MIRA INFORM REPORT

Report No. :	302917
Report Date :	13.01.2015

IDENTIFICATION DETAILS

Name :	DEWAS METAL SECTIONS LIMITED
Registered Office :	Village Amona, A.B. Road, Dewas – 455001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	23.03.1979
Com. Reg. No.:	10-001501
Capital Investment / Paid-up Capital :	Rs. 38.845 Millions
CIN No.: [Company Identification No.]	L02710MP1979PLC001501
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The subject is engaged in manufacturing and selling of Metal sections and components.
No. of Employees :	Not Available

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. Profitability of the company is low. However, the rating reflects extensive experience of the promoters of more than three decades in the steel industry supported by diversified manufacturing portfolio spread across steel products, engineering products, packaging solution and sound financial base 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 abd condition.

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	ICRA
Rating	Term Loan = BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	October 2014

Rating Agency Name	ICRA
Rating	Bank Guarantee = A3
Rating Explanation	Moderate degree of safety and high credit risk.
Date	October 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/ Factory 1 :	Village Amona, A.B. Road, Dewas – 455001, Madhya Pradesh, India
Tel. No.:	91-7272-258526-27
Fax No.:	91-7272-258872
E-Mail :	mail@dmsl.co.in
Factory 2 :	Gat No. 670/2 A , Koregoan Bhima, Taluka Shirur, Pune – 412208, Maharashtra India
Tel. No.:	91-2137-321698
E-Mail :	91-2137-252252

DIRECTORS

As on 31.03.2014

Name :

Mr. Anjan Shah

Designation :

Whole Time Director

Address :

16FC-Scheme No.5, Vijay Nagar, Indore, Madhya Pradesh, India

Date of Appointment :

01.04.2008

DIN No.:

00696395

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	U27105MP1981PTC001713	DEWAS TECHNO PRODUCTS PRIVATE LIMITED	Director	23/05/2006	23/05/2006	-	Active	NO
2	U67120MP1994PTC008874	POOJA RESOURCES PRIVATE LIMITED	Director	20/03/2008	20/03/2008	-	Active	NO
3	L02710MP1979PLC001501	DEWAS METAL SECTIONS LIMITED	Whole-time director	01/04/2008	01/04/2008	-	Active	NO

Name :

Mr. Aradhya Baheti

Designation :

Director

Address :

22, Old Palasia, A. B. Road, Indore, Madhya Pradesh, India

Date of Appointment :

30.10.2001

DIN No.:

00660745

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	L02710MP1979PLC001501	DEWAS METAL SECTIONS LIMITED	Director	30/10/2001	30/10/2001	-	Active	NO
2	U34300MP1974PLC001274	DEE TEE INDUSTRIES LIMITED	Director	28/12/2001	28/12/2001	-	Active	NO
3	U36102MP1987PTC004093	DECOSTYLE TECHNICS PRIVATE LIMITED	Director	16/02/2004	16/02/2004	-	Active	NO

Name :

Mr. Ram Airen

Designation :

Director

Name :

Mr. K. K. Nagar

Designation :

Director

KEY EXECUTIVES

Name :	Mr. L. K. Shah
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1716700	44.17
Bodies Corporate	1194192	30.73
Sub Total	2910892	74.90
(2) Foreign
Sub Total	-	-
Total shareholding of Promoter and Promoter Group (A)	2910892	74.90
(B) Public Shareholding
(1) Institutions
Sub Total	-	-
(2) Non-Institutions
Bodies Corporate	280200	7.21
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	572408	14.73
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	122900	3.16
Sub Total	975508	25.10
Total Public shareholding (B)	975508	25.10
Total (A)+(B)	3886400	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	3886400	100.00

BUSINESS DETAILS

Line of Business :	The subject is engaged in manufacturing and selling of Metal sections and components.
Products :	Metal sections and components
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

No. of Employees :

Not Available

Bankers :

Banker Name	State Bank of India
Branch Address	Commercial Branch, A.B. Road (Near Gpo), Indore - 455001, Madhya Pradesh, India
Person Name (With Designation)	Not Available
Contact Number	Not Available
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Term Loans From Bank
State Bank of India - Commercial Branch Indore	80.183	65.828
From ICICI Bank Car Loan	0.627	1.555
Short Term Borrowing
Working Capital Loan	201.012	194.500
Total	281.822	261.883

Short Term Borrowing

Working capital Loan from SBl- Commercial Branch, lndore is secured by first charge over the company’s stock of raw materials, Finished Goods, stock in process, stores and spares, Packaging Material including goods in transit, book debts and at their factory premises at village Amona, District – Dewas (Madhta Pradesh) and at such other places as approved by the bank from time to time were secured by personal guarantee of three Dersons including 2 Directors.

Auditors :
Name :	P. D. Nagar and Company Chartered Accountant
Address :	Indore, Madhya Pradesh, India
Memberships :	Not Available
Collaborators :	Not Available
Other parties where Key Management personnel and their relative have significant influence :	Dee Tee Industries Limited Dewas Techno Products Private Limited Decostyle Technics Private Limited Aaradhya Investment and Finance Private Limited Pooja Resouces Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs. 45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3886400	Equity Shares (including 210000 Equity Shares of Rs.10/- Each issued as fully paid bonus shares,1300000 Right Equity shares of Rs 10 each and 12,86,400 Equity shares allotted against Convertible warrant)	Rs.10/- each	Rs. 38.864 Millions
	Less : Calls in Arrears 4700 shares		Rs. 0.019 Million
	Total		Rs. 38.845 Millions

(a) Reconciliation of the number of shares

Particulars	31.03.2014
Shares outstanding at the commencement of the year	3.886
Equity share capital issued on conversion	0.000
shares outstand ng at the close of the year	3.886

(b) List of shareholders holding more than 5%

Particulars	31.03.2014
	No. of Shares	% of holding
Aradhya Invesrment Private Limited	864492
Aradhya Baheti	801300	22.24
Pooia Resources Private Limited	329700	8.48
Anjan Shah	242100	6.23
Laxmikant Shah	204900	5.28

(c) Rights, Preference and Restriction attached to shares.

The company has one class of equity shares having par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual Genera Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distributing of all preferential amounts, in proportion to their shareholding.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	38.845	38.845
(b) Reserves & Surplus	171.667	166.711
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	210.512	205.556
(3) Non-Current Liabilities
(a) long-term borrowings	85.523	98.598
(b) Deferred tax liabilities (Net)	27.457	26.239
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	112.980	124.837
(4) Current Liabilities
(a) Short term borrowings	249.545	215.203
(b) Trade payables	81.641	87.036
(c) Other current liabilities	56.622	82.957
(d) Short-term provisions	9.028	4.708
Total Current Liabilities (4)	396.836	389.904
TOTAL	720.328	720.297
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	233.427	235.803
(ii) Intangible Assets	2.021	2.432
(iii) Capital work-in-progress	21.709	13.734
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	2.582	3.373
(e) Other Non-current assets	0.268	0.537
Total Non-Current Assets	260.007	255.879
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	196.779	259.541
(c) Trade receivables	159.934	161.414
(d) Cash and cash equivalents	29.187	14.742
(e) Short-term loans and advances	74.074	28.341
(f) Other current assets	0.347	0.380
Total Current Assets	460.321	464.418
TOTAL	720.328	720.297

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	1356.077	1366.778
		Other Income	7.056	3.339
		TOTAL	1363.133	1370.117
Less	EXPENSES
		Cost of Materials Consumed	1195.387	1117.922
		Purchases of Stock-in-Trade	6.759	12.864
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(39.179)	28.074
		Direct Manufacturing Expenses	30.563	26.195
		Employees benefits expense	37.446	38.722
		Other expenses	55.944	42.702
		TOTAL	1286.920	1266.479
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		76.213	103.638
Less	FINANCIAL EXPENSES		47.976	63.419
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		28.237	40.219
Less/ Add	DEPRECIATION/ AMORTISATION		21.326	19.985
	PROFIT/ (LOSS) BEFORE TAX		6.911	20.234
Less	TAX		2.574	10.297
	PROFIT/ (LOSS) AFTER TAX		4.337	9.937
Add	Excess Provision Written Back		0.618	0.158
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		111.547	105.963
Less	APPROPRIATIONS
		Proposed Dividend and Tax thereon	0.0000	4.511
		Total	0.000	4.511
	BALANCE CARRIED TO THE B/S		116.502	111.547
	EARNINGS IN FOREIGN CURRENCY		6.437	3.402
	Earnings Per Share (Rs.)		1.12	2.56

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	0.32	0.73
Operating Profit Margin (PBDIT / Sales)	(%)	5.62	7.58
Return on Total Assets (PBT/Total Assets}	(%)	0.99	2.86
Return on Investment (ROI) (PBT/Networth)		0.03	0.10
Debt Equity Ratio (Total Debt /Networth)		1.59	1.53
Current Ratio (Current Asset/Current Liability)		1.16	1.19

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	38.845	38.845
Reserves & Surplus	166.711	171.667
Net worth	205.556	210.512
long-term borrowings	98.598	85.523
Short term borrowings	215.203	249.545
Total borrowings	313.801	335.068
Debt/Equity ratio	1.527	1.592

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	1366.778	1356.077
		(0.783)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	1366.778	1356.077
Profit	9.937	4.337
	0.73%	0.32%

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two 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	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
Inter Corporate Deposits	2.588	3.000
From Directors	2.125	2.125
From Others	0.000	26.089
Short Term Borrowing
Inter Corporate Deposits	11.162	18.627
From Directors	2.400	0.900
From Others	34.971	1.176
Total	53.246	51.917

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	CHARGE HOLDER	ADDRESS	Service Request Number (SRN)
1	10176142	23/11/2013 *	538,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, A.B. ROAD (NEAR GPO), INDORE - 455001, MADHYA PRADESH, INDIA	C09520511

* Date of charge modification

OPERATION

Turnover net of excise duty for the financial year 2013-14 concluded at 1356.100 millions which is around 0.78% lower than the previous year turnover of 1366.800 millions. Total Production stood at 25664 M.T. which is higher by 3 % over previous year production of 24858 M.T. The Earnings also lower from Rs. 9.900 millions in previous year to Rs.4.300 millions in the current year.

Deferred tax liability of 121.700 millions has been made for the accounting year, the total accumulated deferred tax as on 31.3.2014 is 27.457 millions. Total reserve EXCLUDING deferred tax liability is 171.378 millions and including provisions of deferred tax it would be 198.835 millions.

EXPORT

This year total export made was valued at 6.026 millions against 3.291 millions in previous year.

CORPORATE IN FORMATIONS

Dewas Metal section Limited. is a limited company in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in manufacturing and selling of Metal sections and components.

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF ENDED 30^TH SEPTEMBER 2014

Sr. No		Standalone
		Quarter Ended		Half Year Ended
		30.09.2014	30.06.2014	30.09.2014
		Unaudited	Unaudited	Unaudited
1	Income From Operations
	a. Net Sales/ Income from Operations (Net of Excise Duty)	313.445	327.436	640.881
	b. Other Operating Income	0.505	0.607	1.112
	Total Income from Operations (Net)	313.950	328.043	641.993
2	Expenditure
	a. (Increase)/ Decrease in stocks	(24.580)	20.871	(9.709)
	b. Cost of material Consumed	296.140	253.812	549.952
	c. Purchase of Stock-in trade	0.000	0.000	0.000
	d. Staff Cost	13.106	12.449	25.555
	e. Depreciation and Amortisation Expenses	5.640	5.640	11.280
	f. Other expenses	19.572	16.870	36.442
	Total Expenses	309.878	306.642	619.520
3	Profit from Operations before Other Income, Interest and Exceptional Items	4.072	18.401	22.473
4	Other Income	-	-	-
5	Profit from ordinary activities before finance cost & exceptional items	4.072	18.401	22.473
6	Finance Costs	16.310	17.329	33.639
7	Profit from ordinary activities after finance costs & exceptional items	(12.238)	1.072	(11.166)
8	Exceptional items	-	-	-
9	Profit from ordinary activities before tax	(12.238)	1.072	(11.166)
10	Tax Expense	(0.137)	0.200	0.063
11	Net Profit from ordinary activity after tax	(12.101)	0.872	(11.229)
12	Extraordinary Items	-	-	-
13	Net Profit After Tax	(12.101)	0.872	(11.229)
14	Paid-up equity share capital (face value of Rs.10 per share)	38.845	38.845	38.845
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year	-	-	-
16	Earnings Per Share (of Rs.10 each) (not annualized)
	Basic and Diluted EPS	(3.12)	0.22	(2.89)
A	PARTICULARS OF SHAREHOLDING
	Public Shareholding
	- No. of shares	975508	975508	975508
	- Percentage of shareholding	25.10	25.10	25.10
	Promoter & Promoter Group Shareholding
	a) Pledged/Encumbered
	- No. of shares	Nil	Nil	Nil
	- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of shareholding (as a % of the total share capital of the company)	Nil	Nil	Nil
	b) Non-encumbered
	- No. of shares	2910892	2910892	2910892
	- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	100.00	100.00	100.00
	- Percentage of shareholding (as a % of the total share capital of the company)	74.90	74.90	74.90

	Particulars	Quarter ended 30.09.2014
B	Investor Complaints
	Pending at the beginning of the quarter	Nil
	Received during the quarter	0
	Disposed off during the quarter	0
	Remaining unresolved at the end of the quarter	Nil

SSTATEMENT OF ASSETS AND LIABILITIES

(Rs. in Million)

SOURCES OF FUNDS	As at 30.09.2014 (Unaudited)
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	38.845
(b) Reserves & Surplus	160.177
Sub-total Shareholders' Funds	199.022
(2) Minority Interest	--
(3) Non-Current Liabilities
(a) long-term borrowings	113.587
(b) Deferred tax liabilities (Net)	0.00
(c) Other long term liabilities	27.457
(d) long-term provisions	0.000
Sub Total Non-Current Liabilities	141.044
(4) Current Liabilities
(a) Short term borrowings	252.134
(b) Trade payables	117.384
(c) Other current liabilities	45.235
(d) Short-term provisions	22.118
Sub Total- Current Liabilities	436.871
TOTAL- EQUITY AND LIABILITIES	776.937
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible Assets	230.736
(ii) Intangible Assets	1.816
(iii) Capital work-in-progress	43.177
(b) Deferred tax assets (net)	0.000
(c) Long-term Loan and Advances	16.271
(d) Other Non-current assets	0.134
Sub Total- Non-current assets	292.134
(2) Current assets
(a) Current investments	0.000
(b) Inventories	246.216
(c) Trade receivables	157.370
(d) Cash and cash equivalents	18.296
(e) Short-term loans and advances	62.287
(f) Other current assets	0.634
Sub Total- Current assets	484.803
TOTAL ASSETS	776.937

NOTE:

1. The above result are taken in record by the board in their meeting held on 31.10.2014
2. The adjustment on account of deferred taxation as per Accounting Standard 22 shall be made at the end of the year.
3. The company’s primary segment is section and Components. As per company’s business activity falls within single primary business segment, the disclosure requirements of AS-17 in this regard are not applicable.
4. Figures for the previous period are reclassified/re-grouped, wherever necessary, to correspond with

FIXED ASSETS

Tangible Assets

• Free Hold Land
• Factory Building
• Road and Site Development
• Plant and Machinery
• Electrical Installation
• Furniture and Fixtures
• Light Vehicle
• Computer
• Office Equipment

Intangible Asset

• Design Software

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.62.16
UK Pound	1	Rs.94.28
Euro	1	Rs.73.73

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	KLS

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	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--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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