MIRA INFORM REPORT

Report Date :

04.11.2011

IDENTIFICATION DETAILS

Name :	EXPO GAS CONTAINERS LIMITED
Registered Office :	150, Sheriff Devji Street, Mumbai – 400 003, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.07.1982
Com. Reg. No.:	11-027837
Capital Investment / Paid-up Capital :	Rs.31.146 Millions
CIN No.: [Company Identification No.]	L40200MH1982PLC027837
TAN No.: [Tax Deduction & Collection Account No.]	MUME05138A
PAN No.: [Permanent Account No.]	AAAFE1419R
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Gas Containers Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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. S. D. Chaudhary
Designation :	Accountant
Date :	02.11.2011

LOCATIONS

Registered Office :	Expo House, 150 Sheriff Devji Street, Mumbai – 400003, Maharashtra, India
Tel. No.:	91-22-23432106/ 07/ 08/ 40339600
Fax No.:	91-22-23401635
E-Mail :	egcl@expogas.com accounts@expogas.com vessels@expogas.com expogas@vsnl.com
Website :	www.expogas.com
Area :	2000 sq. ft.
Location :	Rented
Factory :	A-10, MIDC, Murbad, District Thane – 421401, Maharashtra, India
Tel. No.:	91-2524-222366 / 222344/ 697884
Fax No.:	91-2524-222186
Email :	expomurbad@expogas.com
Regional Offices:	Located at: · Haldia · Delhi
Overseas Office :	2nd Floor, Room No. 201, AI Sharif Building, P.O. Box 22602, Port Saeed, Dubai, U.A.E
Tel No.:	+971 4 2959185

DIRECTORS

(AS ON 31.03.2010)

Name :

Mr. Shaukatali S. Mewawala

Designation :

Chairman and Managing Director

Qualification :

Technocrat, Businessman and Qualified Engineer from I.I.T., Bombay

Name :

Mr. Bhagwan N. Bharadwaj

Designation :

Non- Executive Director

Address :

1102, B1, Lakaki Road, Pune – 411016, Maharashtra, India

Qualification :

Qualified Engineer

Name :

Mr. Vazirali G. Lokhandwalla

Designation :

Non- Executive Director

Address :

244 /B, Saini Andrews RD, C-11, Gulapts, 3^rd FLR, Pali Hill, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth :

13.09.1957

Date of Appointment :

11.07.2008

DIN No.:

02276558

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L40200MH1982PLC027837	EXPO GAS CONTAINERS LIMITED	Director	12/09/2008	11/07/2008	Active	NO

Name :

Mr. Syyed Abbas Ali

Designation :

Non-Executive Director

Address :

Expo House 150 Sheriff Devji Street, Masjid Bunder Mumbai – 400003, Maharashtra, India

Name :

Mr. Hasanain S. Mewamala

Designation :

Non-Executive Director

Name :

Mr. Sajjadhussein Nathani

Designation :

Non-Executive Director

KEY EXECUTIVES

Name :	Mr. S. D. Chaudhary
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	12,050,000	63.30
Any Others (Specify)	771,075	4.05
Directors/Promoters & their Relatives & Friends	771,075	4.05
Sub Total	12,821,075	67.35
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	12,821,075	67.35
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	400	-
Sub Total	400	-
(2) Non-Institutions
Bodies Corporate	789,090	4.15
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	4,360,677	22.91
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	935,706	4.92
Any Others (Specify)	129,452	0.68
Clearing Members	15,093	0.08
Non Resident Indians	114,159	0.60
Directors & their Relatives & Friends	200	-
Sub Total	6,214,925	32.65
Total Public shareholding (B)	6,215,325	32.65
Total (A)+(B)	19,036,400	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)	19,036,400	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Gas Containers Products.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Cylinders	Nos.	--	350000	Nil
Pressure Vessels/ Structural Material	MT	--	3000	619.724

GENERAL INFORMATION

Customers :

· Indian Oil Corporation Limited

· Bharat Petroleum Corporation Limited

· Hindustan Petroleum Corporation Limited

· Gas Authority of India Limited

· Kochi Refineries Limited

· Indo Rama Synthetics (India) Limited

· Chennai Petroleum Corporation Limited

· Reliance Industries and Group Companies

· Kazstroy Service Infrastructure India Private Limited

· Larsen and Toubro Limited

· Jindal Steel and Power Limited

· Brahmaputra Cracker and Polymer Limited

· Samsung Engineering Company Limited

· Gujarat Fluoro Chemicals Limited

· MAN Ferrostaal AG

· Gulf Farabi Petrochemical Company Limited

· Cairn Energy India Pty. Limited

· Oil and Natural Gas Corporation Limited

· Navin Fluorine Industries

· Indian Farmers Fertilizer Co-operative Limited

· Lloyds Steel Industries Limited

· Gujarat Gas Company

· SHV Energy North West India Private Limited

· Bharat Shell Limited

· Cipla Limited

· National Aluminum Company Limited, (NALCO)

· Godrej and Boyce Manufacturing Company Limited

· L.G. Engineering and Construction Corporation

· (Now known as GS Engineering and Construction Corporation)

· Stork Engineers and Contractors B.V., Amsterdam

· Petroleum India International

· Mitsubishi Heavy Industries Limited – Japan

· Hitachi Zosen Corporation  – Japan

· Gapco (Sudan) Limited – Sudan

· Trimeta Petroleum – Madagascar

· LP Gas Limited – Bangladesh

· OKI Bering Middle East FZE – U.A.E.

· Simon India Limited

· SNC Lavalin - Canada

· Nagarjuna Oil Corporation Limited

· Mukand Limited

No. of Employees :

Not Available

Bankers :

· The Saraswat Co-operative Bank Limited

SME, Vile Parle (East) Branch, Bholanath CHS Limited, Ground and First Floor, Subhash Road, Vile Parle (East), Mumbai – 400 057, Maharashtra, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Financial Institution
Caparo Financial Solutions Limited	--	50.000
The Saraswat Co-operative Bank Limited (Term Loan)	34.865	--
The Saraswat Co-operative Bank Limited (Term Loan II)	5.515	--
The Saraswat Co-operative Bank Limited (Term Loan III)	8.654	--
The Saraswat Co-operative Bank Limited	34.552	--
Total	83.586	50.000
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Others	53.030	52.453
Total	53.030	52.453

Banking Relations :	--
Auditors :
Name :	Ketan N. Shah and Company Chartered Accountants
Address :	Room No. 36, 2^nd Floor, Guru Ashish Building, 1^st Ganeshwadi Corner, Zaveri bazaar, Mumbai -400002, Maharashtra, India.
Associates Companies :	v Expo Projects Eng. Services Private Limited v Arabesque Investments Private Limited v Bianca Investments Private Limited v L. Ebrahim Haji Sheriff and Company Private Limited v K.S. Shivji and Company v Steelex Corporation v Expo India Agencies

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.4/- Each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7786400	Equity Shares	Rs.4/- Each	Rs.31.146 Millions

Note:

(The Capital has been reduced from Rs.77.864 Millions comprising of 7,786,400 equity shares of Rs.10/- each to Rs.31.146 Millions comprising of 7,786,400 equity shares of Rs.4/- each.)

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		31.146	31.146	77.860
2] Warrant Application Money		45.000	11.250	0.000
3] Reserves & Surplus		19.664	14.777	0.000
4] (Accumulated Losses)		0.000	0.000	(35.690)
NETWORTH		95.810	57.173	42.170
LOAN FUNDS
1] Secured Loans		83.586	50.000	182.460
2] Unsecured Loans		53.030	52.453	25.580
TOTAL BORROWING		136.616	102.453	208.040
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		232.426	159.626	250.210
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		91.425	77.644	90.760
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.025	0.000	0.000
DEFERREX TAX ASSETS		36.617	40.575	89.760
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	58.262	38.210	24.370
	Sundry Debtors	78.167	83.283	58.550
	Cash & Bank Balances	10.459	2.117	6.510
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.620	11.994	10.190
Total Current Assets		167.508	135.604	99.620
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	48.193	87.114	13.240
	Other Current Liabilities	6.846	0.000
	Provisions	8.110	7.083	16.690
Total Current Liabilities		63.149	94.197	29.930
Net Current Assets		104.359	41.407	69.690
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		232.426	159.626	250.210

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	207.732	171.934	116.680
		Other Income	0.702	0.408	2.890
		TOTAL (A)	208.434	172.342	119.570
Less	EXPENSES
		Increase/(Decrease) in Stock	( 14.323)	(11.879)	(14.120)
		Raw Materials Consumed	87.500	80.098	32.860
		Manufacturing Costs	57.758	67.149	36.080
		Employees Costs	24.047	17.038	20.940
		Extra Ordinary Items	0.000	(52.103)	0.000
		Other Expenses	18.373	12.519	30.440
		TOTAL (B)	173.355	112.822	106.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35.079	59.520	13.370
Less	FINANCIAL EXPENSES (D)		17.947	0.355	0.550
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.132	59.165	12.820
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.673	4.613	8.590
	PROFIT BEFORE TAX (E-F) (G)		10.459	54.552	4.230
Less	TAX (H)		5.572	50.799	10.670
	PROFIT AFTER TAX (G-H) (I)		4.887	3.753	(6.440)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.243	(64.357)	NA
Less	LOSS WRITEN BACK CONSEQUENT ON REDUCTION IN CAPITAL		--	46.718	NA
	LOSS ADJUSTED AGAINST SHARE PREMIUM ACCOUNT		--	14.129	NA
	BALANCE CARRIED TO THE B/S		5.130	0.243	NA
	Earnings Per Share (Rs.)		0.63	0.48	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010	31.03.2011	30.06.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Net Sales	32.510	48.550	74.020	123.190	43.330
Total Expenditure	25.500	38.540	59.850	107.570	31.470
PBIDT (Excl OI)	7.010	10.010	14.170	15.620	11.860
Other Income	0.070	0.000	0.040	0.000	0.040
Operating Profit	7.080	10.010	14.210	15.620	11.900
Interest	3.490	5.550	8.100	8.230	7.690
Exceptional Items	0.000	0.000	0.000	0.000	0.000
PBDT	3.590	4.460	6.110	7.390	4.210
Depreciation	1.890	1.890	1.890	1.770	1.850
Profit Before Tax	1.710	2.560	4.220	5.620	2.360
Tax	0.000	0.000	0.000	(6.550)	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000
Profit After Tax	1.710	2.560	4.220	12.170	2.360
Extraordinary Items	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	1.710	2.560	4.220	12.170	2.360

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.34	2.18	(5.39)
Net Profit Margin (PBT/Sales)	(%)	5.03	31.73	3.62
Return on Total Assets (PBT/Total Assets}	(%)	4.04	25.58	2.22
Return on Investment (ROI) (PBT/Networth)		0.11	0.95	0.10
Debt Equity Ratio (Total Liability/Networth)		2.09	3.44	5.64
Current Ratio (Current Asset/Current Liability)		2.65	1.44	3.33

LOCAL AGENCY FURTHER INFORMATION

CURRENT YEAR PERFORMANCE

The Company achieved turnover of Rs.208.400 Millions against Rs.172.300 Millions in the previous year. This is about 21% growth. The profits before extra ordinary income also increased significantly from about Rs.244.800 Millions to Rs.1045.900 Millions.

In order to consolidate the operations and enhance capabilities further, the Company undertook expansion of its facilities costing about Rs.32.500 Millions. This was funded by Saraswat Bank to the extent of Rs.23.000 Millions of Term Loan and the balance was funded from internal accruals of the Company. With the completion of this expansion, the Company has successfully enhanced its capabilities to offer wider range of products and also increased its capacity significantly.

OPPORTUNITY AND FUTURE OUTLOOK

Indian economy is growing at a healthy rate of 8.5 to 9%. Capital goods industry is also doing well and several projects are coming up in hydrocarbon, power, petrochemical and fertilizer sectors. At present, the Company has healthy order position of over Rs.360.000 Millions.

The Company is also working actively with reputed Companies like L and T, Samsung, Toyo Engineering, BPCL, HPCL for further orders. They are confident that your Company will be able to show healthy growth in the current year and have substantial order book position at the end of current financial year.

The Company has also been approved by reputed Engineering Consultancy firms for fabrication of new products including Heat Exchangers. The Company is also exploring and pursuing orders for site construction activities as well as overseas business. They are also in discussions with L and T for development of specialized equipments.

REDUCTION OF CAPITAL

During the year the Company had passed a Special Resolution at an Extra Ordinary General Meeting held on 11th June 2009 for Reduction of Paid- up Share Capital of the Company from Rs.77.864 Millions divided into 77,86,400 Equity Shares of Rs.10 each fully paid up to Rs.31.146 Millions divided into 77,86,400 equity shares of Rs.4/- each fully paid up by canceling the capital to the extent of Rs.6/- per Equity share thereby the amount of the Share Capital getting reduced by Rs.46.718 Millions. The Company had applied to Hon’ble High Court., Mumbai for its approval for the Reduction of the paid up capital of the Company as required under Section 100 of the Companies Act, 1956 after obtaining the No Objection Certificate of Mumbai Stock Exchange where the shares of the Company are listed. The Company received the approval from the Hon’ble High Court, Mumbai. The Company fixed the record date and the script trading was suspended for some time. Thereafter the equity shares were again listed by the Mumbai Stock Exchange with the face value of Rs.4/- per share. The Authorised Capital of the Company was also reclassified to make it as Rs.4/- per share vide ordinary resolution passed at last Annual General Meeting of the Company.

PREFERENTIAL ISSUE OF CONVERTIBLE WARRANTS

The Company passed special resolution for the Preferential Issue of 45,00,000 Convertible Warrants of Rs.10/- each for cash aggregating to Rs.45.000 Millions convertible at the option of the holder into one Equity share of Rs.10/- each (or such adjusted numbers for any bonus, stock splits or consolidation, reduction or other reorganization of the capital structure of the company) by passing special resolution at its Extra ordinary General Meeting held on 2nd March 2009. The necessary in-principle approval was obtained from the Mumbai Stock Exchange and the Company has allotted 45,00,000 Convertible Warrants of Rs.10/- each for cash at par at its Board Meeting held on 31.03.2009. The Company applied to SEBI for the exemption from open offer as per regulation 4 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation 1997. The Company was fortunate enough to get the said approval from SEBI vide their order dated 27th April 2010. The Company allotted 1,12,50,000 equity shares on 19th May 2010 and have applied to Mumbai Stock Exchange for listing of the said shares.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The fiscal 2008-09 was a year in which the world went through economic upheavals, affecting growth, demand and new investments. Now the Indian economy is back on growth path. Especially the latter half of fiscal 2009-10 was driven by an extra ordinary level of co-ordinated international action in the form of policy stimulus, monetary as well as fiscal. As a result the industrial growth made rapid strides, registering a double digit increase in the second half of financial year 2010.

However given the poor monsoon and rise in the global commodity prices inflation has risen sharply since November 2009 and the same is a key challenge for the policy make rs in the near term.

OUTLOOK

The future scenario offers both challenges and opportunities. Engineering industry continues to be in demand. Scope of business is still good for the next 5 years. India has also emerged as exporter of process plant equipments and with new projects announced in Gulf there are good prospects internationally also.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particular	31.03.2010	31.03.2009
	(Rs. In Millions)
Claims against the company not acknowledge as debts	Nil	Nil
Bank Guarantee	28.547	8.766
In respect of sales Tax	8.592	10.938
Total	37.139	19.704

FIXED ASSETS

Ø Land

Ø Factory Shed

Ø Furniture and Fixture

Ø Vehicles

Ø Spares Tools and Dies

Ø Plant and Machinery

Ø Electrical Installation

Ø Office Equipments

Ø Computers

WEBSITE DETAILS:

Subject is an integrated Engineering and Construction Company having vast experience in manufacturing a wide range of process plant equipments such as Coded pressure vessels, Columns and Towers, Reactors, Heat Exchangers etc. which are required for Oil, Gas, Petrochemical and Fertilizer Industry. They also have vast experience in execution of turnkey projects for construction of Fixed and Floating Roof Field Storage Tanks, Mounded Storage Vessels, Horton Spheres, Cryogenic Tanks, In-plant piping and cross country pipe work.

The manufacturing facilities are located at Murbad, near Mumbai where all basis infrastructure facilities are available. The facilities are approved by Chief Controller of Explosives and Directorate of Boilers. They are Certified ISO 9001:2008 by BVIS. They have also been accredited and authorized to use ‘U’ Stamp by American Society of Mechanical Engineers as well as “R” Stamp & “NB” Stamp. We manufacture the aforesaid equipments as per National and International standards such as IS, BS, ASME, TEMA and API under reputed Third Party Inspection Agencies like Lloyds Register, Bureau Veritas, Det Norske Veritas, TUV etc. The Material of Construction being used for the aforesaid equipments are Carbon Steel, Stainless Steel, Alloy Steel, Cladded Steel, NACE and NACE+HIC.

They have worked with some of the renowned Engineering and Project Management Consultants like Aker Kvaerner, Foster Wheeler, Toyo Engineering, Jacobs H&G, Uhde India, Engineers India Limited, SNC Lavalin, Projects and Developments India Limited, Tecnimont ICB, Sai-Pem India Project Services, Linde Engineering, Technipt KT, Lurgi India Private Limited, Larsen and Toubro Limited,  etc. The Clientele list includes Samsung Engineering, L.G. Engineering and Construction Corpn., Hitachi Zosen Corporation, Gulf Farabi Petrochemical, Manferrostaal A.G., Mitsubishi Heavy Industries, Galana Refinery, Indian Oil, Bharat Petroleum, Hindustan Petroleum, GAIL, Cochin Refineries, ONGC, Indo Rama Synthetics, Cairn Energy India Pty. Limited, Chennai Petroleum, L&T Limited, IFFCO, Kazstroy Service Infrastructure India Private Limited, Jindal Steel and Power etc.

Company is a company with customer satisfaction as its prime objective. They believe that to maintain the success, They must always exceed the customer’s expectations and they are dedicated to achieving this. The experience provides clients with an undivided guarantee on the workmanship and performance of their equipments and products.

Dedication to work and deepest commitment to their clients have propelled them to strive and integrate the science of engineering and design with the art of perfect execution, qualitative service and in-time delivery. They are confident of taking up any challenging projects in diversified industrial sectors by forging tie-ups with world leaders wherever necessary, to bring in the best and latest technology.

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.49.37
UK Pound	1	Rs.78.50
Euro	1	Rs.67.59

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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	-

Maximum Credit Limit :

USD 380000

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.