MIRA INFORM REPORT

Report Date :

10.09.2014

IDENTIFICATION DETAILS

Name :	OCEAN STEELS PRIVATE LIMITED
Registered Office :	Plot No. 68 And 69, Sarkhej Bavlas N H No 8a, Village Muralia, Ahmedabad – 382220, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.06.2005
Com. Reg. No.:	04-046176
Capital Investment / Paid-up Capital :	Rs. 6.000 Millions
CIN No.: [Company Identification No.]	U27100GJ2005PTC046176
TAN No.: [Tax Deduction & Collection Account No.]	AHMO00567A
PAN No.: [Permanent Account No.]	AAACO8021G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Tracker of Stainless Steel Products
No. of Employees :	90 (Approximately)

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. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments terms are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

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.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Madam Heena
Designation :	Accounts Officer
Contact No.:	91-79-40007600
Date :	30.08.2014

LOCATIONS

Registered Office /Factory :	Plot No. 68 And 69, Sarkhej Bavlas N H No 8a, Village Muralia, Ahmedabad – 382220, Gujarat
Tel. No.:	91-2717-321030
Fax No.:	91-2717-250788
E-Mail :	hina@gopalgroup.com ocean@gopalgroup.com
Area :	10000 sq. ft.
Location :	Owned
Head Office :	2^nd Floor, Rajvi Arcade, Opposite Gurukul Temple, Memnagar, Ahmedabad – 380052, Gujarat, India
Tel. No.:	91-79-40007600
Location :	Owned

DIRECTORS

As on: 30.09.2013

Name :

Mr. Gopal Swarup Gupta

Designation :

Director

Address :

H -34, Ashok Vihar, Phase II, Delhi – 110052, India

Date of Birth/Age :

26.03.1965

Date of Appointment :

02.06.2005

DIN No.:

00381600

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	U74899DL1988PTC032409	COMET BUILDERS PRIVATE LIMITED	Director	11/07/1988	11/07/1988	-	Active	NO
2	U27109DL1990PLC040795	CASTWELL ALLOYS LIMITED	Director	12/07/1990	12/07/1990	10/11/2008	Active	NO
3	U67120GJ1979PTC079099	ALLIED HOLDINGS PRIVATE LIMITED	Director	12/02/1993	12/02/1993	-	Active	NO
4	U74899DL1993PLC054676	KRAZE EXPORTS LIMITED	Director	30/07/1993	30/07/1993	-	Active	NO
5	U74899DL1995PLC066535	GOPAL UDYOG LIMITED	Director	20/03/1995	20/03/1995	-	Active	NO
6	U45201DL1998PTC091501	G G PROJECTS PRIVATE LIMITED	Director	05/01/1998	05/01/1998	-	Active	NO
7	U45201DL2000PTC103888	KRISHNA PROJECTS PRIVATE LIMITED	Director	22/02/2000	22/02/2000	-	Active	NO
8	U27100GJ1999PLC036413	LAXCON STEELS LIMITED	Managing director	05/04/2012	20/03/2002	-	Active	NO
9	U27100GJ2005PTC046176	OCEAN STEELS PRIVATE LIMITED	Director	02/06/2005	02/06/2005	-	Active	NO
10	U45201GJ2007PTC049892	KRAZE BUILDERS PRIVATE LIMITED	Director	31/01/2007	31/01/2007	-	Active	NO
11	U45202GJ2007PTC049912	MAJESTIC INDUSTRIAL PARK PRIVATE LIMITED	Director	01/02/2007	01/02/2007	-	Active	NO

Name :

Mr. Surrender Pal Gupta

Designation :

Director

Address :

H -34, Ashok Vihar, Phase II, Delhi – 110052, India

Date of Birth/Age :

22.02.1942

Date of Appointment :

02.06.2006

DIN No.:

00381499

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	U74899DL1988PTC032409	COMET BUILDERS PRIVATE LIMITED	Director	11/07/1988	11/07/1988	-	Active	NO
2	U27109DL1990PLC040795	CASTWELL ALLOYS LIMITED	Director	12/07/1990	12/07/1990	29/11/2008	Active	NO
3	U27105TN1989PTC018469	VINAYAKA ALLOYS PRIVATE LIMITED	Director	31/01/1991	31/01/1991	-	Active	NO
4	U74899DL1993PLC054676	KRAZE EXPORTS LIMITED	Director	29/09/2008	30/07/1993	-	Active	NO
5	U52110DL1979PTC009979	PARVATI Private Limited	Director	01/08/1994	01/08/1994	-	Active	NO
6	U74899DL1995PLC066535	GOPAL UDYOG LIMITED	Director	20/03/1995	20/03/1995	-	Active	NO
7	U45201DL2000PTC103888	KRISHNA PROJECTS PRIVATE LIMITED	Director	22/02/2000	22/02/2000	-	Active	NO
8	U25200MH1997PTC109083	STEELAGE EXIM PRIVATE LIMITED	Director	26/05/2005	26/05/2005	05/10/2010	Active	NO
9	U27100GJ2005PTC046176	OCEAN STEELS PRIVATE LIMITED	Director	02/06/2006	02/06/2006	-	Active	NO
10	U45200GJ2005PTC066140	BRIGHTSTAR PROJECTS PRIVATE LIMITED	Director	26/05/2007	26/05/2007	14/09/2009	Active	NO

Name :

Mr. Vinod Kumar Jain

Designation :

Director

Address :

B -12, Yash Tower, Satellite, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

04.12.1969

Date of Appointment :

27.09.2008

DIN No.:

02267712

Name :

Mr. Pratik Kumar Lila

Designation :

Director

Address :

B - 2, Shastri Nagar, Opposite Punjab National Bank, Jodhpur – 342001, Rajasthan, India

Date of Birth/Age :

05.09.1985

Date of Appointment :

22.09.2011

DIN No.:

02263171

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	U45200GJ2005PTC066140	BRIGHTSTAR PROJECTS PRIVATE LIMITED	Director	12/09/2008	05/07/2008	20/08/2010	Active	NO
2	U27100GJ2005PTC046176	OCEAN STEELS PRIVATE LIMITED	Director	22/09/2011	08/10/2010	-	Active	NO

KEY EXECUTIVES

Name :	Madam Heena
Designation :	Accounts Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Surrender Pal Gupta	5000	0.83
Gopal Swarup Gupta	255000	42.50
Sita Gupta	90000	15.00
Vinod Gupta (HUF)	50000	8.33
Pooja Gupta	200000	33.34
Total	600000	100.00

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Tracker of Stainless Steel Products
Products :	· Electrical Items · Ferro Alloys · Machinery and Mechanical Appliances · Machinery Items
Imports :
Products :	Raw Material
Countries :	· South Africa · Thailand
Terms :
Selling :	Cash and credit
Purchasing :	Cash, LC and credit

GENERAL INFORMATION

Suppliers :

Loha Thai Stainless Steel, South Africa

Customers :

Rayan General Trading, Dubai

No. of Employees :

90 (Approximately)

Bankers :

Indusind Bank Limited, Wold Business House, M. G. Road, Near Parimal Garden, Ellis Bridge, Ahmedabad – 380015, Gujarat, India

Fund and Non Fund – 60.000 Millions

Facilities :

Secured Loan	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
SHORT TERM BORROWINGS:
LOANS REPAYABLE ON DEMAND
Working capital loans from bank	7.686	7.985
Cash credit	14.679	8.262
Term loans	0.000	0.746
Total	22.365	16.993

Banking Relations :	--
Auditors :
Name :	Sunil Poddar And Company Chartered Accountants
Address :	301 – 305, Vraj Bhumi Complex, Near Prarthana Flat, B/H Shilp Building, Off C. G .Road, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26402893 / 26431097
Fax No.:	91-79-26462614
PAN No.:	ABEFS3044F
Associates/Subsidiaries :	Laxcon Steels Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs. 6.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs. 6.000 Millions

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	6.000	6.000	6.000
(b) Reserves & Surplus	20.051	15.191	12.705
(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)	26.051	21.191	18.705
(3) Non-Current Liabilities
(a) long-term borrowings	21.911	23.400	13.085
(b) Deferred tax liabilities (Net)	5.860	4.957	3.778
(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)	27.771	28.357	16.863
(4) Current Liabilities
(a) Short term borrowings	49.365	18.209	18.893
(b) Trade payables	13.960	4.368	0.579
(c) Other current liabilities	0.866	0.563	0.597
(d) Short-term provisions	1.622	0.949	1.121
Total Current Liabilities (4)	65.813	24.089	21.190
TOTAL	119.635	73.637	56.758
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	45.902	46.086	43.368
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.002	0.074
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.020	0.020	0.020
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.735	5.544	3.046
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	49.657	51.652	46.508
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2.891	1.907	0.681
(c) Trade receivables	58.865	15.732	2.134
(d) Cash and cash equivalents	4.374	2.528	2.698
(e) Short-term loans and advances	3.707	1.732	4.641
(f) Other current assets	0.141	0.086	0.096
Total Current Assets	69.978	21.985	10.250
TOTAL	119.635	73.637	56.758

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	119.924	69.314
		Other Income	0.221	1.617
		TOTAL (A)	120.145	70.931	61.676
Less	EXPENSES
		Purchases of Stock-in-Trade	80.582	43.473	56.188 (Including Financial Expenses)
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1.122)	0.000
		Employees benefits expense	4.227	3.537
		Other expenses	21.986	14.880
		TOTAL (B)	105.673	61.890
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.472	9.041
Less	FINANCIAL EXPENSES (D)		4.073	3.277
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.399	5.764	5.488
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.409	2.099	1.833
	PROFIT BEFORE TAX (E-F) (G)		6.990	3.665	3.655
Less	TAX (H)		2.130	1.179	1.142
	PROFIT AFTER TAX (G-H) (I)		4.860	2.486	2.513
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	7.186	0.000	13.660
	TOTAL EARNINGS		7.186	0.000	13.660
	Earnings Per Share (Rs.)		8.10	4.14	4.19

Particulars	31.03.2014
Sales Turnover (Approximately)	160.000

The above information has been parted by Madam Heena Acharya.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.05	3.50	4.07
Net Profit Margin (PBT/Sales)	(%)	5.83	5.29	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.84	4.98	6.45
Return on Investment (ROI) (PBT/Networth)		0.27	0.17	0.20
Debt Equity Ratio (Total Debt/Networth)		2.74	1.96	1.71
Current Ratio (Current Asset/Current Liability)		1.06	0.91	0.48

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	6.000	6.000	6.000
Reserves & Surplus	12.705	15.191	20.051
Net worth	18.705	21.191	26.051
long-term borrowings	13.085	23.400	21.911
Short term borrowings	18.893	18.209	49.365
Total borrowings	31.978	41.609	71.276
Debt/Equity ratio	1.710	1.964	2.736

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	61.676	70.931	120.145
		15.006	69.383

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	61.676	70.931	120.145
Profit	2.513	2.486	4.860
	4.07%	3.50%	4.05%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last 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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Note: The Registered Office of the company has been shifted from A/101, Sahajanad Apartment, Near Maharaja Agrasen School, Gurukul Road, Memnagar, Ahmedabad – 380052, Gujarat, India to the present address w.e.f. 22.05.2006.

UNSECURED LOAN

Particulars	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS:
Term Loan From Bank
From Related Parties	21.911	23.400
SHORT TERM BORROWINGS:
LOANS REPAYABLE ON DEMAND
From related parties	27.000	1.216
Total	48.911	24.616

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10486800	12/03/2014	60,000,000.00	INDUSIND BANK LTD.	WOLD BUSINESS HOUSE, M. G. ROAD, NR. PARIMAL GARDAN ,ELLIS BRIDGE, AHMEDABAD - 380015, GUJARAT, INDIA	C01129410
2	10475954	12/12/2013	60,000,000.00	INDUSIND BANK LIMITED	WOLD BUSINESS HOUSE, M.G. ROAD, NR. PARIMAL GARDAN,ELLIS BRIDGE, AHMEDABAD - 380015, GUJARAT, INDIA	B95632600

FIXED ASSETS:

· Freehold Land

· Buildings

· Plant and Machinery

· Electrical Fittings

· Computer

· Furniture and Fixtures

· Office Equipments

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 judgment 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.60.43
UK Pound	1	Rs.97.25
Euro	1	Rs.77.93

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	DIV
Report Prepared by :	JAY

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	6
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	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.