MIRA INFORM REPORT

Report Date :

27.12.2011

IDENTIFICATION DETAILS

Name :	GMMCO LIMITED
Registered Office :	9/1, R N Mukherjee Road, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.12.1966
Com. Reg. No.:	21-026980
Capital Investment / Paid-up Capital :	Rs.48.673 Millions
CIN No.: [Company Identification No.]	U35202WB1966PLC026980
TAN No.: [Tax Deduction & Collection Account No.]	CHEG00206D
PAN No.: [Permanent Account No.]	AABCG0949C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Marketing (Including Rental) of Earthmoving, Mining and Construction Equipments, Accessories and Spare Parts. Assembling and Marketing (Including Rental) of Engines and Generating Sets, Accessories and Spare Parts
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 15300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial Position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 Office :	9/1, R N Mukherjee Road, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-39181710
Fax No.:	91-33-39181706
E-Mail :	neical@vsnl.com
Website :	http://www.gmmco.in/GMMCO/
Regional Office / Rental Stores / Workshops :	6, GST Road, ST. Thomas Mount, Chennai – 600016, Tamilnadu, India
Tel. No.:	91-44-30686000
Fax No.:	91-44-30686330/ 40/ 50/ 60/ 70
Regional Offices :	Mumbai Maker Bhavan No. 2, 18, New Marine Line, 2^nd Floor, Mumbai – 400020, Maharashtra, India Tel No.: 91-22-22000728/ 22000729/ 22001512/ 22057411 Fax No.: 91-22-22053921 Goa Opposite Teen Building, 813, Alto Porvorim, Goa – 403521, India Tel No.: 91-832-3911822/ 832 Fax No.: 91-832-3911809 Bangalore 38/5, Coles Road, Frazer Town, Bangalore – 560005, Karnataka, India Tel No.: 91-80-25496391/ 92/ 93 Fax No.: 91-80-25496394 Ahmedabad 704, Sakar IV, Opposite Town Hall Ellisbridge, Ashram Road, Ahmedabad – 380006, Gujarat, India Tel No.: 91-79-30041600/ 01/ 02 Fax No.: 91-79-30041620
Regional Office / Rental Stores / Workshops :	Plot No. G – 15, MIDC, Industrial Area, Central Hingna Road, Nagpur – 440028, Maharashtra, India
Tel. No.:	91-7104-232601/ 02/ 03/ 04/ 05
Fax No.:	91-7104-237851
Branches :	Located at: Gandhidham, Rajkot, Bhavnagar, Vapi, Surat, Panvel, Pune, Hubli, Bijapur, Hospet, Anantpur, Mangalore, Mysore, Malappuram, Aluva, Cochin, Madurai, Tirunelveli, Nellur, Vijayawada, Bailadila, Chandrapur, Ranchi, Jabalpur

DIRECTORS

As on 07.07.2011

Name :

Mr. Manohar Lal Pachisia

Designation :

Director

Address :

8 / 12, Alipore Road, Kolkata - 700027, West Bengal, India

Date of Birth/Age :

06.11.1944

Date of Appointment :

20.11.1996

DIN No.:

00065431

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
L29130WB1946PLC013643	National Engineering Industries Limited	Director	21/03/1994	21/03/1994	-	Active	NO
U67190MP1901PLC000439	Gwalior Finance Corporation Limited	Director	27/05/1996	27/05/1996	-	Active	NO
U35202WB1966PLC026980	Gmmco Limited	Director	20/11/1996	20/11/1996	-	Active	NO
L21011OR1936PLC000117	Orient Paper and Industries Limited	Managing director	23/09/2008	23/09/1997	-	Active	NO
U51900WB1966PLC026949	Soorya Vanijya and Investments Limited	Director	16/10/1998	16/10/1998	-	Active	NO
U70109WB1946PLC014112	Birla Buildings Limited	Director	9/12/2002	9/12/2002	-	Active	NO
U72200DL1999PLC100410	Birlasoft Enterprises Limited	Director	21/12/2005	21/12/2005	-	Active	NO
U29130RJ1948PLC000583	National Bearing Company (Jaipur) Limited	Director	28/12/2005	28/12/2005	-	Active	NO
U74899DL1995PLC064560	Birlasoft (India) Limited	Director	7/07/2006	7/07/2006	-	Active	NO
U26940OR2011PLC013933	Orient Cement Limited	Director	22/07/2011	22/07/2011	-	Active	NO
U29299WB1960PLC024693	Special Engineering Services Limited	Director	30/08/2011	30/08/2011	-	Active	NO

Name :

Mr. Kashi Prasad Chaudhary

Designation :

Director

Address :

Flat No. 5, 9^th Floor, 3 - B Camac Street, Kolkata - 700016, West Bengal, India

Date of Birth/Age :

05.01.1941

Date of Appointment :

05.12.1997

DIN No.:

00369615

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
L65993WB1978PLC031357	Madhusudan Holdings Limited	Director	20/12/1978	20/12/1978	-	Active	NO
U14299WB1961PLC024975	India Silica Magnesite Works Limietd	Director	29/06/1981	29/06/1981	-	Active	NO
U67120RJ1949PLC000703	Produce and Share Brokers Limited	Director	29/06/1984	29/06/1984	-	Amalgamated	NO
U14219RJ1949PLC000700	Rajasthan Industries Limited	Director	30/01/1988	30/01/1988	-	Active	NO
U70200WB1989PLC046103	NEI Properties Limited	Director	1/02/1989	1/02/1989	-	Active	NO
U65910WB1990PLC099477	Birla Finance Limited	Director	12/09/1990	12/09/1990	-	Amalgamated	NO
U29130RJ1948PLC000583	National Bearing Company (Jaipur) Limited	Director	30/03/1992	30/03/1992	-	Active	NO
U35202WB1966PLC026980	Gmmco Limited	Director	5/12/1997	5/12/1997	-	Active	NO
U67120WB1946PLC013689	Ashok Investment Corporation Limited	Director	4/10/1999	4/10/1999	-	Active	NO
U15421WB1934PLC008026	Ranchi Enterprises and Properties Limited	Director	22/10/1999	22/10/1999	-	Active	NO
U65993WB1988PTC044393	Balsam Investment and Trading Company Private Limited	Director	29/06/2001	29/06/2001	-	Amalgamated	NO
L17119WB1935PLC046111	The Rameshwara Jute Mills Limited	Director	29/09/2005	29/09/2005	-	Active	NO

Name :

Mr. Jagdish Prasad Chhaochharia

Designation :

Director

Address :

6 C, Short Street, Kolkata - 700016, West Bengal, India

Date of Birth/Age :

26.11.1931

Date of Appointment :

08.02.2001

DIN No.:

00065287

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
U67190MP1901PLC000439	Gwalior Finance Corporation Limited	Director	3/11/1969	3/11/1969	-	Active	NO
L29130WB1946PLC013643	National Engineering Industries Limited	Director	28/12/1979	28/12/1979	-	Active	NO
U67120WB1946PLC013689	Ashok Investment Corporation Limited	Director	29/04/1984	29/04/1984	-	Active	NO
U52500WB1928PLC005895	Bengal Stores Limited	Director	22/09/1986	22/09/1986	-	Active	NO
U29130RJ1948PLC000583	National Bearing Company (Jaipur) Limited	Director	28/06/1994	28/06/1994	-	Active	NO
U51909WB1947PLC015860	Chhotanagpur General Trading Company Limited	Director	22/08/1994	22/08/1994	-	Amalgamated	NO
U21093WB1955PLC022651	Eastern India Services and Marketing Company Limited	Director	20/09/1999	20/09/1999	-	Active	NO
U35202WB1966PLC026980	Gmmco Limited	Director	8/02/2001	8/02/2001	-	Active	NO
L02710MP1938PLC000132	Central India Industries Limited	Whole-time director	1/04/2010	26/05/2003	-	Active	NO
U70101WB1932PLC007341	Basant Properties Limited	Director	15/06/2005	15/06/2005	-	Active	NO
U65191WB1935PLC008270	Jute Investment Company Limited	Director	28/09/2005	28/09/2005	-	Active	NO

Name :

Mr. Hariharan Jayaram

Designation :

Whole-time director

Address :

Flat No. 11, Greenpeace Suhassa S – Block, 86^th St Asjok Nagar, Chennai - 600083, Tamilnadu, India

Date of Birth/Age :

15.05.1956

Date of Appointment :

16.07.2007

DIN No.:

01019810

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
U35202WB1966PLC026980	Gmmco Limited	Whole-time director	1/01/2010	1/01/2007	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Satya Kam Bathwal
Designation :	Secretary
Address :	29 A, Ramkrishna Samadhi Road, Kankurgachi, Kolkata - 700054, West Bengal, India
Date of Birth/Age :	09.02.1956
Date of Appointment :	22.02.2000
PAN No.:	ADYPB2060Q

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 07.07.2011

Names of Shareholders	No. of Shares
Bank of Baroda	3
Bank of India	2
Central India Industries Limited	6750
Life Insurance Corporation of India Limited, India	165
Oriental Paper and Industries Limited, India	5775
Universal Trading Company Limited, India	2625100
Pilani Inv and Industries Corporation Limited, India	68249
Rachi Enterprises and Properties Limited, India	1230000
Basant Properties Limited, India	890000
Life Insurance Corporation of India Limited, India	9611
Pratap Singh Rakherha	4
Suman Murarka	146
Sew Kumar Thard	30
Ajay Kumar Dhadhania	35
Suresh Kumar Mahata	11
Shyamlal Parekh	10
Rajesh Jagooia	21
Shree Bajrang Jute Mills Limited, India	1
Ashoke Goenka	18

Equity Share Break up (Percentage of Total Equity)

As on 07.07.2011

Category	Percentage
Bodies corporate	99.73
Other top fifty shareholders	0.03
Others	0.04
Total	100.00

BUSINESS DETAILS

Line of Business :

Marketing (Including Rental) of Earthmoving, Mining and Construction Equipments, Accessories and Spare Parts. Assembling and Marketing (Including Rental) of Engines and Generating Sets, Accessories and Spare Parts

Products :

Item Code No. (ITC Code)	Product Description
84290000 / 87040000	Marketing (Including Rental) of Earthmoving, Mining and Construction Equipments, Accessories and Spare Parts
85020000	Assembling and Marketing (Including Rental) of Engines and Generating Sets, Accessories and Spare Parts
870300	Motor Vehicles for Passengers

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Diesel Generating Sets	Nos	N A	1200	1167

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Barclays Bank PLC, 20-21 Kamaraj Salai, Kanchipuram – 631501, Tamilnadu, India

· State Bank of Bikaner and Jaipur, Region II, Mumbai Zone, No.29, U.T.I House, Rajaji Salai, Chennai – 600001, Tamilnadu, India

· IDBI Bank Limited, 115, Anna Salai, Saidapet, Chennai – 600015, Tamilnadu, India

· Deutsche Bank AG, Global Banking Division, Kothari Building, 5^th Floor, 114, M. G. Road, Chennai – 600034, Tamil Nadu, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans bank secured	156.250	300.915
Rupee term loans others secured	33.851	33.851
Working Capital loans secured	564.740	145.784
Total	754.841	480.550
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Foreign currency loans	524.747	464.043
Total	524.747	464.043

NOTES :-

1-Cash Credit/Buyer's Credit Accounts are secured by hypothecation of Stocks, Book-debts and other Current Assets of the Company.

2-Term Loan from HDFC Bank amounting to Rs.156.250 Millions (Rs.293.750 Millions) is secured by way of First Charge by deposit of title deed of a part of the Company's immovable property at Chennai.

3-Other Secured Loan amounting to Rs.33.851 Millions (Previous year Rs.33.851 Millions) is secured against specific rental assets against which such credits have been obtained

Banking Relations :	--
Auditors :
Name :	Singh and Company Chartered Accountants
Address :	1, Philips Street, Chennai – 600001, Tamilnadu, India
PAN.:	AASFS9578D
Holding Company :	Universal Trading Company Limited (From Financial Year 2010-11)
Company having substantial interest in GMMCO (by virtue of having more than 20% voting rights) :	Ranchi Enterprises and Properties Limited
Firm in which the Company was a partner :	Metro Motors Auto Division (upto 31.05.2009)
Company in which GMMCO has substantial interest (by virtue of having more than 20% voting rights) :	Birla GTM Entrepose Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12500000	Equity Shares	Rs.10/- each	Rs.125.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4867275	Equity Shares	Rs.10/- each	Rs.48.673 Millions

1,28,075 Equity Shares (After Buyback) of Rs.10/- each allotted as fully paid up to the Share holders of erstwhile Hukumchand Jute and Industries Limited pursuant to the approved Scheme of Amalgamation without payment being received in cash.

46,65,200 Equity Shares (After Buyback) allotted as fully paid up Bonus Shares by capitalisation of General Reserve.

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		48.673	48.673	53.774
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3784.675	3110.534	2686.240
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3833.348	3159.207	2740.014
LOAN FUNDS
1] Secured Loans		754.841	480.550	686.043
2] Unsecured Loans		524.747	464.043	783.845
TOTAL BORROWING		1279.588	944.593	1469.888
DEFERRED TAX LIABILITIES		55.400	67.600	85.800
TOTAL		5168.336	4171.400	4295.702
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1731.111	1418.164	1531.609
Capital work-in-progress		27.750	24.547	1.954
INVESTMENT		55.603	360.644	81.827
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2463.660	1791.382	2511.504
	Sundry Debtors	1692.683	1124.555	1074.800
	Cash & Bank Balances	627.419	636.012	175.049
	Other Current Assets	356.503	135.392	130.926
	Loans & Advances	338.820	181.080	200.363
Total Current Assets		5479.085	3868.421	4092.642
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1744.032	1193.894	1110.743
	Current Liabilities	252.502	236.182	186.507
	Provisions	128.679	70.300	115.080
Total Current Liabilities		2125.213	1500.376	1412.330
Net Current Assets		3353.872	2368.045	2680.312
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5168.336	4171.400	4295.702

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	13702.336	10742.899	10623.918
		Other Income	145.021	123.121	149.908
		TOTAL (A)	13847.357	10866.020	10773.826
Less	EXPENSES
		Consumption materials changes inventories	10766.394	8064.627
		Manufacturing Service costs	126.817	107.935
		Employee related costs	654.023	521.573	9502.022
		Administrative selling other expenses	900.252	880.912
		Extra Ordinary Items	1.822	2.123
		TOTAL (B)	12449.308	9577.170	9502.022
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1398.049	1288.850	1271.804
Less	FINANCIAL EXPENSES (D)		33.649	69.904	103.862
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1364.400	1218.946	1167.942
Less/ Add	DEPRECIATION/ AMORTISATION (F)		182.741	187.130	184.172
	PROFIT BEFORE TAX (E-F) (G)		1181.659	1031.816	983.770
Less	TAX (H)		394.380	355.400	439.875
	PROFIT AFTER TAX (G-H) (I)		787.279	676.416	543.895
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		550.139	630.480	536.915
Less	APPROPRIATIONS
		Transfer to General Reserve	650.000	700.000	400.000
		Dividend	97.346	48.673	43.019
		Tax on Dividend	15.792	8.084	7.311
	BALANCE CARRIED TO THE B/S		574.280	550.139	630.480
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on F O B Basis (including sale of Rental Assets)	148.771	142.767	25.273
		Commission, Fees and Service Charges (Net)	287.806	259.110	391.660
		Warranty Receipts	156.086	157.580	113.225
		Reimbursement from Principals on other accounts	15.660	4.368	5.240
		Miscellaneous Receipts	0.000	0.040	0.085
	TOTAL EARNINGS		608.323	563.865	535.483
	IMPORTS
		Raw Materials	5.139	67.229	62.980
		Equipments, Engines, Stores & Spares	3958.167	2072.428	2385.112
		Capital Goods	65.079	34.771	159.684
	TOTAL IMPORTS		4028.385	2174.428	2607.776
	Earnings Per Share (Rs.)		161.74	138.97

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.68	6.22	5.05
Net Profit Margin (PBT/Sales)	(%)	8.62	9.49	9.26
Return on Total Assets (PBT/Total Assets)	(%)	16.39	26.67	17.49
Return on Investment (ROI) (PBT/Networth)		0.31	0.32	0.36
Debt Equity Ratio (Total Liability/Networth)		0.89	0.47	1.05
Current Ratio (Current Asset/Current Liability)		2.57	2.57	2.90

LOCAL AGENCY FURTHER INFORMATION

BUSINESS ACTIVITIES

The overall performance of the Company has been satisfactory. Sales of the company have increased to Rs.13370.000 Millions from Rs.10100.000 Millions (Growth of 32%). There has been a significant growth in the sale of construction machines particularly Backhoe loaders and 3 ton class loaders. However, there was a drop in sale of mining machines mainly due to some of the customers not completing sales formality and also due to constraint supply from Caterpillar. The MARC project for 22 Nos. 240 tons at South Eastern Coalfields Limited, has commenced first year of operations and progress has been very good moving towards a world class project. On the Engine business side, the sale of DG Sets registered a significant growth particularly on the higher ratings. While the Marine engine business was satisfactory, there was a drop in petroleum engine business due to lower demand. Rental and used equipment business was almost at the same level of previous year.

Some of the major orders received during the year include supply of 72 Nos. engines valued at around Rs.2250.000 Millions from L and T for their Coast Guard project, supply of 18 MW DG sets for Mumbai International Airport, 6 Nos. 850HP D11T Dozers valued about Rs.980.000 Millions from Coal India Limited and various orders for machines from major Road Contractors and ports etc. During the year, the company completed 25 years of fruitful association with Caterpillar.

While the Company's major business continues to be of Caterpillar products, satisfactory progress has been made in Sale of Perkins Products and other new product lines. The Dealership of SANY products was given up during the year. The company has recently taken dealership of a) Sennebogen, Germany for Crawler crane, harbor cranes and duty class cranes, b) Kroll, Denmark for heavy duty tower cranes.

The Company's division Motordrome, carrying on dealership of Mitsubishi Cars is not core business of the company and the company has incurred losses in the past, In view thereof, it has been decided to close the said division and sale the assets to a newly appointed dealer for sale of Mitsubishi Cars. This was approved at the Extra Ordinary General Meeting on 26th April, 2011 and the process has since been completed.

The Company's products are mainly catering to Infrastructure sector and with continuous thrust by Government on investment in this sector the future outlook of the company looks good.

FORM 8

Corporate identity number of the company	U35202WB1966PLC026980
Name of the company	GMMCO LIMITED
Address of the registered office or of the principal place of business in India of the company	9/1 R N Mukherjee Road, Kolkata – 700001, West Bengal, India Email Id : neical@vsnl.com
This form is for	Creation of charge
Type of charge	Book debts All other current assets
Particular of charge holder	Deutsche Bank AG, Global Banking Division, Kothari Building, 5^th Floor, 114, M. G. Road, Chennai – 600034, Tamil Nadu, India Email Id : rahul-p.jain@db.com
Nature of instrument creating charge	Deed of Hypothecation of Stocks and Book Debts dated 2.8.2011
Date of instrument Creating the charge	02.08.2011
Amount secured by the charge	Rs.150.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be mutually agreed upon Terms of repayment On demand Margin 25% over stocks and book debts Extent and operation of the charge First pari-passu charge on all current assets of the Company, both present and future
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All current assets of the Company located at various places

Contingent Liabilities not provided for- 2010-11

a) Against Bank Guarantees – Rs.956.369 Millions

b) Claims and Demands by various Government/Tax Authorities and others, not acknowledged as debts and contested by the Company (net) - Rs.2.622 Millions

c) Estimated value of Capital Commitments – Rs.3.794 Millions

d) Advance Paid – Rs.24.2286

Fixed Assets:

• Land
• Building
• Plant and Machinery
• Software
• Furniture and Fixture
• Office Equipments
• 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.52.82
UK Pound	1	Rs.82.47
Euro	1	Rs.68.93

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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	yes
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	no
--OTHER MERIT FACTORS	YES/NO	yes
TOTAL		60

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.