MIRA INFORM REPORT

Report Date :

24.10.2013

IDENTIFICATION DETAILS

Name :	RATHI SUPER STEEL LIMITED
Registered Office :	Flat No. S-210, Aditya Plaza, IInd Floor, Plot No. 04, Community Centre, Karkardooma, Delhi - 110092
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.04.1991
Com. Reg. No.:	55-044043
Capital Investment / Paid-up Capital :	Rs. 677.550 Millions
CIN No.: [Company Identification No.]	U74899DL1991PLC044043
TAN No.: [Tax Deduction & Collection Account No.]	DELR09317A
PAN No.: [Permanent Account No.]	AAACRT0182M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Steel and Iron, TMT/Tor Steel Bars.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 6680000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. External borrowing of the company appears to be increasing during financial year 2013. However, profit and sales turnover of the company appears to be fair. Trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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

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: “BB+”
Rating Explanation	Moderate risk of default and high credit risk.
Date	January, 2013

Rating Agency Name	ICRA
Rating	LC & BC Limits: “A4+”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	January, 2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DECLINED

MANAGEMENT NON CO-OPERATIVE (Tel. No.: 91-11-25730841)

LOCATIONS

Registered Office :	Flat No. S-210, Aditya Plaza, IInd Floor, Plot No. 04, Community Centre, Karkardooma, Delhi-110092, India
Tel. No.:	91-11-23730841/ 32992733/ 64719909
Fax No.:	91-11-23730841
E-Mail :	rathisuperdelhi@gmail.com corporateoffice@rathisupersteel.com
Website :	www.rathisupersteel.com
Corporate Office :	A-97, Sector -63, Noida-201301, Uttar Pradesh, India
Tel. No.:	91-120-4059000
Fax No.:	91-120-4059040
Factory :	A-1, Industrial Area, South of G.T. Road, Ghaziabad, Uttar Pradesh, India
Tel. No.:	91-120-2840375 to 78
Fax No.:	91-120-2840373

DIRECTORS

As on 23.09.2013

Name :

Mr. Gaurav Rathi

Designation :

Chairman cum Managing Director

Address :

28, Sadhna Enclave, New Delhi-110017, India

Date of Birth/Age :

15.04.1973

Qualification :

Graduate

Date of Appointment :

16.12.1991

DIN No.:

00005742

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	U74899DL1991PLC044043	RATHI SUPER STEEL LIMITED	Director	16/12/1991	16/12/1991	-	Active	NO
2	U74899DL1993PTC054002	VALENCIA CREDITS PRIVATE LIMITED	Director	10/06/1993	10/06/1993	19/09/2009	Active	NO
3	U27310DL1993PTC054001	GAGAR METALS PRIVATE LIMITED	Director	10/06/1993	10/06/1993	-	Active	NO
4	U65999DL1986PLC023887	RATHI CREDITS LIMITED	Director	07/08/1993	07/08/1993	-	Amalgamated	NO
5	U74899DL1986PTC024483	GAURAV CREDITS PRIVATE LIMITED	Director	30/09/1993	30/09/1993	19/09/2009	Active	NO
6	U74899DL1986PTC024481	FERROUS INVESTMENTS PRIVATE LIMITED	Director	30/09/1993	30/09/1993	-	Active	NO
7	U27101DL2004PLC134231	CONTISTEEL LIMITED	Director	16/08/2004	16/08/2004	-	Active	NO
8	U27106DL2005PTC141836	RATHI PRIVATE LIMITED	Director	18/10/2005	18/10/2005	09/01/2012	Active	NO
9	U67120WB1996PTC137527	PRIMUS CAPITAL PRIVATE LIMITED	Director	31/08/2009	01/09/2006	-	Active	NO
10	L24111RJ1972PLC001847	RATHI INDIA LIMITED	Director	28/09/2007	02/04/2007	10/08/2010	Active	NO
11	U27310DL2007PLC168985	IMPERIUM STEEL LIMITED	Director	04/10/2007	04/10/2007	15/10/2012	Active	NO
12	U51109WB1995PTC074848	RUBION MARKETING PRIVATE LIMITED	Director	31/03/2010	01/09/2009	06/12/2010	Active	NO
13	U40300DL2011PLC213222	IMPERIUM INDUSTRIES LIMITED	Director	01/02/2011	01/02/2011	27/08/2013	Active	NO

Name :

Mr. Yagya Vrat Singh

Designation :

Managing Director

Address :

321, Chipiyana Bujurg, Dadri, Gautam budh Nagar, Noida – 201303, Uttar Pradesh, India

Date of Birth/Age :

01.07.1949

Qualification :

Graduate

Date of Appointment :

01.04.2013

DIN No. :

00007083

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	U74899DL1991PLC044043	RATHI SUPER STEEL LIMITED	Managing director	01/04/2013	27/11/2007	-	Active	NO
2	U27310DL1993PTC054001	GAGAR METALS PRIVATE LIMITED	Director	26/07/2012	06/12/2011	-	Active	NO
3	U74899DL1986PTC024481	FERROUS INVESTMENTS PRIVATE LIMITED	Director	26/07/2012	06/12/2011	-	Active	NO

Name :

Mr. Udit Narayan Jha

Designation :

Director

Address :

608, Ahlcon Apparmeents. Vaishali, Ghaziabad – 201011, Uttar Pradesh, India

Date of Birth/Age :

05.01.1944

Qualification :

Graduate

Date of Appointment :

09.02.2010

DIN No.:

01469584

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	U27101DL2004PLC134231	CONTISTEEL LIMITED	Director	01/03/2012	25/08/2004	-	Active	NO
2	U74899DL1991PLC044043	RATHI SUPER STEEL LIMITED	Director	30/09/2010	09/02/2010	-	Active	NO
3	U40300DL2011PLC213222	IMPERIUM INDUSTRIES LIMITED	Director	01/02/2011	01/02/2011	-	Active	NO

Name :

Amitabha Biswas

Designation :

Additional Director

Address :

44, Southern Avenue, Kolkata – 700029, West Bengal, India

Date of Birth/Age :

02.02.1946

Date of Appointment :

23.09.2013

DIN No. :

06589705

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	U74899DL1991PLC044043	RATHI SUPER STEEL LIMITED	Director	23/09/2013	01/08/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Atul Kumar
Designation :	Secretary
Address :	A-440, First Floor, Defence Colony, New Delhi - 110024, India
Date of Birth/Age :	08.01.1971
Date of Appointment :	24.01.2008
PAN NO. :	AAGBPK1186C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2013

Names of Equity Shareholders	No. of Shares
Valencia Credits Limited (Formerly Known as Gagar Marketing Private Limited), India	2874020
Gagar Metals Private Limited, India	3147060
Ferrous Investments Private Limited (Formerly Known as Gaurav Leasing Private Limited), India	3152447
Deepraj Investments Limited, India	550000
Gaurav Rathi	1787756
K. G. Maheshwari	100
Anurodh Vinimay Private Limited, India	2370000
Daffodil Commotrade Private Limited, India	390000
Jasmine Vintrade Private Limited, India	2570000
Fantastic Vincom Private Limited, India	2958617
Total	19800000

Names of Preference Shareholders	No. of Shares
Primus Capital Private Limited, India	574923
Daffodil Commotrade Private Limited, India	255252
Rubion Marketing Limited, India	961825
Wonder Mercantile Private Limited	940500
Glamour Dealer Private Limited	2063000
Total	4795500

As on 23.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	90.97
Directors or relatives of Directors	9.03
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel and Iron, TMT/Tor Steel Bars.

Products :

Item Code No. (ITC Code)	Product Description
3302	Ingots, Billets, Blooms, TMT Bars, CTD Bars, Wire Roads and Rounds etc.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Dena Bank, Consortium M-36, Connaught Circus, News Delhi - 110001, India

· Karnataka Bank, Mahaveera Circle, Manglore - 575002, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	2258.786	1816.781
Other external commercial borrowings	3.924	6.537
Loans repayable on demand from others	302.444	309.907
SHORT TERM BORROWINGS
Working capital loans from banks	1150.781	970.655
Total	3715.935	3103.880

Banking Relations :	--
Auditors :
Name :	H.G and Company Chartered Accountants
Address :	III-A-49, Nehru Naar, Ghaziabad - 201001, Uttar Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AGBPK1186C
Related Parties :	· Contisteel Limited CIN No.: U27101DL2004PLC134231 · Ferrous Investments Private Limited CIN No.: U74899DL1986PTC024481 · Gagar Metals Private Limited CIN No.: U27310DL1993PTC054001 · Imperium steel Limited CIN No.: U27310DL2007PLC168985 · Primus Capital Private Limited CIN No.: U67120WB1996PTC137527 · Rathi Private Limited CIN No.: U27106DL2005PTC141836 · Rubion Marketing Private Limited CIN No.: U51109WB1995PTC074848

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20080000	Equity Shares	Rs.10/- each	Rs.200.800 Millions
4800000	Preference Shares	Rs.100/- each	Rs. 480.000 Millions
	Total		Rs. 680.800 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19800000	Equity Shares	Rs.10/- each	Rs.198.000 Millions
4795500	Preference Shares	Rs.100/- each	Rs. 479.550 Millions
	Total		Rs. 677.550 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	677.550	377.200	377.200
(b) Reserves & Surplus	991.465	897.378	841.337
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	220.350	220.350
Total Shareholders’ Funds (1) + (2)	1669.015	1494.928	1438.887
(3) Non-Current Liabilities
(a) long-term borrowings	2565.154	2133.225	774.658
(b) Deferred tax liabilities (Net)	91.226	148.176	123.458
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.276	2.172	2.304
Total Non-current Liabilities (3)	2658.656	2283.573	900.420
(4) Current Liabilities
(a) Short term borrowings	1150.781	970.655	962.736
(b) Trade payables	0.000	0.000	0.000
(c) Other current liabilities	338.933	212.197	193.657
(d) Short-term provisions	3.250	18.063	17.897
Total Current Liabilities (4)	1492.964	1200.915	1174.290
TOTAL	5820.635	4979.416	3513.597
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3107.887	1575.168	1444.276
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	128.479	765.148	163.107
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	11.715	11.714	11.715
(e) Other Non-current assets	0.000	0.000	1.664
Total Non-Current Assets	3248.081	2352.030	1620.762
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	692.961	521.530	591.133
(c) Trade receivables	1387.462	1131.002	1064.059
(d) Cash and cash equivalents	40.693	49.766	8.556
(e) Short-term loans and advances	451.438	925.088	229.087
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2572.554	2627.386	1892.835
TOTAL	5820.635	4979.416	3513.597

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	5948.804	5628.801	4989.771
		Other Income	4.680	1.665	1.218
		TOTAL (A)	5953.484	5630.466	4990.989
Less	EXPENSES
		Cost of materials consumed	0.000	0.000	4244.569
		Employee benefit expense	8.606	8.042	8.445
		Other expenses	5493.295	4972.861	410.350
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(272.990)	142.757	(157.153)
		Exceptional items	(0.141)	0.052	(0.257)
		TOTAL (B)	5228.770	5123.712	4505.954
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		724.714	506.754	485.035
Less	FINANCIAL EXPENSES (D)		331.823	205.360	194.297
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		392.891	301.394	290.738
Less/ Add	DEPRECIATION/ AMORTISATION (F)		342.407	195.977	164.172
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		50.484	105.417	126.566
Less	TAX (H)		(44.719)	47.930	42.087
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		95.203	57.487	84.479
	Earnings / (Loss) Per Share (Rs.)		4.81	2.94	1.51

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.60	1.02	1.69
Net Profit Margin (PBT/Sales)	(%)	0.85	1.87	2.54
Return on Total Assets (PBT/Total Assets}	(%)	0.89	2.50	3.78
Return on Investment (ROI) (PBT/Networth)		0.03	0.07	0.09
Debt Equity Ratio (Total Debt/Networth)		2.23	2.08	1.21
Current Ratio (Current Asset/Current Liability)		1.72	2.19	1.61

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10207146	15/02/2010	1,533,904.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA - 700046, WEST BENGAL, INDIA	A80701089
2	80006778	24/11/2012 *	4,807,060,000.00	DENA BANK	M-36,, CONNAUGHT CIRCUS, NEW DELHI - 110001, INDIA	B64169428

*Date of Charge Modification

NOTE

The registered office of the company has been shifted from 909, Chiranjeev Tower, 43, Nehru Place, New Delhi – 110019, India to the present address w.e.f. 24.07.2007.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Bank Guarantee	27.288	27.651
Show Cause Notices from Excise Deptt. pending for adjudication	1.763	40.413
Demand from Excise Deptt. & stayed by CESTAT	45.858	7.209
Sales tax additional demand not acknowledged as liability	280.511	279.251
Suit filed in labour cases, not acknowledged as liability	0.530	0.530
Surcharge on 17% deduction from power bills stayed by Hon'ble High Court	3.559	3.559

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· 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.99.75
Euro	1	Rs.84.75

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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		42

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.