MIRA INFORM REPORT

Report Date :

20.08.2008

IDENTIFICATION DETAILS

Name :	SHAKTI FURNITURE WORKS
Registered Office :	Kanhpada, Ramachandra Extn Lane, Behind Sea Queen Hotel, Opposite SPAC House, Gala No.10, Malad (West), Mumbai – 400064, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Year of Establishment :	1993
PAN No.: [Permanent Account No.]	AIIUPM0630R
Legal Form :	Sole Proprietory Concern
Line of Business :	Manufacturer of Making Wooden Furniture (High Value Quality Items in Furniture)

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

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed concern having satisfactory track. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The concern can be considered good for normal business dealings.

LOCATIONS

Registered Office/ Factory :	Kanhpada, Ramachandra Extn Lane, Behind Sea Queen Hotel, Opposite SPAC House, Gala No.10, Malad (West), Mumbai – 400064, Maharashtra, India
Tel. No.:	91-22-28809449
Mobile No.:	91-9870177743
Location :	Owned

SOLE PROPRIETOR

Name :	Mr. Bipin L. Mistry
Designation :	Proprietory
Address :	C-211, Shree Vishal Complex, Narsingh Lane, Malad (West), Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	16.02.1964
Qualification :	B. Com
Experience :	Last 15 years in the same line

BUSINESS DETAILS

Line of Business :

Manufacturer of Making Wooden Furniture (High Value Quality Items in Furniture)

GENERAL INFORMATION

Suppliers :

Name of Party	Contact No.	Materials
Mahavir Ply and Viners Shop No. 8, Haridarshan Building, L. T. Road, Borivali (West), Mumbai – 400092, Maharashtra, India	91-22-28906375/ 28905201	Plywood and Vineers
Virar Glass Centre Sheeta Nagar, Building No.1, Shop No.2, C S Road, Virar, (West), Mumbai – 401304, Maharashtra, India	91-9860215373	Glass
Maruti Plywood Shop No.4, Nandudham, L T Road, Borivali (West), Mumbai – 400092, Maharashtra, India	91-28951998/ 28907856	Plywood
Hetansh Traders D/103, New Rawal Nagar, Mira Road, (East), Thane – 401107, Maharashtra, India	91-9324272450	Electrical and Hardware and Paints
Marudhar Hardware Shop No.2, Ekta Village, M G RFoad, Borivali (West), Mumbai – 400066, Maharashtra, India	91-22-56864457	Furniture and Fitting Items
Vijay General Stores Main Kasturba Road, Borivali (East), Mumbai – 400066, Maharashtra, India	91-22-28058948	Paints and Polishing
Manshi Traders 302, Niti Shah Apartment, Kirtikar Bunglow, T P Road, Malad (West), Mumbai – 400064, Maharashtra, India	91-22-28808850/ 9324408850	Foam
Shankarlal Narayanlal Opposite Pioneer Showmill, 118/R, Mustafa Bazar, Byculla (East), Mumbai – 400010, Maharashtra, India	91-22-23731343	Plywood
Jalaram Foam Centre 3, B Ganga Building Malad (East), Mumbai – 400057, Maharashtra, India	91-22-28834907	Rubberist
Ruchi Enterprises 57, Ammin Building, Mumbai – 400002, Maharashtra, India	91-22-23753857	Printed Satin Cloth
Light View Electricals 104, Lower Chawl, Mumbai – 400002, Maharashtra, India	91-22-54141	Electronic Items
Hiral Traders Deepak Building, Dahisar (East), Mumbai- 400068, Maharashtra, India	91-9324272450	Chair Plate
City Colour Company 107, Fazza Shopping Centre, Surat	91-22-3228218	Painting and polishing Materials
Polishwala Trading Company 55, Sardar Complex, Adjan Road, Surat	91-9825143196	Polishing Items
Jitendra and Company Kotasafil Main Road, Surat, India	91-2436376	Aluminum Materials
Reactive Polymers Limited Gala No.31, Kembros Industries Estate, Sonapur Lane, Mumbai – 400078, Maharashtra, India	91-22-67974033	Glass, Thermoforming Equipments.
Intergral Internationals G-21, Kirti Nagar, New Delhi – 110015, Maharashtra, India	91-22-25459635	Modular Kitchens, Modular Wooden Kitchens, Decorative Modulded Kitchen
Aditya Enterprises Shop No.10, 38 Deepak Building, J B Nagar, Andheri- East, Mumbai I -400059, Maharashtra, India	91-22-28303272	Plastic Home Furniture, Moulded Cabinets, Moulded Kitchen Shutters
Turret Art Metal Private Limited 15-16, Shiva Estate, Lake Road, Bhandup (West), Mumbai – 400001, Maharashtra, India	91-22-25964771	Metallic Home Furniture Wrought Iron Furniture’s, Wrought iron sofa tables, wrought iron dinning tables
Sanjar House of Furnitures Gulzar House, Near N L High School, S V Road, Malad ?(West), Mumbai – 400064, Maharashtra, India	91-22-28081632	Children Bedroom Sets with Computer Trolliers.

Customers :

• Essar Steel Limited
• Essar Power Limited
• Bhandar Power Limited
• Shirdi Country Inns. Private Limited
• Palam Grove Beach Hotels Private Limited
• Makewaves Sea Resort Private Limited
• Vaibhav Empire Private Limited
• Surya Hotel, Pune
• DSK Bunglow- Pune

No. of Employees :

20 (Office – 2 and Factory – 18)

Bankers :

• Bank of Baroda

Borivali (East) Branch, Mumbai, Maharashtra, India

• Corporation Bank

Kalbadevi Branch, Mumbai, Maharashtra, India

Facilities :

Cash Credit Facilities of Rs.3.500 Millions and Local L/C Facilities of Rs.3.000 Millions from Corporation Bank

Banking Relations :	Satisfactory
Auditors :
Name :	Shashank Ranade and Company Chartered Accountant
Address :	3/1, Radha Krishna Nivas, Ground Floor, Dagadi Wadi, S. K. Bole, Dadar (West), Mumbai – 400028, Maharashtra, India

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs.2.173 Millions
Borrowed :	-
Total :	Rs.2.173 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Proprietors Capital		2.173	0.654	1.340
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.173	0.654	1.340
LOAN FUNDS
1] Secured Loans		0.347	0.435	0.016
2] Unsecured Loans		3.760	3.616	0.000
TOTAL BORROWING		4.107	4.051	0.016
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6.280	4.705	1.356
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.667	0.778	0.222
Capital work-in-progress		0.000	0.000	0.000
TDS		0.000	0.000	0.248
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.895	2.836	0.000
	Sundry Debtors	1.724	1.549	0.415
	Cash & Bank Balances	0.090	0.163	0.526
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.449	0.337	0.000
Total Current Assets		6.158	4.885	0.941
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.545	0.956	0.055
	Provisions	0.000	0.000	0.000
Total Current Liabilities		0.545	0.956	0.055
Net Current Assets		5.613	3.929	0.886
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6.280	4.705	1.356

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		17.533	14.389	0.000
Other Income		0.003	0.000	1.393
Total Income		17.536	14.389	1.393
Profit/(Loss) Before Tax		1.024	0.817	0.651
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		1.024	0.817	0.651
Expenditures :
	Cost of Goods Sold	11.281	7.771	0.000
	Manufacturing Expenses	0.004	0.020	0.017
	Salaries, Wages, Bonus, etc.	0.416	0.379	0.345
	Payment to Auditors	0.000	0.000	0.017
	Insurance Expenses	0.000	0.000	0.008
	Depreciation & Amortization	0.111	0.125	0.027
	Other Expenditure	4.700	5.277	0.328
Total Expenditure		16.512	13.572	0.742

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	5.84	5.68	46.73
Net Profit Margin (PBT/Sales)	(%)	5.84	5.68	0.00
Return on Total Assets (PBT/Total Assets}	(%)	15.00	14.58	55.98
Return on Investment (ROI) (PBT/Networth)		0.47	1.25	0.49
Debt Equity Ratio (Total Liability/Networth)		2.14	7.66	0.05
Current Ratio (Current Asset/Current Liability)		11.30	5.11	17.11

LOCAL AGENCY FURTHER INFORMATION

PERSONAL ASSETS OF THE PROPRIETOR

Name	Description of the Assets Owned by them	Rs. In millions	Whether Offered as Security
Mr. Bipin L. Mistry	Shop Situated at Kandivali	Rs.9.000 Millions	Yes

STOCK POSITION:

They are keeping their stock 60% at customer’s site and 40% at their factory. Average stock position they are keeping Rs.1.700 Millions to Rs.1.800 Millions at customers site and they are keeping Rs.1.200 Millions to Rs.1.500 Millions at their factory premises.

PAYMENT DETAILS:

They are received their payment after completion of their job work normally they are receiving their payment from their parties within 30 to 75 days times.

ORDER POSITIONS:

Name of Party	Rs. In Millions
Shirdi Country Inns. Private Limited	0.926
Ferani Developers	0.860
Makewaves Sea Resort Private Limited	0.712
Palam Grove Beach Hotels Private Limited	1.884
Vaibhav Empire Private Limited	0.204
Bhandar Power Limited	0.096
Essar Power Limited	11.422
Essar Steel Limited	6.351

OPERATING STATEMENT (Rs. In Millions)

REVENUE :	31.03.2009 (Estimated)	31.03.2010 (Projected)
Value of work completed	20.560	21.680
Add: Closing Work-in-progress	4.580	5.020
Less: Operating Work-in-progress	3.895	4.580
GROSS REVENUE	21.245	22.120
COSTS:
Materials Consumed	13.560	13.890
Sub-Contract Work
Salaries and Wages	4.120	4.360
Repairs and Maintenance	1.060	1.155
Other Construction Expenses	0.000	0.000
Depreciation	0.145	0.150
Provision for Claims on Contracts	-	-
COST of CONSTRUCTION	18.885	19.555
GROSS PROFIT	2.360	2.565
Interests
General and Administrative Expenses	1.215	1.360
Provision for abnormal losses/ Claims etc.
SUB - TOTAL	1.215	1.360
OPERATING PROFIT
Non Operating Items
Add Non- Operating Income
Profit on sale of assets/ investments	0.000	0.000
Interests from Investments	0.000	0.000
Forex Gains	0.000	0.000
Non-Op Income from subsidiaries	0.000	0.000
Tax Refund	0.000	0.000
Other Non Operating Income	0.000	0.000
Total Non-Operation Income	0.000	0.000
Deduct Non- Operating Income
Loss on sale of assets	0.000	0.000
Prem Expenses W/off	0.000	0.000
Other Non-operating Expenses	0.000	0.000
Total Non-Operating Expenses	0.000	0.000
Net of Non-Operating Income and Expenses	0.000	0.000
Profit Before Tax	1.145	1.205
PROVISION FOR TAX
Current	0.000	0.000
Deferred	0.000	0.000
Sub Total: Provision for Tax	0.000	0.000
Net Profit After Tax	1.145	1.205
DIVIDENTS PAID
On Equity Cap	0.000	0.000
On Preference Share Cap	0.000	0.000
Dividend Tax	0.000	0.000
Partner’s Withdrawl	0.000	0.000
Dividend%	0.000	0.000
Retained Profits	1.145	1.205
Cash Accruals	1.290	1.355

ANALYSIS OF BALANCE SHEET (Rs in Millions)

CURRENT LIABILITIES	31.03.2009 (Estimated)	31.03.2010 (Projected)
Short – Term borrowings from banks [including bill purchased, discounted and excess borrowings placed on repayment basis]
I From Applicant Bank	3.500	4.000
II From Other Bankers	0.000	0.000
Sub Total [A]	3.500	4.000
Short Term Borrowings from others	0.000	0.000
Deposits (Maturing Within one Year	0.000	0.000
Mobilisation/ Works advances received from clientele and recoverable/ Repayable within a years	0.000	0.000
Sundry Creditors
For Materials	0.200	0.250
Outstanding Payments Towards Wages and Salaries	0.000	0.000
For Other Expenses	0.000	0.000
Outstanding Payments to sub contractors	0.000	0.000
Unsecured Loans (Repayable Within 12 Months)	0.000	0.000
Advance/ Progress payments from customers  / Deposits from sub contractors repayable Within 12 Months	0.000	0.000
Provision for tax [net of Tax paid]	0.000	0.000
Dividend and Dividend Tax payable	0.000	0.000
Other statutory liabilities [due within 12 Months]	0.000	0.000
Installments of term loans / DPGs / debentures/ Redeemable Preference Shares (due within 12 Months)	0.000	0.000
Other current liabilities/ Purchased against L/C	0.000	0.000
Sub – Total [B]	4.200	4.750
TOTAL CURRENT LIABILITY	7.700	8.750
TERM LIABILITIES
Debentures	0.000	0.000
Redeemable Preference Shares	0.000	0.000
Term loans	0.000	0.000
Deferred Payment Credit	0.000	0.000
Term deposit	0.000	0.000
Unsecured Loans	0.000	0.000
Advances/ Progress Payment From Customers, if any. Deposits from sub contractors repayable after 1 years	0.000	0.000
Deferred Tax Liability	0.000	0.000
Other Term Liabilities	1.000	1.200
TOTAL TERM LIABILITIES	1.000	1.200
TOTAL OUTSIDE LIABILITIES	8.700	9.950
NET WORTH
Equity Shares Capital
Proprietor’s Capital Account	0.000	0.000
Preference Shares	0.000	0.000
Sub Total Shares Capital	0.000	0.000
General Reserve	0.000	0.000
Revaluation Reserve	0.000	0.000
Other Reserve and Surplus
Partners Capital/ Proprietor’s Capital	3.200	3.500
Others	0.000	0.000
NET WORTH	3.200	3.500
TOTAL LIABILITIES	11.900	13.450
CURRENT ASSETS
Cash and Bank Balance	0.215	0.579
FD Held with Banks
I] Deposit encumbered for raising CCSDL, etc	0.500	0.500
II] Unencumbered Deposits	0.000	0.000
I] Receivables Upto 180 days other than deferred and exports [Including bills purchased and discounted by banks]	5.059	6.310
II] Export receivables Upto 180 days [Including bills purchased / discounted by banks]	0.000	0.000
Installments of Deferred  payment receivables [due within one year]	0.000	0.000
Inventory of materials and Consumable Spares	4.580	5.020
Work – in – progress	0.000	0.000
Work Completed	0.000	0.000
Commission due and to be received from sub contractors	0.000	0.000
Mobilisation/ Works advances received from clientele and recoverable/ Repayable within 12 years	0.000	0.00
Advance to suppliers of materials Consumable stores and spares	0.000	0.000
Advance to payment of taxes/ Tax deducted at sources	0.000	0.000
Other current assets	0.975	0.500
TOTAL CURRENT ASSETS	11.329	12.959
FIXED ASSETS
Gross Block	0.666	0.571
Depreciation to date	0.095	0.080
NET BLOCK	0.571	0.491
Capital Work in Progress	0.000	0.000
OTHER NON – CURRENT ASSETS
Mobilisation/ Works advances received from clientele and recoverable/ Repayable within 12 years	0.000	0.000
SD/EMD/ retention Money/ other deposits lying with contract awarding authorities to the extent recoverable/ repayable after 1 years	0.000	0.000
Investments / book / debts / advances / deposits which are not Current Assts
I] [a] Others Investments in Subsidiary	0.000	0.000
[b] Others companies / affiliates	0.000	0.000
II] Advances to suppliers of capital goods and Spares	0.000	0.000
III} Deferred receivables [maturity exceeding one year]	0.000	0.000
IV] Investment	0.000	0.000
V] Held as Cash Margin for for BGs and DPGs etc.	0.000	0.000
Debtors 6 month	0.000	0.000
Non consumables Stores and Spares	0.000	0.000
Deferred Tax Assets	0.000	0.000
Other non – current assets including dues from directors	0.000	0.000
TOTAL OTHER NON – CURRENT ASSETS	0.000	0.000
Intangible assets [Patents, goodwill, prelim, expenses, bad / doubtful debts Not provided for etc.]	0.000	0.000
TOTAL ASSETS	11.900	13.450
Difference in Balance Sheets	0.000	0.000
Net Working Capital	3.629	4.209
Current Ratio	0.147	0.148
TOL/ TNW	0.272	0.284

VALUATION REPORT OF IMMOVABLE PROPERTY PART I (QUESTIONNAIRE)

1.Purpose for Which Valuation Made	To assess the Fair Market Value for the purpose of collateral security/ Availing credit facility from Corporation Bank, Kalbadevi Branch
2.Date on which Visit Made	8^th July, 2008
3.Name of the Owners	Mr. Laxmichand Virchand Mistry Mr. Bipin Laxmichand Mistry
4.If the property is under joint ownership co-ownership share of each owner, is the share undivided	Ownership as per agreement dated 23^rd December, 2004 Share Certificate No. Dated Distinctive Nos.
5.Brief Description of the Property	The said property consists of commercial Premises at Ground Floor, Shop No.2, At Shreeji Darshan Shopownereres Association
6. Location Street, Ward No.	At S V Road, Near Balbharati School, Kandivali (West), Mumbai – 400067.
7.Survey Plot No. of Land	CTS No.100 and 101 At Village Malad, Taluka Borivali
8.It the Property Situated in residential/ Commercial/ Mixed/ Industrial Area	Situated in Commercial Area
9. Classification of locality – High Class/ Middle Class/ Poor Class.	Higher Middle Class
10.Proximity to civic amenities like schools offices, Hospitals, Market Cinemas etc.	Available at about 0.5 to 1 Km Distance Railways Station, Kandivali (West), at 0.5 Km Distance
11.Means and Proximity to surface Communication by which the locality is served	Autos, Buses, Taxis and Suburban Railway service available Western Express Highway at 4 Km distance
LAND
12.Area of land supported by documentary	Commercial Premises on Ground Floor, Shop No.2, At Shreeji Darshan Shopowners Association Admeasuring Carpet Area 355 sft. Including otla (actual) and Built up area 497 sft as per my opinion. And Built up area sft as per agreement.
13.Roads or Lanes on which land is abutting	At S. V. Road
14.Is it Freehold or Lease hold	Freehold Land
15. Does the land fall in area included in own planning scheme or any development of Government of any statutory body? If so, give particulars	Falls within Limits of MCGM Taluka – Borivali
16.Has any contribution been made towards development or is any contribution still outstanding?	Surrounded by compound wall and gates
IMPROVEMENTS
17. Attach Plans and elevation of all structures standing on the land or layout plan.	Photographs Attached Approved Plans with Owner
18.Furnish technical details of the building on separate sheet	Refer Technical Report
19.Is the building owner occupied, tenant, or both	Owner Occupied (Commercial Shop) (Presently Given on Rent)
20. What is F S I Permissible and percentage actually utilized?	C.C. No. CE/4096/BPWS/AR Dated 23.04.1980
RENTS
21.Given details of water and electricity charges if any to be borne by the owner	Borne by owners
22.If a Pump is installed who has to bear the cost	Cost borne by the owners
23.Who has to bear the cost of electricity for lighting of common space like entrance, hall stairs, Passages, Compounds etc.	Maintained by owners and cost borne by owner
24.What is the amount of Property tax? Who to bear it? Give details with documentary Proof	Included in society maintenance charges of Rs.10200 Per 6 Months and borne by Owners
SALES
25.Give instance of sale of immovable property in the locality on a separate sheet including the name and address of the property, registration No.Sale proce and area land sold.	The Fair Market Value of the said Property is assessed from the market survey and inquiry from Local Estate Agents. The said shop is at Ground Floor, Building is 26 years Old.
26.Land rate/ adopted in this valuation	The said shop is having front space of 250sft to be used exclusively by the shop owners.
27.If sale instance are not available or relied upon the basis of arriving at the land rate	Considering the above factory the Fair Market Value of the said Premises is as follows The built up area 335 sq. ft.@ Rs.0.027 Million = Rs.9.045 Millions
COST OF CONSTRUCTION
28.Year of Commencement of construction and year of completion	Year 1980-81

TECHNICAL DETAILS FOR THE PREMISES

1.No. of Floor and height of Floor	Ground +12 Floors having 10-0 height
2.Plinth Area – Floor – wise (As per is 3861-1966)	Commercial Premises on Ground Floor, Shop No.2, At Shreeji Darshan Shopowners Association Admeasuring Carpet Area 355 sft. Including otla (actual) and Built up area 497 sft as per my opinion. And Built up area sft as per agreement.
3.Year of construction	1980-81
4.Estimated Future life	Approx40 Years
5.Types of Construction – Load Bearing wall / RCC	RCC Framed Structure
6. Types of Foundations.	RCC
7. Walls: Basement and Plinth	9” Thick Brick/ Stone Masonry
Super Structure above	9” Thick Brick Masonry
8.Door and Windows (Floor – Wise)	Aluminium glass Door and M S Rolling Shutter
9.Flooring (Floor – Wise)	Marble Flooring
10.Finishing (Floor – Wise)	Sand face cement plaster externally and neeru cement plaster internally.
11.Roofing and terracing	RCC Flat roof
12.Special Architectural or decorative feature if any	Not Provided
13.Internal wiring surface or conduit	Conduit
Class of fittings superior/ ordinary/ poor	Good Quality
14. a] Sanitary Installations	Common Toilet Provided
b] Class of fittings superior coloured/ superior white/ ordinary	Average Quality
15.Compound Wall	Masonary Wall provided with gates
16.No. of Lifts and Capacity	Two
17.Underground Sump	Provided
a. Capacity	As per MCGM regulations
b. Type of Construction	RCC
18.Overhead Tank	Provided
a. Where Loacted	On Toilet Block
b. Capacity	As per MCGM regulations
c. Type of Construction	RCC
19.Pumps No. and their horse Power	Provided of adequate capacity
20.Roads and paving within the compound, approx area, type of paving.	Interlocking Tiles Paving
21. Sewage disposal/ whether connected to public sewers. If septic tanks provided, No. and Capacity	Connected to Public Sewer

Fixed Assets:

• Air Condition
• Bike
• Computer
• Factory Premises
• Furniture and Fixture
• Plant and Machinery
• Motor Car

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.43.23
UK Pound	1	Rs.80.89
Euro	1	Rs.63.80

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	6
--PROFITABILIRY	1~10	4
--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	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--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