MIRA INFORM REPORT

Report Date :

13.12.2011

IDENTIFICATION DETAILS

Name :	KALYANI CARPENTER SPECIAL STEELS LIMITED
Registered Office :	72-76, Mundhwa, Pune-411036, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.07.1998
Com. Reg. No.:	11-12724
Capital Investment / Paid-up Capital :	Rs.300.420 Millions
CIN No.: [Company Identification No.]	U27105PN1998PLC012724
TAN No.: [Tax Deduction & Collection Account No.]	PNEK05230B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Alloy Steel.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 5000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having good track. Trade relations are fair. Business is active. Payments are reported as regular. The financials of the company appears to be good. The company can be considered good for normal business dealings under 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 :	72-76, Mundhwa, Pune-411036, Maharashtra, India
Tel. No.:	91-20-66215000 / 26824086
Fax No.:	91-20-26824483
E-Mail :	mktg@kcssl.com nitinbhat@kcssl.com birajdarr@kcssl.com prajakta.deshpande@kcssl.com
Website :	www.kalyanicarpenter.com
Head Office :	Plot No. 8-D, Door No. 5, 1st Floor, Balamurugan Nagar, Chitrai Veedhi, Alappakkam, Porur, Chennai – 600115, Tamilnadu, India
Tel. No.:	91 - 044 – 24760493
Fax No.:	91 - 044 – 24760493
Corporate Office :	Antriksh Bhavan, 14th Floor, 22, K.G. Marg, New Delhi – 110001, India
Tel. No.:	91 - 11 - 23730812
Fax No.:	91 - 11 - 23357083
Sales and Marketing Office:	Locate At: Pune Chennai New Delhi

DIRECTORS

As on 18.09.2010

Name :

Mr. Babasaheb Neelkanth Kalyani

Designation :

Director

Address :

221/ABCD, Kalyaninagar, Pune – 411 006, Maharashtra, India

Date of Birth/Age :

07.01.1949

Date of Appointment :

02.08.1999

DIN No.:

00089380

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
L27104MH1973PLC016350	Kalyani Steels Limited	Director	15/02/1984	15/02/1984	-	Active	NO
L15421PN1939PLC006738	The Ugar Sugar Works Limited	Director	31/01/1986	31/01/1986	19/03/2010	Active	NO
L24200MH1988PTC048028	Hikal Limited	Director	5/02/1992	5/02/1992	-	Active	NO
L25209PN1961PLC012046	Bharat Forge Limited	Managing director	30/03/2008	30/03/1993	-	Active	NO
U29303PN1996PLC096395	Kalyani Hayes Lemmerz Limited	Director	18/01/1996	18/01/1996	-	Active	NO
U91110PN1965NPL018870	Association Of Indian Forging Industry	Director	29/12/1997	29/12/1997	-	Active	NO
L51909KA1981PLC004198	Automotive Axles Limited	Director	5/03/1998	5/03/1998	-	Active	NO
U85110KA1996PLC019619	Nandi Infrastructure Corridor Enterprise Limited	Director	19/02/1999	19/02/1999	-	Active	NO
U29221KA1998PLC023383	Meritor HVS (India) Limited	Director	25/03/1999	25/03/1999	-	Active	NO
U27105PN1998PLC012724	Kalyani Carpenter Special Steels Limited	Whole-time director	2/08/2009	2/08/1999	-	Active	NO
U27106PN1998PTC012742	Carpenter Kalyani Special Alloys Private Limited	Director	2/08/1999	2/08/1999	24/12/2009	Active	NO
L40108PN2000PLC015323	BF Utilities Limited	Director	15/09/2000	15/09/2000	-	Active	NO
U72900MH2000PTC140702	Epicenter Technologies Private Limited	Director	6/10/2000	6/10/2000	-	Active	NO
U74999PN2003PLC018350	True Value Holdings Limited	Director	12/09/2003	12/09/2003	9/07/2010	Active	NO
U99999MH1956NPL009708	The Indo German Chamber of Commerce	Director	28/09/2005	28/09/2005	-	Active	NO
U85110KA2000PLC026939	Nandi Economic Corridor Enterprises Limited.	Director	30/09/2006	20/01/2006	-	Active	NO
U65991MH2002GOI137868	UTI Trustee Company Private Limited	Director	26/09/2006	27/03/2006	23/08/2011	Active	NO
U31909PN2006PLC129138	BF Systems Limited	Director	29/09/2006	29/09/2006	-	Strike off	NO
U45203PN2008PTC131242	Khed Economic Infrastructure Private Limited	Director	4/01/2008	4/01/2008	-	Active	NO
U70102PN2008PLC131478	Khed Developers Limited	Director	21/02/2008	21/02/2008	24/12/2009	Active	NO
U40102PN2007PTC130881	Kenersys India Private Limited	Nominee director	13/05/2008	13/05/2008	30/03/2009	Active	NO
U40106DL2008PLC179793	BF-NTPC Energy Systems Limited	Nominee director	19/06/2008	19/06/2008	-	Active	NO
L65993PN2009PLC134021	BF Investment Limited	Director	22/11/2010	26/05/2009	-	Active	NO
U29111DL2010FLC197807	ALSTOM Bharat Forge Power Limited	Director	8/01/2010	8/01/2010	-	Active	NO
U29128DL2010PLC197806	Kalyani ALSTOM Power Limited	Director	6/07/2011	8/01/2010	-	Active	NO
U45203PN2010PLC136755	BF Infrastructure Limited	Director	2/08/2011	5/07/2010	-	Active	NO
U35923PN2010PTC137191	Impact Automotive Solutions Private Limited	Director	25/08/2010	25/08/2010	-	Active	NO
U85100PN2011NPL141427	Institute For Prostate Cancer	Director	22/11/2011	22/11/2011	-	Active	NO

Name :

Mr. Charuchandra Ganesh Patankar

Designation :

Director

Address :

616, Sindh Housing Society, Aundh, Pune – 411 007, Maharashtra, India

Date of Birth/Age :

06.06.1956

Date of Appointment :

20.09.2008

DIN No.:

00136573

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U29141MH1979PLC020973	Kalyani Thermal Systems Limited	Director	7/12/1992	7/12/1992	-	Active	NO
U65993PN1983PLC029157	Chakrapani Investments and Trades Limited	Director	1/02/1993	1/02/1993	-	Amalgamated	NO
U65993PN1987PLC045156	Surajmukhi Investment and Finance Limited	Director	1/02/1993	1/02/1993	-	Amalgamated	NO
U70101PN1993PLC074993	Kalyani International Limited	Director	13/07/1995	13/07/1995	-	Active	NO
U65929PN1994PLC082854	Gladiolla Investments Limited	Director	15/06/1996	15/06/1996	-	Amalgamated	NO
U27100MH1988PLC049731	Kalyani Mukund Limited	Director	7/12/1996	7/12/1996	-	Active	NO
U85110KA1998PLC023759	Hospet Steels Limited	Director	20/05/1998	20/05/1998	-	Active	NO
U27106PN1998PTC012742	Carpenter Kalyani Special Alloys Private Limited	Director	1/03/1999	1/03/1999	22/06/2011	Active	NO
L27104MH1973PLC016350	Kalyani Steels Limited	Managing director	1/04/2009	27/07/1999	-	Active	NO
U23109WB2003PLC097375	Bharat NRE Coke Limited	Director	16/10/2004	16/10/2004	-	Active	NO
L17121MH1988PLC050197	Spice Island Apparels Limited	Director	30/01/2006	30/01/2006	-	Active	NO
U45200PN2005PTC021176	Grand Maratha Constructions Private Limited	Nominee director	13/10/2007	13/10/2007	24/02/2011	Active	NO
U27105PN1998PLC012724	Kalyani Carpenter Special Steels Limited	Director	20/09/2008	15/02/2008	22/06/2011	Active	NO
L65993PN2009PLC134196	Kalyani Investment Company Limited	Director	24/11/2010	16/09/2009	-	Active	NO

Name :

Mr. Sunil Yograj Widge

Designation :

Director

Address :

97, Fredericksville Road, Mertztown, US 19539

Date of Birth/Age :

18.09.1949

Date of Appointment :

20.09.2008

DIN No.:

01056289

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U27106PN1998PTC012742	Carpenter Kalyani Special Alloys Private Limited	Director	1/04/1999	1/04/1999	-	Active	NO
U27105PN1998PLC012724	Kalyani Carpenter Special Steels Limited	Director	20/09/2008	15/02/2008	-	Active	NO

Name :

Mr. Jaime Vasquez

Designation :

Director

Address :

17, Carmihne Dr. Sinking Spring PA, Pennasylvania, US 19608

Date of Birth/Age :

16.04.1962

Date of Appointment :

20.09.2008

DIN No.:

02073412

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U27105PN1998PLC012724	Kalyani Carpenter Special Steels Limited	Director	20/09/2008	15/02/2008	-	Active	NO
U27106PN1998PTC012742	Carpenter Kalyani Special Alloys Private Limited	Director	18/09/2010	15/02/2008	-	Active	NO

Name :

Mr. Madan Umakant Takale

Designation :

Additional Director

Address :

3 Archway Apartments, Plot No.1, Nilanjali Hsg Society, Kalyani Nagar, Pune – 411 006, Maharashtra, India

Date of Birth/Age :

18.08.1960

Date of Appointment :

26.02.2009

DIN No.:

01291287

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U65993PN1980PTC017813	Yusmarg Investment and Trading Private Limited	Director	6/12/1989	6/12/1989	7/01/2010	Active	NO
U65993PN1980PTC017814	Tangmarg Investment and Trading Company Private Limited	Director	6/12/1989	6/12/1989	7/01/2010	Active	NO
U65993MH1979PTC020902	Jannhavi Investment Private Limited	Director	6/12/1989	6/12/1989	7/01/2010	Active	NO
U51909PN1979PTC021628	Rajgad Trading Company Private Limited	Director	6/12/1989	6/12/1989	7/01/2010	Active	NO
U72200PN2000PLC014486	Tomtom India Limited	Director	29/09/2009	7/03/2000	12/11/2010	Active	NO
L27104MH1973PLC016350	Kalyani Steels Limited	Director	27/06/2006	27/06/2006	-	Active	NO
U74210MH1997PLC105730	Kalyani Infotech Solutions Limited	Director	12/07/2007	12/07/2007	-	Active	NO
U72200PN2008PLC132839	Kalyani Technologies Limited	Director	25/09/2008	25/09/2008	-	Active	NO
U27105PN1998PLC012724	Kalyani Carpenter Special Steels Limited	Director	18/09/2010	26/02/2009	-	Active	NO
L65993PN2009PLC134021	BF Investment Limited	Director	22/11/2010	5/03/2010	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Vaidehi Yeshwant Pathak
Designation :	Secretary
Address :	30/163, Apte Colony, Hingne Khurd, Sinhagad Road, Pune-411051, Maharashtra, India
Date of Appointment :	27.05.2010
PAN No.:	APKPP7442N
Name :	Mr. Shivkumar Tatti
Designation :	Senior Vice President – Operations and Projects
Name :	Mr. Kishor Mahadik
Designation :	Senior Vice President - Operation
Name :	Mr. Nitin Bhat
Designation :	Senior Vice President – Marketing and Sales
Name :	Dr. G. Balachandran
Designation :	Chief Technology Officer
Name :	Mr. V.B. Joshi
Designation :	Vice President - Human Resources
Name :	Mr. Mandhar Dhere
Designation :	Vice President - Steel Melting Shop
Name :	Mr. Sanjay Moghe
Designation :	Vice President - Materials
Name :	Mr. P. G. Sathye
Designation :	Vice President - Finance and Accounts
Name :	Mr. S. Shelke
Designation :	Vice President - Maintenance
Name :	Mr. R. Murali
Designation :	Vice President - Costing , Systems and MIS
Name :	Mr A. Y. Jadhav
Designation :	Management Representative

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.09.2010

Names of Shareholders	No. of Shares
Carpenter Technology Mauritius Limited, Mauritius	7810910
KSL Holdings Private Limited, India	22230548
BF Investment Limited, India	500
C.G. Patankar	1
B.B. Hattarki	1
D.R. Puranik	1
Anand Shirsat	1
Total	30041962

As on 18.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	26.00
Bodies corporate	74.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Alloy Steel.

Products :

Product Description	Items Code
Alloy Bars and Roads	7228-30
Non Alloy Bars and Roads	7215-90
Non Alloy Ingots	7206-90

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Ingot Blooms	M.T	200000	180000	148123
Billets and Bars	M.T	200000	180000	126481
Wire Roads and Bars	M.T	50000	4000	2005

GENERAL INFORMATION

Customers :

· Caterprillar USA

· DANA Corporation USA

· Detroit Diesel USA

· Daimler Chrysler Germany

· MAN Germany

· Bharat Forge

· Tata Motors

· Ashok Leyland

· Rane Engines Valves

· Siemens

· Toyota Motors

· Weather Ford

· L and T

· AUDCO

· Cummins

No. of Employees :

Not Available

Bankers :

· IDBI Bank Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

· Bank of Baroda – Lead Bank, Corporate Financial Services Branch, Mantri Court, 39 Ambedkar Road, Pune – 411 001, Maharashtra, India

· Axis Bank Limited

· ICICI Bank Limited

· Canara Bank, Prime Corporate Branch, M.G. Road, Red Cross Building, Camp, Pune-411001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Foreign Currency Term Loan
From Canara Bank	266.204	0.000
From IDBI Bank Limited (For security)	304.639	559.559
From ICICI Bank Limited (For Security)	0.000	25.000
From Bank of Baroda (For security )	22.500	52.500
Interest Accrued and due	0.000	6.197
Others
Cash Credit
Working Capital Demand Loans	39.922	510.068
Short Term Loans from Banks under a Buyers’ line of credit for import of goods	100.000	300.000
Short Term Loans from Banks under a Buyers’ line of credit for import of goods	175.722	199.596
Total	908.987	1652.920
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Sales tax deferral liability/ loan under government of Maharashtra package scheme of incentives	5.875	4.664
Loan from companies
In foreign currency US $ 1 Millions	45.440	0.000
Rupee loan	150.000	0.000
Total	201.315	4.664

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountant
Address :	252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai-400028, Maharashtra, India
Tel No.:	91-22-66691000
Fax No.:	91-22-66547800/66547801
Holding Company:	KSL Holing Private Limited (U65993PN2001PTC015938)
Controlling Company and Companies Under Common Control:	· Carpenter Technology Mauritius Limited · Carpenter Technology Corporation · Tally Metals Technology Inc. · Tally Industries Inc. · Carpenter Technology Asia Pacific Pte. Limited · Aceros Fortuna · CRS Holdings Inc. · Carpenter Technology (Europe) S.A

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
35000000	Equity Shares	Rs.10/- each	Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30041962	Equity Shares	Rs.10/- each	Rs.300.420 Millions

Note:

Of the above shares 22,230,552 Equity shares of Rs.10/- each are held by KSL Holdings Private Limited, the Holding Company. 7,810,910 Equity shares of Rs.10/- each are held by Carpenter Technology Mauritius Limited, issued and allotted at a premium of Rs.45/- each on April 1, 1999

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		300.420	300.420	300.420
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		953.549	825.055	858.076
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1253.969	1125.475	1158.496
LOAN FUNDS
1] Secured Loans		908.987	1652.920	981.354
2] Unsecured Loans		201.315	4.664	4.407
TOTAL BORROWING		1110.302	1657.584	985.761
DEFERRED TAX LIABILITIES		194.146	165.700	130.523
TOTAL		2558.417	2948.759	2274.780
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1621.153	1687.578	1021.924
Capital work-in-progress		12.613	59.392	192.735
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
TECHNICAL KNOW HOW		49.578	51.999	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	608.443	988.392	967.019
	Sundry Debtors	1499.013	1159.585	1333.163
	Cash & Bank Balances	33.018	10.017	81.066
	Other Current Assets	123.130	164.724	28.286
	Loans & Advances	248.819	340.696	698.632
Total Current Assets		2512.423	2663.414	3108.166
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1007.514	842.688
	Other Current Liabilities	468.355	449.159	1593.825
	Provisions	161.481	242.342	495.350
Total Current Liabilities		1637.350	1534.189	2089.175
Net Current Assets		875.073	1129.225	1018.991
MISCELLANEOUS EXPENSES		0.000	20.565	41.130
TOTAL		2558.417	2948.759	2274.780

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	7271.889	7533.855	6685.826
		Job Work Receipts	33.979	56.487	85.376
		Refund of Regulatory Liability Charges	0.000	138.503	0.000
		Refund of Incremental Additional Supply Charges	28.827	24.027	0.000
		Other Income	23.954	10.944	7.913
		TOTAL (A)	7358.649	7763.816	6779.115
Less	EXPENSES
		Materials consumed and Manufacturing expenses	6367.001	6958.050	5912.311
		Employees emoluments	307.159	281.111	256.781
		Other expenses	398.480	425.028	296.254
		TOTAL (B)	7072.640	7664.189	6465.346
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		286.009	99.627	313.769
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		286.009	99.627	313.769
Less/ Add	DEPRECIATION AMORTISATION (F)		124.561	94.218	73.403
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		161.448	5.409	240.366
Less	TAX (H)		28.546	37.057	83.708
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		132.902	(31.648)	156.658
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		397.069	431.780	343.546
Less	APPROPRIATIONS
		Excess / (Short) Provision for Taxation Expenses	4.408	3.063	0.041
		Transfer to General Reserve	0.000	0.000	15.662
		Proposed Dividend	0.000	0.000	45.063
		Tax on Dividend	0.000	0.000	7.658
	BALANCE CARRIED TO THE B/S		525.563	397.069	431.780
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	3.875	10.062
		Insurance and Freight on Exports	0.000	0.312	0.426
	TOTAL EARNINGS		0.000	4.187	10.488
	IMPORTS
		Raw Materials	408.701	824.747	296.016
		Capital Goods	0.000	14.157	4.430
	TOTAL IMPORTS		408.701	838.904	300.446
	Earnings/ (Loss) Per Share (Rs.)		4.28	(1.16)	5.21

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.81	(0.41)	2.31
Net Profit Margin (PBT/Sales)	(%)	2.22	0.07	3.60
Return on Total Assets (PBT/Total Assets}	(%)	3.90	0.12	5.82
Return on Investment (ROI) (PBT/Networth)		0.13	0.00	0.21
Debt Equity Ratio (Total Liability/Networth)		2.19	2.84	2.65
Current Ratio (Current Asset/Current Liability)		1.53	1.74	1.49

LOCAL AGENCY FURTHER INFORMATION

Financial Results:

During the financial year 2009-10, Sales tonnage at 149,641 MT was higher by 11.8% over previous year. As a result of improved market conditions in the second half of the financial year.

Turnover of the company in value terms however is marginally lower by 3.89% due to reduction in sales prices, in tandem to drop in material costs. Turnover dropped by Rs.284.470 Million to Rs.7306.270 Million the Company believes that costs have to be continuously brought down while improving the product quality. Towards this, several initiatives have been taken towards improvement in yields, reduction in oil consumption and reduction in metallic cost. Financial costs have reduced by Rs.51.300 Millions during the year with better inventory management and timely realization of receivables.

FORM 8

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10216336
Corporate identity number of the company	U27105PN1998PLC012724
Name of the company	KALYANI CARPENTER SPECIAL STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	72-76, Mundhwa, Pune-411036, Maharashtra, India
Type of charge	Immovable Property Any Interest in Immovable Property
Particular of charge holder	Canara Bank, Prime Corporate Branch, M.G. Road, Red Cross Building, Camp, Pune-411001, Maharashtra, India
Email	pne25551@canbank.co.in
Nature of description of the instrument creating or modifying the charge	No Instrument Was Executed. A Declaration Dated September,23rd 2010 Was Signed By The Authorised Director of The Company A Letter Received From ICICI Bank Dated September, 29th 2010
Date of instrument Creating the charge	23.09.2010
Amount secured by the charge	Rs.454.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest LIBOR+400 bps. To be reset at every six months, with a option to convert the same into INR @ ROI=BPLR-2% p. a. Terms of Repayment In three years Extent and Operation of the charge The mortgage created by the company shall be as security for the due repayment of the term loan of USD 10.00 Million equivalent to about Rs.454.600 millions together with all interest and other monies payable by the company under the Loan Agreement dated April, 06, 2010
Short particulars of the property charged	All that piece and parcels of leasehold land known as Plot No.B-5 area admeasuring 25542 sq. meters within Ranjangaon Industrial Area, Dhoksangvi Village, District Pune, Maharashtra, India
Particulars of the present modification	By way of first modification to the hypothecation dated April 06, 2010, a mortgage by deposit of title deeds on the leasehold property situated at Plot No.B-5, area admeasuring 25542 sq. meters within Ranjangaon Industrial Area, Dhoksangvi Village, District Pune, Maharashtra together with all building and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth was created on September 23, 2010

Contingent Liabilities not provided for in respect of (As on 31.03.2010) :

(a) Sales Bills Discounted – Rs.85.286 Millions

Since realized – Rs.74.143

(b) Claims against the Company not acknowledged as debts – Rs.13.091 Millions

(c) Excise demands – matter under disputes – Rs.2.789 Millions

FIXED ASSETS

• Leasehold Land
• Building
• Plant and Machinery
• Electrical Installation
• Furniture and Fixtures
• Vehicles

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.52.42
UK Pound	1	Rs.81.92
Euro	1	Rs.69.94

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	3
--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	NO
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.