MIRA INFORM REPORT

Report Date :

03.03.2007

IDENTIFICATION DETAILS

Name :	ASHOK GRANITES LIMITED
Registered Office :	4/35, Bharathi Street, Swarnapurai, Salem – 636004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	13.11.1991
Com. Reg. No.:	18-7127
CIN No.: [Company Identification No.]	U14102TZ1991PLC007127
TAN No.: (Tax Deduction & Collection Account No.)	CHEA08095D
Legal Form :	Closely held public limited liability company.
Line of Business :	Manufacturers, quarry owners and exporters of cut and polished granite slabs and monuments

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 500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	4/35, Bharathi Street, Swarnapurai, Salem – 636004, Tamilnadu, India
Tel. No.:	91-427-2447645/2448490/ 2345456
Fax No.:	91-427-2446223/ 2448744
E-Mail :	ashok@md3.vsnl.net.in, gtpho@sancharnet.in
Factory :	60/4A, Vellakkalpatty, Chetichavadi, Omalur, Salem - 636012, Tamilnadu, India

DIRECTORS

Name	Ms. Baby Saroja
Designation	Director
Address	134 Manicakavasagam Street, Balaji Nagar, Fairlands, Salem – 636016, Tamilnadu
Date of Birth :	15.12.1954
Date of Appointment	13.11.1991
Name	Mr. Appichi Mani
Designation	Director
Address	1/251 Thirumoorlar Street, P & T Colony, Salem – 636016, Tamilnadu
Date of Birth	18.07.1956
Date of Appointment	05.05.1995
Name	Mr. A Paramasivam
Designation	Director
Address	4/444 F Jagir Ammapalaym, Salem – 636002, Tamilnadu
Date of Birth	03.04.1945
Date of Appointment	05.05.1995
Name	Mr. D. Krishnan
Designation	Whole Time Director
Address	3/65, B3, Sivaji Street, Silvaya Nagar, Alagapuram, Salem-636016, Tamilnadu
Date of Birth	30.07.1967
Date of Appointment	01.02.1998

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. M Balakrishnan	20000
Ms. M Baby Saroja	114100
Mr. S Manickam	75100
Mr. D krishnan	25100
Mr. M P Thangavel	32700
Mr. A Mani	10100
Mr. S Muthurajan	422600
GTP Exports Private Limited	35000
Mr. M Ashok Raj	7000
Mr. M Ramya	7500
Ms. M Divya	7500
Mr. T P Nagarajan	10000
Mr. S Ravichandran	25000
Mr. P Duraisamy	5000
Mr. S Kannammal	5000
Mr. K Tamil Selvi	10000
Mr. P Giridharan	20000
Mr. P Nedunchelian	10000
Mr. S S Muthuvelu	10000
Mr. M K Duraisamy	70000
Mr. P Rajamanickam	30000
Mr. S Rajendra Kumar	10000
Mr. R Rajamanickam	50000
Mr. M Ramasamy	5000
Mr. V Gunasekaran	20000
Mr. R Silvasubramanian	10000
Mr. K Chinnusamy	25000
Mr. R Sundaram	25000
Mr. A Paramsivam	10000
Mr. A Kalaiselvan	10000
Mr . J Jayasingh	10000
Mr. R N Duraisamy	10000
Mr. M V Venkatachalam	15000
Mr. A Srinivasan	18300
Mr. K Appichi Gounder	50000
Mr. K Venkatachalm	15000
Mr. P Balasubramianiam	25000
Mr. S Sundaram	25000
Mr. M Sivakumar	20000
Mr. A Muthu Gounder	30000
M Sellammal	20000
Mr. A Kaliammal	30000
Mr. P Balasubramani	60000
Mr. S Pavayammal	60000
Mr. K Kamalakkam	20000
Mr. Ichhubhai R Parmer	20000

BUSINESS DETAILS

Line of Business :

Manufacturers, quarry owners and exporters of cut and polished granite slabs and monuments

Products :

v Granite

v Monuments

v Slabs

Product Description	ITC Code
Cut and Polished Granite Slabs and Monuments	251612.02

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Granite Monument	Qty/Sq. ft	2,44,800	157806

GENERAL INFORMATION

Suppliers :

v Grantools Private Limited

v Stay Sharp Diamond Tools Private Limited

No. of Employees :

Around 2200

Bankers :

Karnataka Bank Limited

Divya Towers, For Main Road, Salem – 636001, Tamilnadu, India

Karnataka Bank Limited

Registered and Head Office : P.B. No.599, Mahaveera Circle, Kankandy, Mangalore-575002, Karnataka, India

Facilities :

Secured Loan

(figures are in Rs. millions)

	2004	2003
From Karnataka Bank Limited
Export Packing Credit Limit (secured by equitable mortgage of the immovable properties of the company and by hypothecation of stocks, consumables, spares, plant and machinery, book debts both present and future and guaranteed by the Directors)	7.500	4.400
Post Shipment Credit (secured by hypothecation of relevant Export Bills)	79.726	74.059
Total	87.226	78.459

Banking Relations :	Satisfactory
Auditors :	Mr. Bala & Sakthi, Chartered Accountant, 7AA Ramakrishna Road, Sundaram Nursing Home Building, Salem – 636007, Tamilnadu, India
Tel. No.:	91-427-2210676/2212718
Subsidiaries :	Granite and Tombstone Products, Inc

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
15,00,000	Equity Shares	Rs. 10/-	Rs. 15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15,00,000	Equity Shares	Rs. 10/-	Rs. 15.000 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	15.000	15.000	15.000
2] Reserves & Surplus	112.776	109.346	102.034
NETWORTH	127.776	124.346	117.034
LOAN FUNDS
1] Secured Loans	100.268	65.339	87.226
2] Unsecured Loans	0.000	0.000	0.000
TOTAL BORROWING	100.268	65.339	87.226
DEFERRED TAX LIABILITIES	7.366	5.637	5.960
TOTAL	235.410	195.322	210.220
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	91.684	45.009	46.867
Capital work-in-progress	0.000	55.000	0.000
INVESTMENTS	1.098	0.098	0.098
CURRENT ASSETS, LOANS & ADVANCES
Inventories	58.612	62.161	54.344
Sundry Debtors	74.929	65.151	86.349
Cash & Bank Balances	2.803	1.785	15.141
Loans & Advances	16.912	15.924	18.061
Total Current Assets	153.256	145.021	173.895
Less: CURRENT LIABILITIES & PROVISIONS
Current Liabilities	9.312	49.563	10.640
Provisions	1.316	0.243
Total Current Liabilities	10.628	49.806	10.640
Net Current Assets	142.628	95.215	163.255
TOTAL	235.410	195.322	210.220

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		202.527	184.035	207.537
Other Income		0.539	0.090
Total Income		203.066	184.125	207.537
Profit/(Loss) Before Tax		5.861	7.271	10.636
Provision for Taxation		(1.027)	0.378	0.655
Profit/(Loss) After Tax		6.888	6.893	11.291
Total Earnings		NA	NA	217.757
Total Imports		NA	NA	17.655
Expenditures :
	Raw Material Consumed	79.101	81.167
	Consumption of stores and spares parts	22.964	26.993
	Increase/(Decrease) in Finished Goods	6.946	(9.897)
	Salaries, Wages, Bonus, etc.	30.886	32.072
	Managerial Remuneration	0.224	0.237
	Payment to Auditors	0.031	0.031	196.901
	Interest	7.127	5.308
	Insurance Expenses	0.127	0.049
	Power & Fuel	8.308	7.694
	Depreciation & Amortization	10.603	6.189
	Other Expenditure	30.888	27.011
Total Expenditure		197.205	176.854	196.901

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	3.39	3.74	5.44
Net Profit Margin (PBT/Sales)	(%)	2.89	3.95	5.12
Return on Total Assets (PBT/Total Assets}	(%)	2.39	3.83	4.81
Return on Investment (ROI) (PBT/Networth)		0.04	0.06	0.09
Debt Equity Ratio (Total Liability/Networth)		0.87	0.93	1.88
Current Ratio (Current Asset/Current Liability)		14.42	2.91	16.34

LOCAL AGENCY FURTHER INFORMATION

Operations

During the year under review, the company registered a turnover of Rs. 217.757 millions and net profit of Rs. 11.291 millions after providing for interest, depreciation and also other provisions.

It exports cut and polished granite slabs and monuments

It imports capital goods raw materials and spares.

Form 8 Particular for creation or modification of charges

Name of the company	ASHIOK GRANITES LIMITED
Presented By	ASHIOK GRANITES LIMITED, SALEM AND THE KARNATAKA BANK LIMITED, SALEM
1) Date and description of instrument creating the change	Letter of hypothecation dated 02.09.1996 Guarantee letter dated 02.09.1996 (Both relate to the same charge)
2) Amount secured by the charge/amount owing on the securities of charge	Bill discounting limit Rs.2.000 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	Hypothecation of all documentary bills of exchange
4) Gist of the terms and conditions and extent and operation of the charge.	In the event of the bills remaining unpaid for a period of 30 days, after the transit period of 15 days, after due date in case of usance bills, the Bank shall be at liberty under the unpaid bills and concert the same t rupee liability on the 30^th day at the prevailing ready TT selling rate. Interest @ 13% per annum.
5) Name and Address and description of the person entitled to the charge.	The Karnataka Bank Limited, Divya Towers, Fort Main Road Salem -636001.
6) Date and brief description of instrument modifying the charge	Hypothecation agreement dated 25.02.2004 for export bills limit of Rs.82.500 millions Letter of authority dated 25.02.2004 Letter of authority dated 25.02.2004
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.	Export bills limit has been increased from Rs.67.500 millions to Rs.82.500 millions Secured by hypothecation of machineries and hypothecation of stock of granites and stock under export bills. Extension of equitable mortgage by deposit of title deeds of immovable properties to cover the increased export bills limit Rs.82.500 millions

Corporation identity number or foreign company registrations number of the company	U14102TZ1991PLC007127
Name of the company	ASHOK GRANITES LIMITED
Address	4/35, Bharathi Street, Swarnapurai, Salem – 636004, Tamilnadu, India
This Form is for	Creation of charge
Type of Charges	Immovable property Book debts Movable property (not being pledge)
Particular of the charge holder	Karnataka Bank Limited Registered and Head Office : P.B. No.599, Mahaveera Circle, Kankandy, Mangalore-575002, Karnataka, India E-Mail : salem@ktkbank.com
Nature or description of the instrument creating charge	Hypothecation agreement dated 20.09.2006 Letter of authority dated 20.09.2006
Date of the instrument creating charge	20.09.2006
Amount Secure by the charge	Rs.15.681 millions
Brief of the principal terms and conditions and extent and operation of the charge	Terms of repayment Bank guarantee valid for a period up to 19.03.2008 Margin 10% Extent and operation of the charge Financial accommodation up to a maximum limit of Rs.15.681 millions for the purpose of Bank guarantee
Particulars of the Property charged	Hypothecation of plant and machinery, stocks in trade, stores kept at 60/4A, Vellakkalpatty Village, Chettichavadi post, Salem -636012. Extent of equitable mortgage of factory, land and building situated at 60/4A, Vellakkalpatty Village, Chettichavadi post, Salem -636012.

Bankers Charges Report as per Registry

Name of the Company : Ashok Granites Limited

Presented by : Mr. A Mani, Director

1. Date and description of the instrument creating or evidencing the charge	Hypothecation agreement dated 02.09.1996
2. Amount secured by the charge /amount owing on security of the charge	Term Loan of Rs. 21.300 millions
3. Short Particular of the property charged. If the property acquired is subject to charge date of acquisition of property should be given	Hypothecation of machineries of the Granite Factory such as Edge Cutting Machine, Auto Polishing Machine, Grinding Machine, Hand Polishing Machines, EOT Cranes, Circular Sawing Machine, Generators etc.
4. Gist of the terms and conditions and extent and operation of the charge.	Repayable in 20 quarterly installments of Rs. 1.065 millions and the first installments due before 30.09.1996. To pay interest as stipulated in the sanction order by the end of each calendar quarter and in case of non payment of installments and or any interest by the due date, such arrears shall bear over due interest at 2% pa, being compounded quarterly.
5. Names, address and description of the persons entitled to charge	Karnataka Bank Limited, Divya Towers, Fort Main Road, Salem, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	NA
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	NA

Name of the Company : Ashok Granites Limited

Presented by : Mr. A Mani, Director

1. Date and description of the instrument creating or evidencing the charge	Hypothecation agreement dated 02.09.1996
2. Amount secured by the charge /amount owing on security of the charge	Import L/C Limit and Bank Guarantee of Rs. 2.000 millions
3. Short Particular of the property charged. If the property acquired is subject to charge date of acquisition of property should be given	Hypothecation of stock of consumables, spares, granite blocks, granite monuments etc.
4. Gist of the terms and conditions and extent and operation of the charge.	To meet import of consumables, spares and to meet statutory obligation.
5. Names, address and description of the persons entitled to charge	Karnataka Bank Limited, Divya Towers, Fort Main Road, Salem, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Memorandum of Deposit of Title Deeds and Letter of Authority dated 25.02.1997 confirming the deposit of title deeds of immovable properties by way of equitable mortgage. Title deeds deposited on 25.02.1997
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	Creation of equitable mortgage by deposit of title deeds of immovable property of the company as additional collateral security to secure the bill import letter of credit and bank guarantee. Description of property: Salem District, Omalur Taluk, Vellakkalpatty Village, S No. 60/4B1, 2.21 Acres, S No. 63/1E 0.16 Acres, S No. 60/4A 2.05 Acres, 1/3 share, S No. 60/4A 2.05 Acres 1/3 share, S No. 60/4A 2.05 Acres 1/3 share.

Name of the Company : Ashok Granites Limited

Presented by : Mr. A Mani, Director

1. Date and description of the instrument creating or evidencing the charge	1. Hypothecation agreement dated 12.03.1997 2. Term Loan agreement dated 12.03.1997 3. Letter of Authority dated 12.03.1997 (all relate to the same charge)
2. Amount secured by the charge /amount owing on security of the charge	Term loan of Rs. 10.000 millions
3. Short Particular of the property charged. If the property acquired is subject to charge date of acquisition of property should be given	Hypothecation of plant and machinery of granite factory Equitable mortgage created by deposit of title deeds on 25.02.1997 now extended to cover the term loan of Rs. 10.000 millions. Description of property: Salem District, Omalur Taluk, Vellakkalpatty Village, S No. 60/4B1, 2.21 Acres, S No. 63/1E 0.16 Acres, S No. 60/4A 2.05 Acres.
4. Gist of the terms and conditions and extent and operation of the charge.	Repayable in 20 quarterly installments of Rs. 0.500 millions
5. Names, address and description of the persons entitled to charge	Karnataka Bank Limited, Divya Towers, Fort Main Road, Salem, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Nil
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	Nil

Name of the Company : Ashok Granites Limited

Presented by : Mr. D Krishnan, Director

1. Date and description of the instrument creating or evidencing the charge	Hypothecation agreement dated 25.05.2000
2. Amount secured by the charge /amount owing on security of the charge	Import L/C and Bank Guarantee Rs. 6.000 millions
3. Short Particular of the property charged. If the property acquired is subject to charge date of acquisition of property should be given	Hypothecation of Stock of Machinery, Spares, Granites and Raw Material etc.
4. Gist of the terms and conditions and extent and operation of the charge.	To maintain in favour of the bank a margin between the market value of the hypothecated property and the balance due to the bank, from time to time as stipulated by the bank.
5. Names, address and description of the persons entitled to charge	Karnataka Bank Limited, Divya Towers, Fort Main Road, Salem, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Nil
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	Nil

Name of the Company : Ashok Granites Limited

Presented by : Mr. A Mani, Director

1. Date and description of the instrument creating or evidencing the charge	Term Loan agreement for machinery dated 02.01.1995
2. Amount secured by the charge /amount owing on security of the charge	Rs. 7.000 millions
3. Short Particular of the property charged. If the property acquired is subject to charge date of acquisition of property should be given	Stone working machine viz auto polisher, Rajasthan Udyog Uranus model SG – 1K 380TT with all electrical head and accessories. Stone working machine viz Rajasthan Apollo 6/2500 mm circular saw machine with accessories, electrical. Stone working machine edge cutting machine model II with 10 HP motor and starter. Contour Grinding machine model CGM III. Indian C 600/1000 auto edge cutting machine with all accessories. Indian P5 polishing machine with 5 HP motor. Granite polishing machine I beam stand dubla arm foldable type speed drive 5 HP electric motor with all accessories. 3T single girder EOT crane to travel a length of 60 m. indo tech make 315 KVA/ 22-11KV /433r copper wound transformer with all fitting and first filling of oil bearing SL No. 3927.
4. Gist of the terms and conditions and extent and operation of the charge.	Repayable in 20 equal quarterly installments of Rs. 0.350 millions each Interest @ 16% plus interest tax.
5. Names, address and description of the persons entitled to charge	Lakshmi Vilas Bank Limited, 62/63, Bazar Street, Salem 636001, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Letter dated 21.9.1995 confirming the deposit of title deeds of immovable property by way of equitable mortgage as additional collateral security to secure the term loan
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	Creation of equitable mortgage by deposit of title deeds of immovable property of the company as additional collateral security to secure the term loan. Description of property: Salem District, Omalur Taluk, Vellakkalpatty Village, S No. 60/4B1, 2.21 Acres, S No. 63/1E 0.16 Acres, S No. 60/4A 2.05 Acres 1/3 share.

Name of the Company : Ashok Granites Limited

Presented by : Karnataka Bank Limited, Salem

1. Date and description of the instrument creating or evidencing the charge	Letter of hypothecation dated 05.08.2003. Letter of Authority dated 05.08.2003 (both relate to the same charge)
2. Amount secured by the charge /amount owing on security of the charge	Export bill limit (additional) Rs. 15.000 millions
3. Short Particular of the property charged. If the property acquired is subject to charge date of acquisition of property should be given	Hypothecation of plant and machinery of company valued at Rs. 34.600 millions as per valuation dated 28.03.2002 Hypothecation of stock of granite under export bills.
4. Gist of the terms and conditions and extent and operation of the charge.	Not to create any further charge encumbrance over the hypothecated property so as to affect the rights of the bank. Not to part with the hypothecated property or any part thereof without the written constant of the bank To keep the hypothecated property in good conditions. Extension of equitable mortgage by deposit of title deeds of immovable property of the company created on 25.02.1997 to cover the export bills limit (additional) of Rs. 15.000 millions
5. Names, address and description of the persons entitled to charge	Karnataka Bank Limited, Divya Towers, Fort Main Road, Salem, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Memorandum of Deposit of title deeds dated 05.09.2003
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	Equitable mortgage by deposit of title deeds of immovable property of the company offered as additional collateral security to secure export bills limit (additional) Rs. 15.000millions. Description of property: Salem District, Omalur Taluk, Vellakkalpatty Village, S No. 60/4B1, 2.21 Acres, S No. 63/1E 0.16 Acres, S No. 60/4A 2.05 Acres, 1/3 share, S No. 60/4A 2.05 Acres 1/3 share, S No. 60/4A 2.05 Acres dry land

Name of the Company : Ashok Granites Limited

Presented by : Directors of Ashok Granites Limited

1. Date and description of the instrument creating or evidencing the charge	The hire purchase agreement dated 12.08.1997
2. Amount secured by the charge /amount owing on security of the charge	Rs. 1.012 millions
3. Short Particular of the property charged. If the property acquired is subject to charge date of acquisition of property should be given	On the security of 1997 model one No. Escorts Hydraulic Mobile Crane Model C 8000 E bearing Chassis No. 08/2536/G97, Engine No. S433-32489
4. Gist of the terms and conditions and extent and operation of the charge.	Rs. 1.012 millions is repayable in 23 monthly installments as under : First installment of Rs. 0.044 millions and balance in 22 monthly installment of Rs 0.044 millions each.
5. Names, address and description of the persons entitled to charge	Lakshmi General Finance Limited, 21 Patullos Road, Chennai 600002, Tamilnadu, India
6. Date and brief description of instrument modifying the charge	Nil
7. Particular of modification specifying the terms and conditions or the extent or operation of the charge in which modification is made and the details of modification	Nil

The company’s fixed assets of important value include:

• Land
• Building
• Plant and Machinery
• Electrical Installations
• Furniture and Fixture
• Fittings
• Vehicles
• Office Equipment
• Computer

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.44.49
UK Pound	1	Rs.85.71
Euro	1	Rs.58.53

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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		46

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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