MIRA INFORM REPORT

Report Date :

21.04.2011

IDENTIFICATION DETAILS

Name :	HARIYANA SHIP BREAKERS LIMITED
Registered Office :	302, Sylverton Building, Ground Floor, 102 Wode House Road, Colaba, Mumbai – 400005, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.07.1981
Com. Reg. No.:	024774
CIN No.: [Company Identification No.]	L61100MH1981PLC024774
Legal Form :	Public Limited Liability company. The company’s shares are listed on the stock exchanges.
Line of Business :	The Company is engaged in ship breaking, manufacture of sponge iron, trading, investment and money lending activities.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1600000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is 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	A1	A1

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

INFORMATION DECLINED BY

The Management non cooperative

LOCATIONS

Registered Office/ Corporate Office :	302, Sylverton Building, Ground Floor, 102 Wode House Road, Colaba, Mumbai – 400005, Maharashtra, India
Tel. No.:	91-22-22182569
Fax No.:	91-22-22182524
E-Mail :	hsbl@vsnl.com
Website :	www.hariyanagroup.com
Branches 1 :	308 Madhav Darshan, Waghawadi Raod, Bhavnagar – 364001, Gujarat, India
Branches 2 :	206 Barton Centre, M.G.Road, Bangalore - 560 001, Karnataka, India
Ship Breaking Yard :	Plot No. 14, Ship Breaking Yard, Alang, District : Bhavnagar, Gujarat, India
Sponge Iron Plant :	Survey No. 12, 14, 15, Shanthigrama (Hubli), Kanchanhally Village, Hassan – 573201, Karnataka, India

DIRECTORS

Name :	Mr. Shanti Sarup Reniwal
Designation :	Director
Name :	Mr. Satish Diwate
Designation :	Director
Name :	Ms. Lalitadevi S Reniwal
Designation :	Director
Name :	Mr. Manohar Wagh
Designation :	Director
Name :	Mr. Rakesh Reniwal
Designation :	Director
Name :	Mr. Pradeep Bhatia
Designation :	Director
Name :	Mr. Tejas Thakkar
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 31.12.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4,529,814	73.46
Sub Total	4,529,814	73.46
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	4,529,814	73.46
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	514,715	8.35
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	790,859	12.82
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	324,796	5.27
Any Others (Specify)	6,483	0.11
Clearing Members	688	0.01
Non Resident Indians	5,795	0.09
Sub Total	1,636,853	26.54
Total Public shareholding (B)	1,636,853	26.54
Total (A)+(B)	6,166,667	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	6,166,667	-

BUSINESS DETAILS

Line of Business :

The Company is engaged in ship breaking, manufacture of sponge iron, trading, investment and money lending activities.

Products :

Item Code No.	Product Description
72042909	Ship Breaking
--	Sponge Iron

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Shipbreaking	MT	NA	NA	27896.94
Sponge Iron	MT	NA	NA	36749.78

GENERAL INFORMATION

No. of Employees :

Information not divulged by management

Bankers :

• Punjab National Bank – Raheja Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India
• ICICI
• HDFC
• DCB
• Development Credit Bank Limited

Facilities :

Secured loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Term Loan Punjab National Bank	29.841	57.405
Cash Credit from Punjab National Bank	30.181	3.584
Punjab National Bank (LC)	494.363	107.181
Loan against vehicles from ICICI/HDFC/Kotak/DCB	0.733	0.084
Overdraft from Punjab National Bank	12.493	0.164
Development Credit Bank Limited	1.167	2.702
Total	568.778	171.120

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Directors / Share Holders	37.540	33.881
Total	37.540	33.881

Banking Relations :	--
Auditors :
Name :	Jain Seth and Company Chartered Accountant
Address :	Bhavnagar – 364001, Gujarat, India
Subsidiaries :	Hariyana Air Products - Partnership Firm
Associates :	Hariyana Ship Demolition Private Limited
Partnership Firm :	Whitefield Projects Raj Associates Swastik Developers

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6500000	Equity Shares	Rs. 10/- each	Rs. 65.000 Millions
5000000	4% Redeemable Preference Shares	Rs. 10/- each	Rs. 50.000 Millions
	Total		Rs. 115.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6166667	Equity Shares	Rs. 10/- each	Rs. 61.667 Millions

Note:

Of the above 3146640 equity shares were issued as fully paid up Bonus Shares by Capitalising General Reserve and Profit)

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		61.667	61.667	61.667
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		347.884	293.930	252.007
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		409.551	355.597	313.674
LOAN FUNDS
1] Secured Loans		568.778	171.120	167.438
2] Unsecured Loans		37.540	33.881	0.000
TOTAL BORROWING		606.318	205.001	167.438
DEFERRED TAX LIABILITIES		41.323	38.043	36.332
TOTAL		1057.192	598.641	517.444
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		304.616	302.018	305.800
Capital work-in-progress		0.000	5.501	3.134
INVESTMENT		29.203	23.786	30.510
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	283.979	264.028	297.409
	Sundry Debtors	69.475	70.358	268.373
	Cash & Bank Balances	3.392	2.557	10.573
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	569.454	255.499	99.271
Total Current Assets		926.300	592.442	675.626
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	85.696	244.659	414.257
	Other Current Liabilities	26.714	25.456	48.668
	Provisions	93.759	58.305	38.087
Total Current Liabilities		206.169	328.420	501.012
Net Current Assets		720.131	264.022	174.614
MISCELLANEOUS EXPENSES		3.242	3.314	3.386
TOTAL		1057.192	598.641	517.444

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1338.977	1751.777	1435.049
		Other Income	72.420	25.558	46.414
		TOTAL (A)	1411.397	1777.335	1481.463
Less	EXPENSES
		Raw material consumed / Traded	1117.078	1376.395	1122.597
		Labour and wages	18.359	14.341	13.436
		Works expenses	54.055	48.142	147.894
		Administrative expenses	15.995	73.296	7.902
		Selling expenses	65.149	114.209	29.714
		Share issue expenses written off	0.072	0.072	0.072
		Increase/Decrease in finished goods	(14.220)	(0.707)	(0.104)
		TOTAL (B)	1256.488	1625.748	1321.511
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		154.909	151.587	159.952
Less	FINANCIAL EXPENSES (D)		29.263	48.935	44.575
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		125.646	102.652	115.377
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.324	16.357	15.746
	PROFIT BEFORE TAX (E-F) (G)		108.322	86.295	99.631
Less	TAX (I)		38.996	31.540	32.589
	PROFIT AFTER TAX (G-I) (J)		69.326	54.755	67.042
	INCOME TAX OF EARLIER YEARS		0.005	2.532	0.000
	PRIOR PERIOD ADJUSTMENTS		0.000	0.014	(0.027)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		180.697	137.825	87.117
Less	APPROPRIATIONS
		Dividend on equity shares	12.333	12.333	12.333
		Dividend on preference shares	0.000	0.000	1.605
		Tax on distributed profit	2.096	2.096	2.369
	BALANCE CARRIED TO THE B/S		235.599	180.697	137.825
	IMPORTS
		Raw Materials	676.885	528.596	251.122
		Trading Goods	0.000	436.821	645.898
	TOTAL IMPORTS		676.885	965.417	897.020
	Earnings Per Share (Rs.)
	- Basic		11.24	9.29	10.57
	- Diluted		11.24	9.29	10.57

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	550.660	410.030	1018.910
Total Expenditure	509.120	376.170	963.890
PBIDT (Excl OI)	41.540	33.860	55.020
Other Income	1.350	7.570	1.390
Operating Profit	42.890	41.430	56.410
Interest	8.170	5.280	9.060
PBDT	34.720	36.150	47.350
Depreciation	4.490	4.580	4.650
Profit Before Tax	30.240	31.570	42.700
Profit After Tax	30.240	31.570	42.700
Extraordinary Items	0.000	0.000	3.300
Net Profit	30.240	31.570	46.000

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.91	3.08	4.53
Net Profit Margin (PBT/Sales)	(%)	8.09	4.93	6.94
Return on Total Assets (PBT/Total Assets}	(%)	8.80	9.65	10.15
Return on Investment (ROI) (PBT/Networth)		0.26	0.24	0.32
Debt Equity Ratio (Total Liability/Networth)		1.98	1.50	2.13
Current Ratio (Current Asset/Current Liability)		4.49	1.80	1.35

LOCAL AGENCY FURTHER INFORMATION

The details of sundry creditors:

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
- For Capital Goods	1.506	1.542	1.723
- For Goods	83.871	242.996	412.534
- For Expenses	0.319	0.121	0.000
Total	85.696	244.659	414.257

FINANCIAL RESULTS:

During the year, the thrust area was Ship Breaking unit of the company which has achieved almost six times increase in terms of Sales Turnover. Sponge Iron and Trading have recorded nearly 50% decrease in sales turnover because of frequent and significant price decrease in the prices of Iron and steel during the year as compared with preceding year and that affected the sales turnover in terms of value. The finance and investment segment has achieved steady growth.

Net Profit earnings before tax have been 25.53% higher than the preceding financial year whereas net profit earnings after tax have remained at 26.61% higher than the preceding financial year

PROSPECTS IN THE COMING YEAR

During the financial year 2009-10, ship-breaking industry at Alang Ship Breaking Yard seen a complete turn around and it is booming like never before. To join the flow of the market the company also put its main thrust to its ship breaking activities at ship breaking yard at Alang and has done remarkable business during the year under report. Moreover, fluctuating and volatile prices of old Ships, Iron and Steel products having been reasonably stabilized and the inventory levels of the company and its market position, all the segments of the company, viz. Ship Breaking, Sponge Iron and Trading, are expected to see manifold increase in terms of Gross Revenues and Net profit Margins in the coming year.

With the changed circumstances, the company is hopeful that in the coming period the company will continue its ship breaking activities and take it to the level of extended growth and will contribute more to the overall growth of the business of the company. The trading activities of the company are doing reasonably well and are contributing considerably to the profitability of the company. The sponge iron division of the company went through a not so good year, however, with the increased management focus on market environment, the unit is also expected to yield positive results in the current year as well in the coming years. The financing and investment division of the company is also doing well. The directors see a very positive and bright future prospects ahead for the company looking to the prevailing upward trend in the Iron and Steel sector in India and internationally.

MANAGEMENT DISCUSSION AND ANALYSIS

a) Overview:

The company is now a diversified company with ship breaking, manufacture of sponge iron, trading, investment and money lending activities.

b) Segmental Review :

i) Shipbreaking

As has been stated in the out-look, due to boom in the availability of old ships in the international market, the company’s ship breaking unit at Alang Ship Breaking Yard, Bhavnagar is fully operational through out the year and has seen a manifold increase in terms of Sales Turnover and Net Profit Margins. Though the year saw heavy fluctuation in the international market of old ships coming for breaking, the management was very cautious and purchased ships at proper time and built a good level of inventories to earn better profits. Now the market has stabilized and taking into account the inventory level of the company as at the year end, it is hoped that the turnover and the profitability will see a further increase in the current financial year.

ii) Steel and Power

As has been stated in the out-look, due to heavy price fluctuations during the year, and because of that the total sales in terms of value is showing decrease. Further, due to some impact of the overall economic slow down, the management took a cautious approach by not taking any major risk, the sales and the net profit margins have been affected during the year. However, the management of the view that the worst is over and the iron and steel industry is again doing well and with the expected boost in the economy the requirement of steel is slated to increase and the unit will also move further towards its sustained path of growth. Sponge iron is one of the basic raw materials for the iron and steel industry and therefore the Directors are confident that the sponge iron division of the company should do better in the coming years.

iii) Trading

The trading activity of the company is mainly in the iron and steel sector and considering the present market for the iron and steel, the same segment is also expected to grow in the coming years.

iv) Investment

The Company has been very cautious in investment in the shares and securities in the stock market with a view to earn short term and long term capital gain.

v) Money Lending

Money lending is not main business of the company. As and when surplus funds are available with the company, the company lent the same with a view to earn interest.

Review of operation:

As outlined in previous report, the company’s ship breaking unit is now fully operational during the year under report and has done good business. The trading and steel and power division has performed reasonably well despite some not so encouraging market environment prevailing during the year. Any surplus funds available with the company were given on interest and the company could earn considerable amount of interest. The short term and long-term capital gain/(Loss) arising out of investment activities are less compared to the previous year. Due to decrease in sales turnover of company’s Sponge Iron unit and trading unit, the over all turnover of the company has decreased to Rs. 1338.977 millions as against Rs. 1751.777 last year. However, due to handsome profits generated by its ship-breaking unit, the company could achieve increase in net profit margins at Rs. 69.326 millions as against Rs. 54.755 millions last year. While the turnover has decreased by 23.56%, the net profit after tax has increased by 26.61%.

Contingent Liabilities note provided for (As On 31.03.2010)

a) Income Tax assessment has been completed upto the year assessment year2007-08. The management has been advised that no additional liability will arise in the case of pending assessment.

b) The company does not anticipate any significant liabilities on account of pending Income Tax and VAT assessments.

c) The company has given corporate guarantee for Bank Term Loan Finance amounting Rs. 25.100 millions to M/s. Hariyana Air Product, in which company is also one of the partner.

UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 31.12.2010

Rs. In Millions

Particulars	3 months ended 31.12.2010	Year to date figures for current period ended 31.12.2010
	Unaudited	Unaudited
a) Net Sales / Income from Operations	1018.906	1979.601
b) Other Income	1.389	10.299
Total Income	1020.295	1989.900
Expenditure
(a) (Increase)/decrease in Stock in Trade	(8.072)	(6.073)
(b) Consumption of Raw Materials	936.373	1766.639
(c) Purchase of traded goods	16.126	43.459
(d) Employees Cost	7.111	19.361
(e) Depreciation	4.651	13.713
(f) Other Expenditure	12.347	25.794
Total Expenditure	968.536	1862.893
Interest	9.057	22.505
Exceptional Items	--	--
Profit / (Loss) From Ordinary activities before Tax	42.702	104.502
Tax Expenses	--	--
Net Profit/(Loss) From Ordinary activities after Tax	42.702	104.502
Extraordinary Items	(3.295)	(3.295)
Net Profit/(Loss) for the period	45.997	107.797
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	61.667	61.667
Reserves (Excluding Revaluation Reserves)	--	--
Earning Per Share (EPS)
-Basic and Diluted EPS before extraordinary items for the period, for the year to date and for the previous year (not annualised)	7.46	17.48
-Basic and Diluted EPS after extraordinary items for the period, for the year to date and for the previous year (not annualised)	7.46	17.48
Public Share Holding
- Number of Shares	1636853	1636853
- Percentage of shareholding	26.54	26.54
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	--	--
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	--	--
- Percentage of shares(as a % of the total share capital of the company)	--	--
b) Non-encumbered
- Number of Shares	4529814	4529814
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100%	100%
- Percentage of Share (as a % of the total share capital of the company)	73.46%	73.46%

Note:

1. The above unaudited financial results have been reviewed by the audit committee and considered and taken on record by the board of directors at their meeting held on 10.02.2011.
2. The company has continued its activities in Ship recycling, Manufacturing sponge and iron and trading of iron steel has been able to attain sustainable growth in all the segments
3. There are no investor complaint pending as on 01.10.2010. During the quarter company didn’t received any complaints. So no complaint is pending as on 31.12.2010.
4. The statutory auditors have carried out “Limited Review of the above financial results.
5. Previous year’s figures have been regrouped / recasted wherever necessary.
6. During the current year company has purchased three ships namely M.V. Express, M.V. Sco Apache and M.T. Alliance- Tonnage of 17171 MT. 6348 MT and 29264 MT. Cost of ships (approximately) 280.000 millions, 130.000 millions and 650.000 millions. Respectively total cost Rs. 1060.000 millions
7. During the year company has partner in partnership firm ORCHID WOOD PROJECTS at Bangalore. Firm has purchased land of 3 acres for developing residential house. Land cost of Rs. 150.000 millions (approximately). In February firm has been start residential and commercial construction activities.

SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Rs. In Millions

Sr. No	Particulars	3 months ended 31.12.2010	Year to date figures for current period ended 31.12.2010
		Unaudited	Unaudited
1.	Segment Revenue
	(Net sales / Income from each segment)
	a) Segment – A – Finance and Investment	21.918	62.368
	b) Segment – B – Shipbreaking	243.352	560.305
	c) Segment – C – Trading	623.652	1006.676
	d) Segment – D – Street and Power	131.373	360.551
	Total	1020.295	1989.900
	Less: Intersegment Revenue	--	--
	Net Sales / Income from Operations	1020.295	1989.900
2.	Segment Results
	Profit / Loss before tax and interest from each segment
	a) Segment – A – Finance and Investment	24.423	60.980
	b) Segment – B – Shipbreaking	(18.041)	(4.425)
	c) Segment – C – Trading	13.083	26.313
	d) Segment – D – Street and Power	32.294	44.139
	Total	51.759	127.007
	Less: i) Interest	9.057	22.505
	ii) Other – Un-allocable Expenditure net off	--	--
	iii) Un-allocable income	--	--
	Profit before tax	42.702	104.502
3.	Capital Employed
	Segment Assets – Segment Liabilities
	a) Segment – A – Finance and Investment	366.987	366.987
	b) Segment – B – Shipbreaking	(97.629)	(97.629)
	c) Segment – C – Trading	(41.411)	(41.411)
	d) Segment – D – Street and Power	288.893	288.893
	Total	516.840	516.840

Fixed Assets:

• Premises
• Warehouse (Leasehold)
• Factory building
• Roads and Culvets
• Plant and machinery
• Crane
• Pollution control equipments
• Office equipments
• Mobile
• Furniture
• Computers
• Air conditioners
• Vehicles
• Transport vehicles
• Portable generator set
• Wire ropes
• Fire fighting equipments
• Oxygen cylinders cage
• Spectro meter
• Weighing machine
• Weigh bridge
• Wingh

AS PER WEBSITE DETAILS

PROFILE:

Established in 1981, commercial operations started in 1981. The company is ISO 9001-2000,14001:2004 and OHSAS 18001:2007 certified. Company has imported one of the largest ship “pacific blue” of 57000 M.T. (2001-02).

The company is listed in the recognized stock exchange in India i.e. Bombay Stock Exchange (B.S.E)

The paid up capital of the company as on 31-03-2008 is Rs. 61.700 millions (already amalgamation of Hariyana Fashions Private Limited and Hariyana Machinary Export Private Limited) the company is regularly paying dividend.

The company is already started one sponge iron plant. Further plan for power and steel plant at hassan with installed capacity of 1.00 Lac ton per annum this division of hariyana ship breakers Limited is in the name of Hariyana Steel and Power. The company has already completed 1^st phase of sponge iron plant and 2^nd phase is work in progress.

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.44.38
UK Pound	1	Rs.72.55
Euro	1	Rs.63.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.