MIRA INFORM REPORT

Report No. :	314785
Report Date :	01.04.2015

IDENTIFICATION DETAILS

Name :	SHREE PARASHNATH RE-ROOLLING MILLS LIMITED
Registered Office :	Part-3511, Dr. B.C Roy Avenue, Durgapur – 713201, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.02.2002
Com. Reg. No.:	21-094302
Capital Investment / Paid-up Capital :	Rs. 292.725 Million
CIN No.: [Company Identification No.]	U27104WB2002PLC094302
TAN No.: [Tax Deduction & Collection Account No.]	CALS13092C
PAN No.: [Permanent Account No.]	AAGCS2108E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and trading of Iron and Steel Items.
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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of a loss incurred by the company during FY 2014. However, trade relations are reported as fair. Business is active. Payments 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 DECLINED BY

Name :	Mr. Krishna Vishwkarma
Designation :	Accountant
Contact No.:	91-7699994044
Date :	30.03.2015

LOCATIONS

Registered Office / Work :	Part-3511, Dr. B.C Roy Avenue, Durgapur – 713201, West Bengal, India
Tel. No.:	91-343-2554458/0537
Mobile No.:	91-7699994044 (Mr. Krishna Vishwkarma)
Fax No.:	91-343-255 0538
E-Mail :	kv@parassteels.com
Website :	www.parassteels.com
Corporate Office :	37, Shakesphere Sarani, S. B. Tower, 3rd Floor, Kolkata-700 017, West Bengal, India
Tel. No.:	91-33-22901616/17
Fax No.:	91-33-22901618
E-Mail :	info@parassteels.com / tarun@parassteels.com

DIRECTORS

As on 30.09.2014

Name :

Mr. Anil Kumar Jain

Designation :

Managing director

Address :

Flat No. 10, Dfkanakangan Building City Centre, Durgapur – 713216, West Bengal, India

Date of Birth/Age :

01.07.1957

Date of Appointment :

28.02.2002

DIN No.:

00008258

PAN No.:

ABTPJ4207A

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	U27104WB2002PLC094302	SHREE PARASHNATH RE-ROOLLING MILLS LIMITED	Managing director	28-02-02	28-02-02	-	Active	NO
2	U72200WB1999PTC090772	IOTA SOFTWARE & SERVICES PRIVATE LIMITED	Director	18-10-06	18-10-06	25-02-15	Active	NO
3	U27106DL2005PTC141997	SARVOTTAM ROLLING MILLS PRIVATE LIMITED	Director	25-08-08	05-11-07	07-10-12	Active	NO
4	U27100TG2007PLC056740	TEXCON STEELS LIMITED	Director	01-07-08	01-07-08	17-05-12	Active	NO

Name :

Mr. Vipin Kumar Jain

Designation :

Whole-time director

Address :

Sector – 2 Cg Rflps New Towns, Ship Bidhannagar Megh, Muller Sarani, Durgapur – 713212, West Bengal, India

Date of Birth/Age :

20.06.1962

Date of Appointment :

21.03.2003

DIN No.:

00014331

PAN No.:

ABTPJ4229L

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	U25202UP1990PTC012460	SHREE PARASNATH REFRECTORIES PRIVATE LIMITED	Director	16-11-90	16-11-90	25-08-11	Active	NO
2	U27104WB2002PLC094302	SHREE PARASHNATH RE-ROOLLING MILLS LIMITED	Whole-time director	21-03-03	21-03-03	-	Active	NO
3	U27109WB2005PTC102703	PARASHNATH RE-ROLLING MILLS PRIVATE LIMITED	Director	11-04-05	11-04-05	25-02-15	Active	NO
4	U72200WB1999PTC090772	IOTA SOFTWARE & SERVICES PRIVATE LIMITED	Director	18-10-06	18-10-06	25-02-15	Active	NO
5	U27109WB2006PLC111698	PARAS ISPAT LIMITED	Director	07-11-06	07-11-06	25-02-15	Active	NO
6	U28113DL2001PLC171407	TIRUPATI UDYOG LIMITED	Additional director	11-02-11	08-12-08	04-07-12	Active	NO

Name :

Mr. Tarun Jain

Designation :

Director

Address :

Flat No. 10, Dfkanakangan Building City Centre, Durgapur – 713216, West Bengal, India

Date of Birth/Age :

11.09.1984

Date of Appointment :

18.08.2008

DIN No.:

00356552

PAN No.:

AFUPJ5236N

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	U27109WB2005PTC102703	PARASHNATH RE-ROLLING MILLS PRIVATE LIMITED	Director	11-04-05	11-04-05	25-02-15	Active	NO
2	U27109WB2006PLC111698	PARAS ISPAT LIMITED	Director	07-11-06	07-11-06	25-02-15	Active	NO
3	U27104WB2002PLC094302	SHREE PARASHNATH RE-ROOLLING MILLS LIMITED	Director	18-08-08	16-11-07	-	Active	NO

Name :

Mr. Abhishek Jain

Designation :

Director

Address :

Sector – 2 Cg Rflps New Towns, Ship Bidhannagar Megh, Muller Sarani, Durgapur – 713212, West Bengal, India

Date of Birth/Age :

15.06.1988

Date of Appointment :

23.02.2010

DIN No.:

01275834

PAN No.:

AHEPJ8676Q

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	U27109WB2006PLC111698	PARAS ISPAT LIMITED	Director	07-11-06	07-11-06	25-02-15	Active	NO
2	U27104WB2002PLC094302	SHREE PARASHNATH RE-ROOLLING MILLS LIMITED	Director	23-02-10	23-02-10	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Krishna Vishwkarma
Designation :	Accountant
Name :	Puja Bhalla
Designation :	Secretary
Address :	22.04.1989
Date of Birth/Age :	D-2, 67 Lunastreet Bidhan Nagar, Durgapur – 713212, West Bengal, India
Date of Appointment :	03.09.2012
PAN No.:	BCZPB9432K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Anil Kumar Jain	3873591
Amita Jain	5075000
Tarun Jain	2410600
Anupama Rani Jain	657300
Anil Kumar Jain and Sons	805130
Vipin Kumar Jain	3022900
Sangeeta Jain	1288500
Abhishek Jain	1062600
Vipin Kumar Jain and Sons	781000
Iotasoftware and Services (Private) Limited, India	1636500
Parash Nath Re-Rolling Mills (Private) Limited, India	3760722
Paras Ispat Limited, India	4898689
Total	29272532

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	35.20
Directors or relatives of Directors	64.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and trading of Iron and Steel Items.

Products :

Item Code No.	Product Description
72139190	Wire Rode
72163100	Channel
72164000	Angle
72071920	Billets

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

• State Bank of India, Commercial Branch, Kolkata, 24, Park Street, Kolkata - 700016, West Bengal, India
• State Bank of Hyderabad, 113, Park Street, Kolkata - 700016, West Bengal, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Rupee term loans from banks	125.588	182.248
Short-term borrowings
Working capital loans from banks	419.050	0.000
Loans repayable on demand from banks	968.936	1154.080
Total	1513.574	1336.328

Banking Relations :	--
Auditors :
Name :	A Jain Agarwal and Company Chartered Accountants
Address :	Sadar Bazar Upper Storey
PAN N Income-tax PAN of auditor or auditor's firm :	AAMFA6693H
Memberships :	--
Collaborators :	--
Associates:	Parashnath Re-Rolling Mills Private Limited, India [U27109WB2005PTC102703] Paras Ispat Limited, India [U27109WB2006PLC111698] Iota Software and Services Private Limited, India [U72200WB1999PTC090772]

CAPITAL STRUCTURE

AFTER 30.09.2014

Authorised Capital : Rs. 500.000 Million

Issued, Subscribed & Paid-up Capital : Rs. 302.075 Million

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs. 500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29272532	Equity Shares	Rs.10/- each	Rs. 292.725 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	292.725	264.197	248.686
(b) Reserves & Surplus	957.725	949.407	877.488
(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)	1250.450	1213.604	1126.174
(3) Non-Current Liabilities
(a) long-term borrowings	129.645	209.898	237.000
(b) Deferred tax liabilities (Net)	0.000	50.367	38.260
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	1.075	1.100
Total Non-current Liabilities (3)	129.645	261.340	276.360
(4) Current Liabilities
(a) Short term borrowings	1387.986	1154.080	893.920
(b) Trade payables	1039.328	1237.795	1327.984
(c) Other current liabilities	92.091	83.571	135.376
(d) Short-term provisions	122.345	136.780	73.100
Total Current Liabilities (4)	2641.750	2612.226	2430.380
TOTAL	4021.845	4087.170	3832.914
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	630.870	700.705	743.692
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	6.179
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	27.349	27.349	27.349
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	13.617	10.991	22.681
(e) Other Non-current assets	184.591	184.591	22.319
Total Non-Current Assets	856.427	923.636	822.220
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1988.322	2005.151	1671.416
(c) Trade receivables	876.026	880.958	1018.802
(d) Cash and cash equivalents	151.420	138.568	137.438
(e) Short-term loans and advances	39.788	83.409	117.390
(f) Other current assets	109.862	55.448	65.648
Total Current Assets	3165.418	3163.534	3010.694
TOTAL	4021.845	4087.170	3832.914

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	5125.501	5930.656	6368.770
	Other Income	10.787	2.342	0.560
	TOTAL (A)	5136.288	5932.998	6369.330
Less	EXPENSES
	Cost of Materials Consumed	3701.984	5256.976	5058.490
	Purchases of Stock-in-Trade	222.122	74.158	599.482
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	190.378	(567.808)	(360.672)
	Employees benefits expense	24.074	57.012	60.767
	Other expenses	836.776	763.929	700.413
	TOTAL (B)	4975.334	5584.267	6058.480
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	160.954	348.731	310.850
Less	FINANCIAL EXPENSES (D)	223.526	212.132	151.107
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(62.572)	136.599	159.743
Less/ Add	DEPRECIATION/ AMORTISATION (F)	93.529	106.768	88.179
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(156.101)	29.831	71.564
Less	TAX (I)	(50.309)	12.201	24.461
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(105.792)	17.630	47.103
	Earnings / (Loss) Per Share (Rs.)	(3.61)	0.67	1.89

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(2.06)	0.30	0.74
Operating Profit Margin (PBIDT/Sales)	(%)	3.14	5.88	4.88
Return on Total Assets (PBT/Total Assets}	(%)	(3.91)	0.73	1.88
Return on Investment (ROI) (PBT/Networth)		(0.12)	0.02	0.06
Debt Equity Ratio (Total Debt /Networth)		1.21	1.12	1.00
Current Ratio (Current Asset/Current Liability)		1.20	1.21	1.24

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	248.686	264.197	292.725
Reserves & Surplus	877.488	949.407	957.725
Net worth	1126.174	1213.604	1250.450
long-term borrowings	237.000	209.898	129.645
Short term borrowings	893.920	1154.080	1387.986
Total borrowings	1130.920	1363.978	1517.631
Debt/Equity ratio	1.004	1.124	1.214

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	6368.770	5930.656	5125.501
		(6.879)	(13.576)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	6368.770	5930.656	5125.501
Profit	47.103	17.630	(105.792)
	0.74%	0.30%	(2.06%)

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

NOTE: Registered office of the company has been shifted from 14C, Maharshi Devendra Road, 3^rd Floor, Kolkata – 700007, West Bengal, India to the present address w.e.f. 15.04.2011

OPERATIONS

The Company’s financial performance has been adversely affected due to sluggish economic scenario relating to slump in demand during the year under review. The turnover of the Company has shown a steep decline due to the financial constraints which the company has been facing acutely. The Company has incurred a whooping loss of Rs. 105.000 Million during the year against a profit of Rs. 17.600 Million during the previous year. The Company has been making full efforts for increasing its production and stabilizing the financial aspects which will reflect better results in the current year.

FUTURE PROSPECTS

The Company on its part has been taking various initiatives to improve its operating efficiency and revenue operating potential. The Company continued its emphasis on retaining its customers, realizing from debtors, including product and market development. The Management is making all the efforts to eliminate liquidity crunch and sustain the production focusing and in talks with financial institutions so that this situation can be successfully sailed through.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Intercorporate borrowings	4.000	11.700
Deposits from others	0.057	0.000
Loans and advances from others	0.000	15.950
Total	4.057	27.650

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10555796	23/02/2015	625,400,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA	C47084447
2	10393844	12/12/2012	250,000,000.00	STATE BANK OF HYDERABAD	113, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA	B64826407
3	10355402	23/02/2015 *	1,697,600,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA	C47083670
4	10293913	08/06/2011	100,000,000.00	STATE BANK OF HYDERABAD	PARK STREET BRANCH, 113, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA	B15674922
5	10291264	08/06/2011	145,000,000.00	PUNJAB NATIONAL BANK	SHAKESPEARE SARANI, 52A, SHAKESPEARE SARANI, KOLKATA, WEST BENGAL - 700017, INDIA	B14631105
6	10238940	22/12/2012 *	425,000,000.00	DENA BANK	CORPORATE BUSINESS BRANCH, 238B, AJC BOSE ROAD, KOLKATA, WEST BENGAL - 700020, INDIA	B65184350
7	10087480	23/02/2015 *	2,323,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA	C47085121

* Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Furniture and fixtures
• Plant and equipment
• 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.62.59
UK Pound	1	Rs.92.46
Euro	1	Rs.67.51

INFORMATION DETAILS

Information Gathered by :	KAM
Analysis Done by :	DIV
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	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	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.