MIRA INFORM REPORT

Report Date :

03.09.2014

IDENTIFICATION DETAILS

Name :	ANDHRA FERRO ALLOYS LIMITED
Registered Office :	7-5-5-33(17), Flat No. 501, Swagruha Coral, R K Beach, Visakhapatnam – 530003, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.03.1986
Com. Reg. No.:	01-006292
Capital Investment / Paid-up Capital :	Rs.54.740 Millions
CIN No.: [Company Identification No.]	U27101AP1986PLC006292
TAN No.: [Tax Deduction & Collection Account No.]	VPNA00104G
PAN No.: [Permanent Account No.]	AACCA4847Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of high Carbon Ferro Chrome, Manganese etc.
No. of Employees :	Information denied by 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 :	Exist
Comments :	Subject is an established company having moderate track record. There is a sharp dip in sales and profit of the company in the year 2013. Rating is also constrained on account of high working capital requirement. However, trade relations are fair. Business is active. Payment terms are 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 – 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	ICRA
Rating	Fund Based Limits = BB
Rating Explanation	Inadequate credit quality and high credit risk
Date	January 2014

Rating Agency Name	ICRA
Rating	Letter of Credit = A4+
Rating Explanation	Minimal degree of safety and very high credit risk
Date	January 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 DENIED

Management Non Co-Operative (Tel No.: 91-891-2721311)

LOCATIONS

Registered Office :	7-5-5-33(17), Flat No. 501, Swagruha Coral, R K Beach, Visakhapatnam – 530003, Andhra Pradesh, India
Tel. No.:	91-8966-273311 / 2731322
Mobile No.:	91-9491058681(Mr. Jagaro)
Fax No.:	91-8966-273344
E-Mail :	andhraferro@rediffmail.com
Website :	www.andhraderroalloys.com
Location :	Owned
Head Office :	303, B. D. Chambers, 10/54, Desh Bandhu Gupta Road, Karol Bagh, New Delhi-110 005
Tel. No.:	91-011-23527544 / 23527545 / 27538714
Fax No.:	91-011-23680431,23557606
Central Office :	D No. 10-1-25, 3^rd Floor, Plot No. 37, Asilmetta Junction, Visakhapatnam – 530003, Andhra Pradesh, India
Unit 1 :	Garbham, Merakamudidam Mandal, Vizianagaram District - Andhra Pradesh, Idnia
Tel. No.:	91-8952-288344,288408
Unit 2 :	Srinivasanagar, Chinthalapalem (PO), Pendurthi (SO), Via Visakhapatnam, Vizianagaram District - Andhra Pradesh – 530017, India
Tel. No.:	91-8966-273311,273289
Fax No.:	91-8966-273344

DIRECTORS

As on 30.09.2013

Name :

Mr. Brajendra Khandelwal

Designation :

Managing Director

Address :

Flat No. 401, Swagruha Coral, R.K. Beach, Visakhapatnam – 530003, Andhra Pradesh

Date of Birth/Age :

05.10.1953

Qualification :

Under Graduate

Date of Appointment :

01.04.1997

PAN No.:

AAGPK1283M

DIN No.:

00201689

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	U25209UP1984PTC006780	SHASHI (H.D.)POLYPROPLENE BAGS PRIVATE LIMITED	Director	08/12/1993	08/12/1993	-	Dormant	NO
2	U27101AP1986PLC006292	ANDHRA FERRO ALLOYS LIMITED	Managing director	01/04/1997	01/04/1997	-	Active	NO
3	U27109DL1989PLC036561	ACCORD ALLOYS LIMITED	Director	28/10/2004	28/10/2004	-	Active	Yes
4	U27101DL1997PLC085107	HIMANI ALLOYS LIMITED	Director	11/12/2004	11/12/2004	-	Active	Yes
5	U40107AP2013PTC086947	BGK POWER PRIVATE LIMITED	Director	12/04/2013	12/04/2013	-	Active	NO

Name :

Mrs. Manjubala Khandelwal

Designation :

Wholetime Director

Address :

Flat No. 401, Swagruha Coral, R.K. Beach, Visakhapatnam – 530003, Andhra Pradesh

Date of Birth/Age :

29.10.1954

Date of Appointment :

22.12.1999

PAN No.:

AAEPB2541F

DIN No.:

00201730

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	U27101AP1986PLC006292	ANDHRA FERRO ALLOYS LIMITED	Whole-time director	22/12/1999	22/12/1999	-	Active	NO
2	U27101DL1997PLC085107	HIMANI ALLOYS LIMITED	Director	27/11/2002	27/11/2002	-	Active	Yes
3	U27109DL1989PLC036561	ACCORD ALLOYS LIMITED	Director	02/06/2003	02/06/2003	-	Active	Yes

Name :

Mr. Garvit Khandelwal

Designation :

Director

Address :

Flat No. 401, Swagruha Coral, R.K. Beach, PR Puram, Visakhapatnam – 530003, Andhra Pradesh

Date of Birth/Age :

27.11.1987

Date of Appointment :

01.04.2006

PAN No.:

AVHPK 1930B

DIN No.:

00808053

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	U27101AP1986PLC006292	ANDHRA FERRO ALLOYS LIMITED	Whole-time director	01/04/2006	01/04/2006	-	Active	NO
2	U40107AP2013PTC086947	BGK POWER PRIVATE LIMITED	Director	12/04/2013	12/04/2013	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2013

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	99.28
Others	0.72
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of high Carbon Ferro Chrome, Manganese etc.

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· State Bank of India, Commercial Branch, 43-29-5/8, Narona Road, Dondaparthy, Vihakapatnam -530016, Andhra Pradesh, India

· State Bank of India, Overseas Branch, 9-1-57, GNT Road, Visakhapatnam 530013, Andhra Pradesh, India

· IDBI Bank Limited, IDBI Tower T C Complex, Cuffe Parade, Mumbai 400005, Maharashtra, India

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee term loans from banks	3.733	0.065
Rupee term loans from others	0.000	0.172
Short Term Borrowings
Loans repayable on demand from banks	193.261	19.104
Total	196.994	19.341

Banking Relations :	--
Auditors :
Name :	C. Subrahmanyam and Company Chartered Accountants
Address :	102,Lakshmi Apartments, Factory Layout, Waltair Uplands, Visakhapatnam, Andhra Pradesh, India
PAN No.:	AACFM0015F

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5473987	Equity Shares	Rs.10/- each	Rs.54.740 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	54.740	54.740	30.585
(b) Reserves & Surplus	324.971	304.484	256.635
(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)	379.711	359.224	287.220
(3) Non-Current Liabilities
(a) long-term borrowings	119.990	108.421	21.153
(b) Deferred tax liabilities (Net)	9.624	9.408	8.854
(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)	129.614	117.829	30.007
(4) Current Liabilities
(a) Short term borrowings	193.261	19.104	46.136
(b) Trade payables	119.796	318.614	129.850
(c) Other current liabilities	85.687	95.928	114.450
(d) Short-term provisions	10.198	24.146	25.409
Total Current Liabilities (4)	408.942	457.792	315.845
TOTAL	918.267	934.845	633.072
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	168.143	166.450	174.839
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	159.335	139.329	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	327.478	305.779	174.839
(2) Current assets
(a) Current investments	0.800	0.800	5.348
(b) Inventories	294.058	310.577	175.539
(c) Trade receivables	114.084	51.170	98.292
(d) Cash and cash equivalents	45.412	180.209	89.247
(e) Short-term loans and advances	132.093	77.039	86.284
(f) Other current assets	4.342	9.271	3.523
Total Current Assets	590.789	629.066	458.233
TOTAL	918.267	934.845	633.072

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	948.589	1,206.506	1,522.359
		Other Income	15.994	9.269	4.756
		TOTAL (A)	964.583	1,215.775	1,527.115
Less	EXPENSES
		Cost of Materials Consumed	550.224	612.805	941.150
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	15.081	(15.143)	4.398
		Employee Benefits Expenses	20.659	20.871	17.748
		Other Expenses	325.403	507.149	465.643
		TOTAL (B)	911.367	1,125.682	1,428.939
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		53.216	90.093	98.176
Less	FINANCIAL EXPENSES (D)		5.916	3.030	6.298
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.300	87.063	91.878
Less	DEPRECIATION/ AMORTISATION (F)		16.397	14.514	14.554
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		30.903	72.549	77.324
Less	TAX (H)		10.415	24.699	26.228
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		20.488	47.850	51.096
	Earnings Per Share (Rs.)		3.74	8.74	16.71

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.12	3.94	3.35
Net Profit Margin (PBT/Sales)	(%)	3.26	6.01	5.08
Return on Total Assets (PBT/Total Assets}	(%)	4.07	9.12	12.21
Return on Investment (ROI) (PBT/Networth)		0.08	0.20	0.27
Debt Equity Ratio (Total Debt /Networth)		0.82	0.36	0.23
Current Ratio (Current Asset/Current Liability)		1.44	1.37	1.45

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	30.585	54.740	54.740
Reserves & Surplus	256.635	304.484	324.971
Net worth	287.220	359.224	379.711
long-term borrowings	21.153	108.421	119.990
Short term borrowings	46.136	19.104	193.261
Total borrowings	67.289	127.525	313.251
Debt/Equity ratio	0.234	0.355	0.825

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	1,522.359	1,206.506	948.589
		(20.748)	(21.377)

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	1,522.359	1,206.506	948.589
Profit	51.096	47.850	20.488
	3.36%	3.97%	2.16%

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	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	No
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	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

LITIGATION DETAILS:

CASE STATUS INFORMATION SYSTEM

WA 180 / 2013

WASR 17577 / 2013

CASE IS:PENDING

PETITIONER	RESPONDENT
APEPDCL,CHAIRMAN&MD,VSP AND 2 VS	M/S.ANDHRA FERRO ALLOYS LTD,& 2
PET.ADV. : JYOTHI ESWAR GOGINENI	RESP.ADV. : NAGARJUNA BABU
SUBJECT: A.P.D.D.C.F.LTD.(MISC.MATTERS)	DISTRICT:  VIZIANAGARAM

FILING DATE:  04-02-2013

POSTING STAGE :  FOR HEARING

REG. DATE    :   12-02-2013

LISTING DATE :  28-06-2014

STATUS   :  ---------

HON'BLE JUDGE(S):

HON'BLE THE CHIEF JUSTICE

K.C.BHANU

VILAS V.AFZULPURKAR

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Deferred payment liabilities	116.257	108.184
Total	116.257	108.184

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10269350	09/07/2012 *	150,000,000.00	IDBI Bank Limited	IDBI Towerwtc Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, India	B56506371
2	10157150	13/04/2009	170,000,000.00	IDBI Bank Limited	IDBI Towerwtc Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, India	A61655429
3	10092571	28/01/2008	1,600,000.00	HDFC BANK LIMITED	HDFC Bank House senapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	A33892381
4	90126933	03/11/2004	833,037.00	Citicorp Finance India Limited	3rd Floor; Plaza, Benz Cll, Vijayawara, Andhra Pradesh - 200008, India	-
5	90130769	19/05/1997	400,000.00	State Bank of India	Ssi Branch, Santhipuram; Visakhapatnam Road, Visa Khapatnam, Andhra Pradesh - 530016, India	-
6	90127627	19/04/2013 *	570,000,000.00	State Bank of India	Commercial Branch, 43-29-5/8, Narona Road, Dondap Arthy, Visakhapanam, Andhra Pradesh - 530016, India	B74411786
7	90129494	09/07/2005 *	20,500,000.00	State Bank of India	Overseas Branch, Visakhapatnam, Andhra Pradesh - 530013, India	-
8	90127570	23/03/1994	9,500,000.00	State Bank of India	Main Branch; Visakhapatnam, Visakhapatnam, Andhra Pradesh, India	-
9	90125695	02/02/1990	3,480,000.00	Andhra Pradesh Industrial Development Corporation Limited	Parisrama Bhavanam, Basheerbagh, Hyderabad, Andhra Pradesh, India	-
10	90129206	16/09/1987	4,800,000.00	State Bank of India	Visakhapatnam, Visakhapatnam, Andhra Pradesh, India	-
11	90125562	11/02/1987	2,330,000.00	A. P. Industrial Development Corporation Limited	Basheerbagh, Hyderabad, Andhra Pradesh - 500029, India	-
12	90125557	26/12/1986	5,800,000.00	Andhra Pradesh State Financial Corporation	5-9-194, Chirag Ali Lane, Hyderabad, Andhra Pradesh - 500001, India	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.100.43
Euro	1	Rs.79.40

INFORMATION DETAILS

Information Gathered by :	JML
Analysis Done by :	SUM
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	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	NO
--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.