MIRA INFORM REPORT

Report Date :

09.07.2014

IDENTIFICATION DETAILS

Name :	ATUL FASTENERS LIMITED
Registered Office :	C 45, Industrial Area Phase-III, Mohali – 160055, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	07.07.1995
Com. Reg. No.:	016746
Capital Investment / Paid-up Capital :	Rs. 7.500 Millions
CIN No.: [Company Identification No.]	U29309PB1995PLC016746
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Fasteners.
No. of Employees :	110 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 190000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. General financial position of the company seems to be sound. Profitability of the company is fair. Trade relations are fair. Business is active. Payment terms are reported to be slow but 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 – 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

NEWS

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.

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

Name :	Mr. Harpal
Designation :	Accounts Department
Contact No.:	91-172-4520000
Date :	07.07.2014

LOCATIONS

Registered Office / Factory:	C 45, Industrial Area Phase-III, Mohali – 160055, Punjab, India
Tel. No.:	91-172-4520000-99 / 2272156 / 2273361
Fax No.:	91-172-2271335 / 2272156
E-Mail :	atul@atulfasteners.com atulfasteners@airtelmail.in pgamca@gmail.com atulludher@gmail.com accounts.atulfasteners@gmail.com
Website :	http://www.atulfasteners.com
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Sudhir Kumar Singal

Designation :

Director

Address :

# 165, Sector-27A, Chandigarh, India

Date of Appointment :

01.04.1999

DIN No. :

00325659

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	U29219CH1992PTC012129	GREATWAY ENGINEERING PVT LTD	Director	12/02/1995	12/02/1995	-	Active	NO
2	U29309PB1995PLC016746	ATUL FASTENERS LIMITED	Director	01/04/1999	01/04/1999	-	Active	NO
3	U72200CH2001PTC024506	PARAMATRIX INFO SOLUTIONS PRIVATE LIMITED	Director	24/12/2005	24/12/2005	26/09/2013	Active	NO
4	U00060CH2005PTC029345	ZURVAN INDUSTRIES PRIVATE LIMITED	Director	30/09/2008	27/07/2007	03/08/2010	Active	NO
5	U28910CH2007PTC030902	EXPO FORGINGS PRIVATE LIMITED	Director	14/08/2007	14/08/2007	-	Active	NO
6	U70109CH2010PTC032284	GREATWAY INFRA ESTATES PRIVATE LIMITED	Director	16/06/2010	16/06/2010	-	Active	NO
7	U70102CH2011PTC032960	DEVKI ESTATES PRIVATE LIMITED	Director	16/05/2011	16/05/2011	-	Active	NO
8	U25202CH1996PTC018358	SATYAM POLYPACKS PRIVATE LIMITED	Additional director	02/12/2013	02/12/2013	-	Active	NO

Name :

Mr. Ram Swaroop Kapoor

Designation :

Director

Address :

# 12, Sector-20A, Chandigarh, India

Date of Appointment :

07/07/1995

DIN No. :

00776633

Name :

Mr. Raj Kumar Luther

Designation :

Director

Address :

# 24, Sector-6, Chandigarh, India

Date of Appointment :

07.07.1995

DIN No. :

00867200

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	U29309PB1995PLC016746	ATUL FASTENERS LIMITED	Director	07/07/1995	07/07/1995	-	Active	NO
2	U65921CH1992PLC012864	PGA Professionals Limited	Director	15/06/2013	15/06/2013	31/08/2013	Active	NO

Name :

Mr. Atul Luther

Designation :

Director

Address :

H. No. 24, Sector-6, Panchkula, Haryana - 134109, India

Date of Birth/Age :

21.07.1976

Date of Appointment :

01.01.2013

DIN No. :

06455567

KEY EXECUTIVES

Name :	Mr. Harpal
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Name of Shareholders	No. of Shares
Raj Kumar Luther	365,500
Atul Luther	100
R.S Kapoor	100
P.S Sehgal	100
Yashpal Singh	100
Shakti Luther	6,300
Sukhdev Singh	2,800
Vishal Gupta	103,600
Sudhir Kumar	140,000
Greatway Engineering Private Limited, India	131,400
Total	750,000

AS ON 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	17.52
Directors or relatives of Directors	82.48
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Fasteners.
Imports :
Products :	Raw Material
Countries :	· Taiwan
Terms :
Selling :	Cash and Depend
Purchasing :	Cash and Depend

GENERAL INFORMATION

Suppliers :

Mahajan Engineering Works

Customers :

Annu Industries Limited

No. of Employees :

110 (Approximately)

Bankers :

· Small Industries Development Bank Of India, SCO 145-146, Sector-17C, Chandigarh - 160017, Chandigarh, India

· Punjab National Bank, Sector 22-D, Chandigarh - 160022, Chandigarh, India

· HDFC Bank Limited

· ICICI Bank

· IDBI Bank

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans from bank
SIDBI - III	0.000	0.480
SIDBI - IV	0.672	1.116
SIDBI – V	2.875	4.375
SIDBI – VI	3.891	5.223
SIDBI – VII [Secured against 1^st charge on fixed assets of company. This facility is further secured by personal guarantee of directors.]	7.740	0.000
HDFC Bank Limited	0.000	0.135
ICICI Bank – Car Loans 1701 (Against Toyota Fotuner)	1.585	0.000
ICICI Bank – Car Loans 1420 (Against Audi A6 2.0)	2.257	0.000
Tata Capital Limited	0.000	0.106
SHORT TERM BORROWINGS
Cash Credit Account from IDBI [Secured against 1^st charge on current asset 2^nd charges on fixed assets of company. This facility is further secured by personal guarantee of directors.]	33.972	25.742
Total	52.992	37.177

Banking Relations :	--
Financial Institution :	Tata Capital Limited
Auditors :
Name :	Prem Garg and Associates Chartered Accountants
Address :	SCO 2461, Sector 22 C, Chandigarh – 160022, India
PAN No.:	AADFP9547J
Sister Concern :	Atul Industries

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750,000	Equity Shares	Rs.10/- each	Rs. 7.500 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	7.500	7.500	7.500
(b) Reserves & Surplus	38.255	5.898	3.947
(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)	45.755	13.398	11.447
(3) Non-Current Liabilities
(a) long-term borrowings	32.534	15.648	13.870
(b) Deferred tax liabilities (Net)	0.324	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.436	1.026	0.794
Total Non-current Liabilities (3)	34.294	16.674	14.664
(4) Current Liabilities
(a) Short term borrowings	33.972	25.742	12.385
(b) Trade payables	6.664	3.673	3.392
(c) Other current liabilities	6.693	1.900	3.062
(d) Installment of Term Loan due for paymentwithin one year	5.016	3.393	2.840
(e) Short-term provisions	0.018	0.010	0.018
Total Current Liabilities (4)	52.363	34.718	21.697
TOTAL	132.412	64.790	47.808
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	62.463	11.653	12.072
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.321	0.123
(d) Long-term Loan and Advances	0.456	0.446	0.419
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	62.919	12.420	12.614
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	24.488	12.528	9.522
(c) Trade receivables	32.896	27.212	20.357
(d) Cash and cash equivalents	3.950	4.333	2.443
(e) Short-term loans and advances	8.159	8.297	2.872
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	69.493	52.370	35.194
TOTAL	132.412	64.790	47.808

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Revenue from operations	134.299	110.044	83.277
	Other Income	0.531	0.149	1.091
	TOTAL (A)	134.830	110.193	84.368
Less	EXPENSES
	Cost of Materials Consumed	80.930	69.165	50.468
	Purchases of Stock-in-Trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(2.472)	0.792	(2.456)
	Employees benefits expense	10.202	7.200	6.855
	Other expenses	27.305	21.919	20.649
	TOTAL (B)	115.965	99.076	75.516
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	18.865	11.117	8.852
Less	FINANCIAL EXPENSES (D)	8.207	5.429	2.967
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	10.658	5.688	5.885
Less/ Add	DEPRECIATION/ AMORTISATION (F)	3.960	2.708	2.445
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	6.698	2.980	3.440
Less	TAX (H)	2.064	1.029	1.140
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	4.634	1.951	2.300
	EARNINGS IN FOREIGN CURRENCY	NIL	NIL	NIL
	IMPORTS
	Raw Materials	22.668	NIL	NIL
	Capital Goods	0.558	NIL	NIL
	TOTAL IMPORTS	23.226	NIL	NIL
	Earnings / (Loss) Per Share (Rs.)	6.18	2.59	NA

Particulars	31.03.2014
Sales Turnover (Approximately)	170.000

The above information has been parted by Mr. Harpal (Accounts Department).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.44	1.77	2.73
Net Profit Margin (PBT/Sales)	(%)	4.99	2.71	4.13
Return on Total Assets (PBT/Total Assets}	(%)	5.06	4.62	7.21
Return on Investment (ROI) (PBT/Networth)		0.15	0.22	0.30
Debt Equity Ratio (Total Debt /Networth)		1.45	3.09	2.29
Current Ratio (Current Asset/Current Liability)		1.33	1.51	1.62

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	7.500	7.500	7.500
Reserves & Surplus	3.947	5.898	38.255
Net worth	11.447	13.398	45.755
long-term borrowings	13.870	15.648	32.534
Short term borrowings	12.385	25.742	33.972
Total borrowings	26.255	41.390	66.506
Debt/Equity ratio	2.294	3.089	1.454

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)
Revenue from operations	83.277	110.044	134.299
		32.142	22.041

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	83.277	110.044	134.299
Profit/(Loss) After Tax	2.300	1.951	4.634
	2.76%	1.77%	3.45%

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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Interest free loans from
Holding Company	0.000	0.000
Other shareholders	0.923	0.813
Other	12.591	3.399
Total	13.514	4.212

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10440898	31/07/2013	8,500,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SCO 145-146, FIRST AND SECOND FLOOR, SECTOR 17C, CHANDIGARH, CHANDIGARH - 160017, INDIA	B81053357
2	10412312	13/03/2013	9,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SCO 145-146, FIRST AND SECOND FLOOR, SECTOR 17C, CHANDIGARH, CHANDIGARH - 160017, INDIA	B70955083
3	10350147	27/03/2012	6,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SCO 145-146, FIRST AND SECOND FLOOR, SECTOR 17C, CHANDIGARH, CHANDIGARH - 160017, INDIA	B37720430
4	10307352	22/02/2014 *	50,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SCO 145-146, FIRST AND SECOND FLOOR, SECTOR 17C, CHANDIGARH, CHANDIGARH - 160017, INDIA	B97078745
5	10282717	09/03/2011	6,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SCO 145-146, FIRST AND SECOND FLOOR, SECTOR 17C, CHANDIGARH, CHANDIGARH - 160017, INDIA	B11623816
6	10257133	22/12/2010	1,745,000.00	SMALL INDUSTRIES SEVELOPMENT BANK OF INDIA	SCO145-146, 1ST & 2ND FLOORS, SECTOR 17 C, CHANDIGARH, CHANDIGARH - 160017, INDIA	B02387041
7	10136798	22/12/2008	3,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	S.C.O 145-146, SECTOR-17 C, CHANDIGARH, CHANDIGARH  , CHANDIGARH - 160017, INDIA	A54257217
8	10130208	18/09/2009 *	22,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SCO 145-146, SECTOR 17C, CHANDIGARH, CHANDIGARH -  160017, INDIA	A71848311
9	10107125	07/05/2008	100,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SCO 145-146, IST & IIND FLOOR, SECTOR 17C, CHANDIGARH, CHANDIGARH - 160017, INDIA	A39817770
10	10103243	05/02/2008	3,000,000.00	SMALL INDUSTRIAL DEVELOPMENT BANK OF INDIA	SIDBI, SCO 145-146, SECTOR 17-C, CHANDIGARH, CHANDIGARH - 160017, INDIA	A38097903

* Date of charge modification

FIXED ASSETS

· Industrial Plot

· Office Space (L&T)

· Computers

· Air Conditioner

· Office Equipment

· Furniture and Fixture

· Electric Installation

· Generator Set

· Plant and Machinery

· Building

· 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.59.79
UK Pound	1	Rs.102.42
Euro	1	Rs.81.32

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	KAR
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		42

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.