MIRA INFORM REPORT

Report Date :

21.11.2013

IDENTIFICATION DETAILS

Name :	HANDUM INDUSTRIES LIMITED
Registered Office :	Survey No.296/7/7 8 and 11, Sheri Bollarum, Jinnaram Mandal, District Medak – 502235, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.06.1986
Com. Reg. No.:	01-039625
Capital Investment / Paid-up Capital :	Rs.46.515 Millions
CIN No.: [Company Identification No.]	L27109AP1986PLC039625
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of iron and steel.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (13)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management of the company has not filed its financials after the year 2010. As per the available financials 2010 there seems huge accumulated losses recorded. The financial position of the company seems to be weak. However, as per registrar of companies the status of the company is shown as active. Payment terms are unknown. The company can be considered for business dealings on secured 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 – 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

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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

Management Non – cooperative (91-40-23350495)

LOCATIONS

Registered Office / Factory :	Survey No.296/7/7 8 and 11, Sheri Bollarum, Jinnaram Mandal, District Medak – 502235, Andhra Pradesh
Tel. No.:	91-40-23350495
Fax No.:	91-40-23350510
E-Mail :	handum@sifymail.com

DIRECTORS

As on 29.09.2010

Name :

Mr. Venkataramana Reddy Pesaladinne

Designation :

Managing director

Address :

H No.: 393, Plot No.: 28, Road No.: 02, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

20.11.1960

Date of Appointment :

01.01.2009

DIN No.:

00118230

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	U45100AP1976PLC002027	PLATINA PROPERTIES AND PROJECTS LIMITED	Director	10/07/1995	10/07/1995	-	Active	NO
2	L27109AP1986PLC039625	HANDUM INDUSTRIES LIMITED	Managing director	01/01/2009	08/01/1999	-	Active	NO
3	U45200AP2005PTC046502	KAKATIYA LANDSCAPES PRIVATE LIMITED	Director	30/09/2006	15/05/2006	-	Active	NO
4	U45200AP2005PTC046266	KAKATIYA ENCLAVES PRIVATE LIMITED	Director	30/09/2006	15/05/2006	-	Active	NO
5	U72200AP2003PTC042069	MEDICITI HEALTH CARE SERVICES PRIVATE LIMITED	Director	29/09/2007	05/02/2007	-	Active	NO
6	U51909DL2007PTC166623	ZEVA ENGINEERING AND MANAGEMENT SERVICES PRIVATE LIMITED	Director	03/08/2007	03/08/2007	-	Active	NO
7	U45200MH2008PTC186388	INGENIOUS DEVELOPERS PRIVATE LIMITED	Director	30/09/2009	15/12/2008	-	Active	NO
8	U45200AP2004PTC044734	BABJI REALTORS PRIVATE LIMITED	Director	30/09/2009	31/12/2008	-	Active	NO
9	U45200AP2004PTC044732	MEKA HOUSING AND DEVELOPERS PRIVATE LIMITED	Director	29/09/2009	16/01/2009	-	Active	NO
10	U70102AP1990PTC011773	INDUS CREATORS PRIVATE LIMITED	Director	29/09/2009	28/01/2009	-	Active	NO
11	U45201AP1991PTC012591	INDUS HOUSING PRIVATE LIMITED	Director	29/09/2009	30/01/2009	-	Active	NO
12	U45200AP2004PTC044735	VERMA REALTORS PRIVATE LIMITED	Director	29/09/2009	02/02/2009	-	Active	NO
13	U45200AP2004PTC044733	PRADAN HOUSING PRIVATE LIMITED	Director	29/09/2009	02/02/2009	-	Active	NO
14	U55200MH2000PTC124192	OFFBEAT DEVELOPERS PRIVATE LIMITED	Director	20/08/2010	25/06/2009	26/07/2013	Active	NO
15	U45200AP2007PTC052796	SGI INFRASTRUCTURE PRIVATE LIMITED	Additional director	06/03/2010	06/03/2010	-	Active	NO
16	U74999TN2010PLC077070	SUJANA PORTS LIMITED	Director	19/08/2010	19/08/2010	-	Strike off	NO
17	U55101KA2010PLC055236	ESTEEM HOTELS LIMITED	Director	21/09/2010	21/09/2010	-	Under Process of Striking off	NO
18	U74120AP2011PTC073294	MEDICITI NEWBORN CARE PRIVATE LIMITED	Director	15/03/2011	15/03/2011	-	Strike off	NO
19	U70102TN2011PTC079306	ESTEEM HOUSING DEVELOPERS PRIVATE LIMITED	Additional director	01/09/2011	01/09/2011	-	Active	NO
20	U45200AP2012PTC083001	AMULYA HOMES PRIVATE LIMITED	Additional director	15/02/2013	15/02/2013	22/07/2013	Active	NO
21	U17110AP1998PLC030343	INFINITI METAL PRODUCTS INDIA LIMITED	Director	24/06/2013	24/06/2013	-	Active	NO
22	U40101TN1997PLC038951	SUJANA POWER (TUTICORIN) LIMITED	Additional director	20/07/2013	20/07/2013	-	Active	NO
23	U40103TN2012PTC084033	SUJANA SOLAR POWER PRIVATE LIMITED	Additional director	20/07/2013	20/07/2013	-	Active	NO
24	U40101TN1997PLC038950	SUJANA POWER (GANGIKONDAN) LIMITED	Additional director	20/07/2013	20/07/2013	-	Active	NO

Name :

Mr. Thappeta Reddy Bayapu

Designation :

Additional director

Address :

Plot No 807/1, Vivekananda Nagar, Bagh Ameer, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India

Date of Birth/Age :

06.06.1975

Date of Appointment :

28.09.2011

DIN No.:

06598930

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	L27109AP1986PLC039625	HANDUM INDUSTRIES LIMITED	Additional director	28/09/2011	28/09/2011	-	Active	NO
2	U10100AP1995PLC022107	KAMLALAYA STEELCO LIMITED	Additional director	10/06/2013	10/06/2013	-	Active	NO

Name :

Mr. Nageswar Reddy Lingareddy

Designation :

Director

Address :

Flat No.: 102, Green Court Appartments N 12Zampet Road, Hyder Nagar, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India

Date of Birth/Age :

29.12.1971

Date of Appointment :

29.09.2009

DIN No.:

02661420

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	U21011AP1999PTC033171	TEJDEEP ENGINEERING ENTERPRISES PRIVATE LIMITED	Director	29/09/2009	08/06/2009	-	Active	NO
2	U29219AP1988PLC009396	GANGA INDUSTRIAL CORPORATION LIMITED	Director	30/09/2009	08/06/2009	-	Active	NO
3	U29195KA2001PLC029233	SATYA STRAPS AND PACKING TECHNOLOGIES LIMITED	Additional director	15/06/2009	15/06/2009	-	Active	NO
4	U29308AP2000PTC067160	ASPIRING ENTERPRISES PRIVATE LIMITED	Director	29/09/2009	15/06/2009	-	Active	NO
5	U70102AP2002PLC039283	J.R. AUTOMOBILES LIMITED	Additional director	01/07/2009	01/07/2009	-	Strike off	NO
6	L27109AP1986PLC039625	HANDUM INDUSTRIES LIMITED	Director	29/09/2009	08/07/2009	-	Active	NO
7	U51909AP2000PTC034031	GANGA EXIM PRIVATE LIMITED	Additional director	06/03/2010	06/03/2010	-	Active	NO
8	U70100TN2010PTC075960	NARAYANADRI HOUSING DEVELOPERS PRIVATE LIMITED	Director	02/06/2010	02/06/2010	20/06/2013	Active	NO
9	U70102AP2010PTC071503	CREDENCE AVENUES PRIVATE LIMITED	Director	02/12/2010	02/12/2010	-	Active	NO
10	U70100AP2010PTC071549	BHAVYA AVENUES PRIVATE LIMITED	Director	07/12/2010	07/12/2010	-	Active	NO
11	U28910AP2011PTC072508	SUNLIGHT ENGINEERING AND TRADING PRIVATE LIMITED	Director	04/02/2011	04/02/2011	-	Active	NO

Name :

Mr. Veeramachaneni Seshu Babu

Designation :

Director

Address :

H No.: 393, Plot No.: 28, Road No.: 02, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

01.05.1958

Date of Appointment :

16.07.1997

DIN No.:

02673530

KEY EXECUTIVES

PROJECT MONITORING COMMITTEE:	· Mr. P.V. Ramana Reddy · Mr. K.P.C. Rao · Mr. L. Nageswar Reddy
AUDIT COMMITTEE:	· Mr. K.P.C. Rao · Mr. L. Nageswar Reddy · Mr. V. Seshu Babu
SHAREHOLDERS /INVESTORS GRIEVANCE COMMITTEE:	· Mr. K.P.C. Rao · Mr. L. Nageswar Reddy · Mr. V. Seshu Babu
REMUNERATION COMMITTEE:	· Mr. K.P.C. Rao · Mr. L. Nageswar Reddy · Mr. V. Seshu Babu

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

SHAREHOLDING DETAIL FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2010

Category	Percentage
Bodies corporate	22.81
Directors or relatives of Directors	17.19
Other top fifty shareholders	22.74
Other	37.26
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of iron and steel.

Products :

Item Code No.	Product Description
3002	Mild Steel cold Twisted Deformed Bars

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Indian Bank, 201, Karan Centre, Sarojini Devi Road, Hyderabad - 500003, Andhra Pradesh, India

Facilities :

Secured Loan	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Term Loans with IDBI	110.814	108.997
INT Accrued - IDBI Loan	86.085	86.085
INt Payable on term loan	7.248	0.000
Total	204.147	195.082

Banking Relations :
Financial Institutions:	· The Industrial Development Bank of India · National Agricultural CO-Operative Marketing Federation of India Limited, 5-10-193, HACA Bhavan, Iind Floor, Opposite Public Garden, Hyderabad - 500004, Andhra Pradesh, India
Auditors :
Name :	SRB and Associates Chartered Accountants
Address :	2A, Dhruvatatara Apartments, Behind Medinova, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
Tel. No.:	91-40-40038378
PAN N Income-tax PAN of auditor or auditor's firm :	Srb_hyd@yahoo.co.in

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6500000	Equity Shares	Rs.10/- each	Rs. 65.000 Millions
8500000	Preference Shares	Rs.10/- each	Rs. 85.000 Millions
	Total		Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4651492	Equity Shares	Rs.10/- each	Rs. 46.515 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		46.515	46.515	46.515
2] Share Application Money		6.146	6.146	6.146
3] Reserves & Surplus		46.008	46.008	46.008
4] (Accumulated Losses)		(549.776)	(467.031)	(433.995)
5} Cumulative Redeemable Preference Shares		42.000	42.000	42.000
NETWORTH		(409.107)	(326.362)	(293.326)
LOAN FUNDS
1] Secured Loans		204.147	195.082	201.149
2] Unsecured Loans		9.950	9.950	9.950
TOTAL BORROWING		214.097	205.032	211.099
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		(195.010)	(121.330)	(82.227)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		202.503	217.130	205.461
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		7.498	7.498	7.498
DEFERREX TAX ASSETS		138.216	103.628	85.710
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	80.829	85.816	128.510
	Sundry Debtors	441.641	41.370	1059.053
	Cash & Bank Balances	0.969	1.555	0.572
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1258.558	858.677	866.935
Total Current Assets		1781.997	987.418	2055.070
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2323.547	1435.433	2436.922
	Other Current Liabilities	1.677	1.544	0.358
	Provisions	0.000	0.027	0.839
Total Current Liabilities		2325.224	1437.004	2438.119
Net Current Assets		(543.227)	(449.586)	(383.049)
MISCELLANEOUS EXPENSES		0.000	0.000	2.153
TOTAL		(195.010)	(121.330)	(82.227)

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1268.423	1911.855	2286.164
		Other Income	1.078	1.649	7.502
		TOTAL (A)	1269.501	1913.504	2293.666
Less	EXPENSES
		Purchase and other Expenses	1351.067	1951.442	2470.688
		TOTAL (B)	1351.067	1951.442	2470.688
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(81.566)	(37.938)	(177.022)
Less	FINANCIAL EXPENSES (D)		13.323	0.587	1.004
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(94.889)	(38.525)	(178.026)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.115	14.709	13.707
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(110.004)	(53.234)	(191.733)
Less	TAX (H)		(34.587)	(17.891)	(0.599)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(75.417)	(35.343)	(191.134)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(467.031)	(433.995)	(242.618)
	PRIOR PERIOD ADJUSTMENT		(7.329)	2.607	(0.243)
	BALANCE CARRIED TO THE B/S		(549.777)	(467.031)	(433.995)
	Earnings / (Loss) Per Share (Rs.)		16.21	NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(5.94)	(1.85)	(8.33)
Net Profit Margin (PBT/Sales)	(%)	(8.67)	(2.78)	(8.39)
Return on Total Assets (PBT/Total Assets}	(%)	(5.54)	(4.42)	(8.48)
Return on Investment (ROI) (PBT/Networth)		(0.27)	(0.16)	(0.65)
Debt Equity Ratio (Total Debt /Networth)		(0.52)	(0.63)	(0.72)
Current Ratio (Current Asset/Current Liability)		0.77	0.69	0.84

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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

PARTICULARS	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Unsecured Loan	9.950	9.950
Total	9.950	9.950

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Analysis and Development

The Company produces long re-rolled iron and steel products for power and telecom sectors. The favourable change in the prices of Company’s Steel products helped the company to achieve the turnover of Rs.1269.541 Millions for the 12 months ended 31.03.2010 when compared with the previous year (12 months) turnover of Rs. 1913.580 Millions. The Government also is keen about pump priming the economy. Several infrastructure projects such as airports, railways, highways, ports, power generation, power transmission, telecom services are underway. This step up in the government expenditure on infrastructure projects is likely to benefit the steel sector. As the demand goes up, so do the prices. All this provides steel industry excellent market opportunities.

BUSINESS OUTLOOK

Considering the growing demand, the medium term business outlook is encouraging. The margins are expected to be under pressure. The business has become volume oriented with lower margins.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10035478	03/01/2007	1,100,000,000.00	NATIONAL AGRICULTURAL CO-OPERATIVE MARKETING FEDER ATION OF INDIA LTD(NAFED)	5-10-193, HACA BHAVAN, IIND FLOOR, OPP:PUBLIC GAR DEN, HYDERABAD, ANDHRA PRADESH - 500004, INDIA	A09919879
2	80010636	12/03/2001	150,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, CUFFE PARADE, MUMBAI, MAHARASHTRA - 4 00025, INDIA	-

FIXED ASSETS

· Free hold land

· Building

· Factory Shed

· Plant and Machinery

· Store Rolls

· Furniture and Fixtures

· Office and Miscellaneous Equipment’s

· Cycle

· 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.62.56
UK Pound	1	Rs.100.77
Euro	1	Rs.84.71

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		13

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.