MIRA INFORM REPORT

Report Date :

19.11.2011

IDENTIFICATION DETAILS

Name :	FOURESS ENGINEERING (INDIA) LIMITED
Registered Office :	Mahalaxmi Chambers, 8^th Floor, 22, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.06.1971
Com. Reg. No.:	11-15196
Capital Investment / Paid-up Capital :	Rs.75.000 millions
CIN No.: [Company Identification No.]	U74210MH1971PLC015196
TAN No.: [Tax Deduction & Collection Account No.]	MUMF00095E
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer and Exporter of Industrial Valve.
No. of Employees :	1300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 700000
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 PARTED BY

Name :	Mr. Ravi
Designation :	Finance Executive
Contact No.:	91-22-23534400
Date :	18.11.2011

LOCATIONS

Registered Office :	Mahalaxmi Chambers, 8^th Floor, 22, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
Tel. No.:	91-22-24964400 / 05 / 06 / 23534400-05
Fax No.:	91-22-23517544 / 24937544
E-Mail :	imp@fouressindia.com feilhq@bom3.vsnl.net.in hq@fouressindia.com svs@fouressindia.com
Website :	http://www.fouressengg.com http://www.fouressindia.com
Area :	4800 Sq. fts.
Location :	Owned
Factory 1 :	Plot No. A-324, Road No. 21, Wagle Industrial Estate, Thane - 400 604, Maharashtra, India
Tel. No.:	91-22-25823755 / 25823602 / 25814613
Fax No.:	91-22-25823603
E-Mail :	byp@fouressindia.com
Area :	4 acres land and plant area 48000 Sq. fts
Location:	Owned
Factory 2 :	Peenya Industrial Estate, Plot 2, Phase II, Bangalore - 560 058, Karnataka, India
Tel. No.:	91-80-28395734-8
Fax No.:	91-80-28395175-6
E-Mail :	info@fouressindia.com
Area :	4 acres land and plant area 48000 Sq. fts
Location:	Owned
Factory 3 :	C-2, MIDC Industrial Estate, Paithan, Aurangabad – 431 148, Maharashtra, India
Tel. No.:	91-2431-232074 / 232376
Fax No.:	91-2431-232058
E-Mail :	aurangabad@fouressindia.com
Area :	4 acres land and plant area 48000 Sq. fts
Location:	Owned
Branch Office :	Located at · Mumbai · Baroda · Pune · Chennai · Hyderabad · Kolkata · Delhi · Bhubaneshwar
Overseas Office :	14252 Culver Dr, Suite A-207, Irvine CA 92604, USA
Tel. No.:	1- 9499813981
E-Mail :	raous@fouressindia.com
Regional Representatives :	Located at · Nagpur · Vizag

DIRECTORS

As on 30.09.2010

Name :	Mr. Sameer Sadanad Shetty
Designation :	Chairman cum Managing Director
Address :	11-D, IL Palazzo, Little Gibbs Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	24.06.1970
Date of Appointment :	26.10.1998
DIN No.:	01306426

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	U29119KA1985PTC006747	B Fouress Private Limited	Managing director	01-04-96	01-04-96	Active	NO
2	U74210MH1971PLC015196	Fouress Engineering(India) Limited	Director	26-10-98	26-10-98	Active	NO
3	L25100MH1965PLC013379	The Rubber Products Limited	Director	12-09-07	29-01-07	Active	NO

Name :	Ms. Smita Hari Prasad Shetty
Designation :	Managing Director
Address :	777, 100 Feet Road, Hal II Stage, Indira Nagar, Bangalore – 560 008, Karnataka, India
Date of Birth/Age :	01.12.1956
Date of Appointment :	26.10.1998
DIN No.:	01872542

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	U74210MH1971PLC015196	Fouress Engineering (India)Limited	Managing director	26-10-98	26-10-98	-	Active	NO
2	U34300KA2000PTC026289	S.H.P. Enterprises Private Limited	Director	28-01-00	28-01-00	15-06-08	Active	NO
3	L25100MH1965PLC013379	The Rubber Products Limited	Director	12-09-07	26-07-07	-	Active	NO
4	U29119KA1985PTC006747	B Fouress Private Limited	Director	27-06-08	02-09-07	-	Active	NO

Name :	Ms. Sucharita Ramcrishna Hegde
Designation :	Managing Director
Address :	4^th Floor, Suraiya Apartments, Pochkhanwala Road, Worli, Mumbai – 400 025, Maharashtra, India
Date of Birth/Age :	16.09.1958
Date of Appointment :	26.10.1998
DIN No.:	01284570

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	U74210MH1971PLC015196	Fouress Engineering(India) Limited	Director	12-09-98	12-09-98	Active	NO
2	U74210MH1992PTC066374	Cyberdyne Technologies (India) Private Limited	Director	13-12-05	13-12-05	Active	NO
3	L25100MH1965PLC013379	The Rubber Products Limited	Director	12-09-07	29-01-07	Active	NO
4	U29119KA1985PTC006747	B Fouress Private Limited	Director	27-06-08	02-09-07	Active	NO

Name :	Mr. Farrokh Sorab Broacha
Designation :	Director
Address :	Skylark, 4^th Floor, Little Gibbs Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	14.06.1938
Date of Appointment :	30.03.1989
DIN No.:	00198990

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	U99999MH1964PLC012913	Haldyn Corporation Limited	Director	19-10-88	19-10-88	-	Active	NO
2	U74210MH1971PLC015196	Fouress Engineering (India) Limited	Director	30-03-89	30-03-89	-	Active	NO
3	L51909GJ1991PLC015522	Haldyn Glass Limited	Director	25-04-91	25-04-91	-	Active	NO
4	L25100MH1965PLC013379	The Rubber Products Limited	Director	25-09-93	25-09-93	-	Active	NO
5	L29295PN1993PLC073226	Ras Propack Lamipack Limited	Director	17-01-94	17-01-94	-	Active	NO
6	U65910MH1994PLC083806	Melwani Finance Limited	Director	20-06-95	20-06-95	31-10-07	Active	NO
7	L99999MH1986PLC039660	Wall Street Finance Limited	Director	19-08-95	19-08-95	19-11-08	Active	NO

Name :	Mr. Paramasivan Srinivasan
Designation :	Director
Address :	85, Plot No.6, Versova Venus Co-Operative Housing Society, SVP Nagar, Versova, Andheri, Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	20.05.1957
Date of Appointment :	26.10.1998
DIN No.:	00058445

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	U74210MH1971PLC015196	Fouress Engineering(India) Limited	Director	26-10-98	26-10-98	Active	NO
2	U45200MH1976PLC019335	Afcons Infrastructure Limited	Whole-time director	01-07-11	10-06-02	Active	NO
3	U28920MH1985PTC036876	Afcons Corrosion Protection Private Limited	Director	12-02-03	12-02-03	Active	NO
4	U45209MH1981PTC025099	Afcons (Mid East) Constructions Investments Private Limited	Director	12-02-03	12-02-03	Active	NO
5	L25100MH1965PLC013379	The Rubber Products Limited	Director	11-09-08	28-05-08	Active	NO

KEY EXECUTIVES

Name :	Mr. Subhash Vithal Satam
Designation :	Secretary
Address :	B 05, Sohini Apartments, Datta Mandir Road, Vakola, Santacruz (East), Mumbai – 400 055, Maharashtra, India
Date of Birth/Age :	24.04.1957
Date of Appointment :	07.06.1982
PAN No.:	ABBPS3043B
Name :	Mr. Ravi
Designation :	Finance Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Soumyalatha S. Shetty	393900
Smita H. Shetty	88392
Sucharita R. Hegde	88392
Sameer S. Shetty	129132
Shreeram H. Shetty	18780
Priyadarshini H. Shetty	6300
Rithvik R. Hegde	18780
Tanushree R. Hegde	6300
Fouress Marketing ITL Private Limited, India	24
Total	750000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Industrial Valve.

Product Description :

Product Description	ITC Code
Manufacture of Cast Steel Valves	8480

Brand Names :

“FOURESS”

Exports :

Products :

Industrial Valve

Countries :

· Singapore

· China

Imports :

Products :

Raw Material

Countries :

Israel

Terms :

Selling :

L/C, Cash and Credit (30 days / 60 days / 90 days)

Purchasing :

L/C, Cash and Credit (30 days / 60 days / 90 days)

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Actual Production
Industrial Valves	Nos.	20152
Isolators	Nos.	259

GENERAL INFORMATION

Customers :

OEM’s and Manufacturer

· Adani

· Bharat Heavy Electricals Limited

· Bharat Petroleum

· Chemtrots

· EIL

· Essar

· Gammon

· Hindustan Petroleum

· Indian Oil

· Jindal Steel and Power Limited

· JSW

· Larsen and Toubro

· NTPC

· Reliance Industries Limited

· SAIL

· Tata Steel

No. of Employees :

1300 (Approximately)

Bankers :

· State Bank of India

Industrial Finance Branch, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

· State Bank of India

Samachar Marg, Fort, Mumbai - 400023, Maharashtra, India

· Kotak Mahindra Bank Limited

· HDFC Bank

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Loans and Advances from Bank
From State Bank of India
Demand Cash Credit	77.925	27.716
Term Loans	51.784	91.040
Due to State Bank for Bills Discounted	2.208	7.439
Export Packing Credit	0.013	12.696
Secured by hypothecation of Company’s entire stock of Raw Materials, Stock-in-Process, Stores and Spares, Finished Goods and Book Debts of Thane, Bangalore and Aurangabad Plants and further secured by first charge over Fixed assets of the Company’s Plants, Flats, Office premises and Land acquired / under acquisition.
Kotak Mahindra Bank Limited	0.000	0.000
HDFC Bank (all the above loans are guaranteed by some of the Directors personally)	0.000	0.630
Loan against hypothecation oft car	2.328	3.335
Total	134.258	142.856

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Interest free Sales tax Deferral Loan	2.136	2.136
M.I.D.C. incentive loan (interest free from Government of Maharashtra)	0.243	0.243
Others / Directors and Shareholders	6.630	5.630
Total	9.009	8.009

Banking Relations :	--
Auditors :
Name :	J R Jain and Company Chartered Accountants
Address :	2^nd Floor, Sheel Chamber, 10, Cawasji Patel Street, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22871930 / 22874177
PAN No.:	AAAFJ4337K
List of parties where control exists :	· Sadanand Family Benefit Trust · Fouress Marketing (International) Private Limited · Boving Fouress Limited · Petrochemical Engineering Enterprises · Bombay Engineering Industries · Rubber Products Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.100/- each	Rs.75.000 millions

· Of the above 3240 Equity shares fully paid up were issued without payment being received in cash and 13050 shares were allotted as fully paid up Bonus Shares by Capitalisation of Reserves.

· Issued 625000 Equity Shares of Rs.100/- each fully paid up as bonus shares out of revaluation reserved.

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		75.000	75.000	75.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		100.918	70.521	18.493
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		175.918	145.521	93.493
LOAN FUNDS
1] Secured Loans		134.258	142.856	207.492
2] Unsecured Loans		9.009	8.009	7.009
TOTAL BORROWING		143.267	150.865	214.501
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		319.185	296.386	307.994
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		139.948	140.085	133.638
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.189	0.189	0.189
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	321.657	287.911	318.318
	Sundry Debtors	260.099	271.341	372.882
	Cash & Bank Balances	29.263	49.105	5.559
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	68.867	59.269	29.945
Total Current Assets		679.886	667.626	726.704
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	296.163	255.962	321.978
	Other Current Liabilities	209.448	259.953	239.210
	Provisions	0.000	0.000	0.000
Total Current Liabilities		505.611	515.915	561.188
Net Current Assets		174.275	151.711	165.516
MISCELLANEOUS EXPENSES		4.773	4.401	8.651
TOTAL		319.185	296.386	307.994

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Export Incentives	1372.213	1514.001	1254.486
		Other Income	31.729	17.180	26.389
		TOTAL (A)	1403.942	1531.181	1280.875
Less	EXPENSES
		Raw Materials and Finished Goods	804.791	880.808	697.849
		Manufacturing Maintenance	111.533	129.218	126.824
		Employees’ remuneration and Benefits	200.787	200.160	173.471
		Administration, Selling and Other Expenses	147.593	158.300	143.157
		Royalty / Technical knowhow	0.000	0.000	0.969
		Debts irrecoverable written off	18.418	27.054	18.928
		Provision for Earlier Years – Retirement Benefit	0.000	0.000	22.582
		Deferred revenue expenditure written off	1.274	1.274	1.274
		Depreciation on Revalued assets	1.251	1.371	0.692
		TOTAL (B)	1285.647	1398.185	1185.746
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		118.295	132.996	95.129
Less	INTEREST AND DISCOUNTING CHARGES (D)		24.427	30.827	30.944
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		93.868	102.169	64.185
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.138	14.973	14.936
	PROFIT/LOSS BEFORE TAX (E-F) (G)		76.730	87.196	49.249
Less	TAX (H)		37.100	24.786	43.118
	PROFIT/LOSS AFTER TAX (G-H) (I)		39.630	62.410	6.131
	EARNINGS IN FOREIGN CURRENCY		281.665	298.888	188.243
	IMPORTS
		Capital Goods	0.000	0.464	0.000
		Raw Materials	83.499	150.922	63.340
		Spares and Consumables	4.610	4.346	1.079
	TOTAL IMPORTS		88.109	155.732	64.419
	Earnings Per Share (Rs.)		52.84	83.21	8.17

Particulars	31.03.2011
Sales Turnover (Approximately)	1510.000

Expected Sales (2011-2012) : Above Rs.1600.000 millions

The above information has been parted by Mr. Ravi

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.82	4.08	0.48
Net Profit Margin (PBT/Sales)	(%)	5.59	5.76	3.93
Return on Total Assets (PBT/Total Assets}	(%)	9.36	10.80	5.72
Return on Investment (ROI) (PBT/Networth)		0.44	0.60	0.53
Debt Equity Ratio (Total Liability/Networth)		3.69	4.58	8.30
Current Ratio (Current Asset/Current Liability)		1.34	1.29	1.29

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions	As on 31.03.2008 Rs. in millions
Sundry Creditors	296.163	255.962	321.978

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions 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 variations <> 20%	YES
14.	Estimation for coming financial year	YES
15.	Capital in the business	NO
16.	Details of sister concerns	--
17.	Major Suppliers	NO
18.	Major Customers	NO
19.	Payment terms	YES
20.	Export / Import details (is applicable)	YES
21.	Market information	--
22.	Litigation that the firm / promoter involved in	--
23.	Banking Details	YES
24.	Banking facility details	--
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, is available	--

BACKGROUND

Subject was incorporated in the State of Maharashtra, India. The Company has been mainly in the business of Industrial Valves.

OPERATIONS

The company achieved a Sales turnover of Rs.1372.200 millions as against the previous years Rs.1514.000 millions. The drop in sales was mainly due to lower volume in Steel Plant valves.

Their order book position during the year continued to be good especially from Oil and Gas and Power sectors.

CONTINGENT LIABILITIES NOT PROVIDED FOR

Particulars	As on 31.03.2010 Rs. in millions
Guarantees given by Bank on behalf of the Company	355.008
Deduction by debtors against claims pending settlement not accepted by the Company as negotiations are in progress with parties	10.791
According to the records of the Company, the dues outstanding of income tax, sales tax, provident fund, esic on account of any dispute/undispute are as follows :
Income Tax Act – FBT – 1310860 – 2006-07	1.311
Income Tax Act – FBT – 2792297 – 2007-08	2.792
Income Tax Act – FBT – 3980856 – 2009-10	3.981
99717 – 2000-01 – Tribunal and	0.998
475356 - 2001-02 – CIT (A)	0.475
460941 – 2006 - 07	0.461
FBT – 781207 – 2006-07	0.781
MST – 150296 – 1986-87	0.150
MST – 3433919 – 1999-00	3.434
200364 – 2000-01 – Deputy Comm. Of Sales Tax	0.200
1320476 – 2002-03 – and S Tax Tribunal	1.320
CST – 703222 – 1986-87	0.703
1226278 – 2000-01	1.226
753537 – 2001-02	0.754
1744122 – 2002-03	1.744
However Provision has already been made in account after considering matter in Appeal at various stage and probable relief expected.

FORM 8

Corporate identity number of the company	U74210MH1971PLC015196
Name of the company	FOURESS ENGINEERING(INDIA)LIMITED
Address of the registered office or of the principal place of business in India of the company	Mahalaxmi Chambers, 8^th Floor, 22, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	State Bank of India Industrial Finance Branch, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Nature of instrument creating charge	Agreement of Hypothecation of Goods and Assets
Date of instrument Creating the charge	19.10.2011
Amount secured by the charge	Rs.65.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As determined by the Bank from time to time Terms of Repayment On demand Margin As prescribed by the Bank from time to time Extent and Operation of the charge First charge
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All present and future goods, book-debts, machineries and all other movable assets.

FIXED ASSETS

· Air Conditioners

· Borewell Equipment – WIP

· Building

· Canteen Equipment

· Capital Work in progress – Building

· Capital Work in progress – EDP

· Capital Work in progress – Electrical Installations

· Capital Work in progress – Furniture

· Carpet

· Computer

· Electrical Installation

· Furniture and Fixtures

· Hand Carts / Bicycles

· Laboratory Equipment

· Land lease / Free Hold

· Library

· Office Equipment

· Plant and Machinery under Installation

· Plant and Machinery

· Plant and Machinery (Gen)

· Plant and Machinery (Leased)

· Residential Flats

· Site Machinery

· Site Office Equipment

· Site Office Furniture

· Site vehicles

· Trailer

· Vehicles

· Weighing Machines

· Cabin

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.51.35
UK Pound	1	Rs.80.97
Euro	1	Rs.69.25

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	4
--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		45

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.