MIRA INFORM REPORT

Report Date :

25.04.2007

IDENTIFICATION DETAILS

Name :	FAIRDEAL SUPPLIERS PRIVATE LIMITED
Registered Office :	4, B.B.D. Bag (East) 1^st Floor Stephen House, Room no: 5, Kolkata 700001, PS: Hare Street (TFD), West Bengal
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	21.07.1987
Com. Reg. No.:	097552
CIN No.: [Company Identification No.]	U51909WB2004PTC097552
TAN No.: [Tax Deduction & Collection Account No.]	AHMF00087D
PAN No.: [Permanent Account No.]	AAACF2878C
Legal Form :	Private Limited Liability Company.
Line of Business :	Subject acts as traders and suppliers of hard coke and steam coal

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 1000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are as fair. Business is active. Payments are usually correct and as per commitments. The Company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	4, B.B.D.Bag (east) 1^st Floor Stephen House, Room No: 05, Kolkata – 700001, PS: Hare Street (TFD) West Bengal – India.
Tel. No.:	91-33-22201153 / 22206825
Fax No.:	91-33-22436124
E-Mail :	ftl@cal3.vsnl.net.in
Website :	www.fairdealsupplies.com
Contact Person :	Mr. Vinod Arora
Head Office :	4^th, Floor, “Shalin”, Nr. Neharu Bridge Corner, Ashram Road, Ahmedabad 380009 Gujarat.
Tel. No.:	91-79-26578201 / 26578863 / 26579750
Fax No.:	91-79-26576619
E-Mail :	fdspl@dataone.in
Contact Person :	· Mr. Pawan Kumar Agarwal , · Mr. Dinesh Shah , · Mr. Dinesh Jain
Corporate Office :	301, 3^rd Floor, Saffron Tower, Nr. Ambawadi Circle, Panchvati, Ahmedabad 380006, Gujarat
Tel. No.:	91-79-26444883 / 26444890 / 26449310
Fax No.:	91-79-26444885
E-Mail :	Forntine1@dataone.in
Contact Person :	Mr. Divyang Oza
Pipavav Plant :	Plot No. 17/26, Rampara Village –II, Pipavav Port Road, Tal. Rajula , Dist.Amreli , Gujarat
Tel. No.:	91-2794-286246 , 286399
Fax No.:	91-2794-286534
E-Mail :	fairdealpipavav@yahoo.com
Contact Person:	Mr. Vijay Dhawan
Gandhidham Plant :	Village & Post Chopdava , Taluka – Bhachchau , Kutch, Gujarat
Tel. No.:	91-2836-228508
Fax No.:	91-2836 – 228508
E-Mail :	Fair_@sancharnet.in
Contact Person :	Mr. Vinod Arora
Branches :	854, Avanshi Road, (Near India Card Clothing) Peelamedu Post, Coimbatore – 641004.
Tel. No.:	91-422-256866
Mobile No.:	91-9843016320
Contact Person :	Mr. O. P. Sharma

DIRECTORS

Name :	Mr. Ram Prasad Agarwal
Designation :	Chairman Cum Managing Directors
Address :	140/4B , N.S.C. Bose Road, Tollygunj Kolkata , West Bengal 700040
Date of Birth/Age :	25.05.1954
Experience :	30 Years
Date of Appointment :	21.07.1987
Name :	Mr. Narayanprasad Agarwal
Designation :	Managing Directors
Address :	140/4B , N.S.C. Bose Road, Tollygunj Kolkata , West Bengal 700040
Date of Birth/Age :	12.05.1958
Date of Appointment :	21.07.1987
Name :	Mr. Pawan Kumar Agarwal
Designation :	Directors
Address :	140/4B , N.S.C. Bose Road, Tollygunj Kolkata , West Bengal 700040
Date of Birth/Age :	12.09.1960
Qualification :	Gradugate
Date of Appointment :	21.07.1987
Name :	Mr. Saurabh Jhunjhunwala
Designation :	Director
Address :	140/4B , N.S.C. Bose Road, Tollygunj Kolkata , West Bengal 700040
Date of Birth/Age :	12.12.1976
Date of Appointment :	20.07.1994

KEY EXECUTIVES

Name :	Mr. Dinesh K. Shah
Designation :	C.E.O.
Name :	Mr. Dinesh Kumar Jain
Designation :	Vice President
Name :	Mr. Vijay Dhawan
Designation :	General Manager
Name :	Mr. Vinod Arora
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Baijram Agarwal	115500
Mr. Sarav Zunzunwala	10500
Mr. Pawankumar Agarwal	1550
Mr. Narayan Prasad Agarwal	60000
Mr. Ramprasad Agarwal	100480
Mr. Rakesh Kedia	30000
Mrs. Ramjidevi Agarwal	76000
Mr. Bhomiya Agarwal	46000
	Percentage of Holding
Bodies Corporate	0.20
Directors or relatives of directors	99.67
Other top fifty (50 ) Shareholders	0.13

BUSINESS DETAILS

Line of Business :	Subject acts as traders and suppliers of hard coke and steam coal
Products :	Thermal Coal , Coking Coal , Low Ash Metallurgical Coke Steel and Steel Scrap Pig Iron/Iron Ore

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
MartallurgicalCoke 2003-2004	M.T	N.A.	30000.000	25350.388
MartallurgicalCoke 2002-2003	M.T.	N.A.	30000.000	2500.075

GENERAL INFORMATION

Customers :	· GHCL Ltd. · Saurashtra Chemicals Ltd · Ispat Metallics (India) Ltd · Jindal Vijayanagar Steel Ltd. · Jindal Saw Ltd. · Jayaswals Neco Ltd. · Usha Ispat Ltd. · Nirma Ltd.
No. of Employees :	30 People
Bankers :	· Dena Bank, Maskati Market, Ahmedabad, Gujarat · UCO Bank , 3 Netaji Subash Road Kolkata West – Bengal
Facilities :	· Hire purchase of Rs.40.000 millions dated 20.10.1999 · Long Term Loans

Banking Relations :	Satisfactory
Auditors :
Name :	Jain Kedia and Sharma Chartered Accountants
Address :	13 Mills Officers Colony, Behind Laa Gajjar Chembers . Ashram Road , Ahmedabad Gujarat 380009
Associates/Subsidiaries :	· Falgun Export Private Limited. · Centre for Advanced studies in Engineering · Nova Impex Private Limited · Fair Chemical & Marketing · Fairdeal (partnership firm) · Secientific weighbridgr (partnership firm) · Forntline Industries Limited · Derwent Cyrstal India Limited · Prima Financial Services Limited.

Key Management Personnel & Their Relatives:

Pawankumar Agarwal

Narayaprasad Agrawal

Saurabha Jhunjhunwala

Ramprasad Agrawal

Baijnath Agrwal & Sons H.U.F

Bhagwani Devi Agrawal

Guurav Jhunjhunwala

Hansa Agrawal

Mukund Jhunjhunwala

Narayanprasad Agarwal & Sons H.U.F.

Ramprasad Agarwal & Sons H.U.F.

Rendudevi Jhunjhunwala

Rewadevi Jhunjhunwala

Shilpi Jhunjhunwala

Manju Chaudhary.

CAPITAL STRUCTURE

Authorised Capital:

No. of Shares	Type	Value	Amount
2000000	Equity Share	Rs.10/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
1999900	Equity Share	Rs.10/- each	Rs.19.999 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		19.999	19.999	19.999
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		235.319	311.665	180.182
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		255.318	331.664	200.181
LOAN FUNDS
1] Secured Loans		512.625	394.710	131.816
2] Unsecured Loans		94.806	27.258	35.227
TOTAL BORROWING		607.431	421.968	167.043
DEFERRED TAX LIABILITIES		66.718	82.892	42.621
TOTAL		929.467	836.524	409.845
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		602.402	559.343	194.023
Capital work-in-progress		6.544	105.261	92.605
INVESTMENT		0.749	1.902	1.883
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	980.249	269.947	6.670
	Sundry Debtors	184.723	125.679	21.267
	Cash & Bank Balances	169.982	213.047	132.590
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	35.724	149.197	54.515
	Stock on Lease	0.000	0.707	1.471
Total Current Assets		1370.678	758.577	216.513
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1037.515	588.575	95.202
	Provisions	13.400	0.000	0.000
Total Current Liabilities		1050.915	588.575	95.202
Net Current Assets		319.763	170.002	121.311
MISCELLANEOUS EXPENSES		0.009	0.016	0.023
TOTAL		929.467	836.524	409.845

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004
Income From Operations		1989.020	1093.377
Other Income		16.643	20.887
Total Income		2005.663	1114.264
Profit/(Loss) Before Tax		186.033	53.529
Provision for Taxation		54.271	33.102
Profit/(Loss) After Tax		131.762	30.427
Earnings in Foreign Currency :
	Export Traveling	0.000	1.561
	Demuarage Charges	0.000	0.311
Total Earnings		0.000	1.872
Imports :
	Raw Materials	0.000	35.749
	Traded Goods	0.000	678.885
Total Imports		0.000	714.634
Expenditures :
	Material Cost	1653.257	962.505
	Manufacturing Administration & Selling Expenses	55.939	44.752
	Financial Charges	38.518	20.718
	Depreciation	71.591	21.597
Total Expenditure		1819.305	1049.572

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	N.A	6.56	2.73
Net Profit Margin (PBT/Sales)	(%)	N.A	0.000	0.000
Return on Total Assets (PBT/Total Assets}	(%)	N.A	0.14	0.12
Return on Investment (ROI) (PBT/Networth)		N.A	0.56	0.26
Debt Equity Ratio (Total Liability/Networth)		4.11	1.77	0.47
Current Ratio (Current Asset/Current Liability)		1.30	1.28	2.27

LOCAL AGENCY FURTHER INFORMATION

Group companies are:

Frontline Corporation Ltd. (FCL) – a listed Company with a turn-over of Rs. 100 crores. The company plans, develops and executes client specific, customized logistic systems and supplies and supports the operations of Bulk Transportation. The company has a fleet of over 600 trucks and a net-work of Branches all over India to cater to different Industrial and Corporate segments. The company has also expanded its activities in the Auto Component Marketing of leading Brands like MICO and Mahindra & Mahindra. The company has diversified into manufacturing of High Temperature Refractories through a take-over of Plant in Kadi.

Falgun Export Pvt. Ltd.
The main business activities include – Trading in Shares, Loan Transfer and Wind Energy Generation.

Nova Impex Pvt. Ltd.
Its main commercial activity is maintenance and rentals of Godowns, which the Group constructs and leases out to large, reputed Corporations.

Fair Chemical & Marketing
Its main operation is marketing of Soda Ash in the Eastern region, head-quartered at the Kolkata office.

Besides the diversified commercial activities, the Group has fulfilled its social obligations through arrangements and successful operation of an Engineering and Technical Educational Institute, located in Himachal Pradesh.

Fixes Assets:

Frechold Land

Building

Plant & Machinery

Vehicals

Furniture & Fixtures

Contingent Liability Not Provided For:

	2003-2004	2002-203
(A) Bank Gurantee issued in favours of suppliers	5000100	3000000
(B)Suit Filed against the company (refer Nore 5 below )	7900000	7900000
(C) Anti Dumping Duty (Refer Note No.6 Below)	27114615	27114615
(D)Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	14685101	71729628
(E) Disputed Income Tax Demands	6229397	2687243

Name of the company	FAIRDEAL SUPPLIES PRIVATE LIMITED
Presented By	PAWAN KUMAR AGARWAL
1) Date and description of instrument creating the change	10^th August,2005 Agreements of Hypothecation of Goods and Assets dated 10^th day of August, 2005 executed by Fairdeal Supplies Private Limited (Company) in favour of State Bank of Patilal (Bank). A certifies copy of the said Agreement of Hypothecation of Goods and Assets is enclosed.
2) Amount secured by the charge/amount owing on the securities of charge	The Rupee Term Loan exceeding Rs.110.000 millions agreed to be lent and advanced by the Bank to the Company together with all interest, liquidated damages , Costs , charges , expenses and all other monies payable by the Company to the Bank in terms of the loan Agreements dated 10^th August, 2005 entered into with the Bank By the company and the Bank (hereinafter referred to as ”the Loan Agreement”).
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 Whole of the Company’s movables, including its all plant and machineries, equipments, machinery spares, spares parts , tools and accessories, both present and future , whether installed or not and where now lying loose or in cases or which are now lying or stored in or to be stored in or to be brought into or upon or be stored at Ayinkudi village , Thenksi Distric in Tamilnadu, whether now belonging to or that may at the time during the countinuance of this Deed belong to the company and /or that may at present or hereafter beheld by any party to the order or disposition of the company and addition thereof whether by way of substitution and the company’s other assets , book-debts, outstanding monery’s receivables , claims including insurance claims and revenues of whatsoever nature , pertaining to the 6MW Wind Power Project situated in Tamilnadu. By way of Inter se Agreements among participating Banks executed between State Bank of Patiala and State Bank of Mysore on 10.08.2005 , Pari Passu Charges on the companies mavable and immovable properties as aforesaid has been created to secure Trem Loan of Rs.110.000 millions together with interest cause charges and expenses etc. granted by State Bank of Mysore to the Company.
4) Gist of the terms and conditions and extent and operation of the charge.	I. The charge operates as security , interalia , for the due repayment by the Company of the Term Loan of Rs.110.000 millions and payment of all interest , liquidated damages , costs , Charges , expenses and all other monies payable by the Company in terms of the Sanction Letter No.SBP/05-06/291 dated 19.07.2005 and Loan Agreement dated 10.08.2005 II. The security created under the said Deed of Hypothecation is to be a continuing security Other terms and conditions as may be prescribed by the bank from time to time.
5) Name and Address and description of the person entitled to the charge.	1.State Bank Of Patiala Vasupujya Chambers, Income Tax Circle, Ashram Road, Ahmedabad -380014. 2.State Bank Of Mysore – Pari Pussu Charge vide INTER SE AGREEMENT AMONG PARTICIPATING BANK executed between State Bank of Patiala and State Bank of Mysore on 10.08.2005 (Certified True Copy is enclosed) Shit ratna Building, pachawadi Circle off C.G. Road, Ahmedabad 380006.
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
On behalf of State of Patiala (Charge hold )	On behaf of Fairdeal Supplies private Limitewdd (Company)

Corporation identity number or foreign company registrations number of the company	U51909WB1987PTC097552
Name of the company	FAIRDEAL SUPPLIES PRIVATE LIMITED
Address	4 B. B. D. Bag (East) 1^st Floors Tephen House Room No 5 Hare Street (TFD) Kolkata 700001 West Bengal
This Form is for	Modification of charge
Type of Charges	Hypothecation
Particular of the charge holder	UCO Bank Industrial Finance branch 3, Netaji Subhash Road , kolkata 700001 West Bengal
Nature or description of the instrument creating charge	--
Date of the instrument creating charge	--
Amount Secure by the charge	Rs.500.000 millions.
Brief of the principal terms and conditions and extent and operation of the charge	Interest : As per Bank guidelines From Time To Time . Enter Hypothecated Assests Shall Be Insured Uder Bank Clasue.
Description of the property charge whether it is a charge on	Stock In Trade, Book Debts.
Modification charge Charge identification number of the charge to be modified
Date of instrument modifying the charge	90254492
Particulars of the Property charged	Hypotheciation of Entire Stock of low ash, Metallrugical coke steaming coal etc. and other products inclucts including iron ore produred or to be procured for export and other movables stored or be stored at the borrower’s premises godowns in the state of west Bengal and wherever else in India including goods in course of transit and also all present & future book debts outstanding moneys receivables etc and other current assets of the company.

Web Side Details:

Company Profile:

Subject is incorporated in 1987; has a long and successful history of dealing in various types of Coals and Metallurgical Coke. It is the flagship company of over Rs. 300 crores. Frontline Group, owned and managed by the Agarwal Brothers; with Kolkata and Ahmedabad being the main bastions of the Organization. The company has an all India net-work of Branches, Offices and Godowns/Warehouse to service its huge and diversified spectrum of clientele.

The Group in general and FDSPL in particular are on an exponential path of growth, diversification and development; both in Manufacturing Sector and Trading, inclusive of exports.

Apart from the main thrust on Manufacturing of Metallurgical Coke, the Organization deals in a number of industrial commodities like Soda Ash, imports of Coal and MetCoke and exports of Iron Ore etc.

The company has an existing annual production capacity of 150,000 MT Metallurgical Coke from imported Australian/Chinese Coking Coal. The Plants are located near Pipavav and Kandla Ports in Gujarat. Apart from this, the Company has already conceptualized and is in an advanced stage of implementation of a 700,000 MT Coke Oven Project, with Power Generation; near Mundra Port (Gujarat) at a cost of over Rs. 21.500 millions for the first phase of 350,000 MT capacity. The Company has extensive tie-ups for the required Coking Coal (Raw Material) with reputed Australian Suppliers both for its existing and future requirements.

In keeping with Govt. of India’s important Policy Thrust, the company has a highly advantageous and long-range investment in the Wind Energy Generation. Over 12 MW having already been installed, the company envisages an annual growth potential of 2 MW on a year-on-year basis in this Renewable Energy Sector.

The company has extensive dealings with Australia, China, Japan, Indonesia, etc. for sourcing both its Manufacturing and Trading requirements.

Promoters/Directors:

Shri Ramprasad Agarwal

Shri Ramprasad Agarwal – Chairman – the eldest son of Shri Baijnath Agarwal, erstwhile founder of the Group; has over 30 years experience of trading and marketing of Industrial Products like Coal, MetCoke, Soda Ash, etc. As an able Administrator, he has co-ordinated and stabilized all activities through very balanced management policies and growth-oriented dynamism. Presently, his focus is on international relationships for procurement of Coking Coal, MetCoke, etc. from various countries like Australia, Egypt, China, etc.

Shri Narayanprasad Agarwal

Shri Narayanprasad Agarwal – Director endowed with a keen sense of financial acumen, the 46 years Shri Narayanprasad Agarwal is the Chief Architect of co-ordinating all financial planning and arrangement of various facilities through Banks/ Institutions to enable spontaneous growth. He has also seized the potential of investments in real estate sector which has given the Group a more balanced assets portfolio apart from generating regular income.

Shri Pawankumar Agarwal

1978 to establish the Coal and MetCoke business in Western India. Within less than 10 years of the start, there was not only an exponential growth in the core business of Coal and MetCoke, but a major diversification into Bulk Transportation was efficiently promoted, expanded and stabilized. Through his personalized efforts; the company’s relationships with large Corporations like GHCL, Birla Copper, Ispat Metallics, Jindal Group, etc. grew on a strong foundation of service, efficiency and co-operation. In the 90s, a new dimension was added through imports of MetCoke/Coal from China, Australia, Indonesia, etc. and the company progressed to be a Market Leader. His natural instinct for diversification led to a substantial presence of the company in the Wind Energy Generation Sector (upwards of 12 MW) in a short span of 7 years. The next step was entering into Manufacturing Sector in the year 2000 and presently the company operates two Coke-Oven Plants located in Gujarat; with plans to stabilize and expand the capacities with improved technologies.

Shri Saurabh Jhunjhunwala

Shri Saurabh Jhunjhunwala – Director – at a comparatively young age of 21 years, he was already an active member of the family Management. With his fresh and progressive ideas, he has contributed substantially to develop a wider spectrum of clients and activities; with the main focus on Transportation Division of the Group. He is also actively exploring and pursuing export potential of the Industrial Products where he already has successfully made his mark.

The Management Team

Mr. Pawan Kumar Agarwal – MD is the key decision-maker, in consultation with the other team members. He professionally manages the Organization, backed by an excellent commercial assessment of Coal and Metallurgical Coke markets. His rich experience and reputed standing in the market has been beneficial in development of personalized contacts at the highest level of large Corporates and Clients

Mr. Dinesh K. Shah – C.E.O. has an engineering background with over 35 years of Industrial Project experience from concept to implementation. He is responsible for formulations, negotiations, and finalization of all contractual requirements, both commercial and legal. He is instrumental in acquiring financial resources through Banks and other Financial Institutions. Presently, he is heading a 0.7 Million Tonnes Co-Generation MetCoke Project

Mr. Dinesh kumar Jain – Vice President (F & A) is a qualified Chartered Accountant, mainly looking after Finance & Accounts of the company. He is responsible for audit and tax planning of the Company

Mr. Vijay Dhawan – General Manager - is the key person looking after the overall operation of Pipavav Plant.

Mr. Vinod Arora – General Manager - is overall in-charge of Gandhidham Plant. He has over 25 years of operational experience in Coke Oven Plants and quality control expertise.

Products Details:

Thermal Coal:

The material is used mainly in Boilers for supplying the necessary heat-energy to generate steam. We import Thermal Coal (Steam Coal) from Indonesia, South Africa, etc. and supply to direct consumers like Cement, Soda Ash, etc. manufacturers.

Coking Coal:

This material, also known as Metallurgical Coal; is exclusively used for carbonization into MetCoke in specially designed Coke-Ovens. We have a sizeable, contracted arrangement for procurement of both Prime and Soft Coking Coal from Australia, Colombia, China, etc. The material is imported both for our own consumption, in our own Coke-Oven Plants located near Pipavav and Kandla Ports; as well as for trading and supplying to a number of small Coke-Oven Plants located both in the Western and Eastern part of India.

Low Ash Metallurgical Coke:

Essentially this is a very important industrial raw material required by –

Steel Sector – both integrated Plants as well as secondary Steel/Pig Iron (Mini Blast Furnaces) Manufacturers

Foundries

Soda Ash

Zinc & Copper Smelters, etc

Because of its hardness, sizing possibilities, free carbon content, high calorific value and low ash/phosphorous/sulphur contents; it is directly beneficial to the Metal and the Chemical Industries.

We have a well established and wide spread marketing net-work for supply of MetCoke. Apart from having 2 Plants with installed capacities of approx. 150,000 MT to manufacture the same, we also import from China, Japan, etc. to cater to client’s specific requirements with the operational area of our MetCoke supplies ranging from Rajasthan / Delhi / Punjab / Maharashtra in the West to Karnataka/Tamil Nadu in the South and with some pockets in the Eastern part of India. To meet the short-fall in demand, we also source our Met Coke from leased Coke-Oven Plants by supplying our Coking Coal.

Steel and Steel Scrap:

Having the necessary experience of the Steel Market, the company periodically takes the opportunity to trade in this Sector.

Pig Iron/Iron Ore:

The company is studying potential of this market since the market requirement is governed by more or less the same segment which consumes Metallurgical Coke.

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.41.64
UK Pound	1	Rs.83.11
Euro	1	Rs.56.46

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	8
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		52

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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