MIRA INFORM REPORT

Report No. :	308685
Report Date :	20.02.2015

IDENTIFICATION DETAILS

Name :	R. L. STEELS AND ENERGY LIMITED (w.e.f 07.03.2008)
Formerly Known As :	R.L. STEELS LIMITED R.L. STEELS PRIVATE LIMITED
Registered Office :	Mittal Bhawan, 70 Daryaganj, New Delhi - 110002
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.08.1985
Com. Reg. No.:	55-021690
Capital Investment / Paid-up Capital :	Rs. 160.189 Millions
CIN No.: [Company Identification No.]	U27202DL1985PLC021690
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACR5809B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Alloy Steel.
No. of Employees :	Not Available

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 Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred huge accumulated losses during FY 2014. Borrowings recorded by the company are huge and increasing. However, Business is active. Payment terms are reported to be slow. The company can be considered for business dealings on a 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 – 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 (C)
Rating Explanation	Poor credit quality and limited prospects of recovery.
Date	24.06.2014

Rating Agency Name	ICRA
Rating	Short Term (A4)
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	24.06.2014

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 :	Mittal Bhawan, 70 Daryaganj, New Delhi – 110002, India
Tel. No.:	Not Available
Mobile No.:	Not Available
Fax No.:	Not Available
E-Mail :	corporate@rlsteels.com finance@rlsteels.com admin@rlsteels.com
Website :	www.rlsteels.com
Location:	Owned
Locality:	Commercial
Corporate Office :	Gut No. 78-81, Pangra Shivar, Paithan Road, Chitengaon, Aurangabad – 431107, Maharashtra, India
Tel. No.:	91-2431-661200 / 661202 / 251163 / 66 / 67 / 251453 / 251659
Fax No.:	91-2431251879
E-Mail :	admin@rlsteels.com
Branch :	Located At · Pune · Faridabad · Chennai

DIRECTORS

As on : 28.09.2013

Name :

Mr. Raghunandanlal Gupta

Designation :

Director

Address :

58-59, Sector N-1, CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

25.03.1996

DIN No.:

00061861

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	L45209MH1985PLC035147	Delma Infrastructure Limited	Director	12/05/1986	12/05/1986	03/12/2012	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Director	21/06/1989	21/06/1989	-	Active	NO
3	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	31/03/1992	31/03/1992	-	Active	NO
4	U27100DL1988PTC212068	SANT EKNATH ROLLING MILLS PVT LTD	Director	01/03/1996	01/03/1996	-	Active	NO
5	U27202DL1985PLC021690	R. L. STEELS & ENERGY LIMITED.	Director	25/03/1996	25/03/1996	-	Active	NO
6	U27100MH1988PTC045799	AKAR INDUSTRIES PRIVATE LIMITED	Director	03/10/2004	03/10/2004	14/05/2012	Active	NO
7	U74999MH1990PTC055391	AURANGABAD FORGING PRIVATE LIMITED	Director	03/10/2004	03/10/2004	14/05/2012	Active	NO
8	U65990MH1987PTC044787	SHATRUNJI INVESTMENT PVT LTD	Director	03/10/2004	03/10/2004	-	Active	NO
9	U27310MH1987PTC044788	AKAR ALLOYS PVT LTD	Director	03/10/2004	03/10/2004	-	Active	NO
10	U70100MH1988PTC045806	LAVANAYA FINVEST PRIVATE LIMITED	Director	03/10/2004	03/10/2004	-	Active	NO

Name :

Mr. Sunil Todi

Designation :

Director

Address :

Plot No. 40, Sectro N-1, CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

25.03.1996

DIN No.:

00061952

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	U27202DL1985PLC021690	R. L. STEELS & ENERGY LIMITED.	Director	25/03/1996	25/03/1996	-	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Managing director	16/09/2010	15/09/2005	-	Active	NO
3	U28999WB2000PTC092308	REFORM TOOLS PRIVATE LIMITED	Director	11/03/2008	11/03/2008	13/10/2010	Active	NO
4	U34300PN1985PLC037909	TRINITY AUTO COMPONENTS LIMITED	Director	29/09/2010	09/08/2010	20/12/2010	Active	NO

Name :

Mr. Narendra Kumar Gupta

Designation :

Director

Address :

58-59, Sector N-1, CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

23.09.2008

DIN No.:

00062268

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	L45209MH1985PLC035147	Delma Infrastructure Limited	Director	12/05/1986	12/05/1986	03/12/2012	Active	NO
2	L29220MH1989PLC052305	AKAR TOOLS LTD	Director	21/06/1989	21/06/1989	-	Active	NO
3	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	31/03/1992	31/03/1992	-	Active	NO
4	U27202DL1985PLC021690	R. L. STEELS & ENERGY LIMITED.	Director	23/09/2008	15/01/2008	-	Active	NO
5	U13100MH2011PTC215716	AKAR MINERALS PRIVATE LIMITED	Director	05/04/2011	05/04/2011	26/08/2012	Active	NO

Name :

Mr. Nitin Gupta

Designation :

Director

Address :

58-59, Sector N-1, CIDCO, Aurangabad – 431001, Maharashtra, India

Date of Appointment :

30.06.2004

DIN No.:

00062041

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	U27202DL1985PLC021690	R. L. STEELS & ENERGY LIMITED.	Director	30/06/2004	30/06/2004	-	Active	NO
2	U27200MH1992PLC064744	GUPTA CON-CAST LIMITED	Director	28/09/2008	01/09/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 28.09.2013

Names of Shareholders	No. of Shares
Raghunaadan Lal Gupta	2819120
Usha Gupta	525640
Akar Tools Limited, India	1496540
Sushila Devi Gupta	1266000
Akar Industries Private Limited, India	1276680
Raghunandan Lal Gupta – HUF	1151540
Gupta Con-Cast Limited, India	872900
Shatrunji Investment Private Limited, India	341600
Sant Eknath Rolling Mills Private Limited, India	212000
Pan Gulf General Trading Company LLC, Dubai	173760
Shanghai Gulf General Trading Company LLC, Dubai	522560
Aurangabad Forgines Private Limited, India	397000
Lavanaya Finvest Private Limited, India	312600
Akar Alloys Private Limited, India	532900
Niharika Gupta	302500
Nitin Gupta	897600
N. K. Gupta	30000
Manji Vinimay Private Limited, India	150000
Siddeshwari Power Equipment Private Limited, India	160000
Baisakhi Tracom Private Limited, India	100000
Total	13540940

As on : 28.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	5.14
Bodies corporate	43.22
Directors or relatives of Directors	51.64
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Alloy Steel.

Products :

Item Code No.	Product Description
72071920	Mild Steel (M.S.) Billets
72072020	Spring Steel Quality
72071220	Forging Quality

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Not Available

Bankers :

· State Bank of India, Industrial Finance Branch, Kranti Chowk, Aurangabad - 431005, Maharashtra, India

· Punjab National Bank, Aurangpura, Aurangabad, Auranagabad - 431001, Maharashtra, India

· The Shamrao Vithal Co-Operative Bank Limited, Adalat Road, Aurangabad, Aurangabad - 431001, Maharashtra, India

· Canara Bank, Shahaganj Branch, Aurangabad - 431001, Maharashtra, India

· Industrial Development Bank of India Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

· Punjab National Bank, Plot No 316, N-3, CIDCO, Jalna Road, Aurangabad - 431005, Maharashtra, India

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term Loan From Bank	1231.214	1106.313
SHORT TERM BORROWING
Loans Repayable On Demand	835.679	679.626
Total	2066.893	1785.939

Auditors :
Name :	A.K. Bagadia and Company Chartered Accountants
Address :	37, Sopariwala House,293, Princes Street, Marine Lines, Mumbai - 400002, Maharashtra, India
PAN No.:	AABPB7126M
Memberships :	Not Available
Collaborators :	Not Available
Associates:	· Aurangabad Forging Private Limited · Akar Tools Limited · Sant Eknath Rolling Mills Private Limited · Akar Industries Private Limited · Akar Alloys Private Limited · Gupta Concast Limited, Waluj · Shatrunji Investment P Limited · Akar Minerals Private Limited

CAPITAL STRUCTURE

As on : 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13540940	Equity Shares	Rs.10/- each	Rs.135.409 Millions

As on : 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,60,18,940	Equity Shares	Rs.10/- each	Rs.160.189 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	160.189	135.409	115.534
(b) Reserves & Surplus	(146.764)	(24.926)	270.190
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	19.680	0.000
Total Shareholders’ Funds (1) + (2)	13.425	130.163	385.724
(3) Non-Current Liabilities
(a) long-term borrowings	1390.206	1273.838	748.597
(b) Deferred tax liabilities (Net)	61.986	70.098	75.952
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	1452.192	1343.936	824.549
(4) Current Liabilities
(a) Short term borrowings	835.679	679.626	1135.949
(b) Trade payables	648.327	623.402	538.386
(c) Other current liabilities	31.740	25.814	80.635
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	1515.746	1328.842	1754.970
TOTAL	2981.363	2802.941	2965.243
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	750.037	828.115	933.293
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	364.246	353.698	300.494
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.303	0.303	0.303
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1114.586	1182.116	1234.090
(2) Current assets
(a) Current investments	60.000	60.000	54.000
(b) Inventories	678.933	613.991	658.305
(c) Trade receivables	864.251	725.680	771.470
(d) Cash and cash equivalents	88.677	75.318	80.922
(e) Short-term loans and advances	174.916	143.337	160.490
(f) Other current assets	0.000	2.499	5.966
Total Current Assets	1866.777	1620.825	1731.153
TOTAL	2981.363	2802.941	2965.243

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4252.164	3807.931	6312.682
		Other Income	7.081	8.587	7.619
		TOTAL	4259.245	3816.518	6320.301
Less	EXPENSES
		Cost of Materials Consumed	2849.131	2499.663	4149.887
		Purchases of Stock-in-Trade	0.551	8.717	3.248
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(110.672)	74.904	(25.266)
		Employees benefits expense	110.921	90.833	112.011
		Other expenses	1168.935	1072.661	1881.326
		TOTAL	4018.866	3746.778	6121.206
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		240.379	69.740	199.095
Less	FINANCIAL EXPENSES		258.676	258.717	302.027
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(18.297)	(188.977)	(102.932)
Less/ Add	DEPRECIATION/ AMORTISATION		111.653	111.993	149.563
	PROFIT BEFORE TAX		(129.950)	(300.970)	(252.495)
Less	TAX		(8.112)	(5.854)	(20.549)
	PROFIT AFTER TAX		(121.838)	(295.116)	(231.946)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(298.999)	(3.883)	228.063
	BALANCE CARRIED TO THE B/S		(420.837)	(298.999)	(3.883)
	EARNINGS IN FOREIGN CURRENCY		112.305	780.505	1552.669
	Earnings Per Share (Rs.)		(9.00)	(21.79)	(17.13)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(2.87)	(7.75)	(3.67)
Operating Profit Margin (PBDIT / Sales)	(%)	5.65	1.83	3.15
Return on Total Assets (PBT/Total Assets}	(%)	(4.97)	(12.29)	(9.48)
Return on Investment (ROI) (PBT/Networth)		(9.68)	(2.31)	(0.65)
Debt Equity Ratio (Total Debt /Networth)		165.80	15.01	4.89
Current Ratio (Current Asset/Current Liability)		1.23	1.22	0.99

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	115.534	135.409	160.189
Reserves & Surplus	270.190	(24.926)	(146.764)
Net worth	385.724	110.483	13.425
long-term borrowings	748.597	1273.838	1390.206
Short term borrowings	1135.949	679.626	835.679
Total borrowings	1884.546	1953.464	2225.885
Debt/Equity ratio	4.886	17.681	165.801

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	6312.682	3807.931	4252.164
		(39.678)	11.666

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	6312.682	3807.931	4252.164
Profit/Loss	(231.946)	(295.116)	(121.838)
	(3.67%)	(7.75%)	(2.87%)

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	Yes
5]	Type of Business	Yes
6]	Line of Business	No
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	No
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	No
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 LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Rupee Term Loans From Other	158.992	167.526
Total	158.992	167.526

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10232054	11/10/2011 *	277,300,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, KRANTI CHOWK, AURANGAB  AD, Maharashtra - 431005, INDIA	B24886939
2	10226231	16/06/2010	135,000,000.00	PUNJAB NATIONAL BANK	AURANGPURA, AURANGABAD, AURANGABAD, Maharashtra -  431001, INDIA	A88242896
3	10208212	05/02/2010	170,000,000.00	THE SHAMRAO VITHAL CO-OPERATIVE BANK LIMITED	ADALAT ROAD, AURANGABAD, AURANGABAD, Maharashtra  - 431001, INDIA	A81360307
4	10217856	04/09/2009	120,000,000.00	PUNJAB NATIONAL BANK	AURANGPURA, AURANGABAD, AURANGABAD, Maharashtra -  431001, INDIA	A75476010
5	10170441	20/07/2009	37,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maha  rashtra - 400005, INDIA	A67402099
6	10095461	19/03/2008	150,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maha  rashtra - 400005, INDIA	A35369784
7	10094133	22/01/2013 *	2,865,300,000.00	PUNJAB NATIONAL BANK	PLOT NO 316, N-3,, CIDCO, JALNA ROAD, AURANGABAD,  Maharashtra - 431001, INDIA	B68741297
8	10091253	29/12/2012 *	2,865,300,000.00	PUNJAB NATIONAL BANK	PLOT NO 316, N-3, CIDCO, JALNA ROAD, AURANGABAD,  Maharashtra - 431005, INDIA	B69030229
9	10058858	29/06/2007	150,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maha  rashtra - 400005, INDIA	A18447532
10	10036401	30/12/2006	157,500,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maha  rashtra - 400005, INDIA	A10306207

FINANCIAL RESULTS:

During the year the Company has achieved sales of Rs . 4633.596 Millions (Previous year Rs. 4171.498 Millions).

The company has suffered loss of Rs. 129.950 Millions as compared to the loss of Rs. 300.971 Millions in previous year. With the revival of export market, efforts taken by the management to control the input cost in various fronts has resulted in reduction of losses during the year.

MARKET OVERVIEW

Being a core sector, steel industry tracks the overall economic growth in the long term. Also, steel demand, being derived from other sectors like automobiles, consumer durables and infrastructure, its fortune is dependent on the growth of these user industries.

Their Main User Industry namely Automobile Sector, Heavy Engineering Industry Sectors etc registered a negative growth during the last few years. The management has converted this adversity in to an opportunity by more aggressively diversifying into developing products for the Railways, Agriculture equipments and enlisting with number of original equipment manufacturers for alloy steel products. With New Government in power in Central, Indian Economy is expected to be out of Recession, and signs of improvement in the domestic commercial vehicles are visible in the last few months.

.

The moratorium period under CDR package was up to 31.03.2014. With the growth in sales and improving margins, the management is confident to service the obligations under the package sanctioned by the banks

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Vehicles

· Office Equipment

· Computer Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.24
UK Pound	1	Rs.95.57
Euro	1	Rs.71.00

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILITY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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		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 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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