MIRA INFORM REPORT

Report Date :

05.07.2014

IDENTIFICATION DETAILS

Name :	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED
Registered Office :	Dhandari Industrial Focal Point Sherpur Kalan, Ludhiana – 141010, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.08.1961
Com. Reg. No.:	16-002397
Capital Investment / Paid-up Capital :	Rs. 115.200 Millions
CIN No.: [Company Identification No.]	U27104PB1961PLC002397
TAN No.: [Tax Deduction & Collection Account No.]	JLDU00181G
PAN No.: [Permanent Account No.]	AAACU2091E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of specialized steel products for automotive ancillary industries, Indian railways and engineering goods industry.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 1660000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a heavy loss during 2013. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

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 facilities: “BB”
Rating Explanation	Moderate risk of default.
Date	06.03.2014

Rating Agency Name	CARE
Rating	Short-term bank facilities: “A4”
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	06.03.2014

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 DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-161-2670719)

LOCATIONS

Registered/ Head Office/ Factory :	Dhandari Industrial Focal Point Sherpur Kalan, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-2670719/ 2670530 (5 lines)
Fax No.:	91-161-2674303/ 2671898
E-Mail :	rksaigal@upperindiasteel.com sales@upperindiasteel.com
Website :	www.upperindiasteel.com
Branch Offices :	Located at · New Delhi · Chennai · Ambala City

DIRECTORS

As on 30.12.2013

Name :

Mr. Gursimram Singh Grewal

Designation :

Managing Director

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

01.12.1964

Qualification :

Bachelors in Economics

Date of Appointment :

11.01.2007

PAN No.:

ABYPG9316J

DIN No.:

01139494

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	U27320PB1964PLC002516	UPPER INDIA SPECIAL CASTINGS LIMITED	Director	29/04/1993	29/04/1993	01/12/2007	Active	NO
2	U45202PB2006PTC030293	EXCEL SPORTS PVT LTD	Director	05/06/2006	05/06/2006	16/08/2006	Active	NO
3	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Managing director	11/01/2007	11/01/2007	-	Active	NO

Name :

Mr. Gurlal Singh Grewal

Designation :

Joint Managing Director

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

04.04.1938

Qualification :

Graduate

Date of Appointment :

29.09.1973

DIN No.:

00302597

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	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Whole-time director	29/09/1973	29/09/1973	-	Active	NO
2	U27320PB1964PLC002516	UPPER INDIA SPECIAL CASTINGS LIMITED	Director	26/03/1993	26/03/1993	-	Active	NO
3	U01122PB1994PTC014755	INDUS FLORA TECH PRIVATE LIMITED	Director	27/06/1994	27/06/1994	-	Active	NO
4	U01119TN1995PLC029830	INDUS FLORABASE LIMITED	Director	13/02/1995	13/02/1995	18/08/2009	Active	NO
5	U15205PB2000PTC023238	NUTRIMAX FOOD PRIVATE LIMITED	Managing director	06/01/2000	06/01/2000	-	Active	NO

Name :

Mr. Kushal Grewal

Designation :

Director

Address :

653, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

22.03.1964

Qualification :

Masters in Business Administration

Date of Appointment :

11.01.2007

DIN No.:

01191519

Name :

Mr. Saminder Singh Grewal

Designation :

Whole – time Director

Address :

654, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

14.12.1974

Qualification :

Engineering Graduate

Date of Appointment :

04.10.2006

DIN No.:

00989278

Name :

Mr. Ashok Singh Garcha

Designation :

Director

Address :

B-XX-2906, Gurdev Nagar, Civil Lines, Ludhiana, Punjab, India

Date of Birth/Age :

18.05.1964

Date of Appointment :

29.09.2001

PAN No.:

ABKPG4763H

DIN No.:

00344374

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	U29212PB1972PTC003094	ASHOK ENGINEERING AND AGRICULTURAL INDUSTRIES PVT LTD	Director	19/02/1988	19/02/1988	Active	NO
2	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Director	29/09/2001	29/09/2001	Active	NO

Name :

Mr. Sant Prasad Singh Grewal

Designation :

Director

Address :

1229, Maple Street, Box 102, Fenwick, Ontario, Canada, LOS ICO

Date of Birth/Age :

28.08.1940

Date of Appointment :

29.09.2001

PAN No.:

AFKPG4271J

DIN No.:

00552395

Name :

Mr. Gurmohan Singh Grewal

Designation :

Director

Address :

1746, S. Highland Drive, Sparta, WI54656, U.S.A

Date of Birth/Age :

04.10.1938

Date of Appointment :

29.09.2001

PAN No.:

AFMPG5409A

DIN No.:

00791151

Name :

Mr. Rajindar S. Grewal

Designation :

Director

Address :

465, Mooresfield Street, Elgin, Illinois – 60124, U.S.A

Date of Birth/Age :

22.01.1965

Date of Appointment :

06.03.2007

PAN No.:

CAVPS7478B

DIN No.:

01745568

Name :

Pritpal Singh Grewal

Designation :

Chairman

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

15.03.1931

Date of Appointment :

10.01.2007

DIN No.:

00344057

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	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Director	10/01/2007	21/08/1961	Active	NO

KEY EXECUTIVES

Name :	Mr. Raj Kumar Saigal
Designation :	Secretary
Address :	168, Phase-II, Urban Estate, Dugri Road, Ludhiana, Punjab, India
Date of Birth/Age :	24.08.1962
Date of Appointment :	01.04.1990
PAN No.:	AEBPS2331D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.12.2013

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

As on 30.12.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	75.65
Other top fifty shareholders	24.35
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of specialized steel products for automotive ancillary industries, Indian railways and engineering goods industry.

Products :

Item Code No. (ITC Code)	Product Description
72283011	Bars and Rods

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Canara Bank, Bharat Nagar Chowk, Ludhiana - 141001, Punjab, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks (For Purchase of cars against hire purchase agreement)	4.649	11.248
Rupee term loans from others	0.000	0.282
SHORT TERM BORROWINGS
Working capital loans from banks (From Canara Bank: Against Hypothecation of stocks of raw materials, semi-finished goods, finished goods, debtors and first charge on part of fixed assets of the company and guaranteed by some of the directors. From Canbank Factors Limited: Against Specific debtors and guaranteed by Directors. From SBI Global Factors: Against Specific debtors and guaranteed by Directors)	734.265	718.227
Total	738.914	729.757

Banking Relations :	--
Financial Institution :	SBI Factors Commercial Services Private Limited, BXXI-14627, Gandhi Nagar, Near Dholewal Chowk, G T Road, Ludhiana - 141003, Punjab, India
Auditors :
Name :	D. Sharma and Company Chartered Accountants
Address :	E.R. 18, Pacca Bagh, Civil Lines, Jallandar, Punjab, India
Income-tax PAN of auditor or auditor's firm :	AAAFD5551H
Enterprises/Trusts over which Key Management Personnel have control and with whom transactions have been made during the financial year:	· Satinder Kaur Education Trust · Bhai Chetan Singh Education Trust

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions
2000000	Preference Shares	Rs.10/- each	Rs. 20.000 Millions
	Total		Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9600000	Equity Shares	Rs.10/- each	Rs. 96.000 Millions
1920000	Preference Shares	Rs.10/- each	Rs. 19.200 Millions
	Total		Rs. 115.200 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	115.200	115.200	115.200
(b) Reserves & Surplus	300.906	472.591	467.110
(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)	416.106	587.791	582.310
(3) Non-Current Liabilities
(a) long-term borrowings	117.649	120.430	19.419
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	117.649	120.430	19.419
(4) Current Liabilities
(a) Short term borrowings	862.060	830.562	839.851
(b) Trade payables	26.594	30.002	54.614
(c) Other current liabilities	37.437	45.489	37.028
(d) Short-term provisions	0.000	2.901	8.480
Total Current Liabilities (4)	926.091	908.954	939.973
TOTAL	1459.846	1617.175	1541.702
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	487.177	476.997	417.663
(ii) Intangible Assets	2.663	3.536	3.009
(iii) Capital work-in-progress	0.000	0.000	13.155
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.500	0.500	0.500
(c) Deferred tax assets (net)	22.196	22.085	23.230
(d) Long-term Loan and Advances	15.895	15.895	15.976
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	528.431	519.013	473.533
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	524.622	490.512	608.745
(c) Trade receivables	339.921	508.994	386.933
(d) Cash and cash equivalents	25.344	52.897	22.902
(e) Short-term loans and advances	41.528	45.759	49.589
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	931.415	1098.162	1068.169
TOTAL	1459.846	1617.175	1541.702

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2392.361	2441.017	2140.362
		Other Income	9.577	12.342	6.203
		TOTAL (A)	2401.938	2453.359	2146.565
Less	EXPENSES
		Cost of Materials Consumed	1641.046	1509.053	1298.894
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(42.327)	(22.441)	(42.802)
		Employees benefits expense	288.522	277.755	227.273
		Other expenses	503.417	510.925	438.444
		TOTAL (B)	2390.658	2275.292	1921.809
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.280	178.067	224.756
Less	FINANCIAL EXPENSES (D)		134.661	127.858	107.661
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(123.381)	50.209	117.095
Less/ Add	DEPRECIATION/ AMORTISATION (F)		47.735	42.519	41.474
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(171.116)	7.690	75.621
Less	TAX (H)		(0.251)	(2.057)	27.486
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(170.865)	9.747	48.135
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB basis	193.926	134.078	68.755
	TOTAL EARNINGS		193.926	134.078	68.755
	IMPORTS
		Raw Materials	833.052	525.260	393.696
		Components and Spare Parts	1.515	0.784	3.809
	TOTAL IMPORTS		834.567	526.044	397.505
	Earnings Per Share (Rs.)		(17.80)	0.66	4.75

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(7.11)	0.40	2.24
Net Profit Margin (PBT/Sales)	(%)	(7.15)	0.32	3.53
Return on Total Assets (PBT/Total Assets}	(%)	(11.91)	0.48	5.03
Return on Investment (ROI) (PBT/Networth)		(0.41)	0.01	0.13
Debt Equity Ratio (Total Debt/Networth)		2.35	1.62	1.48
Current Ratio (Current Asset/Current Liability)		1.01	1.21	1.14

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	115.200	115.200	115.200
Reserves & Surplus	467.110	472.591	300.906
Net worth	582.310	587.791	416.106
long-term borrowings	19.419	120.430	117.649
Short term borrowings	839.851	830.562	862.060
Total borrowings	859.270	950.992	979.709
Debt/Equity ratio	1.476	1.618	2.354

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	2140.362	2441.017	2392.361
		14.047	(1.993)

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	2140.362	2441.017	2392.361
Profit	48.135	9.747	(170.865)
	2.25%	0.40%	(7.14%)

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]	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10199511	30/12/2009	2,050,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227, D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A78497328
2	80044214	05/12/2011 *	655,000,000.00	CANARA BANK	BHARAT NAGAR CHOWK, LUDHIANA, PUNJAB - 141001, INDIA	B27449917

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Deposits from directors	113.000	108.900
SHORT TERM BORROWINGS
Deposits from directors	33.900	37.350
Deposits from others	93.895	74.985
Total	240.795	221.235

PERFORMANCE OF THE COMPANY:

Due to slow down in the Indian Steel Industry the company’s production/sales have decreased. The production of finished goods has come down from 51200 MT to 48561 MT. Though there is marginal decline in sales but hefty increase in input cost combined with low demand has resulted in heavy losses during the last year. As the cost of input is continuously increasing the company had planned investment in modernized equipment of rolling mill to bring down rolling cost. The commissioning of the modernized rolling mill got delayed and as a result in the first half of current year also the company could not do well. In the month of November-2013 the modernized rolling mill has been commissioned and the results are encouraging. Also by strengthening certain process the company has been able to increase the productivity on its various rolling mills. Apart from this the company has also taken steps to reduce the man power cost so as to match its current production level and bring down the fixed cost. All these are expected to yield better results in years to come.

CONTINGENT LIABILITIES:

1. LC opened by the bankers in favour of suppliers-Rs 149.425Millions (including Rs 103.000 Millions LC opened against 100% margin provided to bank) (Previous year Rs 50.005 Millions).

2. Due to loss the company has not make provision for payment of dividend on preference capital to the extent of Rs 2.496 Millions.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Other Equipments

Intangible Assets

· Computer Software

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.59.79
UK Pound	1	Rs.102.66
Euro	1	Rs.81.32

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.