MIRA INFORM REPORT

Report No. :	349610
Report Date :	10.11.2015

IDENTIFICATION DETAILS

Name :	AGNI STEELS PRIVATE LIMITED

Registered Office :	58/1, Avvaiyar Street, Teachers Colony, Erode – 638011, Tamilnadu
Tel. No.:	91-4294-230229

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	19.10.1989

Com. Reg. No.:	18-003060

Capital Investment / Paid-up Capital :	Rs.24.100 Million

CIN No.: [Company Identification No.]	U27310TZ1989PTC003060

IEC No.:	3292010357

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AABCA7819F

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Importer of TMT Bars, Sponge Iron, Billets.

No. of Employees :	400 (Approximately)

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

Maximum Credit Limit :	USD 964000

Status :	Satisfactory

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company incorporated in the year 1989 having satisfactory track. Turnover and profit of the company has slightly declined during FY 2014. However, networth base of the company is satisfactory. Liquidity position of the company is decent. General financial position of the company is normal and acceptable for business dealings. Trade relations are reported as fair. Business is active. Payment terms are reported as slow but correct. In view of long track record and acceptable financial base, 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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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	ICRA
Rating	Long term : BBB-
Rating Explanation	Moderate degree of safety and carry moderate credit risk.
Date	31.10.2015

Rating Agency Name	ICRA
Rating	Short term : A3
Rating Explanation	Moderate degree of safety and carry higher credit risk.
Date	31.10.2015

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Srinivasan
Designation :	Finance Head
Contact No.:	91-9842755446
Date :	10.11.2015

LOCATIONS

Registered Office :	58/1, Avvaiyar Street, Teachers Colony, Erode – 638011, Tamilnadu
Tel. No.:	Not Available
Mobile No.:	91-9965527274 (Mr. Sathu Bhaskar)
Fax No.:	Not Available
E-Mail :	agnierode@yahoo.com gnjayaram@gmail.com info@agnisteels.com
Website :	http://www.agnisteels.com

Factory 1 :	SF-562, Kavandanur Road, Ingur, Perundurai TK, Erode- 638058, Tamilnadu, India
Tel. No.:	91-4294-230229, 230211
Fax No.:	91-4294-230212

Factory 2:	S.F. No.632, Olapalayam Road, Ingur, Perundurai TK, Erode -638 052, Tamilnadu, India

DIRECTORS

AS ON 30.09.2014

Name :

Muthusamy Chinnasamy

Designation :

Director

Address :

Door No.2, Mohan Kumaramangalam St, Surampatty, Erode – 638009, Tamilnadu, India

Date of Birth/Age :

18.04.1957

Date of Appointment :

01.07.2010

DIN No.:

01659901

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	U27310TZ1989PTC003060	AGNI STEELS PRIVATE LIMITED	Director	01/07/2010	19/10/1989	-	Active	NO
2	U31200TZ1999PTC008999	SIVA ELECTRIC GENERATION PRIVATE LIMITED	Director	29/11/2003	29/11/2003	19/07/2010	Active	NO
3	U40108TZ2004PTC011170	ISVARYA WIND POWER PRIVATE LIMITED	Director	05/06/2004	05/06/2004	26/04/2011	Active	NO
4	U74990TZ2010PTC016266	ASPL VENTURES PRIVATE LIMITED	Director	05/08/2010	05/08/2010	-	Active	NO
5	U45201TZ2012PTC018919	GREENFIELD HOUSING INDIA Private Limited	Director	07/11/2012	07/11/2012	-	Active	NO

Name :

Ramanathan Krishnamurthy

Designation :

Director

Address :

No.1, Mari Amman Kiol Street, Kollampalayam, Erode – 638002, Tamilnadu, India

Date of Birth/Age :

31.12.1951

Date of Appointment :

01.07.2010

DIN No.:

01659946

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	U27310TZ1989PTC003060	AGNI STEELS PRIVATE LIMITED	Director	01/07/2010	19/10/1989	-	Active	NO
2	U31200TZ1999PTC008999	SIVA ELECTRIC GENERATION PRIVATE LIMITED	Director	29/11/2003	29/11/2003	19/07/2010	Active	NO
3	U40108TZ2004PTC011170	ISVARYA WIND POWER PRIVATE LIMITED	Director	05/06/2004	05/06/2004	26/04/2011	Active	NO
4	U74990TZ2010PTC016266	ASPL VENTURES PRIVATE LIMITED	Director	05/08/2010	05/08/2010	-	Active	NO
5	U55101TZ1996PTC007355	MUTHURANGA HOTELS AND RESORTS PRIVATE LIMITED	Director	08/08/2013	08/08/2013	-	Active	NO

Name :

Kaliannamudaliar Thangavelu

Designation :

Director

Address :

245/3, Aranmanaikattu Thottam, Nasiyanur Road, Veerappampalayam, Erode – 638011, Tamilnadu, India

Date of Birth/Age :

23.12.1954

Date of Appointment :

01.07.2010

DIN No.:

01733663

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	U27310TZ1989PTC003060	AGNI STEELS PRIVATE LIMITED	Director	01/07/2010	19/10/1989	-	Active	NO
2	U31200TZ1999PTC008999	SIVA ELECTRIC GENERATION PRIVATE LIMITED	Director	29/11/2003	29/11/2003	19/07/2010	Active	NO
3	U40108TZ2004PTC011170	ISVARYA WIND POWER PRIVATE LIMITED	Director	05/06/2004	05/06/2004	26/04/2011	Active	NO
4	U74990TZ2010PTC016266	ASPL VENTURES PRIVATE LIMITED	Director	05/08/2010	05/08/2010	-	Active	NO
5	U74999TZ2013PTC019983	SHAKTHI WALL PANELS PRIVATE LIMITED	Director	08/11/2013	08/11/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Srinivasan
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders		No. of Shares
Muthusamy Chinnasamy		388184
Ramanathan Krishnamurthy		541583
Kaliannamudaliar Thangavelu		465700
C Rajamani		90000
C. Sakthi Ganesh		182150
C Shanmugapariya		90000
T. Meenakshisundaram		11000
T Ponnammal		30000
M. Sathyabama		5000
M. Nithya		7000
K. Shenbagavalli		66000
K. Chandrakala		76500
Ratnakala		51500
K. Ramji		67750
T. Gunasundari		128500
T. Nanda Kumar		100333
T. Elango		108800

Total		2410000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00

Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of TMT Bars, Sponge Iron, Billets.

Products :

Item Code No.	Product Description
72142090	other Containing indentations produced during the rolling process or twisted after rolling

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Products :

Raw Material

Countries :

Saudi Arabia

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS : NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

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

End Users

No. of Employees :

400 (Approximately)

Bankers :

Bank Name	HDFC Bank Limited
Branch	HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, 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

Bank Name	The South Indian Bank Limited
Branch	Erode Branch, No 16, Veterinary Hospital Road, Near Gandhiji Road, Erode - 638001, Tamilnadu, 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

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Rupee term loans from banks [Hypothecation of Moveable and Immoveable properties, Stock and Book debts of the company]	0.958	1.854
Short-term borrowings
Working capital loans from banks [Hypothecation of Moveable and Immoveable properties, Stock and Book debts of the company]	240.710	234.762
Loans repayable on demand from others	0.000	3.771

Total	241.668	240.387

Auditors :
Name :	Karthikeyan and Jayaram Chartered Accountants
Address :	30, Bharathidasan Street, Teachers Colony ,Erode-11, Tamilnadu, India
PAN N Income-tax PAN of auditor or auditor's firm :	AADFG5927B

Memberships :	Not Available

Collaborators :	Not Available

Other related party :	ASPL Ventures Private Limited, Erode [U74990TZ2010PTC016266] (Common Directors)

Associate / An Entity in which company is Shareholder :	Arvind Green Infra Private Limited, Karur Arun Wind Mills India Private Limited, Karur Arvind Green Tech Private Limited, Karur Aditya Natural Teak Private Limited, Karur Amirthaa Wind Energy Private Limited, Karur Amirthaa Green Infra Private Limited, Karur N.S.L.Wind Power Private Limited, Hyderabad [U40300TG2005PTC047541] Kaveri Gas Power Limited, Chennai Sree Sakthi Steels, CBE Agni Steels SA Proprietary Limited, South Africa Joyhi Agencies KPR and Company

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

3,000,000	Equity Shares	Rs.10/- each	Rs.30.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2,410,000	Equity Shares	Rs.10/- each	Rs.24.100 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	24.100	24.100	24.100
(b) Reserves & Surplus	313.293	252.202	164.927
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	337.393	276.302	189.027

(3) Non-Current Liabilities
(a) long-term borrowings	4.938	5.550	37.114
(b) Deferred tax liabilities (Net)	56.138	57.458	57.548
(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)	61.076	63.008	94.662

(4) Current Liabilities
(a) Short term borrowings	244.214	240.173	205.451
(b) Trade payables	371.424	309.428	284.719
(c) Other current liabilities	79.785	160.240	119.812
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	695.423	709.841	609.982

TOTAL	1093.892	1049.151	893.671

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	331.545	355.123	378.166
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	14.089	14.701	13.925
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7.320	5.755	4.605
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	81.955	88.218	17.371
(e) Other Non-current assets	0.405	0.448	48.791
Total Non-Current Assets	435.314	464.245	462.858

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	285.049	245.027	160.649
(c) Trade receivables	242.727	177.960	74.225
(d) Cash and cash equivalents	58.165	89.966	13.326
(e) Short-term loans and advances	41.004	35.740	10.141
(f) Other current assets	31.633	36.213	172.472
Total Current Assets	658.578	584.906	430.813

TOTAL	1093.892	1049.151	893.671

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	3295.021	3382.205	2663.208
	Other Income
	TOTAL	3295.021	3382.205	2663.208

Less	EXPENSES
	TOTAL	3168.439	3222.860	2568.733

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	126.582	159.345	94.475

Less/ Add	DEPRECIATION/ AMORTISATION	30.145	30.317	29.958

	PROFIT/ (LOSS) BEFORE TAX	96.437	129.028	64.517

	TAX	30.021	40.443	21.689

	PROFIT/ (LOSS) AFTER TAX	66.416	88.585	42.828

	Earnings / (Loss) Per Share (Rs.)	27.55	36.76	NA

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current maturities of long-term debt	3.187	73.381	76.116
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	107.201	186.831	123.829
Net cash flows from (used in) operating activities	75.859	146.388	102.139

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Total Income)	(%)	2.02	2.62	1.61

Return on Total Assets (PBT/Total Assets}	(%)	8.99	12.54	7.37

Return on Investment (ROI) (PBT/Networth)		0.29	0.47	0.34

Debt Equity Ratio (Total Debt /Networth)		0.75	1.15	1.69

Current Ratio (Current Asset/Current Liability)		0.95	0.82	0.71

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	24.100	24.100	24.100
Reserves & Surplus	164.927	252.202	313.293
Share Application money pending allotment	0.000	0.000	0.000
Net worth	189.027	276.302	337.393

long-term borrowings	37.114	5.550	4.938
Short term borrowings	205.451	240.173	244.214
Current maturities of long-term debt	76.116	73.381	3.187
Total borrowings	318.681	319.104	252.339
Debt/Equity ratio	1.686	1.155	0.748

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)
Total Income	2663.208	3382.205	3295.021
		26.997	(2.578)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	2663.208	3382.205	3295.021
Profit	42.828	88.585	66.416
	1.61%	2.62%	2.02%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	----
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	---
33	Market information	---
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Rupee term loans from banks	0.355	0.811
Loans and advances from related parties	2.324	0.000
Other loans and advances	1.300	2.884
Short-term borrowings
Other loans and advances	3.505	1.641
Total	7.484	5.336

PERFORMANCE

The overall performance of the Company during the year can be considered satisfactory, turnover reduced by small amount (2.58%) and profit after taxation also reduced by 25 % during the year as compared to the preceding year. The net profit of Rs.66.416 Million has been taken to Reserves and Surplus account standing at Rs.313.292 Million (252.201 Million at the beginning of the year).

The Sponge Iron Unit of the Company functioned throughout the year and served as an effective backward integration and the most of the production of sponge iron, was for captive use as feedstock for the steel unit. Lease arrangement of the production facility at Paramathi Velur continued during the year.

The power generated from the own wind mill is 100% for captive use and there is no sale of power to Tamilnadu Electricity Board. The net income for the year from the wind mill segment was Rs.2.618 Million.

The dividend as recommended by the Board, if approved at the ensuing Annual General Meeting, will result in an outgo of Rs.1.205 Million towards payment of dividend besides the dividend tax of Rs. 0.204 Million.

FINANCE

No fresh shares were allotted during the year and the paid up capital remains unchanged at Rs. 24.100 Million as at the beginning of the year (Authorized Capital: Rs. 30.000 Million).

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10185205	05/11/2009	3,303,456.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	A73133589
2	90006183	20/10/2014 *	1,000,000,000.00	THE SOUTH INDIAN BANK LIMITED	T.S NO: 16, VETERINARY HOSPITAL ROAD, ERODE, TAMILNADU - 638001, INDIA	C40508103

* Date of charge modification

FIXED ASSETS

Land
Buildings
Office building
Factory building
Plant and equipment
Furniture and fixtures
Vehicles
Computer Equipments
Office 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 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.66.34
UK Pound	1	Rs.100.03
Euro	1	Rs.71.45

INFORMATION DETAILS

Information Gathered by :	SUP

Analysis Done by :	DIV

Report Prepared by :	SNT

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	--

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.