MIRA INFORM REPORT

Report Date :

01.12.2008

IDENTIFICATION DETAILS

Name :	AXIS IMPEX
Registered Office :	Shop No. 4 / 83-85, Dady Sheth Agiary Lane, Mumbai – 400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	05.07.2001
TAN No.: [Tax Deduction & Collection Account No.]	MUMA15143C / MUMA14877C
PAN No.: [Permanent Account No.]	AAGFA2650N
Legal Form :	Partnership concern with an unlimited liability of the partners
Line of Business :	Manufacturer and Exporter of Plastic Insulated-Ware, House Hold, Gift Articles and Stainless Steel Double Body Casseroles.

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 :	No Complaints
Litigation :	Clear
Comments :	Subject is a well established and reputed concern having satisfactory track. Partners are reported as experienced, respectable and having satisfactory means of their own. Trade relations are fair. Business is active. No complaints have been heard. The concern can be considered good for normal business dealings. It would be advisable to take adequate securities while dealings with the subject.

LOCATIONS

Registered Office :	Shop No. 4 / 83-85, Dady Sheth Agiary Lane, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-22006210
Fax No.:	91-22-22006204
E-Mail :	axisimpex@vsnl.net
Factory :	7/13, Riddo Soddjo Industrial Estate, Chinbpada, Vasai [East], Thane – 401208, Maharashtra, India
Tel. No.:	91-22-22452687

PARTNERS

Name :	Mr. Velji Moshi Shah
Designation :	Partner
Name :	Mr. Kanti M. Shah
Designation :	Partner
Name :	Mr. Hiten H. Shah
Designation :	Partner
Name :	Mr. Jitendra R. Gada
Designation :	Partner

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Plastic Insulated-Ware, House Hold, Gift Articles and Stainless Steel Double Body Casseroles.

GENERAL INFORMATION

Suppliers :

• Resin Distributors Private Limited
• Alfa Chemical Corporation
• Amrit Chem
• Classic Xerox and Stationery
• Dhandeep Trading Private Limited
• Jinal Industries
• Lucky Plastics
• Mahalaxmi Industries
• Niranjan Plastics Private Limited
• Padmavati Corporation
• Reliance Industries Limited
• Reliance Logistics Private Limited
• Riya Metal Industries
• Shree Balaji Metal Cutting Work
• Veetak Plastic
• Jain Traders
• Sharma Transport Service

Customers :

• Imtol S A
• Al Adrikni Trading
• Baba Cimpex
• Erfan House Hold Appliances Trading
• L A Menagere S. A.
• Mayfair International
• Mohammed M Siddiq Abdullah
• Nakoda Alloys Private Limited
• Smit Exports
• Shah Impex
• Varun Industries Limited
• White Impex General Trading LLC

Bankers :

Corporation Bank

Facilities :

Secured Loan	Rs in Millions
Cash Credit Facility from Corporation Bank	6.261
Pre-Shipment Credit Facility from Corporation Bank	9.985
Post Shipment Credit Facility from Corporation Bank [including Interest accrued and due Rs. 0.020]	0.020
Total	16.266

Banking Relations :	Satisfactory
Auditors :
Name :	Hasmukh P. Nandu and Associates Chartered Accountants
Address :	208, Jolly Bhavan No. 1, 10, New Marine Lines, Mumbai – 400020, Maharashtra, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 31.03.2008

PARTNERS CURRENT ACCOUNT

Mr. Velji Monshi Shah’s Current Account

Rs in Millions

Particulars	Amount	Particulars	Amount
To Share of Firm’s Tax :
Income Tax	0.794	By Balance b/d	4.045
Fringe Benefit Tax	0.013
To Withdrawals	0.060	By Remuneration	0.012
To Bank	4.000
To Balance c/d	1.344	By Share of Profit	2.154
Total	6.211	Total	6.211

Mr. Kanti Monshi Shah’s Current Account

Rs in Millions

Particulars	Amount	Particulars	Amount
To Withdrawals	0.060	By Balance b/d	4.342
To Share of Firm’s Tax :
Income Tax	0.794	By Remuneration	0.012
Fringe Benefit Tax	0.013
To Balance c/d	5.641	By Share of Profit	2.154
Total	6.508	Total	6.508

Mr. Hiten Hansraj Shah’s Current Account

Rs in Millions

Particulars	Amount	Particulars	Amount
To Withdrawals	0.096	By Balance b/d	3.633
To Bank	0.150
To Share of Firm’s Tax :		By Remuneration	0.024
Income Tax	0.794
Fringe Benefit Tax	0.013	By Share of Profit	2.154
To Balance c/d	4.758
Total	5.811	Total	5.811

Mr. Jitendra Raghavji Gada’s Current Account

Rs in Millions

Particulars	Amount	Particulars	Amount
To Withdrawals	0.096	By Balance b/d	3.924
To Share of Firm’s Tax :	0		0
Income Tax	0.793	By Remuneration	0.024
Fringe Benefit Tax	0.013		0
To Balance c/d	5.200	By Share of Profit	2.154
Total	6.102	Total	6.102

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] Partner’s Capital A/c		0.020	0.020	0.020
2] Partner’s Current A/c		16.941	15.943	11.324
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		16.961	15.963	11.344
LOAN FUNDS
1] Secured Loans		16.266	0.020	0.020
2] Unsecured Loans		1.150	5.250	7.450
TOTAL BORROWING		17.416	5.270	7.470
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		34.377	21.233	18.814
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.352	9.379	13.243
Capital work-in-progress		1.800	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.175	7.649	8.236
	Sundry Debtors	24.930	20.377	11.756
	Cash & Bank Balances	0.017	0.258	0.989
	Deposits	0.413	0.332	0.032
	Loans & Advances	17.352	11.065	8.348
Total Current Assets		59.887	39.681	29.361
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	35.662	27.827	23.790
	Provisions	0.000	0.000	0.000
Total Current Liabilities		35.662	27.827	23.790
Net Current Assets		24.225	11.854	5.571
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		34.377	21.233	18.814

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		231.441	181.034	126.715
Other Income		0.508	0.146	0.756
Total Income		231.949	181.180	127.471
Net Profit		8.615	7.363	5.491
Expenditures :
	Cost of Goods Sold	116.315	147.295	81.763
	Salaries, Wages, Bonus, etc.	2.047	1.690	1.498
	Managerial Remuneration	0.072	0.072	0.072
	Interest	0.936	0.615	0.712
	Insurance Expenses	0.126	0.154	0.141
	Professional Fees	0.148	0.190	0.158
	Depreciation & Amortization	3.044	4.489	3.818
	Other Expenditure	100.646	19.312	33.818
Total Expenditure		223.334	173.817	121.98

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	3.71	4.06	4.31
Net Profit Margin (PBT/Sales)	(%)	3.72	4.07	4.33
Return on Total Assets (PBT/Total Assets}	(%)	12.62	15.01	12.89
Return on Investment (ROI) (PBT/Networth)		0.51	0.46	0.48
Debt Equity Ratio (Total Liability/Networth)		3.13	2.07	2.76
Current Ratio (Current Asset/Current Liability)		1.68	1.43	1.23

LOCAL AGENCY FURTHER INFORMATION

COMPUTATION OF TOTAL INCOME

Rs in Millions

Particulars

Amount

Amount

Business income [Non Speculation]

Book Profits

8.687

Less : Remuneration to Working Partners

0.072

8.615

TOTAL INCOME

8.615

Tax on Total Income

2.584

Add : Surcharge

Nil

2.584

Add : Education Cess @ 3 %

0.078

Less : Taxes Paid :

2.662

[A] Advance Tax Paid :

Date	Amount
13.09.2007	0.200
14.12.2007	2.000
14.03.2008	0.500
Total	2.700
[B] T. D. S.	Nil

2.700

Refund Due

0.038

Tax Paid u/s 140A Rs. Nil

Form No. 30 for claim of refund is enclosed

A L L O C A T I O N

Sr. No.	Name of the Partners	Remuneration	Income U/s 28
1.	Mr. Velhi Monshi Shah	0.012	0.012
2.	Mr. Kanti Monshi Shah	0.012	0.012
3.	Mr. Hiten Hansraj Shah	0.024	0.024
4.	Mr. Jitendra Raghavji Gada	0.024	0.024
		0.072	0.072

Fixed Assets

• Plant and Machinery
• Motor Vehicles
• Computer
• Factory Land and Building
• Electrical Installation
• Furniture and Fixtures

Following are details of sales for period 01.04.2008 to 30.09.2008

Total sales for the period 01.04.2008 to 30.09.2008 is Rs. 121.060 Millions

Export Sales for the period 01.04.2008 to 30.09.2008 is Rs. 80.255 Millions

Domestic sales for the period 01.04.2008 to 30.09.2008 is Rs. 40.805 Millions

Rs in Millions

April
Export Sales	9.760
Domestic Sales	6.784
Total Sales	16.544
May
Export Sales	9.208
Domestic Sales	8.247
Total Sales	17.455
June
Export Sales	17.635
Domestic Sales	7.103
Total Sales	24.738
July
Export Sales	12.129
Domestic Sales	6.606
Total Sales	18.735
August
Export Sales	19.623
Domestic Sales	3.933
Total Sales	23.556
September
Export Sales	11.899
Domestic Sales	8.132
Total Sales	20.031

Following are details of sales for period 01.04.2008 to 31.10.2008

Total sales for the period 01.04.2008 to 31.10.2008 is Rs. 137.726 Millions

Export Sales for the period 01.04.2008 to 31.10.2008 is Rs. 93.095 Millions

Domestic sales for the period 01.04.2008 to 31.10.2008 is Rs. 44.630 Millions

Rs in Millions

April
Export Sales	9.760
Domestic Sales	6.784
Total Sales	16.544
May
Export Sales	9.208
Domestic Sales	8.247
Total Sales	17.456
June
Export Sales	17.635
Domestic Sales	7.103
Total Sales	24.738
July
Export Sales	12.129
Domestic Sales	6.606
Total Sales	18.735
August
Export Sales	19.623
Domestic Sales	3.933
Total Sales	23.556
September
Export Sales	11.899
Domestic Sales	8.132
Total Sales	20.032
October
Export Sales	93.096
Domestic Sales	44.631
Total Sales	137.727

1. A. Interest paid to partners : Rs. Nil

B. Working of Book Profits and Remuneration payable to partners : -

WORKING OF BOOK PROFITS AND REMUNERATION PAYABLE TO THE WORKING PARTNERS FOR Y. E. 31.03.2008

Net Profit as per Profit and Loss Account

[Without debiting remuneration to working partners] [8.615 + 0.072] 8.687

Add : Items Considered Separately :

Deprecation 3.044

Interest to Partners -----

3.044

-------

11.731

Less : [i] Depreciation allowable as per I. T. Rules 3.044

[ii] Interest to Partners ---- 3.044

--------

Book Profits i.e. [Business Profits before charges remuneration to working partners] 8.687

Calculation of Remuneration Payable to the Working Partners

In case of Book Profit exceeding Rs. 0.083 0.072

-------

Remuneration Payable to the Working Partners 0.072

DISTRIBUTION OF REMUNERATION AMOUNT THE WORKING PARTNERS

Name of the Working Partners Amount

Velji Monshi Shah 0.012

Kanti Monshi Shah 0.012

Hiten Hansraj Shah 0.024

Jitendra Raghavji Gada 0.024

----------------------------------------- -------------------------

Total Remuneration RS. 0.072

Amount Inadmissible = Remuneration Paid – Remuneration Allowable

= Rs. 0.072 - Rs. 0.072

= Rs. Nil

2. The income u/s 41 (1) of Rs. Nil which comprises of “Discounts, Rate Difference and Kasar” received from suppliers of goods and services arising in the course of settlement of their outstanding opening balance as on 01.04.2007 has already been credited to Vatav and Kasar A/c

3. The item u/s 43 B, Cl. [a], [b], [c], [d], [e] and [f] incurred in the previous year and paid within the previous year and thereafter before the due date for filing return of income u/s 139 [1] :

U/s 43 B [a] :

Taxes, Duty, Cess, etc

Excise Duty Rs. 0.464 Millions

Custom Duty Rs. 2.978 Millions

Maharashtra Value Added Tax [F.Y. 2007-08] Rs. 0.113 Million

Licence Fees Rs. Nil

Gram Panchayat Tax Rs. 0.042 Million

Service Tax [Including Rs. 0.015 Million Paid on 04.04.2008] Rs. 0.167 Million

Central Sales Tax Rs. 0.065 Million

U/s 43B [b] : Contribution to P.F., E.S.I.C. etc

E. S. I. C. [Paid on 16.04.2008] Rs. 0.006 Million

U/s 43 B [c] : Bonus or Commission to Employees : Rs. Nil

U/s 43 B [d] : Interest to Public Financial Institutions Rs. Nil

U/s 43 B [e] : Interest to Scheduled Bank Rs. 0.456 Millions

U/s 43 B [f] : Leave Encashment Rs. Nil

4. Details of Modified value added Tax credits availed of or utilized during the previous year :

The Firm has availed of Cenvat credit on raw – materials / inputs used in the process of manufacture and on finished goods and no CENVAT credit has been availed on any Capital Goods, and the Firm has also availed of CENVAT credit of Services Tax, the details whereof are as follows :

	On raw – Materials / Inputs / Finished Goods	Remarks
Balance representing CENVAT Credits as on 01.04.2007	Rs. 0.958 Millions	--
CENVAT Credit availed during the year	Rs. 19.814 Millions	The said amount is debited to CENVAT Credit receivable account.
CENVAT Credit utilized during the year	Rs. 18.072 Millions	The said amount is credited to CENVAT CREDIT RECEIVABLE ACCOUNT and Rs. 0.464 Million therefrom is debited to manufacturing and trading account and balance Rs. 17.608 Millions is debited to CENTRAL EXCISE REFUND RECEIVABLES ACCOUNT.

Balance representing Rs. 2.700 Millions

Outstanding CENVAT Credit amount as on 31.03.2008

5. Accounting Ratios :

[a] Gross Profit / Turnover :

Gross Profit = Gross Profit as per Manufacturing and Trading Accounts

= Rs. 20.371 Millions

Turnover = Sales as per Manufacturing and Trading Account

= Rs. 226.944 Millions

Therefore, G. P. / Turnover = Rs. 20.371 Millions / Rs. 226.944 Millions

= 0.0898

[b] Net Profit / Turnover :

Net Profit = Net Profit as per Profit and Loss Account

= Rs. 8.615 Millions

Turnover = Sales as per Manufacturing and Trading Account

= Rs. 226.944 Millions

Therefore, N. P. / Turnover = Rs. 8.615 Millions / Rs. 226.944 Millions

= 0.0380

[c] Stock – in – trade / Turnover

Stock – in – trade = Average Stock of Finished Goods

= 1/2x [Opening Stock of Finished Goods + Closing Stock of Finished Goods]

= 0.5 * [3.066 + 1.651]

= Rs. 2.359 Millions

Turnover = Sales as per Manufacturing and Trading Account

= Rs. 226.944 Millions

Therefore Stock-in-trade / Turnover

= Rs. 2.359 Millions / Rs. 226.944 Millions

= 0.0104

[d] Material Consumed / Finished Goods Produced :

Material consumed = [Total Opening Stock – Opening Stock of Finished Goods] + [Net Purchases - Scrap Sales – Export Incentives] – [Total Closing Stock – Closing Stock of Finished Goods]

= [7.649 – 3.066] + [156.821 – 3.042 – 4.497] – [17.175 – 1.651] [Rs in Millions]

= 4.582 + 149.282 – 15.524

= Rs. 138.340 Millions

Finished Goods Products = Cost of Raw Materials Consumed + Labour Charges + Making Charges + Wages + Electricity Charges + Depreciation + Freight + Packing Charges + Water Charges + Local Tempo Charges

= [Rs in Millions] 138.340 + 23.321 + 1.455 + 2.040 + 0.342 + 3.044 + 0.520 + 22.108 + 0.081 + 0.793

= Rs. 192.045 Millions

Therefore. Material Consumed / Finished Goods Produced

= Rs. 138.340 / 192.045

= Rs. 0.7204

6. it is contended by the by the assessee that while in case of a company every person working for the company including its Managing Directors [even if a 99.99 % share-holder] is as employee of the company and, therefore, the provision regarding deemed value of Fringe benefits based on total expenditure under a particular head may be equitable and applicable. However, the same would not be the case while dealing with a partnership firm which is being run and managed by one or more working partners as the employer – employee relationship is missing. Accordingly, the expenses incurred exclusively by working partners have been excluded while working out the deemed value of fringe benefits.

1	Name of the Industrial Unit	Axis Impex
2	Factory Address	Gala No. 6,7,8,9 Ground Floor, Gala No. 10, 11, 12 First Floor, Riddhi Siddhi Industrial Estate, At. Gokhivare. Tal Vasai, Tal. Vasai, Dist. Thane
3	Plot Area if Open Plot [sq. mtrs.]	Not Applicable
4	Built – up Area [sq. mtrs.]	Gala No. 6 Ground Floor 57.35 sq. mtr. Gala No. 7 Ground Floor 162.85 sq. mtr. Gala No. 8 Ground Floor 80.30 sq. mtr. Gala No. 9 Ground Floor 80.30 sq. mtr. Gala No. 10 Ground Floor 58.50 sq. mtr. Gala No. 11 Ground Floor 90.05 sq. mtr. Gala No. 12 Ground Floor 332.22 sq. mtr. Total 861.57 sq. mtr.
5	Value of Machinery	2.830
6	Connected Power Load	99.24 K.W.
7	Items of Production	Plastic Insulated Thermoware / Vaccum Plask Articles, Moulded Articles, Plastic Gift Articles, Stainless Steel Casseroles and utensils

PROFIT AND LOSS ACCOUNT

Rs in Millions

Particulars	31.03.2009 [Estimated]
Actual duration of Accounting Period [Months]
Gross Sales
Sales – Export	196.400
Sales – Local	121.200
Sub Total	317.600
Less Excise Duty	0.000
Net Sales	317.600
% rise [+] or fall [-] in net sales as compared to previous year	399.700
Other Operating Income
Export Incentives	6.300
Duty Drawback	0.000
Others	0.000
Total Operating Income	323.900
COST OF SALES
Raw Materials [Including stores and other items used in the process of manufacture]
[a] Imported	0.000
[b] Indigenous	219.600
Other Spares
[a] Imported	0.000
[b] Indigenous	0.000
Power and Fuel	0.400
Direct labour	37.500
[Factory Wages and Salaries]	46.800
Depreciation	4.300
SUB TOTAL	308.600
Add : Opening Stocks – in – process	0.000
Deduct : Closing Stock – in – Process	1.000
Cost of production	307.600
Add : Opening Stock of finished goods	17.200
Deduct: Closing Stock – in - finished goods	30.400
Total Cost of Sales	294.400
Selling general and administrative expenses	15.100
Cost of Sales + SGA	309.500
Operation profit before interest	14.400
Interest	1.500
Operating profit after interest	12.900
Add : other non-operating income	0.000
Deduct other non-operating expenses	0.000
Net of other non-operating income / expenses	0.000
Profit before tax / Loss	12.900
Provision for taxes	0.000
Profit After tax / Loss	12.900
Adjusted PAT	12.900
Dividend Tax	0.000
Partner’s Withdrawal	5.000
Dividend [%]	0.000
Retained Profit	7.900
Cash Accruals	17.200

ANALYSIS OF BALANCE SHEET

Rs in Millions

Particulars	31.03.2009 [Estimated]
CURRENT LIABILITIES
Short – Term borrowings from banks [including bill purchased, discounted and excess borrowings placed on repayment basis]
Bank Borrowings – From the Bank	37.000
Sub Total [A]	37.000
Short Term Borrowings from others	3.000
Sundry creditors [Trade]	30.900
Advance payments from customers  / Deposits from dealers	0.000
Provision for tax [net of Tax paid]	0.000
Dividend and Dividend Tax payable	0.000
other statutory liabilities [due within one year]	0.000
Deposits / Installments of term loans / DPGs / debentures, etc [due within one year]	0.000
Other current liabilities and provisions [due within one year]	0.000
Sub – Total [B]	70.900
TERM LIABILITIES
Debentures [not maturing within one year]	0.000
Preference Shares [Redeemable after 1 year]	0.000
Term loans [excluding installments  payable within one year]	0.000
Deferred Sales Tax / Deferred Loan Deferred Payment Credit [Excluding installments due within one year]	0.000
Term deposit [repayable after one year]	0.000
other Term Liabilities	0.000
TOTAL TERM LIABILITIES	0.000
TOTAL OUTSIDE LIABILITIES	70.900
NET WORTH
Share Capital Account	0.000
General Reserve	0.000
Revaluation Reserve	0.000
Other Reserves [Excluding provisions]
Partners capital	24.900
Surplus [+] or deficit [-] in Profit and Loss Account
Less : Drawings	0.000
NET WORTH [19+23]	24.900
TOTAL LIABILITIES [18+24]	95.800
CURRENT ASSETS
Cash and Bank Balance	0.100
Investments [Other than long term investments] Government and other Trustee securities
I] Fixed deposit with bank	0.000
II] Share with Co-operative Bank	0.000
I] Receivables other than deferred and exports [Including bills purchased and discounted by banks]	16.300
II] Export receivables [Including bills purchased / discounted by banks]	10.700
Instalments of Deferred  receivables [due within one year]	0.000
Inventory
I] Raw materials [Including stores and other items used in the process of manufacture]
Imported	0.000
Indigenous	5.000
II] Stock – in – process	1.000
II] Finished Goods	30.700
IV] Other consumable spares	0.000
Sub Total [inventory]	36.700
Advances to suppliers	0.000
Advance payment of taxes [NET]	0.000
Excise and Sales Tax Refund	0.000
Other current assets	17.500
TOTAL CURRENT ASSETS	81.300
FIXED ASSETS
Gross Block	18.500
Depreciation to date	4.300
NET BLOCK	14.200
OTHER NON – CURRENT ASSETS
Investments / book / debts / advances / deposits which are not Current Assts
I] [a] Others Investments in Subsidiary	0.000
[b] Others companies / affiliates	0.000
II] Advances to suppliers of capital goods and contractors	0.000
III} Deferred receivables [maturity exceeding one year]	0.000
IV] Others	0.000
Non consumables Stores and Spares	0.000
Other non – current assets including dues from directors	0.300
41 TOTAL OTHER NON – CURRENT ASSETS [total of 38 to 40]	0.300
42 Intangible assets [Patents, goodwill, prelim, expenses, bad / doubtful debts Not provided for etc.]
43 TOTAL ASSETS [Total of 34, 37, 41 and 42]	95.800
44 TANGIBLE NET WORTH [24-22]	24.900

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.49.84
UK Pound	1	Rs.76.81
Euro	1	Rs.64.38

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	YES
--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

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