MIRA INFORM REPORT

Report Date :

01.11.2007

IDENTIFICATION DETAILS

Name :	HAZEL MERCANTILE LIMITED
Registered Office :	181, Ashok Centre, 2^nd floor, G T Hospital Complex. L.T. Road, Mumbai – 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.10.1995
Com. Reg. No.:	11-93674
CIN No.: [Company Identification No.]	L51900MH1995PLC093674
TAN No.: [Tax Deduction & Collection Account No.]	MUMH05177E / MUMH04309E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Merchants, traders, commission agents, buying agents, selling agents, brokers, adapters, buyers, sellers, importers, exporters and to trade and deal in goods, gems and jewellery, produce articles and merchandise of any kind whatsoever and without prejudice to the generality to the foregoing agricultural commodities, food grains cash crops, cotton, tea, jute, coffee, fruit, spices, vegetables, flowers, milk, milk products, meat, seeds, raw materials, required by industries, semi finished products or industrial machinery equipments, chemicals intermediates, electrical goods, black boards, plywood’s, laminated sheets, textile yarns and fabrics, garments, furniture, minerals ores and oils as wholesaler or retailers on the basis of ready delivery or forward contact or on commission basis.

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 3000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well-established trader. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are reported as fair. General financial position is satisfactory. 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 :	181, Ashoka Centre, 2^nd Floor, G. T. Hospital Complex, L. T. Road, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91–22–2261 0282 (3 Lines)
Fax No.:	91–22–2262 0553
E-Mail :	indiafl@bom3.vsnl.net.in / corp@hmlindia.com / mktg@hmlindia.com admin@hmlindia.com
Website :	http://www.indiafl.com http://www.hmlindia.com
Area :	Leased
Marketing Office :	1410, Maker Chambers V, Nariman Point, Mumbai – 400 021, Maharashtra
Tel. No.:	91-22-22832170 (5 Lines)
Fax No.:	91-22-22821605
E-Mail :	mktg@hmlindia.com
Corporate Office :	701/712A, Embassy Centre, Nariman Point, Mumbai – 400 021, Maharashtra
Tel. No.:	91-22-22824444 (12 Lines)
Fax No.:	91-22-22041411 (Logistics)/2282 4440 (General)
E-Mail :	corp@hmlindia.com@www.hmlindia.com
Website :	http://www.hmlindia.com
Branches :	· SEZ Office: Address: shed No. 250, sector III, KSEZ, kandla, Gandhidham, Gujarat Email: hazelmercantile@hotmail.com · Delhi · Kolkata, West Bengal · Visakhapatnam, Andhra Pradesh

DIRECTORS

Name :	Mr. Nitin Kumar B. Didwania
Designation :	Director
Address :	172, Kshitij, 47, Napean Sea Road, Mumbai – 400036, Maharashtra
Date of Birth/Age :	23.06.1974
Date of Appointment:	01.04.1997
Name :	Ms. Sushmadevi D. Didwania
Designation :	Director
Address :	172, Kshitij, 47, Napean Sea Road, Mumbai – 400036, Maharashtra
Date of Birth/Age :	13.09.1955
Date of Appointment:	01.04.1997
Name :	Mr. Vishal V. Sukhani
Designation :	Director
Address :	Prakash Bhavan, 3^rd Floor, Thakurdwar, C.P.Tank, Mumbai, Maharashtra
Date of Birth/Age :	15.01.1976
Date of Appointment:	06.01.1999

KEY EXECUTIVES

Name :	Mr. Ashok Thakurdas Khemchandani
Designation :	Company Secretary
Address :	F -124, Anjali Vaswani Marg Seven, Bungalows, Andheri (West), Mumbai – 400 061, Maharashtra
Date of Birth/Age :	18.08.1956
Date of Appointment:	05.01.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Nitin Kumar B. Didwania	7499050
Mr. Vishal Sukhani	100
Ms. Sushma Devi D. Didwania	450
Mr. Ajay Jain	100
Mr Yash Gala	100
Mr. Saurabh Sanghavi	100
Mr. Sanjay Busa	100

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Directors or relative of directors	99.99
2	Other top fifty (50 ) shareholders	0.01

BUSINESS DETAILS

Line of Business :

Merchants, traders, commission agents, buying agents, selling agents, brokers, adapters, buyers, sellers, importers, exporters and to trade and deal in goods, gems and jewellery, produce articles and merchandise of any kind whatsoever and without prejudice to the generality to the foregoing agricultural commodities, food grains cash crops, cotton, tea, jute, coffee, fruit, spices, vegetables, flowers, milk, milk products, meat, seeds, raw materials, required by industries, semi finished products or industrial machinery equipments, chemicals intermediates, electrical goods, black boards, plywood’s, laminated sheets, textile yarns and fabrics, garments, furniture, minerals ores and oils as wholesaler or retailers on the basis of ready delivery or forward contact or on commission basis.

Products:

· Mugs · Metals · Paper · Chemicals · Plastics · Pharma · Marine

GENERAL INFORMATION

Suppliers :

· Adnet Technologies Private Limited

· Balaji Warehouse

· Time Network Express Service

· United Storage and Tank Terminal Limited

· Kesar Enterprises Limited

· Essar Refrigeration Company

· Kamdar Enterprises

Customers :

· Aarti Drugs Limited

· Ashok Company

· Aimco Pesticides

· B. K. Oil and Solvents

· Chetan Overseas Private Limited

· Climax Trading Company

· Bayer India Limited

· Deepanshu Impex

· Ion Exchange (India) Limited

· Kamal Industry

· Kejriwal Paper Limited

· J. B. Khokhani and Company

· Mahalaxmi Dyes and Chemicals

· Modi Enterprises

· Ransat Services Limited

· Ratanguru Stainless International

· R. K. Enterprises

· Sheetla Maa Trading Company

· Sum Beam Trading Inc.

· Thermax Limited

· Vam Organic Chemicals Limited

· Shree Nealkanth Overseas

· United Phosphorus Limited

No. of Employees :

70

Bankers :

v Corporation Bank, Mumbai

v UCO Bank, Mumbai

v Union Bank of India, Mumbai

v Federal Bank, Mumbai

v Jankalyan Sahakari Bank Limited, Mumbai

v Global Trust Bank, Mumbai

v Punjab National Bank, General J. Bhosale Marg, Nariman Point, Mumbai – 400 021, Maharashtra

v (The company enjoys overdraft facility from it’s bankers)

v State Bank of India, Fort Branch, 214, D. N. Road, Mumbai – 400 001, Maharashtra

v State bank of Indore

Address: Fort Branch, 214, D N Road, Fort, Mumbai – 400 001, Maharashtra

Facilities:

SECURED LOAN	31.03.2005
	(Rs In Millions)
Overdraft with Punjab National Bank	53.327
Advance against Export Bills	30.000
Citi Bank Car Loan	0.000
Total	114.5575
UNSECURED LOAN	31.03.2005
	(Rs In Millions)
From Directors	10.621

Banking Relations :	Satisfactory
Auditors :
Name:	Shabbir S. Bagasrawala Chartered Accountants
Address :	Office No. 8, 1^st Floor, Narayan Niwas, 63, Aarey Road, Goregaon (West), Mumbai – 400 062, Maharashtra
Tel. No.:	91-22-28739939
Associates :	· Priceless Investment Private Limited · Sanman Trade Impex Private Limited No. 1-A, Shahnaz, 90, Napeansea Road, Mumbai, Maharashtra
Parents Company :	India Fintrade Limited - The company carries out its import activities through its affiliate company i.e. subject company which is located in L. T. Road, a prime market for trading of metals, industrial chemicals and petro-chemicals which enable the company to have a feel of the market and be with it at all times. The company itself is open and is quite competent to trade in all kinds of materials like specific, sensitive requirement of Government sector and Public Sector Undertakings. It has in the past provided service to specific technical requirements of government organizations like Indian Navy / ONGC etc.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity shares	Rs. 10/- each	Rs. 200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12500000	Equity shares	Rs. 10/- each	Rs. 125.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		125.000	75.000	90.000
2] Share Application Money		0.000	50.000	0.000
3] Reserves & Surplus		648.428	482.594	362.777
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		773.428	607.594	452.777
LOAN FUNDS
1] Secured Loans		257.139	135.551	83.327
2] Unsecured Loans		166.635	149.920	10.621
TOTAL BORROWING		423.774	285.471	93.948
DEFERRED TAX LIABILITIES		34.150	16.330	0.000
TOTAL		1231.352	909.395	546.725
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		128.721	134.576	6.241
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		6.023	1.695	1.179
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	638.257	400.668	309.573
	Sundry Debtors	1527.246	1170.197	878.034
	Cash & Bank Balances	154.802	125.631	124.895
	Other Current Assets	1.059	0.655	0.000
	Loans & Advances	224.664	212.060	33.337
Total Current Assets		2546.028	1909.211	1345.839
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1428.393	1127.512	800.925
	Provisions	22.706	10.103	7.481
Total Current Liabilities		1451.099	1137.615	808.406
Net Current Assets		1094.929	771.596	537.433
MISCELLANEOUS EXPENSES		1.679	1.528	1.872
TOTAL		1231.352	909.395	546.725

PROFIT & LOSS ACCOUNT

PARTICULARS			31.03.2007	31.03.2006	31.03.2005
Sales Turnover			5935.845	4003.851	2853.655
Other Income			15.161	5.315	6.238
Total Income			5951.006	4009.166	2859.893
Profit/(Loss) Before Tax			194.348	142.487	103.313
Provision for Taxation			25.877	20.532	2.500
Profit/(Loss) After Tax			168.471	121.955	100.813
Earnings in Foreign Currency :
	FOB value of exports		0.000	0.000	145.343
	Freight, insurance, Commission		0.000	0.000	2.716
Total Earnings			0.000	0.000	148.059
CIF Value of Imports
		Traded Goods	0.000	0.000	1340.039
Total Imports			0.000	0.000	1340.039
Expenditures :
	Purchases made for re-sale		5138.288	3387.573	0.000
	Salaries, Wages, Bonus, etc.		9.789	3.976	0.000
	Managerial Remuneration		1.200	0.600	0.000
	Payment to Auditors		0.296	0.265	0.000
	Interest		42.400	22.139	0.000
	Insurance Expenses		7.791	5.044	0.000
	Power & Fuel		0.782	0.635	0.000
	Depreciation & Amortization		7.581	1.482	1.762
	Trading and other Direct Expenses		0.000	0.000	2673.400
	Administrative expenses		0.000	0.000	18.011
	Selling and Distribution Expenses		0.000	0.000	13.708
	Financial Expenses		0.000	0.000	49.696
	Other Expenditure		548.527	444.962	0.000
Total Expenditure			5756.654	3866.676	2756.577

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.83	3.04	3.52
Net Profit Margin (PBT/Sales)	(%)	3.27	3.55	3.62
Return on Total Assets (PBT/Total Assets}	(%)	7.26	6.97	7.64
Return on Investment (ROI) (PBT/Networth)		0.25	0.23	0.22
Debt Equity Ratio (Total Liability/Networth)		2.42	2.34	1.99
Current Ratio (Current Asset/Current Liability)		1.75	1.67	1.66

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR REPORTS:

Performance:

During the year under review, the company has achieved turnover of Rs. 2859.893 millions as compared to Rs. 2211.480 millions in previous year and Net Profit is Rs. 100.814 millions as compared to Rs. 85.794 millions during the previous year. The Company is also emerging from a period of consolidation to one of growth. The strategies followed by the company will be focused and cost control.

The year under review continued to be average year for the industry. The net sales increased by 29.32%. With the condition in the market remaining extremely competitive the growth in revenues has been driven solely by volumes with prices realization having come down during the year. However, overall net profit increased by 17.50%.

Business Scenario:

The economic conditions in the country during the year under review have improved. Business scenario during the first half of the year were good but during the later part of the year , the market sentiment brightened due to political stability and good demand from the industries. The Company has been able to capitalize on the above and registered an increased sales turnover. The future augurs well for the Company.

The Company also proposes to venture into business of mining of iron ore and investments in infra structural projects including investment in tanks for providing storage services.

Human Resources:

The Company is assigning greater focus on developing Human Resources on a continuous basis for enhanced competency and development. The company strives to create an organization that nurtures the talents and enterprise of its employees, helping them to grow and fid fulfillment in an open culture.

Corporation identity number or foreign company registrations number of the company	L51900MH1995PLC093674
Name of the company	HAZEL MERCANTILE LIMITED
Address	181, Ashoka Shopping Centre, 2^nd Floor, G. T. Hospital Complex, L. T. Road, Mumbai – 400 001, Maharashtra, India
This Form is for	Creation of charge
Type of Charges	· Book debts · Movable Property
Particular of the charge holder	State Bank of India Address: Commercial Branch, NGN Vaidya Marg, Mumbai – 400 021, Maharashtra, India Email: kamalax_saraf@hotmail.com
Nature or description of the instrument creating charge	· Agreement of loan for Overall limit (Form C.1) · Agreement of Hypothecation of goods and assets(Form C.2) · Letter regarding the grant of individual Limits within the overall limit (Form C.5)
Date of the instrument creating charge	18.09.2007
Amount Secure by the charge	Rs. 50.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interests: SLC – 1% above the regular Working capital facilities as applicable vide sanction letter No. CB: AMT:IV/ 2007 DT. 12.03.2007 Terms of Repayment: Not Applicable Margin: · Finished goods: 25% · Book Debts / Receivables : 40% Extent and operation of the charge: 2^nd charge on current assets of the company Others: Not Applicable
Shot particulars of the Property charged	All P and F goods, B D and all other movable assets of the borrower Including documents of title to the goods, outstanding moneys, receivable including receivables by way of cash assistance and or cash incentives under the cash incentive scheme or any other scheme claims including claims by way of refund of customs / excise duties under the duty draw back credit scheme or any other scheme, bills, invoice, documents, contracts, insurance policies GTEES or engagement, securities, investment and right and the present machineries.

Name of the company	HAZEL MERCANTILE LIMITED
Presented By	The Company
1) Date and description of instrument creating the change	Letter of credit / Hypothecation agreement dated 01.09.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 100.000 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	First charge by way of hypothecation of company’s present and future stocks of various chemicals, metals, plastics, mugs and other raw materials and stores whether raw or in process of manufacture and all articles manufactured there from brought into stored or be in or about the company’s premises at Mumbai or elsewhere together with all goods covered by the documents accompanying with letter of Credit.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 2% above rate charge. The company declared that goods are free from any prior for charge or encumbrances security constituted by the said Cash Credit Other terms and conditions as per sanction letter
5) Name and Address and description of the person entitled to the charge.	State Bank of Indore Address: Fort Branch, 214, D N Road, Fort, Mumbai – 400 001, Maharashtra
6) Date and brief description of instrument modifying the charge	Letter of credit / Hypothecation agreement dated 20.11.2003
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.	01.09.2003 – original charge for Rs. 100.000 millions Now vide above referred agreement the bank has granted adhoc L/C, limit of Rs. 50.000 millions over and above the existing limit The said ahoc L/C limit is also secured by extension of hypothecation charge on Company’s stocks, goods, debts and documents accompanying the L/C

FIXED ASSTES:

· Land and Building

· Office Equipments

· Furniture and Fixtures

· Motor Car

Contingent liabilities:

Bank Gurantees given to various authorities to the tune of Rs. 3.976 millions.

OTHER INFORMATION:

It’s products range include:-

· Mugs

· Metals

· Paper

· Chamicals

· Plastics

· Pharma

· Marine

During the year under the report the company has registered itself with Kandla special economic zone (KSEZ) and with software technology parts of India (STPI) so as to carter to the overseas market in professional manner, using the infrastructure provided by these special zones. By which success in marketing of software products conceived and developed by the experienced and dedicated staff of the company was possible.

Profile:-

Subject is a young, dynamic multifaceted trading organization based in Mumbai, the commercial capital of India, dealing in a broad spectrum of products and services. Strong capital backing, highly proficient risk management capabilities, aggressive business development arms, the capacity to tap new emerging markets with relative ease and a motivated reservoir of intellectual capital combine to give them an edge over the competition. Drawing on their resources across industries, they are able to integrate their expertise from different arenas to device otherwise elusive solutions to customer requirements.

The company has associated offices in Singapore, London and Dubai, as well as branch offices in most Indian metropolises, each equipped with state of the art Management Information Systems. With a highly motivated team of 120 professionals and with storage and distribution facilities spread across the country, it strive to service suppliers, dealers and customers with unparalleled efficacy.

The scope of Business covers :-

v Imports :- Chemicals, Petrochemicals, Polymers, Pharmaceuticals, Metals, Dyes and  Dye Intermediates.

v Exports :- Paper and Its Auxiliaries, Chemicals and Ceramics

v Manufacturing :- Ceramic products, Chinaware and Paper Products.

v Trade Finance :- Structuring of trade debts, Securitisation.

New Ventures

With the new world riding on the wave of Information Technology, they have gauged its immense potential and have made an entry into this field by developing database management software. Datamining Application tools and Business Intelligence software for some clients in Singapore and India.

It undertaken manufacturing of Pharmaceutical Products in a neighboring country.

The company has made forays into specific areas of Infrastructure and are involved in prestigious Government Contracts.

A key area of growth over the last few years has been the import and distribution of chemicals and petrochemicals, positioning amongst India's foremost market makers.

The cultivation of a close rapport with each of suppliers as well as customer base has been instrumental to their growth, keeping them abreast of shifting supply concerns as well as formulating a set of protocol to ensure that any and all prevalent demand is met in a timely fashion.

Logistics team is highly conversant in delivery time optimization, having considered relevant factors such as costs, clearing, storage, distribution, etc.

The company presently maintain two prime logistical hubs which are fully equipped with state of the are storage terminals and warehousing facilities at Kandla, Gujrat and Nhavasheva, Mumbai, to facilitate distribution.

The company represent some of the global conglomerates for their distribution in India. They regularly import from companies like ICC, IPCC, Sumitomo, Exxon Mobil, Petrochem, SABIC, Itochu, OCI Corporation, Aekyung, Kolmar, PetroSA just to name a few and distribute to leading Indian corporates and multinationals.

An overview of the major products are deal in:-

CHEMICALS
Alcohols	ISO Propanol, N-Butanol, Iso Butanol, Methanol, Ethanol-96 / 99.9%, 2-Ethyl Hexanol, Mossatanol L, 120
Chlorinated Solvents	Methylene Chloride, Trichloroethylene, Perchloroethylene
Ethanolamines	Monoethanolamine, Diethanolamine, Triethanolamine-85% / 99.9%
Esters	Ethyl Acetate, Butly Acetate

Glycols	Mono-Ethylene, Di Ethylene
Glycol Ethers	Ethyl Glycol, Butyl Glycol
Hydrocarbons	Xylene, Toulene, Solvent Naphtha
Ketones	Acetone, MEK, MIBK, Cyclohexanone
Monomers	Butyl Acrylate, Styrene, Vinly Acetate
Oleochemicals	Fatty acids, Glycerine, Straric Acids and Rubber Grade
Plasticizers	Di Butyl Pthalate, Di Octyl Phthalate
Other Chemicals	Phthalic Anhydride, Maleic Anhydride, Acetic Acid, Pentaerythritol, Phenol, Titanium Dioxide, Paraffin Wax, Dyes and Dye Intermediates.

METALS
Non Ferrous	Copper, Nickel, Tin, Aluminium, Zinc, Lead.
Ferrous	HMS I/II, CR/HR Coils, H/I Beam, Rails, Stainless Steel, etc.

POLYMERS

 HDPE, LDPE, LLDPE, HIPS, GPPS, PP, PVC, ABS

PAPER

Hardwood Pulp, Softwood Pulp, Coated Paper and Board, Inkjet Paper, Copier Paper.

CERAMICS:

The company supply premium quality Chinaware Dinnerware and Ceramic Giftware items manufactured in an ISO 9002 certified manufacturing facilities and are amongst the largest exports of Ceramic Mugs and Dinnerware from India. The company also deals in Ceramic Tiles and sanitary Ware. It’s products are FDA approved and find acceptance in UK, Middle East, Asia and Australia and South Africa.

Trade Finance

The financial services division, India Fintrade Limited (IFL), is committed to the facilitation of trade through its affiliations which include major respectable banks and other financial institutions (both in India and overseas.)FL offers structured trade finance in the form of commercial and term borrowing backed by supply/purchase of goods, factoring and securitizing receivables, advances against assured performance amongst other services. Today, they are among the leading players in structured finance in India.

Emerging Market

India, with its inherent qualities and a rapidly growing economy, has become one of the fastest emerging markets in the world. Due to its low cost manufacturing and excellent quality of products, India has become an ideal sourcing base and with the entire major corporate worldwide wanting to ser up operations here, it is one of the most promising markets of the future.

Subject, with its vast exposure and excellent infrastructure, is currently sourcing for some of the biggest names in the Chemical, Petrochemical and Paper Industry worldwide and provides a platform

The company's fixed assets of important value include air conditioner, camera, computer, fax machine, furniture and fixtures, motor car, television set, xerox machine and motor cycle.

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. 39.32
UK Pound	1	Rs. 81.35
Euro	1	Rs. 56.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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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