MIRA INFORM REPORT

Report No. :	313488
Report Date :	20.03.2015

IDENTIFICATION DETAILS

Name :	BABA STRIP AND TUBES LIMITED (w.e.f. 20.05.2011)
Formerly Known As :	BABA STRIP AND TUBES PRIVATE LIMITED
Registered Office :	1, R.N. Mukherjee Road, Martin Burn House, 2nd Floor, North Block, Room No. 231 and 232, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	21.03.2007
Com. Reg. No.:	21-114311
Capital Investment / Paid-up Capital :	Rs.63.202 Million
CIN No.: [Company Identification No.]	U27310WB2007PLC114311
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCB0844M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the production of M.S. strips, G.I. Wires, Black Pipes, Transmission tower, Angle, Channel, M.S. Br (TMT), Joist, HR Sheet etc.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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. Profit margin of the company is low. However, net worth of the company is satisfactory. General financial position of the company is normal and acceptable for business dealing. Trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered normal 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: “BBB-“
Rating Explanation	Moderate degree of safety. It carry moderate credit risk
Date	12.01.2015

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Rajesh Bandral
Designation :	Finance Manager
Contact No.:	91-9434071158
Date :	19.03.2015

LOCATIONS

Registered Office :	1, R.N. Mukherjee Road, Martin Burn House, 2nd Floor, North Block, Room No. 231 and 232, Kolkata – 700001, West Bengal
Tel. No.:	91-33-22623914/15/ 22137518
Mobile No.:	91-8001012222 (Mr. Amit)
Fax No.:	91-33-22623916
E-Mail :	Navin.babgroup@gmail.com babastrips@gmail.com satyamrng@rediffmail.com
Website :	www.bstl.in
Location :	Owned
Factory :	Jamuria Industrial Estate, Bardwan, West Bengal, India
Tel. No.:	91-341-2456677/2456678
Fax No.:	91-341-2456679
Location :	Owned

DIRECTORS

As on 30.09.2014

Name :

Mr. Anup Kumar Choudhary

Designation :

Director

Address :

North Shukdal, Post-Budbud, Burdwan – 713403, West Bengal, India

Date of Birth/Age :

26.12.1973

Date of Appointment :

10.04.2009

DIN No.:

00443160

PAN No.:

ACNPC7922L

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	U65910WB1996PTC081070	BISWAHARI FINVEST PVT LTD	Director	01/04/1998	01/04/1998	-	Active	NO
2	U51109WB1994PTC066560	SHREE JAWALA CONSULTANTS PVT.LTD.	Director	24/02/2000	24/02/2000	-	Active	NO
3	U26919WB2002PTC094174	BRIGHT GLASS & SILICATE PRIVATE LIMITED	Director	31/01/2002	31/01/2002	19/10/2008	Active	NO
4	U27310WB2003PTC096951	SREERAM SMELTERS PRIVATE LIMITED	Director	11/09/2003	11/09/2003	30/03/2010	Active	NO
5	U27310WB2002PTC094731	BABA ISPAT PRIVATE LIMITED	Director	01/10/2003	01/10/2003	08/11/2011	Active	NO
6	U45400WB2007PTC117297	FABULOUS NIKETAN PRIVATE LIMITED	Director	19/12/2007	19/12/2007	-	Active	NO
7	U27310WB2007PLC114311	BABA STRIP & TUBES LIMITED	Director	10/04/2009	10/04/2009	-	Active	NO
8	U23201WB2007PLC118619	SUNDARAM ALLOYS LIMITED	Director	25/02/2010	25/02/2010	12/04/2011	Active	NO

Name :

Mr. Gopal Kumar Agarwala

Designation :

Director

Address :

Chowk Bazar, Giridih – 815301, Jharkhand, India

Date of Birth/Age :

21.05.1958

Date of Appointment :

21.03.2007

DIN No.:

00575531

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	U00331WB2000PTC132700	SATYAM IRON & STEEL COMPANY PRIVATE LIMITED	Director	27/07/2004	27/07/2004	-	Active	NO
2	U51909WB1994PTC061532	PAWAPURI MERCANTILES PVT. LTD.	Director	25/10/2004	25/10/2004	-	Active	NO
3	U28999WB2003PTC096948	Manbhum Ispat Private Limited	Managing director	25/04/2005	25/04/2005	-	Active	NO
4	U27102WB2004PTC099306	SUNDARAM FERRO TECH PRIVATE LIMITED	Director	01/05/2006	01/05/2006	29/03/2009	Amalgamated	NO
5	U65993WB1996PTC077291	BENZMARK CREDIT CAPITAL PVT LTD	Director	26/06/2006	26/06/2006	-	Active	NO
6	U27109WB2004PTC099497	SATYAM SMELTERS PRIVATE LIMITED	Director	25/11/2006	25/11/2006	23/03/2012	Active	NO
7	U51909WB1995PTC071132	MARVELLOUS INTRA PVT.LTD.	Director	01/02/2007	01/02/2007	-	Active	NO
8	U27310WB2007PLC114311	BABA STRIP & TUBES LIMITED	Director	21/03/2007	21/03/2007	-	Active	NO
9	U23201WB2007PLC118619	SUNDARAM ALLOYS LIMITED	Director	13/09/2007	13/09/2007	-	Active	NO
10	U51109WB1995PTC075761	PRISM COMMERCIAL PVT LTD	Director	03/04/2010	03/04/2010	15/12/2010	Active	NO
11	U72300WB2011PTC165869	Great Eastern Technology Private Limited	Director	04/08/2011	04/08/2011	-	Active	NO

Name :

Mr. Pradip Kumar Agarwal

Designation :

Director

Address :

Ganja Gali, Dharamshala Road, P.O. Chirkunda, Dhanbad – 828202, Jharkhand, India

Date of Birth/Age :

02.05.1960

Date of Appointment :

21.03.2007

DIN No.:

01290545

PAN No.:

ACAPA3273H

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	U27310WB2007PLC114311	BABA STRIP & TUBES LIMITED	Director	21/03/2007	21/03/2007	-	Active	NO
2	U27100WB2007PTC121170	X3eem Services Private Limited	Director	24/12/2007	24/12/2007	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajesh Bandral
Designation :	Finance Manager

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
Gopal Kumar Agarwala	508400
Pradip Kumar Agarwal	223800
Sanju Agarwal	11000
Dilip Kumar Agarwal	8000
Bina Agarwal	11000
Vineeta Agarwal	10000
Binod Kumar Agarwal	10000
Prism Commercial Private Limited, India	200000
Urmila Devi Agarwal	130000
Benzmark Credit Capital Priate Limited, India	500000
Liska Trading Private Limited, India	380000
Pawapuri Mercantile Private Limited, India	900000
Mukesh Kumar Agrawal	7000
Madhu Agarwal	5000
Mubarak Cosmetics Private Limited, India	896000
Gainwell Textrade Private Limited, India	1620000
Lucky Tradelink Private Limited, India	100000
Hil Engineering Private Limited, India	800000
Total	6320200

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	85.38
Directors or relatives of Directors	14.62
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the production of M.S. strips, G.I. Wires, Black Pipes, Transmission tower, Angle, Channel, M.S. Br (TMT), Joist, HR Sheet etc.

Products :

Product Description	Item Code No. (ITC Code)
Joist	72163300
M.S. Angle	72162100
M.S. Bar	72142090
M.S. Channel	72163100

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

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
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

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

No. of Employees :

Not Divulged

Bankers :

• Allahabad Bank, Durgapur Branch, Ruma Sweets Building, Benachity, Durgapur - 713213, West Bengal, India

• Allahabad Bank, Benachity, Durgapur - 713204, West Bengal, India

• UCO Bank, MCU, Kolkata Main Branch, 10, B.T. M. Sarani, 1^st Floor, Kolkata – 700001, West Bengal , India

• UCO Bank, MID Corporate Branch, 2, India Exchange Place, Kolkata - 700001, West Bengal, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loan from Banks	53.299	97.778
SHORT TERM BORROWING
Loans repayable on demand	283.416	276.251
Total	336.715	374.029

Auditors :
Name :	Kedia Agarwal and Associates Chartered Accountants
Address :	Tah Complex, Gandhi Chowk, Giridih-815 301, Jharkhand, India
PAN N Income-tax PAN of auditor or auditor's firm :	AACFK6368H
Memberships :	Not Available
Collaborators :	Not Available
Other Related party :	Marvellous Intra Private Limited, India Baba Ispat Private Limited, India CIN No. : U27310WB2002PTC094731 Manbhum Ispat Private Limited, India CIN No.: U28999WB2003PTC096948 Shivam Iron and Steel Company Limited, India CIN No.: U00331WB1998PLC153383 Satyam Smelters Private Limited, India CIN No.: U27109WB2004PTC099497

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7,000,000	Equity Shares	Rs.10/- each	Rs. 70.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6,320,200	Equity Shares	Rs.10/- each	Rs. 63.202 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	63.202	63.202	63.202
(b) Reserves & Surplus	330.962	311.088	292.004
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	40.900	0.000
Total Shareholders’ Funds (1) + (2)	394.164	415.190	355.206
(3) Non-Current Liabilities
(a) long-term borrowings	53.299	97.778	139.958
(b) Deferred tax liabilities (Net)	10.384	9.244	8.956
(c) Other long term liabilities	309.405	187.593	116.112
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	373.088	294.615	265.026
(4) Current Liabilities
(a) Short term borrowings	283.416	276.251	274.505
(b) Trade payables	1141.608	1092.785	515.135
(c) Other current liabilities	229.355	361.031	207.036
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	1654.379	1730.067	996.676
TOTAL	2421.631	2439.872	1616.908
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	369.793	379.465	416.032
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	2.061	0.000	0.000
(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	0.000	6.248	5.544
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	371.854	385.713	421.576
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	660.849	758.827	315.110
(c) Trade receivables	1166.292	1079.274	681.221
(d) Cash and cash equivalents	43.313	43.189	29.762
(e) Short-term loans and advances	153.247	148.693	148.285
(f) Other current assets	26.076	24.176	20.954
Total Current Assets	2049.777	2054.159	1195.332
TOTAL	2421.631	2439.872	1616.908

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	3483.303	2828.374	1540.755
	Other Income	121.556	121.680	55.872
	TOTAL (A)	3604.859	2950.054	1596.627
Less	EXPENSES
	Cost of Materials Consumed	2528.768	2447.968	1208.587
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	196.449	(307.224)	(14.522)
	Employees benefits expense	18.532	16.238	11.808
	Other expenses	712.896	636.895	278.908
	TOTAL (B)	3456.645	2793.877	1484.781
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	148.214	156.177	111.846
Less	FINANCIAL EXPENSES (D)	63.249	70.215	46.919
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	84.965	85.962	64.927
Less/ Add	DEPRECIATION/ AMORTISATION (F)	53.234	57.502	46.250
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	31.731	28.460	18.677
Less	TAX (H)	11.856	9.376	5.778
	PROFIT/ (LOSS) AFTER TAX (I-J) (K)	19.875	19.084	12.899
	Earnings / (Loss) Per Share (Rs.)	3.14	3.02	4.04

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.57	0.67	0.84
Operating Profit Margin (PBDIT / Sales)	(%)	4.25	5.52	7.26
Return on Total Assets (PBT/Total Assets}	(%)	1.31	1.17	1.16
Return on Investment (ROI) (PBT/Networth)		0.08	0.07	0.05
Debt Equity Ratio (Total Debt /Networth)		0.85	0.90	1.17
Current Ratio (Current Asset/Current Liability)		1.24	1.19	1.20

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	63.202	63.202	63.202
Reserves & Surplus	292.004	311.088	330.962
Share Application money pending allotment	0.000	40.900	0.000
Net worth	355.206	415.190	394.164
long-term borrowings	139.958	97.778	53.299
Short term borrowings	274.505	276.251	283.416
Total borrowings	414.463	374.029	336.715
Debt/Equity ratio	1.167	0.901	0.854

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	1540.755	2828.374	3483.303
		83.571	23.156

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	1540.755	2828.374	3483.303
Profit	12.899	19.084	19.875
	0.84%	0.67%	0.57%

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	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last five 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	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	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

NOTE: Registered office of the company has been shifted from 2 No. Berreto Lane, 2^nd Floor, Room No. 201, Kolkata – 700069, West Bengal, India to the present address w.e.f. 16.02.2011

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10541667	01/01/2015	25,000,000.00	UCO Bank	MCU, KOLKATA MAIN BRANCH, 10, B. T. M. SARANI, 1S T FLOOR, KOLKATA, West Bengal - 700001, INDIA	C39789102
2	10533292	27/09/2014	25,000,000.00	UCO Bank	MCU, KOLKATA MAIN BRANCH, 10, B. T. M. SARANI, 1S T FLOOR., KOLKATA, West Bengal - 700001, INDIA	C35001965
3	10353813	29/03/2012	210,000,000.00	ALLAHABAD BANK	BENACHITY, DURGAPUR, West Bengal - 713204, INDIA	B38975900
4	10243515	22/09/2010	200,000,000.00	Allahabad Bank	Durgapur Branch, Ruma Sweets Building, Benachity, Durgapur, West Bengal - 713213, INDIA	A95803540
5	10133838	16/12/2008	100,000,000.00	UCO BANK	MID CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, West Bengal - 700001, INDIA	A52672508
6	10078210	28/11/2007	24,000,000.00	UCO BANK	MID CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE, KOLKATA, West Bengal - 700001, INDIA	A27762301
7	10064261	23/10/2009 *	154,000,000.00	UCO BANK	MID CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE,, KOLKATA, West Bengal - 700001, INDIA	A74292269
8	10064257	03/08/2007	44,000,000.00	UCO BANK	MID CORPORATE BRANCH, 2, INDIA EXCHANGE PLACE,, KOLKATA, West Bengal - 700001, INDIA	A21268412

* Date of charge modification

FIXED ASSETS

Tangible assets

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

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.62.42
UK Pound	1	Rs.92.99
Euro	1	Rs.67.29

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	ART

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	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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.