MIRA INFORM REPORT

Report Date :

12.09.2011

IDENTIFICATION DETAILS

Name :	M K U PRIVATE LIMITED
Registered Office :	13, Gandhi Gram G T Road, Kanpur-208001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.05.2001
Com. Reg. No.:	20-026027
Capital Investment / Paid-up Capital :	Rs.73.880 Millions
CIN No.: [Company Identification No.]	U19202UP2001PTC026027
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Personal Protection and Defense Equipment.
No. of Employees :	Not Available

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 2130000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject 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.

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

LOCATIONS

Registered / Head Office :	13, Gandhi Gram, G T Road, Kanpur-208001, Uttar Pradesh, India
Tel. No.:	91-512-3026700
Fax No.:	91-512-3026799
E-Mail :	kn.shridhar@yahooo.co.in sales-intl@mku.com
Website :	www.mku.com
Branch Office:	D-20, 1^st Floor Defense Colony, New Delhi-110024, India
Tel. No.:	91-11-46543512
Fax No.:	91-11-46543514
E-Mail :	sales-intl@mku.com
UAV Division :	H-52, First Floor, Sector – 63, Noida – 201 301, Uttar Pradesh, India
Tel. No.:	91-120-4548600
Fax No.:	91-120-4548605
E-Mail :	info.uav@mku.com
International offices:	Located At: · Singapore · United Arab Emirates · Germany · Europe · North America · Latin America

DIRECTORS

As on 29.09.2009

Name :

Mr. Manoj Gupta

Designation :

Director

Address :

13, Gandhi Gram, G.T. Road, Kanpur- 208007, Uttar Pradesh, India

Date of Birth :

1.02.1968

Date of Appointment :

04.05.2001

DIN :

01054595

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	Date of cessation	Company Status	Defaulting status
1	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	4/5/2001	4/5/2001	-	Active	NO
2	U28993UP2006PTC031284	CONCORD SAFETY SOLUTIONS PRIVATE LIMITED	Director	31/01/2006	31/01/2006	25/11/2010	Active	NO
3	U45200UP2007PTC032899	ISHWAR COLONISERS PRIVATE LIMITED	Director	22/02/2007	22/02/2007	-	Active	NO
4	U19100UP2007PTC032980	ARP FOOTWEARS PRIVATE LIMITED	Director	9/3/2007	9/3/2007	13/06/2011	Active	NO
5	U45206UP1991PTC013046	ART INFRA SOLUTIONS PRIVATE LIMITED	Director	1/7/2008	1/7/2008	-	Active	NO
6	U26941UP1991PTC013611	TIRUPATI EQUIPMENTS PRIVATE LIMITED	Additional director	12/11/2010	12/11/2010	-	Active	NO

Name :

Mrs. Kiran Gupta

Designation :

Director

Address :

13, Gandhi Gram, G.T. Road, Kanpur- 208007, Uttar Pradesh, India

Date of Birth :

01.07.1951

Date of Appointment :

04.05.2001

DIN :

00768878

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	Date of cessation	Company Status	Defaulting status
1	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	4/5/2001	4/5/2001	2/7/2011	Active	NO

Name :

Mr. Neeraj Gupta

Designation :

Director

Address :

13, Gandhi Gram, G.T. Road, Kanpur- 208007, Uttar Pradesh, India

Date of Birth :

08.11.1970

Date of Appointment :

20.09.2007

DIN :

01054659

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	Date of cessation	Company Status	Defaulting status
1	U45206UP1991PTC013046	ART INFRA SOLUTIONS PRIVATE LIMITED	Director	15/04/1991	15/04/1991	1/9/2010	Active	NO
2	U24131UP1996PTC021001	M K U ARMORS PRIVATE LIMITED	Director	12/2/2004	12/2/2004	-	Active	NO
3	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Managing director	30/10/2010	20/09/2007	-	Active	NO
4	U91110UP1932NPL000467	MERCHANT CHAMBER OF UTTAR PRADESH	Director	4/10/2010	4/10/2010	-	Active	NO
5	U28993UP2006PTC031284	CONCORD SAFETY SOLUTIONS PRIVATE LIMITED	Director	11/11/2010	11/11/2010	-	Active	NO

Name :

Mr. Gopal Gupta

Designation :

Director

Address :

13, Gandhi Gram, G.T. Road, Kanpur- 208007, Uttar Pradesh, India

Date of Birth :

13.10.1946

Date of Appointment :

20.03.2008

DIN :

01054515

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	U17120UP1995PTC018494	A. R. POLYMERS PRIVATE LIMITED	Director	27/06/2011	2/8/1995	-	Active	NO
2	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	20/03/2008	20/03/2008	2/7/2011	Active	NO
3	U19100UP2007PTC032980	ARP FOOTWEARS PRIVATE LIMITED	Director	20/04/2011	20/04/2011	-	Active	NO

Name :

Mr. Raj Kumar Khandelwal

Designation :

Director

Address :

78, Gandhi Gram, G.T. Road, Kanpur- 208007, Uttar Pradesh, India

Date of Birth:

12.07.1946

Date of Appointment :

01.11.2003

DIN :

00769140

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	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	1/11/2003	1/11/2003	2/7/2011	Active	NO

Name :

Mr. Sumit Khandelwal

Designation :

Director

Address :

78, Gandhi Gram, G.T. Road, Kanpur- 208007, Uttar Pradesh, India

Date of Birth :

23.08.1975

Date of Appointment :

22.05.2003

DIN :

00769177

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	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	22/05/2003	22/05/2003	Active	NO
2	U74991UP2007PTC032798	MKU WAREHOUSING COMPANY PRIVATE LIMITED	Director	5/2/2007	5/2/2007	Active	NO
3	U28993UP2006PTC031284	CONCORD SAFETY SOLUTIONS PRIVATE LIMITED	Director	11/11/2010	11/11/2010	Active	NO

Name :

Mr. Anurag Gupta

Designation :

Director

Address :

13, Gandhi Gram, G.T. Road, Kanpur- 208007, Uttar Pradesh, India

Date of Birth:

31.12.1973

Date of Appointment :

01.11.2003

DIN :

01054777

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	U26941UP1991PTC013611	TIRUPATI EQUIPMENTS PRIVATE LIMITED	Director	26/12/2000	26/12/2000	12/11/2010	Active	NO
2	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	1/11/2003	1/11/2003	2/7/2011	Active	NO
3	U28993UP2006PTC031284	CONCORD SAFETY SOLUTIONS PRIVATE LIMITED	Director	26/02/2008	26/02/2008	25/11/2010	Active	NO
4	U17120UP1995PTC018494	A. R. POLYMERS PRIVATE LIMITED	Managing director	27/06/2011	12/11/2009	-	Active	NO
5	U19100UP2007PTC032980	ARP FOOTWEARS PRIVATE LIMITED	Director	20/04/2011	20/04/2011	-	Active	NO

Name :

Mr. Saurabh Gupta

Designation :

Director

Address :

117/H-10298,Model Town, Pandu Nagar

Date of Birth :

06.07.1976

Date of Appointment :

17.06.2005

DIN :

01054891

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	U45206UP1991PTC013046	ART INFRA SOLUTIONS PRIVATE LIMITED	Director	17/12/2009	18/06/1999	-	Active	NO
2	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	17/06/2005	17/06/2005	2/7/2011	Active	NO
3	U45200UP2007PTC032899	ISHWAR COLONISERS PRIVATE LIMITED	Director	22/02/2007	22/02/2007	-	Active	NO

Name :

Mr. Ajai Bhatnagar

Designation :

Director

Address :

7/109, Swaroop Nagar, Kanpur- 208002, Uttar Pradesh, India

Date of Birth :

27.09.0964

Date of Appointment :

06.08.2007

DIN :

01709845

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	U25202MH2004PTC145548	Sellowrap Industries Private Limited	Director	1/8/2005	1/8/2005	1/4/2008	Active	NO
2	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	6/8/2007	6/8/2007	2/7/2011	Active	NO

Name :

Mr. Sandeep Kumar

Designation :

Director

Address :

A-3/110/1,Rohini Sector-7,Delhi-110085, New Delhi, India

Date of Birth :

11.03.1971

Date of Appointment :

19.01.2009

DIN :

02511114

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	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Nominee director	19/01/2009	19/01/2009	Active	NO
2	L40200DL1968PLC005169	SOMANY CERAMICS LIMITED	Nominee director	10/8/2010	10/8/2010	Active	NO

KEY EXECUTIVES

Name :	Ms. Manishi Tandon
Designation :	Company Secretary
Address :	137,’A’, Block Shyam Nagar, Kanpur-208013, Uttar Pradesh, India
Date of Birth :	12.11.1984
Date of Appointment :	13.04.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2009

Names of Shareholders	No. of Shares	Percentage of Holding
Manoj Gupta	1085000	14.68
Kiran Gupta	965900	13.07
Neeraj Gupta	145000	1.96
Gopal Gupta	526000	7.1
Raj Khandelwal	205000	2.77
Sumit Khandelwal	15000	0.20
Supriya Gupta	445000	6.03
Karan Gupta	5500	0.07
Manna Lal Gupta HUF	430500	5.83
Shanty Khandelawal	64000	0.87
Prachi Gupta	4500	0.06
Prerna Gupta	10000	0.13
Sidhratha Gupta	5500	0.07
Shrishti Gupta	6500	0.09
Gopal Krishna Gupta	200000	2.71
Anurag Gupta HUF	50000	0.67
Anurag Gupta	600	0.06
MKU Armors Private Limited	3224023	43.63
Total	7388023	100.00

As on 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Personal Protection and Defence Equipment.

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Knee Boot	Pairs	NA	2 Lacs	6355
Boot Combat	Pairs	NA	2 Lacs	24220
Shoes Canvas	Pairs	NA	6 Lacs	68685
Helmet	Numbers	NA	4 Lacs	50422
Plats	Numbers	NA	NA	27612
Web Equipment	Sets	NA	40000	27164
Bullet proof Jacket	Numbers	NA	NA	7178
W.Guard Rail	Numbers	NA	NA	20796
Tent	Sets	NA	15000	803

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Canara Bank, Overseas branch, Civil Lines, Kanpur-20800, Uttar Pradesh, India.

• Export-Import Bank of India, Central One Building, Floor-21, World Trade Centre, Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Facilities :

Secured Loan	31.03.2010 Rs. In Million	31.03.2009 Rs. In Million
Working capital from Bank (The working capital facilities from banks are secured by first charge on current assets of the company both present and future and shall inclusive raw materials, general stores and spares, goods in process, finished goods, book and other movable assets, plant and machinery.)	361.888	239.077
Term Loan from Banks ( The above term loan are secured by paripassu first charge created to be croaled on alt immovable and movable properties of the company both present and future subject to prior charges created / to be created in favour of the company’s bankers to secure borrowings for working capital	83.009	100.390
Vehicle Loans from Financial Institutions (Secured against hypothecation of car/bus) The above Loans and Advances are also gauranted by the directors in their personal guarantee.	2.488	3.323
Total	447.385	342.790

Banking Relations :
Auditors :
Name :	Birla and Chand Chartered Accountants
Address :	13-392, Neelkhand, Civil Lines, Kanpur-208 001, Uttar Pradesh, India
Associates/Subsidiaries :	A.R. Theromsets Private Limited A.R. Polymers Private Limited Concord Safety Solutions Private Limited MKU Warehousing Private Limited Ishwar Colonisers Private Limited MKU Aerobot Private Limited MKU GmbH, Germany (A 100% Subsidiary company) MKU Armors Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8,000,000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,388,023	Equity Shares	Rs.10/- each	Rs.73.880 Millions

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8,000,000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.75.193 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		73.880	73.880	73.880
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		460.651	410.115	238.246
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		534.531	483.995	312.126
LOAN FUNDS
1] Secured Loans		447.385	342.790	548.703
2] Unsecured Loans		31.590	7.631	26.213
TOTAL BORROWING		478.975	350.421	574.916
DEFERRED TAX LIABILITIES		5.422	6.572	3.890
TOTAL		1018.928	840.988	890.932
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		266.938	257.415	222.534
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		87.767	49.276	0.055
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	392.581	404.489	184.598
	Sundry Debtors	266.645	259.682	394.648
	Cash & Bank Balances	9.481	25.568	22.422
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	250.212	233.181	259.226
Total Current Assets		918.919	922.920	860. 894
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	269.171	327.815	157.886
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	23.538	83.393	41.355
Total Current Liabilities		292.709	411.208	199.241
Net Current Assets		626.210	511.712	661.653
MISCELLANEOUS EXPENSES		38.013	22.585	6.690
TOTAL		1018.928	840.988	890.932

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1041.558	1425.292	1136.862
		Other Income	74.796	9.788	9.888
		TOTAL (A)	1116.354	1432.080	1146.750
Less	EXPENSES
		TOTAL (B)	989.298	1163.312	992.469
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		127.056	268.768	NA
Less	FINANCIAL EXPENSES (D)		57.272	53.258	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		69.784	215.510	154.281
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.811	14.857	11.313
	PROFIT BEFORE TAX (E-F) (G)		51.973	200.653	142.968
Less	TAX (H)		1.066	28.302	20.433
	PROFIT AFTER TAX (G-H) (I)		50.907	172.351	122.535
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	519.244	1159.201	924.632
		Other Earnings	247.900	2.602	0.819
	TOTAL EARNINGS		767.144	1161.803	925.451
	IMPORTS		379.120	818.288	493.069
	Earnings Per Share (Rs.)		6.84	23.26	-

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.56	12.03	10.68
Net Profit Margin (PBT/Sales)	(%)	4.99	14.07	12.57
Return on Total Assets (PBT/Total Assets}	(%)	4.38	16.99	13.19
Return on Investment (ROI) (PBT/Networth)		0.10	0.41	0.46
Debt Equity Ratio (Total Liability/Networth)		1.44	1.57	2.48
Current Ratio (Current Asset/Current Liability)		3.14	2.24	1.30

LOCAL AGENCY FURTHER INFORMATION

Operations and Prospects:

The company has recorded turnover in the current financial year to Rs.1041.558 millions as against Rs.1425.293 millions in the previous year and the total profit after tax of the Company decreased to Rs.50.907 millions as against Rs.172.3501 millions in the previous year.

Operations of the company are going on with good pace considering the trend of industry and capacity utilization is concerned. The Directors are making effort to make the company globally competitive and to achieve that, effort are going on towards acquisition of some global players in defence industry

As far as local operations are concerned, recently company has fetched some very big orders from Ministry of Home Affairs, Govt. of India. Some other orders are also expected to mature very soon.

Bankers Charges Report as per Registry

Corporate identity number of the company	U19202UP2001PTC026027
Name of the company	MKU PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	13, Gandhi Gramg T Road, Kanpur-208001, Uttar Pradesh, India
This form is for	Modification of charge
Charge identification number of the modified	10092993
Type of charge	Immovable Property
Particular of charge holder	Export-Import Bank Of India, Central One Building, Floor-21, World Trade Centre, Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Letter dated 19/10/2010 addressed by Export Import Bank of India ("EXIM BANK") with an endorsement to the MKU Private Limited (the Borrower) conveying its approval to release the mortgage and charge over immoveable properties forming part of the mortgage earlier created by the Borrower, more particularly described in letter bearing No. CBG:EOU:475:154 dated 19/10/2010
Date of instrument Creating the charge	19.10.2010
Amount secured by the charge	Rs.98.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 350 bps above EURO LIBOR (6M) Terms of Repayment Repayable in 12 equal qty installments. Margin 20%
Short particulars of the property charged	Borrower's immoveable properties at Khasra Nos. 3949, 3947, 3962, 3963, 3946 of land No.937 situate at Village Mauja Majri Grant (Lal Tappar), Taluka P.O. Rasham Majri Pargana Parwa Doon, Tehsil Rishikesh. Charge by way of mortgage created by the Borrower interalia over its immoveable properties at Khasra Nos. 3949,3947,3962,3963,3946 of land No.937 situate at Village Mauja Majri Grant (Lal Tappar), Taluka P.O. Rasham Majri Pargana Parwa Doon, Tehsil Rishikesh together with factory shed building and other structures, fixed plant and machinery, fixtures and fittings etc. in favour of Exim Bank stands released by letter dated19/10/2010 Together with factory shed building and other structures, fixed plant and machinery, fixtures and fittings etc. both present and future.
Date of latest modification prior to the present modification	13.08.2009
Particulars of the present modification	Charge by way of mortgage created by the Borrower interalia over its immoveable properties at Khasra Nos. 3949, 3947, 3962,3963, 3946 of land No.937 situate at Village Mauja Majri Grant (Lal Tappar), Taluka P.O. Rasham Majri Pargana Parwa Doon, Tehsil Rishikesh together with factory shed building and other structures, fixed plant and machinery, fixtures and fittings etc. in favour of Exim Bank stands released by letter dated19/10/2010

Fixed Assets:

• Land
• Building
• Office Building
• Office Machinery
• Furniture and Fixture
• Vehicle

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.46.38
UK Pound	1	Rs.74.00
Euro	1	Rs.64.48

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	NO
--AFFILIATION	YES/NO	YES
--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	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	--

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