MIRA INFORM REPORT

Report No. :	320675
Report Date :	02.05.2015

IDENTIFICATION DETAILS

Name :	GARG INOX LIMITED (w.e.f. 11.04.2007)
Formerly Known As :	GARG INOX PRIVATE LIMITED (w.e.f. 12.01.2007) GARG SALES CO. PRIVATE LIMITED
Registered Office :	35, Jhandewalan Road, Motia Khan, New Delhi – 110 055
Tel. No.:	91-11-23529626
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	29.06.1991
Com. Reg. No.:	55-044782
Capital Investment / Paid-up Capital :	Rs.78.188 million
CIN No.: [Company Identification No.]	U74899DL1991PLC044782
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	DELG05223B
PAN No.: [Permanent Account No.]	AAACG1010F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in manufacturing and export of steel products which primarily include stainless steel wire, mild steel wire, galvanized wire, aluminium wire, zinc wire, etc.
No. of Employees :	1200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track. Management has reported a modest capital structure owing to debt along with a loss from its operations during FY 14. However, trade relations seem to be fair. Business is active. Payments are reported to be slow but correct. In view of experienced promoters, the company can be considered for business dealings with caution.

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: BB-
Rating Explanation	Moderate Risk of default.
Date	31.03.2015

Rating Agency Name	CARE
Rating	Short term Bank Facilities: A4
Rating Explanation	Minimal Degree of safety. It carry very high credit risk.
Date	31.03.2015

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 PARTED BY

Name :	Mr. Pradeep
Designation :	Finance Department
Contact No.:	91-9991701122

LOCATIONS

Registered Office :	35, Jhandewalan Road, Motia Khan, New Delhi – 110 055, India
Tel. No.:	91-11-23529626/ 23679747
Mobile No.:	91-9991701122 (Mr. Pradeep)
Fax No.:	91-11-23626388
E-Mail :	gargwire@gargwire.com cs@gargwire.com manish@gargwire.com
Website :	http://www.gargwire.com
Location :	Owned
Head Office/ Factory 1 :	Asoudha Siwan, 43, Mile Stone, Delhi Rohtak Road, Asoudha, Bahadurgarh – 124 507, Haryana, India
Tel. No.:	91-1276-222222
Fax No.:	91-1276-222000
E-Mail :	gargwire@gargwire.com
Corporate Office :	CH-9, Old Industrial Area, Bahadurgarh – 124 507, Haryana, India
Factory 2 :	G-4, Ranjan Gaon Industrial Area, Village Karegaon, MIDC, Pune, Maharashtra, India
Tel. No.:	91-2138-230901/ 902/ 903
Fax No.:	91-2138-230900
Branch Office :	118, 1^st Floor, Vyapar Bhawan, 49, P.D. Mello Road, Masjid Bunder (East), Mumbai – 400 009, Maharashtra, India
Tel. No.:	91-22-23484744
Fax No.:	91-22-23481748
E-Mail :	pinak@gargwire.com
Overseas Office :	Garg Sales Inc. 366 North Broadway, Suite# 410-H, Jericho, NY 11753, USA
Tel. No.:	+1-516-932-6000
Fax No.:	+1-516-932-6006
E-Mail :	vdugar@gargwire.com

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Suresh Chand Garg

Designation :

Managing Director

Address :

House No.3, Street No.29, East Punjabi Bagh, New Delhi – 110 026, India

Date of Birth :

19.12.1969

Date of Appointment :

31.03.2011

DIN No.:

00024274

PAN No.:

AAGPG6775Q

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	U74899DL1991PLC044782	GARG INOX LIMITED	Managing director	31/03/2011	29/06/1991	-	Active	NO
2	U27209DL1999PTC098106	DEE CEE ALLOYS AND WIRES PRIVATE LIMITED	Director	27/01/1999	27/01/1999	-	Active	NO
3	U28112DL1997PTC087678	GARG ALUMINIO PRIVATE LIMITED	Director	21/06/2007	21/06/2007	-	Active	NO
4	U15209DL1996PTC194691	SOLAR MERCANTILES PRIVATE LIMITED	Director	02/07/2007	02/07/2007	-	Active	NO
5	U70101DL2010PTC207501	PYRAMID REALTECH PRIVATE LIMITED	Director	24/08/2010	24/08/2010	-	Active	NO

Name :

Mrs. Priyanka Garg

Designation :

Director

Address :

House No.3, Street No.29, East Punjabi Bagh, New Delhi – 110 026, India

Date of Birth :

17.11.1973

Date of Appointment :

11.07.1993

DIN No.:

00024173

PAN No.:

AAGPG6776P

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	U74899DL1991PLC044782	GARG INOX LIMITED	Director	11/07/1993	11/07/1993	-	Active	NO
2	U27209DL1999PTC098106	DEE CEE ALLOYS AND WIRES PRIVATE LIMITED	Additional director	24/01/2014	24/01/2014	-	Active	NO

Name :

Mr. Atul Chanana

Designation :

Director

Address :

Flat No. 51, Pocket GH-12, Paschim Vihar, New Delhi – 110 009

Date of Birth :

15.07.1968

Date of Appointment :

29.09.2012

DIN No.:

01584179

PAN No.:

ABTPC1198D

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	U74899DL1991PLC044782	GARG INOX LIMITED	Director	29/09/2012	05/03/2012	-	Active	NO
2	U15209DL1996PTC194691	SOLAR MERCANTILES PRIVATE LIMITED	Director	30/09/2014	09/01/2013	-	Active	NO
3	U28112DL1997PTC087678	GARG ALUMINIO PRIVATE LIMITED	Director	30/09/2014	25/03/2014	-	Active	NO

Name :

Mr. Sachin Gupta

Designation :

Director

Address :

D-13A-20, D-13, Block Model Town III, New Delhi – 110 009

Date of Birth :

29.12.1974

Date of Appointment :

29.09.2012

DIN No.:

06371803

PAN No.:

AAFPG2112A

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	U74899DL1991PLC044782	GARG INOX LIMITED	Director	29/09/2012	13/08/2012	-	Active	NO

Name :

Mr. Kavinder Prasad

Designation :

Additional Director

Address :

WZ-33, Golden Park, Delhi – 110 035, India

Date of Appointment :

13.10.2014

DIN No.:

07004397

KEY EXECUTIVES

Name :	Ms. Manisha Chhillar
Designation :	Secretary
Address :	H. No.-201, V.P.O - Bamnoli, Bahadurgarh – 124 507, Haryana, India
Date of Birth :	07.10.1988
Date of Appointment :	29.09.2012
PAN No.:	BRAPM6977Q
Name :	Mr. Pradeep
Designation :	Finance Department

MAJOR SHAREHOLDERS

AS ON 30.09.2013

Names of Shareholders	No. of Shares	Percentage of holding
Suresh Chand Garg	1039963	15.10
Priyanka Garg	884620	12.85
Vansaj Garg	283333	4.11
Sanchit Garg	429266	6.23
Suresh Garg and Sons (HUF)	550575	8.00
Jaipal Garg	65366	0.95
Madhu Garg	318152	4.62
Aayush Garg	461916	6.71
Aakarsh Garg	171165	2.49
Jaipal Garg and Sons (HUF)	127416	1.85
Dee Cee Alloys and Wire Private Limited, India	320000	4.65
Solar Mercantiles (Private) Limited, India	2233656	32.44
Total	6885428	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2013

Category	Percentage of holding
Bodies corporate	37.09
Directors or relatives of Directors	62.91
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing and export of steel products which primarily include stainless steel wire, mild steel wire, galvanized wire, aluminium wire, zinc wire, etc.

Products :

Item Code No. (ITC Code)	74122090
Product Description	Wire

• Stainless Steel Wire
• Galvanized Wire
• Stainless Steel Bar
• Copper Clad Aluminum Wire
• Aluminum Alloy Wire
• Zinc Wire
• Welding Consumables

Brand Names :

“GARGWIRE”

Agencies Held :

Not Available

Exports :

Products :

• Finished Goods

Countries :

• USA
• UK
• France
• Brazil
• Iran
• Turkey
• Germany

Imports :

Not Available

Terms :

Selling :

Not Divulged

Purchasing :

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 :

1200 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Industrial Complex Branch, Bahadurgarh – 124 507, Haryana, 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

Small Industries Development Bank of India, NH-5, R/2, Neelam Badshah Khan Road, NIT, Faridabad – 121 001, Haryana, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Rupee term loans from banks	228.980	72.215
Foreign currency term loans from banks	0.000	106.702
SHORT TERM BORROWINGS
Term loans from banks	640.302	231.319
Foreign currency term loans from banks	0.000	838.869
Foreign currency term loans from others	290.576	0.000
Total	1159.858	1249.105

Banking Relations :	--
Financial Institution :	Aditya Birla Finance Limited, Indian Rayon Compound, Veraval – 362 266, Gujarat, India
Auditors :
Name :	GSK and Associates Chartered Accountants
Address :	8, First Floor, Rani Jhansi Road, Motia Khan Industrial Area, New Delhi – 110 055, India
PAN No.:	AADFG5824B
Memberships :	Not Available
Collaborators :	Not Available
Associates:	Dee Cee Alloys and Wires Private Limited, India (CIN No.: U27209DL1999PTC098106) Garg Aluminio Private Limited, India (CIN No.: U28112DL1997PTC087678) Solar Mercantiles Private Limited, India (CIN No.: U15209DL1996PTC194691)
Other Related Parties :	Deep Chand Dayal Chand, India

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7818763	Equity Shares	Rs.10/- each	Rs.78.188 million

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6885428	Equity Shares	Rs.10/- each	Rs.68.854 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	78.188	68.854	62.187
(b) Reserves & Surplus	271.739	476.277	385.986
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	46.352	47.000
Total Shareholders’ Funds (1) + (2)	349.927	591.483	495.173
(3) Non-Current Liabilities
(a) Long-term borrowings	419.591	215.246	152.692
(b) Deferred tax liabilities (Net)	58.776	48.181	40.037
(c) Other long term liabilities	15.000	15.000	15.000
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	493.367	278.427	207.729
(4) Current Liabilities
(a) Short term borrowings	930.878	1070.188	855.074
(b) Trade payables	902.576	827.002	776.256
(c) Other current liabilities	76.893	68.336	72.453
(d) Short-term provisions	31.847	41.210	33.504
Total Current Liabilities (4)	1942.194	2006.736	1737.287
TOTAL	2785.488	2876.646	2440.189
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	884.651	691.912	605.113
(ii) Intangible Assets	1.280	1.538	0.462
(iii) Capital work-in-progress	1.254	58.213	18.095
(iv) Intangible assets under development	0.000	0.000	0.018
(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	17.884	13.419	18.194
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	905.069	765.082	641.882
(2) Current assets
(a) Current investments	2.713	2.500	0.000
(b) Inventories	720.298	818.521	661.025
(c) Trade receivables	716.152	850.018	756.382
(d) Cash and cash equivalents	92.017	82.402	78.902
(e) Short-term loans and advances	349.004	357.848	297.848
(f) Other current assets	0.235	0.275	4.150
Total Current Assets	1880.419	2111.564	1798.307
TOTAL	2785.488	2876.646	2440.189

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	3717.874	4267.940	3786.106
		Other Income	101.307	80.371	20.422
		TOTAL	3819.181	4348.311	3806.528
			(Due to market fluctuation)
Less	EXPENSES
		Cost of materials consumed	2798.898	3422.910	2964.464
		Changes in inventories of finished goods, work-in-trade and stock-in-trade	70.039	(92.442)	(62.679)
		Employee benefit expenses	126.956	116.922	104.757
		Other expenses	615.473	621.747	551.506
		TOTAL	3611.366	4069.137	3558.048
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		207.815	279.174	248.480
Less	FINANCIAL EXPENSES		388.030	167.918	153.592
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(180.215)	111.256	94.888
Less/ Add	DEPRECIATION/ AMORTISATION		71.718	56.175	46.944
	PROFIT/ (LOSS) BEFORE TAX		(251.933)	55.081	47.944
Less	TAX		11.772	18.124	16.259
	PROFIT/ (LOSS) AFTER TAX		(263.705)	36.957	31.685
	Earnings / (Loss) Per Share (Rs.)		(37.03)	5.94	5.76

Expected Sales (2014-2015): Rs.3810.000 million

The above information has been parted by Mr. Pradeep (Finance Department).

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(7.09)	0.87	0.84
Operating Profit Margin (PBDIT/ Sales)	(%)	5.59	6.54	6.56
Return on Total Assets (PBT/Total Assets}	(%)	(9.05)	1.95	1.98
Return on Investment (ROI) (PBT/Networth)		(0.72)	0.09	0.10
Debt Equity Ratio (Total Debt/Networth)		3.86	2.17	2.04
Current Ratio (Current Asset/Current Liability)		0.97	1.05	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Share Capital	62.187	68.854	78.188
Reserves & Surplus	385.986	476.277	271.739
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	47.000	46.352	0.000
Net worth	495.173	591.483	349.927
Long Term borrowings	152.692	215.246	419.591
Short Term borrowings	855.074	1070.188	930.878
Total borrowings	1007.766	1285.434	1350.469
Debt/Equity ratio	2.035	2.173	3.859

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Revenue from operations	3786.106	4267.940	3717.874
		12.726	(12.888)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Revenue from operations	3,786.106	4,267.940	3,717.874
Profit	31.685	36.957	(263.705)
	0.84%	0.87%	(7.09%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	Yes
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Rupee term loans from banks	30.000	31.163
Rupee term loans from others	160.611	5.166
Total	190.611	36.329

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10472169	28/12/2013	140,000,000.00	ADITYA BIRLA FINANCE LIMITED	INDIAN RAYON COMPOUND, VERAVAL, GUJARAT - 362266,  INDIA	B94247624
2	10375983	18/09/2012	5,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	NH 5 - R/2, NEELAM BADSHAH KHAN ROAD, NIT, FARIDABAD, HARYANA - 121001, INDIA	B57910713
3	10375982	18/09/2012	30,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	NH 5 - R/2, NEELAM BADSHAH KHAN ROAD, NIT, FARIDABAD, HARYANA - 121001, INDIA	B57909269
4	10032583	08/01/2014 *	2,022,300,000.00	STATE BANK OF INDIA	INDUSTRIAL COMPLEX, BAHADURGARH, HARYANA - 124507, INDIA	B94276102

* Date of charge modification

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipments

· Other Pollution Reduction Equipment

· Furniture and Fixtures

· Vehicles

· Office 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 records 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.63.58
UK Pound	1	Rs.97.99
Euro	1	Rs.70.53

INFORMATION DETAILS

Information Gathered by :	GYA
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
-- PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	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		31

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.