MIRA INFORM REPORT

Report Date :

18.04.2007

IDENTIFICATION DETAILS

Name :	MTR FOODS LIMITED
Registered Office :	No. 4, 17^th Cross, K R Road, B S K 2^nd Stage, Bangalore – 560 070, Karnataka
Country :	India.
Financials (as on) :	31.03.2006
Date of Incorporation :	21.08.1996
Com. Reg. No.:	08-21007
CIN No.: [Company Identification No.]	U15136KA1996PLC021007
TAN No.: [Tax Deduction & Collection Account No.]	BLRM04085E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Company is engaged in Instant Food Mixes and Ready to Eat Items, Spices and Masala, Vermicell and Macaroni

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	USD 1200000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Company’s profitability is under severe pressure. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office:(Regional Sales Manager - South)	#4, 17^th Cross, K R Road, B S K 2^nd Stage, Bangalore – 560 070, Karnataka, India.
Tel. No.:	91-80-26760569/26760234
Fax No.:	91-80-26760227
Website :	http://www.mtrfoods.com
E-mail :	Mtrpsm@ber.vsnl.net.in
Regional Sales Manager – East	"Subhaneer", Flat - 3B, HJ/3 Rajarhat Road, Kolkata - 700 059
Tel. No.:	91-33 25706751 / 9831827306
E-Mail :	Pk.banerjee@mtrfoods.com
	Anup.gupta@mtrfoods.com
Ice Cream and Food Service / Institutions General manager –Operations / Manager Exports.	#4, 17th Cross, KR Road, BSK 2nd stage, Bangalore – 560 070.
Tel. No.:	91-80 26760569
E-Mail :	Srikanth.kalkur@mtrfoods.com
	neti@mtrfoods.com
All India Sales Manager	#4, 17th Cross, KR Road, BSK 2nd stage, Bangalore – 560 070.
Tel No.:	91-80-26760569
E-Mail :	Ramanathan.r@mtrfoods.com
Regional Sales Manager - North	# 34/A, Corner Market, Malviya Nagar, New Delhi - 110 017
Tel. No.:	011 55653129 / 9810301498
E-Mail :	Mnvv.prasad@mtrfoods.com
	Vikas.bhandari@mtrfoods.com
Regional Sales Manager - West	C/o Radiant Enterprises, Copper Roller Mills Compound, L.B.S. Marg, Bhandup (West) Mumbai – 400 078
Tel. No.:	022 55993112
E-Mail :	Manish.kharat@mtrfoods.com

DIRECTORS

Name :	Mr. Maiya Parampalli Sadananda
Designation :	Chairman & Managing Director
Address :	342, I ‘B’ Main, 7^th Block Jayanagar, Bangalore – 560 082, Karnataka.
Date of Birth/Age :	13.07.1949
Date of Appointment :	09.07.1997
Name :	Mr. Maiya P Sadananda S
Designation :	Director
Address :	342, I ‘B’ Main, 7^th Block Jayanagar, Bangalore – 560 082, Karnataka.
Date of Birth/Age :	30.12.1954
Date of Appointment :	21.08.1996
Name :	Mr. Maiya P Srinivasa (Dr.)
Designation :	Director
Address :	29, ‘Anupama’, 5^th Cross, 4^th Main, I Phase Girinagar, Banglore – 560 085, Karnataka.
Date of Birth/Age :	26.09.1943
Date of Appointment :	21.08.1996
Name :	Mr. Maiya P Padmanabha (Dr.)
Designation :	Director
Address :	No. 343, 25^th Cross, 9^th Main Banashankari II Stage, Karnataka
Date of Birth/Age :	17.01.1946
Date of Appointment :	21.08.1996
Name :	Mr. V Krishnamurthy
Designation :	Director
Address :	22 ½, 6^th Cross Gandhinagar, Bangalore – 560 009, Karnataka.
Date of Birth/Age :	16.12.1937
Date of Appointment :	21.08.1996
Name :	Mr. R Gopalanathan
Designation :	Director
Address :	Tuscan group, No. 51/7-2,Rathna Avenue, Off Richmond Road, Bangalore – 560 025, Karnataka
Date of Birth/Age :	03.11.1939
Date of Appointment :	30.03.2000
Name :	Mr. S N Subramanya
Designation :	Director
Address :	205, Centre Point, 56, Residency Road, Bangalore – 560 025. Karnataka.
Date of Birth/Age :	24.01.1962
Date of Appointment :	29.03.2001
Name :	Mr. K Vijayaprakash Rao
Designation :	Director
Address :	234, II Main, Isro Layout, Vikram Nagar, Banglore – 560 078, Karnataka.
Date of Birth/Age :	23.12.1956
Date of Appointment :	29.03.2001
Name :	Mr. J Suresh
Designation :	Executive Director & CEO
Address :	S 02, ‘Magnolia’, Defence Colony, 5^th Main Indiranagar, Banglore – 560 038, Karnataka.
Date of Birth/Age :	06.01.1957
Date of Appointment :	06.06.2002
Name :	Mr. Anil Ahuja
Designation :	Director
Address :	J.P.M.P.Advisors Pte.Ltd., 501, Orchard Road, No.19-03 WHeelock Place Singapore – 23880
Date of Birth/Age :	01.12.1962
Date of Appointment :	29.11.2002
Name :	Mr. Jalaj Ashwin Dani
Designation :	Director
Address :	48, Home Villa, Krishna Sanghi Path, Gam Devi, Mumbai – 400 007, Maharashtra
Date of Birth/Age :	20.10.1969
Date of Appointment :	03.09.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Maiya P Sadananda	1815000
Mr. Sunanda S. Maiya P.	400010
Mr. Padmanabha Maiya P.	70010
Mr.Srinivasa Maiya P.	50010
Mr. Jayaram G.	12510
Mr. Sadanand Maiya P.	60000
Mr. Shanthala Maiya P.	50000
Mr. Sudarshan Maiya P.	200000
Mr. Upendra Nayak K.	50000
Mrs. Rama Prasad M.	10000
Mrs. Bhargavi	10000
Mrs. Vimla Maiya P.	11000
Mr. Reddy Vinay D.	50000
Mr. Reddy Sandeep D.	50000
Mr. Betageri V.M. (Huf)	17500
Mr. Umesh M. Betageri (Huf)	17500
Mr. Rajashekar M. Betageri (Huf)	17500
Mr. Nityananda Hande K.	10000
Mrs. Rinny Eapen	30000
Mrs. Sumangali Suresh	10000
Mr. Narasimha Prasad N. V.	10000
Mr. Ramachandra G.	10000
M/s. Sunil Agro Food Limited	100000
M/s Srivari Packing India (P)	100000
Mr. Suresh K.	10000
Mr. Vinay D Reddy	17400
Mr. Sandeep D Reddy	20400
Mr. Vijaya Prakash Rao K.	11500
Mr. Rao C.K.S.	20000
Mrs. Yashoda S. Salian	20000
Mr. Srinivas Murthy M.	25000
Mr. Thyagaraju B.K.	10000
Mr. Bakula B. Mehta	70000
Mr. Bipin M. Shah	70000
Mr. Ramachandra Gupta G.S.	32000
Mr. Ratnakala Mady S.	10000
Mr. Raghavendra Mady S.T.	10000
Mr. Nagaraja Ballal	15000
Mr. Sharath Reddy	20000
Mr. Mukesh P Patel	25000
Mr. Mukesh P Patel (Huf)	25000
Mr. Ravindra Harindra Bharadwaj	10000
Mrs. Sujatha Ravindra	10000
Mrs. Charisma Bhardwaj	10000
Mr. Harindra Dattatreya Bharadwaj	10000
Mr. Uday B.G.	50000
Mr. Suryanarayanan A.	15000
M/s Srivari Graphics (P) Limited	50000
M/s Srivari Lamination (P) Limited	150000
Mrs. Padmini A. N.	100000
Mr. Sadananda Maiya P.	1301000
Mr. Aashish B. Mehta	20000
Mr. Bharat M. Mehta	20000
Mr. Nayna B. Mehta	10000
Mr. Kamal Parekh	165250
Mr. Rahul Kayan	330500
Mr. Hemendra M. Kothari	125000
M/s Magnus Capital Corporation Limited	1322000
M/s Indocean Packaged Foods Limited	2520767
Mr. Reddy Vinay D.	10000
Mr. Reddy Sandeep D.	10000
Mrs. Uma Venkat	10000
Mr. Ravi Sexena	23000
Mr. Ravi Sexena	46000
M/s Geetanjali Trading And Institutions Limited	187000
M/s Geetanjali Trading And Institutions Limited	83000
Mr. Bharat Kewalramani	40000
J.P.M.G.Packaged Foods Limited	679233

Equity Share breakup (percentage of total equity)

Names of Shareholders	No. of Shares	Percentage of Holding
Foreign Holding ( Foreign Institutional investor(s), Foreign Companies(s), Foreign Financial Institution(s), Non Resident Indian(s) Or Overseas Corporate Bodies Or Others.	--	40.44
Bodies Corporate (Not Mentioned Above)	--	06.04
Directors Or relatives Of Directors	--	35.80
Other Top Fifty (50) Shareholders (Other Than Listed Above)	--	15.98
Others	--	01.74

BUSINESS DETAILS

Line of Business :	Company is engaged in Instant Food Mixes and Ready to Eat Items, Spices and Masala, Vermicell and Macaroni
Export to	New York, Wembly, Muscat, Malaysia, Singapore, Tokyo

GENERAL INFORMATION

No. of Employees :	About 150
Bankers :	v Karnataka Bank Limited v State Bank of India
Banking Relations :	Satisfactory
Auditors :	M/s. Deloitte Haskins & Sells Chartered Accountant
Address:	Anchorage II 100/2, Rochmond Road, Bangalore – 560 025, Karnataka

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1,50,00,000	Equity Shares	Rs. 10/- Each	Rs. 150.000 Millions
	Total		Rs. 150.000 Millions

Issued, Subscribed, Paid-up Capital :

No. of Shares	Type	Value	Amount
1,11,83,000	Equity Shares	Rs. 10/- Each	Rs. 111.830 Millions
	Total		Rs. 111.830 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		111.830	107.000	107.000
2] Share Application Money		0.000	4.026	0.000
3] Reserves & Surplus		195.499	195.499	92.700
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		307.329	306.525	199.700
LOAN FUNDS
1] Secured Loans		347.301	387.737	277.900
2] Unsecured Loans		0.000	0.000	0.500
TOTAL BORROWING		347.301	387.737	278.400
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		654.630	694.262	478.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		535.588	524.775	523.800
Capital work-in-progress		0.000	28.122	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	121.123	132.445	166.800
	Sundry Debtors	64.376	46.000	49.600
	Cash & Bank Balances	26.882	9.761	8.000
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	73.200	59.571	73.000
Total Current Assets		285.581	247.777	297.400
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	202.722	205.673	330.800
	Provisions	30.827	12.474	12.300
Total Current Liabilities		233.549	218.147	343.100
Net Current Assets		52.032	29.630	(45.700)
MISCELLANEOUS EXPENSES		67.010	111.735	0.000
TOTAL		654.630	694.262	478.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		N.A.	1330.800	1219.000
Other Income
Total Income		N.A.	1330.800	1219.000
Profit/(Loss) Before Tax		N.A.	(8.900)	(99.700)
Provision for Taxation		N.A.	0.000	0.000
Profit/(Loss) After Tax		N.A.	(8.900)	(99.700)
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses
	Administrative Expenses
	Raw Material Consumed
	Purchases made for re-sale
	Consumption of stores and spares parts
	Increase/(Decrease) in Finished Goods
	Salaries, Wages, Bonus, etc.	N.A.	1279.000	1184.800
	Managerial Remuneration
	Payment to Auditors
	Interest
	Insurance Expenses
	Power & Fuel
	Depreciation & Amortization
	Other Expenditure
Total Expenditure		N.A.	1279.000	1184.800

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	0.00	(0.66)	(8.17)
Net Profit Margin (PBT/Sales)	(%)	0.00	(0.66)	(8.17)
Return on Total Assets (PBT/Total Assets}	(%)	0.00	(1.11)	(12.14)
Return on Investment (ROI) (PBT/Networth)		0.00	(0.04)	(0.49)
Debt Equity Ratio (Total Liability/Networth)		1.88	1.97	3.11
Current Ratio (Current Asset/Current Liability)		1.22	1.13	0.86

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Name of the company
Presented By	Mr. P. Sadananda Maiya Chairman & Managing Director
1) Date and description of instrument creating the change	Unattested deed of Hypothecation dated 9^th Feb. 2004 executed by MTR Foods Limited (Therein and hereinafter referred to as “The Borrower”) in Favour of Export-Import Bank Of India (“Exim Bank”), a certified true copy whereof is attached hereto.
2) Amount secured by the charge/amount owing on the securities of charge	Loan of Rs. 5 Crores (Five Crores Only) (Including any converted Rupee amount(s) consequent upon default, in the case of foreign currency loan) together with interest, compound interest, additional interest by way of liquidated damages (in case of default), Costs (Legal costs on a full indemnity basis), charges, expenses and all others monies payable by the Borrower to Exim Bank Under the Loan Agreement dated 9^th feb.2004 made between the borrower and Exim Bank.
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 Borrower’s movable assets, both present and future, brifly described in Schedule III to the Deed of Hypothecation, including it’s moveable plant and machinery, and current assets, both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	The charge created by the aforesaid Deed of Hypothecation shall operate as a continuing security by way of a second charge over the Borrower’s Moveable fixed assets and paripassu first charge over the Borrower’s current assets for the due repayment by the Borrower to Exim Bank of the Loan of Rs. 5 Crores (Five Crores Only) (Including any converted Rupee amount(s) consequent upon default, in the case of foreign currency loan) together with payment of interest, compound interest, additional interest by way of liquidated damages (in case of default), Costs (Legal costs on a full indemnity basis), charges, expenses and all others monies payable by the Borrower to Exim Bank in terms of the said loan Agreement. The said charge shall rank in the order of propriety set out in schedule IV to the Deed of Hypothecation.
5) Name and Address and description of the person entitled to the charge.	Export-Import Bank of India Centre One Building, Floor 21 World Trade Centre Complex Mumbai – 400 005
6) Date and brief description of instrument modifying the charge	Letter of modification dated 11^th august 2004 executed by the Borrower in favour of Exim Bank and Duly accepted by the Borrower (a Certified true copy enclosed).
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.	By reason of roll-over of the loan granted to the Borrower under the said Letter of Modification, each disbursement under the said loan is repayable by the company to Exim Bank at the Expiry of Six Month from the date of relative disbursement or on such other date(s) as Exim Bank may in its sole discretion agree to extend at the request of the borrower, on such terms and conditions as it may deem fit to stipulate. Interest Shall Be payable by the Borrower at the rate of 5.75%p.a. payable quarterly unless otherwise agreed by Exim Bank. The security of the charge by way of hypothecation created under the said deed of hypothecation created on February 9, 2004 in favour of exim bank shall continue to secure the said loan (including any converted Rupee amount consequent upon default) until it is paid off in full with interest @5.75% p.a. payable quarterly. Save as so modified, all the terms, Condition, covenants and indemnities and other Provisions contained in the deed of hypothecation shall continue to apply to the Said Loan and remain in full force and effect during the roll-over period and until the loan (including any converted rupee amount consequent upon default) togethers with interest and all other monies payable by the Borrower in respect thereof shall have been paid off to Exim Bank in full.

Corporate identity number (CIN) Foreign company registration number	U15136KA1996PLC021007
Name of the Company	MTR FOODS LIMITED
Address	No. 4, 17^th Cross, K.R. Road, BSK II Stages, Bangalore, Karnataka – 560 070.
This form is for	Modification of Charge
Type of Charge	Hypothecation Equitable mortgage or mortgage of property by depositing the title deeds
Particulars of the charge holder	The Karnataka Bank Limited; Minerva Circle Branch; Bangalore; Karnataka -560 004. E-Mail:- krishnamurthyhn@gmail.com
Amount secured by the charge	Rs. 204,200,000.00.
Brief of the principal terms and conditions	Interest @ 14% P.A. Repayment: for OD, WCDL, UBD, BPC, SL, FDBP/FUDBP, ILC, BG on Demand, for TL 12 Quarterly instalments of Rs.16.00 Lakhs Each (OD-Rs.340 Lakhs, WCDL-Rs.660 Lakhs, UBD/SB-Rs.100 Lakhs, BPC- Rs.100 Lakhs, SL-Rs.150 Lakhs, FDBP/FUDBP{LC/NONLC-LC-DA/DP}–Rs.250 Lakhs, ILC- Rs.100 Lakhs, BG- Rs.150 Lakhs and TL-Rs. 192 Lakhs.)
Description of the property charged indicating	Hypothecation of all present and future plant and Machinery, Raw Materials, Semi and finished goods, Book Debts and Equitable mortgage of industrial plot no 80 Buildings in SY No.270, Bommasandra industrial Area Attibele Hobli Ankal Taluk Bangalore, for Various limits given
Charge identification	80005785
Brif description of the instrument modifying the charge under section 135	Letter from Bank
Date of Instrument	08.07.2006
Particular of the present modification	Limit reduced from Rs.365415889.00 To Rs. 346215889.00 (term loans of Rs. 192 Lakhs repaid all others terms condition and securities continue.

 QUALITY AND PRODUCT DEVELOPMENT :  The Company continues to strengthen its Quality control initiatives and isworking towards obtaining the coveted British Retailers' Consortium Qualitycertifications which together with the existing ISO-9002 and HACCPcertifications will enable the Company to achieve accelerated growth inexport markets.

New products continue to be researched and developed such as Rice Meals,Ready to eat Parathas etc., which have immense business potential in bothdomestic and export markets. These products are also being developed in amanner which provides reasonable technological barriers and are also beingpriced attractively to ensure quick realization of business potentialespecially in institutional and catering segments. 

 INFORMATION TECHNOLOGY : The Company has embarked on an ambitious Information Technology initiativeto network the entire supply chain from sales forecasting to financialreporting by taking up implementation of the world famous SAP packagethroughout the Company. This ERP package will integrate all buying,manufacturing, sales and distribution and financial accounting functionsthrough a sophisticated connectivity infrastructure and will link up theBommasandra factory with the Corporate office and all branch offices/CFAs.This is expected to enable seamless integration of sales, manufacturing anddistribution planning and at the same time enable the Company to focus onweeding out inefficient costs and processes to improve profitability.

As per Website Details:

About Us

MTR Foods Limited is amongst the top five processed food manufacturers in India. They manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE and Oman.

Starting with the legendary MTR restaurant in Bangalore, India’s silicon valley, they now offer ''complete meal solutions'. Their wide range of products include ready-to-eat curries and rice, ready-to-cook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and a variety of accompaniments like pickles and papads.

Their deep understanding of culinary expectations and needs has resulted in many new and innovative products. Their investments in infrastructure and technology ensure that they can scale rapidly and bring these to market. Today, consumers across the globe count on us to bring them all-natural, wholesome and delicious food that is also convenient and no-fuss.

They have also expanded their retail presence significantly: contemporary 'Namma MTR' and MTR kiosks now serve delighted consumers across Bangalore and Chennai.

Their Heritage:

At MTR, they are proud of their rich heritage. Their tradition of food and hospitality began in 1924 with the establishment of the Mavalli Tiffin Room by the Maiyya family in Bangalore, India. This restaurant is a city landmark today and people still stand in queue to savour its unique, completely authentic dishes. Over the years, they have played proud host to many distinguished personalities who dropped by for the excellent coffee and the stimulating conversation.

Culinary secrets have been protected and handed down over the generations and their food is based on truly authentic recipes from their region of origin. Their journey to India’s premier, processed food company has been marked by innovation and the adoption of new technology. However, every MTR product will always embody their tradition of unmatched taste, purity and quality.

Quality Policy:

They are ISO 9002 and HACCP certified

At MTR, quality is a way of life. Hazard Analysis and Critical Control Point or HACCP, developed by the Codex Alimentarius Commission, is a global food safety standard. They have successfully met the stringent requirements for this certification.

Their facilities are equipped with the latest systems. They adhere to international standards across all operations: from sourcing the finest ingredients to processing and packing using cutting-edge technology. Each MTR product carries this assurance of quality and meets the high expectations their consumers have from us.

The MTR Difference

What makes MTR a trusted, household name?


Their products are 100% natural have no preservatives and use only the finest, most authentic ingredients.


Be it an Instant mix or a Ready to Eat dish, pickles or soups, all MTR products are known for their mouthwatering, "home-cooked" taste.

They adhere to the most stringent quality standards, from sourcing ingredients to processing and packing. They are ISO 9002 and HACCP certified.

They use the latest technology to preserve the quality and freshness of their food. Their use of technology from the Defense Food Research Laboratory for their Ready to Eat products has won us the President's award.

All MTR products are 100% vegetarian.

Namma MTR

Namma MTR is a unique retail chain that allows their customers to experience the wide MTR range.

Namma MTR is split into three sections. One section showcases their entire range of products. The second section is a novel concept kitchen where customers can interact with specialist chefs to learn about MTR products and watch live demonstrations. This concept kitchen also works as an ideal platform for feedback, allowing us to understand and address consumer needs. The third section offers a variety of fast-food — you can either eat here or get a quick take-away from the express counter.

True to MTR tradition, the food is pure, delicious and convenient. The menu offers anytime snacks, hearty meal combinations and ice-creams at truly, value-for-money prices. The smart, contemporary ambiance and excellent service make for a completely international experience. Namma MTR's are now open at Bangalore and Dubai.

Food Services

Set up a food court with minimum investment or expand the range of the existing one! Their amazing range of convenience products allows you to do both quickly and easily. Their range of Frozen Foods and Ready to Eat dishes are made with cutting-edge technology from the Defence Research Laboratory, Mysore. This ensures that their products are of the highest quality. All you need to set up a food court is a microwave oven, fryer and a freezer.

Institutional Sales

MTR is a one-stop, efficient and reliable supplier to reputed hotels, restaurants, institutions and caterers. The wide range of products they supply include spices, masalas, instant mixes, vermicelli and accompaniments. Each of these products comes with the MTR assurance of purity and quality. Convenient delivery formats like instant mixes allow you to whip up a wide range of dishes in short amounts of time, regardless of how vast the scale of operation is.

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 :

Their 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.

Their 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.41.99
UK Pound	1	Rs.84.22
Euro	1	Rs. 57.22

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		38

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

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