MIRA INFORM REPORT

Report Date :

29.03.2011

IDENTIFICATION DETAILS

Name :	ISMT LIMITED

Registered Office :	Lunkad Tower, Viman Nagar, Pune – 411014, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	01.09.1999

Com. Reg. No.:	25-16417

CIN No.: [Company Identification No.]	L27109PN1999LC016417

TAN No.: [Tax Deduction & Collection Account No.]	PNEI00099B

PAN No.: [Permanent Account No.]	AAACJ9917A

Legal Form :	It is a public limited liability company. The company’s shares are listed on the Stock Exchanges

Line of Business :	Manufacturer of Seamless Tubes

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 23000000

Status :	Good

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having fine 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DECLINED BY

Name :	Mr. Rajiv Goel
Designation :	Chief financial Officer
Contact No.:	91-20-26630144

LOCATIONS

Registered Office :	Lunkad Tower, Viman Nagar, Pune – 411014, Maharashtra, India
Tel. No.:	91-20-66024901/ 66024905/ 41434100/ 41434101
Fax No.:	91-20-26630779
E-Mail :	legal@ismt.co.in dbhansali@ismt.co.in
Website :	http://www.ismt.co.in

Factory 1:	MIDC Industrial Area, Ahmednagar – 414111, Maharashtra, India
Tel. No.:	91-241-2777960/ 2777845/ 2777946
Fax No.:	91-241-2777363

Factory 2:	MIDC Industrial Area, Baramati – 413133, India
Tel. No.:	91-2112-243861/65
Fax No.:	91-2112-243873

Factory 3:	Jejuri – Morgaon Road, Jejuri – 412303, India
Tel. No.:	91-2115-253335

Factory 4:	Structo Hydraulics AB Storfors, Swedan

DIRECTORS

As on 31.03.2010

Name :	Mr. S C Gupta
Designation :	Chairman

Name :	Mr. A. K. Jain
Designation :	Director

Name :	Mr. J P Sureka
Designation :	Director

Name :	Mr. Gourishankar V
Designation :	Nominee Director (IDBI Nominee From 29.09.2009)

Name :	Mr. K. K. Rai
Designation :	Nominee Director (ICICI Nominee)

Name :	Mr. B R Taneja
Designation :	Director

Name :	Mr. Vinod Sethi
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Jayan Nair
Designation :	Company Secretary

Name :	Mr. Salil Taneja
Designation :	Chief Executive Officer (From 01.04.2009)

Name :	Mr. Rajiv Goel
Designation :	Chief Financial Officer

Name :	Mr. Nirmal Chandra
Designation :	President (Projects and Product Development)

Name :	Mr. I A K Prakash
Designation :	Chief Operating Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3,824,093	2.61
Bodies Corporate	71,380,000	48.72
Sub Total	75,204,093	51.33
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	75,204,093	51.33
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	11,360,227	7.75
Financial Institutions / Banks	1,994,748	1.36
Insurance Companies	400	-
Foreign Institutional Investors	7,109,158	4.85
Sub Total	20,464,533	13.97
(2) Non-Institutions
Bodies Corporate	8,485,702	5.79
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	27,257,101	18.61
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	11,144,988	7.61
Any Others (Specify)	3,944,966	2.69
Non Resident Indians	3,944,966	2.69
Sub Total	50,832,757	34.70
Total Public shareholding (B)	71,297,290	48.67
Total (A)+(B)	146,501,383	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	146,501,383	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Seamless Tubes

Products :

Products Description	Item Code No.

Hot Rolled Bars and Rods of Non Alloysteel	7214
Cast Rounds/ Hot Rolled	72247
Bars and Rods of Alloy Steel	7228
Seamless Tubes and Hollows	7304

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Seamless Hollows and Tubes	Tones	158000	135782
Components and Spares, plugs and Dies Rolls and Nos. Mandrels	Nos.	10000	42605
Cold Rolled Rings	Nos.	8000000	389965
Steel Bars	Tones	250000	231395

GENERAL INFORMATION

No. of Employees :

200 (Approximately)

Bankers :

Industrial Development Bank of India Limited
ICICI Bank Limited
Bank of Baroda
Bank of India
Bank of Maharashtra
India Overseas Bank
State Bank of India
Andhra Bank
IKB Deutsche Industrie Bank AG
Handelsbanken- Sweden

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Term Loan from Banks
Rupee Loans	2159.200	2398.000
Foreign Currency Loans	4561.600	4535.800
Working Capital Borrowings from Banks	0	0
Rupee Loans	552.600	389.600
Foreign Currency Loans	532.400	612.700
Total	7805.800	7936.100


Financial Institutions :	IFCI Limited Life Insurance Corporation of India International Finance corporation (Washington)

Banking Relations :	-

Auditors :
Name :	P. G. Bhagwat Chartered Accountant
Name :	J. K. Shah and Company Chartered Accountant

Associates:	Indian Seamless Enterprises Limited Indian Seamless Incorporated, USA Taneja Aerospace and Aviation Limited

Subsidiaries:	ISMT Enterprises SA, Luxembiurg TRIDEN Port and power Company Private Limited, India Structo Hydraulics AB (Sweden) Structo (UK) Limited, Uk Structo Hydraulics India Limited (India) ISMT Europe AB (Sweden) Nagapattinam Energy Private Limited, Japan

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
175000000	Equity Shares	Rs.5/- Each	Rs.875.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
146501383	Equity Shares	Rs.5/- Each	Rs.732.500 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		732.500	732.500	732.500
2] Equity Share Warrants		0.000	52.900	52.900
3] Reserves & Surplus		5061.100	4531.100	4633.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5793.600	5316.500	5419.300
LOAN FUNDS
1] Secured Loans		7805.800	7936.100	6698.700
2] Unsecured Loans		2189.400	2187.800	2042.800
TOTAL BORROWING		9995.200	10123.900	8741.500
DEFERRED TAX LIABILITIES		416.900	152.900	1006.100

TOTAL		16205.700	15593.300	15166.900

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		6986.600	7165.400	7501.900
Capital work-in-progress		4886.100	4311.300	2712.800

INVESTMENT		357.400	264.900	191.900
DEFERREX TAX ASSETS		0.000	0.000	1047.900
Foreign Currency Monetary Item Translation Account		49.100	401.800	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3512.200	2785.400	2106.000
	Sundry Debtors	3388.900	2297.100	2563.700
	Cash & Bank Balances	623.700	640.500	408.900
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2332.600	2267.100	1814.700
Total Current Assets		9857.400	7990.100	6893.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1222.100	1076.100
	Other Current Liabilities	4420.500	3222.200	2885.200
	Provisions	306.400	268.700	380.500
Total Current Liabilities		5949.000	4567.000	3265.700
Net Current Assets		3908.400	3423.100	3627.600

MISCELLANEOUS EXPENSES		18.100	26.800	84.800

TOTAL		16205.700	15593.300	15166.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	11932.700	13002.500	11915.400
		Other Income	114.000	141.300	183.700
		TOTAL (A)	12046.700	13143.800	12099.100

Less	EXPENSES
		Material Consumed	6126.700	7230.600	6540.900
		Energy	2147.100	1705.300	1736.400
		Direct Manufacturing	349.600	344.000	296.200
		Selling and Distribution	269.400	432.200	382.900
		Personnel	815.300	774.800	733.500
		Overheads	160.500	144.800	152.900
		Foreign Exchange (Gain)/ Loss	(85.200)	569.500	(222.600)
		TOTAL (B)	9783.400	11201.200	9620.200

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2263.300	1942.600	2478.900

Less	FINANCIAL EXPENSES (D)		786.600	824.600	665.000

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1476.700	1118.000	1813.900

Less/ Add	DEPRECIATION/ AMORTISATION (F)		564.400	558.200	552.900

	PROFIT BEFORE TAX (E-F) (G)		912.300	559.800	1261.000

Less	TAX (H)		166.200	(2.500)	260.600

	PROFIT AFTER TAX (G-H) (I)		746.100	562.300	1000.400

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		473.000	582.100	751.900

Less	APPROPRIATIONS
		Interim Dividend	0.000	73.300	72.200
		Proposed Dividend	146.500	73.300	73.300
		Tax on Interim Dividend	0.000	12.400	12.300
		Tax on Proposed Dividend	24.300	12.400	12.400
		General Reserve	500.000	500.000	100.000
	BALANCE CARRIED TO THE B/S		548.300	473.000	582.100

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1660.400	3227.000	2286.600
		Freight on Export	95.400	247.700	184.700
	TOTAL EARNINGS		1755.800	3474.700	2471.300

	IMPORTS
		Raw Materials	169.200	450.100	518.200
		Stores & Spares	419.300	229.500	121.100
		Capital Goods	169.200	450.100	1456.300
	TOTAL IMPORTS		757.700	1129.700	2095.600

	Earnings Per Share (Rs.)		5.09	3.84	6.92

QUARTERLY RESULTS

PARTICULARS	30.06.2010 (1^st Quarter)	30.09.2010 (2^nd Quarter)	31.12.2010 (3^rd Quarter)
Net Sales	3462.800	4080.100	3885.900
Total Expenditure	2956.800	3274.300	3218.400
PBIDT (Excl OI)	506.000	805.800	667.500
Other Income	46.900	15.300	18.600
Operating Profit	552.900	821.100	686.100
Interest	192.800	220.600	237.100
Exceptional Items	0.000	0.000	0.000
PBDT	360.100	600.500	449.000
Depreciation	176.000	202.800	203.700
Profit Before Tax	184.100	397.700	245.300
Tax	0.000	156.600	99.500
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	184.100	241.100	145.800
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	184.100	241.100	145.800

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.19	4.28	8.27

Net Profit Margin (PBT/Sales)	(%)	7.65	4.31	4.64

Return on Total Assets (PBT/Total Assets}	(%)	5.42	3.69	84.48

Return on Investment (ROI) (PBT/Networth)		0.16	0.11	0.23

Debt Equity Ratio (Total Liability/Networth)		2.67	2.76	2.22

Current Ratio (Current Asset/Current Liability)		1.66	1.75	2.11

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Capital	305.400	302.800	NA
Others	2706.100	1529.700	NA

OPERATIONS

During the first half of FY 2009-10, as a result of subdued demand, the steel plant as well as the tube plants operated at below optimal capacity. However, in the second half of the year, following market  recovery in the automotive sector, particularly within the domestic  markets, both steel as well as tube volumes improved.

While operations at Structo Hydraulics AB, continued to bear the brunt  of the slowdown in Europe, aggressive cost reduction measures started  yielding results during the second half and as a result, the cash break  even level of Structo Hydraulics AB, has significantly reduced.

On May 8, 2010 ISMT commenced commercial production of its Tube  expansion project at Baramati. At the same time, incremental steel  making capacity at the steel plant in Jejuri also started commercial  production on 27th September, 2010.

The 40 MW captive power project at Chandrapur district in Maharashtra is at an advance stage of completion. Key approvals, including the  Environmental Clearance is already in place and the majority of  equipment has already arrived at the project site. They expect the  project to be operational by end of this financial year.

MARKET

Due to the global recession exports suffered severely in the first half  of the year. However, during the second half of the year the drop in  export volumes was partially offset by a demand recovery in the  domestic markets. They continued to focus their efforts on developing new  customers and new products both in the domestic as well as  international markets with significant success on this front. Steel  sales increased 34% as a result of increased demand in the automotive  and bearing sectors within India.

FINANCE

On the accounting front, the Company continued to exercise its option  under the Accounting Standard (AS 11) to recognize the valuation  difference on long-term monetary items arising out of changes in  Foreign Exchange rates. As a result, the favorable rupee movement  against the US Dollar during the year helped company recover  most of  its notional loses on account of mark to market of long term liabilities; and the balance in the ‘Foreign currency translation  difference account’ now stands reduced at Rs. 5 Crore. With respect to  its term loans and working capital borrowings, the Company benefited  from lower LIBOR rates prevailing during the year.

Management Discussion and Analysis

OVERVIEW

2009/2010 was a mixed bag for ISMT. During the first hail of the year they faced the brunt of the recession with demand for their products flailing sharply. In the second half of the year sales recovered primarily on the back of increased demand from the domestic automotive and general engineering industries.

The Company ended the year with Sales of Rs.11932.700 millions while Net Profit and Earning Per Share stood at Rs.746.100 millions and Rs. 5.09 per share respectively.

Lower realisations on back of lower raw material prices along with lower exports led to an overall reduction in net sales by over 8%.

Exports :

Throughout the year they remained focused on their strategy of adding new customers and developing new products. In particular, there was a renewed emphasis on increasing steel sales and developing new customers in this segment. While these efforts will continue to pay dividends over the years, the increased focus on steel sales fetched good results with external steel sales increasing by 67% in volume terms.

As part of their strategy to expand their geographical coverage they added a number of new sales representatives in the U.S. to market their products there.

(50%)

The 40 MW captive power plants being set up at Chandrapur is progressing satisfactorily. Once operational, they expect their power costs to come down substantially.

The overall slowdown in the European auto and construction equipment industry continued to impact sales of ISMTs Swedish subsidiary, Structo Hydraulics AB., adversely. However, aggressive cost cutting measures that they had instituted started showing positive results, particularly during the second half of the year.

Their approach to Treasury continued to remain conservative and to focus on hedging the overall foreign exchange exposure without placing bets on any particular view of market movements. Like in previous years, the hedging strategy that the Company adopted was to balance expected inflows (through continuing exports) in foreign currencies with borrowings in the same currency, rather than by covering each order received by the Company through a forward contract.

INDUSTRY STRUCTURE ANID DEVELOPMENTS

Very broadly speaking the global Seamless Tube players are divided into two categories, the OCTG and Pressure

tube manufacturers dominated by Vallourec, Tenaris, Sumitomo and a number of East European and relatively recent Chinese manufacturers and the Specialized seamless tube manufacturers which would include Benteler, Ovako, Timken and theirselves. while ISMT does produce tubes for the OCTG industry its remains on the specialized engineering sectors such as Mining. Construction (Hydraulic Cylinders), Bearings, General Engineering and Automotive. Within this specialized seamless tube sector ISMT is a very substantial player and is focusing its strategies on establishing leadership position in selected applications. The addition of the PQF mill will play a key roll in unfolding this business plan and allowing ISMT to extend the leadership position that it already enjoys in the domestic market to other parts of the world.

One of the company’s key strengths is that its products are consumed across a very diverse industry and customer base. No individual customer or market segment dominates the purchases from the Company. They remain committed to this strategy and are therefore focused on constantly expanding their customer base both within India as well as internationally.

WEBSITE DETAILS

History

1977
ISMT began life in 1980 as The Indian Seamless Metal Tubes Limited. At the time, the company operated one Assel Mill with an installed capacity of 15,000 metric tons per annum. Subsequently, in 1990, production was increased to 50,000 metric tons per annum with the addition of a second Assel Mill. In 1995, The Indian Seamless Metal Tubes Limited incorporated Indian Seamless Steels and Alloys Limited. (ISSAL) to produce alloy Steel, the raw material used in the manufacture of seamless tubes. This gave the company complete control over product quality as well as deliveries.

1995
In 1995, The Indian Seamless Metal Tubes Limited launched a new company, Indian Seamless Steels and Alloys Limited. (ISSAL), to produce alloy Steel, the raw material used in the manufacture of seamless tubes, giving the company better control over product quality as well as deliveries.

2000
In April 2000 the Indian Seamless Metal Tubes Limited acquired Kalyani Seamless Tubes Limited. (KSTL), a competing manufacturer of seamless tubes. The combined entity, which retained the name The Indian Seamless Metal Tubes Limited, not only had a larger capacity (150,000 metric tons per annum) but also a much wider size range (from 6mm to 273 mm).

2005
In 2005 The Indian Seamless Metal Tubes Limited and Indian Seamless Steels and Alloys Limited merged to form ISMT Limited.

2007
In 2007, ISMT acquired Structo Hydraulics AB. Based in Stor fors, Sweden, Structo is among Europe’s leading suppliers of tubes and engineering products for the hydraulic cylinder industry. Structo Hydraulics AB has more than 400 years experience in the fi eld of iron and steel processing. Structo’s product range includes cold drawn seamless tubes, cold drawn welded tubes, roller burnished cylinder tubes, cold formed tubes, and components.

2008
In 2008 ISMT added a brand new PQF Mill. With this addition, ISMT’s tube making capacity increased from 150,000 MT/ annum to 450,000 MT/annum. Simultaneously, steel making capacity has also increased from 250,000 MT/annum to 350,000 MT/annum with the addition of a second Ladle refi ning furnace.

Milestones

1977-THE INDIAN SEAMLESS METAL TUBES LIMITED. Incorporated

1980-THE INDIAN SEAMLESS METAL TUBES LIMITED. Starts commercial production

1988-TANEJA AEROSPACE and AVIATION LIMITED. Incorporated

1989-INDIAN SEAMLESS STEELS and ALLOYS LIMITED. Incorporated

1994-TANEJA AEROSPACE and AVIATION LIMITED. First certification of airworthy flight/ commercial production

1994-INDIAN SEAMLESS STEELS and ALLOYS LIMITED. Starts commercial production

1999-KALYANI SEAMLESS TUBES LIMITED merges with THE INDIAN SEAMLESS METAL TUBES LIMITED.

2005-ISMT Limited formed through the merger of The Indian Seamless Metal Tubes Limited and Indian Seamless Steels and Alloys Limited.

2007-ISMT Limited. Acquired a 100% stake in Structo Hydraulic AB, Sweden.

Fixed Assets:

Leasehold Land
Freehold Land
Building
Plant and Machinery
Furniture and Fixture
Office Equipment
Vehicles
Technical Know – How
Software Development

PRESS RELEASE:

ISMT Exhibits at Power-Gen Europe 2010, Amsterdam, Netherland

ISMT participated as an exhibitor in Power-Gen Europe 2010, held at Amsterdam, Netherland. The exhibition was an enthralling 3 day event from 8th to 10th of June 2010. ISMT displayed its products in a smartly designed 35 square meter stall positioned at a prominent location in the RAI Exhibition Centre.

ISMT Products specific to Powegen found prime exhibit space. Header Pipes, U-Bent Heat Exchanger Tubes, Multi-Riffled Tubes and Tubes made from Creep Resistant Alloy Steels like T11, T12, T23, T92 etc were the main attractions.

The participating team consisted of Shekhar Kanhere (VP) and Sumit Kulkarni (Executive) from the Powergen Tubes marketing team at the India HO, Chaitanya Shinde (AVP-TPG) from the ISMT Tube Plant A at Ahmednagar and Richard Coles (Area Manager – Sales) from ISMT Europe. Ritwik Borthakur (Executive) from B&C also formed a part of the team.

Over the course of the event the participants interacted with many prospective customers, business associates and representatives from institutions of interest. Power-Gen Europe is Europe’s premier power generation conference and exhibition - renowned not only for its size, but also for the quality of its visitors. The combined conference and exhibition provides a vibrant and influential forum for international industry executives to make valuable connections, enabling them to succeed in one of the worlds most diverse and challenging power markets.

This is the second time it is participating in this event after ISMT’s debut last year in the same exhibition held at Cologne, Germany.

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.44.78
UK Pound	1	Rs.71.64
Euro	1	Rs.62.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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		51

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.

MIRA INFORM REPORT

3512.200

2785.400

3388.900

2297.100

623.700

640.500

0.000

0.000

2332.600

2267.100

9857.400

7990.100

1222.100

4420.500

3222.200

306.400

268.700

5949.000

4567.000

3908.400

3423.100

6.19

7.65

5.42

0.16

2.67

1.66

Unit