MIRA INFORM REPORT

Report Date :

28.02.2007

IDENTIFICATION DETAILS

Name :	INNOVASSYNTH TECHNOLOGIES [INDIA] LIMITED
Registered Office :	3^RD Floor, Paragon Condominium Pandurang Budhkar Marg, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	04.12.2001
Com. Reg. No.:	11-134105
CIN No.: [Company Identification No.]	U24110MH2001PLC134105
Legal Form :	A closely held public limited liability company.
Line of Business :	To carry on the business as manufacturers, processors and dealers of specialty chemicals, fine chemicals, customs synthesis of all kinds and descriptions and to act as manufacturers of and dealers in intermediate, by products and end products thereof and to carry on business of toll manufacturing and contract manufacturing of chemicals, all kinds and descriptions, as well as to do marketing and research and development of aforesaid products.

RATING & COMMENTS

MIRA’s Rating :

B

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

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an old established company having moderate track. Company’s profitability is under severe pressure. It has some accumulated losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at usual trade terms and conditions, with slight caution initially.

LOCATIONS

Registered Office / Corporate Office :	3^RD Floor, Paragon Condominium Pandurang Budhkar Marg, Mumbai – 400013, Maharashtra, India
Tel. No.:	91 - 22 -24922999
Fax No.:	91- 22 – 24923142
E-Mail :	futuraho@futurapolyesters.com scnanda@innovassynth.com a.r.gadkari@futurapolyesters.com
Website :	http://www.innovassynth.com
Factory 1 :	Mumbai-Pune Road, Khopoli, Dist. Raigad, Pin- 410203 Maharashtra.
Tel. No.:	91 – 2192 - 262828
Fax No.:	91 – 2192 - 263628

DIRECTORS

Name :	Mr. Shyam Bhupatirai Ghia
Designation :	Chairman
Address :	18 Carmichael Road, Mumbai – 400026
Date of Birth/Age :	22.11.1947
Date of Appointment :	02.12.2002
Name :	Mr. Rajan Raheja
Designation :	Director
Address :	“Rahejas” 87/1, GB Marg, Juhu, Mumbai – 400049
Date of Birth/Age :	17.06.1954
Date of Appointment :	12.09.2003
Name :	Mr. Rakesh Jhunjhunwala
Designation :	Director
Address :	3, Sital Sagar, Sital Baug, 64, Walkeshwar Road, Mumbai – 400006
Date of Birth/Age :	05.07.1960
Date of Appointment :	14.06.2004
Name :	Mr. Rajesh Kapadia
Designation :	Director
Address :	1001, Raheja Chambers 213, Nariman Point, Mumbai – 400021
Date of Birth/Age :	02.11.1956
Date of Appointment :	11.10.2004
Name :	Mr. S. B. Chatterjee
Designation :	Director
Address :	102, Vinayak Angan, CHS, Opposite VIP House, Old Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	30.03.1954
Date of Appointment :	04.12.2001
Date of Ceasing :	23.03.2005
Name :	Mr. S. Ramachandran
Designation :	Director
Address :	B-407, Sunrise, Raheja Vihar, Powai, Mumbai – 400072
Date of Birth/Age :	26.05.1944
Date of Appointment :	04.12.2001
Date of Ceasing :	23.03.2005
Name :	Dr. Bhabatosh Sahu
Designation :	Chief Executive Office and Director
Address :	Flat No. 1103, Raheja Empress, 392, Veer Savarkar Marg, Opposite Siddhivinayak Temple, Prabhadevi, Mumbai – 400025
Date of Birth/Age :	20.05.1951
Date of Appointment :	01.04.2005
Name :	Dr. Balkrishna Kulkarni
Designation :	Whole Time Functional Direction
Address :	Quarter No. A-4, Mumbai –Pune Old Road, Khalapur - 410203, Raigad
Date of Birth/Age :	16.05.1957
Date of Appointment :	01.04.2005
Name :	Mr. Suhas Chandra Nanda
Designation :	Whole Time Functional Direction
Address :	Quarter No. A-5, Mumbai –Pune Old Road, Khalapur - 410203, Raigad
Date of Birth/Age :	19.01.1961
Date of Appointment :	01.04.2005
Name :	Mr. Shyam Sunder Vaidhyanath Sami
Designation :	Director
Address :	C 203, Golden Oak, Hiranandani Gardens, Powai, Mumbai – 400076
Date of Birth/Age :	28.07.1940
Date of Appointment :	01.04.2005
Name :	Mr. A R Gadkari
Designation :	Company Secretary
Address :	A/4, 503, “Vedant” Phase –I, CHS, Thane – 400606
Date of Birth/Age :	22.06.1954
Date of Appointment :	01.10.2004

KEY EXECUTIVES

Name :	Mr. S. B. Ghia
Designation :	Chairman
Mobile :	ghia@bom3.vsnl.net.in
Name :	Dr. B. Sahu
Designation :	CEO & President
Mobile :	sahu@bom3.vsnl.net.in
Name :	Dr. B. K. Kulkarni
Designation :	Director ( R & D and Business Development) & Chief Technology Officer
Mobile :	bkkulkarni@innovassynth.com
Name :	Mr. S. C. Nanda
Designation :	Director, Finance, Supply Chain & Works
Mobile :	scnanda@innovassynth.com
Name :	Mr. C. Sankar
Designation :	Associate Vice President (R&D and Business Development)
Mobile :	csankar@innovassynth.com

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Futura Polyesters Limited Jointly with Mr. S. Ramachandran	10
Futura Polyesters Limited Jointly with Dr. B. Sahu	10
Futura Polyesters Limited Jointly with Mr. S. B. Chatterjee	10
Futura Polyesters Limited	25050000
Futura Polyesters Limited Jointly with Mr. K. N. Raman	10
Futura Polyesters Limited Jointly with Mr. A. G. Shenoy	10
Futura Polyesters Limited Jointly with Mr. A. R. Gadkari	10
Futura Polyesters Limited Jointly with Mr. P. B. Kansara	10
Mr. Rakesh Jhunjhunwala	2500000
Ms. Rekha Jhunjhunwala	625000
Mr. Rajeshkumar Jhunjhunwala	25000
Ms. Hina K Dharamshi	300000
Ms. Seema Delip Vora	110000
Ms. Jayshree Rajesh Vora	20000
Mr. V. Nagesh	125000
Ms. Geeta A. Joshi Jointly with Mr. Arvind B. Joshi	5000
Ms. Sushila Purushottam Gupta	25000
Ms. Nipa Utpal Sheth	25000
Ms. Asha Bharadwaj	100000
Creative Finvest Private Limited	25000
Mr. P. V. S. Raju	100000
Mr. Satish Raheja	5536236
Surin Investments Private Limited	1280
Bhupati Investments and Finance Private Limited	1000000
Mr. M. D. Dalal	3841
Mr. Shridhar Iyer	22276
Mr. Sanjay Asher	25000

BUSINESS DETAILS

Line of Business :

To carry on the business as manufacturers, processors and dealers of specialty chemicals, fine chemicals, customs synthesis of all kinds and descriptions and to act as manufacturers of and dealers in intermediate, by products and end products thereof and to carry on business of toll manufacturing and contract manufacturing of chemicals, all kinds and descriptions, as well as to do marketing and research and development of aforesaid products.

Products :

Product Description	ITC Code No
Solanesol	2924.00.90
DC and T Amidite	2933.90.00
6-Amino-1-Hexanol	2922.19.00
Tiglic Acid	--

PRODUCTION STATUS

Particulars	Unit
Custom Synthesis	M. T.

GENERAL INFORMATION

Suppliers :	Dembla Valves Private Limited Rhyme Organics Swastik Paper Converter and Printers Chemi Plants Engineering Company Liju Electrical Mec elec Industries and Swastik Paper Converters and Pri Allied Engineers and Fanricators Allied Engineers B. M. Fabricators Cooling People Private Limited Cor-Resist Nasik Private limited Electro System Eagle Poonawala Industry Limited FX Engineering Fainger Laser Valves Private Limited Garg Scientific Corporaiton JR Fabreglass Industries Private Limited Manas Engineers Pune Techtrol Private Limited R. Square and Company Rank Controls and Instruments Private Limited
No. of Employees :	300
Bankers :	The Pen Co-operative Urban Bank Limited Housing Development Finance Corporation Limited [HDFC Bank] Ramon House H T Parekh Marg, 169, Back Bay Reclemation Churchgate, Mumbai – 400020 Vijaya Bank Industrial Finance Branch Wallace Street New Excelsior Building Mumbai - 400001
Facilities :	--

Banking Relations :	Satisfactory
Auditors :
Name :	N. M. Raiji and Company Chartered Accountants
Address :	Universal Insurance Building, Pherozeshah Mehta Road, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22870068 / 3463 / 22837482
Mobile No.:
Fax No.:	91-22-22828646 / 22650578
E-Mail :	nmraiji@mtnl.net.in
Holding Company :	Futura Polyesters Limited L65192MH1960PLC011579

CAPITAL STRUCTURE

As On 30.09.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
55,000,000	Equity Shares	Rs. 10/- each	Rs. 550.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
52,421,679	Equity Shares	Rs. 10/- each	Rs. 524.217 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		390.551	250.501	250.501
2] Share Application Money		0.000	350.125	0.000
3] Reserves & Surplus		212.206	2.131	2.131
4] (Accumulated Losses)		[145.247]	[131.251]	[13.173]
NETWORTH		457.510	471.506	239.459
LOAN FUNDS
1] Secured Loans		360.103	0.000	0.000
2] Unsecured Loans		59.500	270.000	252.322
TOTAL BORROWING		419.603	270.00	252.322
DEFERRED TAX LIABILITIES		0.000	0.000	18.512
TOTAL		877.113	741.506	510.293
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		796.561	616.691	636.809
Capital work-in-progress		10.056	10.050	1.028
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	23.662
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.564	32.083	17.257
	Sundry Debtors	55.023	22.468	44.482
	Cash & Bank Balances	23.536	73.520	4.069
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	41.073	47.459	108.908
Total Current Assets		187.196	175.530	174.716
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	111.410	56.697	323.164
	Provisions	5.570	4.068	2.758
Total Current Liabilities		116.980	60.765	325.922
Net Current Assets		70.216	114.765	[151.206]
MISCELLANEOUS EXPENSES		0.280	0.000	0.000
TOTAL		877.113	741.506	510.293

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		178.131	161.277	39.081
Other Income		14.281	30.318	14.010
Total Income		192.412	191.595	53.091
Profit/(Loss) Before Tax		[198.442]	[112.119]	[16.228]
Provision for Taxation		74.249	47.125	28.727
Profit/(Loss) After Tax		[272.691]	[159.244]	[12.499]
Imports :
	Capital Goods	NA	NA	0.012
Total Imports				0.012
Expenditures :
	Manufacturing and other Expenses	0.000	0.000	54.587
	Raw Material Consumed	144.719	41.366	0.000
	Purchases made for re-sale	18.998	30.880	0.000
	Consumption of stores and spares parts	19.538	16.050	0.000
	Increase/(Decrease) in Finished Goods	[35.576]	[5.453]	0.000
	Salaries, Wages, Bonus, etc.	50.382	49.293	0.000
	Managerial Remuneration	3.105	0.000	0.000
	Payment to Auditors	0.435	0.376	0.000
	Interest	34.000	24.283	6.365
	Insurance Expenses	4.263	4.469	0.000
	Power & Fuel	45.372	40.415	0.000
	Depreciation & Amortization	62.628	60.898	9.263
	Other Expenditure	42.990	41.137	0.000
Total Expenditure		390.854	303.714	70.215

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	[141.73]	[83.11]	[41.52]
Net Profit Margin (PBT/Sales)	(%)	[111.40]	[0.70]	[23.54]
Return on Total Assets (PBT/Total Assets}	(%)	[20.17]	[14.15]	[2.00]
Return on Investment (ROI) (PBT/Networth)		[0.43]	[0.24]	[0.07]
Debt Equity Ratio (Total Liability/Networth)		1.17	0.70	2.41
Current Ratio (Current Asset/Current Liability)		1.60	2.89	0.54

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Innovsynth Technologies (India) Limited, a subsidiary of Futura Polyesters Limited is promoted to takeover the Chemical business of its holding company. The Chemical business of Futura Polyester consisting of Alcohol based Chemicals business is located at Khopoli, Maharashtra. The company is focusing on knowledge based chemistry intensive businesses like custom synthesis, toll manufacture, contract manufacture and contract research after the closure of loss making alcohol based chemicals business. Transfer of this chemical business from the holding company is pending clearance from Banks/ FIs.

BUSINESS

To carry on the business as manufacturers, processors and dealers of specialty chemicals, fine chemicals, customs synthesis of all kinds and descriptions and to act as manufacturers of and dealers in intermediate, by products and end products thereof and to carry on business of toll manufacturing and contract manufacturing of chemicals, all kinds and descriptions, as well as to do marketing and research and development of aforesaid products.

To acquire and takeover as a going concern the business of manufacturers, processors and dealers of specialty, chemicals, custom synthesis of all kinds and descriptions and its exports, now carried on by a division of Indian Organic Chemicals Limited and all of the assets and liabilities of that business in connection therewith, and with a view thereto to enter into the agreement referred to in clause 2 of the Company’s Articles of Associations, and to carry the same into effect with or without modification.

FIXED ASSETS

Freehold land

Buildings

Plant and machinery

Motor Car and Vehicles

Furniture and Fixture

Air – Conditioning Units and other office Equipments

Bride and Weir

Bankers Charges Report as per Registry

Name of the company	INNOVASSYNTH TECHNOLOGIES [INDIA] LIMITED
Presented By	A. R. GADKARI COMPANY SECRETARY
1) Date and description of instrument creating the change	Memorandum of entry dated 02.09.2005. the company has created equitable mortgage by deposit of title deeds 02.09.2005
2) Amount secured by the charge/amount owing on the securities of charge	Terms loan of Rs. 260.000 Millions from HDFC and interest and other dues and credit facilities of Rs. 280.000 Millions from Vijaya Bank and interest and other dues.
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	First charge in favour of HDFC and second charge in favour of Vijaya Bank on the immovable assets of the company including plant and machinery on all the piece and parcel of land and buildings together with fixed assets at Khopali Dist Raigad more particularly described in the first schedule of the memorandum of entry.
4) Gist of the terms and conditions and extent and operation of the charge.	HDFC Limited The rate of interest on the loan is equivalent to 6 month USD Libor plus 450 basis points. The ROI on the loan is payable monthly. The said ROI is reset on 1^st November and 1^st May of each year. The terms of loan is 48 months having commenced from 01.05.2004 Vijaya Bank CC [H] – Interest at PLR i.e. @ 11.00 % at present [floating] PCL / FDBP / FUDBP – interest @ 7.5 % p.a. as per FOC 16.04 ILC / FLC – Commission and charges as per HO Gen. Cir. 14.2000 on FLC and HOCC 01.2004 BG – Commission as per HOCC 01.2004
5) Name and Address and description of the person entitled to the charge.	Housing Development Finance Corporation Limited Ramon House H T Parekh Marg, 169, Back Bay Reclemation Churchgate, Mumbai – 400020 Vijaya Bank Industrial Finance Branch Wallace Street New Excelsior Building Mumbai - 400001
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.	--

AS PER WEBSITE

OVERVIEW

Ø They provide advanced synthetic chemistry capabilities and develop molecules from milligram scale to multiton scales

Ø They offer broad range of standard technologies

Ø Their response time is very quick and efficient

Mr. S.B. Ghia

Chairman

After completing his MBA from the Bowling Green University, USA, he is Involved in running the organization since 1970. He is the Chairman of Innovassynth Technologies(I) Limited, Futura Polyesters Limited and Sonata Software Limited He is also a promoter of these companies. In addition, he is on the board of directors of many other Indian companies.

Dr. B.Sahu

CEO & President

He is a Doctorate in Management, from IISC, Bangalore and fellow in Management from Wharton Business Group. He has more than 29 years of experience in various leading companies in India like TATAs, Indian Oil, Ashok Leyland and Teaching Assignment with leading India management Institutes. Since 1985, He is with the Group. As a senior management team member, he has handled strategic assignments, business diversification and management of change in the Group. He is widely traveled and has more than 25 publications to his credits. He is also the Executive Director and president - HRD and administration of Futura Polyesters limited.

Mr. S.C. Nanda

Director (Finance,  Supply Chain and Works)

He is a Chartered Accountant and Company Secretary and Master of Commerce from Delhi School of Economics. He is a Law Graduate from Delhi University. He has 18 years of experience. Prior to joining Innovassynth Technologies (I) Limited he was working with Jindal Group and Ranbaxi Laboratories. He is an important member of the team since 1996.

Dr. BalkrishnaK. Kulkarni

Director (R & D and Business Development & Chief Technology Officer)

He is a Doctorate in Synthetic Organic Chemistry with 11 publications to his credit. He joined Aventis Pharma (Formerly Hoechst India Limited). And worked there for 11 years in Drug Discovery and Process research areas. Later, he changed his job to Targof Pure Drugs Limited at Hyderabad, where he was responsible for overall technical matters. He has been with Innovassynth since 1997. He is mainly responsible for starting the 'Custom Synthesis' activity. He was also responsible for commissioning and optimizing production for contract manufacture project in collaboration with Ciba Specialty Chemicals, Switzerland.

Mr C Sankar

Asst. Vice President (R& D and Business Development)

Mr C Sanakar has joined Innovassynth as AssociateVice President (R & D and Business Development) on Monday the24th October 2005. Mr Sankar is an M.Sc graduate from University of Madras with a long working experience of around 20 years in various industries. He has worked with different organizations like Nicholas Piramal - Chennai, Sankar Speciality Chemicals Limited Chennai, Alembic Limited - Baroda, Sun Pharma - Panoli, Targo Pure Drugs Limited- Hyderabad and Hoechest - Mumbai. His last assignment was with Nicholas Piramal India Limited as Head R & D - Chennai location.

Mr. L V Sridhar

Asst. Vice President – Engineering & EHS

Mr. L V Sridhar is heading the Engineering function at Innovassynth as Assistant Vice President-Engineering. Mr. Sridhar completed his Bachelor of Technology (B .Tech.) from the Institute of Technology, BHU-Varanasi in the year 1985. He joined their organization in the year 2003 from Hindustan Lever Chemicals, Haldia where he handled the entire gamut of Plant Maintenance function. Prior to that, he had a long stint with National Organic Chemical Industries Limited (NOCIL), Thane where he worked close to 17 years. His core competence area are Project Management, Planning and Implementation and Engineering Plant Maintenance in the Process Industry.

Dr. Sanjay Suresh Puro

Asst. Vice President – Production

Dr. Sanjay Suresh Puro joined Innovassynth as Plant Manager in January, 2002. He was promoted to the position of Sr. Manager (Production) in April 2003. Recently he is promoted to the position of Asst. Vice President - Production in April 2006. He is responsible for entire contract manufacturing activity of an intermediate for CIBA Specialty chemicals. He is M. Sc. (1989) and Ph. D. (1993) from University of Mumbai in Organic Chemistry. He is having versatile experience in various Pharmaceutical and Chemical companies like Wyeth Lederle Limited, Khandelwal Laboratories Limited, Bellapur Industries Limited and Amritlal Cemaux Limited before joining Innovassynth.

OVERVIEW

Innovassynth Technologies (I) Limited formerly known as Chemicals Division of Indian Organic Chemicals Limited came in to existence since 1^st August 2002. It is a part of the well-known business group involved in activities like polyester fiber, polymers, pre-forms, and computer software among others.

The company is catering to the needs of customers in the area of 'knowledge based R & D services' for the last 5 years, which include:

-Contract R & D

-Custom Synthesis

-Contract Manufacture

In a very short period the company has established its name as a reliable partner in above area of activities and has joined hands with many prestigious companies in the field. The company has identified NUCLEOSIDES as a niche area and earned reputation as a supplier of various protected Nucleosides and a partner for Process research.

The company is involved in business with well-known companies in various fields like pharmaceuticals, perfumes, agro chemicals, and fine and speciality chemicals. With two sites at its disposal, one already active at Khopoli near Mumbai and the other in the development stage at Chennai, It has chalked outambitious plans to move in to GMP and FDA approved facilities and is on a fast track to achieve them.

The company has also formed a Limited Liabilities Company named "Austin -Innovassynth Technologies LLC. "in USA in collaboration with Austin Chemicals Company INC., USA for strategic business development and project management processes. Austin Chemicals Company is a 130 million dollar U.S. based Company mainly involved in business of development and implementation for supply of intermediates and raw materials to major pharmaceutical companies in USA and Europe. This joint venture company will help Innovassynth in their business development and marketing effort for catering to major pharmaceutical companies across the world.

BUSINESS SEGMENTS

1. Pharma Intermediates 

Innovassynth offers intermediate products required for bulk drugs as well as New Drugs under development. Being a service company, Innovassynth has no issues with regard to Intellectual property rights. Moreover, it has formed a joint venture company in USA with Austin Chemicals Inc., US, which acts as a marketing arm for Innovassynth.

2. Nucleosides andNucleotides 

Innovassynth has identified this as the ‘Niche’ area. It has been working in this field since last 4 years and developed the skill sets for handling mostly all types of compounds. Their specialization is in the scaling up of the various reactions. Column chromatography on kilo scale is aspecial feature of their pilot plant for Nucleosides and Nucleotides.

3. Flavour and Fragrance Chemicals

Innovassynth has an established base in USA to market the Flavour & Fragrance chemicals in US and European markets. Innovassynth products fulfill the odour demands of the products, which is aprimary requirement in this field.

4. Nutraceutical Products

Innovassynth has recently made a foray into this area. It has identified a few products which are of synthetic and standardized herbal extracts. A full-fledged laboratory has been set up to develop the products. In the meantime, a synthetic product is already in production and being marketed in USA through its associate company in US. Another herbal based product is in the final stage of commissioning.  A few more products are in the pipeline.

5. Fine Chemicals /Intermediates

Innovassynth is dealing with big US catalog companies to develop and provide high value fine chemicals and intermediates. It is also negotiating with European Fine Chemicals companies to participate in the outsourcing program of these companies.

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	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		31

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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