MIRA INFORM REPORT

Report Date :

28.03.2011

IDENTIFICATION DETAILS

Name :	INDIAN SUCROSE LIMITED [W.E.F. 24.03.2004]
Formerly Known As :	OSWAL SUGARS LIMITED
Registered Office :	G. T. Road Mukerian, District Hoshiarpur -144211, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.12.1990
Com. Reg. No.:	5510903
CIN No.: [Company Identification No.]	L15424PB1990PLC010903
TAN No.: [Tax Deduction & Collection Account No.]	JLDI00268C
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Sugar

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1900000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered 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

INFORMATION PARTED BY

Name :	Mr. Kunal Singh
Designation :	Managing Director
Contact No.:	91-9999555000
Date :	22.03.2011

LOCATIONS

Registered Office/ Factory :	G. T. Road Mukerian, District Hoshiarpur -144211, Punjab, India
Tel. No.:	91-1883-249002-5
Mobile No.:	91-9999555000 [Mr. Kunal Singh]
Fax No.:	91-1883-244532
E-Mail :	csaksingh@gmail.com islcare@yahoo.co.in

DIRECTORS

(AS ON 31.03.2010)

Name :	Mr. D. P. Singh
Designation :	Chairman
Name :	Mr. Kunal Singh
Designation :	Managing Director
Name :	Mr. Jitender Singh
Designation :	Director
Name :	Mr. Pawan Dewan
Designation :	Director
Name :	Mr. Sheoraj Singh Ahlawat
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Anant Kr. Singh
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2010)

Names of Shareholders	No. of Shares	Percentage Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3,088,300	19.97
Bodies Corporate	6,022,607	38.95
Sub Total	9,110,907	58.93
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	9,110,907	58.93
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9,434	0.06
Financial Institutions / Banks	500	-
Sub Total	9,934	0.06
(2) Non-Institutions
Bodies Corporate	714,762	4.62
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	3,971,728	25.69
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	848,746	5.49
Any Others (Specify)	805,730	5.21
Non Resident Indians	805,730	5.21
Sub Total	6,340,966	41.01
Total Public shareholding (B)	6,350,900	41.07
Total (A)+(B)	15,461,807	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Sugar

Products :

Item Code No. (ITC Code)	Product Description
17011109	White Crystal Sugar
1703100	Molasses
23010000	Bagasse

Exports :

Products :

Sugar

Countries :

Pakistan

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Qty.
Licensed Capacity	TCD	5000
Installed Capacity	TCD	5000
Actual Production
- Sugar	Qtls	272400
- Molasses	Qtls	133658
- Bagasse	Qtls	842367

Note:

1. The Installed capacity is certified by management and has not Verified by the auditors being Technical matter.

2. Production of Bagasse includes 742279 Qtls (Previous Year 1192862 Qtls) consumed internally as fuel for boiler.

3. Company has purchased white sugar of 11657.50 Qtls from Cosmos Ind. Limited During the Financial year 2009-10 ( Previous year Nil)

GENERAL INFORMATION

Customers :

Wholesalers, OEM’s and Traders

No. of Employees :

202 [as on 30.06.2009]

Bankers :

• Oriental Bank of Commerce, Mukerian Branch
• Punjab National Bank, Mukerian Branch

Facilities :

SECURED LOANS	AS ON 31.03.2010	AS ON 31.03.2009
A) Term Loans
- Punjab National Bank	266.079	340.948
- Interest Accrued and Due	2.660	1.728
- Govt. of India, Sugar Development Fund (SDF)	16.000	0.000
B) Cash Credit
- Punjab National Bank	731.906	574.983
C) Vehicle Loans
- Scheduled banks	2.044	4.268
- Interest Accrued and Due	0.021	0.039
Total	1018.710	921.966

NOTES :-

1) Term loans from Punjab National bank are secured against hypothecation of all the plant and machineries of the company.

2) Cash credit limit is secured by way of pledge of sugar stocks and hypothecation of stocks of stores, Packing material and of Molasses.

3) Term loan, cash credit limits and Bank Guarantee taken from Punjab National Bank are further secured by way of first charge on company's immovable properties situated at Mukerian Tehsil Dasua District Hoshiarpur, Punjab.

4) Term Loans and cash credit limit except the Term Loan from sugar development fund are also secured by way of personal guarantees of three directors of the company

5) The Vehicles loan from banks are secured against vehicles financed by them.

6) The amount of term loan repayable with in year is Rs. 60.406 Millions (Previous year Rs. 51.667 Millions)

7) Term loan from Govt. of India, Sugar development fund are secured by way of Bank guarantee given by the company.

Banking Relations :	--
Auditors :
Name :	B. K. Kapur and Company Chartered Accountants
Address :	Ghaziabad
Associates/Subsidiaries :	Ranger Breweries Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Share	Rs.10/- each	Rs. 180.000 Millions
7000000	Preference Shares	Rs.10/- each	Rs. 70.000 Millions
	Total		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15461807	Equity Share		Rs. 154.618 Millions
	Less : Calls unpaid		Rs. 0.435 Million
	Total		Rs, 154.183 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		154.183	154.183	154.200
2] Share Application Money		70.000	0.000	0.000
3] Reserves & Surplus		253.975	208.520	169.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		478.158	362.703	324.100
LOAN FUNDS
1] Secured Loans		1018.710	921.966	650.400
2] Unsecured Loans		111.058	2.150	4.800
TOTAL BORROWING		1129.768	924.116	655.200
DEFERRED TAX LIABILITIES		92.825	100.632	0.000
TOTAL		1700.751	1387.451	979.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		762.756	541.717	555.400
Capital work-in-progress		137.925	0.000	0.000
INVESTMENT		20.223	20.223	11.700
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	686.895	619.978	614.300
	Sundry Debtors	94.454	73.514	71.300
	Cash & Bank Balances	212.478	278.201	5.700
	Other Current Assets	0.000	0.000	1.900
	Loans & Advances	1003.241	818.209	380.200
Total Current Assets		1997.068	1789.902	1073.400
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.717	15.571
	Other Current Liabilities	1182.615	933.330	650.200
	Provisions	21.889	15.490	11.000
Total Current Liabilities		1217.221	964.391	661.200
Net Current Assets		779.847	825.511	412.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1700.751	1387.451	979.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	997.679	955.461	1076.100
		Other Income	12.651	0.486	0.300
		TOTAL (A)	1010.330	955.947	1076.400
Less	EXPENSES
		Material and Manufacturing Expenses	764.304	760.792
		Salaries, Wages and Benefits	50.076	46.481
		Administration and Other Expenses	19.257	18.551
		Increase in Stocks	(44.537)	(6.936)
		TOTAL (B)	789.100	818.888	967.900
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		221.230	137.059	108.500
Less	FINANCIAL EXPENSES (D)		103.265	59.156	60.100
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		117.965	77.903	48.400
Less/ Add	DEPRECIATION/ AMORTISATION (F)		50.521	48.572	47.200
	PROFIT BEFORE TAX (E-F) (G)		67.444	29.331	1.200
Less	TAX (I)		21.989	(9.262)	12.400
	PROFIT AFTER TAX (G-I) (J)		45.455	38.593	(11.200)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		140.584	101.991	NA
	BALANCE CARRIED TO THE B/S		186.039	140.584	NA
	EARNINGS IN FOREIGN CURRENCY		10.204	--	NA
	Earnings Per Share (Rs.)		2.94	2.50	(0.72)

Expected Sales (2010-2011) : Rs. 1100.000 Millions

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Audited / UnAudited	UnAudited	UnAudited	UnAudited
Net Sales	200.710	158.410	193.370
Total Expenditure	178.910	170.880	144.110
PBIDT (Excl OI)	21.800	[12.470]	49.260
Other Income	5.140	0.570	0.210
Operating Profit	26.940	[11.900]	49.470
Interest	34.530	35.130	48.570
Exceptional Items	0.000	0.000	0.000
PBDT	[7.600]	[47.030]	0.900
Depreciation	13.010	13.020	13.110
Profit Before Tax	[20.610]	[60.050]	[12.210]
Tax	0.000	[2.300]	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	[20.610]	[57.750]	[12.210]

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.50	4.04	(1.04)
Net Profit Margin (PBT/Sales)	(%)	6.76	3.07	0.11
Return on Total Assets (PBT/Total Assets}	(%)	2.44	1.26	0.07
Return on Investment (ROI) (PBT/Networth)		0.14	0.08	0.00
Debt Equity Ratio (Total Liability/Networth)		4.91	5.21	4.06
Current Ratio (Current Asset/Current Liability)		1.64	1.86	1.62

LOCAL AGENCY FURTHER INFORMATION

Company History - India Sucrose

1990 - The Company was incorporated as a public limited Company on 12^th December, and the Certificate of Commencement of business was obtained on 18th December. It was originally promoted jointly by Punjab Aro Industries Corporation (PAIC) and Mukerian Papers Limited

Subsequently Mukerian Papers Limited its nominee Companies including Malwa Cotton Spinning Mills Limited,. and Punjab Woolcombers Limited took over the Control of the Company.

1992 - The Company had set up a plant for the manufacture of white crystal sugar with an installed capacity of 2500 TCD, expandable upto 3500 TCD at Punjab. The plant had also certain additional facilities like co-generation of power to the extent of 6.6 M.W. Commercial production was commenced from 1st November.

1993 - Sales amounted to Rs 374 Millions. The production of sugar was 22,282 tonnes at an average recovery of 8.89%.

- During August/September the Company offered 45,00,000 zero-interest secured partly convertible debentures (PCDs) of Rs. 40 each for cash at par along with detachable and separately tradable warrants. Of which 6,60,000 PCDs were offered to Promoters, Directors, their friends and relatives (All were taken up). 3,84,000 PCDs were offered to Mutual Funds (None were taken up. Added to public Issue). 1,92,000 PCDs were offered to employees (All were taken up) 10,89,000 PCDs were offered to NRIs (All were taken up) 21,75,000 PCDs were offered to public (All were taken up including unsubscribed PCDs of Mutual Funds).

- Part A of Rs 10 of each PCD would be compulsorily and automatically converted into one equity share of Rs 10 each at par on the date of allotment. Part B of Rs 30 was to be redeemed at par at the end of 25 months from the date of allotment which also carry a detachable and separately tradeable warrent which would provide an option to the warrent holder to get an equity shares for every warrant held at a price not exceeding Rs 30 per equity share during the 10th month from allotment.

- 63,70,007 No of Shares Existing capital held by promoters.

1994 - Sales decreased to Rs 295.600 Millions due to low capacity utilisation on account of less availability of sugarcane and market depression due to large scale import of sugar. Production during the year amounted to 23,640 tonnes at an average recovery of 8.96%.

- The Company proposed to increase the sugar plant capacity to 3,500 TCD by modification in the existing plant and was also planning for forward integration by setting up a plant for manufacturing of Ethyl Alcohol from Molasses.

1994 - 33,21,800 equity share of Rs. 10 each at a premium of Rs 20/- per share alloted to the warrantholder opting for convertion.

1995 - 12,70,000 equity shares of Rs 10/- each for cash at allotted to IFCI & ICICI for exercising their option to convert part of their loan in to equity.

1995 - Sales increased to Rs 395.700 Millions. Production amounted to 36,805 tonnes in 146 crushing days. The overall performance of the Company was severely affected due to increase in input cost and decrease in selling price of finished products.

1996 - The Company produced 49,998 tonnes of sugar in 209 crushing days.

2005

-Delists securities from the Ahmedabad Stock Exchange (ASE) w.e.f. July 11, 2005.

-Indian Sucrose acquires Cosmos Industries Limited, Dhuri

PERFORMANCE REVIEW

The company maintains outstanding performance in the term of net profit in compare to last year. As compared to last year turnover of Rs. 1017.223 Millions the company achieved turnover of Rs. 1038.437 Millions during the current year. Because of increase in cost of raw material but increase in the sugar sale price the net operating profit before tax (PBT) has increased to Rs. 67.443 Millions during the year as compared to Rs. 29.331 Millions during last year. During the year, the Company has crushed 3060357 QTLS of Sugarcane and produced 272400 BAGS of Sugar in 77 crushing days, as compared to previous year crushing of 4175589 QTLS of sugarcane and production of 396474 BAGS of Sugar in 131 crushing days.

The capacity utilization of the plant during the year was 79.50% and the average recovery was 8.87% as compared to capacity utilization of 63.75 % and average recovery of 9.50 % in the previous year.

DIRECTORS

Sh. Dharmpal Singh, Chairman, has been appointed as a whole time Director of the Company with effect from March 13, 2008. Sh.Kunal Singh is a young second generation entrepreneur, having wide experience of accounting, marketing and finance matters. He has been appointed as a Managing Director of the Company with effect from June 16, 2010 for the period of five (5) years, subject to approval of shareholders.

Mr. Deepak Yadav, resigned as Director and Managing Director, w.e.f. 1.04.02009

The company expresses its sincere appreciation for the valuable services rendered by Mr. Deepak Yadav during the tenure as managing Director of Indian Sucrose Limited Sh. Pawan Dewan and Sh. Sheoraj Singh Ahlawat, Independent Directors are a businessman having wide experience of accounting and finance matters.

Sh. Jitendra Singh, Non-Executive Directors, shall retire at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment.

INDUSTRY STRUCTURE & DEVELOPMENT:

Indian sugar industry is highly fragmented with organized and unorganized players. The unorganized players mainly produce Gur and Khandari, the less refined forms of sugar. The government had a controlling grip over the industry, which has slowly yet steadily given way to liberalization. The report provides comprehensive analysis about the structure of Indian sugar industry by explaining the above facets. Besides the classification of sugar products and by-products like molasses, their uses too have been extensively covered. In 2008-09, Sugar Industry witnessed a dramatic change in Sugar cycle, with the reversal of high supply - low prices scenario. The year started with high sugar surplus, low prices and higher inventories. By the second half of the year it was clear that sugarcane planting and also its diversion reflecting falling production in the current and next sugar year, sugar prices firmed up in the second half of the year. The shift in the cropping pattern from cane to other crops and diversion to non - crystal sugar production resulted in lower cane and hence lower supply of sugar.

We are anticipating a sharp jump in production in 2010-11, which should result in a small surplus. Consumption is

expected to be marginally lower at 220 lakh tonnes compared to 230 lakh tonnes last year. Production in the international market will be high while consumption is expected to increase by around 2%.

This industry has the potential to be a leading player not only in the domestic markets but also in the international markets with several value-additions like clean power and ethanol. The industry has the potential to do well if we have a conducive long-term sugar policy with minimal controls. If decontrolled, most of the sugar manufacturing companies will do well depending on the plant, managerial and administrative efficiency of the company.

OUTLOOK:

One of the biggest problems ailing the sugar industry is volatility. I feel the market is driven more by sentiments and expectations rather than the prevailing fundamentals. India produced some 284 lakh tonnes of sugar in 2006-07, about 264 lakh tonnes in 2007-08 and 145 lakh tonnes and 180 lakh tonnes in 2008-09 and 2009-10 respectively. To add to our woes, sugar prices have declined to Rs 2,900 per tonne from a high of Rs 4,200 per tonne less than six months ago because of the stringent measures - such as stock limitations on bulk consumers and weekly sale releases - taken by the union government to reduce sugar prices. On the other hand, imported raw sugar is being sold for 16 cents a pound from a high of 26 cents a pound six months ago. The drop in international sugar prices is resulting in largescale import of sugar into the country which will further drive down sugar prices. The industry apprehends that the regulators' efforts to bring down prices will seriously hurt sugarcane farmers, especially when the country is expecting surplus sugar production. The sugar industry was able to pay a whopping amount of Rs 45,0000 Millions to the farmers in 2009- 10 as against Rs. 210000 Millions Paid in 2008-09.

OPPORTUNITIES:

• Government of India and the sugar industry are assisting each other in addressing and bringing the demand and supply gap on consistent basis. Thereby, the industry was allowed to import approx. 2MMT (White Sugar) of raw sugar to improve its availability in domestic market during 2008-2009, which is being exported now.

• Sugar consumption is estimated at 21 million tonnes in 2009- 10. So the estimated closing stock as on September 30 is 5.8 million tonnes, ISMA said in a statement. • India, the world's largest consumer of sugar, is importing sugar from February, 2009, to meet domestic demand as production has been lower than the annual requirement.

• The country had produced 14.7 million tonnes in 2008-09 and this year, the output is estimated at 18.8 million tonnes.

SEGMENT WISE PERFORMANCE:

The Company is having only one business segment i.e. manufacture white crystal sugar.

Internal Control Systems and their adequacy:

The company maintains adequate Internal Control Systems designed to provide reasonable assurance that assets are safeguarded, transaction are executed in accordance with management authorization and are property recorded and accounting records are adequate for preparation of financial statements and information. A comprehensive system of Internal controls employed by the company ensures optimal use of the resources available at its disposal. Internal Audit and checks are on going process within the Company. The Audit Committee of the Board, headed by an independent non- executive director, is in place to review the internal controls and other financial systems. The internal control system of the Company is monitored and evaluated by independent internal auditors and their reports are periodically reviewed by the Audit Committee. The observations and comments of the Audit Committee are appraised to the Board.

The internal auditors look into various areas of the company with following broad objectives:

• To ensure critical examination of reasons with a view to trouble shooting of the problems that may arise due to

shortcomings in systems and procedures.

• To review systems and procedures in purchase, capital investments and routine operations.

• To identify shortcomings that may adversely affect the company's operations and profitability.

• To ensure the compliance of Company policies and procedures.

• To identify non-performing assets and suggest the procedure for its disposal.

• Any other assignment provided by the management.

FIXED ASSETS

• Freehold Land
• Trade Mark
• Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipments
• Vehicles and Tractors

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

Rs in Millions

PARTICULARS	Unaudited Quarter ended on 31^st December 2010	Unaudited nine month ended on 31^st December 2010
(a) Net Sales / Income from operations	193.253	546.457
(b) Other Operating Income	0.124	6.044
Total Income	193.377	552.501
Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	(332.633)	(20.909)
b) Consumption of raw materials	429.945	429.945
c) Purchase of traded goods
d) Employees cost	16.241	36.835
e) Depreciation	13.116	39.145
f) Other expenditure	30.563	48.041
Total	157.232	533.057
Profit from operations before other income, interest and exceptional Items	36.145	19.444
Other income	0.212	5.920
Profit before interest and exceptional Items	36.357	25.364
Interest	48.569	118.236
Profit after Interest but before Exceptional Items	(12.212)	(92.872)
Exceptional Items	--	--
Profit (+)/Loss(-) from Oridinary Activities before tax	(12.212)	(92.872)
Tax expense	--	(2.302)
Net Profit (+)/Loss(-) from Ordinary Activities after tax	(12.212)	(90.570)
Net Profit (+) / Loss (-) for the year period	(12.212)	(90.570)
Paid up equity share capital	154.183	154.183
Aggregate of non promoters share holding
Number of shares (Face value of Rs.10/- per share)	6350900	6350900
Percentage of shares	41.07	41.07

• EPS has not been annualized expect for the year and figure

NOTE

1. The above results were reviewed by Audit Committee, considered and approved by the board of directors of the company at its meeting held on 14.02.2011

2. The activities of the Company relate to only one segment i.e. Sugar Manufacturing

3. Given the seasonal nature of the industry the performance of any quarter may not be true and / or proportionate reflection of the Annual Performance of the Company

4. Summary of Investors complaints

Opening : Nil ; Received during the quarter : Nil ; Resolved during the Quarter : Nil

5. Previous Period figures have been regrouped / reclassified where ever necessary

6. Provision for deferred tax liability as per AS – 22 will be made in Annual Audit Accounts ended on 31^st March 2011

7. The Provision for payment of Retirement benefit such as gratuity and leave encashment has not been made on Actual valuation basis as required by Mandatry “AS-15” Employees Benefits.

Revised issued by the institute of chartered accountants of India. The additional liabilities if any will be provided in the next quarter.

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.44.65
UK Pound	1	Rs.71.91
Euro	1	Rs.63.28

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.