MIRA INFORM REPORT

Report Date :

04.02.2014

IDENTIFICATION DETAILS

Name :	R. L. STEELS AND ENERGY LIMITED (w.e.f. 06.08.1985)
Formerly Known As :	R. L. STEELS LIMITED
Registered Office :	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.08.1985
Com. Reg. No.:	55-021690
Capital Investment / Paid-up Capital :	Rs.135.409 Millions
CIN No.: [Company Identification No.]	U27202DL1985PLC021690
TAN No.: [Tax Deduction & Collection Account No.]	AAACR5809B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Carbon, Alloy and Special Steel Products in Rounds, Squares, Flats and Special Profiles.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 520600
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears huge loss recorded by the company during 2013. The external borrowing seems to be huge. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings with great caution.

NOTES :

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

ECGC Country Risk Classification List – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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 DECLINED

Management non co-operative. [91-2431-251163]

LOCATIONS

Registered Office :	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	corporate@rlsteel.com delhioffice@rlsteels.com
Website :	http://www.rlsteels.com http://aurangabad.indiabizclub.com
Corporate Office:	Chitegaon, Paithan Road Gut No. 78/81, Pangra Shivar, Aurangabad – 431107, Maharashtra, India
Tel. No.:	91-2431-251163/251453/251659/251667
Fax No.:	91-2431-251879
E-Mail :	admin@rlsteels.com
Branch Office :	Located at :
Address :	Mumbai 304, Abhay Steel House, 3^rd Floor, Baroda Street, Carnec Bunder, Mumbai – 400009, India
Tel. No.:	91-22-23714886/23481082/23481083/23481084
Fax No.:	91-22-23485736/23483887
E-Mail :	mumbaioffice@rlsteels.com
Address :	Chennai No. 15, Andal Avenue, Gandhi Road, Vella Cherry, Chennai – 600042, Tamilnadu, India
E-Mail :	chennaioffice@rlsteels.com
Address :	Pune Plot No : A-11, Flat No: F/6, F/10, ADC-44, Gayatri Elegance, Sec-26, Near Sambhaji Chowk, Nigdi Pradhikaran – Pune 411044, Maharashtra, India
E-Mail :	marketing@rlsteels.com
Overseas Office:	M/S Pan Gulf International General Trading L.L.C P.O. Box No. 7067, Sharjah, United Arab Emirates (U.A.E)
Tel No.:	+00 9716 5346454
Fax No.:	+00 9716 5346414
E-Mail :	pgi@emirates.net.ae anshul_steel@yahoo.com

DIRECTORS

AS ON 28.09.2013

Name :

Mr. Raghunanadanlal Gupta

Designation :

Director

Address :

58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

25.03.1996

DIN No.:

00061861

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	L45209MH1985PLC035147	DELMA INFRASTRUCTURE LIMITED	Director	12/05/1986	12/05/1986	03/12/2012	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LIMITED	Director	21/06/1989	21/06/1989	-	Active	NO
3	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	31/03/1992	31/03/1992	-	Active	NO
4	U27100DL1988PTC212068	SANT EKNATH ROLLING MILLS PRIVATE LIMITED	Director	01/03/1996	01/03/1996	-	Active	NO
5	U27202DL1985PLC021690	R. L. STEELS AND ENERGY LIMITED	Director	25/03/1996	25/03/1996	-	Active	NO
6	U27100MH1988PTC045799	AKAR INDUSTRIES PRIVATE LIMITED	Director	03/10/2004	03/10/2004	14/05/2012	Active	NO
7	U74999MH1990PTC055391	AURANGABAD FORGING PRIVATE LIMITED	Director	03/10/2004	03/10/2004	14/05/2012	Active	NO
8	U65990MH1987PTC044787	SHATRUNJI INVESTMENT PRIVATE LIMITED	Director	03/10/2004	03/10/2004	-	Active	NO
9	U27310MH1987PTC044788	AKAR ALLOYS PRIVATE LIMITED	Director	03/10/2004	03/10/2004	-	Active	NO
10	U70100MH1988PTC045806	LAVANAYA FINV EST PRIVATE LIMITED	Director	03/10/2004	03/10/2004	-	Active	NO

Name :

Mr. Sunil Todi

Designation :

Director

Address :

Plot No – 40, Sector N -1, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

25.03.1996

DIN No.:

00061952

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	U27202DL1985PLC021690	R. L. STEELS AND ENERGY LIMITED	Director	25/03/1996	25/03/1996	-	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LIMITED	Managing director	16/09/2010	15/09/2005	-	Active	NO
3	U28999WB2000PTC092308	REFORM TOOLS PRIVATE LIMITED	Director	11/03/2008	11/03/2008	13/10/2010	Active	NO
4	U34300PN1985PLC037909	TRINITY AUTO COMPONENTS LIMITED	Director	29/09/2010	09/08/2010	20/12/2010	Active	NO

Name :

Mr. Narendrakumar Gupta

Designation :

Director

Address :

58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

23.09.2008

DIN No.:

00062268

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	L45209MH1985PLC035147	DELMA INFRASTRUCTURE LIMITED	Director	12/05/1986	12/05/1986	03/12/2012	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LIMITED	Director	21/06/1989	21/06/1989	-	Active	NO
3	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	31/03/1992	31/03/1992	-	Active	NO
4	U27202DL1985PLC021690	R. L. STEELS AND ENERGY LIMITED	Director	23/09/2008	15/01/2008	-	Active	NO
5	U13100MH2011PTC215716	AKAR MINERALS PRIVATE LIMITED	Director	05/04/2011	05/04/2011	26/08/2012	Active	NO

Name :

Mr. Nitin Gupta

Designation :

Director

Address :

58-59, Sector N -1 CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

30.06.2004

DIN No.:

00062041

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	U27202DL1985PLC021690	R. L. STEELS AND ENERGY LIMITED	Director	30/06/2004	30/06/2004	-	Active	NO
2	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	28/09/2008	01/09/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2013

Names of Shareholders	No. of Shares	% of Holdings
Raghunandan Lal Gupta	2819120	20.82
Usha Gupta	525640	3.88
Akar Tools Limited, India	1496540	11.05
Sushiladevi Gupta	1266000	9.35
Kathiawad Invest Private Limited, India	1276680	9.43
Raghunandan Lal Gupta HUF	1151540	8.50
Gupta Concast Limited	872900	6.45
Shatrunji Investment Private Limited, India	341600	2.52
Sant Eknath Rolling Mills Private Limited, Limited	212000	1.57
Pan Gulf General Trading Company LLC Dubai	173760	1.28
Shanghai Gulf Geenral Trading Company LLC Dubai	522560	3.86
Aurangabad Forging Private Limited, India	397000	2.93
Lavanya Finvest Private Limited, India	312600	2.31
Akar Alloys Private Limited, India	532900	3.94
Niharika Gupta	302500	2.23
Nitin Gupta	897600	6.63
N.K. Gupta	30000	0.22
Manjil Vinimay Private Limited, India	150000	1.11
Siddheshwari Power Equipment Private Limited, India	160000	1.18
Baisakhi Tracom Private Limited, India	100000	0.74
TOTAL	13540940	100.00

AS ON 28.09.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	5.14
Bodies corporate	43.22
Directors or relatives of directors	51.64
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Carbon, Alloy and Special Steel Products in Rounds, Squares, Flats and Special Profiles.

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity
SMS	MT	144000
RMD	MT	147000

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

• Punjab National Bank, Plot No. 316, N-3, CIDCO, Jalna Road, Aurangabad – 431001, Maharashtra, India
• The Shamrao Vithal Co-operative Bank Limited

· Canara Bank

· IDBI Bank Limited

· The Karur Vysaya Bank Limited

· State Bank of India

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Term loans from banks	1103.551	577.230
Loans taken for fixed assets	2.762	5.348
	1106.313	582.578
Short Term Borrowings
Loans repayable on demand	679.626	1135.947
TOTAL	1785.939	1718.525

Banking Relations :	--
Auditors :
Name :	A K Bagadia and Company Chartered Accountants
Address :	37 Sopariwala House 293, Princes Street Mumbai – 400002, Maharashtra, India
PAN No:	SSBPB7126M
Associates :	· Akar Tools Ltd · Sant Eknath Rolling Mills Private Limited · Kathiawad Investments Private Limited · Akar Alloys Private Limited · Gupta Concast Limited · Shatrunji Investment Private Limited · Akar Minerals Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13540940	Equity Shares	Rs.10/- each	Rs.135.409 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	135.409	115.534	93.792
(b) Reserves & Surplus	(24.926)	270.190	415.169
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	19.680	0.000	52.350
Total Shareholders’ Funds (1) + (2)	130.163	385.724	561.311
(3) Non-Current Liabilities
(a) long-term borrowings	1273.838	748.597	792.308
(b) Deferred tax liabilities (Net)	70.098	75.953	95.306
(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)	1343.936	824.550	887.614
(4) Current Liabilities
(a) Short term borrowings	679.626	1135.947	937.221
(b) Trade payables	623.401	538.387	447.703
(c) Other current liabilities	25.815	80.635	(60.071)
(d) Short-term provisions	0.000	0.000	14.919
Total Current Liabilities (4)	1328.842	1754.969	1339.772
TOTAL	2802.941	2965.243	2788.697
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	828.115	933.293	1034.525
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	353.699	300.494	136.009
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.303	0.303	0.304
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1182.117	1234.090	1170.838
(2) Current assets
(a) Current investments	60.000	54.000	60.000
(b) Inventories	613.991	658.305	579.094
(c) Trade receivables	725.680	771.470	757.010
(d) Cash and cash equivalents	75.317	80.922	80.833
(e) Short-term loans and advances	143.337	160.490	115.559
(f) Other current assets	2.499	5.966	25.363
Total Current Assets	1620.824	1731.153	1617.859
TOTAL	2802.941	2965.243	2788.697

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3807.931	6312.682	5579.516
		Other Income	8.587	7.620	5.017
		TOTAL (A)	3816.518	6320.302	5584.533
Less	EXPENSES
		Cost of materials consumed	2499.664	4149.887	3610.023
		Purchases of stock-in-trade	8.717	3.248	22.924
		Employee benefit expense	90.833	112.011	100.663
		Other expenses	1072.661	1881.325	1597.787
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	74.904	(25.266)	(169.069)
		TOTAL (B)	3746.779	6121.205	5162.328
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		69.739	199.097	422.205
Less	FINANCIAL EXPENSES (D)		258.717	302.028	220.406
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(188.978)	(102.931)	201.799
Less/ Add	DEPRECIATION/ AMORTISATION (F)		111.993	149.564	133.339
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(300.971)	(252.495)	68.460
Less	TAX (H)		(5.854)	(20.549)	21.954
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(295.117)	(231.946)	46.506
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(3.883)	228.063	196.557
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	15.000
	BALANCE CARRIED TO THE B/S		(299.000)	(3.883)	228.063
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	780.505	1552.669	1716.740
	Earnings / (Loss) Per Share (Rs.)		(21.79)	(20.08)	4.96

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(7.73)	(3.67)	0.83
Net Profit Margin (PBT/Sales)	(%)	(7.90)	(4.00)	1.15
Return on Total Assets (PBT/Total Assets}	(%)	(1.26)	(9.47)	2.58
Return on Investment (ROI) (PBT/Networth)		(2.31)	(0.65)	0.12
Debt Equity Ratio (Total Debt/Networth)		15.00	4.89	3.08
Current Ratio (Current Asset/Current Liability)		1.22	0.99	1.21

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	No
10]	Designation of contact person	No
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]	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	No

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10232054	11/10/2011 *	277,300,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, KRANTI CHOWK, AURANGABAD - 431005, Maharashtra, INDIA	B24886939
2	10226231	16/06/2010	135,000,000.00	PUNJAB NATIONAL BANK	AURANGABAD - 431001, Maharashtra, INDIA	A88242896
3	10208212	05/02/2010	170,000,000.00	THE SHAMRAO VITHAL CO-OPERATIVE BANK LIMITED	AURANGABAD - 431001, Maharashtra, INDIA	A81360307
4	10217856	04/09/2009	120,000,000.00	PUNJAB NATIONAL BANK	AURANGABAD - 431001, Maharashtra, INDIA	A75476010
5	10170441	20/07/2009	37,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A67402099
6	10095461	19/03/2008	150,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A35369784
7	10094133	22/01/2013 *	2,865,300,000.00	PUNJAB NATIONAL BANK	PLOT NO 316, N-3,, CIDCO, JALNA ROAD, AURANGABAD - 431001, MAHARASHTRA, INDIA	B68741297
8	10091253	29/12/2012 *	2,865,300,000.00	PUNJAB NATIONAL BANK	PLOT NO 316, N-3,, CIDCO, JALNA ROAD, AURANGABAD - 431001, MAHARASHTRA, INDIA	B69030229
9	10058858	29/06/2007	150,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A18447532
10	10036401	30/12/2006	157,500,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A10306207
* Date of charge modification

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Rupee term loans from others	72.500	72.500
Deferred payment liabilities	95.025	35.719
Loans and advances from related parties	0.000	57.800
TOTAL	167.525	166.019

MARKET OVERVIEW:

Being a core sector, steel industry tracks the overall economic growth in the long term. Also, steel demand, being derived from other sectors like automobiles, consumer durables and infrastructure, its fortune is dependent on the growth of these user industries. The government over the last couple of years has continued to lay emphasis on continuation of infrastructure activities in the country. Increased spending on infrastructure will be a key positive for the steel sector as the demand for steel will get a boost. The continuation of tax sops to the housing sector is another positive for steel demand.

FIXED ASSETS:

· Land Building

· Office Building

· Plant and Machinery

· Electrical

· Installation

· Furniture and Fixture

· Computer

· Office Equipment

· Gas Cylinder

· Lab Equipment

· Vehicle

· Kitchen Equipment

· Fire Fighting 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.62.69
UK Pound	1	Rs.102.97
Euro	1	Rs.84.58

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	4
--LEVERAGE	1~10	4
--RESERVES	1~10	2
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.