MIRA INFORM REPORT

Report Date :

11.11.2008

IDENTIFICATION DETAILS

Name :	THERMAL SYSTEMS (HYDERABAD) PRIVATE LIMITED
Registered Office :	Plot No.1, Apuroopa Towns JIP, IDA Jeedimelta, Hyderabad-500055, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	04.11.1991
Com. Reg. No.:	01-13404
CIN No.: [Company Identification No.]	U31909AP1991PTC013404
TAN No.: [Tax Deduction & Collection Account No.]	HYDT01115C
PAN No.: [Permanent Account No.]	AAACT9825H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Boilers, Economisers, Superheaters, etc.

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 1600000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Profit margin is under severe pressure. Trade relations are reported as fair. Payments are usually correct and as per commitments. It can be considered normal any business dealing at usual trade terms and conditions

LOCATIONS

Registered Office :	Plot No.1, Apuroopa Towns JIP, IDA Jeedimelta, Hyderabad-500055, Andhra Pradesh, India
Tel. No.:	91-40-23091801
Fax No.:	91-40-23097433
E-Mail :	info@thermalindia.com
Website :	www.thermalindia.com
Location :	Owned
Factories :	Located at :- v Apuroop Township, I. D. A., Jeedimetla, Hyderabad – 500 055, Andhra Pradesh, India. v Plot No. D27, Phase V IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh v Plot No. D30 and 31, Phase V IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh v Plot No. 158, IDA, Bollaram, Miyapur, Hyredabad, Andhra Pradesh

DIRECTORS

Name :	Mr. Polina Veer Raju
Designation :	Managing Director
Address :	Plot No.303-B, Road No.25, Jubilee Hills, Hyderabad-500033, Andhra Pradesh
Date of Birth/Age :	01.06.1949
Date of Appointment :	04.11.1991
Name :	Mr. P. Varadaraj
Designation :	Joint Managing Director
Name :	Mr. Polina Satyanarayana
Designation :	Whole time Director
Address :	Flat No.201, Plot No.19, Lakshmi Apartments, Salivahana Nagar, Hyderabad-500073, Andhra Pradesh
Date of Birth/Age :	11.11.1959
Date of Appointment :	16.08.1993
Name :	Mr. K. Venu
Designation :	Director
Name :	Mr. Mullapudi Ananda Rao
Designation :	Director
Address :	H.No.2-30/6, Nizampet Road, Hyder Nagar, Hyderabad, Andhra Pradesh
Date of Birth/Age :	20.10.1960
Date of Appointment :	16.08.1993
Name :	Mr. Polina Sesharathnam
Designation :	Director
Address :	Plot no.303-B, Road No.25, Jubilee Hills, Hyderabad-500033, Andhra Pradesh
Date of Birth :	03.02.1958
Date of Appointment :	04.11.1991

KEY EXECUTIVES

Name :	Mr. Vedula Gopinath
Designation :	Company Secretary
Address :	8-2-317/A, Flat No.201, D Block, Amrutha Enclave, Road No.14, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India
Date of Birth/Age :	01.07.1947
Date of Appointment :	25.08.2006
E-Mail:	vgopinath2@yahoo.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Polina Veerraju	3794125
Mr. Polina Satyanarayana	1195000
Mr. Mullapudi Anand Rao	597500
Mr. Polina Sesha Ratnam	388375

(AS ON 29.09.2007)

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Boilers, Economisers, Superheaters, etc.

Products :

Item Code No.	Product Description
84021000	Boilers and parts
84041000	Economisers and parts
84041000	Superheaters and part

Exports :

Countries :

Nigeria, Syria, Bangladesh, Indonesia, Iran, U.K. and Spain.

PRODUCTION STATUS (As on 31.03.2008):-

Particulars	Actual Production
	Quantity in Nos.	Value (Rs. in Millions )
Economizers	19	170.380
Super Heaters	16	199.419
Boilers	21	508.099
Others	39	465.398

GENERAL INFORMATION

Customers :

Oswal Chemicals and Fertilizers Limited, Paradeep, Madhya Pradesh

No. of Employees :

250

Bankers :

State Bank of India, Saifabad (SIB) Branch, HACA Bhavan, Hyderabad – 500 004, Andhra Pradesh

Facilities:

Secured loans	31.03.2008 (Rs. In millions)
Working capital loan from State Bank of India (Against hypothecation of stocks, WIP, Book Debts on 1^st Charge on land and Building at plot No. S.30 and 31, land at Survey No. 279 and Land at Sy. No. 172 IDA, Bollaram. Miyapur, HYd and 2^nd charge on Land and Building, plant and Machinery at plot No. 1, Plot No. D – 27, Plot No. 157A, 157B, 157C and Plot No.158 at Sy. No. 172, Ida, Miyapur, Bollaram, Hyderabad and Directors personal Guarantee)	3.571
Term loan from APSFC (Secured by equitable of land and Building covered by plot # 1 Apouroopa Town Ship, plot # D .27, plot # 157A, B and C, 158, IDA Bollaram and Hypothecation of plant and Machinery at Plot # 1, D.27 and D -30,3 1, 2^nd Charge on Land and Buildings at Plot No. D -30 and 31, Phase V, IDA Jeedimetla, and plot No. 158 at Sy.No. 172, Ida, Miyapur, Bollaram, Hyderabad and Directors personal Guarantee.	84.917
Vehicle Loans (Against hypothecation of vehicles to HDFc Bank Limited, Standard Chartered Bank, ICICI Bank)	2.821
Total	91.309

UNSECURED LOANS	31.03.2008 (Rs. In millions)
Interest Free Sales Tax loan	20.682
From Others	----
Total	20.682

Banking Relations :

Satisfactory

Financial Institutions :

Andhra Pradesh State Financial Corporation, Chirag Ali Lane, Hyderabad, Andhra Pradesh, India

Auditors :

Name :

G. Seshadri and Company

Chartered Accountants

Address :

Plot No.D11, Road No.9, Film Nagar, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Subsidiaries :

Fortuna Boiler Engineers GMBH

CAPITAL STRUCTURE

(As on 31.03.2008):-

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity shares	Rs. 10/- each	Rs. 70.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5975000	Equity shares	Rs. 10/- each	Rs. 59.750 millions

Notes:

Out of the above 4105000 Equity Shares of Rs. 10/- each issued as bonus shares

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		59.750	59.750	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		248.513	177.923	108.732
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		308.263	237.673	158.732
LOAN FUNDS
1] Secured Loans		91.309	118.179	394.148
2] Unsecured Loans		20.682	20.682	45.682
TOTAL BORROWING		111.991	138.861	439.830
DEFERRED TAX LIABILITIES		22.118	13.807	27.253
TOTAL		442.372	390.341	625.815
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		206.995	189.868	196.826
Capital work-in-progress		1.207	1.781	0.154
INVESTMENT		3.115	1.115	1.115
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	224.406	93.198	264.371
	Sundry Debtors	369.972	312.732	407.231
	Cash & Bank Balances	283.473	295.606	86.025
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	128.405	62.391	42.749
Total Current Assets		1006.256	763.927	800.376
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	708.193	523.172	345.828
	Provisions	67.008	43.177	26.828
Total Current Liabilities		775.201	566.349	372.656
Net Current Assets		231.055	197.578	427.720
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		442.372	390.341	625.815

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1412.136	1324.761	1294.821
Other Income		14.323	7.224	0.000
Total Income		1426.459	1331.985	1294.821
Profit/(Loss) Before Tax		133.619	105.309	43.651
Provision for Taxation		56.039	29.305	22.091
Profit/(Loss) After Tax		77.580	76.004	21.560
Earnings in Foreign Currency :
	Other Earnings	299.021	221.045	NA
Total Earnings
Expenditures :
	Manufacturing Expenses	161.097	140.991
	Administrative Expenses	161.336	100.749
	Raw Material Consumed	871.418	776.072	1251.170
	Increase/(Decrease) in Finished Goods	[49.947]	[73.744]
	Salaries, Wages, Bonus, etc.	104.481	73.622
	Depreciation & Amortization	17.699	15.788
	Other Expenditure	26.756	193.198
Total Expenditure		1292.840	1226.676	1251.170

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	5.44	5.71	1.66
Net Profit Margin (PBT/Sales)	(%)	9.46	7.95	3.37
Return on Total Assets (PBT/Total Assets}	(%)	10.97	11.01	4.37
Return on Investment (ROI) (PBT/Networth)		0.43	0.44	0.27
Debt Equity Ratio (Total Liability/Networth)		2.89	2.97	5.12
Current Ratio (Current Asset/Current Liability)		1.30	1.35	2.15

LOCAL AGENCY FURTHER INFORMATION

Additional Information:-

Sales Trend

The company has reported turnover of Rs. 1426.500 millions during the year and total sales income is marginally increased over the previous year. There have been positive trends for the company’s products in the Export market. Hence, the company is making all – out efforts to secure orders from the Export markets. The current order book position is satisfactory and valued at Rs. 2000 millions.

Exports:

During the year the company achieved export turnover of Rs. 123.600 millions against the previous figure of Rs. 297.700 millions. The company’s equipment is well accepted by the foreign customers in view of the quality standards maintained by the company.

Review of operations:

The increased thrust on infrastructure projects and core sector development has indeed given positive encouragement to the company’s products and the same trend continues for few years. Further the company’s efficiency in procuring the raw materials and controlling manufacturing expenses has yielded Higher Profit Before Tax of Rs. 133.600 millions when compared to the previous figure of Rs. 105.300 millions

The company executed two direct export orders to Alstom, Germany, one to L T A Process Engineering, South Africa and to P. T. Utama Inti Hasil Kimia Industry, Indonesia this year. The company is also under business understanding with Alstom, Germany to expand its business opportunities. Some more orders are just under finalisation.

Subject is specialized in design (thermal and mechanical), supply, testing and commission of :

Ø Waste heat recovery steam generating systems for S.A. plants, nitric acid, ammonia, hydrogen plants, zinc and lead smelters and metallurgical plants.

Ø Fired boilers (coal, oil, gas, bio-mass and combination fuels)

Ø H.R.S.G. : Behind gas turbines and gensets

Ø Fuel gas boiler for kilns, furnaces and incinerators

Ø Regenerative systems / equipment : HP and LP heaters, surface condenser and de-aerators in turbine island

Ø Heat exchangers and pressure vessels

Ø Fired heaters : in C.S., L.A.S. and S.S. material (fabrication and supply only)

Ø EPC providers for bio-mass based power plants and municipal waste to energy power plants

The company executes works under 3^rd party inspection agencies like :

Ø Lloyds (LRIS)

Ø Bureau Veritas (BVQI)

Ø SGS India Limited (S.G.S.)

Ø D N V

Ø I B R

Ø Chief Controller of Explosives (CCE)

Ø Mecon

Ø M. N. Dastur and Company

Ø FACT

Ø Tata Projects Limited

Ø Bux Connsil

The company has entered into strategic technical collaboration / understanding with leading and reputed international companies such as :

Ø SHG Gmbh, Kassel, Germany

Ø Schlede Engineers, The Netherlands

Ø Stejasa, Spain

Ø Raschka, Germany

FIXED ASSETS:-

· Land and Buildings

· Plant and Machinery

· Electrical Installations,

· Office Equipment,

· Vehicles,

· Furniture and Fittings,

· Computers, etc.

Form 8:-

This form is for	Modification of charge
Charge identification number of the modified	90137573
Corporate identity number of the company	U31909ap1991ptc013404
Name of the company	THERMAL SYSTEMS (HYDERABAD) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.1, Apuroopa Towns JIP, IDA Jeedimelta, Hyderabad-500055, Andhra Pradesh, India
Type of charge	· Immovable Property · Book Debts · Movable Property
Particular of charge holder	State Bank of India , MID Corporation Loan Advance Unit 3-6-281/A/1, 1^st Floor, near Old MLA Quarters, Hyderabad – 500 029, Andhra Pradesh, India E-Mail: madhu.arni@sbi.com
Nature of description of the instrument creating or modifying the charge	· Letter regarding the grant of individual limits within the overall limit · Sanction letter.
Date of instrument Creating the charge	28.04.2008
Amount secured by the charge	Rs. 1050.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest: Cash credit (Hypothecation) – SBAR presently 12.25% per annum with monthly rests. Standby Line of credit – 1% above interest applicable to CC i.e. 13.25% per an annum with monthly interest rests. EPC (under Exporters Gold Card Scheme) – upto 180 days: 3% below SBAR i.e. 9.25% per annum with monthly interest rests. Beyond 180 days and up to 270 days: 1.75% below SBAR i.e., 10.50% per annum with monthly rests. Terms of repayment: Repayable on demand Margin: Raw Materials : Domestic -25% Imported – 10% Stock in process -25% Finished goods – 25% Receivables (cover 90 days)- 40 % EPC – 10% Letter of Credit – 10% BG – 1% Extent and Operation of the charge: The charge will be extended on immovable properties of the company as described in the agreements.
Short particulars of the property charged	· Primary security : hypothecation of stocks, book debts and other chargeable current assets Collateral security: · EM of factory land adm. 2443.16 Sq.yards in S. No. 289 with factory shed. · EM of industrial Land at S. No. 279 adm. 7486 Sq yards. (both at Ida, Jeedimetla) · EM of Ind. Land at S. No. 172/A, IDA Bollaram Valued Rs. 5.100 millions (sale deed no. 1070/03) · Ext. of EM on residential property No. 8-2-293/82/A/303/B, Road 26 Jubileehills. Others as per the agreements.
Particulars of the present modification	The overall limits have been decreased to Rs. 1050 millions from the existing Rs. 1175 millions The details are as below:- · CC (Hyp) limits decreased from the existing Rs. 300 millions to Rs. 200 millions · LCS limits decreased from the existing Rs. 325 millions to Rs. 300 millions · BG limit remain same as Rs. 500 millions · SLC limits remain same as Rs. 50 millions

Name of the company

THERMAL SYSTEMS (HYDERABAD) PRIVATE LIMITED

Presented By

Mr. C. Rajasekhar

1) Date and description of instrument creating the change

09.02.1994

General agreement for the grant of small industrial advances and hypothecation of movables, book debts and other assets.

Hypothecation of goods, book debts, movable and other assets

Advances against receivables and bills

2) Amount secured by the charge/amount owing on the securities of charge

Rs.13.000 millions

Sub limit:

CC - Rs.2.000 millions

Bills – Rs.1.000 millions

LC – Rs.5.600 millions

BG – Rs.4.400 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

Hypothecation of stocks, book debts and other chargeable current assets

Collateral Security :

Mortgage of factory shed at Plot No.D-30 and 31, Phase V, IDA, Jeedimetta, Hyderabad admeasuring 1800 Sq. ft. of each shed and admeasuring 2443.16 Sq. yards. 2^nd charge on land and building and plant and machinery at Plot No.1, Apuroopa Township, Jeedimetta, Hyderabad. 2^nd charge on land and building and plant and machinery at Plot No.1, Apuroopa Township, Jeedimetta, Hyderabad

EM of Industrial Land at Sy. No.279, Jeedimetla Qutbullapur Municipalty in the name of the company admeasuring 1856 Sq. yards

2^nd charge on land and building at Sy. No.158, IDA Boltaram, Miyapur, Hyderabad.

EM of Industriual land at Sy. No.158, IDA, Boltaram, Miyapur, Hyderabad.

Extension of EM of house on Plot No.303-B, H. No.8-2-293/82/A Road No.26, Jublee Hills, Hyderabad -33 belongs to Mr. P.V. Raju, MD.

4) Gist of the terms and conditions and extent and operation of the charge.

Stock – Margin 25%

Bills – Margin 40%

That the interest charged by the bank at rate of 0.25% below SBAR advance rate with a minimum of 10% per annum.

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Saifabad (SIB) Branch, Hyderabad

6) Date and brief description of instrument modifying the charge

27.12.2005

Agreement of loan for overall limit

Agreement of hypothecation of goods and assets

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.

Total charge now extended to Rs.1175.000 millions

(Rs. In millions)

Limits	Existing	Revised
CC	185.000	300.000
Stand by line of credit	15.000	50.000
Sub limit EPC	(25.000)	(120.000)
Sub limit BD	(100.000)	(160.000)
Sub limit DDP	(3.000)	(20.000)
Sub limit FBD	(30.000)	(56.500)
B.Gs	340.000	500.000
L.Cs	230.000	325.000

Interest for CC

Is 0.25% below State Bank Advance rate equivalent to 10% per annum

Interest for EPC

Up to 180 days – 3.50% below SBAR i.e. 6.75% p.a. with monthly rests and beyond 180 days – 2.10% below SBAR i. e .8.15% p.a.

Repayable on demand.

OTHER DETAILS:-

Contingent Liabilities

Particulars	31.03.2008 (Rs. In millions )
Estimated amount of Contracts remaining to be executed on capital amount	Nil
Guarantees, Letter of credit executed by Banks, Against the counter guarantees of the company’s Managing Directors	517.661

OTHER DETAILS:-

Subsidiaries

The company has equity Investment in Foreign Subsidiary namely “Fortuna Boiler Engineers GmbH” Germany with 74% share holding. The financial statements and Director’s report and auditors report of the subsidiary company is also appended to the company’s Balance Sheet and profit and Loss Account for the year ended 31.03.2008 in accordance with Section 212 of the companies Act, 1956.

Export Plan

The company has bagged repeated orders from Intesca – Canada, outotech GmbH, KCM SA – Bulgaria, KMT S.A.R.L, Hafner GmbH – Italy and Palladin Energy – Australia. The company is in receipt of valuable enquiries from all other countries apart from Europe and Africa. They already have a strong presence in European and African Markets. The company is making efforts in contacting various agencies for developing its export market operations.

WEBSITE DETAILS:-

Profile

Subject is proud supplier of 2 x 176.5 tph, 61.25 Kg/Sq. cm, 485^oC, Waste Heat Recovery System for S.A. Plant to Oswal Chemicals and Fertilizers Limited, Paradeep, India. 

The company is an ISO 9001 certified company. Subject is certified by ASME and the proud holder of ‘U’ and ‘S’ Stamps.

The company’s products have been exported to Nigeria, Syria, Bangladesh, Indonesia, Iran, UK and Spain.

Subject with a core team of highly skilled professionals is specialized in offering solutions in the field of Waste Heat Recovery / Heat Transfer System, involving "Concept to Commissioning".

Manufacturing

The company’s manufacturing facilities located at Jeedimetla, the industrial township of Hyderabad is fully equipped with modern machinery for manufacture, testing of critical pressure parts.

The company has adequate covered area and houses special purpose machines, CNC tube bending machine, Plate bending machine, submerged arc welding equipment, Radial drilling machine, tube to tube and tube to tube sheet auto welding machine, membrane wall (panels) welding machine, membrane wall (panels) bending machine, strip calibration etc.

The company also has comprehensive in-house testing facilities consisting of U.T, Radiography, Mechanical testing, measuring and calibration, Hydro Pneumatic etc.

These facilities, under one roof enables them to manufacture product of International quality, apart from ensuring timely delivery.

The company employs a wide range of welding techniques like arc, inert gas submerged arc processes and executed by experienced and certified welders as per established welding procedures.

All shop activities are conducted strictly in accordance with Customer / Code requirements. The work is supervised / examined / inspected by experienced and trained Engineers and Inspectors. The field erection / commissioning activities are supervised by, experienced field engineers to achieve desired performance to ensure client’s satisfaction.

Subject has been accredited with ISO 9001 Certification.

Design and Manufacturing

· The quality and reliability of subject products and services are in large measure, the result of dedicated tradition.

· Each design goes through rigorous computer based programs to establish circulation checks, stress analysis, anticipated performance tests before drawings are released for manufacture.

· Subject has rigorous approach to design documentation, maintain and update various manuals containing every aspects of boiler design technology to ensure that the customers get the best technology deal.

· Subject has capability to design boilers to various international codes like ASME, IBR, BSIII3, BS 2790, TRD, etc, apart from meeting the local statutory requirements. 

· Complete designs are computerized to make the system optimal, trouble free, fast and finally ensuring meeting code / customer requirements.

· Regular systems audit and reviews ensure that the process followed at subject are up to date and in accordance with international engineering practice.

Product and Services:-

Subject is specialized in Design, (Thermal and Mechanical), supply, testing and commission of :

· Waste Heat Recovery Steam Generating Systems for S.A. Plants, Nitric Acid, Ammonia, Hydrogen plants, Zinc and lead smelters and metallurgical plants

· Fired Boilers (Coal, Oil, Gas, Bio-Mass and Combination fuels)

· H.R.S.G: Behind Gas Turbines and Gensets

· Flue Gas Boiler for Kilns, Furnaces and Incinerators

· Regenerative Systems / equipment : HP and LP Heaters, Surface Condenser and De-aerators in Turbine Island

· Heat Exchangers and Pressure Vessels

· FIRED HEATERS: in C.S., L.A.S and S.S Material (fabrication and supply only)

· EPC providers for Bio-mass based power plants and Municipal Waste to energy power plants

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.42.90
UK Pound	1	Rs.84.69
Euro	1	Rs.57.21

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/normal.	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