MIRA INFORM REPORT

Report Date :

30.08.2014

IDENTIFICATION DETAILS

Name :	LALWANI INDUSTRIES LIMITED
Registered Office :	"Om Tower", 32, Jawaharlal Nehru Road, 2nd Floor, Suite No. 205, Kolkata – 700071, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	25.08.1995
Com. Reg. No.:	21-073771
Capital Investment / Paid-up Capital :	Rs. 13.520 Millions
CIN No.: [Company Identification No.]	U27109WB1995PLC073771
TAN No.: [Tax Deduction & Collection Account No.]	CALL00865E
PAN No.: [Permanent Account No.]	AAACL4650J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Ferro Alloys.
No. of Employees :	32 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s sound financial risk profile and fair profitability levels of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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 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.

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

Name :	Ms. Shikha Jaju
Designation :	Accounts Manager
Contact No.:	91-33-22263680
Date :	27.09.2014

LOCATIONS

Registered Office :	"Om Tower", 32, Jawaharlal Nehru Road, 2nd Floor, Suite No. 205, Kolkata – 700071, West Bengal, India
Tel. No.:	91-33-22263680/ 81
Fax No.:	91-33-22263754
E-Mail :	lalwanical2@hotmail.com sandeep@lalwaniferroalloys.com
Website :	http://www.lalwaniferroalloys.com
Area :	3000 Sq. ft.
Location :	Rented
Factory :	PO Dongaria, PS Nodakhali, Birlapur, Sahara Rhat Road, 24 South Parganas, West Bengal, India

DIRECTORS

AS ON 26.09.2013

Name :

Mr. Kamal Kishore Lalwani

Designation :

Director

Address :

47A, Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

26.01.1954

Date of Appointment :

25.08.1995

PAN No.:

ABBPL9761H

DIN No.:

00064724

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	Company/ LLP Status	Defaulting status
1	U51909WB1986PLC041548	LALWANI FERRO ALLOYS LIMITED	Director	27/11/1986	27/11/1986	Active	NO
2	U51109WB1994PTC063147	LALWANI METALLICS PRIVATE LIMITED	Director	09/05/1994	09/05/1994	Active	NO
3	L65999WB1995PLC067302	APEX CAPITAL MARKETS LIMITED	Managing director	01/04/2013	11/01/1995	Active	NO
4	U27109WB1995PLC073771	LALWANI INDUSTRIES LIMITED	Director	25/08/1995	25/08/1995	Active	NO
5	U65993WB1995PLC068269	LAL WANI CAPITAL MARKETS LIMITED	Director	23/06/1999	23/06/1999	Active	NO

Name :

Mrs. Snehlata Lalwani

Designation :

Director

Address :

47A, Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

15.12.1960

Date of Appointment :

25.08.1995

PAN No.:

AAZPL4013D

DIN No.:

00064649

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	Company/ LLP Status	Defaulting status
1	U51909WB1986PLC041548	LALWANI FERRO ALLOYS LIMITED	Director	27/11/1986	27/11/1986	Active	NO
2	U51109WB1994PTC063147	LALWANI METALLICS PRIVATE LIMITED	Director	09/05/1994	09/05/1994	Active	NO
3	L65999WB1995PLC067302	APEX CAPITAL MARKETS LIMITED	Director	11/01/1995	11/01/1995	Active	NO
4	U27109WB1995PLC073771	LALWANI INDUSTRIES LIMITED	Director	25/08/1995	25/08/1995	Active	NO
5	U65993WB1995PLC068269	LAL WANI CAPITAL MARKETS LIMITED	Director	23/06/1999	23/06/1999	Active	NO

Name :

Mr. Sandeep Lalwani

Designation :

Director

Address :

47A, Shakespeare Sarani, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

05.12.1981

Date of Appointment :

01.12.2000

PAN No.:

ABLPL5671Q

DIN No.:

00064318

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	Company/ LLP Status	Defaulting status
1	U65993WB1995PLC068269	LAL WANI CAPITAL MARKETS LIMITED	Director	01/06/2000	01/06/2000	Active	NO
2	U27109WB1995PLC073771	LALWANI INDUSTRIES LIMITED	Director	01/12/2000	01/12/2000	Active	NO
3	U51909WB1986PLC041548	LALWANI FERRO ALLOYS LIMITED	Managing director	25/10/2012	01/12/2000	Active	NO
4	U51109WB1994PTC063147	LALWANI METALLICS PRIVATE LIMITED	Director	23/05/2005	23/05/2005	Active	NO
5	U51909WB2011PTC163357	GAYATRI COMMODEAL PRIVATE LIMITED	Director	23/10/2012	23/10/2012	Active	NO

Name :

Mr. Sanjay Kumar Dhacholia

Designation :

Director

Address :

39/40 Dum Dum Park, Kolkata – 700055, West Bengal, India

Date of Birth/Age :

16.11.1958

Date of Appointment :

12.11.2001

PAN No.:

ACPPD3135J

DIN No.:

00064528

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	Company/ LLP Status	Defaulting status
1	L65999WB1995PLC067302	APEX CAPITAL MARKETS LIMITED	Director	11/01/1995	11/01/1995	Active	NO
2	U27109WB1995PLC073771	LALWANI INDUSTRIES LIMITED	Director	12/11/2001	12/11/2001	Active	NO
3	U51909WB2011PTC163357	GAYATRI COMMODEAL PRIVATE LIMITED	Additional director	23/06/2014	23/06/2014	Active	NO

KEY EXECUTIVES

Name :	Ms. Shikha Jaju
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2013

Names of Shareholders	No. of Shares
Kamal Kishore Lalwani	173010
Snehlata Lalwani	260010
Sanjay Kumar Dhacholia	10
Prabin Kumar Sharan	10
Amit Kakarania	10
Aarpita Dasgupta	10
Anil Gupta	10
Sunil Lalwani	20000
Apex Capital Markets Limited, India	61000
Lalwani Capital Markets Limited, India	520000
Bhagwati Prasad Verma	1000
Vimal Kishore Lalwani	12500
Anil Kumar Lalwani	60000
Lalwani Ferro Alloys Limited, India	125330
Anil Kumar Goenka	1000
Kamal Kishore Lalwani [HUF]	64100
Lalwani Metallics Private Limited, India	54000
Total	1352000

AS ON 26.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	56.24
Directors or relatives of directors	32.95
Others	10.81
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Ferro Alloys.
Exports :
Products :	Ferro Alloys
Countries :	· Italy
Imports :
Products :	Raw Material
Countries :	· Africa Singapore Korea South East Asia
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C, CAD and Credit

GENERAL INFORMATION

Suppliers :

· KTC Korea Limited, Korea

Gold Matrix Resources Pte. Limited, Singapore

Customers :

· Jindal Steel

Usha Martin Limited

No. of Employees :

32 (Approximately)

Bankers :

· UCO Bank

International Banking Branch, 2, India Exchange Place, 1st Floor., Kolkata - 700001, West Bengal, India

· UCO Bank

Mid Corporate Branch (IBB), 4 and 4/1, Red Cross Place, Kolkata - 700001, West Bengal, India

Facilities :

Fund and Non-Fund = Rs. 105.000 Millions [From UCO Bank]

SECURED LOANS	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
From Banks Cash Credit Facilities	4.768
Total	4.768

Banking Relations :	--
Auditors :
Name :	Rustagi and Company Chartered Accountants
Address :	19, R.N. Mukherjee Road, 1st Floor, Eastern Building, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22480823/ 0856
Fax No.:	91-33-22430746
Income-tax PAN of auditor or auditor's firm :	AAUFS1566M
Enterprises over which key management personnel/ relatives have substantial interest : [As on 31.03.2013]	· Lalwani Ferro Alloys Limited Lalwani Metallics Private Limited Lalwani Capital Markets Limited Apex Capital Markets Limited

CAPITAL STRUCTURE

AS ON 26.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs. 10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,352,000	Equity Shares	Rs. 10/- each	Rs. 13.520 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	13.520	13.520	13.520
(b) Reserves & Surplus	45.554	39.066	34.469
(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)	59.074	52.586	47.989
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	1.000	1.051
(b) Deferred tax liabilities (Net)	0.000	0.000	0.191
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.862	0.661	0.527
Total Non-current Liabilities (3)	0.862	1.661	1.769
(4) Current Liabilities
(a) Short term borrowings	0.094	4.768	36.180
(b) Trade payables	62.547	81.164	48.599
(c) Other current liabilities	2.631	2.921	1.724
(d) Short-term provisions	1.737	0.521	1.396
Total Current Liabilities (4)	67.009	89.374	87.899
TOTAL	126.945	143.621	137.657
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.429	7.456	8.015
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.189	0.189	0.189
(c) Deferred tax assets (net)	0.348	0.171	0.000
(d) Long-term Loan and Advances	0.996	1.051	1.051
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	6.962	8.867	9.255
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	40.041	47.782	20.472
(c) Trade receivables	52.496	27.094	68.514
(d) Cash and cash equivalents	13.921	43.870	23.154
(e) Short-term loans and advances	11.343	14.570	15.703
(f) Other current assets	2.182	1.438	0.559
Total Current Assets	119.983	134.754	128.402
TOTAL	126.945	143.621	137.657

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	343.437	346.779	384.862
		Other Income	1.658	2.009	1.677
		TOTAL	345.095	348.788	386.539
Less	EXPENSES
		Cost of Materials Consumed	216.145	217.817	250.987
		Purchases of Stock-in-Trade	89.466	99.768	100.185
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	3.661	(10.239)	0.227
		Employees benefits expense	6.257	5.334	4.711
		Manufacturing and Operating Overhead	10.171	7.973	6.898
		Other expenses	10.205	12.022	8.094
		TOTAL	335.905	332.675	371.102
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		9.190	16.113	15.437
Less	FINANCIAL EXPENSES		3.723	9.221	8.211
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		5.467	6.892	7.226
Less/ Add	DEPRECIATION/ AMORTISATION		0.527	0.612	0.691
	PROFIT ON SALE OF LEASEHOLD LAND		3.634	0.000	0.000
	PROFIT BEFORE TAX		8.574	6.280	6.535
Less	TAX		2.086	1.683	2.298
	PROFIT AFTER TAX		6.488	4.597	4.237
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings [FOB Basis]	NA	19.464	33.560
	IMPORTS
		Raw Materials	NA	297.954	235.942
	Earnings Per Share (Rs.)		4.80	3.40	3.13

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	1.88	1.32	1.10
Net Profit Margin (PBT/Sales)	(%)	2.50	1.81	1.70
Return on Total Assets (PBT/Total Assets}	(%)	6.78	4.38	4.75
Return on Investment (ROI) (PBT/Networth)		0.15	0.12	0.14
Debt Equity Ratio (Total Debt/Networth)		0.00	0.11	0.78
Current Ratio (Current Asset/Current Liability)		1.79	1.51	1.46

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	13.520	13.520	13.520
Reserves & Surplus	34.469	39.066	45.554
Net worth	47.989	52.586	59.074
long-term borrowings	1.051	1.000	0.000
Short term borrowings	36.180	4.768	0.094
Total borrowings	37.231	5.768	0.094
Debt/Equity ratio	0.776	0.110	0.002

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	384.862	346.779	343.437
		(9.895)	(0.964)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	384.862	346.779	343.437
Profit	4.237	4.597	6.488
	1.10%	1.33%	1.89%

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	Yes
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	Yes
18]	Major customers	Yes
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]	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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10204883	08/03/2010	110,000,000.00	UCO BANK	MID CORPORATE BRANCH (IBB), 4 & 4/1, RED CROSS PLACE, KOLKATA, WEST BENGAL - 700001, INDIA	A80595705
2	10161717	25/04/2011 *	91,500,000.00	UCO BANK	MID CORPORATE BRANCH (IBB), 4 & 4/1, RED CROSS PLACE, KOLKATA, WEST BENGAL - 700001, INDIA	B12270310
3	80021372	26/11/2012 *	105,000,000.00	UCO BANK	INTERNATIONAL BANKING BRANCH, 2, INDIA EXCHANGE PLACE, 1ST FLOOR., KOLKATA, WEST BENGAL - 700001, INDIA	B64597511

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
From Body Corporates	1.000
Total	1.000

FIXED ASSETS:

· Freehold Land

Factory Building

Plant and Machinery

Furniture and Fixture

Vehicles

Office Equipment

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. 60.47
UK Pound	1	Rs. 100.35
Euro	1	Rs. 79.86

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	KAR
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.