MIRA INFORM REPORT

Report Date :

24.10.2011

IDENTIFICATION DETAILS

Name :	N K PROTEINS LIMITED (w.e.f 19.02.1993)
Formerly Known As :	MARUTI PROTEINS LIMITED
Registered Office :	7^th Floor, Popular House, Ashram Road, Ahmedabad-380009, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.03.1992
Com. Reg. No.:	04-017403
Paid-up Capital :	Rs. 64.695 Millions
CIN No.: [Company Identification No.]	U25499GJ1992PLC017403
TAN No.: [Tax Deduction & Collection Account No.]	AHMN00125G
PAN No.: [Permanent Account No.]	AAACN9377N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the refining of all types of edible oil i.e cottonseed, corn, soyabean, groundnut, maize, palm, palmoen and sunflower, Company also deals in non-edible oil products like castorseed and other product served from crushing of castorseed.
No. of Employees :	700 (In Office) [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 2369000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported on 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)
India	A1	A1

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

LOCATIONS

Registered Office :	7^th Floor, Popular House, Ashram Road, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-66309999
Fax No.:	91-79-66309913/ 66309907
E-Mail :	nkil@nkproteins.com nkpl@icenet.net manishkella@nkproteins.com
Website :	http://www.nkproteins.com
Location :	Owned (owned by one of the sister concern company)
Factory 1 :	Plot No. 880, Kadi-Thor Road, Symphony Factory Thor, Kadi, Mehsana, Gujarat, India
Tel. No.:	91-2764-274247 to 249
E-Mail :	info@nkproteins.com

DIRECTORS

As On 30.09.2010

Name :

Mr. Nilesh Keshvlal Patel

Designation :

Chairman and Managing Director

Address :

13/B, Dariapur Patel Society, Usmanpura, Ahmedabad-380013, Gujarat, India

Date of Birth/Age :

23.03.1965

Qualification :

Graduation

Experience :

18 Years

Date of Appointment :

11.01.1996

DIN No. :

00244115

Other Directorship:

Top of Form S.No. Bottom of Form	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	L91110GJ1987PLC009905	N K Industries Limited	Managing director	01-04-08	19-08-87	Active	NO
2	U24231GJ1992PLC017406	N K Flour Mills Limited	Director	27-03-92	27-03-92	Active	NO
3	U45201GJ1994PTC022671	N K Infraventures Private Limited	Director	03-08-94	03-08-94	Active	NO
4	U63090GJ1994PTC022670	N K Roadways Private Limited	Director	03-08-94	03-08-94	Active	NO
5	U25499GJ1992PLC017403	N K Proteins Limited	Managing director	01-03-09	15-05-95	Active	NO

Name :

Mr. Kamlesh Lalbhai Patel

Designation :

Whole Time Director

Address :

6, Devansh Bunglows, Thaltesj, Ahmedabad-380054, Gujarat, India

Date of Birth/Age :

01.05.1960

Date of Appointment :

01.03.1994

DIN No. :

00244798

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	U24231GJ1992PLC017406	N K Flour Mills Limited	Director	01-03-94	01-03-94	Active	NO
2	U25499GJ1992PLC017403	N K Proteins Limited	Whole-time director	01-10-07	01-03-94	Active	NO
3	U15201GJ1994PTC022669	N K Oil Mills Private Limited	Director	03-08-94	03-08-94	Active	NO
4	U45201GJ1994PTC022671	N K Infraventures Private Limited	Director	01-12-96	01-12-96	Active	NO
5	U63090GJ1994PTC022670	N K Roadways Private Limited	Director	01-04-97	01-04-97	Active	NO

Name :

Mr. Nimishbhai Keshvlal Patel

Designation :

Managing Director

Address :

41, Ashwamegh Bunglow, Scheme No. 3, Satellite, Ahmedabad-3800015, Gujarat, India

Date of Birth/Age :

19.11.1960

Qualification :

Graduation

Experience :

18 Years

Date of Appointment :

15.05.1995

DIN No. :

00240621

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	L91110GJ1987PLC009905	N K Industries Limited	Managing director	01-04-08	19-08-87	-	Active	NO
2	U24231GJ1992PLC017406	N K Flour Mills Limited	Director	27-03-92	27-03-92	-	Active	NO
3	U15201GJ1994PTC022669	N K Oil Mills Private Limited	Director	03-08-94	03-08-94	-	Active	NO
4	U25499GJ1992PLC017403	N K Proteins Limited	Managing director	01-03-09	11-01-96	-	Active	NO
5	U63090GJ1994PTC022670	N K Roadways Private Limited	Director	24-03-98	24-03-98	-	Active	NO
6	U67100GJ1956PLC000597	Ace Derivatives And Commodity Exchange Limited	Additional director	29-09-08	03-10-06	15-06-09	Active	NO
7	U91110MH1971NPL015233	The Solvent Extractors Association Of India	Director	24-09-10	24-09-10	-	Active	NO

Name :

Mr. Jayesh Pannalal Choksi

Designation :

Vice Chairman

Address :

Siddhi Priya JV and D Scheme, Vile Parle (West), Mumbai-400056, Maharashtra, India

Date of Birth/Age :

29.03.1954

Date of Appointment :

16.06.2001

DIN No. :

00001729

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	U24110GJ1971PTC001867	Gufic Private Limited	Director	07-03-73	07-03-73	-	Active	NO
2	U24230GJ1973PTC002258	Jal Private Limited	Director	12-04-73	12-04-73	-	Active	NO
3	U02411KA1983PTC005543	Gufic Chem Private Limited	Director	10-08-84	10-08-84	-	Active In Progress	NO
4	U65910MH1986PTC038905	Zircon Finance And Leasing Private Limited	Director	01-11-96	01-11-96	-	Active	NO
5	U45400MH1997PLC108818	Gufic Health Care Limited	Director	16-06-97	16-06-97	-	Active	NO
6	L65990MH1901PLC033519	Gufic Biosciences Limited	Managing director	01-04-10	31-08-99	-	Active	NO
7	U51900MH1999PTC123250	United Marketing And Realtors Private Limited	Director	23-12-99	23-12-99	-	Active	NO
8	U25499GJ1992PLC017403	N K Proteins Limited	Director	16-06-01	16-06-01	-	Active	NO
9	U24110MH2007PTC167101	Gufic Stridden Bio-Pharma Private Limited	Director	27-01-07	27-01-07	-	Active	NO
10	U55101MH2008PTC186747	Motif Hotels Private Limited	Director	15-09-08	15-09-08	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Manish Purushottamdas Kella
Designation :	Company Secretary
Address :	6, Aditya Apartment, 20 Jaihind Society, Ranbaug, Maninagar, Ahmedabad – 380008, Gujarat, India
Date of Birth/Age :	17.09.1971
Date of Appointment :	01.03.2010
DIN No. :	ADPPK8989E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders	No. of Shares
Sonalben N Patel Jointly with Ashitaben N Patel	3503085
Ashitaben N Patel	238655
Sonalben N Pael	230365
Priyanshi N. Patel	138250
Venushri N. Patel	137770
Vedanshri N. Patel	136720
Priyam N. Patel	136010
K. V. Patel HUF	16500
Nimishbhai K. Patel	134550
Nileshbhai K. Patel	134550
Jayesh P. Choksi	1167375
Pranav J. Choksi	150000
Gomtiben K. Patel	13000
Kamlesh L. Patel	10100
Gomtiben K. Patel	5000
Gomtiben K. Patel	5000
Anant B. Patel	3500
Rekhaben A. Patel	3500
Lalbhai S. Patel	2400
Truptiben K. Patel	1750
Jashmatiben K. Patel	900
Vaishnavi D. Patel	220
Rajvi M. Todi	100
Darshanbhai B. Patel	100
Baldevbhai R. Patel	100
Zircon Fin. and Leasing Private Limited – India	150000
Gufic Limited – India	150000
Total	6469500

As On 30.09.2010

Equity Shares Break Up	Percentage of Holding
Bodies corporate (not mentioned above)	4.64
Directors or relatives of directors	74.29
Other top fifty (50) shareholders (other than listed above)	21.07
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the refining of all types of edible oil i.e cottonseed, corn, soyabean, groundnut, maize, palm, palmoen and sunflower, Company also deals in non-edible oil products like castorseed and other product served from crushing of castorseed.
Brand Names :	“TIRUPATI”

GENERAL INFORMATION

No. of Employees :

700 (In Office) [Approximately]

Bankers :

• The Kalupur Commercial Co-Operative Bank Limited, Kalupur Bank Bhavan, Ashram Road, Ahmedabad-380009, Gujarat, India
• ICICI Bank Limited
• HDFC Bank Limited
• Standard Chartered Bank

Facilities :

Fund Base: Rs. 600.000 Millions (They have requested Bank for Non Fund Base Facility)

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Working Capital Loan from a Bank
- Export Packing Credit (Secured by hypothecation of stock and book debts)	47.500	0.000
Vehicle Loans from
- ICICI Bank Limited	16.516	25.827
- Citi Corporation Finance	0.538	2.033
- GE Capital TFS Limited	0.444	1.427
- HDFC Bank Limited	0.356	0.558
- Standard Chartered Bank	0.000	0.052
- Kotak Mahindra Prime Limited	4.151	0.000
Reliance Capital Limited	5.120	0.000
- Surdaram Finance Limited (Secured by hypothecation of respective vehicle purchased against loans)	43.574	0.000
Total	118.199	29.897
Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Loans from Bodies Corporates	36.155	55.307
Deposit
From Directors	6.928	0.000
From Shareholders [Due within one year Rs. Nil (previous year Rs. Nil)]	3.977	4.831
From Others [Due within one year Rs. Nil (previous year Rs. Nil)]	87.299	63.605
Interest accrued and due	2.098	0.000
Total	136.457	123.743

* Specific data is not disclosed as deposits are agreed to be repayable on demand

Banking Relations :	--
Financial Institute:	Sundaram Finance Limited, No. 21, Patullos Road, Chennai-600002, Tamilnadu, India
Auditors :
Name :	S V Ghatalia and Associates Chartered Accountants
Address :	2^nd Floor, Shivalik Ishaan, Near CN Vidhyalaya, Ambawadi, Ahemedabad-380015, Gujarat, India
Pan No. :	AACFS6921Q
Associates/Subsidiaries :	· N.K. Industries Limited · N.K. Roadways Private Limited · Shanti Stock Holdings Private Limited · N.K. Estate Developers Private Limited · N.K Oil Mills Private Limited · N.K. Corporation, Partnership · N.K. Aviation · N.K. Flour Mills Limited · Tirupati Proteins Private Limited · Tirupati Retails India Private Limited · Adrenal Advertising and Promotions Private Limited · Gufic Broscience 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
6469500	Equity Shares	Rs.10/- each	Rs.64.695 Millions

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		64.695	64.695	64.695
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		527.546	425.596	353.206
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		592.241	490.291	417.901
LOAN FUNDS
1] Secured Loans		118.199	29.897	20.898
2] Unsecured Loans		136.457	123.743	76.262
TOTAL BORROWING		254.656	153.640	97.160
DEFERRED TAX LIABILITIES		0.000	0.000	11.715
TOTAL		846.897	643.931	526.776
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		289.281	196.224	155.268
Capital work-in-progress		19.345	65.238	43.349
INVESTMENT		4.119	1.843	0.058
DEFERREX TAX ASSETS		3.036	6.229	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1148.246	402.679	202.066
	Sundry Debtors	321.437	481.648	315.669
	Cash & Bank Balances	359.423	71.792	61.141
	Other Current Assets	155.806	57.374	0.000
	Loans & Advances	388.813	177.108	178.890
Total Current Assets		2373.725	1190.601	757.766
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1600.316	623.068	357.649
	Other Current Liabilities	131.604	36.674	21.913
	Provisions	110.689	156.462	50.103
Total Current Liabilities		1842.609	816.204	429.665
Net Current Assets		531.116	374.397	328.101
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		846.897	643.931	526.776

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	14510.219	14091.968	13100.411
		Other Income	370.127	147.747	50.050
		TOTAL (A)	14880.346	14239.715	13150.461
Less	EXPENSES
		Purchase of Trading Goods	6758.568	1687.001	894.788
		Raw Material Consumed	7203.183	11717.152	11634.793
		Manufacturing Expenses	178.732	271.794	297.812
		Personnel Expenses	63.389	47.989	28.698
		Administrative and Selling Expenses	382.772	290.473	179.147
		Prior Period Expenses	2.336	13.410	0.977
		TOTAL (B)	14588.980	14027.819	13036.215
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		291.366	211.896	114.246
Less	FINANCIAL EXPENSES (D)		85.499	46.485	14.467
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		205.867	165.411	99.779
Less/ Add	DEPRECIATION/ AMORTISATION (F)		40.724	30.493	32.904
	PROFIT BEFORE TAX (E-F) (G)		165.143	134.918	66.875
Less	TAX (H)		63.193	62.528	26.870
	PROFIT AFTER TAX (G-H) (I)		101.950	72.390	40.005
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		262.960	190.570	150.565
	BALANCE CARRIED TO THE B/S		364.910	262.960	190.570
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3926.978	82.381	55.552
	TOTAL EARNINGS		3926.978	82.381	55.552
	IMPORTS
		Raw Materials	810.047	3.617	--
	TOTAL IMPORTS		810.047	3.617	--
	Earnings Per Share (Rs.)		15.76	11.19	6.18

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.68	0.51	0.30
Net Profit Margin (PBT/Sales)	(%)	1.14	0.96	0.51
Return on Total Assets (PBT/Total Assets}	(%)	6.20	9.73	7.28
Return on Investment (ROI) (PBT/Networth)		0.28	0.28	0.16
Debt Equity Ratio (Total Liability/Networth)		3.54	1.98	1.26
Current Ratio (Current Asset/Current Liability)		1.29	1.46	1.76

LOCAL AGENCY FURTHER INFORMATION

NATURE OF OPERATIONS:

Subject is mainly engaged in the refining of all types of edible oil i.e cottonseed, corn, soyabean, groundnut, maize, palm, palmoen and sunflower, Company also deals in non-edible oil products like castorseed and other product served from crushing of castorseed.

Operations:

During the year, turnover is increased to Rs.14510.200 millions compared to Rs.14092.000 millions during 2008-09 showing an increase of 2.97 % over the previous year. Although there were volatile price fluctuation and lot of competition both in edible and non-edible business, the Company could increase its profit after providing depreciation and income tax to Rs.102.000 millions from Rs.72.400 millions showing an increase of 40.88 %. Once the need-based working funds are available from the banking channel, the Company can achieve a substantial growth and also profit.

Contingent Liabilities not provided for:

Rs. In Millions

	31.03.2010	31.03.2009
a) Outstanding Bank Guarantees given by the company to various government authorities	--	0.489
b) Claims agasint the company not acknowledged as debts
i) Sales tax	0.759	482.197
ii) Others	63.334	63.334

Excluding penalty of Rs. 801.965 millions

ii) Others include claims leived by following parties:

a) Towards non-payment of storage charges of Rs. 26.104 millions (previous year Rs. 26.104 millions) as per civil suit filed on 20.09.1999, in respect of goods stored at Mumbai, by Mahendra N. Patel, Western India Oil Distributing Company and Naranbhai P. Patel India Private Limited. The management that there has been no hearing in the matter since the suit was filed.

b) Towards non-payment of short term advances granted of Rs. 8.769 millions (previous year Rs. 8.269 millions) by Indosal Chemical Corporation Private Limited as per civil suit filed on 20.09.1999. The management represents that there has been no hearing in the matter since the suits was filed.

c) Towards claims of Rs. 28.461 millions (previous year Rs. 28.461 millions) from Visnagar Nagrik Sahakari Bank Limited as per notice dated 18.11.2003 received by the company. The company is in the process of setting dues with the bank however, since the bank is under liquidation, the claims have not got acknowledged by the bank.

Form 8

Corporate identity number of the company	U25499GJ1992PLC017403
Name of the company	N K PROTEINS LIMITED
Address of the registered office or of the principal place of business in India of the company	7^th Floor, Popular House, Ashram Road, Ahmedabad-380009, Gujarat, India
This form is for	Modification of Charge
Charge identification number of the charge to be modified	10168774
Type of charge	Immovable Property
Particular of charge holder	The Kalupur Commercial Co-Operative Bank Limited, Kalupur Bank Bhavan, Ashram Road, Ahmedabad-380009, Gujarat, India E-mail: pjpatel.ho@kalupurbank.com
Nature of instrument creating charge	Article of Agreement for Credit Facilities Against Hypothecation of Machinery as Collateral Security
Date of instrument Creating the charge	26.06.2010
Amount secured by the charge	Rs. 500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Prescribed by the Bank with Monthly Rest Terms of Repayment Subject to Renewal From time to time Margin As may be stipulated by the bank form time to time Extent and Operation of the charge Exclusive charge in favour of The Kalupur Commercial Co-Operative Bank Limited
Particulars of the property charged	All the machineries lying in or about the factory premises at plot no. 880 Kadi Thor Road, Village Thor, Ta. Kadi, District Mehsana
Date of instrument modifying the charge	10.05.2010
Particulars of the present modification	Financial assistance to the extent of Rs. 500.000 millions provided by Kalupur Commercial Co-Operative Bank also secured by hypothecation of machinery as collateral security

FIXED ASSETS:

· Freehold Land

· Factory Building

· Office Building

· Plant and Machinery

· Windmill

· Electric Installations

· Furniture and Fixtures

· Office Equipments

· Computers

· Factory Equipments

· Vehicles

· Telephone Installations

· Computer Software

WEBSITE DETAILS

COMPANY PROFILE

Subject was originally incorporated on 27.03.92 in the name of Maruti Proteins Limited. The name of the company was changed to N K Proteins Limited w.e.f 19-02-1993 which is an existing profit making Company, promoted by Shri Nimish K Patel & Shri Nilesh K Patel.

India’s first edible oil company to get accreditation of Food Safety Quality Management Certification of
ISO 22000:5000.

Subject is currently engaged in the business of Refining edible oils viz, Cotton Seed Oil, Palmoilen, Sunflower Oil, Groundnut Oil and Vegetable Oils including seed processing and solvent extraction and trading in edible / non - edible oils.

The promoters started this business in 1992 and have come a long way in establishing the fortune of the N K Group in the past 18 years. The promoters are successfully running the existing business which has a capacity of 450 M.T per day of refining.

Subject markets edible oils under the brand name of “TIRUPATI” which is distributed and sold through the wholesale and retail chain of domestic market. NKPL also supplies refined edible oils to the Government Organization on a regular basis.

Subject is accorded the status of STAR EXPORT HOUSE and is exporting Castor Oil, its derivatives and De-oiled cakes to various countries worldwide.

The present operations of the Company may be broadly categorized under four heads:

· Manufacturing ( Refining )

· Marketing

· Trading

· Exports

The Company, for its trading operations, sources from domestic / international market various vegetable oils in either crude or refined form and sells them either directly or through brokers.

Purchases are made at competitive rates and procured either directly or through brokers. As regards raw materials the Company buys Wash Cottonseed Oil, and Castor seeds from local market and purchases Crude Palm and Soya oil and Sunflower Oil on high seas basis. These are sold in the domestic market after crushing, extraction, and refining or through direct trading. Purchases are made at competitive rates.

Exports are made to various countries worldwide.

MANAGEMENT

Mr. Nimish Patel

Chairman and Managing Director

Has over 25 years of experience in castor oil and edible oil business. He is a visionary and provides direction to the company. He has been instrumental in the company’s growth and is aggressive in his policies and strategies. Apart from the above, he looks after marketing, both domestic and overseas, as well as the finances of companies under the flagship of N K Group of Companies.

Mr. Nilesh Patel

Managing Director

Has over two decades of experience in castor oil and edible oil business. With his in depth knowledge of the market and the analysis based on it, he has developed expertise in the areas of material procurement and marketing. He also looks into the financial aspects of N K Group of Companies.

Mr. Kamlesh Patel

Executive Director

B.E. Electrical. Has over two decades of experience in the field of production of all types of edible oil. He is also responsible for the overall administration and technical operations of the manufacturing unit.

Mr. Jayesh P.Choksi

Vice Chairman

Has over two decades of experience in the field of manufacturing.

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.50.06
UK Pound	1	Rs.79.15
Euro	1	Rs.69.03

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	NO
--AFFILIATION	YES/NO	YES
--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.