MIRA INFORM REPORT

Report Date :

17.11.2011

IDENTIFICATION DETAILS

Name :	SYNERGIES CASTINGS LIMITED
Registered Office :	Flat No.4/A, Sampathji Apartments, 6-3-855/10/A, Saadat Manzil, Ameerpet, Hyderabad – 500016, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.01.2005
Com. Reg. No.:	01-45171
Capital Investment / Paid-up Capital :	Rs. 224.118 Millions
CIN No.: [Company Identification No.]	U27310AP2005PLC045171
TAN No.: [Tax Deduction & Collection Account No.]	VPNS04027C
PAN No.: [Permanent Account No.]	AAICS7410H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Aluminium Alloy Wheels and Auto Parts.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 3620000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has improved its performance in the year 2009-10. 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 slight 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

LOCATIONS

Registered Office :	Flat No.4/A, Sampathji Apartment, 6-3-855/10/A, Saadat Manzil, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India
Tel. No.:	91-891-2587181
Fax No.:	91-891-2587481
E-Mail :	cs@synergies-india.com
Website :	http://www.synergies-india.com
Area :	1000 Sq. ft.
Location :	Rented
Head Office :	9 -19-4, CBM Compound, Visakhapatnam, Andhra Pradesh, India
Corporate Office :	6-3-609/189, Anand Nagar, Khairtabad, Hyderabad – 530004, Andhra Pradesh, India
Tel. No.:	91-891-2587181
Fax No.:	91-891-2587481
E-Mail :	synergies_dooray@yahoo.com info@synergies-india.com
Website :	http://www.synergies-india.com http://www.synergies-world.com
Factory 1 :	Plot No. 3 and 4, Visakhapatnam Special Economic Zone Duvvada, Visakhapatnam – 530 046, Andhra Pradesh, India
Tel. No.:	91-891-2587181
Fax No.:	91-891-2587481
E-Mail :	info@synergies-india.com
Factory 2 :	Plot No.53, Dasapalla Hills, Visakhapatnam – 500003, Andhra Pradesh, India
Factory 3 :	Chrome plant Plot No. E1 and E2 VSP Export Processing Zone, Duvvada, Visakhapatnam – 530046, Andhra Pradesh, India
USA Office :	888 W Big Beaver Road, Sulte 340, Troy, MI 48084
Tel. No.:	248 273 7777
Mobile No.:	1-3302245371
Fax No.:	1-8067347517
E-Mail :	info-usa@synergies-india.com
Europe Office :	Dieplaan, 15 bus 15, B- 3600, Genk, Belgium
Tel. No.:	32 89 247 649
Mobile No.:	32 486 333 970
E-Mail :	info-euro@synergies-india.com
USA Warehouse :	16000 Canary Ave, La Mirada, CA 90638
Tel. No.:	714 443 3873
Mobile No.:	312 844 0017
Fax No.:	714 443 3874
E-Mail :	info-usa@synergies-india.com

DIRECTORS

As on 30.09.2010

Name :

Mr. Padmanayan Chirala

Designation :

Whole Time Director

Address :

Plot No. 13, Daspalla Hills,Visakhapatna, Visakhapatna,-530003, Andhra Pradesh, India

Date of Birth/Age :

24.01.1965

Qualification :

BE

Date of Appointment :

28.03.2007

DIN No.:

00880240

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	U27310AP2005PLC045171	Synergies Castings Limited	Whole-time director	01-04-07	28-03-07	-	Active	NO
2	U45400WB2008PTC128400	Urban Planet Shamshabad Project Private Limited	Director	11-08-08	11-08-08	-	Active	NO

Name :

Mr. Buddharaju Raju Satyanarayana

Designation :

Whole Time Director

Address :

9-19-20, Gangotri C.B M Vompound, Visakhaptnam, Visakhapatnam-530003, Andhra Pradesh, India

Date of Birth/Age :

12.11.1963

Qualification :

IIT

Date of Appointment :

28.03.2007

DIN No.:

01696115

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	U27310AP2005PLC045171	Synergies Castings Limited	Whole-time director	01-04-07	28-03-07	-	Active	NO
2	U45400WB2008PTC128400	Urban Planet Shamshabad Project Private Limited	Director	11-08-08	11-08-08	-	Active	NO

Name :

Mr. Ramanan Raghevendran

Designation :

Director

Address :

116W, 29^th Street, Apartment- 6, New York, USA

Date of Birth/Age :

14.11.1968

Date of Appointment :

26.03.2010

DIN No.:

01669553

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	U72900MH2000PTC126717	Connect Capital India Holdings Private Limited	Director	24-05-00	24-05-00	30-07-08	Active	NO
2	L99999MH1995PLC094641	Edelweiss Financial Services Limited	Director	10-10-00	10-10-00	19-04-10	Active	NO
3	U72900MH2000PTC126630	Netscribes (India) Private Limited	Director	30-09-03	30-09-03	-	Active	NO
4	U21000MH1992PLC067108	Green Earth Education Limited	Additional director	27-08-07	27-08-07	29-10-08	Active	NO
5	U72200WB1997PTC082498	Venture Infotek Global Private Limited	Director	29-09-08	07-12-07	26-08-10	Active	NO
6	U27310AP2005PLC045171	Synergies Castings Limited	Director	30-09-10	14-12-07	-	Active	NO
7	U72100AP2001PLC036378	Ocimum Bio Solutions (India) Limited	Nominee director	07-02-08	07-02-08	16-10-11	Active	NO
8	U64202DL2001PLC112437	Essel Shyam Technologies Limited	Director	29-09-09	13-01-09	-	Active	NO
9	U64200DL1996PLC078558	Essel Shyam Communication Limited	Director	29-09-09	13-01-09	-	Active	NO
10	U92412DL2006PLC155209	Escal News India Limited	Additional director	13-01-09	13-01-09	01-06-09	Active	NO
11	L72200AP2003PLC041860	Gss Infotech Limited	Additional director	14-02-11	14-02-11	-	Active	NO

Name :

Mr. Abhishek Maheswari

Designation :

Director

Address :

B-25, Kalpataru Habitat, Dr. S.S. Rao Road, Parel, Mumbai – 400012, Maharashtra, India

Date of Birth/Age :

22.12.1974

Date of Appointment :

26.03.2010

DIN No.:

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	U72200WB1997PTC082498	Venture Infotek Global Private Limited	Director	29-09-08	07-12-07	26-08-10	Active	NO
2	U27310AP2005PLC045171	Synergies Castings Limited	Director	30-09-10	14-12-07	-	Active	NO
3	U72100AP2001PLC036378	Ocimum Bio Solutions (India) Limited	Nominee director	07-02-08	07-02-08	05-10-11	Active	NO
4	U64200DL1996PLC078558	Essel Shyam Communication Limited	Director	29-09-09	13-01-09	-	Active	NO
5	U64202DL2001PLC112437	Essel Shyam Technologies Limited	Director	29-09-09	13-01-09	-	Active	NO
6	U92412DL2006PLC155209	Escal News India Limited	Additional director	13-01-09	13-01-09	01-06-09	Active	NO

Name :

Mr. Moorkoth Mathummal Hemachandran

Designation :

Director

Address :

45-54-4 Harika Residency Abid Nagar, Akkayyapalem, Visakhapatnam – 500016, Andhra Pradesh, India

Date of Birth/Age :

11.10.1953

Date of Appointment :

01.07.2009

DIN No.:

01928397

KEY EXECUTIVES

Name :	Mr. Chandrashekhar Reddy
Designation :	Company Secretary
Address :	Flat No. 306, 2^nd Floor, V.V. Krishna Paradise Vadlapudi, Visakhapatnam – 500046, Andhra Pradesh, India
Date of Birth/Age :	19.04.1974
Date of Appointment :	01.10.2005
PAN No.:	AGCPB4647G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders (Equity Shares)	No. of Shares	% of Holding
Chandra Sekhar Movva	24975	0.17 %
Abhishek Business Private Limited, India	74111	0.51 %
Asantra Investments Limited, Singapore	312240	2.14 %
Nayan Chirala	37052	0.25 %
Mimosa Enclave Private Limited, India	1936294	13.24 %
Raghavendra Rao Chlasani	39696	0.27 %
Sivarama Prasad Surapaneni	169398	1.16 %
Sudha Nuthalapti	132342	0.90 %
Vamsidhar Medikonda	39696	0.27 %
Venkata Ramana Yelamanchili	63518	0.43 %
Venkata Vishnu Vara Prasad	76754	0.52 %
Vijay Kumar Surapaneni	50292	0.34 %
Radha K Balagani	49200	0.34 %
Ventaka Ram Atluri	31500	0.22 %

As on 30.09.2010

Names of Shareholders (Redeemable Preference Shares Holders)	No. of Shares
Thinc Destini Commercial (Asia) SPV Limited, Mauritius	1325529
Sunitha Balagani V. Balagani	275406
Donthamsetti Appa Rao	132195
Venkata Ram Atluri	132181
Radha K Balagani	199058
Prasad V Durvasula	33135
Kanthi Durvasula	33135
Balakrishna Panuganti	66270
Sastrulu Madala Malleswari Madala	41615
Gurjinder Singh	132676
Geeta Gupta	200000
Mimosa Enclave (Private) Limited, India	150000
Radha Dhanuka	50000
Prasada Rao Ravella	430000
Srinivasa Rao Kothapalli	886200
Total	4087400

As on 30.09.2010

Names of Shareholders (Compulsorily Convertible Cumulative Preference Shares)	No. of Shares
Kubera Cross-Border Fund (Mauritius) Limited, Mauritius	5333334
Total	5333334

As on 14.12.2010

Names of Share Allottes (Equity Shares)	No. of Allotee
Superior Industries International Cyprus Limited, Cyprus	1386926
Total	1386926

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	72.31
Bodies corporate	17.93
Directors or relatives of Directors	1.14
Other top fifty shareholders	8.62
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Aluminium Alloy Wheels and Auto Parts.

Products :

Product Description	Item Code No.
Aluminum Alloy Wheels	87089900

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

• HDFC Bank Limited, Lakdi ka Pul Branch, Vishakhapatnam, Hyderabad -500004, Andhra Pradesh, India
• Axis Bank Limited
• IndusInd Bank Limited

· Jpmorgan Chase Bank

National Association – Mumbai, 9^th Floor, JP Morgan, Mafatlal Centre, Nariman Point, Mumbai-400021, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Banks (secured by the first charge on plant, machinery and fixtures, stock in trade book, debts (except debts assigned to factoring agencies), vehicle fixed deposits, intangible assets, uncalld share capital, all rights, title interest, benefit, claims and demands whatsoever in the insurance policies, government approvals, permits, authorization, no objection and license pertaining to the bank, all the rights, title, interest of the company under all the guarantees, other performance warranties, indemnities and securities that may be finished in favour of the company by various contractors, consignment sale agents , c and f agents and dealers under various agreement)	0.000	178.333
Interest accrued and due	0.000	8.647
Total	0.000	186.980
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Sales tax deferment	53.236	42.765
Others	37.062	41.629
Interest accrued and due [Due within one year Rs. 7.818 Millions (previous year Rs. 42.191 millions)]	0.756	0.565
Total	91.054	84.959

Banking Relations :	--
Financial Institution:	IFCI Factors Limited, 9^th Floor, IFCI Tower, 61, Nehru Place, New Delhi- 110019, India
Auditors :
Name :	S.V. Ghatalia and Associates Chartered Accountant
Address :	Oval Office, 18, Ilabs Centre, Hitech City, Madhapur, Hyderabad – 500081, Andhra Pradesh, India
Tel. No.:	91-40-67362000
Fax No.:	91-40-67362200
PAN.:	AACFS6921Q
Subsidiaries :	Synergies Castings USA Inc

CAPITAL STRUCTURE

After 30.09.2010

Authorised Capital of Rs. 215.000 Millions

Issued, Subcribed and Paid up Capital of Rs. 287.997 Millions

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
21500000	Equity Shares	Rs.10/- each	Rs. 215.000 Millions
10500000	Preference Shares	Rs.10/- each	Rs. 105.000 Millions
	Total		Rs. 320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14624770	Equity Shares	Rs.10/- each	Rs. 146.248 millions
9420734	Preference Shares	Rs.10/- each	Rs. 94.207 Millions
			Rs. 240.455 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
14,500,000	Equity Shares	Rs.10/- each	Rs. 145.000 Millions
10,500,000	Preference Shares	Rs.10/- each	Rs. 105.000 Millions
	Total		Rs. 250.000 Millions

, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12,891,112	Equity Shares	Rs.10/- each	Rs. 128.911 Millions
4187400	12% Redeemable Preference Shares	Rs.10/- each	Rs. 41.874 Millions
5,333,334	0.01% Compulsorily Convertible Cumulative Preference Shares	Rs.10/- each	Rs. 53.333 Millions
	Total		Rs. 224.118 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		224.118	228.365	232.028
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		680.362	516.186	630.865
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		904.480	744.551	862.893
LOAN FUNDS
1] Secured Loans		0.000	186.980	186.667
2] Unsecured Loans		91.054	84.959	38.072
TOTAL BORROWING		91.054	271.939	224.739
DEFERRED TAX LIABILITIES		0.000	0.000	10.442
TOTAL		995.534	1016.490	1098.074
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		180.367	113.526	111.923
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.300	0.000	90.967
DEFERREX TAX ASSETS		3.212	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	318.476	282.097	440.193
	Sundry Debtors	237.792	312.716	293.996
	Cash & Bank Balances	52.935	67.074	30.806
	Other Current Assets	0.000	0.212	0.000
	Loans & Advances	380.102	347.545	266.770
Total Current Assets		989.305	1009.644	1031.765
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	132.310	89.706	137.511
	Other Current Liabilities	3.930	1.633	5.682
	Provisions	41.410	15.341	31.440
Total Current Liabilities		177.650	106.680	174.633
Net Current Assets		811.655	902.964	857.132
MISCELLANEOUS EXPENSES		0.000	0.000	38.052
TOTAL		995.534	1016.490	1098.074

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1003.153	841.824	1583.581
		Other Income	19.936	55.944	24.879
		TOTAL (A)	1023.089	897.768	1608.46
Less	EXPENSES
		Raw Material Consumed	365.991	355.183	573.398
		Personnel Expenses	111.560	96.507	107.290
		Operating and other Expenses	448.656	332.613	706.643
		Increase/ Decrease in Inventories	(48.615)	145.068	26.671
		Prior Period Items	0.000	8.127	0.000
		Miscellaneous Expenditure written off	0.000	0.000	10.727
		TOTAL (B)	877.592	937.498	1424.729
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		145.497	(39.730)	183.731
Less	FINANCIAL EXPENSES (D)		29.241	29.261	70.417
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		116.256	(68.991)	113.314
Less/ Add	DEPRECIATION/ AMORTISATION (F)		27.907	28.685	20.319
	PROFIT/LOSS BEFORE TAX (E-F) (G)		88.349	(97.676)	92.995
Less	TAX (H)		1.979	(9.735)	15.059
	PROFIT/LOSS AFTER TAX (G-H) (I)		86.370	(87.941)	77.936
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		43.088	131.029	60.082
Less	APPROPRIATIONS
		Proposed dividend on equity shares	11.141	0.000	5.974
		Tax on Dividend	1.893	5.974	1.015
	BALANCE CARRIED TO THE B/S		116.424	43.088	131.029
	EARNINGS IN FOREIGN CURRENCY
		Export Goods	NA	302.091	1099.730
		Tooling Charges	NA	27.176	22.547
	TOTAL EARNINGS		NA	329.267	1122.277
	IMPORTS
		Raw Materials	NA	349.167	581.453
		Stores & Spares	NA	71.440	115.499
		Capital Goods	Na	14.514	0.000
		Others	Na	0.000	0.000
	TOTAL IMPORTS		NA	435.121	696.952
	Earnings/Loss Per Share (Rs.)
	Basic		6.22	(7.36)	5.50
	Diluted		4.40	(7.36)	5.26

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.44	(9.79)	4.84
Net Profit Margin (PBT/Sales)	(%)	8.81	(11.60)	5.87
Return on Total Assets (PBT/Total Assets}	(%)	7.55	(8.69)	8.13
Return on Investment (ROI) (PBT/Networth)		0.10	(0.13)	0.10
Debt Equity Ratio (Total Liability/Networth)		0.30	0.50	0.46
Current Ratio (Current Asset/Current Liability)		5.57	9.46	5.90

LOCAL AGENCY FURTHER INFORMATION

OPERATION

Proactive steps initiated by the company to counter the recesslonary trends in automotive sector coupled with some novel austerity measures enabled the company to make conspicuous turnaround during the year.

The company was helped by a drop in average metal cost, increased capacity utilization (leading to cost savings), a improved product mix and superior working capital management.

The company has recorded net sales and other income of Rs. 1023.090 millions during the year against Rs. 897.770 millions previous year. The company has recorded a net profit of Rs. 86.370 millions during the year against a net loss of Rs. 87.940 millions in the previous year.

THE CURRENT YEAR

There has been a steady growth on our sales during the year and they hope it will continue

FUTURE PLANS:

The company will be expanding the existing facilities from 0.520 millions per annum to 0.720 millions wheels per annum. The expansion is expected to be completed before the end of the current financial Year.

FORM 8

Corporate identity number of the company	U27310AP2005PLC045171
Name of the company	SYNERGIES CASTINGS LIMITED
Address of the registered office or of the principal place of business in India of the company	Flat No.4/A, Sampathji Apartment, 6-3-855/10/A, Saadat Manzil, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India Email : cs@synergies-india.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10230650
Type of charge	Book Debts Movable Property (not being pledge) Other
Particular of charge holder	IFCI Factors Limited, 13th Floor, IFCI Tower, 61 Nehru Place, New Delhi – 110019, India Cin No.: U27310AP2005PLC045171 Email : vijaydhingra@ifcifactors.com
Nature of instrument creating charge	Deed of Hypothecation dated 7th June, 2011 sanctioning sales bills factoring facilities to the extent of Rs. 175.000 millions with import bill factoring sub limit of Rs. 750.000 millions
Date of instrument Creating the charge	07.06.2011
Amount secured by the charge	Rs. 175.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 13.5% for import bill factoring and 13.75% for sales bill factoring Terms of Repayment : Upto 90 days or less from invoice date, as may be approved for each debtor. Margin: 20% in case of domestic sales bill factoring and 10% in case of import bill factoring. Extent and operation of the charge: Hypothecation of current assets and moveable properties (present and future) including but not limited to plant and machinery, spares, tools, stock of raw material, finished/semi-finished goods, book debts, loan and advances and such other moveable including plant and machinery at 3 and 4, Vishakhapatnam SEZ, Duvvada, Vishakhapatnam.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Current assets and moveable properties (both present and future) including but not limited to moveable plant and machinery, stores, book debts, loan and advances, raw materials, finished goods etc
Particulars of the present modification	Limits are being increased from sales bills factoring facilities to the extent of Rs. 100.000 millions with import bill factoring sub limit of Rs. 50.000 millions to sales bills factoring facilities to the extent of Rs. 175.000 millions with import bill factoring sub limit of Rs. 750.000 millions and interest rate at 13.5% for import bill factoring and 13.75% for sales bill factoring.

FIXED ASSETS

• Building
• Plant and Machinery
• Castings Moulds
• Office Equipment
• Furniture and Fixture
• Vehicles
• Computer

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.50.90
UK Pound	1	Rs.80.30
Euro	1	Rs.68.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		37

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.