MIRA INFORM REPORT

Report Date :

17.06.2011

IDENTIFICATION DETAILS

Name :	STERLING AUXILIARIES PRIVATE LIMITED
Registered Office :	Plot No. 30/31 Marol Bhavan, Marol Co-Operative Industrial Estate, MV Road, Andheri (East), Mumbai-400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	25.07.1985
Com. Reg. No.:	11 – 36959
Capital Investment/ Paid-up Capital:	Rs. 1.100 Million
CIN No.: [Company Identification No.]	U74999MH1985PTC036959
TAN No.: [Tax Deduction & Collection Account No.]	MUMS42830E
PAN No.: [Permanent Account No.]	AAACS5916Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Chemical Auxiliaries
No. of Employees:	Approximately 400

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 470000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as 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. Niren
Designation :	Chief Accountant
Date :	16.06.2011

LOCATIONS

Registered Office :	Plot No. 30/31 Marol Bhavan, Marol Co-Operative Industrial Estate, MV Road, Andheri (East), Mumbai-400059, Maharashtra, India
Tel. No.:	91-22-28507379 / 66952200 / 40320200 -206/ 207/ 40320000 / 4032 0201/ 28597891/ 40320205/ 66921909/ 28505242
Fax No.:	91-22-28597892 / 28506972 / 28597823
E-Mail :	export@sterlingaux.com sales@sterlingaux.com niren@sterlingaux.com gksalian@artekchemicals.com
Website :	www.sterlingauxiliaries.com
Location :	Owned
Factory 1 :	Plot No. L-3, Novapur Road, MIDC, Tarapur – 401506, Boisar, Maharashtra, India
Tel No.:	91-2525-325557
Fax No.:	91-2525-271317
Factory 2 :	M.I.D.C., Tarapur-401506, Maharashtra, India
Factory 3 :	Plot No. 12/A-2, GIDC, at P O Dahej Taluka Vagra, District Bharuch – 392 1230, Gujarat , India
E-Mail :	export@sterlingaux.com sales@sterlingaux.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Anish R. Goenka
Designation :	Director
Address :	20, Vinayak Kunj, 12th Road, JVPD Scheme, Vile Parle (West), Mumbai – 400 049
Date of Birth/Age :	04.06.1977
Date of Appointment :	05.10.2000
DIN No.:	00016688
Name :	Mr. Ajit Kantilal Parekh
Designation :	Director
Address :	E. Asamit Bajaj Road, Vile Parle (West), Mumbai-400 056
Date of Birth/Age :	30.12.1949
Date of Appointment :	24.06.1986
DIN No.:	00163710
Name :	Mr. Sandeep Chokhani
Designation :	Whole Time Director
Address :	24, Chandanbala, M.G. Road, Vile Parle (East), Mumbai-400057, Maharashtra, India
Date of Birth/Age :	03.05.1972
Date of Appointment :	17.01.2010
DIN No.:	02346782
Name :	Mr. Naresh Prakashchand Aggarwal
Designation :	Additional Director
Address :	Plot no. 20, Rajkamal Apartment Church Road, Marol, Andheri (East), Mumbai – 400 059, Maharashtra
Date of Birth/Age :	28.03.1951
Date of Appointment :	22.01.2007
Date of Ceasing:	01.01.2010
DIN No.:	01737940

KEY EXECUTIVES

Name :	Mr. Niren
Designation :	Chief Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Beniprasad Gangabux Goenka	591
Rajendra Beniprasad Goenka	7547
Anish Rajendra Goenka	9167
Anuj Sushil Goenka	8937
Rajendra Beniprasad Goenka (H.U.F.)	6197
Amit Rajendra Goenka	9267
Artek Surfin Chemicals Limited, Maharashtra, India	15667
Anjanadevi Sunil Goenka	8913
Sushila Sushil Goenka	6167
Ajit Kantilal Parekh	1
Asha Rajendra Goenka	6167
Sejal Vishal Goenka	6167
Payal Amit Goenka	6167
Smriti Anuj Goenka	5833
Total	96788

Equity Shares Breakup (Percentage of Total Equity)

as on 30.09.2010

Category	Percentage
Bodies corporate	16.19
Directors or relative of directors	40.20
Other top fifty (50) shareholders	43.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemical Auxiliaries

Products :

· Surfactants and Emulsifiers

· Textile Chemicals

· Pharmaceutical Cosmetic And Food Industries

· Paints, Pigments And Ink Industries

· Perfumery Industries

· Electroplating - Metal Finishing and Anti Corrosion

· Paper Chemicals

· Speciality Emulsifiers and Wetting Agents

· Antioxidants

· Alkyl Alkanolamines

· Alkanolamines

Generic Names of principal Products of Company

Item Code No. (ITC Code)	Product Description
108.00	Ethylene Oxide Condensates

Terms :

Purchasing :

Depend

PRODUCTION STATUS (As on 31.03.2009):-

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Oxide Condensates	20000	30000	15731.884

GENERAL INFORMATION

Customers :

OEM and Manufacturer

No. of Employees :

Approximately 400

Bankers :

· Saraswat Co-Operative Bank Limited, Fort Branch, Fort, Mumbai – 400 001

· Bank of India, Boisar Branch, Boisar – 401 506

· Citi Bank, Fort Branch, Fort, Mumbai – 400 001

· Citi Bank N.A., CITI Business, CITI Bank Centre, 2^nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051

Email: vindo.raghavan@citigroup.com

· The Hongkong and Shanghai Banking Corporation Limited, 52/60, Mahatma Gandhi Road, Fort, Mumbai – 400 001, Maharashtra

· Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

· ICICI Bank Limited

· State Bank of India, Dahej

· State Bank of India, Mumbai

· Royal Bank of Scotland N.V., 7^th Floor, Sakhar Bhavan, Nariman Point, Mumbai-400021, Maharashtra, India

Facilities :

Secured Loans	31.03.2009 (Rs. in Millions)	31.03.2008 (Rs. In Millions)
From Bank :
Term Loan form HDFC Bank	15.565	19.685
Term Loan form CITI Bank	0.000	35.000
Credit Facilities from Citi Bank N.A.
Pre-Shipment Export Credit	174.457	64.037
Post Shipment Export Credit	53.474	0.000
Cash Credit	28.429	75.769
Credits facilities form the Hongkong and shanghai Banking Corporation Limited
Pre- Shipment Export Credit	32.968	42.943
Post Shipment Export Credit	13.992	0.000
Total	318.885	237.434
Note: a) Term Loan from HDFC Bank Limited is secured by:- i) Secured against property of a group company. b) Credit facilities from Citi Bank N.A. is secured by:- i) First charge on stock and book debts ii) Personal Guarantees of major shareholders/ relatives of a director iii) Corporate Guarantee of a company holding shares in this company. c) Credit facilities form the Hongkong and Shanghai Banking Corporation Limited is secured by:- i) Personal Guarantee of major shareholders/ relatives of a director ii) Corporate guarantee of a company holding shares in this company. iii) First pari passu charge on present and future stocks and receivables. iv) First pari passu charge by way of equitable mortgage on the Tarapur Factory Property. v) First pari passu charge on all Fixed Assets including Land and Building and Plant and Machinery at Dahej.

Unsecured Loans	31.03.2009 (Rs. in Millions)	31.03.2008 (Rs. In Millions)
Loan from Corporate and Others	111.246	123.692
Sales tax Deferment Loan	13.576	15.019
Total	124.822	138.711

Banking Relations :

--

Auditors :

Name :

ASL and Company

Chartered Accountant

Address :

102,Gauresh Apartments, Agarkar Chowk, Old Police Lines, Andheri East, Mumbai-400069, Maharashtra, India

Tel No. :

91-22-26841173/ 26838557/ 26830558/ 26838038

Fax No.:

91-22-26842206

E mail:

choudhary.pansari@mtnl.net.in

Subsidiary Company:

Kawaken Sterling Surfactants Private Limited

U24296MH2007PTC175631

Associates :

· Artek Surfin Chemicals Limited

· Artek Home Care Private Limited

· Omtech Chemical Industries Private Limited

· Triumph Non Ionics Private Limited

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity shares	Rs. 100/- each	Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96788	Equity shares	Rs. 100/- each	Rs. 9.679 Millions

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity shares	Rs. 100/- each	Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11000	Equity shares	Rs. 100/- each	Rs. 1.100 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		1.100	1.000	1.000
2] Share Application Money		0.000	94.000	94.000
3] Reserves & Surplus		116.930	43.104	36.472
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		118.030	138.104	131.472
LOAN FUNDS
1] Secured Loans		318.885	237.434	64.396
2] Unsecured Loans		124.822	138.711	118.354
TOTAL BORROWING		443.707	376.145	182.750
DEFERRED TAX LIABILITIES		20.217	9.497	0.000
TOTAL		581.954	523.746	314.222
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		280.229	255.568	97.104
Capital work-in-progress		1.406	7.488	1.491
INVESTMENT		11.130	0.030	0.030
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	91.430	166.412	71.735
	Sundry Debtors	203.720	187.469	123.127
	Cash & Bank Balances	17.313	8.158	2.890
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	144.471	106.167	67.770
Total Current Assets		456.934	468.206	265.522
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	71.755	76.919	46.684
	Other Current Liabilities	92.629	130.627	0.000
	Provisions	3.361	0.000	3.241
Total Current Liabilities		167.745	207.546	49.925
Net Current Assets		289.189	260.660	215.597
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		581.954	523.746	314.222

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	1790.767	921.809	519.051
		Other Income		2.687	3.444
		TOTAL (A)	1790.767	924.796	522.495
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1689.672	951.536	512.816
		Advertising Expenses	(Including depreciation and financial expenses)
		Increase/ Decrease in Stock		(76.622)	(10.215)
		Labour Charges		6.768	3.178
		TOTAL (B)	1689.672	881.682	505.779
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	43.114	16.716
Less	FINANCIAL EXPENSES (D)		NA	19.577	10.270
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	23.537	6.446
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	4.559	2.254
	PROFIT BEFORE TAX (E-F) (G)		101.095	18.978	4.192
Less	TAX (I)		30.669	12.347	2.730
	PROFIT AFTER TAX (G-I) (J)		70.426	6.631	1.462
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	814.060	210.713	63.380
	TOTAL EARNINGS		814.060	210.713	63.380
	IMPORTS
		Raw Materials	221.072	106.151
		Commission	8.305	0.000
		Sales Promotion	0.396	0.000	45.454
		Books and Periodicals	0.154	0.000
		Conference Expenses	0.012	0.000
	TOTAL IMPORTS		229.939	106.151	45.454
	Earnings Per Share (Rs.)		6844.14	--	--

Particulars	31.03.2011	31.03.2010
Sales Turnover (Approximately)	2700.000	2200.000

Expected Sales (2011-2012) : Rs. 3500.000 Millions

The above information has been parted by Mr. Niren (Chief Accountant)

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	3.93	0.72	0.28
Net Profit Margin (PBT/Sales)	(%)	NA	2.06	0.81
Return on Total Assets (PBT/Total Assets}	(%)	13.71	2.60	1.16
Return on Investment (ROI) (PBT/Networth)		0.86	0.14	0.03
Debt Equity Ratio (Total Liability/Networth)		5.18	4.27	1.77
Current Ratio (Current Asset/Current Liability)		2.72	2.26	5.32

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRYCREDITORS

(Rs. in Millions)

Particulars	31.03.2009	31.03.2008	31.03.2007
Sundry Creditors	71.755	76.919	46.684

change of Address:

The Registered Office of the company has been shifted from 301 Marol Bhavan, Marol Industrial Estate, Mumbai-400059, Maharashtra, India to present address w.e.f. 01.03.2007

Financial Results:

The company has earned a Profit before tax of Rs. 101.095 Millions and Profit after tax of Rs. 70.426 Millions. No amount was transferred to General Reserve.

Contingent Liabilities not provided for:

Particulars	31.03.2009 Rs. in Millions
Letter of Credit Outstanding (secured by pledge of fixed deposit receipts of Rs. 0.462 Million)	25.587
Counter guarantee given to Bank against their bank guarantee (secured by pledge of Fixed Deposit receipts of Rs. 0.495 Million)	4.954
Claims not acknowledged as debts	11.430
Estimated amount of contracts remaining to be executed on capital account not provided for (Net of Advance) Rs. 1.700 Millions (Previous year Rs. Nil)	--

Bankers Charges Report as per Registry

Corporate identity number of the company	U74999MH1985PTC036959
Name of the company	STERLING AUXILIARIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 30/31 Marol Bhavan, Marol Co-Operative Industrial Estate, MV Road, Andheri (East), Mumbai-400059, Maharashtra
This form is for	Creation of Charge
Type of charge	· Book Debts · Movable Property (not being pledge) · Floating charge
Particular of charge holder	Royal Bank of Scotland N.V., 7^th Floor, Sakhar Bhavan, Nariman Point, Mumbai-400021, Maharashtra, India
Nature of instrument creating charge	Deed of Hypothecation of Movable Assets
Date of instrument Creating the charge	19.05.2011
Amount secured by the charge	Rs. 100.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: As Agreed by and with the Bank form time to time Terms of repayments; As Agreed by and with the Bank form time to time . Margin: AS applicable if any. Extent and operation of charge The bank is having first pari passu charge on the security given by the company.
Short particulars of the property charged (Including location of the property)	Hypothecation by way of first pari passu charge on a) Entire current assets (Stocks and book debts) of the borrower both present and future. b) Entire movable fixed assets of the borrower, both present and future

Corporate identity number of the company	U74999MH1985PTC036959
Name of the company	STERLING AUXILIARIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 30/31 Marol Bhavan, Marol Co-Operative Industrial Estate, MV Road, Andheri (East), Mumbai-400059, Maharashtra
This form is for	Creation of Charge
Type of charge	· Book Debts · Movable Property (not being pledge) · Floating charge · Others (Current Assets both present and future)
Particular of charge holder	Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Nature of instrument creating charge	Deed of Hypothecation
Date of instrument Creating the charge	12.01.2010
Amount secured by the charge	Rs. 110.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: PCFC/PSCFC: To be decided at the time of disbursement WCDL: To be decided at the time of disbursement LC-Sight: Commission: 0.8%p.a. LC-Usance: Commission: 0.8%p.a. BG: Commission: 0.8%p.a. Terms of repayments; PCFC/PSCFC: Tenor:6 months Repayment: On demand / at the end of tenor WCDL: Tenor:3 months, Repayment: On demand / at the end of tenor LC-Sight : Validity:45 days LC-Usance: Validity:45 days, Usance: 120 days BG: Tenor:12 months (including claim period) . Margin: As specified by the bank from time to time. Extent and operation of charge First pari passu charge on current assets and second pari passu charge on movable fixed assets of the Borrower (as described in Schedule of Deed of Hypothecation dated 12/01/2010).
Short particulars of the property charged (Including location of the property)	First pari passu charge on current assets and second pari passu charge on movable fixed assets of the Borrower (as described in Schedule of Deed of Hypothecation dated 12/01/2010).

Name of the company	STERLING AUXILIARIES PRIVATE LIMITED
Presented By	Ajit K Parekh, Whole time Director
1) Date and description of instrument creating the change	Goods Security Agreement dated 13.04.2001 executed by M/s Sterling Auxiliaries Private limited. (hereinafter referred to as Company) in favour of Citibank N.A (hereinafter referred to as ‘the Lender’)
2) Amount secured by the charge/amount owing on the securities of charge	Cash Credit Facilities for Rs. 7.500 millions and Sight / Usance LC for Rs. 2.500 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 stocks, book debts, plant and machinery, computer, electric fittings, air conditioners, furniture and fixtures forming part of its assets both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	· In consideration of the lender having agrees to lend advance to the company, Cash credit facilities and sight / Usance LCs under agreement and declaration by the Company, interalia, as follows: · Convenant by the company to repay the facility at above and pay interest and all other monies in the manner set out in the goods Security Agreement between the Company and the Lender and to comply with the terms and conditions of the said goods Security Agreement. · The said stocks, Book debts, Plant and machinery, computers, electric fittings, air conditioners, furniture and fixtures hypothecated, to the Lender as and by way of First charge as security for and be charged with the repayment of the loan with all interest, liquidated, damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the company to the lender in respect thereof. · The company to keep the said goods in marketable and good condition and also insured as provided therein. · Power of entry, power to take charge and / or possession of seize, recover, receive, appoint and sell , contract, dispatch fro realization or otherwise dispose of deal with all or any part of the said goods, etc, as provided therein.
5) Name and Address and description of the person entitled to the charge.	CITI Bank NA Address: Bandra Kurla Complex, G – Block Bandra (East), Mumbai – 400 051, Maharashtra
6) Date and brief description of instrument modifying the charge	Deed of Modification dated 18.11.2005 relating to increase in credit facilities.
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.	· Deed of Modification dated 13.10.2003 for Rs. 17.000 millions · Deed of modification dated 25.11.2003 for Rs. 35.000 millions · Deed of Modification dated 23.11.2004 for Rs. 45.000 millions
8) Particular of modification specifying the terms, conditions or the extent of operation of the charge in which modification is made, and the details of the modification	The Original Charge was created on 16.04.2001 fro securing Rs. 10.000 millions which was modified on 13.10.2003 for Rs. 17.000 millions which was further modified on 25.11.2003 for Rs. 35.000 millions which was further modified on 23.11.2004 for Rs. 45.000 millions hypothecated by way of first exclusive charge on stocks, book debts and plant and machinery forming part of current and movable fixed assets both present and future. The Bank has now extended additional the facilities to the Company and made a new deed of Modification dated 18.11.2005 to the extent of Rs. 65.000 millions Which is an increase of Rs. 20.000 millions against the said current and movable fixed assets (including stocks and book debts and plant and machinery) Hypothecated by way of First exclusive Charge to the Lender both present and future. All others terms and conditions as per original Goods Security Agreement remain unchanged.

Fixed Assets:

· Leasehold land

· Plant and Machinery

· Furniture and Fixtures

· Factory Building

· Computers

· Electric Fittings

· Air Conditioner

· Vehicles

· Motor Car

additional information:-

Joint Venture with Kawaken Fine Chemicals Company, Limited and Formation of Subsidiary Company.

The Company has entered in to a joint venture agreement with Kawaken Fine Chemicals Company Limited (Japan), Manufacturers of Surfactants, Catalysis and Speciality Chemicals, Accordingly a Joint Venture Company named as Kawaken Sterling Surfactants Private Limited has been incorporated with total authorised capital of Rs.19.000 Millions divided in to 19,00,000 equity shares of Rs.101- each. Initial subscribed and paid up capital of the Company is Rs.0.100 Million out of which Shares subscribed by the Company are worth Rs.60,000/- divided in to 6000 equity shares of Rs. 101- each (60% of the paid up capital of the joint venture company) and that of Kawaken Fine Chemicals Co. Limited is Rs.40,0001- divided in to 4,000 equity shares of Rs. 101- each (40% of the paid up Capital of the joint venture company). Thus the joint venture company is formed as a subsidiary of the Company (Sterling Auxiliaries Private Limited).

The joint venture is subject to the necessary statutory approvals and it has been set up for manufacture, Exports or other wise deal in domestic and international brands of specialty chemicals, surfactants, auxiliaries and allied chemicals and chemical products. The Company has provided its plot at Dahej Gujarat for setting up of a manufacturing unit of Kawaken Sterling Surfactants Private Limited.

Environment Management and Pollution Control

The company has consciously achieved and maintained high standards in environment safety and continues to preserve the same. Stringent norms and technological initiatives to improvise the environment, safety and security have been harnessed among all the level of human resources.

The required pollution control measures and study to make the environment more clean and healthy are regularly carried out.

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.44.90
UK Pound	1	Rs.72.54
Euro	1	Rs.63.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	No
--OTHER MERIT FACTORS	YES/NO	Yes
TOTAL		46

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.