MIRA INFORM REPORT

Report Date :

23.11.2006

IDENTIFICATION DETAILS

Name :	MEDREICH LIMITED
Formerly Known As :	MEDREICH STERILAB LIMITED
Registered Office :	Medreich House No 12/8, Saraswati Ammal Street, M. S. Nagar, Bengalore – 560033, Karnataka
Country :	India
Financials (as on) :	31.03.2004
Date of Incorporation :	16.08.1973
Com. Reg. No.:	08-2383
CIN No.: [Company Identification No.]	U24232KA1973PLC002383
TAN No.: [Tax Deduction & Collection Account No.]	BLRS01934C
PAN No.: [Permanent Account No.]	AABCM1458Q
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturers of Pharmaceutical Formulations such as Amoxycillin, Ampicillin, Chloromphenicol, Chloroquine Phosphate, Ibuprofen, Indometacin, Metronidazole, Paracetamol, Sulphadoxine, Tetracycline, Amikacin, Analgin, Benajathine Penicillin, Dexamethasone, Gentamycin, Cotrimoxazole, Erthromycin, Cloxacillin, Ketoconazole, Procaine, Augmentine, etc. in the form of capsules, tablets, liquids, etc

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 1500000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	Medreich House No 12/8, Saraswati Ammal Street, M. S. Nagar, Bengalore – 560033, Karnataka, India
Tel. No.:	91-80-25493334 [10 Lines]
Fax No.:	91-80-25474741
E-Mail :	bnk@ho.medreich.com query@ho.medreich.com medreich@vsnl.com
Website :	http://www.medreich.com
Area :	Leased -- 1500 sq. fts
Corporate office :	Survey No. 4/3, Avalahalli, Off Kanakpura Road, Anjanapura Post, Bangalore, Karnataka, India
Tel. No.:	91-80-25493334
Fax No.:	91-80-25474741
Factory :	Ø 12^th Mile, Old Madras Road, Virgo Nagar, Bangalore – 560049, Karnataka, India Area : 3500 sq. ft. -- owned Ø 4/2, Anjanapura, Avalahalli, Karakapura Road, Bangalore, Karnataka, India Ø 49 B & C, Bommasandra Industrial Area, Bangalore, Karnataka, India Ø Plot No. 36, Bommasandra Industrial Area, Bangalore, Karnataka, India

DIRECTORS

Name :	Mr. C. Pukhraj Bothra
Designation :	Managing Director
Address :	14, 7^th Cross, Jaibharat Nagar, Bangalore – 560033, Karnataka
Date of Birth :	20.07.1956
Date of Appointment :	01.06.1990
Experience :	25 years
Name :	Mr. J. R. Venu
Designation :	Whole Time Director
Address :	Basanth no. 1, 4^th Main Road, Tata Silk Farm, Bangalore – 560004, Karnataka
Date of Birth :	17.02.1956
Date of Appointment :	01.06.1990
Name :	Ms. Anita Mehta
Designation :	Director
Address :	141 French Street, Sunbury Upon Thames, Middlesex, United Kingdom, TW16SJY
Date of Birth :	03.04.1954
Date of Appointment :	14.09.1996
Date of Ceasing :	19.05.2004
Name :	Mr. Keith De Souza
Designation :	Director
Address :	36, Queens Road, Hanworth Park Feltham, Middlesex, United Kingdom, TW13TNU
Date of Birth :	01.07.1955
Date of Appointment :	14.09.1996
Name :	Ms. Vandana Bothra
Designation :	Director
Address :	No. 14, 7^th Cross, Jaibharat Nagar, Bangalore – 560033, Karnataka, India
Date of Birth :	01.06.1980
Date of Appointment :	03.04.2003
Name :	Ms. Kushboo Bothra
Designation :	Director
Address :	No. 14, 7^th Cross, Jaibharat Nagar, Bangalore – 560033, Karnataka, India
Date of Birth :	30.05.1983
Date of Appointment :	03.04.2003
Name :	Mr. Paul Michael Barett
Designation :	Chairman
Address :	1, Leicester Close, Henley – On – Thames, Oxon, RG92DLD
Date of Birth :	09.11.1945
Date of Appointment :	19.05.2004
Name :	Mr. Rajeev Mehta
Designation :	Director
Address :	80, Wyatt Drive, Barnes, London, England – SW 138AB
Date of Birth :	19.08.1951
Date of Appointment :	19.05.2004
Name :	Mr. Simon George Brundan
Designation :	Director
Address :	Horwood Cottage, Churt Road, Hindhead, Surrey, FU266HZ
Date of Birth :	05.04.1964
Date of Appointment :	19.05.2004
Name :	Mr. Ramesh Dasari
Designation :	Secretary
Address :	Prabhu Nivas, Munikalpa Lane, Kamanathallli Main Road, Bangalore – 560033, Karnataka, India
Date of Birth :	14.05.1967
Date of Appointment :	22.10.2001

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. J. R. Venu	62500
Ms. Leela Kanwar	3001810
Ms. Vimaladevi	340920
Mr. C. P. Bothra	338040
Mr. Arun Kumar Chordia	240760
Mr. Harish Kumar Chordia	152250
Mr. Hemanth Kumar Bothra	7550
Mr. Pradeep Kumar Chordia	106900
Med Holdings [UK] Limited	8105290
Mr. Hemanth Kumar Bothra	635500
Ms. Kushboo Bothra	161300
Mr. Praful Kumar Chordia	18000
Ms. Vandana Bothra	30950
Mr. C. P. Bothra	1706570
Mr. Arun Kumar Chordia	352200
Mr. C. P. Bothra	632250

BUSINESS DETAILS

Line of Business :	Manufacturers of Pharmaceutical Formulations such as Amoxycillin, Ampicillin, Chloromphenicol, Chloroquine Phosphate, Ibuprofen, Indometacin, Metronidazole, Paracetamol, Sulphadoxine, Tetracycline, Amikacin, Analgin, Benajathine Penicillin, Dexamethasone, Gentamycin, Cotrimoxazole, Erthromycin, Cloxacillin, Ketoconazole, Procaine, Augmentine, etc. in the form of capsules, tablets, liquids, etc
Exports to :	U.K., Africa and Canada
Imports from :	U.K., Spain, Germany, China, Malaysia and Italy
Terms :
Selling :	L/C, D/P, Credit [15/60/120 days] terms
Purchasing :	L/C, D/P, Credit [45/90/30-180 days] terms

PRODUCTION STATUS

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Capsules	N.A.	30000	10054.61
Tablets	N.A.	33600	11952.57
Bottles	N.A.	180	N.A.
Liquids [K Ltrs]	N.A.	N.A.	1397.49
Vials	N.A.	N.A.	17656.68

GENERAL INFORMATION

Suppliers :

Ø Sel Jegat Printers, Sivakasi,

Ø Enzed Chloro Products Private Limited, India

Ø Fine Print Private Limited, India

Ø Yuno Packaging Private Limited, India

Ø Biotica, Spain

Ø Ribbon SCR, Italy

Ø Sauter AG, Germany

Ø Shimatzo, Japan

Ø S. M. Chemicals, Malaysia

Customers :

Ø Medreich PLC, UK

Ø Glaxo Smith Kleine

No. of Employees :

Total 462 : In Office 75 persons and In Factory 387 persons

Bankers :

Ø State Bank of Mysore

Industrial Finance Branch, Bangalore – 560001, Karnataka, India

Ø Canara Bank

Overseas Bank, M. G. Road, Bangalore – 560001, Karnataka,

India

Ø Housing Development Finance Corporation Limited

Ø Corporation Bank

Ø Karnataka State Financial Corporation

Ø Karnataka State Industrial Investment & Development Corporation Limited

Facilities :

	As on 31.03.2004 [Rupees in Millions]
SECURED LOANS :
TERM LOANS
State Bank of Mysore	102.042
Canara Bank	26.888
Housing Development Finance Corporation Limited	13.220
Corporation Bank	123.937
WORKING CAPITAL
State Bank of Mysore	269.503
Canara Bank	139.120

Banking Relations :	Good
Auditors :	Adarsh & Company Chartered Accountants # 26, Samson Complex, Missior Road, Bangalore – 560027 Tel. No. 91-80-22225460 Fax No. 91-80-22239873 E-mail : adarshrao@hotmail.com
Associates :	Ø Synchron Research Service Private Limited Ø Kanpha Labs Private Limited, Bangalore, Karnataka, India Ø Med Holdings [UK] Limited
Subsidiary :	Ø Trust Chemists and Druggists Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
15910000	Equity Shares	Rs.100/- each	Rs. 159.100 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15892790	Equity Shares	Rs.100/- each	Rs. 158.928 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2004	31.03.2003	31.03.2002
SHAREHOLDERS FUNDS
1] Share Capital		158.928	142.666	29.033
2] Share Application Money		0.064	0.000	0.000
3] Reserves & Surplus		263.995	74.458	139.090
NETWORTH		422.987	217.124	168.123
LOAN FUNDS
1] Secured Loans		674.713	431.219	341.795
2] Unsecured Loans		13.548	13.504	16.184
TOTAL BORROWING		688.261	444.723	357.979
DEFERRED TAX LIABILITIES		44.164	[0.405]	0.000
TOTAL		1155.412	661.442	526.102
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		741.945	273.890	235.931
Capital work-in-progress		0.000	117.973	32.562
INVESTMENT		8.530	7.540	0.040
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	470.165	308.637	200.333
	Sundry Debtors	446.221	319.755	370.463
	Cash & Bank Balances	15.453	15.569	11.841
	Other Current Assets	9.073	10.094	7.078
	Loans & Advances	76.008	37.090	27.071
Total Current Assets		1016.920	691.145	616.786
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	576.647	400.920	345.859
	Provisions	35.336	28.186	13.358
Total Current Liabilities		611.983	429.106	359.217
Net Current Assets		404.937	262.039	257.569
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1155.412	661.442	526.102

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2004	31.03.2003	31.03.2002
Sales Turnover [including other income]	1850.070	1485.246	1247.550
Profit/(Loss) Before Tax	132.972	62.680	54.493
Provision for Taxation	31.166	12.554	6.750
Profit/(Loss) After Tax	101.806	50.126	47.743
Export Value	1063.579	893.539	813.844
Import Value	484.876	486.138	237.664
Total Expenditure	1717.098	1422.566	1192.604

KEY RATIOS

PARTICULARS		31.03.2004	31.03.2003	31.03.2002
PAT / Total Income	(%)	5.50	3.37	3.82
Net Profit Margin (PBT/Sales)	(%)	7.18	4.22	4.36
Return on Total Assets (PBT/Total Assets}	(%)	7.56	6.49	6.39
Return on Investment (ROI) (PBT/Networth)		0.31	0.28	0.32
Debt Equity Ratio (Total Liability/Networth)		3.07	4.02	4.26
Current Ratio (Current Asset/Current Liability)		1.66	1.61	1.71

LOCAL AGENCY FURTHER INFORMATION

History

Subject was incorporated on 16^th August, 1973 at Bangalore in Karnataka under the name and style ‘Sterilab Private Limited’

The company’s name was changed to ‘Medreich Sterilab Private Limited’ w. e. f. 12.09.1996, consequent to financial collaboration with ‘Med Holding [U.K.] Limited], Surrey, U.K. for 51% holding.

It was converted from private limited company to public limited company w. e. f. 01.07.1997.

The company was merged with ‘Krystal Parenterals Private Limited’ w. e. f. 01.04.1999

The company’s name was changed to present recently.

REVIEW OF COMPANY PERFORMANCE

During the year the company has achieved a turnover of Rs. 1770.800 millions, registering a growth of 24% compared with previous year. Profit before interest, depreciation and taxation was Rs. 199.400 millions as compared to Rs. 166.500 millions for the previous year. After providing interest of Rs. 41.600 millions [Rs. 48.500 millions previous year] and depreciation of Rs. 24.800 millions [Rs. 55.400 millions previous year] the profit before tax was Rs. 133.000 millions as against the previous years profit of Rs. 62.700 millions.

DIVIDEND

The Board of Directors at their meeting held on 2^nd July, 2004 declared an interim dividend at the rate of 10% i.e. Re. 1 per share for the year ended March 31, 2004. Further dividend is not recommended and the interim dividend already paid, be considered as final dividend for the year.

JOINT VENTURE

During the year the company has entered into a Share Purchase Agreement with XCylon Diagnostics Limited, Bangalore a company engaged in the development, manufacturing and marketing of various immunodiagnostic kits, for purchase of 572713 equity shares of Rs. 10 each at a premium of Rs. 29 partly by allotment of fresh shares form the company and partly by purchase of existing shares of its promoter, constituting 50% of the enhanced paid up share capital of XCyton Diagnostics Limited.

SHARE CAPITAL

During the year, the company has split each share of Rs. 100 of its share capital into ten shares of Rs. 10 each and on intimation, Reserve Bank of India has taken the same on record. The company has issued and allotted 2107540 fresh shares of Rs. 10 each with due compliance of the guidelines issued by the Reserve Bank of India.

Generic Names of three Principal Products / Services of the company are as under :

Item Code Number	Product Description
30041003	Ampicillin
30041004	Amoxicillin
30041005	Cloxacillin

It imports Chemicals / Raw Materials for own use against L/C, D/P or Credit [30/180 days].

and exports its part of production against L/C, D/A or Credit up to [120 days] terms.

It is in trade terms with :

> Medreich Plc, U.K.

> Formulation Plc, U.K.

> Karib Chenie, U.K.

> Glaxo Smith Kleine, U.K.

> Formulex, Canada

The company has collaborations with Medreich Plc, U.K.

Caption factory premises at Avalahalli of area admeasuring 50000 sq. fts. is leased by the company and owned by the group having land of 220000 sq. ft.

FIXED ASSETS

Land

Factory Buildings

Office Buildings

Plant and Machinery

Electrical Equipments & Installations

Furniture and Fittings

Vehicles

Office Equipments

Computers

Name of the company	MEDREICH LIMITED
Presented By	Mr. C. P. Bothra, Managing Director
1) Date and description of instrument creating the change	17^th March, 2005 Deed of hypothecation [copy is enclosed]
2) Amount secured by the charge/amount owing on the securities of charge	Term loan of Rs. 250 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	All of the borrowers present and future moveable fixed assets including the plant and machinery, furniture and fixtures, lightings, etc. situated at company’s Unit – I, at 12^th Mile, Old Madras Road, Virgonagar, Bangalore – 49 and at company’s corporate office at Medreich House, No. 12/8, Saraswathi Ammal Street, M. S. Nagar, Bangalore – 33 and morefully described in the schedule attached to the hypothecation agreement.
4) Gist of the terms and conditions and extent and operation of the charge.	YES BANK LIMITED Nehru Centre, 9^th Floor, Dr. A. B. Road, Worli, Mumbai – 18 2.39% p.a. prevalent from time to time Overdue rate : 2% p.a. Principal repayment : 6 equal half yearly installments, first installment payable at the end of 18 months from the date of first drawdown Prepayment : Allowed on the interest reset dates
5) Name and Address and description of the person entitled to the charge.	YES BANK LIMITED Nehru Centre, 9^th Floor, Dr. A. B. Road, Worli, Mumbai – 400018
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Name of the company

MEDREICH LIMITED

Presented By

Mr. C. P. Bothra, Whole Time Director

1) Date and description of instrument creating the change

2^nd December, 2003

Deed of hypothecation [copy is enclosed]

2) Amount secured by the charge/amount owing on the securities of charge

Additional Term Loan of Rs. 31.200 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

The plant and machinery of the company acquired / to be acquired for the purpose of expansion of manufacturing facility at its Unit at No. 49D, Bommasandra Industrial Area and more fully described in schedule to the hypothecation agreement and lying at the company’s said unit

Raw materials, stock-in-process, consumables, finished goods stored at the company’s factory premises situated at 12^th Mile, Old Madras Road, Virgo Nagar, Bangalore – 49, and such other places belonging to the company

Second charge on the plant and machinery situated at the company’s factory premises situated at 12^th Mile, Old Madras Road, Virgongagar, Bangalore – 49 and such other places belonging to the company

4) Gist of the terms and conditions and extent and operation of the charge.

The charge operates as security interalia for the due repayment of the loans and also for all indebtedness or liabilities of the borrower to the bank

Date of creation of charge : 17.07.1997 / 25.07.1997 D. No. 143

1. Date and description of the instrument creating the charge date : 17.07.1997 [Seventeenth day of July Nineteen Ninty Seven] Regd. 25.07.1997

Joint Deed of Hypothecation. Working Capital Consortium Agreement [Both the above agreements pertain to same charge]

2. Amount secured by the charge / amount owing on security of the charge :

Rs. 185 millions

SBM CB

[Rupees in Millions]

A. Fund based

1. C. C. Hypothecation

Packing Credit 24 --

PC/PCFC -- 16

2. Post Shipment

FUBD – DA Bills 36 --

FDB/FBE/BRD -- 24

B. Non Fund Based

1. Inland/Foreign letter

of credit [DA/DP] 30 20

2. Bank Guarantee 21 14

TOTAL ----- -----

111 74

------ -----

a. PACKING CREDIT / PCFC

	State Bank of Mysore	Canara Bank
Interest	13% upto 180 days	13% p.a. for PC and CROI for PCFC
	15% beyond 180 days to 270 days
Margin	25%	25%
ECGC Cover	Will be covered under WIPCG and ECG specific Policy	Will be covered under WIPCG or ECGC
Validity	12 months or earlier at the discretion of the Bank	60 days

B. POST SHIPMENT [FUBD]/FBE/FDB/BRD

Primary
Security	DA/DP Bills	DA/DP Bills
Interest -
For Demand Bills	13%	As per bank’s scheme
Usance bills upto 90 days	13%
90 to 180 days	19.5%
Beyond 180 days	21.5%
Validity / Period	12 months or earlier at the discretion of the bank. Usance period of 45 days to 90 days	Usance period 60 days

C. BANK GUARANTEE :

Security	Counter Guarantee
Margin	15%	15%
Period	Maximum upto 3 years	One year excluding claim period
Validity	12 months or earlier at the discretion of the bank
Purpose	Issuance to DGFT / Custom Authorities	For issue of performance guarantee against import entitlements

D. LC/FLC/ [DA/DP]

Primary Security	Goods covered under LC	Goods covered under LC
Margin	Cash margin 20%	Cash margin 20%
Period	180 days Usance	180 days
Tenor	D/A basis	DA & DP basis
Commission	As per FEDIA Rules / Bank rates	As per FEDIA Rules / Bank rates
Validity	12 months or earlier at the description of the bank

5) Name and Address and description of the person entitled to the charge.

STATE BANK OF MYSORE	CANARA BANK
Industrial Finance Branch, 18, Ramanashree Aracade, M. G. Road, Bangalore – 560001 [A Banking Company]	Oveseas Branch, M. G. Road, Bangalore – 560001, [A Banking Company]

6) Date and brief description of instrument modifying the charge

30.05.2003

Joint Deed of Hypothecation

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.

The working capital limits have been increased from 245 millions to Rs. 410 millions

Name of the facility	A Bank	B Bank
	State Bank of Mysore	Canara Bank
FUND BASED
1. Packing Credit [Hypothecation of stocks]	45	30
2. Cash Credit [Hypothecation of Stocks]	9	6
3. Foreign Demand Bills Purchased [FDBP] / Foreign Usance Bills Purchase [FUBP]	102	68
NON – FUND BASED
1. Inland / Import Letter of Credit Sight / DA upto 180 days	72	48
2. Bank Guarantee	18	12
TOTAL	246	164

AS PER WEBSITE

As the world is shrinking and trade barriers are beginning to come down, the pharmaceutical industry is constantly in search of ways to reduce cost without compromising on quality or service; so as to retain a competitive edge in the global market place.

Medreich Sterilab Ltd. (Medreich) is an Indian Company and forms part of the UK Group of companies comprising of Medreich plc. They have an international focus, and world-class accredited plants that are capable of offering low cost, high quality out-sourcing solutions for its customers.

They specialise in developing and delivering bespoke solutions for their major international customers. They have the capability to handle significant complexity and to produce a wide range of products and dosage forms, in varied packing presentations.

Medreich strictly adheres to all cGMP requirements and through regular Audit interactions with International agencies, they are constantly upgrading their plants to meet the needs of the changing Regulatory scenario, Quality requirements, while keeping an eye on Environment, Health and Safety.

Medreich plants are certified by the UK MHRA, TGA Australia, South Africa MCC as well as leading multinational and Indian pharmaceutical companies.

They are committed to setting the best standards in the industry, to build long-term relationships with their customers, deliver complete satisfaction, while improving business performance.

They actively seek strategic alliances with growing, dynamic and leading companies that share their Vision of offering very competitively priced formulations without compromise on Quality and Service.

Quality

Every Unit produced by the Company, will totally conform to the quality systems & procedures laid down by the company.

•  Every Unit produced by the Company, will be in accordance with the process, procedures & controls as laid down by the company.

•  Every input and component that goes into the product produced, will conform to all standards laid down by the Company.

•  Every manual, document, certificates, approvals, will be made to conform to the highest quality standards.

•  Every human resource available in the Company, while they are directly or indirectly connected with the production of every Unit will adhere to all quality systems, controls, & procedure.

•  Every Unit produced by the Company, will carry the Company’s commitment to quality & customer satisfaction.

•  The Company will make constant & continuous endeavors to upgrade & enhance its procedures, systems & controls to keep up to the latest Quality Standards in vogue at any given point in time.

Facility

Dedicated Manufacturing Facility for ß-lactam Capsules, Tablets and Dry Powder Suspension

Unit-II

Dedicated Manufacturing Facility for Non-Penicillin Capsules

Unit-III

Manufacturing Facility for non-Penicillin Tablets, Liquids & 
Dry Powder Suspension

Unit-IV

Manufacturing facility for Tablets,
Capsules and Pellets

FD

Formulation Development Centre

Support

Regulatory Affairs:

Fully equipped and staffed by a team of professionals that can compile and update all regulatory documents in line with International requirements, including those of the UK MHRA, TGA Australia and South African MCC. Speed of response according to the customer’s requirements is paramount to this team, together with the accuracy and presentation of the data.

Shelf Life Claim and Stability testing:

Fully equipped to undertake multiple studies on both finished product packs as well as active ingredients. Stability studies can be done according to the full range of ICH Guidelines as well to more stringent standards of analysis and accelerated stability testing. They always make sure we have the full supporting data and documentation to underpin shelf-life claims.

Logistics:
In-house experienced & professional logistics department capable of delivering the products at a very competitive cost & speed any where in the world.

Packaging development:
In-house experienced technical & creative professionals offering diverse packaging presentations custom made for all the customers.

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. 44.74
UK Pound	1	Rs.86.68
Euro	1	Rs.58.71

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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