MIRA INFORM REPORT

Report No. :	306000
Report Date :	09.02.2015

IDENTIFICATION DETAILS

Name :	SALASAR STEEL AND POWER LIMITED (w.e.f. 18.05.2007)
Formerly Known As :	SALASAR SPONGE AND POWER LIMITED (w.e.f. 09.05.2003) ROTOCAST SYNTHETIC LIMITED
Registered Office :	1^st Floor, Bhatia Complex, Opposite RKC, C.E. Road, Raipur – 492001, Chhattisgarh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	19.05.1994
Com. Reg. No.:	10-008350
Capital Investment / Paid-up Capital :	Rs.534.188 Millions
CIN No.: [Company Identification No.]	U17124CT1994PLC008350
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAHCS2327N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer sponge iron, pig iron, ferro manganese, silico manganese, ferro chrome, all varieties or products of iron and steel, carbon steel, alloy steel, mild steel and non-ferrous metals and scrap.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 2000000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of continuous losses incurred by the company and huge borrowings recorded by the company. 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	ICRA
Rating	Term Loan = B
Rating Explanation	High risk of default
Date	April 2014

Rating Agency Name	ICRA
Rating	Non-Fund Based Limit = A4
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	April 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 :	1^st Floor, Bhatia Complex, Opposite RKC, C.E. Road, Raipur – 492001, Chhattisgarh, India
Tel. No.:	91-7762-261521
Fax No.:	Not Available
E-Mail :	raipur@sspl-india.com
Corporate Office :	Vill-Gerwani, Ambikapur Road, Raigahr, Raipur, Chhattisgarh, India

DIRECTORS

As on 30.09.2014

Name :

Shiv Kumar Malani

Designation :

Managing Director

Address :

300, Kohat Enclave, Pitampura, Delhi – 110034, India

Date of Birth/Age :

01.07.1945

Date of Appointment :

01.02.2014

DIN No.:

00098160

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	U27101CT1984PLC003802	RAIPUR ROTOCAST LIMITED	Whole-time director	01/10/2011	01/09/1984	-	Amalgamated	NO
2	U14101RJ1989PLC005211	K.G.MARBLES LIMITED	Director	17/11/1989	17/11/1989	25/06/2008	Active	NO
3	U17124CT1994PLC008350	SALASAR STEEL AND POWER LIMITED	Managing director	01/02/2014	19/05/1994	-	Active	NO
4	U27310CT1990PLC005661	ROTOCAST INDUSTRIES LIMITED	Whole-time director	01/04/2013	13/09/1996	-	Active	NO

Name :

Krishan Mohta

Designation :

Director

Address :

2, Auck Land Square, 4^th Floor, Kolkata – 700017, West Bengal, India

Date of Birth/Age :

12.10.1969

Date of Appointment :

19.05.1994

DIN No.:

00115395

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	U17124CT1994PLC008350	SALASAR STEEL AND POWER LIMITED	Director	19/05/1994	19/05/1994	-	Active	NO
2	U51219WB1995PTC067809	K.R. SHRILAXMI DEALS PRIVATE LIMITED	Director	25/01/1995	25/01/1995	-	Active	NO
3	U25201WB1996PLC077781	ZETA POTENTIAL LIMITED	Director	04/03/1996	04/03/1996	16/04/2009	Active	NO
4	U70101WB1987PTC043042	AWANTI HOUSING & PROPERTIES PRIVATE LIMITED	Director	25/01/1997	25/01/1997	-	Active	NO
5	U24119WB1973PTC029072	SHREE MARUTI CHEMICAL INDUSTRIES PRIVATE LIMITED	Director	25/01/1997	25/01/1997	-	Active	NO
6	U74950WB1974PTC029641	PRINT & PACK (CALCUTTA) PRIVATE LIMITED	Director	21/02/1998	21/02/1998	-	Active	NO
7	U65923WB1991PLC052876	L N FINANCE LIMITED	Director	18/08/2003	18/08/2003	-	Active	NO
8	U51219WB1986PTC041675	PADMAVATI MERCANTILES PRIVATE LIMITED	Director	02/04/2005	02/04/2005	-	Strike off	NO
9	U64202WB2000PTC090941	LEARNING SPIRAL PRIVATE LIMITED	Director	20/04/2005	20/04/2005	-	Active	NO
10	U70101WB1987PLC043249	MOHTA & SONS LIMITED	Director	20/04/2005	20/04/2005	-	Active	NO
11	U51909WB1994PTC061946	TASUM IMPEX PRIVATE LIMITED	Director	20/04/2005	20/04/2005	-	Active	NO
12	U74140WB1964PTC026301	DAS CONSULTANTS PRIVATE LIMITED	Director	20/04/2005	20/04/2005	-	Active	NO
13	U55101WB1994PLC064894	ADVANTAGE IMPEX LIMITED	Director	11/09/2007	11/09/2007	-	Active	NO
14	U65921WB1993PTC059938	YASH MOVERS PRIVATE LIMITED	Director	17/05/2010	17/05/2010	-	Active	NO
15	U27100WB2011PTC167714	SMART STAINLESS TUBES PRIVATE LIMITED	Director	16/09/2011	16/09/2011	-	Active	NO

Name :

Jinesh Kumar Jain

Designation :

Director

Address :

D-268, Sarvodaya Enclave, New Delhi – 110017, Delhi, India

Date of Birth/Age :

19.09.1954

Date of Appointment :

15.09.2003

DIN No.:

00202693

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	U65100DL1995PLC069228	CRESCENT SECURITIES LIMITED	Director	31/05/1995	31/05/1995	-	Active	NO
2	U17124CT1994PLC008350	SALASAR STEEL AND POWER LIMITED	Director	15/09/2003	15/09/2003	-	Active	NO
3	U70102DL2014PTC272933	J.R.D. APARTMENTS PRIVATE LIMITED	Director	05/11/2014	05/11/2014	-	Active	NO

KEY EXECUTIVES

Name :	Vaibhav Yashwantrao Jachak
Designation :	Secretary
Address :	34, Paramanand Nagar, Near Mohba Bazar, Raipur – 492001, Chhattisgarh, India
Date of Birth/Age :	06.11.1981
Date of Appointment :	26.08.2013
PAN No. :	AMMPJ5466F

MAJOR SHAREHOLDERS

As on 30.09.2014

SHAREHOLDERS FILE ATTACHED

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	6.46
Bodies corporate	53.15
Directors or relatives of Directors	33.05
Other top fifty shareholders	7.34
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer sponge iron, pig iron, ferro manganese, silico manganese, ferro chrome, all varieties or products of iron and steel, carbon steel, alloy steel, mild steel and non-ferrous metals and scrap.

Products :

Item Code No. (ITC Code)	Product Description
99893303	Non-ferrous metal stamping services, from drawings
98010013	Electricity (Generation and Transmission)
72282000	Steel Billets/Ingots

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Not Available

Bankers :

· State Bank of India, Commercial Branch, Pujari Chambers, Pachpedi Naka, Raipur – 492001, Chhattisgarh, India

· Corporation Bank, Block-9, Plot 1/1, Chhattisgarh Bhawan, Opposite, BJP Office, Rajbandha Maidan, G.E. Road, Raipur – 492001, Chhattisgarh, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans from banks	1937.513	1848.405
Term loans from others	534.909	523.422
Deferred payment liabilities	1.733	2.141
SHORT TERM BORROWINGS
Working capital loans from banks	600.707	552.130
Total	3074.862	2926.098

Financial Institutions :	· Tata Capital Limited, One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India · L and T Infrastructure Finance Company Limited, Mount Poonamllee Road, Manapakkam, Chennai – 600089, Tamil Nadu, India
Auditors :
Name :	S. M. Daga And Company Chartered Accountants
Address :	11, Clive Row, Kolkata – 720001, West Bengal, India
Memberships :	Not Available
Collaborators :	Not Available
Associates :	· Rotocast Industries Limited · Malani Holdings Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
34500000	Equity Shares	Rs.10/-each	Rs.345.000 Millions
25500000	Preference Shares	Rs.10/-each	Rs.255.000 Millions
	Total		Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31038889	Equity Shares	Rs.10/-each	Rs.310.388 Millions
25380000	Preference Shares	Rs.10/-each	Rs.253.800 Millions
	Total		Rs.564.188 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	534.188	500.300	422.700
(b) Reserves & Surplus	420.240	758.457	1021.867
(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)	954.428	1258.757	1444.567
(3) Non-Current Liabilities
(a) long-term borrowings	2625.415	2494.268	2018.242
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	5.149	3.403	1.196
Total Non-current Liabilities (3)	2630.564	2497.671	2019.438
(4) Current Liabilities
(a) Short term borrowings	600.707	552.130	137.430
(b) Trade payables	112.633	206.870	31.161
(c) Other current liabilities	197.477	145.498	298.057
(d) Short-term provisions	7.380	7.399	28.578
Total Current Liabilities (4)	918.197	911.897	495.226
TOTAL	4503.189	4668.325	3959.231
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3436.993	3551.924	615.817
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	20.426	27.672	2428.373
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.150	0.150	0.150
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	41.015	39.073	137.817
(e) Other Non-current assets	4.945	6.448	47.947
Total Non-Current Assets	3503.529	3625.267	3230.104
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	653.329	543.898	503.745
(c) Trade receivables	99.119	191.510	59.195
(d) Cash and cash equivalents	11.708	12.281	76.808
(e) Short-term loans and advances	121.107	117.343	83.061
(f) Other current assets	114.397	178.026	6.318
Total Current Assets	999.660	1043.058	729.127
TOTAL	4503.189	4668.325	3959.231

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	2442.853	1302.182	1142.818
	Other Income	47.449	3.559	5.451
	TOTAL	2490.302	1305.741	1148.269
Less	EXPENSES
	Cost of Materials Consumed	1966.016	1198.542	901.721
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	4.677	9.203	(30.097)
	Employees benefits expense	92.740	68.271	51.072
	Other expenses	204.191	159.194	89.321
	TOTAL	2267.624	1435.210	1012.017
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	222.678	(129.469)	136.252
Less	FINANCIAL EXPENSES	381.934	105.903	25.800
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(159.256)	(235.372)	110.452
Less/ Add	DEPRECIATION/ AMORTISATION	215.071	87.221	50.946
	PROFIT/ (LOSS) BEFORE TAX	(374.327)	(322.593)	59.506
Less	TAX	0.000	0.586	13.767
	PROFIT/ (LOSS) AFTER TAX	(374.327)	(323.179)	45.739
	Earnings / (Loss) Per Share (Rs.)	(12.06)	(10.41)	1.47

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	(15.32)	(24.81)	4.00
Operating Profit Margin (PBDIT/Sales)	(%)	9.11	(9.94)	11.92
Return on Total Assets (PBT/Total Assets}	(%)	(8.35)	(6.95)	3.89
Return on Investment (ROI) (PBT/Networth)		(0.39)	(0.26)	0.04
Debt Equity Ratio (Total Debts/Networth)		3.38	2.42	1.49
Current Ratio (Current Asset/Current Liability)		1.09	1.14	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	422.700	500.300	534.188
Reserves & Surplus	1021.867	758.457	420.240
Net worth	1444.567	1258.757	954.428
long-term borrowings	2018.242	2494.268	2625.415
Short term borrowings	137.430	552.130	600.707
Total borrowings	2155.672	3046.398	3226.122
Debt/Equity ratio	1.492	2.420	3.380

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	1142.818	1302.182	2442.853
		13.945	87.597

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	1142.818	1302.182	2442.853
Profit	45.739	(323.179)	(374.327)
	4.00%	(24.82%)	(15.32%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	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	No

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10413162	28/01/2013	51,400,000.00	CORPORATION BANK	BLOCK-9, PLOT 1/1, CHHATTISGARH BHAWAN, OPP. BJP OFFICE, RAJBANDHA MAIDAN, G.E. ROAD, RAIPUR, Chhattisgarh - 492001, INDIA	B71248728
2	10356067	27/03/2012	34,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 2ND FLOOR, PUJARI CHAMBERS, PACHPEDI NAKA, RAIPUR, Chhattisgarh - 492001, INDIA	B39731419
3	10343822	29/02/2012	2,500,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B35677277
4	10318407	28/09/2011	2,222,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B25606955
5	10286757	29/04/2011	2,696,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12877981
6	10286758	29/04/2011	4,166,000.00	TATA CAPITAL LIMITED	ONE FORBES, DR V B GANDHI MARG,FORT, MUMBAI, Maharashtra - 400001, INDIA	B12878948
7	10223157	22/05/2013 *	2,245,800,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, PUJARI CHAMBERS, PACHPEDI NAKA , RAIPUR, Chhattisgarh - 492001, INDIA	B77558021
8	10218805	29/03/2010	500,000,000.00	STATE BANK OF INIDIA	COMMERCIAL BRANCH, 2ND FLOOR, PUJARI COMPLEX, PACHPEDI NAKA, RAIPUR, Chhattisgarh - 492001, INDIA	A85497469
9	10218593	04/09/2013 *	300,000,000.00	L&T INFRASTRUCTURE FINANCE COMPANY LIMITED	MOUNT POONAMALLEE ROAD, MANAPAKKAM, CHENNAI, Tamil Nadu - 600089, INDIA	B85835106
10	10087785	31/12/2007	67,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, ZONAL OFFICE CAMPUS, BYRON BAZAR, RAIPUR, Chhattisgarh - 492001, INDIA	A32405128

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Other loans and advances	151.260	120.299
Total	151.260	120.299

FIXED ASSETS

· Freehold Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office equipment

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.61.73
UK Pound	1	Rs.94.65
Euro	1	Rs.70.78

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.