MIRA INFORM REPORT

Report Date :

13.04.2011

Note: The registered office of the company has been shifted from 35-J, Laxmi Industrial Estate, Newlink Road, Andheri (W), Mumbai--400049, Maharashtra to the present address w.e.f. 14.07.2010.

IDENTIFICATION DETAILS

Correct Name :	KAYGEE-LOPAREX INDIA PRIVATE LIMITED

Registered Office :	B-28, Bhukhanval Chambers, 6^th Floor, Veera Industrial Estate, Off. Link Road, Andheri (West), Mumbai – 400053, Maharashtra

Country :	India

Financials (as on) :	31.12.2009

Date of Incorporation :	15.01.1997

Com. Reg. No.:	11-105130

CIN No.: [Company Identification No.]	U21010MH1997PTC105130

TAN No.: [Tax Deduction & Collection Account No.]	MUMK06295C

PAN No.: [Permanent Account No.]	AAACK3962A

Legal Form :	Private Limited Liability Company.

Line of Business :	Manufacturer of Release Liner.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 1000000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company with satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Manish Jain
Designation :	Vice President
Contact No. :	91-9920158536
Date :	12.04.2011

LOCATIONS

Registered Office :	B-28, Bhukhanval Chambers, 6^th Floor, Veera Industrial Estate, Off. Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
Tel. No.:	91-22-26733125 to 8
Mobile No.:	91-9920158536 (Mr. Manish Jain )
Fax No.:	91-22-26733928
E-Mail :	info@kaygeeloparex.com pgodha@vsnl.com manishjain@kaygeeloparex.com
Website :	www.kaygeeloparex.com
Area :	800 sq. fts.
Location :	Rented

Corporate Office :	20, Golden Beach Society, Ruia Park, Juhu, Mumbai - 400 049, Maharashtra, India

Factory 1 :	Unit No. 1, Gala No. 1 and 2, Amli Industrial Estate, Amli Village, Silvassa – 396 230, Dadra and Nagar Haveli, India
Area :	3500 Sq. Fts
Location :	Owned

Factory 2 :	Unit 2, Plot No. 29 and 30, Athal Industrial Estate, Athal, Silvassa – 396 230, Dadra and Nagar Haveli, India
Tel No. :	91-260-2632730
Area :	50000 Sq. Fts
Location :	Owned

DIRECTORS

As on 10.06.2010

Name :	Mr. Premchand Godha
Designation :	Director
Address :	170/1702, Oberoi Sky Heights, Lokhandwala Compled, Andheri (West), Mumbai – 400053, Maharashtra, India
E-Mail:	premg@ipca.co.in
Date of Birth/Age :	06.01.1947
Date of Appointment :	18.07.2001

Name :	Mr. Pauls C W Vanpinxteren
Designation :	Director
Address :	Mijlstraat 143, 5281 RL Boxtel – 5281, Netherlands
Date of Birth/Age :	26.09.1965
Date of Appointment :	01.06.2008

Name :	Mr. Michael Apperson
Designation :	Director
Address :	758, The Preserve TRL, Chapel Hill NC, Pennsylvania – 275177688, United State of America
Date of Birth/Age :	20.05.1964
Date of Appointment :	01.06.2008

Name :	Mr. Pranay Premchand Godha
Designation :	Managing Director
Address :	170/1702, Oberoi Sky Heights, Lokhandwala Compled, Andheri (West), Mumbai – 400053, Maharashtra, India
E-Mail:	pranaygodha@kaygeeloparex.com
Date of Birth/Age :	24.03.1972
Date of Appointment :	15.01.1997
Date of Ceasing :	01.08.2007
Other Directorship Held:	Exon Laboratories Private Limited CIN No.: U24211MH1988PTC045776 Nipra Drums Private Limited CIN No.: U28129MH1985PTC035974 Mexin Medicaments Private Limited CIN No.: U24100MH1980PTC022105

KEY EXECUTIVES

Name :	Mr. Manish Jain
Designation :	Vice President
E-Mail:	manishjain@kaygeeloparex.com

SHAREHOLDING PATTERN

As on 10.06.2010

Names of Shareholders		No. of Shares
Prem Chand Godha		63270
Pranay Godha		1510
Gudakesh Investments And Traders Private Limited – India		3250
Paranthapa Investments And Traders Private Limited – India		1250
Kaygee Investments Private Limited - India		213000
Prem Chang Godha Jt Usha Godha		7720
Loparex Holding B V – Nether Land		540000
Pranay Godha Jt Neetu Godha		250000
Prany Godha Jt Neetu Godha		50000
Loparex Holding B V – Nether Land		50000

Total		1180000

As on 10.06.2010

Category		Percentage of Holding
Foreign holdings (foreign institutional investor (s), Foreign companie(s), Foreign financial institution(s), Non-resident Indian(s), or Overseas corporate bodies or Others		50.00
Bodies corporate (not mentioned above)		20.10
Directors or relatives of directors		29.90
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Release Liner.

Products :

Product Description	Release Paper
ITC Code No.	48109900

Product Description	Urea Coated Paper
ITC Code No.	4810.90

Product Description	Release Film
ITC Code No.	39209999

Label stock
Holograms
Feminine Hygiene Products
Self- Adhesive Tapes
Wound –Care Products
Transdermal Transfer Patches
Packaging

Exports :

Products :

Release Liners

Countries :

Middle East
Turkey
Australia

Imports :

Products :

Paper

Countries :

Europe

Terms :

Purchasing :

L/C / Cash / Credit (30 days / 60 days / 90 days)

Selling :

L/C / Cash / Credit (30 days / 60 days / 90 days)

PRODUCTION STATUS (As on 31.12.2009):-

Installed Capacity: 360 M.T per shift per annum (AMLI)

2000 M.T per shift per annum (ATHAL)

Particulars	Units	Actual Production
S. C. / U. C. Paper	Kgs.	3422576.20
Film	Kgs.	345435.20

GENERAL INFORMATION

Customers :

End Users, OEM’s and Others

No. of Employees :

150 (Approximately)

Bankers :

Canara Bank, 38, Nehru Road, Vile Parle (East), Mumbai, Maharashtra, India
Canara Bank, Fort, Mumbai, Maharashtra
Citi Bank
Kotak Mahindra Bank

Facilities:

Secured Loan	As on 31.12.2009 (Rs. in Millions)	As on 31.12.2008 (Rs. in Millions)
Canara Bank Cash Credit	71.523	13.061
Foreign Currency Demand Loan (Short term) Above Facilities: [1 (a),(b)] are secured against hypothecation of raw material, semi finished, finished goods and book debts of the company (Above facilities [1(a),(b) are collaterally secured by entire assets of Plot 29 and 30 at Athal, Silvassa and gala 1 and 2 Amil, Silvassa]	0.000	44.802
Term Loan Against Equitable mortgage of Plot 29 and 30 at Athal, Silvassa and gala 1 and 2 at Amli, Silvassa and hypothecation of plant and machineries at Plot 29 and 30 at Athal, Silvassa and Gala 1 and 2 at Amil, Silvassa. (Above facilities [1(a),(b),(c)] are secured by second charge of entire assets at plot 31 at Athal, Silvassa and Personal guarantee of two directors.)	0.000	8.016
Citi Bank Term Loan Against equitable mortgage of Plot 31 at Athal, silvassa and hypothecation of plant and machineries at plot 31 at Amthal, Silvassa (The above facility is secured by second charge of all the assets at plot 29 and 30 at Athal, Silvassa and Gala 1 and 2 at Amil, Silvassa and personal guarantee of two directors)	89.250	105.000
Kotak Mahindra Bank Vehicle Loan (Against hypothecation of truck)	0.017	0.226
Total	160.790	171.105

Banking Relations :

Auditors :

Name :

Jain and Kothari

Chartered Accountants,

Address :

43, Onlooker Building, Sir P. M. Road, Fort, Mumbai – 400 001, Maharashtra, India

Tel. No.:

91-22-22663342

Fax No.:

91-22-22660267

E- Mail :

jainbl@hotmail.com

Associates/Subsidiaries :

Loparex OY (Finland)
Loparex HK Limited
Loparex (Guangzhou) Paper Production Limited
Nipra Industries Private Limited
Jain Packaging Private Limited
Khanvel Resorts Private Limited

CAPITAL STRUCTURE

As on 31.12.2009

Authorized Capital:

No. of Shares	Type	Value	Amount
1100000	Equity Shares	Rs.100/- each	Rs.110.000 millions
100000	6% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.10.000 millions
	Total		Rs.120.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
1080000	Equity Shares	Rs.100/- each	Rs.108.000 millions
100000	6% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.10.000 millions
	Total		Rs.118.000 millions

Note:

Terms of redemption 50% of aforesaid preference share to be redeem on or before expiry of five year from 07.01.2006 and balance 50% on or before expiry of six year form 07.01.2006

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009 (12 months)	31.12.2008 (12 months)	31.12.2007 (9 months)
SHAREHOLDERS FUNDS
1] Share Capital		118.000	98.000	48.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		141.046	103.969	48.258
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		259.046	201.969	96.258
LOAN FUNDS
1] Secured Loans		160.790	171.105	80.561
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		160.790	171.105	80.561
DEFERRED TAX LIABILITIES		20.558	10.998	3.667

TOTAL		440.394	384.072	180.486

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		248.821	81.653	64.161
Capital work-in-progress		14.140	91.132	7.740

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	84.271	57.872	56.838
	Sundry Debtors	104.652	87.294	74.522
	Cash & Bank Balances	2.264	75.124	4.804
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	89.393	47.430	21.301
Total Current Assets		280.580	267.720	157.465
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	70.270	30.272	36.884
	Other Liabilities	0.000	0.000	0.000
	Provisions	32.877	26.161	11.996
Total Current Liabilities		103.147	56.433	48.880
Net Current Assets		177.433	211.287	108.585

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		440.394	384.072	180.486

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009 (12 months)	31.12.2008 (12 months)	31.12.2007 (9 months)
	SALES
		Income	517.436	394.650	271.700
		Other Income	10.704	1.802	1.967
		TOTAL (A)	528.140	396.452	273.667

Less	EXPENSES
		Material consumed and inventory adjustment	327.378	238.428	179.370
		Manufacturing and other costs	76.713	50.662	35.591
		Personnel cost	34.893	24.084	14.930
		TOTAL (B)	438.984	313.174	229.891

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		89.156	83.278	43.776

Less	FINANCIAL EXPENSES (D)		14.070	18.360	9.651

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		75.086	64.918	34.125

Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.030	9.200	6.684

	PROFIT BEFORE TAX (E-F) (G)		57.056	55.718	27.441

Less	TAX (I)		19.277	14.358	7.321

	PROFIT AFTER TAX (G-I) (J)		37.779	41.360	20.120

Add	DEPRECIATION WRITTEN BACK FOR EARLIER YEARS		NA	15.052	NA

	PROFIT AFTER TAX AFTER EXCEPTIONAL ITEMS		37.779	56.412	20.120

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		93.969	38.258	16.673

Less	APPROPRIATIONS
		Preference share dividend	0.600	0.600	0.450
		Tax on Dividend	0.101	0.101	0.076
		Tax on Dividend (Earlier Year)	0.000	0.000	0.009
	BALANCE CARRIED TO THE B/S		131.047	93.969	36.258

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	210.702	137.066	87.117
		Commission Earnings	0.232	0.000	0.000
	TOTAL EARNINGS		210.934	137.066	87.117

	IMPORTS
		Raw Materials	2230.864	169.343	117.879
		Consumables (Purchase)	0.640	0.114	0.000
		Coating Machine	1.598	0.000	1.566
		Testing Machine	0.000	1.013	0.000
		Tools and Equipment	0.000	0.030	0.105
		Repairs – Machine	0.138	0.000	0.000
		Sliting Machine	24.325	0.029	0.000
	TOTAL IMPORTS		2257.565	170.529	119.550

	Earnings Per Share (Rs.)		40.66	64.62	51.54

Particulars

31.12.2010

Sales Turnover

700.000

Expected Sales (2010-2011) : Rs.1000.000 millions.

KEY RATIOS

PARTICULARS		31.12.2009 (12 months)	31.12.2008 (12 months)	31.12.2007 (9 months)
PAT / Total Income	(%)	7.15	10.43	7.35

Net Profit Margin (PBT/Sales)	(%)	11.03	14.05	10.02

Return on Total Assets (PBT/Total Assets}	(%)	10.78	15.95	12.38

Return on Investment (ROI) (PBT/Networth)		0.22	0.28	0.29

Debt Equity Ratio (Total Liability/Networth)		1.02	1.13	1.34

Current Ratio (Current Asset/Current Liability)		2.72	4.74	3.22

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.12.2009 Rs. in millions (12 months)	31.12.2008 Rs. in millions (12 months)	31.12.2007 Rs. in millions (9 months)
Sundry Creditors
For Goods	53.701	20.255
For Capital Goods	4.648	0.000	36.884
For Expenses	8.470	5.705
For Others	3.451	4.312
Total	70.270	30.272	36.884

Management Discussion and Analysis

Sales

Net sales have been increased by 33.22% and profit before depreciation, interest and Tax (PBIDT) has increased by 7.05% as compared to previous year. During the year, the Raw material cost has increased compare to last year.

Project Status

During the financial year company has completed building work in all repect and New Coating Machine has already been installed and started running in July 2009.

Recommendation of Performance Share Dividend

Directors recommend a dividend at the rate of 6% out of current year profit on 100000 6% Redeemable cumulative Preference Shares of Rs.100/- each absorbing Rs.0.701 millions (Including dividend tax).

Directors do not recommend any dividend on equity shares to conserve resources of the company.

Agreement with Lohjan Paperi OY: -

The company has entered into a joint venture and agreed 50% equity participation with Lohjan Paperi OY (known as Loparex OY) Lohja, Finland.

Athal Project: -

Regular production has started in the month of March 2002.

CONTINGENT LIABILITY

Rs. In Millions

	31.12.2009
Bills Discounted with Bank	14.696
Since Realised	14.696
TOTAL	29.392

Form 8

Name of the company	KAYGEE LOPAREX INDIA PRIVATE LIMITED
Presented By	Canara Bank and Kaygee Laporex Private Limited
1) Date and description of instrument creating the change	Dated 25.06.1997 Cash Credit Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs.3.240 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	a) a) The whole of the Borrower’s present and future stocks of Raw Materials Goods in process of manufacture and all articles such as Silicone Coated paper together with all store components and spares which now belong to or may hereafter from time to time, during the continuance of this security, belong to the Borrower and which are or small or may be brought into stored or be in or upon or about the borrower’s factory, godown and / or other premises at Gala No. 1 and at Amli Industrial Estate, Phase II, Amli Village, Silvassa, Dadra Nagar Haveli – 396 230 or wherever else the same may be situated stored or lying or being, including any such raw materials, articles or goods, stores, spares and components or other similar movable property in course of transit or delivery. b) b) All of the Borrower’s present and future book debts, outstanding monies, receivables, claims, Bills, rights to or in movable properties and movable assets and movable assets and which are now due owing or payable or belonging to the Borrower in the course of its business.
4) Gist of the terms and conditions and extent and operation of the charge.	i) i) The Borrower shall pay interest on the outstanding in the cash credit account at 6.5% per annum over and above RBI rate with a minimum of 17.5% per annum compounded quarterly on the daily debit balance, provided the interest payable shall be subject to the charges in the interest rates made by RBI from time to time and intimated by the Bank to the Borrower. ii) ii) The Borrower will at all times maintain a sufficient quantity of the said debts and assets to provide the necessary margin of security (as specified in sanction) and as may be required by the bank from time to time. iii) iii) This security shall be a continuing security for the balance from time to time due to the Bank.
5) Name and Address and description of the person entitled to the charge.	Canara Bank 67, Dhiraj Building, M G Road, Kandivali (West), Mumbai – 400 057, Maharashtra, India (Now shifted to Canara Bank, Vile Parle (East) Branch)
6) Date and brief description of instrument modifying the charge	Dated 19.01.2006 a) a) Supplemental Collateral Security Agreement and b) b) Supplemental Agreement (Collectively constitute a single charge for Rs. 108.500 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.	a) Past Modifications: The original charge created on 25.06.1997 Rs. 3.240 millions was modified as under: i) On 25.06.1997 thereby increasing the charge Rs. 3.440 millions ii) On 26.04.1999 thereby reducing the charge upto Rs. 2.200 millions iii) On 28.04.1999 thereby increasing the charge upto Rs. 3.250 millions iv) On 29.09.1999 thereby increasing the charge upto Rs. 4.200 millions v) On 06.06.2000 thereby increasing the aggregating charge limit upto Rs. 11.200 millions vi) On 11.04.2001 thereby increasing charge upto Rs. 13.700 millions vii) On 28.01.2002 for shifting/ transferring of all borrowal / credit facilities from Kandivali (West) Branch to Vile Parle (East) Branch of Canara Bank viii) On 06.02.2002 thereby increasing charge upto Rs. 16.500 millions ix) On 29.09.2002 thereby increasing charge upto Rs. 21.500 millions x) On 11.02.2003 thereby increasing the charge upto Rs. 29.400 millions xi) On 22.09.2003 thereby increasing the charge upto Rs. 56.900 millions xii) On 01.03.2004 thereby increasing charge upto Rs. 62.900 millions xiii)On 09.03.2004 thereby increasing charge upto Rs. 80.400 millions xiv) On 20.11.2004 thereby increasing charge upto Rs. 101.500 millions (Last Modification registered on 23.12.2004 under Doc. No. 76) b) Present Modification: The bank having at the request of the Borrower has increased/ agree to increase the Limit from Rs. 41.500 millions to Rs. 48.50.0 millions against hypothecation of all the present and future for stock and book debts and machineries and fixed assets of the Borrower, Plant and machinery of the Borrower has been hypothecated by way of collateral sector not only for the earlier limits of Rs. 101.500 millions but also for the increased OCC limit to Rs. 7.000 millions now sanctioned by the Bank Interest @ 3% over BPLR rate with a minimum of 10.755 per annum. Compounded monthly. Thus the charge stands secured at Rs. 108.500 millions.

Corporate identity number (CIN) Foreign company registration number	U2101MH1997PTC105130
Name of the Company	KAYGEE LOPAREX INDIA PRIVATE LIMITED
Address	B-28, Bhukhanval Chambers, 6ht Floor, Veera Industrial Estate, Off. Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India
This form is for	Modification of charge
Type of Charge	Immovable Property
Particulars of the charge holder	Canara Bank 67, Dhiraj Building, M G Road, Kandivali (West), Mumbai – 400 057, Maharashtra, India (Now shifted to Canara Bank, Vile Parle (East) Branch) E-Mail: viaxman@vsnl.com
Nature or description of the instrument(s) creating or modifying the charge	Letter Evidencing Deposit of Title Deeds.
Date of the instrument creating or modifying the charge	23.06.2010
Amount secured by the charge	Rs. 181.500 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	(a) Rate of Interest: Interest as may be stipulated by Bank from time to time. (b) Terms of repayment: On Demand (c) Margin: As may be stipulated by the Bank from time to time. (d) Extent and operation of the charge: Company accorded & gave oral consent to the Bank to continue to hold & retain the title deeds (by way of Constructive delivery) with Canara Bank and Canara Bank acting for itself as well as an agent of Citibank N.A., in respect of its immovable properties as stated under Item No 15 as security for repayment of Credit facility of Rs.196.500 millions granted by Canara Bank to the Company, with interest, liquidated damages, costs, charges and expenses and all other money whatsoever due and payable thereon. (e) Others: The charge created on Company's immovable property (mentioned in Schedule B and B1 attached to the Agreement) shall rank by way of First Charge in favour or Canara Bank and by way of Second Charge In favour Citibank NA and Immovable property (mentioned in Schedule B2 attached to the Agreement) shall rank by way of First Charge in favour of Citibank N.A and by way of Second charge in favour of Canara Bank for their facilities of Rs. 105.000 millions and Rs.196.500 millions respectively.
Short particulars of the property charged (including location of the property)	Unit Bearing No.1 on the ground floor of the building Known as Amli Industrial Estate No.2 and Unit No.2 on the ground floor of the building Plot of Land bearing No.29 measuring 23191.87 sq.mtrs. Plot No.30 measuring 2256.87 sq. mtrs of S.No.144/1/2 situated at Athal, Dadra and Nagar Haveli. Survey No.144/1/2/31, admg. 4595.84 sq.mtrs, Village Athal, Union Territory of Dadra and Nagar Haveli, Silvassa.
Particular of the present modification	The mortgage / charge shall now stand secured upto Rs.196.500 millions, in favour of Canara Bank against security of immovable property (mentioned in Schedule B and B1 attached to the Agreement) shall rank by way of First Charge in favour or Canara Bank and by way of Second Charge In favour Citibank NA and Immovable property (mentioned in Schedule B2 attached to the Agreement) shall rank by way of First Charge in favour of Citibank N.A and by way of Second charge in favour of Canara Bank.

Trade References:

Johnson an Johnson
Procter and Gamble
Holo Flex
UPM Kymmene Corporation, Finland

Fixed assets

· Plant and Machinery

· Office and Other Equipments

· Furniture and Fixtures

· Computer

· Vehicles

· Land

· Building/Premises

· Residential Flat

· Intangible asset

· Cycle

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.44.20
UK Pound	1	Rs.72.26
Euro	1	Rs.63.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		45

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

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