MIRA INFORM REPORT

Report Date :

29.01.2007

IDENTIFICATION DETAILS

Name :	SUNGRO SEEDS LIMITED
Formerly Known As :	INDIA DROSSBACH LIMITED
Registered Office :	19, Raj Mahal, 84, Veer Nariman Road, Mumbai – 400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	12.12.1973
Com. Reg. No.:	11-61969
CIN No.: [Company Identification No.]	L74999MH1991PLC061969
TAN No.: [Tax Deduction & Collection Account No.]	AHMI00092B / DELI05719A
PAN No.: [Permanent Account No.]	AAACI1337B / AAACI1337B
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Producers, Importers, Traders and Marketers of vegetable seeds like okra, bottlegourd, bittergourd, cabbage, radish, carrot, palak, beetroot, knol kohl, round gourd, longmelon, brinjal, chilli, cauliflower, egg plant, ridgegourd, spongegourd, tomato, hot pepper, etc.

RATING & COMMENTS

	MIRA’s Rating :			Ba
RATING			STATUS		PROPOSED CREDIT LINE
41-55		Ba	Overall operation is considered normal. Capable to meet normal commitments.		Satisfactory

Maximum Credit Limit :	USD 425000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old, well established and family owned company engaged in the business of producing, processing, marketing and exporting of Planting Seeds of Vegetables Crops. The company has the required infrastructure facilities and well-trained manpower to run its business efficiently. The company’s business is progressing well. Trade relations are reported as fair. Payments are usually correct and as per commitments. It can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	19, Raj Mahal, 84, Veer Nariman Road, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22049497
Fax No.:	91-22-22047871
E-Mail :	ksvomani@sungroseeds.com
Website :	http://www.sungroseeds.com
Head Office :	III Floor, Sungro Chamber, B. N. Block, Local Shopping Centre, Shalimar Bagh, Delhi – 110 052
Tel. No.:	91-11-27488272/27471117/2574/27475524/27/28
Fax No.:	91-11-27470333
E-Mail :	ceo@sungroseeds.com
Plants / Regional Offices :	Located at : Srinagar, Chandigarh, Solan, Bilaspur, Dehradun, Farrukhabad, Kanpur, Warangal, Amravati, Ambala, Himachal Pradesh Ranibennur, Bangalore, Bellary, Coimbatore, Kurnool and Sriganganagar
Sales Offices :	Located at : Aurangabad, Maharashtra Bangalore, Karnataka Delhi Chandigarh
Branches :	4^th Floor, Resham Bhavan, 78, Veer Nariman Road, Mumbai, Maharashtra Alipore, G. T. Road, New Delhi 303, Brigade M. M. Annexe, K. R. Road Cross, Yediyur, Bangalore – 560082, Karnataka Tel. No. 91-80-26651766 / 4140 Fax No. 91-80-26654140 E Mail: anmahesh@bgl.vsnl.net.in S.C.O. 15, Sector 20-D, Chandigarh – 160 020 Tel. No. 91-172-2708159 Fax No. 91-172-2714510 E Mail: sunchd@satyam.net.in 205, 1^st Floor, Arhat Chamber, Laxman Chawadi, Mondha Naka, Aurangabad – 431 001, Maharashtra Tel. No. 91-240-2330663 Fax No. 91-240-2330663 E Mail: sunabd@bom4.vsnl.net.in

DIRECTORS

Name :	Mr. Badrinarayan Ramulal Barwale
Designation :	Director
Address :	72 – B, Urvashi, Petit Hall, Nepean Sea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	13.08.1931
Date of Appointment :	06.06.1991
E-mail :	badrinarayan.@barwale@mahco.com
Name :	Mr. Rajendra Badrinarayan Barwal
Designation :	Director
Address :	72 – B, Urvashi, Petit Hall, Nepean Sea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	12.12.1955
Date of Appointment :	06.06.1991
E-mail :	raju.barwale@sungroseeds.com
Name :	Mr. Shyam Sundar Gopilal Agrawal
Designation :	Director
Address :	Jolly Maker Apartment No. 2, Flat No. 62, Opposite World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	02.12.1947
Date of Appointment :	06.06.1991
E-mail :	shyamg.@agarwal@mahyco.com
Name :	Mr. Brent Eugene Zehr
Designation :	Director
Address :	Mahyco Life Science Research Centre, P. O. Box No. 76, Dawalwadi, Jalna – 431203, Maharashtra
Date of Birth/Age :	26.08.1961
Date of Appointment :	28.10.2005
E-mail :	brent.zehr@sungroseeds.com
Name :	Mr. Anup Harbhajan Singh
Designation :	Director
Address :	1485, Sector 37, Near Gulf Course, Noida, Uttar Pradesh
Date of Birth/Age :	28.08.1942
Date of Appointment :	28.10.2005
E-mail :	anupsihn@sungroseeds.com
Name :	Mr. Kamalkishore Vijaykumar Somani
Designation :	Executive Director
Address :	K – 1/13, 1^st Floor, Model Town, Part – II, Delhi
Date of Birth/Age :	25.05.1952
Date of Appointment :	28.10.2005
Name :	Mr. Jakob Jan Roelf Vos
Designation :	Director
Address :	801, Deloro Drive, Ojai, California 93023, U.S.A.
Date of Birth/Age :	13.09.1940
Date of Appointment :	28.10.2005

KEY EXECUTIVES

Name :	Ms. Reena Jaiprakash Bajaj
Designation :	Company Secretary
Address :	Gold Mohur Building, 5^th Floor, Princess Street, Kalbadevi Road, Mumbai, Maharashtra
Date of Birth/Age :	20.06.1976
Date of Appointment :	19.09.2005

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Equity Shares
Mr. Badrinarayan Ramulai Barwale	31501
Mr. Rajendra Badrinarayan Barwale	1
Ms. Sushma Rajendra Barwale	1
Ms. Gomtidevi Badrinarayan Barwale	1
Mr. Ritesh Rajendra Prasad Mishra	1
Mr. Shyamsunder Gopilal Agrawal	1
Ms. Prema Ramakant Garg	1
Gangabishan Bhikulal Investment & Trading Limited	743493
Mr. Chittoda Investment & Trading Private Limited	15000
Rajur Ganapati Investment & Trading Private Limited	15090
Sarkara Investment & Trading Private Limited	248370
Dudhana Investment & Trading Private Limited	24450
Harirani Investment & Trading Private Limited	15090
Keligavan Investment & Trading Private Limited	217500
Harbhajan Investment & Trading Private Limited	217500
Jamwadi Investment & Trading Private Limited	217500
Total	1745500
Preference Shares
Rajur Ganapati Investment & Trading Private Limited	310
Sarkara Investment & Trading Private Limited	803830
Dudhna Investment & Trading Private Limited	32550
Harirani Investment & Trading Private Limited	310
Keligavan Investment & Trading Private Limited	697500
Harbhajan Investment & Trading Private Limited	697500
Jamwadi Investment & Trading Private Limited	697500
TOTAL	2929500

BUSINESS DETAILS

Line of Business :

Producers, Importers, Traders and Marketers of vegetable seeds like okra, bottlegourd, bittergourd, cabbage, radish, carrot, palak, beetroot, knol kohl, round gourd, longmelon, brinjal, chilli, cauliflower, egg plant, ridgegourd, spongegourd, tomato, hot pepper, etc.

Products :

Item Code No.	Product Description
120991.02	Cauliflower
120991.00	Bhindi
120991.05	Radish

Brand Names :

“SUNGRO”

Agencies Held :

· Sungro Seeds Limited

801, Del Oro Driva, Ihai, California93023 USA

Exports to :

UK, Germany, France, Italy, USA, Canada, Australia and Korea

Imports from :

USA, Canada, Australia and Canada [Raw materials and chemicals]

Terms :

Selling :

L/C, Cash, Credit or CAD

Purchasing :

L/C, Credit or CAD

PRODUCTION STATUS

Particulars	Unit	Installed Capacity [On Three Shift Basis]
Laterals	Kilo Mtrs	5760.00

GENERAL INFORMATION

Customers :

· Mahyco American Inc, USA

· Sakata Seeds, Japan

No. of Employees :

50

Bankers :

Canara Bank

Bhagwan Dass Road, New Delhi – 110 001

Canara Bank

3-F, Kamla Nagar, New Delhi - 110007

Facilities :

	As on 31.03.2005 [Rupees in Millions]
SECURED LOANS :
From Bank
Working Capital Loan	14.796
UNSECURED LOANS :
ICD from HDFC	6.000

Banking Relations :	Satisfactory
Auditors :	Mukund Maniar & Company Chartered Accountants Flat No. 1, Ground Floor, Shri Niket Apartment, 23 Bajaj Road, Vile Parle [West], Mumbai – 400056, Maharashtra, India Tel. No. : 91-22-26713002 Anil K. Maheshwari & Company Chartered Accountants, 808, Hemkunt Towers, 6, Rajendra Place, New Delhi – 110008, India PAN No. : AAFFA5681C
Associates :	Sungro Seed Export Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2600000	Equity Shares	Rs. 10/- each	Rs. 26.000 millions
3000000	Preference Shares	Rs. 10/- each	Rs. 30.000 millions
	TOTAL		Rs. 56.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1745500	Equity Shares	Rs. 10/- each	Rs. 17.455 millions
2929500	Preference Shares	Rs. 10/- each	Rs. 29.295 millions
	TOTAL		Rs. 46.750 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		46.750	46.750	22.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		59.746	57.572	8.703
4] (Accumulated Losses)		0.000	0.000	[40.177]
NETWORTH		106.496	104.322	[8.874]
LOAN FUNDS
1] Secured Loans		20.128	14.796	0.000
2] Unsecured Loans		47.026	33.653	44.814
TOTAL BORROWING		67.154	48.449	44.814
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		173.650	152.771	35.940
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		66.975	64.790	32.799
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.003	0.003	0.000
DEFERREX TAX ASSETS		3.168	3.762	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	88.642	71.360	5.318
	Sundry Debtors	36.344	30.945	2.564
	Cash & Bank Balances	1.819	2.326	0.088
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	28.849	27.422	0.337
Total Current Assets		155.654	132.053	8.307
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	51.160	46.055	5.166
	Provisions	0.990	1.782	0.000
Total Current Liabilities		52.150	47.837	5.166
Net Current Assets		103.504	84.216	3.141
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		173.650	152.771	35.940

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	290.156	238.231	2.593
Profit/(Loss) Before Tax	4.709	2.809	[3.940]
Provision for Taxation	2.399	[3.721]	0.000
Profit/(Loss) After Tax	2.310	6.530	[3.940]
Import Value	N.A.	34.800	N.A.
Total Expenditure	285.447	235.421	6.534

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	0.79	2.74	[151.94]
Net Profit Margin (PBT/Sales)	(%)	1.62	1.17	[151.94]
Return on Total Assets (PBT/Total Assets}	(%)	2.11	1.42	[9.58]
Return on Investment (ROI) (PBT/Networth)		0.04	0.02	0.44
Debt Equity Ratio (Total Liability/Networth)		1.12	0.92	[5.63]
Current Ratio (Current Asset/Current Liability)		2.98	2.76	1.60

LOCAL AGENCY FURTHER INFORMATION

History :

Subject was incorporated on 12^th December, 1973 at Jammu Tawi in Jammu & Kashmir having Company Registration Number 388.

Later in the year 1975 most of the operations except testing and commercial production, of temperature vegetable seeds were moved to Delhi.

Since 1996, the company has become family member of Maharashtra Hybrid Seed Company Limited, a leading Indian Seed Company.

Subject’s Registered Office was shifted from House No. 248, Sector –1A, Trikuta Nagar, Jammu Tawi – 180012, Jammu & Kashmir to the present address w.e.f. 6^th June, 1991 and obtained a new Registration Number 61969.

Scheme of Arrangement :

Under the Scheme of Arrangement between the company and Sungro Seeds Limited sanctioned by the Bombay High Court vide its order dated 12^th August, 2004 and Jammu & Kashmir High Court vide its order dated 19^th September, 2005 under Sections 391 and 394 of the Companies Act, 1956, the assets and liabilities etc. of the Seeds Division of Sungro Seeds Limited [SSL] have been transferred and vested as a going concern to the company with effect from April 1, 2003 being the appointed date. Consequent to the approval of the Scheme of Arrangement, the name of the company will be changed from India Drossbach Limited to Sungro Seeds Limited after obtaining necessary approval from the Registrar of Companies.

Review of Activities :

Despite unfavourable climatic conditions in many parts of the country, the turnover of the Seeds Division increased during the year as compared to the previous year. The addition of one more dryer has helped to improve the quality and timely availability of seeds for marketing. The steps taken to focus on hybrid seeds sales should result in improving the turnover and profitability in the long run. The demand for good hybrid vegetable seeds is gaining momentum in India, and the company with its varieties of products and selling strength, is expected to increase its market share.

The company will continue in its efforts to liquidate stocks of Drip Irrigation Division.

Holding Company :

The company will cease to be a subsidiary of Gangabishan Bhikulal Investment & Trading Limited [GBIT] after allotment of shares as per the Scheme of Arrangement approved by the Hon’ble High Court of Judicature at Mumbai and Jammu & Kashmir, as the percentage of shares held by GBIT in this company will be reduced to less than half of its equity share capital

It is in trade terms with: -

· Mahyco, Mumbai – 400 020, Maharashtra

· Bharat Seeds, Delhi

· New Ronak Seeds, Delhi

· Rajdhani Seeds, Delhi

· Nutech Packaging Limited

· Vibgyor International Private Limited

· The Coronation Arts Crafts

Fixed Assets :

Freehold Land, Building, Plant & Machinery, Office Equipments, Furniture & Fixtures, Laboratory Equipments, Vehicles and Electrical Installations

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	L74999MH1991PLC061969
Name of the company	SUNGRO SEEDS LIMITED
Address	19, Raj Mahal, 84, Veer Nariman Road, Mumbai – 400020, Maharashtra
This Form is for	Modification of charge
Type of Charges	Hypothecation
Particular of the charge holder	Canara Bank 3-F, Kamla Nagar, New Delhi – 110007 E-mail : bel0156@canbank.co.in
Amount Secure by the charge	Rs. 10.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	The above is to secure all amounts payable under FLC limit of Rs. 10 millions granted to the company together with interest @16.75% p.a. at monthly rest or at such rate[s] as would prevail at the time of arising of any liability under the said limit and all other costs, charges, expenses, commission, etc. payable on demand
Description of the property charge whether it is a charge on	Plant and Machinery, Furniture and Fixtures, Stock in trade, Book Debts and Vehicles
Modification charge Charge identification number of the charge to be modified	10006298
Brief description of the instrument modifying the charge	Letters evidencing deposit of Title Deeds along with Schedule ‘A’ & ‘B’ dated [3 Nos.]
Date of instrument modifying the charge	05.07.2006
Particulars of the Property charged	Hypothecation of all the goods and commodities purchased, acquired, received under FLC limit now lying or hereafter stored at Company’s godowns, yards and premises at as detailed in the Annexure or at any other place[s] including those in transit and all the book-debts, outstandings, monies receivables, claims and bills arising out of the sale, disposal of the goods received under the said credit facilities – both present & future. Hypothecation of all plant, machinery, motor vehicles, tools
Particulars of the present modification	All amounts payable under enhanced FLC limit of Rs. 10 millions together with all interests, costs, charges, expenses etc. stands collaterally secured by equitable mortgage of the following immovable

Name of the company	INDIA DROSSBACH LIMITED
Presented By	Senior Manager [Law] Gujarat Industrial Investment Corporation Limited Chunibhai Chambers, Ashram Road, Ahmedabad – 380009
1) Date and description of instrument creating the change	05-06-1993 Deed of hypothecation executed by the company in favour of Gujarat Industrial Investment Corporation Limited [GIIC] [hereinafter referred as ‘the Lender’]. A certified copy of the said Deed of Hypothecation is enclosed.
2) Amount secured by the charge/amount owing on the securities of charge	The term loan of Rs. 14.800 millions agreed to be lent and advanced by GIIC to the company together with interest, additional interest, commitment charges, premia on payment or on redemption, costs, charges, expenses and all other moneys payable by the company to GIIC in terms of the loan agreement dated the 5^th day of June, 1993 between the company of the one part and the Lenders of the other part
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 movable properties of the company including its movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future [save and except book debts and current assets Karan Nagar, Taluka Kadi, District Mehsana in the State of Gujarat, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security be brought into or upon or be stored or be in or about the company’s factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the company and either by way of substitution or addition
4) Gist of the terms and conditions and extent and operation of the charge.	a. The charge operates as security, interalia for the due repayment by the company to GIIC of its Term Loan of Rs. 14.800 millions together with interest, additional interest, commitment, charges, premia on prepayment or on redemption, costs, charges, expenses and all other moneys payable by the company to GIIC in terms of the said loan agreement b. The charge in favour of GIIC under the said Deed of hypothecation is subject to the prior charge[s] created and / or to be created by the company in favour of its bankers on the company’s stock and or raw materials, semi finished and finished goods and consumable stores and book debts and such other movables as may be specifically permitted to secure its working capital requirements c. The company has undertaken to keep the goods hypothecated in marketable and good condition at its own cost and to insure the same in the joint names of the company and the lenders d. All the goods hypothecated and all the realisations and insurance proceeds thereof and all documents in respect of the said security are to be kept distinguishable and held as the exclusive property of the lenders e. The security created under the said Deed of hypothecation is to be a continuing security
5) Name and Address and description of the person entitled to the charge.	Gujarat Industrial Investment Corporation Limited Chunibhai Chambers, Ashram Road, Ahmedabad – 380009
6) Date and brief description of instrument modifying the charge	Nil
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.	Nil

WEBSITE DETAILS

The company started its business in vegetable crops in 1973 with having 10 products in its portfolio and virtue of its continuous R&D efforts it has developed 38 hybrids and 26 superior open pollinated varieties in all major high value vegetable crops like Okra, Bottle gourd, Bitter gourd, Cabbage, Cauliflower, Egg Plant, Ridge gourd, Sponge gourd, Tomato, Hot pepper etc. This was mainly possible with the efficient and learned Scientists team work.

The SUNGRO has become a member of Maharashtra Hybrid Seeds Company (Mahyco), the top most Indian Seeds company owned by Mr. Barwale family. Although, SUNGRO will continue to maintain its own identity, its stands greatly benefited by the strong technical backing with the latest technology, supported with modern facilities of MAHYCO. The far flung administrative infrastructure is also now available to SUNGRO to sort out and deal more speedily with all types of issues within the country and abroad. The Sungro is expected to take further strides in the progress.

The company has research, trial grounds and production centres in all the important agro-climatic zones of the country. Company carries out very extensive testing of cultivars for their different trades. Sungro's strong R&D group has very successfully utilized the tools of breeding by evolving new and improved varieties and hybrids. SUNGRO offers to the trade about 25 kinds and more than hundred varieties and hybrids of vegetables.

Company's strong faith in quality, confidentiality, purity and efficient service has provided us with very valuable export seed production contracts for hybrids from many leading seed companies of USA, Japan, France, etc.

The company has plans to improve its existing lines, and to breed new hybrids in the crops like cauliflower, cabbage, carrot, tomato, Eggplant, radish, ridge gourd, bottle gourd, bitter gourd, chilli etc. The company has R&D facilities in different agroclimatic zones of country as per specific crops like Kullu (H.P.) for cole crops, Delhi for tropical vegetables and Ranebennur (Karnataka) for Solanaceous, cucurbits & okra etc.

The Sungro Seeds Limited has sizable market share in cabbage, cauliflower, radish, tomato, Eggplant, cucumber etc. The company has developed hybrids in cauliflower, radish & cabbage. Thus, the company can save valuable revenue because at present hybrids in these crops are being imported. Now the company is focusing to develop hybrids in major high value vegetable having more value added traits e.g. multiple disease resistance, heat/cold, drought resistance, better self life / transportability & nutritional value etc. Sungro's products are doing well in many European & Asian countries and exporting seeds to them.

 The Sungro seeds is the first and foremost company in India to develop and commercialize the hybrids in  crops. These hybrids have been developed using in indigenous lines / germplasm, therefore are highly adaptable to Indian climatic conditions. At present cent-percent hybrids of these crops are being imported at very higher cost and always they have to depend for supply on their suppliers. These hybrids not only we will be able to save valuable foreign revenue but also they will have continuous availability of products. Now these hybrids are available to Indian farmers at very reasonable prices.

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.44.27
UK Pound	1	Rs.86.71
Euro	1	Rs.57.13

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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