MIRA INFORM REPORT

Report No. :	337468
Report Date :	20.08.2015

IDENTIFICATION DETAILS

Name :	JSW STEEL (SALAV) LIMITED
Registered Office :	Welspun City, Village Versamedi, Taluka Anjar, Kutch Anjar – 370110, Gujarat
Tel. No.:	91-2144-260110 - 119
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	27.06.2008
Com. Reg. No.:	04-0641145
Capital Investment / Paid-up Capital :	Rs.9143.164 Million
CIN No.: [Company Identification No.]	U27100GJ2008PLC064145
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCV7689R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trader of Sponge iron.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a part of “JSW Group”, on August 18, 2014, JSW Steel Limited entered into a share purchase agreement with Welspun Enterprises Limited (WEL) to acquire the entire equity shares of Welspun Maxsteel Limited. Subsequent to acquisition, name of the company was changed to JSW Steel Salav Limited. It is established company having a satisfactory track record. JSW Steel Salav Limited posted total income of Rs.7860.000 Million and net loss of Rs.3040.000 Million in FY 2014 (refers to the period April 1, 2013 to March 31, 2014). From operational losses company has reported negative reserves due to which capital structure of the company has decline. The company has recorded huge external borrowings characterized by elevated leverage, with Debt to Equity of 2.81 times. Although the rating take consideration on based of credit enhancement in the form of letter of comfort provided by the parent company, JSWSL to the lenders of JSW Steel (Salav) Limited to facilitate servicing of its debt obligations in a timely manner. However, trade relations are fair. Business is active. Payment terms are reported to be slow by correct. In view of strong financial and managerial support from JSW group, the company can be considered normal for business dealings with its 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	CARE
Rating	Long term bank facilities = AA- (Structured obligation)
Rating Explanation	High degree of safety regarding timely servicing of financial obligation and low credit risk
Date	February 18, 2015

Rating Agency Name	CARE
Rating	Short term bank facilities = A1+ (Structured obligation)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	February 18, 2015

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Satish Kunango
Designation :	Account Manager
Contact No.:	91-8805011377
Date :	19.08.2015

LOCATIONS

Registered Office :	Welspun City, Village Versamedi, Taluka Anjar, Kutch Anjar – 370110, Gujarat, India
Tel. No.:	91-2144-260110 - 119
Mobile No.:	91-8805011377 (Mr. Satish Kunango)
Fax No.:	Not Available
E-Mail :	Lancy.varghese@jsw.in satish.kanungo@jsw.in
Website :	www.jsw.in
Corporate Office :	JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra, India

DIRECTORS

As on 25.09.2014

Name :

Mr. Jugal Kishore Tandon

Designation :

Additional Director

Address :

B-201 Mon Repos 45, H K Bhabua Road Lands’ End, Bandra (W), Mumbai, 400050, Maharashtra, India

Date of Appointment :

31.03.2015

DIN No.:

01282681

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	L27310MH1991PLC175263	SOUTHERN IRON AND STEEL COMPANY LIMITED	Director	19/07/2007	27/03/2007	-	Amalgamated	NO
2	U13100TZ2005PLC011939	TAMILNADU IRON ORE MINING CORPORATION LIMITED	Director	22/09/2007	27/03/2007	-	Active	NO
3	U27106MH2007PLC170160	JSW Bengal Steel Limited	Director	20/09/2014	20/04/2007	-	Active	NO
4	U26957MH2006PLC160839	JSW CEMENT LIMITED	Director	13/08/2007	06/06/2007	26/12/2012	Active	NO
5	U27310MH2007PLC171405	JSW JHARKHAND STEEL LIMITED	Additional director	26/03/2015	07/06/2007	-	Active	NO
6	U74999MH2006PLC163924	JSW PROJECTS LIMITED	Director	22/11/2007	22/11/2007	21/02/2009	Active	NO
7	U45200MH2008PLC180608	JSW BUILDING SYSTEMS LIMITED	Director	28/03/2008	28/03/2008	23/04/2012	Amalgamated	NO
8	U13100KA1997PTC022398	VIJAYANAGAR MINERALS PRIVATE LIMITED	Director	23/05/2009	26/09/2008	23/09/2013	Active	NO
9	U85110KA1995PTC018868	JSW Praxair Oxygen Private Limited	Nominee director	30/09/2008	29/09/2008	09/03/2010	Active	NO
10	L74999MH1994PLC077041	JSW ENERGY LIMITED	Director	02/06/2009	23/10/2008	01/06/2010	Active	NO
11	U74900MH2010PLC202725	JSW TECHNO PROJECTS MANAGEMENT LIMITED	Director	31/10/2011	30/06/2011	20/02/2014	Active	NO
12	U27106MH1985PLC169768	MITTAL CORP LIMITED	Director	28/09/2012	03/09/2012	20/02/2014	Active	NO
13	U01010MH2003PLC176595	JSW STEEL PROCESSING CENTRES LIMITED	Additional director	26/03/2015	26/03/2015	-	Active	NO
14	U27100MH1985PLC037346	JSW STEEL COATED PRODUCTS LIMITED	Additional director	26/03/2015	26/03/2015	-	Active	NO
15	U23100MH1997PLC110901	AMBA RIVER COKE LIMITED	Additional director	31/03/2015	31/03/2015	-	Active	NO
16	U27100GJ2008PLC064145	JSW Steel (Salav) Limited	Additional director	31/03/2015	31/03/2015	-	Active	NO

Name :

Mr. Pradeep Bhargava

Designation :

Additional Director

Address :

House No. B-1402, Floor - 14, Building Simaran, Residency, Plot No. - 21, Sector - 7, Kharghar, Navi Mumbai, 410210, Maharashtra, India

Date of Appointment :

31.03.2015

DIN No.:

03628767

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	U23201MH1997PLC110834	ISPAT ENERGY LIMITED	Director	25/09/2012	01/10/2011	-	Active	NO
2	U23100MH1997PLC110901	AMBA RIVER COKE LIMITED	Nominee director	18/09/2012	04/10/2011	-	Active	NO
3	U27100GJ2008PLC064145	JSW Steel (Salav) Limited	Additional director	31/03/2015	31/10/2014	-	Active	NO

Name :

Mr. Bhushan Lal Dewangan

Designation :

Whole-Time Director

Address :

B 1301, La Vista, 13th Floor, Plot No 256 and 257, Sector 10, Kharghar, Navi Mumbai, 410210, Maharashtra, INDIA

Date of Appointment :

01.03.2015

DIN No.:

07011510

Name :

Saswati Goswami

Designation :

B-710, Sicily Park, Sector-12b, Plot No.54, Koparkhairane, Navi Mumbai, 400709, Maharashtra, India

Address :

Additional Director

Date of Appointment :

31.03.2015

DIN No.:

07144843

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	U51900MH2014PTC257483	DOLVI MINERALS AND METALS PRIVATE LIMITED	Additional director	31/03/2015	31/03/2015	-	Active	NO
2	U27100GJ2008PLC064145	JSW Steel (Salav) Limited	Additional director	31/03/2015	31/03/2015	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Satish Kunango
Designation :	Accounts Manager
Name :	Mohan Narayan Budgude
Designation :	Chief Financial Officer
Address :	H No 16, Flat No 2800, Rutugandha HSC Society Maharashtra HSC Board, Yerwada, Pune - 411006, Maharashtra, INDIA
Date of Appointment :	01.03.2015
PAN No.:	AAZPB5383J
Name :	Mr. Boopalan Periyasamy
Designation :	Company Secretary
Address :	282, 'Mathi Nivas', D3, Exservicemen Colony, Salem - 636004, Tamilnadu, India
Date of Appointment :	31.03.2015
PAN No.:	AANPB3215D

MAJOR SHAREHOLDERS

As on 25.09.2014

Names of Equity Shareholders	No. of Shares
Welspun Enterprises Limited, India	672426576
Welspun Corp Limited, India	236749881
Grasim Industries Limited, India	1391600
Dwarka Dass Rathi	1400
Sanjeev Bafna	1400
Pavan Kumar Jain	1400
Ashok Malu	1400
Hemant Kadel	1400
Ravindra Kastia	1400
Devendra Patil	1
Shashikant Thorat	1
Pradeep Joshi	1
Ravindra More	1
Rashmi Mamtura	1
Saji Padmanabhan	1
Rajendra Sawant	1
Total	910576464

Names of Preference Shareholders	No. of Shares
Welspun Enterprises Limited, India	3740000
Total	3740000

As on 25.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Sponge iron.

Products :

Product Description	Item Code No. (ITC Code)
Sponge Iron	72031000

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Sponge Iron

Countries :

• Malaysia
• China

Imports :

Not Available

Terms :

Selling :

Cheque and Credit (30 Days)

Purchasing :

Cheque and Credit (30 Days)

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
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Retailers and End Users

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

No. of Employees :

200 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	BKC Branch, Mumbai, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loans from banks	10192.439	9507.979
SHORT TERM BORROWING
Working Capital loans from banks	237.924	42.279
Total	10430.363	9550.250

Financial Institute	IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, MUMBAI – 400001, Maharashtra, India
Auditors :
Name :	MGB and Company Chartered Accountants
Address :	Peninsula Business Park, Tower B, 19^th Floor, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, India
PAN No.:	AAAFM5742R
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Welspun Enterprises Limited, India
Subsidiary company :	Welspun Agro Ventures Private Limited, India
Other Related Parties :	Welspun Logistics Limited, India Welspun Steel Limited, India

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
1200000000	Equity Shares	Rs.10/- each	Rs.12000.000 Million
300000000	Preference Shares	Rs.10/- each	Rs.3000.000 Million
	Total		Rs.15000.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
910576464	Equity Shares	Rs.10/- each	Rs.9105.764 Million
3740000	Preference Shares	Rs.10/- each	Rs.37.400 Million
	Total		Rs.9143.164 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	9143.164	1338.224	1300.824
(b) Reserves & Surplus	(5155.673)	5694.801	1137.262
(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)	3987.491	7033.025	2438.086
(3) Non-Current Liabilities
(a) long-term borrowings	10972.235	10101.777	7125.536
(b) Deferred tax liabilities (Net)	0.000	0.000	301.865
(c) Other long term liabilities	0.000	0.050	0.050
(d) long-term provisions	25.977	34.563	34.603
Total Non-current Liabilities (3)	10998.212	10136.390	7462.054
(4) Current Liabilities
(a) Short term borrowings	237.924	42.279	2302.458
(b) Trade payables	2498.817	2534.313	2543.328
(c) Other current liabilities	496.762	187.894	426.045
(d) Short-term provisions	65.642	36.230	33.760
Total Current Liabilities (4)	3299.145	2800.716	5305.591
TOTAL	18284.848	19970.131	15205.731
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13985.360	14705.644	6392.670
(ii) Intangible Assets	0.476	3.816	7.156
(iii) Capital work-in-progress	85.213	79.989	2093.245
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	30.006	29.906	29.906
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	591.130	1975.980	2021.030
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	14692.185	16795.335	10544.007
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2075.198	2396.369	2368.616
(c) Trade receivables	1035.918	382.961	1472.360
(d) Cash and cash equivalents	5.665	287.017	511.253
(e) Short-term loans and advances	464.115	107.447	287.964
(f) Other current assets	11.767	1.002	21.531
Total Current Assets	3592.663	3174.796	4661.724
TOTAL	18284.848	19970.131	15205.731

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	7725.897	8948.369	7212.37
	Other Income	136.065	263.361	318.049
	TOTAL	7861.962	9211.730	7530.419
Less	EXPENSES
	Cost of Materials Consumed	5936.941	8649.403	6362.932
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	259.075	(215.907)	332.966
	Employees benefits expense	283.167	346.990	149.057
	Exceptional Items	1522.750	493.992	0.000
	Other expenses	848.742	1048.934	849.812
	TOTAL	8850.675	10323.412	7694.767
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(988.713)	(1111.682)	(164.348)
Less	FINANCIAL EXPENSES	1320.518	829.841	357.098
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(2309.231)	(1941.523)	(521.446)
Less/ Add	DEPRECIATION/ AMORTISATION	736.302	366.918	180.981
	PROFIT/ (LOSS) BEFORE TAX	(3045.533)	(2308.441)	(702.427)
Less	TAX	0.000	(301.865)	1.665
	PROFIT/ (LOSS) AFTER TAX	(3045.533)	(2006.576)	(704.092)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(2328.957)	(322.381)	381.711
	Balance Carried to the B/S	(5374.490)	(2328.957)	(322.381)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	685.415	935.497	755.775
	TOTAL EARNINGS	685.415	935.497	755.775
	IMPORTS
	Raw Materials	1010.929	2715.355	NA
	Components and Stores parts	11.223	7.879	NA
	TOTAL IMPORTS	1022.152	2723.234	NA
	Earnings / (Loss) Per Share (Rs.)	(3.34)	(2.20)	(0.77)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	283.640	0.000	125.100
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	(295.926)	258.948	(393.596)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(39.42)	(22.42)	(9.76)
Operating Profit Margin (PBDIT / Sales)	(%)	(12.80)	(12.42)	(2.28)
Return on Total Assets (PBT/Total Assets}	(%)	(16.76)	(11.62)	(5.37)
Return on Investment (ROI) (PBT/Networth)		(0.76)	(0.33)	(0.29)
Debt Equity Ratio (Total Debt/Networth)		2.88	1.44	3.92
Current Ratio (Current Asset/Current Liability)		1.09	1.13	0.88

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	1300.824	1338.224	9143.164
Reserves & Surplus	1137.262	5694.801	(5155.673)
Net worth	2438.086	7033.025	3987.491
long-term borrowings	7125.536	10101.777	10972.235
Short term borrowings	2302.458	42.279	237.924
Current Maturities of Long Term Debt	125.100	0.000	283.640
Total borrowings	9553.094	10144.056	11493.799
Debt/Equity ratio	3.918	1.442	2.882

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	7212.370	8948.369	7725.897
		24.070	(13.661)

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	7212.370	8948.369	7725.897
Profit	(704.092)	(2006.576)	(3045.533)
	(9.76%)	(22.42%)	(39.42%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----------------------
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	----------------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	----------------------
33	Market information	----------------------
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

BUSINESS OUTLOOK

In FY2015 with the formation of new Government at the center and expected overall improvement in economy may improve the demand and market scenario of steel industry. Also new Government may suitably address the gas allocation / pricing policy. The Company looks forward to have better availability of long term gas during FY2015 thereby reduce the cost of production and hence, the Company may be better placed in the competitive market, and the overall performance of the Company is expected to improve.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Fully convertible debentures	135.882	0.000
Deferred payment liabilities	643.914	593.798
Total	779.796	593.798

INDEX OF CHARGES

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10570381	21/05/2015 *	3,400,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, Maker Tower 'E', Cuffe Parade, Mumbai - 400005, Maharashtra, INDIA	C54294483
2	10570727	21/05/2015	10,000,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, Maker Tower 'E', Cuffe Parade, Mumbai – 400005, Maharashtra, INDIA	C54295795

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Factory building
• Plant and equipment
• Other plant and equipment
• Furniture and fixtures
• Vehicles
• Motor vehicles

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.65.25
UK Pound	1	Rs.102.25
Euro	1	Rs.72.19

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KYP
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	---
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	---
--CREDIT LINES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.