MIRA INFORM REPORT

Report Date :

01.10.2011

IDENTIFICATION DETAILS

Name :	AJAY INDUSTRIAL CORPORATION LIMITED (w.e.f. 25.09.2008)

Formerly Known As :	AJAY INDUSTRIAL CORPORATION PRIVATE LIMITED

Registered Office :	4561, Deputy Ganj, Sadar Bazar, Delhi – 110 006

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	07.07.2008

Com. Reg. No.:	55-180573

Capital Investment / Paid-up Capital :	Rs.100.000 millions

CIN No.: [Company Identification No.]	U51909DL2008PLC180573

TAN No.: [Tax Deduction & Collection Account No.]	DELA00081E

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of PVC Pipes and Fitting, CPVC Pipe and Fitting and UPVC Window Profiles for Building Construction Industries, Hand Pump and Spare Parts, Drip Irrigations Systems for agriculture.

No. of Employees :	115 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 769000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is a successor of Ajay Industrial Corporation, a partnership concern started in the year 1961. It 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Head Office:	4561, Deputy Ganj, Sadar Bazar, Delhi – 110 006, India
Tel. No.:	91-11-23612204/ 23612206/ 23545307/ 23545463/ 23524366/ 23545463/ 23545291/ 23611140/ 23612204/ 23612206/ 23616816
Fax No.:	91-11-23536205
E-Mail :	ppp@del3.vsnl.net.in preeti_ppap@yahoo.co.in ajaypump@vsnl.net ajaypump@airtelmail.in
Website :	www.ajayindustrial.com www.ajaycorp.com
Area :	18000 Sq. ft.
Location :	Owned

Corporate Office :	13^th Floor, Gopal Dass Bhawan, 28 Barakhamba Road, New Delhi – 110 001, India

Factory 1 :	20/11, Site-IV, Sahibabad, Ghaziabad, Uttar Pradesh, India
Tel. No.:	91-120-2770679/ 2770233/ 2770339
Fax No.:	91-120-2770629
E-Mail :	ajaypump@mantraonline.com
Location :	Owned

Factory 2 :	25, Okhla Industrial Estate, Phase-1, New Delhi – 110 020, India
Tel. No. :	91-11-26911093/ 26922318

Factory 3 :	20/11, Site IV, Sahibabad Industrial Area, Ghaziabad – 201 010, Uttar Pradesh, India
Tel. No.:	91-120-2770679/ 2770233/ 4770679/ 4770233/ 4770339/ 2774747
Fax No.:	91-120-2770629/ 4770629
Location :	Owned

Branch Office :	B-29 and 30, Mayapuri Industrial Area, Phase – 1, New Delhi – 110 064, India
Tel. No.:	91-11-28117056/51833114
Fax No.:	91-11-28115332
E-Mail :	ajaycpvc@vsnl.ajaypipes@yahoo.com
Location :	Owned

Marketing Office :	B-II/29, Mohan Co-operative Industrial Estate, Badarpur Border, New Delhi – 110 044, India
Tel. No.:	91-11-65484046

DIRECTORS

As on 27.09.2010

Name :

Mr. Devendra Chandra Girdhari Lal Jain

Designation :

Managing Director

Address :

D-6, Kalindi Colony, New Delhi – 110 065, India

Date of Birth/Age :

04.08.1941

Date of Appointment :

07.07.2008

DIN No.:

00070922

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	L74899DL1995PLC073281	Precision Pipes and Profiles Company Limited	Director	18-10-95	18-10-95	-	Active	NO
2	U74899DL1980PTC010508	Ajay Poly Private Limited	Director	17-07-97	17-07-97	-	Active	NO
3	U74899DL1986PTC024227	Seiki Auto India Private Limited	Director	26-08-03	26-08-03	-	Active	NO
4	U51909DL2008PLC180573	Ajay Industrial Corporation Limited	Managing director	01-08-08	07-07-08	-	Active	NO

Name :

Mr. Sharat Chand Girdhari Lal Jain

Designation :

Director

Address :

D-6, Kalindi Colony, New Delhi – 110 065, India

Date of Birth/Age :

09.03.1943

Date of Appointment :

07.07.2008

DIN No.:

00071010

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	L74899DL1995PLC073281	Precision Pipes and Profiles Company Limited	Whole-time director	06-08-10	12-09-96	-	Active	NO
2	U74899DL1986PTC024227	Seiki Auto India Private Limited	Director	26-08-03	26-08-03	-	Active	NO
3	U51909DL2008PLC180573	Ajay Industrial Corporation Limited	Director	07-07-08	07-07-08	-	Active	NO
4	U74899DL1981PTC011551	A I C Plastics Private Limited	Additional director	26-08-10	26-08-10	-	Active	NO

Name :

Mr. Ajay Kumar Girdhari Lal Jain

Designation :

Director

Address :

I-14, Maharani Bagh, New Delhi – 110 065, India

Date of Birth/Age :

03.12.1954

Date of Appointment :

07.07.2008

DIN No.:

00148839

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	L74899DL1995PLC073281	Precision Pipes and Profiles Company Limited	Managing director	01-11-10	18-10-95	-	Active	NO
2	U51909DL2008PLC180573	Ajay Industrial Corporation Limited	Director	07-07-08	07-07-08	-	Active	NO

Name :

Mr. Rajeev Devendra Chandra Jain

Designation :

Director

Address :

D-6, Kalindi Colony, New Delhi – 110 065, India

Date of Birth/Age :

03.04.1969

Date of Appointment :

07.07.2008

DIN No.:

00271809

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	U74899DL1980PTC010508	Ajay Poly Private Limited	Managing director	12-11-10	18-06-87	-	Active	NO
2	U74899DL1987PTC028636	Kalindi Farms Private Limited	Director	16-07-87	16-07-87	-	Active	NO
3	U74899DL1981PTC011551	A I C Plastics Private Limited	Director	05-06-89	05-06-89	-	Active	NO
4	L74899DL1995PLC073281	Precision Pipes and Profiles Company Limited	Whole-time director	01-11-10	12-09-96	-	Active	NO
5	U51909DL2008PLC180573	Ajay Industrial Corporation Limited.	Director	07-07-08	07-07-08	-	Active	NO

Name :

Mr. Nitin Devendra Chandra Jain

Designation :

Director

Address :

D-6, Kalindi Colony, New Delhi – 110 065, India

Date of Birth/Age :

22.01.1975

Date of Appointment :

27.09.2010

DIN No.:

00071131

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	U74899DL1980PTC010508	Ajay Poly Private Limited	Director	30-09-06	30-09-06	-	Active	NO
2	U74899DL1982PTC014531	Ajay Industrial Polymers Private Limited	Director	26-09-08	13-08-07	-	Active	NO
3	U51909DL2008PLC180573	Ajay Industrial Corporation Limited	Director	27-09-10	05-08-10	-	Active	NO

Name :

Mr. Akhil Sharat Chand Jain

Designation :

Whole Time Director

Address :

D-6, Kalindi Colony, New Delhi – 110 065, India

Date of Birth/Age :

03.12.1971

Qualification :

B.Com

Experience :

15 Years

Date of Appointment :

07.07.2008

DIN No.:

00071274

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	U74899DL1980PTC010508	Ajay Poly Private Limited	Director	10-01-90	10-01-90	-	Active	NO
2	U74899DL1982PTC014531	Ajay Industrial Polymers Private Limited	Director	26-09-08	13-08-07	-	Active	NO
3	U51909DL2008PLC180573	Ajay Industrial Corporation Limited	Whole-time director	01-08-10	07-07-08	-	Active	NO

Name :

Mr. Anuj Sharat Chand Jain

Designation :

Whole Time Director

Address :

D-6, Kalindi Colony, New Delhi – 110 065, India

Date of Birth/Age :

07.09.1976

Date of Appointment :

01.01.2010

DIN No.:

00071779

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	L74899DL1995PLC073281	Precision Pipes and Profiles Company Limited	Director	20-06-01	20-06-01	-	Active	NO
2	U74899DL1980PTC010508	Ajay Poly Private Limited	Additional director	12-08-10	01-04-03	-	Active	NO
3	U51909DL2008PLC180573	Ajay Industrial Corporation Limited	Whole-time director	01-01-10	01-01-10	-	Active	NO

Audit Committee :

Mr. Sharat Chand Girdhari Lal Jain (Chairman)

Mr. Devendra Chandra Girdhari Lal Jain (Member)

Mr. Rajeev Devendra Chandra Jain (Member)

KEY EXECUTIVES

Name :	Ms. Preeti Jain
Designation :	Secretary
Address :	2675, Baradari, Ballimaran, Delhi – 110 006, India
Date of Birth/Age :	01.01.1981
Date of Appointment :	01.08.2008
PAN No.:	AICPJ7296H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2010

Names of Shareholders		No. of Shares
Devendra Chandra Girdhari Lal Jain		3800000
Sharat Chand Girdhari Lal Jain		3800000
Ajay Kumar Girdhari Lal Jain		1900000
Rajeev Devendra Chandra Jain		100000
Nitin Devendra Chandra Jain		100000
Akhil Sharat Chand Jain		100000
Anuj Sharat Chand Jain		100000
Abhishek Ajay Kumar Jain		100000
Total		10000000

As on 27.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer of PVC Pipes and Fitting, CPVC Pipe and Fitting and UPVC Window Profiles for Building Construction Industries, Hand Pump and Spare Parts, Drip Irrigations Systems for agriculture.

Products :

Item Code No. (ITC Code)	3917
Product Description	CPVC Pipe and Fitting, PVC Pipe and Fitting
Item Code No. (ITC Code)	3925
Product Description	Widow Profiles

v Refrigerator Gaskets

v Flexible Magnetic Strips

v Extrusion Compounds

v UPVC Pipes, Strainers and Casing

v CPVC Plumbing System

v Hand Pump

v Lay Flat Hose

v Flexible PVC Tubings

v Suction Hose

v Drip/Micro/Landscape and Rain Irrigation Systems

v Fogging and Misting System

v India Mark III Deepwell

v Treadle Pump

v Force and Lift Hand Pump

v Ghana Modified Deepwell

v Tara Direct Action Pump

v Treadle/Pedal

PRODUCTION STATUS (AS ON 31.03.2010)

Units	Units Produce Capacity (KG.)	Licensed Capacity	Installed Capacity (KG.)	Actual Production (KG.)
I	P.V.C. Pipe (In Kg) Mayapuri	N .A.	600000.000	589440.945
I	C.P.V.C. Pipe (In Kg) Mayapuri	N .A.	600000.000	518420.760
II	Hand Pump ( In No) Sahibabad	N .A.	30000.000	24141.000
II	P.V.C. Pipe (In Kg) Sahibabad	N .A.	1000000.000	803197.250
III	P.V.C. Pipe (In Kg) Okhla	N .A.	300000.000	0.000
IV	C.P.V.C. Pipe (In Kg) Dehradun	N .A.	2000000.000	1800511.024
IV	P.V.C. Pipe (In Kg) Dehradun	N .A.	350000.000	327352.490
V	UPVC (In KG) Dehradun	N .A.	1300000.000	549807.126
VI	C.P.V.C. (In Kg) Satara	N .A.	200000.000	140144.120
VI	P.V.C. (In Kg) Satara	N .A.	100000.000	76619.600
VI	Window (In Nos.) Satara	N .A.	15000.000	131.000
VII	Window (In Nos.) Hyderabad	N .A.	15000.000	87.000
VIII	Window (In Nos.) Bangalore	N .A.	15000.000	427.000

Notes:

Licenced Capacity Not applicable (N.A.) in terms of Government of India Notification No.S.O.477(E) dated 25^th July, 1991.

GENERAL INFORMATION

No. of Employees :

115 (Approximately)

Bankers :

v Allahabad Bank, International Branch, Parliament Street, New Delhi, India

v ICICI Bank Limited, Land Mark Race Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India

v HDFC Bank

v State Bank of India

v Punjab National Bank

v Citi Bank

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
FROM BANKS
ICICI Bank Term Loan	29.572	39.696
ICICI Bank – (C/C) [Secured against charges by way of equitable (mortgage) of factory land and building, plant and machinery located at Khasra No.1000 and 1001 Village Central Hope Town, Camp (Road), Sclaqui Industrial Area, Chakorta Road Tehsil Vikas Nagar Dehradun, and hypothecation of the company entire stock of Raw Material, Semi (Finished), finished goods, consumable stores and spares and book debts, bills and others receivable and personal guarantees of directors Mr. D.C. Jain, Mr. S.C. Jain and Mr. A.K. Jain)	47.054	79.701
ICICI Bank [Buyer's Credit]	62.163	0.000
Allahabad Bank (Secured against Fixed Deposit of Directors and Family Members)	20.605	35.382
Total	159.394	154.779

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors	142.353	116.174
From Director’s Family Members	328.373	277.532
From Bank	10.540	0.000
Total	481.266	393.706


Banking Relations :	--

Financial Institution :	3i Infotech Trusteeship Services Limited, 3^rd to 6^th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400 703, Maharashtra, India

Auditors :
Name :	Dharam Taneja Associates Chartered Accountants
Address :	13/17, Punjabi Bagh Extension., New Delhi – 110 026, India
Tel. No.:	91-11-25222339/ 25224932
Income-tax PAN of auditor or auditor's firm :	AAAFD4122A

Memberships :	v Engineering Export Promotion Council of India (EEPC) v Plastic Export Promotion Council (PEPC)

Related Parties in the group where common control exists :	v Ajay Poly Private Limited Address : E 119/120, Site B, Surajpur Industrial Area, Surajpur, Noida, India B-II 29/30, MCIE, Mathura Road, Delhi, India 25, Okhla-III, Delhi, India Line of Business : Manufacturer and Exporter of PVC Profiles and Gaskets v Precision Pipes and Profiles Company Limited Address : 54, 56, 70 and 161, Okhla – III, New Delhi, India Line of Business : Manufacturer and Exporter of PVC Profiles and Gaskets v A I C (Plastic) Private Limited v Nutra Foods India Private Limited v Seiki Auto India Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

10000000

Equity Shares

(The above share capital 10000000 Equity Share of Rs.10/- each fully paid up allotted for non cash consideration)

Rs.10/- each

Rs.100.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		100.000	100.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		92.152	50.987
4] (Accumulated Losses)		0.000	0.000
NETWORTH		192.152	150.987
LOAN FUNDS
1] Secured Loans		159.394	154.779
2] Unsecured Loans		481.266	393.706
TOTAL BORROWING		640.660	548.485
DEFERRED TAX LIABILITIES		6.046	4.960

TOTAL		838.858	704.432

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		337.454	285.067
Capital work-in-progress		2.376	20.234

INVESTMENT		0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	365.654	223.338
	Sundry Debtors	263.613	184.167
	Cash & Bank Balances	8.727	11.397
	Other Current Assets	0.000	0.000
	Loans & Advances	83.902	68.870
Total Current Assets		721.896	487.772
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	160.153	40.460
	Other Current Liabilities	37.500	24.316
	Provisions	25.215	24.680
Total Current Liabilities		222.868	89.456
Net Current Assets		499.028	398.316

MISCELLANEOUS EXPENSES		0.000	0.815

TOTAL		838.858	704.432

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Net Sales	1136.494	716.444
		Job Work (Receipts)	0.463	0.256
		Other Income	5.742	3.347
		TOTAL (A)	1142.699	720.047

Less	EXPENSES
		Increase/ Decrease in Finished Stock	(81.798)	37.697
		Material Consumed	824.246	413.868
		Manufacturing and Other Operating Expenses	91.588	48.513
		Personnel Expenses	47.464	27.697
		General and Administrative Expenses	56.077	34.904
		Selling and Distribution Expenses	65.164	35.767
		TOTAL (B)	1002.741	598.446

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		139.958	121.601

Less	INTEREST & FINANCIAL EXPENSES (D)		59.507	44.952

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		80.451	76.649

Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.023	11.885

	PROFIT BEFORE TAX (E-F) (G)		49.428	64.764

Less	TAX (H)		8.263	13.777

	PROFIT AFTER TAX (G-H) (I)		41.165	50.987

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		50.987	0.000

	BALANCE CARRIED TO THE B/S		92.152	50.987

	EARNINGS IN FOREIGN CURRENCY
		Value of Export	283.954	243.274
	TOTAL EARNINGS		283.954	243.274

	IMPORTS
		Raw Material	346.436	163.892
		Capital Goods	20.065	26.658
	TOTAL IMPORTS		366.501	190.550

	Earnings Per Share (Rs.)		4.12	5.10

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	3.60	7.08

Net Profit Margin (PBT/Sales)	(%)	4.35	9.04

Return on Total Assets (PBT/Total Assets}	(%)	4.67	8.38

Return on Investment (ROI) (PBT/Networth)		0.26	0.43

Debt Equity Ratio (Total Liability/Networth)		4.49	4.23

Current Ratio (Current Asset/Current Liability)		3.24	5.45

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS

The company established in 1961, today is the largest manufacturer and exporter of Hand Pumps in the world, also producing wide range of Flexible and Rigid Pipes, Hoses and Tubings. The company undertakes wide variety of engineering and Metal Fabrication jobs at its facilities near New Delhi also manufactures a comprehensive range of Drip, Micro, Landscape and Rain Irrigation products for marketing in Northern and Central India.

The hand pumps division manufactures and sells hand pumps and spare parts in India and a large part of Africa. Its products include Deepwell Hand Pumps, Shallow Well Hand Pumps, Force-lift Hand Pumps and Direct Action Hand pumps. It exports its products to Mongolia, Benin, Malawi, Zambia, Zimbabwe, Botswana, Mozambique, Lesotho, Djibouti, Ethiopia, Sudan, Kenya, Uganda, Rwanda, Tanzania, Somalia, Angola, Namibia, South Africa, Nigeria, Ghana, Ivory Coast, Egypt, Cameroon, Morocco, Senegal, Verde Island, Burkina Faso, Belize, Peru, Malaysia, Indonesia, Singapore, Cambodia, Thailand, Lao PDR, Burma, Pakistan, Afghanistan, Bangladesh, Sri Lanka etc.

The company is a licensee in India of LUBRIZOL INC. of USA (Formerly BF Goodrich) for the production of the world renowned Flowguard brand of CPVC Pipes and fittings for Hot and Cold Water plumbing. AICL has been monumental in development of CPVC pipes and fittings under Ajay FlowGuard which is today marketed all across India through a comprehensive dealer and distributor network. The company has also launched UPVC pipes and fittings for cold water plumbing marketed under brand Ajay Green Line. These products are fast replacing the traditional GI and other plumbing materials all across the country. These products are being supplied to major builders, hotels, hospitals, institutions and industrial customers apart from dealers and distributors.

Subject's latest developments include manufacture of prefabricated UPVC Doors and Windows for which it has entered in to collaboration with leading manufacturer from UK. It has also received marketing rights for India for marketing of world patented Mainline Power Outlet System.

There is an ample demand of their product in domestic as well as international market. Requirement of hand pump is more than 2 lakhs units per annum in domestic and international market. They are exporting 90% of their production to international market. Their major clients are UNICEF, leading NGOs and various water supply departments of Government of India. They are also an affiliated Member of the prestigious organizations like Engineering Export Promotion Council of India (EEPC) and Plastics Export Promotion Council etc. The quality of their products has enabled them to maintain a long-term and fruitful business relationship with their valued clients. Their efforts have helped them in developing a strong customer base in different parts of the world.

As a validation of their excellent quality and their exceptional services, the company has received several awards from many different agencies like:

Star Performer Award from E.E.P.C.

Winners of the Export Award constantly for the past several years etc.

The performance of different 'PRODUCT SEGMENTS' during the year was as under:-

Divisional Contribution in Total Turnover

Division	Current Year 2009-10 (Rs. in millions)	Previous Year 2008-09 (Rs. in millions) (From 07.07.08 to 31.03.09)
Hand Pump Division	364.000	317.700
CPVC/PVC Pipes Division	716.800	366.600
Window Profile Division	14.500	0.600
Miscellaneous	41.200	31.500
Total	1136.500	716.400

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Particulars	31.03.2010 (Rs. in millions)
i) Letters of Guarantees	3.932
ii) Trade Tax /Sales Tax/VAT	0.168
iii) Income Tax	0.467
	4.567

Notes:-

(i) During the period Ended 31.03.2009 Deputy Commissioner Commercial Tax 19 Ghaziabad -1, imposed a Penalty Vide Order Dated 23.03.2009 of Rs.0.168 million. The Company has filed an Appeal against the aforesaid Order.

(ii) During the year assessment has been completed u/s 143(3) for A.Y. 2008-09, in which the Ld. ACIT has raised a demand of Rs.0.467 million against which they have filed an appeal with nonourable CIT (A). The appeal is pending as on date.

FIXED ASSETS:

v Factory Land

v Godown Land

v Plot at Loni

v Factory Building

v Factory Shed (Bangalore)

v Office Building

v Office Renovation

v Furniture

v Motor Car

v Container Cargo

v Cycle

v Rickshaw

v Crain

v Trolley

v Machinery

v Generator

v Lift

v Office Equipment

v Dies and Moulds

v Electric Drill

v Type Writer

v Laboratory Equipments

v Motor Cycle\Scooter

v Computer

v Computer Software

v Construction

v Installation

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.48.93
UK Pound	1	Rs.76.52
Euro	1	Rs.66.65

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.

MIRA INFORM REPORT

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