MIRA INFORM REPORT

Report Date :

30.04.2014

IDENTIFICATION DETAILS

Name :	A.V.STEEL FORGINGS PRIVATE LIMITED
Registered Office :	Plot No. 25, Savali GIDC, Savli – 391775, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	28.06.2006
Com. Reg. No.:	04-048578
Capital Investment / Paid-up Capital :	Rs.3.202 Millions
CIN No.: [Company Identification No.]	U27106GJ2006PTC048578
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of open Die Forged Parts, Heavy Shafts, Wheels, Bush, Pins.
No. of Employees :	55 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 19000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has taken huge external borrowing which acts as threatening to the liquidity position of the company. Profitability of the company is low. 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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. Bagal
Designation :	Accounts Manager
Contact No.:	91-22-25000136
Date :	29.04.2014

Name :	Mr. S. Krishnamorthy
Designation :	General Manager
Contact No.:	91-9725546192
Date :	29.04.2014

LOCATIONS

Registered Office / Factory :	Plot No. 25, Savali GIDC, Savli – 391775, Gujarat, India
Tel. No. :	91-22-25000136
Mobile No. :	91-9725546192 (Mr. S. Krishnamorthy)
Fax No. :	91-267-264742
E-Mail :	sunrajindia@vsnl.net avforging@hotmail.com avforging@yahoo.co.in
Website :	www.avforging.com
Head Office :	326 – A, Bhaveshwar Arcade, LBS Marg, Opposite Shreyas Cinema, Ghatkoper (West), Mumbai – 400086, Maharashtra, India
Tel. No.:	91-2667-264743 / 264732 91-22-25008625

DIRECTORS

As on 30.09.2013

Name :

Mr. Sanjay Agarwal

Designation :

Director

Address :

A / 1101, Shantinath Tower, Sudha Park, Ghatkoper (East), Mumbai – 400077, Maharashtra, India

Date of Birth/Age :

17.05.1964

Date of Appointment :

22.09.2009

DIN No. :

00362361

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	U27100MH2004PTC143986	BABA STEELS PRIVATE LIMITED	Director	13/01/2004	13/01/2004	-	Active	NO
2	U27106GJ2006PTC048578	A.V.STEEL FORGINGS PRIVATE LIMITED	Director	22/09/2009	26/12/2008	-	Active	NO

Name :

Mr. Anil Agarwal

Designation :

Director

Address :

A / 1004, Shantinath Tower, Sudha Park, Ghatkoper (East), Mumbai – 400077, Maharashtra, India

Date of Birth/Age :

11-11-1962

Date of Appointment :

29.09.2009

DIN No. :

00362335

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	U27100MH2004PTC143986	BABA STEELS PRIVATE LIMITED	Director	13/01/2004	13/01/2004	-	Active	NO
2	U27106GJ2006PTC048578	A.V.STEEL FORGINGS PRIVATE LIMITED	Director	22/09/2009	27/01/2009	-	Active	NO

Name :

Mr. Soham Sanjay Agarwal

Designation :

Director

Address :

A / 1101, Shantinath Tower, Sudha Park, Ghatkoper (East), Mumbai – 400077, Maharashtra, India

Date of Birth/Age :

01.10.1990

Date of Appointment :

22.09.2009

DIN No. :

02593441

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	U27106GJ2006PTC048578	A.V.STEEL FORGINGS PRIVATE LIMITED	Director	22/09/2009	27/04/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. S. Krishnamorthy
Designation :	General Manager
Name :	Mr. Bagal
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	%age
Anil Agarwal	49000	15.30
Sanjay Agarwal	128300	40.07
Soham Sanjay Agarwal	22000	6.87
Rachana Anil Agarwal	46400	14.49
Vanita Sanjay Agarwal	24500	7.65
Sanjay Agarwal (HUF)	50000	15.62
Total	320200	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Other top fifty shareholders	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of open Die Forged Parts, Heavy Shafts, Wheels, Bush, Pins.
Terms :
Selling :	Advance Payment and Credit
Purchasing :	Advance Payment and Credit

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

55 (Approximately)

Bankers :

• Saraswat Bank, SME Vikhroli (West) Branch, Prabhat Bhavan, Block 'B'., 1^st Floor, 96, L.B.S. Marg Opposite Cipla, Vikhroli (West), Mumbai - 400083, Maharashtra, India
• ICICI Bank
• Syndicate Bank, Alkapuri Branch, R C Dutt Road, Alkapuri, Vadodara – 390007, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term loan
Term Loan – II from The Saraswat Bank Co-operative Bank Limited	0.000	1.669
Term Loan – I from the Saraswat Bank Co-operative Bank Limited	0.000	2.562
SHORT TERM BORROWINGS
Cash and credit from The Saraswat Bank Co-operative Bank Limited	35.469	35.450
Total	35.469	39.681

NOTE:

LONG TERM BORROWINGS

Nature of Security and Terms of Repayment of Secured Term Loan

Term loan I and II from The Saraswat Co-op. Bank Limited was taken during the Financial Year 2009-2010. The loan is repayable in 40 monthly installments.

The loan is secured by hypothecation of Plant & Machinery, other Fixed Assets and equitable mortgage of land and building at Savli of the company. Further, the loan has been guaranteed by the person al guarantee of the directors of the company.

SHORT TERM BORROWINGS

Cash credit from bank is secured against hypothecation of Stock and debtors and personal guarantee of all the directors. The overdraft is payable on demand.

Banking Relations :	--
Auditors :
Name :	ASL and Company Chartered Accountants
Address :	102, Gauresh Apartments, Agarker Chowk, Old Police, Andheri (East), Mumbai – 400069, Maharashtra, India
Tel. No. :	91-22-26841173 / 26838557 / 26830558 / 26838038
Fax No. :	91-22-26842206
E-Mail :	choudharyansari@mtnl.net.in
PAN No. :	AAFC1257B
Associates/Subsidiaries :	Baba Steel Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
320200	Equity Shares	Rs.10/- each	Rs.3.202 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	3.202	2.488	2.488
(b) Reserves & Surplus	1.595	(8.548)	(6.772)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	7.000	0.000
Total Shareholders’ Funds (1) + (2)	4.797	0.940	(4.284)
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	4.231	8.688
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	0.000	4.231	8.688
(4) Current Liabilities
(a) Short term borrowings	88.011	97.780	94.176
(b) Trade payables	61.038	25.056	29.427
(c) Other current liabilities	17.482	12.626	11.836
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	166.531	135.462	135.439
TOTAL	171.328	140.633	139.843
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	24.692	25.622	27.737
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	4.341	4.131	3.179
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.025	0.025	0.025
(c) Deferred tax assets (net)	7.849	6.427	5.726
(d) Long-term Loan and Advances	0.258	0.262	0.343
(e) Other Non-current assets	1.673	0.142	0.297
Total Non-Current Assets	38.838	36.609	37.307
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	68.394	63.355	54.629
(c) Trade receivables	59.665	34.602	42.248
(d) Cash and cash equivalents	2.606	4.192	3.442
(e) Short-term loans and advances	1.825	1.875	2.201
(f) Other current assets	0.000	0.000	0.016
Total Current Assets	132.490	104.024	102.536
TOTAL	171.328	140.633	139.843

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	143.762	140.661	173.695
		Other Income	27.996	1.910	0.295
		TOTAL	171.758	142.571	173.990
Less	EXPENSES
		Cost of Materials Consumed		49.192	53.739
		Purchases of Stock-in-Trade		52.670	101.388
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade		(7.816)	(28.041)
		Employees benefits expense		5.120	5.107
		Other expenses		27.532	25.406
		TOTAL	169.499	126.698	157.599
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(Including Financial Expenses)	15.873	16.391
Less	FINANCIAL EXPENSES			15.388	12.736
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		2.259	0.485	3.655
Less/ Add	DEPRECIATION/ AMORTISATION		2.819	2.961	3.228
	PROFIT/ (LOSS) BEFORE TAX		(0.560)	(2.476)	0.427
Less	TAX		(1.422)	(0.700)	(2.003)
	PROFIT/ (LOSS) AFTER TAX		0.862	(1.776)	2.430
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(18.060)	(16.284)	18.714
	BALANCE CARRIED TO THE B/S		(17.198)	(18.060)	(16.284)
	Earnings / (Loss) Per Share (Rs.)		2.69	(7.14)	9.77

Particulars	31.03.2014
Sales Turnover (Approximately)	200.000

The above information has been parted by Mr. Bagal and Mr. S. Krishnamorthy

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.50	(1.25)	1.40
Net Profit Margin (PBT/Sales)	(%)	(0.39)	(1.76)	0.25
Return on Total Assets (PBT/Total Assets}	(%)	(0.35)	(1.90)	0.33
Return on Investment (ROI) (PBT/Networth)		(0.12)	(2.63)	(0.10)
Debt Equity Ratio (Total Debt/Networth)		18.35	108.52	(24.01)
Current Ratio (Current Asset/Current Liability)		0.80	0.77	0.76

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	2.488	2.488	3.202
Reserves & Surplus	(6.772)	(8.548)	1.595
Share Application money pending allotment	0.000	7.000	0.000
Net worth	(4.284)	0.940	4.797
long-term borrowings	8.688	4.231	0.000
Short term borrowings	94.176	97.780	88.011
Total borrowings	102.864	102.011	88.011
Debt/Equity ratio	(24.011)	108.522	18.347

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	173.695	140.661	143.762
		(19.018)	2.205

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	173.695	140.661	143.762
Profit	2.430	(1.776)	0.862
	1.40%	(1.26%)	0.60%

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 four 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

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Loan and advance from related parties payable on demand	43.071	55.790
Other loan and advance payable on demand	9.471	6.540
Total	52.542	62.330

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10465687	29/11/2013	10,000,000.00	The Saraswat Co-op. Bank Ltd.	SME Vikhroli (W) Branch, Prabhat Bhavan, Block'B'., 1st Floor, 96, L.B.S. Marg Opp. Cipla, Vikhroli (W), Mumbai, Maharashtra - 400083, INDIA	B91757195
2	10203677	28/01/2010	10,000,000.00	THE SARASWAT CO.OP. BANK LIMITD	SME BRANCH, CHANDAN MANSION, STATION ROAD, VIKRHOLI, MUMBAI, Maharashtra - 400086, INDIA	A79291902
3	10197098	01/01/2010	1,400,000.00	THE SARASWAT CO-OPERATIVE BANK LIMITED	SMALL AND MEDIUM ENTERPRISES BRANCH, PRABHAT BHAVAN, 1ST FLOOR, OPP CILPA, VIKHROLI (W), MUMBAI, Maharashtra - 400083, INDIA	A77470482
4	10175634	17/08/2009	2,000,000.00	THE SARASWAT CO-OPERATIVE BANK LIMITED	SME BRANCH, PRABHAT BHAVAN, 1ST FLOOR, OPP CIPLA L B S MARG, VIKHROLI (WEST), MUMBAI, Maharashtra - 400083, INDIA	A68996750
5	10162169	01/06/2009	446,000.00	SARASWAT CO-OPERATIVE BANK LIMITED	THANE NAGAR VACHANALAY BUILDING, TEMBHI NAKA, THANE, THANE, Maharashtra - 400601, INDIA	A63792311
6	10149946	15/12/2010 *	35,000,000.00	THE SARASWAT CO-OPERATIVE BANK LTD.	SMALL AND MEDIUM ENTERPRISE BRANCH, PRABHAT BHAVAN, BLOCK B,96 LBS MARG, VIKHROLI (W), MUMBAI, Maharashtra - 400083, INDIA	B02059038
7	10149948	28/01/2010 *	12,000,000.00	THE SARASWAT CO.OP. BANK LIMITED	SME BRANCH, CHANDAN MANSION, STATION ROAD, MUMBAI, Maharashtra - 400083, INDIA	A79292710
8	10149947	21/03/2009	11,186,000.00	THE SARASWAT CO.OP. BANK LIMITED	BHAVESHWAR ARCADE, GROUND FLOOR, OPP. SHREYAS CINEMA, LBS ROAD, GHATKOPAR (WEST), MUMBAI, Maharashtra - 400086, INDIA	A59799148
9	10149949	21/03/2009	30,800,000.00	THE SARASWAT CO.OPERATIVE BANK LTD.	BHAVESHWAR ARCADE, GROUND FLOOR, OPP. SHREYAS CINEMA, LBS ROAD, GHATKOPAR (WEST), MUMBAI, Maharashtra - 400086, INDIA	A59800524

* Date of charge modification

FIXED ASSETS

œ Land

œ Building

œ Plant and Machinery

œ Computers

œ Office equipment

œ Furniture and Fixture

œ Motor Car

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.60.52
UK Pound	1	Rs.101.77
Euro	1	Rs.83.92

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL

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.