MIRA INFORM REPORT

Report Date :

12.09.2007

IDENTIFICATION DETAILS

Name :	ECHJAY FORGINGS PRIVATE LIMITED
Registered Office :	Kanjur Village Road, Kanjur Marg (East), Mumbai – 400 042, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	08.09.1983
Com. Reg. No.:	11-30795
CIN No.: [Company Identification No.]	U28910MH1983PTC030795
TAN No.: [Tax Deduction & Collection Account No.]	PNEE01905B
PAN No.: [Permanent Account No.]	AAACE1902A
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business as Manufacturers of Forged Carbon, Alloy and stainless steel flanges and fittings, general forgings, auto components, assemblies and rolled rings.

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 1301784
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is engaged in the business as Manufacturers of Forged Carbon, Alloy and stainless steel flanges and fittings, general forgings, auto components, assemblies and rolled rings. Company’s latest financials are missing from the Government registry and the management remained non–co-operative

LOCATIONS

Registered Office :	Kanjur Village Road, Kanjur Marg (East), Mumbai-400042, Maharashtra
Tel. No.:	91-22-25782461/62/63/5782830/5782298
Fax No.:	91-22-25784962
E-Mail :	info@echjay.com echjay@echjay.com
Website :	http://www.echjay.com
Location :	Owned
Factory 1 :	Kanjur Village Road, Kanjur Marg (East), Mumbai-400042, Maharashtra
Tel. No.:	91-22-25782461/62/63/5782830/5782298
Fax No.:	91-22-25784962
E-Mail :	info@echjay.com
Website :	http://www.echjay.com
Factory 2 :	Pushpaman Forgings Division, Honad Village, Khalapur, Raigad – 410 203, Maharashtra, India.
Tel. No.:	91-2192-2625571
Fax No.:	91-2192-262327

DIRECTORS

Name :	Mr. Doshi Mansukhlal Sarvadaman
Designation :	Chairman cum Managing Director
Address :	Echjay House, 31-A, Carmichael Road, Mumbai – 400 026
Date of Birth/Age :	11.01.1943
Date of Appointment :	08.09.1983
Name :	Mr. Doshi Mansukhlal Pankaj
Designation :	Managing Director
Address :	8, Grosvenor House, Pedder Road, Mumbai – 400 026
Date of Birth/Age :	12.08.1945
Date of Appointment :	08.09.1983
Name :	Mr. Doshi Mansukhlal Deepak
Designation :	Director
Address :	Echjay House, 31-A, Carmichael Road, Mumbai - 400 026
Date of Birth/Age :	24.03.1944
Date of Appointment :	01.10.2001
Name :	Mr. Doshi Mansukhlal Nagin
Designation :	Director
Address :	Echjay House, 31-A, Carmichael Road, Mumbai – 400 026
Date of Birth/Age :	20.02.1949
Date of Appointment :	01.10.2001
Name :	Mr. Doshi Pankaj Janak
Designation :	Whole time Director
Address :	8, Grosvenor House, Pedder Road, Mumbai - 400 026
Date of Birth/Age :	22.03.1971
Date of Appointment :	28.01.1993
Name :	Mr. Doshi Sarvadaman Dhaval
Designation :	Whole Time Director
Address :	Echjay House, 31-A, Carmichael Road, Mumbai – 400 026
Date of Birth/Age :	11.09.1970
Date of Appointment :	16.01.1994
Name :	Mr. Doshi Sarvadaman Dhanish
Designation :	Whole TimeDirector
Address :	Echjay House, 31-A, Carmichael Road, Mumbai - 400 026
Date of Birth/Age :	06.04.1972
Date of Appointment :	06.10.1994
Name :	Mr. Doshi Nagin Premlal
Designation :	Whole Time Director
Address :	Echjay House, 31-A, Carmichael Road, Mumbai - 400 026
Date of Birth/Age :	17.02.1976
Date of Appointment :	01.10. 2001
Name :	Mr. Doshi Dipak Dhananjay
Designation :	Whole TimeDirector
Address :	Echjay House, 31-A, Carmichael Road, Mumbai - 400 026
Date of Birth/Age :	04.11.1978
Date of Appointment :	17.07.2000
Name :	Mr. Doshi Nagin Veeral
Designation :	Whole Time Director
Address :	Echjay House, 31-A, Carmichael Road, Mumbai - 400 026
Date of Birth/Age :	27.10.1980
Date of Appointment :	01.10.2001
Name :	Mr. Odayil Krishnan Kesavan
Designation :	Secretary
Address :	Flat No. 402, B-12, Arunoday, Opp. IIT Market, Powai, Mumbai - 400 076
Date of Birth/Age :	13.09.1946
Date of Appointment :	28.10.1986

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business as Manufacturers of Forged Carbon, Alloy and stainless steel flanges and fittings, general forgings, auto components, assemblies and rolled rings.
Products :	· Steel Forgings · Scrap Sales · Labour Chareges

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Forgings	MT	19380	4709

GENERAL INFORMATION

No. of Employees :

Around 1700

Bankers :

v Bank of India, Mumbai

v The Saraswat Co-operative Bank Limited, Ghatkopar Branch, Bhaveshwar Arcade, Ground Floor, Opposite Shreyas Cinema, LBS Marg, Ghatkopar (West), Mumbai – 400 086.

v Kotak Mahindra Bank Limited, 36-38A, Nariman Point, Mumbai – 400 021.

Facilities :

Secured Loan	Amount (in Millions)
Term Loan:
Kotak Mahindra Bank Limited (Secured against keyman Insurance Policies and personal guarantee of Directors)	28.000
Mandavi Co-operative Bank Limited (Secured against additional machinery and personal guarantee of Directors)	13.580
Loan from Others (Secured against hypothecation of Asets purchased under Hire purchase scheme & the personal guarantee of the directors.)	8.059
Working Capital:
From Banks:
Packing Credit (Secured against Export Orders, Trust Receipt, Stock, Stock-in-process & finished goods & the personal guarantee f the Directors & Mrs. P. M. Doshi)	64.242
Bill Discounting/ Revolving Loan (Secured against hypothecation of Book Debts & the personal guarantee of the Directors)	47.752
Unsecured Loan
From Directors & Share Holders	2.817
Inter Corporate Loans	3.776
Sales Tax Deferred Loans	16.498
From Others	1.074
Total:	185.798

Banking Relations :

Satisfactory

Auditors :

Name :

P. V. Dalal and Company

Chartered Accountants

Associates/Subsidiaries :

Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs. 100/- each	Rs. 30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
285300	Equity Shares	Rs. 100/- each	Rs. 28.530 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		28.530	28.530	28.530
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		296.916	224.266	99.583
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		325.446	252.796	128.113
LOAN FUNDS
1] Secured Loans		161.636	118.404	287.588
2] Unsecured Loans		24.166	30.648	31.733
TOTAL BORROWING		185.802	149.052	319.321
DEFERRED TAX LIABILITIES		19.210	24.990	0.000
TOTAL		530.458	426.838	447.434
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		187.619	185.266	188.999
Capital work-in-progress		2.869	0.370	0.078
INVESTMENT		0.477	0.774	1.018
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	189.427	148.802	123.479
	Sundry Debtors	180.629	114.928	85.239
	Cash & Bank Balances	37.809	20.051	6.826
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	156.190	89.432	117.684
Total Current Assets		564.055	373.213	333.228
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities & Provisions	224.562	132.785	75.889
Total Current Liabilities		224.562	132.785	75.889
Net Current Assets		339.493	240.428	257.339
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		530.458	426.838	447.434

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	1285.292	968.312	680.224
Profit/(Loss) Before Tax	124.279	155.897	9.863
Provision for Taxation	49.720	35.213	0.000
Profit/(Loss) After Tax	74.559	120.684	9.863
Total Expenditure	1161.012	812.414	670.361

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	5.80	12.46	1.45
Net Profit Margin (PBT/Sales)	(%)	9.67	16.10	1.45
Return on Total Assets (PBT/Total Assets}	(%)	16.46	27.86	1.88
Return on Investment (ROI) (PBT/Networth)		0.38	0.62	0.07
Debt Equity Ratio (Total Liability/Networth)		1.26	1.11	3.08
Current Ratio (Current Asset/Current Liability)		2.51	2.81	4.39

LOCAL AGENCY FURTHER INFORMATION

Financial Result:

The Directors are happy to inform that the economic environment both national and International continued to be vibrant during the year under report as also during the current year. The core competencies of the company have continued to contribute to the accelerated growth in turnover and profitability. The members will observe from the audited accountants that the export turnover of the company has enhanced by 104% over the previous year. Sales, both national and international, have increased by 33% compared to the previous year. The directors are making consistent efforts for enhancing the export turnover and hope to achieve further increase during the current year. The directors have initiated necessary steps to further increase export to different overseas a market has been well accepted. The directors have on hand adequate arrangement to respond to the changes instantly and tap the challenges offered by the market situation in favour of the company. The directors are happy to inform that the timely support and co-operation extended by the Bankers M/S Kotak Mahindra Bank Limited and M/S Saraswat Co-operative Bank Limited have substantially helped to achieve the growth during the previous year and except to percolate the same during the current year.

The Directors are making continued and consistent efforts to exploit the core competencies developed in the Quality and production process and the challenges offered by the Vibrant economy and expanding overseas markets to produce better results during the current year.

Kanjur Marg Division:

The income generated by kanjur marg division during the year under report has shown substantial improvement to Rs. 622.800 Millions in place of Rs. 352.800 Millions of last year. The directors have chalked out plans to optimize the product mix to improve the operational results during the current year and expect further improvement in operations. The capacity utilization of this division both in tonnage and value have shown adequate improvement compared to the previous year. This division continues to enjoy the ISO 9001: 2000 during the year under report as also the current year, the directors are hopeful of achieving better result during the current year.

Pushpaman Forgings Division:

The income of the division has enhanced to Rs. 663.200 Millions compared to Rs. 610.500 Millions of last year. The directors have added necessary additional production facilities over and above the in-house machining facility and installation of balancing equipment, to improve upon the operation of this division. The capacity utilization of this division has shown improvement compared to the previous year. This division of the company also continues to enjoy ISO 9001: 2000 Certification during the year under report and during the current year. The Directors are hopeful of achieving better results during the current year.

Subject is a manufacturer and supplier of wide variety of forgings throughout the world.

It caters to various industries such as automobiles, farm equipment, railway and tramway, defence, aerospace, piping related industry and oil exploration, wind energy, valve industry and general engineering.

It’s products range includes: -

v Finished and Semi-finished steel forgings EG. Flangers

v Metal tyres hootes and other parts of wheels for railway locomotives

v All other articles of Iron and steel.

Subject has been accredited with ISO 9002 Certification.

Subject has been approved by the following :-

v TUV, Germany for ISO 9002 and ADW0 / TRD 100 Certification

v Canadian Broiler Board - 'Appendix -H'

v Lloyds

v Bureau Veritas Engineers India Limited

v Indian Boiler Regulatory Board

Fixed Assets:

· Leasehold Land

· Factory Building

· Electric Installation

· Motorcars

· Furniture and Fixtures

· And Plant and Machinery

· Printers

· Fax Machine

· Vehicles

· Office Equipments

· Water Coolers

· Land Development

· Electrical Installation

· Air Conditioner

· Printers

· Tube Well

· Free Hold Land

· Type Writer

· Refrigerator

Name of the company

ECHJAY FORGINGS PRIVATE LIMITED

Presented By

The Saraswat Co-operative Bank Limited, Ghatkopar Branch

1) Date and description of instrument creating the change

Deed of Mortgage dated 20.03.2005

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

Rs. 60.000 Millions

Facilities	Amount (in Millions)
Fund Limit	30.000
Packing Credit	0.000
Non Funded	0.000
Bank Guarantee	30.000
Sub Limit L/C	(10.000)
Total:	60.000

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of to whole of the borrowers movable assets, both present and future situated at Kanjur Village Road, Kanjur Marg, Mumbai and Honad Village, Khalapur Taluka, Raigad District, Maharashtra and mortgage of all that piece and parcel of land situate at Kanjur Marg and Village Honad with all buildings and structure thereon and all plant and machinery attached to the earth, or permanently fastened to something attached to the earth and more particularly described in schedule I and II together with all the fixtures, fittings, rights, liberties, privileges, easements, advantages, and appyrtenances whatsoever there to or reputed or known as part or parcel thereof.

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

Fund Limits are Rs. 30.000 Millions and Non Fund Limit is Rs. 30.000 Millions

There is pari-passu charge in favour of the Saraswat co-operative bank and Kotak Mahindra Bank Limited.

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

The Saraswat Co-operative Bank Limited, Ghatkopar Branch, Bhaveshwar Arcade, Ground Floor, Opposite Shreyas Cinema, LBS Marg, Ghatkopar (West), Mumbai – 400 086.

Name of the company

ECHJAY FORGINGS PRIVATE LIMITED

1) Date and description of instrument creating the change

Joint Deed of Mortgage executed on 20.03.2005

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

	Amount (in Millions)
Packing Credit	28.000
Revolving loan for Supplies to Mahindra and mahindra	40.000
Revolving loan for Indian railways	8.800
LCBD Facility	5.000
Cash Credit	10.000
Total:	91.800

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

A first charge in respect of the following assets of the company both present and future ranking pari-passu with the charge created by the company in favour of the Saraswat Cooperative Bank Limited

All that place and parcel of land situate at the following location together with all buildings and structure thereon and all plant and machinery attached to the earth, or permanently fastened to something attached to the earth.

Kanjur Marg, Village Kanjur, Taluka Kurla District Greater Bombay is the registration district and sub district Bombay city and Bombay suburban admeasuring as per the conveyance dated 14.06.1961- 14243 square yards bearing

Survey No.	Plt. No.	Falni No.	Area sq. yds.
59	6/7 pt	-	91
59	6/9 pt	-	256
67	2/2 pt	-	158
67	5/1	-	972
67	5/2	-	8739
67	5/3	-
67	-	2 pt
68	-	-	1478
68	2 pt	-	190
Total:			14245

C.T.S. No.	Area (sq. mtrs.)
1019	135
1020	7.1
1020/1	5636
1020/2	964.5
	11874.5

Now amalgated and forms part of the city survey no. 1019 of kanjur, taluka kurla.

District Bomaby and as per city survey of the said part shown as 11874.50 sq. mtrs.

Village kanjur, Talkuka Kurla Dist. Greater Bombay in the registration district and sub district Bombay city and Bombay suburban as per conveyance dated 06.06.1984 2286.86 sq. mtrs. and bearing old S. No. H. No. 1 and CTS No. 1055 now amalgamated and froms part of the survey no. 1019 and as per city survey record the area of the said part is shown as 2286.20 sq. mtrs.

At village Honad, Taluka Khalapur, Dist. Raogad, Regn sub district Karjat and dist. Allbaug, bearing S. N. 30 H. No. 2 A adm. 0 hec and 86 acres together with building and structure thereon and all palnt and machinery attached thereto.

The entire movable fixed assets of the company excluding fixed assets charged to Mandavi Bank.

The entire current assets of the company.

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

The facilities as under

	Amount (in Millions)
Packing Credit	28.000
Revolving loan for Supplies to Mahindra and mahindra	40.000
Revolving loan for Indian railways	8.800
LCBD Facility	5.000
Cash Credit	10.000
Total:	91.800

Agreed to be lent and advanced by Kotak Mahindra Bank Limited together with interest, costs, charges, expenses, and all other moneys due and payable BY IT TO KOTAK MAHINDRA BANK LIMITED

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

Kotak Mahindra Bank Limited, 36-38A, Nariman Point, Mumbai – 400 021.

AS PER WEBSITE:

The companies have two modern manufacturing plants that produce one of the largest range or forgings.

Kanjur Village Road,

Kanjur Marg East,
Mumbai 400 042. India.
Ph: 91 (22) 25782461
Fax: 91(22) 25784962

ECHJAY FORGINGS PRIVATE LIMITED, a closely held company is ISO 9002 certified and is a leading manufacturer and supplier of wide variety of quality forgings throughout the world with over 40 years of experience.

Founded in 1960 as a machine shop it originally machined imported forgings for Automobile Manufacturers.
The company has steadily expanded since then. During these 40 years we have built and maintained our reputation for integrity. The most treasured assets are the dedicated and motivated work force and of course the
satisfied customers. Delivery schedules are met and every forging receives due attention.

Echjay was founded, as a family owned company and today still maintains family ownership.
The direction of the family and the commitment of over 500 workers has resulted into an ethically sound and morally bound company that is successfully addressing the modern issues such as environment.

Echjay has sustained a steady growth rate over the years to boast to modern large forge shops with complete integrated facilities from cutting to finishing. Both plants have state of the art laboratories to make sure that it's quality commitments are never doubted.

Echjay Forgings Private Limited has always embraced the wonders of technology and successfully addressed the issue of implementation. The close knit of ability and intention resulted in constant modernization over the years.

Today Echjay is known for its modern facilities like the Wagner made ring rolling plant, the extrusion press, CNC machining facility, heat treatment plant and so on. But most importantly the process is continuous.

With a capability to process 1600 tons per month from smallest of closed die forgings of 0.5 kg to largest of 100 Kgs per piece, seamless rolled rings of upto 3 meters outer diameter and upset forgings all under one roof, it is obvious that Echjay is not only technologically sound but rather a pioneer in its own.

At Echjay, vests a complete facility to cater to a large variety of customers.

• In-house cutting through series of band saws and a shearing machine
• Series of closed die hammer from 1 ton to 6 tons capacity
• 6" up setter
• 500 tons hollow impact forging press
• 1600 tons blanking press
• RAW 100/50 Radial Axial ring rolling mill
• Complete heat treatment facility

Machining Facilities including:

• CNC lathes
• Drilling
• Broaching
• Spline Cutting
• Thread Rolling
• Vertical Turret Lathes
• Cylindrical Grinding
• And more.

Echjay Forgings has established itself as a proven name in the international market for carbon, steel and stainless steel flanges and today the companies have one of the largest product ranges. The company success lies in the quality of our products, flexibility in approach, commitment to our customers, integrity in their conduct and continuous technological innovations.

List of industries they cater to and their stainless steel flanges product range.

Industries we cater to:

Supplier to the auto industry from inception, Echjay has created an unparallel reputation with the auto manufacturers. Echjay supplies various types of forgings made through the closed die and upset forging process and in many different conditions starting from forging to sub assemblies.

With modernization of the most populous business in India, Farming; Echjay has earned a
reputation of supplying quality forgings with innovative production methods to lower the cost of manufacturing.

Echjay, since many years, has been a large supplier of seamless forging and closed die critical
forging to the largest undertaking in the world, The Indian Railways. The quality and schedule
adherence has allowed Echjay to export these railway components to many different countries as well.

The Indian defense has been homogenizing components at an ever-accelerating pace.
While the process of trials is long but crucial, only the companies with superior knowledge sheer dedication will have the ability to supply critical forgings. Echjay has proved itself to be one of those few.

With India's dominance increasing in the aerospace industry, the aerospace industry in India is continuously looking at extremely high quality component manufacturers. It means both, the ability to manufacture with extreme precision and also able to test the resultant component. Echjay has been a noted supplier to the aerospace industry.

Echjay has been manufacturing pipe fittings and flanges for many years. The range Echjay is
able to offer is complete from the smallest to the largest. With such a diverse selection and a
reputed name all over the world, Echjay offers both comfort of one supplier for all requirements and reputation, which makes it easily acceptable.

Supplying to the wind energy industry has allowed Echjay to add a completely new industry
segment to its portfolio. Having supplied to some of the industry leaders, Echjay has created its
name in this industry in a very short span of time.

Echjay supplies valve bodies from small sizes to considerably large forgings to one of the largest manufacturer of forged valves in the world. Again this was possible only with credibility and experience.

Over the years many companies have opted Echjay to have their custom forgings made. Starting from forged components used in development of different new equipment to forged components used in large-scale special purpose equipment have been successfully developed and delivered.

The first forged flange was produced at Echjay's mumbai plant in 1960.

Ever since "Echjay" name has become synonymous with flanges in India. With out continuous
and conscientious efforts towards improved quality and customer service, we have established
a significance presence in the international market. They have steadily increased our market share with the help of their satisfied customers.

Today they produce 15mm (1/2") through 2090mm (80") N.B. flanges. There qualities are approved by Canadian Boiler Board and TUV in accordance with Appendix - H and ADW0/TRD respectively.

TYPES	RATING	STANDARDS
Weld Neck Blind Slip-on Lap Joint Screwed Socket Weld	150lbs to 2500 lbs PN 10 to PN 160	ANSI B 16.5 DIN2632, 2633, 2634, 2635, 2636, 2638, 2576, 2642, 2527, 2566. MSS SP 44 ANSI B 16.1 API 605 ASME B 16.47 BS 4504, BS10
Sizes: 1/2" TO 80" NB (15mm to 2000mm NB) Facing: Raised, Flat, Ring type joint, Male/Female, Tongue/Groove

• Girth Flange
• Tube Sheet
• Pipe Connector
• Any special flange to customer specification

TYPES	RATING	STANDARDS
Slip on w/o collar Blind	PN 10 to PN 40 Table D, E, F	DIN2576, DIN 2527 DIN 2533 BS 10, BS 4504

TYPES	RATING	STANDARDS
Screwed Socket Weld	2000, 3000 and 6000 lbs	ANSI B 16.11
Sizes: 3/8" to 4" (10mm to 100mm)

TYPES	RATING	STANDARDS
Stub Ends	Sch 5S, 10S, 40S, 80S	MSS SP 43, ANSI B 16.9
Sizes: MSS 1/2" to 12" (15mm to 300mm) ANSI 1/2" to 4" (15mm to 100mm)

ASTM	A 105, LF2, F1, F11, F5, 304/304L, 316/316L and others.
DIN	1.4301, 1.4306, 1.4307, 1.4401, 1.4404, 1.4541, 1.4571 and others.

Echjay has used its knowledge and current trends to develop its expansion plant in Khopoli (near Mumbai) where the state of the art engineering and the green surroundings exhibiting environmental awareness rest together in a harmonious manner.

Both Plants Echjay (Mumbai) and Pushpaman (Khopoli) have achieved success through its dedicated workforce, superior infrastructure and pleasant atmosphere.

Head Office:
Kanjur Village Road,
Kanju Marg East,
Mumbai 400 042. India.
Ph: 91 (22) 25782461
Fax: 91(22) 25784962

Pushoaman Forgings
(Division of Echjay Forgings Ltd.)
Honad Village, Khalapur Taluka,
Dist. Raigad, Maharashtra.
Ph: 91 (2192) 62577
Fax: 91 (2192) 62327

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.40.58
UK Pound	1	Rs.82.22
Euro	1	Rs.55.97

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	8
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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

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