MIRA INFORM REPORT

Report Date :

16.05.2007

IDENTIFICATION DETAILS

Name :	VESUVIUS INDIA LIMITED

Registered Office :	P-104, Taratolla Road, Kolkata – 700 088, West Bengal,

Country :	India

Financials (as on) :	31.12.2006

Date of Incorporation :	1991

Com. Reg. No.:	52968

TAN No.: [Tax Deduction & Collection Account No.]	CALV00709C CALV01863B

PAN No.: [Permanent Account No.]	AAACV8995Q

Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges.

Line of Business :	Manufacture of continuous casting refractories.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 5485000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experience 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 :	P-104, Taratolla Road, Kolkata – 700 088, West Bengal, INDIA.
Tel. No.:	91-33-24012842 / 3898/ 0215
Fax No.:	91-33-24013976 / 1235
E-Mail :	vesuviusindia@in.vesuvius.com
Website :


Factories :	v P-104, Taratolla Road, Kolkata – 700 088, West Bengal Tel. No. 91-33-24012842 / 3898 / 2015 / 0237 / 6949 Fax. No. 91-33-24012909 / 1235 v Plot No. 13, 14 and 15, Block “E”, IDA Autonagar, Visakhapatnam – 530012 Tel. No. 91-891-22749120/22755419/22755408 Fax. No. 91-891-22587511 E-mail. tumma.antony@in.vesuvius.com v 212/B, G.I.D.C Estate, Mehsana 384002, Gujarat Tel. No. 91-2762-252948/949 Fax. No. 91-2762-2252909 E-mail. anil.raut@in.vesuvius.com

DIRECTORS

Name :	Dr. Saibal Kanti Gupta
Designation :	Chairman

Name :	Mr. Biswadip Gupta
Designation :	Managing Director
Age	53 years
Qualification	B.E. (Metallurgy) MBA
Experience	32 years
Date of Joining	01.02.1992
Previous Employment	Consultant Director of Indian Operation, Vesuvius Corporation S.A., Switzerland

Name :	Mr. Jean Pierre Malherbe
Designation :	Director


Name :	Mr. Claude Dumazeau
Designation :	Director

Name :	Mr. Alan John Ridley
Designation :	Director

Name :	Mr. Shekhar Datta
Designation :	Director

Name :	Mr. Nitendra Mohan Ghose
Designation :	Director

Name :	Mr. Tanmay Kumar Ganguly
Designation :	Chief Operating Officer

Name :	Mr. Taun Kanti Basu
Designation :	Executive Director - Sales


Name :	Mr. Jean Philippe Jimenez
Designation :	Technical Manager
Date of Birth/Age :	31 years
Qualification :	Mechanical & Material Engineer
Experience :	3 years
Date of Appointment :	01.11.1997
Previous Employment	Vesuvius U K, International Project Engineer

Name :	Mr. Sushant Kumar Bandyopadhyay
Designation :	Executive Director –HRD

Name :	Mr. Bappaditya Chakraborty
Designation :	Executive Director – Projects

Name :	Mr. Snajay Datta
Designation :	Executive Director – Finance

Name :	Mr. Narayan Chandra Mukharjee
Designation :	Consultant Director

Name :	Mr. Sujit Ghosh
Designation :	General Manager – Foundry

Name :	Mr. P. K. Narayan
Designation :	General Manager – Linings

Name :	Mr. Subrata Roy
Designation :	General Manager – Floe Control

KEY EXECUTIVES

Name :	Mr. Taposh Dominic Roy
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Vesuvius Group Limited U.K.	11277650	55.57 %
Foreign Institutional Investors & OCB	244766	1.21%
Non resident Indian	193925	0.96%
Indian Financial Institutions	620616	3.06%
Nationalized Banks & Mutual Funds	3849144	18.96%
Other Bodies Corporate	572768	2.82%
Individual & Others	3524314	17.36%
Clearing Member with NSDl	12897	0.06%
Total	20296080	100 %

BUSINESS DETAILS

Line of Business :

Manufacture of continuous casting refractories.

Products :

Item Code Number	Products Description
69.03	Industrial Ceramics for Continuous Casting and Pouring of Molten Metals Slide Gate Plates and Nozzles
38.16	Refractory Ceramics for Industrial Use
69.03	Carbon & Graphite Products

Imports :

Products :

---

Countries :

Belgium, France and UK.

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Crucibles, Graphite Crucibles & Silicon Carbide Crucibles	MT	1,500
Refractories (Shaped ) Refractories (Unshaped )	PCS TONS		426.600 39,600
Refractories (Shaped ) Other Goods – Trading	PCS			10,528
Refractories (Shaped ) Refractories (Unshaped )	PCS TONS			321,136 24,408

GENERAL INFORMATION

Suppliers :

Maersk Wooden Works
B.T. Enterprises
Pattern & Allied Works
Poly Packaging
Hanu polymers
Bostools Corporation
Apees Engineering
Jalan Hi- Mech Limited

No. of Employees :

255

Bankers :

Hongkong Bank, 31, B B D Bagh, Kolkata – 700 001, West Bengal
United Bank of India, Taratolla Road, Kolkata – 700 088, West Bengal
State Bank of India, Commercial Branch, Park Street, Kolkata – 700 017, West Bengal

31.12.2006 (Rs. In Millions )

Facilities :

Unsecured Loans

Short Terms

-Overdraft from bank

42.112


Banking Relations :	Satisfactory

Auditors :
Name :	Lovelock & Lewes Chartered Accountants,
Address :	4, Lyons Range, Kolkata – 700 001, West Bengal, India

Memberships :	q Confederation of Indian Industry

Associates	v Metacon SA v Vesuvius Advanced Ceramics (Suzhao) Company Limited v Vesuvius Japan Inc v Vesuvius Karlstad AB v Vesuvius Nederland BV v Vesuvius Scotland Limited v Vesuvius Refractories de Venezuela C.A. v Vesuvius Refractories Limited v Vesuvius Scandinavia AB v Vesuvius Scotland Limited v Vesuvius Services s.r.o. v Vesuvius Skawina Materialy Ogniotrwale Sp z. o. o. v Vesuvius Slavia s.r.o v Vesuvius South Africa (Pty) Limited v Vesuvius Skawina Materialy Ogniotrwale Sp z.o.o. v Vesuvius TK Refrakter Sanyi ve Ticaret AS v Vesuvius USA Corporation v Vesuvius UK Limited v Vesuvius Zyalons Holdings Limited v Vesuvius-Premier Refractories (Holdings) Limited v Vesuvius-Premier Refractories (Overseas) Limited v Vesuvius-Premier Refractories Limited v Vesuvius-VGT-DYKO GmbH v Vesuvius Glass Asia Sdn Bhd v Wainray Limited v Wauconda Tools and Engineering Company Inc v Wilkes-Lucas Limited v Witmetaal Belgium NV v Wunsch Chemie GmbH v St Petersburg Institute for Refractories (SPIRE) v Stern Metals Inc v Stern/Leach Company v Stern/Veenerbeck Company v Sterngold Restorative Systems v Sterngold ImplaMed do Brasil Ltda v Tecodev SA v The Premier Chain Company Limited v Thomas Marshall (Loxley) Limited v Thomas Marshall Overseas Investments Limited v Tokai Meltex Inc v Veservice Limited v Vesuvius (V.E.A.R) S.A. v Vesuvius Administration Pty Limited v Vesuvius Advanced Ceramics (Suzhou) Company Limited v Vesuvius Becker and Piscantor GroBalmeroder Schemelztiegelwerke GmbH and Company v Vesuvius Belgium N.V. v Vesuvius Becker and Piscantor GroBalmeroder Schemlztiegelwerke GmbH v Vesuvius Finland OY v Vesuvius Canada Ceramics Limited v Rotec BVBA v Rotec France SA v Rycroft Limited

Holding Company and Ultimate Holding Company

· Vesuvius Group Limited

· Cookson Financial Limited

· Cookson Group Plc.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount

25000000	Equity Shares	Rs.10/- Each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

20286080	Equity Shares	Rs.10/- Each	Rs.202.960 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2006	31.12.2005	31.12.2004
SHAREHOLDERS FUNDS
1] Share Capital		203.000	203.000	203.000
2] Share Application Money		0.000	0.00	0.000
3] Reserves & Surplus		1168.400	1039.7000	834.800
4] (Accumulated Losses)		0.000	0.000	0.00
NETWORTH		1371.400	1242.700	1037.800
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.00
2] Unsecured Loans		42.100	0.000	0.000
TOTAL BORROWING		42.100	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		1413.500	1242.700	1037.800

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		675.500	519.600	480.100
Capital work-in-progress		28.000	139.400	33.900

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	345.400	370.300	264.300
	Sundry Debtors	874.900	818.700	577.300
	Cash & Bank Balances	19.400	96.400	175.500
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	787.400	641.000	135.700
Total Current Assets		2027.100	1926.400	1152.800
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	595.200	750.800	569.800
	Provisions	724.800	602.800	82.800
Total Current Liabilities		1320.000	1353.600	652.600
Net Current Assets		707.100	572.800	500.200

MISCELLANEOUS EXPENSES		2.900	10.900	23.600

TOTAL		1413.500	1242.700	1037.800

PROFIT & LOSS ACCOUNT

PARTICULARS		31.12.2006	31.12.2005	31.12.2004
Sales Turnover		3006.300	2440.600	1958.800
Other Income		45.100	29.800	38.200
Total Income		3051.400	2470.400	1997.000

Profit/(Loss) Before Tax		334.600	438.400	387.100
Provision for Taxation		122.700	151.900	144.600
Profit/(Loss) After Tax		211.900	286.500	242.500

Earnings in Foreign Currency :
	Export Earnings	614.746	404.444	N.A
	Commission Earnings	3.564	7.066
	Other Earnings	0.000	0.000
Total Earnings		618.310	411.510	N.A

Imports Value
	Raw Materials	403.749	396.315	N.A
	Stores & Spares	18.331	7.824
	Capital Goods	33.166	57.356
	Finished Goods	58.199	40.765
	Others	23.058	14.696
Total Imports		536.503	516.956	N.A.

Expenditures :
	Cost of Goods Sold	0.000	0.000	0.000
	Manufacturing Expenses	143.800	125.000	112.200
	Administrative Expenses	347.200	234.800	176.100
	Raw Material Consumed	1464.800	1111.000	849.500
	Salaries, Wages, Bonus, etc.	153.500	120.600	80.100
	Interest	22.800	13.100	10.200
	Excise Duty	295.700	255.300	228.200
	Power & Fuel	88.700	76.700	59.900
	Depreciation & Amortization	66.500	54.400	38.100
	Other Expenditure	154.100	71.200	49.200
Total Expenditure		2737.100	2062.100	1603.500

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.03.2007 1^st Qtr.
Sales Turnover	697.000
Other Income	08.000
Total Income	705.000
Total Expenditure	572.000
Operating Profit	133.000
Interest	3.000
Gross Profit	130.000
Depreciation	23.000
Tax	39.000
Reported PAT	67.000

200703 Quarter 1 --------------- Notes Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (33.00) million Consumption of Raw Materials Rs 266.00 million Purchase of Finished Goods Rs 135.00 million Staff Cost Rs 45.00 million Other Expenditure Rs 159.00 million Tax Includes Provision for Current Tax Rs 37.00 million Deferred Tax Rs 1.00 million Fringe Benefit Tax Rs 2.00 million EPS is Basic and Diluted 1 The Company is primarily a manufacturer and trader of refractories and is managed organisationally as a single unit. Accordingly, the Company is a single segment company. 2 Provision for current taxation has been made with reference to the profit for the quarter and in accordance with the provisions of Income Tax Act, 1961 and Rules framed thereunder. The ultimate tax liability for the assessment year 2007-2008, however, will be determined on the basis of total income for the year ending on March 31, 2007. 3 Freehold land has been acquired near our existing factory at Visakhapatnam for another monolithics factory whose installed capacity will be 50,000 tons per annum. 4 Previous period's figures have been regrouped andfor rearranged wherever necessary, 5 These unaudited results have been subjected to 'Limited Review by the Auditors of the Company. 6 Investor complaints as on 1.01.2007 - Nil; complaints received during the quarter-1; complaints resolved during the quarter - Nil; Number of complaints on 31.03.2007-1. g) This statement has been taken on record by the Board of Directors at their meeting held on April 16, 2007 and has been approved for release

KEY RATIOS

Particular	31.12.2006	31.12.2005	31.12.2004
Debt-Equity Ratio	0.02	0.00	0.00
Long Term Debt-Equity Ratio	0.00	0.00	0.00
Current Ratio	1.46	1.53	1.75
Fixed Assets	3.10	3.00	2.78
Inventory	8.40	7.69	7.87
Debtors	3.55	3.50	3.72
Interest Cover Ratio	19.51	34.47	38.95
Operating Profit Margin(%)	17.01	20.73	22.23
Profit Before Interest And Tax Margin(%)	14.80	18.50	20.28
Cash Profit Margin(%)	11.15	13.97	14.33
Adjusted Net Profit Margin(%)	8.94	11.74	12.38
Return On Capital Employed(%)	33.67	40.20	42.39
Return On Net Worth(%)	20.56	25.13	25.07

STOCK PRICES

Face Value	Rs.10/-
High	Rs.261.95
Low	Rs.260.00

LOCAL AGENCY FURTHER INFORMATIO

HISTORY

The company was incorporated on 6^th September, 1991 at Kolkata in West Bengal having Company Registration Number 52968.

The company was originally incorporated as Vesuvius Refractories in Sepetmber, 1991. The name was subsequently changed to Vesuvius India in November’ 1992. The company was promoted by the Vesuvius Group, U.K., which at present holds 55.57% stake in the company, in association with Mr. Biswadip Gupta.

The company came out with a public issue in September 1993 to finance the setting up of and unit to manufacture 3000 tpa of specialised refractories. Later in 1996-97 it came out with a right issue at a premium of Rs 30/- per share to the existing equity shareholders in the ratio of two equity shares for every five equity shares held.

The company installed a mixing plant for backward integration in the manufacturing process, and a second plant to expand the production capacity. These measures initiated to achieve better-cost control have paid off.

The company acquired the assets and manufacturing rights of KSR International (India) Limited for a consideration of Rs. 21 millions. The company also acquired the monopolistic plant at Visakhapatnam from Carborundum Universal and also assigned the technical know-how from Answer Technologies Inc, U.S.A. for manufacture of Blast Furnace Casthouse Refractories and General Purpose Pumpables.

In 2000-2001 the company has ventured into non-steel industry with its monopolistic business using new technology.

The company has acquired the crucible manufacturing unit of Diamant Carbon & Graphite Products Ltd during March 2003 at Mehsana,Gujarat.The technology has been sourced from Vesuvius,Germany.This is third manufacturing unit of the company.Crucibles are used in the Non-ferrous industry and this acquisition enhances the foray into the non-steel sector.

The company has expanded the installed capacity of Refractories(Shaped) during the year 2004 by 90600(Pieces) and with this expansion,the total capacity has risen to 419600(Pieces).

Trade Reference :

v Maersk Wooden Works

v B. T. Enterprises

v Gardenreach Electro Equipments

v Bostools Corporation

v Apees Engineering

v Lakshminarayan Girdharilal

v National Carbon and Graphite Products

v Jalan Hi-Meck Limited

v Kamala Board Box

Fixed Assets:

· Leasehold Land

· Buildings Freehold

· Plant And Machinery

· Electrical Installations

· Furniture And Fittings

· Office Equipment Including Computers And Motor Vehicles.

Operating & Financial Performance, Internal control:

The Company has achieved total income of Rs 2,758 million for the current year, i.e., an increase by 24% over 2005. The sustained revenue growth has been achieved due to increased volume of monolithics and precast shapes business and sales to customers in markets outside India. This year we have made our entry into certain products which command relatively lower profitability, thereby impacting our margins. A major exercise was conducted during the year to review and assess the debtors balances with customers where we have long term contracts. The review and a fairly detailed reconciliation process revealed the need to restate the actual amount receivable from these customers and as a result, as a prudent measure, Rs 87 million of receivables relating to prior years was written off during the year.

Company has in place an established internal control system designed to ensure proper recording of financial and operational information and compliance of various internal controls and other regulatory and statutory compliances. Three firms of Chartered Accountants throughout the year conduct the internal audit of the Company's various operations including the three factories at Kolkata, Visakhapatnam and Mehsana. Their reports are submitted to the Audit Committee.

The first Total Tundish Management contract was received by the Company during the year. This was a significant milestone in our journey towards providing customers with more value added solutions. New more efficient Slide Gate equipments were also introduced to customers in the year. The foray into new areas like sponge iron industry, aluminium and cement industry by the Linings Business Unit have given good results with increased market share. Monolithics continues to be the growth driver with increased volume of business and penetration into new markets. A new manufacturing facility is being added at Visakhapatnam to enhance capacity of monolothics and precast shaped products to cater to the growing needs of our Lining Business.

Export sales to an overseas customer has doubled during the year. This was the result of continuous customer engagement and. improvements in efficiencies benefited by the overseas customer.

The Company continues its sustained revenue growth this year with total income having shown a growth of 24% over previous year and a CAGR of 21% over the previous five years. Dividend @35% i.e., Rs. 3.50 per share has been recommended by the Board of Directors in recognition of continued good performance. Share prices had reached an all time high during the year.

Vesuvius Diary:

The expansions at Mehsana and Visakhapatnam Plants were completed during the year and both Plants commenced commercial production. Additional land near our existing Visakhapatnam plant is being acquired for a second monolithics facility to support increased demands for the Linings Business.

This year also witnessed visits by senior executives of the Group for providing continuous support to the Indian operations. Mr. Francois Wanecq, President and CEO of Vesuvius Group was present at the Annual General Meeting held on April 20, 2006 and met the shareholders. He has joined the Board of Directors of the Company with effect from March 1, 2007 reflecting the greater commitment and support of the Group.

The Company continues to support local initiatives to improve infrastructure and increase business opportunities as well as support in corporate social responsibility initiatives.

ISO Certification:

All the three Plants at Kolkata, Mehsana and Visakhapatnam have been approved by Lloyds Register Quality Assurance to follow IS/ISO 9001:2000 standards. The process of obtaining ISO 14001 certification for the Kolkata Plant has been undertaken and would be completed during the year 2007.

Segmentwise performance:

The Company is primarily a manufacturer and trader of refractories and is managed organizationally as a single unit. Accordingly, the Company is a single business segment company. Geographical (secondary) segment have been identified as domestic sales and exports.

Industry Structure & Developments, Outlook, Risks & Concerns:

Like any company that trades in refractory based solutions, steel industry comprises the biggest group of customers. Hence anything that affects the steel industry will have its one off effect on our business. In the year gone by, steel output rose speedily and major players have fast tracked their brownfield plans and a few greenfield projects have also been announced.

With sustained high GDP growth and improvement in quality life, demand for steel and steel products will remain high in this country. The brownfield and greenfield projects of the major steel plants would also contribute to a greater demand and provide huge opportunities for refractory industry. With this in mind, your Company is fairly confident of continued business growth. Expansions at our Mehsana and Visakhapatnam Plants have been completed and the expansion at Kolkata factory will be undertaken in appropriate time.

During the year a risk analysis and assessment was conducted in line with the Group requirements and no major risks were noticed.

Business Line

Subject is working on plans to double the capacity of its continuous casting refractory plant in Kolkata at an estimated investment of Rs 400.000 (£5 million).

The company, which has completed 10 years of operations, has declared a final dividend of Rs 3.25 per share (32.5 per cent).

Along with the 10th anniversary special dividend of 10 per cent that was paid out in March 2004, the total dividend for the 2004 calendar year works out to 42.5 per cent, or Rs 4.25 per share of the face value of Rs 10 each.

Addressing a news conference after the company's annual general meeting here on Tuesday, Mr Gian Carlo Cozzani, President and CEO of the Vesuvius group, said the first phase of Vesuvius India's expansion plan, envisaging 50 per cent augmentation of the refractory manufacturing capacity, would be over by 2007. The next phase would be over by 2008. Currently, the plant in Kolkata has the capacity to manufacture 800 pieces of refractories per day.

Mr Cozzani said Vesuvius India is also looking at opportunities for acquisitions in steel and non-steel areas. He touched upon the scope for refractories in the aluminium, glass and foundry segments. He said, "The wind is blowing in the right direction and the Vesuvius Group is committed to investments in countries such as India and China."

Speaking on the occasion, Mr Biswadip Gupta, Managing Director of Vesuvius India, said land for the expansion project had been identified and the exact quantum of investment could be pegged "after we decide upon the technology that we wish to put in place."

Mr Gupta said the company had achieved a topline growth of 30 per cent in 2004 and the growth in the first quarter of 2005 was 27 per cent. He hoped the company would continue to maintain the growth rate in the current calendar year. "As such, we see no negatives in the growth target that we are planning."

In 2004, Vesivius India recorded a turnover of Rs 1773.900 millions , up from Rs 1361.300 millions in 2003. The profit after tax in 2004 was Rs 242.400 millions , against Rs 208.500 millions in 2003.

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.40.60
UK Pound	1	Rs.80.13
Euro	1	Rs.54.87

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	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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

MIRA INFORM REPORT

345.400

874.900

19.400

0.000

787.400

2027.100

595.200

724.800

1320.000

707.100

HISTORY

Unit