MIRA INFORM REPORT

Report Date :

21^st June 2006

IDENTIFICATION DETAILS

Name :	ISCON SURGICALS LIMITED
Registered Office :	22/4, Heavy Industrial Area, Jodhpur - 342 001, Rajasthan (INDIA)
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	18.01.1995
Com. Reg. No.:	17-5963
CIN No.: [Company Identification No.]	U24232RJ1991PLC005963
TAN No.: [Tax Deduction & Collection Account No.]	JDHI00975C / JDHI01166E
PAN No.: [Permanent Account No.]	AAACI3030K
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	The company is engaged in Manufacturing and Dealing in all kinds of Surgical Instruments, Optical Equipments, Anatomical, Orthopaedic and Surgical Appliances and ancilliary goods.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 175000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	22/4, Heavy Industrial Area, Jodhpur - 342 001, Rajasthan (INDIA)
Tel. No.:	91-291-2635164 / 2635165 / 2635168
Fax No.:	91-291-2741193
E-Mail :	jmcindia@satyam.net.in info@pricon.org jmcindia@vsnl.com jmc@del3.vsnl.net.in
Website :	http://www.isconsurgicals.com
Factory 1 :	22/4, Heavy Industrial Area, Jodhpur, Rajasthan - 342 001, (INDIA)
Tel. No.:	91-291-2635164 / 2635165 / 2635168
Fax No.:	91-291-2741193
Factory 2 :	B-70, MIA, Basni Phase – II, jodhpur – 342003, Rajasthan, India
Branches :	v 1596, Bhagirath Palace, 2^nd Floor, Deewan Hall Street, Delhi - 110 006 v 21/202, Thakur House, K. V. Rajguru Road, Girgaum, Mumbai - 400 004

DIRECTORS

Name :	Mr. Narendra Kumar Jain
Designation :	Director
Address :	620 / 11^th A Pal Road, Sardarpura, Jodhpur– 342003, Rajasthan
Date of Birth/Age :	10.07.1956
Date of Appointment :	16.12.2002
Name :	Mr. Mahendra Prakash Jain
Designation :	Director
Address :	620 / 11^th A Pal Road, Sardarpura, Jodhpur– 342003, Rajasthan
Date of Birth/Age :	23.05.1961
Date of Appointment :	16.12.2002
Name :	Mr. Sharad Patwardhan
Designation :	Director
Address :	A- 258, Shastri Nagar, Jodhpur, Rajasthan
Date of Birth/Age :	25.11.1953
Date of Appointment :	15.11.2002
Name :	Braham Deo Bhati
Designation :	Director
Address :	410-B, Shivam Bhagat Singh Road, Nagorigate, Jodhpur, Rajasthan
Date of Birth/Age :	10.12.1954
Date of Appointment :	15.11.2002
Name :	Mr. Manohar Lal Jain
Designation :	Director
Address :	620 / 11^th A Pal Road, Sardarpura, Jodhpur– 342003, Rajasthan
Date of Birth/Age :	05.01.1953
Date of Appointment :	30.09.2005
Name :	Mr. Amit Baxi
Designation :	Director
Address :	19E/ 3, Chopasni, Housing Board, Jodhpur – 342008, Rajasthan
Date of Birth/Age :	17.11.1974
Date of Appointment :	11.08.2003
Name :	Mr. Sohan Lol Jain
Designation :	Director
Address :	620 / 11^th A Pal Road, Sardarpura, Jodhpur– 342003, Rajasthan
Date of Appointment :	15.11.2005

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Mahendra Prakash Jain	809725
Mr. Sohan Lal Jain	245225
Mr. Narendra Kumar Jain	502125
Mrs. Urmila Jain	215125
Mrs. Chandra Jain	206125
Mrs. Sheela Jain	150375
Mr. Sanklecha Johari Mal	14000
Mr. Sayar Kanwer Sanklecha	28375
Mrs. Saroj Bafna	12500
Mrs. Anita Bafna	25875
Mr. Jethmal Bafna	112600
Mr. Bafna Hemant Kumar	12500
Mr. Saroj Saraswat	12500
Mr. Prakash Kumar Knwar	12500
Mr. Parmanand Ojha	12500
Mr. Ojha Laxmi Devi	12500
Mr. Madhubala Bhati	12500
Mr. Dagga Vijay Kumar	12500
Mr. Gala Ganesh D	18750
Mr. Bhandari Rajdulari	15125
Mr. R C Bohra	12500
Mr. Mukesh V Shah	25000
Tatiya Cap Tubes India Private Limited	256000
N R Foundation	110500
Mr S V Foundation	88000
Mr. Chattah Singh Bhandari	15000
Mrs. Rita Jain	12000
Manohar Lal Jain HUF	44000
Jain Sohan Lal - HUF	30000
Jain Shanti Lal	17500
Jain Nikhil	99100
Jain Nidhi	95000
Jain Shruti	109500
Jain Nitin	57000
Rajlumar Sanklecha HUF	13000
Jain Metal Components Private Limited	71500
Rishabh Jain	33000
Vishrut Jain	15500
Nivini Enterprises Private Limited	95000

BUSINESS DETAILS

Line of Business :

The company is engaged in Manufacturing and Dealing in all kinds of Surgical Instruments, Optical Equipments, Anatomical, Orthopaedic and Surgical Appliances and ancilliary goods.

Products :

Item Code No (ITC Code)	Product Description
5963	Disposable Synnges, Needles IV Sets, Perfusion Sets, Allied and Moulded Items.

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Surgical (Unit - I)	Mill Pcs	--	127.50
Surgical (Unit – II)	Mill Pcs	90	50
Disposable Needle	Nos.			81830782
I. V. Set	Nos.			562335
Disposable Needle with / without syringes	Nos.			51601714
Suture Needle	Nos.			-
Others	Nos.			743

GENERAL INFORMATION

Customers :

v Agarwal Packers

v Bhandan Offset

v BR Surgicals

v Javco Plastics

v Laxmi Polymers

v Macro Lab India

v Micro Shap Needles Private Limited

v Precision Machine Tools

v Sudeep Industrial

v Uma Plastic Industries

No. of Employees :

190

Bankers :

State Bank of Bikaner & Jaipur, Jalori Gate, Jodhpur, Rajasthan

State Bank of India, Commercial Branch, Shastri Nagar, Jodhpur, Rajasthan, India

Facilities :

Secured Loan	(Rs in millions)
From State bank of India Cash Credit / Book debts	33.381
Term loan (Both the above credit facilities from Bank are secured by hypothecation of Raw Materials, Stock in Process, finished goods, Receivables, Movable, Machinery and other Moveable, Book, Debts and other assets further secured by equitable mortgage of factory land and building personal guarantee of 2 directors and 2 relatives)	11.025
ICICI Bank Loan (Secured by hypothecation of Vehicles)	0.695
Associated India Financial Services Private Limited (Secured by Hypothecation of Vehicles)	0.000
Total	45.101

Banking Relations :	Satisfactory
Auditors :	H. S. Darda and Company Chartered Accountants 36-A, Suraj Nagar (East), Civil Lines, Jaipur – 302006, Rajasthan
Tel. No.:	91-141-2222833 / 2220062
Fax No.:	91-141-2220918
E-Mail :	swmh@datainfosys.net
Mumbai Office :	7, Trivedi Niwas building , 3, New Nagardas Road, Andheri W, Mumabi – 400069 Tel No : 91-22-28201959 / 28207454
Associates/Subsidiaries :	² Jain Metal Components (Private) Limited, 16-B (II), H.I.A., Jodhpur - 342 003, Rajasthan Manufacturers of Brass Components, Reusable Needles and Special Needles. ² Iscon Research Lab. Private Limited, B-70, M. I. A., 2^nd Phase, Basni, Jodhpur - 342 005, Rajasthan - Manufacturers of Aeromatic Chemicals

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3788000	Equity Shares	Rs. 10/- each	Rs. 37.880 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		37.880	37.680
2] Share Application Money		0.000	1.000
3] Reserves & Surplus		7.303	3.442
4] (Accumulated Losses)		0.000	0.000
NETWORTH		45.183	42.122
LOAN FUNDS
1] Secured Loans		45.103	18.968
2] Unsecured Loans		28.769	30.138
TOTAL BORROWING		73.872	49.106
DEFERRED TAX LIABILITIES		5.477	3.047
TOTAL		124.532	94.275
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		61.875	54.666
Capital work-in-progress		4.843	0.000
INVESTMENT
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.353	17.065
	Sundry Debtors	42.564	29.888
	Cash & Bank Balances	5.626	4.064
	Other Current Assets	0.000	0.000
	Loans & Advances	6.838	6.110
Total Current Assets		78.381	57.127
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	21.056	17.814
	Provisions
Total Current Liabilities		21.056	17.814
Net Current Assets		57.325	39.314
MISCELLANEOUS EXPENSES		0.489	0.295
TOTAL		124.532	94.275

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	130.343	99.051
Profit/(Loss) Before Tax	4.871	2.976
Provision for Taxation	0.380	0.228
Profit/(Loss) After Tax	4.491	2.748
Export Value	7.409	8.126
Import Value	22.000	21.457
Total Expenditure	125.472	96.075

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	3.44	3.00
Net Profit Margin (PBT/Sales)	(%)	3.73	2.77
Return on Total Assets (PBT/Total Assets}	(%)	3.36	2.66
Return on Investment (ROI) (PBT/Networth)		0.10	0.07
Debt Equity Ratio (Total Liability/Networth)		2.10	1.59
Current Ratio (Current Asset/Current Liability)		3.72	3.21

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

v Factory Land

v Factory Building

v Plant and Machinery

v Computer

v Furniture and Fixture

v Vehicles

v Office Equipments

v Dies and Tools

The company is in trade terms with the following :

² Teschima Korea Company Limited

² Korea Saito Medical

² Noritake Company Limited, Japan

² C & P Plus, Korea

² K. K. Polymers, Ganpati Plaza, M. I. Road, Jaipur, Rajasthan

² Mohnot Stainless Steel Limited, Heavy Industrial Area, Jodhpur, Rajasthan

ISCON SURGICALS LTD. AN ISO:9001-2000 CERTIFIED COMPANY is the renowned manufacturer and exporter of wide range of Surgical Instruments, Medical Surgical Instruments, Quality Reusable & Disposable Surgical products.

It is part of JMC Group of Companies, the first established in the year 1978 by three Technocrats under the leadership of visionary Mr. S.L. Jain.

Profile:
the company is equipped with most modern machining center, Moulding machines, fully automatic Syringe & Needle assembly machines, Electroplating & Electropolishing, Automatic burr free tube Cutting & Grinding machines all in-house. The group at present employs about three hundred dedicated workforce. They are leading manufacturers, exporters and suppliers of surgical Medical Surgical Instrument and surgical instruments in India.

As a matter of policy, they maintain very high standards and do not compromise on quality at all. With uncompromising dedication to the profession, they have a focus for our action that unifies us, adds value to our work and simplifies the modern surgical procedures.

Products:
Our diversified range of surgical supplies and surgical instruments include -

• Disposable Syringes and Needles
• General Surgery Needles
• Opthalmic Microsurgical Instruments
• Metal Components

Medical Surgical Instruments
Disposable Syringes & Needles	Disposable Syringes || Disposable Needles || General Surgery Needles
Ophthalmology Instruments	Ophthalmic Instuments || Cannula || Blades
Sheet Metal Components	LPG Valve & Regulator Components || Hydraulic & Pneumatic Fittings || Air & Oil Pipe Assembilies || Automobiles Components || Bio Medical Components || Electrical & Electronics Components

Name of the company	ISCON SURGICALS LIMITED
Presented By	Mr. N K Jain Director
1) Date and description of instrument creating the change	13.04.2002 General Agreement for grant of small industries advances and hypothecations of movable, book debts and other assets whether present or further charges thereon for all the indebtedness and liability of the borrower to the bank present and future the present limit having been determined at Rs. 27.900 13.04.2002 agreement for grant of small industries advances regarding hypothecations of movable, book debts and other assets 13.04.2002 agreement for grant of small industries advances regarding advance against receivable and bills in the course of collection 13.04.2002 agreement for grant of small industries advances regarding letters of credit, Guarantees and indemnities
2) Amount secured by the charge/amount owing on the securities of charge	Total Cash credit on stocks Rs. 12.500 For CC on book debts – Rs. 1.500 for EPC and Rs. 0.500 for FBP/FBD Forgign Letters of credit – Rs. 2.500 Inland Letters of credit - Rs. 4.000 Bank Guarantee – Rs. 4.000 One time FLC – Rs. 2.400 Total Limits – Rs. 27.900
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecations of raw material, stock in process, finished goods, receivable, movables, book debts and other assets
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest : 2.25 % above SBAR with minimum of 13.25 % p.a. Margin : Raw Materials – 25 % Stock in process – 25 % Finished good : 25 % Domestic receivables : 50 % Plant and machinery : 25 % L/C and B/G - 10 %
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Commercial Branch, Shastri Nagar, Jodhpur
6) Date and brief description of instrument modifying the charge	13.04.2004 general agreement of loan for overall limit 13.04.2004 supplemental agreement of hypothecations of goods and assets 30.11.2005 Letter regarding the grant of individual limits within the overall limit 13.04.2004 Recital for Extension of Equitable mortgage of factory land and building situated at 22/4, Heavy Industrial Area, Jodhpur.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Credit facilities being enhanced from Rs. 27.900 millions to Rs. 54.500 as follows cash credit hypothecation Rs. 30.000 SLC Rs. 4.500 ILC Rs. 6.500, FLC Rs. 11.000 and BG Rs. 2.500 . Totalling to Rs. 54.500 millions security : First charge on all current assets of the company and first charge on entire fixed assets of company assets of the company including Equitable mortgage of factory land and building situated at 22/4, Heavy Industrial Area, Jodhpur.
Name of the company	ISCON SURGICALS LIMITED
Presented By	Mr. M P Jain Director
1) Date and description of instrument creating the change	06.10.2004 Supplemental agreement of Loan for increase in the overall limit 06.10.2004 Supplemental agreement of goods and assets for increase in the overall limit 06.10.2004 Supplemental agreement of pleaged of goods and assets for increase in the overall limit
2) Amount secured by the charge/amount owing on the securities of charge	Terms loan Rs. 23.000
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Extension of equitable mortgage of factory land and building situated at B – 70 Bansi , Jodhpur Extension of equitable mortgage of factory land and building situated at 22/4, Heavy Industrial Area, Jodhpur Hypothecations of raw material, stock in process, finished goods, receivable, movables, book debts and other assets
4) Gist of the terms and conditions and extent and operation of the charge.	A fresh term loan has been granted to the company apart of the cash credit limit of Rs. 54.500 and trem loan of Rs. 700 making the total exposure to the company to Rs. 84.500 hence supplanted agreement have been executed to secure the fresh term loan of Rs. 23.000 Interest : @ 0.75 % belown SBAR with comes ot 9.50 % p.a. at monthly rests Repayments in 24 quarterly instalments First 10 instalments will be of Rs. 0.900 each and last 14 instalments of Rs. 1.000 Commencing form 01.01.2005 last instalment to be paid on 01.10.2010 Bank has agreed to release the term loan of Rs.0.230 pending surgical limited and creation of equitable of load and building situated at B – 70 Bansi , Jodhpur In the event of delay in completion of formalities and non creation of equitable mortgage within 3 months higher interest by 1 % then stipulated will be charged.
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Commercial Branch, Shastri Nagar, Jodhpur
6) Date and brief description of instrument modifying the charge	NA
	NA
Name of the company	ISCON SURGICALS LIMITED
Presented By	Mr. M P Jain Director
1) Date and description of instrument creating the change	13.04.2002 General Agreement for grant of small industries advances and hypothecations of movable, book debts and other assets whether present or further charges thereon for all the indebtedness and liability of the borrower to the bank present and future the present limit having been determined at Rs. 27.900 13.04.2002 agreement for grant of small industries advances regarding hypothecations of movable, book debts and other assets 13.04.2002 agreement for grant of small industries advances regarding advance against receivable and bills in the course of collection 13.04.2002 agreement for grant of small industries advances regarding letters of credit, Guarantees and indemnities
2) Amount secured by the charge/amount owing on the securities of charge	Total Cash credit on stocks Rs. 12.500 For CC on book debts – Rs. 1.500 for EPC and Rs. 0.500 for FBP/FBD Forgign Letters of credit – Rs. 2.500 Inland Letters of credit - Rs. 4.000 Bank Guarantee – Rs. 4.000 One time FLC – Rs. 2.400 Total Limits – Rs. 27.900
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecations of raw material, stock in process, finished goods, receivable, movables, book debts and other assets
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest : 2.25 % above SBAR with minimum of 13.25 % p.a. Margin : Raw Materials – 25 % Stock in process – 25 % Finished good : 25 % Domestic receivables : 50 % Plant and machinery : 25 % L/C and B/G - 10 %
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Commercial Branch, Shastri Nagar, Jodhpur
6) Date and brief description of instrument modifying the charge	18.04.2005 Letter regarding the grant of individual limits within the overall limit 18.04.2005 Letter of Extension of Equitable mortgage of factory land and building situated at 22/4, Heavy Industrial Area, Jodhpur.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Total cash credit limit of Rs. 84.500 as follows, CC Hypothecations Rs. 35.000 SLC – Rs. 30.000, SLC Rs. 4.500 ILC Rs. 6.500, FLC Rs. 11.000 and BG Rs. 2.500 . Totalling to Rs. 54.500 millions Margin money and other terms as given in the form C-5 Additional security given by way if Equitable mortgage of land and building situated at B – 70 Bansi , Jodhpur to secure the all dues from the company.
Name of the company	ISCON SURGICALS LIMITED
Presented By	Mr. M P Jain Director
1) Date and description of instrument creating the change	13.04.2002 General Agreement for grant of small industries advances and hypothecations of movable, book debts and other assets whether present or further charges thereon for all the indebtedness and liability of the borrower to the bank present and future the present limit having been determined at Rs. 700.000 13.04.2002 agreement for medium term loan against hypothecation of movable machinery.
2) Amount secured by the charge/amount owing on the securities of charge	Medium Term loan of Rs. 700 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecations of Machinery, movables and book debts
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest : 2.25 % above SBAR with minimum of 13.75 % p.a. Margin : Raw Materials – 25 % Repayment in 24 quarterly instalments starting form 30.06.2002. first 20 instalments will be of Rs. 29.000 each and last 4 installments of Rs. 0.300 Plant and machinery : 25 % L/C and B/G - 10 %
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Commercial Branch, Shastri Nagar, Jodhpur
6) Date and brief description of instrument modifying the charge	18.04.2005 Letter regarding the grant of individual limits within the overall limit 18.04.2005 Letter of Extension of Equitable mortgage of factory land and building situated at B – 70 Bansi , Jodhpur
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Additional security given by way if Equitable mortgage of land and building situated at B – 70 Bansi , Jodhpur to secure the all dues from the company.
Name of the company	ISCON SURGICALS LIMITED
Presented By	Mr. M P Jain Director
1) Date and description of instrument creating the change	13.04.2002 General Agreement for grant of small industries advances and hypothecations of movable, book debts and other assets whether present or further charges thereon for all the indebtedness and liability of the borrower to the bank present and future the present limit having been determined at Rs. 27.900 13.04.2002 agreement for grant of small industries advances regarding hypothecations of movable, book debts and other assets 13.04.2002 agreement for grant of small industries advances regarding advance against receivable and bills in the course of collection 13.04.2002 agreement for grant of small industries advances regarding letters of credit, Guarantees and indemnities
2) Amount secured by the charge/amount owing on the securities of charge	Total Cash credit on stocks Rs. 12.500 For CC on book debts – Rs. 1.500 for EPC and Rs. 0.500 for FBP/FBD Forgign Letters of credit – Rs. 2.500 Inland Letters of credit - Rs. 4.000 Bank Guarantee – Rs. 4.000 One time FLC – Rs. 2.400 Total Limits – Rs. 27.900
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecations of raw material, stock in process, finished goods, receivable, movables, book debts and other assets
4) Gist of the terms and conditions and extent and operation of the charge.	Repayment by loan over a period not axceeding 10 year by 19 half yearly installment interest at the rate 6.5% above bank rate ruling from time to time
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Commercial Branch, Shastri Nagar, Jodhpur
6) Date and brief description of instrument modifying the charge	30.11.2005 supplemental agreement of loan for increased in the overall limit 30.11.2005 supplemental agreement of hypothecations of goods and assets for increased in overall limit 30.11.2005 Letter regarding the grant of individual limits within the overall limit
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Total cash credit limit of Rs. 54.500 has been increased to Rs. 66.300 as follows, CC Hypothecations Rs. 35.000 SLC – Rs. 5.300, ILC – Rs. 10.000, FLC – Rs. 12.500 & BC – Rs. 2.500 apart from TL – 1 of Rs. 7.000 and TL – 2, Rs. 23.000 of the company. Interest rate, Margin money and other terms as given in the form C – 5

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 records 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.46.20
UK Pound	1	Rs.84.57
Euro	1	Rs.58.12

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
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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
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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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