MIRA INFORM REPORT

Report Date :

23.08.2014

IDENTIFICATION DETAILS

Name :	UTKAL ALUMINA INTERNATIONAL LIMITED
Registered Office :	J – 6 Jaydev Vihar, Bhubaneswar – 751013, Orissa
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.09.1993
Com. Reg. No.:	15 - 003416
Capital Investment / Paid-up Capital :	Rs. 33732.640 Millions
CIN No.: [Company Identification No.]	U13203OR1993PLC003416
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the area of health, education, infrastructure development viz. drinking water, construction of roads, schools, sanitation facilities etc.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 7600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “HINDALCO INDUSTRIES LIMITED” incorporated on 29^th September 1993. It is having a satisfactory track record. As claimed by Mr. Nandubabu, Admin officer that company has started its business operation from May 2013. The company has incurred huge accumulated losses during financial year 2013. However, the rating takes into consideration unconditional and irrevocable corporate guarantee provided by Hindalco Industries Limited and promoters long –standing experience in aluminum industries. However, trade relations are fair. Business is active. Payment terms are usually correct. In view of strong holding support, the company can be considered for business dealings at usual trade terms and condition.

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

N E W S

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 their 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 tat 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	CARE
Rating	Long Term Bank Facilities A-
Rating Explanation	Adequate degree of safety and low credit risk
Date	14.08.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities A2+
Rating Explanation	Strong degree of Safety and low credit risk
Date	14.08.2014

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 DENIED BY

Name :	Mr. Nandbabu
Designation :	Admin Officer
Contact No.:	91-9439076710
Date :	21.08.2014

LOCATIONS

Registered Office :	J – 6 Jaydev Vihar, Bhubaneswar – 751013, Orissa, India
Tel. No.:	91-674-2360581
Mobile No.:	91-9439076710 (Mr. Nandbabu)
Fax No.:	91-674-2360321
E-Mail :	Sunita.narayan@adityabirla.com
Website :
Corporate Office :	4^th Floor. Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400022
Tel. No.:	91-22-61443456
Fax No.:	91-22-61443556
Branches :	· Ahmedabad · Bengaluru · Chandigarh · Chennai · Hyderabad · Jaipur · Kolkata · New Delhi · Pune

DIRECTORS

As on 30.09.2013

Name :

Mr. Vijay Sapra

Designation :

Whole Time Director

Address :

Utkal Alumina International Limited, F1 – 7 and 8, Nau Pada Post, Kucheipada, Rayagada – 765015, India

Date of Birth/Age :

05.07.1956

Date of Appointment :

28.09.2012

DIN No.:

05247213

PAN No.:

AGPPS6049E

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	U13203OR1993PLC003416	UTKAL ALUMINA INTERNATIONAL LIMITED.	Whole-time director	28/09/2012	19/03/2012	-	Active	NO
2	U93090OR2013PLC017341	UTKAL ALUMINA TECHNICAL & GENERAL SERVICES LIMITED	Director	09/09/2013	09/09/2013	-	Active	NO

Name :

Mr. Rabindra Sreenath Misra

Designation :

Director

Address :

House No. 53, Basant Vihar Brahameshwar, Patna, Tankapani Road, Bhubaneswar - 751018, Orissa, India

Date of Birth/Age :

30.01.1956

Date of Appointment :

09.09.2009

DIN No.:

02693383

PAN No.:

ABFPM4311C

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	U13203OR2007PTC009597	EAST COAST BAUXITE MINING COMPANY PRIVATE LIMITED	Nominee director	04/06/2009	04/06/2009	-	Active	NO
2	U13203OR1993PLC003416	UTKAL ALUMINA INTERNATIONAL LIMITED.	Director	09/09/2009	16/06/2009	-	Active	NO

Name :

Mr. Ashok Kumar Machher

Designation :

Director

Address :

C- 7, Hindalco ADM Colony, Renukoot, Sonebhadra - 231217, Uttar Pradesh, India

Date of Birth/Age :

08.04.1968

Date of Appointment :

30.09.2013

DIN No.:

02797592

PAN No.:

ABQPM349E

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	U26990JH1970PLC000875	MINERALS & MINERALS LIMITED	Director	02/08/2010	12/02/2009	-	Active	NO
2	U13203OR1993PLC003416	UTKAL ALUMINA INTERNATIONAL LIMITED.	Director	30/09/2013	09/05/2011	-	Active	NO
3	U10100MH2007PLC174466	TUBED COAL MINES LIMITED	Director	15/09/2012	10/03/2012	-	Active	NO
4	U01010MP2006PLC018586	MAHAN COAL LIMITED	Additional director	03/05/2014	03/05/2014	-	Active	NO

Name :

Mr. Bharat Bhushan Jha

Designation :

Director

Address :

Flat No. 1902, 19^th Floor Shubhada Building, Sir Pokhanwala Road, Worli, Mumbai – 400030, Maharashtra, India

Date of Birth/Age :

15.09.1955

Date of Appointment :

21.05.2013

DIN No.:

06587706

PAN No.:

AAHPJ6635M

KEY EXECUTIVES

Name :	Mr. Sunita Narayan
Designation :	Secretary
Address :	17 B- Wing Tejkiran Cooperative Housing Society, 90 Feet Road, Mulund (East), Mumbai – 400081, Maharashtra, India
Date of Birth/Age :	16.05.1982
Date of Appointment :	15.03.2010
PAN No.:	AGAPN1643A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Hindalco Industries Limited	2586263958
Vijay Sapra Jointly with Hindalco Industries Limited	20
Rabindra Misra Jointly with Hindalco Industries Limited	20
Dipak Dey Jointly with Hindalco Industries Limited	10
Rakesh Mohan Jointly with Hindalco Industries Limited	10
S.K. Mishra Jointly with Hindalco Industries Limited	20
Sudip Banerjee Jointly with Hindalco Industries Limited	10
S. Bontha Jointly with Hindalco Industries Limited	20
Orissa Mining Corporation Limited	2
Total	2586264070

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the area of health, education, infrastructure development viz. drinking water, construction of roads, schools, sanitation facilities etc.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Axis Bank Limited, Trishul 3^rd Floor Opp Samartheshwae Temple, Law Garden Ellisbridge, Ahmedabad – 380006, Gujarat, India

· IDBI Bank Limited, IDBI Towerwtc Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

· SBICAP Trustee Company Limited, 202, Maker Tower, ‘E’, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
Borrowing	46,206.800	31,911.000
Total	46,206.800	31,911.000

Banking Relations :	---
Auditors :
Name :	Neeraj Kumar Gupta Chartered Accountant
Address :	Plot No. Y-14 Block EP, Sector V Saltlake Electronic Complex, Bidhan Nagar, Kolkata – 700091, India
PAN No.:	AAEFP3641G
Holding Company :	Hindalco Industries Limited (CIN No. L27020MH1958PLC011238)

CAPITAL STRUCTURE

After 30.09.2013

Authorised Capital : Rs. 35000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 33732.640 Millions

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2470000000	Equity Shares	Rs.10/- each	Rs. 24700.000 Million
30000000	Preference Shares	Rs.10/- each	Rs. 300.000 Million
	Total		Rs. 25000.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2047164000	Equity Shares	Rs.10/- each	Rs. 20471.640 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	20471.640	15171.640	11381.640
(b) Reserves & Surplus	(1300.910)	(315.220)	(177.590)
(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)	19170.730	14856.420	11204.050
(3) Non-Current Liabilities
(a) long-term borrowings	46206.800	31911.000	18186.500
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	625.760	2128.370	1368.300
(d) long-term provisions	13.930	10.190	6.530
Total Non-current Liabilities (3)	46846.490	34049.560	19561.330
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	0.000	0.000	0.000
(c) Other current liabilities	4405.480	1902.290	1500.540
(d) Short-term provisions	6.410	2.560	1.320
Total Current Liabilities (4)	4411.890	1904.850	1501.860
TOTAL	70429.110	50810.830	32267.240
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2039.860	692.390	624.580
(ii) Intangible Assets	171.190	182.630	194.350
(iii) Capital work-in-progress	61436.270	41859.920	25921.560
(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	2694.210	5011.260	4105.140
(e) Other Non-current assets	9.050	0.000	0.000
Total Non-Current Assets	66350.580	47746.200	30845.630
(2) Current assets
(a) Current investments	1642.260	1746.470	1201.880
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	0.000	0.000	0.000
(d) Cash and cash equivalents	121.020	1243.930	160.960
(e) Short-term loans and advances	2315.130	73.420	57.750
(f) Other current assets	0.120	0.810	1.020
Total Current Assets	4078.530	3064.630	1421.610
TOTAL	70429.110	50810.830	32267.240

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	0.000	0.000	0.000
		Other Income	0.490	4.050	1.340
		TOTAL (A)	0.490	4.050	1.340
Less	EXPENSES
		Employees benefits expense	28.530	15.370	12.900
		Other expenses	160.600	58.920	11.600
		TOTAL (B)	189.130	74.290	24.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(188.640)	(70.240)	(23.160)
Less	FINANCIAL EXPENSES (D)		115.950	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(304.590)	(70.240)	(23.160)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.380	11.510	0.000
	PROFIT / LOSS BEFORE TAX (E-F) (G)		(315.970)	(81.750)	(23.160)
Less	TAX (H)		669.720	55.880	0.340
	PROFIT / LOSS AFTER TAX (G-H) (I)		(985.690)	(137.630)	(23.500)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		315.22	177.59	154.09
	BALANCE CARRIED TO THE B/S		1300.91	315.22	177.59
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	380.568	254.640	0.000
	TOTAL EARNINGS		380.568	254.640	0.000
	IMPORTS
		Capital Goods	13.613	219.820	0.000
	TOTAL IMPORTS		13.613	219.820	0.000
	Earnings Per Share (Rs.)		(0.55)	(0.10)	(0.02)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(2011.61)	(33.98)	(17.53)
Return on Total Assets (PBT/Total Assets}	(%)	(0.45)	(0.16)	(0.07)
Return on Investment (ROI) (PBT/Networth)		(1.6)	(0.24)	(0.20)
Debt Equity Ratio (Total Debt /Networth)		2.41	2.15	1.62
Current Ratio (Current Asset/Current Liability)		0.92	1.61	0.95

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	11381.640	15171.640	20471.640
Reserves & Surplus	(177.590)	(315.220)	(1300.910)
Net worth	11204.050	14856.420	19170.730
long-term borrowings	18186.500	31911.000	46206.800
Short term borrowings	0.000	0.000	0.000
Total borrowings	18186.500	31911.000	46206.800
Debt/Equity ratio	1.623	2.148	2.410

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 last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

PROJECT REVIEW

The aware that the Company is setting up a 1.5 Mio Tonnes Alumina Refinery Project along with Co-generation Power Plant. The construction activity and commissioning of the Refinery has been given a major boost and the refinery is focused to be completed in two trenches i.e. 0.75 Mio Tonnes each trenche. Your Directors are happy to inform you that the commissioning of the 1st trenche is complete except the Calciner and production of Alumina Tri-hydrate is expected any moment. The 2nd trenche mechanical completion is expected by end July 2013 and commissioning and integration with 1st trenche is expected by October 2013. Your Directors are further happy to inform you that the Company has already been granted consent by the State Pollution Control Board, Odisha to operate the Refinery along with Co-generation Power Plant as well as the mining activity of Baphlimali Bauxite Mines. Most of the contractors have reasonably sufficient resources at site. Mining of major raw material ie, bauxite is under operation and being transported by deploying trucks, since the automated conveyor construction will take few more months to be completed. Other raw materials like coal, caustic soda lye, process chemicals etc. are being procured and being used in the refining process. Work on railway siding is under advanced stage of completion and will be commissioned shortly.

As reported last year that the delayed contracts may have a cascading impact on the timely execution of other contracts and may have the potential to increase both time and cost of the project, the overall cost overrun is now estimated to be around Rs. 14000 MillionS but still the operating cost may continue to be in the lowest cost quartile of the global cost structure of production and may continue to be value accretive subject to the volatility in the Aluminium prices in the London Metal Exchange and highly fluctuating fuel prices.

Financial Results the Company is yet to start commercial production and therefore there is no operating income. However, the revenue

expenditure which does not qualify for capitalisation in terms of accounting standards are charged to Profit & Loss Account.

CORPORATE SOCIAL RESPONSIBILITY

Social welfare and community development continues to be the priority for the company. Close and continuous interaction with the people and communities in and around the project site has been the key focus while striving to bring around qualitative changes and sustainable economic upliftment of the villagers.

The company contributions to the community are in the area of health, education, infrastructure development viz. drinking water, construction of roads, schools, sanitation facilities etc. supportive initiative on self help group concept for promotion of income generation programme like horticulture and fruits tree plantation, goat rearing, poultry etc. and assistance in the event of natural calamities and miscellaneous activities such as contribution to other social development organisations including sports. The initiative has yield visible results in project construction.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10479242	03/02/2014	50,000,000,000.00	AXIS TRUSTEE SERVICES LTD	AXIS HOUSE, 2ND FLOOR, WADIA INTERNATIONAL CENTRE, , PANDURANG BUDHKAR MARG, WORLI, MUMBAI, Maharash tra - 400025, INDIA	B97060776
2	10479244	03/02/2014	50,000,000,000.00	Axis Bank Limited	AXIS HOUSE C-2, WADIA INTERNATIONAL CENTRE,, PAND URANG BUDHKAR MARG, WORLI, MUMBAI, Maharashtra - 4 00025, INDIA	B97061717
3	10458255	03/02/2014 *	7,000,000,000.00	Axis Bank Limited	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G ARDEN ELLISBRIDGE, AHMEDABAD, Gujarat - 380006, IN DIA	B97064992

* Date of charge modification

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.60.76
UK Pound	1	Rs.100.72
Euro	1	Rs.80.55

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAR
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	3
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.