MIRA INFORM REPORT

Report No. :	302462
Report Date :	08.01.2015

IDENTIFICATION DETAILS

Name :	SAKTHI FERRO ALLOYS INDIA PRIVATE LIMITED
Registered Office :	18/26, Loganathan Nagar, Second Street, Choolaimedu, Chennai - 600094, Tamilnadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	29.03.2005
Com. Reg. No.:	18-055788
Capital Investment / Paid-up Capital :	Rs.94.000 Millions
CIN No.: [Company Identification No.]	U27101TN2005PTC055788
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAJCS3251K
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer, Trader and Importer of Ferrous and Non-Ferrous Scrap.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating takes into consideration company’s established position in trading in metal scrap business supported by sound financial base and fair liquidity profile of the company. Trade relations are fair. Business is active. Payment terms are reported to be slow but 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	19.12.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating = A3
Rating Explanation	Moderate degree of safety and high credit risk
Date	19.12.2014

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. Rajendran
Designation :	Accountant
Contact No.:	91-44-23611826
Date :	29.12.2014

LOCATIONS

Registered / Corporate Office :	#18/26, Loganathan Nagar, Second Street, Choolaimedu, Chennai - 600094, Tamilnadu, India
Tel. No.:	91-44-23611826
Fax No.:	91-44-23611831
E-Mail :	sakthiferro2005@gmail.com krupaandco@yahoo.co.in
Website :	http://www.sakthiferroalloys.com
Warehouse / Godown :	#102, Sumanthrambedu Village, Irungattu Kottaipost, Sriperumbudur Taluka, Kanchpura, Tamilnadu, India
Tel No.:	91-44-27157961
Branch Office :	Plot No. 53, SIDCO Ambattur Industrial Estate, Ambattur, Chennai – 600058, Tamilnadu, India

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Kannai Ahnaidu Anandh

Designation :

Managing director

Address :

26, Loganatha Nagar, II Street, Choolaimedu, Chennai – 600094, Tamilnadu, India

Date of Birth/Age :

15.09.1966

Date of Appointment :

29.03.2005

PAN No.:

ACWPA3673R

DIN No.:

01827481

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	U27106TN2004PLC054718	LAKSHMI BALAJI ALLOYS LIMITED	Director	24/11/2004	24/11/2004	-	Active	NO
2	U27101TN2005PTC055788	SAKTHI FERRO ALLOYS (INDIA) PRIVATE LIMITED	Managing director	29/03/2005	29/03/2005	-	Active	NO
3	U29259TN2007PTC065667	JINSUNG AUTO SOLUTIONS PRIVATE LIMITED	Director	10/12/2007	10/12/2007	-	Active	NO
4	U74999TN2007PTC065757	NEST FACILITY MANAGEMENT SERVICES PRIVATE LIMITED	Director	17/12/2007	17/12/2007	10/10/2013	Active	NO
5	U74910TN2008PTC066009	NEST SOLUTIONS AND SERVICES PRIVATE LIMITED	Director	09/01/2008	09/01/2008	-	Strike off	NO
6	U27106TN2008PLC066844	DRA INDUSTRIES LIMITED	Director	14/09/2010	27/01/2010	30/11/2013	Active	NO
7	U74899TN1992PLC077246	GOLD PET POLYMERS LIMITED	Additional director	02/08/2010	02/08/2010	10/09/2011	Active	NO
8	U45202TN2010PTC078214	UNO ENGINEERING AND CONSTRUCTION INDIA PRIVATE LIMITED	Director	24/11/2010	24/11/2010	-	Strike off	NO
9	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director	20/12/2010	20/12/2010	-	Active	NO
10	U45206TN2011PTC080293	SAKTHI FOUNDATIONS PRIVATE LIMITED	Managing director	25/04/2011	25/04/2011	-	Active	NO
11	U45203TN2011PTC080294	SAKTHI PROPERTY DEVELOPERS INDIA PRIVATE LIMITED	Managing director	25/04/2011	25/04/2011	-	Active	NO
12	U29196TN2007PTC063106	PERFECT WEIGHING SYSTEM PRIVATE LIMITED	Director	06/06/2011	06/06/2011	-	Active	NO
13	U28113TN2011PTC081631	SAKTHI STAMPINGS INDIA PRIVATE LIMITED	Director	25/07/2011	25/07/2011	-	Active	NO
14	U28990TN2012PTC084359	MAITHRI STEELS PRIVATE LIMITED	Director	07/02/2012	07/02/2012	-	Active	NO
15	U27106TN2010PTC074826	EMJAY STEEL UDYYOG PRIVATE LIMITED	Managing director	03/12/2012	24/11/2012	07/12/2012	Active	NO
16	U74140KA2009PTC049340	SFS EQUIPMENTS PRIVATE LIMITED	Additional director	27/06/2014	27/06/2014	-	Active	NO
17	U27106TN2014PTC097573	SAKTHI STEEL INDUSTRIES INDIA PRIVATE LIMITED	Director	30/09/2014	30/09/2014	-	Active	NO

Name :

Mr. Divakar

Designation :

Director

Address :

No. 1/81, Kondanjencheri, Perambakkam, Panchayat, Tiruvallur – 631402, Tamilnadu, India

Date of Birth/Age :

05.03.1973

Date of Appointment :

22.08.2011

PAN No.:

AEOPD0258F

DIN No.:

01989005

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	U24117TN1996PTC036907	SUBA ORGANICS PRIVATE LIMITED	Additional director	18/04/2007	18/04/2007	-	Active	NO
2	U45206TN2011PTC080293	SAKTHI FOUNDATIONS PRIVATE LIMITED	Director	26/09/2012	27/04/2011	-	Active	NO
3	U45203TN2011PTC080294	SAKTHI PROPERTY DEVELOPERS INDIA PRIVATE LIMITED	Additional director	27/04/2011	27/04/2011	-	Active	NO
4	U28113TN2011PTC081631	SAKTHI STAMPINGS INDIA PRIVATE LIMITED	Director	25/07/2011	25/07/2011	-	Active	NO
5	U27101TN2005PTC055788	SAKTHI FERRO ALLOYS (INDIA) PRIVATE LIMITED	Director	22/08/2011	22/08/2011	-	Active	NO
6	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director	22/08/2011	22/08/2011	-	Active	NO
7	U29259TN2007PTC065667	JINSUNG AUTO SOLUTIONS PRIVATE LIMITED	Director	19/10/2011	19/10/2011	-	Active	NO
8	U74140KA2009PTC049340	SFS EQUIPMENTS PRIVATE LIMITED	Additional director	27/06/2014	27/06/2014	-	Active	NO
9	U27106TN2014PTC097573	SAKTHI STEEL INDUSTRIES INDIA PRIVATE LIMITED	Director	30/09/2014	30/09/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajendran
Designation :	Accountant

MAJOR SHAREHOLDERS

AS ON 30.09.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Dealer, Trader and Importer of Ferrous and Non-Ferrous Scrap.

Products :

Product Description	Item Code No. (ITC Code)
Iron Steel Scrap	72041000

Brand Names :

--

Agencies Held :

--

Exports :

Not Available

Imports :

Products :

Scrap

Countries :

· UK

· Singapore

· Malaysia

Terms :

Selling :

Cash and Cheque

Purchasing :

Cash and Cheque

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

· Eurasia Steel Trading

· IZ Pakatjaya Restu Sdn Bhd

· Nexi S Impex FZE

· Orient Metal Sdn Bhd

· Sai Prima Enterprise

· Schrott Wetzel GmbH

· Theo Steil GmbH

· R.K.S. Steels

· Sabari Exim Private Limited

· Sai Sheet Stampings Private Limited

· Sri Ayya Steels Private Limited

· Sri Sai Enterprises

· Steel Authority of India Limited

· Veer Industrial Suppliers

· YSI Automotive Private Limited

· Bharat Steel Syndicate

· Kl Nantha Kuma

Customers :

· Balaji Impex

· Dcw Limited

· Mahee Engg Private Limited

· Akr Infra Strcture Limited

· Goyalispat Limited

· Jothi Melters India Private Limited

· Prathuksha Power Gen Private Limited

· Tamilnadu News Print

· Andpapaer Mills

· Deepak Kumar Bhatia

· Sakthi Traders

· Liners India Limited

· Sri Viswa Foundries Private Limited

· Aaa Plus Trading Private Limited

· Agni Steels Private Limited

· Aishwaraya Stamping

· Aln Industries

· Ankit Ispat Private Limited (Unit-I)

· Ankit Ispat Private Limited (Unit -Ii)

· Annai Steel Traders

No. of Employees :

200 (Approximately)

Bankers :

· Axis Bank Limited

Trishul 3^rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad – 380006, Gujarat, India

· United Bank of India

No. 117 59, Kutchery Road, Mylapore Branch, Chennai – 600004, Tamilnadu, India

· City Union Bank Limited

Purasawalkam, Chennai – 600084, Tamilnadu, India

· State Bank of India

Overseas Branch, No. 86, Rajaji Salal, Chennai – 600001, Tamilnadu, India

· HDFC Bank Limited

HDFC Bank House Senapati Bapat Marg, Lower Parel [West], Mumbai – 400013, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Rupee term loans from banks	8.960	5.355
Rupee term loans from others	0.000	1.084
SHORT TERM BORROWINGS
Working capital loans from banks	665.617	734.168
Total	674.577	740.607

Banking Relations :	--
Auditors :
Name :	Krupa and Company Chartered Accountants
Address :	First Floor 5, Kumbhat Complex, 700, Poonamallee High Road,Aminjikarai, Chennai – 600029, Tamilnadu, India
PAN No.:	AABPI2273A
Associates :	· Sakthi Steel Industries Limited CIN No.: U27310TN2010PLC078488 · Sakthi Foundations Private Limited CIN No.: U45206TN2011PTC080293
Other Related Parties :	· Sakthi Traders · Jinsung Auto Solutions Private Limited · Nest Aviation Academy · Nest Aviation Academy · New Royal Steel Traders
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Jinsung Auto Solutions Private Limited CIN No.: U29259TN2007PTC065667

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9,400,000	Equity Shares	Rs.10/- each	Rs.94.000 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	94.000	94.000	80.000
(b) Reserves & Surplus	425.710	371.442	271.091
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	70.000
Total Shareholders’ Funds (1) + (2)	519.710	465.442	421.091
(3) Non-Current Liabilities
(a) Long-term borrowings	66.030	42.964	29.016
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.148
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	66.030	42.964	29.164
(4) Current Liabilities
(a) Short term borrowings	667.957	735.987	554.510
(b) Trade payables	973.579	651.311	371.952
(c) Other current liabilities	15.908	18.470	4.501
(d) Short-term provisions	26.380	23.937	37.760
Total Current Liabilities (4)	1683.824	1429.705	968.723
TOTAL	2269.564	1938.111	1418.978
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	148.653	146.684	129.173
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.006	0.746	0.015
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	39.800	39.800	33.636
(c) Deferred tax assets (net)	4.723	0.000	0.000
(d) Long-term Loan and Advances	0.018	0.006	0.006
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	193.200	187.236	162.830
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	395.161	145.889	283.778
(c) Trade receivables	1446.615	1388.516	812.444
(d) Cash and cash equivalents	39.156	33.652	29.982
(e) Short-term loans and advances	144.552	127.235	67.937
(f) Other current assets	50.880	55.583	62.007
Total Current Assets	2076.364	1750.875	1256.148
TOTAL	2269.564	1938.111	1418.978

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		TOTAL	5829.483	5904.105	4196.000
Less	EXPENSES		5731.980	5814.575	4065.100
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		97.503	89.530	130.900
Less/ Add	DEPRECIATION/ AMORTISATION		22.514	22.174	22.700
	OPERATING PROFITS		74.989	67.356	108.200
Less	PROVISION FOR TAX		20.721	23.255	37.000
	PROFIT/ (LOSS) AFTER TAX		54.268	44.101	71.200
	Earnings/ (Loss) Per Share (Rs.)		5.77	469.16	890.00

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	3.37	3.55	7.81
Return on Investment (ROI) (PBT/Networth)		0.14	0.14	0.26
Debt Equity Ratio (Total Debt /Networth)		1.41	1.67	1.39
Current Ratio (Current Asset/Current Liability)		1.23	1.22	1.30

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	80.000	94.000	94.000
Reserves & Surplus	271.091	371.442	425.710
Share Application money pending allotment	70.000	0.000	0.000
Net worth	421.091	465.442	519.710
Long-term borrowings	29.016	42.964	66.030
Short term borrowings	554.510	735.987	667.957
Total borrowings	583.526	778.951	733.987
Debt/Equity ratio	1.386	1.674	1.412

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)
Total Income	4196.000	5904.105	5829.483
		40.708	(1.264)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	4196.000	5904.105	5829.483
Profit	71.200	44.101	54.268
	1.70%	0.75%	0.93%

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	Yes
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	----------
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

SR. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10481026	27/02/2014	5,100,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP AMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B97799647
2	10485604	26/02/2014	2,040,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP AMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	C00745943
3	10480896	06/02/2014	3,150,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP AMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B97736565
4	10448450	22/07/2013	2,250,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	B84744887
5	10390313	30/03/2013 *	610,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, NO.86.RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA	B75837203
6	10287127	29/04/2011	2,670,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP AMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B13022413
7	10201593	04/02/2012 *	820,000,000.00	CITY UNION BANK LIMITED	OLD NO.42,NEW NO.107, DR. ALAGAPPA ROAD, PURASAIWALKAM, CHENNAI, TAMIL NADU - 600084, INDIA	B32330276

* Date of modification Charges

UNSECURED LOANS

PARTICULARS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Rupee term loans from others	57.070	36.525
SHORT TERM BORROWINGS
Loans and advances from related parties	2.340	1.819
Total	59.410	38.344

TURNOVER

The company has achieved a turnover of Rs.5785.923 Millions during the financial year 2013-14 as against Rs.5872.157 Millions during the previous year.

PROFITABILITY

The Company has earned a Profit of Rs 54.268 Millions during the year.

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. 63.45
UK Pound	1	Rs. 95.99
Euro	1	Rs. 75.28

INFORMATION DETAILS

Information Gathered by :	KAR
Analysis Done by :	NYA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.