MIRA INFORM REPORT

Report No. :	305639
Report Date :	02.02.2015

IDENTIFICATION DETAILS

Name :	JAI RAJ ISPAT LIMITED
Registered Office :	11 B, Jitendra Mohan Avenue, Kolkata – 700006, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	04.12.1984
Com. Reg. No.:	21-038241
Capital Investment / Paid-up Capital :	Rs.10.005 Millions
CIN No.: [Company Identification No.]	U27109WB1984PLC038241
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACJ6859P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Iron and Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1400000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There is a dip in the financial performance of the company. Profitability of the company is acceptable. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	CRISIL
Rating	Long Term Rating = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	24.02.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating = A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	24.02.2014

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.

LOCATIONS

Registered Office :	11 B, Jitendra Mohan Avenue, Kolkata – 700006, West Bengal, India
Tel. No.:	91-33-25338849
Fax No.:	Not Available
E-Mail :	admin.jdm@jairajispat.com
Website :	http://www.jairajispat.com
Factory :	Plot No. 8, Phase III, IDA, Jeedimetla, Hyderabad – 500055, Telangana, India
Tel. No.:	91-40-23095005
Fax No.:	91-40-23095006

DIRECTORS

As on 30.09.2014

Name :

Mr. Sajjan Kumar Goenka

Designation :

Managing Director

Address :

8-2-583.B, Road No.8, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India

Date of Birth/Age :

01.07.1952

Date of Appointment :

04.12.1984

PAN No.:

AECPG2884E

DIN No.:

00253145

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	U27109WB1984PLC038241	JAI RAJ ISPAT LTD	Managing director	01/04/2014	04/12/1984	-	Active	NO
2	U70101WB2005PTC106480	M M ENCLAVE PRIVATE LIMITED	Director	05/12/2005	05/12/2005	-	Active	NO
3	U45209WB2005PTC106513	JR HOMES PRIVATE LIMITED	Director	06/12/2005	06/12/2005	-	Active	NO
4	U45208WB2005PTC106514	JG NIRMAN PRIVATE LIMITED	Director	06/12/2005	06/12/2005	-	Active	NO
5	U28112TN2006PTC059316	G B R METALS PRIVATE LIMITED	Additional director	02/06/2006	02/06/2006	15/07/2007	Active	NO
6	U70102WB2005PTC105285	JAI RAJ INFRA SERVICES PRIVATE LIMITED	Director	18/03/2010	18/03/2010	-	Active	NO
7	U45209WB2005PTC106510	NIRMALA GOENKA ESTATES PRIVATE LIMITED	Director	13/09/2013	13/09/2013	-	Active	NO
8	U99999WB2005PTC106512	AJ ENCLAVE PRIVATE LIMITED	Director	30/09/2014	01/04/2014	-	Active	NO
9	U45208WB2005PTC106511	S G NIRMAN PRIVATE LIMITED	Director	30/09/2014	01/04/2014	-	Active	NO

Name :

Mrs. Rajshree Jain

Designation :

Director

Address :

8-2-674/6-10, Road No 12, Flat No A301,A401, Banjara Hills, Hyderabad - 500034, Telangana, India

Date of Birth/Age :

23.10.1982

Date of Appointment :

30.04.2006

PAN No.:

AFVPG4101Q

DIN No.:

00253115

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	U70101WB2005PTC106481	R G HOMES PRIVATE LIMITED	Director	05/12/2005	05/12/2005	-	Active	NO
2	U45208WB2005PTC106511	S G NIRMAN PRIVATE LIMITED	Director	06/12/2005	06/12/2005	-	Active	NO
3	U70101WB2005PTC106562	JG PROJECTS PRIVATE LIMITED	Director	08/12/2005	08/12/2005	-	Active	NO
4	U27109WB1984PLC038241	JAI RAJ ISPAT LIMITED	Director	23/03/2014	30/04/2006	-	Active	NO
5	U74999WB2011PTC164532	UnBlock India Private Limited	Director	05/07/2011	05/07/2011	-	Active	NO
6	U20232WB1972PTC028425	SREE RAM PLYWOOD MFG CO PRIVATE LIMITED	Director	29/09/2014	15/01/2014	-	Active	NO
7	U70102WB2005PTC105285	JAI RAJ INFRA SERVICES PRIVATE LIMITED	Director	22/01/2014	22/01/2014	-	Active	NO
8	U45209WB2005PTC106510	NIRMALA GOENKA ESTATES PRIVATE LIMITED	Director	22/01/2014	22/01/2014	-	Active	NO
9	U45208WB2005PTC106514	JG NIRMAN PRIVATE LIMITED	Director	22/01/2014	22/01/2014	-	Active	NO
10	U70101WB2005PTC106480	M M ENCLAVE PRIVATE LIMITED	Director	22/01/2014	22/01/2014	-	Active	NO

Name :

Mr. Ayush Poddar

Designation :

Director

Address :

33, Madan Mohan Talla Street, Kolkata - 700005, West Bengal, India

Date of Birth/Age :

21.08.1981

Date of Appointment :

15.05.2009

DIN No.:

00504411

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	U17299WB2003PTC097163	MAHA LAKSHMI YARNS PRIVATE LIMITED	Director	23/10/2003	23/10/2003	-	Active	NO
2	U27109WB1984PLC038241	JAI RAJ ISPAT LIMITED	Director	30/09/2009	15/05/2009	-	Active	NO

Name :

Mr. Krishan Kumar Bhageria

Designation :

Director

Address :

12, Gandhi Square, Malka Ganj, Delhi - 110007, India

Date of Birth/Age :

15.01.1938

Date of Appointment :

29.04.2014

DIN No.:

01167358

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	U74899DL1989PTC037336	SIMPLEX EXPORTS PRIVATE LIMITED	Director	16/11/1992	16/11/1992	10/12/2014	Active	NO
2	U21000DL1995PLC069683	VALLEY FIBRES AND TISSUES LIMITED	Director	12/06/1995	12/06/1995	-	Active	NO
3	U24231DL2006PTC145924	ATLANTIC RESEARCH LAB PRIVATE LIMITED	Director	06/02/2006	06/02/2006	-	Active	NO
4	U24231DL2006PLC146929	KENTZ HEALTHCARE LIMITED	Director	28/02/2006	28/02/2006	-	Active	NO
5	U27109WB1984PLC038241	JAI RAJ ISPAT LIMITED	Director	30/09/2014	29/04/2014	-	Active	NO

Name :

Mr. Venkateswarlu Nemali

Designation :

Whole-Time Director

Address :

Flat 201, Surya Enclave, Plot 118, Kalyan Nagar, Hyderabad - 500038, Andhra Pradesh, India

Date of Birth/Age :

17.06.1945

Date of Appointment :

25.08.1998

PAN No.:

AAHPN7207K

DIN No.:

01499562

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	U27109WB1984PLC038241	JAI RAJ ISPAT LIMITED	Whole-time director	01/04/2008	25/08/1998	-	Active	NO

Name :

Mr. Sampathkumar Rangachary

Designation :

Director

Address :

No 8, T Thimmaiah Road, R K Layout, 2nd Stage, Padmanabhanagar, Bangalore - 560070, Karnataka, India

Date of Birth/Age :

06.10.1947

Date of Appointment :

14.07.2014

DIN No.:

06894180

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	U27109WB1984PLC038241	JAI RAJ ISPAT LIMITED	Director	30/09/2014	14/07/2014	-	Active	NO
2	L27101PN1991PLC063223	KIRLOSKAR FERROUS INDUSTRIES LIMITED	Director	13/08/2014	16/07/2014	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
Sajjan Kumar Goenka	300275
Sree Ram Plywood Mfg. Co. Private Limited, India	197375
Raj Shree Goenka	100350
Jai Shree Goenka	195825
J G Projects Private Limited, India	89125
NDG Estates Private Limited, India	90200
M M Enclave Private Limited, India	27350
Total	1000500

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	40.38
Directors or relatives of Directors	59.62
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron and Steel.

Products :

Product Description	Item Code No. (ITC Code)
Basic Iron and Steel Manufacturing	99886010

Brand Names :

“JAI RAJ”

Agencies Held :

--

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

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
Experience :	Not Available
Maximum Limit Dealt :	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
Experience :	Not Available
Maximum Limit Dealt :	Not Available
Remark :	Not Available

No. of Employees :

Not Available

Bankers :

State Bank of India, Mid Corporate Loan Admn. Unit (Mclau), 3-6-281/A/1, First Floor, Hyderguda Main Road, Hyderabad - 500029, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Term Loan
From State Bank of India	0.000	70.000
Hire Purchase Loans
From a Bank	2.821	4.015
Others	1.002	0.623
SHORT TERM BORROWINGS
Working capital loans from banks	184.616	111.161
Total	188.439	185.799

Notes:

Term Loan, repaid during the year was secured by hypothecation of all fixed assets of the company including equitable mortgage of company's land and building at IDA Jeedimetla, Phase III, Ranga Reddy District, Hyderabad and Belagallu Village, Bellary District, Karnataka and personal guarantee of two directors of the company. However the loan was repayable in 20 equal Quarterly Instalments starting from June,2010 and last instalment due in March, 2015. Interest was payable monthly @13.35%.

Hire Purchase Loans for purchase of vehicles are secured against the vehicles purchased out of those loans. The loans are repayable in equated monthly instalments, by October 2017.

Auditors :
Name :	R C Jhawer and Company Chartered Accountants
Address :	7 A Bentinck Street, 2^nd Floor, Kolkata – 700001, West Bengal, India
PAN No.:	ACOPJ2261N
Memberships :	--
Collaborators :	--
Enterprises over which KMP and their relatives have significant influence (Associates) :	Sree Ram Plywood Manufacturing Company Private Limited A J Enclave Private Limited CIN No.: U99999WB2005PTC106512 J G Projects Private Limited Nirmala Goenka Estates Private Limited M M Enclave Private Limited Jai Raj Infra Services Private Limited CIN No.: U70102WB2005PTC105285 Sajjan Kumar Goenka (HUF)

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000500	Equity Shares	Rs.10/- each	Rs.10.005 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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	10.005	10.005	10.005
(b) Reserves & Surplus	471.284	436.389	387.654
(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)	481.289	446.394	397.659
(3) Non-Current Liabilities
(a) long-term borrowings	93.948	194.002	267.754
(b) Deferred tax liabilities (Net)	49.098	44.754	51.089
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	8.203	7.183	6.025
Total Non-current Liabilities (3)	151.249	245.939	324.868
(4) Current Liabilities
(a) Short term borrowings	184.616	111.161	193.812
(b) Trade payables	46.156	31.541	94.906
(c) Other current liabilities	29.997	100.477	109.765
(d) Short-term provisions	3.823	3.488	3.134
Total Current Liabilities (4)	264.592	246.667	401.617
TOTAL	897.130	939.000	1,124.144
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	440.875	460.202	512.483
(ii) Intangible Assets	0.259	0.175	0.000
(iii) Capital work-in-progress	1.554	0.126	3.049
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.289	0.289	0.588
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	15.257	30.438	16.969
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	458.234	491.230	533.089
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	266.266	184.555	318.387
(c) Trade receivables	86.690	84.736	122.679
(d) Cash and cash equivalents	61.788	164.123	58.595
(e) Short-term loans and advances	23.728	13.748	91.008
(f) Other current assets	0.424	0.608	0.386
Total Current Assets	438.896	447.770	591.055
TOTAL	897.130	939.000	1,124.144

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		2,258.400	2,547.599	2,647.836
		Other Income		21.618	39.203	4.081
		TOTAL (A)		2,280.018	2,586.802	2,651.917
Less	EXPENSES
		Cost of Materials Consumed		1,387.837	1,756.671	1,640.068
		Purchase of Stock-in-trade		0.000	9.436	66.200
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(41.998)	(33.612)	2.160
		Employee Benefits Expenses		39.447	46.653	44.495
		Other Expenses		798.579	628.924	696.095
		TOTAL (B)		2,183.865	2,408.072	2,449.018
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			96.153	178.730	202.899
Less	FINANCIAL EXPENSES (D)			22.902	52.290	75.667
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			73.251	126.440	127.232
Less	DEPRECIATION/ AMORTISATION (F)			28.092	75.797	75.994
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			45.159	50.643	51.238
Less	TAX (H)			9.094	0.737	20.117
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			36.065	49.906	31.121
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			249.993	206.257	181.298
Less	APPROPRIATIONS
			Transfer to General Reserve	5.000	5.000	5.000
			Dividend	1.000	1.000	1.000
			Tax on Dividend	0.170	0.170	0.162
	BALANCE CARRIED TO THE B/S			279.888	249.993	206.257
	IMPORTS
			Raw Materials	38.448	245.197	388.626
			Stores & Spares	0.791	0.354	0.255
	TOTAL IMPORTS			39.239	245.551	388.881
	Earnings / (Loss) Per Share (Rs.)			36.00	49.88	31.11

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	1.60	1.96	1.18
Operating Profit Margin (PBDIT/Sales)	(%)	4.26	7.02	7.66
Return on Total Assets (PBT/Total Assets}	(%)	5.04	5.40	4.57
Return on Investment (ROI) (PBT/Networth)		0.09	0.11	0.13
Debt Equity Ratio (Total Debt /Networth)		0.58	0.68	1.16
Current Ratio (Current Asset/Current Liability)		1.66	1.82	1.47

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	10.005	10.005	10.005
Reserves & Surplus	387.654	436.389	471.284
Share Application money pending allotment	0.000	0.000	0.000
Net worth	397.659	446.394	481.289
Long Term borrowings	267.754	194.002	93.948
Short Term borrowings	193.812	111.161	184.616
Total borrowings	461.566	305.163	278.564
Debt/Equity ratio	1.161	0.684	0.579

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	2,647.836	2,547.599	2,258.400
		(3.786)	(11.352)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	2,647.836	2,547.599	2,258.400
Profit	31.121	49.906	36.065
	1.18%	1.96%	1.60%

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
From Related Parties	0.467	13.290
Others	89.658	106.074
Total	90.125	119.364

REVIEW OF OPERATIONS:

During the year, the company achieved a turnover of Rs.2280.000 Millions as against Rs.2586.800 Millions in the previous year and earned Profit after tax of Rs.36.000 Millions as against Rs.49.900 Millions in the previous year. The decline in turnover and profitability is due to temporary suspension of production from 3rd week of December 2012 to January 2014 at sponge Iron Division due to non-availability of Iron/pellets at economical prices. Further due to payment of FSA charges pertaining to earlier years and increase in cost of power at Furnace and Rolling Mill divisions contributed for lower profitability. Presently all the divisions are working satisfactorily including the Sponge Iron division which was re-started from 1st week of February 2014.

The production of sponge Iron declined due to temporary suspension of production whereas the production of TMT bars increased due to better utilization of capacity of Rolling Mill Division of the Company

The company produced 7,613.000 MT of Sponge Iron and 61,011.500 MT of TMT bars during the year as against 36,714.420 MT of Sponge Iron and 53,492.490 MT of TMT bars in the previous year respectively.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80046337	25/11/2014 *	411,700,000.00	State Bank of India	Industrial Finance Branch, Mid Corporate Group, Rajbhavan Road, Somajiguda, Hyderabad, Telangana - 500082, India	C36344414

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.61.50
UK Pound	1	Rs.93.12
Euro	1	Rs.69.33

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		48

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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