MIRA INFORM REPORT

Report Date :

24.10.2013

IDENTIFICATION DETAILS

Name :	ARYA IRON AND STEEL COMPANY PRIVATE LIMITED
Registered Office :	51-53A, Mittal Court, Nariman Point, Mumbai – 400 021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.07.2004
Com. Reg. No.:	11-147715
Capital Investment / Paid-up Capital :	Rs. 185.431 Millions
CIN No.: [Company Identification No.]	U27100MH2004PTC147715
TAN No.: [Tax Deduction & Collection Account No.]	MUMA22803E
PAN No.: [Permanent Account No.]	AAECA8083G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Iron Ore Pellets.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 5090000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears some dip in the profitability of the company during the year 2012. However, general financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan: BBB
Rating Explanation	Moderate degree of safety. It carry moderate risk.
Date	30.09.2013

Rating Agency Name	ICRA
Rating	Short Term: A2
Rating Explanation	Strong degree of safety. It carry low credit risk.
Date	30.09.2013

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. Subhash
Designation :	Accounts Manager
Contact No.:	91-22-40696000
Date :	22.10.2013

LOCATIONS

Registered Office :	51-53A, Mittal Court, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-40696000
Mobile No.:	91-9583000343 (Mr. Pravesh Pandey – Deputy General Manager)
Fax No.:	91-22-40696060
E-Mail :	mail@aryagroup.in info@sgco.co.in sgupta@aryagroup.in
Website :	www.aryagroup.in
Factory :	107/1, 108/1, Matkambeda, Industrial Estate, Borbil, District Keonjhar– 758 053, Orissa, India

DIRECTORS

AS ON 17.09.2012

Name :	Mr. Ravi Maniram Arya
Designation :	Managing Director
Address :	6, Satlaj Terrace, 6^th Floor, Walkeshwar Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	12.10.1954
Date of Appointment :	01.01.2008
PAN No.:	AADPA7751M
DIN No.:	00767007
Name :	Mr. Nakul Ravindrakumar Arya
Designation :	Director
Address :	6, Satlaj Terrace, 6^th Floor, Walkeshwar Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	02.11.1980
Date of Appointment :	27.07.2004
PAN No.:	ADEPA4689A
DIN No.:	00372428
Name :	Mr. Puneet Pawankumar Arya
Designation :	Director
Address :	403, Samundra Mahal, Dr. A.B. Road, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	29.04.1980
Date of Appointment :	27.07.2004
PAN No.:	ADYPA7874M
DIN No.:	00726275
Name :	Mr. Sunil Kumar Jain
Designation :	Director
Address :	Flat No. 551, Pocket Gh- 13, Paschim Vihar, New Delhi – 110 087, India
Date of Birth/Age :	30.12.1960
Date of Appointment :	27.09.2010
PAN No.:	ADKPJ9105E
DIN No.:	01308863
Name :	Mr. Pawan Kumar Maniram Arya
Designation :	Whole Time Director
Address :	403, Samundra Mahal, Dr. A.B. Road, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	18.01.1953
Date of Appointment :	01.01.2008
PAN No.:	AADPA7839A
DIN No.:	01659667

KEY EXECUTIVES

Name :	Mr. Subhash
Designation :	Accounts Manager
Name :	Mr. Pravesh Pandey
Designation :	Deputy General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 17.09.2012

Names of Shareholders	No. of Shares
Pawan Arya	895000
Poonam Arya	900000
Puneet Arya	1195000
Tripti Arya	5000
Pawan Kumar HUF	5000
Ravi Arya	895000
Sushma Arya	900000
Nakul Arya	1195000
Ravi Arya HUF	5000
Varun Arya	5000
M.P. Recycling Company Private Limited, India	1776956
Palmview Investments Overseas Limited, British Virgin Island	9086095
Arya Ship Breaking Company Private Limited, India	1680000
TOTAL	18543051

AS ON 17.09.2012

Equity Shares Break Up	Percentage of Holding
Bodies corporate	67.69
Directors or relatives of Directors	32.31
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron Ore Pellets.

Products :

Product Description	Item Code No.
Iron Ore Pellets	72031000

Imports :

Products :

· Raw Material

Countries :

· China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Iron Ore Pellets	Lacs in MT	12.00	8.13

GENERAL INFORMATION

Suppliers :

· TP Sahu and Sons (Private) Limited, Orissa

Customers :

Wholesalers and Retailers

· Adhunik Metaliks Limited, Kolkata

No. of Employees :

500 (Approximately)

Bankers :

· Oriental Bank of Commerce, Kalbadevi Branch, 17/19, Bomanji Master Lane, New Silk Bazar, Mumbai – 400 002, Maharashtra, India

· Oriental Bank of Commerce, Fort Branch, Jash Chambers, Ground Floor, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra, India (Contact No.: 91-22-22659430)

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SHORT-TERM BORROWINGS
Loans repayable on demand from banks	(A) 1651.077	496.936
TOTAL	1651.077	496.936
Notes: (A) a) Cash Credit Facility from OBC amounting to Rs.74.379 Millions (PY Rs.43.655 millions) is secured against hypothecation of stocks of raw material, stock in process, finished goods, stores and spares and receivables of the Company and personal guarantee of Promoter Directors. It carries interest rate of 13.75% (3% + Base Rate of 10.75%). b) Bills Discounted from OBC amounting to Rs.737.886 Millions (PY Rs.205.123 millions) is secured against hypothecation of stock of raw material, stock in process, finished goods, stores and spares and receivables of the Company and personal guarantee of Promoter Directors. The rate of interest is as per the directives and guidelines issued by the Reserve Bank of India from time to time. c) Buyers Credit Facility from OBC amounting to Rs.160.229 Millions (PY Rs.248.158 millions) is secured against hypothecation of stock of raw material, stock in process, finished goods, stores and spares and receivables of the Company and personal guarantee of Promoter Directors. The rate of interest is as per the directives and guidelines issued by the Reserve Bank of India from time to time. d) Overdraft Facility against fixed deposits from OBC amounting to Rs.678.583 Millions (PY Rs. Nil) is secured against fixed deposits of the Company with OBC and personal guarantee of Promoter Directors. The rate of interest is Coupon rate plus 1%.

Banking Relations :	--
Auditors :
Name :	Singrodia Goyal and Company Chartered Accountants
Address :	4/A, Kaledonia-Hdil, 2^nd Floor, Sahar Road, Andheri (East), Mumbai, Maharashtra, India
PAN No.:	AAAFS7106D
Other Related Parties :	Arya Ship Breaking Company Private Limited, India CIN No.: U35110MH1983PTC030484 International Minerals Trading Company Private Limited, India CIN No.: U51420MH2008PTC179965 Arya Integrated Steel Private Limited, India CIN No.: U27100MH2010PTC202409 M.P. Recycling Company Private Limited, India CIN No.: U37100MH2002PTC138164 N.T. Recycling Company Private Limited, India CIN No.: U35110MH2003PTC143122 PNV Enterprises Private Limited, India CIN No.: U65923MH2010PTC200498 Arya Mines and Metals Private Limited, India CIN No.: U27109MH2010PTC204325 · Goyal Traders, India · Arya Ship Breaking Corporation, India

CAPITAL STRUCTURE

AS ON 17.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18543051	Equity Shares	Rs.10/- each	Rs. 185.431 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	185.431	185.431
(b) Reserves & Surplus	1087.038	1263.898
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1272.469	1449.329
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	221.462	201.799
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	3.295	1.378
Total Non-current Liabilities (3)	224.757	203.177
(4) Current Liabilities
(a) Short term borrowings	1656.566	502.436
(b) Trade payables	97.009	43.164
(c) Other current liabilities	299.866	325.796
(d) Short-term provisions	1687.549	1628.100
Total Current Liabilities (4)	3740.990	2499.496
TOTAL	5238.216	4152.002
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2082.405	2110.227
(ii) Intangible Assets	0.865	0.897
(iii) Capital work-in-progress	10.723	40.493
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.500	1.500
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	162.556	99.759
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	2258.049	2252.876
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	555.596	293.624
(c) Trade receivables	780.213	548.089
(d) Cash and cash equivalents	1244.076	693.111
(e) Short-term loans and advances	400.282	364.302
(f) Other current assets	0.000	0.000
Total Current Assets	2980.167	1899.126
TOTAL	5238.216	4152.002

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		185.431
2] Share Application Money		0.000
3] Reserves & Surplus		963.398
4] (Accumulated Losses)		0.000
NETWORTH		1148.829
LOAN FUNDS
1] Secured Loans		1656.797
2] Unsecured Loans		0.000
TOTAL BORROWING		1656.797
DEFERRED TAX LIABILITIES		107.801
TOTAL		2913.427
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2024.894
Capital work-in-progress		204.254
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	206.964
	Sundry Debtors	209.605
	Cash & Bank Balances	489.517
	Other Current Assets	0.000
	Loans & Advances	295.275
Total Current Assets		1201.361
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	81.463
	Other Current Liabilities	399.026
	Provisions	36.593
Total Current Liabilities		517.082
Net Current Assets		684.279
MISCELLANEOUS EXPENSES		0.000
TOTAL		2913.427

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6241.160	5696.484	2145.187
		Other Income			12.212
		TOTAL	6241.160	5696.484	2157.399
Less	EXPENSES
		Raw Material Consumed	3983.888	3102.024	727.680
		Personnel Expenses			91.220
		Manufacturing and Other Expenses			630.571
		Increase/ Decrease in Stock			68.615
		TOTAL	3983.888	3102.024	1518.086
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		2257.272	2594.460	639.313
Less	FINANCIAL EXPENSES		73.564	44.093	180.274
	PROFIT BEFORE/(LOSS) TAX, DEPRECIATION AND AMORTISATION		2183.708	2550.367	459.039
Less/ Add	DEPRECIATION/ AMORTISATION		121.540	114.437	107.653
	PROFIT/(LOSS) BEFORE TAXATION AND PRIOR PERIOD ITEMS		2062.168	2435.930	351.386
	PRIOR PERIOD ITEMS		0.000	0.967	(2.987)
	PROFIT/(LOSS) BEFORE TAX		2062.168	2436.897	348.399
Less	TAX		689.497	843.327	71.847
	PROFIT/(LOSS) AFTER TAX		1372.671	1593.570	276.552
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		349.971	208.829	(67.723)
	APPROPRIATIONS
		Transferred to General Reserve	172.264	159.357	--
		Proposed Dividend	1333.245	1112.583	--
		Dividend Distribution Tax	216.286	180.489	--
	BALANCE CARRIED TO THE B/S		0.847	349.971	208.829
	IMPORTS
		Raw Materials	NA	NA	60.832
		Capital Goods	NA	NA	10.279
	TOTAL IMPORTS		NA	NA	71.111
	Earnings Per Share (Rs.)		74.03	85.94	15.08

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	21.99	27.97	12.82
Net Profit Margin (PBT/Sales)	(%)	NA	NA	16.24
Return on Total Assets (PBT/Total Assets}	(%)	39.46	59.29	10.83
Return on Investment (ROI) (PBT/Networth)		1.62	1.68	0.30
Debt Equity Ratio (Total Debt/Networth)		1.30	0.35	1.44
Current Ratio (Current Asset/Current Liability)		0.80	0.76	2.32

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
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	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Short-term Borrowings
Loans and advances from others	5.489	5.500
Total	5.489	5.500

CURRENT MATURITIES OF LONG TERM DEBT

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Current Maturities Of Long Term Debt	0.000	134.389	NA
TOTAL	0.000	134.389	NA

VIEW INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	80005799	23/11/2012 *	1,050,000,000.00	Oriental Bank of Commerce	Fort Branch, Jash Chambers, Ground Floor, Sir P. M. Road, Fort, Mumbai, Maharashtra - 400001, India	B62599691
* Date of charge modification

NOTE

The registered office address has been changed from 43, Ramwadi, Kalbadevi Road, Mumbai – 400 002, Maharashtra, India to Present Address w.e.f. 01.04.2008.

OPERATIONS OF THE COMPANY

During the year, the Company witnessed a satisfactory performance in a challenging operating environment. The availability of raw material and heavy rain falls affected the operations of the Company during 2^nd quarter of the year. The Company witnessed minor decrease in the volume of production but higher realization led to increase in turnover.

THE KEY PERFORMANCES OF THE COMPANY ARE

There is minor decline in production volume. Production decreased by 5.20% from 812465 MT in year 2010-11 to 770252 MT in year 2011-12.

Turnover and other income increased by 9.56% from Rs.5696.484 millions in year 2010-11 to Rs.6241.160 millions in year 2011-12. EBIDTA decreased by 13.00% from Rs.2594.460 millions in year 2010-11 to Rs.2257.272 millions in year 2011-12.

Profit after Tax decreased by 13.86% from Rs.1593.570 millions in year 2010-11 to Rs.1372.671 millions in year 2011-12.

TRADE REFERENCES

· Adhunik Metaliks Limited, Kolkata

· TP Sahu and Sons (Private) Limited, Orissa

FIXED ASSETS

· Land and Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Office Equipment

· Computers

· 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. 61.53
UK Pound	1	Rs. 99.74
Euro	1	Rs. 84.74

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.