MIRA INFORM REPORT

Report Date :

01.04.2014

IDENTIFICATION DETAILS

Name :	BALBIR METALS AND POWER PRIVATE LIMITED
Registered Office :	Office No.423, Nav Vyapar Bhavan, P. Dmello Road, Carnac Bunder, Masjid (East), Mumbai – 400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.01.2004
Com. Reg. No.:	11-166989
Capital Investment / Paid-up Capital :	Rs. 29.800 Millions
CIN No.: [Company Identification No.]	U27310MH2007PTC166989
TAN No.: [Tax Deduction & Collection Account No.]	MUMB17216D
PAN No.: [Permanent Account No.]	AADCB0452D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of all type of TMT Steel Bar, TMT Steel Bar, etc.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (44)

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

Maximum Credit Limit :	USD 580000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company possesses an acceptable financial profile marked by moderate networth base whereas, the working capital intensive operations leading to increase in short term borrowings may affect the liquidity position. Management has reported a significant dip in its net profitability during 2013, following slowdown in demand from the construction and engineering sectors. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of extensive experience of the group’s promoters, the subject can be considered 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “BB+”
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligations.
Date	13.01.2014

Rating Agency Name	CRISIL
Rating	Short term rating: “A4+”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	13.01.2014

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Mob. No.: 91-9322481812)

LOCATIONS

Registered Office :	Office No.423, Nav Vyapar Bhavan, P. Dmello Road, Carnac Bunder, Masjid (East), Mumbai – 400009, Maharashtra, India
Tel. No. :	Not Available
Fax No. :	Not Available
E-Mail :	wise6970@gmail.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Vikas Bhushan

Designation :

Director

Address :

901, Cliff Towers, Mount Mary Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

04.07.1969

Date of Appointment :

12.01.2007

PAN No.:

AFCPB4882J

DIN No. :

00144455

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	U27101MH1997PTC193860	MATHURA STRIPS PRIVATE LIMITED	Director	06/04/1998	06/04/1998	-	Active	NO
2	U27106MH1997PLC191941	BALBIR ROLLING MILLS LIMITED	Whole-time director	01/10/2011	22/12/2000	-	Active	NO
3	U21029GA2003PTC003284	GURUKRUPA STEEL AND ROLLING MILLS PRIVATE LIMITED	Director	15/06/2006	15/06/2006	13/08/2012	Active	NO
4	U27310MH2007PTC166989	BALBIR METALS AND POWER PRIVATE LIMITED	Director	12/01/2007	12/01/2007	-	Active	NO
5	U65920MH1995PTC095093	HAVELI FINANCE Private Limited	Director	16/07/2007	20/03/2007	-	Active	NO
6	U25203MH2007NPL171991	THERMEX REBAR MANUFACTURERS' ASSOCIATION	Director	25/06/2007	25/06/2007	22/09/2007	Active	NO
7	U40102MH2007PTC174729	BALBIR POWER PRIVATE LIMITED	Director	04/10/2007	04/10/2007	01/12/2008	Active	NO
8	U28112MH2010PTC211691	V B STEEL PRIVATE LIMITED	Director	31/12/2010	31/12/2010	-	Active	NO
9	U29142MH1999PTC122521	BALBIR PROFILES PRIVATE LIMITED	Director	10/09/2011	03/01/2011	-	Active	NO
10	U55204MH2011PTC212736	NEETIKA HOTEL AND RESTAURANT PRIVATE LIMITED	Director	27/01/2011	27/01/2011	-	Active	NO
11	U28910MH2011PTC212735	BALBIR STRUCTURE PRIVATE LIMITED	Director	27/01/2011	27/01/2011	-	Active	NO
12	U28910MH2011PTC214161	AKARSH STEEL ENTERPRISES PRIVATE LIMITED	Director	28/02/2011	28/02/2011	-	Active	NO
13	U28112MH2012PTC235791	BALBIR STEEL ROLLING PRIVATE LIMITED	Director	14/09/2012	14/09/2012	-	Active	NO
14	U28113MH2013PTC241964	BALBIR INGOT PRIVATE LIMITED	Director	17/04/2013	17/04/2013	-	Active	NO

Name :

Mr. Rakesh Kumar Sharma

Designation :

Additional Director

Address :

C-14-103, Madhav Srushti, Near Godrej Hill, Kalyan – 421301, Maharashtra, India

Date of Birth/Age :

06.09.1951

Date of Appointment :

01.11.2011

DIN No. :

01545079

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	U27310UP1987PTC008947	BALBIR STEELS PRIVATE LIMITED	Director	25/08/1987	25/08/1987	06/08/2012	Active	NO
2	U27104MH1991PTC191940	BALBIR ALLOYS PRIVATE LIMITED	Director	29/09/2007	19/03/2007	-	Active	NO
3	U29142MH1999PTC122521	BALBIR PROFILES PRIVATE LIMITED	Director	28/09/2007	19/03/2007	-	Active	NO
4	U27107MH2007PTC173295	BALBIR ISPAT PRIVATE LIMITED	Director	20/08/2007	20/08/2007	10/02/2009	Active	NO
5	U27310MH2007PTC166989	BALBIR METALS AND POWER PRIVATE LIMITED	Director	01/11/2011	01/11/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Vikas Bhushan	220000
Nalini Bhushan	260000
Balbir Alloys Private Limited, India	380000
Balbir Rolling Mills Limited, India	430000
Balbir Profile Private Limited, India	455000
Gurukrupa Steel and Rolling Mills Private Limited, India	385000
Alembic Securities Private Limited, India	50000
Alpha Chemie Trade Agencies Private Limited, India	20000
Buniyad Chemicals Limited, India	30000
Mihir Agencies Private Limited, India	65000
Talent Infoway Limited, India	40000
Luxer Properties Private Limited, India	50000
Haveli Finance Private Limited, India	50000
Balbir Structure Private Limited, India	545000
Total	2980000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	83.89
Directors or relatives of Directors	16.11
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of all type of TMT Steel Bar, TMT Steel Bar, etc.

Products :

Item Code No. (ITC Code)	Product Description
72165000	Mild Steel Structures

· Thermax TMT Bars

· Reinforced Bars

· Deformed Steel Bars

· Round Bars

· Mild Steel Angles

· Mild Steel Channels

· Mild Steel I. Beam

· Mild Steel H. Beam

· Billets, etc.

GENERAL INFORMATION

No. of Employees :

Not Divugled

Bankers :

Union Bank of India, Kapurbavdi Branch, Dhanlaxmi Industrial Estate, Gokul Nagar, Old Agra Road, Thane - 400601, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital loans from banks (Secured against Mortgage of factory land, buildings, plant and machinery and investment property of the Company and hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares, book debts and receivables, etc.)	135.021	133.826
Total	135.021	133.826

Banking Relations :	--
Auditors :
Name :	Kamal Kumar and Associates Chartered Accountants
Address :	Shop No. 18, Block No. 1, Emerald Plaza, Hiranandani Meadows, Thane – 400610, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAXPK6869J

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions
	Total		Rs. Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,980,000	Equity Shares	Rs.10/- each	Rs. 29.800 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	29.800	29.800	29.300
(b) Reserves & Surplus	116.379	116.161	103.159
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	146.179	145.961	132.459
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	1.285
(b) Deferred tax liabilities (Net)	6.746	5.649	5.932
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	6.746	5.649	7.217
(4) Current Liabilities
(a) Short term borrowings	135.021	133.826	113.252
(b) Trade payables	4.149	10.338	13.454
(c) Other current liabilities	9.308	8.053	8.262
(d) Short-term provisions	0.892	0.483	0.574
Total Current Liabilities (4)	149.370	152.700	135.542
TOTAL	302.295	304.310	275.218
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	57.728	55.153	62.340
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	9.874	5.327	1.848
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.555	0.555	0.555
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	6.324	0.000	0.052
Total Non-Current Assets	74.481	61.035	64.795
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	99.869	112.069	102.347
(c) Trade receivables	98.870	77.729	58.901
(d) Cash and cash equivalents	12.444	20.467	20.465
(e) Short-term loans and advances	15.797	33.010	27.188
(f) Other current assets	0.834	0.000	1.522
Total Current Assets	227.814	243.275	210.423
TOTAL	302.295	304.310	275.218

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		TOTAL (A)	1226.251	1209.215	837.779
Less	EXPENSES
		TOTAL (B)	1203.707	1186.055	814.408
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22.544	23.160	23.371
Less	FINANCIAL EXPENSES (D)		17.061	14.406	10.247
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.483	8.754	13.124
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.830	7.293	3.769
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1.653	1.461	9.355
Less	TAX (H)		1.435	0.460	2.820
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.218	1.001	6.535
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		20.461	19.460	12.925
	BALANCE CARRIED TO THE B/S		20.679	20.461	19.460
	Earnings / (Loss) Per Share (Rs.)		0.07	0.34	2.23

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.02	0.08	0.78
Net Profit Margin (PBT/Sales)	(%)	0.57	0.49	3.43
Return on Total Assets (PBT/Total Assets}	(%)	0.01	0.01	0.07
Return on Investment (ROI) (PBT/Networth)		0.92	0.92	0.86
Debt Equity Ratio (Total Debt/Networth)		1.53	1.59	1.55
		0.57	0.49	3.43
Current Ratio (Current Asset/Current Liability)

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	29.300	29.800	29.800
Reserves & Surplus	103.159	116.161	116.379
Net worth	132.459	145.961	146.179
long-term borrowings	1.285	0.000	0.000
Short term borrowings	113.252	133.826	135.021
Total borrowings	114.537	133.826	135.021
Debt/Equity ratio	0.865	0.917	0.924

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	837.779	1209.215	1226.251
		44.336	1.409

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	837.779	1209.215	1226.251
Profit	6.535	1.001	0.218
	0.78%	0.08%	0.02%

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	No
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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10156409	06/04/2009	100,000,000.00	UNION BANK OF INDIA	KAPURBAVDI BRANCH, DHANLAXMI INDUSTRIAL ESTATE, GOKUL NAGAR, OLD AGRA ROAD, THANE (WEST), THANE - 400601, MAHARASHTRA, INDIA	A61649638
2	10082049	17/05/2012 *	57,500,000.00	UNION BANK OF INDIA	KAPURBAVDI BRANCH, DHANLAXMI INDUSTRIAL ESTATE, GOKUL NAGAR, OLD AGRA ROAD, THANE (WEST), THANE - 400601, MAHARASHTRA, INDIA	B41169251
3	10080545	17/05/2012 *	105,000,000.00	UNION BANK OF INDIA	KAPURBAVDI BRANCH, DHANLAXMI INDUSTRIAL ESTATE, GOKUL NAGAR, OLD AGRA ROAD, THANE (WEST), THANE - 400601, MAHARASHTRA, INDIA	B41295239
4	10050902	17/05/2012 *	50,000,000.00	UNION BANK OF INDIA	KAPURBAVDI BRANCH, DHANLAXMI INDUSTRIAL ESTATE, GOKUL NAGAR, OLD AGRA ROAD, THANE (WEST), THANE - 400601, MAHARASHTRA, INDIA	B41132119
5	10050903	17/05/2012 *	100,000,000.00	UNION BANK OF INDIA	KAPURBAVDI BRANCH, DHANLAXMI INDUSTRIAL ESTATE, GOKUL NAGAR, OLD AGRA ROAD, THANE (WEST), THANE - 400601, MAHARASHTRA, INDIA	B41129701

* Date of charge modification

CHANGE OF ADDRESS

The registered office of the company has been shifted from 207, Steel Centre Ahmedabad Street, Carnac Bunder Masjid (East), Mumbai – 400009, Maharashtra, India to the present address w.e.f. 01.03.2012.

PERFORMANCE

The company has achieved turnover of Rs.1226.251 Millions (net of Interdivisional transfers). The Net profit after Tax stood at Rs.0.218 Million for FY 2012-13 as compared to Rs.1.001 Millions for FY 2011-12.

The management has proposed for direct rolling of semi-finished steel produced by the furnace division In rolling division. For this purpose, additional capital outlay of Rs.12.500 Millions is envisaged for additional machinery and equipments in furnace division. The additional capital outlay will be fully financed by surplus capital and internal cash accruals already available with the company. The Board of directors has already approved allocation of adjacent empty open land held by the rolling division to the furnace division for installation of additional machinery and equipment for this purpose and no additional space is required by either furnace unit or rolling unit.

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipment’s

· Other Equipment’s

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.60.10
UK Pound	1	Rs.99.85
Euro	1	Rs.82.58

INFORMATION DETAILS

Information Gathered by :	PRT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.