MIRA INFORM REPORT

Report Date :

23.12.2011

IDENTIFICATION DETAILS

Name :	DHANUKA LABORATORIES LIMITED
Formerly Known As :	DHANUKA LABORATORIES PRIVATE LIMITED
Registered Office :	861-862, Joshi Road, Karol Bagh, New Delhi – 110 005
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.02.1993
Com. Reg. No.:	55-52285
Capital Investment / Paid-up Capital :	Rs.49.900 millions
CIN No.: [Company Identification No.]	U24100DL1993PLC052285
TAN No.: [Tax Deduction & Collection Account No.]	DELD04043E
PAN No.: [Permanent Account No.]	AAACD2877R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Exporters of Pharma Bulk Drugs and Intermediates.
No. of Employees :	Not Available

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 880000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well 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 – 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/Head/Corporate Office :	861-862, Joshi Road, Karol Bagh, New Delhi – 110 005, India
Tel. No.:	91-11-30511500 (30 Lines) / 23518981 / 23518982 / 85 / 23518983 / 23519461-63 / 23518925 / 27534112 / 23518981 / 2 / 3
Fax No.:	91-11-23516750/ 23518981 / 124-3838888
E-Mail :	dhanuka@bol.net.in dhanuka@vsnl.com manishdhanuka@dhanuka.com headoffice@dhanuka.com clientsgga@rediffmail.com investors@dhanuka.com dhanukaggn@sify.com dll@dhanuka.com dllaccounts@dhanuka.com
Website :	http://www.dhanuka.com
Location :	Commercial
Factory/ Warehouse :	7^th KM, Old Manesar Road, Village, Mohammedpur, Gurgaon – 122 001, Haryana, India
Tel. No.:	91-124-2371884/ 2372715 / 2373845 / 6
Fax No.:	91-124-2371931
Area :	3000 sq. meters
Location:	Owned Industrial

DIRECTORS

As on 30.09.2011

Name :	Mr. Manish Dhanuka
Designation :	Managing Director
Address :	4/31-B, Rajpur Road, Civil Lines, Delhi – 110 054, India
Date of Birth/Age :	28.09.1967
Qualification :	M. Tech
Date of Appointment :	30.12.1994
DIN No.:	00238798

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1990PTC040509	Duke Impex Private Limited	Director	15-06-90	15-06-90	Active	NO
2	U24100DL1993PLC052285	Dhanuka Laboratories Limited	Managing director	01-03-09	24-02-93	Active	NO
3	U24239DL2006PTC144368	Otsuka Chemical (India) Private Limited	Director	02-01-06	02-01-06	Active	NO
4	U74899DL1984PTC029568	Cosmo Components Private Limited	Director	13-02-07	13-02-07	Active	NO

Name :	Mr. Arun Kumar Dhanuka
Designation :	Director
Address :	4/31-B, Rajpur Road, Civil Lines, Delhi – 110 054, India
Date of Birth/Age :	14.05.1957
Qualification :	Commerce Graduate
Date of Appointment :	30.12.1994
DIN No.:	00627425

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1960PLC003276	Northern Minerals Limited	Whole-time director	08-08-80	08-08-80	Amalgamated	NO
2	U74899DL1987PTC029586	Growth Advertising And Marketing Private Limited	Director	17-05-90	17-05-90	Active	NO
3	U24100DL1993PLC052285	Dhanuka Laboratories Limited	Director	24-02-93	24-02-93	Active	NO
4	U74899DL1990PTC040509	Duke Impex Private Limited	Director	13-02-07	13-02-07	Active	NO
5	L24219DL1985PLC020126	Dhanuka Agritech Limited	Whole-time director	01-08-08	23-05-07	Active	NO

Name :	Mrs. Seema Dhanuka
Designation :	Director
Address :	4/31-B, Rajpur Road, Civil Lines, Delhi – 110 054, India
Date of Birth/Age :	26.05.1969
Qualification :	Commerce Graduate
Date of Appointment :	21.09.1996
DIN No.:	00455088

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24100DL1993PLC052285	Dhanuka Laboratories Limited	Director	21-09-96	21-09-96	Active	NO
2	U74899DL1984PTC018862	Liberty Sales Private Limited	Director	13-02-07	13-02-07	Active	NO

Name :	Mr. Mahendra Kumar Dhanuka
Designation :	Director
Address :	95-B, E-2, Lane, Eastern Avenue, Sainik Farms, New Delhi – 110 062, India
Date of Birth/Age :	14.12.1954
Qualification :	Commerce Graduate
Date of Appointment :	02.03.1999
DIN No.:	00628039

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L24219DL1985PLC020126	Dhanuka Agritech Limited	Managing director	14-08-09	13-02-85	Active	NO
2	U24100DL1993PLC052285	Dhanuka Laboratories Limited	Director	02-03-99	02-03-99	Active	NO
3	U51109DL2004PTC128122	Golden Overseas Private Limited	Director	05-12-05	05-12-05	Active	NO
4	U74994DL2006PTC147162	Madhuri Designs-N-Exports Private Limited	Director	06-03-06	06-03-06	Active	NO
5	U72200DL2006PTC147749	Dhanuka Infotech Private Limited	Director	20-03-06	20-03-06	Active	NO
6	U70101DL2005PTC135106	M D Buildtech Private Limited	Director	30-09-10	04-09-10	Active	NO

Name :	Mr. Rahul Kumar Dhanuka
Designation :	Director
Address :	95-A, E-2, Lane, Eastern Avenue, Sainik Farms, New Delhi – 110 062, India
Date of Birth/Age :	04.04.1975
Qualification :	MBA
Date of Appointment :	02.03.1999
DIN No.:	00150140

Other Directorship

S.No.	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
1	U74899DL1960PLC003276	Northern Minerals Limited	Whole-time director	11-12-95	11-12-95	-	Amalgamated	NO
2	L65921DL1984PLC018746	Exclusive Leasing and Finance Limited	Director	20-01-99	20-01-99	29-03-11	Active	NO
3	U24100DL1993PLC052285	Dhanuka Laboratories Limited	Director	02-03-99	02-03-99	-	Active	NO
4	L24219DL1985PLC020126	Dhanuka Agritech Limited	Whole-time director	23-05-07	28-01-02	-	Active	NO
5	U70101DL2005PTC135106	M D Buildtech Private Limited	Director	20-04-05	20-04-05	04-09-10	Active	NO
6	U51109DL2004PTC128122	Golden Overseas Private Limited	Director	05-12-05	05-12-05	-	Active	NO
7	U72200DL2006PTC147749	Dhanuka Infotech Private Limited	Director	20-03-06	20-03-06	04-09-10	Active	NO

Name :	Mr. Mridul Dhanuka
Designation :	Director
Address :	95-B, E-2, Lane, Eastern Avenue, Sainik Farms, New Delhi – 110 062, India
Date of Birth/Age :	20.10.1980
Qualification :	B Tech, MBA
Date of Appointment :	06.10.2005
DIN No.:	00199441

Other Directorship

S.No.	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
1	U70101DL2005PTC135106	M D Buildtech Private Limited	Director	20-04-05	20-04-05	-	Active	NO
2	U24100DL1993PLC052285	Dhanuka Laboratories Limited	Director	06-10-05	06-10-05	-	Active	NO
3	U24239DL2006PTC144368	Otsuka Chemical (India) Private Limited	Director	02-01-06	02-01-06	-	Active	NO
4	U74899DL1960PLC003276	Northern Minerals Limited	Whole-time director	15-03-07	15-03-07	-	Amalgamated	NO
5	L34300DL1985PLC021785	Hindon Mercantile Limited	Director	07-09-10	16-12-09	25-03-11	Active	NO
6	L65921DL1984PLC018746	Exclusive Leasing and Finance Limited	Director	10-09-10	17-12-09	23-05-11	Active	NO
7	U72200DL2006PTC147749	Dhanuka Infotech Private Limited	Director	30-09-10	04-09-10	-	Active	NO
8	L24219DL1985PLC020126	Dhanuka Agritech Limited	Whole-time director	29-07-11	23-05-11	-	Active	NO

Name :	Mrs. Urmila Dhanuka
Designation :	Director
Address :	95-A, E-2, Lane, Eastern Avenue, Sainik Farms, New Delhi – 110 062, India
Date of Birth/Age :	15.08.1951
Qualification :	Graduate
Date of Appointment :	24.10.2001
DIN No.:	01252045
Name :	Mr. Arjun Dhanuka
Designation :	Director
Address :	4/31-B, Rajpur Road, Civil Lines, Delhi – 110 054, India
Date of Birth/Age :	10.03.1988
Qualification :	Commerce Graduate
Date of Appointment :	18.08.2008
DIN No.:	00454689

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1984PTC018862	Liberty Sales Private Limited	Director	13-02-07	13-02-07	Active	NO
2	U24100DL1993PLC052285	Dhanuka Laboratories Limited	Whole-time director	28-09-10	18-08-08	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Arun Kumar Dhanuka	43750
Manish Dhanuka	15640
Mamta Dhanuka	49190
Seema Dhanuka	3700
Arun Kumar Dhanuka (HUF)	1000
Duke Impex Private Limited, India	9850
Growth Advertising and Marketing Private Limited , India	9750
Cosmo Components Private Limited , India	10200
Late Gobind Lal Dhanuka (HUF)	10000
Liberty Sales Private Limited, India	12250
Pushpa Dhanuka	57510
Manish Dhanuka (HUF)	3850
Exclusive Leasing and Finance Limited, India	10200
Hindon Mercantile Limited, India	20300
Mridul Dhanuka	1000
Reema Khowala	1000
Rahul Dhanuka	23100
Ram Gopal Agarwal	14250
Mahendra Kumar Dhanuka	17250
Zoom Leasing and Finance Company Limited, India	24800
Megha Chripal	1700
Vimal Shorewala	10
Sikkim Agro Industrial Limited, India	13500
Harsh Dhanuka	15000
Uma Dhanuka	33500
Versha Dhanuka	1100
M.K. Dhanuka (HUF)	4400
R.G. Aggarwak (HUF)	12000
Rahul Dhanuka (HUF)	2000
Golden Overseas Limited , India	22200
Mridul Dhanuka (HUF)	10000
Urmila Dhanuka	15000
Arjun Dhanuka	20000
Harsh Dhanuka (HUF)	10000
Total	499000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	26.66
Directors or relatives of directors	73.34
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Pharma Bulk Drugs and Intermediates.

Products :

Product Description	Item Code
Bulk Drugs	29419090

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Bulk Drugs and Intermediates	Kgs.	157778
Others	Kgs.	154580

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited

First Floor, Kailash Building, 26, K G Marg, New Delhi – 110 001, India

· Indusind Bank Limited

Dr. Gopal Das Building, 28, Barakhamba Road, New Delhi – 110 001, India

· Barclays Bank PLC

Ground Floor, Eros Corporate Tower, Nehru Place, New Delhi – 110 019, India

· Indusind Bank Limited

Nehru Place Branch, International Trade Centre, F Block, Ground Floor, Nehru Place, New Delhi – 110 019, India

· Centurion Bank of Punjab Limited

Gurudwara Road, Karol Bagh, New Delhi, India

· ICICI Bank

Sector 14, Gurgaon, Haryana, India

· ICICI Bank Limited

Landmark Race Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India

· Corporation Bank

Industrial Finance Branch, 1^st Floor, 16/10, Main Arya Samaj Road, Karol Bagh, New Delhi – 110 001, India

· State Bank of Hyderabad

Scope Complex., Lodhi Road, New Delhi, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	72.716	47.768
Working capital loans banks secured	102.212	136.234
Deposits secured	95.503	60.239
Other debt secured	29.614	0.808
Total	300.045	245.049

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Fixed deposits unsecured	0.000	37.675
Other debt unsecured	248.071	137.461
Interest accrued due other debt unsecured	0.000	2.265
Total	248.071	177.401

Banking Relations :	--
Financial Institution:	3i Infotech Trusteeship Services Limited, 3^rd to 6^th Floor, International Infotech Park, Tower No. 5, Vashi Railway Station Complex, Vashi, Navi Mumbai-400703, Maharashtra, India
Auditors :
Name :	Goyal Malhotra and Associates Chartered Accountants
Address :	307, Ocean Plaza, Sector – 18, Noida – 201 301, Uttar Pradesh, India
Tel. No.:	91-120-2510511 / 2514317 / 4261900
Fax No.:	91-120-2514317
E-Mail :	mail@goyalmalhotra.com
PAN No.:	AAKFA1724D
Enterprises over which key management personnel and their relatives have significant influence:	· Dhanuka Agritech Limited · Growth Advertising and Marketing Private Limited · Liberty Sales Private Limited · Duke Impex Private Limited · Cosmo Components Private Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
499000	Equity Shares	Rs.100/- each	Rs.49.900 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		49.900	49.900	43.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		169.764	148.800	107.145
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		219.664	198.700	151.045
LOAN FUNDS
1] Secured Loans		300.045	245.049	289.698
2] Unsecured Loans		248.071	177.401	222.206
TOTAL BORROWING		548.116	422.450	511.904
DEFERRED TAX LIABILITIES		44.515	41.751	31.011
TOTAL		812.295	662.901	693.960
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		350.685	292.829	295.664
Capital work-in-progress		5.904	0.000	0.000
INVESTMENT		101.500	101.500	101.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	247.671	176.178	180.551
	Sundry Debtors	421.194	363.849	317.356
	Cash & Bank Balances	55.994	34.145	32.836
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	93.437	59.548	44.062
Total Current Assets		818.296	633.720	574.805
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	437.114	338.782	260.681
	Other Current Liabilities	16.050	11.477	14.577
	Provisions	10.926	14.889	2.751
Total Current Liabilities		464.090	365.148	278.009
Net Current Assets		354.206	268.572	296.796
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		812.295	662.901	693.960

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating Revenue, net	1589.307	1528.832	1137.305
		Other Income	15.784	19.593	2.518
		TOTAL (A)	1605.091	1548.425	1139.823
Less	EXPENSES
		Consumption materials changes inventories	1286.924	1216.542	1071.936
		Manufacturing Service costs	127.790	123.679
		Employee related expenses	46.442	35.745
		Administrative selling and other Expenses	46.488	44.734
		TOTAL (B)	1507.644	1420.700	1071.936
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		97.447	127.725	67.887
Less	INTEREST FINANCIAL CHARGES (D)		49.879	46.759	50.360
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.568	80.966	17.527
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.500	16.417	14.046
	PROFIT BEFORE TAX (E-F) (G)		30.068	64.549	3.481
Less	TAX (H)		9.104	22.894	1.824
	PROFIT AFTER TAX (G-H) (I)		20.964	41.655	1.657
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		86.063	44.408	42.751
	BALANCE CARRIED TO THE B/S		107.027	86.063	44.408
	EARNINGS IN FOREIGN CURRENCY		282.754	336.881	288.009
	IMPORTS
	Raw Material		704.092	537.376	531.520
	Components		0.267	0.049	0.000
	Capital Goods		1.033	1.117	3.061
	TOTAL		705.392	538.542	534.581
	Earnings Per Share (Rs.)		42.01	94.32	3.77

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.31	2.69	0.15
Net Profit Margin (PBT/Sales)	(%)	1.89	4.22	0.31
Return on Total Assets (PBT/Total Assets}	(%)	2.57	6.97	0.40
Return on Investment (ROI) (PBT/Networth)		0.14	0.32	0.02
Debt Equity Ratio (Total Liability/Networth)		4.61	3.96	5.23
Current Ratio (Current Asset/Current Liability)		1.76	1.74	2.07

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The Company has been able to surpass the target and achieved a turnover of Rs.1715.591 millions. During this period, the Company has exported goods worth Rs.282.754 millions. The net profit during this period was Rs.20.964 millions after providing for Interest, Income Tax and Depreciation. The provision for income tax amounting to Rs.6.400 millions has been made. A provision of Rs.2.763 millions for deferred tax liability has also been made.

The Company continues to maintain its strength in third and fourth generation Cephalosporin Active Pharmaceutical Ingredients and its intermediates. The Company has continued to enjoy the patronization of topmost and most prestigious Pharma Companies in the country due to its consistency and good quality. The Company has continued to achieve a significant market share in Cephalosporin production in the country. The Financial Year 2010-2011 was a very turbulent year with respect to the Cephalosporin industry due to creation of large capacities in India and also, due to excess capacity in raw materials like 7ACA and GCLE in China. As a result of this, the raw material prices see-sawed during the year having an adverse effect on the Company's profitability, despite the Company's best efforts to work on low inventory levels. However, it is important to note that despite the stiff competition, the Company continues to grow in all the products and maintain its strong presence in the segment.

FUTURE PROSPECTS

The Company is further putting efforts in R and D to develop two new products - one of which Cefditoren Pivoxil should be launched during the current Financial Year. The Company will now focus on marketing new products and try to reach new markets. This should significantly improve Company’s turnover in next two years. The Company has been able to make a breakthrough in Turkey by supplying Cefaclor to one of the largest buyers in Turkey. It is hopeful of increasing its presence in the Turkish market through constant efforts in the future.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

Particulars	As on 31.03.2011 Rs. in millions
Income Tax Demand Pending in Appeal	Nil
C Form Liability	21.394
Service Tax Liability (Pending in Appeal)	0.910

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	10174226
Corporate identity number of the company	U24100DL1993PLC052285
Name of the company	DHANUKA LABORATORIES LIMITED
Address of the registered office or of the principal place of business in India of the company	861-862, Joshi Road, Karol Bagh, New Delhi – 110 005, India
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	HDFC Bank Limited First Floor, Kailash Building, 26, K G Marg, New Delhi – 110 001, India E-Mail : kanwald.singh@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Supplemental letter of hypothecation of stocks, book debts and machinery made on 16.11.2011 for revised the existing limits (Rs. in Million) FACILITY Existing Limits Revised Limits Fund based and non fund based facilities 80.000 100.000 Total 80.000 100.000
Date of instrument Creating the charge	16.11.2011
Amount secured by the charge	Rs.100.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest As per terms and conditions decided by the parties Terms of repayment As per terms and conditions decided by the parties Margin As per terms and conditions decided by the parties Extent and operation of the charge As per terms and conditions decided by the parties
Short particulars of the property charged	· First Pari Passu Charge on Current Assets of the company both present and future. · Second Pari Passu Charge on entire Movable Fixed Assets of the company both Present and future.
Particulars of the present modification	Revised of fund based and non fund based facilities enhanced from existing Rs.80.000 millions to Rs.100.000 millions.

FIXED ASSETS

· Air conditioner

· Building

· Cellular Phone

· Computer

· Electric Equipments

· Fire Fighting

· Furniture and Fixture

· Laboratories Equipments

· Land

· Office Equipment

· Plant and machinery

· Steel Structure

· Vehicles

· Commercial 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.52.78
UK Pound	1	Rs.82.73
Euro	1	Rs.68.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--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.