MIRA INFORM REPORT

Report Date :

26.02.2011

IDENTIFICATION DETAILS

Name :	SIMPLEX PROJECTS LIMITED
Registered Office :	12/1, Nellie Sengupta Sarani, Kolkata-700087, West Bengal.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.10.1990
Com. Reg. No.:	21-050101
CIN No.: [Company Identification No.]	L45201WB1990PLC050101
Legal Form :	A Public Limited Company. The Company's Shares are Listed on the Stocks Exchange
Line of Business :	Subject is Engaged in Civil Engineering and Construction activities.

RATING & COMMENTS

MIRA’s Rating :

A (58)

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 7100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are usually made 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 :	12/1, Nellie Sengupta Sarani, Kolkata-700087, West Bengal, India
Tel. No.:	91-33-22527231/32
Fax No.:	91-33-22528013
E-Mail :	general@simplexprojects.com
Website :	http://www.simplexprojects.com
Corporate Office:	3^rd Floor, SS Hogg Market Complex, 19, Nellie Sengupta Sarani, Kolkata-700087, West Bengal, India
Tel. No.:	91-33-22524125/7900
Fax No.:	91-33-22528013
E-Mail :	info@simplexprojects.com
Website :	http://www.simplexprojects.com

DIRECTORS

As on 31.03.2010

Name :	Mr. Balkrishandas Mumdhra
Designation :	Chairman and Managing Director
Name :	Mr. Prabir Kumar De
Designation :	Director
Qualification :	Chartered Engineer [Institution of Structural Engineers(UK)]
Name :	Mr. Shyam Das Mundhra
Designation :	Director
Name :	Mr. Anand Chopra
Designation :	Director
Name :	Mr. Nitindra Nath Som
Designation :	Director
Qualification :	Civil and Geo –Technical Engineers.
Name :	Mr. Jai Kishan Bagri
Designation :	Whole Time Director
Qualification :	BE Civil Engineer
Name :	Mr. Sudarshan Das Mundhra
Designation :	Whole Time Director
Qualification :	B .Sc Economics
Name:	Mr. Raghav Das Mundhra
Designation:	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Binya Kumar Dash
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Names of Shareholders	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	632,586	5.02
Bodies Corporate	6,365,553	50.52
Sub Total	6,998,139	55.54
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6,998,139	55.54
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	683,797	5.43
Foreign Institutional Investors	1,042,648	8.27
Sub Total	1,726,445	13.70
(2) Non-Institutions
Bodies Corporate	1,604,478	12.73
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	483,672	3.84
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1,382,558	10.97
Any Others (Specify)	405,086	3.21
Clearing Members	2,231	0.02
Directors & their Relatives & Friends	330,279	2.62
Hindu Undivided Families	49,343	0.39
Non Resident Indians	23,233	0.18
Sub Total	3,875,794	30.76
Total Public shareholding (B)	5,602,239	44.46
Total (A)+(B)	12,600,378	100.00

BUSINESS DETAILS

Line of Business :	Subject is Engaged in Civil Engineering and Construction activities.
Products :	· Piling · Concreting, Building and Finishing Work · Miscellaneous Works.

GENERAL INFORMATION

Customers :

Private Sector:

· A L Sudarshan Construction Company Limited

· Bengal Ambuja Housing Dev. Limited

· Bengal Unitech Universal Limited

· Bihar Caustic and chemicals Limited

· Birla Jute and Industries Limited

· Calcutta Medical Research Institute

· DLF Limited.

Public Sector:

· All India Radiao

· BHEL

· Calcutta Improvement Trust

· Central Government Employees Welfare Housing Organisation

· CMC

· CMDA

Bankers :

· UCO Bank

· Bank of Baroda

· Axis Bank Limited

· State Bank of Travancore

· Industrial Development Bank of Limited

· Development Credit Bank Limited.

· Standard Chartered Bank

· Yes Bank Limited

Facilities :

Secured Loan	Rs.31.03.2010 (Rs. in Millions)	Rs.31.03.2009 (Rs. in Millions)
Working Capital Loan from Banks
Cash Credit	517.959	737.063
Short-term Loan Secured by hypothecation of stocks, stores, work-in-progress & book-debts as also by charge of certain moveable plant & machinery ranking pari passu with the Banks and by personal guarantees of Managing Director and a Director of the Company.	251.592	0.000
FCNR Loan	46.600	0.000
Buyers Credit Foreign Currency Loans & Buyer's Credit Facility availed in Foreign currency from International Banks and Overseas branches of Indian Bank are secured by letter of undertakings/earnmarkings by working capital Bankers, which in turn are secured as recited above	87.210	0.000
Term Loan from Banks	62.742	115.032
Other Term Loans Secured by hypothecation of specific assets, comprising Plant & Machinery, Equipment and Vehicles, acquired out of the term loan.	21.181	6.436
Total	987.284	858.531
Unsecured Loan
Short Term Loan from Bank	150.000	0.000
Commercial Paper	500.000	0.000
Inter Corporate Deposits	36.000	59.500
Fixed Deposit	19.251	19.751
Interest accrued and due	1.676	1.895
Total	706.927	81.146

Banking Relations :	--
Auditors :
Name :	Chaturvedi and Company, Chartered Accountants
Solicitors:
Name:	Bose and Mitra
Associates/Subsidiaries :	Simpark Infrastructure Private Limited
Joint Venture:	· Triveni Engicons Private Limited · Simplex Projects (Netherlands) Co-Operative UA

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/-Each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12600378	Equity Shares	Rs. 10/-Each	Rs.126.003 Millions

Note:

Of the above Equity Shares:-

a) 9,00,000 Shares were allotted in 1995-96 as fully paid-up Equity Shares pursuant to a contract without payment being received in cash.

b) 17,95,714 Shares were allotted as fully paid-up Bonus Share by capitalisation of Rs.1,79,57,1407- from General Reserve.

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		126.003	120.003	120.004
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1653.762	1285.160	1107.094
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1779.765	1405.163	1227.098
LOAN FUNDS
1] Secured Loans		987.286	858.531	279.561
2] Unsecured Loans		706.927	81.146	38.812
TOTAL BORROWING		1694.213	939.677	318.373
DEFERRED TAX LIABILITIES		55.792	19.365	19.364
DEFERRED PAYMENT LIABILITY		0.000	0.000	61.773
TOTAL		3529.770	2364.205	1626.608
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		974.453	546.953	319.908
Capital work-in-progress		57.662	79.044	36.950
INVESTMENT		122.656	123.662	122.254
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1564.428	983.977
	Sundry Debtors	1478.723	1040.258
	Cash & Bank Balances	1336.304	209.180	1773.622
	Other Current Assets	0.000	0.000
	Loans & Advances	574.370	461.057
Total Current Assets		4953.825	2694.472	1773.622
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	377.764	316.609
	Other Current Liabilities	2164.883	735.578	626.126
	Provisions	36.179	27.739
Total Current Liabilities		2578.826	1079.926	626.126
Net Current Assets		2374.999	1614.546	1147.496
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3529.770	2364.205	1626.608

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	6060.474	3166.180	2290.127
		Other Income	133.113	7.467	8.631
		TOTAL (A)	6193.587	3173.647	2298.758
Less	EXPENSES
		Site Cost and Administrative Expenses	5522.895	2830.694	2005.040
		TOTAL (B)	5522.895	2830.694	2005.040
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		670.692	342.953	293.718
Less	FINANCIAL EXPENSES (D)		122.367	91.584	56.229
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		548.325	251.369	237.489
Less/ Add	DEPRECIATION/ AMORTISATION (F)		51.263	25.559	13.727
	PROFIT BEFORE TAX (E-F) (G)		497.062	225.810	223.762
Less	TAX (H)		136.451	26.684	25.871
	PROFIT AFTER TAX (G-H) (I)		360.611	199.126	197.890
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		219.307	141.241	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	100.000	100.000	NA
		Dividend	18.900	18.001	NA
		Tax on Dividend	3.139	3.059	NA
	BALANCE CARRIED TO THE B/S		457.879	219.307	NA
	EARNINGS IN FOREIGN CURRENCY
		On Contract Work (Gross Billing)	2069.582	NA	NA
	IMPORTS
		Raw Materials	18.970	22.156	NA
		Capital Goods	1.962	0.000	NA
	TOTAL IMPORTS		20.932	22.156	NA
	Earnings Per Share (Rs.)		29.10	16.59	NA

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	2066.140	2018.640	2471.070
Total Expenditure	1848.000	1839.590	2233.440
PBIDT (Excl OI)	218.140	179.050	237.630
Other Income	9.110	16.530	13.330
Operating Profit	227.240	195.580	250.960
Interest	40.93	55.320	65.950
Exceptional Items	0.000	23.180	7.270
PBDT	186.320	163.450	192.280
Depreciation	23.620	21.770	25.620
Profit Before Tax	162.690	141.680	166.660
Tax	54.040	41.280	52.040
Profit After Tax	108.650	100.400	114.620
Net Profit	108.650	100.400	114.620

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.82	6.27	8.61
Net Profit Margin (PBT/Sales)	(%)	8.20	7.13	9.77
Return on Total Assets (PBT/Total Assets}	(%)	8.38	6.97	10.69
Return on Investment (ROI) (PBT/Networth)		0.28	0.16	0.18
Debt Equity Ratio (Total Liability/Networth)		2.40	1.44	0.77
Current Ratio (Current Asset/Current Liability)		1.92	2.50	2.83

LOCAL AGENCY FURTHER INFORMATION

OPERATIONAL PERFORMANCE

After the unprecedented changes in the economic environment in the last fiscal year, there has been a significant improvement in the economic situation more particularly in the later part of the financial year. With all hard work and dedication the Company overcame the challenges of the global economic crisis and continued its growth streak. The Company has in-house expertise and capability in construction and project management, development consultancy, sales and marketing, thereby making the Company vertically integrated. This enables the Company to meet the project timeliness and commitments and ensuring that the highest levels of technical and service standards are met. As a result of the measures taken by the Company there has been considerable increase in the quantum of work done by the Company and that resulted in increased profitability.

The Libya Project bagged last year is a testimony of their credential and strength in urban infrastructure development space and has laid the foundation for entering the high value overseas infrastructure industry. The Company has been successful in generating revenue from this project. It is being executed at a good pace and is expected to contribute to a significant proportion towards revenues in the next two years. The overseas business will continue to be a focus area for the Company.

For the financial year, the revenue is Rs. 6193.586 Millions as against Rs. 3173.647 Millions for the previous period, thus showing an increase of 95.15 % as against the previous year. The profit before tax (after interest and depreciation charges) has increased to Rs. 497.062 Millions as against Rs. 225.810 Millions for the previous year, thus showing an increase of 120.12% as against the previous year. While the profit after providing for tax was registered at Rs. 360.611 Millions as against Rs. 199.126 Millions in the previous year, thus showing an increase of 81.09 % as against the previous year.

Further the Company had been successful in bagging various contracts for execution of Infrastructure Projects. The Company had unexecuted orders worth Rs. 30193.761 Millions approx, which includes domestic order book of Rs. 12279.774 and foreign order book of Rs. 17913.987. The Company’s order book was largely weighted towards the core strength areas of buildings, bridges and urban infrastructure projects.

MANAGEMENT DISCUSSION AND ANALYSIS

MACRO ECONOMY OVERVIEW

The world economy has started showing signs of recovery from what has been the worst recession ever witnessed in the recent time. The momentum of economic growth is regaining its pace but the world economy will take some time to bring up the original pace of growth it was witnessing before the global meltdown. The developing nations in particular have outperformed their developed counterparts, that too more relevant in Asia's context, this has been possible due to the well coordinated efforts of the governments of the developing nations across the world.

The Indian Economy during these tough times has done considerably well by maintaining a growth rate of 7.2% in

2009-10 as compared to 6.7% in 2008-09. A noteworthy point here is that the growth rate achieved by India is better the any other large economy barring China but still its lacking far behind the growth rate which the nation got used to. The Indian economy due to its strong sustainable domestic demand, conservative fiscal policy and Governments focus on Infrastructure development and the ability to attract capital in the country has been able to maintain its growth streak.

Indian Infrastructure and Construction Industry have shown sign of steady recovery. The Construction Industry has a strong correlation with economic growth as well as investor's sentiments. The construction industry is an integral part of the Indian economy and its contribution to GDP has increased substantially over a period of time. With the momentum of growth slowly coming back on track the Government expenditure on Infrastructure development is most likely to increase. This will increase the confidence of the industry players and will provide the right momentum for growth.

The overall outlook of the Indian construction industry looks positive in view of the current economic scenario. Given the economic fundamentals and committed efforts of the government, drive growth, the future of the Indian economy, in particular construction industry appears to be optimistic.

BUSINESS OVERVIEW

Their Company has emerged as a leading and one of the fastest growing civil infrastructure solution provider in India. Within a short span the Company has significantly increased its presence in the infrastructure sector as a whole and more specifically in the segment of core competence, which include piling, buildings, multi-level car parking and other infrastructure constructions. The Company is committed to further strengthen its presence in the Industry by focusing on all the segments falling under urban as well as rural infrastructure. The Company has created an enviable brand in all the segments falling under the Infrastructure sector and the brand is synonymous with high quality product and transparency in dealing with its customers.

Their Company, over the last decade, has set up sizeable projects in various parts of the Country. In the past two years the Company has forayed into the international arena with projects in Housing and other related infrastructure construction. The Company is having strategic plans to expand its global operations further across the globe.

Being a pioneer in the Indian construction Industry that operates across a wide spectrum of sectors, the Company

Maintained its growth streak and further enhanced its order book. The Financial highlights of the Company on a

Standalone basis are:

• The contract receipt of the company for the financial year reflected a growth of over 91% as compared to preceding financial year.

• The operating margin that is profit before depreciation, interest and taxes registered a growth of over 60%.

• The Profit after tax was registered a growth of over 81%. It is evident from the figures given above that despite the economic crisis the Company maintained its growth streak, it is evident that the Company is one the path of growth with strong fundamentals at its base.

OPPORTUNITIES

Their Company, has at present several segments , which primarily consists of piling and foundation engineering, transportation engineering, which mainly consists of bridges and fly over, etc., buildings and housings, industrial construction, irrigation and waste and water management. We have a much diversified business portfolio, which helps us in mitigating the risk of slowdown in any particular vertical. We are continuously exploring business opportunities in other segments of the Industry and the business mix of the Company is determined taking all the factors into account. Sustained focus of the Govt. to improve infrastructure especially roads, port, housing and urban development and their increased allocation to various schemes would result in continued growth for the construction industry.

FINANCIAL OVERVIEW

The Company has achieved total contract receipts of Rs. 6060.400 Millions for the financial year reflecting a growth of over 91% as compared to preceding financial year. The prime reasons for this achievement are the strong order book position at the beginning of the financial year and execution of some of the fast track projects during the year. The operating margin that is profit before depreciation, interest and taxes was registered at Rs. 537.582 Millions as compared to Rs. 335.487 Millions during the last fiscal, registering a growth of over 60%. The Profit after tax was registered at Rs. 360.611 Millions for the year as compared to Rs. 199.126 Millions in the previous financial year, registering a growth of over 81%.

Fixed Assets:

· Building

· Plant and Machinery

o Cranes

o Winch and Engine

o Pile Frame

o Other Plants

o Tools and Implements

· Trucks and Tippers

· Motor Vehicles

· Two Wheelers

· Computers

· Furniture and Fixtures

· Office Equipment

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31^ST DECEMBER, 2010

Rs. in Millions

Particular	Quarter Ended	Nine Months Ended
	31.12.2010	31.12.2010
	Unaudited	Unaudited
(a) Net Sales / Income from operations	2471.071	6555.847
(b) Other Operating Income	13.332	38.969
Total Income	2484.403	6594.816
Expenditure
Site Cost and Operating Expenses	2177.592	5756.751
Other Administrative Expenses	55.853	153.583
Depreciation	25.616	71.003
Total	2259.061	5981.337
Profit before interest and exceptional Items	225.342	613.479
Interest	65.948	162.198
Profit after Interest but before Exceptional Items	159.394	451.281
Exceptional Items
Foreign Exchange Gain / Loss	7.266	19.754
Profit before tax	166.660	471.035
Provision for tax
Current	33.216	102.926
Deferred tax	18.826	44.438
Profit after tax	114.618	323.671
Paid up equity share capital (Face value of Rs.10/- per share)	126.004	126.004
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)	9.10	25.69
(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)	9.10	25.69
Public shareholding
Number of shares	5602239	5602239
Percentage of shareholding	44.46	44.46
Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	Nil	Nil
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	Nil	Nil
Percentage of shares (as a % of total share capital of the company)	Nil	Nil
b) Non Encumbered
Number of shares	6998139	6998139
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00	100.00
Percentage of shares (as a % of total share capital of the company)	55.54	55.54

Note:

1. The above results were reviewed by the audit committee and were considered and approved by the board of directors at their respective meetings held on 10.02.2011. The limited review has been carried by the statutory auditors of the company in terms of clause 41 of the listing agreement.

2. The consolidated results include the unaudited results of the wholly owned subsidiary Simpart Infrastructure Private Limited.

3. The company operates exclusively in the civil construction activities and has only one reportable business segment the financial statement has been prepared in accordance with AS-17, accounting standard for segment reporting.

4. Status of investors grievances as on 31^st December, 2010 is opening nil, received during the quarter 3, resolved 3, closing nil.

5. Foreign exchange gain was on account of mark to market valuation of all exposures including derivative contracts which materialized during the quarter and those outstanding as of the end of the quarter.

6. The previous year figures have been regrouped/ rearranged wherever required for the purpose of comparison.

AS PER WEBSITE DETAILS:

HISTORY:

Incorporated in the year 1990 as a Public Limited Company. The Registered Office at Calcutta is controlling Project Sites all over India. In a decade of its working SPL has emerged as a renowned civil engineering and construction company.

The Company has procured a fleet of construction equipment over this period. It got listed in the Bombay and National Stock Exchange at Rs. 180 and the stock prices reached its peak at Rs. 480.

PROFILE:

Subject has transformed in a short span from a piling contractor to a well groomed infrastructure construction company. Having constructed over 70 Road and Rail-over-Bridges, over half a million square feet of residential and commercial buildings, power plants to chemical factories, multiplexes to shopping malls, Simplex Projects remains versatile in a range of activities ranging from ground engineering to electro-mechanical design, fabrication and installation At Simplex Projects, we possess some of the best engineering skills and that led to us have in our fold many 'First time in India' credits in the field of civil and mechanical construction. They also have the second largest fleet of piling rigs in eastern part of the country, besides several other top class construction equipments and machineries. Today, Simplex Projects offers a perfect blend of engineering skill and latest technologies for the infrastructure growth.

BOARD OF DIRECTORS:

Sri B K MUNDHRA

Chairman and Managing Director

With over 35 years, experience in Construction Industry. Was in the Board of Simplex Concrete

Sri J K BAGRI

Whole-time Director

BE Civil Engineer by Profession having over 28 years experience in Construction Industry In charge of Project Tendering and Monitoring

Sri SUDARSHAN MUNDHRA

Whole-time Director

BSc Economics, over 6 years experience in project procurement & monitoring. Presently in charge of North-East Business Group

Sri PRABIR DE

Director

A Chartered Engineer [Institution of structural Engineers (UK)] with over 35 years experience in project monitoring Served The Kolkata Improvement Trust as Chief Engineer. Wide experience in town planning and construction

Sri SHYAM DAS MUNDHRA

Director

Aged 64 years, is a Industrialist having over 40 years of experience in running the business of electrical and allied activities. Joined the board in the year 1998.

Sri ANAND CHOPRA

Director

Aged 57, a Fellow Member of Institute Of Chartered Accountants of India and Presently a senior partner of Chopra and Company. Has varying experience in Statutory, Management and Internal audit of Companies and Public Sector Organizations.

Sri NITINDRA NATH SOM

Director

Aged 66, a renowned name acclaimed in India and abroad as one of the leading Civil and Geo-Technical Engineers. Has 40 years of experience in teaching, research, administration, industrial consultancy, design construction and quality control in Civil and geo-technical engineering.

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.73.25
Euro	1	Rs.62.68

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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.