MIRA INFORM REPORT

Report Date :

24.10.2008

IDENTIFICATION DETAILS

Name :	FOURRTS INDIA LABORATORIES PRIVATE LIMITED
Registered Office :	Plot No. 1 and 2, Fourrts Avenue, Annai Indira Nagar, Okkiyam, Thoraipakkam, Chennai – 600 096, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	31.03.1979
Com. Reg. No.:	18-7782
CIN No.: [Company Identification No.]	U85185TN1979PTC007782
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing, Exporting, Importing and Marketing of Pharmaceuticals in the form of tablets, capsules, liquids, powder, 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 :	USD1000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is satisfactory. Payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long run.

LOCATIONS

Registered Office/ Corporate office :	Plot No. 1 and 2, Fourrts Avenue, Annai Indira Nagar, Okkiyam, Thoraipakkam, Chennai – 600 096, Tamil Nadu, India
Tel. No.:	91-44-24964939 (10 lines)
Fax No.:	91-44-24964799
E-Mail :	accounts@fourrts.com fourrts@vsnl.com admin@fourrts.com
Website :	www.fourrts.com
Head Office :	9-A, 5^th Street, Bakthavatsalam Nagar, Adyar, Chennai – 600 020, Tamilnadu, India
Tel. No.:	91-44-24914573 / 24901110 / 24421930 / 24423679 / 24915632 / 24418047 / 24404638
Fax No.:	91-44-24915607
Administrative Office :	11-C, Jeevanandam Road, Laxmipuram, Thiruvanmiyur – 600 041, Tamilnadu, India
Tel. No.:	91-44-24915222
Fax No.:	91-44-24915607
E-Mail :	fourrts@vsnl.com
Website :	http://www.fourrts.com
Factory 1 :	Plot No. 1, Fourrst Avenue, Annai Indira Nagar, Okkiam, Thoraipakkam, Chennai – 600 069, Tamilnadu, India
Tel. No.:	91-44-24964939
Fax No.:	91-44-24964799
E-Mail :	fourrts@vsnl.com
Factory 2 :	7 Vandalur Road, Kelambakkam, Chinglepet – 603 103, Tamilnadu, India
Tel. No.:	91-44-27474325 (6 lines)
Fax No.:	91-44-27475083
E-Mail :	fourrts@vsnl.com fourrts@plantfourrts.com
Branches :	Located at :- · 9-A, 5^th Street, Bakthavatsalam Nagar, Adyar, Chennai – 600 020, Tamilnadu, India · 49, Kamaraj Avenue, Adyar, Chennai – 600 020, Tamilnadu, India Tel. 91-44-24450865

DIRECTORS

Name:	Mr. S. V. Veerramani
Designation :	Chairman and managing Director
Address :	New No. 172 Old No. (49A), Justice Ramaswamy Road, Kamaraj Avenue 11 Street, Adyar, Chennai – 600 020, Tamil Nadu, India
Date of Birth:	26.08.1949
Date of Appointment :	10.10.1979
Name :	Mrs. Radha Veeramani
Designation :	Director
Address :	New No 172 Old No. (49A), Justice Ramaswamy Road, Kamaraj Avenue 11 Street, Adyar, Chennai – 600 020, Tamil Nadu, India
Date of Birth:	29.11.1954
Date of Appointment :	30.10.1991

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (As on 27.09.2007)	No. of Shares
Mrs. Lalitha Guru	675
Ms. Aishwarya	1225
Mr. K S Ramachandran	300
Mr. K S Narayanswamy	300
Mrs. C H Kamalam	1900
Mr. S P Gopalakrishnan	650
Mrs. Parvathi Ramachandran	600
Mrs. Rajan Vishwanathan	21050
Mr. S P Ramachandran	600
Mr. P S Ramachandran	4000
Mrs. Lalitha Gopalakrishnan	550
Mr. Ashwin	1600
Mr. R Rajagopal	75
Mrs. Uma Venkatesh	3000
Mr. S V Veerramani	161960
Mrs. K S Kamala	2000
Ms. V Gayathri	38705
Mrs. K N Rajammal	700
Ms. V Nithya	34880
Mrs. Radha Veirramani	179330
Mr. N Mahadevan	1900
Mrs. M Radha	250
Mrs. P Kamla	650
Mr. L N Paramasivan	350
Mrs. Nalina Seshadri	2000
Mrs. Vidya Hariharan	2400
Mr. R Seshadri	2000
Mr. K S Saraswathi	750
Mrs. Suguna Ravi	2250
Mr. S S Radhakrishnan	2000
Mr. S V Subramanian	6000
Ms. Geetha Narayanan	2000

List of Allottees:

Names of Allottees	No. of Shares
(As on 31.03.2008)
Mrs. Radha Veirramani	36500
Mr. S V Veerramani	36000
Mrs. Rajam Vishwanathan	3100

(As on 27.09.2007)
Mrs. Radha Veirramani	4500
Mr. S V Veerramani	30000
(As on 31.07.2006)
Mrs. S V Veerramani	17000
Mrs. Radha Veirramani	15000
Mrs. Rajam Vishwanathan	5000
Mr. N Mahadevan	1000
Mr. C H Kamalam	1000

Equity Share Breakup (Percentage of Total Equity):-

Category (As on 31.03.2007)	Percentage
Directors or relative of directors	99.00
Other top fifty (50) shareholders	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing, Exporting, Importing and Marketing of Pharmaceuticals in the form of tablets, capsules, liquids, powder, etc.
Products :	Ø Fourrts B Vitamin Ø B Complex Tablet Ø Redin Plus Haematinic Capsules Ø Redin PN Postnatal Tonic Ø Foliden Folic Acid Capsules Ø Fertibex Ø Fourts B Ø Gilfil M Ø Gliclan M Ø Seltoc AC in the diabetology segments Ø 10 products in the gynecology area Ø Four in ophthalmology Ø Eight In the general category

PRODUCTION STATUS (As on 31.03.2004):-

Particulars	Unit	Actual Production
Tablets	Millions	568.507
Capsules	Millions	76.044
Liquids	Litres	46873.083
Ointments	Kgs.	4309.796

GENERAL INFORMATION

No. of Employees :

Around 400

Bankers :

State Bank of India, Commercial Branch, G S T Road, Guindy, Chennai – 600 032, Tamilnadu, India

Facilities :

Secured loans	31.03.2007 (Rs. in Millions)
Cash Credit and packing Credit (Secured on Stock of raw Materials and Finished goods)	205.321
Other Loans (On Hypothecation of Fixed assets)
State bank of India	45.498
Finance Companies	6.206
Loan received from Government of Tamil Nadu under interest Free Sales Tax Deferral Scheme	4.957
Total	261.982
Unsecured loans	31.03.2007 (Rs. in Millions)
Fixed deposit	2.840
Interest accrued on unsecured loans	0.025
Total	2.865

Banking Relations :

Satisfactory

Auditors :

Name :

Vijayaraghavan and Associates

Chartered Accountants

Address :

51, Giri Road, T. Nagar, Chennai – 600 017, Tamilnadu, India

Associates/Subsidiaries :

NIL

CAPITAL STRUCTURE

(As on 30.09.2007):-

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 100/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
476650	Equity Shares	Rs. 100/- each	Rs.47.665 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		47.665	37.715	31.775
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		133.834	109.404	89.456
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		181.499	147.119	121.231
LOAN FUNDS
1] Secured Loans		261.981	183.786	132.083
2] Unsecured Loans		2.865	3.306	4.113
TOTAL BORROWING		264.846	187.092	136.196
DEFERRED TAX LIABILITIES		6.503	5.682	3.325
TOTAL		452.848	339.893	260.752
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		166.891	115.435	89.068
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.003	0.003	0.003
DEFERREX TAX ASSETS		2.706	2.342	1.352
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	122.510	93.610	129.376
	Sundry Debtors	231.382	219.319	99.378
	Cash & Bank Balances	107.639	66.062	51.888
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	78.030	54.871	50.227
Total Current Assets		539.561	433.862	330.869
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	188.669	159.784	160.540
	Provisions	67.644	51.965	0.000
Total Current Liabilities		256.313	211.749	160.540
Net Current Assets		283.248	222.113	170.329
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		452.848	339.893	260.752

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		1006.338	714.447
Other Income		0.000	0.000
Total Income		1006.338	714.447
Profit/(Loss) Before Tax		47.698	21.506
Provision for Taxation		19.808	0.000
Profit/(Loss) After Tax		27.890	21.506
Expenditures :
	Manufacturing Expenses	NA	682.718
	Depreciation & Amortization	13.558	10.223
	Other Expenditure	945.082	NA
Total Expenditure		958.640	692.941

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	NA	2.78	3.01
Net Profit Margin (PBT/Sales)	(%)	NA	4.74	3.01
Return on Total Assets (PBT/Total Assets}	(%)	NA	8.65	5.10
Return on Investment (ROI) (PBT/Networth)		NA	0.32	0.18
Debt Equity Ratio (Total Liability/Networth)		2.87	2.71	2.45
Current Ratio (Current Asset/Current Liability)		2.11	2.05	2.06

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 31^st March, 1979 at Thiruvanmiyur in Tamilnadu having Company Registration Number 18-7782.

FIXED ASSETS:-

· Land

· Factory Building

· Office Building

· Storage Tank

· Plant and Machinery

· Generator

· Lab Equipment

· Pollution Control Equipment

· Electrical Installation

· Air Conditioners

· Furnitures and Fitting

· Office Equipments

· Car and Vehicles

· Building

· Machinery

FORM 8:-

Corporate identity number of the company	U85185TN1979PTC007782
Name of the company	FOURRTS INDIA LABORATORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 1 and 2, Fourrts Avenue, Annai Indira Nagar, Okkiyam, Thoraipakkam, Chennai – 600 096, Tamil Nadu, India
This form is for	Modification of charge
Type of charge	· Immovable Property · Book Debts · Movable Property · Others
Particular of charge holder	State Bank of India, Commercial Branch, 1/65A, G S T Road, Guindy, Chennai – 600 032, Tamil Nadu, India E-Mail: sbicomguindy@vsnl.net
Nature of instrument creating charge	· Agreement of hypothecation of goods and assets · Letter regarding the grant of individual limits within the overall limit · Extension of equitable mortgage
Date of instrument Creating the charge	13.08.2008
Amount secured by the charge	Rs. 781.900 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : As per Agreement C.5 Terms of Repayment : The term Loan is to repaid in 78 monthly installments Margin : Raw Material : 25% Stock in process : 25% Finished goods : 25% EC and BG : 15% Book Debts / Receivables : 25% Cover period : 60 days Term Loan : 27.40% Extent and Operation of the charge : As per Agreement
Short Particulars of the property charged	Hypothecation of goods and extension of equitable mortgage
Particulars of the present modification	The various credit facilities enjoyed by the company now has been enhanced to Rs. 781.900 millions Hypothecation of goods and extension of equitable mortgage.

Name of the company

FOURRTS INDIA LABORATORIES PRIVATE LIMITED

Presented By

State bank of India, Commercial Branch, Guindy, Chennai 0 600 032, Tamil Nadu, India

1) Date and description of instrument creating the change

Dated 19.02.1982

General agreement for the grant of small Industrial Advances and hypothecation of movables, book debts and other assets present and future for Rs. 0.650 million

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

Rs. 0.650 million

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

Whole of the borrower stock of raw materials, semi – finished and finished goods and products manufactured and stores in borrowers Godown present and future, borrowers book debts of the company.

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

Repayable on Demand

Interest @ 0.50% below SBAR subject to minimum of 16% p.a

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

State bank of India, Guindy Branch, Chennai – 600 032

6) Date and brief description of instrument modifying the charge

Dated 10.01.2005

Supplemental general agreement for the grant of small Industrial Advances and hypothecation of goods, book Debts and other assets (working Capital finance) Re: Hypothecation of goods book debts, Movables and other assets in Ancillary Agreement

Agreement for the grant of small Industrial Advances (Working Capital Finance) Re: hypothecation of goods, Book Debts, Movables and Others Assets in Ancilliary Agreement No. 1 (2 Nos.)

Agreement for the grant of small industrial Advance (Working Capital Finance) Pledge of goods Movables and Other assets in Ancillary Agreement No. 2.

Agreement for the grant of small Industrial Advances (Working Capital Finance) Advances against receivables and bills in the course of collection in Ancillary Agreement No. 3 (2 Nos.)

Agreement for the grant of small Industrial Advances (Working Capital Finance) Advances Against General Hypothecation in Ancillary Agreement No. 4

Agreement for the Grant of small Industrial Advances (Working Capital ) Ref : Letter of Credit, Guarantees and indemnities in Ancillary Agreement No. 6

General Agreement for the grant of medium Term Advances to small Scale Industries and Hypothecation of movables, Book Debts, and other assets.

Ancillary Agreement for Medium Term Loan against pledge Movable Machineries in Ancillary Agreement “A”

Ancillary Agreement for medium Term Loan agreeing to Mortgage Immovable in Ancillary Agreement “B”

Extension of equitable mortgage by way of deposit of title Deeds (2 Nos.)

All dated 10.01.2005 and relates to one and the same charge.

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 Credit facility extended to the company has now been enhanced from 111.500 millions to Rs. 214.800 millions comprising of:-

Nature of facility	Existing	Enhanced
	(Rs. in millions)
Cash credit (Hypothecation)	0.750	0.800
Export packing Credit	---	0.300
Sub limit
Export packing Credit (Sub limit under cash credit (Hypothecation)	[0.175]	----
FBN (Non LC (Sub limit under EPC)	[0.100]	[0.150]
DDP (Cheque	0.015	---
DDP (Cheque (Sub Limit under cash credit hypothecation	---	[0.025]
Stand by line of credit	0.100	---
Stand by limit	---	0.200
Term Loan (New)	---	0.348
Letter of credit	0.100	0.300
Bank guarantee	0.150	0.200
Total	1.115	2.148

Term Loan was already created as Separate Charge

Securities

· First charge on the Entire Current assets, viz; Raw Material, book debts, Stock in process, Semi – finished goods, finished goods, Receivables, other current assets, bills in the course of collection, Merchandise under letter of credit and counter guarantee of the company

· Hypothecation of Plant and machinery

· First charge on fixed assets of the company and assets acquired out of Term Loan.

· Extension of Equitable mortgage of company immovable properties

· Land and Factory Building at Padur Village, Chingleput District, 2 Acres 46 Cents Comprised in S. no. 595/1A, at No. 46, padur Village, Cheingleput District (More Fully Described in the letter Evidencing Title Deed)

· All that piece and parcel of vacant land at Vandaloor Road, S. No. 595/2A and 2AI at Padur Village, Kelambakkam, Measuring 1.27 Acres Area, (Old S .no. 595/2A, New S. No. 595/2AI) More Fully described in the letter Evidencing Title deed)

· Earlier securities given by the company shall continue to cover the enhanced limit of Rs. 214.800 millions

Rate of interest, Margin and other term and conditions as per the agreement

All other terms and conditions remain the same.

OTHER DETAILS:-

Milestones

1986 - Launched Sucrafil (Sucralfate) a safe and effective antiulcer drug.

1991 - Introduced Fourts B, the first Selenium containing nutritional Product.

1994 - Launched Selltoc AC the first Antioxidant formula based on the latest findings worldwide.

Its’ products range includes:-

· Anti Amoebics

· Neutraceuticals

· Diabetology

· Gastro Enterology

· Opthalmology

Awards and Recognition

Tireless, efficient and dedicated quality conscious work put forth by all Fourrts Indians, the company was accorded the GMP Certificate, certifying that all its activities are in accordance with WHO standards. Besides, the company has bagged the following awards.

WEBSITE DETAILS:-

Company Profile

The company with its impressive standing in the Pharma Industry for the last two decades is committed to excellence in health care.

The company is dedicated to achieve this goal by making available to the medical profession a range of innovative, value added, evidence backed products. The company’s products have found immediate acceptance by practising Doctors both in India and abroad. The company is backed by a dedicated team of over 400 Fourrts Indians, who are well trained in every aspect of Pharmaceutical manufacturing and marketing. The company has also built up a strong distribution network to reach the unseen customers-the ailing patients even in the remotest part of the country.

The company has also established its presence in the international markets with a wide array of capsules, tablets, oral liquids, ointments and creams.

Subject is one among the leading pharmaceutical companies in Chennai, will soon launch about six new drugs in the market.

Over the past two decades, Subject has been able to nurture its growth in Pharmaceutical Industry on a sound footing by developing an excellent product range supported by an efficient Marketing Team and backed up by reliable and well structured distribution infrastructure. Subject is now poised to achieve its Corporate goal of putting the unmistakable "Fourrts" stamp in each and every state of India.

Subject can be rightly called "the pioneers of selenium and antioxidant Therapy in India", as they were the first Pharmaceutical Company to introduce these products in the Indian market. They were also the first to introduce anti-ulcer drug Sucralfate, in India.

Apart from Indian market, Subject is also exporting its products to South Africa, South Asian, South American and European Countries. Subject is now looking forward to Collaborations, Marketing Tie-ups and Licensing arrangement with Overseas Organisations to expand their base and strengthen the product line.

Subject started in 1977, has been growing at a rate of 40% to 50% in the last two years, and in order to cater to the demand, the company was planning to set up more plants within a few years. One plant would be in advanced facility conforming to USFDA standards, said, Veeramani.

Corporate Profile

Good health is the primary goal of any individual, society of the nation as a whole. Subject as a company has an unquenched thirst for Pharmaceutical excellence. One of the most important objectives of the Pharmaceutical industry is to lend top quality health care. Subject with its impressive standing in the Pharma Industry for the last two decades is committed to excellence in health care.

Subject is dedicated to achieve this goal by making available to the medical profession a range of innovative, value added, evidence backed products. Subject products have found immediate acceptance by practising Doctors both in India and abroad. The company is backed by a dedicated team of over 400 Fourrts Indians, who are well trained in every aspect of Pharmaceutical manufacturing and marketing. Subject has also built up a strong distribution network to reach the unseen customers-the ailing patients even in the remotest part of the country.

Production

Their Modern factory is situated in a pollution free area about 25 kms from the heart of Chennai City in Southern part of India. Incidentally, their factory is on the way to Mahabalipuram - a Beach Resort with Historic Cave Temples frequented by people from all over the world. They have a well designed factory in which they have all the facilities to manufacture coated tablets, dispersible tablets, capsules, oral liquid/suspensions and topical creams. They have excellent Production capacity to meet bulk Export Commitments consistently and their factory is rated as one of the BEST factories in South India.

Subject is constantly upgrading machineries to make the unit fully mechanised and in line with latest technological developments.

Product Development

Every new product before it reaches the market, undergoes a number or rigorous tests both mandatory as well as in-house procedures. These include tight raw material sourcing, storage under specified conditions, technical feasibility of manufacturing, on line checks, critical analysis of raw materials and excipients used, stability studies, studies on packing material etc.

The product Development Wing is manned by people who are Specialists in manufacturing and analytical procedures. They are constantly involved in developing new formulations and improving the quality standards of existing formulations to meet the needs of the customers better. This has resulted in the development of many prestigious and unique formulations, some of which are for the first time in the country.

International Division

With its strong accent on ethics, Quality and long-term vision, Subject has been gaining the confidence of customers worldwide. So far, Subject has exported its products to European, South East Asian and African countries. Subject' products are registered in several countries. Their quest for wider international presence continues, with the aim of becoming a major player worldwide. With the Credentials at background, Subject is now seeking for Licensing arrangements, Marketing tie-ups and Collaborations with overseas organization towards establishment of long-term associations.

Finance

The company has been generating profits since inception and a major portion of its profits are being ploughed back every year apart from infusion of fresh capital every year by way of promoters’ equity.

The company has grown from Rs.1.900 millions (1979-80) to Rs.1006.400 millions in the year 2005-06 and its experience in expanding its activities in both domestic and export market has met with great success.

Their bankers are State Bank of India and proudly confirm the fact that not even a single cheque has been bounced. The company has a good financial discipline and its capital base is sound. All the financial parameters are well within norms and the company is firm in meeting the commitments in time.

The company enjoy good reputation in the market and buys most of the materials direct from manufacturers who are well established in the field so as to take care of factors like quality, price and availability.

Systems

The company has the best of infrastructure in IT. With the wireless leaseline from Sify, the speed is well directed. The plant and the corporate office is also connected through wireless lease line.

The company is poised for implementing ERP across different functions within the organization and all their consignee agents who are situated all over India will be connected to Corporate Office for prompt and efficient reporting to the customers.

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.49.79
UK Pound	1	Rs.81.27
Euro	1	Rs.63.91

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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	NO
--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

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