MIRA INFORM REPORT

Report Date :

19.12.2007

IDENTIFICATION DETAILS

Name :	SWAN ENVIRONMENTAL PRIVATE LIMITED
Registered Office :	401 & 402, Nagasuri Plaza, Plot No. 8, Gayatri Nagar, Behind Huda Maitrivanam, Ameerpet, Hyderabad – 500 038, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	19.05.1988
Com. Reg. No.:	01-8656
CIN No.: [Company Identification No.]	U92110AP1988PTC008656
TAN No.: [Tax Deduction & Collection Account No.]	HYDS02155G
Legal Form :	Private Limited Liability Company
Line of Business :	Authorized distributors for various foreign companies, who are engaged in manufacturing of pollution monitoring instruments, industrial hygiene, environmental health and safety instruments.

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 34000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is faring well in marketing of instruments for monitoring quality of soil, water, air and noise. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are reported as fair. General financial position is satisfactory. 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 / Factory :	401 & 402, Nagasuri Plaza, Plot No. 8, Gayatri Nagar, Behind Huda Maitrivanam, Ameerpet, Hyderabad – 500 038, Andhra Pradesh, India
Tel. No.:	91-40-23743384 / 23743385
Fax No.:	91-40-23748764
E-Mail :	swan.epl@satyam.net.in, accounts_swan@sify.com
Website :	http://www.swan_she.com
Area :	Rented -- 3400 sq. ft
Distributor Office :	Located at : Ø Mumbai Ø Gujarat Ø Chennai Ø Kolkata
Branches :	² 1/1, Vikram Vihar, Lajpat Nagar IV, New Delhi – 110 024, India Tel. No.: 91-11-25816016 Fax No.: 91-11-25730328 E-Mail: swan_del@satyam.net.in Contact Person: Mr. Preveen Kumar ² 91, Iconet Business Centre, 1^st Floor, Temple Road (Near 10^th Cross), Malleswaram, Bangalore – 560 003, Karnataka, India Tel. No.: 91-80-3318620 / 3312527 Fax No.: 91-80-3447571 E-Mail: raghuvamsi@yahoo.com Contact person: Mr. S. Raghu Vamsi Other Branches Located at Bhopal, Chandigarh and Hyderabad

DIRECTORS

Name :	Mr. Ch. Vijaya Kumar
Designation :	Managing Director
Address :	Plot No. 112 and 113, Flat No.202, Kamalapuri Colony, Hyderabad- 500873, Andhra Pradesh, India
Date of Birth :	08.02.1964
Date of Appointment :	16.08.1993
Name :	Ms. Ch. Geetha
Designation :	Director
Address :	Plot No. 112 and 113, Flat No.202, Kamalapuri Colony, Hyderabad- 500873, Andhra Pradesh, India
Date of Birth :	29.05.1969
Date of Appointment :	08.05.1996
Name :	Mrs. Ch. Yashoda
Designation :	Director
Address :	Plot No. 112 and 113, Flat No.202, ‘Sri’ Apartments Kamalapuri Colony, Hyderabad- 500873, Andhra Pradesh, India
Date of Birth :	21.11.1940
Date of Appointment :	08.05.1996
Name :	Mr. K. Jaganmohan Rao
Designation :	Director
Address :	Flat No. 513, Block V, Indira Towers, American Hospital Road, Vijaywada, Andhra Pradesh, India
Date of Birth :	09.11.1942
Date of Appointment :	08.05.1996

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. A. Narayana Rao	1470
Mr. Ch. Vijaya Kumar	8560
Ms. Ch. Geetha	12320
Ms. Ch. Yashoda	1820
Mrs. A. V. Tulasi	1470
Mrs. V. D. Gurunath	1470
Mr. Ch. Vijay Kumar (H.U.F.)	1890
Total	29000
Equity Share Break-up	Percentage of Holding
Directors or relatives of the Directors	100.00

BUSINESS DETAILS

Line of Business :

Authorized distributors for various foreign companies, who are engaged in manufacturing of pollution monitoring instruments, industrial hygiene and environmental health and safety instruments.

GENERAL INFORMATION

No. of Employees :

46 persons -- 39 persons in office and 7 others

Bankers :

State Bank of India, Balanagar Branch, Hyderabad, Andhra Pradesh, India

Facilities :

SECURED LOANS

Terms Loans	Rs. In Millions As on 31.03.2005
From Banks- State Bank of India
Cash Credit (Secured by hypothecation of stock and sundry debtors)	11.186
Total	11.186
UNSECURED LOANS
From Director’s	0.185
From Others	4.636
Total	4.821

Banking Relations :	Satisfactory
Auditors :
Name :	V. Sitaram and Company Chartered Accountants
Address :	3-5-806/2, 1^st Floor, Swamy Towers, Hyderaguda, Hyderabad-500029, Andhra Pradesh, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
125000	Equity Shares	Rs. 100/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100090	Equity Shares	Rs. 100/- each	Rs. 10.009 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		10.009	2.900	2.900
2] Share Application Money		0.000	0.100	0.00
3] Reserves & Surplus		8.458	5.577	3.332
NETWORTH		18.467	8.577	6.232
LOAN FUNDS
1] Secured Loans		10.801	0.000	11.186
2] Unsecured Loans		12.439	2.809	4.820
TOTAL BORROWING		23.240	2.809	16.006
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		41.707	11.386	22.238
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.231	3.737	2.540
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		13.132	6.533	2.632
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.978	6.517	4.700
	Sundry Debtors	27.173	16.390	26.357
	Deposit	0.000	0.000	2.606
	Cash & Bank Balances	1.237	1.571	3.277
	Other Current Assets	5.399	3.375	2.944
	Loans & Advances	0.140	0.125	2.933
Total Current Assets		41.927	27.978	42.817
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	15.757	26.862	25.751
	Provisions	1.826	0.000	0.000
Total Current Liabilities		17.583	26.862	25.751
Net Current Assets		24.344	1.116	17.066
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		41.707	11.386	22.238

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005
Sales Turnover [including other income]	71.278	62.383
Profit/(Loss) Before Tax	3.200	1.532
Provision for Taxation	0.000	0.500
Profit/(Loss) After Tax	3.200	1.032
Total Expenditure	68.078	60.852

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	NA	4.48	1.654
Net Profit Margin (PBT/Sales)	(%)	NA	4.48	0.056
Return on Total Assets (PBT/Total Assets}	(%)	NA	10.08	3.192
Return on Investment (ROI) (PBT/Networth)		NA	0.37	0.245
Debt Equity Ratio (Total Liability/Networth)		2.21	3.46	6.700
Current Ratio (Current Asset/Current Liability)		2.38	1.04	1.662

LOCAL AGENCY FURTHER INFORMATION

The company deals in:

Water Tec

Ø Total Organic Carbon Analyser

Ø On-Line TOC Analyser

Ø Multi Parameter Troll

Ø Portable Flow Meter

Health Tec

Ø Noise Pro

Agri Food Tech

Ø Air Sampler

n Microbial Air Sampler

n IAQ Microbial Air Sampler

n Indoor Air and Surface Sampler

n Hivac Petri

Ø TOC Analyser

Ø Chlorophyll Meter

Enviro Tec

Ø Lab TOC Analyser

Security Tec

Ø Gas Detector Array

Pharma Tec

Ø TOC Analysers for USP 25/ cleaning validation

Ø Portable Colorimeter & Spectrophotometer

Ø Clean Room Fogger

Ø Next Generation Impactors

Ø Bio-Aerosol Sampling Equipments

Ø Hand held Particulate Counters

Ø RH & Temperature Measurement Instruments

Ø Water Activity Analysers

Ø Combustion & Emission Gas Analysers

Ø Gas Detection System

Ø Air Purifiers

Ø Portable Tachometer

Ø Portable Manometer

Ø Portable Moisturemeter

Instrument Tec

Medi Tec

Wood Tec

Subject is in trade terms with:

· Shimadzu Corporation

International Marketing Division, 3 Kanda-Nishikicho, 1-chome, Chiyoda-Ku, Tokyo 101, Japan

Tel. No.: 0081-33219-5671

Fax No.: 0081-33219-5710

Contact Person: Mr. Okabe San

· SKC Inc. – World Headquarters

863 Valley View Road, Eighty Four, PA 15330, USA

Tel. No.: 001-724-941-9701

Fax No.: 001-724-941-1369

Contact Person: Mr. Debbie Ditriech

· Quest Technologies

1060, Corporate Centre Drive, Oconomowoc, WI 53066, USA

Tel. No.: 001-262-567-9157

Fax No.: 001-262-567-4047

Contact Person: Ms. Linda Couper

· Gastec Corporation

6431, Fukaya, Aayase-shi, Kanagawa 252-1103, Japan

Tel. No.: 0081-467-79-3910

Fax No.: 0081-467-79-3979

Contact Person: Mr. Y. Shimizu

· In-Situ Inc.

210, S. Third Street, P. O. Box 1, Laramie, Wyoming 82073-0920, USA

Tel. No.: 001-307-742-8213

Fax No.: 011-307-721-7598

Fixed Assets :

Ø Furniture and Fixtures

Ø Computers

Ø Plant and Machinery

Ø Office Equipment

Ø Fans

Ø Air Conditions

Ø Scooter

Ø Multimedia Projector

Ø Electrical Installations

Ø EPABX/Fax Machine

Ø Xerox Machine

Ø Siena Car

Profile

Subject has been derived with an aim of providing instruments for monitoring of Soil, Water, Air and Noise- main constituents of Environment.

Apart from Environmental Business of dealing with the supply of Soil, Water, Air and Noise monitoring products, to compliment its services, a special attention is taken in covering the SHE (Safety, Health and Environment) aspects to cater the needs for this line, which includes Industrial Hygiene Monitoring Instruments, Personal Protective Equipment, Safety devices, etc.

Subjects believes in providing technology for profit and solutions for customer started marketing, distributing world-class companies to deal all types of instruments. With an experience of 15 years subject has earned good reputation.

Subject have separate divisions to deal specialized application oriented product Agriculture, Food and Feed Technology and Wood Industry.

Form 8

Bakers charges Report as per Registry

Name of the company	SWAN ENVIRONMENTAL PRIVATE LIMITED
Presented By	Mr. Ch. Vijay Kumar
1) Date and description of instrument creating the change	28.08.2003 Hypothecation of Stock in trade etc.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.2.500 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	Hypothecation of Stock in trade: Pollution monitoring equipments
4) Gist of the terms and conditions and extent and operation of the charge.	On Demand
5) Name and Address and description of the person entitled to the charge.	State Bank of India Balanagar Branch, Hyderabad, Andhra Pradesh India
6) Date and brief description of instrument modifying the charge	--
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.	Hypothecation of Stocks with 40% margin for Rs.2.500 millions

Name of the company	SWAN ENVIRONMENTAL PRIVATE LIMITED
Presented By	Mr. Ch. Vijay Kumar
1) Date and description of instrument creating the change	28.08.2003 Hypothecation of Book Debts.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.1.500 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	Hypothecation of Book Debts:
4) Gist of the terms and conditions and extent and operation of the charge.	On Demand
5) Name and Address and description of the person entitled to the charge.	State Bank of India Balanagar Branch, Hyderabad, Andhra Pradesh India
6) Date and brief description of instrument modifying the charge	--
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.	Hypothecation of Book Debts with 50% margin for Rs.1.500 millions

Name of the company	SWAN ENVIRONMENTAL PRIVATE LIMITED
Presented By	Mr. Ch. Vijay Kumar
1) Date and description of instrument creating the change	28.08.2003 Hypothecation of Bills Discounted, DD’s Purchased
2) Amount secured by the charge/amount owing on the securities of charge	Rs.3.000 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	Bills Discounted/ Purchased/ DD’s:
4) Gist of the terms and conditions and extent and operation of the charge.	On Demand
5) Name and Address and description of the person entitled to the charge.	State Bank of India Balanagar Branch, Hyderabad, Andhra Pradesh India
6) Date and brief description of instrument modifying the charge	--
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.	Hypothecation of Bills Discounted with 25% margin for Rs.0.300 millions

Name of the company	SWAN ENVIRONMENTAL PRIVATE LIMITED
Presented By	Mr. Ch. Vijay Kumar
1) Date and description of instrument creating the change	28.08.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.500 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	Bank Guarantee
4) Gist of the terms and conditions and extent and operation of the charge.	On Demand
5) Name and Address and description of the person entitled to the charge.	State Bank of India Balanagar Branch, Hyderabad, Andhra Pradesh, India
6) Date and brief description of instrument modifying the charge	27.07.2004
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.	Bank Guarantee Limit Rs. 3.500 Millions enhance from Rs. 2.500 Millions

Name of the company	SWAN ENVIRONMENTAL PRIVATE LIMITED
Presented By	Mr. Ch. Vijay Kumar
1) Date and description of instrument creating the change	28.08.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.500 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	Letter of Credit
4) Gist of the terms and conditions and extent and operation of the charge.	On Demand
5) Name and Address and description of the person entitled to the charge.	State Bank of India Balanagar Branch, Hyderabad, Andhra Pradesh, India
6) Date and brief description of instrument modifying the charge	27.07.2004
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.	Letter of Credit Limits Rs. 1.500 Millions reduced from Rs. 2.500 Millions

This Form is for	Creation of charge
Charge identification number of the charge to be modified	NA
Corporate identity number of the company	U92110AP1988PTC008656
Name of the company	SWAN ENVIRONMENTAL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	401 & 402, Nagasuri Plaza, Plot No. 8, Gayatri Nagar, Behind Huda Maitrivanam, Ameerpet, Hyderabad – 500 038, Andhra Pradesh, India
Type of charge	Others
Particular of charge holder	State Bank of India Balanagar Branch, Hyderabad, Andhra Pradesh, India
Nature of description of the instrument creating or modifying the charge	Guarantee Agreement [SME – 3] Letter of Arrangement [SME – 1]
Date of instrument Creating the charge	17.10.2007
Amount secured by the charge	Rs. 22.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	[a] Rate of Interest The limits are sanctioned to M/s. Startech Labs Private Limited by State Bank of India, Balanagar Branch, Hyderabad [b] Terms of repayment The limits are sanctioned to M/s. Startech Labs Private Limited by State Bank of India, Balanagar Branch, Hyderabad, India [c] Margin The limits are sanctioned to M/s. Startech Labs Private Limited by State Bank of India, Balanagar Branch, Hyderabad, India [d] Extent and operation of the charge the Charge operates as security, interalia for the due repayment by the M/s. Startech Labs Private Limited to the State Bank of India, Balanagar Branch, Hyderabad for its limits sanctioned to the extent of Rs. 22.000 Millions together with interest, additional interest liquidated damages, commitment charges, premia on repayment or on redemption costs, charges, expenses and all other moneys payable by the M/s. Startech Labs Private Limited to State Bank of India, Balanagar Branch, Hyderabad, India
Short particulars of the property charged	Corporate Guarantee
Date of latest modification prior to the present modification	NA
Particulars of the present modification	NA

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. 39.57
UK Pound	1	Rs. 79.91
Euro	1	Rs. 56.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.	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