MIRA INFORM REPORT

Report Date :

18.09.2014

IDENTIFICATION DETAILS

Name :	PEB STEEL LLOYD (INDIA) LIMITED (w.e.f. 05.02.2008)
Formerly Known As :	PEB STEEL LLOYD (INDIA) PRIVATE LIMITED
Registered Office :	Punjstar Premises, Kalkaji Industrial Area, Delhi – 110019
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.11.2006
Com. Reg. No.:	55-155546
Capital Investment / Paid-up Capital :	Rs. 260.000 Millions
CIN No.: [Company Identification No.]	U27106DL2006PLC155546
PAN No.: [Permanent Account No.]	AAECP0564F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Sellers of Pre-engineered Building material and related services.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 850000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between Lloyd Insulations (India) Limited and PEB Steel Asia Limited. It is an established company having moderate track. The company possesses a moderate financial profile marked by accumulated losses and further deterioration in its performance during FY13, as reflected from decline in revenue and net profitability along with tight liquidity position due to increased working capital requirement as a result of inventory build-up which in turn increase vulnerability of the company’s margins to fluctuations in steel prices. However, trade relations are seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of established track record of the group, 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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund based limits = BB
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligations.
Date	March, 2014

Rating Agency Name	ICRA
Rating	Non-Fund based limits = A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	March, 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 BY

Name :	Mr. Ratnaveel
Designation :	Accounts manager
Contact No.:	91-9833709337
Date :	16.09.2014

LOCATIONS

Registered Office :	Punjstar Premises, Kalkaji Industrial Area, Delhi – 110019, India
Tel. No.:	Not Available
Mobile No.:	91-9833709337 (Mr. Ratnaveel)
Fax No.:	Not Available
E-Mail :	lloyd@del2.vsnl.net.in
Factory :	Plot No. 38, Pitampur, Sector-4, Kheda, Indore - 454774, Madhya Pradesh, India
Tel. No.:	91-7292-407317

DIRECTORS

AS ON 28.09.2013

Name :	Sami Nour Kteily
Designation :	Managing director
Address :	97, Nguyen Van Troi, Phu Nhan, Vietnam
Date of Birth/Age :	25.05.1958
Date of Appointment :	15.11.2006
DIN No. :	00839409
Name :	Adib Kouteili
Designation :	Director
Address :	97, Nguyen Van Troi, PHU NHAN, Vietnam
Date of Birth/Age :	28.04.1961
Date of Appointment :	15.11.2006
DIN No. :	00864250
Name :	Mohit Khanna
Designation :	Director
Address :	7/15, Kalkaji Extension, New Delhi – 110019, India
Date of Birth/Age :	23.08.1960
Date of Appointment :	15.11.2006
DIN No. :	00059431
Name :	Suneet Prakash Munjal
Designation :	Director
Address :	41, Sainara Apartments, 17 Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	21.01.1964
Date of Appointment :	15.11.2006
DIN No. :	00677710

KEY EXECUTIVES

Name :	Ankit Kumar Jain
Designation :	Secretary
Address :	S-60, Sunder Block, 4^th Floor, Shakarpur, New Delhi – 110092, India
Date of Birth/Age :	01.03.1989
Date of Appointment :	26.09.2013
PAN No. :	AIEPJ3815E

Name :	Mr. Ratnaveel
Designation :	Accounts manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2013

Names of Shareholders [Equity Shares]	No. of Shares
PEB Steels Asia Limited, British Virgin Island	750000
Lloyd Insulations (India) limited, India	749995
Cosmo Capital and Investment Private Limited Joint with Lloyd Insulations (India) limited	1
Nitam Investments Private Limited Joint with Lloyd Insulations (India) limited	1
Subhavan Investments Private limited Joint with Lloyd Insulations (India) limited	1
Munjal Holdings Private Limited Joint with Lloyd Insulations (India) limited	1
Mohit Khanna Joint with Lloyd Insulations (India) limited	1
Total	1500000

Names of Shareholders [Preferences Shares ]	No. of Shares
Lloyd Insulations (India) limited, India	1100000
Total	1100000

AS ON 28.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.00
Bodies corporate	49.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Sellers of Pre-engineered Building material and related services.

PRODUCTION STATUS AS ON 31.03.2013

Particulars	Unit	Actual Production
Products (with detail)Unit	MT	15589.371
Electricity	Units	111.24 Units/MT

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

· Axis Bank Limited, 2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi – 110001, India

· Kotak Mahindra Bank Limited, 15-16 UGF, Ambadeep Building, Kasturba Gandhi Marg, New Delhi – 110001, India

· Indusind Bank Limited, Dr. Gopal Das Building, 28, Barakhamba Road, New Delhi - 110001, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	0.000	12.500
Rupee term loans from others	16.667	0.000
SHORT TERM BORROWINGS
Loans repayable on demand from banks	151.561	51.004
Total	168.228	63.504

Note :

LONG TERM BORROWINGS

The term loan taken from Tata Capital Financial Services Limited (TCFSL) is for the purposes of meeting the working capital requirements of the Company. The interest rate applicable is Long Term Lending Rate as announced by TCFSL from time to time- 4.5% plus applicable interest, tax or other statutory levy, if any. The tenure of the loan is 3 years and is repayable in twelve equal quarterly installments beginning from 30 June 2012. The term loan is secured by first pari passu charge over entire fixed assets and current assets of the Company and corporate guarantee of Lloyd Insulation India Limited.

SHORT TERM BORROWINGS

***Cash credit taken from ICICI bank carry interest at ICICI bank's base rate plus spread (minimum spread 1.97% p.a). plus applicable interest, tax or other statutory levy, if any computed on a daily basis on the actual amount utilised. It is repayable on demand and is secured by first pari passu charge on all the moveable and immoveable fixed assets and entire stocks of raw material's, semi·finished goods and finished goods, consumables, stores and spares and such other moveables including book debts, bills whether documentary or clean, outstanding monies, receivables of the Company both present and future corporate guarantee of Lloyd Insulation India Limited. ****Cash credit taken from Axis bank carry interest at Axis bank's base rate plus spread (minimum spread 2.00% p.a). on the actual amount utilised. It is repayable on demand and is secured by first pari passu charge on all the moveable and immoveable fixed assets and current assets of the Company both present and future and corporate guarantee of Lloyd Insulation India Limited.

Banking Relations :	--
Financial Institution :	Tata Capital Financial Services Limited, One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400001, Maharashtra, India
Auditors :
Name :	B S S R and Company Chartered Accountants
Address :	Building 10, 8th Floor, Tower B, DLF Cyber City Phase - I I , Gurgaon-122002, Haryana, India
Tel. No.:	AAKFB4430H
Joint Venture :	· Lloyd Insulations (India) Limited [U74210DL1977PLC008629] · PEB Asia Limited

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs.100/- each	Rs. 150.000 Millions
1,100,000	Preference Shares	Rs.100/- each	Rs. 110.000 Millions
	Total		Rs. 260.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs.100/- each	Rs. 150.000 Millions
1,100,000	Preference Shares	Rs.100/- each	Rs. 110.000 Millions
	Total		Rs. 260.000 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	260.000	260.000	260.000
(b) Reserves & Surplus	(48.506)	(86.532)	(154.989)
(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)	211.494	173.468	105.011
(3) Non-Current Liabilities
(a) long-term borrowings	16.667	12.500	37.500
(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	3.782	3.167	1.765
Total Non-current Liabilities (3)	20.449	15.667	39.265
(4) Current Liabilities
(a) Short term borrowings	151.561	51.004	41.257
(b) Trade payables	157.721	245.831	311.361
(c) Other current liabilities	118.501	72.504	87.253
(d) Short-term provisions	1.805	3.274	0.685
Total Current Liabilities (4)	429.588	372.613	440.556
TOTAL	661.531	561.748	584.832
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	205.246	229.062	250.027
(ii) Intangible Assets	1.487	2.744	3.948
(iii) Capital work-in-progress	0.000	0.000	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	12.627
(d) Long-term Loan and Advances	5.924	5.125	2.903
(e) Other Non-current assets	67.000	40.889	16.481
Total Non-Current Assets	279.657	277.820	285.986
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	218.187	115.479	181.343
(c) Trade receivables	140.101	158.100	84.149
(d) Cash and cash equivalents	8.731	0.650	6.533
(e) Short-term loans and advances	9.859	5.217	26.657
(f) Other current assets	4.996	4.482	0.164
Total Current Assets	381.874	283.928	298.846
TOTAL	661.531	561.748	584.832

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Revenue from operations	1027.180	1200.394	916.468
	Other Income	1.335	0.745	1.229
	TOTAL (A)	1028.515	1201.139	917.697
Less	EXPENSES
	Cost of Materials Consumed	700.527	788.942	661.001
	Purchases of Stock-in-Trade	1.993	1.348	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(20.752)	3.039	6.428
	Employees benefits expense	98.578	93.652	70.984
	Other expenditure	169.462	181.399	160.018
	Prior Period Items	0.000	14.715	11.729
	TOTAL (B)	949.808	1083.095	910.160
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	78.707	118.044	7.537
Less	FINANCIAL EXPENSES (D)	41.556	36.038	26.542
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	37.151	82.006	(19.005)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	25.236	29.794	34.005
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	11.915	52.212	(53.010)
Less	TAX (H)	0.000	12.627	2.709
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	11.915	39.585	(55.719)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	0.000	0.000	70.799
	TOTAL EARNINGS	0.000	0.000	70.799
	IMPORTS
	Raw Materials	0.000	1.199	0.000
	Components and Stores parts	0.000	15.708	15.916
	TOTAL IMPORTS	0.000	16.907	15.916
	Earnings / (Loss) Per Share (Rs.)	1.32	17.12	(37.15)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.16	3.30	(6.07)
Net Profit Margin (PBT/Sales)	(%)	1.16	4.35	(5.78)
Return on Total Assets (PBT/Total Assets}	(%)	1.80	9.29	(9.26)
Return on Investment (ROI) (PBT/Networth)		0.06	0.30	(0.50)
Debt Equity Ratio (Total Debt /Networth)		0.80	0.37	0.75
Current Ratio (Current Asset/Current Liability)		0.89	0.76	0.68

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	260.000	260.000	260.000
Reserves & Surplus	(154.989)	(86.532)	(48.506)
Net worth	105.011	173.468	211.494
long-term borrowings	37.500	12.500	16.667
Short term borrowings	41.257	51.004	151.561
Total borrowings	78.757	63.504	168.228
Debt/Equity ratio	0.750	0.366	0.795

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)
Revenue from operations	916.468	1200.394	1027.180
		30.980	(14.430)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	916.468	1200.394	1027.180
Profit/(Loss) After Tax	(55.719)	39.585	11.915
	(6.08%)	3.30%	1.16%

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	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	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

VIEW INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10484152	13/03/2014	100,000,000.00	INDUSIND BANK LTD.	DR. GOPAL DAS BUILDING,, 28, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	C00179978
2	10447691	23/08/2013	100,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BR., AXIS HOUSE, GROUND FLOOR,, BOMBAY DYEING MILLS COMPOUND, P.B. MARG, WORLI,, MUMBAI, MAHARASHTRA - 400025, INDIA	B84332758
3	10358788	19/09/2013 *	100,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, AXIS HOUSE, GR. FLOOR,,  BOMBAY DYEING MILLS COMPOUND, P. B. MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA	B88182035
4	10348839	23/08/2013 *	50,000,000.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	ONE FORBES,, DR. V. B. GANDHI MARG, FORT, MUMBAI,  MAHARASHTRA - 400001, INDIA	B84705516
5	10374068	01/11/2013 *	300,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ  ARAT - 390015, INDIA	B90412156
6	10168326	14/09/2010 *	300,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJ  ARAT - 390015, INDIA	A94850823

* Date of charge modification

REVIEW OF THE OPERATIONS OF THE COMPANY

During the year 2012-13, the company has gone through the difficult situation due to the economic slowdown and certain other factors which resulted in decline in the performance of the business operations of the company during this year. During the year the company earned total Revenue of Rs 1028.500 Millions in comparison to Rs 1201.100 Millions in the year 2011-12. The Company has made a profit during the year of Rs11.9 Millions. However despite the declined performance by the company during the year, your company has bagged big orders for execution which can certainly bring improvement in the financials and other business improvements to the company in the years to come. In an extremely competitive market, the Company has made a significant niche for itself and is confident of improved working in the years to come.

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 records 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.60.95
UK Pound	1	Rs.99.32
Euro	1	Rs.78.97

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	SUB
Report Prepared by :	SNT

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	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.