MIRA INFORM REPORT

Report Date :

06.12.2011

IDENTIFICATION DETAILS

Name :	CHETTINAD CEMENT CORPORATION LIMITED
Registered Office :	Rani Seethai Hall Building, 603, Anna Salai, Chennai – 600 006, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.12.1962
Com. Reg. No.:	18-4947
Capital Investment / Paid-up Capital :	Rs.382.000 Millions
CIN No.: [Company Identification No.]	L93090TN1962PLC004947
TAN No.: [Tax Deduction & Collection Account No.]	CHEC00061F
Legal Form :	A Public Limited Liability Company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Cement.
No. of Employees :	1368 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 37000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company appears to be sounds. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	Rani Seethai Hall Building, 603, Anna Salai, Chennai – 600 006, Tamilnadu, India
Tel. No.:	91-44-28292727 / 42149955 / 12951800 (100 lines)
Fax No.:	91-44-28291558
E-Mail :	chtdmds@vsnl.com info@chettinadcement.com mdchettinadgroup@airtelmail.in
Website :	http://www.chettinad.com
Plant 1 :	Puliyur Works Kumrarajah Muthiah Nagar, Puliyur Cement Factory Post, Karur District, Tamilnadu – 639 114, India
Plant 2 :	Karikkali Works Rani Meyyammai Nagar, Karikkali Village, Via-Palyam, Vedasandur Taluk, Dindigul District, Tamilnadu – 624 703, India
Plant 3 :	Ariyalur Works Keezhapalavur (P.O.), Ariyalur District, Tamilnadu – 621 707, India

DIRECTORS

As on 31.03.2011

Name :	Dr. M. A. M. Ramaswamy
Designation :	Chairman
Name :	Mr. M. A. M. R. Muthiah
Designation :	Managing Director
Name :	Mr. Ramanathan Palaniappan
Designation :	Director
Date of Birth/Age :	24.10.1932
Qualification :	B.E. (Hons.), M.I.E.
Date of Appointment :	22.09.1984
Other Directorship :	· Primachs Auto Components Private Limited · Productivity Elements Private Limited
Name :	Mr. R. Krishnamoorthy
Designation :	Director
Name :	Mr. SP. ST. Palaniappan
Designation :	Director
Date of Birth/Age :	25.03.1928
Qualification :	B.Com, F.C.A.
Date of Appointment :	15.12.1992
Name :	Mr. K. Ganapthy
Designation :	Director
Name :	Dr. T. Prabhakara Rao, IAS
Designation :	Director (TIIC Nominee)

KEY EXECUTIVES

Name :	Mr. S. Hariharan
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	22,297,011	58.37
Bodies Corporate	11,485,566	30.07
Sub Total	33,782,577	88.44
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	33,782,577	88.44
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2,200	0.01
Financial Institutions / Banks	1,236,410	3.24
Insurance Companies	34,000	0.09
Foreign Institutional Investors	2,100	0.01
Sub Total	1,274,710	3.34
(2) Non-Institutions
Bodies Corporate	1,534,646	4.02
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1,255,561	3.29
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	347,475	0.91
Any Others (Specify)	4,029	0.01
Clearing Members	3,429	0.01
Trusts	600	-
Sub Total	3,141,711	8.22
Total Public shareholding (B)	4,416,421	11.56
Total (A)+(B)	38,198,998	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)	38,198,998	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Cement.

Products :

· Sulphate Resistant Portland Cement

· Portland Slag Cement

Product Description	Item Code No. (ITC Code)
Cement	252329.01

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Annual Licensed /Installed Capacity	Actual Production
Cement	MT	8500000	4562416
Clinker	MT	--	3474372

GENERAL INFORMATION

No. of Employees :

1368 (Approximately)

Bankers :

· South Indian Bank Limited

· Indian Bank

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
From Banks
Term Loan	3797.500	2650.000
Working Capital	89.600	788.900
From Others
Softloan from SIPCOT	175.700	0.000
Total	4062.800	3438.900

The Term Loans availed from the Central Bank of India, Canara Bank and Indian Bank are secured by pari passu First Charge basis on all moveable and immoveable properties of the company situated at Cement Plant (Line-I) at Keelapalavur Village, Ariyalur District and Captive Power Plant thereof.

The Term Loans availed from the Central Bank of India and Canara Bank are also collaterally secured by a pari passu second charge on Current Assets of the company.

The Term Loans availed from the Indian Bank is collaterally by a pari passu second charge on Current Assets of the company.

The Soft Loan availed from SIPCOT is secured by pari passu first charge on moveable properties and moveable fixed Assets at the Cement Plants of the company situated at Keelapalavur Village, Ariyalur District and Cement Grinding Unit at Puliyar Village, Karur District.

The Working Capital facilities with Central Bank of India is secured hypothecation of Raw Materials, Stores, Spares, Packing materials, Fuel, Process Stock, Finished goods and Book Debts of the Company and further secured by a Second charge on all the immoveable properties of the Company.

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Inter Corporate Deposits	2750.000	2002.000
Interest free sales tax loan	2147.800	2147.800
Total	4897.800	4149.800

Banking Relations :	--
Auditors :
Name :	· P. B. Vijayaraghavan and company Chartered Accountants · V. Soundarajan and Company Chartered Accountants · Krishaan and Company Chartered Accountants
Associates :	· South India Corporation Limited · South India Corporation (Travancore) Private Limited · Chettinad Corporation Private Limited · Chettinad Plantations Private Limited · Cheetinad Structural and Engineering Limited · Chettinad Logistics Private Limited · Chettinad Lignite Transport Services Private Limited · Chettinad Financial Management Services Private Limited · Chettlnad Software Services Private Limited · Chettinad Builders Private Limited · Chettinad Realtors Private Limited · Chettinad Hospitals Private Limited · Chettinad Pharmaceuticals Private Limited · Chettinad Electronics Private Limited · Chettinad e-Publishing Private Limited · Chettinad Trucks and Equipments Private Limited · Chettinad Earth Movers Private Limited · Haaciendaa Infotech and Realtors Private Limited · Chettinad International Coat Terminal Private Limited · Chettinad Clearing and Forwarding Private Limited · Chettinad Land and Building Development Private Limited · Chettinad Projects Development Private Limited · Chennai Computer and Software Services Private Limited · Chettinad Inland Water Transport Services Private Limited · Chennai Organic Chemicals and Fertilizers Private Limited · Chettinad Morimura Semi Conductor Material Private Limited · Chettinad Engineering arid Allied Services Private Limited · Chettinad Apparels Private Limited · Chettinad Packers and Movers Private Limited · Chettinad Power Corporation Private Limited · Chettinad TV Network Private Limited · Chettinad Radio Network Private Limited · Durandel Foods Private Limited · Chettinad Energy Resource Private Limited · Chettinad Electric Company Private Limited · Chettinad Enterprises Private Limited · Chettinad Dairy and Poultry Farms Private Limited · Chettinad Coal Washeries Private Limited · Chettinad Hitech Semi Conductor Materials Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Rs.10/- each	Rs.5000.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
38295748	Equity Shares	Rs.10/- each	Rs.382.900 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
38198998	Equity Shares (Includes 4215850 Equity Shares of Rs.10/- each allotted as fully paid Bonus Shares by capitalisation of Reserves)	Rs.10/- each	Rs.382.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		382.000	382.000	295.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8875.100	8255.200	3256.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9257.100	8637.200	3551.500
LOAN FUNDS
1] Secured Loans		4062.800	3438.900	2820.000
2] Unsecured Loans		4897.800	4149.800	7150.300
TOTAL BORROWING		8960.600	7588.700	9970.300
DEFERRED TAX LIABILITIES		77.100	73.100	75.200
TOTAL		18294.800	16299.000	13597.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13737.800	11478.000	8094.100
Capital work-in-progress		2335.400	954.600	3131.600
INVESTMENT		5.800	5.800	5.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2316.200	2240.900	2146.100
	Sundry Debtors	1065.700	745.000	387.000
	Cash & Bank Balances	207.300	730.700	429.900
	Other Current Assets	0.100	0.200	0.100
	Loans & Advances	3416.600	3797.500	3298.300
Total Current Assets		7005.900	7514.300	6261.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1342.600	800.500	1012.300
	Other Current Liabilities	799.300	631.900	449.700
	Provisions	2648.200	2221.300	2433.900
Total Current Liabilities		4790.100	3653.700	3895.900
Net Current Assets		2215.800	3860.600	2365.500
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		18294.800	16299.000	13597.000

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	30.03.2010	31.03.2009
	SALES
		Income	15030.100	13595.500	11374.500
		Other Income	1015.300	139.400	61.400
		TOTAL (A)	16045.400	13734.900	11435.900
Less	EXPENSES
		Raw Material Consumed	2097.100	1721.700	1589.000
		Stores and Spares Consumed	591.400	483.600	609.000
		Power & Fuel	4268.200	3105.700	2433.700
		Excise Duty	34.000	32.500	(2.200)
		Packing Charges	609.500	504.400	432.800
		Salaries, Wages, Bonus and Amenities to Staff	800.000	645.400	377.000
		Repairs and Maintenance	414.000	320.900	246.800
		Loading and Transport Charges	1473.700	1371.300	1124.700
		Advertisement and Sales Promotion	246.100	91.500	35.000
		Commission	24.400	18.800	16.000
		Other Expenses	217.700	218.800	118.600
		Increase/(Decrease) in Stocks	60.000	99.400	(250.900)
		TOTAL (B)	10836.100	8614.000	6729.500
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5209.300	5120.900	4706.400
Less	INTEREST (D)		629.900	767.900	507.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4579.400	4353.000	4198.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3628.700	3080.800	4290.000
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		950.700	1272.200	(91.400)
Less	TAX (H)		199.000	305.900	(49.300)
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		751.700	966.300	(42.100)
	Provision for Taxation no longer required		0.000	200.000	13.900
	Prior Period Expenses		0.000	(88.000)	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3142.400	2057.000	2530.400
	Profit of Amalgamating company brought forward		0.000	7.100	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	85.000	0.000	100.000
		Proposed Dividend on Equity Shares	191.000	0.000	295.000
		Tax on Dividend	31.700	0.000	50.200
	BALANCE CARRIED TO THE B/S		3586.400	3142.400	2057.000
	EARNINGS IN FOREIGN CURRENCY		24.200	0.000	0.000
	IMPORTS
		Spares and Components	71.400	276.100	141.000
		Capital Goods	0.000	981.600	713.500
	TOTAL IMPORTS		71.400	1257.700	854.500
	Earnings Per Share (Rs.)		19.68	30.51	60.08

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	4724.000	5120.700
Total Expenditure	2923.100	3283.400
PBIDT (Excl OI)	1800.900	1837.300
Other Income	5.400	24.300
Operating Profit	1806.300	1861.600
Interest	189.200	231.300
Exceptional Items	0.000	0.000
PBDT	1617.100	1630.300
Depreciation	665.400	691.300
Profit Before Tax	951.700	939.000
Tax	255.300	291.700
Provisions and contingencies	0.000	0.000
Profit After Tax	696.400	647.300
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	696.400	647.300

KEY RATIOS

PARTICULARS		31.03.2011	30.03.2010	31.03.2009
PAT / Total Income	(%)	4.68	7.04	(0.37)
Net Profit Margin (PBT/Sales)	(%)	6.33	9.36	(0.80)
Return on Total Assets (PBT/Total Assets}	(%)	4.58	6.70	(0.64)
Return on Investment (ROI) (PBT/Networth)		0.10	0.15	(0.03)
Debt Equity Ratio (Total Liability/Networth)		1.49	1.30	3.90
Current Ratio (Current Asset/Current Liability)		1.46	2.06	1.61

LOCAL AGENCY FURTHER INFORMATION

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian Economy continues to be vibrant and has emerged as a more mature and resilient player following the Global Economic meltdown. The Indian Economy has been one of the drivers of World Economy over the past couple of years. The economy has continued to grow in excess of 8% during the financial year 2010-11 in the face of a resurgent Agricultural sector. The matter of concern is the sluggishness in the growth of Industrial and Service sector in the face of high Inflation rate mainly contributed by food inflation. It is expected that these are only short term hiccups while the long term projection still holds good prospects for the Indian Economy.

The performance of the Cement Industry was a clear reflection of the general sluggishness prevailing in the Industrial sector as a whole. The growth in Production was the lowest in recent years at 5% and the dispatches grew by about 4%. The Capacity Utilisation has reduced from 80% in the previous financial year 10.73% for the financial year 2010-11. The disparity between growth in realization and growth in cost of production continued to eat away the bottom lines of the companies.

The company has commissioned its Line-2 expansion Unit at Karikkali Village with a capacity of AMT PA during September 2010 preparing to make best use of resurgence in Cement Industry. With this, the installed capacity of the company has Increased to 8.5Million Tonnes per annum.

OPPORTUNITIES, THREATS, RISKS, CONCERNS AND OUTLOOK

The continued thrust on development of infrastructure by the Government of India is indeed the impetus for expansion of capacities occurring in the Cement Industry, but the recent hike in Interest rates is a cause of concern in the short term as housing sector is definitely bound to be affected by the costlier housing loans. The spiraling cost of Raw Materials and fuel at a rate much more than the growth in realization has been hitting the industry hard for quite sometime.

With the Cement capacity targetted to touch 550 MT by the end of the next Plan Period, the long term outlook is quite positive for the Industry.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The Company has only one business segment, that it manufacturing and Sale of Cement. The only other segment namely Generation and Sale of Power revolves around the Cement segment and is mainly used for Captive consumption by the Cement segment.

WINDMILL OPERATIONS

The Company had disposed all the Fixed Assets relating to Windmill Operations during the second Quarter of the financial year 2010-11.

CAPTIVE THERMAL POWER PLANTS

KARIKKALI WORKS

The Gross power generation from the 15 MW Captive Thermal Power Plant during the year was 12.34 Crore Units, with an auxiliary consumption of 0.97 crore units. The Net generation of 11.37 core Units were entirely consumed by the Cement Plant thereat.

PULIYUR WORKS

The Gross power generation from the 15 MW Captive Thermal Power Plant during the year was 10.21 Crore Units, with an auxiliary consumption of 0.86 crore units. The Net generation was 9.35 crore Units. Out of the total net generation, 8.66 crore units were consumed captively by the Cement Plant thereat and the remaining 0.69 crore units were sold under Power Purchase Agreements.

ARIYALUR WORKS

The Gross power generation from the 15 MW X 3 Captive Thermal Power Plants during the year was 23.93 Crore Units, with an auxiliary consumption of 2.03 crore units. The Net generation was 21.90 crore Units. Out of the total net generation, 14.99 crore units were consumed captively by the Cement Plants thereat and the remaining 6.91 crore units were sold under Power Purchase Agreements.

PROGRESS REPORT ON ONGOING PROJECTS

Cement Plant Line-II at Karikkali

The company has commissioned the Line - II Cement manufacturing unit at Karikkali Village, Dindigul District, Tamilnadu adjacent to its existing Unit with a capacity of 2MTPA during the second quarter of the Financial Year 2010-11 and a Captive Power Plant thereat during the last quarter of the Financial Year 2010-11 to cater to the Power requirements of the Line-ll Cement Plant.

Proposed Cement Plant project at Karnataka

The company has completed its entire land acquisition for mining and factory site at Chincholi Taluk, Gulbarga District, Karnataka State for setting up a Greenfield Cement Plant with a capacity of 2.5 MTPA along with a 30 MW Captive Thermal Power Plant. Order shave been placed for major machineries and Civil Work has been commenced for both the Cement Plant and the Captive Power Plant thereat.

FIXED ASSETS

· Goodwill

· Freehold Land

· Leasehold Land

· Buildings

· Plant and Machinery

· Furniture and Fittings

· Earth Moving Equipments and Vehicles

· Railway Tracks and Sidings

WEB DETAILS

BUSINESS DESCRIPTION

Subject is a manufacturer of cement and construction materials. The Company is also engaged in the activities of granite, engineering, silica, garnet, information technology, education, healthcare, plantations, shipping, transportation, stevedoring, clearing and forwarding and logistics. The Company products include OPC43 Grade, OPC33 Grade, Super Garde, Sulphate Resistant Portland Cement and Portland Slag Cement. During the year ended March 31, 2011, the Company has disposed Windmill operations. For the nine months ended 31 December 2010, subject's revenue increased 13% to RS11.69B. Net income decreased 9% to RS762.1M. Revenue reflect an increase in income from power segment and higher income from cement segment. Net income was offset by an increase in power and fuel expenses, higher consumption of raw materials, an increase in depreciation expenses, higher employees cost and an increase in other expenditure.

BOARD OF DIRECTORS

Mr. M. A. M. Ramaswamy - Non-Executive Chairman of the Board

Dr. M.A.M. Ramaswamy is Non-Executive Chairman of the Board. He is Non-Executive Chairman of the Board of Prime Gaming Philippines, Inc.

M. A. M. R. Muthiah - Managing Director, Executive Director

Shri. M. A. M. R. Muthiah is Managing Director, Executive Director of subject. He is a B.E. Computer Science and Engineering graduate and is a key promoter of the company and is in the board of the Company for the past 13 years and has been the Managing Director of the Company Since 28th September, 1999.

Mr. Ramanathan Palaniappan - Non-Executive Independent Director

Shri. Ramanathan Palaniappan is Non-Executive Independent Director of subject. He is a Managing Director of Cafoma Auto Parts Private Limited and Director of Primachs Auto Components Private Limited, Pentagon Machines and Services Private Limited, Productivity Elements Private Limited, Cafoma Engine Components Private Limited.

Mr. SP. S. T. Palaniappan - Non-Executive Independent Director

Shri. SP.S. T. Palaniappan is Non-Executive Independent Director of subject. He is a Chartered Accountant and Director of Thulsi Spinnings Private Limited.

Dr. T. Prabhakara Rao - Director - Nominee of TIIC

Dr., Shri. T. Prabhakara Rao, I.A.S., has been appointed as Director - Nominee of TIIC of subject, with effect from August 09, 2011. He is Principal Secretary / Chairman and Managing Director of TIIC.

PRESS RELEASES

TRANSMISSION OF SHARES WITHIN PROMOTERS GROUP

29 August 2011

India, August 29 -- Chettinad Cement Corporation Limited has informed BSE that the 500 Equity Shares of Rs.10/- each which were standing in the name of (Late) Rani Lady Meyyammai Achi (one of the promoters of the Company) have been transmitted in to the name of Rani Meyyammai Achi of Chettinad Trust.Further the Company has informed that, there is no change in the overall promoters holding by virtue of this transmission.

CHANGE IN DIRECTORSHIP

17 August 2011

India, August 17 -- Chettinad Cement Corporation Limited has informed BSE that Sri. T. Prabhakara Rao, I.A.S. (Principal Secretary / Chairman and Managing Director of TIIC) has been Co-opted on the Board of the Company as the Nominee Director of TIIC, at the Board Meeting held on August 09, 2011, in the place of Smt. Sheela Rani Chunkath, I.A.S.

CHETTINAD CEMENT CORPORATION LTD. OUTCOME OF BOARD MEETING

Aug 09, 2011

Chettinad Cement Corporation Limited announced that the Board of Directors of the Company at its meeting held on August 09, 2011, have considered and accorded their in-principle approval for setting up of a Cement Grinding Unit with a capacity of 2 Million Tonnes per annum at Ahuj Village, South Solapur Taluka, Solapur District, Maharashtra State.

CHETTINAD CEMENT CORPORATION LTD. RECOMMENDS DIVIDEND

May 27, 2011

Chettinad Cement Corporation Limited announced that the Board of Directors have recommended a Dividend of INR5 per Equity Share, that is 50% on the Equity share capital of the Company, for the Financial year ended March 31, 2011.

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.51.39
UK Pound	1	Rs.80.20
Euro	1	Rs.68.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

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.