MIRA INFORM REPORT

Report Date :

5^th May 2006

IDENTIFICATION DETAILS

Name :	ALFA LAVAL INDIA LIMITED
Registered Office :	Mumbai - Pune Road, Dapoli, Pune-411 012, Maharashtra, India
Country :	India
Financials (as on) :	31.12.2005
Date of Incorporation :	15^th December, 1957
Com. Reg. No.:	11-2732
CIN No.:	U29299MH1937PLC002732
TAN No.: (Tax Deduction & Collection Account No.)	PNEA06943G
PAN No.: (Permanent Account No.)	AAAAA1232F
Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Subject is an engineering company engaged in supplying equipment to industries such as dairy/milk products, breweries, vegetable oil refining, foods/foods processing, refrigeration, etc. as well as setting up turnkey plants.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 8500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Alfa-Laval Group, a multi national operations. Available information indicate high financials responsibility of the company. Trade relations are fair. Financials positions is good. Payments are correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office :	Mumbai - Pune Road, Dapoli, Pune-411 012, Maharashtra, India
Tel. No.:	91-20-27107100, 56116100, 27147721-7728 / 776321 / 797711
Fax No.:	91-20-27147711/ 779479
E-Mail :	info@alfalaval.co.in
Website :	http://www.alfalaval.com
Factory 1 :	Ø Mumbai- Pune Road, Dapodi, Pune -411 012 Ø E-7/ E-8, Ml DC Estate Satara-415004 Ø Gat Nos. 30 to 33 & 74 to 82, Sarole Veer Road, Sarole-412206, Tal. Bhor, Dist. Pune
Sales & Service Network at:	Bangalore, Baroda, Chandigarh, Chennai, Dhaka, Bangladesh, Hyderabad, Indore, Jaipur, Jamshedpur, Kanpur, Kochi, Kolkata Mumbai, New Delhi, Nagpur, Pune, Raipur, Vishakhapatnam
Customer service center:	Plot No. R-674, MIDC Rebale, TTC Industrial Area, Post Ghansoli, Thane - 400 701

DIRECTORS

Name :	Kamaljit Singh
Designation :	Chairman Emeritus
Name :	Jos Bellinkx, Chairman
Designation :	Director
Name :	B. Chakrabarti
Designation :	Nominee Director
Name :	Cyrus J. Guzder
Designation :	Director
Name :	Ashok M. Advani
Designation :	Director
Name :	Kewal Handa
Designation :	Director
Name :	Ray Field
Designation :	Director
Name :	Satish Tandon
Designation :	Managing Director
Name :	Ajay Joshi
Designation :	Director - Finance
Name :	V. Chandrashekhar
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Foreign Company-Alfa Laval Corporate AB, Sweden	11,640,118	64.10
Non-resident individuals/Flls/OCBs	118,773	00.65
Banks/Financial Institutions and Insurance Companies and Mutual Funds	3,277,758	18.05
Directors and their relatives	16,066	0.09
General Public including domestic companies	3,107,768	17.11
TOTAL	18,160,483	100.00

BUSINESS DETAILS

Line of Business :

Subject is an engineering company engaged in supplying equipment to industries such as dairy/milk products, breweries, vegetable oil refining, foods/foods processing, refrigeration, etc. as well as setting up turnkey plants.

Products :

Item Code No.(ITC Code)	Product Description
84211910	Separators
73090090	Fabrication equipment
84211905	Decanters

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Separators	1,825	1553
Decanters	275	339
Plate Heat Exchangers & Spiral Heat Exchangers	3,080	2630
Fabrication Equipment (Refer note D)	1 ,450 T	577
Stainless Steel Pumps	2,500	1508
Valves	16,200	10699
Fittings and others	--	--

GENERAL INFORMATION

No. of Employees :	1400
Bankers :	Ø Bank of India Mumbai, Maharashtra Ø Standard Chartered Bank 90 M. G. Road, Mumbai – 400 001 Ø Bank of Maharashtra 45 / 47, Bombay Samachar Marg, Fort, Mumbai – 400 023 Ø The United Western Bank Limited Mumbai Ø The Hongkong and Shanghai Banking Corporation Limited Mumbai

Banking Relations :	Good
Auditors :	S. R. Batliboi & Associates Chartered Accountants
Legal Advisers .:	Crawford Bayley & Company
Associates:	Ø Saunders Valves (India) Limited Ø Alfa Laval Agri (India) Limited
Subsidiaries:	Ø Alfa Laval Pumps Ltd. Ø Alfa Laval (Thailand) Ltd Ø Alfa Laval SACI, Chile Ø Alfa Laval Inc. Ø Alfa Laval Australia Pty Ltd Ø Alfa Laval Holding GMBH,Germany Ø Alfa Laval Copenhegan A/S Ø Alfa Laval (Malaysia) Sdn Bhd Ø Alfa Laval Merco, Netherlands Ø Alfa Laval Lund AB Ø Alfa Laval Flow Equipment, U.K Ø Alfa Laval Tank Equipment, Denmark Ø Alfa Laval Portugal Lda, Portugal Ø Alfa Laval kft, Hungary Ø Alfa Laval Europe AB, Germany Ø Alfa Laval, Singapore PTE Ø Wytwornia Separator Krakow Sp, z.o.o Ø Alfa Laval Flow (Kunshan) Equipment Co Ltd Ø Alfa Laval Kolding A/S Ø Alfa Laval Vicarb, France Ø PT Alfa Laval Separatama , Indonesia Ø OAO Alfa Laval Potok Ø Alfa Laval Tumba AB Ø Alfa Laval Benelux, Belgium Ø Alfa Laval Iberia S.A, Spain Ø Alfa Laval Dis Ticaret Ltd. Sti Ø Alfa Laval sas, France Ø Scandi Brew Ø Bio Kinetics Inc, USA Ø Alfa Laval Ltd. .Bulgaria Ø Alfa Laval Ltd East Bourne U.K Ø Alfa Laval (Hongkong) Ltd Ø Alfa Laval AEBE, Greece Ø Alfa Laval SpA, Oilve Oil Ø Alfa Laval Middle East Ltd, Dubai Ø Alfa Laval KK, Japan Ø Alfa Laval SpA, Italy Ø Alfa Laval Naskov A/S Ø Alfa Laval Spiral Snc, France Ø Alfa Laval Moatti Snc, France Ø Alfa Laval Plate Heat Exchangers, China Ø Alfa Laval (China) Ltd. Ø MCD - Caoutchouc Ø Alfa Laval Ltd, Brazil Ø Alfa Laval SA. Peru
Group Companies :	Ø Alfa Laval Kolding A/S Ø Alfa Laval Copenhagen A/S Ø Alfa Laval SpA, Italy Ø Alfa Laval Lund AB Ø Alfa Laval Tumba AB Ø Alfa Laval Turkey Ø Alfa Laval, Thailand Ø Alfa Laval Inc, USA
Holding Company:	Alfa Laval Corporate AB

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs. 10/- each	Rs. 200.000 millions

Issued,:

No. of Shares	Type	Value	Amount
18,160,567	Equity Shares	Rs. 10/- each	Rs. 181.606 millions
Subscribed & Paid-up Capital
18,160,483	Equity Shares	Rs. 10/- each	Rs. 181.600 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2005	31.12.2004	31.12.2003
SHAREHOLDERS FUNDS
1] Share Capital		181.600	181.600	181.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1980.900	1850.050	1570.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2162.500	2031.650	1751.90
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		64.700	64.740	65.670
TOTAL BORROWING		64.700	64.740	65.670
DEFERRED TAX LIABILITIES		0.000	7.840	20.230
TOTAL		2227.200	2104.230	1837.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		565.500	419.040	362.610
Capital work-in-progress		26.300	39.390	15.350
INVESTMENT		456.600	521.780	595.600
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1012.700	913.620	609.490
	Sundry Debtors	1723.100	1433.110	960.850
	Cash & Bank Balances	263.800	228.910	198.160
	Other Current Assets	0.000	38.360	45.780
	Loans & Advances	377.600	230.840	146.310
Total Current Assets		3377.200	2844.840	1960.590
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1805.000	1459.010	970.690
	Provisions	393.400	261.810	125.660
Total Current Liabilities		2198.400	1720.820	1096.350
Net Current Assets		1178.800	1124.020	864.240
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2227.200	2104.230	1837.800

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2005	31.12.2004	31.12.2003
Sales Turnover [including other income]	6271.800	5279.630	3919.600
Profit/(Loss) Before Tax	991.000	1179.220	842.790
Provision for Taxation	342.400	394.090	192.390
Profit/(Loss) After Tax	648.600	785.130	650.400
Export Value	NA	1715.440	1669.990
Import Value	NA	1141.380	867.550
Total Expenditure	5195.300	4026.470	3003.700

QUARTERLY RESULTS

PARTICULARS	31.03.2006
Type	1^st Qtr
Sales Turnover	1419.900
Other Income	28.100
Total Income	1448.000
Total Expenditure	1138.800
Operating Profit	309.200
Interest	02.200
Gross Profit	307.000
Depreciation	17.600
Tax	113.200
Reported PAT	187.400

200603 Quarter 1 –

Notes EPS is Basic & Diluted 1. The Company did not have any investor complaint pending at the beginning and at the end of this quarter except in relation to 248 shares being the subject matter of fraud under investigation since 2004. During the quarter, 8 investor complaints were received and resolved. 2. The Statutory Auditors have carried out a limited review of the above results for the quarter ended March 31, 2006. 3. The figures in respect of previous period have been regrouped wherever necessary. 4. The Company has considered Business Segments as the Primary Segment for disclosure. The two main Business segments are Equipment and Process Technology based on the market for the Companys products and services. 5. The above results were reviewed by the Audit Committee and approved by the Board at its meeting held on April 27, 2006.

KEY RATIOS

PARTICULARS	31.12.2005	31.12.2004	31.12.2003
Debt-Equity Ratio	0.03	0.03	0.04
Long Term Debt-Equity Ratio	0.03	0.03	0.04
Current Ratio	1.58	1.67	1.61
TURNOVER RATIOS
Fixed Assets	5.18	5.11	3.96
Inventory	6.35	6.92	7.01
Debtors	3.88	4.40	4.63
Interest Cover Ratio	49.34	59.25	53.67
Operating Profit Margin(%)	17.64	21.32	23.71
Profit Before Interest And Tax Margin(%)	16.54	20.01	21.87
Cash Profit Margin(%)	11.71	14.42	18.40
Adjusted Net Profit Margin(%)	10.61	13.12	16.56
Return On Capital Employed(%)	46.79	53.89	48.79
Return On Net Worth(%)	30.93	36.54	38.39

STOCK PRICES

Face Value	Rs. 10.00/-
High	Rs. 1152.00/-
Low	Rs. 1151.00/-

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Alfa_Laval is a leading global provider of specialized products and engineered soultions. ALIL manufactures plant, machinery and equipment used in dairies, vegetable oils, food and beverages, pharmaceuticals, chemicals, fertilisers, petrochemicals, ship-building, general engineering, etc. Alfa Laval has integrated its three core businesses : heat exchangers, separation equipment and flow equipment(pumps and valves) , in a bid to focus on customer needs and step up sales. 

 Alfa-Laval (India) (ALIL), was incorporated in Dec.'37 under the name Vulcan Trading Company. In May' 65, Alfa-Laval, the Indian subsidiary of Alfa-Laval, Sweden, was amalgamated with the company, and its name was changed to Vulcan-Laval on Oct.'65. It acquired its present name in May' 87. ALIL is a part of the Alfa Laval group, which includes companies like Alfa Laval Agri (India), Aseptic Packaging (India), Saunders Valves (India), etc. Pursuant to the open offer by Alfa Laval International AB, Sweden through its subsidiary Alfa Laval AB, the shareholding of Alfa Laval AB in the company has increased from 51% to 64.10% in 2001. Recently, Industri Kapital, a leading European private equity firm, has taken control of Alfa Laval worldwide. Its work is situated in Pune, Satara and Sarole in Maharashtra. 

 In 1992-93, the company started two new joint ventures -- Larvid Knudsen Maskin Fabrik (India), in collaboration with LKM, Denmark, to manufacture sophisticated flow equipment and, Dairy Farm Equipment (India), in collaboration with Baldurion, the Netherlands. It has also entered into a collaboration with Steinoker, Germany, to set up breweries on turnkey basis. ALIL has been awarded the prestigious ISO 9001 quality certification for fats and oils. 

 Alfa Laval Financial Services is a fully-owned subsidiary of the company.The company has approved the merger of wholly owned subsidiary viz. Alfa Laval Financial Services with the company and its was merged with the company in the year 2000. Lavrids Knudsen Maskinfabrik (LKM) became a subsidiary of the during January 2001 by the acquisition of an additional 74% equity stake in LKM for a consideration of Rs.121.36 Million. Consequent to this acquisition, Skansen Engineering and Consultancy Company Ltd (SECCL) has also became a subsidiary of Alfa laval. Further LKM was merged with the company during November 2001 and SECCL was merged with the company during 2004. 

 In Jan. 2000, the company sold the business of Tetra Pak Processing Systems Divison to Tetra Pak India for a consideration of Rs 25.50 crore. In Feb. 2001, Alfa Laval India acquired balance 74 % equity stake in Lavrids Knudsen Maskinfabrik India at a cost of Rs 21.1 crore.  

 In 2000-01,to acquire 25% of the paid up capital of the company an open offer was maade by Alfa Laval International AB through its wholly owned subsidiary Alfa Laval AB. Consequently the shareholding of the holding company was increased to 64.10% by way of acquiring of 2,378,229 equity shares at a price of Rs.164/- per share. 

 During 2004-05 the company has increased the installed capacity of Separators, Decanters, Plate Heat Exchangers & Sprial Heat Exchangers, and Fabrication Equipment by 200 Nos, 100 Nos, 20 Nos and 400 Tonnes respectively. With this expansion the total installed capacity of Separators, Decanters, Plate Heat Exchangers & Sprial Heat Exchangers, and Fabrication Equipment has increased to 1825 Nos, 275 Nos, 3080 Nos and 1450 Tonnes respectively.

OPERATIONS AND FINANCIAL RESULTS

Sales turnover for the year under review crossed the five billion rupee mark while the total income stood at Rs.5,279.63 M (2003: Rs.3,919.60 M). In line with the spurt in the sales turnover, the profit before interest, depreciation and tax cruised past the billion rupee mark reaching Rs.1,253.16 M (2003: Rs.915.90 M). After providing Rs.5.37 M (2003: Rs.0.94 M) for interest, Rs.68.57 M (2003: Rs.72.17 M) for depreciation and Rs.394.09 M (2003: Rs. 192.39 M) for taxation, the Company registered a net profit for the year under review of Rs.785.13 M as against a net profit of Rs.650.40 M for the previous financial year. The net profit after tax for the year under review without considering the profit of Skansen Engineering and Consultancy Company Limited was Rs.774.45 M, an increase of about 19% as compared to the net profit after tax of Rs.650.40 M for the previous financial year. The profit available for appropriation is Rs.1,150.08 M out of which the amount set aside for dividend including tax thereon is Rs.515.08 M (2003:Rs.535.45 M). After transferring an amount of Rs.79.00 M (2003:Rs.66 M) to General Reserve, the balance amount of Rs.556.00 M is being retained in the Profit and Loss Account.

DIVIDEND

The Directors recommend a final dividend of 100% on equity shares. Inclusive of the interim

dividend of 150% (Rs.15.00 per equity share) paid in December 2004, the total dividend for the

year ended 31st December, 2004 will be 250% [Rs.25.00 per equity share] (2003: 250%) which

will absorb Rs.515.08 M including dividend tax (2003: Rs.535.45 M) of the distributable profit.

SUBSIDIARY COMPANY

The Company's wholly owned subsidiary, Skansen Engineering and Consultancy Company

Limited (Skansen) was amalgamated with the Company as per the Scheme of Amalgamation

approved by the shareholders of Skansen and the Company and confirmed by the Hon'ble High

Court of Judicature at Bombay vide its order dated 4th February, 2005 with the appointed date

as 1st April, 2004.

OUTLOOK-

During the year under review the Company surpassed its earlier record of order intake with the order booking crossing the six billion rupee mark leaving a sound order backlog. The Industry is performing well and the growth in the manufacturing sector especially has been significant with the capital goods segment being the main contributor to this impressive performance.

The country is expected to continue to build on this significant growth. New investments on the anvil coupled with continuous inflow of foreign capital and global confidence is likely to sustain manufacturing growth and keep the capital goods industry buoyant though under intense

competition. As it is expected that the growth will be broadbased and not limited to some specific industries, the Company's very well diversified products and process solutions would

enable it to serve the broad spectrum of industrial sectors. Unless the market scenario changes

dramatically in the opposite direction and barring of course, unforeseen circumstances, the Company expects to turn out a satisfactory performance during the current year.

RISK AND CONCERN

Project business which accounts for a larger share of the Company's total business, is inherently open to time risk in terms of completion of work, timely payments from customers, the economic conditions over the period of the project and also performance related risks. The continued rise in the cost of inputs like steel and other metals have an adverse impact in

general. Though the guidelines for constant monitoring and timely action to mitigate the adverse impact, if any, on the costs related to the project are in place, the risk of cost over run

remains.

INDUSTRY

Engineering sector is suffering because of over-capacity and lack of fresh investment demand. Reduced governmental spending would result in the scenario going from bad to worse in a short to medium term. Government is trying to create the ways for more active private sector participation in the infrastructure development and especially the power sector and road development. The fortunes of engineering companies are inextricably linked to the development in power sector since they derive almost 70% of their revenues from projects related to power companies. Power crises has assumed unseen proportions and government is trying to bailout the country from the same. Recent initiatives by the government reaffirm our view of increased seriousness by the governmental agencies. But since, most of the infrastructure development projects are capital intensive and hence it takes time when plans are actually implemented. Hence we do not foresee much improvement in a short term but we continue to have long term positive outlook.

BUSINESS

All manufactures plant, machinery and equipment used in diaries, vegetable oils, food and beverages, pharmaceuticals, chemicals, fertilisers, petrochemicals, ship-building, general engineering, etc.

The company has integrated its three core businesses : heat exchangers, seperation equipment and flow equipment (pumps and valves), in a bid to focus on customer needs and step up sales. The company has approved the amalgamation of Alfa Laval Financial Services Limited with the company.

In 2000-01, to acquire 25 % of the paid up capital of the company an open offer was made by Alfa Laval International AB through its wholly owned subsidiary Alfa Laval AB. Consequently the shareholding of the holding company was increased to 64.10 % by way of acquiring of 2378229 equity shares at a price of Rs. 164/- per share

AMALGAMATION

Lavrids Knudsen Maskinfabrik (India) Limited (LKM) was merged with the company as per the Scheme of Amalgamation approved by the shareholders of LKM and the company and confirmed by the Honourable High Court of judicature at Mumbai vide its order dated November 28, 2001. The appointed date as per the Scheme of Amalgamation as approved by the Court is April 1, 2001.

Alfa Laval Financial Services Limited (ALFS), a wholly owned subsidiary of the company was merged with the company in accordance with the Scheme of Amalgamation as approved by the shareholders of the ALFS and the company and confirmed by the Honourable High Court of judicature at Mumbai vide its order dated February 1, 2002. The appointed date as per the scheme of Amalgamagion and as approved by the Court is April 1, 2001.

FUTURE PLANS

The new group has shown the company new direction and also brought a change in its attitude towards customers. It has established three primary goals to improve the performance of Alfa Laval all over the world. The order of priority is :

K Growth in own market segment

K Effective low-cost processes

K Focus on the parts and service businesses for both profitability and growth

Subject has identified the crude oil and latex markets in South East Asia for separators as a thrust area. It also plans to capture the Japanese market in a project named Price Flighers, which will ensure the volume of separators goes up. New products are expected to form a major part of company's business and would be aimed for the export market. It is also planning to increase its strength in supplying its products to oil & gas, vegetable oil, polluting, biotech, life sciences industries, etc.

The company expects to increase exports 3 fold to cross Rs. 500 millions by 2003.

The company is in trade terms with :

K Gear Master Engineering Corporation

K Arni Mech Products

K Airotek Pune

The company’s fixed assets of important value include freehold land, leasehold land, buildings and roads, plant and machinery, furniture and fittings and vehicles.

As per website

It's all about performance

Alfa Laval is a leading global provider of specialized products and engineered solutions. Our equipment, systems and services are dedicated to helping customers to optimize the performance of their processes. Time and time again. We help our customers to heat, cool, separate and transport products such as oil, water, chemicals, beverages, foodstuffs, starch and pharmaceuticals. Our worldwide organization works closely with customers in almost 100 countries to help them stay ahead.

Learn more about the Alfa Laval Group and our objectives by clicking on “Group Presentation” in the menu on the right. Here, you will also find information about our organization, history, the Alfa Laval brand, etc.

Latest news

Keep yourself updated on Alfa Laval! Under the headline Updates you will find the latest news about interesting orders we have obtained, new products, strategic alliances, Alfa Laval in media, etc., etc. Make it a habit to visit Updates, and you will be truly updated on Alfa Laval.

Regions

Visit our regional web pages for local information about some of our sales companies throughout the world. Please select appropriate country from the drop down box to the right.

For a complete list of addresses and telephone numbers to all Alfa Laval offices, Click here >>

For suppliers

Here you can read about our general overall expectations on suppliers, you can find out more about our commodity structure and who to contact, and if there are any special offers available.

Here, Alfa Laval's International Magazine

Welcome to the digital version of Alfa Laval’s international customer magazine “Here”.
Here, you will find more in-depth information on projects, solutions, products and technologies. If you have any questions, please don't hesitate to contact us. 

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. 44.88
UK Pound	1	Rs. 83.46
Euro	1	Rs. 57.13

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		74

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		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