MIRA INFORM REPORT

Report Date :

25.02.2011

IDENTIFICATION DETAILS

Name :	ALICON CASTALLOY LIMITED (w.e.f. 28.01.2011)

Formerly Known as:	ENKEI CASTALLOY LIMITED

Registered Office :	Survey No.1426, Village Shikrapur, Taluka – Shirur, Pune-412 208, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	19.12.1990

Com. Reg. No.:	11-59487

CIN No.: [Company Identification No.]	L99999MH1990PLC059487

TAN No.: [Tax Deduction & Collection Account No.]	PNEE01509E

PAN No.: [Permanent Account No.]	AABCP0252B

Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on Stock Exchanges.

Line of Business :	Manufacturer of aluminum alloy die casting, by Gravity and Low Pressure Techniques, mainly catering to automobile industry

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 2200000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established and reputed company having fine track. Trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long-run.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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

INFORMATION DECLINED BY

Name :	Mr. Ranjit
Designation :	Finance Department
Contact No.:	91-2137-677100
Date :	24.02.2011

LOCATIONS

Registered Office :	Survey No.1426, Village Shikrapur, Taluka – Shirur, Pune-412 208, Maharashtra, India
Tel. No.:	91-2137-677100
Fax No.:	91-2137-677130 / 72643
E-Mail :	ecl@enkeicastalloy.co.in s.rai@atlasauto.com kuroda@enkeicastalloy.co.in d.mahajan@enkeicastalloy.co.in rsikand@enkeicastalloy.co.in
Website :	http://www.enkelcastalloy.co.in

Factory :	57-58Km Stone, Delhi, Jaipur, NH-8, Industrial Area, Village Binola, Haryana, India

DIRECTORS

As on 31.03.2010

Name :	Mr. Shailendrajit C. Rai
Designation :	Managing Director
Address:	40-A, Mewar Peddar Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age:	01.02.1956
Date of Appointment:	14.07.1994

Name :	Mr. Junichi Suzuki
Designation :	Director
Address:	5-27-18, Sanarudai Hamatsu City, Shizuoka – Pref 432-802, Japan
Date of Birth/Age:	25.01.1948
Date of Appointment:	29.10.2002

Name :	Mr. Tetsuro Masui
Designation :	Director
Address:	703, Harmonaia Shinmachi 181 Shinmachi, Hamamatsu, Shizuoka 430-0921, Japan
Date of Birth/Age:	25.01.1948
Date of Appointment:	29.10.2002

Name :	Mr. Asis Roy
Designation :	Director
Address:	A/1/602, Land Mark, 78 Kalyani Nagar, Pune – 411006, Maharashtra, India
Date of Birth/Age:	25.12.1952
Date of Appointment:	30.04.2004

Name :	Mr. Anil. D. Harolikar
Designation :	Director
Address:	242-2673, Rajanigandha Pant Nagar, Ghatkoper East, Mumbai – 400075, Maharashtra, India
Date of Birth/Age:	04.12.1949
Date of Appointment:	29.01.2003

Name :	Mr. Satinder. C. Khanna
Designation :	Director
Address:	House No.122/122, DLF Silver Oaks Apartment, Gurgaon – 122002, Haryana, India
Date of Birth/Age:	22.08.1935
Date of Appointment:	31.10.2003

Name :	Mr. Vinay Panjabi
Designation :	Director
Address:	408 Mansarovar, 6-7 Mount Pleasant Road, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age:	19.06.1966
Date of Appointment:	30.04.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	280,160	2.55
Bodies Corporate	3,860,720	35.10

(2) Foreign

(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	568,440	4.84

(2) Non-Institutions
Bodies Corporate	532,682	4.64

Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 millions	1,043,521	9.49
Individual shareholders holding nominal share capital in excess of Rs.0.100 millions	663,735	6.03

Any Others (Specify)
Clearing Members	45,151	0.41
Directors & their Relatives & Friends	2,924	0.03
Foreign Collaborators	3,800,000	34.55
NRIs/OCBs	202,667	1.84

Total	11,000,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of aluminum alloy die casting, by Gravity and Low Pressure Techniques, mainly catering to automobile industry

Products :

ITC Code	Product Description
8708	Parts and Accessories of Motor Vehicle

Cylinder Heads for Passenger Cars
Cylinder Heads for four stroke 2/3 wheelers.
Intake Manifolds.
Engine Crank cases
Support Brackets.
Steering Housings.
Alloy Wheels.

GENERAL INFORMATION

Customers :

2/3 Wheeler- OEM

v Honda

v Hero Honda

v Yamaha

v Bajaj

v Suzuki

v Piaggio

4 Wheeler – OEM

v Maruti Suzuki

v Toyota

v Honda

v Eicher

v John Deere

v Mahindra

v Tata

v L and T

Tire 1 Automotive

v Sona

v Valeo

v ZF

v Eaton

v Graves

v AEHR

Bankers :

· Bank of Maharashtra,

· IFB Branch, Pune

· ING Vysya Bank Limited

· F. C. Road, Pune

· State Bank of India,

· IFB Branch, Pune

· Export Import Bank of India,

· Shankarseth Road, Pune

· Axis Bank Limited

· J. M. Raod, Pune

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term Loan from Banks and Institutions*	341.795	881.535
Cash Credit from Banks**	162.117	221.807
Total	503.912	1103.342

Secured By:

* First parri-apssu charge by way of equitable mortgage on the existing fixed assets, in favour of State Bank of India and Export Import Bank of India and Axis Bank

* Personal Guarantee of Managing Director to Sank of Maharashtra.

* Repayable in next one year: Rs.194.575 millions

** First parri-passu charge in favour of Bank of Maharashtra. ING Vysya Bank Limited. Axis Bank and State Bank of India by way of Hypothecation of ail stocks and Receivables.

“Second parri-passu charge in favour of Bank of Maharashtra. ING Vysya Bank Limited, Axis Bank and State Bank of India by joint Deed of Hypothecation on all fixed assets of the Company.

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Pre-shipment Working capital	48.155	284.154
Sales Tax Deferral	0.000	2.124
External Commercial Borrowing in Foreign Currency	0.000	192.003
Total	48.155	478.281


Banking Relations :	-

Auditors :
Name :	Asit Mehta and Associates Chartered Accountants

Subsidiaries :	Enkei Wheels (India) Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.5/- Each	Rs.55.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.5/- Each	Rs.55.000 millions

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		55.000	55.000	55.000
2] Share Application Money		0.000	131.652	0.000
3] Reserves & Surplus		483.713	413.493	542.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		538.713	600.145	597.300
LOAN FUNDS
1] Secured Loans		503.912	1103.343	1058.200
2] Unsecured Loans		48.155	478.281	631.300
TOTAL BORROWING		552.067	1581.624	1689.500
DEFERRED TAX LIABILITIES		22.572	45.294	0.000

TOTAL		1113.352	2227.063	2286.800

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		1024.020	2295.040	2047.700
Capital work-in-progress		19.165	31.584	158.200

INVESTMENT		0.070	0.070	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	138.785	296.533	350.100
	Sundry Debtors	390.789	526.673	544.700
	Cash & Bank Balances	49.302	144.977	63.500
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	77.350	118.324	197.500
Total Current Assets		656.226	1086.507	1155.800
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	241.996	540.706
	Other Current Liabilities	304.369	677.005	1004.200
	Provisions	39.764	12.993	79.100
Total Current Liabilities		586.129	1230.704	1083.300
Net Current Assets		70.097	(144.197)	72.500

MISCELLANEOUS EXPENSES		0.000	44.566	8.300

TOTAL		1113.352	2227.063	2286.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2121.067	3027.360	3761.400
		Other Income	3.795	4.216	65.300
		TOTAL (A)	2124.862	3031.576	3826.700

Less	EXPENSES
		Materials & Finished Goods	812.237	1433.885	2265.700
		Personnel Cost	192.906	250.902	242.600
		Manufacturing Expenses	579.588	764.668	665.000
		Administration & Other Expenses	155.807	242.537	267.200
		Royalty	17.495	26.963	18.900
		Other Expenses	0.000	0.000	129.000
		TOTAL (B)	1758.033	2718.955	3588.400

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		366.829	312.621	238.300

Less	FINANCIAL EXPENSES (D)		76.550	167.073	13.900

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		290.279	145.548	224.400

Less/ Add	DEPRECIATION/ AMORTISATION (F)		125.453	269.251	160.000

	PROFIT BEFORE TAX (E-F) (G)		164.826	(123.703)	64.400

Less	TAX (H)		30.853	8.585	0.900

	PROFIT AFTER TAX (G-H) (I)		133.973	(115.118)	63.500

Less	APPROPRIATIONS
		General Reserve	12.500	0.000	NA
		Proposed Dividend	11.000	0.000	NA
		Tax on Dividend	1.827	0.000	NA
	BALANCE CARRIED TO THE B/S		108.646	(115.118)	NA

	Earnings Per Share (Rs.)		12.18	(10.47)	NA

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	612.530	657.600	629.390
Total Expenditure	521.590	560.020	537.160
PBIDT (Excl OI)	90.940	97.580	92.230
Other Income	0.100	4.270	4.420
Operating Profit	91.050	101.850	96.640
Interest	16.850	22.880	18.610
Exceptional Items	0.000	0.000	0.000
PBDT	74.190	78.970	78.030
Depreciation	32.180	33.260	30.030
Profit Before Tax	42.020	45.710	48.000
Tax	7.570	12.340	9.870
Reported PAT	34.450	33.370	38.130
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	34.450	33.370	38.130

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.31	(3.80)	1.66

Net Profit Margin (PBT/Sales)	(%)	7.77	(4.09)	1.71

Return on Total Assets (PBT/Total Assets}	(%)	9.81	3.66	2.01

Return on Investment (ROI) (PBT/Networth)		0.31	(0.21)	0.11

Debt Equity Ratio (Total Liability/Networth)		2.11	4.45	4.64

Current Ratio (Current Asset/Current Liability)		1.12	0.88	1.07

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Creditors for Purchase of Goods and Services

232.066

234.652

Creditors for Capital Goods

9.930

306.054

Scheme of Arrangement and Share Capital

During the year, the Hon'ble High Court of Bombay approved the Scheme of arrangement between the Company and Enkei Wheels (India) Limited and their shareholders and creditors (the Scheme) vide its order dated 26th February 2010 withoutany modification as approved by the shareholders of the Company in the Court convened meeting held on 09th January 2009 under the Chairmanship of Mr. Milind D. Narvekar, an official of Hon'ble High Court of Bombay.

As per the Scheme and in terms of sections 391-394 and other applicable provisions of the Companies Act, 1956, the Demerged Undertaking, namely entire business of the "Wheel Division" of the Company comprising of ail properties (with rights and powers of every description), investments, assets and liabilities (includes duties of every description) stood transferred to / vested in Enkei Wheels (India) Limited as a going concern from the Appointed date, namely 01st April 2009.

In pursuance of the said Scheme, the shareholders of the Company will be issued and allotted 1(0ne) Equity Share of Rs.5/- each fully paid in Enkei Wheels (India) Limited for every 1(0ne) Equity Share of Rs.5/- each held by them in Company. The existing Investment of Company in the Equity Shares of Enkei Wheels (India) Limited of Rs 10 (Ten) lac shall stand cancelled as an integral part of the Scheme. There will not be any change in the Share Capital of the Company pursuant to the Scheme.

Management Discussion and Analysis Report:

Industry Structure and Development:

The Company is engaged in manufacturing of aluminum alloy castings and caters to the automobile industry. The casting industry can be divided into two segments - organized and unorganized sectors. The organized sector caters to the original equipment manufacturers (OEM) and its growth is dependent on the demands from the automotive industry. The unorganized sector caters to the replacement market and serves to the very low end market.

The global economic crises which begin in 2008 lasted till first half of 2009. These crises had an impact on the global auto industry. In turn the auto ancillary industry was severely affected due to very low demand. However, unexpected recovery in domestic market and increase in demand for the automobile industry, resulted into positive growth in terms and production of sales and bench marking the performance in net profits of the Company.

Review of Operation:

The financial results of the Company for the year is not strictly comparable with that of the previous year since the

Working of the Wheel Division is not accounted for as per the restructuring scheme approved by the Hon'ble Bombay High Court. The Company recorded the net sales of Rs.2121.07 millions. The total income for the year was Rs.2124.86 millions. The Company recorded a pre-tax profit of Rs.164.83 millions as against a loss of Rs.123.70 millions in the last year.

Opportunities:

The demand for the castings manufactured by the Company is mainly derived from the automotive industry and the Company is one of the largest aluminium casting supplier in India. As the automobile industry world wide is slowly and gradually shifting towards Asian low cost countries, India has emerged as one of the fastest growing passenger car markets in the world and it is the second largest two-wheeler manufacturer globally.

Their mission for better technologies is currently directed towards making lighter castings with higher yields and so lesser energy consumptions. Aluminum castings are an intrinsic part of the vehicle. They believe that their contributions in making lighter and greener castings will help the industry and society in meeting the stringent and ambitious environmental targets.

The Indian domestic market will continue to be dominated by small cars. Replacement of commercial vehicles will boom as older vehicles get scrapped and logistics hubs emerges. As per KPMG report, vehicle penetration in India is quite small, even in comparison to other Asian countries. In passenger vehicles, for example, India has 8 vehicles per 1000 people, which is lower than countries like China and Thailand. Passenger car production in India is projected to cross three million units in 2014-15 with CAGR of around 10%. In two wheelers also, the penetration level in India at 51 per 1000 is low compared to Indonesia, Malaysia and Thailand. Motorcycle sales will perform positively and projected to exceed 10 million units by 2012-13. This gap indicates the potential for growth in aluminium casting industry over a long term. The company is also introducing new customer base in Auto segment like M and M, Piaggio, Valeo and in Agriculture segment like John Deere.

The Indian economy has shown growth of over 8% over the last few years and with stimulus provided by the Central Government and RBI, this growth will pickup the momentum. The Company is fully geared to leverage this opportunity.

Future Markets:

In the beginning of the current financial year the revival of the demand is experienced. Directors are optimist that considering the revival in demand in the first quarter, the economy will take U turn by the end of the second quarter. Though U.S.A. and other developed countries may continue to have the economic meltdown, India being a vast country with huge domestic demand that stimulates incentives provided by the Central Bank and the Government will sustain its economic growth and the demand will pick up in near future.

The casting industry supplies castings also for Non Auto Segment like Agriculture, Power, Locomotives, Industrial equipments and machines supplier like compressor and machine tools manufacturers and company is exploring these opportunities to avoid seasonal effect in auto industry demands. The company is also focusing on opportunities for offering value addition in easting like machining and sub-assembly for existing as well as new customers.

The Directors are actively considering of restructuring the entire operations of the Company. The management is studying various options available in consultation with the consultants. The Directors assures that the restructuring exercise will enhance the value of stake holders.

Expansion and Capital Expenditure

During the year the Company has not gone for major expansion and capita! Expenditure were made only for replacement of old machines or required for new products. The entire expansion was funded from the internal accruals.

The Company is exploring the business opportunities for alloy castings business in Europe. For this purpose the Company has set up 100% subsidiary in Austria, which will be used as Special Purpose Vehicle (SPV) for further investments in subsidiary companies for acquiring the business in Austria and Slovakia.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2010 ON STANDALONE BASIS

(Rs. In Millions)

Particulars	Quarter Ended 30.06.2010
	(unaudited)

(a) Net Sales / Income from operations	602.228
(b) Other Operating Income	10.306
Total Income	612.535

Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	18.458
b) Consumption of raw materials	234.368
c) Purchase of traded goods	-
d) Employees cost	62.319
e) Depreciation	32.175
f) Other expenditure	206.440
Total	553.761

Profit from operations before interest and exceptional Items	58.774
Other income	0.096
Profit before interest and exceptional Items	58.870
Interest	16.853
Profit after Interest but before Exceptional Items	42.017
Exceptional Items	-
Profit (+)/Loss(-) from Ordinary Activities before tax	42.017
Tax expense	7.570
Net Profit (+)/Loss(-) from Ordinary Activities after tax	34.418
Net Profit (+) / Loss (-) for the year period	-
Paid up equity share capital (Face value of Rs.10/- per share)	34.418
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	-
Earning per share (EPS)
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	3.13
(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	3.13
Public shareholding
Number of shares	6889120
Percentage of shareholding	62.36

Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	NIL
Percentage of Shareholding	NIL

b) Non Encumbered
Number of shares	1110880
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00
Percentage of shares (as a % of total share capital of the company)	37.64%

The above Statement of "Un-Audited Financial Results" was reviewed by the Audit Committee and taken on record by the Board of Directors In its Meeting held on 27^th July. 2010

Figures of the current quarter ended 30 06 2010 are not comparable with those of corresponding quarter of the last year due to demerger of wheel division. The results of the current quarter are In respect of laundry division was Rs447.138 millions and PBT was Rs.31.512 millions. This information is provided for convenience of the shareholders

Tax provision including deferred tax for the current quarter ended 30th June. 2010 has been computed on estimated basis

The company has single business segment viz that of automotive castings accordingly disclosure requirement as per accounting standard 17 segment reporting specified in the companies (Accounting Standard) rule 2006 are not strictly applicable to the company

The limited review by the statutory auditors of the company as required under clause 41 of the listing agreement

With stock exchanges has been completed

Details of shareholders' grievances In the Quarter ended 30th June 2010

Pending the beginning of the Quarter NIL Received during the Quarter NIL

Pending at the end of the Quarter NIL Redressed during the Quarter NIL

Fixed Assets:

v Land

v Building

v Factory Equipment

v Plant and Machinery

v Electrical Installation

v Furniture and Fixtures

v Computers/Software’s

v Office Equipments

v Quality Control Equipments

v Motor Vehicles

v Dies and Patterns

Website Details:

Company Profile

Subject is a joint venture between Rai and Associates, India and Enkei Corporation, Japan. Enkei cooperation is the second largest manufacturer of alloy wheels in the world. Having sales of over a million wheels per month and a turnover of USD 2B in sales.

Technical expertise from Enkei Japan has helped in establishing one of the most advanced manufacturing systems in India for aluminum die cast products. Subject currently leads the Indian market in manufacturing cylinder heads for two wheelers and 4 wheelers. Subject has the distinction of being a single source supplier of many critical engine parts to some of India’s largest OEMs.

Establishing strong mechanisms to control quality, cost and delivery, Subject not only supplies its products to India but also is foraying into international markets. Enkei currently supplies products to various Tier I / Tier II suppliers of global OEMs in Europe and USA. Some of Enkei Castalloy’s customers are Maruti Suzuki Limited, Honda Siel Cars Limited, Tata Motors, Bajaj Auto Limited, Hero Honda Motor Industries, Honda Scooter and Motorcycle Company. International customers include John Deere, Behr Group, GE, Knorr Bremse, ZF Group, and GWK Group.

Aggressively tapping on the opportunities in the Indian and International markets, Subject is growing rapidly at almost 100% each year for the last 3 years. In continuation of its growth pursuit, Enkei is aggressively targeting international customers and has a vision to achieve sales of 1000 Crores by 2015-16. The main site is located at Shikrapur, Pune with 1500 employees while the other site is at Gurgaon in North India. Plans for the new plant are under finalization which is expected to come up at Pantnagar, Uttaranchal.

About Enkei Worldwide

Subject corporation was founded on 5th October 1950, in Hamamatsu, Japan as a manufacturer of die cast aluminum engine parts for motorcycles. Over a period of time, Subject line of business diversified continuing with their core strength of manufacturing aluminum wheels for automobiles, motorcycles and other products using aluminum casting and forging technology.

Subject business in the aluminum wheel industry ranges from very sophisticated racing wheels for Formula 1 Rally and others to the OEM market supplying to all the large auto manufacturers in Japan and USA. Enkei group is leader in alloy wheels worldwide and has the distinction of supplying magnesium alloy wheels to the prestigious McLaren Mercedes Formula 1 team.

Subject has plants located in Japan, USA, China, Thailand, Malaysia, Indonesia, Philippines and India.

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.45.37
UK Pound	1	Rs.73.54
Euro	1	Rs.62.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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.

MIRA INFORM REPORT

138.785

390.789

49.302

77.350

656.226

241.996

304.369

39.764

586.129

70.097

6.31

7.77

9.81

0.31

2.11

1.12

Unit