MIRA INFORM REPORT

Report Date :

07.04.2014

IDENTIFICATION DETAILS

Name :	DWEKAM ELECTRODES PRIVATE LIMITED (w.e.f.13.12.2006)
Formerly Known As :	DWEKAM ELECTRODES LIMITED (w.e.f. 22.07.1994) DWEKAM ELECTRODES PRIVATE LIMITED
Registered Office :	Village Talawali Chanda, A. B. Road, Mangliya, Indore - 452001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.12.1980
Com. Reg. No.:	10-001704
Capital Investment / Paid-up Capital :	Rs.43.901 Millions
CIN No.: [Company Identification No.]	U31102MP1980PTC001704
TAN No.: [Tax Deduction & Collection Account No.]	BPLD01654C/ BPLD03367A
PAN No.: [Permanent Account No.]	AABCD1492M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Welding Consumables.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 560000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Company has incurred loss from its operation in the year 2013. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

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.

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 (GENERAL DETAILS)

Name :	Mr. Vinod Khandelwal
Designation :	Accounts Executive
Contact No.:	91-731-4021490
Date :	02.04.2014

LOCATIONS

Registered Office/ Factory :	Village Talawali Chanda, A. B. Road, Mangliya, Indore - 452001, Madhya Pradesh, India
Tel. No.:	91-731-4021490 / 4024356 / 2802222 / 5021492
Fax No.:	91-731-4021441 / 4021442 / 50211491
E-Mail :	nsp4u.2007@rediffmail.com indoreoffice@dwekam.org dwekam@sancharnet.in
Website :	http://www.dwekam.com
Location :	Owned
Locality :	Commercial
Head Office :	402,Dalamal Chambers, 29 New Marine Lines, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-2081822 /25 / 2000287 / 2062219 / 40409191
Fax No.:	91-22-2038629
E-Mail :	del@hathway.com
Corporate Office :	301/302 Industry House 3rd Floor, 15 Old Palasia, A. B. Road, Indore – 452018, Madhya Pradesh, India
Tel No.:	91-731-2545664,2545785
Fax No.:	91-731-2432776
Email :	ahmsi@sancharnet.in
Branch Office :	Located at: Mumbai Chennai Kolkata Ahmedabad Lucknow Secunderabad Pune New Delhi

DIRECTORS

As on 30.09.2013

Name :

Mr. Ashutosh Ashokkumar Maheshwari

Designation :

Whole Time Director

Address :

Shripad, 2, Y. N. Road, Indore - 452003, Madhya Pradesh, India

Date of Birth/Age :

23.04.1973

Date of Appointment :

01.07.1994

DIN No.:

00094262

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	L15143MH1994PLC164344	SAM INDUSTRIES LIMITED	Director	17/02/1994	17/02/1994	-	Active	NO
2	U31102MP1980PTC001704	DWEKAM ELECTRODES Private LTD	Whole-time director	01/07/1994	01/07/1994	-	Active	NO
3	U31300MH1987PTC043769	DWEKAM WELD-TECH Private Limited	Whole-time director	15/10/2010	17/07/2006	-	Active	NO
4	L21015MP1980PLC001663	DWEKAM INDUSTRIES LIMITED	Director	23/04/2007	23/04/2007	-	Active	NO
5	U70109MH2007PTC173069	ANISHA REALTY PRIVATE LIMITED	Director	13/08/2007	13/08/2007	-	Active	NO
6	U45400MH2007PTC176128	DWEKAM REALTY PRIVATE LIMITED	Director	23/11/2007	23/11/2007	-	Active	NO
7	U70102MH2007PTC176127	D&H SECHERON REALTY PRIVATE LIMITED	Director	23/11/2007	23/11/2007	-	Active	NO
8	U45203MH2008PTC184216	D & H SECHERON INFRASTRUCTURE PRIVATE LIMITED	Director	02/07/2008	02/07/2008	15/12/2010	Active	NO
9	U74990MH2008PTC184519	ELTECH MACHINES PRIVATE LIMITED	Director	10/07/2008	10/07/2008	-	Strike off	NO
10	U51109MH2008PTC181751	SPARTACUS RETAIL PRIVATE LIMITED	Director	20/12/2008	20/12/2008	19/07/2012	Strike off	NO
11	U52393MH2008PTC180347	DIMONTE RETAIL PRIVATE LIMITED	Director	20/12/2008	20/12/2008	01/10/2012	Active	NO
12	U52590MH2008PTC181670	WEEKEND RETAIL PRIVATE LIMITED	Director	20/12/2008	20/12/2008	19/07/2012	Strike off	NO
13	U15143MH1994PTC179433	D & H SECHERON INDUSTRIES PRIVATE LTD	Director	14/08/2010	14/08/2010	25/03/2013	Active	NO
14	U51900MH1986PTC041901	D AND H SECHERON IMPEX PRIVATE LIMITED	Director	14/08/2010	14/08/2010	-	Active	NO
15	U70101MH2003PTC140725	D&H SECHERON PROJECTS PRIVATE LIMITED	Director	13/07/2013	06/05/2013	-	Active	NO
16	U14200MH2004PTC144883	D&H SECHERON RESOURCES PRIVATE LIMITED	Director	13/07/2013	30/05/2013	-	Active	NO
17	AAB-6817	MANAPA PROJECT DEVELOPERS LLP	Designated Partner	30/07/2013	30/07/2013	-	Active	NO

Name :

Mr. Kishore Kale

Designation :

Whole Time Director

Address :

K-110, Janata LIG, Choti Khajrani, Indore - 452008, Madhya Pradesh, India

Date of Birth/Age :

03.09.1953

Date of Appointment :

01.05.2002

DIN No.:

01743556

Name :

Mr. Somnath Chakravarty

Designation :

Whole Time Director

Address :

49 Royal Bunglow, Nipania, Indore – 452016, Madhya Pradesh, India

Date of Appointment :

01.04.2010

DIN No.:

02965487

MAJOR SHAREHOLDERS

As on 30.09.2013

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Bodies corporate	99.85
Directors or relatives of Directors	0.15
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Welding Consumables.

Products :

Product Description	ITC Code
Welding Electrodes, Wire and Flux Filler Wire, Co2 Wire	08311

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

No. of Employees :

600 (Approximately)

Bankers :

• State Bank of Indore, Industrial Finance Branch, Khel Prashal, Race Course Road, Indore - 452003, Madhya Pradesh, India
• Bank of India, Indore
• HDFC Bank Limited

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
State Bank of India	0.000	10.000
HDFC Bank Car Loan (Vinto)	0.129	0.413
Fullerton India Credit Company Limited	69.150	0.000
JM Finance Service Limited	24.305	32.301
Short Term Borrowings
State Bank of India CC Unit	0.000	65.314
Total	93.584	108.028

Banking Relations :	--
Financial Institutions :	Fullerton India Credit Company Limited, Megh Towers, Third Floor, Old No-307, New No-165, Poonamallee High Road, Maduravoyal, Chennai - 600095, Tamil Nadu, India
Auditors :
Name :	M Mehta and Company Chartered Accountants
Address :	11/5, South Tukoganj, Nath Mandir Orad, Indore – 452001, Madhya Pradesh, India
PAN No.:	AAGFM2167A
Associate Companies :	Sam Industries Limited Swakam Weldtech Private Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions
300000	12% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.30.000 Millions
	Total		Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1943870	Equity Shares	Rs.10/- each	Rs.19.439 Millions
250520	12% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.25.052 Millions
	Total		Rs.44.491 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions
300000	12% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.30.000 Millions
	Total		Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1848180	Equity Share	Rs.10/- Each	Rs.18.849 Millions
	Forfeited share account		Rs.0.295 Million
250520	12% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.25.052 Millions
	Total		Rs.44.196 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	44.196	44.196	44.196
(b) Reserves & Surplus	96.300	126.424	147.206
(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)	140.496	170.620	191.402
(3) Non-Current Liabilities
(a) long-term borrowings	116.096	54.258	51.774
(b) Deferred tax liabilities (Net)	0.000	0.000	2.969
(c) Other long term liabilities	0.095	0.095	0.095
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	116.191	54.353	54.838
(4) Current Liabilities
(a) Short term borrowings	4.329	73.949	76.908
(b) Trade payables	32.817	55.979	47.951
(c) Other current liabilities	27.155	28.511	27.602
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	64.301	158.439	152.461
TOTAL	320.988	383.412	398.701
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	147.366	163.038	148.420
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	24.468
(iv) Intangible assets under development	53.428	73.625	78.678
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	11.184	3.524	0.000
(d) Long-term Loan and Advances	33.816	23.142	22.035
(e) Other Non-current assets	0.145	0.252	0.215
Total Non-Current Assets	245.939	263.581	273.816
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	39.565	86.133	77.729
(c) Trade receivables	30.542	22.987	21.464
(d) Cash and cash equivalents	1.401	1.977	3.560
(e) Short-term loans and advances	1.199	3.579	2.828
(f) Other current assets	2.342	5.155	19.304
Total Current Assets	75.049	119.831	124.885
TOTAL	320.988	383.412	398.701

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		333.280	580.975	587.281
		Other Income		47.794	2.120	5.399
		TOTAL (A)		381.074	583.095	592.680
Less	EXPENSES
		Cost of Materials Consumed		213.966	412.872	397.972
		Purchase of Stock-in-trade		34.264	5.544	9.983
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		16.741	5.811	(2.091)
		Employee Benefits Expenses		11.506	11.054	7.972
		Other Expenses		111.581	144.175	146.908
		TOTAL (B)		388.058	579.456	560.744
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			(6.984)	3.639	31.936
Less	FINANCIAL EXPENSES (D)			15.387	14.239	12.528
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			(22.371)	(10.600)	19.408
Less	DEPRECIATION/ AMORTISATION (F)			15.167	16.572	14.050
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			(37.538)	(27.172)	5.358
Less	TAX (H)			(7.414)	(6.390)	1.722
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			(30.124)	(20.782)	3.636
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			48.731	69.713	66.077
	BALANCE CARRIED TO THE B/S			18.807	48.731	69.713
	IMPORTS
			Raw Materials	0.000	22.891	18.508
			Capital Goods	0.000	0.000	17.667
	TOTAL IMPORTS			0.000	22.891	36.175
	Earnings Per Share (Rs.)			(16.00)	(11.00)	2.00

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(7.91)	(3.56)	0.61
Net Profit Margin (PBT/Sales)	(%)	(11.26)	(4.68)	0.91
Return on Total Assets (PBT/Total Assets}	(%)	(4.64)	(8.87)	1.81
Return on Investment (ROI) (PBT/Networth)		(0.27)	(0.16)	0.03
Debt Equity Ratio (Total Debt /Networth)		0.86	0.75	0.67
Current Ratio (Current Asset/Current Liability)		1.17	0.76	0.82

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	44.196	44.196	44.196
Reserves & Surplus	147.206	126.424	96.300
Net worth	191.402	170.620	140.496
long-term borrowings	51.774	54.258	116.096
Short term borrowings	76.908	73.949	4.329
Total borrowings	128.682	128.207	120.425
Debt/Equity ratio	0.672	0.751	0.857

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
Sales	587.281	580.975	333.280
		(1.074)	(42.634)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	587.281	580.975	333.280
Profit	3.636	-20.782	-30.124
	0.62%	-3.58%	-9.04%

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	Yes
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	No

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans and advances from related parties	2.235	2.125
Other loans and advances	20.277	9.419
Short Term Borrowings
Loans and advances from related parties	0.000	0.720
Other loans and advances	4.329	7.915
Total	26.841	20.179

PERFORMANCE:

The company incurred a loss of rs.30.123 Millions during the year 31^st March 2013.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10416035	06/03/2013	75,000,000.00	Fullerton India Credit Company Limited	Megh Towers, Third Floor, Old No-307, New No-165, Poonamallee High Road, Maduravoyal, Chennai, Tamil Nadu - 600095, India	B71897995
2	10305959	18/07/2011	30,000,000.00	The Federal Bank	Crawford Market Branch,Mimson House,, 92,L.T. Marg, Mumbai, Maharashtra - 400003, India	B20392577
3	90205126	03/06/1996	9,000,000.00	Madhya Pradesh Financial Corporation	Branch -1 Indore, Indore, Madhya Pradesh, India	-
4	90206549	13/05/1989 *	450,000.00	Central Bank Of India	Mill Agra India, Indore, Madhya Pradesh, India	-
5	90204473	18/05/1982	1,320,000.00	Central Bank Of India	Railway Colony Branch, Ratlam, Madhya Pradesh, India	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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 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.0.12
UK Pound	1	Rs.100.07
Euro	1	Rs.82.74

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	SUM
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		30

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.