MIRA INFORM REPORT

Report No. :	320476
Report Date :	08.05.2015

IDENTIFICATION DETAILS

Name :	CAUVERY IRON AND STEEL (INDIA) LIMITED
Registered Office :	60/2, Pan Bazar, Secunderabad - 500003, Telangana
Tel No :	--
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	05.02.1991
Com. Reg. No.:	01-012285
Capital Investment / Paid-up Capital :	Rs. 67.143 Million
CIN No.: [Company Identification No.]	U27109TG1991PLC012285
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Iron and Steel
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 1900000
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 loss that company has incurred from its operational activities and huge external borrowing taken by 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 dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2014.

INFORMATION DECLINED

Management non co-operative

LOCATIONS

Registered Office :	60/2, Pan Bazar, Secunderabad - 500003, Telangana, India
Tel. No.:	91-40-27712156 / 27712172
Fax No.:	91-40-27718072
E-Mail :	ashokguptaa14@yahoo.com
Administrative Office :	C-53, Alie Balangar B – 77, Hyderabad -500037, Telangana, India
Tel. No.:	91-40-23776953 / 65453004
Fax No.:	91-40-23776943
E-Mail :	cauveryiron@yahoo.com
Corporate Office :	D-Block, 5^th Floor, Surya Towers, S.P. Road, Secunderabad – 500003, Hyderabad, Near ITC Bhadrachalam India
Tel No.:	91-40-27840370
Fax No.:	91-40-27840375
Mobile No.:	91-9666669401

DIRECTORS

As on : 30.09.2014

Name :

Mr. Ashok Kumar Gupta

Designation :

Managing Director

Address :

No. 141, Balamarai Housing Society, Mahendra Hills East, Marredpally, Secunderabad – 500003, Telangana, India

Date of Birth/Age :

14.02.1944

Date of Appointment :

05.02.1991

DIN No.:

01872512

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	U27109TG1991PLC012285	CAUVERY IRON AND STEEL (INDIA) LIMITED	Managing director	05/02/1991	05/02/1991	-	Active	NO
2	U27100TG1996PTC023972	APREY STEELS PRIVATE LIMITED	Managing director	11/05/2004	11/05/2004	-	Active	NO
3	U74140WB1995PTC067262	SPERM TRACOM PVT. LTD.	Director	02/09/2008	02/09/2008	-	Active	NO

Name :

Mr. Bhupesh Gupta

Designation :

Director

Address :

No. 141, Balamarai Housing Society, Mahendra Hills East, Marredpally, Secunderabad – 500003, Telangana, India

Date of Birth/Age :

27.11.1973

Date of Appointment :

02.02.1993

DIN No.:

01872593

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	U27109TG1991PLC012285	CAUVERY IRON AND STEEL (INDIA) LIMITED	Director	02/02/1993	02/02/1993	-	Active	NO
2	U27100TG1996PTC023972	APREY STEELS PRIVATE LIMITED	Director	28/04/2005	28/04/2005	-	Active	NO
3	U74140WB1995PTC067262	SPERM TRACOM PVT. LTD.	Director	02/09/2008	02/09/2008	-	Active	NO

Name :

Mr. Dinesh Gupta

Designation :

Director

Address :

9-7-99/3/1009 Hasmatpet, Old Bowenpally, Secunderabad – 500009, Telangana, India

Date of Birth/Age :

26.10.1977

Date of Appointment :

01.04.2001

DIN No.:

02613058

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	U27109TG1991PLC012285	CAUVERY IRON AND STEEL (INDIA) LIMITED	Director	01/04/2001	01/04/2001	-	Active	NO
2	U27100TG1996PTC023972	APREY STEELS PRIVATE LIMITED	Director	29/08/2013	29/08/2013	-	Active	NO

Name :

Mr. Prempal Gupta

Designation :

Director

Address :

909, Mansarovar Height Phase 3, Hasmapet, Secunderabad – 500003, Telangana, India

Date of Birth/Age :

01.04.1942

Date of Appointment :

05.02.1991

DIN No.:

02245468

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	U27109TG1991PLC012285	CAUVERY IRON AND STEEL (INDIA) LIMITED	Director	05/02/1991	05/02/1991	-	Active	NO
2	U27100TG1996PTC023972	APREY STEELS PRIVATE LIMITED	Director	29/08/2013	29/08/2013	-	Active	NO

Name :

Ms. Shaloo Gupta

Designation :

Director

Address :

Plot No. 141, Balamarai Housing Society, Mahendra Hills East, Marredpally, Secunderabad – 500003, Telangana, India

Date of Birth/Age :

20.04.1975

Date of Appointment :

01.01.2005

DIN No.:

01895391

Name :

Mr. Sudhir Kumar Samendra Narayan

Designation :

Director

Address :

N-2/77, IRC Vill:Nayapalli, Bhubaneswar – 751015, Orissa, India

Date of Birth/Age :

07.07.

Date of Appointment :

29.06.2010

DIN No.:

00516687

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	L27106WB1987PLC042756	HIMADRI CHEMICALS & INDUSTRIES LTD	Director	18/09/2006	11/07/2006	29/06/2009	Active	NO
2	L24299DL1971PLC005854	ORIENT ABRASIVES LIMITED	Director	20/09/2007	09/06/2007	10/02/2014	Active	NO
3	L74100AP1999PLC031191	STEEL EXCHANGE INDIA LIMITED	Director	29/09/2008	10/01/2008	27/06/2009	Active	NO
4	U27109TG1991PLC012285	CAUVERY IRON AND STEEL (INDIA) LIMITED	Director	29/09/2010	29/06/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 30.09.2014

SHAREHOLDER FILE ATTACHED

As on ; 31.03.2014

ALLOTTES FILE ATTACHED

As on : 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	35.71
Directors or relatives of Directors	64.29
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Iron and Steel
Products :	Iron Steel
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

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 :

Banker Name	Andhra Bank
Branch Address	Kachiguda Branch, Hyderabad, Telangana, 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
Banker Name	The Karur Vysya Bank Limited
Branch Address	5-8-363 to 365, Chirag Ali Lane, ABIDS, Telangana - 500001, Hyderabad, India
Banker Name	City Union Bank
Branch Address	Secunderabad Branch, 5-4-94, Lala Land Mark, M.G. Road, Raanigunj, Secunderabad – 50003, Talangana, India

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loan from Bank	1879.329	1150.026
SHORT TERM BORROWING
Working Capital loan from Bank	191.428	1526.534
Total	2070.757	2676.560

Auditors :
Name :	Arvind Jain and Associates Chartered Accountants
Address :	Hydri Complex, Pan Bazar, Hyderanad-500003, Telangana, India
PAN No.:	ACOPJ9666M
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

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
6714337	Equity Shares	Rs.10/- each	Rs.67.143 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	67.143	52.984	52.984
(b) Reserves & Surplus	606.599	803.880	784.060
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	62.500	0.000
Total Shareholders’ Funds (1) + (2)	673.742	919.364	837.044
(3) Non-Current Liabilities
(a) long-term borrowings	2642.137	1255.987	1521.156
(b) Deferred tax liabilities (Net)	167.182	81.475	77.670
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2809.319	1337.462	1598.826
(4) Current Liabilities
(a) Short term borrowings	836.290	1526.534	1229.982
(b) Trade payables	487.732	676.792	293.948
(c) Other current liabilities	16.426	361.861	3.563
(d) Short-term provisions	7.106	6.650	7.474
Total Current Liabilities (4)	1347.554	2571.837	1534.967
TOTAL	4830.615	4828.663	3970.837
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2463.181	2395.366	1817.728
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	11.235	12.772	12.150
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	36.074	40.978	48.268
(e) Other Non-current assets	0.000	0.000	377.226
Total Non-Current Assets	2510.490	2449.116	2255.372
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1555.515	1597.719	1129.085
(c) Trade receivables	639.525	689.305	531.671
(d) Cash and cash equivalents	43.579	6.995	2.753
(e) Short-term loans and advances	81.506	85.528	51.956
(f) Other current assets	0.000	0.000
Total Current Assets	2320.125	2379.547	1715.465
TOTAL	4830.615	4828.663	3970.837

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Revenue from operations	5162.782	6576.452	4773.511
	Other Income	38.107	10.086	6.193
	TOTAL (A)	5200.889	6586.538	4779.704
Less	EXPENSES
	Cost of Materials Consumed	1207.814	1481.660	359.151
	Purchases of Stock-in-Trade	3473.292	4532.708	4277.114
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	94.072	(177.743)	(296.999)
	Employees benefits expense	21.487	16.971	27.782
	Other expenses	234.143	262.525	227.340
	TOTAL (B)	5030.808	6116.121	4594.388
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	170.081	470.417	185.316
Less	FINANCIAL EXPENSES (D)	378.116	353.830	114.947
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(208.035)	116.587	70.369
Less/ Add	DEPRECIATION/ AMORTISATION (F)	115.501	85.988	33.016
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(323.536)	30.599	37.353
Less	TAX (I)	43.458	10.455	40.295
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	(366.994)	20.144	(2.942)
	Earnings / (Loss) Per Share (Rs.)	(54.66)	3.00	(0.44)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(7.11)	0.31	(0.06)
Operating Profit Margin (PBITD/Sales)	(%)	3.29	7.15	3.88
Return on Total Assets (PBT/Total Assets}	(%)	(6.71)	0.64	0.94
Return on Investment (ROI) (PBT/Networth)		(0.48)	0.03	0.04
Debt Equity Ratio (Total Debt /Networth)		5.16	3.03	3.29
Current Ratio (Current Asset/Current Liability)		1.72	0.93	1.12

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	52.984	52.984	67.143
Reserves & Surplus	784.060	803.880	606.599
Share Application Money pending Allotment	0.000	62.500	0.000
Net worth	837.044	856.864	673.742
long-term borrowings	1521.156	1255.987	2642.137
Short term borrowings	1229.982	1526.534	836.290
Total borrowings	2751.138	2782.521	3478.427
Debt/Equity ratio	3.287	3.247	5.163

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	4773.511	6576.452	5162.782
		37.770	(21.496)

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	4773.511	6576.452	5162.782
Profit	(2.942)	20.144	(366.994)
	(0.06%)	0.31%	(7.11%)

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	Yes
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	No
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	No

FINANCIAL REVIEW

During the financial year 2013-14, the company has achieved a turnover of Rs.5162.700 Million as against a turnover of Rs. 657.64. The Company has, on a consolidated basis, incurred a loss of Rs. (323.600) Million as against a profit after tax of Rs. 20.100 Million earned during the previous year. The Reserves and Surplus is down to Rs. 606.600 Million as against Rs. 803.900 Million in the previous year.

The turnover of the company was decreased by 27.38% on account of market recession and under utilization of production capacity. The has suffered a loss on account of increase in input cost, lesser margin on account of adverse market conditions, separation of the state of Andhra Pradesh.

During the period remove, the consortium bankers viz. State Bank of India, The Karur Vysya Bank Ltd and City Union Bank were pleased to approved the company’s proposal for restructuring of existing debts to the tune of Rs. 3101.500 Million. The company has accepted the sanction and entered into necessary agreements with bankers lead by State Bank of India to avail the CDR package. As per the CDR norms, the company has appointed SBI CAP Trustee Co Ltd as Trustee which shall be responsible to the bankers of the securities provided by the company for the debts secured.

FUTURE OUTLOOK

THE INDIAN STEEL INDUSTRY

The domestic economy in India witnessed a significant slowdown during the year with certain sectors like automotive, capital goods showing a marked slowdown in demand. The moderation in the industrial growth particularly in the manufacturing sector is largely attributed to sluggish growth in investments and tighter monetary policy. Amongst the main steel consuming sectors, the construction sector grew at around 5.9%and the consumer durables sector grew by 4.5% while the capital goods is expected to have declined significantly by around 10.1% and the automotive sector grew by 1.2% slowly from tight levels. However, the impact of recent recovery is yet to show material impact on the economy.

The Indian economy grew 4.9% in 2013-14 compared to a decadal average of 7.6 percentage (2003-04 to 2013-14) largely on account of declines in the mining, capital goods and consumer goods sectors. India reported the second highest growth in steel output among the 10 leading steel producing countries, turning net exporter in 2013-14. Indi’s steel production grew 4.8% in February 2014 (over February 2013); cumulative growth in April February 2013-14 was 4.2% over the corresponding period of the previous year.

India’s consumption of total finished steel grew 0.6% y-o-y during April-March 2013-14 to 73.93 MT]. The construction sector accounted for around 60% of the country’s total steel demand and the automobile industry consumed 15%, both of which reported weak growth during the year under review. The result was that steel realizations and off take moderated in 2013-14.

Consequently, the country became a net steel exporter in 2013-14. Total steel exports by India during

2013-14 stood at 5.59 MT, as against imports of 5.44 MT.

India’s steel production is expected to reach 200 million tonnes by 2020 compared to 81 million tonnes in the previous year following capacity increases (Greenfield and Brownfield). The result is that India is expected to emerge as the world’s third largest steel producer

The directors are confident that the steel market will come out of the difficult phase and the company will do good business in the coming days in view of thrust given by the new government at the Centre particularly to the infrastructural sectors.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term loan from others	3.131	95.186
Loans and Advances from Related parties	658.513	8.086
Other loans and Advances	101.164	2.689
SHORT TERM BORROWING
Loans and Advances from Related parties	644.862	0.000
Total	1407.670	105.961

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10504670	03/11/2014 *	3,101,500,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai - 400005, Maharashtra, INDIA	C34906057
2	10414479	12/02/2013	75,000,000.00	THE KARUR VYSYA BANK LIMITED	5-8-363 TO 365,, Chirag Ali Lane , Abids, Hyderabad, Andhra Pradesh - 500001, INDIA	B71689848
3	10344052	07/03/2013 *	595,000,000.00	State Bank of India	Ashok Myhome chambers, commercial branch, S P Road, Secunderabad, Andhra Pradesh - 500003, INDIA	B72181233
4	10254302	18/04/2012 *	220,000,000.00	The Karur Vysya Bank Limited	5-8-363 to 365, First Floor, Chirag Ali Lane, Abids, Hyderabad, Andhra Pradesh - 500001, INDIA	B38593158
5	10221584	07/01/2013 *	600,000,000.00	CITY UNION BANK LIMITED	5-4-94,Lala Land Mark, M.G. Road, Rani Gunj, Secun  Derabad, Andhra Pradesh - 500003, INDIA	B69190130
6	10210005	16/10/2010 *	1,600,000,000.00	STATE BANK OF INDIA COMMERCIAL BRANCH SECUNDERABAD	ASHOKA MY HOME CHAMBERS, S.P.ROAD SECUNDERABAD, S  ECUNDERABAD, Andhra Pradesh - 500003, INDIA	A97730154
7	80016465	27/12/2013 *	810,000,000.00	CITY UNION BANK LIMITED	SECUNDERABAD BRANCH, 5-4-94, LALA LAND MARK, M. G  . ROAD, RANIGUNJ, SECUNDERABAD, Andhra Pradesh - 5  00003, INDIA	B96512595
8	90132443	06/06/2005 *	35,000,000.00	CITY UNION BANK LTD.	DHANDA HOUSE, M. G. ROAD, SECUNDERABAD, Andhra Pr  adesh, INDIA	-
9	90132408	26/07/1999 *	35,000,000.00	CITY UNION BANK LTD.	DHANDA HOUSE, M. G. ROAD, SECUNDERABAD, Andhra Pr  adesh, INDIA	-
10	90132329	01/10/1996 *	35,000,000.00	CITY UNION BANK LTD.	55, M. G. ROAD, SECUNDERABAD, Andhra Pradesh, IND  IA	-

* Date of charge modification

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.57
UK Pound	1	Rs.97.98
Euro	1	Rs.70.53

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SUJ

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	3
--PROFITABILITY	1~10	-
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.