MIRA INFORM REPORT

Report Date :

01.09.2014

IDENTIFICATION DETAILS

Name :	MUKESH STEELS LIMITED (w.e.f. 09.10.1987)
Formerly Known As :	MUKESH STEELS PRIVATE LIMITED
Registered Office :	Gill Roadmiller Ganj, Ludhiana – 141003, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.08.1981
Com. Reg. No.:	16-004654
Capital Investment / Paid-up Capital :	Rs. 72.826 Millions
CIN No.: [Company Identification No.]	L27106PB1981PLC004654
PAN No.: [Permanent Account No.]	AABCM1203B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Trader of Iron and Steel.
No. of Employees :	Information declined by the management

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Rating reflects moderate financial risk profile due to low profitability and reserves. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BB
Rating Explanation	Inadequate credit quality and high credit risk
Date	10.01.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	10.01.2014

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 31-03-2014.

INFORMATION DECLINED BY

Name :	Mr. Mukesh Shah
Designation :	Not Divulged
Contact No.:	91-9821233944
Date :	27.08.2014

LOCATIONS

Registered Office :	Gill Roadmiller Ganj, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-2537702
Mobile No.:	91-9821233944 (Mr. Mukesh Shah) 91-9930724447 (Mr. Kalpesh Shah)
Fax No.:	91-161-2537337
E-Mail :	mukeshinfosy@sify.com
Website :	http://www.mukeshsteel.com
Corporate Office :	Shop No. 39, Maruti Mandir Lane, 5th Kumbharwada, Mumbai-400004, Maharashtra, India
Tel. No.:	91-22-66394251 / 67437727
Fax No.:	91-22-23878468
E-Mail :	sales@mukeshsteel.com mukeshsteel@yahoo.co.in

DIRECTORS

As on 30.09.2013

Name :	Mr. Krishan Chand Gupta
Designation :	Chairman Cum Managing Director
Address :	508-B, Aggar Nagar, Ludhiana, Punjab, India
Date of Birth/Age :	20.06.1940
Date of Appointment :	24.08.1994
DIN No.:	00057030
PAN No.:	ADXPG4429R
Name :	Mr. Deepak Gupta
Designation :	Executive Director
Address :	508-B, Aggar Nagar, Ludhiana, Punjab, India
Date of Birth/Age :	16.06.1973
Date of Appointment :	05.08.2005
DIN No.:	00159840
Name :	Mr. Gulshan Wadhwa
Designation :	Director
Address :	Gomti Wires, G.T. Road, Jallandhar, Punjab, India
Date of Birth/Age :	05.12.1953
Date of Appointment :	26.11.1991
DIN No.:	00306768
Name :	Mr. Vinod Gossain
Designation :	Executive Director
Address :	801, Harbanspura, Gowshalla Road, Ludhiana, Punjab, India
Date of Birth/Age :	16.09.1958
Date of Appointment :	01.12.2004
DIN No.:	01500142
Name :	Mr. Arun Goyal
Designation :	Director
Address :	3993, Urban Estate, Jawaddi Road, Ludhiana, Punjab, India
Date of Birth/Age :	26.06.1961
Date of Appointment :	30.07.2005
DIN No.:	01408446
Name :	Mr. Naresh Batra
Designation :	Director
Address :	H.No.1235, Sector –6, Urban Estate, Karnal, Haryana, Punjab, India
Date of Birth/Age :	23.07.1974
Date of Appointment :	30.06.2007
DIN No.:	01647280
Name :	Mr. Ashok Gupta
Designation :	Director
Address :	926, Deep Nagar, Civil Lines, Ludhiana, Punjab, India
Date of Birth/Age :	05.12.1952
Date of Appointment :	30.06.2007
DIN No.:	01299243

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.06.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3007433	45.80
Bodies Corporate	1361141	20.73
Sub Total	4368574	66.53
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4368574	66.53
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	963979	14.68
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1153135	17.56
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	78322	1.19
Any Others (Specify)	2450	0.04
Non Resident Indians	550	0.01
Hindu Undivided Families	1900	0.03
Sub Total	2197886	33.47
Total Public shareholding (B)	2197886	33.47
Total (A)+(B)	6566460	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	6566460	0.00
Total (A)+(B)	88591687	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Iron and Steel.

Products :

Description of product or service	ITC code
Steel Round, Steel Ignots	72149990

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Punjab and Sind Bank, Millerganj, Ludhiana - 141003, Punjab, India

· State Bank of India, Miller Ganj, Ludhiana, Punjab, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Short-term borrowings
Loans repayable on demand from banks	106.988	61.044
Total	106.988	61.044

Banking Relations :	---
Auditors :
Name :	S.C. Vasudeva and Company Chartered Accountants
Address :	B-XIX-220, Rani Jhansi Road, Ghumar Mandi, Ludhiana, Punjab, India
PAN No.:	AAXPM2564L
Enterprise over which Key Management Personnel and their relatives is able to exercise significant influence	· Mukesh Strips Limited · Mukesh Udyog Limited · DBA Switchgears Private limited · Odeon Enterprises Private Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
7200000	Equity Shares	Rs.10/- each	Rs.72.000 Millions
5800000	Preference Shares	Rs.10/- each	Rs.58.000 Millions
	Total		Rs.130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6568960	Equity Shares	Rs.10/- each	Rs.64.814 Millions
800000	Preference Shares	Rs.10/- each	Rs.8.000 Millions
	Total		Rs.72.814 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
7200000	Equity Shares	Rs.10/- each	Rs.72.000 Millions
5800000	Preference Shares	Rs.10/- each	Rs.58.000 Millions
	Total		Rs.130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6568960	Equity Shares	Rs.10/- each	Rs.64.814 Millions
800000	Preference Shares	Rs.10/- each	Rs.8.000 Millions
	Add: Forfeited shares reissued		Rs.0.012 Millions
	Total		Rs.72.826 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	72.826	72.826	73.677
(b) Reserves & Surplus	53.600	50.747	48.208
(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)	126.426	123.573	121.885
(3) Non-Current Liabilities
(a) long-term borrowings	55.000	0.000	0.000
(b) Deferred tax liabilities (Net)	4.333	2.657	2.625
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.757	1.289	1.289
Total Non-current Liabilities (3)	60.090	3.946	3.914
(4) Current Liabilities
(a) Short term borrowings	122.422	61.044	105.164
(b) Trade payables	120.991	143.385	155.914
(c) Other current liabilities	26.579	12.655	35.576
(d) Short-term provisions	0.000	0.000	0.385
Total Current Liabilities (4)	269.992	217.084	297.039
TOTAL	456.508	344.603	422.838
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	39.911	23.624	24.842
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	14.987	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	3.955	3.955	3.955
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	18.568	18.041	15.533
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	62.434	60.607	44.330
(2) Current assets
(a) Current investments	0.071	0.097	0.097
(b) Inventories	88.381	82.516	63.934
(c) Trade receivables	239.281	154.402	249.968
(d) Cash and cash equivalents	11.843	16.432	12.570
(e) Short-term loans and advances	53.584	29.862	48.057
(f) Other current assets	0.914	0.687	3.882
Total Current Assets	394.074	283.996	378.508
TOTAL	456.508	344.603	422.838

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	704.599	757.920	657.314
		Other Income	6.236	4.105	5.085
		TOTAL (A)	710.835	762.025	662.399
Less	EXPENSES
		Cost of Materials Consumed	531.280	553.880	475.443
		Purchases of Stock-in-Trade	48.419	59.277	45.369
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(15.643)	(3.945)	1.879
		Employees benefits expense	6.910	7.041	5.575
		Other expenses	112.335	120.871	114.735
		Extraordinary Items	0.000	0.000	(2.463)
		TOTAL (B)	683.301	737.124	640.538
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.534	24.901	21.861
Less	FINANCIAL EXPENSES (D)		20.299	19.491	12.522
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.235	5.410	9.339
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.706	1.687	1.869
	PROFIT BEFORE TAX (E-F) (G)		4.529	3.723	7.470
Less	TAX (H)		1.676	1.184	0.891
	PROFIT AFTER TAX (G-H) (I)		2.853	2.539	6.579
	IMPORTS
		Raw Materials	219.916	230.141	142.868
	TOTAL IMPORTS		219.916	230.141	142.868
	Earnings Per Share (Rs.)		0.43	0.39	0.25

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.40	0.33	0.99
Net Profit Margin (PBT/Sales)	(%)	0.64	0.49	1.14
Return on Total Assets (PBT/Total Assets}	(%)	1.00	1.14	1.78
Return on Investment (ROI) (PBT/Networth)		0.04	0.03	0.06
Debt Equity Ratio (Total Debt /Networth)		1.40	0.49	0.86
Current Ratio (Current Asset/Current Liability)		1.46	1.31	1.27

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	73.677	72.826	72.826
Reserves & Surplus	48.208	50.747	53.600
Net worth	121.885	123.573	126.426
long-term borrowings	0.000	0.000	55.000
Short term borrowings	105.164	61.044	122.422
Total borrowings	105.164	61.044	177.422
Debt/Equity ratio	0.863	0.494	1.403

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	657.314	757.920	704.599
		15.306	(7.035)

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	657.314	757.920	704.599
Profit	6.579	2.539	2.853
	1.00%	0.33%	0.40%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CORPORATE INFORMATION

Subject is a public company incorporated under the provisions of the Companies Act, 1956 on 29th August, 1981. The name of the company at the time of its incorporation was Mukesh Steels Private Limited and subsequently changed to Subject on, 9th October, 1987. The company is engaged in manufacturing and trading on Iron and Steel.

RESULTS OF OPERATIONS

During the year, the company recorded total revenues of Rs.710.834 Millions comprising of other revenues of Rs. 6.235 Millions as compared to Rs.762.198 Millions in the previous financial year. The profits after tax for the year increased to Rs.2.853 Millions as against Rs. 2.539 Millions in the previous year. The directors expect better results in the future as well.

PERFORMANCE REVIEW

The detailed analysis of the operating performance of the Company for the year, the state of affairs and the key changes in the operating environment has been included in the "Management Discussion and Analysis Section" which forms a part of the Annual Report.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Other loans and advances, others	50.000	0.000
Short-term borrowings
Loans and advances from related parties	15.434	0.000
Total	65.434	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	90182244	29/01/1997	1,800,000.00	STATE BANK OF INDIA	MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	-
2	90178986	09/10/2009 *	223,000,000.00	STATE BANK OF INDIA	SALES HUB MID CORPORATE, SCB MILLER GANJ,, LUDHIANA, PUNJAB - 141003, INDIA	A72624901

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2014

Rs. In Millions

Particulars		Quarter ended			Year ended
		30.06.2014	31.03.2014	30.06.2013	31.03.2014
		Unaudited	Audited	Unaudited	Audited
1	Income from Operations
	(a) Net sates/income from operations (Net of excise duty)	106.640	260.333	135.469	668.638
	(b) Other Operating Income	0.000	0.000	0.000	0.000
	Total income from operations (net)	106.640	260.333	135.469	668.638
2	Expenses
	(a) Increase decrease in stock in trade and work in progress	2.562	(7.346)	0.000	(7.346)
	(b) Consumption of raw materials	86.101	230.553	114.586	567.333
	(c) Employee Benefits Expense	1.522	1.872	1.428	5.625
	(d) Depreciation / Amortisation Expense	0.617	0.483	0.675	2.471
	(e) Other Expenses	15.966	47.207	13.511	101.528
	Total expenses	106.768	272.769	130.200	669.611
3	Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)	(0.128)	(12.436)	5.269	(0.973)
4	Other Income	1.000	14.209	0.045	14.577
5	Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)	0.872	1.773	5.314	13.604
6	Finance Costs	3.285	3.831	4.015	13.397
7	Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)	(2.413)	(2.058)	1.299	0.207
8	Exceptional items	0.000	0.000	0.000	0.000
9	Profit/ (Loss) from ordinary activities before tax (7+8)	(2.413)	(2.058)	1.299	0.207
10	Tax expenses	0.000	(0.764)	0.390	(0.264)
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	(2.413)	(1.294)	0.909	0.471
12	Extraordinary item (net of tax expense)	0.000	0.000	0.000	0.000
13	Net Profit / (Loss) for the period (11-12)	(2.413)	(1.294)	0.909	0.471
14	Share of profit' (loss) of associates	--	--	--	--
15	Minority Interest	--	--	--	--
16	Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates (13+14+15)	(2.413)	(1.294)	0.909	0.471
17	Paid up equity share capital (Face Value of Rs10/- each)	0.000	64.826	64.826	64.826
18	Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year	--	--	--	53.600
19.i	Earnings per share (before extraordinary items) of Rs.10/- each (not annualised):
	(a) Basic	(0.36)	(0.19)	0.14	0.07
	(b) Diluted	(0.36)	(0.19)	0.14	0.07
A	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	- Number of shares	2197886	2197886	2197886	2197886
	- Percentage of shareholding	33.47%	33.47%	33.47%	33.47%
2	Promoters and Promoter group shareholding
	a) Pledged / Encumbered
	- Number of shares	0.000	0.000	0.000	0.000
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	0.000	0.000	0.000	0.000
	- Percentage of shares (as a % of the total Share Capital of the Company)	0.000	0.000	0.000	0.000
	b) Non Encumbered
	- Number of shares	4368574	4368574	4368574	4368574
	- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	100.00%	100.00%	100.00%	100.00%
	- Percentage of shares (as a % of the total Share Capital of the Company)	66.53%	66.53%	66.53%	66.53%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	0
	Disposed off during the quarter	0
	Remaining unresolved at the end of the quarter	Nil

Note:

1. The above results, reviewed by the Audit Committee, have been approved by the Board of Directors in its meeting help on 14.08.2014.

2. Previous Period’s figures have been regrouped / reclassified, wherever necessary.

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.60.47
UK Pound	1	Rs.100.35
Euro	1	Rs.79.96

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUM
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

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