MIRA INFORM REPORT

Report Date :

22.09.2007

IDENTIFICATION DETAILS

Name :	MEDREICH LIMITED
Formerly Known As :	MEDREICH STERILAB LIMITED
Registered Office :	Medreich House No 12/8, Saraswati Ammal Street, M. S. Nagar, Bangalore – 560033, Karnataka
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	16.08.1973
Com. Reg. No.:	08-2383
CIN No.: [Company Identification No.]	U24232KA1973PLC002383
TAN No.: [Tax Deduction & Collection Account No.]	BLRS01934C
PAN No.: [Permanent Account No.]	AABCM1458Q
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturers of Pharmaceutical Formulations such as Amoxycillin, Ampicillin, Chloromphenicol, Chloroquine Phosphate, Ibuprofen, Indometacin, Metronidazole, Paracetamol, Sulphadoxine, Tetracycline, Amikacin, Analgin, Benajathine Penicillin, Dexamethasone, Gentamycin, Cotrimoxazole, Erthromycin, Cloxacillin, Ketoconazole, Procaine, Augmentine, etc. in the form of capsules, tablets, liquids, etc

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 9500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	Medreich House No 12/8, Saraswati Ammal Street, M. S. Nagar, Bengalore – 560033, Karnataka, India
Tel. No.:	91-80-25493334 [10 Lines]
Fax No.:	91-80-25474741
E-Mail :	bnk@ho.medreich.com query@ho.medreich.com medreich@vsnl.com cg@ho.medreich.com info@ho.medreich.com
Website :	http://www.medreich.com
Area :	Leased -- 1500 sq. fts
Corporate Office :	Survey No. 4/3, Avalahalli, Off Kanakpura Road, Anjanapura Post, Bangalore, Karnataka, India
Tel. No.:	91-80-25493334
Fax No.:	91-80-25474741
Factory :	Ø 12^th Mile, Old Madras Road, Virgo Nagar, Bangalore – 560049, Karnataka, India Area : 3500 sq. ft. -- owned Ø 4/2, Anjanapura, Avalahalli, Karakapura Road, Bangalore, Karnataka, India Ø 49 B & C, Bommasandra Industrial Area, Bangalore, Karnataka, India Ø Plot No. 36, Bommasandra Industrial Area, Bangalore, Karnataka, India

DIRECTORS

Name :	Mr. C. Pukhraj Bothra
Designation :	Managing Director
Address :	14, 7^th Cross, Jaibharat Nagar, Bangalore – 560033, Karnataka
Date of Birth/Age :	20.07.1956
Experience :	25 years
Date of Appointment :	01.06.1990
Name :	Mr. J. R. Venu
Designation :	Whole Time Director
Address :	Basanth no. 1, 4^th Main Road, Tata Silk Farm, Bangalore – 560004, Karnataka
Date of Birth/Age :	17.02.1956
Date of Appointment :	01.06.1990
Name :	Mr. Keith De Souza
Designation :	Director
Address :	90 Wyatt Drive, Barnes, London, England
Date of Birth/Age :	01.07.1955
Date of Appointment :	14.09.1996
Name :	Mr. Paul Michael Barett
Designation :	Chairman
Address :	1, Leicester Close, Henley – On – Thames, Oxon, RG92DLD
Date of Birth/Age :	09.11.1945
Date of Appointment :	19.05.2004
Name :	Mr. Rajeev Mehta
Designation :	Director
Address :	80, Wyatt Drive, Barnes, London, England – SW 138AB
Date of Birth/Age :	19.08.1951
Date of Appointment :	19.05.2004

Name :	Mr. Simon George Brundan
Designation :	Director
Address :	Horwood Cottage, Churt Road, Hindhead, Surrey, FU266HZ
Date of Birth/Age :	05.04.1964
Date of Appointment :	19.05.2004
Name :	Tan Suan Swee
Designation :	Director
Address :	60 B, Orchard Road, # 06 – 18 Tower 2, Singapore – 238891
Date of Birth/Age :	10.04.1956
Date of Appointment :	14.10.2005
Name :	Mr. Seow Teng Peng
Designation :	Director
Address :	2 Avon Road, Singapore – 439780
Date of Birth/Age :	05.05.1945
Date of Appointment :	14.10.2005
Name :	Mr. Anand Govi Ndaluri
Designation :	Director
Address :	60 B, Orchard Road, # 06 – 18 Tower 2, Singapore – 238891
Date of Birth/Age :	14.01.1973
Date of Appointment :	14.10.2005
Name :	Ms. Kushboo Bothra
Designation :	Director
Address :	No. 14, 7^th Cross, Jai Bharat Nagar, Bangalore – 560033, Karnataka
Date of Birth/Age :	30.05.1983
Date of Appointment :	07.06.2004
Name :	Ms. Vandana Bothra
Designation :	Director
Address :	No. 14, 7^th Cross, Jai Bharat Nagar, Bangalore – 560033, Karnataka
Date of Birth/Age :	01.06.1980
Date of Appointment :	03.04.2003
Name :	Mr. Dasari Ramesh
Designation :	Director
Address :	No. 506, II Block, SMR Vinay Estate, Banaswadi, Bangalore – 560043
Date of Birth/Age :	14.05.1967
Date of Appointment :	22.10.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (01.09.2006)	No. of Shares
Ms. Leela Kanwar	10
Ms. Vandana Bothra	10
Mr. Arun Kumar Chordia	10
Mr. Hemanth Kumar Bothra	10
Ms. Kushboo Bothra	10
M/s. Med Holdings (UK) Limited	21055093
M/s. Nokha Holdings Private Limited	7787450
M/s. V Sciences Investment Private Limited	10000
M/s. V Sciences Investment Private Limited	14196160

Foreign Holdings – 73.00%

Bodies Corporate – 27.00%

BUSINESS DETAILS

Line of Business :

Manufacturers of Pharmaceutical Formulations such as Amoxycillin, Ampicillin, Chloromphenicol, Chloroquine Phosphate, Ibuprofen, Indometacin, Metronidazole, Paracetamol, Sulphadoxine, Tetracycline, Amikacin, Analgin, Benajathine Penicillin, Dexamethasone, Gentamycin, Cotrimoxazole, Erthromycin, Cloxacillin, Ketoconazole, Procaine, Augmentine, etc. in the form of capsules, tablets, liquids, etc

Products:

Item Code Number	Product Description
30041003	Ampicillin
30041004	Amoxicillin
30041005	Cloxacillin

Exports :

Countries :

U.K., Africa and Canada

Imports :

Countries :

U.K., Spain, Germany, China, Malaysia and Italy

Terms :

Selling :

L/C, D/P, Credit [15/60/120 days] terms

Purchasing :

L/C, D/P, Credit [45/90/30-180 days] terms

GENERAL INFORMATION

Suppliers :	v Sel Jegat Printers, Sivakasi, v Enzed Chloro Products Private Limited, India v Fine Print Private Limited, India v Yuno Packaging Private Limited, India v Biotica, Spain v Ribbon SCR, Italy v Sauter AG, Germany v Shimatzo, Japan v S. M. Chemicals, Malaysia
Customers :	v Medreich PLC, UK v Glaxo Smith Kleine
No. of Employees :	Total 462 : In Office 75 persons and In Factory 387 persons
Bankers :	v State Bank of Mysore Industrial Finance Branch, Bangalore – 560001, Karnataka, India v Canara Bank Overseas Bank, M. G. Road, Bangalore – 560001, Karnataka, v Housing Development Finance Corporation Limited v Corporation Bank v Karnataka State Financial Corporation v Karnataka State Industrial Investment & Development Corporation Limited
Facilities :	--

Banking Relations :	Good
Auditors :
Name :	KS Aiyar and Company Chartered Accountant
Address :	19/1, 1^st Floor, 2^nd Cross, Lower Palace Orchards, Bangalore – 560003, Karnataka
Associates/Subsidiaries :	v Synchron Research Service Private Limited v Kanpha Labs Private Limited, Bangalore, Karnataka, India v Med Holdings [UK] Limited Subsidiary v Trust Chemists and Druggists Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
44134259	Equity Shares	Rs. 10/- Each	Rs. 441.342 Millions
14196162	Preference Shares	Rs. 78.80/- Each	Rs. 1118.657 Millions
	Total		Rs. 1560.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
28852593	Equity Shares	Rs. 10/- Each	Rs. 288.525 Millions
14196160	Preferences Shares	Rs. 78.80/- Each	Rs. 1118.657 Millions
	Total		Rs. 1407.183 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		1407.183	158.927	158.928
2] Share Application Money		0.000	0.000	0.064
3] Reserves & Surplus		975.734	346.056	263.995
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2382.917	504.983	422.987
LOAN FUNDS
1] Secured Loans		819.266	833.154	674.713
2] Unsecured Loans		0.000	0.000	13.548
TOTAL BORROWING		819.266	833.154	688.261
DEFERRED TAX LIABILITIES		94.180	50.303	44.164
TOTAL		3296.363	1388.440	1155.412
APPLICATION OF FUNDS
		778.599	755.738	741.945
FIXED ASSETS [Net Block]		14.670	0.000	0.000
Capital work-in-progress
		1403.152	28.790	8.530
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	382.889	460.295	470.165
	Sundry Debtors	777.458	529.491	446.221
	Cash & Bank Balances	420.335	40.447	15.453
	Other Current Assets	9.467	7.521	9.073
	Loans & Advances	191.603	99.492	76.008
Total Current Assets		1781.752	1137.246	1016.920
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	606.345	513.087	576.647
	Provisions	75.465	36.274	35.336
Total Current Liabilities		681.810	549.361	611.983
Net Current Assets		1099.942	587.885	404.937
MISCELLANEOUS EXPENSES		0.000	16.027	0.000
TOTAL		3296.363	1388.440	1155.412

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		2487.623	2085.903	1850.070
Other Income		157.618	94.909	0.000
Total Income		2645.241	2180.812	1850.070
Profit/(Loss) Before Tax		208.721	127.560	132.972
Provision for Taxation		36.525	18.544	31.166
Profit/(Loss) After Tax		172.196	109.016	101.806
Earnings in Foreign Currency :
	Export Earnings	NA	NA	1063.579
Total Earnings		NA	NA	1063.579
Imports :
	Raw Materials	NA	NA	484.876
Total Imports		NA	NA	484.876
Expenditures :
	Raw Material Consumed	1762.269	1519.825	0.000
	Salaries, Wages, Bonus, etc.	106.950	81.986	0.000
	Managerial Remuneration	8.864	4.751	0.000
	Payment to Auditors	0.422	0.080	0.000
	Interest	56.608	44.170	0.000
	Insurance Expenses	7.060	5.203	0.000
	Power & Fuel	48.644	50.070	0.000
	Depreciation & Amortization	152.408	113.000	0.000
	Other Expenditure	293.290	234.166	1717.098
Total Expenditure		2436.515	2053.251	1717.098

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	6.50	4.99	5.50
Net Profit Margin (PBT/Sales)	(%)	7.89	5.84	7.18
Return on Total Assets (PBT/Total Assets}	(%)	8.15	6.73	7.56
Return on Investment (ROI) (PBT/Networth)		0.08	0.25	0.31
Debt Equity Ratio (Total Liability/Networth)		0.62	2.73	3.07
Current Ratio (Current Asset/Current Liability)		2.61	2.07	1.66

LOCAL AGENCY FURTHER INFORMATION

History

Subject was incorporated on 16^th August, 1973 at Bangalore in Karnataka under the name and style ‘Sterilab Private Limited’

The company’s name was changed to ‘Medreich Sterilab Private Limited’ w. e. f. 12.09.1996, consequent to financial collaboration with ‘Med Holding [U.K.] Limited], Surrey, U.K. for 51% holding.

It was converted from private limited company to public limited company w. e. f. 01.07.1997.

The company was merged with ‘Krystal Parenterals Private Limited’ w. e. f. 01.04.1999

The company’s name was changed to present recently.

It is in trade terms with :

Ø Medreich Plc, U.K.

Ø Formulation Plc, U.K.

Ø Karib Chenie, U.K.

Ø Glaxo Smith Kleine, U.K.

Ø Formulex, Canada

The company has collaborations with Medreich Plc, U.K.

FIXED ASSETS

Ø Land

Ø Factory Buildings

Ø Office Buildings

Ø Plant and Machinery

Ø Electrical Equipments & Installations

Ø Furniture and Fittings

Ø Vehicles

Ø Office Equipments

Ø Computers

Name of the company	MEDREICH LIMITED
Presented By	Mr. C. P. Bothra, Managing Director
1) Date and description of instrument creating the change	17^th March, 2005 Deed of hypothecation [copy is enclosed]
2) Amount secured by the charge/amount owing on the securities of charge	Term loan of Rs. 250 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	All of the borrowers present and future moveable fixed assets including the plant and machinery, furniture and fixtures, lightings, etc. situated at company’s Unit – I, at 12^th Mile, Old Madras Road, Virgonagar, Bangalore – 49 and at company’s corporate office at Medreich House, No. 12/8, Saraswathi Ammal Street, M. S. Nagar, Bangalore – 33 and morefully described in the schedule attached to the hypothecation agreement.
4) Gist of the terms and conditions and extent and operation of the charge.	YES BANK LIMITED Nehru Centre, 9^th Floor, Dr. A. B. Road, Worli, Mumbai – 18 2.39% p.a. prevalent from time to time Overdue rate : 2% p.a. Principal repayment : 6 equal half yearly installments, first installment payable at the end of 18 months from the date of first drawdown Prepayment : Allowed on the interest reset dates
5) Name and Address and description of the person entitled to the charge.	YES BANK LIMITED Nehru Centre, 9^th Floor, Dr. A. B. Road, Worli, Mumbai – 400018
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Name of the company

MEDREICH LIMITED

Presented By

Mr. C. P. Bothra, Whole Time Director

1) Date and description of instrument creating the change

2^nd December, 2003

Deed of hypothecation [copy is enclosed]

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

Additional Term Loan of Rs. 31.200 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

The plant and machinery of the company acquired / to be acquired for the purpose of expansion of manufacturing facility at its Unit at No. 49D, Bommasandra Industrial Area and more fully described in schedule to the hypothecation agreement and lying at the company’s said unit

Raw materials, stock-in-process, consumables, finished goods stored at the company’s factory premises situated at 12^th Mile, Old Madras Road, Virgo Nagar, Bangalore – 49, and such other places belonging to the company

Second charge on the plant and machinery situated at the company’s factory premises situated at 12^th Mile, Old Madras Road, Virgongagar, Bangalore – 49 and such other places belonging to the company

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

The charge operates as security interalia for the due repayment of the loans and also for all indebtedness or liabilities of the borrower to the bank

Date of creation of charge : 17.07.1997 / 25.07.1997 D. No. 143

1. Date and description of the instrument creating the charge date : 17.07.1997 [Seventeenth day of July Nineteen Ninty Seven] Regd. 25.07.1997

Joint Deed of Hypothecation. Working Capital Consortium Agreement [Both the above agreements pertain to same charge]

2. Amount secured by the charge / amount owing on security of the charge :

Rs. 185 millions

SBM CB

[Rupees in Millions]

A. Fund based

1. C. C. Hypothecation

Packing Credit 24 --

PC/PCFC -- 16

2. Post Shipment

FUBD – DA Bills 36 --

FDB/FBE/BRD -- 24

B. Non Fund Based

1. Inland/Foreign letter

of credit [DA/DP] 30 20

2. Bank Guarantee 21 14

TOTAL ----- -----

111 74

------ -----

a. PACKING CREDIT / PCFC

	State Bank of Mysore	Canara Bank
Interest	13% upto 180 days	13% p.a. for PC and CROI for PCFC
	15% beyond 180 days to 270 days
Margin	25%	25%
ECGC Cover	Will be covered under WIPCG and ECG specific Policy	Will be covered under WIPCG or ECGC
Validity	12 months or earlier at the discretion of the Bank	60 days

B. POST SHIPMENT [FUBD]/FBE/FDB/BRD

Primary
Security	DA/DP Bills	DA/DP Bills
Interest -
For Demand Bills	13%	As per bank’s scheme
Usance bills upto 90 days	13%
90 to 180 days	19.5%
Beyond 180 days	21.5%
Validity / Period	12 months or earlier at the discretion of the bank. Usance period of 45 days to 90 days	Usance period 60 days

C. BANK GUARANTEE :

Security	Counter Guarantee
Margin	15%	15%
Period	Maximum upto 3 years	One year excluding claim period
Validity	12 months or earlier at the discretion of the bank
Purpose	Issuance to DGFT / Custom Authorities	For issue of performance guarantee against import entitlements

D. LC/FLC/ [DA/DP]

Primary Security	Goods covered under LC	Goods covered under LC
Margin	Cash margin 20%	Cash margin 20%
Period	180 days Usance	180 days
Tenor	D/A basis	DA & DP basis
Commission	As per FEDIA Rules / Bank rates	As per FEDIA Rules / Bank rates
Validity	12 months or earlier at the description of the bank

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

STATE BANK OF MYSORE	CANARA BANK
Industrial Finance Branch, 18, Ramanashree Aracade, M. G. Road, Bangalore – 560001 [A Banking Company]	Oveseas Branch, M. G. Road, Bangalore – 560001, [A Banking Company]

6) Date and brief description of instrument modifying the charge

30.05.2003

Joint Deed of Hypothecation

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.

The working capital limits have been increased from 245 millions to Rs. 410 millions

Name of the facility	A Bank	B Bank
	State Bank of Mysore	Canara Bank
FUND BASED
1. Packing Credit [Hypothecation of stocks]	45	30
2. Cash Credit [Hypothecation of Stocks]	9	6
3. Foreign Demand Bills Purchased [FDBP] / Foreign Usance Bills Purchase [FUBP]	102	68
NON – FUND BASED
1. Inland / Import Letter of Credit Sight / DA upto 180 days	72	48
2. Bank Guarantee	18	12
TOTAL	246	164

AS PER WEBSITE

As the world is shrinking and trade barriers are beginning to come down, the pharmaceutical industry is constantly in search of ways to reduce cost without compromising on quality or service; so as to retain a competitive edge in the global market place.

Medreich Sterilab Ltd. (Medreich) is an Indian Company and forms part of the UK Group of companies comprising of Medreich plc. They have an international focus, and world-class accredited plants that are capable of offering low cost, high quality out-sourcing solutions for its customers.

They specialise in developing and delivering bespoke solutions for their major international customers. They have the capability to handle significant complexity and to produce a wide range of products and dosage forms, in varied packing presentations.

Medreich strictly adheres to all cGMP requirements and through regular Audit interactions with International agencies, they are constantly upgrading their plants to meet the needs of the changing Regulatory scenario, Quality requirements, while keeping an eye on Environment, Health and Safety.

Medreich plants are certified by the UK MHRA, TGA Australia, South Africa MCC as well as leading multinational and Indian pharmaceutical companies.

They are committed to setting the best standards in the industry, to build long-term relationships with their customers, deliver complete satisfaction, while improving business performance.

They actively seek strategic alliances with growing, dynamic and leading companies that share their Vision of offering very competitively priced formulations without compromise on Quality and Service.

Quality

Every Unit produced by the Company, will totally conform to the quality systems & procedures laid down by the company.

•  Every Unit produced by the Company, will be in accordance with the process, procedures & controls as laid down by the company.

•  Every input and component that goes into the product produced, will conform to all standards laid down by the Company.

•  Every manual, document, certificates, approvals, will be made to conform to the highest quality standards.

•  Every human resource available in the Company, while they are directly or indirectly connected with the production of every Unit will adhere to all quality systems, controls, & procedure.

•  Every Unit produced by the Company, will carry the Company’s commitment to quality & customer satisfaction.

•  The Company will make constant & continuous endeavors to upgrade & enhance its procedures, systems & controls to keep up to the latest Quality Standards in vogue at any given point in time.

Support

Regulatory Affairs:

Fully equipped and staffed by a team of professionals that can compile and update all regulatory documents in line with International requirements, including those of the UK MHRA, TGA Australia and South African MCC. Speed of response according to the customer’s requirements is paramount to this team, together with the accuracy and presentation of the data.

Shelf Life Claim and Stability testing:

Fully equipped to undertake multiple studies on both finished product packs as well as active ingredients. Stability studies can be done according to the full range of ICH Guidelines as well to more stringent standards of analysis and accelerated stability testing. They always make sure they have the full supporting data and documentation to underpin shelf-life claims.

Logistics:

In-house experienced & professional logistics department capable of delivering the products at a very competitive cost & speed any where in the world.

Packaging development:

In-house experienced technical & creative professionals offering diverse packaging presentations custom made for all the customers.

Press Releases

Adcock to set up Rs 710.000 Millions JV in Bangalore

February 10, 2007

The Bangalore-based The company and Adcock Ingram Holdings (PTY), a leading South Africa-based healthcare company, have signed an agreement to set up a joint venture in Bangalore to cater to the burgeoning South African healthcare market.

According to Medreich CEO Rajeev Mehta, "This is the culmination of a relationship between Medreich and Adcock working in close cooperation to cater to the healthcare markets in South Africa". Under the agreement, Medreich's world-class production facilities in Bangalore will be utilised. Medreich and Adcock Ingram as equity partners will together invest to the tune of US$ 16 million (Rs 710.000 Millions) in the joint venture.

The company, which has a strategic presence in Europe, UK, South East Asia, Australia and New Zealand, will continue its independent thrust to consolidate its growth in these markets as well. Medreich subsidiaries and joint ventures reflect the company's core value: 'global reach through local partnerships. Last year, Temasek Holdings, the investment arm of the Government of Singapore, acquired an equity stake in Medreich as a strategic investment.

Adcock Ingram, a leading South African branded healthcare marketing and manufacturing organization, is part of Tiger Brands, a JSE and LSE listed company with a market capitalization of US $ 3.1 billion. Tiger Brands have a diverse food and healthcare portfolio in South Africa. Besides, Adcock Ingram owns numerous leading brands in the pharmaceutical sector in South Africa and has a strong presence in both private and tender markets of South Africa. The company has manufacturing facilities and a Formulation Development Centre in Johannesburg.

Significantly, Medreich's business model envisions migrating from large volume contract manufacturing to higher value-added strategic partnership with global majors. For Adcock Ingram, this is one more step towards growing its global presence. This JV is one aspect of Adcock Ingram's overall global strategic supply chain strategy, providing a competitive sourcing route and expansion of operations outside South Africa. Adcock Ingram will, at the same time, invest in its local South African manufacturing capacity.

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.39.82
UK Pound	1	Rs.80.85
Euro	1	Rs.56.22

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		74

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