MIRA INFORM REPORT

Report Date :

13.02.2008

IDENTIFICATION DETAILS

Name :	RAMSARUP INDUSTRIES LIMITED
Registered Office :	7C, Kiran Shankar Rouy Road, ”Hastings Chambers” , 1^st Floor, Kolkata - 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	09.07.1979
Com. Reg. No.:	32113
CIN No.: [Company Identification No.]	L65993WB1979PLC032113
TAN No.: [Tax Deduction & Collection Account No.]	CALR04868D
PAN No.: [Permanent Account No.]	AACCR2821D
Legal Form :	Public Limited Liability Company. The Company Shares are listed on Stock Exchange.
Line of Business :	Manufacturer of Wires and TMT bars

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 7443228
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having fine track. Available information indicates high financial responsibility of the company. Trade relations are fair. Business is active. Fundamentals are strong and healthy. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Hastings Chambers, 1st floor, 7C, Kiran Shanhar Roy Road, Kolkata - 700 001, West Bengal, India
Tel. No.:	91 332242 1200
Fax No.:	91 332242 1888
E-Mail :	ramsarup@cal2vsnl.net.in company@ramsarup.com
Website :	www.ramsarup.com
Factory 1 :	Unit I: Ramsarup Industrial Corporation, Plot no. 6&7, 'D' block, Kalyani Industrial Area, Nadia, West Bengal, India Unit II: Ramsarup Utpadak, 68, East Ghosh Para Road, Athpur, Shyamnagar, 24 Parganas (North), West Bengal, India Unit III: R S No. 481, 482 and 487, Ramsarup Vidyut, Village Khori, Taluka Sakri, District - Dhule, Maharashtra, India Unit IV: Ramsarup Infrastructure, Indo Bangladesh Border and at Rajasthan, India Unit V: Ramsarup Nirmaan Wires, Mouza - Gopalpur, Durgapur, District - Burdwan (West Bengal), India

DIRECTORS

Name :	Mr. Ashish Jhujhunwala
Designation :	Managing Director cum Chairman
Name :	Mr. Naveen Gupta
Designation :	Director
Name :	Mr. K M Lal
Designation :	Director
Name :	Mr. Arvind Poddar
Designation :	Director
Name :	Mr. Bimal Kumar Jhunjhunwala
Designation :	Director
Name :	Mr. Aayush Lohia
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Pranab Kumar Das
Designation :	IDBI Nominee
Name :	Mr. Gajendra Kumar Singh
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters Director	11691440	66.79%
Relatives and Persons Acting in Concert	140881	0.81%
Mutual Funds and UTI	200	0.00%
Banks, Financial Institutions, Insurance Companies	1722391	9.84%
FIIs	29646	0.17%
NRIs / OCBs	1272137	7.27%
Body Corporate	2647733	15.12%
Total	17504428	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wires and TMT bars

Products :

Product Description	Item Code No.
Iron Steel Coated With Zinc	721720.01
Stranded Wire	731210.03
Ms Bars / Rod	7214.90
Ms Billet	7207.90

PRODUCTION STATUS (as on 31.03.2007):-

Particulars	Installed Capacity	Actual Production
Wire Drawing	149000	129146
Galvanising	84000	68770
TMT Bars and Rods	167000	73451
3 WTG	3.75 MW	-----
Power Generated (KWH)	-----	6097930

GENERAL INFORMATION

Bankers :

· Punjab National Bank

· Indian Overseas Bank

· Vijaya Bank

· The Karur Vysya Bank Limited

· Allahabad Bank

· UCO Bank

· ING Vysya Bank Limited

· United Bank of India

· ICICI Bank Limited

· Allahabad Bank

· Industrial Development Bank of India Limited

· Hongkong and Shanghai Banking Corporation Limited

Financial Institutions:

· West Bengal Industrial Development Corporation Limited

· Indian Renewable Energy Development Agency Limited

Facilities :

SECURED LOAN	31.03.2007	31.03.2006
	(Rs. in millions)
Long term
Term Loan
ICICI Bank Limited	60.500	77.000
West Bengal Industrial development Corporation Limited	38.125	47.624
IDBI Limited
Project Term Loan	21.000	49.000
Foreign Currency Loan	0.000	55.000
Indian Renewal Energy Development Agency limited (IIREDA)	98.800	119.600
Short Term
Cash Credit
Working Capital Facilities from Schedule Banks	1009.777	1127.914
(including Foreign currency Loan)
Commercial Papers	400.000	0.000
(Secured by earmaking of working capital Limits)
Maximum Balance outstanding during the year Rs. 500.000 millions
Mobilization Advance against Bank guarantee	26.800	0.000
Total	1655.002	1476.138

UNSECURED LOAN	31.03.2007	31.03.2006
	(Rs. in millions)
(Including interest accrued and due)
From Schedule Banks
Short Term Loan	712.665	0.000
From Body Corporate and other	24.617	38.330
Total	737.282	38.330

Secured Loan

i) Long Term Loans

a. Project Term Loan and Foreign Currency Term Loan from IDBI Limited is secured by way of Pari Passu Charge on equitable mortgage of lease hold land and First charge on Plant and Machineries and other assets of Kalyani unit acquired under the Expansion project and Equipment Finance Scheme , in favour of IDBI Limited and Pari-Passu Charge on other Fixed assets both present and future jointly with Consortium of Banks and IDBI Limited and further secured by way of second charges on stock of raw materials, semi-finished and finished goods, consumable stores and other current assets of Kalyani unit and personal guarantee of Managing Director and one of his relative together with corporate guarantee of Ramsarup Investments Limited and Pledge of part of Companies Equity Shares held by Ramsarup Investments Limited. (Payable within next one year Rs. 21.000 millions previous year Rs. 83.000 millions)

b. Term Loan from ICICI Bank Limited. is secured by way of first equitable mortgage of all immovable properties and hypothecations of all movable assets other than book debts, stock of raw material, finished, semi finished goods of the Shyamnagar unit ranking Pari-Passu with WBIDC Limited and guaranteed by Managing Director of the Company.

The Term Loan is repayable in 60 monthly instalment of Rs 1.375 millions each commenced from December, 2005(Repayable within next one year Rs. 16.500 millions (previous year Rs. 16.500 millions ).

c. Term Loan from WBIDC Limited. is secured by way of first equitable mortgage of all immovable properties and hypothecations of all movable assets other than book debts, stock of raw material, finished , semi finished goods of the Shyamnagar unit ranking Pari-Passu with ICICI Bank Limited. and guaranteed by Managing Director of the Company. The Term Loan is repayable in 15 quarterly instalments of Rs 0.500 millions each (Payable within next one

year Rs. 2.000 millions (previous year Rs. 2.000 millions )

d. Term Loan from WBIDC Limited for TMT Project is secured by way of first equitable mortgage of all immovable properties and hypothecations of all movable assets created for TMT project other than book debts, stock of raw material, finished , semi finished goods of the Shyamnagar unit ranking Pari-Passu with ICICI Bank Limited. and guaranteed by Managing Director of the Company. The Term Loan is repayable in 24 quarterly installments of Rs 1.875 millions each (Payable within next one year Rs. 7.500 millions previous year Rs. 7.500 millions)

e. Term Loan from IREDA is secured by First charge by way of the mortgage on all immovable properties and hypothecation of movable assets/ properties both existing and future pertaining to 3.75 MW Wind Farm Project at Village Khori, Taluka Sakri, District Dhule, in the state of Maharasthra (Project No. 1726) and elsewhere excluding specified movables to be charged to bankers for Working Capital Borrowings as agreed By IREDA. The Loan is Repayable in 24 Quarterly Instalments of RS. 5.200 millions commencing from 31st March 2006.( Repayable in next one year Rs.20.800 millions Previous year Rs. 20.800 millions )

ii) Short Term Loans

a. Working Capital Facilities from banks are secured by Hypothecation of stock of raw materials, finished goods, stock in process , stores and spares, etc and book debts of its Kalyani Unit and personal guarantee of Managing Director and one of his relative together with corporate guarantee of Ramsarup Investments Limited and collaterally secured by way of equitable mortgage of leasehold Land and Building thereon at Kalyani on Pari- Passu basis with the Consortium of Banks and IDBI Limited and similar Pari-Passu Charge of Banks on Company's

all fixed assets at Kalyani and 2nd Charge on those Fixed Assets which are financed by IDBI Limited under Expansion Project.

b. Commercial Papers are issued by earmarking Working Capital facilities.

c. Working Capital Facilities from banks are secured by Hypothecation of stock of raw materials, finished goods, stock in process, stores and spares, etc and book debts of its Shyamnagar unit and second charge on its Fixed Assets, 1 st Charge being in favour of ICICl Bank and WBIDC Limited for the Term Loan granted by them and personal guarantee of Managing Director together with corporate guarantee of an Associate Co. Ramsarup Investments Limited.

d. Mobilisation advances are secured against Bank Guarantees

Banking Relations :

Good

Auditors :

Name :

M/S P K Lilha and Company

Chartered Accountants

Address :

5, Fancy Lane, Kolkata – 700 001, West Bengal India

Associates/Subsidiaries :

· Sri Ashish Jhunjhunwala {Managing Director}

· Sri Ambika Prasad Jhunjhunwala {Father of M.D}

· Smt. Sharda Devi Jhunjhunwala {Mother of M.D}

· Smt. Neerza Jhunjhunwala {Wife of M.D}

· Smt. Shashi Lohia {Sister of M.D}

· Sri Advay Jhunjhunwala {Son of M.D}

· Sri. Naveen Gupta {Whole time Director}

· Ramsarup Investments Limited

· Ramsarup Lohh Udyog Limited

· Ramsarup Projects Private Limited

· Ramsarup Vyapaar Limited

· Ashish Jhunjhunwala (HUF)

· Madhumalati Merchandise Private Limited

· Imtihan Commercial Private Limited

· N.R. Mercantile Private Ltd.

· Ramsarup Khadan Ltd.

· Ramsarup Kkhaniz Private Limited.

· Naresh Engineers Ltd.

· Amanat Merchants Private Limited.

· Blaze Property Private Limited.

· Greentop Relators Private Limited.

· Laddugopal Properties Private Limited

· Modak Properties Private Limited

· Venguard Credit & Holding Private Limited.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20500000	Equity Shares	Rs. 10/- each	Rs.205.000 millions
4500000	Redeemable Cumulative Preferences shares	Rs. 10/- each	Rs. 45.000 millions
		Total	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17504428	Equity Shares	Rs. 10/- each	Rs.175.044 millions
1300000	5% Redeemable Cumulative Preferences shares	Rs. 10/- each	Rs.13.000 millions
3160000	4% Redeemable Cumulative Preferences shares	Rs. 10/- each	Rs.31.600 millions
		Total	Rs. 219.644 millions

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		219.644	219.644	101.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1641.163	1254.554	451.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1860.807	1474.198	553.000
LOAN FUNDS
1] Secured Loans		1655.002	1476.138	1349.200
2] Unsecured Loans		737.283	38.330	207.400
TOTAL BORROWING		2392.285	1514.468	1556.600
DEFERRED TAX LIABILITIES		77.655	93.996	0.000
TOTAL		4330.747	3082.662	2109.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		977.973	601.125	592.100
Capital work-in-progress		71.188	30.123	11.100
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2780.147	1625.317	1472.300
	Sundry Debtors	2488.496	1835.096	1601.900
	Cash & Bank Balances	202.279	130.857	120.600
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	435.596	147.658	80.800
Total Current Assets		5906.518	3738.928	3275.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2628.552	1293.849	1743.300
	Provisions	0.000	0.000	33.400
Total Current Liabilities		2628.552	1293.849	1776.700
Net Current Assets		3277.966	2445.079	1498.900
MISCELLANEOUS EXPENSES		3.620	6.335	7.500
TOTAL		4330.747	3082.662	2109.600

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		13060.632	10180.265	8775.500
Other Income		0.000	0.000	5.600
Total Income		13060.632	10180.265	8781.100
Profit/(Loss) Before Tax		615.611	389.406	211.000
Provision for Taxation		179.992	111.392	74.200
Profit/(Loss) After Tax		435.619	278.014	136.800
Import Value		248.456	506.335	NA
Export Value		714.436	147.379	NA
Expenditures :
	Raw Material Consumed	11.265	9084.811	8407.400
	Selling and Administration Expenses	0.000	0.000	35.100
	Manufacturing Expenses	608.622	371.680	0.000
	Salaries, Wages, Bonus, etc.	111.744	93.437	87.500
	Interest	211.188	157.549	164.300
	Power & Fuel	0.000	0.000	123.400
	Depreciation & Amortization	113.433	83.379	59.900
	Miscellaneous expenses	0.000	0.000	13.200
	Other Expenditure	0.000	0.000	72.200
Total Expenditure		1056.252	9790.856	8963.000

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	3547.300	3319.600	3880.400
Other Income	0.000	0.000	0.000
Total Income	3547.300	3319.600	3880.400
Total Expenditure	3237.800	2963.600	3526.600
Operating Profit	309.500	356.000	353.800
Interest	78.900	91.900	73.400
Gross Profit	230.600	264.100	280.400
Depreciation	35.900	38.800	39.000
Tax	69.100	77.800	89.100
Reported PAT	125.400	147.200	159.800

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	3.33	2.73	1.56
Net Profit Margin (PBT/Sales)	(%)	4.71	3.83	2.40
Return on Total Assets (PBT/Total Assets}	(%)	8.85	8.91	5.44
Return on Investment (ROI) (PBT/Networth)		0.33	0.26	0.38
Debt Equity Ratio (Total Liability/Networth)		2.69	1.90	6.27
Current Ratio (Current Asset/Current Liability)		2.25	2.89	1.84

LOCAL AGENCY FURTHER INFORMATION

DIRECTOR REPORT:

Business Results: 

The Company grows from strength to strength and reported excellent results in 2006-07. Some of the highlights of the Company's performance during the year under review are: 

Domestic sales increased by 23% and exports substantially grew by 385% compared to the previous year. As a result, the total turnover of the Company was 28% higher than the previous year. 

Operating profit grew to Rs. 940.200 millions as against Rs. 630.200 millions previous year, a jump of 49%. 

Profit before taxation increased to Rs. 615.600 millions as against Rs. 389.400 millions in the previous year, an increase of 58%. 

Profit after tax (PAT) increased to Rs.435.600 millions as against Rs. 278.000 millions in the previous year, an increase of around 57%. 

Cash profit of the Company increased to Rs. 549.000 millions as against Rs. 361.400 millions in the previous year, an increase of 52%. 

EBIDTA margin increased to 7.20% as against 6.19% in the previous year. 

An industrial boom, especially in the power and housing sectors helped the Company achieve the above performance. 

The Company continued to focus on the power sector by marketing wires to PGCIL, APDRP and electricity board-promoted projects. Other core sectors of the economy were also catered to by the wire division. 

During the year under review, the Company completed its wire expansion project at its existing site in Kalyani by adding 12,000 Mts of wire drawing capacity. The equipment was imported from Italy. 

During the year under review, the Company completed the TMT expansion plant at its Shyamnagar site by adding 80,000 Mts of TMT bar capacity, aggregating to a total manufacturing capacity of 167,000 MTPA. This unit is the only one in India which produces a complete range of 8-mm to 40-mm bars through Thermex technology. The Company meets the requirement of TMT bars for customers like Reliance Industries Limited, Tata Projects, Hooghly MetCoke, Adani, IVRCL, Paharpur Cooling Towers, contractors of NHPC, NTPC, CPWD and Nuclear Power Corporation, etc. 

With a view to retain leadership in steel wire business and cater to the rising demand during the year, a new unit named Ramsarup Nirmaan Wires was formed to produce LRPC and special grades of wires in Durgapur, Burdwan. 

This unit will produce high carbon and special grades of wires to meet the needs of the infrastructure sector. During the first phase, approximately 55,000 MTPA of wires will be produced for which the entire setup was imported from Italy. The unit is expected to commence production by September 2007. 

The Company is targeting to produce 600,000 MTPA of steel wires (coated and uncoated) by 2010.

In the wire and TMT divisions, the geographical spread is across the country- from Kashmir to Kanyakumari and from Kutch to Kamrup. 

Ramsarup Vidyut, the wind-mill division of the Company performed satisfactorily. 

During the year under review, the Company's fourth unit Ramsarup Infrastructure undertook Feeder Renovation Works including design, supply, erection, testing and commissioning in different sites in Rajasthan on a turnkey basis. The project also includes erection and augmentation of 11 KV and L.T. lines and S/S, installation of one-phase transformer, three-phase transformer, AB cable and replacement of meters and services line on 11 KV Rural Feeder (1 phase and 3 phase). 

Approximately Rs. 0.400 million (US$100 billion) will be spent for setting up new lines for T and D with a major feeder renovation programme being taken up by all electricity boards of India to reduce T and D losses. For this programme and for setting up new transmission lines, funding is being given by the World Bank. Moreover, inter-regional transfers of power, which will eventually lead to power trading, will require a major transmission line network. The Company already possesses the infrastructure and project management skills to deliver excellent results to its customers. 

OTHER INFORMATION:

· The Company is in process of installation of Low Relaxation Prestressed Concrete Stranded Wire (LRPC ) Project at Mouza Gopalpur, Durgapur Dist. Burdwan (W.B) on a Freehold Land of about 50 acres owned by a group company Venguard Credit and Holding Pvt Ltd.

· Claims/Interest on delayed payments/and refunds from suppliers whose recovery cannot be ascertained with reasonable certainty are accounted for on acceptance/actual receipt basis.

· Interest paid to Bank and others amounting to Rs. 1302.758 millions (Previous Year Rs 1223.256 millions) is net of Rs. 118.028 millions (Previous Year Rs. 70.325 millions) being interest received on FDRs, from customers and others.(TDS Rs.1.649 millions, Previous Year Rs. 1.172 millions).

FIXED ASSETS:

· Leasehold Land

· Factory Building

· Free Hold Land

· Plant And Machinery

· Construction Equipments

· Computers

· Office Equipments

· Furniture And Fixtures

· Air Conditioners

· Vehicles

WEBSITE DETAILS:

Profile :-

· Subject incorporated in 1979 

· A profit making and dividend paying company 

· The company is engaged in manufacturing of Wires and TMT bars 

· Operates through its only office at Kolkata and works at Kalyani, Durgapur and Shyamnagar even though selling material from Kutch to Kamrup amd Kashmir to Kanyakumari in India. Appointed agents who are paid on success fee basis.

· The company is listed at National Stock Exchange, Bombay Stock Exchange and National Stock Exchange

· The company has five units :-
a) Ramsarup Industrial Corporation
b) Ramsarup Utpadak
c) Ramsarup Vidyut
d) Ramsarup Infrastructure
e) Ramsarup Nirman Wires

· Broad customer base both in terms of segment and geographical spread

Power is the major thrust area, with almost 40% of the topline coming from the power sector

PRODUCTS:

Product	Size Range (mm)	Specification	Grade	Application
Galvanised Iron (G.I.) (Hot Dipped & Electroplated)	0.63-5.00	IS 280 As per customer’s requirement	Mild Steel	Galvanised wire for General Engineering Purpose, I.E. netting, fencing, barbing and other applications.
Galvanised Steel Strand	7x1.50 to 7x4.75	IS 2141, IS:12776 ASTMA 473, ASTMA 363, BS 183, DIN 48200, 48201, 48202, VEDO 210	Mild Steel / High Carbon, Medium Carbon	Wires for electrical & transmission lines
H.B. Wires for Nails	0.63-10.0	As per Customer’s requirement	Mild Stee	Wires for Nail Industry
Cable Armour Wires (Round)	0.63-4.0	IS 3975, BS 1441 As per customer’s requirement	Low Carbon / Electrode	Wires for Cable and Conductor Industry
Cable Armouring Formed Wire	4x3.4x0.8	IS 3975, BS 1441	Low Carbon / Electrode	Cable Industry
ACSR Core Wire Single	1.50-4.75	IS 398 Part 2&5 ASTMB 498, BS 4565, IEC 209	High Carbon	Wires for Conductor Industry.
ACSR Core Wire Stranded	7x1.5 To 7x4.75	IS 398, ASTM-B 500, BS 215 PART-2	High Carbon	Wires for Conductor Industry
P.C. Single (as drawn)	1.50-5.00	IS 1785-II, ASTM-A 648, BS 2962-SEC I/IV	High Carbon	Wires for Prestressed Concrete Industry
P.C. Single Wire Stress Relieved (Normal Relaxation)	3.00-9.50	IS 1785-I (Plain), IS 6003 (Indented) ASTM-4421, BS 2691 SEC 1/77	High Carbon	For re-enforcement of Concrete Poles & other Concrete Structures)
P.C. Strand 3 Ply Stress Relieved (Normal Relaxation)	3X3.00	IS 6003 ASTM-A 416 BS 3617 JIS-G 3536	High Carbon	For re-enforcement of Concrete Rly. Sleeper.
P.C. Strand 7 Ply Stress Relieved (Normal Relaxation)	6.35-12.50	IS 6006, ASTM - A416 BS 3617, JIS G 3536	High Carbon	For re-enforcement of Concrete Beams in bridges / concrete poles etc.
Bright Spoke Wire	1.80- 4.00	IS 6902, BS 2453 As per customer’s requirement	High Carbon	Wires for Cycle & Two Wheeler Industry
Galvanised Spoke Wire	1.80-4.00	IS 6902, BS 2453 As per customer’s requirement	High Carbon	For making Spokes for Cycles & Two Wheelers.
Cycle Accessories Wire	2.00-10.00	As per customer’s requirement	Mild Steel	Wires for Cycle & Two Wheeler Industry
Shutter Spring Wire	4.00-9.50	As per customer’s requirement	High Carbon	For making Spring of Rolling Shutters
Spring Steel Wire	0.30-8.50	IS 4454 Part 1  GradeI/II/III/IV	High Carbon	Springs
Telegraph Wire	2.00–5.60	IS 279, IS 280	Mild Steel	Telecom Industry
Rope Wire (Black & Galvanised)	0.30-2.00	IS: 1835, BS: 2763 As per customer’s requirement	High Carbon	Rope making & Auto cables
Umbrella Rib	1.50–3.0	As per customer’s requirement	High Carbon	Umbrella Industry
Chain Rivet / Link Wire	3.60-6.00	As per customer’s requirement	Mild Steel 16Mn Cr5 20Mn Cr5 EN 353, 354	Chain & Two-wheeler Industry
Cotton Bailing Wires	3.15-3.66	As per customer’s requirement	High Carbon	For Cotton Bailing industry

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.39.65
UK Pound	1	Rs.77.84
Euro	1	Rs.57.78

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	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	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		72

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