MIRA INFORM REPORT

Report No. :	331254
Report Date :	09.07.2015

IDENTIFICATION DETAILS

Name :	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED
Registered Office :	Dhandari Industrial Focal Point, Sherpur Kalan, Ludhiana – 141010, Punjab
Tel. No.:	91-161-2670530
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	21.08.1961
Com. Reg. No.:	16-002397
Capital Investment / Paid-up Capital :	Rs. 115.200 Million
CIN No.: [Company Identification No.]	U27104PB1961PLC002397
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	JLDU00181G
PAN No.: [Permanent Account No.]	AAACU2091E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of alloy steel of different grades.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 800000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an old and established company incorporated during the year 1961 having a moderate track record. The rating is constrained on account of continuous losses incurred by the company from its two years of operation. Further the borrowings recorded are also huge. However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	CARE
Rating	Long-term bank facilities: BB-
Rating Explanation	Moderate risk of default.
Date	January 2015

Rating Agency Name	CARE
Rating	Short-term bank facilities: A4
Rating Explanation	Minimal degree of safety and carry very high credit risk.
Date	January 2015

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Raj Kumar Saigal
Designation :	Finance Controller
Contact No.:	91-161-2670530
Date :	15.06.2015

LOCATIONS

Registered Office/ Factory:	Dhandari Industrial Focal Point, Sherpur Kalan, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-2670719/ 2670530
Fax No.:	91-161-5066008
E-Mail :	rksaigal@upperindiasteel.com sales@upperindiasteel.com
Website :	www.upperindiasteel.com
Branch Offices :	Located at · New Delhi · Chennai · Ambala City

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Gursimram Singh Grewal

Designation :

Managing Director

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

01.12.1964

Qualification :

Bachelors in Economics

Date of Appointment :

11.01.2007

PAN No.:

ABYPG9316J

DIN No.:

01139494

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	U27320PB1964PLC002516	UPPER INDIA SPECIAL CASTINGS LIMITED	Director	29-04-1993	29-04-1993	01-12-2007	Active	NO
2	U45202PB2006PTC030293	EXCEL SPORTS PRIVATE LIMITED	Director	05-06-2006	05-06-2006	16-08-2006	Active	NO
3	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Managing director	11-01-2007	11-01-2007	-	Active	NO

Name :

Mr. Gurlal Singh Grewal

Designation :

Whole-time director

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

04.04.1938

Qualification :

Graduate

Date of Appointment :

29.09.1973

DIN No.:

00302597

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	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Whole-time director	29-09-1973	29-09-1973	-	Active	NO
2	U27320PB1964PLC002516	UPPER INDIA SPECIAL CASTINGS LIMITED	Director	26-03-1993	26-03-1993	-	Active	NO
3	U01122PB1994PTC014755	INDUS FLORA TECH PRIVATE LIMITED	Director	27-06-1994	27-06-1994	-	Active	NO
4	U01119TN1995PLC029830	INDUS FLORABASE LIMITED	Director	13-02-1995	13-02-1995	18-08-2009	Active	NO
5	U15205PB2000PTC023238	NUTRIMAX FOOD PRIVATE LIMITED	Managing director	06-01-2000	06-01-2000	-	Active	NO

Name :

Pritpal Singh Grewal

Designation :

Director

Address :

655, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

15.03.1931

Date of Appointment :

10.01.2007

DIN No.:

00344057

Name :

Mr. Rajindar S. Grewal

Designation :

Director

Address :

465 Mooresfield Street, Elgin, Illinois, 60124, , United States Of America

Date of Birth/Age :

22.01.1965

Date of Appointment :

06.03.2007

DIN No.:

01745568

PAN No.:

CAVPS7478B

Name :

Mr. Ashok Singh Garcha

Designation :

Director

Address :

B-XX-2906, Gurdev Nagar, Civil Lines, Ludhiana, Punjab, India

Date of Birth/Age :

18.05.1964

Date of Appointment :

29.09.2001

DIN No.:

00344374

PAN No.:

ABKPG4763H

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	U29212PB1972PTC003094	ASHOK ENGINEERING AND AGRICULTURAL INDUSTRIES PRIVATE LIMITED	Director	19-02-1988	19-02-1988	-	Active	NO
2	U27104PB1961PLC002397	UPPER INDIA STEEL MFG AND ENGINEERING CO LIMITED	Director	29-09-2001	29-09-2001	-	Active	NO

Name :

Mr. Gurmohan Singh Grewal

Designation :

Director

Address :

1746, S. Highland Drive, Sparta, WI54656, U.S.A

Date of Birth/Age :

04.10.1938

Date of Appointment :

29.09.2001

DIN No.:

00791151

PAN No.:

AFMPG5409A

Name :

Mr. Kushal Grewal

Designation :

Whole-time director

Address :

653, Gurdev Nagar, Pakhowal Road, Ludhiana, Punjab, India

Date of Birth/Age :

22.03.1964

Qualification :

Master’s in Business Administration

Date of Appointment :

11.01.2007

DIN No.:

01191519

Name :

Mr. Saminder Singh Grewal

Designation :

Whole-time director

Address :

654, Gurdev Nagar, Ludhiana - 141001, Punjab, India

Date of Appointment :

04.10.2006

DIN No.:

00989278

Name :

Mr. Sant Prasad Singh Grewal

Designation :

Director

Address :

Box 102, 1229 Maple Street, Fenwick Ontario, Los1co, , Canada

Date of Appointment :

29.09.2001

DIN No.:

00552395

KEY EXECUTIVES

Name :	Mr. Raj Kumar Saigal
Designation :	Finance Controller
Name :	Mr. Raj Kumar Saigal
Designation :	Secretary
Address :	168 Phase Ii, Urban Estate, Dugri Road, Ludhiana - 141002, Punjab, India
Date of Appointment :	01.04.1990
PAN No.:	AEBPS2331D

MAJOR SHAREHOLDERS

AS ON 30.09.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Directors or relatives of Directors	75.65
Other top fifty shareholders	24.35
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of alloy steel of different grades.

Products :

Item Code No.	Product Description
72283011	Bars and Rods

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Cash and Credit (30, 60, 90 Days)

Purchasing :

Cash and Credit (30, 60, 90 Days)

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

End Users and OEMs

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

No. of Employees :

500 (Approximately)

Bankers :

Kotak Mahindra Bank Limited, 36-38 A, Nariman Bhavan, 227,D, Nariman Point, Mumbai - 400021, Maharashtra, India

Banker Name	Canara Bank
Branch Address	Bharat Nagar Chowk, Ludhiana - 141001, Punjab, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loans from banks	0.000	4.649
SHORT TERM BORROWING
Working capital loans from banks	667.603	734.265
Total	667.603	738.914

Auditors :
Name :	D. Sharma and Company Chartered Accountants
Address :	E.R. 18, Pacca Bagh, Civil Lines, Jallandar, Punjab, India
Income-tax PAN of auditor or auditor's firm :	AAAFD5551H
Memberships :	Not Available
Collaborators :	Not Available
Enterprises/Trusts over which Key Management Personnel have control and with whom transactions have been made during the financial year :	Satinder Kaur Education Trust Bhai Chetan Singh Education Trust

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Million
2000000	Preference Shares	Rs.10/- each	Rs. 20.000 Million
	Total		Rs. 120.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9600000	Equity Shares	Rs.10/- each	Rs. 96.000 Million
1920000	Preference Shares	Rs.10/- each	Rs. 19.200 Million
	Total		Rs. 115.200 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	115.200	115.200	115.200
(b) Reserves & Surplus	159.207	300.906	472.591
(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)	274.407	416.106	587.791
(3) Non-Current Liabilities
(a) long-term borrowings	4.100	117.649	120.430
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	4.100	117.649	120.430
(4) Current Liabilities
(a) Short term borrowings	818.523	862.061	830.562
(b) Trade payables	105.868	26.594	30.002
(c) Other current liabilities	29.117	37.436	45.489
(d) Short-term provisions	0.000	0.000	2.901
Total Current Liabilities (4)	953.508	926.091	908.954
TOTAL	1232.015	1459.846	1617.175
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	564.257	487.177	476.997
(ii) Intangible Assets	1.984	2.663	3.536
(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	0.500	0.500	0.500
(c) Deferred tax assets (net)	0.000	0.000	22.085
(d) Long-term Loan and Advances	106.191	22.196	15.895
(e) Other Non-current assets	15.824	15.895	0.000
Total Non-Current Assets	688.756	528.431	519.013
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	336.608	524.622	490.512
(c) Trade receivables	148.982	339.921	508.994
(d) Cash and cash equivalents	26.605	25.344	52.897
(e) Short-term loans and advances	31.064	41.528	45.759
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	543.259	931.415	1098.162
TOTAL	1232.015	1459.846	1617.175

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1816.437	2392.360	2441.017
	Other Income	11.982	9.577	12.342
	TOTAL (A)	1828.419	2401.937	2453.359
Less	EXPENSES
	Cost of Materials Consumed	1140.925	1641.046	1509.053
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	67.256	(42.327)	(22.441)
	Employees benefits expense	231.842	288.521	277.755
	Other expenses	416.766	503.417	510.925
	TOTAL (B)	1856.789	2390.657	2275.292
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	(28.370)	11.280	178.067
Less	FINANCIAL EXPENSES (D)	141.790	134.661	127.858
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(170.160)	(123.381)	50.209
Less/ Add	DEPRECIATION/ AMORTISATION (F)	54.703	47.735	42.519
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(224.863)	(171.116)	7.690
Less	TAX (H)	(83.995)	(0.251)	(2.057)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	(140.868)	(170.865)	9.747
	EARNINGS IN FOREIGN CURRENCY
	Export of Goods on FOB basis	179.735	193.926	134.078
	TOTAL EARNINGS	179.735	193.926	134.078
	IMPORTS
	Raw Materials	245.900	833.052	525.260
	Components and Stores parts	6.585	1.515	0.784
	TOTAL IMPORTS	252.485	834.567	526.044
	Earnings / (Loss) Per Share (Rs.)	(14.68)	(17.80)	0.66

Particulars	31.03.2015
Sales Turnover (Approximately)	2000.000

The above information has been parted by Mr. Raj Kumar Saigal.

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	4.649	6.881	7.888
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	419.476	123.988	152.147

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(7.76)	(7.14)	0.40
Operating Profit Margin (PBIDT/Sales)	(%)	(1.56)	0.47	7.29
Return on Total Assets (PBT/Total Assets}	(%)	(18.26)	(11.73)	0.48
Return on Investment (ROI) (PBT/Networth)		(0.82)	(0.41)	0.01
Debt Equity Ratio (Total Debt /Networth)		3.01	2.37	1.63
Current Ratio (Current Asset/Current Liability)		0.57	1.01	1.21

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	115.200	115.200	115.200
Reserves & Surplus	472.591	300.906	159.207
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	587.791	416.106	274.407
long-term borrowings	120.430	117.649	4.100
Short term borrowings	830.562	862.061	818.523
Current Maturities of Long-Term Debts	7.888	6.881	4.649
Total borrowings	958.880	986.591	827.272
Debt/Equity ratio	1.631	2.371	3.015

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2441.017	2392.360	1816.437
		(1.993)	(24.073)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2441.017	2392.360	1816.437
Profit	9.747	(170.865)	(140.868)
	0.40%	(7.14%)	(7.76%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

PERFORMANCE OF THE COMPANY

Due to cash losses in the financial year 2012-13 and 2013-14 the working capital of the company is squeezed which has affected the production as well as sales. The sale of company has come down from Rs 2664.000 Million to Rs 2012.300 Million. Similarly the production of finished goods has come down from 48561MT to 36692MT.

UNSECURED LOAN

Particulars	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWING
Term loans from others	4.100	0.000
Deposits from directors	0.000	113.000
SHORT TERM BORROWING
Deposits from directors	136.300	33.900
Deposits from others	14.620	93.896
Total	155.020	240.796

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80044214	28/06/2014 *	655,000,000.00	CANARA BANK	MCB BHARAT NAGAR CHOWK LUDHIANA, LUDHIANA, PUNJAB - 141001, INDIA	C14017438

* Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Other equipments

Intangible assets

• Computer 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.63.57
UK Pound	1	Rs.98.22
Euro	1	Rs.69.93

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	DIV
Report Prepared by :	GTA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		29

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.