MIRA INFORM REPORT

Report No. :	318903
Report Date :	07.05.2015

IDENTIFICATION DETAILS

Name :	SAKTHI STEEL INDUSTRIES LIMITED
Registered Office :	18/26, Loganathan Nagar, 2^nd Street, Choolaimedu, Chennai – 600094, Tamilnadu
Tel. No.:	91-44-23611826
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.12.2010
Com. Reg. No.:	18-078488
Capital Investment / Paid-up Capital :	Rs.5.640 Million
CIN No.: [Company Identification No.]	U27310TN2010PLC078488
IEC No.:	0410045381
TAN No.: [Tax Deduction & Collection Account No.]	CHES35622G
PAN No.: [Permanent Account No.]	AAPCS1403D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers, Dealers of Iron and Steel Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 180000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile marked by low profitability margins and leverage capital structure of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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 – 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	CRISIL
Rating	Long term rating=B+
Rating Explanation	Risk prone credit quality and carries very high credit risk.
Date	21.04.2015

Rating Agency Name	CRISIL
Rating	Short term rating=A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	21.04.2015

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.

LOCATIONS

Registered Office :	18/26, Loganathan Nagar, 2^nd Street, Choolaimedu, Chennai – 600094, Tamilnadu, India
Tel. No.:	91-44-23611826
Fax No.:	91-44-23611831
E-Mail :	sakthisteelindustrieslimited@gmail.com
Factory :	Amaravathi Pattinam Village, Kattangulam Panchayat, Nelvai – Thirumukkoodal Road, Uthramerur Taluk, Kancheepuram – 631606, Tamilnadu, India
Tel. No.:	91-44-27292316

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Kannai Ahnaidu Anandh

Designation :

Director

Address :

26, Loganatha Nagar II Street, Choolaimedu, Chennai - 600094, Tamilnadu, India

Date of Birth/Age :

15.09.1966

Date of Appointment :

20.12.2010

DIN No.:

01827481

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	U27106TN2004PLC054718	LAKSHMI BALAJI ALLOYS LIMITED	Director	24/11/2004	24/11/2004	-	Active	NO
2	U27101TN2005PTC055788	SAKTHI FERRO ALLOYS (INDIA) PRIVATE LIMITED	Managing director	29/03/2005	29/03/2005	-	Active	NO
3	U29259TN2007PTC065667	JINSUNG AUTO SOLUTIONS PRIVATE LIMITED	Director	10/12/2007	10/12/2007	-	Active	NO
4	U74999TN2007PTC065757	NEST FACILITY MANAGEMENT SERVICES PRIVATE LIMITED	Director	17/12/2007	17/12/2007	10/10/2013	Active	NO
5	U74910TN2008PTC066009	NEST SOLUTIONS AND SERVICES PRIVATE LIMITED	Director	09/01/2008	09/01/2008	-	Strike off	NO
6	U27106TN2008PLC066844	DRA INDUSTRIES LIMITED	Director	14/09/2010	27/01/2010	30/11/2013	Active	NO
7	U74899TN1992PLC077246	GOLD PET POLYMERS LIMITED	Additional director	02/08/2010	02/08/2010	10/09/2011	Active	NO
8	U45202TN2010PTC078214	UNO ENGINEERING AND CONSTRUCTION INDIA PRIVATE LIMITED	Director	24/11/2010	24/11/2010	-	Strike off	NO
9	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director	20/12/2010	20/12/2010	-	Active	NO
10	U45203TN2011PTC080294	SAKTHI PROPERTY DEVELOPERS INDIA PRIVATE LIMITED	Managing director	25/04/2011	25/04/2011	-	Active	NO
11	U45206TN2011PTC080293	SAKTHI FOUNDATIONS PRIVATE LIMITED	Managing director	25/04/2011	25/04/2011	-	Active	NO
12	U29196TN2007PTC063106	PERFECT WEIGHING SYSTEM PRIVATE LIMITED	Director	06/06/2011	06/06/2011	10/02/2015	Active	NO
13	U28113TN2011PTC081631	SAKTHI STAMPINGS INDIA PRIVATE LIMITED	Director	25/07/2011	25/07/2011	-	Active	NO
14	U28990TN2012PTC084359	MAITHRI STEELS PRIVATE LIMITED	Director	07/02/2012	07/02/2012	-	Active	NO
15	U27106TN2010PTC074826	EMJAY STEEL UDYYOG PRIVATE LIMITED	Managing director	03/12/2012	24/11/2012	07/12/2012	Active	NO
16	U74140KA2009PTC049340	SFS Equipments Private Limited	Additional director	27/06/2014	27/06/2014	-	Active	NO
17	U27106TN2014PTC097573	SAKTHI STEEL INDUSTRIES INDIA PRIVATE LIMITED	Director	30/09/2014	30/09/2014	-	Active	NO

Name :

Mr. Satish Kumar

Designation :

Director

Address :

1/88, Kondancheri Vill, Kondancheri Po, Thiruvallur, Thiruvallur - 631402, Tamilnadu, India

Date of Birth/Age :

02.04.1970

Date of Appointment :

20.12.2010

DIN No.:

01885355

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	U24117TN1996PTC036907	SUBA ORGANICS PRIVATE LIMITED	Director	13/11/1996	13/11/1996	-	Active	NO
2	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director	20/12/2010	20/12/2010	-	Active	NO
3	U28113TN2011PTC081631	SAKTHI STAMPINGS INDIA PRIVATE LIMITED	Director	25/07/2011	25/07/2011	-	Active	NO
4	U27100TN2012PTC087936	J.B.A Steels Enterprises Private Limited	Additional director	09/04/2014	09/04/2014	10/10/2014	Active	NO
5	U27320TN2011PTC082363	J.B.A STEELS PRIVATE LIMITED	Additional director	09/04/2014	09/04/2014	10/10/2014	Active	NO
6	U27106TN2014PTC097573	SAKTHI STEEL INDUSTRIES INDIA PRIVATE LIMITED	Director	30/09/2014	30/09/2014	-	Active	NO

Name :

Mr. Divakar

Designation :

Director

Address :

No.1/81, Kondanjencheri, Perambakkam Panchayat, Tiruvallur - 631402, Tamilnadu, India

Date of Birth/Age :

05.03.1973

Date of Appointment :

22.08.2011

DIN No.:

01989005

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	U24117TN1996PTC036907	SUBA ORGANICS PRIVATE LIMITED	Additional director	18/04/2007	18/04/2007	-	Active	NO
2	U45203TN2011PTC080294	SAKTHI PROPERTY DEVELOPERS INDIA PRIVATE LIMITED	Additional director	27/04/2011	27/04/2011	-	Active	NO
3	U45206TN2011PTC080293	SAKTHI FOUNDATIONS PRIVATE LIMITED	Director	26/09/2012	27/04/2011	-	Active	NO
4	U28113TN2011PTC081631	SAKTHI STAMPINGS INDIA PRIVATE LIMITED	Director	25/07/2011	25/07/2011	-	Active	NO
5	U27310TN2010PLC078488	SAKTHI STEEL INDUSTRIES LIMITED	Director	22/08/2011	22/08/2011	-	Active	NO
6	U27101TN2005PTC055788	SAKTHI FERRO ALLOYS (INDIA) PRIVATE LIMITED	Director	22/08/2011	22/08/2011	-	Active	NO
7	U29259TN2007PTC065667	JINSUNG AUTO SOLUTIONS PRIVATE LIMITED	Director	19/10/2011	19/10/2011	-	Active	NO
8	U74140KA2009PTC049340	SFS Equipments Private Limited	Additional director	27/06/2014	27/06/2014	-	Active	NO
9	U27106TN2014PTC097573	SAKTHI STEEL INDUSTRIES INDIA PRIVATE LIMITED	Director	30/09/2014	30/09/2014	-	Active	NO

MAJOR SHAREHOLDERS

AS ON 30.09.2014

SHAREHOLDERS DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers, Dealers of Iron and Steel Products.
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Not Available

Bankers :

Banker Name :	City Union Bank Limited
Branch :	Old No.42, New No.107, Dr. Alagappa Road, Purasawalkam, Chennai – 600084, Tamilnadu, India
Person Name (With Designation) :	Not Available
Contact Number :	Not Available
Name of Account Holder :	Not Available
Account Number :	Not Available
Account Since (Date/Year of Account Opening) :	Not Available
Average Balance Maintained :	Not Available
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Not Available
Account Operation :	Not Available
Remark :	Not Available

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Rupee term loans from banks	59.696	74.457
Short Term Borrowings
Rupee term loans from banks	66.272	53.968
Working capital loans from banks	9.202	41.371
Total	135.170	169.796

Auditors :
Name :	Krupa and Company Chartered Accountants
Address :	No:5, Kumbhat Complex, 700 Poonamallee High Road, Aminjikarai, Chennai – 600029, Tamilnadu, India
PAN No.:	AABPI2273A
Collaborators :	Not Divulged
Membership :	Not Divulged
Associates :	Sakthi Ferro Alloys (India) Private Limited Sakthi Traders

CAPITAL STRUCTURE

AS ON 30.09.2014

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
564000	Equity Shares	Rs.10/- each	Rs.5.640 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	5.640	0.500	0.500
(b) Reserves & Surplus	56.115	5.462	0.750
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	51.400	51.400
Total Shareholders’ Funds (1) + (2)	61.755	57.362	52.650
(3) Non-Current Liabilities
(a) long-term borrowings	59.696	74.457	84.027
(b) Deferred tax liabilities (Net)	0.779	0.000	0.000
(c) Other long term liabilities	0.000	0.000	4.404
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	60.475	74.457	88.431
(4) Current Liabilities
(a) Short term borrowings	75.474	154.048	60.948
(b) Trade payables	441.639	298.876	110.510
(c) Other current liabilities	33.396	17.708	16.890
(d) Short-term provisions	2.538	1.987	0.986
Total Current Liabilities (4)	553.047	472.619	189.334
TOTAL	675.277	604.438	330.415
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	146.119	55.469	63.519
(ii) Intangible Assets	0.000	0.000	65.130
(iii) Capital work-in-progress	0.000	91.247	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.776	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	17.190	29.766	23.823
(e) Other Non-current assets	0.087	0.131	0.175
Total Non-Current Assets	165.172	176.613	152.647
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	202.536	317.671	86.682
(c) Trade receivables	268.516	51.122	71.410
(d) Cash and cash equivalents	13.194	11.182	4.391
(e) Short-term loans and advances	9.779	0.785	0.203
(f) Other current assets	16.080	47.065	15.082
Total Current Assets	510.105	427.825	177.768
TOTAL	675.277	604.438	330.415

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1242.795	971.383	262.749
		Other Income	2.798	3.554	1.032
		TOTAL (A)	1245.593	974.937	263.781
Less	EXPENSES
		Cost of Materials Consumed	843.569	697.238	209.150
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade	11.703	(16.874)	(20.156)
		Employee Benefits Expenses	11.002	9.920	3.273
		Other Expenses	339.063	248.253	57.516
		TOTAL (B)	1205.337	938.537	249.783
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.256	36.400	13.998
Less	FINANCIAL EXPENSES (D)		19.306	22.191	10.248
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.950	14.209	3.750
Less	DEPRECIATION/ AMORTISATION (F)		13.841	7.978	2.823
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		7.109	6.231	0.927
Less	TAX (H)		2.716	1.520	0.177
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		4.393	4.711	0.750
	Earnings Per Share (Rs.)		7.79	942.23	750.48

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	0.35	0.48	0.29
Operating Profit Margin (PBDIT/Sales)	(%)	3.24	3.75	5.33
Return on Total Assets (PBT/Total Assets)	(%)	1.06	1.21	0.28
Return on Investment (ROI) (PBT/Networth)		0.12	0.11	0.02
Debt Equity Ratio (Total Debt /Networth)		2.19	3.98	2.75
Current Ratio (Current Asset/Current Liability)		0.92	0.91	0.94

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	0.500	0.500	5.640
Reserves & Surplus	0.750	5.462	56.115
Share Application money pending allotment	51.400	51.400	0.000
Net worth	52.650	57.362	61.755
long-term borrowings	84.027	74.457	59.696
Short term borrowings	60.948	154.048	75.474
Total borrowings	144.975	228.505	135.170
Debt/Equity ratio	2.754	3.984	2.189

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	262.749	971.383	1242.795
		269.700	27.941

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	262.749	971.383	1242.795
Profit	0.750	4.711	4.393
	0.29%	0.48%	0.35%

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three 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	No
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
Short Term Borrowings
Loans and advances from related parties	0.000	58.709
Total	0.000	58.709

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10522903	13/08/2014	20,000,000.00	CITY UNION BANK LIMITED	149, BIG STREET, KUMBAKONAM,TANJORE DISTT, TANJORE DISTT, TANJORE DISTT, TAMIL NADU - 613001, INDIA	C23824923
2	10304252	02/02/2012 *	100,000,000.00	CITY UNION BANK LIMITED	OLD NO.42,NEW NO.107,DR.ALAGAPPA ROAD, PURASAWALKAM, CHENNAI, TAMIL NADU - 600084, INDIA	B35889666
3	10304251	11/06/2014 *	300,000,000.00	CITY UNION BANK LIMITED	OLD NO.42, NEW NO.107, DR. ALAGAPPA ROAD,, PURASA WALKAM,, CHENNAI, TAMIL NADU - 600084, INDIA	C11150901

*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.63.64
UK Pound	1	Rs.96.81
Euro	1	Rs.71.51

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
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	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		30

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.