MIRA INFORM REPORT

Report Date :

23.09.2014

IDENTIFICATION DETAILS

Name :	SAGARDEEP ALLOYS LIMITED [w.e.f.17.04.2012]
Formerly Known As :	SAGARDEEP ALLOYS PRIVATE LIMITED [w.e.f.25.06.2009] SAGARDEEP ALLOYES PRIVATE LIMITED
Registered Office :	205, Pittalaya Bumba, Near Madhuram Cinema, Gheekanta, Ahmedabad – 380001, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.02.2007
Com. Reg. No.:	04-050007
Capital Investment / Paid-up Capital :	Rs. 83.716 Millions
CIN No.: [Company Identification No.]	U29253GJ2007PLC050007
PAN No.: [Permanent Account No.]	AAKCS6034M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of alloys consumables, Copper pipes and tubes, Copper flats, Copper coils, Copper rods, Copper anodes, Copper nuggets and Copper plates, Stainless Steel sheets / coils, rods, pipes and tubes, etc.
No. of Employees :	80 (Approximately)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Not Available
Comments :	Subject is an established company having moderate track record. There seems dip in the profit of the company during 2013. However, the rating also takes into consideration susceptible to volatile copper prices and its presence in a competitive copper alloy industry. Trade relations are fair. Business is active. Payment terms are reported to be 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

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 willfully 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	CARE
Rating	Long term Bank facilities = BB
Rating Explanation	Have moderate risk of default
Date	March 14, 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 PARTED BY

Name :	Mr. Krishnakant Somani
Designation :	Development Manager
Contact No.:	91-79-25626335
Date :	20.09.2014

LOCATIONS

Registered Office :	205, Pittalaya Bumba, Near Madhuram Cinema, Gheekanta, Ahmedabad – 380001, Gujarat, India
Tel. No.:	91-79-25626335/ 25626304
Fax No.:	91-79-25626335
E-Mail :	info@sdalloys.com secretary@sdalloys.com
Website :	http://www.sdalloys.com
Sales Office :	45/47, Durgadevi Street, 2nd Kumbharwada, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-66109388/ 66362051
Fax No.:	91-22-66362621
Factory :	Plot No. 2070, Rajnagar Patiya, Santej Khatraj Road, Santej, Taluka: Kalol (N.G.), Gandhinagar – 382721, Gujarat, India
Tel. No.:	91-2764-291197

DIRECTORS

AS ON 20.09.2012

Name :

Mr. Satishkumar Asamal Mehta

Designation :

Managing director

Address :

3, Saras Society, Near Sindhi High School, Opposite Navrup Colony, Shantinagar, Usmanpura, Ahmedabad - 380013, Gujarat, India

Date of Birth/Age :

18.03.1977

Qualification :

B. Com

Date of Appointment :

31.12.2011

PAN No.:

ABIPM7789B

DIN No.:

01958984

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	U29253GJ2007PLC050007	SAGARDEEP ALLOYS LIMITED	Managing director	31/12/2011	13/02/2007	-	Active	NO
2	U29190GJ2008PTC052864	SIGMA LASERTECH PRIVATE LIMITED	Director	08/02/2008	08/02/2008	21/06/2011	Active	NO
3	U27205GJ2007PTC049906	SHREE HASTI METALS PRIVATE LIMITED	Director	02/05/2009	02/05/2009	27/08/2009	Active	YES
4	U29100GJ2011PTC063479	SAGARDEEP ENGINEERS PRIVATE LIMITED	Director	03/01/2011	03/01/2011	-	Active	NO
5	U51420GJ2012PTC072288	TPS METAL & TUBE PRIVATE LIMITED	Director	11/10/2012	11/10/2012	28/03/2013	Active	NO
6	U31402GJ2011PTC066847	FIREFLY BATTERIES PRIVATE LIMITED	Additional director	27/12/2013	27/12/2013	-	Active	NO

Name :

Mr. Aashmalji Saremalji Mehta

Designation :

Director

Address :

3, Saras Society, Near Sindhi High School, Opposite Navrup Colony, Shantinagar, Usmanpura, Ahmedabad - 380013, Gujarat, India

Date of Birth/Age :

01.07.1949

Qualification :

B. Com

Date of Appointment :

13.02.2007

PAN No.:

ABOPM4101F

DIN No.:

01900671

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	U29253GJ2007PLC050007	SAGARDEEP ALLOYS LIMITED	Director	13/02/2007	13/02/2007	-	Active	NO
2	U51909GJ2011PTC063681	SHAKTI STAINLESS PRIVATE LIMITED	Director	16/01/2011	16/01/2011	12/12/2013	Active	NO

Name :

Mr. Jayeshkumar Ashmal Mehta

Designation :

Director

Address :

3, Saras Society, Near Sindhi High School, Opposite Navrup Colony, Shantinagar, Usmanpura, Ahmedabad - 380013, Gujarat, India

Date of Birth/Age :

03.08.1979

Qualification :

B. Com

Date of Appointment :

05.05.2008

PAN No.:

AGOPM6792M

DIN No.:

02156140

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	U29253GJ2007PLC050007	SAGARDEEP ALLOYS LIMITED	Director	05/05/2008	05/05/2008	-	Active	NO
2	U27205GJ2007PTC049906	SHREE HASTI METALS PRIVATE LIMITED	Director	02/05/2009	02/05/2009	27/08/2009	Active	YES
3	U51502GJ2012PTC071995	SWISS IMPEX PRIVATE LIMITED	Director	17/09/2012	17/09/2012	01/06/2013	Active	NO

Name :

Mr. Harishkumar Ashmalji Mehta

Designation :

Director

Address :

3, Saras Society, Near Sindhi High School, Opposite Navrup Colony, Shantinagar, Usmanpura, Ahmedabad - 380013, Gujarat, India

Date of Birth/Age :

08.08.1983

Qualification :

B. Com

Date of Appointment :

05.05.2008

PAN No.:

AJJPM9461F

DIN No.:

02156161

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	U29253GJ2007PLC050007	SAGARDEEP ALLOYS LIMITED	Director	05/05/2008	05/05/2008	-	Active	NO
2	U29100GJ2011PTC063479	SAGARDEEP ENGINEERS PRIVATE LIMITED	Managing director	03/01/2011	03/01/2011	16/01/2014	Active	NO
3	U51502GJ2012PTC071995	SWISS IMPEX PRIVATE LIMITED	Director	17/09/2012	17/09/2012	01/06/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Krishnakant Somani
Designation :	Development Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 20.09.2012

Names of Shareholders	No. of Shares
Satish A. Mehta	1578550
Asmalji S. Mehta	1466950
Jayesh A. Mehta	1751500
Harish A. Mehta	128000
Jayesh Asmalji Mehta HUF	207000
Satish AsmalJi Mehta HUF	219000
Rekha Mehta	287000
Sangita Mehta	329500
Rameshbhai A. Mehta	102000
Rekha Jitendra Kanungo	3000
Sagardeep Engineers Private Limited	633500
Ugamdevi A. Mehta	79000
Asmalji S Mehta HUF	549000
Rinika Mehta	79000
Sagardeep Indradeveloper Private Limited	642600
Aas Indradevelopers Private Limited	316000
Total	8371600

AS ON 20.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	19.01
Directors or relatives of directors	80.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of alloys consumables, Copper pipes and tubes, Copper flats, Copper coils, Copper rods, Copper anodes, Copper nuggets and Copper plates, Stainless Steel sheets / coils, rods, pipes and tubes, etc.

Products/ Services :

ITC Code No.	Product Descriptions
85441190	Aluminum
74040022	Brass
74040019	Copper
80020010	Gun Metal
72161000	MS Steel
72042190	SS Steel
74111000	Tin Ingot
75021000	Nickel
74122019	Red Brass
80020010	Tun Gusten Rods
38101090	Welding Rods

Exports :

Products :

Finished Goods

Countries :

· UAE

Kuwait

Jordan

Imports :

Products :

Raw material

Countries :

· Dubai

China

Singapore

Terms :

Selling :

Cash, L/C and Credit

Purchasing :

Cash, L/C and Credit

PRODUCTION STATUS (AS ON 31.03.2013)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Copper and Brass Items	MT	NA	2400	704.032

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

· Bhel

No. of Employees :

80 (Approximately)

Bankers :

· Bank of Baroda

Usmanpura Branch, Ahmedabad - 380013, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	1.290	2.383
SHORT TERM BORROWINGS
Working capital loans from banks	198.007	183.326
Other loans and advances	0.000	0.017
Total	199.297	185.726

Banking Relations :	--
Auditors :
Name :	Pushpendra Gupta and Associates Chartered Accountants
Address :	407, Iscon Avenue, Near Choice Restaurant, C. G. Road, Ahmedabad – 380009, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AAEFP9765F

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8,371,600	Equity Shares	Rs. 10/- each	Rs. 83.716 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	83.716	83.716	14.000
(b) Reserves & Surplus	76.151	69.752	33.036
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	6.000
Total Shareholders’ Funds (1) + (2)	159.867	153.468	53.036
(3) Non-Current Liabilities
(a) long-term borrowings	1.290	2.383	43.096
(b) Deferred tax liabilities (Net)	2.782	2.094	1.421
(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)	4.072	4.477	44.517
(4) Current Liabilities
(a) Short term borrowings	198.198	183.581	126.244
(b) Trade payables	77.235	215.713	241.025
(c) Other current liabilities	14.703	2.941	0.636
(d) Short-term provisions	2.400	2.184	4.090
Total Current Liabilities (4)	292.536	404.419	371.995
TOTAL	456.475	562.364	469.548
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	33.379	32.800	33.742
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	2.183	0.091	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	1.251	1.128	0.005
(e) Other Non-current assets	0.000	0.007	0.014
Total Non-Current Assets	36.813	34.026	33.761
(2) Current assets
(a) Current investments	0.000	0.000	1.680
(b) Inventories	106.121	197.026	105.207
(c) Trade receivables	266.480	323.196	250.555
(d) Cash and cash equivalents	3.318	1.662	0.680
(e) Short-term loans and advances	43.743	6.454	77.665
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	419.662	528.338	435.787
TOTAL	456.475	562.364	469.548

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	2004.624	1784.602	1340.548
		Other Income	1.006	2.742	3.474
		TOTAL (A)	2005.630	1787.344	1344.022
Less	EXPENSES
		Cost of Materials Consumed	300.203	391.641	267.231
		Purchases of Stock-in-Trade	1558.971	1392.920	1065.850
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	80.840	(81.517)	(48.014)
		Employees benefits expense	4.346	5.202	5.071
		Other expenses	25.242	29.927	18.667
		Extraordinary Items	0.000	0.000	(0.029)
		TOTAL (B)	1969.602	1738.173	1308.776
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		36.028	49.171	35.246
Less	FINANCIAL EXPENSES (D)		25.157	20.270	13.412
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.871	28.901	21.834
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.205	1.128	0.943
	PROFIT BEFORE TAX (E-F) (G)		9.666	27.773	20.891
Less	TAX (H)		3.267	9.022	6.963
	PROFIT AFTER TAX (G-H) (I)		6.399	18.751	13.928
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	15.262	3.290	0.000
	IMPORTS
		Raw Materials	57.489	115.221	NA
	Earnings Per Share (Rs.)		0.76	2.24	9.95

Particulars	31.03.2014
Sales Turnover (Approximately)	2000.000

The above information has been parted by Mr. Krishnakant Somani [Development Manager]

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.32	1.05	1.04
Net Profit Margin (PBT/Sales)	(%)	0.48	1.56	1.56
Return on Total Assets (PBT/Total Assets}	(%)	2.13	4.94	4.45
Return on Investment (ROI) (PBT/Networth)		0.06	0.18	0.39
Debt Equity Ratio (Total Debt/Networth)		1.25	1.21	3.19
Current Ratio (Current Asset/Current Liability)		1.43	1.31	1.17

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	14.000	83.716	83.716
Reserves & Surplus	33.036	69.752	76.151
Share Application money pending allotment	6.000	0.000	0.000
Net worth	53.036	153.468	159.867
long-term borrowings	43.096	2.383	1.290
Short term borrowings	126.244	183.581	198.198
Total borrowings	169.340	185.964	199.488
Debt/Equity ratio	3.193	1.212	1.248

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	1340.548	1784.602	2004.624
		33.125	12.329

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	1340.548	1784.602	2004.624
Profit	13.928	18.751	6.399
	1.04%	1.05%	0.32%

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	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	No
17]	Major suppliers	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10176570	25/04/2011 *	204,300,000.00	BANK OF BARODA	USMANPURA BRANCH, AHMEDABAD, GUJARAT - 380013, INDIA	B12553707
2	10167167	31/03/2011 *	204,300,000.00	BANK OF BARODA	USMANPURA BRANCH, AHMEDABAD, GUJARAT - 380013, INDIA	B12553046

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Deposits	0.191	0.238
Total	0.191	0.238

OPERATION

The year was good for the company from turnover point of view wherein company’s performance was satisfactory. The sales grew up by 12.73% during the year.

FIXED ASSETS:

· Buildings

Factory building

Plant and equipment

Other plant and equipment

Furniture and fixtures

Vehicles

Motor vehicles

Office equipment

Computer equipments

Other 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 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. 60.79
UK Pound	1	Rs. 99.30
Euro	1	Rs. 78.16

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--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	--

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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.