MIRA INFORM REPORT

Report Date :

03.07.2014

IDENTIFICATION DETAILS

Name :	LAXCON STEELS LIMITED [w.e.f. 21.06.2007]

Formerly Known As :	LAXCON STEELS PRIVATE LIMITED

Registered Office :	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabad – 382 220, Gujarat

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	12.08.1999

Com. Reg. No.:	04-036413

Capital Investment / Paid-up Capital :	Rs.134.429 Millions

CIN No.: [Company Identification No.]	U27100GJ1999PLC036413

TAN No.: [Tax Deduction & Collection Account No.]	AHML00104G

PAN No.: [Permanent Account No.]	AAACL5064A

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer, Exporter and Importer of Alloy Steel, Stainless Steel, Mild Steel etc.

No. of Employees :	260 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 2800000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject belongs to Delhi based Gopal Group of companies. It is an established company having satisfactory track. The company possesses a favorable financial profile marked by adequate networth base along with a moderate liquidity owing to the elongation of its operating cycle due to high working capital intensity of its operations. Management has reported a decent sales volume and moderate profitability during FY14, which is further susceptible to volatility in raw material prices and foreign exchange fluctuations. The rating also take into consideration the slight improvement in its liquidity due to equity infusion by the promoters. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of vast experience and resourcefulness of the promoters, the subject can be considered for business dealing 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.

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facility = BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	11.02.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facility = A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	11.02.2014

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 31-03-2012.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Heena
Designation :	Accounts Executive
Contact No.:	91-79-40007600
Date :	10.06.2014

LOCATIONS

Registered Office/ Factory :	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabad – 382 220, Gujarat, India
Tel. No.:	91-79-40007600
Fax No.:	91-79-40007666
E-Mail :	laxcon@gopalgroup.com laxconoffice@gopal.com officelaxcon@gopalgroup.com exim@gopalgroup.com
Website :	http://www.gopalgroup.com http://www.laxconsteels.com
Area :	35000 Sq. ft.
Location :	Owned

Administrative Office :	Rajii Arcrade, 2^nd Floor, Opposite Gurukul Temple, Mem Nagar, Ahmedabad, Gujarat, India
Tel. No.:	91-79-40007600 [100 Lines] / 27478474
Fax No.:	91-79-4007666 / 67 / 27478471
Area :	2060 Sq. ft.
Location :	Owned

Corporate Office :	C-55/2, Wazirpur Industrial Area, Delhi – 110052, India
Tel. No.:	91-11-42952500 [100 Lines] / 27377001/ 5
Fax No.:	91-11-27377373 / 7474
E-Mail :	sales@gopalgroup.com info@gopalgroup.com

DIRECTORS

As on 21.09.2013

Name :	Mr. Gopal Swarup Surender Pal Gupta
Designation :	Managing Director
Address :	H-34, Ashok Vihar, Phase – I, Delhi – 110 052, India
Date of Birth/Age :	26.03.1965
Qualification :	B.Com.
Date of Appointment :	05.04.2007
PAN No :	AAGPG3933L
DIN :	00381600

Name :	Mr. Vinod Surender Pal Gupta
Designation :	Director
Address :	H-34, Ashok Vihar, Phase – I, Delhi – 110 052, India
Date of Birth/Age :	07.06.1977
Qualification :	B.Com.
Date of Appointment :	20.03.2002
PAN No :	AACHV3943D
DIN :	00381782

Name :	Mr. Sanjay Gupta
Designation :	Director
Address :	1009/67, Deva Ram Park, Tri Nagar, Delhi, India
Date of Birth/Age :	08.11.1968
Qualification :	B.Com.
Date of Appointment :	20.03.2002
PAN No :	AAIPG0571C
DIN :	00383021

Name :	Mr. Rajan G Garg
Designation :	Director
Address :	20/42, West Punjabi Baug, New Delhi – 140 020, India
Date of Birth/Age :	25.09.1975
Qualification :	B.Com.
Date of Appointment :	01.04.2004
PAN No :	AHFPG1259F
DIN :	00439436

Name :	Mr. Naresh Kumar Kakkar
Designation :	Director
Address :	76, Vaishali Pitampura, Delhi – 110088, India
Date of Birth/Age :	15.06.1942
Date of Appointment :	20.03.2002
DIN :	01541205

KEY EXECUTIVES

Name :	Ms. Heena
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.09.2013

Names of Shareholders		No. of Shares
Gopal Swarup Gupta		2010000
Gopal Swarup Gupta (HUF)		600000
Gaurav Gupta		736000
Pooja Gupta		999379
Surendra Pal Gupta		1705000
Surendra Pal Gupta (HUF)		1919000
Sita Gupta		1260000
Sangita Gupta		500000
Vinod Gupta		1916000
Vinod Gupta (HUF)		100000
Varun Gupta		1060766
Alankit Assignments Limited, India		200000
Kunal Jain		436750
Total		13442895

As on 21.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	4.75
Directors or relatives of Directors	95.25
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Alloy Steel, Stainless Steel, Mild Steel etc.

Products :

Products Description	ITC Code No.
A.S. Billets and A.S. Billets (Ann)	72249091
S.S. Billets and S.S. Billets(Sp)	72189910
A.S. Ingots	72241000
A S Round Bar Bright Bar, A.S. Round Bar, A.S. Round Bar (Anneled) , A.S. Round Forgings	72283029
S S Round Bar Brightbar, S.S. Round Bar (Bright Bar) (Sp), S.S. Round Bar, S.S. Round Bar (Ann), S.S. Round Bar (SP), S.S. Round bar (Sp)(An)	72223099
A.S. Flats	72269190
S.S. Flat, S S Flat(Sp), S.S. Flat(Sp) ( Pick)	72201190
M.S. Round Bar	72141090
S S Forging-Machined, S.S. Forgings Machined ( SP ) , S S Roundbar Forgings, S.S. Roundbar Forging (Ann), S.S. Roundbar Forging(Sp) (BB), S.S. Roundbars Forgings ( SP ) ,	73269060
S.S. Angle, S.S. Angle ( SP ) ( Pick ) , S.S. Angle(Pick), S.S. Angle(Sp)(Pick)	72224020
S.S. Strip (Pickled), S.S. Strips ( SP ) (Pickled )	72201222
S.S.Wire Rod (Sp)	72210090
S.S. Forging Ring	73269099
Ferro Molybdenum Lumps	72027000
Ferro Silicon	72022100

GENERAL INFORMATION

No. of Employees :

260 (Approximately)

Bankers :

Indian Overseas Bank, First Floor, Khemka House, Drive-In-Road, Ahmedabad – 380054, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Rupee term loans from banks	75.818	81.932
Loans and advances from related parties	3.224	3.779
Short-term borrowings
Foreign currency term loans from banks	469.331	51.936
Working capital loans from banks	588.072	671.252
Total	1136.445	808.899


Banking Relations :	---

Auditors :
Name :	H. V. Vasa and Company Chartered Accountants
Address :	B-2, Usha Kiran, Opposite Khanpur Gate, Khanpur, Ahmedabad – 380 001, Gujarat, India
Tel. No.:	91-79-25502985
Fax No.:	91-79-25503700
E-Mail :	hvvasaco@gmail.com
PAN No.:	AAGPV2872F

Associate :	Mega Steels Private Limited Ocean Steels Private Limited Allied Holdings Private Limited G G Projects Private Limited Comet Builders Private Limited Gopal Udyog Limited

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	Gagar Steel Private Limited Gopal Industries Supraneet Finance and Consultants Limited

CAPITAL STRUCTURE

As on 21.09.2013

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

13442895	Equity Shares	Rs.10/- each	Rs.134.429 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	134.429	130.061	128.042
(b) Reserves & Surplus	565.751	398.051	278.925
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	17.650
Total Shareholders’ Funds (1) + (2)	700.180	528.112	424.617

(3) Non-Current Liabilities
(a) long-term borrowings	185.201	172.182	152.825
(b) Deferred tax liabilities (Net)	81.074	68.615	59.271
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.712	1.273	0.589
Total Non-current Liabilities (3)	267.987	242.070	212.685

(4) Current Liabilities
(a) Short term borrowings	1057.403	731.294	708.319
(b) Trade payables	146.624	167.648	146.201
(c) Other current liabilities	121.377	97.926	115.635
(d) Short-term provisions	57.355	70.610	38.826
Total Current Liabilities (4)	1382.759	1067.478	1008.981

TOTAL	2350.926	1837.660	1646.283

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	485.068	423.040	336.568
(ii) Intangible Assets	0.053	0.019	0.030
(iii) Capital work-in-progress	3.562	75.443	109.251
(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	36.068	3.525	2.696
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	524.751	502.027	448.545

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	796.561	623.675	483.828
(c) Trade receivables	616.561	451.698	483.278
(d) Cash and cash equivalents	79.275	7.142	9.878
(e) Short-term loans and advances	332.057	252.460	219.288
(f) Other current assets	1.721	0.658	1.466
Total Current Assets	1826.175	1335.633	1197.738

TOTAL	2350.926	1837.660	1646.283

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3599.896	3716.460	2547.293
		Other Income	42.592	48.503	16.147
		TOTAL (A)	3642.488	3764.963	2563.440

Less	EXPENSES
		Cost of Materials Consumed	2662.847	2834.207	1851.282
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(58.018)	(112.859)	(66.547)
		Employees benefits expense	22.715	17.456	11.196
		Other expenses	705.801	736.375	579.052
		TOTAL (B)	3333.345	3475.179	2374.983

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		309.143	289.784	188.457

Less	FINANCIAL EXPENSES (D)		128.836	122.442	67.611

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		180.307	167.342	120.846

Less/ Add	DEPRECIATION/ AMORTISATION (F)		42.524	36.483	28.187

	PROFIT BEFORE TAX (E-F) (G)		137.783	130.859	92.659

Less	TAX (H)		45.458	42.544	36.136

	PROFIT AFTER TAX (G-H) (I)		92.325	88.315	56.523

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		314.370	226.055	169.532

	BALANCE CARRIED TO THE B/S		406.695	314.370	226.055

	Earnings Per Share (Rs.)		7.10	6.90	4.4

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.53	2.35	2.20

Net Profit Margin (PBT/Sales)	(%)	3.83	3.52	3.64

Return on Total Assets (PBT/Total Assets}	(%)	5.87	7.43	6.03

Return on Investment (ROI) (PBT/Networth)		0.20	0.25	0.22

Debt Equity Ratio (Total Debt /Networth)		1.77	1.71	2.03

Current Ratio (Current Asset/Current Liability)		1.32	1.25	1.19

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	128.042	130.061	134.429
Reserves & Surplus	278.925	398.051	565.751
Net worth	406.967	528.112	700.180

long-term borrowings	152.825	172.182	185.201
Short term borrowings	708.319	731.294	1057.403
Total borrowings	861.144	903.476	1242.604
Debt/Equity ratio	2.116	1.711	1.775

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2547.293	3716.460	3599.896
		45.898	(3.136)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2547.293	3716.460	3599.896
Profit	56.523	88.315	92.325
	2.22%	2.38%	2.56%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular	31.03.2013	31.03.2012	31.03.2011

Current maturities of long-term debt	39.808	35.603	48.344

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last 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

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Intercorporate borrowings	77.346	56.695
Loans and advances from directors	28.813	29.776
Short-term borrowings
Loans and advances from related parties	0.000	8.106
Total	106.159	94.577

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10407266	15/03/2013 *	100,000,000.00	PUNJAB NATIONAL BANK	VANIJAYA BHAVAN, AHMEDABAD, GUJARAT - 380022, INDIA	B71538953
2	10165317	13/06/2009	1,575,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	A65289795
3	80012130	06/10/2012 *	1,462,400,000.00	INDIAN OVERSEAS BANK	1ST FLOOR, KHEMKA HOUSE, DRIVE-IN ROAD,, AHMEDABAD, GUJARAT - 380054, INDIA	B62518519
4	80012131	18/10/2012 *	1,462,400,000.00	INDIAN OVERSEAS BANK	1ST FLOOR, KHEMKA HOUSE, DRIVE-IN ROAD,, AHMEDABAD, GUJARAT - 380054, INDIA	B62527940

* Date of charge modification

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Computer

· Office Equipments

· Vehicles

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 records 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.60.11
UK Pound	1	Rs.102.32
Euro	1	Rs.81.75

INFORMATION DETAILS

Information Gathered by :	HET

Analysis Done by :	SUB

Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.