MIRA INFORM REPORT

Report No. :	337430
Report Date :	21.08.2015

IDENTIFICATION DETAILS

Name :	VBC INDUSTRIES LIMITED
Registered Office :	6-2-913/914, 3rd Floor, Progressive Towers, Khairatabad, Hyderabad - 500 004, Telangana
Tel. No.:	91-40-23320904
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	03.09.1971
Com. Reg. No.:	01-001437
Capital Investment / Paid-up Capital :	Rs.451.835 Million
CIN No.: [Company Identification No.]	L28113TG1971PLC001437
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Divulged
PAN No.: [Permanent Account No.]	Not Divulged
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Ferro alloys.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behavior :	Slow and delayed
Litigation :	Exist
Comments :	Subject is a well-established company having moderate track. Management failed to operate its manufacturing plant for most of the year on account of non-supply of power by Central Power Distribution Company of AP Limited for non-payment of load shortfall charges. Moreover, the company has officially informed Bombay Stock Exchange that they started their manufacturing activities from November 10, 2014. According to 2015 financials, the company weak financial position due to the loss incurred from its operations and has negative reserves level indicating weak balance sheet profile of the company. Further, as per information available from indirect source i.e. CRISIL the company’s account had been classified as a non – performing asset by its banker as of August 2014. However, Business is active. Payment terms are reported as slow and delayed. In view of the weak financial as well as business issues, the company can be considered for business dealings on a safe and secured 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	CRISIL
Rating	Long Term Rating = D
Rating Explanation	Lowest credit quality very low prospects of recovery.
Date	August 22, 2014

Rating Agency Name	CRISIL
Rating	Short Term Rating = D
Rating Explanation	Instruments with this rating are in default or expected to be in default on maturity.
Date	August 22, 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 31-03-2013.

INFORMATION DENIED

MANAGEMENT NON – CO – OPERATIVE (91-40-23328653)

LOCATIONS

Registered Office / Address for Correspondence :	6-2-913/914, 3rd Floor, Progressive Towers, Khairatabad, Hyderabad - 500004, Telangana, India
Tel. No.:	91-40-23320904/08/23301230/23328653
Fax No.:	91-40-23321217/23390721
E-Mail :	sarma_19592004@gmail.com info@vccilindia.com
Factory :	Dinnedevarapadu Village, NH-7, Kurnool-518 002, Andhra Pradesh, India
Tel. No.:	91-8518-237845
Fax No.:	91-8518-237848

DIRECTORS

AS ON 30.09.2013

Name :	Rukmini Krishnaji Rao Gonela
Designation :	Director
Address :	Plot No.7, Ocean View Extension, Pandurangapuram, Visakhapatnam - 530003, Andhra Pradesh, India
Date of Appointment :	31.03.1992
DIN No.:	00041618
Name :	Lakshman Rao Sri Mathukumilli
Designation :	Director
Address :	Plot No. 283, Road No.10, M.L.A &.M.P's, Vijaya House Building Co-Operative Society, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India
Date of Appointment :	03.05.2008
DIN No.:	00086976
Name :	Vuppala Sreenivas Rao
Designation :	Director
Address :	Flat No. 302, White House, 8-2-674/2/2a, Road No. 13, Banjara Hills,, Hyderabad - 500034, Andhra Pradesh, India
Qualification :	Graduate
Experience :	36 Years
Date of Appointment :	29.09.2008
DIN No.:	00046917
Name :	Sarma Jk
Designation :	Director
Address :	76, Shiva Bagh, Ameerpet,, Hyderabad - 500016, Andhra Pradesh, India
Date of Appointment :	16.09.2009
DIN No.:	00040554
Name :	Mocherla Venkata Ananthakrishna
Designation :	Director
Address :	16 South Mada Street, Srinagar Colony, Chennai - 600015, Tamil Nadu, India
Date of Appointment :	15.07.2010
DIN No.:	00897536
Name :	Kinnera Murthy Bhagavatula
Designation :	Additional Director
Address :	202, TVK Residency, 9 - Journalists Colony, Road No:3 Banjara Hills, Hyderabad - 500033, Andhra Pradesh, India
Date of Appointment :	31.03.2015
DIN No.:	01878144

KEY EXECUTIVES

Name :	Mr. D.S. Sarma
Designation :	Secretary/GM (Corporate Affairs) and CS/Compliance Officer
Audit Committee:
Name :	Mr. Rk.R Gonela, Ias. (Retd).
Designation :	Chairman (Non-Executive)
Name :	Mr. J. Kameswara Sarma
Designation :	Member
Name :	Mr. V.S. Rao
Designation :	Member
Investor’s Grievance and Share Transfer Committee:
Name :	Mr. M.V.V.S. Murthi
Designation :	Chairman (Non-Executive)
Name :	Mr. M.S. Lakshman Rao
Designation :	Member
Name :	Mr. J. Kameswara Sarma
Designation :	Member
Remuneration Committee:
Name :	Mr. R.K.R Gone La, Ias. (Retd).
Designation :	Chairman (Non-Executive)
Name :	Mr. V.S. Rao
Designation :	Non-Executive Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2015

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5054241	11.22
Bodies Corporate	20708563	45.97
Sub Total	25762804	57.19
(2) Foreign
Bodies Corporate	6100000	13.54
Sub Total	6100000	13.54
Total shareholding of Promoter and Promoter Group (A)	31862804	70.74
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	983810	2.18
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	8479758	18.83
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	3655058	8.11
Any Others (Specify)	62379	0.14
Clearing Members	37092	0.08
Non Resident Indians	25287	0.06
Sub Total	13181005	29.26
Total Public shareholding (B)	13181005	29.26
Total (A)+(B)	45043809	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	45043809	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Ferro alloys.
Products :	Ferro alloys
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Information declined by the management.

Bankers :

Bank Name	Not Available
Branch	Not Available
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

Auditors :
Name :	Brahmayya and Company Chartered Accountants
Memberships :	-----
Collaborators :	-----
Associates (AS ON 31.03.2013) :	· Konaseema Gas Power Limited · VBC Ferro Alloys Limited · Orissa power Consortium Limited.
Companies/Firms/Other Concerns In Which Key Managerial Personnel Or His Relatives Holds Substantial Interest (AS ON 31.03.2013) :	· VBC Exports Limited · Techno Infratech Projects (India) Private Limited · BASIL Infrastructure projects Limited · Indo-Us Coal Washeries Limited

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorized Capital: Not Available

Issued, Subscribed & Paid-up Capital: Rs. 451.835 Million

FINANCIAL DATA

[All figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	451.835	451.835	451.835
(b) Reserves & Surplus	(91.637)	385.773	523.774
(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)	360.198	837.608	975.609
(3) Non-Current Liabilities
(a) long-term borrowings	1206.384	864.025	143.160
(b) Deferred tax liabilities (Net)	0.000	0.000	2.129
(c) Other long term liabilities	0.996	0.996	1.148
(d) long-term provisions	3.122	2.815	3.233
Total Non-current Liabilities (3)	1210.502	867.836	149.670
(4) Current Liabilities
(a) Short term borrowings	111.315	262.583	248.075
(b) Trade payables	298.033	296.642	180.969
(c) Other current liabilities	210.558	70.484	66.797
(d) Short-term provisions	1.013	15.452	11.868
Total Current Liabilities (4)	620.919	645.161	507.709
TOTAL	2191.619	2350.605	1632.988
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	404.568	642.597	474.696
(ii) Intangible Assets	0.000	0.000	200.341
(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	1438.565	1438.565	705.903
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	45.280	70.173	70.140
(e) Other Non-current assets	23.674	17.412	0.000
Total Non-Current Assets	1912.087	2168.747	1451.080
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	178.744	152.723	155.072
(c) Trade receivables	11.791	0.901	1.022
(d) Cash and cash equivalents	6.631	6.580	6.336
(e) Short-term loans and advances	20.300	1.805	2.196
(f) Other current assets	62.066	19.849	17.282
Total Current Assets	279.532	181.858	181.908
TOTAL	2191.619	2350.605	1632.988

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	153.979	9.007	14.120
		Other Income	4.016	2.593	6.403
		TOTAL	157.995	11.600	20.523
Less	EXPENSES
		Cost of Materials Consumed	64.798	0.000	5.575
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(35.364)	2.350	(2.333)
		Employees benefits expense	22.008	18.740	25.646
		Power and Fuel	113.196	0.000	9.004
		Other expenses	18.978	7.104	15.963
		TOTAL	183.616	28.194	53.855
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(25.621)	(16.594)	(33.332)
Less	FINANCIAL EXPENSES		220.014	106.575	47.903
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION		(245.635)	(123.169)	(81.235)
Less/ Add	DEPRECIATION/ AMORTISATION		27.687	17.826	14.857
	PROFIT/LOSS BEFORE TAX		(273.322)	(140.995)	(96.092)
Less	TAX		(6.261)	(19.541)	(4.250)
	PROFIT/LOSS AFTER TAX		(267.061)	(121.454)	(91.842)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	107.120	199.258
	BALANCE CARRIED TO THE B/S		NA	(14.334)	107.120
	Earnings Per Share (Rs.)		(5.93)	(2.70)	(2.04)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	NA	16.196
Cash used in Operations	NA	NA	(1.573)
Net cash flow from operating activities	NA	NA	(1.633)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	(173.44)	(1348.44)	(650.44)
Operating Profit Margin (PBIDT/Sales)	(%)	(16.64)	(184.23)	(236.06)
Return on Total Assets (PBT/Total Assets}	(%)	(36.30)	(15.46)	(10.36)
Return on Investment (ROI) (PBT/Networth)		(0.76)	(0.17)	(0.10)
Debt Equity Ratio (Total Debt /Networth)		3.66	1.35	0.40
Current Ratio (Current Asset/Current Liability)		0.45	0.28	0.36

STOCK PRICES

Face Value

Rs. (Trading Suspended)

FINANCIAL ANALYSIS

[All figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	451.835	451.835	451.835
Reserves & Surplus	523.774	385.773	(91.637)
Share Application money pending allotment	0.000	0.000	0.000
Net worth	975.609	837.608	360.198
long-term borrowings	143.160	864.025	1206.384
Short term borrowings	248.075	262.583	111.315
Total borrowings	391.235	1126.608	1317.699
Debt/Equity ratio	0.401	1.345	3.658

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	14.120	9.007	153.979
		(36.211)	1,609.548

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	14.120	9.007	153.979
Profit/Loss	(91.842)	(121.454)	(267.061)
	(650.44%)	(1348.44%)	(173.44%)

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	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	No
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)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
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	No
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	Yes
33	Market information	---
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS:

LITIGATION DETAILS
CP 60 / 2015 CPSR 1554 / 2015 CASE IS : PENDING
Petitioner:-	B. SRINIVASA REDDY, HYD AND 4 OTHERS	Respondent:-	VS VBC INDUSTRIES LIMITED, HYDERABAD
Petn.Adv:-	VELU	Resp. Adv.:	CHANDRASEKHAR
Subject:-	COMPANY PETITION District: HYDERABAD
Filing Date	03.03.2015	Posing Stage	FRO ADMISSION AND HEARING
Reg. Date:	25.03.2015	Listing Date:	31.08.2015
		Status: NOTICES
HON’BLE JUDGE (S)	C.V. NAGARJUNA REDDY

UNAUDITED FINANCIAL RESULTS

FOR THE QUARTER ENDED 30.06.2015

Particulars	Quarter Ended 30.06.2015
	Unaudited
Income from Operations
(a) Net sates/income from operations (Net of excise duty)	35.539
(b) Other Operating Income	0.577
Total income from operations (net)	36.116
Expenses
(a) Cost of materials consumed	8.240
(b) Purchases of stock-in trade	0.000
(c) Changes in inventories of finished goods. work-in-progress and stock in trade	21.475
(d) Employee benefits expense	6.100
(e) Depreciation and Amortization Expenses	6.288
(f) Other Expenses (Gross)	3.843
Less. Adj. In respect of excise duty on op.stock of finished goods	2.365
Other Expenses (Net)	1.478
(g) Power and Fuel	17.970
(h) Value of Wind Power	0.000
Total expenses	61.551
Profit/ (Loss) from operations before other Income, finance costs and exceptional Items	(25.435)
Other Income	0.278
Profit/ (Loss) from operations before other income, finance costs and exceptional items	(25.157)
Finance Costs	39.814
Profit/ (Loss) from ordinary activities after finance cost but before exceptional items	(64.971)
Exceptional items
(remission of interest allowed by arc in respect of borrowing assigned to it by banker	(69.099)
Profit/ (Loss) from ordinary activities before tax	4.128
Tax expenses	---
Net Profit / (Loss) from ordinary activities after tax	4.128
Extraordinary item (net of tax expense)	---
Net Profit / (Loss) for the period	4.128
Paid up equity share capital (Face Value of Rs 10/-each)	451.835
Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year
Earnings per share (before extraordinary items) of Rs.10/- each (not annualized):
(a) Basic
(b) Diluted	0.09
PARTICULARS OF SHAREHOLDING
A. Public Shareholding
- Number of shares	13181005
- Percentage of shareholding	29.26
Promoters and Promoter group shareholding
a) Pledged / Encumbered
- Number of shares	Nil
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	NA
- Percentage of shares (as a % of the total Share Capital of the Company)	NA
b) Non Encumbered
- Number of shares	31862804
- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)	100
- Percentage of shares (as a % of the total Share Capital of the Company)	70.74

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80043865	28/06/2014 *	205,000,000.00	PHOENIX ARC PRIVATE LIMITED	DANI CORPORATE PARK, 7TH FLOOR,, 158 CST ROAD, KA  LINA, SANTACRUZ (E), MUMBAI - 400098,MAHARASHTRA,  INDIA	C32262636

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Plant & Equipment

· Furniture & Fixtures

· Office equipment

· 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 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. 65.24
UK Pound	1	Rs. 102.21
Euro	1	Rs. 72.57

INFORMATION DETAILS

Information Gathered by :	SPR
Analysis Done by :	HNA
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILITY	1~10	-
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	--
--CREDIT LINES	1~10	1
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		12

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 unfavorable 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.