MIRA INFORM REPORT

Report Date :

13^th November, 2006

IDENTIFICATION DETAILS

Name :	AQUAMALL WATER SOLUTIONS LIMITED
Formerly Known As :	A P INDUSTRIAL COMPONENTS LIMITED
Registered Office :	7-2-185/ 1, Fatehbagh, Sanathnagar, Hyderabad – 500 018, Andhra Pradesh, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	27.11.1980
Com. Reg. No.:	01-2851
CIN No.: [Company Identification No.]	U29219AP1980PLC002851
TAN No.: [Tax Deduction & Collection Account No.]	HYDA00142C
Legal Form :	Subject is a closely held Public Limited Liability Company. The company is a subsidiary of Eureka Forbes Limited, Mumbai, which in turn is a subsidiary of Forbes Gokak Limited.
Line of Business :	Manufacture of Water Purifiers (Depolluting) Water Filter-Cartridges, Water Coolers, Flexible Foodgrade Tubes / Pipes, Natural Mineral Water Super Filters, Power Control Sockets, Softners and Scale Removers, etc.

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 1500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Eureka Forbes Limited, a well known producer of water purifier systems and vacuum cleaner. Available information indicated high financial responsibilities of the company. Trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company is doing well. It can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	7-2-185/ 1, Fatehbagh, Sanathnagar, Hyderabad – 500 018, Andhra Pradesh, India
Tel. No.:	91-40-23700359/ 23701091/ 23701115
Fax No.:	91-40-23700358
E-Mail :	ramesh@aquamall.co.in
Website :	http://www.aquamall.co.in
Head Office :	Konkan Co-operative Housing Society Limited, Konkan Nagar Hall, Ground Floor, Plot No. 123, Lt. P. K. Marg, Mahim (West), Mumbai – 400 016, Maharashtra, India
Area :	8500 sq.ft.
Location :	Owned
Corporate Office :	Konkan Co-operative Housing Society Limited, Konkan Nagar Hall, Ground Floor, Plot No. 123, Lt. P. K. Marg, Mahim (West), Mumbai – 400 016, Maharashtra, India
Area :	8500 sq.ft.
Location :	Owned
Plant 1 :	7-2-185/1, Fatehbagh, Sanathnagar, Hyderabad – 500 018, Andhra Pradesh, India
Plant 2 :	Bhitmal, District Nainital, Uttar Pradesh, India
Sales Office :	Shalani Palace, ‘B’ Wing, 81/83, Bhavani Shankar Road, Dadar (West), Mumbai – 400 025, Maharashtra, India
Tel. No.:	91-22-24938179

DIRECTORS

Name :	Mr. S. L. Goklaney
Designation :	Chairman
Address :	2, Sital Sagar, Sital Baug, 64, Walkeshwar, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	08.04.1947
Date of Appointment :	18.03.1996
Name :	Mr. P. J. Reddy
Designation :	Director
Address :	554, 9A, Main Road, 1^st Stage, Indira Nagar, Bangalore – 560 038, Karnataka, India
Date of Birth/Age :	14.12.1941
Date of Appointment :	06.11.1996
Name :	Mr. A. V. Suresh
Designation :	Director
Address :	701, Sterling Sea Face, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	24.07.1956
Date of Appointment :	24.04.1998
Name :	Mr. J. N. Ichhaporia
Designation :	Director
Address :	18, Avabhai Mahalaxmiwala Building, 3^rd Floor, Sleater Road, Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	28.05.1948
Date of Appointment :	28.09.2001

KEY EXECUTIVES

Name :	Mr. S Ramesh
Designation :	Company Secretary
Address :	25, LIC Officers Colony, Sikh Village, Secunderabad – 500 009, Andhra Pradesh, India
Date of Birth/Age :	13.03.1961
Date of Appointment :	18.02.2002

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Eureka Forbes Limited	2000074
Mr. S L Goklaney	1
Mr. P J Reddy	1
Mr. A V Suresh	1
Mr. B R K Mishra	1
Mr. J N Ichhaporia	1
Mr. S Ramesh	1
Total	2000080

BUSINESS DETAILS

Line of Business :	Manufacture of Water Purifiers (Depolluting) Water Filter-Cartridges, Water Coolers, Flexible Foodgrade Tubes / Pipes, Natural Mineral Water Super Filters, Power Control Sockets, Softners and Scale Removers, etc.
Products with ITC Code :	Water Purifiers (Depolluting) Water Filter-Cartridges – 84212109 Water Coolers Flexible Foodgrade Tubes / Pipes Natural Mineral Water Super Filters Power Control Sockets Softners and Scale Removers Hose Pipe – 85099000
Brand Names :	‘Aquamall’ and ‘Puroguard’
Exports to :	U.S.A. and Middle East
Imports from :	Germany and U.K.
Terms :
Selling :	Contract (30 days), Cash or other terms
Purchasing :	Credit (30 days), Cash or L/C terms

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Water Purifier (Depolluting) Equipments (Water Filter-Cum-Purifier)	Nos.	556000	365724
Testing Kit	Nos.	200000	--
Water Filter Cartridge	Nos.	700000	365590
Water Cooler-cum-Purifier	Nos.	6500	3365
Flexible Food Grade Tube/Pipe	Mtrs.	1000000	901762
Processed Drinking Water	Ltrs.	--	--
Super Filter	Nos.	24000	200
Automated Switching Device	Nos.	24000	8363
Iron Remover	Nos.	24000	--
Softner	Nos.	24000	7967
Scale Remover	Nos.	24000	--
Vacuum Cleaner	Nos.	24000	--
Hose Pipe	Nos.	150000	157741
Mixer-cum-Grinder	Nos.	2000	--
Value Plus Products	Nos.	25000	2122
Pump Attachment	Nos.	--	9971

GENERAL INFORMATION

Suppliers :

Some of its’ major suppliers are :-

˜ Industrial Valves Limited, Mumbai

˜ Voltas Limited, Mumbai

˜ Rallis India Limited, Mumbai

˜ Acqua System

˜ Advance Products Private Limited

˜ Agarwal Fastners Private Limited

˜ Deccan Power Products

˜ Elegant Rocks Private Limited

˜ Klipco Private Limited

˜ Hyderabad Coils Private Limited

˜ Legris India Private Limited

˜ Maruthi Engineering Company

˜ Merit Enterprises

˜ Teknic Electromeconics Private Limited

˜ US Engineering Private Limited

˜ Vijetha Polytek Private Limited

˜ SGS Tekniks Private Limited

˜ Pennar Profiles Limited

˜ Shree Momai Engineering Works

˜ Srinivasa Packaging

˜ Stiff Packing Private Limited

Customers :

The company’s major customers includes wholesalers and individuals.

Some of its’ major customers are :-

˜ Eureka Forbes Limited, Mumbai, Maharashtra

˜ Spencer & Company Limited, Chennai, Tamilnadu

˜ Akbarally’s, Mumbai, Maharashtra

No. of Employees :

Around 206

Bankers :

State Bank of India

Commercial Branch, NGN Vaidya Marg, Horniman Circle, Mumbai – 400 023, Maharashtra, India

State Bank of India

Bank Street, Hyderabad – 500 001, Andhra Pradesh, India

Facilities :

Secured Loans

(Rs. in millions)

	2005
Cash Credit (secured by hypothecation of stock in trade and book debts further, secured by way of equitable mortgage by deposit of title deeds in respect of companies immovable properties.)	24.696
Foreign Currency Loan (repayable within one year )	0.000
Total	24.696

Unsecured Loans

(Rs. in millions)

	2005
Intercorporate Deposit (from Holding Company)	150.000
Interest accrued and due	2.925
Total	152.925

Banking Relations :	Good
Auditors :	Batliboi & Purohit Chartered Accountants
Address :	National Insurance Building, 204, Dadabhoy Naoroji Road, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22077941/ 42
Fax No.:	91-22-22074260
E-Mail :	info@batliboipuroshit.com
Associates :	˜ Forbes Shipping Corporation Limited ˜ Latham India Limited ˜ Volkart Fleming Shipping Services Limited ˜ Forbes Estates Limited ˜ Bradma of India Limited ˜ Campbell Knitwear Limited ˜ Forbes Gokak Limited ˜ Shapoorji Pallonji and Company Limited ˜ Sterling Investment Corporation Private Limited ˜ Cyrus Investments Limited ˜ Forbes Abans Cleaning Solutions Private Limited ˜ Forbes Doris and Naees Maritime Limited ˜ Forbes Finance Limited ˜ Forbes Sterling Star Limited ˜ Next Gen Publishing Limited
Subsidiaries :	˜ Forbes Aquamall Limited ˜ Eureka Forbes Limited
Holding Company :	˜ Forbes Gokak Limited ˜ Eureka Forbes Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50,00,000	Equity Shares	Rs. 10/-	Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20,00,080	Equity Shares	Rs. 10/-	Rs. 20.001 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		20.001	20.001	20.001
2] Reserves & Surplus		389.111	308.425	262.129
NETWORTH		409.112	328.426	282.130
LOAN FUNDS
1] Secured Loans		79.944	24.696	18.376
2] Unsecured Loans		0.000	152.925	0.000
TOTAL BORROWING		79.944	177.621	18.376
TOTAL		489.056	506.047	300.506
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		293.133	300.212	123.401
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		15.202	5.007	30.007
DEFERREX TAX ASSETS		0.000	12.725	12.730
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	232.951	213.377
	Sundry Debtors	168.003	95.723
	Cash & Bank Balances	10.204	8.845	445.219
	Other Current Assets	112.403	122.809
	Loans & Advances	17.019	49.272
Total Current Assets		540.580	490.026	445.219
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	264.345	186.678	310.851
	Provisions	108.825	115.541	0.000
Total Current Liabilities		373.170	302.219	310.851
Net Current Assets		167.410	187.807	134.368
MISCELLANEOUS EXPENSES		13.311	0.296	0.000
TOTAL		489.056	506.047	300.506

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	1810.085	1436.349	1216.853
Profit/(Loss) Before Tax	116.376	97.337	88.408
Provision for Taxation	0.000	7.430	10.880
Profit/(Loss) After Tax	116.376	89.907	77.528
Export Value	NA	14.796	7.842
Import Value	NA	175.827	145.660
Total Expenditure	1693.709	1330.783	1128.444

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	6.43	6.26	6.37
Net Profit Margin (PBT/Sales)	(%)	6.43	6.77	7.26
Return on Total Assets (PBT/Total Assets}	(%)	13.71	12.04	14.46
Return on Investment (ROI) (PBT/Networth)		0.28	0.29	0.31
Debt Equity Ratio (Total Liability/Networth)		2.10	2.46	2.17
Current Ratio (Current Asset/Current Liability)		1.45	1.62	1.43

LOCAL AGENCY FURTHER INFORMATION

History

Subject was incorported on 20^th April, 1983 at Hyderabad in Andhra Pradesh under the name and style of A. P. Industrial Components Limited having Company Registration Number 2851.

The company was promoted by Forbes Gokak Limited under the name and style of A. P. Industrial Components Limited and changed to the heading style w.e.f. 20^th March, 2002.

Recently, the name of the company was changed to the present name.

Operations

During the year under review, the company has shown a healthy growth of 16% in sales turnover. In line with the increase turnover the company’s profit before tax has also grown by 10% inspite of higher depreciation charge of Rs. 8.870 millions for an intangible asset acquired by the company.

During the year the company expanded the installed capacity of cooler cum purifier section at Bhimtal to avail the various fiscal incentives on this product also.

During the year the company experienced an unfortunate fire accident at the Hyderabad unit. Although there was no injury to any person, the stock and infrastructure was affected. The company has filed an insurance claims for the losses suffered with the concern authorities.

The company continues to focus on upgrading technology and has considerably improved the quality of products being manufactured. The company is continuing to make efforts to tap the growth potential of the Export Market and is making efforts to introduce new products in the global market in line with the evolving customer needs.

The management team of the company has been working closely on reducing cost through value engineering and price negotiation. This efforts have helped in offsetting the uncontrollable increase in input costs of petroleum products, metal and plastic components etc. The company focus on control of costs has also enable the company to improve it’s profitability.

Supplying high quality products continues to remain the high focus area and the company is taking the several steps in its endeavour towards achieving zero defects and enhancing customer satisfaction. Constant upgradations are also being made in the manufacturing infrastructure to improve the quality and productivity.

The company has set up another manufacturing plants at Baddi, Himachal Pradesh. this unit commenced commercial operations on the 29^th of April, 2005. The project was set up within a record time of three months and within minimum investment. The project has been finance entirely out of the internal accruals of the company.

The company’s fixed assets of important value include:

® Freehold Land

® Leasehold Land

® Building (Leased)

® Electrical Installations

® Electrical Installations (Leased)

® Computers

® Plant and Machinery

® Patterns and Dies

® Furniture and Fixtures

® Furniture and Fixtures (Leased)

® Office Equipments

® Vehicles

® Laboratory Equipments

Press Releases

1^st World Class Indian Laboratory that can improve the lives of million of Indians.

Aquadiagnostics Water Research and Technology Centre (AWRTC) receives the prestigious recognition as an 'Independent Testing Authority' by Water Quality Association (WQA), USA. Becomes the first recognised laboratory-ever by WQA in India, South East Asia & Asia and only 8th in the World.

Bangalore, January 07, 2005

Aquamall Water Solutions Limited, makers of Aquaguard Water Purifiers(a fully owned subsidiary of Eureka Forbes Limited) have set up Aquadiagnostics Water Research & Technology Centre(AWRTC), at Bommasandra, Bangalore. It is a state-of-the-art water research and technology centre equipped with highly advanced facilities prescribed by institutions like APHA(American Public Health Association), NSF(National Sanitation Foundation, USA), USEPA(United State Environmental Protection Agency) and the BIS(Bureau of Indian Standards).

Aquadiagnostics, the first exclusive water testing and research laboratory with Ultramodern facilities in India, has received the rare distinction of being the first-ever laboratory in India, South East Asia and only 8th in the World to be recognized by the Water Quality Association(WQA), USA as an 'Independent Testing Authority'.

The certification of Water Purifiers, Filters and components from WQA or WQA recognized laboratories is considered to be one of the most prestigious certification in the world. This certification is issued on the basis of Testing the products as per NSF/ANSI(National Sanitation Foundation and American Nation Standards Institution) Standards. This shows the compliance of products to stringent quality norms set by an International body (NSF).

In accordance to the recognition, AWRTC as an Independent laboratory can now issue certifications for water purifiers based on NSF/ANSI 42, 53 and 55 Standards. Additionally, AWRTC can now also issue 'Gold Seal Certification' under the guidance of WQA, USA. AWRTC has been verified by WQA as 'capable' of performing tests in the following categories:

1. NSF/ANSI 42 : Water Filters, Chemicals and particulate Testing
2. NSF/ANSI 53 : Water Filters, Chemicals, Turbidity and Cyst Testing
3. NSF/ANSI 55 : Water Filters, Microbial Performance Testing

The Water Quality Association is a 'not for profit international trade association' representing the household, commercial, industrial and small commodity water treatment industry. The WQA certifies Water Treatment devices, components, additives, and other water distribution related products through its Gold Seal Product Certification Programme.

Speaking at a function, Mr. P. J. Reddy, Director - Aquamall Water Solutions Limited said, "In a continent sized country like ours, the cost of health care and wastewater treatment due to pollution has always been and will be on the rise. 80% of diseases are water borne and providing safe drinking water to people would be one of the major challenges faced by the Government in days to come. The first step to providing effective solutions would be to first measure the pollutants and then find ways to manage them. As leaders in water purification, we have taken the responsibility of setting up a state of the art water testing and research laboratory with ultramodern facilities in India - Aquadiagnostics"

Indeed an effort that shall go a long way in water testing and efforts to provide solutions for pure and safe drinking water to millions.

Awards

During the year under report, the Bommansandra Manufacturing Facility has received the Best Landscaping Award from the Mysore Horticultural Society.

It purchases 83.68% from local market and 16.32% from international market.

It sells 99.43% in local market and 0.57% in international market.

It imports Solinoid Valves/CPG Pumps, Phot Conductive Cells, Ultra Violet Lamps, Quartz Glass Tubes / Connectors / Resins, etc.

Bankers Charges Report as per Registry

Name of the Company : A P Industrial Components Limited

Presented by : -- AGM and Relationship Manager (AMT - II)

State Bank of India, Commercial Branch, Justice G N Vaidya Marg, Mumbai.

1. Date and description of the instrument creating or evidencing the charge	Agreement of hypothecation of goods and assets of overall limit and letter regarding grant of individuals limit within the overall limit. Both above agreement are dated 14.03.1994 and executed for the creation of single charge.
2. Amount secured by the charge /amount owing on security of the charge	Rs. 65.000 millions
3. Short Particular of the property charged. If the property acquired is subject to change date of acquisition of property should be given	A first charge on all present and future goods, book debts and all other movable assets of the company, including document of the title to the goods, outstanding monies, receivables including receivable by way of cash assistance and or cash incentives under the Cash Incentive Scheme or any other Scheme, claims including claims by way of refund of customs / excise duties under the Duty Drawback Credit Scheme or any other Scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights and the present machinery listed on schedule to the agreement and all future machinery belonging to or in the possession or under the control of the company wherever lying, store and kept and whether in possession of the company or of the Bank or of the any third party whether in India or elsewhere throughout the world (including all such goods, other movable assets in shipment transit or delivery)
4. Gist of the terms and conditions and extent and operation of the charge.	DCC Interest : 1% ASBAR effective rate Min of 16.5% p.a. inclusive of interest tax of 0.50% with quarterly rest. EPC: as per RBI directives Margin : 25% on raw material, stock in process, finished goods, stores and spares, 100% on book debts/ receivables.
5. Names, address and description of the persons entitled to charge	State Bank of India Commercial Branch, NGN Vaidya Marg, Horniman Circle, Mumbai – 400 023, Maharashtra, India
6. Date and brief description of instrument modifying the charge	A] fourth supplemental agreement of hypothecation of goods and assets for the overall limit dated 01.06.2001 B] letter regarding grant of individual limit within the overall limit dated 01.06.2001
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	At the request of the borrower, the bank has reduced various credit facilities as detailed below from Rs. 148.000 millions to Rs. 120.000 millions Demand Cash Credit : 85.000 millions EPC/ EBD/ EBN (within CC) : (5.000) millions Sub Limit against book debts (within CC) : (20.000) millions Letter of Credit (Inland-Import/ DP) : 25.000 millions Bank Guarantee (P and F) : 10.000 millions DCC : Interest : 1.25% SBAR, minimum 12.75% with quarterly rest will be recovered. EPC : as per RBI directives Margin : 25% on raw material, stock in process, finished goods, stores and spares, 100% on book debts/ receivables, letter of credit and ordinary bank guarantee, 10% on guarantee to government and 100% on guarantee relating to disputed items. Commission for Guarantee : (both performed and financial BGs) BGs upto Rs. 50.000 millions : 2% p.a. BGs above Rs. 50.000 millions and upto Rs. 100.000 millions : 1.50% p.a. (with a minimum of 2% on Rs. 50.000 millions) BGs above Rs. 100.000 millions : 1% p.a. (with a minimum of 1.5% on Rs. 100.000 millions) The commission is recoverable for the actual period (minimum period 1 month) Upon the borrower agreeing to extend the hypothecation charged crated by agreement of hypothecation of goods, debts and assets dated 04.03.1994 of Rs. 65.000 millions and modified by First Supplemental Agreement of Hypothecation dated 24.02.1998 for Rs. 70.000 millions and as modified by Second Supplemental Agreement of Hypothecation dated 29.09.1999 for Rs. 115.000 millions and as modified by Memorandum of Entry No. 685 dated 27.03.2000, whereby an additional collateral securities by way of Equitable Mortgage by deposit of title deeds with State Bank of India in respect of company immovable properties situated at village Andupatti Pashami Chhah Khata Tehsil, district Nainital, Gajula Ramaram village, Qutabullapur Mandal, Ranga Reddy district, rank pari-passu charge (except the Nainital properties at Hyderabad and Bangalore shall stand charged exclusively to SBI) for securing working capital facilities aggregating to Rs. 115.000 millions SBI acting for itself and as agent of The Pradeshiya Industrial and Investment Corporation of UP Limited, for their State Investment Capital Subsidy of Rs. 3.000 millions and as modified by Third Supplemental Agreement of Hupothecation dated 28.04.2000 for Rs. 148.000 millions in favour of the Bank over the said goods and assets to cover the aggregate limit of Rs. 120.000 millions. The Borrower hereby agrees and declares that the said goods, debts and assets hypothecated and charged in favour of the bank and under the said agreement shall be and stand charged in favour of the bank as a continuing security by way of First Charge., and immovable properties stated in Memorandum of Entry No. 685, dated 27.03.2000 stated spare shall be and stand charged in favour of the bank as continuing security by way of additional Collateral Security for the due repayment on demand to the bank of all limit monies including the principal sums, interest, costs, charges, expenses and other monies repayable by the borrower from time to time and for the time being to the bank in respect of or in any way concerning the aforesaid credit facilities agreed to be granted or continued by the bank to the borrower upto the aggregate limit of Rs. 120.000 millions including any increase as a result of devaluation / revaluation / fluctuation in the rate of exchange in the foreign currency on the terms and conditions to be observed and performed by the borrower and all the rights and the remedies confirmed on the bank by and under the said agreement shall apply and extend to the aforesaid credit facilites agreed to be granted and or continued by the bank upto the aggregate limit of Rs. 120.000 millions including any increase as a result of devaluation / revaluation / fluctuation in the rate of exchange in the foreign currency as if all the said terms and conditions and covenants and the said rights and remedies were incorporated herein. The borrower agrees and declares that save and except as modified by this agreement, all the respective clauses covenants conditions and stipulations contained in the said agreement. Agreement shall in all other respects remain in ful force and binding on the borrower in respect of the aforesaid credit facilities agreed to be granted and continued upto the limit of Rs. 120.000 millions.

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.45.01
UK Pound	1	Rs.84.91
Euro	1	Rs.57.48

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	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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