MIRA INFORM REPORT

Report Date :

09.12.2008

IDENTIFICATION DETAILS

Name :	HPL ADDITIVES LIMITED
Formerly Known As :	HIGH POLYMER LABS LIMITED
Registered Office :	803, Vishal Bhawan, 95 Nehru Place, New Delhi-110019
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	24.08.1976
Com. Reg. No.:	55-8309
CIN No.: [Company Identification No.]	U25209DL1976PLC008309
TAN No.: [Tax Deduction & Collection Account No.]	DELH0073D
PAN No.: [Permanent Account No.]	AAACH0110P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Polymer additives, Specialty Chemicals and Industrial Chemicals

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 5500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company. Trade relations are fair. General financial position is good. Payments are reported as usually made as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	803, Vishal Bhawan,95 Nehru Place, New Delhi-110019, India
Tel. No.:	91-11-26421757/ 26431379/ 1522/ 26421570/1
Fax No.:	91-11-26474350/ 26460981
E-Mail :	hpll@hpl-group.com pb-cosec@hpl-group.com
Website :	http://www.highpolymerlabs.com
International Office :	High Polymer Labs, Inc. 21 Sagamore Lane, Dix Hills, NY 11746, USA
Tel. No.:	91-631-6435714
Fax No.:	91-631-6435715
E-Mail :	adsingh@hpl-group.com adshpl@aol.com

DIRECTORS

Name :	Mr. Harcharan Singh
Designation :	Chairman
Address :	174-A, Sainik Farms, Khanpur, New Delhi-110062, India
Date of Birth/Age :	22.07.1937
Date of Appointment :	07.10.2005
Name :	Mr. Satpal Singh
Designation :	Whole time Director
Address :	439, Sector – 14, Faridabad, Haryana-121002, Punjab, India
Date of Birth/Age :	08.08.1944
Date of Appointment :	30.09.2006
Name :	Mr. Rajesh Narayan Sehgal
Designation :	Director
Address :	102/2 and 3 LBS Marg, Mulund Colony, Mulund (West), Mumbai-400082, Maharashtra, India
Date of Birth/Age :	16.02.1971
Date of Appointment :	30.09.2006
Name :	Mr. Umesh Anand
Designation :	Managing Director
Address :	K-210, Sainik Farms, Khanpur, New Delhi-110062, India
Date of Birth/Age :	16.10.1962
Date of Appointment :	07.10.2005
Name :	Mr. Krishna Kumar Saxena
Designation :	Director
Address :	25 E/4, Model Town Balrajeshwar Road, Mulund (West), Mumbai-400080, Maharashtra, India
Date of Birth/Age :	15.08.1939
Date of Appointment :	30.09.2006
Name :	Mr. Dilip Digambar Ravetkar
Designation :	Director
Address :	I-202, Nav Pinac, Kanchanganga, Aundh, Pune-411007, Maharashtra, India
Date of Birth/Age :	29.07.1953
Date of Appointment :	30.09.2006
Name :	Mrs. Veena Choudhary
Designation :	Director
Address :	House No. 27, Taxila Apartment, IIT Campus, Hauz Khas, New Delhi-110016, India
Date of Birth/Age :	05.01.1951
Date of Appointment :	30.09.2006

KEY EXECUTIVES

Name :	Mrs. Ruchi Sethi
Designation :	Secretary
Address :	135, Lane No. 2, Anupam Garden, Sainik Farms, New Delhi-110062, India
Date of Appointment :	01.12.2005
Name :	Mr. Pravin Bhushan
Designation :	Secretary
Address :	F-117, Katwaria Sarai, New Delhi-110016, India
Date of Birth/Age :	03.01.1973
Date of Appointment :	23.01.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2007

Names of Shareholders	No. of Shares
Harcharan Singh	1839928
Manjinder Pal Kaur	1011755
HPL Industries Private Limited	1587952
HPL Merchantile Private Limited	567926
HPL Securities Private Limited	871344
Clear Chem Private Limited	244567
Satpal Sing	306815
Maninder Kaur	312946
Mona Anand	447619
Minal Anand	328581
Ritu Singh	34952
ARpana Singh	155337
Simran Singh	141030
A D Singh	251600
Annupreet Singh	157567
Umesh Anand	161085
Jai karan Anand	5500
Manpreet Dugal	5500
Mahinder Kaur	770
Nitin Jain and Ravil Saxena	20000
Templeton Strategic Emerging Markets Fund II LDC	3950000
Total	12402774

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2007

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	32.00
Bodies corporate (not mentioned above)	26.00
Directors or relatives of directors	41.00
Others	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polymer additives, Specialty Chemicals and Industrial Chemicals

Products :

Polymer Additives

· Property Extenders

· Modifiers

· Polymerisation Catalysts

Speciality Chemicals

· For water Treatment

· For Pharma Intermediates

· For Agro Intermediates

· For Photographic Chemicals

· For Personal Care

Industrial Chemicals

Hydrazine Hydrate

ITC Code	Product Description
Blowing Agencies	38123009
Azo Initiators	29280001
Antiox : Dants	38123000

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Blowing Agent		6400	5692.24
Speciality and water treatment chemicals		800	114.45
Azo Initiator		350	220.96
Antioxidants and UV Stabilizer		10000	3290.65
Hexamine		900	21.02
HH 100% Trizole Others		1750	1356.12

GENERAL INFORMATION

Suppliers :

· Delcray Cables (Private ) Limited

· Barut Polymers Private Limited

· Banas Cooling Tower Corporation

· Enopack Security Seals

· Feroicon Equipment India Private Limited

· Fine Pack Structures (Private ) Limited

· Ganik Plastics

· Hypher Filteration (Private ) Limited

· Mag Tech Engineers

· Mahabir Plastics Industries

· Metal Forming Industires

· Modern Electricals

· Nexus Power Systems

· P K Industries

· Gastek Enggineerin (Private ) Limited

· Giriraj Packers

· H Guru Instruments (Private ) Limited

· Sadhana and Company (Private ) Limited

· Shenco Vales (Private) Limited

Bankers :

• ICICI Bank Limited, ICICI Bank Towers, Bandra Kurla Complex, Mumbai-400051, Maharashtra, India
• Citi Bank NA, Jeevan Vihar, 3 Sansad Marg, New Delhi-110001, India
• Canara Bank, Nehru Place, New Delhi-19

Facilities :

Secured Loan	31.03.2007 Rs. In Millions
Term Loan from Bank	296.354
Cash credit From bank	109.348
Loan From bank for purchase of vehicles	4.851
Total	410.553
Notes: Secured by hypothecation of all existing plant and machinery and by way of equitable mortgage of land at Duhola and Ballabhagar. The previous year figure includes R.s 19.861 Millions secured by mortgage of property under construction situated at Gurgaon. Secured by hypothecation of debtors, movable assets including plant and machinery, both present and future stock of raw materials, stock in process, finished good and stores. This is further secured by way of equitable mortgage of land and Ballbbhgarh.
Unsecured Loan	31.03.2007 Rs,. In Millions
Other Loans	0.680
Security deposits form customers	2.016
Total	2.696

Banking Relations :	Satisfactory
Auditors :
Name :	BSR and Company Chartered Accountant
Address :	4B, DLF Corporate Park, DLF City, Phase – III, Gurgaon-122002, Haryana, India
Associates/Subsidiaries :	· HPL Investments Limited U74899DL1994PLC059434 · High Polymer Labs Incorporation · HPL Securities Private Limited · HPL Industries Private Limited · HPL Mercantile Private Limited · Clear Chem Private Limited · Sawhney Exports Enterprises

CAPITAL STRUCTURE

As on 27.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12402774	Equity Shares	Rs. 10/- each	Rs. 124.028 Millions

Note:

Includes 3600000 (Previous Year 3600000) Equity Shares of R.s 10 each, fully paid up, issued as bonus shares by capitalization of general reserve in earlier years.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		124.028	124.028	71.667
2] Share Application Money		0.000	0.000	12.860
3] Reserves & Surplus		979.153	940.195	467.694
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1103.181	1064.223	552.221
LOAN FUNDS
1] Secured Loans		410.553	264.885	173.726
2] Unsecured Loans		2.696	2.143	2.131
TOTAL BORROWING		413.249	267.028	175.857
DEFERRED TAX LIABILITIES		141.722	106.090	57.238
TOTAL		1658.152	1437.341	785.316
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		891.000	859.038	383.500
Capital work-in-progress		46.742	37.447	86.032
INVESTMENT		21.828	24.695	24.971
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	460.292	277.469	202.146
	Sundry Debtors	240.245	243.296	169.400
	Cash & Bank Balances	39.550	66.725	12.764
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	179.500	144.793	83.736
Total Current Assets		919.587	732.283	468.046
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	215.148	184.785	174.488
	Provisions	5.857	31.440	3.049
Total Current Liabilities		221.005	216.225	177.537
Net Current Assets		698.582	516.058	290.509
MISCELLANEOUS EXPENSES		0.000	0.103	0.304
TOTAL		1658.152	1437.341	785.316

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1429.721	1216.376	1004.588
Other Income		38.562	27.633	9.106
Total Income		1468.283	1244.009	1013.694
Profit/(Loss) Before Tax		105.808	194.296	123.653
Provision for Taxation		38.564	73.418	39.781
Profit/(Loss) After Tax		67.244	120.878	83.872
Earnings in Foreign Currency :
	Export Earnings	835.865	586.549	NA
Imports :
	Raw Materials	470.962	283.336	NA
	Capital Goods	4.763	3.227	NA
Total Imports		475.725	286.563	NA
Expenditures :
	Raw Material Consumed	988.520	736.734	603.184
	Consumption of stores and spares parts	14.977	7.766	7.004
	Increase/(Decrease) in Finished Goods	[189.859]	[33.248]	[37.569]
	Salaries, Wages, Bonus, etc.	19.069	16.788	70.047
	Managerial Remuneration	10.253	12.977	8.083
	Payment to Auditors	1.093	0.950	0.426
	Interest	32.254	13.487	9.807
	Insurance Expenses	8.369	5.080	4.733
	Power & Fuel	184.191	117.920	87.339
	Depreciation & Amortization	54.179	0.000	49.225
	Other Expenditure	239.429	171.259	87.762
		1552.334	1082.961	927.61
Total Expenditure		1362.475	1049.713	890.041

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	4.58	9.72	8.27
Net Profit Margin (PBT/Sales)	(%)	7.40	15.97	12.31
Return on Total Assets (PBT/Total Assets}	(%)	5.84	12.20	14.52
Return on Investment (ROI) (PBT/Networth)		0.09	0.18	0.22
Debt Equity Ratio (Total Liability/Networth)		0.57	0.45	0.64
Current Ratio (Current Asset/Current Liability)		4.16	3.39	2.64

LOCAL AGENCY FURTHER INFORMATION

During the year ended 31^st March 2005, the Company was entitled to the Target Plus Scheme (‘the Scheme’) based on eligibility condition stipulated in the Scheme. However, the application as required under the scheme was filed by the Company only in the previous year. During the previous year, the management assets that all the conditions stipulated in the scheme were met in the year ended 31^st March 2005 itself and there was certainty that the Company would have been able to utilize the export benefit in accordance with the terms or the Scheme. Consequently, the Company recorded a period income aggregating Rs. 24.721 Millions in the financials statement prepared for the year ended 31^st March 2006.

The estimated amount of contracts remaining to be executed on capital account an not provided for (net fo advances) as at 31^st March 2007 is Rs. 15.389 Millions (Previous Year Rs. 9.166 Millions)

Notes of Accounts:

The Company had in the previous years claimed additional depreciation under the Income-tax Act, 1961 on additions made to certain plant and machinery at one of its factories. The benefit has been claimed under certificate issue by the Ministry of Scinence and Technology, Government of India (‘the Ministry’). While the original certificate issued by the Ministry was only with references to additions made in the financial year 1999-2000, the company continued to claim the benefit of such depreciation ion the subsequent year. The company had continued, in its letter dated 15^th September 2006, applied to the Ministry for obtaining a post facto approval with respect to claiming this benefit on such subsequent additions during the period 2000-01 through till 2005-2006. The Ministry, in its letter dated 8^th June 2007, has granted its approval to the application made by the company.

The company has further, vide its letter dated 4^th August 2007, applied to the Ministry for granting approval in respect of depreciation claimed on additions made to plant and machinery at the factory during the current year. The Ministry’s response is still awaited. Management is hopeful of getting the necessary approval.

Fixed Assets:

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Vehicles

· Computers

· Software

Bankers Charges Report as per Registry

Name of the company	HIGH POLYMER LABS LIMITED
Presented By	Canara Bank, Nehru Place, New Delhi-19
1) Date and description of instrument creating the change	Deed of Hypothecation Re: Machinery (NF-720) dated 26.05.20052
2) Amount secured by the charge/amount owing on the securities of charge	Term Loan of Rs. 150.000 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	Security Primary Hypothecation of all Plant and Machinery, tools, accessories and tools and accessories already purchased/ to be purchased and more particularly described in schedule A of the Deed to be installed as Company premises at Village Dudhla. Ballabgah District Faridabad or at any other places including those in transit. Collateral Extension of First Charge on existing fixed assets of the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @16% p.a. below the ongoing BPLR with a minimum of 9.15% p.a. with monthly rest or at such other rates as may be specified by the Bank form time to time. Repayment – The amount should be repayable in 24 quarterly installments of Rs. 6.250 Millions each
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Nehru Place, New Delhi-19
6) Date and brief description of instrument modifying the charge	N.A
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.	N.A

This form is for	Modification of charge
Charge identification number of the modified	10012103
Corporate identity number of the company	U25209DL1976PLC008309
Name of the company	HIGH POLYMER LABS LIMITED
Address of the registered office or of the principal place of business in India of the company	803, Vishal Bhawan,95 Nehru Place, New Delhi-110019, India
Type of charge	Book Debts Movable Property Others
Particular of charge holder	Citi Bank NA, Jeevan Vihar, 3 Sansad Marg, New Delhi-110001, India
Nature of description of the instrument creating or modifying the charge	Deed of Modification of Goods Security Agreement First Pari Passu charge on all present and future receivables stocks and inventories of the borrower Second pari passu charge on Plant and Machinery
Date of instrument Creating the charge	28.03.2007
Amount secured by the charge	R.s 187.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Governed by agreement referred to in clause no. 8 above Terms of Repayment Renewable Annually Margin Margin as per Citibank Norms Extent and Operation of the charge Fist Pari passu charge on all present and future receivables, stocks and inventories Second pari passu charge plant and machinery
Short particulars of the property charged	First Pari passu charge on all present and future receivables stocks and inventories Second pari passu charge plant and machinery

AS PER WEBSITE

HISTORY:

Inception In 1964

Ever since its inception in 1964, HPL has always endeavored to cover all segments of customers and has therefore provided flexibility in its product range. Tailor made products are provided for customer-specific needs and operating conditions.

Multi Product Profile

Although HPL had started as a Polymer Additive manufactures, it has successfully diversified into Biocides, Polymerisation Catalysts, Photographic Chemicals, Pharma & Agro intermediates.

They believe in providing solutions rather than products only. They have added many products in the same group and have gone for diversification at appropriate opportunity. At present, there are around 60 products for different applications and many more in pipe line.

Leadership:

Technocrat Management

Right from the top, HPL is a technocrat corporation. There is a lot of focus on new product range, technologies, environment friendly and safe processes, product application and technical support. The management of the group has created self-sufficient technology infrastructure.

Continual Improvement

HPL believes in continual improvement to meet the changing requirements of the customer. This philosophy has helped them to keep ahead of competition and to emerge as a Leader. Scientists and Engineers are always working on to improve the products, processes and technologies.

In-House Development & Improvement

HPL is technologically complete and a self-sufficient corporation. In this fast changing world and demanding markets, the in-house developments have kept pace. With the fast changing customer needs all the products commercialized till date are developed in-house, eventhough HPL is not closed to outside world. It has undertaken a number of co-operations and contract research for other companies and is open to co-operations and collaborations. HPL is proud of its in-house capabilities.

Philosophy:

Customer Care

HPL believes that all it's achievements are through interactive relationship with customers. Be it external customer or internal customers. HPL is even thankful to its competitors who have a significant contribution to its success. They owe the sucess to the customers and shall strive to deliver the best to them - Always.

Vendor Development

They at HPL, feel that vendor is a partner to the strength and occupies a seat only next to the customer. A closer interaction with vendors has given them a competitive edge in sourcing the needs. Honestly, they could not be fair to the customers without the support of the vendors.

Employee Care

 HPL is a professional corporation. It believes that it is the people who make an organization successful. It enjoys very cordial Industrial Relations. Motivation, Rewards and Welfare Schemes for employees and their families have further strengthened the relationship and professional commitment.

Socially Responsible Business

HPL has a firm conviction that any business must have a social concern. It is the constant effort to make the products, processes, installations safer and environment friendly. New environment friendly technologies, processes are being researched constantly. As a gesture of goodwill and being a big brother, HPL runs a number of welfare schemes at community level in the areas of education and health.

Profile:

HPL Additives, the flagship company of the HPL group, is a leading manufacturer of polymer additives, speciality chemicals and industrial chemicals. HPL Additives has established a formidable reputation in both the domestic and international markets as a producer of world-class chemicals. Its range of products includes property extenders, polymer additives, modifiers, polymerisation catalysts, speciality chemicals for water treatment, pharmaceutical intermediates and industrial chemicals.

Established in 1964, the company has emerged as the single largest player with over 75% share of the Indian market for most of its products. Its products have also been widely accepted in the West. The company has diversified into biocides, polymerisation catalysts, photographic chemicals, pharmaceutical and agro chemicals intermediates.

Polymer Additives:

Antioxidants are used to retard the reaction of organic material with atmospheric oxygen, which can cause degradation. These chemicals are responsible for retarding oxidation during manufacturing, processing, storage, as well as the end product. The range of Kinox-Phenolics & Phosphites belong to primary and secondary antioxidants. These Phenolic antioxidants are responsible for imparting long-term thermal and processing stability to the end application.

UV light stabilisers prevent photo degradation processes in polymers, such as colour changes, chalking, cracking and loss of mechanical properties such as tensile strength, impact strength, etc. The range of Hilite-HALS (Hindered Amine Light Stabilisers), Benzophenones and Benzotriazoles belong to this class of UV light stabilisers. While Hindered Amine light Stabilisers work best for the thin section applications, UV absorbers work best for the thick section applications.

Chain extenders are cross-linking agents for biodegradable polymeric films used in drug delivery systems. This is also used as a stabiliser for synthetic fibres. The range of Hichem-ADH belongs to this category.

Optical brighteners are used widely to improve the colour of various plastics. They are often used in combination with other dyes or with pigments to bring about specific shades. These alter the visual properties of polymers and are also known as fluorescent whitening agents. These mask inherent yellowness in discoloured polymers and impart unique, robust colour to speciality plastic products.

Modifiers:

Chemical blowing agents are used for production of unicellular products. Tailor-made products are provided for customer-specific needs and operating conditions when required decomposition mechanism in the end application. Particle size is crucial for these products.

The Mikrofine range for CBA’s have a whole range of products for different applications. The range is designed to provide lowest possible relative density, reduced surface yellowing and smooth surface. Modifiers include Azobisnitriles, Azodicarbonamide, Dinitrosopentamethylenetetramine, Sulfonyl Hydrazides and Sulfonyl Semicarbazides.

Polymerisation Catalysts:

Polyazo initiators are known sources of free radicals and are used in the polymerisation of common monomers like vinyl chloride, styrene, vinyl acetate, ethylene and methyl methacrylate. These Polyazo initiators can be classified into two groups – organic solvent soluble Azo initiators and water soluble Azo initiators. The Polyazo initiators include products such as Polyazo AZDN, Polyazo AZDV, Polyazo AZMB and Polyazo AZCC. The function of these products relies upon decomposition to generate free radicals in a wide range of solvents at almost first order rates.

Speciality Chemicals:

Biocides are used for industrial water treatment and effluent management system, for cooling towers, evaporative condensers, pulp and paper mill effluents and oil recovery systems. Biocides are also used for disinfecting swimming pool and special applications.

Industrial Chemicals:

The company manufactures Hydrazine Hydrate, which is used in pharmaceuticals and agricultural chemicals intermediates and also in the production of chemical blowing agents. Hydrazine Hydrate is also being used in the manufacture of polymerization catalysts, food additives, soldering fluxes, surfactants, detergents and plasticizer.

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 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.49.22
UK Pound	1	Rs.73.04
Euro	1	Rs.63.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--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		66

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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