MIRA INFORM REPORT

Report Date :

16.07.2014

IDENTIFICATION DETAILS

Name :	ESMECH EQUIPMENT PRIVATE LIMITED
Registered Office :	A-4, A-6, Gundecha Onclave, Kherani Road, Andheri (East), Mumbai - 400 072, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.03.2008
Com. Reg. No.:	11-179671
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U29255MH2008PTC179671
TAN No.: [Tax Deduction & Collection Account No.]	MUME07800C
PAN No.: [Permanent Account No.]	AABCE9492J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing a wide range of products including Acid Pickling Lines, Slitting Lines, Cut-to-Length Lines, Galvanizing Lines, Colour Coating Lines, Tension Levelling Lines, In-line Skin Pass Mills Recoiling Lines, Degreasing Lines and a number of other special purpose lines.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 2998000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between SMS Siemay Ag, Germany and H B Esmech Private Limited engaged in manufacturing of world class cold rolling mills and strips metal process line equipments. The company possesses a reasonable financial profile marked by adequate nertworth base along with moderate liquidity profile as reflected by working capital intensive operations and slight increase in receivables period along with low liquid investments as well as sharp dip in its cash balance during FY 2013. Management has witnessed a better increase in its sales volume whereas has reported a drastic dip in its net profitability which has impacted the margins during the year under review. However, trade relations seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of reputed foreign holding company, the subject can be considered for business dealings with 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.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. S. Murlidharan
Designation :	General Manager (Finance)
Contact No.:	91-9833811228
Date :	14.07.2014

LOCATIONS

Registered Office :	A-4, A-6, Gundecha Onclave, Kherani Road, Andheri (East), Mumbai - 400 072, Maharashtra , India
Tel. No.:	91-22-25821295
Mobile No.:	91-9833811228 (Mr. S. Murlidharan)
Fax No.:	91-22-25826560
E-Mail :	vjoshi@esmech.com esmech@esmech.com
Website :	http://www.esmech.com
Corporate Office / Factory 1 :	Plot No. A-254-259 and A283, Road No.30A, Wagle Industrial Estate, Thane (West) – 400604, Maharashtra, India
Tel. No.:	91-22-25821295 / 25821733 / 25823417
Fax No.:	91-22-25826550
Location :	Rented
Factory 2 :	Survey No:6 To 22, Taloja- Ambanath Road, Village- Ghotclal, Ghotcamp, Taluka – Panvel, District Raigad- 410208, Maharashtra, India
Location :	Owned

DIRECTORS

As on 28.09.2013

Name :

Mr. Suresh Laxman Joshi

Designation :

Whole-time director

Address :

Pitruvandana, Plot No.11, Kala Nagar, Bandra (East), Mumbai – 400 051, Maharashtra, India

Date of Birth/Age :

24.12.1940

Qualification :

B.E. (Mechanical)

Date of Appointment :

01.06.2010

PAN No.:

AAAPJ7056K

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	U15310MH1981PTC024806	ESMECH ROLLING MACHINERY PRIVATE LIMITED	Managing director	17/07/1981	17/07/1981	-	Active	NO
2	U99999MH1970PTC014872	HB ESMECH PRIVATE LIMITED	Director	27/03/1989	27/03/1989	-	Active	NO
3	U29255MH2008PTC179671	ESMECH EQUIPMENT PRIVATE LIMITED	Whole-time director	01/06/2010	04/03/2008	-	Active	NO
4	U29299MH1996PTC103478	PITEL ENGINEERING PRIVATE LIMITED	Nominee director	16/07/2010	16/07/2010	-	Active	NO

Name :

Mr. Vijay Suresh Joshi

Designation :

Managing Director

Address :

Pitruvandana, Plot No.11, Kala Nagar, Bandra (East), Mumbai – 400 051, Maharashtra, India

Date of Birth/Age :

08.03.1969

Qualification :

B.E. (Mechanical), PGDM (IIM Ahmadabad)

Date of Appointment :

01.06.2010

PAN No.:

AAAPJ7057J

DIN No.:

01550964

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	U15310MH1981PTC024806	ESMECH ROLLING MACHINERY PRIVATE LIMITED	Director	15/01/1996	15/01/1996	-	Active	NO
2	U99999MH1970PTC014872	HB ESMECH PRIVATE LIMITED	Managing director	15/01/1996	15/01/1996	-	Active	NO
3	U72300MH2007PTC168164	KENNOVATION SOFTWARE SERVICES PRIVATE LIMITED	Director	26/02/2007	26/02/2007	24/11/2010	Active	NO
4	U29255MH2008PTC179671	ESMECH EQUIPMENT PRIVATE LIMITED	Managing director	01/06/2010	04/03/2008	-	Active	NO
5	U29299MH1996PTC103478	PITEL ENGINEERING PRIVATE LIMITED	Nominee director	16/07/2010	16/07/2010	-	Active	NO

Name :

Mr. Ruediger Gerhard Holz

Designation :

Director

Address :

10, Tannenstrasse, Struthuetten, Neunkirchen-57290, Germany

Date of Birth/Age :

25.01.1960

Date of Appointment :

30.03.2010

DIN No.:

03025657

Name :

Mr. Michael Erwin Cottin

Designation :

Director

Address :

Am Wildpark – 19, Dusseldorf

Date of Birth/Age :

05.03.1961

Date of Appointment :

16.05.2013

DIN No.:

06650919

KEY EXECUTIVES

Name :	Mr. Prasad Shewale
Designation :	Import / Export Manager
Name :	Mr. S. Murlidharan
Designation :	General Manager (Finance)

MAJOR SHAREHOLDERS

As on 28.09.2013

Names of Shareholders	No. of Shares	% of Holding
Suresh Laxman Joshi	250000	5.00
Vijay Suresh Joshi	250000	5.00
HB Esmech Private Limited, India	1950000	39.00
SMS Siemag, Germany	2550000	51.00
Total	5000000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	51.00
Bodies corporate	39.00
Directors or relatives of Directors	10.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing a wide range of products including Acid Pickling Lines, Slitting Lines, Cut-to-Length Lines, Galvanizing Lines, Colour Coating Lines, Tension Levelling Lines, In-line Skin Pass Mills Recoiling Lines, Degreasing Lines and a number of other special purpose lines.

Products :

Product Description	ITC Code
Coil Processing Lines	84559000

· Cold Rolling Mills / Skin Pass Mills

· Pickling Lines

· Cut-to-Length Lines

· Slitting Lines

· Tension Levelling Lines

· Coating Lines

· Rewinding and Trimming Lines

· Blanking Line

· Electrolytic Cleaning Line

· Special Purpose Lines

Exports :

Products :

Finished Goods

Countries :

· Thailand

· Vietnam

Imports :

Products :

Raw Material

Countries :

· USA

· Korea

· China

· Japan

· Italy

· Germany

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity *	Actual Production *
Coil Processing Equipments and Spares	Not Applicable	--	--

* Note: The Company manufactures custom designed coil processing equipment and spares thereof, hence the concept of "Installed Capacity" and "Actual Production" is difficult to quantify.

This being technical matter, is as certified by the Management and relied upon by Auditors.

GENERAL INFORMATION

Suppliers :

ABB Limited

Customers :

Tata Steel Limited

No. of Employees :

400 (Approximately)

Bankers :

Canara Bank, Bhandup Branch, Mumbai, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loans From Banks	1.894	0.168
Total	1.894	0.168

Note :

The loans are repayable in equal installments aggregating to Rs.1.894 millions (P.Y. Rs.0.168 millions). The interest rate of above ranging loans against vehicles are secured by way of hypothecation of specific vehicles acquired under the arrangements.

Banking Relations :	--
Auditors :
Name :	Haribhakti and Company Chartered Accountants
Address :	202, Shreeji Palace Near Jalaram Mandir, Saraswat Colony, Dombivali (East), Dombivali – 421201, India
PAN No:	AAAFH2010F
Holding Company :	· SMS Siemag AG (SMS) Address: Eduard-Schloeman-Strabe 4, D-40237, Dusseldoorf, Germany
Subsidiary Company :	· Pitel Engineering Private Limited (PEPL) CIN No.: U29299MH1996PTC103478
Enterprises significantly influenced by key management personnel or their relatives or other companies :	· HB Esmech Private Limited (HBEPL) CIN No.:U99999MH1970PTC014872 · Kennovation Software Services Private Limited (KSSPL) CIN No.:U72300MH2007PTC168164 · Esmech Rolling Machinery Private Limited (ERMPL) · Retailnet India Private Limited (RIPL) · EMG Automation GmbH, Germany · EMG Automation (India) Private Limited · BST Sayona Automations Private Limited

CAPITAL STRUCTURE

As on 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 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	50.000	50.000	50.000
(b) Reserves & Surplus	699.612	695.824	651.048
(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)	749.612	745.824	701.048
(3) Non-Current Liabilities
(a) long-term borrowings	1.894	0.168	0.350
(b) Deferred tax liabilities (Net)	0.000	1.115	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	30.028	3.786	7.740
Total Non-current Liabilities (3)	31.922	5.069	8.090
(4) Current Liabilities
(a) Short term borrowings	169.844	0.000	0.000
(b) Trade payables	285.590	342.279	137.835
(c) Other current liabilities	325.564	890.049	447.236
(d) Short-term provisions	9.315	6.812	0.041
Total Current Liabilities (4)	790.313	1239.140	585.112
TOTAL	1571.847	1990.033	1294.250
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	299.247	302.252	219.946
(ii) Intangible Assets	13.632	20.967	19.154
(iii) Capital work-in-progress	8.420	6.641	4.502
(iv) Intangible assets under development	1.858	0.000	0.000
(b) Non-current Investments	5.865	5.865	5.865
(c) Deferred tax assets (net)	1.483	0.000	0.673
(d) Long-term Loan and Advances	24.696	21.350	19.643
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	355.201	357.075	269.783
(2) Current assets
(a) Current investments	0.000	293.413	180.701
(b) Inventories	526.722	640.762	239.937
(c) Trade receivables	573.668	444.357	397.746
(d) Cash and cash equivalents	20.179	71.341	111.602
(e) Short-term loans and advances	36.586	85.422	51.619
(f) Other current assets	59.491	97.663	42.862
Total Current Assets	1216.646	1632.958	1024.467
TOTAL	1571.847	1990.033	1294.250

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	1681.275	1471.290	1085.539
Less	EXPENSES		1616.962	1378.347	890.741
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		64.313	92.943	194.798
Less	DEPRECIATION/ AMORTISATION		42.141	34.877	26.057
	PROFIT/(LOSS) BEFORE TAX		22.172	58.066	168.741
Less	TAX		18.385	13.289	58.694
	PROFIT/(LOSS) AFTER TAX		3.787	44.777	110.047
	Earnings Per Share (Rs.)		0.76	8.96	22.00

Particulars	31.03.2014
Sales Turnover (Approximately)	1750.000

The above information has been parted by Mr. S. Murlidharan

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.23	3.04	10.14
Return on Total Assets (PBT/Total Assets}	(%)	1.43	2.94	13.15
Return on Investment (ROI) (PBT/Networth)		0.03	0.08	0.24
Debt Equity Ratio (Total Debt /Networth)		0.23	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.54	1.32	1.75

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	50.000	50.000	50.000
Reserves & Surplus	651.048	695.824	699.612
Net worth	701.048	745.824	749.612
long-term borrowings	0.350	0.168	1.894
Short term borrowings	0.000	0.000	169.844
Total borrowings	0.350	0.168	171.738
Debt/Equity ratio	0.000	0.000	0.229

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	1,085.539	1,471.290	1,681.275
		35.535	14.272

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	1,085.539	1,471.290	1,681.275
Profit	110.047	44.777	3.787
	10.14%	3.04%	0.23%

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

Note: The registered office of the company has been shifted from A254-259 and A 283, Road No.30A, Wagle Industrial Estate, Thane – 400 604, Maharashtra, India to the present address w.e.f. 05.03.2008.

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans repayable on Demand	169.844	0.000
Total	169.844	0.000

CONTINGENT LIABILITY

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Contingent Liability not provided for
Bank Guarantees	24.963	205.129
Letter of Credit Provided to Customer	45.139	1.799
Income Tax Matter	4.818	0.000
Estimation Amount of Contracts remaining to be executed on capital account	7.672	10.975
Total	82.592	217.903

NO CHARGES EXIST FOR COMPANY

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

NEWS

Subject is an Indian JV partner of SMS Siemag, Germany, has successfully put into operation the new reversing cold mill at Star core Company Limited in Royang, Thailand.

Starecore has now an additional production capacity of 200,000 tonne of high grade CR strip as well as a skin passing capacity of 146,000 tonne per year. The combined reversing and skin passing mill rolls and skin-passes strips of up to 1,250 millimeter width at a maximum rolling speed of 1,200 meter per minute. The minimum rolled final gage is 0.2 millimeter. Starcore will supply the products to its own parent company Saeng Thai Metal Drum Company Limited and to the Southeast Asian market.

The combined 4 high CR mill with CVC was installed and successfully commissioned by Esmech Equipment. Core components such as cylinder and bending blocks as well as CVC shifting systems were provided by SMS Siemag's production facility in Hilchenbach, Germany. The complete mill stand was pre-assembled in the Esmech workshop in Wada/Mumbai, India, in order to ensure smooth erection and commissioning.

The new combined rolling and skin – pass mill at Star core.

SMS Siemag AG is a company of the SMS group which, under the roof of the SMS Holding GmbH, consists of a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. With more than 13,000 employees, the group generates sales of about EUR 3.5 billion.

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.60.22
UK Pound	1	Rs.107.79
Euro	1	Rs.81.95

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUB
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	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		33

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.