MIRA INFORM REPORT

Report No. :	309329
Report Date :	21.02.2015

IDENTIFICATION DETAILS

Name :	RAHUL SALES LIMITED
Registered Office :	SCO 151, 152 2^nd Floor, Sector 8 C, Chandigarh –160009
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	10.09.1991
Com. Reg. No.:	53-011625
Capital Investment / Paid-up Capital :	Rs.154.800 Millions
CIN No.: [Company Identification No.]	U55109CH1991PLC011625
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	PTLR10919G
PAN No.: [Permanent Account No.]	AABFR0460J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Importers and Trader of Steel Products, Petrochemicals and Agro Commodities.
No. of Employees :	15 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile marked by low reserves and thin profitability margins of the company. However, trade relations are fair. Business is active. Payments 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	Cash Credit Limit = BB
Rating Explanation	Inadequate credit quality and high credit risk.
Date	September 2014

Rating Agency Name	ICRA
Rating	Non Fund Based Limits = A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	September 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.

INFORMATION PARTED BY

Name :	Mr. Arvind
Designation :	Deputy General Manager
Contact No.:	91-172-2726756
Date :	21.02.2015

LOCATIONS

Registered Office / Corporate Office :	SCO 151, 152 2^nd Floor, Sector 8 C, Chandigarh –160009, India
Tel. No.:	91-172-2726756
Fax No.:	91-172-2708840
E-Mail :	cs@rslgroup.in
Website :	www.rslgroup.com
Location :	Rented
Locality :	Commercial
Regional Office :	Flat No.7B, 7^th Floor, Ama Ram House, 1, Tolstory Marg, New Delhi - 110001, India
Tel. No.:	91-11-43528950
Fax No.:	91-11-43528951
E-Mail :	info@mynutrition.in
Branch Office :	608, R P Centre, Street No.-11, Koji Compound, Subhash Nagar, MIDC, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-40261757

DIRECTORS

As on 21.09.2013

Name :

Mr. Onkar Anand

Designation :

Chairman Cum Managing Director

Address :

House # 135, Sector 7, Panchkula, Haryana, India

Date of Birth/Age :

12.01.1957

Date of Appointment :

01.07.2009

DIN No.:

00386955

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	U55109CH1991PLC011625	RAHUL SALES LIMITED	Managing director	01/07/2009	10/09/1991	21/03/2014	Active	NO
2	U70109CH1994PTC015455	RSL ESTATES PRIVATE LIMITED	Director	15/12/1994	15/12/1994	21/03/2014	Active	NO
3	U02001CH1997PLC019899	BHAWNA AGRO LIMITED	Director	30/09/2010	08/05/1997	-	Active	NO
4	U17121CH2006PTC030556	BHAWNA SYNTHETICS PRIVATE LIMITED	Director	26/08/2006	26/08/2006	17/03/2012	Active	NO
5	U45209CH2008PTC031312	MPS STRUCTURES PRIVATE LIMITED	Director	28/07/2008	28/07/2008	20/08/2013	Active	NO
6	U55101CH2008PTC031327	RSL HOTELS & RESORTS PRIVATE LIMITED	Director	19/08/2008	19/08/2008	21/03/2014	Active	NO
7	U45209CH2008PTC031347	RSL DEVELOPERS PRIVATE LIMITED	Director	29/08/2008	29/08/2008	07/12/2012	Active	NO
8	L74899HR1991PLC032873	NARAINGARH SUGAR MILLS LIMITED	Whole-time director	03/11/2013	03/11/2008	21/03/2014	Active	NO
9	U74120DL2008PTC173408	E Copy Collective management Private LImited	Director	09/02/2009	09/02/2009	-	Strike off	NO
10	U15511CH2002PLC025070	NARAINGARH DISTILLERY LIMITED	Managing director	18/09/2010	01/04/2009	21/03/2014	Active	NO
11	U51909DL2010PTC202449	MY NUTRITION SUPPLEMENTS PRIVATE LIMITED	Director	08/09/2011	19/07/2010	21/11/2011	Active	NO
12	U62100CH2010PTC032661	RSL AVIATIONS PRIVATE LIMITED	Director	30/12/2010	30/12/2010	21/03/2014	Active	NO
13	U01111DL2008PLC181188	ONUS PLANTATIONS AND AGRO LIMITED	Director	29/09/2012	30/05/2012	13/03/2013	Active	NO
14	U24232CH2013PTC034486	RSL PHARMACEUTICALS PRIVATE LIMITED	Director	14/05/2013	14/05/2013	21/03/2014	Active	NO

Name :

Ms. Renu Anand

Designation :

Whole Time Director

Address :

House # 135, Sector 7, Panchkula, Haryana, India

Date of Birth/Age :

12.11.1961

Date of Appointment :

01.10.2013

DIN No.:

01369754

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	U70109CH1994PTC015455	RSL ESTATES PRIVATE LIMITED	Director	15/12/1994	15/12/1994	-	Active	NO
2	U55109CH1991PLC011625	RAHUL SALES LIMITED	Whole-time director	01/10/2013	01/12/2007	-	Active	NO
3	L74899HR1991PLC032873	NARAINGARH SUGAR MILLS LIMITED	Director	30/09/2009	03/11/2008	-	Active	NO
4	U15511CH2002PLC025070	NARAINGARH DISTILLERY LIMITED	Director	30/09/2009	01/04/2009	-	Active	NO
5	U62100CH2010PTC032661	RSL AVIATIONS PRIVATE LIMITED	Director	30/12/2010	30/12/2010	-	Active	NO
6	U55101CH2008PTC031327	RSL HOTELS & RESORTS PRIVATE LIMITED	Director	21/03/2014	21/03/2014	-	Active	NO
7	U24232CH2013PTC034486	RSL PHARMACEUTICALS PRIVATE LIMITED	Director	21/03/2014	21/03/2014	-	Active	NO

Name :

Mr. Jitendra Anand

Designation :

Director

Address :

House No. F – 143, Sector 22, Noida – 201 303, Uttar Pradesh, India

Date of Birth/Age :

11.01.1951

Date of Appointment :

01.01.2011

DIN No.:

00387657

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	U55109CH1991PLC011625	RAHUL SALES LIMITED	Director	01/01/2011	01/01/2007	-	Active	NO
2	L74899HR1991PLC032873	NARAINGARH SUGAR MILLS LIMITED	Whole-time director	03/11/2013	03/11/2008	-	Active	NO
3	U15511CH2002PLC025070	NARAINGARH DISTILLERY LIMITED	Director	30/09/2009	01/04/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Sarabjeet Kaur
Designation :	Secretary
Address :	House No. HL 367, Phase 9, Mohali-160062, Punjab, India
Date of Birth/Age :	08.06.1984
Date of Appointment :	06.06.2009
PAN No.:	BADPK9388P
Name :	Mr. Arvind
Designation :	Deputy General Manager

MAJOR SHAREHOLDERS

As on 21.09.2013

Names of Shareholders	No. of Shares
Onkar Anand	12396048
Renu Anand	756192
Jitender Anand	496760
Rahul Anand	1026000
Pradeep Anand	200000
Yogesh Anand	200000
Bhavna Anand	25000
Chanchal Chanda	380000
Total	15480000

Equity Share Break up (Percentage of Total Equity)

As on 21.09.2013

Category	Percentage
Directors or relatives of Directors	97.55
Other top fifty shareholders	2.45
Total	100.00

BUSINESS DETAILS

Line of Business :	Importers and Trader of Steel Products, Petrochemicals and Agro Commodities.
Products :	Steel Products, Petrochemicals and Agro Commodities
Brand Names :	--
Agencies Held :	--
Exports :	Not Divulged
Imports :
Products :
Countries :	Singapore Indonesia
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Global FZD, Singapore
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Remark :	Not Divulged

Customers :

Reference :	SPG Multitrade Private Limited, Mumbai, Maharashtra, India
Name of the Person :	Mr. Kuldeep (Finance Manager)
Contact No.:	91-22-25010506
Since How Long Known :	10 Years
Experience :	Product Quality – Excellent Delivery Behaviour – Excellent Overall - Excellent
Maximum Limit Dealt :	Rs.300.000 Millions
Remark :	Mr. Kuldeep informed that they are fully satisfied with their product quality and delivery beheviour.

No. of Employees :

15 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Commercial Branch, Chandigarh, India
Person Name (With Designation)	Mr. Sachin Luthra (Vice President)
Contact Number	91-172-5041251
Name of Account Holder	Rahul Sales Limited
Account Number	10214999550
Account Since (Date/Year of Account Opening)	01.03.2000
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash Credit = Rs.60.000 Millions L/C = Rs.180.000 Millions
Account Operation	The company is availing CC under multiple banking arrangement (MBA) with ICICI bank as other banker. The transactions in the account are below our pro-rata share in MBA.
Remarks (If any)	The conduct of the account is satisfactory expect few instances of LC developments which were adjusted with in period ranging from 1-23 days.

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Term Loan from parties other than banks
Kotak Mahindra Prime Limited	12.714	20.710
BMW Financial Services Private Limited	18.629	21.470
PNB Housing Finance Limited	127.624	4.687
SHORT TERM BORROWINGS
Loans repayable on demand- from Banks
Cash Credit limit from SBI	109.633	92.279
Cash Credit Limit from ICICI Bank	9.551	0.000
Loans repayable on demand- from Banks
Cash Credit limit from SBI	379.793	716.125
Total	657.944	855.271

Notes:

LONG TERM BORROWINGS

Details of security and terms of repayment for the secured term borrowings from Kotak Mahindra Prime Limited

Secured against Car and personal insurances of Directors

Repayable in Equated Monthly installments of 36 to 60 months with rate of interest ranging from

Details of security and terms of repayment for the secured term borrowings BMW Financial Services Private Limited:

Secured against Car

Repayable in 59 Equated Monthly installments starting from August, 2012.

Details of security and terms of repayment for the secured term borrowings PNB Housing Finance Limited:

Secured against personal property of director.

Repayable in 180 Equoted Monthly installments starting from January, 2014 with rate of interest of 14.50%.

Details of terms of repayment for the unsecured loans obtained from related parties:

All the loans are interest free. No formal agreement has been entered. However, the loans are repayable on the consent of the Company.

All the above mentioned loans except for loans from related parties are backed by the personal guarantee of some of the directors.

SHORT TERM BORROWINGS

Details of security for the secured short-term borrowings from SBI:

Primary Security:

Secured by hypothecation on first parri pasu charge on company’s current assets.

Collateral Security:

Equitable mortgage of S.C.O. No. 345, Sector 9, Panchkula, Flat at Mumbai and one personal property of directors

Personal Guarantee of some of the directors.

Details of security for the secured short-term borrowings of ICICI Bank:

Primary Security:

Secured by Hypothecation on first parri pssu charge on company's current assets.

Collateral Security:

Equitable Mortgage on one personal properly of director.

Personal guarantee of some of the directors.

Details of security for the secured short-term borrowing from PEC Limited:

Primary Security:

Secured by stocks in the possession of the lender.

Personal Guarantee of some of the directors.

Auditors :
Name :	N. Kumar Chhabra and Company Chartered Accountants
Address :	SCO 1094-95, Sector 22 B, Chandigarh – 160022, India
Tel. No.:	91-172-2701138
Memberships :	--
Collaborators :	--
Sister Concern :	Not Divulged

CAPITAL STRUCTURE

As on 21.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
32500000	Equity Shares	Rs.10/- each	Rs.325.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15480000	Equity Shares	Rs.10/- each	Rs.154.800 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	154.800	154.800	154.800
(b) Reserves & Surplus	75.958	52.236	28.475
(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)	230.758	207.036	183.275
(3) Non-Current Liabilities
(a) long-term borrowings	186.225	216.226	21.025
(b) Deferred tax liabilities (Net)	4.245	4.715	3.296
(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)	190.470	220.941	24.321
(4) Current Liabilities
(a) Short term borrowings	498.978	808.404	139.880
(b) Trade payables	3,869.961	609.873	637.546
(c) Other current liabilities	95.275	18.768	21.081
(d) Short-term provisions	0.206	3.187	10.264
Total Current Liabilities (4)	4,464.420	1,440.232	808.771
TOTAL	4,885.648	1,868.209	1,016.367
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	94.458	109.475	47.334
(ii) Intangible Assets	0.000	0.000	0.000
(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	26.984	11.127	8.351
(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	121.442	120.602	55.685
(2) Current assets
(a) Current investments	79.500	0.000	0.000
(b) Inventories	591.440	855.037	141.601
(c) Trade receivables	3,268.150	756.387	712.995
(d) Cash and cash equivalents	82.173	77.668	76.307
(e) Short-term loans and advances	742.662	54.894	14.611
(f) Other current assets	0.281	3.621	15.168
Total Current Assets	4,764.206	1,747.607	960.682
TOTAL	4,885.648	1,868.209	1,016.367

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4,189.306	3,725.681	3,971.896
		Other Income	15.356	13.701	11.835
		TOTAL (A)	4,204.662	3,739.382	3,983.731
Less	EXPENSES
		Purchase of Stock-in-trade	3,705.343	4,267.690	3,759.470
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	263.798	(713.436)	(8.301)
		Employee Benefits Expenses	8.253	8.699	4.664
		Other Expenses	30.611	14.866	26.806
		TOTAL (B)	4,008.005	3,577.819	3,782.639
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		196.657	161.563	201.092
Less	FINANCIAL EXPENSES (D)		153.197	119.434	166.530
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		43.460	42.129	34.562
Less	DEPRECIATION/ AMORTISATION (F)		9.161	6.526	4.061
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		34.299	35.603	30.501
Less	TAX (H)		10.906	11.841	10.720
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		23.393	23.762	19.781
	Earnings / (Loss) Per Share (Rs.)		1.51	1.53	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.56	0.64	0.50
Operating Profit Margin (PBDIT/Sales)	(%)	4.69	4.34	5.06
Return on Total Assets (PBT/Total Assets}	(%)	0.71	1.92	3.03
Return on Investment (ROI) (PBT/Networth)		0.15	0.17	0.17
Debt Equity Ratio (Total Debt /Networth)		2.97	4.95	0.88
Current Ratio (Current Asset/Current Liability)		1.07	1.21	1.19

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	154.800	154.800	154.800
Reserves & Surplus	28.475	52.236	75.958
Share Application money pending allotment	0.000	0.000	0.000
Net worth	183.275	207.036	230.758
Long Term borrowings	21.025	216.226	186.225
Short Term borrowings	139.880	808.404	498.978
Total borrowings	160.905	1024.630	685.203
Debt/Equity ratio	0.878	4.949	2.969

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	3,971.896	3,725.681	4,189.306
		(6.199)	12.444

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	3,971.896	3,725.681	4,189.306
Profit	19.781	23.762	23.393
	0.50%	0.64%	0.56%

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
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
Loans from Directors
Onkar Anand	0.000	155.174
Renu Anand	12.202	12.195
Rahul Anand	13.066	0.000
From Other Related Parties
RSL Estate Private Limited	1.990	1.990
Total	27.258	169.359

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10288384	13/05/2011	110,000,000.00	ICICI Bank Limited	Landmarkrace Cource Circle, Alkapuri, Baroda, Gujarat - 390015, India	B13529854
2	80023270	21/12/2010 *	240,000,000.00	State Bank Of India	Specialised Commercial Branch, Sco-103-108, Sector 17b, Chandigarh, Chandigarh - 160017, India	B04386744

*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.62.26
UK Pound	1	Rs.96.01
Euro	1	Rs.70.72

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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		34

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.