MIRA INFORM REPORT

Report Date :

03.09.2014

IDENTIFICATION DETAILS

Name :	MAHENDRA SPONGE AND POWER LIMITED (w.e.f 20.03.2009)
Formerly Known As :	MAHENDRA SPONGE AND POWER PRIVATE LIMITED
Registered Office :	Plot No. 76 and 77, Phase II, Siltara Industrial Area, Siltara, Raipur – 492001, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	23.07.2002
Com. Reg. No.:	10-015176
Capital Investment / Paid-up Capital :	Rs. 175.120 Million
CIN No.: [Company Identification No.]	U27102CT2002PLC015176
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in generation of electricity, manufacturing of Sponge Iron, Pellets and M.S. Ingots.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company’s sound financial risk profile supported by fair profitability levels and satisfactory capital structure of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and condition.

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 BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	28.11.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities A3
Rating Explanation	Moderate degree of safety and high credit risk.
Date	28.11.2013

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 BY

Name :	Mr. Sunil Sharma
Designation :	Senior Accountant
Contact No.:	91-771-465633
Date :	28.08.2014

LOCATIONS

Registered Office :	Plot No. 76 and 77, Phase II, Siltara Industrial Area, Siltara, Raipur – 492001, Chhattisgarh, India
Tel. No.:	91-771-2536066
Fax No.:	91-771-403506
E-Mail :	mahendrasponge@rediffmail.com csmanish@mahendragroup.net pansari_ca@yahooo.com
Website :	www.mapsofindia.com
Corporate Office :	A-Block, 2^nd Floor, Maruti Business Park, Besides Dhuppar Petrol Pump, G.E Road, Raipur, Chhattisgarh, India

DIRECTORS

As on 24.09.2013

Name :

Mr. Manoj Kumar Agrawal

Designation :

Director

Address :

300, Samta Colony, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

14.04.1972

Date of Appointment :

23.07.2002

DIN No.:

00177804

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	U27601CT1996PTC010682	MAHENDRA STRIPS PRIVATE LIMITED	Director	02/04/1996	02/04/1996	-	Active	NO
2	U27102CT2002PLC015176	MAHENDRA SPONGE AND POWER LIMITED	Director	23/07/2002	23/07/2002	-	Active	NO
3	U27109CT2004PTC016467	ANIMESH ISPAT PRIVATE LIMITED	Director	17/03/2004	17/03/2004	-	Active	NO
4	U27310CT2004PTC016836	SUPER ISPAT (RAIPUR) PRIVATE LIMITED	Director	13/08/2004	13/08/2004	-	Active	NO
5	U00112CT2005PTC017741	MAHENDRA KRISHI FARMS PRIVATE LIMITED	Director	24/06/2005	24/06/2005	30/07/2014	Active	NO
6	U45303CT2004PLC017186	CHHATTISGARH ISPAT BHUMI LIMITED	Director	10/03/2007	10/03/2007	-	Active	NO
7	U40100CT2008PTC020920	MAHENDRA POWER PRIVATE LIMITED	Director	10/11/2008	10/11/2008	-	Active	NO
8	U51909WB2008PTC129095	LIMELIGHT VINTRADE PRIVATE LIMITED	Director	01/12/2011	01/12/2011	-	Active	NO

Name :

Mr. Mahendra Agrawal

Designation :

Director

Address :

300, Samta Colony, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

15.10.1976

Date of Appointment :

23.07.2002

DIN No.:

00091076

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	U27601CT1996PTC010682	MAHENDRA STRIPS PRIVATE LIMITED	Director	01/01/2002	01/01/2002	15/12/2007	Active	NO
2	U27102CT2002PLC015176	MAHENDRA SPONGE AND POWER LIMITED	Director	23/07/2002	23/07/2002	-	Active	NO
3	U27109CT2004PTC016467	ANIMESH ISPAT PRIVATE LIMITED	Director	17/03/2004	17/03/2004	-	Active	NO
4	U63011CT2004PTC016906	RAIPUR HANDLING AND INFRASTRUCTURE PRIVATE LIMITED	Director	02/09/2004	02/09/2004	-	Active	NO
5	U00112CT2005PTC017741	MAHENDRA KRISHI FARMS PRIVATE LIMITED	Director	24/06/2005	24/06/2005	30/07/2014	Active	NO
6	U01010CT2005PTC017876	C.G. SPONGE MANUFACTURERS CONSORTIUM COAL FIELDS PRIVATE LIMITED	Director	31/12/2007	31/12/2007	-	Active	NO
7	U40100CT2008PTC020920	MAHENDRA POWER PRIVATE LIMITED	Director	10/11/2008	10/11/2008	-	Active	NO
8	U70100CT2010PTC021544	VIKRUTI INFRASTRUCTURES PRIVATE LIMITED	Director	08/01/2010	08/01/2010	-	Active	NO
9	U10101CT2011PTC022631	DEAVNARA COAL FIELDS PRIVATE LIMITED	Director	19/08/2011	19/08/2011	-	Active	NO

Name :

Mr. Deepesh Agrawal

Designation :

Director

Address :

300, Samta Colony, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

09.12.1979

Date of Appointment :

23.07.2002

DIN No.:

00177761

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	U27601CT1996PTC010682	MAHENDRA STRIPS PRIVATE LIMITED	Director	01/05/1999	01/05/1999	-	Active	NO
2	U27102CT2002PLC015176	MAHENDRA SPONGE AND POWER LIMITED	Director	23/07/2002	23/07/2002	-	Active	NO
3	U27109CT2004PTC016467	ANIMESH ISPAT PRIVATE LIMITED	Director	17/03/2004	17/03/2004	22/03/2007	Active	NO
4	U00112CT2005PTC017741	MAHENDRA KRISHI FARMS PRIVATE LIMITED	Director	24/06/2005	24/06/2005	30/07/2014	Active	NO

Name :

Mr. Munish Kumar Maajan

Designation :

Director

Address :

A-23, Green Orchid, Avani Vihar, Raipur – 492001, Chhattisgarh, India

Date of Birth/Age :

14.12.1969

Date of Appointment :

15.05.2014

DIN No.:

03550214

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	U27102CT2002PLC015176	MAHENDRA SPONGE AND POWER LIMITED	Whole-time director	15/05/2014	16/06/2011	-	Active	NO
2	U27109WB2003PLC097031	ARSH IRON & STEEL LIMITED	Director	02/04/2012	02/04/2012	04/05/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Sunil Sharma
Designation :	Senior Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2013

Names of Shareholders	No. of Shares
Mr. Ishwar Prasad Agrawal	780000
Mr. Manoj Kumar Agrawal	778000
Mr. Mahendra Kumar Agrawal	1329000
Mr. Deepesh Agrawal	1604000
Mr. Ishwar Prasad Agrawal (HUF)	878000
Smt. Hemlata Agrawal	471000
Smt. Bimila Devi Agrawal	732000
Smt. Premlata Agrawal	200000
Animesh Ispat Private Limited	6890000
Smt. Surabhi Agrawal	48000
Smt. Sweta Agrawal	313000
Mr. Manoj Kumar Agrawal (HUF)	545000
Mr. Mehendra Kumar Agrawal (HUF)	150000
Mr. Animesh Agrawal	600000
Mr. Yashavi Agrawal	50000
Ms. Kanishka Agrawal	50000
Ms. Idika Agrawal	50000
Ms. Sakshi Agrawal	50000
Mr. Deepesh Kumar Agrawal (HUF)	100000
Super Ispat (Raipur) Private Limited	320000
Limelight Vintrade Private Limited	260000
Mahendra Krishi Farms Private Limited	134000
Principle Suppliers Private Limited	380000
Pinnacle Commotrade Private Limited	80000
Lovely Commodities Private Limited	720000
Total	17512000

As on 24.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	50.16
Directors or relatives of Directors	49.84
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in generation of electricity, manufacturing of Sponge Iron, Pellets and M.S. Ingots.

Products :

Products Description	ITC Code No.
Sponge Iron	7307

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· State Bank of India, Commercial Branch, 2^nd Floor, Pujari Chamber, Pachpedi Naka, Raipur – 492001, Chhattisgarh, India

· Bank of India, Pandri, Raipur – 492001, Chhattisgarh, India

· Bank of Baroda, Pandri, Raipur – 492001, Chhattisgarh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
Other Loans and advances	163.568	157.751
SHORT TERM BORROWING
Working capital loans from banks	446.150	286.581
Total	609.718	444.332

Banking Relations :	---
Auditors :
Name :	M/s. Agrawal And Pansari Chartered Accountant
Address :	245, 2^nd Floor, Rishabh Complex, Raipur, Chhattisgarh, India
PAN No.:	AAEFA4245R

CAPITAL STRUCTURE

As on 24.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs. 250.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17512000	Equity Shares	Rs.10/- each	Rs. 175.120 Million

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	175.120	82.030	79.690
(b) Reserves & Surplus	398.702	400.586	345.713
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	7.595	0.000	0.000
Total Shareholders’ Funds (1) + (2)	581.417	482.616	425.403
(3) Non-Current Liabilities
(a) long-term borrowings	189.433	169.261	233.526
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	189.433	169.261	233.526
(4) Current Liabilities
(a) Short term borrowings	446.150	286.581	217.070
(b) Trade payables	188.006	42.666	78.569
(c) Other current liabilities	48.189	107.026	83.411
(d) Short-term provisions	5.034	4.997	20.926
Total Current Liabilities (4)	687.379	441.270	399.976
TOTAL	1458.229	1093.147	1058.905
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	612.945	545.523	293.051
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	9.531	3.521	225.916
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	18.891	5.576	5.577
(c) Deferred tax assets (net)	3.779	3.675	6.269
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.260
Total Non-Current Assets	645.146	558.295	531.073
(2) Current assets
(a) Current investments	1.000	0.000	0.000
(b) Inventories	554.297	358.765	287.111
(c) Trade receivables	95.551	46.381	48.148
(d) Cash and cash equivalents	43.715	40.385	37.803
(e) Short-term loans and advances	118.520	89.321	154.770
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	813.083	534.852	527.832
TOTAL	1458.229	1093.147	1058.905

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1950.713	1304.635	1234.704
		Other Income	4.107	7.759	0.532
		TOTAL (A)	1954.820	1312.394	1235.236
Less	EXPENSES
		Cost of Materials Consumed	1387.849	787.103	703.177
		Purchases of Stock-in-Trade	0.000	76.563	212.579
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.261	(37.121)	1.571
		Employees benefits expense	62.559	45.410	37.518
		Other expenses	270.423	245.249	92.128
		TOTAL (B)	1721.092	1117.204	1046.973
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		233.728	195.190	188.263
Less	FINANCIAL EXPENSES (D)		90.064	67.080	39.443
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		143.664	128.110	148.820
Less/ Add	DEPRECIATION/ AMORTISATION (F)		80.030	67.971	45.738
	PROFIT BEFORE TAX (E-F) (G)		63.634	60.139	103.082
Less	TAX (H)		12.628	14.626	17.862
	PROFIT AFTER TAX (G-H) (I)		51.006	45.513	85.220
	Earnings Per Share (Rs.)		3.93	5.72	10.69

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.61	3.47	6.90
Net Profit Margin (PBT/Sales)	(%)	3.26	4.61	8.35
Return on Total Assets (PBT/Total Assets}	(%)	4.36	5.50	9.73
Return on Investment (ROI) (PBT/Networth)		0.11	0.12	0.24
Debt Equity Ratio (Total Debt /Networth)		1.09	0.94	1.06
Current Ratio (Current Asset/Current Liability)		1.18	1.21	1.32

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	79.690	82.030	175.120
Reserves & Surplus	345.713	400.586	398.702
Share Application money pending allotment	0.000	0.000	7.595
Net worth	425.403	482.616	581.417
long-term borrowings	233.526	169.261	189.433
Short term borrowings	217.070	286.581	446.150
Total borrowings	450.596	455.842	635.583
Debt/Equity ratio	1.059	0.945	1.093

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	1234.704	1304.635	1950.713
		5.664	49.522

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	1234.704	1304.635	1950.713
Profit	85.220	45.513	51.006
	6.90%	3.49%	2.61%

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	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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	----------------------
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

NATURE OF OPERATIONS

The company is mainly engaged in generation of electricity, manufacturing of Sponge Iron, Pellets and M.S. Ingots.

REVIEW OF OPERATION

Gross Turnover of their company for the year is Rs. 2183.100 Million, Profit before tax at Rs. 63.600 Million is higher by over 5.82% as compared to Rs. 60.100 Million of last year. The Company has purchased a sponge iron unit at Tilda during the current financial year whose commercial production started on date. 01.02.2013.

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
Other Loans and advances	25.864	11.509
Total	25.864	11.509

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10511022	30/06/2014	2,943,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	C13523402
2	10511194	30/06/2014	2,943,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	C12811378
3	10385014	19/02/2013 *	198,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 2ND FLOOR,, PUJARI CHAMBER,PAC HPEDI NAKA, RAIPUR, Chhattisgarh - 492001, INDIA	B70502224
4	10352155	07/03/2012	3,300,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, Maharashtra - 400001, INDIA	B38376133
5	10263262	30/12/2010	30,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH,2ND FLOOR,, PUJARI COMPLEX,PACH PEDI NAKA,, RAIPUR, Chhattisgarh - 492001, INDIA	B04867081
6	10177398	30/08/2010 *	30,000,000.00	BANK OF BARODA	Pandri, Raipur, Chhattisgarh - 492004, INDIA	A96621396
7	90209323	19/02/2013 *	838,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 2ND FLOOR,, PUJARI CHAMBER,PAC HPEDI NAKA, Raipur, Chhattisgarh - 492001, INDIA	B70501853

* Date of charge modification

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.79.86

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAR
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.