MIRA INFORM REPORT

Report Date :

29.01.2007

IDENTIFICATION DETAILS

Name :	SPECK SYSTEMS PRIVATE LIMITED
Registered Office :	B-49, Electronic Complex, Kushaiguda, Hyderabad – 500762, Andhra Pradesh, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	10.01.1985
Com. Reg. No.:	01-5246
CIN No.: [Company Identification No.]	U29309AP1985PLC005246
TAN No.: [Tax Deduction & Collection Account No.]	HYDS00667C
Legal Form :	Private Limited Liability Company.
Line of Business :	Subject is engaged in the business of manufacture, develop, deal, purchase, sell, export and import and maintain all electronic systems computers, equipments, instruments, components and other electronic and electrical equipment which will be forming part of any electrical, mechanical, optical, chemical and industrial equipments/ systems.

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 :	USD1250000
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 reported 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 :	B-49, Electronics Complex, Kushaiguda, Hyderabad – 500062, India
Tel. No.:	91-40-27125305/6/27121819
Fax No.:	91-40-27122489
E-Mail :	support@specksystems.com
Website :	http://www.specksystems.com
Division /Group Office :	15, Basappa Road, Shantinagar, Bangalore – 560027, India
Tel. No.:	91-80-2233596
Fax No.:	91-80-2235962
E-Mail :	speck.blr@specksystems.com
Website :	http://www.specksystems.com
Division /Group Office :	5E, 1^st Floor, Jhandewalla Extension, New Delhi – 110055, India
Tel. No.:	91-11-41756533/4 / 91-11-23538047/8
Fax No.:	91-11-23538046
E-Mail :	speck.delhi@specksystems.com
Website :	http://www.specksystems.com

DIRECTORS

Name :	Mr K C M Kumar
Designation :	Managing Director
Address :	B-122, Afochs, Sainikpuri, Ranga Reddy, Secunderbad – 500094, Andhra Pradesh, India
Date of Birth/Age :	10.07.1953
Date of Appointment :	10.01.1985
Name :	Mr Chandrasekhar Nori
Designation :	Whole Time Director
Address :	B-158A, Afochs, Sainikpuri, Ranga Reddy, Secunderbad – 500094, Andhra Pradesh, India
Date of Birth/Age :	16.02.1953
Date of Appointment :	10.01.1985
Name :	Mr V S Rao
Designation :	Whole Time Director
Address :	301 Sashank Residency, tarnaka, Ranga Reddy, Hyderabad - 500007, Andhra Pradesh, India
Date of Birth/Age :	13.09.1947
Date of Appointment :	10.01.1985
Name :	Mr A K T Janak
Designation :	Director
Address :	Plot No 89, Road No 2, Balamrai Mahendra, Ranga Reddy, Secunderbad – 500026, Andhra Pradesh, India
Date of Birth/Age :	31.10.1949
Date of Appointment :	20.02.2001
Name :	Mr Dinesh Sharma
Designation :	Nominee Director (IFCI VCF)
Address :	House No 425, sector 37, Noida – 201303, Uttar Pradesh, India
Date of Birth/Age :	18.10.1954
Date of Appointment :	02.09.2002
Name :	Mr P K Narendra
Designation :	Director
Address :	15, Basappa Road, Shanti Nagar, Bangalore – 560027, Karnataka, India
Date of Birth/Age :	12.11.1958
Date of Appointment :	26.02.2005

KEY EXECUTIVES

Name :	Mr K C M Kumar
Designation :	Management Committee Member
Name :	Mr A K T Janak
Designation :	Management Committee Member / Audit Committee Member
Name :	Mr V S Rao
Designation :	Management Committee Member / Audit Committee Member
Name :	Mr K S Chandrasekhar
Designation :	Management Committee Member
Name :	Mr Dinesh Sharma
Designation :	Audit Committee Menber
Name :	Mr L R A Narayan
Designation :	Senior Consultant (Former Director-Applications, NRSA, department of Space)
Name :	Mr K S Chandrasekhar
Designation :	Senior Advisor
Name :	Mr N S Sastry
Designation :	Project Consultant Geometric Services Division
Name :	Mr A K Venkateswaran
Designation :	Senior Advisor – Corporate Relations

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Mr Chandrasekhar Nori	859880	10.72
Mr K C M Kumar - HUF	250516	3.12
Mr V S Rao	107436	1.33
Ms N Janaki	754656	9.41
Mr K Arun Kumar	584346	7.28
Mr K C M Kumar	874496	10.90
Ms N Savithri	223748	2.78
Ms K Prabhavathi	223748	2.78
Mr N Shrikanth	394714	4.92
Mr K V Krishna Prassad	156842	1.95
Mr K hotunandan	458056	5.71
Ms D Anasuya	1000	0.01
Ms D Sobha	38730	0.48
Ms K Srilakshmi	27860	0.34
Mr K Vijay	20910	0.26
Mr K Rajesh	20910	0.26
Mr K Jaysan	19600	0.24
Industrial Development Bank of India	163800	2.04
Mr N Chandrasekhar – HUF	33572	0.41
Mr N Hantha	237052	2.95
Mr N Sailaja	237010	2.94
Mr K Bhavna	331648	4.13
IFCI Vonturo Capital Fund Limited	709800	8.85
Mr M Vasant Vaith	29610	0.36
Ms G Malika	30800	0.38
Mr K Padmaja	8400	0.10
Mr P S Gouri Shankar Jointly Ms P Sasikalla	2800	0.03
Mr P Sasikala Jointly Mr P S Gouri Shankar	5600	0.06
Mr P K Narendra	8400	0.10
Ms G Vijalakshmi Jointly Mr k Aruna Kumar	8400	0.10
Mr N S Sastry	14000	0.17
Mr M Padhasaradhy	14000	0.17
Mr S R Sastry	5600	0.06
Mr Uday S Nori	16800	0.20
Mr Krishna Prasad V Kamsotty – NRI	31920	0.39
Mr Ravikanth Mallad – NRI	5600	0.06
Mr Ranapratap S Chog – NRI	6300	0.07
Ms M Lakshmi	5600	0.06
Mr P Sri Gouri	2800	0.03
Mr V Srisha	2800	0.03
Mr D Satyanarayana	5600	0.06
Mr P Sosha Sa	5600	0.06
Mr D Krishna Prasad	5600	0.06
Mr K V R Pardhasaradhi	1000	0.01
Employees Stock Option Trust	500000	6.23
Mr A K T Janak	100000	1.24
Mr J Jayasroo	50000	0.62
Mr Anand Krishna Janak	50000	0.62
Mr A Hari Prasad	372400	4.64
Total	8019960	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacture, develop, deal, purchase, sell, export and import and maintain all electronic systems computers, equipments, instruments, components and other electronic and electrical equipment which will be forming part of any electrical, mechanical, optical, chemical and industrial equipments/ systems.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Digital Film recorder (Photowrite Systems)	Systems	31.03.2005 – 25 31.03.2004 – 25	NA
Mobile Photowrite Systems	Systems	NA	31.03.2005 – 18 31.03.2004 - 12

GENERAL INFORMATION

Bankers :

ICICI Bank Limited, Hyderabad UCO Bank, Secunderabad Development Credit Bank Limited, Secunderbad EXIM Bank, Hyderabad State Bank of India, IFB

Banking Relations :	Satisfactory
Auditors :	Neeth and Company Chartered Accountants
Address :	5-9-29/40, Basheerbaugh Palace Colony, 14,Gopal Bhavan, Hyderabad – 500060,Andhra Pradesh, India
Tel No.:	91-23228833 / 23228310
Fax No.:	91-5562831
E-Mail :	neeth_co2003@yahoo.com
Subsidiaries :	Speck SpatialTech Limited

CAPITAL STRUCTURE

As on 31.03.2005

Authorised Capital :

No. of Shares	Type	Value	Amount
120,00,000	Equity Shares	Rs 10/- each	Rs 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80,19,960	Equity Shares	Rs 10/- each	Rs 80.199 Millions

As on 29.09.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
220,00,000	Equity Shares	Rs 10/- each	Rs 220.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,60,39,920	Equity Shares	Rs 10/- each	Rs160.399 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital	80.199	80.199
2] Share Application Money	0.000	0.000
3] Reserves & Surplus	245.464	121.026
4] (Accumulated Losses)	0.000	0.000
NETWORTH	325.663	201.225
LOAN FUNDS
1] Secured Loans	149.126	47.873
2] Unsecured Loans	0.000	9.675
TOTAL BORROWING	149.126	57.548
DEFERRED TAX LIABILITIES	0.000	0.000
TOTAL	474.789	258.773
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	125.757	92.453
Capital work-in-progress	0.000	0.000
INVESTMENT	10.301	4.140
DEFERREX TAX ASSETS	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	15.512	21.632
Sundry Debtors	444.667	204.849
Cash & Bank Balances	23.867	29.365
Other Current Assets	73.761	46.479
Loans & Advances	24.009	22.583
Total Current Assets	581.816	324.908
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities	157.402	125.216
Provisions	85.682	37.512
Total Current Liabilities	243.084	162.728
Net Current Assets	338.732	162.180
MISCELLANEOUS EXPENSES	0.000	0.000
TOTAL	474.790	258.773

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	682.719	466.743
Profit/(Loss) Before Tax	193.932	85.781
Provision for Taxation	48.170	16.000
Profit/(Loss) After Tax	145.762	69.781
Export Value	1.255	11.371
Import Value	64.994	40.791
Total Expenditure	488.786	380.961

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004
PAT / Total Income	21.35	14.95
Net Profit Margin(PBT/Sales)	28.40	18.37
Return on Total Assets(PBT/Total Assets}	27.40	20.55
Return on Investment (ROI)(PBT/Networth)	0.59	0.42
Debt Equity Ratio(Total Liability/Networth)	1.20	1.09
Current Ratio(Current Asset/Current Liability)	2.43	1.99

LOCAL AGENCY FURTHER INFORMATION

Profile

Speck defines its business domain as receiving, distributing, analyzing, interpreting, and using spatial information to provide situational awareness and decision support solutions, integrating a wide range of spatial information sources and sensors. The sources of spatial data and information include data and imagery from satellites, aerial & unmanned vehicles and ground based sensors.

Over the last two decades, Speck has acquired competencies in the field of electronics, optics, systems integration, communications, remote sensing, image processing, and geospatial information services. Based on these competencies, Speck has continuously innovated and today offers solutions to the armed forces, paramilitary forces and civilian users, which broadly fall under:

• Optoelectronic systems
• Communication Systems
• Software applications and Solutions
• Multi-Mission UAVs
• Integrated Mobile Shelters
• Geospatial Services and Solutions

With strong technology roots, absorption of technology from pre-eminent institutions and partnerships with leading companies is a constant Mantra. Speck looks to continuously broadbase its customers and increase the product and service range to its valued customers.

Speck's strength lies in its 400 strong experienced and skilled engineers and domain experts. Its six branches across the country ensure 24/7 customer support and service.

Speck has a strong presence in geospatial services and was among the first Indian company to export mapping and GIS services out of India. Speck formed a subsidiary in the year 2003-Speck SpatialTech Limited, to exclusively focus on domestic and international markets especially in non-defence

Board of Directors

KCM Kumar, Managing Director

Kumar is an electronics and communication engineer, whose technology roots were honed by a seven year stint in R&D at ECIL. Since inception Kumar has focused on consolidating the gains of technology with strategic direction, professional management and sound commercial practices. He takes special interest in the marketing and customer service activities of the company.

The current growth and diversification drive are a result largely of his vision for the company.

Chandrasekhar Nori, Director

Chandrasekhar Nori is an electronics engineer with over eighteen years experience in imaging, GIS, mapping and survey. Speck's current status as market leader in geospatial services and solutions and its growth are largely a product of his vision. His in-depth technical knowledge and understanding   of   the   market  needs  has made him a much sought after speaker at conferences and international seminars. Nori is a member of several Indian and International professional associations like MAPPS, GITA, URISA, ASPRS, PMA, DIMA, Indian Society for Remote Sensing, Indian Cartographic Association, Indian Geomatics Society and IRC.

V S Rao, Director

V S Rao has been in the industrial technology domain for over 30 years, in established as well as start ups. With a science degree, V S Rao is also involved in rapid scaling up of facilities and infrastructure to capitalize on opportunities. Mr. Rao has been instrumental in overseeing and shaping the General Administrative    functions   of   Speck,   with special emphasis and contributions in establishing sound practices and cost control.

A K T Janak, Independent Director

AKT Janak is an Independent Director on board and on the management and audit committees, providing directions on corporate governance and management imperatives. His management acumen and rich experience in the corporate world, having occupied senior management positions with leading financial organizations coupled    with    handling    of    multi-group company assignments, add to the professional management bandwidth and provide the strategic edge to Speck.

Mr P K Narendra, Independent Director

"Narendra is on the board of Speck as an independent director. A Chartered Accountant by profession, with a bachelor's degree in law and a Diploma in Systems Audit from the Institute of Chartered Accountants of India. Narendra serves as corporate business consultant to several reputed organizations in India and outside. He brings in rich professional experience, expertise and insight in financial management & accounting, systems, processes, international business relationships and corporate management practices.

A much sought after trainer in the areas of commercial practices, systems and process-design and implementation. Narendra is a member of various professional bodies and a trustee on the board of many philanthropic organizations. He also served as President of the Bangalore Chapter of Institute of Internal Auditors Inc., Florida, for two terms. He is at present the Vice President of the Institute of Internal Auditors-India.

Mr Rajeev Mukhija, Nominee Director

"Mr. Rajeev Mukhija is on the board of Speck as a nominee director of IFCI Venture Capital Funds Limited(IFCI), an organization which provides institutional support to professionals and technocrats in setting up their own ventures in the medium scale sector, under various schemes. Mr. Rajeev Mukhija, presently Deputy General Manager at IFCI Venture Capital Funds Ltd.(IVCF), is a

Chartered Accountant (CA), Company Secretary (CS) and a law graduate.

He has 14 years of professional experience with over 11 years in investments, due diligence, post investment monitoring of companies, investment exit/settlement, etc. He is also director on the Board of other six assisted companies of IVCF engaged in diversified sectors.

FAPCCI Award

Federation of Andhra Pradesh Chambers of Commerce and Industry(FAPCCI) is an association of the industry of the most happening state in India-Andhra Pradesh,  which is a platform for sharing and monitoring industry performance. To identify organizational     contributions     and excellence, FAPCCI has instituted various awards to recognize the initiatives across the industry.

In recognition of its indigenization efforts, the FAPCCI (Federation of Andhra Pradesh Chambers of Commerce and Industry) awarded Speck the best product innovation and development award in 2001-02 for the Mobile Large Format Digital Photowrite System.

CII Award

The Confederation of Indian Industry(CII) is the forum bridging the Indian industry and the government. The CII initiates, participates, monitors, and recommends policy initiatives aimed at economic and industrial growth of the country. Organised across the country,   the   CII   recognizes    and awards entreprenual, technological, managerial awards for innovation and excellence.

Recognising the initiative for indigenous technology and development of the Mobile Large Format Photowrite System, Speck received the CII Innovation Excellence award for the year 2003.

The Mobile Large Format Photowrite System-fotorite-1044C- improved over the earlier static versions has unique features of being available on a mobile platform, housed in a EMI shielded self containing shelter, equipped with power, air conditioners etc., among other facilities, ruggedised and meeting MIL specifications, thereby enabling its operation in remote and rugged terrain.

PROFILE

Speck Systems is promoted by experienced Engineering professionals with a view to design and manufacture electronic instruements and equipment foe the scientific and industrial segments. The company is presently engaged in the business of manufacture and sale of computer based systems and providing production job services in the area of geomatics, encompasssing, remote sensing, survey and mapping, digital photogrammetry, digital cartography, GIS etc.

Speck systems was initially financed towards acquisition of capital assets by A.P. State Financial Corporation. The company has full fledged manufacturing facility and fully owned premises in the Electronic complex, Kuushaiguda, Hyderabad.

All the company'sproducts like display devices, digital film recorders and image scanners are import substitute items and some of them received awards of excellence including first price for digital film recorder from National Research Development Council under innovative inventions. This product is manufactured by Speck Systems Pvt. Ltd. under technical know-how from National Remote Sensing Agency, Dept. of Space, Govt. of India.

PRODUCTS

· Image Analysers

· Mini Computer/Microprocessor based systems

· Large Format Photowrite based systems

· Display Electronics system

AREA OF SPECIALISATION

1. Testing and manufacture of precision, electronic and opto electronic instruments catering to areas of remote sensing, survey & mapping and commercial graphics.

2. Provide total solutions in equipment supplied to clients in above segments including hardware, software, peripherals and customization.

TECHNICAL EXPERTISE

ON MACHINE:	PC ATs, Sun SPARC, Silicon graphics- IRIS IN INDIGO and other Workstations..
OF OPERATING SYSTEMS:	MS-DOS, MS Windows.
OF LANGUAGE:	C++, C, FORTRAN, Commercial DDMS packages, DBASE, Oracle and INGRES.

Performance

The company has registered a robust growth in revenue of Rs 667.207 Millions during the financial year 2004-05 as against RS 445.111 Millions the previous year, showing a sustained growth of 49.90%. the operating and the net profit of the company before tax at Rs 238.420 Millions and Rs 145.762 Millions respectively, have significantly grown at 83.00% and 108.88%.

Repeat orders for the company’s flagship product, newer verticals and segments have contributed to this growth.

The company’s diversification initiatives and investments have met with initial success, generating new business opportunities and growth plans, which would yield revenues in the coming years. The shelter group, with a fully equipped in-house panel making facility is geared to meet captive consumption and new segmental requirements. It is poised to grow steadily during the current financial year.

The research and development efforts in indigenisation of components and for identified niche segment applications have been successful. The prototypes developed and demonstrated have met stringent requirement specifications. These indigenous components are now part of the products.

Corporate Overview

In order to provide a seamless integration of the competencies, capabilities, infrastructure, focused approach and enable growth of the geo informatics business and operations, it was decided that the Geomatics Services Divison (GSD) of the company be hived off to its fully owned subsidiary Speck SpatialTech Limited. The process of de-merger, amalgamation and transfer is in the process of completion.

Operations

During the year under review, the company has consolidated its operations and is geared up to meet higher volumes. The partially executed order for the supply of Large Format Digital Photowrite System on mobile platform, received last year, was completed. A major repeat order of the product has been received from the Government of India. This order was partially executed and delivered during the year under review.

The fully equipped shelter, group has serviced the captive requirements. It has also received orders for supplies, which address newer segments, and are in the process of executions. The in-house facility commissioned during the year under review would bring down the operational and logistic costs involved, open business opportunities and contribute to the revenues.

The research and development efforts borne fruits with the indigenous design and manufacturing of a Prototype of Zoom Stereoscope an image extractions and target identification electro-optic equipments, in collaboration with a major PSU. The commercial production is expected to commence during the second half of the current year.

Several modules of applications developed by the Research and Development group for managing spatical data, logistics management and for enabling situation awareness are in an advanced stage of completion. Efforts are underway to release the products during the current year.

Subsidiaries

The subsidiary company Speck SpatialTech Limited (SST), ha been strnghened with the integration of the erstwhile GSD of the holding company. The subsidiary has betterd its performance over the previous year. Receipt of repeat orders existing clients has provided an impetus to its growth. SST would consolidate on the emerging opportunities, both in the domestic and overseas markets, during the current year.

Speck System Europe Gmbh(Speck Gmbh) continues to operate in the international markets and provides the required support for the company’s operations.

Quality and information security management initiatives

The company continues to retain its accreditations under ISO 9001:2000 from Det Norske Veritas (DNV), Netherlands and certification from Director General of Quality Assurance (DGQA). The process of seeking accreditation under information security management system (ISMS) for compliance to BS7799-2:2002 is now complete and the certificate received.

Future Outlook

The year has witnessed growth initiatives aimed and directed towards business development and expansion, Research and Development, enhancing and scalling up operational capability and infrastructure, to meet anticipated business.

Newer business verticals like integrated shelter, electro-optics based image extraction and target identification equipment, domain specific application development to enable near real time situation awareness through integration of technologies and solutions are being ushered to contribute for the growth of the company’s future.

Fixed Assets

• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Electrical Installations
• Computers
• Vehicles
• Research and Development Project Equipment
• Plant and Machinery
• Computers
• Graphic Arts Project
• Mobile Photowriter Sys
• Indus 1034C- GA System
• Small Format Photowroter
• Zoom Stereo Telescope
• UAV
• Capital WIP (Buildings – HO II Floor)

Loan Funds

Exim Bank Term Loan

Exim bank term loan is ecured by a first equitable mortgage by deposit of title deeds with export import bank of India of all the company’s immovable properties, both present and future and hypothecation of all movable assets (other than current assets)of the company present and future on first charge basis together with personal guarantee pf promoters directors.

Working Capital

Facilities for working capital with ICICI Bank Limited, State Bank of India, UCO bank, Development Credit bank are secured by hypothecation of stocks of raw materials, work-in-progress, finished goods, spares and book debts and second charge on fixed assets together with personal guarantee of promoter director.

Hire Purchase Loans

Hire Purchase Loans from HDFC Bank Limited, ICICI Bank Limited and Ford Credit Kotak Mahindra Limited are secured on the assets acquired out of the respective loans and also personal guarantee of the directors.

Name of the company	SPECK SYSTEMS LIMITED
1) Date and description of instrument creating the change	Agreement of Modification of charge/ mortgage created on 12.09.2006
2) Amount secured by the charge/amount owing on the securities of charge	Rs 260.000 Millions
3) Name and Address and description of the person entitled to the charge.	Deveolpment Credit Bank Limited Secunderbad Branch, 9-1-125/3-1 Siddatrh Plaza, 44 S D Road, Secunderabad – 500003, Andhra Pradesh, India
4) Date and brief description of instrument modifying the charge	12.09.2006

Name of the company	SPECK SYSTEMS LIMITED
1) Date and description of instrument creating the change	Agreement of Hypothecation of Imovable Properties, plant and machinery, furniture and fixtures, stock in trade, book debts and vehicles created on12.09.2006
2) Amount secured by the charge/amount owing on the securities of charge	Rs 260.000 Millions
3) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest – 10.5% pa.a for term Loan – 10.5% p.a. Repayment of term loan – 2 years from the date of disbursal, repayment of cash credit – annual demand.
4) Name and Address and description of the person entitled to the charge.	Deveolpment Credit Bank Limited Secunderbad Branch, 9-1-125/3-1 Siddatrh Plaza, 44 S D Road, Secunderabad – 500003, Andhra Pradesh, India
5) Date and brief description of instrument modifying the charge	12.09.2006

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.44.24
UK Pound	1	Rs.86.71
Euro	1	Rs.57.13

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--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		54

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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