MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	BHAWANI INDUSTRIES LIMITED
Registered Office :	G. T. Road, Village Ajnali, Mandi Gobindgarh 147301, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.02.1999
Com. Reg. No.:	16-022272
Capital Investment / Paid-up Capital :	Rs.97.535 Millions
CIN No.: [Company Identification No.]	U00000PB1999PLC022272
TAN No.: [Tax Deduction & Collection Account No.]	PTLB10048D
PAN No.: [Permanent Account No.]	AABCB5105H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture and Seller of Iron and Steel Products
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 2800000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Even though the company has recorded better sales turnover during 2012, there appears a drastic dip in the profitability. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 – 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limit = D
Rating Explanation	Lowest credit quality very low prospects of recovery
Date	August, 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

Management Non-cooperative (91-11-47012620)

LOCATIONS

Registered Office / Factory :	G. T. Road, Village Ajnali, Mandi Gobindgarh 147301, Punjab, India
Tel. No.:	91-1765-252811/12 / 326780/90
Fax No.:	91-1765-251485
E-Mail :	export@bhawanisteel.com amit@bhawanisteel.com bhawanisteels@gmail.com mail@bhawanisteel.com
Website :	http://www.bhawanisteel.com
Area :	43 acres
Location :	Owned
Delhi Office :	307-308, Aggarwal Millenium Tower-I Netaji Subhash Place, Pitam Pura New Delhi- 110034 India
Tel. No.:	91-11-47012620
Fax No.:	91-11-27351714

DIRECTORS

As on 29.09.2012

Name :

Mr. Jai Parkash Goyal

Designation :

Managing Director

Address :

H.No.416, Sector-4, Block-C, Shastri Nagar, Mandigobindgarh - 147301, Punjab, India

Date of Birth/Age :

20.10.1956

Date of Appointment :

01.09.2009

DIN No.:

00493511

PAN No.:

AFVPG8799J

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	U00000PB1999PLC022272	BHAWANI INDUSTRIES LIMITED	Managing director	01-09-09	01-03-99	-	Active	NO
2	U74899DL2005PTC143370	ZODIAC BUILDCONS PRIVATE LIMITED	Director	06-12-05	06-12-05	29-02-12	Active	NO
3	U27105PB1994PTC015393	AARTI STRIPS PRIVATE LIMITED	Director	27-03-07	27-03-07	11-03-11	Active	NO
4	U45400DL2007PTC171219	RED EYE INFOTECHS PRIVATE LIMITED	Director	25-07-08	25-07-08	-	Active	NO

Name :

Mr. Sarwan Goyal

Designation :

Whole-Time Director

Address :

H.No.353, Sector-5, Block-B, Shastri Nagar, Mandigobindgarh – 147301, Punjab, India

Date of Birth/Age :

05.10.1963

Date of Appointment :

01.06.2005

DIN No.:

00493573

PAN No.:

ACAPG9907E

Name :

Mr. Amit Goyal

Designation :

Whole-Time Director

Address :

H.No.416, Sector-4, Block-C, Shastri Nagar, Mandigobindgarh - 147301, Punjab, India

Date of Birth/Age :

20.11.1980

Date of Appointment :

01.09.2009

DIN No.:

02313274

PAN No.:

AIGPG3691R

Name :

Mr. Naveen Singhal

Designation :

Whole-Time Director

Address :

H.No.107, Block 2B, St.No.4, Adarsh Nagar, Mandigobindgarh – 147301, Punjab, India

Date of Birth/Age :

29.09.1975

Date of Appointment :

01.01.2011

DIN No.:

03405352

PAN No.:

AAYPK0767A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	13.90
Directors or relatives of Directors	72.38
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture and Seller of Iron and Steel Products

Products :

Description of product or service	ITC Code
Iron and Steel Products	72071190

GENERAL INFORMATION

Customers :

• ISGEC
• Reliance SEZ
• TATA Steel Limited
• Gujrat Water Supply
• ThyssenKrupp Industries India
• Bharat Sanchar Nigam Limited
• Steel Authority of India Limited
• ALSTOM Projects India Limited
• Indian Railway and Rail Coach Factory
• Public Health Engineering Department

No. of Employees :

Information declined by the management

Bankers :

• State Bank of India, SME Mandi Gobindgarh, Fatehgarh Sahib - 147301, Punjab, India

• ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

• Punjab National Bank, Large Corporate Branch, Ludhiana - 141001, Punjab, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Term loans from banks (Secured by first charge on paripassu on the entire fixed assets of the company and personal gaurantee of whole time directors. Vehicle loans are secured against hypothecation of vehicles.)	525.662	445.629
Short-term borrowings
Working capital loans from banks (Secured By First Charge on parri passu basis and hyp of all current assets present and future including Raw Material ,WIP and Finished Goods)	451.266	416.762
Total	976.928	862.391

Banking Relations :	---
Financial Institutions :	Reliance Home Finance Private Limited, 570, Rectifier House, 3rd Floor, Naigaum Cross Road, Wadala, Mumbai - 400031, Maharashtra, India
Auditors :
Name :	Dutta Singla and Company Chartered Accountants
Address :	#34 Sector-4 D, Battan Lal Road, Mandi Gobindgarh – 147301, Punjab, India
PAN No.:	AAAFD8577H
Associate :	Ridhi Industries Limited

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9753500	Equity Shares	Rs.10/- each	Rs.97.535 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	97.535	95.745
(b) Reserves & Surplus	604.302	590.854
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	2.500
Total Shareholders’ Funds (1) + (2)	701.837	689.099
(3) Non-Current Liabilities
(a) long-term borrowings	650.920	502.117
(b) Deferred tax liabilities (Net)	67.924	58.119
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	3.656	1.580
Total Non-current Liabilities (3)	722.500	561.816
(4) Current Liabilities
(a) Short term borrowings	451.266	416.762
(b) Trade payables	964.507	682.179
(c) Other current liabilities	70.187	42.457
(d) Short-term provisions	48.725	20.227
Total Current Liabilities (4)	1534.685	1161.625
TOTAL	2959.022	2412.540
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	719.560	634.364
(ii) Intangible Assets	1.307	0.118
(iii) Capital work-in-progress	309.953	189.792
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	59.991	37.598
(e) Other Non-current assets	4.139	2.656
Total Non-Current Assets	1094.950	864.528
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	951.959	678.277
(c) Trade receivables	357.904	384.625
(d) Cash and cash equivalents	111.016	73.169
(e) Short-term loans and advances	443.193	411.941
(f) Other current assets	0.000	0.000
Total Current Assets	1864.072	1548.012
TOTAL	2959.022	2412.540

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		88.405
2] Share Application Money		0.000
3] Reserves & Surplus		349.023
4] (Accumulated Losses)		0.000
NETWORTH		437.428
LOAN FUNDS
1] Secured Loans		648.066
2] Unsecured Loans		165.872
TOTAL BORROWING		813.938
DEFERRED TAX LIABILITIES		47.965
TOTAL		1299.331
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		506.055
Capital work-in-progress		26.276
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	594.425
	Sundry Debtors	349.557
	Cash & Bank Balances	49.150
	Other Current Assets	0.000
	Loans & Advances	429.321
Total Current Assets		1422.453
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	613.039
	Other Current Liabilities	33.779
	Provisions	8.635
Total Current Liabilities		655.453
Net Current Assets		767.000
MISCELLANEOUS EXPENSES		0.000
TOTAL		1299.331

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4477.480	4089.790	3219.705
		Other Income	99.562	84.833	46.911
		TOTAL (A)	4577.042	4174.623	3266.616
Less	EXPENSES
		Cost of materials consume	3594.052	3214.120
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(163.877)	(8.764)
		Employee benefit expense	79.126	61.271	3045.019
		Other expenses	812.402	658.898
		TOTAL (B)	4321.703	3925.525	3045.019
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		255.339	249.098	221.597
Less	FINANCIAL EXPENSES (D)		191.577	112.568	103.347
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		63.762	136.530	118.250
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.911	40.023	28.217
	PROFIT BEFORE TAX (E-F) (G)		13.851	96.507	90.033
Less	TAX (H)		12.652	30.381	30.996
	PROFIT AFTER TAX (G-H) (I)		1.199	66.126	59.037
Less	APPROPRIATIONS
		Income Tax for earlier year paid / adjusted	0.961	0.455	1.229
		Transfer to General Reserve	0.000	20.000	20.000
	BALANCE CARRIED TO THE B/S		0.238	45.671	37.808
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	253.116	483.876	256.550
	TOTAL EARNINGS		253.116	483.876	256.550
	IMPORTS
		Raw Materials	1462.823	1083.522	NA
		Stores & Spares	12.440	4.420	NA
		Capital Goods	7.904	85.917	NA
	TOTAL IMPORTS		1483.167	1173.859	NA
	Earnings Per Share (Rs.)		0.12	6.91	6.95

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.03	1.58	1.81
Net Profit Margin (PBT/Sales)	(%)	0.31	2.36	2.80
Return on Total Assets (PBT/Total Assets}	(%)	0.52	4.34	4.67
Return on Investment (ROI) (PBT/Networth)		0.02	0.14	0.21
Debt Equity Ratio (Total Debt /Networth)		1.57	1.34	1.86
Current Ratio (Current Asset/Current Liability)		1.21	1.33	2.17

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

PERFORMANCE REVIEW

During the year the Company has achieved net sales and other income of Rs. 4577.042 Millions, as compared to Rs.4174.623 Millions in the previous year. The Company earned a profit (before Tax) of Rs. 13.851 Millions, as compared to Rs. 96.507 Millions in the previous year. After making provision of income tax and other adjustments, the accumulated surplus of Rs.0.238 Million is being carried over to balance sheet as at 31.03.2012.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012	31.03.2011
Letter of Credit	40.841	260.804
Bank Guarantee and Others	14.481	9.081

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Loans and advances from directors	27.895	7.185
Other loans and advances	97.363	49.303
Total	125.258	56.488

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10334309	12/12/2011	10,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B31579097
2	10334314	12/12/2011	10,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA	B31581754
3	10219033	12/04/2010	50,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, LUDHIANA, PUNJAB - 141001,  INDIA	A86095239
4	10218664	31/03/2010	105,000,000.00	STATE BANK OF INDIA	G.T. ROAD, MANDI GOBINDGARH, PUNJAB - 147301, INDIA	A85849156
5	10197461	26/12/2009	50,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, LUDHIANA, PUNJAB - 141001,  INDIA	A77245298
6	10175718	05/08/2009	300,000,000.00	STATE BANK OF INDIA	MANDI GOBINDGARH, MANDI GOBINDGARH, PUNJAB - 147301, INDIA	A69377216
7	10168343	04/06/2009	18,500,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, NEAR CHEEMA CHOWK, R K ROAD, BHAGWATI TOWER, LUDHIANA, PUNJAB -141001, INDIA	A66348137
8	10136017	07/11/2008	150,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, BHAGWATI TOWER, R. K. ROA  D, CHEEMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	A53583274
9	10103350	26/03/2008	150,000,000.00	STATE BANK OF INDIA	MANDI GOBINDGARH, MANDI GOBINDGARH, PUNJAB - 147301, INDIA	A38156931
10	10085510	27/11/2007	50,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, BHAGWATI TOWER,, R. K. ROAD, CHEEMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	A31252695
11	10074748	17/10/2007	30,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, BHAGWATI TOWER,, R. K. ROAD, CHEEMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	A26079673
12	10036565	16/01/2007	50,000,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, BHAGWATI TOWER,, R. K. ROAD, CHEEMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	A10423259
13	10036562	21/12/2006	50,000,000.00	STATE BANK OF INDIA	MANDI GOBINDGARH, MANDI GIOBINDGARH, PUNJAB - 1473  01, INDIA	A10416592
14	10013499	02/06/2012 *	1,909,700,000.00	STATE BANK OF INDIA	SME MANDI GOBINDGARH, FATEHGARH SAHIB, PUNJAB - 147301, INDIA	B42283432
15	90170134	15/04/2005 *	110,000,000.00	STATE BANK OF INDIA	MANDI, GOBINGARH, PUNJAB - 144006, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Factory building
• Plant and equipment
• Factory equipments
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments

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.61.92
UK Pound	1	Rs.99.45
Euro	1	Rs.83.92

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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		27

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.