Report Date :

12.08.2014

IDENTIFICATION DETAILS

Name :	SAKTHI STEEL INDUSTRIES LIMITED
Registered Office :	No.18/26, Loganathan Nagar, 2^nd Street, Choolaimedu, Chennai – 600 094, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.12.2010
Com. Reg. No.:	18-078488
Capital Investment / Paid-up Capital :	Rs.0.500 million
CIN No.: [Company Identification No.]	U27310TN2010PLC078488
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Dealer of Iron and Steel Products.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile and huge external borrowing taken by the company, which acts as threatening to the liquidity position of the company. However, trade relations are fair. Business is active. Payments are reported to be 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

NEWS

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes that many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20%! Equities came in second with annualized return of 15.5%! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs.10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: B+
Rating Explanation	Risk prone credit quality and very high credit risk.
Date	March 13, 2014

Rating Agency Name	CRISIL
Rating	Short Term Rating: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	March 13, 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 31-03-2014.

INFORMATION PARTED BY (PARTIAL DETAILS)

Name :	Mr. Rajendra
Designation :	Accounts Executive
Contact No.:	91-44-23611826
Date :	11.08.2014

LOCATIONS

Registered Office :	No.18/26, Loganathan Nagar, 2^nd Street, Choolaimedu, Chennai – 600 094, Tamilnadu, India
Tel. No.:	91-44-23611826
Fax No.:	91-44-23611831
E-Mail :	sakthisteelindustrieslimited@gmail.com
Factory :	Amaravathi Pattinan Village, Kattangulam Panchayat, Nelvai-Thirumukkoodal Road, Uthramerur Taluk, Kancheepuram District – 631 606, Tamilnadu, India
Tel. No.:	91-44-27292316

DIRECTORS

AS ON 21.09.2013

Name :

Kannai Ahnaidu Anandh

Designation :

Director

Address :

26, Loganatha Nagar, II Street, Choolaimedu, Chennai – 600 094, Tamilnadu, India

Date of Birth/Age :

15.09.1966

Date of Appointment :

20.12.2010

DIN No.:

01827481

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	U27106TN2004PLC054718	LAKSHMI BALAJI ALLOYS LIMITED	Director	24-11-2004	24-11-2004	-	Active	NO
2	U27101TN2005PTC055788	SAKTHI FERRO ALLOYS (INDIA) PRIVATE LIMITED	Managing director	29-03-2005	29-03-2005	-	Active	NO
3	U29259TN2007PTC065667	JINSUNG AUTO SOLUTIONS PRIVATE LIMITED	Director	10-12-2007	10-12-2007	-	Active	NO
4	U74999TN2007PTC065757	NEST FACILITY MANAGEMENT SERVICES PRIVATE LIMITED	Director	17-12-2007	17-12-2007	10-10-2013	Active	NO
5	U74910TN2008PTC066009	NEST SOLUTIONS AND SERVICES PRIVATE LIMITED	Director	09-01-2008	09-01-2008	-	Strike off	NO
6	U27106TN2008PLC066844	DRA INDUSTRIES LIMITED	Director	14-09-2010	27-01-2010	30-11-2013	Active	NO
7	U74899TN1992PLC077246	GOLD PET POLYMERS LIMITED	Additional director	02-08-2010	02-08-2010	10-09-2011	Active	NO
8	U45202TN2010PTC078214	UNO ENGINEERING AND CONSTRUCTION INDIA PRIVATE LIMITED	Director	24-11-2010	24-11-2010	-	Strike off	NO
9	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director	20-12-2010	20-12-2010	-	Active	NO
10	U45203TN2011PTC080294	SAKTHI PROPERTY DEVELOPERS INDIA PRIVATE LIMITED	Managing director	25-04-2011	25-04-2011	-	Active	NO
11	U45206TN2011PTC080293	SAKTHI FOUNDATIONS PRIVATE LIMITED	Managing director	25-04-2011	25-04-2011	-	Active	NO
12	U29196TN2007PTC063106	PERFECT WEIGHING SYSTEM PRIVATE LIMITED	Director	06-06-2011	06-06-2011	-	Active	NO
13	U28113TN2011PTC081631	SAKTHI STAMPINGS INDIA PRIVATE LIMITED	Director	25-07-2011	25-07-2011	-	Active	NO
14	U28990TN2012PTC084359	MAITHRI STEELS PRIVATE LIMITED	Director	07-02-2012	07-02-2012	-	Active	NO
15	U27106TN2010PTC074826	EMJAY STEEL UDYYOG PRIVATE LIMITED	Managing director	03-12-2012	24-11-2012	07-12-2012	Active	NO
16	U74140KA2009PTC049340	SFS EQUIPMENTS PRIVATE LIMITED	Additional director	27-06-2014	27-06-2014	-	Active	NO

Name :

Satish Kumar

Designation :

Director

Address :

1/88, Kondancheri Village, Kondancheri PO, Thiruvallur, Chennai – 631 402, Tamilnadu, India

Date of Birth/Age :

02.04.1970

Date of Appointment :

20.12.2010

DIN No.:

01885355

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	U24117TN1996PTC036907	SUBA ORGANICS PRIVATE LIMITED	Director	13-11-1996	13-11-1996	-	Active	NO
2	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director	20-12-2010	20-12-2010	-	Active	NO
3	U28113TN2011PTC081631	SAKTHI STAMPINGS INDIA PRIVATE LIMITED	Director	25-07-2011	25-07-2011	-	Active	NO
4	U27100TN2012PTC087936	J.B.A STEELS ENTERPRISES PRIVATE LIMITED	Additional director	09-04-2014	09-04-2014	-	Active	NO
5	U27320TN2011PTC082363	J.B.A STEELS PRIVATE LIMITED	Additional director	09-04-2014	09-04-2014	-	Active	NO

Name :

Divakar

Designation :

Director

Address :

No.1/81, Kondancheri Village, Perambakkam Panchayat, Thiruvallur, Chennai – 631 402, Tamilnadu, India

Date of Birth/Age :

05.03.1973

Date of Appointment :

22.08.2011

DIN No.:

01989005

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	U24117TN1996PTC036907	SUBA ORGANICS PRIVATE LIMITED	Additional director	18-04-2007	18-04-2007	-	Active	NO
2	U45203TN2011PTC080294	SAKTHI PROPERTY DEVELOPERS INDIA PRIVATE LIMITED	Additional director	27-04-2011	27-04-2011	-	Active	NO
3	U45206TN2011PTC080293	SAKTHI FOUNDATIONS PRIVATE LIMITED	Director	26-09-2012	27-04-2011	-	Active	NO
4	U28113TN2011PTC081631	SAKTHI STAMPINGS INDIA PRIVATE LIMITED	Director	25-07-2011	25-07-2011	-	Active	NO
5	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director	22-08-2011	22-08-2011	-	Active	NO
6	U27101TN2005PTC055788	SAKTHI FERRO ALLOYS (INDIA) PRIVATE LIMITED	Director	22-08-2011	22-08-2011	-	Active	NO
7	U29259TN2007PTC065667	JINSUNG AUTO SOLUTIONS PRIVATE LIMITED	Director	19-10-2011	19-10-2011	-	Active	NO
8	U74140KA2009PTC049340	SFS EQUIPMENTS PRIVATE LIMITED	Additional director	27-06-2014	27-06-2014	-	Active	NO

Name :

Vaigunthan Venkatarayalu

Designation :

Director appointed in casual vacancy

Address :

28, 3^rd ST, Sastha Nagar, Villivakkam, Chennai – 600 049, Tamilnadu, India

Date of Birth/Age :

05.07.1972

Date of Appointment :

15.04.2011

DIN No.:

03508040

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	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director appointed in casual vacancy	15-04-2011	15-04-2011	-	Active	NO
2	U27106TN2010PTC074826	EMJAY STEEL UDYYOG PRIVATE LIMITED	Additional director	24-11-2012	24-11-2012	07-12-2012	Active	NO
3	U27100TN2012PTC087936	J.B.A STEELS ENTERPRISES PRIVATE LIMITED	Additional director	09-04-2014	09-04-2014	-	Active	NO
4	U27320TN2011PTC082363	J.B.A STEELS PRIVATE LIMITED	Additional director	09-04-2014	09-04-2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajendra
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.09.2013

Names of Shareholders	No. of Shares
KA Anandh	988
Kanchana Anandh	2
A.R. Sathish Kumar	2
K. Prabakaran	2
CSN Hohan	2
K.L. Nanthakumar	2
A.R. Divakar	2
Total	1000

AS ON 07.10.2013

Note:

Allottees details file attached.

AS ON 21.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Dealer of Iron and Steel Products.
Products :	· Steel Castings · Ingots · Billets · Angles, etc.
Imports :
Products :	· Raw Materials
Countries :	· Germany · Singapore · UAE
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

GENERAL INFORMATION

No. of Employees :

Information declined by the Management.

Bankers :

City Union Bank Limited, Old No.42, New No.107, Dr. Alagappa Road, Purasawalkam, Chennai – 600 084, Tamilnadu, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans from Bank (Secured by land together with all buildings and structures)	74.457	84.027
SHORT TERM BORROWINGS
Working Capital Borrowings from Banks (Secured by stock in trade, book debts and land together with all buildings and structures)	41.371	51.498
Letter of Credit payable	53.968	0.000
Total	169.796	135.525

Banking Relations :	--
Auditors :
Name :	Immanuel Clements Chartered Accountants
Address :	First Floor, 5, Kumbhat Complex, 700, Poonamallee High Road, Aminjikarai, Chennai – 600 029, Tamilnadu, India
Tel. No.:	91-44-26641146/ 26640573
PAN No.:	AABPI2273A
Related Parties with whom the transactions have been made :	· Sakthi Ferro Alloys India Private Limited · Sakthi Traders · VS Steel

CAPITAL STRUCTURE

AFTER 21.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.500/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000	Equity Shares	Rs.500/- each	Rs.0.500 million
514000	Equity Shares	Rs.10/- each	Rs.5.140 millions
	Total		Rs.5.640 millions

AS ON 21.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.500/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000	Equity Shares	Rs.500/- each	Rs.0.500 million

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	0.500	0.500	0.500
(b) Reserves & Surplus	5.462	0.750	0.000
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	51.400	51.400	0.000
Total Shareholders’ Funds (1) + (2)	57.362	52.650	0.500
(3) Non-Current Liabilities
(a) Long-term borrowings	74.457	84.027	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	4.404	0.000
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	74.457	88.431	0.000
(4) Current Liabilities
(a) Short term borrowings	154.048	60.948	80.000
(b) Trade payables	298.876	110.510	0.024
(c) Other current liabilities	17.708	16.890	0.000
(d) Short-term provisions	1.987	0.986	0.000
Total Current Liabilities (4)	472.619	189.334	80.024
TOTAL	604.438	330.415	80.524
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	55.469	63.519	0.144
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	91.247	65.130	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	29.766	23.823	60.000
(e) Other Non-current assets	0.131	0.175	0.218
Total Non-Current Assets	176.613	152.647	60.362
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	317.671	86.682	0.000
(c) Trade receivables	51.122	71.410	0.000
(d) Cash and cash equivalents	11.182	4.391	20.162
(e) Short-term loans and advances	0.785	0.203	0.000
(f) Other current assets	47.065	15.082	0.000
Total Current Assets	427.825	177.768	20.162
TOTAL	604.438	330.415	80.524

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	971.383	262.749	0.000
		Other Income	3.554	1.032	0.000
		TOTAL (A)	974.937	263.781	0.000
Less	EXPENSES
		Cost of materials consumed	697.238	209.150	0.000
		Change of Inventories	(16.874)	(20.156)	0.000
		Employee benefit expense	9.920	3.273	0.000
		Other expenses	248.253	57.515	0.000
		TOTAL (B)	938.537	249.782	0.000
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		36.400	13.999	0.000
Less	FINANCIAL EXPENSES (D)		22.191	10.249	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.209	3.750	0.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.978	2.823	0.000
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		6.231	0.927	0.000
Less	TAX (H)		1.520	0.177	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		4.711	0.750	0.000
	Earnings / (Loss) Per Share (Rs.)		4711.19	750.48	0.00

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.48	0.28	0.00
Net Profit Margin (PBT/Sales)	(%)	0.64	0.35	0.00
Return on Total Assets (PBT/Total Assets}	(%)	1.21	0.35	0.00
Return on Investment (ROI) (PBT/Networth)		0.11	0.02	0.00
Debt Equity Ratio (Total Debt/Networth)		3.98	2.75	160.00
Current Ratio (Current Asset/Current Liability)		0.91	0.94	0.25

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	0.500	0.500	0.500
Reserves & Surplus	0.000	0.750	5.462
Share Application money pending allotment	0.000	51.400	51.400
Net worth	0.500	52.650	57.362
Long-term borrowings	0.000	84.027	74.457
Short term borrowings	80.000	60.948	154.048
Total borrowings	80.000	144.975	228.505
Debt/Equity ratio	160.000	2.754	3.984

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	0.000	262.749	971.383
			269.700

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	0.000	262.749	971.383
Profit	0.000	0.750	4.711
		0.29%	0.48%

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for about 2 years 3 months	Yes
12]	Profitability for about 2 years 3 months	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)	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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	10304252	02/02/2012 *	100,000,000.00	CITY UNION BANK LIMITED	OLD NO.42, NEW NO.107, DR. ALAGAPPA ROAD, PURASAWALKAM, CHENNAI, TAMILNADU - 600084, INDIA	B35889666
2	10304251	11/06/2014 *	300,000,000.00	CITY UNION BANK LIMITED	OLD NO.42, NEW NO.107, DR. ALAGAPPA ROAD, PURASAWALKAM, CHENNAI, TAMILNADU - 600084, INDIA	C11150901

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT TERM BORROWINGS
From Related parties:
- Sakthi Traders	58.709	9.450
Total	58.709	9.450

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Computer

· Office Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.12
UK Pound	1	Rs.102.54
Euro	1	Rs.81.87

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	KAR
Report Prepared by :	SMN

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	2
--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		26

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.