MIRA INFORM REPORT

Report Date :

20.09.2013

IDENTIFICATION DETAILS

Name :	KOTHARI METALS LIMITED
Registered Office :	Kothari Mansion, Ground Floor, 20/1, Belvedere Road, Kolkata – 700027, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.06.1977
Com. Reg. No.:	21-031033
Capital Investment / Paid-up Capital :	Rs.27.597 Millions
CIN No.: [Company Identification No.]	U28113WB1977PLC031033
TAN No.: [Tax Deduction & Collection Account No.]	CALK01203G
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Importer and Supplier of Non – Ferrous Metal and Ferro Alloys.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 2900000
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 current year. However, trade relations are 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.

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.

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. Dinesh
Designation :	Accountant
Contact No.:	91-9322260696

LOCATIONS

Registered Office/ Head Office :	Kothari Mansion, Ground Floor, 20/1, Belvedere Road, Kolkata - 700027, West Bengal, India
Tel. No.:	91-33-24566921/ 22 / 40220700 (30 lines) / 22828532/ 22828534/ 22827949/ 22823808
Mobile No.:	91-9322260696 (Mr. Dinesh)
Fax No.:	91-33-24566923 / 22828462
E-Mail :	headoffice@kotharimetals.in vikashji@cal2vsnl.net.in mumbai@kotharimetals.in gurgaon@kotharimetals.in delhi@kotharimetals.in chennai@kotharimetals.in
Website :	http://www.kotharimetal.com
Location :	Owned
Ware House :	9, Transport Depot Road, Kolkata – 700 088, West Bengal, India
Area :	5000 Sq. ft.
Location :	Owned
Branch Office 1 :	S.C.O. No. F-81, Sector - 22, At Palam Vihar Road, Gurgaon – 122 001 Haryana, India
Tel. No.:	91-124-4010524 / 4010526 / 3296660
Fax No.:	91-124-4010525
Area :	20000 Sq. ft.
Location :	Leased
Branch Office 2:	Shed No. S-8A, Telco Industrial Estate, Madhavaram, Chennai – 600 060, Tamilnadu, India
Tel. No.:	91-44-25590200 / 2559021
Fax No.:	91-44-25233129
Area :	18000 Sq. ft.
Location :	Leased
Branch Office 3:	1252, Pushpanjali apartment, 6th Floor, Suite no.602, Old Prabhadevi Road, Prabhadevi. Mumbai – 400 025, Maharashtra, India
Tel. No.:	91-22-24371957 / 24313104
Mobile No.:	91-9322260696
Fax No.:	91-22-66669302
Area :	16000 Sq. ft.
Location :	Leased
Branch Office 4 :	B 6/7, Okhla Industrial Area, Phase –II, New Delhi – 110 020, India
Tel. No.:	91-11-41707897 / 32564679 / 40502991 / 40502992
Mobile No.:	91-9810064679
Fax No.:	91-11-41001530
Area :	20000 Sq. ft.
Location :	Leased
Branch Office 5 :	G. T. Road, Focal Point, Ludhiana -141 010, Punjab, India
Tel. No.:	91-161-2510240 / 3265196
Fax No.:	91-161-2510241
E-Mail :	ludhiana@kotharimetals.in
Branch Office 6 :	Plot No. 181, Sub Plot No. 20 & 21, Near Bhamaria Kunwa, Narol Aslali Highwa, NIDC, NAROL,  Ahmedabad -382405
Tel. No.:	91-79-32408211
Fax No.:	91-79-25734378
E-Mail :	ahmedabad@kotharimetals.com
Branch Office 7 :	No. B-315, 9th Cross , 1st Stage, Peenya Industrial Area, Bengaluru - 560 058, Karnataka, India
Tel. No.:	91-80-32503777
E-Mail :	Bangalore@kotharimetals.com
Branch Office 8:	L-26 & 27, MIDC Industrial Area, Taloja- 410208, Maharashtra, India
Tel. No.:	91-22-27401452/53/54
Mobile No.:	91-9322260696
Fax No.:	91-22-27401455
E-Mail :	Mumbai@kotharimetals.in
Branch Office 9 :	149, Shopping Complex, Behind Rahat Hospital, Alwar, Biwadi – 301019, Rajasthan, India
Tel. No.:	91-124-3296660
Fax No.:	91-124-4010525
E-Mail :	bhiwadi@kotharimetals.in
Branch Office :	Also Located at Jamshedpur Raigarh Haridwar

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Ranjit Singh Kothari

Designation :

Director

Address :

3, Alipore Road, Kolkata – 700 017, West Bengal, India

Date of Birth/Age :

07.10.1950

Qualification :

B. Com.

Date of Appointment :

06.06.1977

PAN No.:

AFVPK4521L

DIN No.:

00217182

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28113WB1977PLC031033	Kothari Metals Limited	Director	06-06-77	06-06-77	-	Active	NO
2	U27109WB1986PTC041029	Kothari Metal Resourses Private Limited	Director	30-07-86	30-07-86	-	Active	NO
3	U70101WB1989PTC046918	Kothari Magnesium Industries Private Limited	Director	15-07-99	15-07-99	-	Active	NO
4	U70101WB2005PTC104368	B.K. Nirman Private Limited	Director	19-09-05	19-09-05	-	Active	NO

Name :

Mr. Vikash Kothari

Designation :

Director

Address :

3, Alipore Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

11.12.1973

Qualification :

M.Sc.

Date of Appointment :

28.09.1994

PAN No.:

ALEPK9600P

DIN No.:

00217327

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U28113WB1977PLC031033	Kothari Metals Limited	Director	28-09-94	28-09-94	-	Active	NO
2	U27109WB1986PTC041029	Kothari Metal Resourses Private Limited	Director	02-01-96	02-01-96	-	Active	NO
3	U70101WB2005PTC104368	B.K.Nirman Private Limited	Director	26-07-05	26-07-05	-	Active	NO
4	U70101WB1989PTC046918	Kothari Magnesium Industries Private Limited	Director	14-03-06	14-03-06	-	Active	NO
5	U70101WB1991PTC053034	Calcutta Multimax Private Limited	Additional director	19-08-08	19-08-08	-	Active	NO
6	U51909WB2006PTC112094	Agrasen Enterprises Private Limited	Director	02-01-09	02-01-09	-	Amalgamated	NO
7	U51109WB2007PTC112370	Fasten Tradecom Private Limited	Director	02-01-09	02-01-09	-	Amalgamated	NO

Name :

Mrs. Shalini Kothari

Designation :

Director

Address :

3, Alipore Road, Kolkata – 700 027, West Bengal, India

Date of Birth/Age :

27.08.1975

Qualification :

B.Com

Date of Appointment :

14.03.2006

PAN No.:

AFVPK6059G

DIN No.:

00217697

KEY EXECUTIVES

Name :	Mr. Dinesh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Ranjit Singh Kothari	620296
Sayar Devi Kothari	85010
Kothari Metal Resources Private Limited, India	162866
Vikash Kothari	125597
Calcutta Multimax Private Limited, India	274742
Kothari \ Surana Hansraj [Shalini and Pragati]	3500
Ranjit Singh Kothari Vikash	17500
Kothari Devi Sayar Vikash	4010
Kothari Vikash	145500
Ranjit Singh Kothari	151100
Ranjit Singh Kothari Sayar Devi	170000
Kothari Shalini and Vikash	40000
Ranjit Singh Kothari (HUF)	176566
Vikash Kothari (HUF)	39500
Surana Pragati	54000
Kothari Magnesium Industries Private Limited, India	340800
Kothari Commercial Corporation, India	98676
Kothari Unnati	40000
Kothari Vikash and Shalini	5000
Kothari Devi Sayar and Shalini	5000
Kothari Shalini	200000
TOTAL	2759663

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Importer and Supplier of Non – Ferrous Metal and Ferro Alloys.
Products :	Manganese Metal Silicon Metal Magnesium Metal Antimony Metal Bismuth Metal Pure Nickel Copper Tin Ingot Ferro Molly Ferro Silicon Ferro Silico Magnesium Misch Metal Calcium Silicide Chromium

GENERAL INFORMATION

No. of Employees :	80 (Approximately)
Bankers :	Citibank N.A, Kanak Building, 41, Chowringhee Road, Kolkata – 700071, West Bengal, India Tel No.: 91-33-22832484 Axis Bank Limited
Facilities :	--

Banking Relations :	--
Auditors :
Name :	S. M. Daga and Company Chartered Accountants
Address :	11, Clive Row, 2^nd Floor, Kolkata- 700001, West Bengal, India
PAN.:	AATFS3134N
Associates :	Calcutta Multimax Private Limited, India CIN: U70101WB1991PTC053034 Address: 7/1, lord Sinha Road, Kolkata- 700071, West Bengal, India Line of Business: Trading Kothari Commercial Corporation Address: 7/1, lord Sinha Road, Kolkata- 700071, West Bengal, India Line of Business: Trading Kothari Metal Resources Private Limited, India CIN: U27109WB1986PTC041029 Address: 7/1, lord Sinha Road, Kolkata- 700071, West Bengal, India Line of Business: Metal and Alloys Kothari Magnesium Industries Private Limited, India CIN: U70101WB1989PTC046918 B.K. Nirman Private Limited, India CIN: U70101WB2005PTC104368

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
56000000	Equity Shares	Rs.10/- each	Rs.56.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2759663	Equity Shares	Rs.10/- each	Rs.27.597 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	27.597	27.597
(b) Reserves & Surplus	699.240	639.845
(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)	726.837	667.442
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	7.692	6.424
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	7.692	6.424
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	966.913	873.882
(c) Other current liabilities	36.901	28.470
(d) Short-term provisions	68.099	89.490
Total Current Liabilities (4)	1071.913	991.842
TOTAL	1806.442	1665.708
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	127.728	90.388
(ii) Intangible Assets	1.379	1.762
(iii) Capital work-in-progress	0.000	2.370
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	4.888	4.888
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	2.103	2.105
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	136.098	101.513
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	339.623	400.149
(c) Trade receivables	938.241	798.585
(d) Cash and cash equivalents	269.264	234.640
(e) Short-term loans and advances	23.460	44.159
(f) Other current assets	99.756	86.662
Total Current Assets	1670.344	1564.195
TOTAL	1806.442	1665.708

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		27.597
2] Share Application Money		0.000
3] Reserves & Surplus		546.747
4] (Accumulated Losses)		0.000
NETWORTH		574.344
LOAN FUNDS
1] Secured Loans		81.137
2] Unsecured Loans		0.000
TOTAL BORROWING		81.137
DEFERRED TAX LIABILITIES		5.851
TOTAL		661.332
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		91.878
Capital work-in-progress		0.000
INVESTMENT		0.908
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	160.957
	Sundry Debtors	663.707
	Cash & Bank Balances	158.660
	Other Current Assets	0.000
	Loans & Advances	194.726
Total Current Assets		1178.050
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	477.954
	Other Current Liabilities	17.450
	Provisions	114.100
Total Current Liabilities		609.504
Net Current Assets		568.546
MISCELLANEOUS EXPENSES		0.000
TOTAL		661.332

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	6980.134	5892.187	4050.966
		Other Income	27.633	24.914	23.182
		TOTAL (A)	7007.767	5917.101	4074.148
Less	EXPENSES
		Purchases of Stock in trade	6752.860	5904.451
		Changes in inventories of finished goods, Work in Progress and Stock in trade	60.526	(239.192)
		Employee related costs	15.329	12.446
		Other expenses	80.398	88.988
		TOTAL (B)	6909.113	5766.693	3959.661
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		98.654	150.208	114.487
Less	FINANCIAL EXPENSES (D)		3.824	2.984	2.676
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		94.830	147.224	111.811
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.559	3.544	3.086
	PROFIT BEFORE TAX (E-F) (G)		90.271	143.678	108.725
Less	TAX (H)		30.560	50.264	40.205
	PROFIT AFTER TAX (G-H) (I)		59.712	93.414	68.520
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		347.942	254.628	186.207
Less	APPROPRIATIONS		0.100	0.100	0.100
		Transfer to General Reserve	407.554	347.942	254.628
	BALANCE CARRIED TO THE B/S
	IMPORTS
		Raw Materials	NA	NA	3093.596
	TOTAL IMPORTS		NA	NA	3093.596
	Earnings Per Share (Rs.)		21.64	33.85	24.82

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.85	1.58	1.68
Net Profit Margin (PBT/Sales)	(%)	1.29	2.44	2.68
Return on Total Assets (PBT/Total Assets}	(%)	5.01	8.65	8.56
Return on Investment (ROI) (PBT/Networth)		0.12	0.22	0.19
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.14
Current Ratio (Current Asset/Current Liability)		1.56	1.58	1.93

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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Note: Registered office address of the company has been shifted from 7/1, Lord Sinha Road, Kolkata – 700071, West Bengal, India to the present address w.e.f. 27.02.2009

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10429497	26/04/2013	200,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH (CBB), 1, SHAKESPEARE S ARANI, AC MARKET, 3RD FLOOR, KOLKATA, WEST BENGAL - 700071, INDIA	B76482256
2	10354096	03/05/2012	300,000,000.00	CITIBANK N.A	KANAK BUILDING, 41 CHOWRINGHEE ROAD, KOLKATA, WEST BENGAL - 700071, INDIA	B39095716
3	10259877	03/05/2012 *	300,000,000.00	CITIBANK N.A	KANAK BUILDING, 41 CHOWRINGHEE ROAD, KOLKATA, WEST BENGAL - 700071, INDIA	B40476418
4	10050100	06/09/2011 *	240,000,000.00	BANK OF INDIA	KOLKATA MID CORPORATE BRANCH, 5, B.T.M. SARANI, KOLKATA, WEST BENGAL - 700001, INDIA	B20240545
5	80020787	19/01/2009 *	195,000,000.00	ORIENTAL BANK OF COMMERCE	OVERSEAS BRANCH, (LORD'S BUILDING), 7/1, LORD SIN HA ROAD, (GROUND FLOOR), KOLKATA, WEST BENGAL - 70 0071, INDIA	A55632996
6	90252190	28/11/2006 *	60,000,000.00	STATE BANK OF SAURASHTRA	BHOWANIPUR BRANCH, 1A, ASHUTOSH MUKHERJEE ROAD, KOLKATA, WEST BENGAL - 700020, INDIA	-
7	90251577	20/01/2011 *	505,000,000.00	ANDHRA BANK	CHOWRINGHEE BRANCH, 58, CHOWRINGHEE ROAD, KOLKATA , WEST BENGAL - 700071, INDIA	B06661359

Note: * Date of charge modification

FIXED ASSETS:

Tangible assets

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

Intangible assets

• Computer software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.75
UK Pound	1	Rs.99.56
Euro	1	Rs.83.55

INFORMATION DETAILS

Report Prepared by :

KVT

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	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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		47

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.