MIRA INFORM REPORT

Report Date :

14.07.2014

IDENTIFICATION DETAILS

Name :	STERLING STONEX PRIVATE LIMITED
Registered Office :	2-98/3, 10-B, Kakatiya Nagar, Habsiguda, Hyderabad – 500007, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.09.1995
Com. Reg. No.:	01-021590
Capital Investment / Paid-up Capital :	Rs.7.500 Millions
CIN No.: [Company Identification No.]	U14101AP1995PTC021590
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of mining and export of dimensional colour granites blocks and processing of monuments and memorials for export.
No. of Employees :	250 (Approximately)

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 350000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company performing normal however, the rating takes into consideration highly fragmented granity industry with large number of players and intense domestic competition. Trade relations are reported as fair. Business is active. Payments 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	ICRA
Rating	Term loan (B+)
Rating Explanation	High risk of default.
Date	May 2014

Rating Agency Name	ICRA
Rating	Cash Credit (A4)
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	May 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

Name :	Mr. Prakash Patro
Designation :	Finance Department
Contact No.:	91-40-27155201
Date :	08.07.2014

LOCATIONS

Registered Office :	2-98/3, 10-B, Kakatiya Nagar, Habsiguda, Hyderabad – 500 007, Andhra Pradesh, India
Tel. No.:	91-40-27153096/ 27155201
Fax No.:	91-40-27172188
E-Mail :	info@sterlingstonex.com n_muneyya@rediffmail.com sspl@ksrgroup.in
Website :	www.sterlingstonex.com
Location :	Owned
Factory :	Located at: · Kondamadugu, Andhra Pradesh

DIRECTORS

As on 30.09.2013

Name :

Mr. Koneru Venkateswara Rao

Designation :

Managing Director

Address :

2-98/3, 10-B, Block-B, Kakatiya Nagar, Habsiguda, Hyderabad - 500 007, Andhra Pradesh, India

Date of Birth/Age :

15.08.1962

Date of Appointment :

04.09.1995

DIN No.:

00623241

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	U14101TG1995PTC021590	STERLING STONEX PRIVATE LIMITED	Managing director	04/09/1995	04/09/1995	-	Active	NO
2	U45203TG2004PTC043273	KSR INFRACON PRIVATE LIMITED	Managing director	19/05/2004	19/05/2004	-	Active	NO
3	U74120MH2011PTC225593	MAX FERECOV PRIVATE LIMITED	Managing director	30/12/2011	30/12/2011	-	Active	NO
4	U14100AP2007PTC056509	AKASH DREDGING & MARINE SERVICES PRIVATE LIMITED	Additional director	24/03/2014	24/03/2014	-	Active	NO

Name :

Mr. Koneru Srinivas Rao

Designation :

Director

Address :

2-98/3, 10-B, Block-B, Kakatiya Nagar, Habsiguda, Hyderabad - 500 007, Andhra Pradesh, India

Date of Birth/Age :

19.06.1963

Date of Appointment :

04.09.1995

DIN No.:

00623243

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	U14101TG1995PTC021590	STERLING STONEX PRIVATE LIMITED	Director	04/09/1995	04/09/1995	-	Active	NO
2	U45203TG2004PTC043273	KSR INFRACON PRIVATE LIMITED	Director	19/05/2004	19/05/2004	-	Active	NO
3	U14100AP2007PTC056509	AKASH DREDGING & MARINE SERVICES PRIVATE LIMITED	Additional director	24/03/2014	24/03/2014	-	Active	NO

Name :

Mr. Koneru Tirumala Rao

Designation :

Director

Address :

2-98/3, 10-B, Block-B, Kakatiya Nagar, Habsiguda, Hyderabad - 500 007, Andhra Pradesh, India

Date of Birth/Age :

28.11.1970

Date of Appointment :

04.09.1995

DIN No.:

00623247

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	U14101TG1995PTC021590	STERLING STONEX PRIVATE LIMITED	Director	04/09/1995	04/09/1995	-	Active	NO
2	U45203TG2004PTC043273	KSR INFRACON PRIVATE LIMITED	Director	19/05/2004	19/05/2004	-	Active	NO
3	U14100AP2007PTC056509	AKASH DREDGING & MARINE SERVICES PRIVATE LIMITED	Additional director	24/03/2014	24/03/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Prakash Patro
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Koneru Venkateswara Rao	200000
Koneru Srinivas Rao	175000
Koneru Tirumala Rao	175000
Koneru Padmaja	50000
Koneru Madhavi	50000
Koneru Vasundhara	50000
Koneru Prameela Devi	50000
Total	750000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of mining and export of dimensional colour granites blocks and processing of monuments and memorials for export.
Products :	· Monuments and memorials in Granite · Mining of dimensional color granite blocks
Exports :
Countries :	· Germany · China
Imports :
Products :	Raw Material
Countries :	Holland

GENERAL INFORMATION

No. of Employees :

250 (Approximately)

Bankers :

· State Bank of India, Nacharam SME Branch, Hyderabad – 500 076, Andhra Pradesh, India

· Allahabad Bank, Industrial Finance Branch, 115 Park Lane, Secunderabad – 500 003, Andhra Pradesh, India

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long term Borrowing:
Loan from others	37.485	33.291
Short Term Borrowing:
Cash credit from bank	30.400	30.358
Total	67.885	63.649

Banking Relations :	--
Auditors :
Name :	Ratnam Dhaveji and Company Chartered Accountants
Address :	A-6, Durgabai Deshmukh Colony, OU Road, Hyderabad – 500 007, Andhra Pradesh, India
PAN No.:	AAEFR4217Q
Enterprise in which KMP have significant influence or control :	· K. Seshagiri Rao and Company · KSR Infracon Private Limited · Sterling Granites · Sterling Crane Hirers · Sterling Metals

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	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	81.738	76.366	72.449
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.700	0.700	0.700
Total Shareholders’ Funds (1) + (2)	89.938	84.566	80.649
(3) Non-Current Liabilities
(a) long-term borrowings	40.229	35.335	38.926
(b) Deferred tax liabilities (Net)	9.057	7.669	6.020
(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)	49.286	43.004	44.946
(4) Current Liabilities
(a) Short term borrowings	30.400	30.358	27.732
(b) Trade payables	67.406	46.628	32.797
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	26.388	19.644	17.465
Total Current Liabilities (4)	124.194	96.630	77.994
TOTAL	263.418	224.200	203.589
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	114.316	111.699	104.313
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	19.122	7.857	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	4.000	4.000	4.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.444	1.212	1.146
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	138.882	124.768	109.459
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	19.057	25.727	24.909
(c) Trade receivables	33.295	26.295	29.898
(d) Cash and cash equivalents	2.085	0.822	3.141
(e) Short-term loans and advances	70.099	46.588	36.182
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	124.536	99.432	94.130
TOTAL	263.418	224.200	203.589

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL (A)	119.282	106.274	103.001
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	92.588	81.079	82.531
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.694	25.195	20.470
Less	FINANCIAL EXPENSES (D)		7.634	8.436	6.345
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		19.060	16.759	14.125
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.036	7.208	5.579
	PROFIT BEFORE TAX (E-F) (G)		11.024	9.551	8.546
Less	TAX (H)		3.488	3.469	2.866
	PROFIT AFTER TAX (G-H) (I)		7.536	6.082	5.680
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.154	17.009	19.566
Less	APPROPRIATIONS
		Transfer to General Reserve	1.884	5.773	6.071
		Dividend	2.165	2.164	2.165
		Total	1.884	5.773	6.071
	BALANCE CARRIED TO THE B/S		18.641	15.154	17.010
	Earnings Per Share (Rs.)		10.05	-	-

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	6.32	5.72	5.51
Return on Total Assets (PBT/Total Assets}	(%)	4.59	4.50	4.28
Return on Investment (ROI) (PBT/Networth)		0.12	0.11	0.11
Debt Equity Ratio (Total Debt /Networth)		0.79	0.78	0.83
Current Ratio (Current Asset/Current Liability)		1.00	1.03	1.21

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	72.449	76.366	81.738
Money received against share warrants	0.700	0.700	0.700
Net worth	80.649	84.566	89.938
long-term borrowings	38.926	35.335	40.229
Short term borrowings	27.732	30.358	30.400
Total borrowings	66.658	65.693	70.629
Debt/Equity ratio	0.827	0.777	0.785

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	103.001	106.274	119.282
		3.178	12.240

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	103.001	106.274	119.282
Profit	5.680	6.082	7.536
	5.51%	5.72%	6.32%

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	No
18]	Major customers	No
19]	Payments terms	No
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	Yes

INDEX OF CHARGES

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10380299	18/09/2012	547,200.00	AXIS BANK LIMITED	ASC CENTER, 5-2-183/184, LLL FLOOR, R.P ROAD, SECUNDERABAD - 500 003, ANDHRA PRADESH, INDIA	B59554964
2	10374027	17/07/2012	4,800,000.00	MAGMA FINCORP LIMITED	MAGMA HOUSE, 24 PARK STREET, KOLKATA - 700 016, WEST BENGAL, INDIA	B57064230
3	10262606	05/01/2011	17,600,000.00	SREI EQUIPMENT FINANCE PRIVATE LIMITED	'VISHWAKARMA', 86C, TOPSIA ROAD, KOLKATA - 700 046, WEST BENGAL, INDIA	B03735719
4	10254049	31/10/2010	10,151,722.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI - 400 001, MAHARASHTRA, INDIA	B00586651
5	10250729	29/09/2010	2,640,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI - 400013, MAHARASHTRA, INDIA	A99170805
6	10093488	18/03/2008	5,603,200.00	GE CAPITAL TRANSPORTATION FINANCIAL SERVICES LTD	AIFACS BUILDING,, 1, RAFI MARG, , NEW DELHI, DELHI - 110001, INDIA	A34463034
7	10034373	19/12/2012 *	49,000,000.00	STATE BANK OF INDIA	NACHARAM SME BRANCH, NACHARAM, HYDERABAD - 500076, ANDHRA PRADESH, INDIA	B68035567
8	90118008	20/12/2004	260,000.00	HDFC BANK HOUSE	SENAPATI BAPAT MARG;LOWER PAREL (WEST), MUMBAI - 400013, MAHARASHTRA, INDIA	-
9	90116442	02/12/2004	3,410,775.00	ABN AMRO BANK N.V	DLF CENTRE;SANSAD MARG, SOMAJIGUDA, NEW DELHI, DELHI - 11000, INDIA	-
10	90116411	31/07/2004	2,500,000.00	ABN AMRO BANK N.V	DLF CENTRE;SANSAD MARG, SOMAJIGUDA, NEW DELHI, DELHI - 11000, INDIA	-

* Date of charge modification

UNSECURED LOAN

( In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long term Borrowing:
Term loan from bank	0.009	0.009
Loans and advances from related parties	2.735	2.035
Total	2.744	2.044

FIXED ASSETS

· Land and Development

· Factory Building

· Plant and Machinery

· Electrical Equipment

· Office Equipment

· 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 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.60.19
UK Pound	1	Rs.103.15
Euro	1	Rs.81.87

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	DIV
Report Prepared by :	JGT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--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.