MIRA INFORM REPORT

Report Date :

08.11.2011

IDENTIFICATION DETAILS

Name :	CHANDAN STEEL LIMITED
Registered Office :	504, Sukh Sagar, N S Patkar Marg, Mumbai-400007, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.11.1989
Com. Reg. No.:	11 – 54206
Capital Investment / Paid-up Capital :	Rs.201.056 Millions
CIN No.: [Company Identification No.]	U99999MH1989PLC054206
TAN No.: [Tax Deduction & Collection Account No.]	MUMC03758G
PAN No.: [Permanent Account No.]	AAACC4713B
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Stainless Steel billets and electrical cable wires, Pipe fittings flanges.
No. of Employees :	50 [Approximately]

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 2780000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for 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.

INFORMATION PARTED BY

Name :	Mr. Hemant
Designation :	Export Executive
Date :	08.11.2011

LOCATIONS

Registered Office/ Corporate Office :	504, Sukh Sagar, N S Patkar Marg, Mumbai - 400007, Maharashtra, India.
Tel. No.:	91-22-6629 0600
Fax No.:	91-22-6629 0633 / 34
E-Mail :	exports@chandansteel.net flanges@chandansteel.net chan_mumbai@rediffmail.com csl@chandansteel.net
Website :	http://www.chanssteel.net
Area :	2500 Sq. Ft.
Location :	Owned
Administrative Office :	74, 1^st Floor, C. P. Tank Road, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91–22–2389 0403 / 0477 / 0294
Fax No.:	91–22–2389 0514 / 374 1971
E-Mail :	chanmet@bom3.vsnl.net.in
Location :	Owned
Factory :	31, 32, 33B, 35and 36 GIDC, Umbergaon, District Valsad - 396171, Gujarat, India
Tel. No.:	91-260-2562066 / 4367 / 1166 / 3089999
Fax No.:	91-260-2562287 / 0103 / 3089872
E-Mail :	chanmet@ishwarn.com chanmet@rediffmail.com exports@chandansteel.net
Area :	200 Acres
Location :	Owned
Overseas Offices :	USA Europe China Hong Kong Singapore Brazil Dubai

DIRECTORS

As on 09.08.2010

Name :

Mr. Chunilal Ghamandiram Chandan

Designation :

Chairman and Whole Time Director

Address :

504, Chandralok-A, 97, Nepean Sea Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

26.01.1938

Date of Appointment :

01.09.2007

Din No.:

00260127

Name:

Mr. Prabhat Kumar Gopi Kaushik

Designation:

Whole-time Director

Address :

108, Afghan Street, P.O Jammu Tawi, Jammu Kashmir- 180001, India

Date of Birth/Age :

17.07.1951

Date of Appointment :

30.09.2006

Din No.:

00292959

Name:

Mr. Praveen Chahanlal Jain

Designation:

Director

Address :

301, 3^rd Floor, Padmavati Darshan, A Wing, N.M. Joshi Marg, Lower Parel, Mumbai- 400013, Maharashtra, India

Date of Birth/Age :

01.06.1964

Date of Appointment :

30.09.2006

Din No.:

00345045

Name :

Mr. Vijay Kumar Chunilal Chandan

Designation :

Managing Director

Address :

504, Chandralok-A, 97, Nepean Sea Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

05.06.1967

Date of Appointment :

01.09.2007

Din No.:

00259988

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U99999MH1989PLC054206	CHANDAN STEEL LIMITED	Managing director	01-09-07	08-11-89	-	Active	NO
2	U72900MH2000PTC130197	AEON CREATIONS PRIVATE LIMITED	Director	25-01-08	25-01-08	01-04-08	Active	YES
3	U14292MH2010PTC209730	Chandan Minerals Private Limited	Director	02-11-10	02-11-10	-	Active	NO

Name :

Mr. Jagdish Padmakant Joshipura

Designation :

Director

Address :

103, Vasundhara Flats, Near Pritam Nagar, Ellisbridge, Ahmedabad- 380006, Gujarat, India

Date of Birth/Age :

05.03.1951

Date of Appointment :

16.03.1997

Din No.:

00260590

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	U99999MH1989PLC054206	CHANDAN STEEL LIMITED	Director	16-03-97	16-03-97	Active	NO
2	U65910GJ1995PLC026064	MAS FINANCIAL SERVICES LIMITED	Director	30-07-08	30-05-08	Active	NO
3	U74140GJ1998PTC034979	VIVRO CAPITAL ADVISORS PRIVATE LIMITED	Director	03-11-08	03-11-08	Active	NO
4	U74900GJ2007PLC051383	MAS RURAL HOUSING & MORTGAGE FINANCE LIMITED	Additional director	31-08-11	31-08-11	Active	NO

Name :

Mr. Prahalad Hargovind Acharya

Designation :

Director

Address :

No.126/13, Garden View, Indulal Bhuva Marg, Wadala, Mumbai-400031, Maharashtra, India

Date of Birth/Age :

29.09.1943

Date of Appointment :

01.12.2004

Din No.:

00260284

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	U99999MH1989PLC054206	CHANDAN STEEL LIMITED	Whole-time director	01-12-04	01-12-04	Active	NO
2	U14292MH2010PTC209730	Chandan Minerals Private Limited	Director	02-11-10	02-11-10	Active	NO

Name :

Mr. Dilip Chunilal Chandan

Designation :

Managing Director

Address :

504, Chandralok-A, 97, Nepean Sea Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

01.01.1962

Date of Appointment :

01.09.2007

Din No.:

00259884

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	U99999MH1989PLC054206	CHANDAN STEEL LIMITED	Managing director	01-09-07	08-11-89	Active	NO
2	U14200WB2007PLC120901	SPJ STEEL AND MINERALS LIMITED	Director	24-12-07	24-12-07	Active	NO
3	U14292MH2010PTC209730	Chandan Minerals Private Limited	Director	02-11-10	02-11-10	Active	NO

Name :

Mr. Anil Kumar Dhar

Designation :

Director

Address :

Shreeji Sadan, 31, Surel, Near juges Blow, Ahmedabad, Gujarat, India

Date of Birth/Age :

10.09.1952

Date of Appointment :

11.07.2008

Din No.:

01524239

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L40102TN2002PLC049601	REFEX REFRIGERANTS LIMITED	Director	23-05-07	28-12-06	20-04-10	Active	NO
2	U99999MH1989PLC054206	CHANDAN STEEL LIMITED	Director	11-07-08	06-09-07	-	Active	NO

Name :

Mr. Hiten Parekh

Designation :

Director

Address :

2-C, Shree Vijaya Bhavan, Altamount Road, Mumbai-400026, Maharashtra, India

Date of Birth/Age :

17.08.1963

Date of Appointment :

23.03.2010

DIN :

01686215

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72200GJ2005PLC046327	INDIANIC INFOCOM LIMITED	Director	24-06-05	24-06-05	24-01-09	Active	NO
2	U99999MH1989PLC054206	CHANDAN STEEL LIMITED	Director	09-08-10	23-03-10	-	Active Bottom of Form

KEY EXECUTIVES

Name :	Mr. Jayant Vasant Gudekar
Designation :	Company Secretary
Address :	B-8, Plot No. 543, Susmruti Co- Operatuve Society, Sector-5, Kandivali West, Mumbai- 400067, Maharashtra, India.
Date of Birth/Age :	02.10.1979
Date of Appointment :	01.08.2008
Din No.:	ALMPG9925H
Name :	Mr. Hemant
Designation :	Export Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 09.08.2010

Names of Shareholders	No. of Shares
Chaitanya D Chandan	411105
Chirag Dilip Chandan	679136
Chunilal Chandan	2218190
Chinulal G Chandan HUF	847040
Dilip C. Chandan	2476873
Dilip C Chandan HUF	872553
Divya V Chadan	113664
Samuben C Chandan	1010967
Urmila Dilip Chandan	1229164
Usha V Chandan	1559065
Vijay C. Chandan	2323221
Vijay C Chandan HUF	1614697

List of Shareholders holding 6% Non-Cumulative Redeemable Preference Shares As On 09.08.2010

Names of Shareholders	No. of Shares
Chunilal Chandan	1000000
Vijay C. Chandan	1000000
Dilip C. Chandan	630000
Usha V Chandan	300000
Urmila Dilip Chandan	1070000
Divya V Chadan	1000000
TOTAL	5000000

List of Allottees As On 16.08.2010

Names of Allottees (Equity Shares)	No. of Shares Allotted
Chinulal G Chandan	37150
Dilip C. Chandan	26920
Vijay C. Chandan	38290
Samuben C Chandan	10985
Urmila Dilip Chandan	27860
Usha Vijay Chandan	20850
Chaitanya Dilip Chandan	4450
Chirag Dilip Chandan	4120
Divya Vijay Chandan	14275
Chunilal Ghanmandiram	9200
Dilip C. Chandan HUF	17700
Vijay Chunilal	17550
TOTAL	229350

As on 09.08.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Stainless Steel billets and electrical cable wires, Pipe fittings flanges.

Products :

Products Description	ITC Code
S.S Angles	7222.40.20
S.S. Flats	7220.11.90
S.S. Billets	7218.99.10
S.S.R.C.S.	7222.19.92
S.S. Bright Bars	7222.20.12
Hot Roled Flats	7220.90.90
S.S. Wire Rods	7221.00.12
S.S. Wire	7223.00.91
S.S. Round Bars	7222.11.12
S.S. Flanges	7307.21.00

Exports :

Products :

Stainless Steel Products

Countries :

• Germany
• Belgium
• Italy
• Spain
• Middle East
• South America

Imports :

Products :

Material

Countries :

• UAE
• Mexico
• Iran
• USA

• Saudi Arabia

Terms :

Selling :

L/C / Cash / Credit [30 / 60 / 90 days], Depend

Purchasing :

L/C / Cash / Credit [30 / 60 / 90 days] ], Depend

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Actual Production
Stainless Steel Billets	M.T.	23386940

GENERAL INFORMATION

No. of Employees :

50 [Approximately]

Bankers :

• Gujarat State Financial Corporation, Jal Darshan Building, Ashram Road, Ahmedabad – 380009, Gujarat, India
• Barclays Bank PLC, 601/603, Ceejay House, Shivsagar, Estate, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Facilities :

Secured Loans Rs in Millions	31.03.2010	31.03.2009
Term Loan From Banks (Secured by equitable mortgage of companies Movable and immovable assets and charge of movable assets and guaranteed by three directors of company)	372.886	190.315
Working Capital Loans From Banks (Secured by equitable mortgage of companies Movable and immovable assets and charge of movable assets and guaranteed by three directors of company)	1525.495	1068.005
TOTAL	1898.381	1258.320
Unsecured Loans Rs in Millions	31.03.2010	31.03.2009
From Directors, Relatives and Others	0.000	11.996
Inter Corporate Deposits	151.000	0.000
TOTAL	151.000	11.996

Banking Relations :	--
Financial Institutions :	Gujarat State Financial Corporation
Address :	Jal Darshan Building, Ashram Road, Ahmedabad-380009, Gujarat, India
Auditors :	Shah and Taparia Chartered Accountants
Name :	12, Navjeevan Wadi, Dhobi Talao, Mumbai – 400 002, Maharashtra, India
Telefax No.:	91-22-66319266 / 67/ 68
E-Mail :	info@shahtaparia.com
Associates :	M. Chunilal and Company
Subsidiaries :	v KDG Steel SP. ZO. O. v Kalikund Investment B. V.

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs.10/- Each	Rs. 200.000 Millions
5,000,000	6% Redeemable Non Cumulative Preference Shares	Rs.10/- Each	Rs. 50.000 Millions
	TOTAL		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15,105,675	Equity Shares	Rs.10/-Each	Rs. 151.056 Millions
5,000,000	6% Redeemable Non Cumulative Preference Shares	Rs.10/- Each	Rs. 50.000 Millions
	TOTAL		Rs. 201.056 Millions

Note:

1. Of above 6,54,070 equity shares of Rs.10/- each are issued as bonus shares on 03.09.1994 by capitalisation of Revaluation Reserve Rs.3.940 Millions and General Reserve and Profit and Loss Rs.2.600 Millions.

2. Reedemable Preference shares are redeemable at then option of the company at any time within a period of 20 years from the date of issue.

AS ON 09.08.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20,000,000	Equity Shares	Rs.10/- Each	Rs. 200.000 Millions
10,000,000	6% Redeemable Non Cumulative Preference Shares	Rs.10/- Each	Rs. 100.000 Millions
	TOTAL		Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15,105,675	Equity Shares	Rs.10/-Each	Rs.151.057 Millions
5,000,000	6% Redeemable Non Cumulative Preference Shares	Rs.10/- Each	Rs.50.000 Millions
	TOTAL		Rs. 201.057 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		201.056	194.080	186.837
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		494.495	433.740	351.243
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		695.551	627.820	538.080
LOAN FUNDS
1] Secured Loans		1898.381	1258.320	1175.294
2] Unsecured Loans		151.000	11.996	132.769
TOTAL BORROWING		2049.381	1270.316	1308.063
DEFERRED TAX LIABILITIES		148.264	147.294	134.960
TOTAL		2893.196	2045.430	1981.103
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		836.394	782.811	661.838
Capital work-in-progress		236.501	2.780	38.321
INVESTMENT		1.593	1.593	1.543
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1214.179	992.379	823.362
	Sundry Debtors	779.255	497.678	859.464
	Cash & Bank Balances	146.342	119.642	161.762
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	384.810	284.622	517.151
Total Current Assets		2524.586	1894.321	2361.739
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	587.201	546.172	958.595
	Other Current Liabilities	63.760	42.136	51.559
	Provisions	54.917	47.767	72.369
Total Current Liabilities		705.878	636.075	1082.523
Net Current Assets		1818.708	1258.246	1279.216
MISCELLANEOUS EXPENSES		0.000	0.000	0.185
TOTAL		2893.196	2045.430	1981.103

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2913.883	3644.408	4005.162
		Other Income	49.970	74.168	191.375
		TOTAL	2963.853	3718.576	4196.537
Less	EXPENSES
		Material Consumed	2302.621	3338.695	3382.501
		Manufacturing Expenses/Cost	235.848	232.716	302.755
		Employee Expenses	39.666	38.736	33.667
		Administrative, Selling and Distribution Expenses	146.050	159.559	164.602
		Loss on Sale of Fixed Assets	0.039	0.153	0.292
		Preliminary Expenses	0.000	0.056	0.158
		Increased / (Decreased) in Stock	(99.597)	(400.313)	(125.509)
		TOTAL	2624.627	3369.602	3758.466
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		339.226	348.974	438.071
Less	FINANCIAL EXPENSES		202.768	211.420	143.016
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		136.458	137.554	295.055
Less/ Add	DEPRECIATION/ AMORTISATION		53.876	49.593	68.576
Add / Less	Prior Period Items		1.534	25.078	(0.964)
	PROFIT BEFORE TAX		84.116	113.039	225.515
Less	TAX		34.038	42.507	74.825
	PROFIT AFTER TAX		50.078	70.532	150.690
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		356.801	298.207	194.348
Less	APPROPRIATIONS
		Proposed Dividend on Equity and Preferences Shares	10.553	10.204	30.368
		Dividend Distribution Tax	1.793	1.734	5.161
		Transfer to General Reserve	0.000	0.000	11.302
	BALANCE CARRIED TO THE B/S		394.533	356.801	298.207
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports (Net of Return)	2574.224	3181.022	3488.646
		Foreign Exchange Rate Difference on export	68.013	7.254	33.051
	TOTAL EARNINGS		2642.237	3188.276	3521.697
	IMPORTS
		Raw Materials	954.575	1411.297	2066.049
		Capital Goods	72.467	17.129	1.292
		Others	33.507	171.208	82.778
	TOTAL IMPORTS		1060.549	1599.634	2150.119
	Earnings Per Share (Rs.)		3.15	4.86	11.38

Particulars	31.03.2011
Sales Turnover [Approximately]	3870.000

Expected Sales ( 2011-2012 ) : Rs.4500.000 millions

The above information has been parted by Mr. Hemant

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.69	1.89	3.59
Net Profit Margin (PBT/Sales)	(%)	2.89	3.10	5.63
Return on Total Assets (PBT/Total Assets}	(%)	2.50	4.22	7.46
Return on Investment (ROI) (PBT/Networth)		0.12	0.18	0.42
Debt Equity Ratio (Total Liability/Networth)		3.96	3.04	2.01
Current Ratio (Current Asset/Current Liability)		3.58	2.98	2.18

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS :

Particulars	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs in Millions)	31.03.2008 (Rs in Millions)
Sundry Creditors for Goods	541.233	523.489	917.122
Sundry Creditors for Capital Goods	9.525	1.188	4.226
Sundry Creditors for Expenses	36.443	21.495	37.247
Total	587.201	546.172	958.595

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions of the firm	Yes
4. Premises details	Yes
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	------
8. No. of Employees	Yes
9. Name of person contacted	Yes
10. Designation of contact person	Yes
11. Turnover of firm for last three years	Yes
12. Profitability for last three years	No
13. Reasons for variation <> 20%	Yes
14. Estimation for coming financial year	Yes
15. Capital in the business	No
16. Details of sister concerns	Yes
17. Major suppliers	No
18. Major customers	No
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	No
25. Conduct of the banking account	-----
26. Buyer visit details	-----
27. Financials, if provided	No
28. Incorporation details, if applicable	------
29. Last accounts filed at ROC	------
30. Major Shareholders, if available	------

NOTE : The registered office of the company has been shifted from 170/172 Kika Street R No.12, Gulalwadi Branch, Gulalwadi, Mumbai- 400004, Maharashtra, India to the present address w. e. f. 11.07.2007

REVIEW OF OPERATIONS :

The gross and net sales of their company during the year is at Rs.3160.000 millions and Rs.2910.000 millions as compared to Rs.4120.000 millions and Rs.3640.000 millions since the previous year thereby showing a decrease of 23%and 20% respectively. This is despite the big reduction in the sales value of their products since September 2008. the PAT is at Rs.50.000 millions as compared to Rs.70.500 million showing decrease of 29.08%. the products volume was however maintained at 19018.80 M. Tone as compared to the previous year production of 19350.77 M. tons. This was despite the global demand recession and lower nickel prices prevailing through 2009-10.

Bankers Charges Report as per Registry

Corporate identity number of the company	U99999MH1989PLC054206
Name of the company	CHANDAN STEEL LIMITED
Address of the registered office or of the principal place of business in India of the company	Address : 504, Sukh Sagar, N S Patkar Marg, Mumbai-400007, Maharashtra, India Email : csl@chandansteeel.bet
This form is for	Creation of charge
Type of charge	Movable Property Others
Particular of charge holder	BANK OF BARODA
Nature of instrument creating charge	Supplementary Memorandum of Entry.
Date of instrument Creating the charge	04/06/2010
Amount secured by the charge	Rs.100.000Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest BPLR plus 1% i.e. at present 13% p.a. with monthly rest. Terms of Repayment Repayable in 8 quarterly instalment of Rs. 2.500 millions each. Interest to be paid as and when debited. Margin 25% Extent and Operation of the charge Charge operates to secure term loan of aggregating Rs. 100.000 millions granted for the forging unit situated at village daheri, taluka- umargaon, district-valsad. (Gujarat)
Short particulars of the property charged	Non-agricultural land bearing Survey No. 102, Hissa No. 2/P2 admeasuring 24281 sq. meter situated at village daheri, taluka- umargaon, district-valsad.
Particulars of the present modification	Extension of equitable mortgage by deposit of title deeds pertaing to immovable properties situated at survey no. 102, hissa no.2/p2 admeasuring 24281 sq. mtrs at village dehari, takula umbergaon, district valsad (Gujarat) for securing additional term loan of Rs. 20.000 millions in addition to existing term loan of Rs. 80.000 millionsdated 27.02.2008.

FIXED ASSETS :

• Free Hold Land
• Lease Hold Land
• Buildings
• Plant and Machinery
• Computers
• Office Equipments
• Furniture and Fixtures
• Vehicles  

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 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.49.08
UK Pound	1	Rs.78.65
Euro	1	Rs.67.79

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	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	NO
--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	-

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.