MIRA INFORM REPORT

Report Date :

04.10.2007

IDENTIFICATION DETAILS

Name :	C R I PUMPS PRIVATE LIMITED
Registered Office :	122 - B Atthipalayam Road, Chinnavedampatti, Ganapathy, Coimbatore-641006, Tamilnadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	31.01.1996
Com. Reg. No.:	18-6902
CIN No.: [Company Identification No.]	U29120TZ1996PTC006902
TAN No.: [Tax Deduction & Collection Account No.]	CMBC03127F
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturers, Exporter and Importer of Borewell Submersible Pumpsets, Openwell Submersible Pumpsets, Peripheral Pumpsets, Self Priming Jet Pumpsets, Centrifugal Self Priming Pumpsets, Centrifugal Monoblock Pumpsets, Centrifugal Jet Pumpsets, Borewell Compressor Pumpsets and Accessories.

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 680000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are reported as fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	122 - B Atthipalayam Road, Chinnavedampatti, Ganapathy, Coimbatore-641006, Tamilnadu, India
Tel. No.:	91-422-2666395/2667051/2668681
Fax No.:	91-422-2667052/2666395/2667125
E-Mail :	cripumps@md3.vsnl.net.in
Website :	http://www.cripumps.com
Factory 1 :	54-A, Avarampalayam Road, Ganapathy, Coimbatore-641006, Tamilnadu, India
Tel. No.:	91-422-2562091/2562092
Fax No.:	91-422-2562065
E-Mail :	cri@vsnl.net
Area :	90,000 Sq.ft

DIRECTORS

Name :	Mr. Gopal Soundarajan
Designation :	Director
Address :	46 and 47 ATT Colony Coimbatore-641011, Tamilnadu, India
E-Mail:	g.soundararajan@cripumps.com
Date of Birth/Age :	16.05.1958
Date of Appointment :	31.01.1996
Name :	Mr. Gopal Selvaraj
Designation :	Director
Address :	46 and 47 ATT Colony Coimbatore-641011, Tamilnadu, India
E-Mail:	g.selvaraj@cripumps.com
Date of Birth/Age :	01.07.1966
Date of Appointment :	31.01.1996
Name :	Mr. G. Rajendran
Designation :	Managing Director
Address :	46 and 47 ATT Colony Coimbatore-641011, Tamilnadu, India
E-Mail:	g.rajendran@cripumps.com
Date of Birth/Age :	21.04.1961
Date of Appointment :	31.01.1996
Directorship in other companies :	v Ransar Industries limited v Chola Pumps Private Limited
Name :	Mr. Velumani Chinnasamy
Designation :	Non-Executive Director
Address :	46, ATT Colony, Upplipalayam, Coimbatore – 641 018, Tamilnadu, India
E-Mail:	c.velumani@cripump.com
Date of Birth/Age :	15.12.1950
Date of Appointment :	18.05.2007

KEY EXECUTIVES

Name :	Srinivasan and Company
Designation :	Company Secretary
Address :	“Indus Chambers” Ground Floor, No. 101, Government Arts college Road, Coimbatore – 641 018, Tamilnadu, India
Tel. No.:	91-422-2302867, 2302868
Mobile No.:	91-9442026172, 9443709781
E-Mail:	rirs@eth.net

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. G. Soundarajan	33334
Mr. G. Selvaraj	33333
Mr. G. Rajendran	33333
Total	99999

Category	Percentage of Holding
Bodies Corporate (not mentioned above)	55.00
Directors or relatives of directors	45.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporter and Importer of Borewell Submersible Pumpsets, Openwell Submersible Pumpsets, Peripheral Pumpsets, Self Priming Jet Pumpsets, Centrifugal Self Priming Pumpsets, Centrifugal Monoblock Pumpsets, Centrifugal Jet Pumpsets, Borewell Compressor Pumpsets and Accessories.

Products :

Production Description	ITC Code No
Monoblock and Submersible	841370-06
Motors	860110.02
Power Driven and Centrifugal pumps	87139.02

Agencies Held :

CRI Pumps SA (PTY) Limited

PRODUCTION STATUS

Particulars	Actual Production
Pumpsets	599.137 Units

GENERAL INFORMATION

No. of Employees :

450

Bankers :

v State Bank of India,

Commercial Branch, Trichy Road, Coimbatore-641018, Tamilnadu, India

dumy@dumy.com

v Industrial Development Bank of India Limited

Viscose Towers, 1078, Avinashi Road, Coimbatore – 641018, Tamilnadu, India

dumy@dumy.com

Facilities :

Secured Loan	Rs in Millions
From Nationalized Bank secured by hypothecation of Stock of materials, receivables, machineries and other movable assets and equitable mortgage of Land and Building and guaranteed by the directors.
Cash Credit Account	28.824
Term Loan	54.136
PCFC Loan	4.838
FCNR Loan	14.294
From other finance companies on hypothecation of Vehicle	2.137
Total	104.229

Banking Relations :	Satisfactory
Auditors :
Name :	K S G Subramanyam and Company Chartered Accountants
Address :	II Floor, United Shopping Complex, 94/36, Dr. Nanjappa Road, Coimbatore-641018, Tamilnadu, India
Branch Office :	“AARBI”, 40/3, 7^th Cross, 10^th Main, Gururaja Layout, Bhansankari, III Stage, Bangalore - 580085
Tel No.:	91-422-2380917 / 2302823 / 2497810 [Res.]
Fax No.:	91-422-2302823
Email :	contact@ksgs.co.in
Website :	http://www.ksgs.co.in
Associates/Subsidiaries :	Associates: Chola Pumps Private Limited CRI Industries Private Limited Magna Marketing Private Limited Meltech Castings Private Limited Ransar Industries Limited Subsidiaries : v CRI Pumps SA (Pty) Limited, Unit D 56 Allandale Park, Phase I, CNR Le Roux and Morkels Close, Halfwayhouse, Midrand, South Africa. v CRI Pumps Fze v CRI Bombas Hidraulics Limited v Rav Pompacilik Tic Limited v Bombas CRI Espana S L Investment
Holding Company:	C R I Amalgamations Private Limited

CAPITAL STRUCTURE

Authorized Capital:

No. of Shares	Type	Value	Amount
1,00,000	Equity Shares	Rs. 100/- Each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
99,999	Equity Shares	Rs. 100/- Each	Rs. 10.000 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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		160.204	123.343	103.341
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		170.204	133.343	113.341
LOAN FUNDS
1] Secured Loans		172.184	104.229	89.342
2] Unsecured Loans		43.746	69.568	42.440
TOTAL BORROWING		215.930	173.797	131.782
DEFERRED TAX LIABILITIES		9.318	3.823	1.902
TOTAL		395.452	310.963	247.025
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		160.620	113.193	99.608
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		27.052	14.026	4.911
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	307.153	197.216	153.999
	Sundry Debtors	46.985	37.706	17.268
	Cash & Bank Balances	23.9854	27.475	16.517
	Other Current Assets	0.000	0.000	0.00
	Loans & Advances	100.051	85.119	45.879
Total Current Assets		478.143	347.516	233.663
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	217.163	124.572	69.162
	Provisions	53.200	39.200	22.000
Total Current Liabilities		270.363	163.772	91.162
Net Current Assets		207.780	183.744	142.501
MISCELLANEOUS EXPENSES		0.000	0.000	0.005
TOTAL		395.452	310.963	247.025

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		964.124	829.038	562.578
Other Income		0.000	0.000	0.000
Total Income		964.124	829.038	562.578
Profit/(Loss) Before Tax		68.518	51.785	66.915
Provision for Taxation		31.657	31.783	22.000
Profit/(Loss) After Tax		36.861	20.002	44.915
Expenditures :
	Total Expenses	850.191	734.607
	Financial Charges	18.195	14.745	495.787
	Depreciation	27.220	27.901
Total Expenditure		895.606	777.253	495.787

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	3.82	2.41	7.98
Net Profit Margin (PBT/Sales)	(%)	7.11	6.25	11.89
Return on Total Assets (PBT/Total Assets}	(%)	10.73	11.24	20.08
Return on Investment (ROI) (PBT/Networth)		0.40	0.39	0.58
Debt Equity Ratio (Total Liability/Networth)		2.86	2.53	1.97
Current Ratio (Current Asset/Current Liability)		1.77	2.12	2.56

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

v Land

v Building

v Machinery, Tools and Meters

v Electrical Fittings

v Furniture

v Vehicle

v Office Equipments

v Wind Will

The company is consistently improvising the products and its quality and new range of pumps are also introduced.

Subsidiary

The performance of the subsidiary company C.R.I. Pumps S.A. [Pty] Limited, South Africa has improved and the financial details are enclosed with the annual report.

The activities at C.R. I. Pumps FZE, Sharjah has commenced during the year. The activities at C.R.I. Bombas Hidraulicas Limtied [Brazil] are yet to commence.

Form 8 Particular for creation or modification of charges

Name of the company

C.R.I. PUMPS (PRIVATE) LIMITED

Presented By

C.R.I. PUMPS (PRIVATE) LIMITED AND STATE BANK OF INDIA, COMMERCIAL BRANCH, COIMBATORE

1) Date and description of instrument creating the change

09.07.1999

a) Form C -2: Agreement of Hypothecation of Goods and Assets dated 09.07.1999

b) No Instrument: Equitable Mortgage by deposit of title deeds dated 09.07.1999 (Memorandum of deposit of Title deeds enclosed in Form C-9)

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 46.850 millions comprising of

Particulars	Rs. in Millions
Cash Credit (HCG)	20.000
Letter of credit	2.000
Bank Guarantees	2.000
Term Loans (III, IV, V)	22.850
Total	46.850

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

1. All present and future goods, book debts and all other movable assets of the Company including documents of title to the goods, outstanding moneys, receivables, claims,. Bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights and the present machinery as listed under Survey No. 1 to 79 of Unit I and Unit II and Survey No. 1 to 10 (dismantled machinery) in the Annexure to Schedule under the Agreement of Hypothecation of goods and assets and all future machinery belonging to or in the possession or under the control of the Company wherever lying stored and kept and whether in the possession of the Company or of the Bank or any third party whether in India or elsewhere.
2. Property situate at Coimbatore Regn. Dist. Gandhipuram Sun-Regn Dist, Coimbatore Taluka, Chinnavedampatti Village, in S F No. 12 Southern portion an extent of 1 acre 82 cents, in SF No. 13 Southern portion a acre 88 cents thus out of 3 acres 50 cents the land measuring to 2 acres 50 cents with the following boundaries

South – S F No. 11

North – The land belonging to Rajammal and others

West – Athipalayam – Chinnavedampatti Road

East – The remaining 1 acre land belonging to Meltech Castings Private Limited

Within the above boundaries with common right in the cart track and buildings and erections thereon both present and future.

4) Gist of the terms and conditions and extent and operation of the charge.

a) Margin:

(1) For Cash Credit:

Raw Materials	25%
Stock-in-process	25%
Finished Goods	25%
Receivables	40%
Book Debts/ receivables	40%

(ii) For Letter of Credit – 10%

(iii) For Bank Guarantee – 10%

b) Repayable on demand

c) The amount owing on the security of the charge created to secure the Term Loan is Rs. 8.780 millions only

d) The said outstanding amount in the Term Loan accounts is repayable in installments as given below:

Term Loan III:

Half Yearly installments of Rs. 1.220 millions on October 1999

Half Yearly installments of Rs. 1.220 millions on April 2000

Term Loan V:

Quarterly installment of Rs. 1.000 million on July 1999

Quarterly installment of Rs. 1.220 million on October 1999

Quarterly installment of Rs. 1.000 million each commencing from January 2000 and ends on 2001.

e) The above charge operates as security for payment and discharge by the Company to the Bank on demand of the aforesaid sum and all other moneys at any time payable by the company to the Bank in respect of the aforesaid credit facilities granted pr to be granted to the company and also as security for the payment and discharge of all indebtedness whatsoever or liability of the Company to the Bank together with all interest, discount, commission, charges, costs and expenses payable to under the aforesaid agreements.

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Commercial Branch, Coimbatore – 560 018, Tamilnadu, India

6) Date and brief description of instrument modifying the charge

31.01.2003

1. Agreement of hypothecation of goods and assets [Form C 2]
2. Memorandum of deposit for creation of further charge for term loan / overall limit where the initial charge is created by way of mortgage by deposit of title deeds [Form C. 10], (Letters 3 Nos.) evidencing extension of equitable mortgage by deposit of title deeds are enclosed). Both dated the 31.01.2003

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.

1. Pursuant to the execution of the aforesaid agreements and extension of equitable mortgage, the amount secured by existing charge on all present and future goods, book debts and other movable assets and present plant and machinery listed under Survey No. 1 to 155 as on 01.04.2002 annexed to the Agreement of Hypothecation of goods and assets, all future machinery belonging to or in possession or under the control of the Company and the following immovable properties situate at Chinnavedamapatti Village, Coimbatore

i. SF No. 13 measuring 70,77 cents of land in D No. 122-B;

ii. SF No. 12, Southern portion and extent of 1 acre and 62 cents in SF No. 13, Southern in portion 1 acre and 88 cents thus out of 3 acres 50 cents, the land measuring 2.50 acres.

iii. SF No. 17/1A out of 50 cents Northern portion measuring 19.2 cents and out of 2.43 acres, 1/4^th share measuring 59 cents.

Stands enhanced from Rs. 59.800 millions to Rs. 80.500 millions as per details given hereunder:

Facility	Existing	Revised
	Rs. in Millions
Cash Credit (HCG)	36.000	36.000
Sub-limit
EPC	0.000	(5.000)
Letter of Credit	2.000	2.000
Sub-limit:
(One time LC)	0.000	(8.900)
Bank Guarantee	2.000	2.000
Term Loan I	10.000	10.000
Term Loan II	9.800	9.800
Term Loan III	0.000	32.900
EPCG	0.000	1.700
Total	59.800	80.500

2. Rate of Interest:

For cash credit limit: Interest is at 11.85% per annum

For Term Loan III: Interest is at 12.85% per annum

3. Repayment:

The Term loan III is repayable in 20 quarterly installments of Rs. 0.950 million each to Commence from December 2003 and final installment by September 2008

4. Margin:

Raw materials, stock in process, finished Goods and Stores – 25%

Book Debts / Receivables – 40%

Building – 33.33% and

Machinery – 25%

5. The charge operates as security for the due repayment of all liabilities in respect of the aforesaid limits/ loans including costs, charges and expenses and all other monies due to the Bank under the respective agreements.

6. The Company shall at all times maintain a sufficient quantity and market value of the said goods and assets to provide margins of security required by the Bank from time to time.

7. The company shall insure the hypothecated assets given as security to the Bank from all risks.

8. The Bank shall at all times without any notice, but at the company’s risk and expense enter anyplace where the hypothecated assets may be and inspect, value, insure, superintend, dispose and / or any part of the hypothecated assets and check any statements, accounts, reports, information and to do all acts, deeds and things deemed necessary by the Bank including breaking open of any place where the hypothecated assets and the books of account or other documents.

9. The Bank shall take charge of seize, recover, receive, take possession of inter alia by putting locks on godowns and other places where the hypothecated goods or account books and other documents relating to hypothecated book debts are lying or kept and to appoint receiver or remove all or any part of the said goods and assets and also all books of account, paper, documents and vouchers and other records relating thereto, and also to give notices and demands to debtors and third parties liable therefore sue for recovery, receive and give receipts for the same and/ or sell, realize, dispose of and deal with in any manner including by tender or public auction or private contract and whether with or without the intervention of court all or any part of the said goods and assets and to enforce realize, settle, compromise submit to arbitration and deal in any manner with any rights and debts of claims, if the amounts due to the Bank.

10. All the goods and assets hypothecated shall be the absolute property of the company at its sole disposal and free from any prior lien or encumbrance, mortgage, charge except which have been notified to the Bank.

11. This agreement shall operate as a continuing security for all moneys indebtedness and liabilities aforesaid notwithstanding the existence of a credit balance in the account or accounts at any time or any partial payments or fluctuations of accounts.

Corporate identity number (CIN) Foreign company registration number	U29120TZ1996PTC006902
Name of the Company	C.R.I. PUMPS (PRIVATE) LIMITED
Address	122 - B Atthipalayam Road, Chinnavedampatti, Ganapathy, Coimbatore-641006, Tamilnadu, India
This form is for	Modification of charge
Type of Charge	A charge on: v Book Debts v Movable property (not being pledge) v Floating charge v Current assets v Plant and Machinery
Particulars of the charge holder	State Bank of India, Commercial Branch, Trichy Road, Coimbatore-641018, Tamilnadu, India E-Mail: dumy@dumy.com
Nature or description of the instrument(s) creating or modifying the charge	Inter e pari passu agreement
Date of the instrument creating or modifying the charge	03.01.2007
Amount secured by the charge	Rs. 166.300 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	(a) Extent and operation of the charge: The charge operates as security for the due repayment of all liabilities together with interest, costs, charges, applicable taxes and other expenses, payable in favour of State Bank of India, IDBI and SCB and their respective limits as detailed in the attachment.
Short particulars of the property charged (including location of the property)	Current Assets
Particular of the present modification	Pursuant to the execution of the Inter se pari passu agreement, the charge on the Current Assets of the company in favour of this Bank (SBI) and IDBI for securing the limits of the respective banks stated in the attachment will operate on a Pari Passu basis as stated in field no. 12(d).

Corporation identity number or foreign company registrations number of the company	U29120TZ1996PTC006902
Name of the company	C.R.I. PUMPS (PRIVATE) LIMITED
Address	122 - B Atthipalayam Road, Chinnavedampatti, Ganapathy, Coimbatore-641006, Tamilnadu, India
This Form is for	Modification of charge
Type of Charges	Hypothecation
Particular of the charge holder	State Bank of India, Commercial Branch, Trichy Road, Coimbatore-641018, Tamilnadu, India E-Mail: dumy@dumy.com
Amount Secure by the charge	Rs.46.850 Millions
Description of the property charge whether it is a charge on	v Stock in Trade v Book Debts
Modification charge Charge identification number of the charge to be modified	90000958
Date of instrument modifying the charge	30.03.2006
Particulars of the Property charged	Current assets

Corporation identity number or foreign company registrations number of the company	U29120TZ1996PTC006902
Name of the company	C.R.I. PUMPS (PRIVATE) LIMITED
Address	122 - B Atthipalayam Road, Chinnavedampatti, Ganapathy, Coimbatore-641006, Tamilnadu, India
This Form is for	Modification of charge
Type of Charges	Hypothecation
Particular of the charge holder	Industrial Development Bank of India Limited Viscose Towers, 1078, Avinashi Road, Coimbatore – 641018, Tamilnadu, India E-Mail: dumy@dumy.com
Amount Secure by the charge	Rs. 76.000 Millions
Description of the property charge whether it is a charge on	Stock in Trade and Book Debts
Modification charge Charge identification number of the charge to be modified	90004683
Date of instrument modifying the charge	30.03.2006
Particulars of the Property charged	Current assets

Website Details attached:

Profile

The beginning of C.R.I, back in 1961, was a resolute attempt to produce a few irrigation equipments using the limited facility of an in-house foundry. Now, after four eventful decades, the founder’s dream has become a reality, a multi-winged organization that produces different varieties of pumps and motors that are engineered to perfection. What made the legendary growth possible is the flawlessly maintained value system of the company. The name C.R.I. itself encapsulates the company’s ethos: “Commitment, Reliability, Innovation” and it has now become a household name associated with water lifting pumps – be it for agriculture, industry, domestic, mining or civil applications.

v 4 decades of engineering expertise

v State-of-the-art Research facilities

v 90,000 Sq. Metres of covered area equipped with the latest machinery

v More than 830 varieties of water lifting pumps & Motors

v Production capacity exceeding 7, 50,000 pumps and motors per annum

v Submersible pumps with 100% stainless steel construction

v Fully mechanized and automated Foundry with latest technology

v Winner of many prestigious awards for quality and excellence

v ISO 9001 accreditation

v World wide exports

The Company always keeps pace with the changing scenario and seldom fails in coming up with outstanding solutions every time. The unerring teamwork, which goes into the manufacture of every product, has brought in impeccable recognition for the company as well as its products – worldwide.

Products

50 Hz

· Deepwell Submersible Pumps

· Deepwell Submersible Motors

· Openwell Submersible Pumps

· Peripheral Pumps

· Centrifugal Pumps

· Self Priming Jet Pumps

· Deepwell Jet Pumps

· Water Lifting Bore Well Compressor Pumps

· Deep Well Hand Pumps

· A.C. Induction Motors

· Accessories

60 Hz

· Deepwell Submersible Pumps

· Deepwell Submersible Motors

· Peripheral Pumps

· Centrifugal Pumps

· Self Priming Jet Pumps

· Accessories

Awards

What helped us a lot in attracting the admiration of authentic brains is certainly their method of modifying their perspective from time to time.

And, the fact is, getting recognized or rewarded was always something that vitally increased their responsibility toward the consumers.

Most people call it a challenge. At C.R.I., we call it

Infrastructure

C.R.I. group produces more than 830 varieties of water lifting pumps & motors used in Agriculture, Industry, Mining, Domestic and Civil applications.

C.R.I factories with 90,000 Sq.mtrs. of covered premises are equipped with State-of-the-art machinery and its own foundry division is fully mechanized and automated with latest know-how.

The group is one among the few manufacturers in the world to produce bore whole submersible pumps out of 100% Stainless Steel materials (SS 304/316) grade. Also the products have earned a unique reputation for its quality and excellence in India and abroad and are being exported to various parts of the world. The group possessing a well maintained infrastructure has achieved an annual production capacity of more than 7, 50,000 pumps. The production facilities are equipped with latest automated machinery and systems built with latest know-how.

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. 39.49
UK Pound	1	Rs. 80.41
Euro	1	Rs. 55.76

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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		45

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.	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