra, India
Date of Birth/Age :	16.12.1941
Date of Appointment :	03.09.2012
DIN No.:	01282681

KEY EXECUTIVES

Name :	Mr. S. Gupta
Designation :	Assistant of Chief Finance Officer
Name :	Mr. Mahindra Jain
Designation :	Chief Finance Officer
Name :	Toshiba Sugandhi
Designation :	Secretary
Address :	1, Ada Bazar, Near Rajwada, Indore-452001, Madhya Pradesh, India
Date of Birth/Age :	05.12.1986
Date of Appointment :	01.01.2012
Pan No.:	CKKPS4453H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Karan Mittal	599100
Maha Laxmi Exim Private Limited, India	4302000
Sphinx Investments Private Limited, India	3462090
Gee Tee Forms Private Limited, India	723000
Labh Ganga Marketing Private Limited, India	13732703
Parks Holding Private Limited, India	1356300
Parks Sales Private Limited, India	1436100
Parks Infoway Private Limited, India	1020600
Parks Webtech Limited, India	1014900
Pandit Holding Private Limited, India	6866700
KN Metals Private Limited, India	1419000
Future Stainless Steels Private Limited, India	870000
Mittal Enterprises Private Limited, India	2329800
Mahesh G. Jarani	1095720
Kamla Jarani	240000
Dinesh Agrawal	22500
Omprakash Purey	33900
TOTAL	40524413

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	95.08
Directors or relatives of directors	1.48
Other top fifty shareholders	3.44
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Stainless Steel
Billets and Flats.

Products :

Item Code No. (ITC Code)	7207.1920
Product Description	MS Billets
Item Code No. (ITC Code)	7218.9910
Product Description	SS Billets
Item Code No. (ITC Code)	7220.1190
Product Description	SS Flat
Item Code No. (ITC Code)	2804.4090
Product Description	Oxygen Gas
Item Code No. (ITC Code)	2804.3000
Product Description	Nitrogen Gas

PRODUCTION STATUS [AS ON 31.03.2012]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Steel Billets/Flats	MT	1,20,000	1,20,000	63,770

NOTES:

1) As certified by the management, this being technical matter.

2) Production includes 2458.365 MT towards goods recycled (incl. burning loss 374.805 MT).

3) The capacity shown is on triple shift basis.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

• ICICI Bank Limited, Landmark, Race Course Road, Vadodara – 390 007, Gujarat, India
• State Bank of Patiala, Mid Corporate Branch, Orbit Mall, A. B. Road, Indore – 452 010, Madhya Pradesh, India
• Oriental Bank of Commerce, 12/2, RNT Marg, Chetak Centre, Indore – 452 001, Madhya Pradesh, India
• Indian Bank, RNT Marg Branch, 4, RNT Marg, Indore-452001, Madhya Pradesh, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term loans from banks	936.154	346.195
Other loans and advances	6.369	7.019
Working capital loans from banks	740.850	613.269
TOTAL	1683.373	966.483

Banking Relations :	--
Auditors :
Name :	Mahendra Badjatya and Company Chartered Accountants
Address :	208, Morya Centre, 16, Race Course Road, Opposite Baskteball Complex, Indore – 452 003, Madhya Pradesh, India
PAN No:	ACFPB4495F
Related Parties :	Parks Webtech Limited Labhganga Markeing Private Limited Parks Infoway Private Limited Pandit Holding Private Limited Mittal Enterprises Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
60000000	Equity Shares	Rs.10/- each	Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40524413	Equity Shares	Rs.10/- each	Rs.405.244 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		352.196	326.502	326.502
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		705.403	372.902	261.990
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1057.599	699.404	588.492
LOAN FUNDS
1] Secured Loans		1683.373	966.483	713.199
2] Unsecured Loans		762.784	554.704	158.284
TOTAL BORROWING		2446.157	1521.187	871.483
DEFERRED TAX LIABILITIES		38.416	31.383	24.538
TOTAL		3542.172	2251.974	1484.513
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		976.012	684.548	615.980
Capital work-in-progress		864.025	240.848	27.248
INVESTMENT		0.160	0.160	0.160
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	889.002	739.101	631.831
	Sundry Debtors	994.802	856.952	622.581
	Cash & Bank Balances	231.505	96.919	44.050
	Other Current Assets	6.865	1.677	0.000
	Loans & Advances	187.374	119.270	132.803
Total Current Assets		2309.548	1813.919	1431.265
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.952	46.055	476.477
	Other Current Liabilities	502.110	398.332	72.565
	Provisions	70.511	43.114	53.738
Total Current Liabilities		607.573	487.501	602.780
Net Current Assets		1701.975	1326.418	828.485
MISCELLANEOUS EXPENSES		0.000	0.000	12.640
TOTAL		3542.172	2251.974	1484.513

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6666.997	4695.051	3846.965
		Other Income	13.236	6.699	11.980
		TOTAL (A)	6680.233	4701.750	3858.945
Less	EXPENSES
		Cost of materials consumed	4243.065	2833.370
		Purchases of stock-in-trade	1233.997	1083.341
		Employee benefit expense	88.619	41.616
		Other expenses	748.431	559.286	3567.440
		Prior period items	0.368	3.216
		Exceptional items	23.125	1.780
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(88.841)	(137.674)
		TOTAL (B)	6248.764	4384.935	3567.440
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		431.469	316.815	291.505
Less	FINANCIAL EXPENSES (D)		127.602	93.974	75.765
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		303.867	222.841	215.740
Less/ Add	DEPRECIATION/ AMORTISATION (F)		80.531	64.612	50.715
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		223.336	158.229	165.025
Less	TAX (H)		70.691	47.317	56.510
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		152.645	110.912	108.515
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	261.990	153.641
Less	APPROPRIATION OF PROFIT FOR ISSUE OF BONUS SHARES		NA	0.000	0.166
	BALANCE CARRIED TO THE B/S		NA	372.902	261.990
	EARNINGS IN FOREIGN CURRENCY		0.000	0.000	0.000
	IMPORTS
		Raw Material Consumed	260.748	160.373	13.250
		Stores, spares & consumables	19.448	13.469	0.000
		Capital goods	347.035	0.474	13.003
		Advances for raw material	7.895	0.000	4.009
		Advances for Capital Goods	22.666	105.372	0.000
	TOTAL IMPORTS		657.792	279.688	30.262
	Earnings / (Loss) Per Share (Rs.)
	- Basic		4.64	3.40	3.44
	- Diluted		4.64	3.40	3.44

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.29	2.35	2.81
Net Profit Margin (PBT/Sales)	(%)	3.35	3.37	4.29
Return on Total Assets (PBT/Total Assets}	(%)	6.80	6.33	8.06
Return on Investment (ROI) (PBT/Networth)		0.21	0.23	0.28
Debt Equity Ratio (Total Debt/Networth)		2.31	2.17	1.48
Current Ratio (Current Asset/Current Liability)		3.80	3.72	2.37

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2012 [Rs. in millions]	31.03.2011 [Rs. in millions]	31.03.2010 [Rs. in millions]
Sundry Creditors	34.952	46.055	476.477

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	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The registered office of the company has been shifted from Plot No.159, Sector III, Industrial Area, Pithampur, Madhya Pradesh to the present address w.e.f. 07.03.2007.

FINANCIAL RESULTS:

During the year gross turnover of the company has increased to Rs. 7226.400 Millions as against Rs. 5045.064 Millions for the year ended 31st March, 2011, recording an increase of 43.24 %. During the year, EBITDA increased to Rs. 454.962 Millions from Rs. 321.811 Millions for the year ended 31^st March, 2011. Profit after tax for the year stood at Rs. 152.645 Millions as against Rs. 110.912 Millions during last year. During the year company manufactured 88667 MT of SS billets as against production of 63770 MT for the year ended 31st March, 2011. Thus, the production has increased by 39.04%.

OPERATIONS:

The Company is a manufacturer of stainless steel billets and rolled flats of various thickness, width and lengths and presently has facilities to manufacture three main products as per American Iron and Steel Institute (AISI) 201, 304 and 400. Company is catering to segments ranging from normal household goods to specialized steel for pharmaceuticals etc. A comprehensive portfolio of long products allows the company to deliver the products as per customer’s requirement.

Previous year installed capacity of their company was increased to 1,20,000 TPA. During the year, capacity utilization of plant was 74 % of the installed capacity. Now their company has become the largest stainless steel producer in Central Region.

AWARD AND RECOGNITION:

During the period, their company awarded with 35th rank amongst India’s Top 500 fastest growing mid-sized companies by Inc India, The Magazine for Growing Companies.

PROJECTS AND EXPANSION PLANS:

EXPANSION DURING FY 2011-12:

During the year, company had increased Liquid and Gaseous storage capacity. The capacity for Nitrogen Oxygen and Argon increased from 40,000 Liters to 75,000 Liters. This will facilitate the smooth operation of AOD. To have better quality of cast billets and to achieve high casting speed, order for new billet caster was placed to concast (India), one of the largest billet caster supplier in the country. Company has built up a new Administrative Block to take care of the requirement of increased staff and to have better working environment. The administrative block has built up area of 1230 sq. mtrs and the same is put to use. For the welfare of the employees, company had built up canteen in the area of 160 sq. mtrs and the same have been put to use. To take care of the increased production as well as for smooth functioning of the Stores Department, company has extended two nos. sheds. The total extended area of two sheds is 1545 sq. mtrs. The extended sheds have been put to use for stores items as well as raw materials.

PROJECTS UNDER PROGRESS – WIRE ROD AND BAR MILL PROJECT:

During the year the civil construction, mechanical and electrical work has been completed. Major equipments was supplied by Morgardshammar Danieli Sweden/Italy, which have been successfully installed.

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Other loans and advances	762.784	554.704
TOTAL	762.784	554.704

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U27106MH1985PLC169768
Name of the company	MITTAL CORP LIMITED
Address of the registered office or of the principal place of business in India of the company	315, Jolly Bhawan No.1, 10, New Marine Line, Mumbai – 400 020, Maharashtra, India
Type of charge	Book Debts Movable Property [not being pledge] Immovable property Others
Particular of charge holder	Oriental Bank of Commerce, 12/2, RNT Marg, Chetak Centre, Indore – 452 001, Madhya Pradesh, India Email: bm0183@obc.co.in
Nature of description of the instrument creating or modifying the charge	1. Agreement of Hypothecation of Assets dated 26.03.2013. 2. Sanction Letter dated 09.03.2013.
Date of instrument Creating the charge	26.03.2013
Amount secured by the charge	Rs.1050.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2.50% above base rate (presently 10.25%). Present Rate of Interest 12.75%. Terms of Repayment As per Sanction Letter Margin On Cash Credit Limit - 25% On LC Limit - 5% Extent and Operation of the charge Hypothecation of stocks of RM, stock-in-process, finished goods, stores and spares and receivables situated on Plot No.159, Sec. III, Industrial Area, Pithampur Dist. Dhar (Unit –I) on pari-passu basis. Others Equitable Mortgage on immovable properties situated at Plot No. 159, Sector III, Pithampur Dist. Dhar (Unit – I) with other consortium member banks. Equitable Mortgage by depositing the title deed of Plot no. 1, 6, and 7 part of Khasra No. 157, 163/2, Gram pipliya Rao, Dist. Indore. Second charge over entire assets of Unit II of the company on pari passu basis with other consortium member banks. Personal/Corporate Guarantee(s)
Short particulars of the property charged	Hypothecation of stocks of RM, stock-in-process, finished goods, stores and spares and receivables situated on Plot No.159, Sec. III, Industrial Area, Pithampur Dist. Dhar (Unit –I) on pari-passu basis. Equitable Mortgage on immovable properties situated at Plot No. 159, Sector III, Pithampur Dist. Dhar (Unit – I) with other consortium member banks. Equitable Mortgage by depositing the title deed of Plot no. 1, 6, and 7 part of Khasra No. 157, 163/2, Gram pipliya Rao, Dist. Indore with other consortium member banks. Second charge over entire assets of Unit II of the company on pari passu basis with other consortium member banks.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 [Rs. in millions]	31.03.2011 [Rs. in millions]
Outstanding L/C, FLC and BLC	1170.355	554.704
Disputed demand of Income Tax for AY 2006-07 (Appeal at Appellate Tribunal) fully paid but not provided for	1.451	0.701
Disputed demand of Income Tax for AY 2008-09 (Appeal at CIT Appeal) fully paid but not provided for	1.616	0.806
Disputed demand of Income Tax for AY 2009-10 (Appeal at CIT Appeal) fully paid but not provided for	3.214	0.000
Bank Guarantee	2.200	0.000
Disputed demand of Excise under Appeal fully paid but not provided for	0.800	0.800
TOTAL	1179.636	557.011

FIXED ASSETS:

• Leasehold Land
• Roads and Bridges
• Factory Buildings
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Vehicles
• Computers

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.92
UK Pound	1	Rs.84.44
Euro	1	Rs.71.32

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.