MIRA INFORM REPORT

Report Date :

27.07.2011

IDENTIFICATION DETAILS

Name :	MPM PRIVATE LIMITED (w.e.f. April 2004)
Formerly Known As :	MINERAL PULVERISING MILLS PRIVATE LIMITED
Registered Office :	M-22, MIDC, Hingna Industrial Area, Nagpur-440016, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.01.1996
Com. Reg. No.:	11-95899
Capital Investment/ Paid-up Capital:	Rs. 12.069 Millions
CIN No.: [Company Identification No.]	U24110MH1996PTC095899
TAN No.: [Tax Deduction & Collection Account No.]	NGPM03696A
PAN No.: [Permanent Account No.]	AACCM1261A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Exporters and Importer of Foundry Chemicals and Lustron.
No. of Employees:	Approximately 225 (Office 75, Factory 150)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 350000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

INFORMATION PARTED BY

Name :	Mr. Hemand Gangare
Designation :	Accounts Executive
Contact No.:	91-9049639091
Date :	26.07.2011

LOCATIONS

Registered office / Factory:	M 22, MIDC, Hingnain Industrial Estate, Nagpur – 440016, Maharashtra, India
Tel. No.:	91-7104-232401/ 02/ 237065
Mobile No.:	91-9049639091 (Mr. Hemant)
Fax No.:	91-7104-237223
E-Mail :	mpm@vsnl.com info@mpmindia.com deepak@mpmindia.com accounts@mpminida.com
Website :	http://www.mpmindia.com
Area :	1 Hect.(Rented)
Corporate Office	501, A/B, Niranjan, 99 Marine Drive, Mumbai – 400020, Maharashtra, India
E-Mail :	deepak@mpmindia.com mpm@vsnl.com info@mpmindia.com
Area:	Rented
Depo’s :	Located at: Chennai Coimbatore Hyderabad Ahmedabad Pune Kolhapur Kolkata Nagpur (3 Depo’s at Nagpur)
Branches :	Located at : · Chennai · Navi Mumbai · Kolhapur · Coimbatore · Gurgaon · Pune · Kolkata · Hyderabad · Ahmedabad

DIRECTORS

As on 30.09.2010

Name :	Mr. Deepak Jugalkishore Chowdhary
Designation :	Managing Director
Address :	Plot No.2, Gandhi Nagar, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	13.10.1958
Qualifications :	B. Com
Date of Appointment :	03.01.1996
DIN No.:	00332918
Name :	Ms. Aditi Deepak Chowdhary
Designation :	Director
Address :	Plot No. 2, Gandhi Nagar, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	04.09.1983
Date of Appointment :	30.09.2008
DIN No.:	00333637
Name :	Mr. Diwakar Govind Shastri
Designation :	Director
Address :	87/B, Empress Mill Colony, Behind Medical College, Nagpur-440027, Maharashtra, India
Date of Birth/Age :	24.08.1965
Qualifications :	Diploma in Engineering
Date of Appointment :	30.06.2000
DIN No.:	00334006
Name :	Mrs. Shakuntala Devi Jugalkishore Chowdhary
Designation :	Director
Address :	Plot No.2, Gandhi Nagar, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	09.10.1937
Qualification:	Graduate
Date of Appointment :	28.08.1996
DIN No.:	00584015
Name :	Ms. Anushree Deepak Chowdhary
Designation :	Additional Director
Address :	Plot No. 2, Gandhi Nagar, Nagpur-440010, Maharashtra, India
Date of Birth/Age :	22.09.1985
Date of Appointment :	30.09.2008
DIN No.:	01864859

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Deepak Chowdhary	1045733
Shakuntala Chowdhary	91998
Neena Chowdhary	66168
Baluram Biliochpuria	2
Aditi Chowdhary	1000
Anushree Chowdhary	1000
Anirudh Chowdhary	1000
Total	1206901

As on 02.11.2010

List of Allottees	No. of Shares Allotted
Deepak Chowdhary	500000
Total	500000

Equity Share Breakup (Percentage of Total Equity)

(As on 30.09.2010)

Category	Percentage
Directors or relatives of Directors	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporters and Importer of Foundry Chemicals and Lustron.

Products :

· Foundry Chemicals

· Lustron

Product Description	ITC Code
Lustron –F	3824
Lustron	--
Mould- Aid	--

Exports :

Products :

Foundry Chemicals and Lustrom

Countries :

• China
• Pakistan
• Srilanka

Imports :

Products :

Raw Material

Countries :

· China

Terms :

Selling :

Credit (60-90 Days)

Purchasing :

L/C

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Actual Production
Mould Aid	101
Lustron	12657.64
Lustron F	1967.08
Lustrol	48
LCA	746.00
Paints	0
Graphite Fines	1206.58
Ferron F	1122.92
Innoculant	599.67
Minaculant	524.57
Cabasil	173.28
Others	253.07

GENERAL INFORMATION

Customers :

· OEM’s

No. of Employees :

Approximately 225 (Office 75, Factory 150)

Bankers :

· Bank of Baroda, Dharampeth Branch, West High Court Road, Dharampeth, Nagpur-440010, Maharashtra, India

· Bank of India, Dharampeth Branch, Nagpur-440010, Maharashtra, India

· SBI Factors and Commercial Services Private Limited

Registered Office : 6^th Floor, Sahakar Bhavan, Nariman Point, Mumbai-400021

Branch Office : Tara Chambers, 2^nd Floor, Mumbai Pune Road, Wakdewadi, Pune-411003

· State Bank of India, MIDC Industrial Area Branch, Plot No. 43, MIDC Area, Higna Road, Nagpur-440016, Maharashtra, India (CC + LC = Rs. 260.000 Millions)

· State Bank of India, Industrial Finance Branch, Bharat Nagar, Amravati Road, Nagpur-440033, Maharashtra, India

· HDFC Bank, Shankar Nagar Branch, Nagpur

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
SBI Factor Bill Discounting (Secured against book debts)	6.946	[0.213]
State Bank of India
Cash Credit (Secured against Stock and Book Debts)	98.268	82.541
Term Loan (Secured against 1^st Charge on Fixed Assets)	0.000	0.840
Packing Credit	[0.003]	0.009
TML Financial Services Limited (Car Loan)	0.031	0.265
HDFC Car Loan Account	3.502	0.084
Total	108.744	83.526
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Directors
Deepak Chowdhary	10.561	18.244
Aditi Chowdhary	0.095	0.120
Anushree Chowdhary	0.557	0.405
Shakuntala Chowdhary	0.000	0.194
Form directors relatives
Neena Chowdhary	0.150	0.401
From Shareholders
Balu Ram Bilochpuria	0.350	0.350
From Others
Suyog Chemicals Private Limited	0.100	0.100
Suyog Orgachem Interantion Private Limited	0.600	0.600
Lokesh Industrial Services Private Limited	0.000	2.500
Primus Realtors Private Limited	0.000	1.500
Tristar Retail Private Limited	0.000	2.000
Sales Tax Under Deferral Scheme	7.808	7.808
Total	20.221	34.222

Banking Relations :	Satisfactory
Auditors :
Name :	Aurangabadkar and Company Chartered Accountants
Address :	Plot No. 2, Indradhanush, SBI Colony, Amravati Road, Nagpur-440033, Maharashtra, India
Mobile No.:	91-9373212400
Associates/Subsidiaries :	· MPM – Durrans Refracoat Private Limited U27106MH2007PTC169690 · Ambarati Automation Private Limited, Nagpur Line of Business: Electrical Goods · Chemtels Address: 501, A/B Niranjan, 99 Marine Drive, Mumbai-400020, Maharashtra, India Legal Status: Proprietorship

CAPITAL STRUCTURE

After 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1706901	Equity Shares	Rs.10/- each	Rs. 17.069 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1206901	Equity Shares	Rs.10/- each	Rs. 12.069 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		12.069	9.569	7.069
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		75.549	70.968	78.055
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		87.618	80.537	85.124
LOAN FUNDS
1] Secured Loans		108.744	83.526	116.822
2] Unsecured Loans		20.221	34.222	14.740
TOTAL BORROWING		128.965	117.748	131.562
DEFERRED TAX LIABILITIES		4.578	0.000	3.542
TOTAL		221.161	198.285	220.228
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		61.547	52.740	40.535
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		10.413	7.984	8.695
DEFERREX TAX ASSETS		0.000	1.375	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.237	53.150	45.294
	Sundry Debtors	167.434	134.755	149.677
	Cash & Bank Balances	13.390	7.735	16.676
	Other Current Assets	3.020	3.044	8.755
	Loans & Advances	16.051	15.471	49.772
Total Current Assets		253.132	214.155	270.174
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	66.579	56.711	65.717
	Other Current Liabilities	34.311	20.180	5.684
	Provisions	3.041	1.078	27.775
Total Current Liabilities		103.931	77.969	99.176
Net Current Assets		149.201	136.186	170.998
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		221.161	198.285	220.228

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Net Sales and Other Income	586.622	517.567	588.959
		TOTAL	586.622	517.567	588.959
Less	EXPENSES
		Office Expenses
		Administrative Expenses	567.669	525.646	564.344
		Advertising Expenses
		Interest
		TOTAL	567.669	525.646	564.344
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		18.953	[8.079]	24.615
Less/ Add	DEPRECIATION/ AMORTISATION		4.567	3.495	2.528
	PROFIT BEFORE TAX		14.386	[11.574]	22.087
Less	TAX		8.398	[4.487]	8.572
	PROFIT AFTER TAX		5.988	[7.087]	13.515
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		56.983	64.071	54.289
Less	APPROPRIATIONS
		Transfer to General Reserve	--	--	1.252
		Proposed Dividend	1.207	--	2.120
		Tax on Dividend	0.200	--	0.360
	BALANCE CARRIED TO THE B/S		61.565	56.983	64.071
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	25.926	49.909	90.856
	TOTAL EARNINGS		25.926	49.909	90.856
	IMPORTS
		Import Value	193.836	225.120	220.501
	TOTAL IMPORTS		193.836	225.120	220.501
	Earnings Per Share (Rs.)		4.96	--	--

Particulars	31.03.2011
Sales Turnover (Approximately)	920.000

The above information has been parted by Mr. Hemant Gangar (Accounts Executive)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.02	[1.37]	2.29
Return on Total Assets (PBT/Total Assets}	(%)	4.57	[4.34]	7.11
Return on Investment (ROI) (PBT/Networth)		0.16	[0.14]	0.26
Debt Equity Ratio (Total Liability/Networth)		2.66	2.43	2.71
Current Ratio (Current Asset/Current Liability)		2.44	2.75	2.72

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	66.579	56.711	65.717

Trade reference:

· Tata Motors

· Mahindra and Mahindra

· RICO Auto

· M Tech India Limited

Note:

The Company changed its registered office from M-22, MIDC, Hingna Industrial Area, Nagpur-440016, Maharashtra, India to 501, A/B, Niranjan 99, Marine Drive, Mumbai, Maharashtra, India w.e.f. 10.09.2007. The Registered office has again shifted from 501, A/B, Niranjan 99, Marine Drive, Mumbai, Maharashtra, India to present address w.e.f. 20.03.2008

BUSINESS PERFORMANCE:

With the recovery in the economy, the company has once again recorded a steep increase in sales. Gross Sales turnover of the company for the year 2009-2010 is Rs. 660.900 Millions as against Rs. 598.700 Millions of 2008-2009. The turnover of the company has increased by 10% as against previous year’s turnover.

GLOBAL SCENARIO:

2009-10 saw foundries starting a cautious climb out of red figures. USA and the rest of Europe, with the exception of Germany and France, continued to climb arduously out of recession but the gravitational pull of the dead weight of unemployment, high debt and it’s off-spring-inflation, has continued to threaten to pull these giant economies back into what some economists predict, a ‘double-dip’ recession. Recent US Administration pronouncements of curbing outsourcing in IT sector as well as talk of a second stimulus package are stark indications that ‘all is not well’ in the world as yet. Greece, Portugal and Spain remain a drag on the United State of Europe, raising to the surface, serious fiscal-ideological as well as financial divide in the Euro Zone. Hence exports of castings form India have continued to stay stagnant.

INDIAN SCENARIO:

On the other spectrum, cautious lending norms and more stringent financial expansion, in hindsight seemed to have insulated the growing domestic economy from the aftershocks of the financial quake which created deepl fissures in the world’s largest economies leaving them in ruins. Domestic demand picked up unexpectedly in India and automotive castings recorded impressive gains in numbers and capacity. Foundries have since then achieved near 80% of installed capacity and new investments in plant and machinery have begun as foundries consolidate as well as add new, more economically competitive, large-scale capacities.

Consequently, the company has, along with it’s cost cutting measures been able to climb back into profits. In fact, the first half of the FY 2009-10 has been complete wipeout of 2008-09 losses and healthy profit in the bottom line. This trend of profit continues for the first half of 2010-11.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24110MH1996PTC095899
Name of the company	MPM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	M-22, 501, A/B, Niranjan, 99, Marindrive, Mumbai-400020, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10065622
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India, Industrial Finance Branch, Bharat Nagar, Amravati Road, Nagpur-440033, Maharashtra, India
Nature of instrument creating charge	1. Supplemental Agreement of Loan for Increase in the overall limit 2. Supplemental Agreement of hypothecation of goods and assets for increase in the overall limit 3. Letter regarding the grant of individual limits with in the overall limits
Date of instrument Creating the charge	25.11.2010
Amount secured by the charge	Rs. 265.400 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC: At 5.00% above Base rate, present effective rate 12.60% p.a. EPC/ FBD: 1.50% above base rate, present effective rate 9.10% p.a. L/C and B/G: Commission as per rate in force from time to time. Terms of Repayment Cash Credit : On Demand Margin Raw Material: 25% Finished Goods : 25% Received (Domestic): 40% Receivables (Exports): 10% EPC: 10% Bank Guarantee: 15% Letter of Credit: 15% Extent and Operation of the charge Hypothecation of entire stocks, comprising raw materials, stock in process, finished goods, consumables stores and spares, book debts, outstanding moneys, receivables, claims and bills at the factory of the company at Nagpur or at such places as may be approved by the bank from time to time including goods in transit/ shipment, outstanding moneys, book debts, receivables etc. and hypothecation of all movable machinery, excluding vehicles finance by private banks.
Short particulars of the property charged	Hypothecation of entire stocks, comprising raw materials, stock in process, finished goods, consumables stores and spares, book debts, outstanding moneys, receivables, claims and bills at the factory of the company at Nagpur or at such places as may be approved by the bank from time to time including goods in transit/ shipment, outstanding moneys, book debts, receivables etc. and hypothecation of all movable machinery, excluding vehicles finance by private banks.
Date of instrument modifying the charge	20.02.2010
Particulars of the present modification	By the present modification the CC Limit was increased from Rs. 102.500 Millions to Rs. 145.000 Millions, LC limit was increased from Rs. 70.000 Millions to Rs. 115.000 Millions and a new derivative limit for forward contract of Rs. 5.400 Million was sanctioned. Thus the total credit CC: Rs. 145.000 Millions (CC Tr: Rs. 30.000 Millions both within cc) L/C: Rs. 115.000 Million (BG: Rs. 5.000 Millions within LC) FC: Rs. 5.400 Millions Total Rs. 265.400 Millions

Name of the company	MINERAL PULVERISING MILLS PRIVATE LIMITED
Presented By	Mr. Diwakar Shashtri, Director
1) Date and description of instrument creating the change	Composite Hypothecation agreement dated 24.01.2004
2) Amount secured by the charge/amount owing on the securities of charge	Export packaging credit and foreign bill purchase Rs. 2.400 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of Stock
4) Gist of the terms and conditions and extent and operation of the charge.	Interest 6.50% p.a.
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda, Dharampeth Branch, Nagpur-440010, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Composite hypothecation agreement dated 06.02.2004
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	By this modification additional packaging credit hypothecation of stocks of Rs. 7.600 Millions was sanctioned. Thus the total limit stand at Rs. 10.000 Millions

This form is for	Modification of charge
Charge identification number of the modified	80017693
Corporate identity number of the company	U24110MH1996PTC095899
Name of the company	MPM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	M-22, 501, A/B, Niranjan, 99, Marindrive, Mumbai-400020, Maharashtra, India
Type of charge	Book Debts Floating Charge Others
Particular of charge holder	SBI Factors and Commercial Services Private Limited, Tara Chambers, 2^nd Floor, Mumbai Pune Road, Wakdewadi, Pune-411003, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement for Increase in Factoring Facilities (Hypothecation Agreement). The supplemental agreement is carried out on 02.06.2008 for the enhancement of the present credit facilities.
Date of instrument Creating the charge	02.06.2008
Amount secured by the charge	Rs. 40.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The finance charge will be at “FPLR + 0.75%, the effective rate would be : 13.25% at monthly rests. Penal interest @ 3% p.a. would be due form the date incase an invoice remain unpaid more than 45 days. Commitment charges would be 0.25% on unitized portion if the average utilization is less than60% annually. 0.10% would be handeling charges of the invoices value subject to minimum of Rs. 100+ Applicable services Tax Terms of Repayment As factoring is based on whole turnover concept, all credit invoices raised on all the approved customers which has been noted in the Annexure “A” of the sanction letter and which is the integral part of the this Hypothecation Agreement should be routed through SBI Factors and Commercials Private Limited. for PBF psot dated cheques be submitted along with the accepted Hundi while factoring invoices under the PBF facility. Prepayment Under RFF be used to liquidate outstanding under PBF as and when due. Margin 20% Pre-payment against invoices drawn against approved customer would be consider to the maximum 80% of the basic value subject to the prepayment outstanding not exceeding Rs. 30.000 Millions Extent and Operation of the charge Entire Single charge on the stock and book debts for the factoring facility with due instruments drawn for the assignment of debts in favour of the SBI Factors and Commercials Private Limited. The company will create Cash Collateral of Rs. 1.000 Million in the form of fixed deposit with SBI IFB branch with due notice of lien in favour of SBI factors Private Limited. UDC of the amount of PP limit of Rs. 30.000 Millions Others Processing fee for Rs, 500.00 per + Rs. 0.100 Million + eligible service tax
Short particulars of the property charged	Entire Single Charge on the present and future book debts and stock recorded about the mutually approved debtors for which the references is given in the sanction letter under Annexure – A and for which the records is being maintained at the factory at M-22 MIDC, Hingana Industrial Area, Nagpur at the registered office of the company.
Particulars of the present modification	By this present modification, the factoring facility, has been enhanced form present facility of Rs. 25.000 Millions to Rs. 40.000 Millions

Fixed Assets:

· Leasehold Land

· Building

· Furniture and Fixtures

· Plant and Machinery

· Electrical Installation

· Computer

· Generator

· Lab Equipments

· Cycle

· Vehicle

· Technical Knowhow

· Office Equipments

· Truck

Website Details:

Their initial products were pulverised coal dusts and coal tar pitch for use as carbonaceous additives in the green sand molding process in foundries for imparting smoother surface finish to castings.

Some years down the line, interacting with foundrymen on-site, online, they learnt quite conclusively that no green sand system was the same, and foundrymen never missed an opportunity to emphasize this fact when they tried to standardize their products in green sand applications.

So, learning that they had to adapt to the sand system rather than adapting the sand system to their products, 1988 saw the design and creation of Lustron, a pre-blended lustrous carbon producer which tried to blend the best carbonaceous additives in the best possible formulation to match the needs of the individual foundry green sand process of their customers.

While tailoring and applying their products to needs of individual sand systems, they realized that the future of marketing products like Lustron lay in understanding the sand system in to and that Professional Foundry Services would be the thrust of customer expectations from their vendors in the future.

In 2000, they complemented their manufacturing range of sand preparation consumables, to engage in Trading of Melt Preparation products such as Inoculants, especially of Barium and Calcium base. Reaching out further, in 2003 they have included Honeycomb Ceramic Filters for Metal Filtration in their product range

News and Events:

MPM Private Limited in collaboration with James Durrans and Sons Limited of UK are commencing their Joint Venture Company MPM Durrans Refracoat Private Limited for the manufacture of Refractory Coatings for Foundry Applications in India.

Inauguration on Wednesday, 28th November 2007 at MPM Private Limited, MIDC, Nagpur.

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.44.29
UK Pound	1	Rs.72.37
Euro	1	Rs.64.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.