MIRA INFORM REPORT

Report Date :

13.03.2014

IDENTIFICATION DETAILS

Name :	ARFIN INDIA LIMITED
Registered Office :	B-302, 3^rd Floor, Pelican House, Near Natraj Cinema, Gujarat Chamber of Commerce Building, Ashram Road, Ahmedabad – 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.04.1992
Com. Reg. No.:	04-017460
Capital Investment / Paid-up Capital :	Rs. 18.677 Millions
CIN No.: [Company Identification No.]	L65990GJ1992PLC017460
TAN No.: [Tax Deduction & Collection Account No.]	AHMA05982E
PAN No.: [Permanent Account No.]	AAECA1211A
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the stock exchanges.
Line of Business :	Manufacturer of Aluminium Tubes and Aluminium Wire Rods.
No. of Employees :	110 (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 110000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. The management of the company has not filed latest financials (i.e. 2013) with the government department whereas financials for the year (2012) are filed but the same could not be made available from government department. As per available financials of (2011) the company seems to have not commenced its commercial operations. However, as per indirect source we found that the company has achieved a decent turnover from its operations during the year 2013. Trade relations are reported as fair. Business is active. Payments terms are unknown. The company can be considered from business dealings with some caution. Note: Information gathered through indirect source i.e. CARE Turnover : Rs. 1694.200 Millions PAT : Rs. 30.900 Millions

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 – December 1, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BB (Long Term Bank Facilities)
Rating Explanation	Moderate risk of default.
Date	31.01.2014

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 BY

Management non co-operative (91-79-26583791 / 792)

LOCATIONS

Registered Office :	B-302, 3^rd Floor, Pelican House, Near Natraj Cinema, Gujarat Chamber of Commerce Building, Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26583791 / 26583792
Fax No.:	91-79-25620620 / 26583791
E-Mail :	mahendra@arfin.co.in rinkesh_1983@yahoo.co.in ashit@arfin.co.in
Website :	http://www.arfin.co.in
Location :	Owned
Factory :	118/ 1 Ravi Estate, Near Restige Hotel, Chatral, Gujarat, India
Tel. No.:	91-2764-232620
E-Mail :	jatin@arfin.co.in info@arfin.co.in
Branch Office :	A-209, Shital Shopping Centre, Gurunanak Chowk, Palanpur-385001, Banaskantha, India

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Mahendrakumar Rikhavchand Shah
Designation :	Director
Address :	Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati Ahmedabad - 380 005, Gujarat, India
Date of Birth/Age :	09.03.1963
Qualification :	Graduate
Date of Appointment :	30.09.1998
DIN No.:	00182746

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	U65910GJ1995PLC025589	MAHENDRA ALUMINIUM COMPANY LIMITED	Director	25/04/1995	25/04/1995	-	Active	NO
2	U65910GJ1995PLC026735	KRISH FERRO INDUSTRIES LIMITED	Director	17/07/1995	17/07/1995	-	Active	NO
3	L65990GJ1992PLC017460	ARFIN INDIA LIMITED	Director	30/09/1998	30/09/1998	-	Active	NO
4	U27100GJ1996PLC030244	SAKAR INDUSTRIES LIMITED	Director	20/09/2011	20/09/2011	28/07/2012	Active	NO

Name :	Ms. Pushpa Mahendra Shah
Designation :	Director
Address :	Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati Ahmedabad - 380 005, Gujarat, India
Date of Birth/Age :	21.06.1966
Date of Appointment :	01.04.2000
DIN No.:	00182754
Name :	Mr. Jatin Mahendrakumar Shah
Designation :	Director
Address :	Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati Ahmedabad - 380 005, Gujarat, India
Date of Birth/Age :	09.12.1983
Date of Appointment :	29.09.2012
DIN No.:	00182683

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	U27100GJ1996PLC030244	SAKAR INDUSTRIES LIMITED	Director	10/01/2002	10/01/2002	28/07/2012	Active	NO
2	U65910GJ1995PLC026735	KRISH FERRO INDUSTRIES LIMITED	Director	25/09/2012	01/06/2012	-	Active	NO
3	U65910GJ1995PLC025589	MAHENDRA ALUMINIUM COMPANY LIMITED	Director	25/09/2012	07/06/2012	-	Active	NO
4	L65990GJ1992PLC017460	ARFIN INDIA LIMITED	Director	29/09/2012	12/06/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

MAJOR SHAREHOLDERS DETAIL NOT AVAILABLE

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Bodies corporate	24.68
Directors or relatives of Directors	35.92
Other top fifty shareholders	2.69
Others	36.71
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Aluminium Tubes and Aluminium Wire Rods.

GENERAL INFORMATION

No. of Employees :	110 (Approximately)
Bankers :	· State Bank of India, SME Branch Premises, Zodiac Avenue, Opposite Commissioner’s Bunglow, Law Garden, Ahmedabad-380009, Gujarat, India · Punjab National Bank, Ambawadi Branch, Harikrupa Tower, Ellisbrigde, Ahmedabad – 380006, Gujarat, India · Axis Bank Limited, Trishul, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad – 380006, Gujarat, India

Banking Relations :	--
Auditors :
Name :	Raman M. Jain and Company Chartered Accountants
Address :	B-31-33, Ganshyam Avenue, Opposite C. U. Shah College, Navjivan, Income Tax, Ahemdabad – 380014, Gujarat, India
PAN No.:	ABHPJ8145K
Related Parties :	· Arfin Enterprise Limited · Arfin Capital Limited · Mahendra Corporation · Sakar Ferro Alloys Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs. 35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3018300	Equity Shares	Rs.10/- each	Rs. 30.183 Millions
	Less : Call in arrears		Rs. 11.506 Millions
	TOTAL		Rs. 18.677 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		18.677	18.677	18.677
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10.126	10.051	10.178
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		28.803	28.728	28.855
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		9.700	0.000	0.000
TOTAL BORROWING		9.700	0.000	0.000
DEFERRED TAX LIABILITIES		1.853	1.853	0.000
TOTAL		40.356	30.581	28.856
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.059	9.913	9.913
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		17.211	17.211	17.211
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.196	0.196	0.196
	Sundry Debtors	0.242	0.000	0.000
	Cash & Bank Balances	0.095	0.236	0.088
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.016	3.529	4.050
Total Current Assets		2.549	3.961	4.334
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.154	0.195	0.365
	Other Current Liabilities	0.000	0.000	1.931
	Provisions	0.309	0.309	0.306
Total Current Liabilities		0.463	0.504	2.602
Net Current Assets		2.086	3.457	1.732
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		40.356	30.581	28.856

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	0.000	0.000	0.000
		Other Income	0.377	0.333	1.362
		TOTAL (A)	0.377	0.333	1.362
Less	EXPENSES
		Salary cost	0.000	0.000	0.383
		Manufacturing and Other Operating Expenses	0.301	0.460	0.237
		TOTAL (B)	0.301	0.460	0.620
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.076	(0.127)	0.742
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.002
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.076	(0.127)	0.740
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.000	0.000	0.226
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		0.076	(0.127)	0.514
Less	TAX (H)		0.000	0.000	0.144
	PROFIT/ LOSS AFTER TAX (G-H) (I)		0.076	(0.127)	0.370
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1.745)	(1.618)	(1.988)
	BALANCE CARRIED TO THE B/S		(1.669)	(1.745)	(1.618)
	Earnings/ Loss Per Share (Rs.)		0.04	(0.07)	0.20

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	20.16	(38.14)	27.17
Return on Total Assets (PBT/Total Assets}	(%)	0.32	(0.92)	3.61
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	0.02
Debt Equity Ratio (Total Debts/Networth)		0.34	0.00	0.00
Current Ratio (Current Asset/Current Liability)		5.51	7.86	1.67

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2009	31.03.2010	31.03.2011
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	18.677	18.677	18.677
Reserves & Surplus	10.178	10.051	10.126
Net worth	28.855	28.728	28.803
Secured Loan	0.000	0.000	0.000
Unsecured Loan	0.000	0.000	9.700
Total borrowings	0.000	0.000	9.700
Debt/Equity ratio	0.000	0.000	0.337

LOCAL AGENCY FURTHER INFORMATION

LITIGATION

HIGH COURT OF GUJARAT

TAX APPEAL No. 30 of 2011

Status : PENDING

( Converted from : ST/3587/2010 )

CCIN No : 001092201100030

Last Listing Date:

13/02/2012

Coram

· HONOURABLE THE CHIEF JUSTICE MR. BHASKAR BHATTACHARYA · HONOURABLE MR.JUSTICE J.B.PARDIWALA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX-I	MRS MAUNA M BHATT for: Appellant(s)  1

S.NO.	Name of the Respondant		Advocate On Record
1	ARFIN INDIA LTD		RULE SERVED for :Opponent(s)  1
Presented On		: 20/12/2010	Registered On	: 20/12/2010
Bench Category		: DIVISION BENCH	District	: AHMEDABAD
Case Originated From		: THROUGH ADVOCATE	Listed	: 104 times
Stage Name		: FOR REGULAR ADMISSION (SPL.)

Classification	· DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act	· INCOME-TAX ACT, 1961

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Office Details

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S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	20/12/2010	MEMO OF APPEAL/PETITION/SUIT	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	20	MRS MAUNA M BHATT:1
2	21/01/2011	CERTIFIED COPY	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	6	MRS MAUNA M BHATT:1
3	15/08/2011	DOCUMENT	RULE SERVED  for RESPONDENT(s)  1	-	RULE SERVED:1

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Court Proceedings

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S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	05/01/2011	1	-	OFFICE OBJECTION (FILING STAGE)	NEXT DATE	· ADDITIONAL REGISTRAR ( JUDICIAL)
2	17/01/2011	1	-	OFFICE OBJECTION REMOVED	NEXT DATE	· HONOURABLE MS.JUSTICE HARSHA DEVANI  · HONOURABLE MR.JUSTICE H.B.ANTANI
3	13/02/2012	1	-	FOR REGULAR ADMISSION (SPL.)	RULE/ADMIT	· HONOURABLE THE CHIEF JUSTICE MR. BHASKAR BHATTACHARYA  · HONOURABLE MR.JUSTICE J.B.PARDIWALA

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Available Orders

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S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	Questions	Transferred	Download
1	TAX APPEAL/30/2011	· HONOURABLE MS.JUSTICE HARSHA DEVANI  · HONOURABLE MR.JUSTICE H.B.ANTANI	17/01/2011	N	ORDER	-	Y	Download
2	TAX APPEAL/30/2011	· HONOURABLE THE CHIEF JUSTICE MR. BHASKAR BHATTACHARYA  · HONOURABLE MR.JUSTICE J.B.PARDIWALA	13/02/2012	N	ORDER	-	Y	Download

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Certified Copy

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S. No.	Applicant Name	Application Type	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MRS MAUNA M BHATT	ORDINARY	14/02/2012	O/5059/2012	13/02/2012	16/02/2012	17/02/2012	Delivered	ORDER

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	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	Yes
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	No
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

FACILITIES

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	9.700	0.000
Total	9.700	0.000

INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	10478032	20/01/2014	110,000,000.00	State Bank Of India	Sme Branch Premises, Zodiac Avenue, Opp. Commissi  Oner's Bunglow, Law Garden, Ahmedabad, Gujarat - 380009, India	B96577838
2	10478261	20/01/2014	238,700,000.00	Axis Bank Limited	Trishul 3rd Floor Opp Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad, Gujarat - 380006, India	B96669833
3	10385514	21/09/2012	2,307,360.00	Axis Bank Limited	Rac Ahmedabad, CV/ CE Department, 4th Floor, Shiv  Alik Ishan, Nr. C. N. Vidhyalaya, Ambawadi, Ahmedabad, Gujarat - 380006, India	B61729752
4	10335497	16/08/2013 *	128,700,000.00	Axis Bank Limited	Corporate Banking Branch, 2nd Floor,, 3rd Eye One, Nr. Panchvati Circle, C.G. Road,, Ahmedabad, Gujarat - 380009, India	B84564400
5	10332800	25/02/2013 *	695,700,000.00	Axis Bank Limited	Trishul 3rd Floor Opp Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad, Gujarat - 380006, India	B71361349
* Date of charge modification

NOTE

The registered address of the company has been shifted from H - 10, Madhavpura Market, Shahi Baug Road, Ahmedabad – 380001, Gujarat, India to the present w.e.f. 30.06.2012

FIXED ASSETS

· Freehold Land

· Building

· Office – Building

· Office Equipments

· Furniture

· Electrical Installation

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. 61.09
UK Pound	1	Rs. 101.59
Euro	1	Rs. 84.65

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	3
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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	YES
--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	--

o

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.