MIRA INFORM REPORT

Report Date :

20.10.2011

IDENTIFICATION DETAILS

Name :	LAXCON STEELS LIMITED [w.e.f. 21.06.2007]
Formerly Known As :	LAXCON STEELS PRIVATE LIMITED
Registered Office :	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabd – 382 220, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.08.1999
Com. Reg. No.:	04-036413
Capital Investment / Paid-up Capital :	Rs.126.042 Millions
CIN No.: [Company Identification No.]	U27100GJ1999PLC036413
TAN No.: [Tax Deduction & Collection Account No.]	AHML00104G
PAN No.: [Permanent Account No.]	AAACL5064A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Alloy Steel, Mild Steel and Stainless Steel.
No. of Employees :	205 (In Office 30 and In Factory 175) 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 1490000
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 – September 30, 2011

Country Name

Previous Rating (30.06.2011)

Current Rating (30.09.2011)

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

INFORMATION DECLINED BY

Name :	Mr. Dhirish
Designation :	Chief Finance Officer
Date :	01.10.2011

LOCATIONS

Registered Office / Factory :	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabd – 382 220, Gujarat, India
Tel. No.:	91-2717-325046 / 47
Fax No.:	91-2717-252015
E-Mail :	laxcon@gopalgroup.com laxconoffice@gopal.com officelaxcon@gopalgroup.com
Website :	http://www.gopalgroup.com http://www.laxconsteels.com
Area :	35000 Sq. ft.
Location :	Owned
Administrative Office :	Rajvee Arcrade, 2^nd Floor, Opposite Gurukul Temple, Mem Nagar, Ahmedabad, Gujarat, India
Tel. No.:	91-79-40007600 [100 Lines] / 27478474
Fax No.:	91-79-4007666 / 67 / 27478471
Area :	2060 Sq. ft.
Location :	Owned
Corporate Office :	C-55/2, Wazirpur Industrial Area, Delhi – 110052, India
Tel. No.:	91-11-42952500 [100 Lines] / 27377001- 5
Fax No.:	91-11-27377373 / 7474
E-Mail :	sales@gopalgroup.com info@gopalgroup.com

DIRECTORS

As on 21.09.2010

Name :

Mr. Gopal Swarup Surender Pal Gupta

Designation :

Managing Director

Address :

H-34, Ashok Vihar, Phase – I, Delhi – 110 052, India

Date of Birth/Age :

26.03.1965

Qualification :

B.Com.

Date of Appointment :

20.03.2002

DIN :

00381600

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	U74899DL1988PTC032409	COMET BUILDERS PRIVATE LIMITED	Director	11/7/1988	11/7/1988	-	Active	NO
2	U27109DL1990PLC040795	CASTWELL ALLOYS LIMITED	Director	12/7/1990	12/7/1990	10/11/2008	Active	NO
3	U67120DL1979PTC009880	ALLIED HOLDINGS PRIVATE LIMITED	Director	12/2/1993	12/2/1993	-	Active	NO
4	U74899DL1993PLC054676	KRAZE EXPORTS LIMITED	Director	30/07/1993	30/07/1993	-	Active	NO
5	U74899DL1995PLC066535	GOPAL UDYOG LIMITED	Director	20/03/1995	20/03/1995	-	Active	NO
6	U45201DL1998PTC091501	G G PROJECTS PRIVATE LIMITED	Director	5/1/1998	5/1/1998	-	Active	NO
7	U45201DL2000PTC103888	KRISHNA PROJECTS PRIVATE LIMITED	Director	22/02/2000	22/02/2000	-	Active	NO
8	U27100GJ1999PLC036413	LAXCON STEELS LIMITED	Managing director	5/4/2007	20/03/2002	-	Active	NO
9	U27100GJ2005PTC046176	OCEAN STEELS PRIVATE LIMITED	Director	2/6/2005	2/6/2005	-	Active	NO
10	U45201GJ2007PTC049892	KRAZE BUILDERS PRIVATE LIMITED	Director	31/01/2007	31/01/2007	-	Active	NO
11	U45202GJ2007PTC049912	MAJESTIC INDUSTRIAL PARK PRIVATE LIMITED	Director	1/2/2007	1/2/2007	-	Active	NO

Name :

Mr. Vinod Surender Pal Gupta

Designation :

Director

Address :

H-34, Ashok Vihar, Phase – I, Delhi – 110 052, India

Date of Birth/Age :

07.06.1977

Qualification :

B.Com.

Date of Appointment :

20.03.2002

DIN :

00381782

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	U52110DL1979PTC009979	PARVATI PRIVATE LIMITED	Director	1/1/1995	1/1/1995	Active	NO
2	L65921DL1989PLC035261	SUPRANEET FINANCE AND CONSULTANTS LIMITED	Whole-time director	1/10/2008	11/6/1998	Active	NO
3	U74899DL1993PLC054676	KRAZE EXPORTS LIMITED	Director	29/09/2008	24/05/1999	Active	NO
4	U45201DL1998PTC091501	G G PROJECTS PRIVATE LIMITED	Director	29/08/1999	29/08/1999	Active	NO
5	U27100GJ1999PLC036413	LAXCON STEELS LIMITED	Director	20/03/2002	20/03/2002	Active	NO
6	U74899DL1985PTC020065	UTILITY CONSULTANTS PRIVATE LIMITED	Director	1/10/2004	1/10/2004	Active	NO
7	U00000DL1991PTC044462	MEGA STEELS PRIVATE LIMITED	Director	24/09/2010	1/7/2010	Active	NO

Name :

Mr. Sanjay Gupta

Designation :

Director

Address :

1009/67, Deva Ram Park, Tri Nagar, Delhi, India

Date of Birth/Age :

08.11.1968

Qualification :

B.Com.

Date of Appointment :

20.03.2002

DIN :

00383021

Name :

Mr. Rajan G Garg

Designation :

Director

Address :

20/42, West Punjabi Baug, New Delhi – 140 020, India

Date of Birth/Age :

25.09.1975

Qualification :

B.Com.

Date of Appointment :

01.04.2004

DIN :

00439436

Name :

Mr. Naresh Kumar Kakkar

Designation :

Director

Address :

76, Vaishali Pitampura, Delhi – 110088, India

Date of Birth/Age :

15.06.1942

Date of Appointment :

06.04.2009

DIN :

01541205

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	U45400WB2007PTC165553	CHAMBAL LAND RESOURCES PRIVATE LIMITED	Director	18/06/2007	18/06/2007	22/10/2010	Active	NO
2	U74140DL2007PTC170832	ETERNUS CAPITAL CONSULTANCY PRIVATE LIMITED	Director	27/11/2007	27/11/2007	-	Active	NO
3	U27100GJ1999PLC036413	LAXCON STEELS LIMITED	Director	25/09/2009	6/4/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Dhirish
Designation :	Chief Finance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.09.2010

Names of Shareholders	No. of Shares
Gopal Swarup Gupta	970000
Gopal Swarup Gupta (HUF)	600000
Master Gaurav G Gupta	736000
Kunal Jain	241934
Pooja Gupta	410000
Surendra Pal Gupta	1705000
Surendra Pal Gupta (HUF)	1919000
Sita Gupta	1260000
Sangita Gupta	500000
Vinod Gupta	1916000
Vinod Gupta (HUF)	100000
Master Varun G Gupta	1060766
Ramesh Kumar	1040000
Arvind Jain	145500
Total	12604200

List of Allotee As on 24.03.2011

Names of Shareholders	No. of Shares
Alankit Assignments Limited, India	200000
Total	200000

Equity Shares Breakup [As on 21.09.2010]

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie’s Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	3.07
Directors or relatives of directors	96.93
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Alloy Steel, Mild Steel and Stainless Steel.

Products :

Products Description	ITC Code No.
Stainless Steel Ingots or Other Primary Forms, Semi Finished Products of Stainless Steel	7218
Alloy Steel Ingots or Other Primary Forms, Semi Finished Products of Alloy Steel	7224
Bars and Rods of Alloy Steels Angles Shapes and Section of Other Alloy Steel Hollow Drill Bat and Rods of Alloy	7228

Other Products :

Semi Finished Steels

-Forging Quality Ingots
-Continuous Cast Blooms / Billets
-Hot Rolled Round Bars
-Hot Rolled Round Cornered Squares (RCS)
-Hexagonal and Sharp Cornered Square Bars
-Hot Rolled Flat Bars
-Hot Rolled Angles

Cold Finished Steels

-Bright Bars [Round / hex / Square]

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity
Ingots	M.T.	Not Applicable	48000.000

Particulars	Unit	Actual Production
Ingots / Billets	M.T.	35959.250
Casting	M.T.	11.160

Note :

• The company’s product being deli censed by the government of India, there is no licensed capacity.
• Installed capacity is as certified by the management and accepted by auditors, being a technical matter

GENERAL INFORMATION

No. of Employees :

205 (In Office 30 and In Factory 175) Approximately

Bankers :

Indian Overseas Bank, Thaltej Branch, Drive-In-Road, Ahmedabad – 380 052, Gujarat, India

Facilities :

Secured Loan [Rs. in million]	31.03.2010	31.03.2009
From a Bank Term Loan	121.922	68.370
Cash Credit and Working Capital Loans [secured by hypothecation of stocks, book debts and by equitable mortgage of fixed assets of the company and guarantee of directors]	488.262	471.687
Total	610.184	540.057
Unsecured Loan [Rs. in million]	27.698	19.190
Total	27.698	19.190

Banking Relations :	--
Auditors :
Name :	H V Vasa and Company Chartered Accountants
Address :	B-2, Usha Kiran, Opposite Khanpur Gate, Khanpur, Ahmedabad – 380 001, Gujarat, India
Tel. No.:	91-79-25502985
Fax No.:	91-79-25503700
E-Mail :	hvvasaco@gmail.com
PAN :	AAGPV2872F
Group Companies :	Parvati Limited 27, Rajasthani, Udyog Nagar, G.T. Karnal Road, Delhi - 110033, India Allied Holdings Private Limited Z-43, Okhla Industrial Area, Phase - 2, New Delhi - 110020, India Ocean Steels Private Limited Plot No. 68 -69, New Ahmedabad Industrial Estate, Village Moraiya, Taluka – Sanand, Ahmedabad - 382220, Gujarat, India Vinayaka Alloys Private Limited B-48E, Sipcot Industrial Complex, Gummidipondi - 601201, Tamilnadu, India Mega Steels Private Limited Plot No. BN-30 to BN-34, CN-104 to CN-111, Massuri Gulawati Road, UPSIDC Industrial Area, Ghaziabad, Uttar Pradesh, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12604200	Equity Shares	Rs.10/- each	Rs.126.042 millions

Note : Out of above 6108383 shares are fully allotted as paid up bonus shares by capitalization of security premium account and general reserve

After 21.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12804200	Equity Shares	Rs.10/- each	Rs.128.042 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		126.042	124.587	124.587
2] Share Application Money		42.500	28.500	38.500
3] Reserves & Surplus		204.401	138.108	86.331
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		372.943	291.195	249.418
LOAN FUNDS
1] Secured Loans		610.184	540.057	586.578
2] Unsecured Loans		27.698	19.190	36.147
TOTAL BORROWING		637.882	559.247	622.725
DEFERRED TAX LIABILITIES		42.335	31.216	22.399
TOTAL		1053.160	881.658	894.542
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		318.237	246.325	225.359
Capital work-in-progress		9.249	9.642	1.455
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	376.349	440.936	416.931
	Sundry Debtors	334.423	240.767	284.239
	Cash & Bank Balances	42.480	8.805	16.182
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	165.995	149.231	160.012
Total Current Assets		919.247	839.739	877.364
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	139.042	163.612
	Other Current Liabilities	36.149	33.505	189.783
	Provisions	18.800	17.558	20.729
Total Current Liabilities		193.991	214.675	210.512
Net Current Assets		725.256	625.064	666.852
MISCELLANEOUS EXPENSES		0.418	0.627	0.876
TOTAL		1053.160	881.658	894.542

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	2061.831	1964.230	1638.842
		Other Income	5.993	4.669	2.127
		TOTAL (A)	2067.824	1968.899	1640.969
Less	EXPENSES
		Purchase and Raw Material Consumed	1380.474	1241.558	1267.442
		Payments and Provisions for Employees	7.269	5.700	4.749
		Manufacturing, Administration and other Expenses	568.370	445.538	347.389
		Increase / [decrease in stock]	[52.593]	119.070	[122.794]
		TOTAL (B)	1903.520	1811.866	1496.786
	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		164.304	157.033	144.183
Less	FINANCIAL EXPENSES (D)		59.244	60.564	48.616
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		105.060	96.469	95.567
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.743	18.659	11.451
	PROFIT / LOSS BEFORE TAX (E-F) (G)		83.317	77.810	84.116
Less	TAX (H)		30.119	26.032	29.695
	PROFIT / LOSS AFTER TAX (G-H) (I)		53.198	51.778	54.421
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		116.334	64.556	62.507
Less	APPROPRIATIONS
	Transfer to General Reserve		-	-	52.372
	BALANCE CARRIED TO THE B/S		169.532	116.334	64.556
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	156.589	215.762	NA
	TOTAL EARNINGS		156.589	215.762	NA
	Earnings Per Share (Rs.)		4.06	4.16	4.45

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.57	2.63	3.32
Net Profit Margin (PBT/Sales)	(%)	4.04	3.96	5.13
Return on Total Assets (PBT/Total Assets}	(%)	6.73	7.16	7.63
Return on Investment (ROI) (PBT/Networth)		0.22	0.27	0.34
Debt Equity Ratio (Total Liability/Networth)		2.23	2.66	3.34
Current Ratio (Current Asset/Current Liability)		4.74	3.91	4.17

LOCAL AGENCY FURTHER INFORMATION

Note : The concern person has declined to give any information.

Contingent Liabilities : As on 31.03.2010

Contingent Liabilities and Capital Commitments are not provided for in respect of :-

• Estimated amount of contract remaining to be executed on capital account Rs.72.823 millions (Previous year – Rs.Nil).
• In respect of demand from Sales Tax Rs.0.553 million (Previous Year Rs.0.467 million) against which the company has preferred appeal before higher authorities.

FORM 8

Corporate identity number of the company	U27100GJ1999PLC036413
Name of the company	LAXCON STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabd – 382 220, Gujarat, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80012130
Type of charge	· Book debts · Movable Property (not being pledge) · Others
Particular of charge holder	Indian Overseas Bank Thaltej Branch, Drive-In-Road, Ahmedabad – 380 052, Gujarat, India
Nature of instrument creating charge	Letter of Hypothecation dated 25.02.2011
Date of instrument Creating the charge	25.02.2011
Amount secured by the charge	Rs.1049.900 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Base Rate + 3% for Cash Credit BPLR – 1.25% for Term Loans Terms of repayment - As per Sanction Letter Margin - As per Sanction Letter Extent and operation of the charge - As per Sanction Letter Others - As per Sanction Letter
Particulars of the property charged	Stock of Raw Material, semi finished goods and finished goods and materials used in manufacturing process of the company Book Debts, Packing Materials, first charge on the block of assets of the company located at Plot No. 235, Sarkhej Bavla Road, Village Sari, Taluka Sanand, District Ahmedabad-382220
Date of last modification prior to the present modification	04.11.2009
Particulars of the present modification	Credit Facilities Enhanced from Rs. 789.900 millions to 1049.900 millions. Details : TL-I Rs. 72.400 Millions TL-II Rs. 38.500 Millions TL-III Rs. 149.000 Millions LCUBD Rs. 30.000 Millions Cash Credit Enhanced to Rs. 400.000 Millions LC (Inland/Foreign) Enhanced to Rs. 300.000 Millions. LG Favoring Electricity Companies Rs. 60.000 Millions.

Form No. 8

Name of the company	LAXCON STEELS LIMITED
Presented By	Shri Gopal Gupta, Director, for and on behalf of Laxcon Steels Private Limited
1) Date and description of instrument creating the change	Memorandum of Deposit of Title Deeds dared 21^st day of November, 2002
2) Amount secured by the charge/amount owing on the securities of charge	Rs.17.500 millions
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	Non Agricultural land bearing Survey No. 235/ paiki, Admeasuring about 17601 Sq. Mtrs. Situated / lying / being at mouje L sari, Taluka, Sanand Registration District Ahmedabad and Sub-district : Sanand
4) Gist of the terms and conditions and extent and operation of the charge.	The property described in Serial No. 3 above is given as collateral Security to Secure following Credit facilities viz. Cash Credit : Hypothecation Stock Rs.7.500 millions Cash Credit : Hypothecation Book Debts Rs.5.000 millions Letter of Credit (Foreign) DP – Rs.5.000 millions Total Credit : Rs.17.500 millions For Letter of Credit As per FFDAI Rules. Payable on Demand.
5) Name and Address and description of the person entitled to the charge.	Indian Overseas Bank Thaltej Branch, Drive-In-Road, Ahmedabad – 380 052, Gujarat, India
6) Date and brief description of instrument modifying the charge	Memorandum of Deposit of Title Deed dated 21^st April, 2005.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The Bank has enhanced the various Credit facilities granted to the Company as follows: J.A. fresh Term Loan of Rs.38.500 millions has been Sanctioned. Cash Credit (Hypothecation of Stocks and Book debts) has been enhanced from Rs.50.000 millions to Rs.100.000 millions (Cash Credit limit up to Rs.100.000 millions interchangeable as working Capital foreign Currency Loan at a pricing of 6 months LiBOR + 4.5% subject to availability of fund. Letter of Credit (foreign) enhanced from Rs.25.000 millions to Rs.50.000 millions) and Sub-limit of Letter of guarantee Financial performance of Rs.50.000 millions. Existing Interchangeability between (CC and LC facilities within the overall sanctioned limit of Rs.150.000 millions will be continued.) As such the overall Credit facilities has been enhanced from Rs.113.500 millions to Rs.118.500 millions. All other terms and conditions including Security to the offered will remain the same.

FORM 8

Corporate identity number of the company	U27100GJ1999PLC036413
Name of the company	LAXCON STEELS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 235, Sarkhej Bavla, N H 8A, Village Sari, Taluka Sanand District Ahmedabd – 382 220, Gujarat, India
This form is for	Modification of charge
Type of charge	· Book debts · Movable property (not being pledge) · Others
Particular of charge holder	Indian Overseas Bank Thaltej Branch, Drive-In-Road, Ahmedabad – 380 052, Gujarat, India
Nature of instrument creating charge	Letter of Hypothecation dated 03.09.2007
Date of instrument Creating the charge	03.09.2007
Amount secured by the charge	Rs.405.900 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13.25% as per Sanction Letter Terms of repayment As per Sanction Letter Margin As per Sanction Letter Extent and operation of the charge As per Sanction Letter Others As per Sanction Letter
Particulars of the property charged	Stock of Raw Material, semi finished goods and finished goods and all Machineries located at Plot No. 235, Sarkhej Bavla, N H 8A, TA-Sanand, District Ahmedabad, Gujarat, India]
Particulars of the present modification	The limit increased to Rs.405.900 millions

FIXED ASSETS :

• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Computer
• Office Equipments
• 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.49.17
UK Pound	1	Rs.77.49
Euro	1	Rs.67.96

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	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		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.