MIRA INFORM REPORT

Report Date :

18.10.2011

IDENTIFICATION DETAILS

Name :	TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED
Registered Office :	Laxmi Bhavan, Lakkadpitha Road, Vadodara – 390 001, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.06.1996
Com. Reg. No.:	04-29894
Capital Investment / Paid-up Capital :	Rs.32.319 millions
CIN No.: [Company Identification No.]	U24232GJ1996PTC029894
TAN No.: [Tax Deduction & Collection Account No.]	BRDT00509F
PAN No.: [Permanent Account No.]	AABCT0623N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Phase Transfer Catalysts and Organic Quaternary Ammonium Compounds.
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 192100
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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Chintan Nitinkumar Shah
Designation :	Director
Contact No.:	91-9825153445
Date :	12.10.2011

LOCATIONS

Registered Office :	Laxmi Bhavan, Lakkadpitha Road, Vadodara – 390 001, Gujarat, India
Tel. No.:	91-265-2437093
Mobile No.:	91-9974249904 (Mr. Chetan Sheth), 91-9825445675 (Mr. Shekhar R Somani )
Fax No.:	91-265-2424495
E-Mail :	ajay@tatvachintan.com info@tatvachintan.com
Website :	www.tatvachintan.com
Area :	1000 Sq. ft.
Location :	Owned
Factory :	502/17, G.I.D.C Estate, Ankleshwar – 393 002, Gujarat, India
Tel. No.:	91-2646-253593 / 238991
Fax No.:	91-2646-238992
E-Mail :	chintan@tatvachintan.com shekhar@tatvachintan.com info@tatvachintan.com
Area :	3000 Sq. ft.
Location :	Owned

DIRECTORS

AS ON 23.09.2010

Name :	Mr. Chintan Nitinkumar Shah
Designation :	Director
Address :	11-12, Sudhan Laxmi Jain Society, Subhanpura, Baroda – 390 023, Gujarat, India
Date of Birth/Age :	29.04.1973
Qualification :	B.E. (Computer Science)
Date of Appointment :	12.06.1996

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	U24232GJ1996PTC029894	TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED	Director	12/06/1996	12/06/1996	-	Active	NO
2	U24231GJ2003PTC042991	CATALYST ORGANICS PRIVATE LIMITED	Director	01/10/2003	01/10/2003	-	Active	NO

Name :	Mr. Ajaykumar Mansukhlal Patel
Designation :	Director
Address :	9-645 Wadi Falia, Siddhmatani Sheri, Surat – 395 003, Gujarat, India
Date of Birth/Age :	27.02.1972
Qualification :	B.E. (Chemical)
Date of Appointment :	12.06.1996

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	U24232GJ1996PTC029894	TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED	Director	12/06/1996	12/06/1996	-	Active	NO
2	U24231GJ2003PTC042991	CATALYST ORGANICS PRIVATE LIMITED	Director	01/10/2003	01/10/2003	-	Active	NO

Name :	Mr. Shekhar Rasiklal Somani
Designation :	Director
Address :	Mahavir Society, 51-52, 202 Mahavir Apartment, Zaveri Sadak, Navasari – 396 445, Gujarat, India
Date of Birth/Age :	11.01.1974
Qualification :	(B. Pharma) Young Entrepreneurs
Date of Appointment :	12.06.1996

 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	U24232GJ1996PTC029894	TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED	Director	12/06/1996	12/06/1996	-	Active	NO
2	U24231GJ2003PTC042991	CATALYST ORGANICS PRIVATE LIMITED	Director	01/10/2003	01/10/2003	-	Active	NO

KEY EXECUTIVES

Name :	M/S J J Gandhi and Company
Designation :	Company Secretary
Address :	231, Pheonix Complex, Besides Suraj Plaza, Sayajigunj, Vadodara – 390 005, Gujarat, India
Tel. No.:	91-265-2225022
Mobile No.:	91-9879020625/ 937420085
E-Mail :	jigandhi_cs@yahoo.co.in jjgandhics@gmail.com

 Other Directorship:

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.09.2010

Names of Shareholders	No. of Shares
Chintan Shah	816014
Ajay Patel	727193
Shekhar Somani	833673
Rasiklal Somani	99660
Dashnaben Shah	147400
Priti Patel	257400
Kajal Somani	62260
Shital Shah	92400
Raxaben Patel	92400
Ranjanben Somani	52800
Sheetal Somani	4400
Samir Somani	24200
Chintan N Shah (HUF)	22000
Pravin Candra and Company, Mumbai	100
Total	3231900

Equity share breakup (percentage of total equity)

AS ON 23.09.2010

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Phase Transfer Catalysts and Organic Quaternary Ammonium Compounds.

Products :

Product Description	ITC Code
Quarternary Compounds	292390.00

· Phase Transfer Catalysts

· Glycol Diethers

· Ionic Liquids

· Ester Acetates

· Bulk APls

Exports :

Products :

Chemical and Pharmaceutical Products

Countries :

· Singapore

· USA

· Middle East

· Europe

· Australia

· Bangladesh

· Italy

· South Africa

· UAE etc.  

Imports :

Products :

Raw Materials

Countries :

· China

· Japan

· USA

Terms :

Selling :

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

Purchasing :

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

PRODUCTION STATUS (AS ON 31.03.2010):-

Installed Capacity: 1500 MTPA

Particulars	Unit	Actual Production
Quaternary Compounds	MT	748.602
Glymes	MT	4.664
Bulk Drugs	MT	229.593
Specialty Chemicals	MT	26.165
Recovered Mix Solvent	mT	386.476

GENERAL INFORMATION

Customers :

OEM’s

No. of Employees :

120 (Approximately)

Bankers :

Bank of Baroda, Industrial Estate Branch, GIDC, Ankleshwar – 393 002, Gujarat, India

Facilities :

Secured Loans	31.03.2010 Rs. in millions
From Banks
Bank of Baroda, Ankelshwar	53.447
Term Loan I	3.405
Term Loan II	6.498
Term Loan III	17.655
Term Loan IV	0.510
Export Foreign Bill Purchase (Post-shipment)	4.287
Export Bill Purchased (Post-shipment)	2.207
Export Packing Credit (Pre-shipment)	13.500
Packing Credit Foreign Currency	3.586
Foreign Currency Bill Purchased (Term Loan is secured against equitable mortgage of immovable properties and hypothecation of other fixed assets and cash credit is secured against hypothecation of current assets and personal guarantee of all directors)	1.718
Motor Car Loan - I	0.304
Motor Car Loan - II	0.304
Motor Car Loan – III (Secured against hypothecation of Motor Car Purchased and personal guarantee of all directors)	0.304
Total	107.725

Unsecured Loans	31.03.2010 Rs. in millions
Deposits from Director	3.586
Deposits from Shareholders	10.149
Total	13.735

Banking Relations :

--

Auditors :

Name :

Pathak Anjaria and Company

Chartered Accountants

(Mr. Premal J Pathak, Partner, M. No. 42634)

Address :

2^nd Floor, Leela Sadan, Vadodara – 390 001, Gujarat, India

Tel No.:

91-265-6538755

Mobile No.:

91-9824016006

Fax No.:

91-265-2420455 

Email :

pathakanjariaco@yahoo.com

Memberships :

Chemicals and Allied Products Export Promotion Council (CHEMEXCIL)

Sister Concern :

Tatva Chintan Laboratories

Address: 502/17, GIDC, Ankleshwar – 393 002, Gujarat, India.

Year of Establishment : 1992

Activity : Manufacturers Sodium Citrate, Potassium Citrate, Sodium Acid, Citrate, Methyl Parabens, Propyl Paruben, Sodium Methyl Paraben, Sodium Propyl Paraben, etc.

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3231900	Equity Shares	Rs.10/- each	Rs.32.319 millions

NoteS:

2119800 Equity Shares of Rs. 10/- each are allotted as fully paid – up bonus shares by way of capitalization of accumulated profits.

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011
Sales Turnover (Approximately)	400.000

Expected Sales (2011-2012) : Rs.500.000 Millions

The above information has been parted by Mr. Chintan Nitinkumar Shah (Director)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		32.319	30.000	9.999
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		15.706	9.394	17.019
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		46.025	39.394	27.018
LOAN FUNDS
1] Secured Loans		107.726	60.303	37.220
2] Unsecured Loans		13.735	7.541	11.370
TOTAL BORROWING		121.461	67.844	48.590
DEFERRED TAX LIABILITIES		5.893	4.075	3.205
TOTAL		173.379	111.313	78.813
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		88.202	47.818	34.760
Capital work-in-progress		0.000	1.364	0.353
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	58.784	35.276	30.766
	Sundry Debtors	55.048	57.363	36.593
	Cash & Bank Balances	12.517	7.341	2.607
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.226	12.124	7.949
Total Current Assets		148.575	112.104	77.915
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	58.618	47.649	33.346
	Other Current Liabilities	1.139	0.748	0.670
	Provisions	1.865	1.768	0.211
Total Current Liabilities		61.622	50.165	34.227
Net Current Assets		86.953	61.939	43.688
MISCELLANEOUS EXPENSES		0.224	0.192	0.012
TOTAL		173.379	111.313	78.813

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	282.797	239.379	166.397
		Other Income		2.443	1.640
		TOTAL (A)	282.797	241.822	168.037
Less	EXPENSES
		Raw Material Consumed	255.258	147.058	103.489
		Other Manufacturing Expenses		22.190	14.862
		Remuneration to Personal		12.998	9.874
		Excise Duty		20.437	18.337
		Selling and Administrative Expenses		12.630	10.608
		Loss of Fixed Assets		0.994	0.474
		Increased/(Decreased) in Stock		1.633	(8.344)
		TOTAL (B)	255.927	217.940	149.300
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.870	23.882	18.737
Less	FINANCIAL EXPENSES (D)		10.309	5.978	5.521
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.561	17.904	13.216
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.848	2.059	1.728
	PROFIT BEFORE TAX (E-F) (G)		12.713	15.845	11.488
Less	TAX (I)		3.867	5.479	3.690
	PROFIT AFTER TAX (G-I) (J)		8.846	10.366	7.798
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.395	17.019	9.561
Add	PRIOR PERIOD ADJUSTMENTS		(0.669)	(0.035)	0.244
Less	APPROPRIATIONS
		Bonus Shares	0.000	16.200	0.000
		Dividend	1.616	1.500	0.499
		Income Tax on Dividend	0.249	0.254	0.085
	BALANCE CARRIED TO THE B/S		15.707	9.396	17.019
	Earnings Per Share (Rs.)		2.74	3.46	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.13	4.29	4.64
Net Profit Margin (PBT/Sales)	(%)	4.49	6.62	6.90
Return on Total Assets (PBT/Total Assets}	(%)	5.37	9.82	10.20
Return on Investment (ROI) (PBT/Networth)		0.28	0.40	0.43
Debt Equity Ratio (Total Liability/Networth)		3.98	2.99	3.07
Current Ratio (Current Asset/Current Liability)		2.41	2.23	2.28

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
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 variation <> 20%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	No
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations 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, if available	--

Form 8:-

Name of the company

TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED

Presented By

Bank of Baroda, Ankleshwar

Tatvachintan Pharma Chem Private Limited

1) Date and description of instrument creating the change

Hypothecation Agreement dated 28.04.2005

2) Amount secured by the charge/amount owing on the securities of charge

Rs.22.950 millions

Particulars	(Rs. in millions)
Term Loan I	1.950
Term Loan II	6.000
Cash Credit – Hyp (Stock and Book Debts)	12.000
Sub limit
PC cum FBP	(2.500)
Letter of Credit	3.000
Total	22.950

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Term Loan

Hypothecation of plant, machinery and equipments to the Hypothecation Agreement, both present and future, installed, situated and lying at Plot No. 502/17, GIDC, Ankleshwar.

For Other limits

Hypothecation of all kinds of goods viz. Raw materials, WIP< Finished Goods lying at Plot No. 502/17, GIDC, Ankleshwar and hypothecation of Book Debts and receivables and goods procured under L/C.

4) Gist of the terms and conditions and extent and operation of the charge.

Margin Stocks – 25%

Book Debts – 40%

Interest

Term Loan 2.75% OBPLR p.a. monthly rest

Cash Credit 2.00% OBPLR p.a. monthly rest

EPC – as per bank’s guidelines

Period Renewable after one year.

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda

Industrial Estate Branch, GIDC, Ankleshwar

This form is for	Modification of charge
Corporate identity number of the company	U24232GJ1996PTC029894
Name of the company	TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Laxmi Bhavan, Old Lakkadpitha Road, Vadodara – 390 001, Gujarat, India.
Type of charge	Immovable property
Particular of charge holder	Bank of Baroda Industrial Estate Branch, GIDC, Ankleshwar – 393 002, Gujarat, India Email: indank@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Supplemental Memorandum of Entry
Date of instrument Creating the charge	05.05.2008
Amount secured by the charge	Rs.74.893 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Term Loan : BPLR p.a. with monthly rest Cash Credit : 1% below BPLR Packing Credit Limit : as per Bank guidelines Terms of Repayment: Working Capital repayable on demand and Term Loans and Demand loan repayable as per schedule loan agreement. Margin: 25% on all stocks 40% on all eligible book debts 25% Term Loan 25% on Inland/ Import Letter Extent and Operation of the charge: First charge on the immovable properties of the company.
Short particulars of the property charged	Land and Building situated at GIDC Plot No. 502/8, Plot No. 502/18 Revenue survey No. 271/p within the village limit of Piraman Tal. Ankleshwar Dist. Bharuch

This form is for	Modification of charge
Charge identification number of the modified	90110934
Corporate identity number of the company	U24232GJ1996PTC029894
Name of the company	TATVA CHINTAN PHARMA CHEM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Laxmi Bhavanlakkadpitha Road, Vadodara – 390001, Gujarat, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Bank of Baroda
Nature of description of the instrument creating or modifying the charge	Fourth Supplemental Composite Agreement of Hypothecation of Goods, Book Debts, Movable Machinery and Vehicles.
Date of instrument Creating the charge	12/06/2009
Amount secured by the charge	Rs.115.413 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Term Loan : BPLR p.a. with monthly rest Cash Credit : 1% below BPLR Packing Credit Limit : as per Bank guidelines Terms of Repayment Working capital repayable on demand and Term loan repayable as per schedule of loan agreement. Margin 25% on all stocks 40% on all eligible book debts 25% Term Loan 25% on Inland / Import Letter Extent and Operation of the charge First charge on the movable properties of the company
Short particulars of the property charged	Borrower's stocks both present and future including raw materials, work in process, semi finished goods and finished goods such as chemicals, Pharmaceuticals Bulk Drugs, Intermediates, speciality fine chemicals, packing materials, stores etc. All present and future book debts, outstanding, money receivables, which is due and owing to the borrower in the course of its business. All tangible movable machineries and movable plants.
Date of latest modification prior to the present modification	05/05/2008
Particulars of the present modification	The existing charge was enhanced from Rs.74.893 Millions to Rs.115.413 Millions so as it can secure the aggregate additional finance facility of Rs.40.520 Millions.

Fixed Assets

· Leasehold Land

· Factory Building

· Labour Quarters

· Administration Building

· Plant and Machinery

· Gas Cylinders

· Electrical Installations

· Effluent Treat Plant

· Two Wheelers

· Furniture and Fixtures

· Computer

· R and D Equipment

· Motor Car

· Office Equipments

· R and D Building

Web Details

Company Profile

Subject is an integrated growing specialty chemical and pharmaceutical company, promoted by three young and technocrats friends, founded in 1996 with the purpose of serving the community and aiming to become one of the fastest growing specialty chemical and pharmaceutical company in India.

Strong business relationships, commitment to outstanding quality and service make subject a preferred partner for its customers.

The company’s success is based on the expertise of its people, their ability to identify new customer needs at an early stage, and an enthusiasm to work together with customers to develop creative, efficient solutions

Company Philosophy

They believe the first responsibility is to the customers who use the products and services. In meeting their needs everything they do must be of high quality. They must constantly strive to reduce the costs in order to maintain reasonable prices. Customer orders must be serviced promptly and accurately. The suppliers and distributors must have an opportunity to make a fair profit.

They are responsible to the employees, the men and women who work with them throughout the world. Everyone must be considered as an individual. They must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. They must be mindful of ways to help the employees fulfill heir family responsibilities. Employees must fee! free to make suggestions and complaints, There must be equal opportunity for employment, development and advancement for those qualified. They must provide competent management, and their actions must be just and ethical.

They are responsible to the communities in which they live and work and to the world community as well. They must be good citizens - support good works and charities and bear the fair share of taxes. They must encourage civil improvements and better health and education. They must maintain in good order the property they are privileged to use, protecting the environment and natural resources. 

Chemical Inventor

In order to become a “CHEMICAL INVENTOR” that expands operations on a global scale, Subject has pursued the unlimited potential of chemistry and continued to raise challenges since its inception.

Subject is characterized by a flexible and advanced production system and fast, reliable deliveries. There is a strong emphasis on quality assurance to meet customers' demands for products of a uniform quality.

Subject is working on research and development based on the superior knowledge and advanced technical capabilities adapted to diverse market needs. Further they are creating new values in chemistry with drive and passion, in consideration of the global environment.

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.48.89
UK Pound	1	Rs.77.31
Euro	1	Rs.67.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		49

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	>86
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	71-85
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	56-70
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	41-55
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	26-40
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	11-25
<10	C	Absolute credit risk exists. Caution needed to be exercised	<10

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.