MIRA INFORM REPORT

Report Date :

12.01.2011

IDENTIFICATION DETAILS

Name :	BHARAT DYNAMICS LIMITED
Registered Office :	10-3-310 Masan Tank, Kanchanbagh Post, Hyderabad – 500 058, Andhra Pradesh, INDIA
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.07.1970
Com. Reg. No.:	01-001353
CIN No.: [Company Identification No.]	U24292AP1970GOI001353
TAN No.: [Tax Deduction & Collection Account No.]	HYDB02024B
PAN No.: [Permanent Account No.]	AAACB7880N
Legal Form :	It is a Public Limited Liability Company. The company is 100% owned by the Government of India.
Line of Business :	Manufacturing and Development of Missile Weapon Systems, Sub-Systems and Accessories Required for Defence.

RATING & COMMENTS

MIRA’s Rating :

A (67)

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 21083000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a government of India company. It is a well established and a reputed 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. Company can be considered good for normal 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 :	10-3-310 Masan Tank, Kanchanbagh Post, Hyderabad – 500 058, Andhra Pradesh, INDIA
Tel. No.:	91-40-23242902 / 24440081 / 24440712 / 24440084 / 23242908
Fax No.:	91-40-23242901 / 24440284 / 2444015 8/ 24440660
E-Mail :	bdlitd@ap.nic.in
Website :	http://bdl.ap.nic.in
Resident representatives at Delhi	L Block, Room No. 84, New Delhi Contact Person - Col. R. C. Mahendroo (Retd.) - Deputy General Manager (Liaison)
Tel. No.:	91-11-23013268/26896582
Fax No.:	91-11-23014366
Guest house	Contact Person : Brig. K. J. Singh (Retd.) (General Manager)
Tel. No.:	91-40-24442008/24440712/24445582
Fax No.:	91-40-24440660S
Factory 1 :	10-3-310, Masab Tank, Kanchanbagh Post, Hyderabad – 500 058, Andhra Pradesh Grams : DYNAMICS
Tel No.:	91-40-2324 2902 / 2444 0081 / 2440 0712
Fax No.:	91-40-2324 2901 / 2444 0284 / 2444 0158 / 2444 0660
Factory 2:	Bhanoor Village, Medak District, Andhra Pradesh, India
Tel No.:	91-40-2242910

DIRECTORS

As on 31.03.2010

Name :	Mr. Maj Gen Rajnesh Gossain
Designation :	Chairman & Managing Director
Name :	Mr. P K Samantha
Designation :	Director
Name :	Mr. Brig P Ganesham
Designation :	Director
Name :	Mr. S M Mantha
Designation :	Director
Name :	Mr. P Srinivas Rao
Designation :	Executive Director
Name :	Mr. N Vinod Kumar
Designation :	Director
Name :	Mr. Alok Perti
Designation :	Director
Name :	Mr. Mohammed Haleem Khan
Designation :	Director
Name :	Mr. P K Anand
Designation :	Director
Name :	Mr. K V S S Prasada Rao
Designation :	Director
Name :	Mr. A M Naik
Designation :	Director
Name :	Mr. P. P. S Bhandari
Designation :	Director
Name :	AIR Marshal J S Gujral
Designation :	Director
Name :	Mr. H B Murthy
Designation :	Company Sectary

KEY EXECUTIVES

Name :	Mr. Jitenderbir Singh
Designation :	Nominee Director
Address :	D-II/29, Shahjahan Road, New Delhi- 110011, Delhi, India
Date of birth/Age :	12.12.1957
Date of Appointment :	09.04.2009
Name :	Mr. P Madava Rao
Designation :	General Manager
Name :	Mr. L Dhununjaya
Designation :	General Manager
Name :	Mr. Laxman Fulzule
Designation :	General Manager
Name :	Mr. Krishna Emani
Designation :	General Manager
Name :	Mr. PPC Ajay Kumar
Designation :	General Manager
Name :	Mr. SV Subba Rao
Designation :	General Manager
Name :	Mr. G Narayana Rao
Designation :	General Manager
Name :	Mr. B S Prasad
Designation :	General Manager
Name :	Mr. P R V Prasad
Designation :	General Manager
Audit Committee	Mr. Mohd. Haleem Khan Mr. Alok Perti Mr. Maj Gen Rajnesh Gossain Mr. P K Samantha
Principal Executives	Mr. J R K Rao Mr. R Narasimha Rao Mr. M S K Sharma Mr. V Narayana Mr. P Srivivasa Rao Mr. P V Ramana Murthy

BUSINESS DETAILS

Line of Business :	Manufacturing and Development of Missile Weapon Systems, Sub-Systems and Accessories Required for Defence.
Imports :
Countries :	Russia Germany U.S.A.
Terms :
Purchasing :	L/C and Credit terms

GENERAL INFORMATION

No. of Employees :	2894 (Approximately)
Bankers :	Andhra Bank BDL Campus Branch, Kanchanbagh, Hyderabad- 500058, Andhra Pradesh, India State Bank of India, Hyderabad, Andhra Pradesh
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Satyanarayana and Company Chartered Accountant
Address :	5-8-548/E, Abid Road, Hyderabad- 500001, Andhra Pradesh, India
Tel. No.:	91-40- 23202466 (R ) 27801959
Fax No.:	91-40-23202389
Pan No.:	AACFP1668B
Associates/Subsidiaries :	All Government of India owned companies

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Share	Rs.1000/- Each	Rs.1250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1150000	Equity Share	Rs.1000/- Each	Rs.1150.000 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		1150.000	1150.000	1150.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4120.774	4051.290	3843.661
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5270.774	5201.290	4993.661
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Deferred Liabilities		547.666	567.230	587.174
TOTAL		5818.440	5768.520	5580.835
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1432.193	1039.507	936.230
Capital work-in-progress		71.703	28.380	73.992
INVESTMENT		5.360	5.360	5.360
DEFERREX TAX ASSETS		172.242	95.078	108.839
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5702.632	6231.107	4342.460
	Sundry Debtors	335.790	89.466	215.420
	Cash & Bank Balances	15333.246	16795.675	14647.780
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3051.174	2688.204	2127.162
Total Current Assets		24422.842	25804.452	21332.822
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1334.787	1178.996
	Other Current Liabilities	18467.171	19734.741	16741.782
	Provisions	1016.479	842.076	741.408
Total Current Liabilities		20818.437	21755.813	17483.190
Net Current Assets		3604.405	4048.639	3849.632
MISCELLANEOUS EXPENSES		0.000	0.000	36.207
Deferred Debts		532.537	551.556	570.575
TOTAL		5818.440	5768.520	5580.835

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	6263.288	4633.142	4530.158
		Other Income	1548.035	2296.280	1600.055
		TOTAL (A)	7811.323	6929.422	6130.213
Less	EXPENSES
		Consumption of Raw Materials Components etc.	4380.089	3648.382	3519.877
		Direct Expenses	45.576	75.777	33.384
		Salaries and wages	1788.377	1511.624	1496.301
		Other expenses	638.330	607.386	445.295
		Provision	363.819	349.032	407.001
		Expenditure relating to Capital and other accounts	(61.676)	(93.003)
		TOTAL (B)	7154.515	6099.198	5331.261
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		656.808	830.224	798.952
Less	FINANCIAL EXPENSES (D)		0.164	6.226	0.053
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		656.644	823.998	798.899
Less/ Add	DEPRECIATION/ AMORTISATION (F)		150.393	81.719	73.990
	PROFIT BEFORE TAX (E-F) (G)		506.251	742.279	724.909
Less	TAX (I)		168.569	265.559	248.395
	PROFIT AFTER TAX (G-I) (J)		337.682	476.720	476.514
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.174	2.543	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	70.000	205.000	NA
		Dividend	230.000	230.000	NA
		Tax on Dividend	38.200	39.089	NA
	BALANCE CARRIED TO THE B/S		4.656	5.174	NA
	Earnings Per Share (Rs.)		293.64	414.54	414.36

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.32	7.51	7.77
Net Profit Margin (PBT/Sales)	(%)	8.08	16.02	16.00
Return on Total Assets (PBT/Total Assets}	(%)	1.96	2.76	3.25
Return on Investment (ROI) (PBT/Networth)		0.10	0.14	0.14
Debt Equity Ratio (Total Liability/Networth)		3.95	4.18	3.50
Current Ratio (Current Asset/Current Liability)		1.17	1.19	1.22

LOCAL AGENCY FURTHER INFORMATION

HIGHLIGHTS OF OPERATION

The Company has achieved a record sales turnover of Rs.6272.300 Millions registering 35% increase over the previous year. This is the highest turnover ever achieved since inception. The Company has now drawn up plans to cross the Rs.10000.000 Millions mark during 2010-11 and maintain the momentum for growth.

Main achievements of the Company during 2009-10 are:

Out of the total turnover, Rs.3410.000 Millions was contributed through sale of Anti Tank Guided Missiles (ATGMs). As the technological issues were resolved, these products are expected to contribute to the higher turnover during 2010-11. Rs.2010.000 Millions was contributed by Surface to Surface Missiles. With the planned production this year of a Surface to Air Missile, this product group will play a significant role during 2010-11 and in the future. With the commencement of construction of a manufacturing facility at Vizag, Naval products will also contribute to the turnover in the coming years.

BDL is also manufacturing three variants of defensive systems on aircraft and further orders for other type of aircrafts are in the pipeline. BDL is closely associated with ADA/HAL for this purpose. BDL is in constant contact

with the Indian Army and IAF for life extension / refurbishment of their ageing missiles.

PERFORMANCE

The performance of the Company in financial terms is summarized below:

	Rs. in Millions		% of Increase / (Decrease)
	2009-10	2008-09
Value of Sales	6272.300	4648.200	35%
Value of Production	6316.100	5230.600	21%
Profit Before Tax	506.300	742.300	(32%)
Profit After Tax	337.700	476.700	(29%)
Value Added	1936.000	1582.200	22%

The following data reflects the financial position of the Company:

	Rs. in Millions		% of Increase / (Decrease)
	2009-10	2008-09
Gross Block	3574.800	3076.500	16%
Depreciation	2288.400	2141.500	7%
Net Block	1286.400	935.000	37%
Special Tools & Equipment	145.800	104.500	39%
Working Capital	3604.400	4048.600	(11%)
Capital Employed	5036.600	5088.100	(1%)
Net Worth	5268.800	5199.300	1%

FINANCE

The total paid up capital stood at Rs.1150.000 Millions. The Gross Block of fixed assets of the Company (excluding special tools and equipment) stood at Rs.3574.800 Millions representing an increase of Rs. 498.300 Millions over 2008-09.

PERFORMANCE AGAINST MoUs

During the year 2008-09, the Company achieved a rating of “Very Good”. The MoU performance for the year 2009-10 is also likely to continue as “Very Good.”

INDUSTRIAL RELATIONS AND EMPLOYEES WELFARE

Cordial and harmonious industrial relations was maintained with cooperation from all sections of employees viz., recognized union, other registered trade unions and Associations such as SC,ST,OBC and Officers Associations. Statutory committees such as Works Committee, Safety Committee and Canteen Committee and shop level and plant level committees have ensured work place discipline all through the year.

The wage revision for Non-executives is also completed and being implemented shortly.

Compliances on statutory welfare provisions is followed meticulously. Non-statutory welfare facilities such as subsidized transport, school fee reimbursement, canteen allowances etc., are continued during the year to motivate employees. Medical needs of the employees and their dependents is taken care as per BDL Medical rules. Retired employees Medical Insurance Scheme is in vogue to ensure the Medical needs of retired employees and their family members.

As a measure of motivation and improved morale for achieving higher productivity, employees are encouraged to participate in sports and games, cultural and recreational activities. The non statutory welfare committees have been taking keen interest in these activities.

IMPLEMENTATION OF PRESIDENTIAL DIRECTIVES

The Company received a Presidential Directive No.H-62030/1/0227- D(BDL), dated 27 Apr 09 according sanction for implementation of revised pay scales to the Board level and below Board level executives as per DPE guidelines issued thereon. Accordingly, the Company has implemented the pay revision in compliance with the Presidential Directive.

SAFETY

Safety, Health and Environment is maintained well at BDL. The two corporate committees, i.e., Industrial Safety Committee, which is statutory, and Explosive Safety Committee are functioning to cater to the needs of BDL. Safety Committee Meetings are held at regular intervals for monitoring Safety, Health and Environment as per statute requisites. The works are carried out in compliance with Factories Act 1948 and strictly adhere to STEC Regulations for explosive safety. Regular medical checkup is conducted for employees working in hazardous zones by qualified medical staff. Training Programmes are organized by HRD through NSC, CLI, RLI, CFEES, to inculcate safety and to establish safe working environment among the employees. Safety week / month is organized during the month of March with big enthusiasm. Various competitions and programmes are conducted by Safety Engineering Department and employees are awarded to boost their interest in Safety. Safety Department is in continuous interaction with the Inspector of Factories (AP), AP Pollution Control Board and CFEES; New Delhi to update their guidelines for compliance. Fire “mock drill” is conducted to ensure fire-fighting preparedness.

SECURITY

Central Industrial Security Force(CISF) is deployed both at Kanchanbagh and Bhanur. Regular security reviews are conducted both by the Management and CISF to beef up security. Periodical meetings are held with local police and civil authorities and the Company was crime free during the year.

Security Awareness programmes were conducted during Security /Fire Week and employees are sensitized on the security threats and action to be taken in case of fire. IB guidelines are implemented to streamline the entry of

contract labour, customers, suppliers and visitors to avoid unauthorized entry.

On 18 Dec 09, a programme on security was conducted in BDL for senior officers. A team of officers under Joint Director, Intelligence Bureau, New Delhi sensitized the participants on Multi dimensional threats to industrial security, threats to vital installations in AP from various inimical forces, principles of industrial security, personal and document security, computer security, Explosives, IEDs and latest security gadgets deployed for industrial security.

Computer photo passes, CCTV cameras, Door Frame Metal Detectors, X-Ray Baggage Scanner are in use to meet security surveillance. Barricades, Boom barriers and morchas are provided to strengthen the physical security measures. Efforts are on to introduce additional equipment for better control.

FUTURE PLANS

There is a growth of 35% in sales over the previous year and this is likely to increase further. The targeted growth projected for the Financial Year 2010- 11 is 60% over the Financial Year 2009-10.

The Order Book position is healthy with orders to the tune of Rs.40000.000 Millions, which is likely to increase substantially in the near future.

FORM 8 :-

This form is for	Creation of charge
Corporate identity number of the company	U24292AP1970GOI001353
Name of the company	Bharat Dynamics Limited
Address of the registered office or of the principal place of business in India of the company	Kanchanbagh Hyderabad- 500058, Andhra Pradesh, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Andhra Bank BDL Campus Branch, Kanchanbagh, Hyderabad- 500058, Andhra Pradesh, India E-Mail: bmhydm1045@andhrabank.co.in
Nature of description of the instrument creating or modifying the charge	Composite Agreement for Rs.1100.000 millions (Rs.1000.000 millions for foreign letter of credit facility and Rs.100.000 millions for Bank Guarantee facility) and counter guarantee for Rs.100.000 millions
Date of instrument Creating the charge	31.03.2009
Amount secured by the charge	Rs.1100.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Non- Fund Based Extent and Operation of the charge To the extend of foreign letter of credit and Bank Guarantee subject to a maximum of Rs.1100.000 millions. Hypothecation of materials to be received out of this facility.
Short particulars of the property charged	Hypothecation of materials to be received out of this facility to the extend of foreign letters of credit and Bank guarantee subject to a maximum of Rs.1100.000 millions

Fixed Assets

• Land and Development Building
• Fencing and Compound Walls
• Road and Drains
• Water Supply
• Installations
• Plant Machinery and Equipments
• Furniture and Equipments
• Transports
• Vehicles
• Computer Software

History

The company was incorporated on 16^th June, 1970 at Hyderabad in Andhra Pradesh having Company Registration Number 1353.

Subject was established under the Companies Act, 1956 under the Administrative control of Ministry of Defence, Department of Defence, Production and Supplies. It is a wholly owned Government of India Company and all the shares of the company are held in the name of the President of India.

The company is the prime production agency for manufacture of Guided Missiles and allied systems. Expertise and capacity had also been created for cost effective product upgrade and retrofits with enhanced lethality to impart fresh lease of life to ageing equipment within the core competence of the company.

The company's products being shot devices, have to meet stringent quality standards. The trust in quality of the company's product of the Defence Forces is ensured by securing ISO 9002 accreditation for its production divisions. A sharp Customer Focus with all possible assistance in exploration of the company made equipment had received applause time and again. Recognition of best trade practices followed in the company had received a boost with the award of Silver Plaque by SCOPE for outstanding contribution in the field of institutional leadership, strategic planning, growth, social commitment and organisation.

The name of the company is synonymous with lethal weapon manufacturer for defence of motherland by Indian Land, Sea and Air Forces.

As Per Website Details

About Us

Bharat Dynamics Limited has emerged as a leader in the highly advanced and captivities sphere of versatile and state of A systems and other related customer specific products with its commitments to quality continues technology available at global level

Established in 1970, Bharat Dynamics Limited has emerged as an epicentre of sophisticated and competitive products to specialized needs of Indian defence services. It had grown into a multi – product company services the needs of customer in diverse fields including para – military forces

In the process, Bharat Dynamics Limited has set up impressive infrastructure and manufacturing facilities spread over 9001/2000 certified modern production units. Bharat Dynamics Limited offers products and services from a wide spectrum of weapon systems and allied products covering latest technology in Military Engineering and Technology and Software companies

Emphasis placed in R & D at Bharat Dynamics Limited is amply demonstrated in the number of highly qualified engineer who form a substantial part of its skilled manpower and a large number of product developed address futuristic defence needs

Bharat Dynamics Limited aspires to meet and exceed the expectation of customer in its march towards TQM. This spreading the quality consciousness in every sphere of activity. Bharat Dynamics Limited is poised to enter into joint venture for development and co production of some of the latest weapon systems required by the services

BDL MILESTONES

1970	Established a s PSU under Ministry of Defence
1971	Production of 1” Generation ATGM
1983	Prime Production Agency for IGMDP
1985	Production of 2^nd Generation ATGM
1986	Upgraded to Schedule C
1989	Production of strategic ATGM
1992	Upgraded to Schedule B
1994	Strategic Missile Production
2000	Categorized as Mini Ratna-1 Company
2001	Light Weight Torpedo Production
2003	Production of 2+ Generation ATGM
2004	Production of Naval Version of strategic Missile
2007	Production of Anti Torpedo Decoy Systems
2008	Production Agency for long SAM and Heavy Weight Torpedo

Objectives

To ensure a sustained growth of BDL to attain sales turnover of Rs.15000.000 millions by the year 2010-11.

Constantly strive to convert the planned induction of missiles into  actual indents.

To be proactive and work in close collaboration with DRDO and to involve in the design of missiles and associated  products developed by DRDO.

To become self-reliant and competitive in Guided Missile Technology and Production.

To maximize utilization of existing production capacities.

To establish modern and cost effective production facilities for new projects.

To meet production commitments and maximize customer satisfaction.

To maximize share holder wealth (@ of 20% Growth per Annum).

To upgrade the company to schedule ‘A’ by 2012.

To develop and nurture Human Resources

Achievement

Received the SODET Award - Technology Development in Gold category for the

year 2006 - 2007 fro Electronics Division.

• Won the Golden Peacock Innovation Award - 2007 for the Electronics Division.
• Received the Golden Peacock Innovation Award - 2006 for CMDS
• FAPCCI award (Silver Rolling Trophy) for the year 2005-06 for "Excellence in Research and Development" in recognition of BDL's efforts in designing and developing CMDS.
• Received the SODET Award-Silver Category for the year 2005-06 for CMDS.
• Raksha Mantri's Award in Group/Individual Award Category for the year 2005- 06  for Import Substitution {Manufacture of Infra Red Interference Indicator  (IRII)}
• Achieved the Raksha Mantri's Award in Group/Individual Award Category for the year 2004-05 for Design Efforts for CMDS
• Bestowed with Raksha Mantri's Award for excellence in the areas of Import Substitution and Innovation for the year 2002-03
• Conferred the Silver Trophy of SCOPE Award for excellence and outstanding contribution to the Public Sector Management in the Institutional Category for    the year 1997-98.
• Categorized as a Mini-Ratna -I Company.
• Awarded the DRDO Technology Transfer and Assimilation Award for the year1996 for outstanding engineering capabilities of the company.
• Six ISO 9001:2000 accredited Divisions.
• Nominated as the prime production agency for manufacture of underwater weapons.
• Nominated as the prime production agency for manufacture of projects under   IGMDP

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.45.32
UK Pound	1	Rs.70.54
Euro	1	Rs.58.70

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	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

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	-

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