MIRA INFORM REPORT

Report Date :

18.10.2013

IDENTIFICATION DETAILS

Name :	LAXCON STEELS LIMITED [w.e.f. 21.06.2007]
Formerly Known As :	LAXCON STEELS PRIVATE LIMITED
Registered Office :	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabad – 382 220, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.08.1999
Com. Reg. No.:	04-036413
Capital Investment / Paid-up Capital :	Rs. 130.061 Millions
CIN No.: [Company Identification No.]	U27100GJ1999PLC036413
TAN No.: [Tax Deduction & Collection Account No.]	AHML00104G
PAN No.: [Permanent Account No.]	AAACL5064A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Alloy Steel, Stainless Steel, Mild Steel etc.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2110000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears an increase in sales turnover as well as net profitability of the company during 2012. Trade relations are fair. Business is active. Payments terms are reported as usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

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	CARE
Rating	Long term Bank Facilities : BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	21.03.2013

Rating Agency Name	CARE
Rating	Short term bank facilities : A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	21.03.2013

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 PARTED BY

Name :	Mr. Tanoj
Designation :	Finance Executive
Contact No.:	91-79-40007600
Date :	17.10.2013

LOCATIONS

Registered Office / Factory :	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabad – 382 220, Gujarat, India
Tel. No.:	91-79-4007600
Fax No.:	91-79-40007666
E-Mail :	laxcon@gopalgroup.com laxconoffice@gopal.com officelaxcon@gopalgroup.com exim@gopalgroup.com
Website :	http://www.gopalgroup.com http://www.laxconsteels.com
Area :	35000 Sq. ft.
Location :	Owned
Administrative Office :	Rajii Arcrade, 2^nd Floor, Opposite Gurukul Temple, Mem Nagar, Ahmedabad, Gujarat, India
Tel. No.:	91-79-40007600 [100 Lines] / 27478474
Fax No.:	91-79-4007666 / 67 / 27478471
Area :	2060 Sq. ft.
Location :	Owned
Corporate Office :	C-55/2, Wazirpur Industrial Area, Delhi – 110052, India
Tel. No.:	91-11-42952500 [100 Lines] / 27377001/ 5
Fax No.:	91-11-27377373 / 7474
E-Mail :	sales@gopalgroup.com info@gopalgroup.com

DIRECTORS

As on : 29.09.2012

Name :	Mr. Gopal Swarup Surender Pal Gupta
Designation :	Managing Director
Address :	H-34, Ashok Vihar, Phase – I, Delhi – 110 052, India
Date of Birth/Age :	26.03.1965
Qualification :	B.Com.
Date of Appointment :	05.04.2007
PAN No :	AAGPG3933L
DIN :	00381600
Name :	Mr. Vinod Surender Pal Gupta
Designation :	Director
Address :	H-34, Ashok Vihar, Phase – I, Delhi – 110 052, India
Date of Birth/Age :	07.06.1977
Qualification :	B.Com.
Date of Appointment :	20.03.2002
PAN No :	AACHV3943D
DIN :	00381782
Name :	Mr. Sanjay Gupta
Designation :	Director
Address :	1009/67, Deva Ram Park, Tri Nagar, Delhi, India
Date of Birth/Age :	08.11.1968
Qualification :	B.Com.
Date of Appointment :	20.03.2002
PAN No :	AAIPG0571C
DIN :	00383021
Name :	Mr. Rajan G Garg
Designation :	Director
Address :	20/42, West Punjabi Baug, New Delhi – 140 020, India
Date of Birth/Age :	25.09.1975
Qualification :	B.Com.
Date of Appointment :	01.04.2004
PAN No :	AHFPG1259F
DIN :	00439436
Name :	Mr. Naresh Kumar Kakkar
Designation :	Director
Address :	76, Vaishali Pitampura, Delhi – 110088, India
Date of Birth/Age :	15.06.1942
Date of Appointment :	25.09.2009
DIN :	01541205

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 29.09.2012

Names of Shareholders	No. of Shares
Surendra Pal Gupta	1705000
Surendra Pal Gupta (HUF)	1919000
Sita Gupta	1260000
Gopal Swarup Gupta	2010000
Gopal Swarup Gupta (HUF)	600000
Sangita Gupta	500000
Gaurav Gupta	736000
Varun Gupta	1060766
Vinod Gupta	1916000
Vinod Gupta (HUF)	100000
Pooja Gupta	797434
Alankit Assignments Limited, India	200000
Kunal Jain	201945
Total	13006145

As on : 30.03.2012

Names of Allotee	No. of Shares
Kunal Jain	201945
Total	201945

Equity Share Break up (Percentage of Total Equity)

As on : 29.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	1.55
Bodies corporate	1.54
Directors or relatives of Directors	96.91
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Alloy Steel, Stainless Steel, Mild Steel etc.

Products :

Products Description	ITC Code No.
Stainless Steel Ingots or Other Primary Forms, Semi Finished Products of Stainless Steel	7218
Alloy Steel Ingots or Other Primary Forms, Semi Finished Products of Alloy Steel	7224
Bars and Rods of Alloy Steels Angles Shapes and Section of Other Alloy Steel Hollow Drill Bat and Rods of Alloy	7228

Semi Finished Steels

-Forging Quality Ingots
-Continuous Cast Blooms / Billets
-Hot Rolled Round Bars
-Hot Rolled Round Cornered Squares (RCS)
-Hexagonal and Sharp Cornered Square Bars
-Hot Rolled Flat Bars
-Hot Rolled Angles

Cold Finished Steels

-Bright Bars [Round / hex / Square]

Exports :

Products :

· Alloy Steel

· Stainless Steel

· Mild Steel

Countries :

European and Middle East Countries

Imports :

Products :

Scrup

Countries :

· South Africa

· Dubai

· Sweden

· USA

· UK

· Bangkok

· Malaysia

· Thailand

· Finland

Terms :

Selling :

Cash and Credit (30 days / 60 days)

Purchasing :

Cash and Credit (30 days / 60 days)

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity
Ingots	M.T.	Not Applicable	48000.000

Particulars	Unit	Actual Production
Ingots / Billets	M.T.	35959.250
Casting	M.T.	11.160

Note :

• The company’s product being deli censed by the government of India, there is no licensed capacity.
• Installed capacity is as certified by the management and accepted by auditors, being a technical matter

GENERAL INFORMATION

Customer :

Wholesalers, Retailers, and End Users

No. of Employees :

250 (Approximately)

Bankers :

Indian Overseas Bank, First Floor , Khemka House, Drive-In-Road, Ahmedabad – 380 054, Gujarat, India

Facilities :

[Rs. in Million]

SECURED LOAN	31.03.2012	31.03.2011
Term Loan from Bank	81.932	102.025
Other Loans and Advances	3.779	0.998
Foreign Currency Term loan from Banks	51.936	0.000
Working Capital Loans	671.252	698.163
Total	808.899	801.186

Auditors :
Name :	H V Vasa and Company Chartered Accountants
Address :	B-2, Usha Kiran, Opposite Khanpur Gate, Khanpur, Ahmedabad – 380 001, Gujarat, India
Tel. No.:	91-79-25502985
Fax No.:	91-79-25503700
E-Mail :	hvvasaco@gmail.com
PAN No.:	AAGPV2872F
Associates :	· Kraze Exports Limited, India Cin No : U74899DL1993PLC054676 · Gagar Steel Private Limited, India Cin No : U74899DL1986PTC024208 · Gopal Industries · Mega Steels Private Limited, India Cin No : U00000UP1991PTC052386 · Parvati Private Limited, 27, Rajasthani, Udyog Nagar, G.T. Karnal Road, Delhi - 110033, India Cin No : U52110DL1979PTC009979 · Ocean Steels Private Limited Cin No : U27100GJ2005PTC046176 · Allied Holdings Private Limited, India, Z-43, Okhla Industrial Area, Phase - 2, New Delhi - 110020, India Cin No : U67120DL1979PTC009880
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Supraneet Finance And Consultants Limited, India Cin No : L65921DL1989PLC035261

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
13006145	Equity Shares	Rs.10/- each	Rs. 130.061 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	130.061	128.042
(b) Reserves & Surplus	398.051	278.925
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	17.650
Total Shareholders’ Funds (1) + (2)	528.112	424.617
(3) Non-Current Liabilities
(a) long-term borrowings	172.182	152.825
(b) Deferred tax liabilities (Net)	68.615	59.271
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.273	0.589
Total Non-current Liabilities (3)	242.070	212.685
(4) Current Liabilities
(a) Short term borrowings	731.294	708.319
(b) Trade payables	167.648	146.201
(c) Other current liabilities	97.926	115.635
(d) Short-term provisions	70.610	38.826
Total Current Liabilities (4)	1067.478	1008.981
TOTAL	1837.660	1646.283
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	423.040	336.568
(ii) Intangible Assets	0.019	0.030
(iii) Capital work-in-progress	75.443	109.251
(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	3.525	2.696
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	502.027	448.545
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	623.675	483.828
(c) Trade receivables	451.698	483.278
(d) Cash and cash equivalents	7.143	9.878
(e) Short-term loans and advances	252.459	219.288
(f) Other current assets	0.658	1.466
Total Current Assets	1335.633	1197.738
TOTAL	1837.660	1646.283

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		126.042
2] Share Application Money		42.500
3] Reserves & Surplus		204.401
4] (Accumulated Losses)		0.000
NETWORTH		372.943
LOAN FUNDS
1] Secured Loans		617.125
2] Unsecured Loans		20.757
TOTAL BORROWING		637.882
DEFERRED TAX LIABILITIES		42.335
TOTAL		1053.160
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		318.237
Capital work-in-progress		9.249
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	376.349
	Sundry Debtors	334.423
	Cash & Bank Balances	42.480
	Other Current Assets	67.882
	Loans & Advances	98.113
Total Current Assets		919.247
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	139.042
	Other Current Liabilities	16.734
	Provisions	38.215
Total Current Liabilities		193.991
Net Current Assets		725.256
MISCELLANEOUS EXPENSES		0.418
TOTAL		1053.160

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3716.460	2547.293	2061.831
		Other Income	36.088	16.147	11.734
		TOTAL (A)	3752.548	2563.440	2073.565
Less	EXPENSES
		Cost of Materials Consumed	2834.207	1851.282
		Changes in Inventories of Finished Goods	(112.859)	(66.547)
		Employees Benefits Expenses	17.456	11.196
		Other Expenses	723.960	579.052
		TOTAL (B)	3462.764	2374.981	1913.112
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		289.784	188.459	160.453
Less	FINANCIAL EXPENSES (D)		122.442	67.611	55.392
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		167.342	120.848	105.061
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.483	28.188	21.744
	PROFIT BEFORE TAX (E-F) (G)		130.859	92.660	83.317
Less	TAX (H)		42.544	36.137	30.119
	PROFIT AFTER TAX (G-H) (I)		88.315	56.523	53.198
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		226.055	169.532	116.334
	BALANCE CARRIED TO THE B/S		314.370	226.055	169.532
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	156.589	215.762
	TOTAL EARNINGS		0.000	156.589	215.762
	Earnings Per Share (Rs.)		6.90	4.48	4.25

Particulars	31.03.2013
Sales Turnover (Approximately)	3631.500

Expected Sales (2013-2014) : Rs. 3800.000 Millions

The above information has been parted by Mr. Tanoj (Finance Executive)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.35	2.20	2.57
Net Profit Margin (PBT/Sales)	(%)	3.52	3.64	4.04
Return on Total Assets (PBT/Total Assets}	(%)	9.77	7.72	6.73
Return on Investment (ROI) (PBT/Networth)		0.25	0.23	0.22
Debt Equity Ratio (Total Debt /Networth)		1.71	2.12	1.71
Current Ratio (Current Asset/Current Liability)		1.25	1.19	4.74

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	---------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

UNSECURED LOANS :

(Rs in Millions)

PARTICULARS	31.03.2012	31.03.2011
Intercorporate Borrowings	56.695	13.975
Loans and Advances	29.776	35.827
Loans and Advances from Related parties	8.106	10.156
Total	94.577	59.958

BANKERS CHARGES REPORT AS PER REGISTRY :

Corporate identity number of the company	U27100GJ1999PLC036413
Name of the company	LAXCON STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabd – 382 220, Gujarat, India Email : laxcon@gopalgroup.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80012130
Type of charge	· Book debts · Movable Property (not being pledge) · Others (Plant and Machinery)
Particular of charge holder	Indian Overseas Bank, First Floor ,Khemka House, Drive-in Road, Ahmedabad – 380 054, Gujarat, India Email : thalbr@ahmsco.iobnet.ci.in
Nature of instrument creating charge	Adhoc Cash Credit
Date of instrument Creating the charge	25.03.2013
Amount secured by the charge	Rs. 37.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Adhoc Cc- Base Rate +3.5 % Terms of repayment – Adhoc Cc - Within 90 Days From The Date Of Release Margin – Adhoc Cc - As Per Agreement

FIXED ASSETS :

• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Computer
• Office Equipments
• 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] 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. 61.58
UK Pound	1	Rs. 98.51
Euro	1	Rs. 83.49

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	RAJ

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		45

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.