MIRA INFORM REPORT

Report No. :	329294
Report Date :	26.06.2015

IDENTIFICATION DETAILS

Name :	LAXCON STEELS LIMITED (w.e.f. 21.06.2007)
Formerly Known As :	LAXCON STEELS PRIVATE LIMITED
Registered Office :	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabad – 382220, Gujarat
Tel. No.:	91-79-40007600
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.08.1999
Com. Reg. No.:	04-036413
Capital Investment / Paid-up Capital :	Rs.135.373 Million
CIN No.: [Company Identification No.]	U27100GJ1999PLC036413
IEC No.:	0800002881
TAN No.: [Tax Deduction & Collection Account No.]	AHML00104G
PAN No.: [Permanent Account No.]	AAACL5064A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Alloy Steel, Stainless Steel, Mild Steel etc.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well-build company, established in the year 1999. It is engaged in the business of manufacturing, exporting and importing of alloy steel, stainless steel, mild steel etc. it has a satisfactory track record. For the financial year 2014, the company possesses a good financial profile marked by healthy operational activity and it has reported decent sales volume as well as profitability margin of 1.3%. As per the available balance sheet, it is found that company has good networth position along with favourable gap between trade receivables to trade payables. Trade relations are reported as fair. Business is active. Payment terms are usually correct. In view of long term standing experience of the business and good financial base, company can be considered for business dealing at usual trade terms and condition.

NOTES:

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

EXTERNAL AGENCY RATING

Not Available

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 :	Ms. Heena
Designation :	Accounts Department
Contact No.:	91-8042536962
Date :	25.06.2015

LOCATIONS

Registered Office/ Factory :	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabad – 382 220, Gujarat, India
Tel. No.:	91-79-40007600
Mob. No.:	91-8042536962 (Ms. Heema)
Fax No.:	91-79-40007666
E-Mail :	laxcon@gopalgroup.com laxconoffice@gopal.com officelaxcon@gopalgroup.com deepak@gopalgroup.com exim@gopalgroup.com
Website :	http://www.gopalgroup.com http://www.laxconsteels.com
Area :	35000 Sq. ft.
Location :	Owned
Administrative Office :	Rajii Arcrade, 2^nd Floor, Opposite Gurukul Temple, Mem Nagar, Ahmedabad, Gujarat, India
Tel. No.:	91-79-40007600 [100 Lines] / 27478474
Fax No.:	91-79-4007666 / 67 / 27478471
Area :	2060 Sq. ft.
Location :	Owned
Corporate Office :	C-55/2, Wazirpur Industrial Area, Delhi – 110052, India
Tel. No.:	91-11-42952500 [100 Lines] / 27377001/ 5
Fax No.:	91-11-27377373 / 7474
E-Mail :	sales@gopalgroup.com info@gopalgroup.com
Location :	Owned

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Gopal Swarup Surender Pal Gupta
Designation :	Managing Director
Address :	H-34, Ashok Vihar, Phase – I, Delhi – 110052, India
Date of Birth/Age :	26.03.1965
Qualification :	B.Com.
Date of Appointment :	05.04.2012
PAN No :	AAGPG3933L
DIN :	00381600
Name :	Mr. Vinod Surender Pal Gupta
Designation :	Director
Address :	H-34, Ashok Vihar, Phase – I, Delhi – 110052, India
Date of Birth/Age :	07.06.1977
Qualification :	B.Com.
Date of Appointment :	20.03.2002
PAN No :	AACHV3943D
DIN :	00381782
Name :	Mr. Sanjay Gupta
Designation :	Director
Address :	1009/67, Deva Ram Park, Tri Nagar, Delhi, India
Date of Birth/Age :	08.11.1968
Qualification :	B.Com.
Date of Appointment :	20.03.2002
PAN No :	AAIPG0571C
DIN :	00383021
Name :	Mr. Rajan G Garg
Designation :	Director
Address :	20/42, West Punjabi Baug, New Delhi – 140020, India
Date of Birth/Age :	25.09.1975
Qualification :	B.Com.
Date of Appointment :	01.04.2004
PAN No :	AHFPG1259F
DIN :	00439436
Name :	Mr. Naresh Kumar Kakkar
Designation :	Director
Address :	76, Vaishali Pitampura, Delhi – 110088, India
Date of Birth/Age :	15.06.1942
Date of Appointment :	25.09.2009
DIN :	01541205

KEY EXECUTIVES

Name :	Ms. Heena
Designation :	Accounts Department

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Gopal Swarup Gupta	2010000
Gopal Swarup Gupta (HUF)	600000
Gaurav Gupta	736000
Pooja Gupta	999379
Surendra Pal Gupta	1705000
Surendra Pal Gupta (HUF)	1919000
Sita Gupta	1260000
Sangita Gupta	500000
Vinod Gupta	1916000
Vinod Gupta (HUF)	100000
Varun Gupta	1060766
Diwakar Commecials Private Limited	200000
Allied Holdings Private Limited	436750
Kunal Jain	94426
Total	13537321

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.7
Bodies corporate	4.71
Directors or relatives of Directors	94.59
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Alloy Steel, Stainless Steel, Mild Steel etc.

Products :

Products Description	ITC Code No.
A.S. Billets and A.S. Billets (Ann)	72249091
S.S. Billets and S.S. Billets(Sp)	72189910
A.S. Ingots	72241000
A S Round Bar Bright Bar, A.S. Round Bar, A.S. Round Bar (Anneled) , A.S. Round Forgings	72283029
S S Round Bar Brightbar, S.S. Round Bar (Bright Bar) (Sp), S.S. Round Bar, S.S. Round Bar (Ann), S.S. Round Bar (SP), S.S. Round bar (Sp)(An)	72223099
A.S. Flats	72269190
S.S. Flat, S S Flat(Sp), S.S. Flat(Sp) ( Pick)	72201190
M.S. Round Bar	72141090
S S Forging-Machined, S.S. Forgings Machined ( SP ) , S S Roundbar Forgings, S.S. Roundbar Forging (Ann), S.S. Roundbar Forging(Sp) (BB), S.S. Roundbars Forgings ( SP ) ,	73269060
S.S. Angle, S.S. Angle ( SP ) ( Pick ) , S.S. Angle(Pick), S.S. Angle(Sp)(Pick)	72224020
S.S. Strip (Pickled), S.S. Strips ( SP ) (Pickled )	72201222
S.S.Wire Rod (Sp)	72210090
S.S. Forging Ring	73269099
Ferro Molybdenum Lumps	72027000
Ferro Silicon	72022100

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

• Alloy Steel
• Stainless Steel
• Mild Steel etc.

Countries :

• UK
• USA
• Europe
• Netherland
• Asian Countries

Imports :

Products :

• Alloy Steel
• Stainless Steel
• Mild Steel etc.

Countries :

• Japan
• Korea
• China

Terms :

Selling :

Cash, L/C and Credit

Purchasing :

Cash, L/C and Credit

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	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 :

Company Name :	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 :

100 (Approximately)

Bankers :

Banker Name :	Indian Overseas Bank
Branch :	First Floor, Khemka House, Drive-In-Road, Ahmedabad – 380054, Gujarat, 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 :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

· Punjab National Bank, Vanijaya Bhavan, Ahmedabad – 380022, Gujarat, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loans from banks	86.299	75.818
Other loans and advances	5.408	3.224
Short Term Borrowings
Term loans from banks	536.064	469.331
Working capital loans from banks	440.773	588.072
Total	1068.544	1136.445

Auditors :
Name :	H. V. Vasa and Company Chartered Accountants
Address :	B-2, Usha Kiran, Opposite Khanpur Gate, Khanpur, Ahmedabad – 380 001, Gujarat, India
Tel. No.:	91-79-25502985
Fax No.:	91-79-25503700
E-Mail :	hvvasaco@gmail.com
PAN No.:	AAGPV2872F
Memberships :	Not Divulged
Collaborators :	Not Divulged
Associates :	· Vinayaka Alloys Private Limited · Gopal Gupta HUF · Mega Steels Private Limited · Ocean Steels Private Limited · Vinod Gupta HUF · Allied Holdings Private Limited · G G Projects Private Limited · Comet Builders Private Limited · Steelage Exim Private Limited · Gopal Udyog Limited · Krishna Projects Private Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Gagar Steel Private Limited · Gopal Industries · Supraneet Finance And Consultants Limited

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital:

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

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
13537321	Equity Shares	Rs.10/- each	Rs.135.373 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	135.373	134.429	130.061
(b) Reserves & Surplus	646.695	565.751	398.051
(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)	782.068	700.180	528.112
(3) Non-Current Liabilities
(a) long-term borrowings	197.846	185.201	172.182
(b) Deferred tax liabilities (Net)	66.793	81.074	68.615
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.039	1.712	1.273
Total Non-current Liabilities (3)	266.678	267.987	242.070
(4) Current Liabilities
(a) Short term borrowings	976.837	1057.403	731.294
(b) Trade payables	184.516	146.624	167.648
(c) Other current liabilities	229.961	121.377	97.926
(d) Short-term provisions	51.354	57.355	70.610
Total Current Liabilities (4)	1442.668	1382.759	1067.478
TOTAL	2491.414	2350.926	1837.660
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	546.126	485.068	423.040
(ii) Intangible Assets	0.057	0.053	0.019
(iii) Capital work-in-progress	12.193	3.562	75.443
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	6.060	36.068	3.525
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	564.436	524.751	502.027
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	859.282	796.561	623.675
(c) Trade receivables	775.102	616.561	451.698
(d) Cash and cash equivalents	67.772	79.275	7.142
(e) Short-term loans and advances	223.012	332.057	252.460
(f) Other current assets	1.810	1.721	0.658
Total Current Assets	1926.978	1826.175	1335.633
TOTAL	2491.414	2350.926	1837.660

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4426.063	3599.896	3716.460
		Other Income	58.675	42.592	48.503
		TOTAL (A)	4484.738	3642.488	3764.963
Less	EXPENSES
		Cost of Materials Consumed	3329.648	2662.847	2834.207
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(71.199)	(58.018)	(112.859)
		Employee Benefits Expenses	23.276	22.715	17.456
		Other Expenses	903.021	705.801	736.375
		TOTAL (B)	4184.746	3333.345	3475.179
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		299.992	309.143	289.784
Less	FINANCIAL EXPENSES (D)		160.118	128.836	122.442
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		139.874	180.307	167.342
Less	DEPRECIATION/ AMORTISATION (F)		49.787	42.524	36.483
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		90.087	137.783	130.859
Less	TAX (H)		19.219	45.458	42.544
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		70.868	92.325	88.315
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		406.695	314.370	226.055
	BALANCE CARRIED TO THE B/S		477.563	406.695	314.370
	Earnings Per Share (Rs.)		5.27	7.10	6.90

Particulars	31.03.2015
Sales Turnover (Approximately)	5750.000

Expected Sales (2015-2016): Rs.6000.000 Million

The above information has been parted by Ms. Heena

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	69.804	39.808	35.603
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	1.60	2.56	2.38
Operating Profit Margin (PBDIT/Sales)	(%)	6.78	8.59	7.80
Return on Total Assets (PBT/Total Assets)	(%)	3.63	5.87	7.43
Return on Investment (ROI) (PBT/Networth)		0.12	0.20	0.25
Debt Equity Ratio (Total Debt /Networth)		1.59	1.83	1.78
Current Ratio (Current Asset/Current Liability)		1.34	1.32	1.25

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	130.061	134.429	135.373
Reserves & Surplus	398.051	565.751	646.695
Net worth	528.112	700.180	782.068
long-term borrowings	172.182	185.201	197.846
Short term borrowings	731.294	1057.403	976.837
Current Maturities of Long term debt	35.603	39.808	69.804
Total borrowings	939.079	1282.412	1244.487
Debt/Equity ratio	1.778	1.832	1.591

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	3716.460	3599.896	4426.063
		-3.136	22.950

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	3716.460	3599.896	4426.063
Profit	88.315	92.325	70.868
	2.38%	2.56%	1.60%

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	Yes
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)	Yes
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 three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
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

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Intercorporate borrowings	56.936	77.346
Loans and advances from related parties	49.203	28.813
Total	106.139	106.159

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10573393	02/03/2015	142,500,000.00	THE SOUTH INDIAN BANK LIMITED	32 TO 36, GROUND FLOOR,SATYAM ARCADE, VILL MORAIYA, SARKHEJ-BAWLA HIGHWAY, CHANGODAR, AHMEDABAD, GUJARAT - 382210, INDIA	C55676753
2	10542368	31/12/2014	1,085,000.00	INDIAN OVERSEAS BANK	LARGE CORPORATE BRANCH, OPP HANDLOOM HOUSE, ASHRAM ROAD, AHMEDABAD, GUJARAT - 380009, INDIA	C40106981
3	10407266	15/03/2013 *	100,000,000.00	PUNJAB NATIONAL BANK	VANIJAYA BHAVAN, AHMEDABAD, GUJARAT - 380022, INDIA	B71538953
4	10165317	13/06/2009	1,575,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	A65289795
5	80012130	25/06/2014 *	1,814,500,000.00	PNB INVESTMENT SERVICES LIMITED	PUNJAB NATIONAL BANK, CIRCLE OFFICE, 6TH FLOOR, GUJARAT BHAVAN, OPP. M. J. LIBRARY,ELLIS BRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	C09561143
6	80012131	25/06/2014 *	1,814,500,000.00	PNB INVESTMENT SERVICES LIMITED	PUNJAB NATIONAL BANK, CIRCLE OFFICE, 6TH FLOOR, GUJARAT BHAVAN, OPP. M. J. LIBRARY,ELLIS BRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	C09672213

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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.63.61
UK Pound	1	Rs.99.79
Euro	1	Rs.71.17

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	TRI
Report Prepared by :	NKT

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.