MIRA INFORM REPORT

Report Date :

08.11.2008

IDENTIFICATION DETAILS

Name :	INTAS BIOPHARMACEUTICALS LIMITED
Registered Office :	Plot No. 423, PA GIDC, Sarkhej-Bavla Highway, Moraiya, Taluka Sanand, Ahmedabad – 382 210, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	23.11.2005
Com. Reg. No.:	04-47111
CIN No.: [Company Identification No.]	U24230GJ2005PLC047111
TAN No.: [Tax Deduction & Collection Account No.]	AHMI00909G
PAN No.: [Permanent Account No.]	AABCI4722M
Legal Form :	A closely held public limited liability company
Line of Business :	Subject is engaged in the business of Offering Research, Analytical and Manufacturing services to Biotech companies worldover

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 1100000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is the result of scheme of Arrangement with Intas Pharmaceuticals Limited. Payments are respectable and highly qualified businessmen. Their trade relations are fair. Financial position is improving. The company is expressed to perform well in near future. It’s payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Plot No. 423, PA GIDC, Sarkhej-Bavla Highway, Moraiya, Taluka Sanand, Ahmedabad – 382 210, Gujarat, India
Tel. No.:	91-2717-660100 / 01
Fax No.:	91-2717-251189
E-Mail :	business@intasbiopharma.co.in premnarayan.tripathi@intasbiopharma.co.in
Website :	http://www.intasbiopharma.co.in

DIRECTORS

Name :	Mr. Urmish Hasmukh Chudgar
Designation :	Director
Address :	16, Nishant Bunglows, Part – 1, B/H Shyamal Row House, Satellite Road, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	16.02.1959
Date of Appointment :	29.11.2007
Name :	Mr. Hasmukh Kesrichand Chudgar
Designation :	Director
Address :	13-14, Sanidhya Bunglows, Near Someshwar Complex, Shyamal Cross Road, Satellite, Ahmedabad – 380 053, Gujarat, India
Date of Birth/Age :	16.05.1933
Date of Appointment :	16.01.2006
Name :	Mr. Nimish Hasmukhbhai Chudgar
Designation :	Director
Address :	13-14, Sanidhya Bunglows, Near Someshwar Complex, Shyamal Cross Road, Satellite, Ahmedabad – 380 053, Gujarat, India
Date of Birth/Age :	19.08.1960
Date of Appointment :	16.01.2006
Name :	Mr. Mani Swaminathan Iyer
Designation :	Director
Address :	30, Green Park Bunglows, Near HDFC Bank, Ambli-Bopal Road, Ambli, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	26.12.1954
Date of Appointment :	23.11.2005
Name :	Mr. Dhananjay Bhawanishankar Patankar
Designation :	Director
Address :	D/52, Galaxy Apartments, Near Hotel Grand Bhagwati, Bodakdev, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	25.01.1965
Date of Appointment :	23.11.2005
Name :	Mr. Nitin J Deshmukh
Designation :	Director
Address :	No. 201, Ekta Heritage, 15^th Road, Khar, Opp. Prestige Court, Mumbai – 400 052, Maharashtra, India
Date of Birth/Age :	07.11.1962
Date of Appointment :	14.08.2007

KEY EXECUTIVES

Name :	Mr. Premnarayan R Tripathi
Designation :	Secretary
Address :	402, Dharmik Co-operative Housing Society Limited, Near Taranga Hill Soc., Opp. Arjun Ashram, Chandlodia, Ahmedabad – 382 481, Gujarat, India
Date of Birth/Age :	10.03.1981
Date of Appointment :	14.08.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 28.09.2007)

Names of Equity Shareholders	No. of Shares
Hasmukh Kesrichand Chudgar	77870
Urmish Hasmukh Chudgar	10000
Binish H Chudgar	128750
Nimish Hasmukhbhai Chudgar	133220
Parul U Chudgar	78440
Shail U Chudgar	101240
Mani C Iyer	2000
Kusumben H Chudgar	269090
Bindiben B Chudgar	68930
Binaben N Chudgar	40460
Equatorial Private Limited	924000
Intas Finance Private Limited	80000
Kotak Mahindra Trusteeship Services Limited A/c Kotak India Venture Fund I	1000
Total	1915000

(As on 28.09.2007)

Names of Preference Shareholders	No. of Shares
Kotak Mahindra Trusteeship Services Limited A/c Kotak India Venture Fund I	6999333
Total	6999333

Equity shares Breakup (percentage of total equity)

(As on 30.09.2007)

Category	Percentage
Bodies corporate	52.48
Directors or relatives of directors	47.52
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Offering Research, Analytical and Manufacturing services to Biotech companies worldover

Products :

Product Description	ITC Code
Granulocyte Colony Simulating Factor	30049099
Erythropoietin	30045010
Interferon Alpha	30049099

GENERAL INFORMATION

Bankers :

· Axis Bank Limited

Trishul 3^rd Floor, Opp Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad – 380 006, Gujarat, India

· Export Import Bank of India

Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

Facilities :

Secured Loans	(As on 31.03.2007) Rs. In millions
Working Capital Loans
From a Bank	33.689
Term Loans
Form a Bank	313.549
Hire Purchase Loans
Form a Bank	0.161
Total	347.399

· Working Capital Loan from a Bank are secured by hypothecation of stocks, book debts and second charge on Fixed assets of the Company and is further secured by personal guarantee of the Director.

· Term Loan from the Banks is secured by pari-passu charge on the fixed assets of the Company and second charge on current assets of the Company. The said Term Loans are further secured by personal guarantee of the Director.

· Hire Purchase Loans is secured by hypothecation charges on specific vehicles financed out of the loan.

Banking Relations :	Satisfactory
Auditors :
Name :	· Deloitte Haskins and Sells Chartered Accountants Address : 3^rd Floor, Heritage, B/H Gujarat Vidyapith, Off. Ashram Road, Ahmedabad – 380 009, Gujarat, India · Apaji Amin and Company Chartered Accountants Address : 304, Aakansha, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Associates :	· Prime Pediatrics Private Limited · Cytas Research Private Limited · Advance Transfussion and Medicine Research Foundation · Astron Research Limited · Astron Packaging Limited · Intas Pharmaceuticals Limited · Intas Finance Limited · Equitorial Private Limited · Andre Laboratories Limited · Accord Healthcare Limited · Accord Healthcare Inc (USA) · Accord Healthcare NZ Limited (New Zealand) · Accord Healthcare Pty Limited (Australia) · Accord Healthcare Proprietary Limited (South Africs) · Accord Farma S A DE CV Mexico
Subsidiaries :	· Indus Biotherapeutics Limited CIN No.: U73100GJ2000PLC038979 · Celestial Biologicals Limited CIN No.: U40201GJ2000PLC037850

CAPITAL STRUCTURE

(As on 30.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
3567334	Equity Shares	Rs.10/- each	Rs.35.673 millions
13332666	Preference Shares	Rs.10/- each	Rs.133.327 millions
	Total		Rs.169.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1915000	Equity Shares	Rs.10/- each	Rs.19.150 millions
6999333	Preference Shares	Rs.10/- each	Rs.69.993 millions
	Total		Rs.89.143 millions

(As on 31.03.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1914000	Equity Shares	Rs.10/- each	Rs.19.140 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		19.140	0.500
2] Share Application Money		0.000	18.640
3] Reserves & Surplus		246.334	246.334
4] (Accumulated Losses)		(53.643)	(38.486)
NETWORTH		211.831	226.988
LOAN FUNDS
1] Secured Loans		347.399	141.204
2] Unsecured Loans		273.947	150.356
TOTAL BORROWING		621.346	291.560
DEFERRED TAX LIABILITIES		106.128	90.825
TOTAL		939.305	609.373
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		555.948	412.117
Capital work-in-progress		328.286	170.967
INVESTMENT		39.864	17.608
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	62.666	21.467
	Sundry Debtors	56.676	26.511
	Cash & Bank Balances	6.451	2.087
	Other Current Assets	0.000	0.000
	Loans & Advances	19.804	13.299
Total Current Assets		145.597	63.364
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	125.823	52.304
	Provisions	4.567	2.379
Total Current Liabilities		130.390	54.683
Net Current Assets		15.207	8.681
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		939.305	609.373

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		260.944	65.813
Other Income		0.665	0.864
Total Income		261.609	66.677
Profit/(Loss) Before Tax		2.690	(31.595)
Provision for Taxation		17.245	6.891
Profit/(Loss) After Tax		(14.555)	(38.486)
Earnings in Foreign Currency :		12.794	0.054
Imports :
	Raw Materials	26.717	7.814
	Stores & Spares	0.000	0.431
	Capital Goods	37.380	18.826
	Others	7.139	1.996
Total Imports		71.236	29.067
Expenditures :
	Raw Material Consumed	55.933	14.938
	Purchases made for re-sale	46.078	0.000
	Consumption of stores and spares parts	1.311	2.529
	Increase/(Decrease) in Finished Goods	(31.758)	6.396
	Salaries, Wages, Bonus, etc.	40.839	13.566
	Managerial Remuneration	2.093	0.000
	Payment to Auditors	0.056	0.040
	Interest	17.595	7.628
	Insurance Expenses	1.412	0.346
	Power & Fuel	14.328	4.794
	Depreciation & Amortization	29.790	11.958
	Other Expenditure	81.242	36.077
Total Expenditure		258.919	98.272

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	(5.56)	(57.72)
Net Profit Margin (PBT/Sales)	(%)	1.03	(48.01)
Return on Total Assets (PBT/Total Assets}	(%)	0.38	(6.64)
Return on Investment (ROI) (PBT/Networth)		0.01	(0.14)
Debt Equity Ratio (Total Liability/Networth)		3.55	1.53
Current Ratio (Current Asset/Current Liability)		1.12	1.16

LOCAL AGENCY FURTHER INFORMATION

The Company has improved its overall performance during the financial year 2006-07. The Net Sales and profit for the year were Rs.260.944 millions and Rs.2.690 millions respectively as compared to the previous year Rs.65.813 millions and a loss of Rs.31.595 millions respectively. The improved performance is the result of increasing focus on operational efficiencies and aggressively strengthening the market position in spite of stiff competition in the market.

With an aim to streamline revenue figures and profits, the Directors have agreed not to recommend any dividends this year. The company, currently, intends to retain any future earnings and do not expect to pay any dividends in the foreseeable future.

Operations

The year was a year of transition for the Company. As an independent biopharmaceutical entity of Intas Group, the Company began its operations on an optimistic and positive note. The year under consideration has witnessed enormous growth in Research and Development activities.

The company went into an EU audit in December 2006 and succeeded in getting the European Medicines Agency’s (EMEA) certification for the manufacturing facility for one of its lead product in May 2007. As of today, the Company is the first and only biotechnology Company in India to have EU-GMP certification for its manufacturing facility, which is a unique distinction and achievement. The certification has allowed the Company to get an entry into regulated markets of Europe to conduct clinical trials for many of the products which are in the pipeline and stimultaneously, the certification has opened new avenues to explore existing/new technologies and process. EU-GMP certification simplifies the procedure for product registration in different countries of European Union by significantly reducing the time required by the company to get the product registration and many companies across the globe would be taken to associate with them for the products and services.

In terms of Quality, the certification verifies and is an assurance to outside agencies and regulatory bodies regarding superior standards and parameters. It confirms that the manufacturing facility of the company is unique in many aspects that include maintenance, procedures/processes followed and strict compliance of international protocols and standards.

Development of bio-generics including Cytokines, Hormones, Novel Products and recombinant blood factors is amongst the priority area for the Company. In order to develop innovative research technologies/new molecules related to biopharmaceuticals; evaluate technology platforms; identify partnership opportunities, in-lecensable IPs; and to build up Novel Drug Delivery System for proteins, the Company constituted a dedicated Strategic Research team.

The company, in January 2007, entered into a Memorandum of Understanding (MoU) with US-based ProGenetics for development of Factor IX, a drug used for treatment of Haemophilia B. This will be followed up by more products made on the transgenic platform. Subject would be the First Indian biotech company to develop drugs from transgenic animals, carry out clinical trials and launch the drugs in India and in overseas markets.

Additionally the Company and Canada-based Viropro International Inc., a subsidiary of Viropro Inc., signed R and D agreement towards the Development and Production of Rituximab – Mono Clonal Antibody (Mabs). The Company is looking to leverage certain proprietary technologies and expertise of Viropro towards co-development of molecule. The respective agreements will serve the Company’s purpose to explore novel R and D technologies for development of new bio-therapeutic products and offers unique collaboration opportunities to respective companies for commercial as well as research interests.

In line with the growing R and D activities, the company has successfully undertaken expansion of its physical infrastructure. With setting up of a new research laboratories, the company is in a position to strengthen its R and D activities. This will speed up the product introduction cycle in the market and thereby the company will be equipped to undertake 10-12 projects at a time.

The Company is well poised to become Global Biogeneric Company by 2010 having presence in 6 continents covering 76 countries with their branded biogeneric products. It has tied up with strong business partners in all these countries and regions who have decades of experience in registration, marketing and distribution, It is also targeting at least 100 registration from various international authorities in next two years.

Notes on Accounts

Subject was incorporated on November 23, 2005 pursuant to the Scheme of Arrangement (“the Scheme”) under sections 391 to 394 of the Companies Act, 1956, between subject (“the transfer company”) and the Company, sanctioned by the Gujarat High Court on 22^nd June, 2006. As the financial year ended 31^st March 2007 is the first year of full operations, the figures for the year are not comparable with those of the previous year.

The procedure for giving effect to the Scheme, which was under progress in the previous financial year, has been completed on 22^nd June 2006. On completion of the procedure, in consideration of the demerger of the Biopharmaceutical division from the transfer company to the Company, the Company has issued and allotted 1864000 fully paid up equity shares of the Company of Rs.10/- each at par, aggregating to Rs.18640000 to the shareholders of the transfer company whose names are recorded in the register of members of the transferor company on record date, in the ration of 2 equity shares of the Company of Rs.10/- each credited as fully paid-up for every shares of RS.10/- each fully paid up held by the members in the Transferor Company on 7November 2006, this amount in the previous year stood as “Share Capital- Pending Allotment” in the Balance Sheet.

Fixed Assets

· Land

· Building

· Plant and Machinery

· Furniture, Fixtures and Office Equipments

· Vehicles

· Computers

Form No. 8

Corporate identity number of the company	U24230GJ2005PLC047111
Name of the company	INTAS BIOPHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 423, PA GIDC, Sarkhej-Bavla Highway, Moraiya, Taluka Sanand, Ahmedabad – 382 210, Gujarat, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Export Import Bank of India Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Nature of instrument creating charge	Unattested Deed of Hypothecation dated 17^th June, 2008 executed by Intas Biopharmaceuticals Limited (herein and thereafter referred to as “the Borrower”) in favour of Export Import Bank of India (Exim Bank)
Date of instrument Creating the charge	17.06.2008
Amount secured by the charge	Rs.150.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest 2% p.a. below Exim Bank’s PLR (presently 13.50% p.a.) subject to change as per Bank’s Directives, payable with monthly rests on the 20^th of every month. The Interest rate is subject to reset as per schedule II – A of Rupee Loan Agreement. · Terms of repayment The Rupee loan shall be repaid in 16 (sixteen) substantially equal quarterly installments commencing after 18 months from the date of first disbursement or such other date as may be advised by Exim Bank at the time of making first disbursement. · Margin 20.00% · Extent and operation of the charge The charge created by the aforesaid Deed of Hypothecation shall operate as a continuing security by way of first pari passu charge over the entire moveable fixed assets of the company, both present and future and by way of second charge on entire current assets of the company both present and future, for due repayment by the Borrower to Exim Bank of the Rupee Loan of Rs.150.000 millions together with Interest and other monies payable thereunder by the Borrower to Exim Bank.
Particulars of the property charged	Whole of the Borrower’s Moveable fixed assets and current assets, both present and future more specifically described in Schedule III to the Deed of Hypothecation.

Web Details

Overview

Subject is a fully integrated biopharmaceutical company based out of Ahmedabad, Gujarat. Since launch of biotechnology operations in May 2000, Research and Development (R and D) and Manufacturing of Biopharmaceutical products with a special focus on Oncology (Cancer) are the major thrust areas for the company.

Subject is India’s first and only biopharmaceuticals company to receive European Union - Good Manufacturing Practice (EU-GMP) certification for its manufacturing facility.

Subject has carved a niche in the biopharmaceutical arena for its world class Quality Standards, with the facility complying strictly with International Good Manufacturing Practices and guidelines laid down by the World Health Organization (WHO).

Products are under registration in more than 78 countries. Locally, the company has strategic tie-ups to penetrate the highly competitive Indian market. Subject has entered into several supply and marketing agreements with reputed international companies in regulated and semi-regulated markets of Europe, Asia-Pacific, Middle East, Russia and CIS, South and Central America and Africa.

History

Subject launched its biotechnology operations in May 2000 comprising of Research and Development (R and D) and Manufacturing of Biopharmaceutical products with a special focus on Oncology (Cancer) Salient Features

· R and D and Manufacturing facilities doubled within 4 years

· Human resources increased by a factor of 10 since inception

· EMEA approval obtained in just 3 years

· Therapeutic recombinant protein development from bench to commercial product in 3 years flat

Starting with bio-generics, Subject has structured its progression to the development of proprietary and innovative recombinant biopharmaceuticals.

The company has successfully launched therapeutic recombinant proteins Neukine (rHu G–CSF), Erykine and Epofit (rHu EPO), Intalfa (rHu IFN Alfa-2b) and Neupeg (Pegylated rHu G-CSF), world’s first Peg Filgrastim after the innovator.

The company has also invested in one of the best cold chain packaging systems validated to maintain required conditions and ensure retention of product efficacy from plant to destination.

Milestones

Division Conceptualized	May 2000
First Clone/Technology acquired	Aug 2001
R and D centre operational	Oct 2001
Manufacturing Facility operational	March 2003
Neukine (rHu G-CSF) launched	July 2004
Erykine and Epofit (rHu EPO) launched	May 2005
Intalfa (rHu IFN Alfa-2b) launched	March 2007
EU-GMP certification received	March 2007
Facility expansion	March 2007
Neupeg (Pegylated rHu G-CSF) launched	October 2007

Businesses

Subsidiaries of Intas Biopharma

Indus Biotherapeutics

Indus Biotherapeutics is a dedicated biopharmaceutical Contract Research Organization. This company solely concentrates on research and development of novel targets as well as bio-generics. Indus’ expertise lies in process and product development, analytical method development, bio-chemical immunological analysis, process validation, scale-up and technology transfer to manufacturing scale.

Website: http://indusbio.co.in

Celestial Biologicals

Celestial Biologicals focuses on the manufacturing and marketing of plasma-derived products mainly Albumin, Immunoglobulin, and Coagulation Factors (Factors VII, VIII, IX, XI, and Fibrinogen). Celestial Biologicals plans to invest heavily in creating south Asia’s largest plasma fractionation facility. The facility would cater to Indian requirements and the needs of other SAARC countries.

News

Intas Biopharma acquires us–based BPD Inc.,

India’s leading biopharmaceutical company, Intas Biopharmaceuticals Limited (IBPL) has acquired US-based biotechnology corporation, Biologics Process Development Incorporated (BPD Inc.), based in Poway, California. With acquisition process underway, both companies are actively pursuing plans to work closely towards fulfillment of common business objectives in the area of Contract Research and Manufacturing Services (CRAMS). With agreement in the final stages of completion, the financials has been undisclosed and will be accordingly announced at a later stage.

The development will facilitate and assist Intas Biopharmaceuticals Limited’s foray in US market especially to expand its CRAMS business. With mutual understanding and agreement, DR. SCOTT M. BROWN shall continue as President and Chief Scientific Officer of BPD Inc. and Dr. Rajeev Datar shall be the new Chief Executive Officer of BPD Inc.

Sharing the details of the development, Dr. Rajeev Datar, said, “With Intas Biopharmaceuticals and BPD Inc. coming together, the two companies complement technical strengths of each other. Both the companies shall gain expertise from the synergies in technical areas like gene expression optimization, medium optimization cell culture/fermentation services, protein purification scale-up and analytical services thereby expanding the scope of CRAMS activities.”

Expressing his views on the development, Dr. Scott M. Brown, said, “We are pleased to become associates with Intas Biopharmaceuticals who are leaders in area of biologics in India. Jointly we compliment each other on technology front and we, at BPD Inc., are looking forward to jointly work with Intas Biopharmaceuticals in the area of R&D and explore new technology frontiers.”

Intas Biopharmaceutical’s venture into Crams business has opened up new vistas for R and D in biosimilars. Dr. Dhananjay Patankar, Chief Technical Officer of Intas Biopharmaceuticals Limited, has worked the technical evaluation of the business plan. Dr. Dhananjay Patankar, said, “IBPL has taken up Crams opportunity as a focus area with tremendous potential and are preparing to scale up the facilities. IBPL offers a unique business model for offshore clients and has competitive advantage in terms of developing new biotech products, technology transfer and contract manufacturing at committed costs, quality and time to create a competitive advantage for the client.”

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.47.76
UK Pound	1	Rs.74.87
Euro	1	Rs.60.81

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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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