MIRA INFORM REPORT

Report Date :

12.11.2011

IDENTIFICATION DETAILS

Name :	LONA INDUSTRIES LIMITED
Registered Office :	532, Alta Bhavan, Senapati Bapat Marg, Dadar (West), Mumbai – 400 028, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.11.1962
Com. Reg. No.:	11 – 012526
Capital Investment / Paid-up Capital :	Rs. 76.189 Millions
CIN No.: [Company Identification No.]	U24110MH1962PLC012526
TAN No.: [Tax Deduction & Collection Account No.]	MUML04687E MUML05181B
PAN No.: [Permanent Account No.]	AAACL1166F
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers of Phthalocyanine Dyes and Pigments.
No. of Employees :	275 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as 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.

INFORMATION DECLINED BY

Management non co-operative.

LOCATIONS

Registered Office :	532, Alta Bhavan, Senapati Bapat Road, Dadar (West), Mumbai – 400 028, Maharashtra, India
Tel. No.:	91-22-24363585/ 24307441/ 24473738/ 24363595/ 24473740
Fax No.:	91-22-24363595/ 24473745
E-Mail :	altalab@vsnl.com lonaind@vsnl.com sales@lona.com
Website :	http://www.lona.com
Corporate Office :	Gharkul, 82 Vir Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Factory :	Ladivali, New Rasayani, Taluka: Panvel, District Raigad - 410 207, Maharashtra, India
Tel. No.:	91-22- 24473738/ 24473739/ 24473740
Fax No.:	91-22- 24473745

DIRECTORS

AS ON 13.09.2010

Name :	Mr. Govind Guno Desai
Designation :	Director
Address :	Kedar Apartment, Bhandar Lane, L.J. Road, Mahim, Mumbai-400015, Maharashtra, India
Date of Birth/Age :	30.09.2005
Date of Appointment :	14.06.1933
DIN No.:	00140853

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	U29221MH1963PTC012756	BULLOWS PAINT EQUIPMENT PRIVATE LIMITED	Director	21-09-82	21-09-82	-	Active	NO
2	U13519MH1966PTC013519	BULLOWS INDIA PRIVATE LIMITED	Director	21-09-82	21-09-82	-	Active	NO
3	U74300MH1969PTC014297	CONTRACT ADVERTISING (INDIA) PRIVATE LIMITED	Director	31-07-84	31-07-84	-	Active	NO
4	L24230MH1984PLC034771	BLISS GVS PHARMA LIMITED	Director	21-12-84	21-12-84	-	Active	NO
5	L74999MH1985PLC037618	INDAGE VINTNERS LIMITED	Director	04-01-86	04-01-86	09-12-09	Active	NO
6	U99999MH1986PLC134021	FERMENTA BIOTECH LIMITED	Director	03-03-87	03-03-87	19-03-10	Active	NO
7	L24223MH1946PLC005434	CAMLIN LIMITED	Director	16-03-88	16-03-88	28-07-08	Active	NO
8	U02411KA1980PTC004053	FOSROC CHEMICALS (INDIA) PRIVATE LIMITED	Director	09-08-89	09-08-89	30-11-07	Active	NO
9	U74999MH1987PTC044849	CLASSIC STRIPES Private Limited	Director	01-01-97	01-01-97	29-06-11	Active	NO
10	L15520MH1982PLC028415	INDAGE RESTAURANTS AND LEISURE LIMITED	Director	14-02-98	14-02-98	09-12-09	Active	NO
11	U24100MH1981PTC025661	CENTAUR CHEMICALS PRIVATE LIMITED	Director	06-02-01	06-02-01	-	Amalgamated	NO
12	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Director	30-04-01	30-04-01	-	Active	NO
13	L99999MH1951PLC008485	DIL LIMITED	Director	29-11-01	29-11-01	-	Active	NO
14	U45200MH1995PLC084766	AEGEAN PROPERTIES LIMITED	Director	27-02-02	27-02-02	-	Active	NO
15	U28933MH2004PTC148152	DURABUILD TECHNOLOGIES PRIVATE LIMITED	Director	05-05-05	05-05-05	08-06-11	Active	NO
16	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	30-09-05	30-09-05	-	Active	NO
17	U36930MH1994PTC082020	PRO-TECH SPORTS AND SAFETY PRODUCTS PRIVATE LIMITED	Director	24-06-06	24-04-06	08-06-11	Active	NO
18	U25208MH1995PTC093753	FORMA SPORTS PRIVATE LIMITED	Director	24-06-06	24-04-06	08-06-11	Active	NO
19	L65910MH1998PLC115967	IRB INFRASTRUCTURE DEVELOPERS LIMITED	Director	07-09-07	03-08-07	-	Active	NO
20	U24230MH1980PTC023291	CENTAUR PHARMACEUTICALS PRIVATE LIMITED	Director	23-10-08	23-10-08	-	Active	NO
21	U74130MH2004PTC145141	EVOTEC (INDIA) PRIVATE LIMITED	Additional director	20-02-09	20-02-09	31-08-09	Active	NO

Name :	Mr. Premanad Anandrao Narvekar
Designation :	Director
Address :	396/8, North Avenue, Santacruz (W), Mumbai-400054, Maharashtra, India
Date of Birth/Age :	21.08.1991
Date of Appointment :	17.06.1975
DIN No.:	00387203

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	U65990MH1974PTC017293	KUMAR INVESTMENTS PRIVATE LIMITED	Director	17-09-78	17-09-78	-	Active	NO
2	U74200MH1979PTC021044	SARDESAI CONSULTANTS PRIVATE LIMITED	Director	22-02-79	22-02-79	-	Active	NO
3	U67120MH1980PTC023062	SARDESAI HOLDINGS PRIVATE LIMITED	Director	04-09-80	04-09-80	-	Active	NO
4	L24223MH1946PLC005434	CAMLIN LIMITED	Director	16-03-88	16-03-88	28-07-08	Active	NO
5	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	21-08-91	21-08-91	-	Active	NO
6	U34300MH1990PTC058356	VIBRANT AUTO COMPONENTS PRIVATE LIMITED	Director	04-09-91	04-09-91	-	Active	NO
7	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Director	15-10-91	15-10-91	-	Active	NO
8	U51900MH1993PLC075140	CAMLIN INTERNATIONAL LIMITED	Director	16-11-93	16-11-93	-	Active	NO
9	U74140MH2001PTC132727	GAJANAN CONSULTANCY SERVICES PRIVATE LIMITED	Managing director	16-07-01	16-07-01	-	Active	NO

Name :	Mr. Sanjay Ramhari Dhote
Designation :	Director
Address :	51, Khatau Apartments, 243, Walkeshwar Road, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	01.04.1994
Date of Appointment :	09.07.1960
DIN No.:	00548542

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	U65990MH1983PTC029940	ALTONA INVESTMENTS PRIVATE LIMITED	Director	10-05-83	10-05-83	Active	NO
2	U85190MH1954PLC009215	ALTA LABORATORIES LIMITED	Director	01-04-84	01-04-84	Active	NO
3	U23239MH1978PTC020722	ALTAROMA CHEMICALS PRIVATE LIMITED	Director	06-11-84	06-11-84	Active	NO
4	U65993MH1978PTC020524	J AND S INVESTMENTS PRIVATE LIMITED	Director	24-03-87	24-03-87	Active	NO
5	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Director	03-10-91	03-10-91	Active	NO
6	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Managing director	01-04-11	01-04-94	Active	NO
7	U26960MH1993PTC071714	BROWNSTONE INTERNATIONAL PVT LTD	Director	10-05-94	10-05-94	Active	NO
8	U67120MH1997PLC112504	ALTA SECURITIES LIMITED	Director	16-12-97	16-12-97	Active	NO

Name :	Mr. Jayant Ramhari Dhote
Designation :	Director
Address :	11, A/B, Hilltop Apartments,, 49, Pali Hill, Bandra, Mumbai-400050, Maharashtra, India
Date of Birth/Age :	09.08.1978
Date of Appointment :	13.08.1954
DIN No.:	00548607

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	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	09-08-78	09-08-78	Active	NO
2	U85190MH1954PLC009215	ALTA LABORATORIES LIMITED	Managing director	01-04-11	11-08-78	Active	NO
3	U65993MH1978PTC020524	J AND S INVESTMENTS PRIVATE LIMITED	Director	26-08-78	26-08-78	Active	NO
4	U65990MH1983PTC029940	ALTONA INVESTMENTS PRIVATE LIMITED	Director	10-05-83	10-05-83	Active	NO
5	U23239MH1978PTC020722	ALTAROMA CHEMICALS PRIVATE LIMITED	Director	06-11-84	06-11-84	Active	NO
6	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Managing director	01-04-11	03-10-91	Active	NO
7	U26960MH1993PTC071714	BROWNSTONE INTERNATIONAL PRIVATE LIMITED	Managing director	10-05-94	10-05-94	Active	NO
8	U67120MH1997PLC112504	ALTA SECURITIES LIMITED	Director	16-12-97	16-12-97	Active	NO

Name :	Mr. Saroj Yeshwant Kale
Designation :	Director
Address :	B/1, Asavari, 214, Veer Savarkar Marg, Mahim (West), Mumbai-400016, Maharashtra, India
Date of Birth/Age :	15.07.1974
Date of Appointment :	15.09.1944
DIN No.:	00548744

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	U85190MH1954PLC009215	ALTA LABORATORIES LIMITED	Director	27-02-69	27-02-69	Active	NO
2	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	15-07-74	15-07-74	Active	NO
3	U24222MH1970PTC014654	ANZAC IMPEX PRIVATE LIMITED	Director	31-01-81	31-01-81	Active	NO
4	U24240MH1968PTC014165	EASTERN AROMATICS PRIVATE LIMITED	Director	31-01-81	31-01-81	Active	NO
5	U67120MH1997PLC112504	ALTA SECURITIES LIMITED	Director	13-09-10	09-06-10	Active	NO

Name :	Mr. Vijay Sakharam Churi
Designation :	Director
Address :	Alta Laboratories, Bldg No 4, Girivihar, Khopoli District Raigad, Khopoli-410203, Maharashtra, India
Date of Birth/Age :	28.03.2005
Date of Appointment :	28.06.1941
DIN No.:	00576155

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	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	28-03-05	28-03-05	Active	NO
2	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Director	28-03-05	28-03-05	Active	NO

Name :	Mr. Ken Saburo Okura
Designation :	Director
Address :	2-23-11, Denenchofu, Otaku, Tokyo, 1038383, Japan
Date of Birth/Age :	17.06.1996
Date of Appointment :	04.06.1936
DIN No.:	02666435

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 13.09.2010

Names of Shareholders	No. of Shares
Tarabai R Dhole	300440
R K Shote Big HUF	127167
Jayant R Dhole	363230
Geeta J Dhote	283733
Aditya J Dhote	233333
Rohan R Dhote	233333
Sanchit J Dhote	233333
Radhika J Dhote	233333
Allona Investment Private Limited, India	1491001
Jayan R Dhote (HUF)	217933
Sanjay R Dhote	468230
Vaishali S Dhote	280000
Rohit R Dhote	711667
Saroj Y Kale	41160
J and Investment Private Limited, India	1480174
Sanjay R Dhote - HUF	299600
Kumudini Dhamankar	2333
Dainichiseika Colour and Chemicals Manufacturer Company Limited, Japan	618925
Total	7618925

AS ON 13.09.2010

Equity Shares Break Up	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	8.12
Bodies corporate	39.00
Directors or relatives of Directors	44.42
Others	8.46
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Phthalocyanine Dyes and Pigments.

Products :

ITC CODE	PRODUCTS
312209002	Phthalcoyannie Green 3G
312209002	Phthalcoyannie Alpha Blue RB
--	Phthalcoyannie Brilliant Blue IBN

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Synthetic Organic Dyes	MT	1400	969
Pigments	MT	7702	5960

GENERAL INFORMATION

No. of Employees :

275 (Approximately)

Bankers :

· The Cosmos Co-operative Bank Limited, Dadar Branch, 36A, Maru Niketan, D L Vaidya Road, Dadar (West), Mumbai-400028, Maharashtra, India

· The United Western Bank Limited, Prabhadevi Branch, Mumbai-400028, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Banks:
1. Cash Credit / Packing Credit	160.344	82.802
2. Working Capital Term Loan	0.000	0.001
3. Term Loans [Repayable within a year Rs. 10.000 millions (Previous year Rs. 22.834 Millions)]	41.093	62.338
4. Foreign Bills Discounting	41.079	79.915
5. Car Loans	6.427	3.818
Total	248.943	228.874
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Fixed Deposits
From Others [Including from Directors Rs.0.850 million (Previous year Rs. 0.100 million) and guaranteed by Directors Rs.2.832 millions (Previous year Rs. 3.430 million)] [Repayable within a year Rs. 8.535 millions (Previous year Rs. 8.044 million)]	36.243	20.982
Intercorporate Deposit	0.000	1.200
Other Loans and Advances	0	0
Hire Purchase / Equipment Loans	0.000	8.105
Total	36.243	30.287

Banking Relations :	--
Auditors :
Name :	B. K. Khare and Company Chartered Accountants
Address :	706 / 707, Sharda Chambers, New Marine Lines, Mumbai - 400 021, Maharashtra, India
Tel. No.:	91-22-22000607 / 7318 /6360 / 66315835 / 36
Fax No.:	91-22-22003476
Email:	info@bkkhareco.com
Other Related Parties :	· Alta Laboratories Limited · Alta Leasing and Finance Limited · Sanjay Sales Corporation

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7618925	Equity Shares	Rs.10/- each	Rs. 76.189 Millions

Note: [Of the above 4130000 Equity Shares of Rs. 10/- each were allotted as fully paid up Bonus shares by Capitalisation of General Reserve]

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		76.189	76.189	76.189
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		174.584	106.008	72.164
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		250.773	182.197	148.353
LOAN FUNDS
1] Secured Loans		248.943	228.874	95.997
2] Unsecured Loans		36.243	30.287	43.233
TOTAL BORROWING		285.186	259.161	139.230
DEFERRED TAX LIABILITIES		18.338	14.196	15.564
TOTAL		554.297	455.554	303.147
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		222.252	137.531	135.114
Capital work-in-progress		5.975	75.253	0.727
INVESTMENT		0.418	0.418	0.318
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	183.220	181.928	187.902
	Sundry Debtors	374.792	193.098	135.481
	Cash & Bank Balances	27.743	18.889	15.052
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	180.856	92.555	129.002
Total Current Assets		766.611	486.470	467.437
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	299.141	158.016	238.808
	Other Current Liabilities	17.819	11.562	21.787
	Provisions	123.999	74.540	40.616
Total Current Liabilities		440.959	244.118	301.211
Net Current Assets		325.652	242.352	166.226
MISCELLANEOUS EXPENSES		0.000	0.000	0.762
TOTAL		554.297	455.554	303.147

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1492.662	1376.985	1321.239
		Other Income	27.426	31.781	17.087
		TOTAL	1520.088	1408.766	1338.326
Less	EXPENSES
		Cost of Materials	915.422	984.854	917.257
		Traded Goods Purchased	1.251	4.850	0.000
		Employees Remuneration and Benefits	74.967	71.277	64.270
		Manufacturing Expenses	193.323	149.137	162.024
		Administrative, Selling and Other Expenses	97.265	116.288	56.159
		Decreases / (Increase) in Stock	56.789	(43.433)	36.808
		TOTAL	1339.017	1282.973	1236.518
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		181.071	125.793	101.808
Less	FINANCIAL EXPENSES		28.370	34.392	19.394
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		152.701	91.401	82.414
Less/ Add	DEPRECIATION/ AMORTISATION		25.312	18.704	17.470
Add	Prior Year Adjustment		1.299	0.000	0.000
	PROFIT BEFORE TAX		128.688	72.697	64.944
Less	TAX		46.742	(28.156)	(31.518)
	PROFIT AFTER TAX		81.946	44.541	33.426
Less	APPROPRIATIONS
		Transfer to General Reserve	50.000	20.000	19.841
		Proposed Dividend	11.428	9.143	6.857
		Tax on Dividend	1.943	1.554	1.166
	BALANCE CARRIED TO THE B/S		18.575	13.844	5.562
	EXPORT VALUE		1024.961	1068.729	245.331
	IMPORTS
		Raw Materials	291.367	237.402	224.906
	TOTAL IMPORTS		291.367	237.402	224.906
	Earnings Per Share (Rs.)		10.76	5.85	4.39

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.49	3.16	2.50
Net Profit Margin (PBT/Sales)	(%)	8.62	5.28	4.92
Return on Total Assets (PBT/Total Assets}	(%)	13.01	11.65	10.78
Return on Investment (ROI) (PBT/Networth)		0.51	0.40	0.44
Debt Equity Ratio (Total Liability/Networth)		2.97	2.84	3.07
Current Ratio (Current Asset/Current Liability)		1.74	1.99	1.55

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

SOURCES OF FUNDS	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	299.141	158.016	238.808

OPERATIONS:

The sales during the year under review were Rs. 1492.662 millions as compared to Rs.1376.985 millions for the preceding year showing an increase of 8.40%. The operations have resulted in Pre-Tax profit of Rs. 128.689 millions against Rs. 72.698 millions of the preceding year.

The performance of the company can be considered satisfactory in the midst of highly competitive business scenario. Though the rise in turnover was below expectations, there was an improvement in profits due to various cost reduction measures initiated by the company and there was a favourable product mix.

CONTINGENT LIABILITIES: (AS ON 31.03.2010)

1. Guarantees given by bank Rs. 2.500 Millions (Previous Year Rs. 1.397 millions)

2. Tax Matters disputed in Appeal Rs. 18.591 Millions (Previous Year Rs. 7.935 Millions)

FORM 8

Corporate identity number of the company	U24110MH1962PLC012526
Name of the company	LONA INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	532, Alta Bhavan, Senapati Bapat Road, Dadar (West), Mumbai – 400 028, Maharashtra, India
This form is for	Creation of charge
Type of charge	Others
Particular of charge holder	The Cosmos Co-operative Bank Limited, Dadar Branch, 36A, Maru Niketan, D L Vaidya Road, Dadar (West), Mumbai-400028, Maharashtra, India
Nature of instrument creating charge	Letter of Hypothecation of vehicle
Date of instrument Creating the charge	14.07.2011
Amount secured by the charge	Rs. 2.150 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 1st year :11% p.a (fixed) 2nd year:11.5% p.a (fixed) 3rd to 5th year:12.5% p.a (fixed) Terms of repayment 60 months ( 5 years) Margin 10.01% in bank's favour Extent and operation of the charge This is vehicle Term loan facility
Short particulars of the property charged (Including location of the property)	Hypothecation of Chevrolet Captiva AWD to be purchased and registered with Regional Transport office Mumbai

FIXED ASSETS:

• Land
• Factory Buildings
• Plant and Machinery
• Computer and Office Equipments, Electrical Appliances
• Vehicles
• Furniture and Fixtures

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. 50.27
UK Pound	1	Rs. 80.07
Euro	1	Rs. 68.44

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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.