MIRA INFORM REPORT

Report Date :

16.04.2011

Note:

Correct name of the company is “POGGEN-AMP NAGARSHETH POWERTRONICS PRIVATE LIMITED”.

IDENTIFICATION DETAILS

Name :	POGGEN-AMP NAGARSHETH POWERTRONICS PRIVATE LIMITED (w.e.f. 17.07.2009)

Formerly Known As :	POGGEN-AMP NAGARSHETH POWERTROMICS LIMITED POGGEN-AMP NAGARSHETH POWERTROMICS PRIVATE LIMITED (w.e.f. 08.01.2008)

Registered Office :	C-1/B 4402, GIDC Estate, Phase IV, Vatva, Ahmedabad – 382 445, Gujarat

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	08.06.1992

Com. Reg. No.:	04-017786

CIN No.: [Company Identification No.]	U72200GJ1992PLC017786

TAN No.: [Tax Deduction & Collection Account No.]	AHMP00073D AHMP02775D

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of Motor Laminations and Transformer Laminations.

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 875000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having 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 normal for 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. Parshva Nagarsheth
Designation :	Director
Contact No.:	91-9925100511
Date :	15.04.2011

LOCATIONS

Registered Office/ Factory 1 :	C-1/B 4402, GIDC Estate, Phase IV, Vatva, Ahmedabad – 382 445, Gujarat, India
Tel. No.:	91-79-25842908 / 25842909
Mobile No.:	91-9925100511 (Mr. Parshva Nagarsheth)
Fax No.:	91-79-25842808 / 25840445
E-Mail :	info@poggen.com parshv@nagarsheth@poggen.com
Website :	www.poggen.com
Area :	5000 sq ft
Location :	Owned

Factory 2 :	Survey No.121/122, Kheda-Dholaka Highway, Village-Vavad, District-Kheda, India

DIRECTORS

As on 25.08.2010

Name :	Mr. Gauttam Nipinbhai Nagarsheth
Designation :	Managing Director
Address :	462, “Kaivaal” Satyagrah Chhavni Lane 20, Satelite Road, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	29.08.1956
Date of Appointment :	08.06.1992
Din No.:	01014853

Name :	Mr. Gaurang Nipinbhai Nagarsheth
Designation :	Director
Address :	462, “Kaivaal” Satyagrah Chhavni Lane 20, Satelite Road, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	16.11.1958
Date of Appointment :	08.06.1992
Din No.:	01136324

Name :	Mr. Parshva G. Nagarsheth
Designation :	Director
Address :	462, “Kaivaal” Satyagrah Chhavni Lane 20, Satelite Road, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	12.02.1983
Date of Appointment :	25.05.2004
Din No.:	01136219

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 06.08.2009

Names of Shareholders		No. of Shares
Nagarsheth N Gauttam		586575
Nagarsheth N Gaurang		774300
Nagarsheth N Bhanuben		197500
Nagarsheth N Rachna		8625
Nagarsheth N Parav		35000
Nagarsheth N Parthvai		15000
Doshi s Dungarval		169250
Doshi D Mukesh		386250
Nagarsheth G Gaurali		50000
Doshi D Mahendra		440000
Nagarsheth N Parshva		32500
Nagarsheth G Param		20000
Nagarsheth G Poma		10000
Mehta M Raichand		5000
Gauttam Nipinbhai Nagarsheth HUF		70000
Poggen AMP Nagarseth Electrical Private Limited, India		200000
Total		3000000

As on 25.08.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		7.00
Directors or relatives of directors		60.00
Other top fifty shareholders		33.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Motor Laminations and Transformer Laminations.

Product :

Contactor Laminations
Ac Motor Laminations
Dc Motor Laminations
Transformer Laminations
Generator Laminations
Wind Generator Laminations
Stepper Motor Laminations
Submersible Pump Motor Laminations
Alternator Laminations
Ballast Laminations

Item Code No.	Product Description
85030003	Parts of Electric Motors (D.C.)
85030004	Parts of Electric Motors (Other than D.C.)
85049001	Parts of Transformers

Exports :

Products :

Motor Laminations and Transformer Laminations

Countries :

¨ Europe

¨ South Africa

¨ Middle East

¨ Australia

Terms :

Selling :

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

Purchasing :

Cash and Credit (30/ 60/ 90 days)

PRODUCTION STATUS (AS ON 31.03.2009)

Particulars	Vatva	Kheda
Licensed Capacity	3000 MT	10000 MT
Installed Capacity	1500 MT	13500 MT

Particulars	Actual Production
	Vatva	Kheda
Stamping and Lamination	124532.49	2873759.1
Scrap Generated	767550.91	1700948.84
Die (Nos.)	27	6

GENERAL INFORMATION

No. of Employees :

180 (Approximately)

Bankers :

UCO Bank, Gandhinagar Branch, Near Pragna Petrol Pump, GH 5 Circle, Sector 16, Gandhoinagar - 382 022, Gujarat, India
HDFC Bank Limited, Mumbai – 400 013, Maharashtra, India
IndusInd Bank Limited, 2401, Gen Thimmayya Road, Cantonment, Pune – 411 001, Maharashtra, India
Axis Bank

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loans :
A) From banks for plant and machinery
Axis Bank Term Loan II	18.716	0.000
Axis Bank Term Loan III	20.042	0.000
UCO Bank Term Loan	54.169	0.000
Indusind Bank Limited	0.000	52.181
B) From banks and finance companies for purchase of vehicles :
Kotak Mahindra Prime Limited	0.000	0.710
Sundaram Finance Limited	2.072	2.829
C) Working Capital
Working capital loans from banks :
Cash Credit (Axis Bank)	92.943	0.000
Cash Credit (UCO Bank)	99.803	0.000
IndusInd Bank Limited (Business Plot)	1.356	0.000
Cash Credit (Indusind Bank)	0.000	76.224
D) Bills Payable
Bill payable under buyer’s credit	18.113	13.577
Bills receivable discounted	64.404	3.979
Total	371.618	149.500

Note :

Term loans are secured by equitable mortgage of land and building, hypothecation of plant and machinery purchase current assets. The loans are also secured by the personal guarantee of directors.

Term loans from Bank/Finance companies are secured by hypothecation of vehicles financed by banks /Finance companies.

Working capital loans from banks are secured by hypothecation of raw materials, goods in process, current assets, fixed assets and personal guarantee of directors.

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From banks and Finance companies	28.179	50.063
From directors	0.160	1.105
From shareholders	28.395	29.980
Total	56.734	81.148

Financial Institutions :

¨ Kotak Mahindra Prime Limited

¨ Sundaram Finance Limited

¨ GRUH Finance Limited, “GRUH”, Netaji Marg, Near Mithakhali Six Road, Ellisbridge, Ahmedabad – 380 006, Gujarat, India


Banking Relations :	--

Auditors :
Name :	Dhiren Shah and Company Chartered Accountants
Address :	2^nd Floor, Swastik Avenue, Opposite Omkar House, C.G. Road, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26420854/ 26423324/ 26445013
Fax No.:	91-79-26561431
E-Mail:	dhirenshah_ca2000@yahoo.com

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		30.000	30.000	30.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		188.823	125.997	99.454
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		218.823	155.997	129.454
LOAN FUNDS
1] Secured Loans		371.618	149.500	104.911
2] Unsecured Loans		56.734	81.148	21.075
TOTAL BORROWING		428.352	230.648	125.986
DEFERRED TAX LIABILITIES		19.936	18.375	14.954

TOTAL		667.111	405.020	270.394

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		185.763	180.907	142.792
Capital work-in-progress		99.691	12.211	14.055

INVESTMENT		0.035	0.035	0.035
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	157.696	134.984	80.654
	Sundry Debtors	149.859	106.235	72.350
	Cash & Bank Balances	75.693	10.074	8.404
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	100.819	67.300	32.101
Total Current Assets		484.067	318.593	193.509
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	43.179	54.276	29.171
	Other Current Liabilities	25.992	35.979	31.242
	Provisions	33.275	16.472	19.587
Total Current Liabilities		102.446	106.727	80.000
Net Current Assets		381.621	211.866	113.509

MISCELLANEOUS EXPENSES		0.001	0.001	0.003

TOTAL		667.111	405.020	270.394

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	734.592	556.074	406.017
		Other Income	17.231	14.029
		TOTAL	751.823	570.103	406.017

Less	EXPENSES
		Office Expenses	633.284	510.489	342.685
		Administrative Expenses
		Advertising Expenses
		TOTAL	633.284	510.489	342.685

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		118.539	59.614	63.332

Less/ Add	DEPRECIATION/ AMORTISATION		16.945	13.971	10.228

	PROFIT BEFORE TAX		101.594	45.643	53.104

Less	TAX		33.503	15.591	19.079

	PROFIT AFTER TAX		68.091	30.052	34.025

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		112.804	87.012	NA

Less	APPROPRIATIONS
		Total Dividend	4.500	3.000	NA
		Tax on Dividend	0.765	0.510	NA
		Transfer to General Reserve	3.405	0.751	NA
	BALANCE CARRIED TO THE B/S		172.225	112.804	NA

	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB Basis	37.818	30.803	24.920
	TOTAL EARNINGS		37.818	30.803	24.920

	IMPORTS
		Raw Materials	337.578	350.723	208.097
		Others (Die Material)	2.859	0.662	0.000
	TOTAL IMPORTS		340.437	351.385	208.097

	Earnings Per Share (Rs.)		22.70	10.02	11.34

Expected Sales (2010-2011): Rs.900.000 millions (Approximately)

Expected Sales (2011-2012): Rs.1000.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	9.06	5.27	8.38

Net Profit Margin (PBT/Sales)	(%)	13.83	8.21	NA

Return on Total Assets (PBT/Total Assets}	(%)	15.17	9.14	15.79

Return on Investment (ROI) (PBT/Networth)		0.46	0.29	0.41

Debt Equity Ratio (Total Liability/Networth)		2.43	2.16	1.59

Current Ratio (Current Asset/Current Liability)		4.73	2.99	2.42

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

43.179

54.276

29.171

OPERATIONS:

During the Seventeenth Year since the incorporation of the Company under Chapter IX of the Companies Act 1956, the company has improved immensely in increasing the turnover over previous year. The performance of the company was excellent as increased sales including exports during the year 2009-2010 scaled u to Rs.734.592 millions compared to Rs.556.074 million in the last year The company after making provision for Depreciation and Taxes earned profit of Rs.68.091 millions in comparison the previous financial year Rs.30.052 millions. Additional machinery amounting to Rs.3.537 millions has been installed during the year Balance of Rs.94.522 millions of machinery have been acquired and shall be installed during 2010-11.

Keeping the potential and anticipated future growth the Company had concentrated to increase the production at Vavdi plant for optimum utilization of existing capacity and reduce the overheads, The plant and Machinery at Vavdi factory Is most sophisticated and sourced from the internationally reputed manufacturers which would enable the company to manufacture international quality of final product and must advanced testing facilities meeting the International standard of quality production.

FUTURE PLANS

The company foresee a very bright future in upcoming few years for its product. To counter the escalating cost of basic Raw Material the company would plan to install decarb annealing and blueing furnace where by a lower grade of electrical steel would give the same performance after processing in the furnace. Cut to length machines will enable the company to enter into the field of distribution and power transformer lamination. A coasting line will secure the company position as one f the select few in India to have such facilities. The scope of business will be hydro/gas/thermal turbine laminations

All these equipments arc planned to be installed before next year

Though the present Industrial growth is comparatively low, the demand is bound to increase in upcoming few years as product of the company is basically affiliated with Electricity and Power which is basic need for an Industry and industrial growth. With most of the Power plants are at advance stage of completion and would be operational in a year or two the future of the company is bright. The company is also trying to increase the exports by entering into new territories.

The directors are confident to achieve far better result in the forth Corning financial years.

Bankers Charges Report as per Registry

Corporate identity number of the company	U72200GJ1992PLC017786
Name of the company	POGGEN-AMP NAGARSHETH POWERTRONICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C-1/B 4402, GIDC Estate, Phase IV, Vatva, Ahmedabad – 382 445, Gujarat, India E-Mail: info@poggen.com
This form is for	Modification of charge
Charge identification number of the modified	10220223
Type of charge	Book Debts Movable Property Others (All P and F stocks, instruments, plant and Machinery etc)
Particular of charge holder	UCO Bank, Gandhinagar Branch, Near Pragna Petrol Pump, GH 5 Circle, Sector 16, Gandhoinagar - 382 022, Gujarat, India E-Mail: bo.gandhinagar@uco.com
Nature of description of the instrument creating or modifying the charge	Joint Deed of Hypothecation in favour of UCO Bank on behalf of itself and of Axis Bank, Exim Bank and Standard Chardered Bank as a consortium with UCO Bank as the Lead Bank
Date of instrument Creating the charge	25/02/2011
Amount secured by the charge	Rs.1011.700 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As may be decided by each consortium member bank from time to time as per their respective policy for each loan, Presently in the range of 11% to 12.5% p.a. Terms of Repayment: 1. The Rupee Term Loan or its sub limit(s) i.e. Buyers' Credit etc will be finally repaid in 5 years after a moratorium of 12 months from the date of disbursement or as applicable for each of the term loan limit/its sublimit by each member bank 2. The working capital limits, both fund based and non fund based, are renewable every year. Margin: Typically, 15% for new term loans. 15% for LC and Bank Guarantee/Buyers Credit 25% for Stocks 25% for Book Debts However above/other margins shall be as may be agreed to and sanctioned by each consortium bank from time to time. Extent and Operation of the charge: (i) For Working Capital loans, the charge is FIRST PARI PASSU on all P and F stocks of Raw Materials, in process and finished goods and receivables and SECOND PARI PASSU on all P and F movables, plant and machineries etc in favour of the UCO Working Capital Consortium (ii) For Term Loans the charge is FIRST PARI PASSU on P and F movables, plant and machineries etc and SECOND PARI PASSU on all P and F stocks of Raw Materials, in process and finished goods and receivables in favour of the UCO Term Loan Consortium Others: 1. The charge to be a continuing charge. 2. The Company (Borrower) to keep the charged assets insured 3. The Borrower to indemnify the Charge Holders for any loss due to false or misleading representation and for interest, costs, principal amounts etc outstanding 4. Jurisdiction shall be of Court at Ahmedabad 5. Other terms as per Joint Deed of Hypothecation
Short particulars of the property charged	All present and future book debts, outstandings, bills, claims along with all P and F stocks of Raw Materials, Finished Goods, process stock etc situate at Vatva Ahmedabad/Vavdi Kheda units or wherever 2. All movables, plant and machinery etc whether permanently fastened to earth or not situate at the factories of Borrower at Vatva Ahmedabad/Vavdi Kheda or wherever, in transit or at port/godown etc.
Particulars of the present modification	Enhancement of existing working capital loan limit and term loan limit.

Name Of The Company

POGGEN- AMP NAGARSHETH POWERTRONICS LIMITED

Presented By

Mr. Gauttam Nagarsheth

1) Date and description of instrument creating the change

Letter of Hypothecation dated 21/07/2004

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

Rs. 28.000 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

All the stock in trade present future condition of Raw material. Finished goods, goods in process of manufacturing, merchandise, current assets, plant and machinery all the book debts, O/S , money receivable, claims and bills which are now dues owing or which may at any time have before shall continue to subsist till times all the borrower. Due have been repaid in full.

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

(i) The facility provided to the borrower is in the nature of cash, credit, term loans.

(ii) The bank is entitled to charge interest at such note as may be determined by the bank.

(iii) The charged and hypothecation shall continue to subsist such time all the borrower due have been repaid in full.

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

HDFC Bank Limited, Lower Parel (West), Mumbai – 400 013, Maharashtra, India.

6)Date and brief description of instrument modifying the charge

Supplemental Memorandum of Hypothecation dated 20/10/2005.

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 overall limits stands increased from Rs. 28.000 Millions to Rs. 38.000 Millions details of which are as follows:

C/C	Rs. 22.500 Millions
Term Loan	Rs. 3.500 Millions
C/C	Rs. 10.000 Millions
B.G.	Rs. 2.000Millions
TOTAL	Rs. 38.000 Millions

This form is for

Creation of charge

Corporate identity number of the company

U72200GJ1992PLC017786

Name of the company

POGGEN AMP NAGARSHETH POWERTROMICS PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

Address : C-1/B, 4402, GIDC Estate, Phase IV, Vatva, Ahmedabad – 382 445, Gujarat, India

Email : info@poggen.com

Type of charge

Movable Property (not being pledge)

Others

Particular of charge holder

Name :	UCO Bank
Address :	Gandhinagar Branch, Near Pragna Petrol Pump, Gh 5 Circle, Sector 16, Gandhoinagar-382016, Gujarat, India
Email :	ucogandhinagar@gmail.com

Nature of description of the instrument creating or modifying the charge

Unattested Memorandum of Hypothecation in favour of UCO Bank.

Date of instrument Creating the charge

12.01.2010

Amount secured by the charge

Rs.38.000 Millions

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

Rate of Interest :

Interest at BPLR – 2%, Presently 14.25% p.a. (monthly rest)

Terms of Repayment :

The Rupee term loan or its sub limit(s) i.e. Buyers Credit will be finally repaid in 5 years after a moratorium of 6 months from the date of disbursement.

Margin :

22.50%

Extent and Operation of the charge :

The charge is on exclusive basis

The charge is on Cut-To-Length Machine for securing term loan/Buyers credit availed for financing purchase of the machine.

The charge is for loan Rs. 38.000 Millions and with interest, commission, other charges etc. as may be due to UCO Bank.

Others :

The charge to be a continuing charge.

The company (Borrower) to keep the charged assets insured

The Borrower to indemnity the charge holder for any loss due to false or misleading representation and for interest, costs, principal amounts etc outstanding

Jurisdiction shall be of court at Ahmedabad.

Short particulars of the property charged

Core of to length machinery for Transformer Lamination from UPI Company Limited Korea to be installed at Vavdi Kheda Plant of the Borrower as described in the Hypothecation deed.

CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF:

Particulars	31.03.2010 (Rs. in millions)
Octroi	2.009
Outstanding Letter of Credit	30.333
Outstanding Bank Guarantee	2.234

FIEXD ASSESTS:

¨ Land

¨ Plant and Machinery

¨ Factory Building

¨ Factory Road

¨ Worker’s Quarter

¨ Office Equipment

¨ Furniture and Fixture

¨ Air Conditioners

¨ Computer

¨ Misc. Assets

¨ Staff Bus

¨ Vehicles

¨ Dies

¨ Electric Installation

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.44.52
UK Pound	1	Rs.72.72
Euro	1	Rs.64.41

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	NO
--AFFILIATION	YES/NO	NO
--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

157.696

134.984

80.654

149.859

106.235

72.350

75.693

10.074

8.404

0.000

0.000

0.000

100.819

67.300

32.101

484.067

318.593

25.992

35.979

31.242

33.275

16.472

19.587

102.446

106.727

381.621

211.866

9.06

13.83

15.17

0.46

2.43

4.73

Unit