MIRA INFORM REPORT

Report Date :

03.10.2011

IDENTIFICATION DETAILS

Name :	ESSAR LOGISTICS LIMITED
Registered Office :	Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400034, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.10.2004
Com. Reg. No.:	149214
CIN No.: [Company Identification No.]	U63000MH2004PLC149214
TAN No.: [Tax Deduction & Collection Account No.]	MUME05750D
PAN No.: [Permanent Account No.]	AABCE4028N
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Providing Logistics Services.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 7257200
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Essar Shipping Ports and Logistics Limited. It is a well 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.

INFORMATIODECLINED BY

Name :	Mr. Manohar
Designation :	Account Manager
Date :	30.09.2011

LOCATIONS

Registered Office :	Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai – 400034, Maharashtra, India
Tel. No.:	91-22-50011100/66601100
Fax No.:	91-22-23544312/66601809
E-Mail :	manoj.contractor@essar.com

DIRECTORS

AS ON 22.06.2010

Name :

Mr. Arun Kumar Musaddy

Designation :

Whole Time Director

Address :

Flat No. 4B, Panhar Worli Sea Face Khan Abdul Gaffar Khan Road, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

05.04.1945

Date of Appointment :

21.10.200

Din No.

00055534

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	U51909MH1946PLC005043	SG CHEMICALS AND DYES TRADING LIMITED	Director	01-04-95	01-04-95	-	Active	NO
2	U51900MH1993PLC071684	PRAJESH MARKETING LTD	Director	30-10-01	30-10-01	-	Active	NO
3	U51420MH2002PLC136497	GIRISHAN INVESTMENT LIMITED	Director	12-07-02	12-07-02	-	Active	NO
4	U67120MH1989PLC054295	SRIJAN INVESTMENTS LIMITED	Director	02-09-02	02-09-02	-	Active	NO
5	U65990MH1989PLC054296	SASMITA INVESTMENTS LIMITED	Director	02-09-02	02-09-02	-	Active	NO
6	U65922MH1992PLC070199	ONLINE DISTRIBUTION SERVICES LIMITED	Director	02-09-02	02-09-02	-	Amalgamated	NO
7	U65990MH1989PLC054279	TRIKAYA INVESTMENTS LIMITED	Director	02-09-02	02-09-02	12-07-05	Amalgamated	NO
8	U93090TN1983PLC019552	ESSAR PROPERTIES LIMITED	Director	27-09-02	27-09-02	-	Active	NO
9	U65993TN1993PTC024724	IMPERIAL CONSULTANTS AND SECURITIES PRIVATE LIMITED	Director	27-09-02	27-09-02	-	Active	NO
10	U63000MH2004PLC149214	ESSAR LOGISTICS LIMITED	Whole-time director	01-07-07	25-10-04	-	Active	NO
11	U60231DL1983PLC015705	SUPREME TRANSPORT AND TRADERS LIMITED	Director	22-08-05	22-08-05	-	Active	NO
12	U70101TN1995PLC031499	SHRI NAND NAKET PROPERTIES LIMITED	Director	22-08-05	22-08-05	-	Active	NO
13	U74999MH1991PLC063551	ESSAR HOUSE SERVICES LIMITED	Director	01-09-05	01-09-05	-	Amalgamated	NO
14	U67120MH1993PLC070736	INDSEC HOLDINGS LTD	Director	20-10-05	20-10-05	-	Amalgamated	NO
15	U70101MH1989PLC053170	PRATIK ESTATES PRIVATE LIMITED	Director	29-09-08	01-03-08	-	Active	NO
16	U01403MH2007PLC166813	TIRUNELVELI WIND FARMS LIMITED	Director	05-04-10	05-04-10	-	Active	NO
17	U45200GJ2010PLC062746	ESSAR INFRASTRUCTURE PROJECTS LIMITED	Director	26-10-10	26-10-10	-	Active	NO
18	U45200GJ2010PLC062767	ESSAR UTILITY PROJECTS LIMITED	Director	27-10-10	27-10-10	-	Active	NO
19	U45200GJ2010PLC062785	ESSAR ROAD PROJECTS LIMITED	Director	31-10-10	31-10-10	-	Active	NO
20	U40109MH2008PLC184001	ESSAR ENERGY SERVICES LIMITED	Additional director	05-11-10	05-11-10	-	Active	NO

Name :

Mr. Sanjay Kishore Mehta

Designation :

Director

Address :

Panhar Worli Sea Face Khan Abdul Gaffar Khan Road, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

26.03.1968

Date of Appointment :

01.01.2007

Din No.

01269027

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	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Managing director	18-09-00	18-09-00	24-07-10	Active	NO
2	U35111GJ1993FLC053434	VADINAR OIL TERMINAL LIMITED	Director	19-09-00	19-09-00	31-07-10	Active	NO
3	U63000MH2004PLC149214	ESSAR LOGISTICS LIMITED	Director	01-01-07	01-01-07	31-07-10	Active	NO
4	U13100GJ2004PLC043477	Essar Bulk Terminal Limited	Director	03-01-07	03-01-07	31-07-10	Active	NO
5	U63032MH2007PLC176225	Essar Bulk Terminal (Salaya) Limited	Director	27-11-07	27-11-07	02-08-10	Active	NO
6	U63032MH2009PLC189497	Essar Dredging Limited	Director	12-01-09	12-01-09	02-08-10	Active	NO
7	U63023GJ2009FLC056684	VADINAR PORTS & TERMINALS LIMITED	Director	21-04-09	21-04-09	02-08-10	Active	NO
8	U93090MH2006PLC163779	ESSAR OILFIELD SERVICES INDIA LIMITED	Director	23-06-10	15-06-09	02-08-10	Active	NO
9	U63000MH2009PLC196857	ESSAR PARADIP TERMINALS LIMITED	Director	04-11-09	04-11-09	02-08-10	Active	NO
10	U63000GJ2009PLC058496	ESSAR BULK TERMINAL PARADIP LIMITED	Director	06-11-09	06-11-09	02-08-10	Active	NO

Name :

Mr. Ramnath Bansal

Designation :

Director

Address :

B-365, New Friends Colony, New Delhi – 110065, Delhi, India

Date of Birth/Age :

15.07.1930

Date of Appointment :

18.02.2008

Din no.

00270908

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	L15421WB1952PLC020577	GOBIND SUGAR MILLS LTD.	Director	23-07-80	23-07-80	-	Active	NO
2	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Director	19-06-87	19-06-87	-	Active	NO
3	L14101UP1977PLC021546	ORIENT CERAMICS AND INDUSTRIES LIMITED	Director	08-03-89	08-03-89	-	Active	NO
4	L72900UP1986PLC008448	S Mobility Limited	Director	11-08-92	11-08-92	23-04-10	Active	NO
5	L17110MH1882PLC000045	THE HINDOOSTAN SPINNING AND WEAVING MILLS LIMITED	Director	08-02-95	08-02-95	-	Amalgamated	NO
6	L74899DL1994PLC059950	PUSHPSONS INDUSTRIES LIMITED	Director	10-02-95	10-02-95	-	Active	NO
7	L34103TN1963PLC004987	JONAS WOODHEAD & SONS (INDIA) LIMITED	Director	22-09-95	22-09-95	20-09-08	Active	NO
8	L24124RJ1985PLC003293	CHAMBAL FERTILISERS AND CHEMICALS LIMITED	Director	11-05-96	11-05-96	-	Active	NO
9	U35111GJ1993FLC053434	VADINAR OIL TERMINAL LIMITED	Director	31-01-06	31-01-06	-	Active	NO
10	U63000MH2004PLC149214	ESSAR LOGISTICS LIMITED	Director	18-02-08	18-02-08	-	Active	NO
11	L26921GJ1985PLC008196	BELL CERAMICS LIMITED	Director	28-05-11	24-11-10	-	Active	NO
12	U93090MH2006PLC163779	ESSAR OILFIELD SERVICES INDIA LIMITED	Additional director	01-03-11	01-03-11	-	Active	NO
13	U61200GJ2010PLC060285	ESSAR SHIPPING LIMITED.	Additional director	23-05-11	23-05-11	-	Active	NO
14	L17121MH1904PLC000195	HINDOOSTAN MILLS LIMITED	Additional director	08-06-11	08-06-11	-	Active	NO

Name :

Mr. Ashok Vaidyanathan

Designation :

Director

Address :

501 Bullet Apts, Hindu Colonyy, Dadar East, Mumbai – 400014, Maharashtra, India

Date of Birth/Age :

08.06.1963

Date of Appointment :

18.05.2009

Din no.:0

01089738

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	L85110GJ1975PLC054824	ESSAR PORTS LIMITED	Director	24-07-10	07-12-06	14-06-11	Active	NO
2	U13100GJ2004PLC043477	Essar Bulk Terminal Limited	Director	03-01-07	03-01-07	14-06-11	Active	NO
3	U35111TN1992PLC023724	ESSAR SISCO SHIP MANAGEMENT COMPANY LIMITED	Director	15-03-07	15-03-07	-	Amalgamated	NO
4	U63032MH2007PLC176225	Essar Bulk Terminal (Salaya) Limited	Director	27-11-07	27-11-07	14-06-11	Active	NO
5	U35111GJ1993FLC053434	VADINAR OIL TERMINAL LIMITED	Director	31-12-07	31-12-07	14-06-11	Active	NO
6	U63032MH2009PLC189497	Essar Dredging Limited	Director	12-01-09	12-01-09	14-06-11	Active	NO
7	U63023GJ2009FLC056684	VADINAR PORTS & TERMINALS LIMITED	Director	21-04-09	21-04-09	14-06-11	Active	NO
8	U93090MH2006PLC163779	ESSAR OILFIELD SERVICES INDIA LIMITED	Director	14-05-09	14-05-09	14-06-11	Active	NO
9	U63000MH2004PLC149214	ESSAR LOGISTICS LIMITED	Director	18-05-09	18-05-09	14-06-11	Active	NO
10	U63000MH2009PLC196857	ESSAR PARADIP TERMINALS LIMITED	Director	04-11-09	04-11-09	14-06-11	Active	NO
11	U63000GJ2009PLC058496	ESSAR BULK TERMINAL PARADIP LIMITED	Director	06-11-09	06-11-09	14-06-11	Active	NO
12	U63000MH2010PLC199815	ADEL SHIPPING & LOGISTICS LIMITED	Director	08-02-10	08-02-10	-	Active	NO
13	U61200GJ2010PLC060285	ESSAR SHIPPING LIMITED.	Director	16-04-10	16-04-10	23-05-11	Active	NO
14	U74999MH2011PLC217380	ESSAR SERVICES INDIA LIMITED	Director	12-05-11	12-05-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Manohar
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON AS ON 22.06.2010

Names of Shareholders	No. of Shares
Essar Shipping Ports and Logistics Limited, Mumbai	72999994
Essar Shipping Ports and Logistics Limited Jointly With Raghavan Jagannathan	1
Essar Shipping Ports and Logistics Limited Jointly With Ravi Vaidyanathan	1
Essar Shipping Ports and Logistics Limited Jointly With Ashok Vaidyanathan	1
Essar Shipping Ports and Logistics Limited Jointly With A R Ramakrishnan	1
Essar Shipping Ports and Logistics Limited Jointly With Shivanna A Shetty	1
Essar Shipping Ports and Logistics Limited Jointly With Raman Subramanian	1
Total	73000000

AS ON 22.06.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Logistics Services.

GENERAL INFORMATION

Bankers :

Kotak Mahindra Bank Limited, 36-38, Nariman Bhavan, 227 D, Nariman Point, Mumbai – 40021, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From banks Foreign currency term loan, secured by first charge on vessels and floating cranes Rupee term loan [converted into FCNR (B) facility] secured by first charge on barge unloader Rupee term loan secured by first charge on cargo handling equipment Interest accrued and due on foreign currency term loan Cash credit facility from banks (first charge on current assets)	1595.300 59.400 335.500 0.300 26.200	1800.700 91.400 0.000 21.400 0.000
From others Loan for purchase of vehicles under hire purchase agreement (principal amount falling due within one year Rs.18.900 Millions (previous year Rs.8.600 Millions)) Less: Unmatured interest charges	51.900 8.000	20.200 2.600
	43.900	17.600
Total	2060.600	1931.100

Banking Relations :	--
Auditors :
Name :	Chartered Accountant
Address :
Holding Companies :	Essar Global Limited, Cayman Island (ultimate holding company) Essar Shipping and Logistics Limited, Cyprus Essar Shipping Ports and Logistics Limited, India, immediate holding company
Fellow Subsidiaries :	Essar Ports and Terminals Limited Essar Oilfields Services Limited Essar International Limited
Other Related Parties / Affiliates :	Essar Steel Limited Essar Steel (Hazira) Limited Vadinar Oil Terminal Limited Essar Bulk Terminal Limited Essar Shipping and Logistics (Panama) Inc. Essar Oil Limited Essar Projects (India) Limited Futura Travels Limited Essar Information Technology Limited India Securities Limited Essar SEZ Hazira Limited Essar House Services Limited Essar Agrotech Limited Essar Investments Limited Essar Telecom Retail Limited Essar Power M.P. Limted Essar Power Gujarat Limited Hazira Plate Limited Hazira Pipe Mill Limited Essar Power Limited Essar Steel Orissa Limited Vadinar Power Company Limited Essar House Limited Essar Engineering Services Limited Essar Infrastructure Services Limited Essar Oilfield Services India Limited Essar Bulk Terminal Paradip Limited Essar Dredging Limited Essar Offshore Sub Sea Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/- each	Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
73000000	Equity Shares	Rs.10/- each	Rs.730.000 Millions

(The above shares are being held by Essar Shipping Ports & Logistics Limited, the holding company)

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		730.000	730.000	730.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1084.300	846.100	426.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1814.300	1576.100	1156.100
LOAN FUNDS
1] Secured Loans		2060.600	1931.100	1515.100
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		2060.600	1931.100	1515.100
DEFERRED TAX LIABILITIES		252.700	325.200	189.100
TOTAL		4127.600	3832.400	2860.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2294.800	2510.700	2262.600
Capital work-in-progress		150.000	0.000	117.500
INVESTMENT		0.100	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	122.400	97.700	113.800
	Sundry Debtors	1461.400	1193.800	908.800
	Cash & Bank Balances	983.000	754.000	269.800
	Other Current Assets	29.100	23.300	6.300
	Loans & Advances	1113.800	103.000	121.800
Total Current Assets		3709.700	2171.800	1420.500
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1842.000	741.600	882.300
	Other Current Liabilities	107.700	86.000	38.800
	Provisions	77.300	22.500	19.200
Total Current Liabilities		2027.000	850.100	940.300
Net Current Assets		1682.700	1321.700	480.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4127.600	3832.400	2860.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	10701.000	9579.800	8650.300
		Other Income	107.300	80.100	92.500
		TOTAL (A)	10808.300	9659.900	8742.800
Less	EXPENSES
		Operating Expenses	9795.700	8305.500	7746.300
		Establishment and Other Expenses	204.500	272.300	137.900
		Loss in sale of fixed assets	1.500	0.000	0.000
		TOTAL (B)	10001.700	8577.800	7884.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		806.600	1082.100	858.600
Less	FINANCIAL EXPENSES (D)		101.800	129.000	153.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		704.800	953.100	705.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		334.400	294.700	265.500
	PROFIT BEFORE TAX (E-F) (G)		370.400	648.400	440.100
Less	TAX (I)		132.200	225.100	152.100
	PROFIT AFTER TAX (G-I) (J)		238.200	433.300	288.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		846.100	426.100	144.300
Less	Provision for Employee Benefits (Net of differed tax)		0.000	0.000	6.200
Less	Exchange difference adjustment (net of deferred tax Rs. nil (previous year Rs.6.800 Millions))		0.000	13.300	0.000
	BALANCE CARRIED TO THE B/S		1084.300	846.100	426.100
	EARNINGS IN FOREIGN CURRENCY
		Sea Freight	3.000	1.500	2.000
		Other Income	2.000	34.300	2.200
	TOTAL EARNINGS		5.000	35.800	4.200
	IMPORTS
		Components and Spares Parts	36.200	53.300	69.700
		Capital Goods	154.300	0.000	26.000
	TOTAL IMPORTS		190.500	53.300	95.700
	Earnings Per Share (Rs.)		3.26	5.94	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.20	4.48	3.29
Net Profit Margin (PBT/Sales)	(%)	3.46	6.79	5.09
Return on Total Assets (PBT/Total Assets}	(%)	6.17	13.85	11.95
Return on Investment (ROI) (PBT/Networth)		0.20	0.41	0.38
Debt Equity Ratio (Total Liability/Networth)		2.25	1.76	2.12
Current Ratio (Current Asset/Current Liability)		1.83	2.55	1.50

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	1842.000	741.600	882.300

FINANCIAL ANALYSIS

During the year, the Company earned a Total Income of Rs.10808.200 Millions as compared to Rs.9659.900 Millions during the previous year, representing an increase of 11.89%. The increase in Total Income has been on account of increase in the revenue from surface logistics during the year.

The Net Profit for the year decreased to Rs.238.100 Millions as compared to Rs.433.300 Millions in the previous year. The Directors are of the view that considering the requirement of capital for growth in a highly competitive industry and also the need to plough back the resources for expansion, no dividend is recommended.

OPERATIONS

The Company has been providing wet bulk and dry bulk logistics services in the areas of stevedoring, lighterage, trans-shipment, sea and land transportation and project cargo handling to various clients.

During the year under review, the Company handled about 22 mmt (million metric tonne) of cargoes. This was possible due to effective utilisation of the assets and by using systems which helped in vehicle planning, placement and movement.

The Company has entered into contracts for movement of several heavy equipment over the next two years which include power plants to Mahan and Salaya, expansion of oil refinery at Vadinar, pipe and plate mills and blast furnaces for the steel plants at Hazira. These assignments include undertaking the movement of the project equipment from manufacturers worldwide to the project sites by land and sea.

During the year, the Company has drawn out a plan to purchase 150 trailer trucks to cater to door to door delivery needs of the customers at Essar Steel’s hypermarts.

FORM 8:

Corporate identity number of the company	U63000MH2004PLC149214
Name of the company
Address of the registered office or of the principal place of business in India of the company	Essar House11 K K Marg, Mahalaxmi, Mumbai – 400034, Maharashtra, India
This form is for	Modification of charge
Type of charge	Movable Property
Particular of charge holder	KOTAK MAHINDRA BANK LIMITED
Nature of instrument creating charge	Supplemental Deed of Hypothecation
Date of instrument Creating the charge	23/09/2010
Amount secured by the charge	Rs.450.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be specified by the Bank from time to time. Terms of Repayment Letters of Credit - 1. Loan shall be repaid by way of 20 equal quarterly instalments (EQIs) starting from the end of 3 months following the date of first disbursement of Term Loan. 2. EQIs shall exclude amount of monthly interest. 3. EQI shall be recovered by way of direct debit to current account of the Borrower with the Bank. Margin Letters of Credit - Cash margin of 20% Extent and Operation of the charge First & exclusive charge on the Moveable assets of the Borrower purchased / to be purchased out of Bank finance, in favour of Kotak Mahindra Bank as security for repayment of financial facilities granted by the Bank to the Borrower
Short particulars of the property charged	Moveable assets of the Borrower purchased / to be purchased out of Bank finance, as described in Schedule III to the Supplemental Deed of Hypothecation.
Date of instrument modifying the charge	07/12/2009
Particulars of the present modification	The Bank had granted facilities of Rs.450.000 Millions which was secured by Hypothecation of moveable assets of the Borrower on 07/12/2009. Now Bank has granted additional LC facility of Rs.50.000 Millions (sub limit of the TL-II) and the said charge is now modified and extended to the revised facility of Rs.450.000 Millions.

FIXED ASSETS:

• Furniture and fixtures
• Plant and machinery
• Office equipment
• Vessels
• Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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.45.38
UK Pound	1	Rs.72.71
Euro	1	Rs.61.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.