MIRA INFORM REPORT

Report Date :

07.10.2008

IDENTIFICATION DETAILS

Name :	STP LIMITED
Formerly Known As :	SHALIMAR TAR PRODUCTS (1935) LIMITED
Registered Office :	6 Lyons Range, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	07.11.1935
Com. Reg. No.:	21-8423
CIN No.: [Company Identification No.]	U23109WB1935PLC008423
TAN No.: [Tax Deduction & Collection Account No.]	CALS00703D
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Corrosion Protection Products, Waterproofing Products, Epoxy Floorings and Construction Chemicals including Waterproofing Paint, Decorative Paints & Road Marking Paints.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Company’s performance has improved and it has been successful in wiping-off all its previous losses. Trade relations are fair. Business is active. Payments are reported as usually correct as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	6 Lyons Range, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-23280022
Fax No.:	91-33-30280025
E-Mail :	tmlcal@ricmail.com
Website :	http://www.stpltd.com
Corporate Office :	3^rd Floor, Farm Bhawan, 14-15, Nehru Place, New Delhi 110 019, India
Tel. No.:	91-11-46561359
Fax No.:	91-11-46561358
E-Mail :	Sales Enquiries : sales@stpltd.com Company related information : waterproofing@stpltd.com HR/Job related information : hrd@stpltd.com Any other information : contactus@stpltd.com
Factory :	Located at : Jamshedpur – Bihar Chennai – Tamil Nadu Cuncolim - Goa
Branches :	Ø Lucknow – Uttar Pradesh - Tel. No. 91-522-382623 Ø Bangalore – Karnataka - Tel. No.91-80-222 0101 Ø Baroda – Gujarat - Tel. No.91-265-380446 - E-mail: stp.baroda@gnahd.globalnet.vsnl.net.in Ø Chandigarh - Tel. No. 91-172-543597 Ø Cochin, Kerala - Tel. No.91-484-344724 Ø Secunderabad, Andhra Pradesh - Tel. No.91-40-845448

DIRECTORS

Name :	Mr. Gopal Chandra Datta Roy
Designation :	Director
Address :	308, Kailash Tower –I, East Of Kailash, New Delhi – 110 065, India
Date of Birth/Age :	25.02.1945
Date of Appointment :	19.11.2007
PAN No. :	AAAPD2583M
Name :	Mr. Amit Judge
Designation :	Director
Address :	No -65, Panchsheel Park, New Delhi – 110 017, India
Date of Birth/Age :	14.10.1958
Date of Appointment :	29.09.2004
PAN No. :	AACPJ3138Q
Name :	Mr. Srikumar Bhaskaran
Designation :	Managing Director
Address :	13/1, Ballygunge, Circular Road, Kolkata – 700019, West Bengal, India
Date of Birth/Age :	13.04.1960
Date of Appointment :	17.03.2003
Date of Ceasing :	30.09.2005
PAN No. :	ADZPS1719C
Name :	Mr. Salim Mohammad
Designation :	Director
Address :	174 Balco Apartment, Plot No 58, Patparganj, Delhi – 110092, India
Date of Birth/Age :	15.11.1967
Date of Appointment :	23.02.2001
Date of Ceasing :	29.09.2004
PAN No. :	AAECS6339M
Name :	Mr. Krishna Kumar Biyani
Designation :	Director
Address :	13/1, Ballygunge Park Road, Kolkata – 700 019, West Bengal, India
Date of Birth/Age :	01.07.1950
Date of Appointment :	27.09.2005
PAN No. :	AFVPB1894D
Name :	Mr. Krishan Prasad Shrivastav
Designation :	Executive Director
Address :	A 1/43 Safdarsung Enclave, New Delhi – 110029, India
Date of Birth/Age :	02.09.1953
Date of Appointment :	19.06.2003
PAN No. :	ANYPS5602F

KEY EXECUTIVES

Name :	Ms. Neha Kejriwal
Designation :	Company Secretary
Address :	87/88, Jadu Colony, Behala, Kolkata – 700034, West Bengal, India
Date of Birth/Age :	01.01.1979
Date of Appointment :	29.08.2006
Name :	Mr. Jai Prakash Kureja
Designation :	Company Secretary
Address :	D-504, High Flats, Jhulelal Apartments, Road No. 44, Pitampura, Delhi – 110034, India
Date of Birth/Age :	09.04.1961
Date of Appointment :	18.12.2006
Email Id:	jp_kukreja@hotmail.com
Name :	Mr. Atul Mittal
Designation :	Company Secretary
Address :	No 65 Panchsheel Park, New Delhi – 110017, India
Date of Appointment :	29.09.2004
Date of Ceasing :	27.04.2005
PAN No. :	AAECS6339M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 24.03.2008)

Names of Shareholders	No. of Shares
Atma Commerce Private Limited	25000
USC Traders Private Limited	87000
Albatross Investments Private Limited	6000
Mandyali Dealcom Private Limited	35000
Akarsh Printers Limited	80000
Caravan Commercial Company Limited	70000
Lodna Colliery Company (1920) Limited	50000
Woolvest Merchandise Private Limited	50000
Garmohan Tie-Up- Private Limited	60000
Grahams Investment Limited	40000
Chaplet Tracon Private Limited	83000
Laiseez Advisory Private Limited	59000
Mohindra Finvest Private Limited	86000
Albatross Investment Private Limited	69000

(As on 31.03.2007)

Category	Percentage
Public Financial Companies	1.16
Nationalised or other Banks	0.01
Foreign Holding (FIIs, FCs, FFIs, NRIs, OCBs, or Others)	0.97
Bodies corporate	93.41
Other top fifty shareholders (other than listed above)	3.55
Others	0.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Corrosion Protection Products, Waterproofing Products, Epoxy Floorings and Construction Chemicals including Waterproofing Paint, Decorative Paints & Road Marking Paints.

Products :

Item Code No.	591190, 271590, 270819 and 282190
Product Description	Water Proofing Felt, Bitumals Pipe Coating and Construction Additives

• Construction Chemicals
• Bitumen Based Products
• Coal Tar Based Products
• Road Marking Paints and Allied Products

Brand Names :

• “TARFELT”,
• “TERAROOF”
• “THERMOLAY”

Exports :

Products :

Coal tar based pipe protection products

Countries :

• Middle East
• South East Asia

Imports :

Products :

Polymer modified water proofing membranes, thermoplastic road making compound

Countries :

• Italy
• Malaysia
• Saudi Arabia

Terms :

Selling :

Contract and Credit terms

Purchasing :

Contract, L/C and Credit

GENERAL INFORMATION

Customers :	Waterproofing Products Maruti Larsen and Toubro Oil And Natural Gas Corporation National Productivity Council Mes Indian Railways Builders And Developers Ranbaxy Airport Authority Of India Epoxy Flooring Bajaj Motors Ciba Speciality Chemicals D-Link India Limited Dr Reddy’s Lab Escorts Limited Glenmark Pharmaceuticals Limited Jognson and Mathey India Limited LandT Mauritius Microsoft Mrf Limited Nuclear Fuel Complex Omax Auto Limited Reliance Industries Simples Concrete Piles Toyota Lakozy Auto Tvs Suzuki Limited Unichem Laboratories Glen Marc Hyundai Tafe Addison Bituminous Products Delhi Metro Mes Indian Railways Indian Air Force Airports Authority Of India National Highways Authority Of India Exide Batteries Coal Tar Products Psl Indian Oil Ongc Balco Hindalco Welspun Saw Pipes Bedro Shaw International Npcc Iran Petrojet Egypt Man Industries
No. of Employees :	350
Bankers :	· ICICI Bank Limited Address: AJC Bose Road · State Bank of Hyderabad Address: Scope Complex, Lodhi Road, New Delhi – 110003, India · Allahabad Bank, Address: 16, Strand Road, Kolkata · ANZ Grindlays Bank, Address: PLC, H Block, Connaught Place, New Delhi – 110001
Banking Relations :	Satisfactory
Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	12, Bhagat Singh Marg, New Delhi – 110001, India
Memberships :	Confederation of Indian Industry
Collaborators :	Euclid Chemicals International, USA
Holding Company :	Turner Morrison Limited U51109WB1913PLC002404
Subsidiary Company :	SHALIMAR SINGAPORE PTE LIMITED [Ceased w.e.f. 1^st March 2006] Singapore provides a comprehensive range of world class carbon products and chemicals. It’s product range includes precision grades of high-quality Coal Tar Pitches, anthracene oils, creosote oils, naphthalene, phenol etc. catering to a cross-section of industries like Aluminium, Graphite, Carbon Black, steel, metallurgical amongst others. SHALIMAR TANGSHAN CHEMICAL COMPANY LIMITED [Subsidiary of Shalimar Singapore Pte. Limited] [Ceased w.e.f. 1^st March 2006] Shalimar Singapore Pte. Limited has established a wholly owned subsidiary Shalimar Tangshan Chemical Corporation Limited a state-of-the-art manufacturing facility at the Tangshan Seaport Zone, Tangshan, China. The plant is capable of handling bulk quantities of both solid / liquid pitches and other distillates. Its seaport location offers a tremendous logistical advantage. http://www.shalimar.com.in
Fellow Subsidiary Company :	Turner Morrison Land Limited Lodna Colliery Company [1920] Limited Vasundhra Holding Limited Grahams Investment Limited Grahams Trading Company India Limited Tuareg Properties and Security Services Limited Shalimar Singapore Pte. Limited, Singapore Shalimar Tangshan Chemical Company Limited [Ceased w.e.f. 1^st March, 2006]

CAPITAL STRUCTURE

(As on 31.03.2008)

Authorised Capital:

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14192700	Equity Shares	Rs.10/- each	Rs.141.927 Millions

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		141.927	133.927	133.927
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		122.666	80.247	90.853
4] (Accumulated Losses)		0.000	[33.307]	[33.295]
NETWORTH		264.593	180.867	191.485
LOAN FUNDS
1] Secured Loans		32.435	56.796	52.278
2] Unsecured Loans		79.779	116.014	62.569
TOTAL BORROWING		112.214	172.810	114.847
DEFERRED TAX LIABILITIES		0.000	8.928	2.144
TOTAL		376.807	362.605	308.476
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		66.519	93.914	108.387
Capital work-in-progress		2.910	3.809	0.000
INVESTMENT		17.098	17.098	17.098
DEFERREX TAX ASSETS		5.306	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	161.565	180.868	128.943
	Sundry Debtors	127.651	107.586	82.839
	Cash & Bank Balances	32.461	20.704	13.575
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	85.435	82.466	92.901
Total Current Assets		407.112	391.624	318.258
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	95.590	121.615	114.401
	Provisions	26.548	22.225	20.866
Total Current Liabilities		122.138	143.840	135.267
Net Current Assets		284.974	247.784	182.991
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		376.807	362.605	308.476

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		782.181	590.701	475.643
Other Income		9.243	4.589	14.414
Total Income		791.424	595.290	490.057
Profit/(Loss) Before Tax		20.332	7.638	[24.548]
Provision for Taxation		13.141	(7.650)	6.321
Profit/(Loss) After Tax		7.191	15.288	[30.869]
Export Value		64.435	22.153	128.577
Import Value		NA	80.358	21.517
Expenditures :
	Raw Material Consumed	279.304	250.228	352.338
	Purchases made for resale	240.193	196.059	0.000
	Consumption of stores and spares parts	2.161	1.097	0.000
	Increase/(Decrease) in Finished Goods	21.728	[33.199]	0.000
	Salaries, Wages, Bonus, etc.	53.091	40.549	30.525
	Managerial Remuneration	0.000	0.000	4.613
	Payment to Auditors	0.325	0.219	0.246
	Interest	17.713	15.336	24.314
	Insurance Expenses	1.056	0.713	0.777
	Power & Fuel	8.004	5.789	6.061
	Depreciation & Amortization	5.762	7.552	7.373
	Other Expenditure	141.756	103.308	88.358
Total Expenditure		771.093	587.651	514.605

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	0.91	2.57	[6.30]
Net Profit Margin (PBT/Sales)	(%)	2.60	1.29	[5.16]
Return on Total Assets (PBT/Total Assets}	(%)	4.29	1.57	[5.75]
Return on Investment (ROI) (PBT/Networth)		0.08	0.04	[0.13]
Debt Equity Ratio (Total Liability/Networth)		0.89	1.75	1.31
Current Ratio (Current Asset/Current Liability)		3.33	2.72	2.35

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

The company was incorporated on 6^TH November 1935 under name as Shalimar Tar Products (1935) Limited and changed to Present name. It’s Company Registration No. 8423.

Bankers Charges Report as per Registry

Corporation identity number or foreign company registrations number of the company

U23109WB1935PLC008423

Name of the company

STP LIMITED

Address

6 Lyons Range, kolkata – 700 001, west Bengal, India

This Form is for

Modification of Charge

Type of Charges

Book Debts

Movable Property

1^st Charge over current assets and fixed assets

Particular of the charge holder

State Bank of Hyderabad

Scope Complex, Lodhi Road, New Delhi – 110 003, India

Email Id: ghkjain1234@rediffmail.com

Nature or description of the instrument creating charge

Supplementary Hypothecation Agreement for Goods and Assets

Date of the instrument creating charge

06.06.2007

Amount Secure by the charge

Rs.187.000 millions

Brief of the principal terms and conditions and extent and operation of the charge

Rate of interest:

Rate of Interests @ 2.25% PLR Presently 13.75% p.a.

Terms of repayment:

As per agreement

Margin:

As per agreement

Extent and operation of the charge:

Extent and operation -100%

Others:

The above is to secure the following credit facilities:

Particulars	Rs. in millions
CC	33.000
Sublimit PC	13.000
Adhoc CC	10.000
Letter of Credit	20.000
Adhoc LC	10.000
Bank Guarantee	14.000
Bill Discounting	100.000
Total	200.000

Shorts particulars of the Property charged

First charge of by hypothecation of stocks and book debts, movable assets and fixed assets both present and future.

Particulars of present modification

Bank’s charge overall present and future stocks, book debts and other movable fixed assets of the company increased from Rs.77.000 Millions to Rs.187.000 Millions

Name of the company	STP LIMITED
Presented By	Mr. B. Stikumar, Managing Director
1) Date and description of instrument creating the change	Agreement dated 26.10.1989 as modified by 1^st supplemental agreement dated 04.07.1992 made between the company of the first part and ANZ Grindlays Bank of the second part and by 2^nd supplemental agreement dated 02.03.1993 between the company and the consortium bankers comprising ANZ Grindlays Bank, Allahabad Bank, State Bank of Hyderabad and Standard Chartered Bank of the 2^nd Part modified by 3^rd supplemental agreement dated 14.03.1997 between the company of the first part and consortium bankers comprising State Bank of Hyderabad, Allahabad Bank and ANZ Grindlays Bank
2) Amount secured by the charge/amount owing on the securities of charge	the original limit was Rs.79.883 Millions which was increased to Rs.97.000 Millions by 1^st supplemental agreement dated 04.07.1992 and Rs.131.300 Millions by 2^nd supplemental agreement dated 04.07.1992 and Rs.131.300 Millions by 2^nd supplemental agreement dated 02.03.1993 further modified vide agreement dated 14.03.1997 to increase the limit to Rs.230.000 Millions in favour of consortium bankers comprising of State Bank of Hyderabad, ANZ Grindlays Bank and Allahabad Bank which is now being reduced to Rs.160.300 Millions in favour of State Bank of Hyderabad and Allahabad Bank.
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	As per modification of charge vide agreement dated 14.03.1997 already filed on 20.03.1997 and registered on 18.06.1997)
4) Gist of the terms and conditions and extent and operation of the charge.	As per modification of charge vide agreement dated 14.03.1997 already filed on 20.03.1997 and registered on 18.06.1997)
5) Name and Address and description of the person entitled to the charge.	State Bank of Hyderabad Scope Complex, Lodhi Road, New Delhi – 110003, India Allahabad Bank, 16, Strand Road, Kolkata ANZ Grindlays Bank, PLC, H Block, Connaught Place, New Delhi – 110001 All the above said bankers shall collectively be referred to as “SBH Consortium”
6) Date and brief description of instrument modifying the charge	Memorandum of Understanding dated 24.05.2004 between STP Limited and Standard Chartered Bank. The total value of charge favour of the remaining bank i.e. State Bank of Hyderabad an Allahabad Bank is Rs. 160.300 Millions
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.	The company has repaid the total outstanding amount due to Standard Chartered Bank The bank has released first charge on raw material, work in progress, finished goods etc. and its second charge on fixed assets of the company. Total value of borrowing and security has been reduced from Rs.230.000 Millions to Rs.160.300 Millions The consortium of bankers now comprises State Bank of Hyderabad and Allahabad Bank with their share in the working capital facilities remaining the same and they will continue to have the charges accordingly.

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Office Equipments

· Laboratory and

· Motor Car.

WEBSITE DETAILS:

PROFILE:

STP Limited, formerly Shalimar Tar Products Limited, is a member of the Turner Morrison Group.

Though, widely acknowledged as the “First Family of the Waterproofing World”, company is a diversified player in the infrastructure space. It has four business verticals:

· Construction Chemicals

· Bitumen Based Waterproofing and other products

· Coal Tar Based Products

· Road Marking paints and allied products

The company has divided in three divisions i.e. Pipe Protection Services Division, Construction Services Division and Construction Additives Division.

The company has collaboration with Euclid Chemicals International, USA. The company has also joined hands with some of the most respected names in the industry like the Bitumat of Saudi Arabia, Isoltema of Italy, Euclid of USA and DPI of Malaysia.

Factories:

Goa:
Company’s Specialty Chemical Division operates from a ISO 9001 factory at Goa and manufactures a staggering array of products including Admixtures, Grouts, Waterproofing compounds, Epoxy Floorings and Coatings, Floor Hardeners, Tile Adhesives, Sealants and repair compound.

The company has earned wide acclaim for its high performance Epoxy Floorings and Chemical Waterproofing products.

Jamshedpur:
Company’s factory at Jamshedpur in Jharkhand has ISO 9001 and ISO 14001 certification and manufactures Coal Tar Enamel, Coal Tar Pitch, Outerwrap, Coal Tar Tape and Synthetic Primer of various types.

Chennai:
Company’s factory at Ambattur Industrial Area in Chennai manufactures various grades of blown grade Bitumen, Waterproofing membranes and Bitumen based products such as CPRX compounds, Tar Plastic, Tankmastic etc.

The company has developed special competencies in: Corrosion Protection, Waterproofing and Epoxy Floorings.

Company’s customers range from individual house owners to large private and public sector organizations like Railways, MES, ONGC, IOC, Reliance, L and T, Hyundai and many Central and State Government departments.

Company’s leadership in Coal Tar Enamel has earned it a global presence with its Coal Tar Enamel and Outerwrap being exported to many countries.

The company has always remained abreast of the latest innovations by acquiring technology from external sources and through in-house innovations.

The STP Expertise

Company has developed special competencies in: Corrosion Protection Products, Waterproofing Products and Epoxy Floorings.

It has an extremely wide range of Bitumen based, Coal Tar based and Chemical based products for Corrosion Protection of pipelines and structures.

Company’s leadership in Coal Tar Enamel has earned it a global presence with its Coal Tar Enamel and Outerwrap being exported to many countries.

The company has always remained abreast of the latest innovations by acquiring technology from external sources and through in-house innovations.

The company has earned wide acclaim for its high performance Epoxy Floorings and Chemical Waterproofing products.

Their work speaks for itself. Company’s customers range from individual house owners to large private and public sector organizations like ONGC, IOC, Reliance, L and T, Hyundai and many Central and State Government departments.

Take a look at some of the customers who have utilized their expertise for achieving their needs.

· Waterproofing Products

· Epoxy Flooring

· Bituminous Products

· Coal Tar Products

Shalimar Tangshan Chemical Company Limited and Shalimar Singapore Pte. Limited are the sister concerns of STP Limited. Shalimar Singapore Pte. Limited has established a wholly owned subsidiary Shalimar Tangshan Chemical Corporation Limited.

PRESS RELEASE:

News

STP has developed special competencies in: Corrosion Protection Products, Waterproofing Products and Epoxy Floorings.

It has an extremely wide range of Bitumen based, Coal Tar based and Chemical based products for Corrosion Protection of pipelines and structures.

Company’s leadership in Coal Tar Enamel has earned it a global presence with its Coal Tar Enamel and Outerwrap being exported to many countries.

The company has always remained abreast of the latest innovations by acquiring technology from external sources and through in-house innovations.

The company has earned wide acclaim for its high performance Epoxy Floorings and Chemical Waterproofing products.

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.47.46
UK Pound	1	Rs.83.37
Euro	1	Rs.64.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	5
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	5
--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		54

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