MIRA INFORM REPORT

Report Date :

02.05.2008

IDENTIFICATION DETAILS

Name :	AVERY DENNISON INDIA PRIVATE LIMITED
Registered Office :	Block B-1, Plot No.F-2, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi-110044
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	08.12.1995
Com. Reg. No.:	55-74475
CIN No.: [Company Identification No.]	U74899DL1995PTC074475
TAN No.: [Tax Deduction & Collection Account No.]	DELA05957A
PAN No.: [Permanent Account No.]	AAACA6163D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Self Adhesive Paper and Self Adhesive Film.

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

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company engaged in manufacturing and marketing of Self Adhesive Tapes and Films. The company’s financial position is comfortable. It has excellent infrastructure facility to carry on its business efficiently. The company’s trade relations are reported as fair. Payments are correct and as per commitments. It can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Block B-1, Plot No.F-2, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi-110044
Tel. No.:	91-11-41639393
Fax No.:	91-11-41639292
E-Mail :	muralie.ks@ap.averydennison.com
Website :	http://www.averydennison.com
Head Office :	204-206, Tolstoy House, 15 Tolstoy Marg, Connaught Place, New Delhi-110001, India
Tel. No.:	91-11-23714408/ 10
E-Mail :	kapil.anand@ap.averydennison.com ravindersingh@averydennison.com
Website :	http://www.averydennison.com
Area :	2350 sq. ft.
Location :	Leased
Corporate Office :	Narsinghpur Industrial Area, 6 K. M. Delhi-Jaipur highway, Gurgaon, Haryana, India
Tel. No.:	91-124-2215581/ 582/ 583
Fax No.:	91-124-2215591/592
E-Mail :	kapil.anand@ap.averydennison.com
Area :	6 Acres
Location :	Industrial
Factory 1:	Narsinghpur Industrial Area, 6 K. M. Delhi-Jaipur highway, Gurgaon, Haryana, India
Tel. No.:	91-124-2215581/ 582/ 583
Fax No.:	91-124-2215591/592
E-Mail :	kapil.anand@ap.averydennison.com
Area :	6 Acres
Location :	Industrial
Factory 2:	E-514, Greater Kailash II, New Delhi-110048, India
Tel. No.:	91-11-41639393
E-Mail :	muralie.ks@ap.averydennison.com

DIRECTORS

Name :	Mr. Anish Ghoshal
Designation :	Director
Address :	402, Rocky Hill, Rizvi Complex, Shirley Rajan Road, Bandra (West), Mumbai-400050, Maharashtra
Date of Birth:	16.09.1964
Date of Appointment:	04.01.1996
Name :	Mr. Raja Gopal Srinivasan
Designation :	Director
Address :	C 164, DDA Flats, Saket, New Delhi
Date of Birth:	02.09.1959
Date of Appointment :	06.05.1996
Name :	Mr. Robert G. Van Schoonenberg, USA (Foreigner)
Designation :	Director
Address :	Orange Grove Boulevaro, Pasadena, California-91103, USA
Date of Birth:	18.08.1946
Date of Appointment :	06.05.1996
Name :	Mr. Richard P. Randall, USA (Foreigner)
Designation :	Director
Address :	Orange Grove Boulevaro, Pasadena, California-91103, USA
Date of Appointment :	29.09.1997
Name :	Mr. Rodri Guez Karyn, USA (Foreigner)
Designation :	Director
Address :	Orange Grove Boulevaro, Pasadena, California-91103, USA
Date of Appointment :	21.06.2001
Name :	Mr. Chittaranjan Dua
Designation :	Director

KEY EXECUTIVES

Name :	Mr. K. S. Murali
Designation :	Director (Finance)/ Company Secretary
Address :	D/3, 3072, Vasant Kunj, New Delhi-110070
Date of Birth/Age :	20.05.1966
Date of Appointment :	03.03.2000

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Avery Dennison Corporation, U.S.A.	21474466	99.00
Avery Pacific LLC, USA	216914	1.00
Total	21691380	100.00

As on 31.03.2006

Foreign holdings: 100%

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Self Adhesive Paper and Self Adhesive Film.

Products :

Product Description	ITC Code
Self Adhesive Paper	4811.20
Self Adhesive Film	3919.00

Agencies Held :

· Avery Dennison Corporation, U.S.A.

· Avery Pacific Corporation, U.S.A.

Exports to :

· Srilanka

· Indonesia

· Malaysia

· UAE

Imports from :

· U.S.A.

· France

· Germany

Terms :

Selling :

L/C, cash or Credit (45 days) terms

Purchasing :

L/C terms

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Self Adhesive Paper and Film	Sq. Mtrs.	30,000,000	30,000,000
Self Adhesive Papers		--	171,821,904
Self Adhesive Tapes		--	1,667,895

GENERAL INFORMATION

Customers :	· Wholesalers · End Users
No. of Employees :	415
Bankers :	· American Express Bank Limited · Deutsche Bank, Tolstoy House, New Delhi, India
Facilities :	Subject enjoys Cash Credit facility of Rs.250.000 millions from its Bankers

Banking Relations :	Satisfactory
Auditors :	Lovelock and Lewes Chartered Accountants
Address :	PWC Centre, Saidulajaiv, M B Road, New Delhi-110068
Tel. No.:	91-11-26864390/26523750
Fax No.:	91-11-26864391
Subsidiaries :	· RVL Packaging India Private Limited o (Wagle) Industrial Area, Thane – 400604, Maharashtra o Tel No.: 91-22-25823881/ 4141/ 4131/ 5781 o Fax No.: 91-22-25823208 · Avery Dennison de Brazil Ltda – Novo Hamburgo, Brazil · Avery Dennison China, Chengdu · Avery Dennison China, Beijing · Avery Dennison China, Guangzhou · Avery Dennison China, Kunshan · Avery Dennison China, Shanghai · Avery Dennison China, Tianjin · Avery Dennison Kunshan Company Limited · Avery Dennison Packaging Label – Kunshan China · Avery Dennison (Qingdao) Converted Product Company Limited · Avery Dennison, Hong Kong · Jackstadt GmbH, Germany · Avery Dennison, Luxemborg · Avery Dennison, Australia · Avery Dennison, Thailand · Avery Dennison Singapore Pte Limited · Avery Dennison, Canada · Avery Dennison, France · Avery Dennison Stimsonite, Australia · Avaery Dennison, UK · Avery Dennison APG · Avery Dennison, Netherlands · Avery Dennison, Korea · Avery Dennison, USA
Holding Companies :	· Avery Dennison Corporation, USA · Avery Pacific Corporation, USA

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
24750000	Equity Shares	Rs.10/- each	Rs.247.500 millions

Issued Capital :

No. of Shares	Type	Value	Amount
24750000	Equity Shares	Rs.10/- each	Rs.247.500 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21691380	Equity Shares	Rs.10/- each	Rs.216.914 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006 (12 Months)	31.03.2005 (15 Months)
SHAREHOLDERS FUNDS
1] Share Capital		216.914	216.914
2] Reserves & Surplus		132.562	68.649
NETWORTH		349.476	285.563
LOAN FUNDS
1] Unsecured Loans		33.942	24.814
TOTAL BORROWING		33.942	24.814
DEFERRED TAX LIABILITIES		0.000	8.984
TOTAL		383.418	319.361
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		131.104	133.659
Capital work-in-progress		53.480	2.233
DEFERRED TAX ASSETS		2.099	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	117.901	88.790
	Sundry Debtors	231.584	184.162
	Cash & Bank Balances	8.748	6.859
	Other Current Assets	2.483	1.415
	Loans & Advances	67.461	38.626
Total Current Assets		428.177	319.852
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	223.514	134.706
	Provisions	7.928	1.677
Total Current Liabilities		231.442	136.383
Net Current Assets		196.735	183.469
TOTAL		383.418	319.361

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006 (12 Months)	31.03.2005 (15 Months)
Sales Turnover		1020.929	905.201
Other Income		11.941	12.941
Total Income		1032.870	918.142
Profit/(Loss) Before Tax		101.329	106.180
Provision for Taxation		37.416	39.159
Profit/(Loss) After Tax		63.913	67.021
Imports :
	Raw Materials	351.094	277.113
	Stores & Spares	4.841	3.888
	Capital Goods	5.582	5.980
	Others	7.134	9.999
Total Imports		89.009	85.900
Expenditures :
	Increase/(Decrease) in Finished Goods	32.119	27.855
	Interest	8.338	6.687
	Depreciation & Amortization	17.826	19.934
	Other Expenditure	879.213	758.720
Total Expenditure		937.496	813.196

KEY RATIOS

PARTICULARS		31.03.2006 (12 Months)	31.03.2005 (15 Months)
PAT / Total Income	(%)	6.19	7.30
Net Profit Margin (PBT/Sales)	(%)	9.81	11.56
Return on Total Assets (PBT/Total Assets}	(%)	18.11	23.41
Return on Investment (ROI) (PBT/Networth)		0.29	0.37
Debt Equity Ratio (Total Liability/Networth)		0.76	0.56
Current Ratio (Current Asset/Current Liability)		1.85	2.34

LOCAL AGENCY FURTHER INFORMATION

History

Founded in 1935, Subject is a global leader in pressure-sensitive technology and innovative self-adhesive solutions for consumer products and label materials. Based in Pasadena, Calif., the Company had 2004 sales of $5.3 billion. Subject develops, manufactures and markets a wide range of products for consumer and industrial markets, including Avery-brand office products, Fasson-brand self-adhesive materials, peel-and-stick postage stamps, battery labels, reflective highway safety products, automated retail tag and labeling systems, and specialty tapes and chemicals.

Profile

These include Avery-brand office automation products, Fasson-brand self-adhesive materials, reflective and graphic materials, peel-and-stick postage stamps, industrial labeling solutions, automated retail tag and labelling systems, specialty tapes and chemicals. More than 21,400 employees in 275 manufacturing and sales facilities produce and sell Subject products in 89 countries.

The Company's businesses are organized in two sectors. The pressure-sensitive adhesives and materials sector manufactures Fasson-brand pressure-sensitive base materials in roll form, which are sold to label converters and printers for a variety of industrial and commercial applications. The consumer and converted products sector manufactures a wide range of Avery-brand products for home and office.

The Company’s business are organised in three segments, along with other specialty Converting Business:

Pressure-sensitive materials manufacture Fasson-brand pressure sensitive base materials, reflective and graphic materials and performance polymers.

Office and customer Products manufactures a variety of consumer products under the Avery brand for the office, school and home.

Retail Information Services provides the retail and apparel manufacturing industries with a variety of price marking and brand identification product.

In addition to these business segment, other specialty Converting Business is comprised of several businesses that produces postage stamp, battery labels, performance films, as well as a variety of specialty tapes.

ADDITIONAL INFORMATION

Subject is a multi-billion dollar specialty chemical, industrial and consumer products company whose technology is an integral part of products found in virtually every major industry around the globe. The company is strongly focused on key markets and product areas where its proprietory technologies, brand presence and broad range of capabilities strengthen its global market leadership. The company’s primary business is organized into two sectors. The pressure sensitive adhesive and materials sector manufactures pressure sensitive base materials in roll form, which are sold to label converters and printers for a variety of industrial and commercial applications.

The consumer and converted products sector manufactures a wide range of products for the home and office, including desktop printer labels and cards, binders, indexes and markets as well as a variety of self-adhesive labels, fastening devices, self-adhesive postage stamps, battery tester labels and other speciality label products for global markets.

Avery Dennison Technology

Subject draws upon the material sciences and advances in adhesive coating and converting technology to develop high- performance proprietary materials and innovative pressure-sensitive products. Through applied research, the company develops bas materials with unique properties to offer its customers a wide range of self-adhesive options such as adhesives and adhesives systems, papers, films, foils, primers and topcoats, release coatings and barriers and backing liners.

Subject manufactures self-adhesives materials for variable information and bar code printing, laser and ink-jet printer product, on demand tags, tickets and labels for variable imprinting and material for wide format digital imaging.

Consumer Products

The company manufactures a wide range of prime labeling materials and products, such as highly engineered pressure sensitive film materials, which give plastic containers a clean; “No label” appearance and thermal transfer labeling for glass containers. Subject also produces a variety of informational labeling materials to carry product information such as ingredients, instructions, bar codes and warnings.

Subject manufactures self-adhesive postage stamps, medical grade adhesive; “Smart” labels like the ones developed to measure available power in Duracell batteries; security labels that prevent theft or product tampering; laminated and pressure sensitive films or plastic automotive parts, reflective films for vehicle graphics and traffic signs: tapes for non mechanical fastening, bonding and sealing; self-adhesive films for architectural applications and a wide range of other innovative self-adhesive products.

Avery’s worldwide materials division manufacturers pressure-sensitive coated papers, films and foils for a variety of applications, including promotional and decorative packaging security labeling, product identification, information processing and variable information printing. Specialty tapes division produces pressure-sensitive adhesive tapes in double-coated, single-coated and unsupported transfer form, which are engineered into tape products to meet the fastening, bonding and sealing needs of the appliance, automotive, electronics, medical and consumer markets. Worldwide graphics division employs short-run printing technology to serve the graphic arts, sign making, vehicle marking and related markets. Chemical division produces a range of emulsion-based acrylic polymer adhesives and protective coating t supply internal division and outside customers.

Consumer and Converted Product Sector

The company manufactures kids products, and laser ink-jet printer products and label making software, index dividers, ring binders, sheet protectors, report covers, elasticized folder and a variety of CD-ROM and other presentation and storage products, markers, fine point markers, pressure sensitive products and associated labeling machinery and printing equipment for a wide range of industrial applications, including products of use by automotive original equipment manufactures and heat transfer labels and application machinery, tags, tickets and bonding tapes, injection-moulded plastic fasteners, decorative and functional materials to automotive original equipment manufacturers etc.

Overview

Subject is a global leader in pressure-sensitive technology and innovative self-adhesive solutions for consumer products and label materials. As a multi-billion dollar Fortune 500 company whose pressure-sensitive technology is an integral part of products found in virtually every major industry around the globe, Subject develops, manufactures and markets a wide range of products for consumer and industrial markets.

These include Avery-brand office automation products, Fasson-brand self-adhesive materials, reflective and graphic materials, peel-and-stick postage stamps, industrial labeling solutions, automated retail tag and labeling systems, specialty tapes and chemicals. More than 21,400 employees in 275 manufacturing and sales facilities produce and sell Subject products in 89 countries.

The Company's businesses are organized in two sectors. The pressure-sensitive adhesives and materials sector manufactures Fasson-brand pressure-sensitive base materials in roll form, which are sold to label converters and printers for a variety of industrial and commercial applications. The consumer and converted products sector manufactures a wide range of Avery-brand products for home and office.

Net Sales Increased 18.4% over prior year

· Net effect of paxar acquisition was approx 14%

· Currency added 6% ($0.05 benefit to earning per share)

· Sales declined approximately 2% on an organic basis

Operating margin before restricting and asset impairment charges and transition costs associated with the paxar integration declined by 200 basis points vs. Prior year

· Decline reflects carryover of 2007 price reductions in the roll materials business, raw materials inflation, navigates degment and products mix, as well as reduced fixed cost leverage

· Headwinds also including 50 basis ponts of margin compression from addition of base paxar business ( margin of base business is lower than company – average before integration savings)

Annual effective tax rate for 2008 expected to be in the 15%-18% range (down from18%-12% originally)

· Ongoing annual tax rate now expected to be in the 17% -19% range for the foreseeable future (down from 18%-20% previously), subject to significant volatility from quarter to quarter

· Effective tax rate for the quarter was negative (12.3%), primarily due to recognition of $21 million tax benefit from increased ability to realize deferred tax assets

Reported EPS of $0.69 includes $0.11 of restructuring charges, assets impairment and transition costs for paxar integration

· $0.06 of Transition costs associated with paxar integration

· $0.05 of restructuring and assets impairment charges

Adjusted EPS of $0.80

	Q1-07	Q2-07	Q3-07	Q4-07	Q1-07
Organic Sales Growth (1)	1.3%	2.0%	(0.1)%	(0.6)%	(1.90)%
Acquisition, net of Divestitures	(0.8)%	2.5%	14.5%	15.1%	14.1%
Currency	3.5%	3.5%	4.1%	7.0%	6.1%
Reported Sales Growth	3.9%	8.1%	18.5%	21.4%	18.4%

(1) Reported Sales Growth less the impacts of foreign currency translation and acquisition, net of divestitures (calculation may not tie due to rounding)

Pressure Sensitive Materials:

Reported sales of $920 million up 7% compared with prior year

· Organic sales growth of approx 1% slower than Q4pace

Change in sales for roll materials business by region, adjusted for the effect of currency and intercompany sales:

· Europe up at low single digit rate (improved vs.Q4 pace)

· North America declined at low single digit rate (Similar to 2H-07)

· Asia Growth in Mid-teens

· South America Roughly comparable to prior year

Graphics and reflective business down mid-single digit rate before currency

Excluding restructuring and asset impairment charge, operating margin declined 170 basis points vs prior years to 8.0% as the negative effects of pricing and raw materials inflating more than offset benefits from restructuring and other productivity initiatives.

Retail Information Services

Reported sales of $372 million up 138% compared with prior year due to the paxar acquisition

· Organic sales decline of approx 1%

· Continued weakness of domestic retail apparel market sales on products destined for European market remained solid

Operating margin befor transition cost and restructuring charge declined 330 basis points to 1.0% as integration synergies (approx $17 million) and other productivity actions were more than offset by the effects of :

· Employee-related/ Raw materials cost inflation

· Reduced Fixed Costs leverage

· Negative Price/mix

· Intangible amortization (approx $6 millions) and higher corporate cost allocation (Approx $4 miilion) associated with paxar

· Targeting up to $125 million of annual Synergy saving when complete

· Realized approx $17 million of saving in Q1 up from $11 million in Q4

· Over 75% targeted saving expected to be captured in run rate by year – end

· Last piece of permanent financing complete in February

Office and Consumer Products

Reported Sales of $194 millions down 9% compared with prior year

· Organic Sales Declined of approx 12% due in part to customer inventory reductions ($12 million estimated impact to net sales)

Excluding restructuring charges, operating margin declined 150 basis points to 11.1% as the benefit of restructuring and other productivity initiatives was more than offset by reduced fixed cost leverage

Other Speciality Converting

Reported sales of $159 million compared with prior year

· Organic Sales Declined of approx 4% or roughly comparable to prior year when adjusted for exit of low margin distribution business

Excluding restructuring charges, operating margin declined 130 basis points to 5.8% as the benefit of restructuring and other productivity initiatives as well as a reduction in the loss from RFID was more than offset by reduced fixed cost leverage and cost inflation.

Guidance for adjusted (non – GAAP) earnings per share (Side 17 for reconciliation to GAAP): %4.00 to $4.30 (From $4.15 to $4.55 previously)

· Performance within range is highly dependent on organic growth and product mix

· Midpoint of range assumes no meaningful charge in macro economics environment over the balance of the year

Positive factors contributing to their outlook:

· Incremental Cost synergies from paxar integration ($60 to$ 70millions)

· Restructuring actions already announced ($25 to $30 millions incremental to 2007)

· Other restructuring and ongoing productivity initiatives

· Price increases to partially offset raw material inflation

· Reduced loss from building RFID business ($10 millions)

· Currency translation benefit of approx 5% to top-line (EPS benefit of ~$0.16)

· Lower tax rate

Offsetting factors vs. 2007:

Higher interests ($10 to $15 million) and equity-based comp expense (~$10 millions)

Raw materials inflation (~2.5% before cost-outs, or approx. $70 millions)

General inflation and reinvestment of saving for growth

Current Assumptions	Previous Assumptions
Reported revenue up 10% to 12% including approximately 5% benefit from currency and 7% from acquisitions. - Sales roughly flat on an organic basis, with modest volume growth offset by negative price/mix.	Reported revenue up 9.5% to 12.5% including 2% to 3% from currency and 6.5% from acquisitions - Sales up 1% to 3% on an organic basis
Raw materials cost inflation of approximately 2.5% (~$70 million) offset with benefit from global sourcing strategies, materials cost-outs, and price increases	Approx 2% ($50-$55 millions)
Operating margin of 8.5 % to 9.0%	9% to 10%
Interest expenses of $115 to $120 millions	$125 to $135 millions
Effective tax rate of 15% to 18% (approx 20% effective quarterly tax rate in Q2-Q4)	18% - 20%
Negligible change in shares outstanding	Negligible change

($ in millions)

	Q1-08 Total	RIS	Q1-07 paxar1	Total	Variance Fav (Unf)
Net Sales, as reported	372.0	156.5	215.1	371.6
Adjusted Non-GAAP Operating Income2	3.9	6.8	9.1	15.9
Adjusted Non-GAAP Operating Margin2	1.0%	4.3%	4.2%	4.3%	(330) b. p.

Press Release:

PASADENA, Calif.--(BUSINESS WIRE)--April 24, 2008--The Board of Directors of Avery Dennison Corporation (NYSE:AVY) today declared a quarterly cash dividend of $0.41 per share.

The dividend is payable on June 18, 2008, to shareholders of record at the close of business on June 4, 2008.

Avery Dennison is a global leader in pressure-sensitive labeling materials, retail tag, ticketing and branding systems, and office products. Based in Pasadena, Calif., Avery Dennison is a FORTUNE 500 Company with 2007 sales of $6.3 billion. Avery Dennison employs more than 30,000 individuals in over 60 countries, who develop, manufacture and market a wide range of products for both consumer and industrial markets. Products offered by Avery Dennison include: Fasson-brand self-adhesive materials; Avery Dennison brand products for the retail and apparel industries; Avery-brand office products and graphics imaging media; specialty tapes, peel-and-stick postage stamps, and labels for a wide variety of automotive, industrial and durable goods applications.

CONTACT: Avery Dennison Corporation
Media Relations:
Laurence J. Dwyer, (626) 304-2014
communications@averydennison.com
Investor Relations:
Cynthia S. Guenther, (626) 304-2204
investorcom@averydennison.com

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.40.46
UK Pound	1	Rs.79.99
Euro	1	Rs.63.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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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