MIRA INFORM REPORT

Report Date :

16.09.2011

IDENTIFICATION DETAILS

Name :	VIDYA DAIRY
Registered Office :	Gujarat Agricultural University Campus, Anand-388110, District Kheda, Gujarat.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.06.1998
Com. Reg. No.:	034249
Paid-Up Capital :	Nil
CIN No.: [Company Identification No.]	U15200GJ1998NPL034249
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Provides one year hands on training to the B. Tech (Dairy Technology) student of SMC college of dairy science of Anand Agricultural University. They have ancillary business where they do processing of milk and milk product
No. of Employees :	120 (60 – Teachers and 60 – Students) [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 43000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a section 25 company. It 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 subject 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.

INFORMATION PARTED BY

Name :	Mr. Jayadev Patel
Designation :	Senior Executive Finance
Contact No.:	91-9375029556
Date :	15.09.2010

Name :	Mr. Vipul Parmar
Designation :	Accounts Head
Contact No.:	91-9377925126
Date :	15.09.2010

LOCATIONS

Registered Office :	Gujarat Agricultural University Campus, Anand-388110, District Kheda, Gujarat, India.
Tel. No.:	91-2692-262501/267996
Mobile No.:	91-9375029556 (Mr. Jayadeev Patel)
Fax No.:	91-2692-262501
E-Mail :	mdoffice@vidyadairy.in vidya_dairy@yahoo.co.in vjparmar@vidyadairy.in info@vidyadairy.in
Website :	www.vidyadairy.in
Area :	Owned (By Gujarat Agricultural University) Rented (By Vidya Dairy)

DIRECTORS

As on 19.08.2010

Name :	Mr. Balmukund Punamchand Shah
Designation :	Director
Address :	B 6, Sundaram Flat, Vyamshala Road, Anand, Gujarat, India.
Date of Birth/Age :	26.02.1953
Date of Appointment :	02.09.2006
DIN No.:	01072544

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	U15200GJ1998NPL034249	Vidya Dairy	Director	2.09.2006	2.09.2006	Active	NO

Name :	Mr. Bharatkumar Mahendrabhai Vyas
Designation :	Director
Address :	A-1, Kairacan Housing Society, Anand-388001, Gujarat, India.
Date of Birth/Age :	05.05.1950
Date of Appointment :	10.06.1988
DIN No.:	00043804

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	L28129MH1962PLC012289	Kaira Can Company Limited	Nominee director	28.12.1987	28.12.1987	10.06.2010	Active	NO
2	U74950GJ1985PTC007652	People"S Trusteeship Packaging Private Limited	Director	19.02.1994	19.02.1994	-	Active	YES
3	U15200GJ1998NPL034249	Vidya Dairy	Director	10.06.1998	10.06.1998	11.06.2010	Active	NO
4	L24110GJ1992PLC018355	Narmada Chematur Petrochemicals Limited	Director	13.08.2002	13.08.2002	-	Amalgamated	NO
5	U52209GJ2007PLC052134	Rudi Multi Trading Company Limited	Director	29.12.2008	29.12.2008	-	Active	NO

Name :	Mr. Nagaraj Venkatakrishnayya Belavadi
Designation :	Director
Address :	Quarter No. 1, NDDB Campus, 80 Feet Road, 8^th Block Koramangala, Bangalore-560095, Karnataka, India.
Date of Birth/Age :	10.05.1950
Date of Appointment :	04.08.2006
DIN No.:	01734080

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	U15200GJ1998NPL034249	Vidya Dairy	Director	4.08.2006	4.08.2006	Active	NO
2	U01211AP2004PLC044520	Indiagen Limited	Director appointed in casual vacancy	1.07.2009	1.07.2009	Amalgamated	NO
3	U01403DL2009NPL195142	Nddb Dairy Services	Director	30.09.2010	12.10.2009	Active	NO

Name :	Mr. Rahul Kumar Satyendra Prakash Shrivastava
Designation :	Director
Address :	6, Amul Colony, Anand, Gujarat, India.
Date of Birth/Age :	14.07.1969
Date of Appointment :	13.05.2003
DIN No.:	00394067

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	U15200GJ1998NPL034249	Vidya Dairy	Director	13.05.2003	13.05.2003	Active	NO
2	U74950GJ1985PTC007652	People"S Trusteeship Packaging Private Limited	Additional director	28.10.2009	28.10.2009	Active	YES

Name :	Mr. Hraday Kunjbihari Desai
Designation :	Director
Address :	Aatman, Panchtirth Park Near, Avakar Flats, Near Irma Gate, Anand, Gujarat, India.
Date of Birth/Age :	19.11.1957
Date of Appointment :	01.07.2002
DIN No.:	00524153

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	U15200GJ1998NPL034249	Vidya Dairy	Managing director	1.07.2002	1.07.2002	10.03.2011	Active	NO

Name :	Mr. Rupinder SohanSingh Sodhi
Designation :	Director
Address :	B 4, Kaira Can Complex, Near Chikhodra Railway Crossing, Anand – 388001, Gujarat, India
Date of Birth/Age :	08.12.1958
Date of Appointment :	11.06.2010
DIN No.:	03179002

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	U15200GJ1998NPL034249	Vidya Dairy	Director	11.06.2010	11.06.2010	Active	NO
2	L28129MH1962PLC012289	Kaira Can Company Limited	Nominee director	13.07.2011	10.02.2011	Active	NO

Name :	Mr. Deepak Ratilal Shah
Designation :	Director
Address :	304 Kunj Flats Near Vaikunth Society, Behind Ganesh Chowkadi, Anand – 388001, Gujarat, India
Date of Birth/Age :	18.04.1966
Date of Appointment :	10.03.2011
DIN No.:	03513529

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	U15200GJ1998NPL034249	Vidya Dairy	Managing director	10.03.2011	10.03.2011	Active	NO

List of Members (As on 19.08.2010)

Name :	Anand Agricultural University (Earlier Known as Gujarat Agricultural University)
Designation :	Principal, SMC College of Dairy Science
Address :	Anand Agricultural University Campus, Anand – 388110, Gujarat, India
Name :	Gujarat Co-operative Milk Markeing Federation Limited
Designation :	Managing Director
Address :	Amul Dairy Road, Anand – 388001, Gujarat, India
Name :	Kheda District Co-operative Milk Producers Union Limited
Designation :	Managing Director
Address :	Amul Dairy Road, Anand – 388001, Gujarat, India

KEY EXECUTIVES

Name :	Mr. Jayadev Patel
Designation :	Senior Executive Finance
Name :	Mr. Vipul Parmar
Designation :	Accounts Head
Name :	Mr. Birendra Kumar
Designation :	Department Manager
Name :	Mr. Nimesh Anjaria
Designation :	Purchase Incharge
Name :	Mr. Paresh Chauhan
Designation :	Executive
Name :	Mr. Ajay Zala
Designation :	Superintendent
Name :	Mr. Ashutosh Shukla
Designation :	MIS In-Charge

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Not Available

BUSINESS DETAILS

Line of Business :	Provides one year hands on training to the B. Tech (Dairy Technology) student of SMC college of dairy science of Anand Agricultural University. They have ancillary business where they do processing of milk and milk product
Products :	Milk Ghee Cheese
Terms :
Selling :	Cash
Purchasing :	Cash

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Milk	LTRS	100000	21898298
Milk Products	KGS	7470	1171705

a) Licensed capacity is not applicable for any of the above products

b) Installed capacities are as certified by the management

GENERAL INFORMATION

Customers :

· End Users

No. of Employees :

120 (60 – Teachers and 60 – Students) [approximately]

Bankers :

• Development Credit Bank Limited, C.G Road Branch, Ahmedabad, Gujarat, India.
• HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India.
• Central Bank – Agricultural University Branch
• Dena Bank – Nehru Road Branch
• Bank of Baroda – Main Branch, Anand

Facilities :

Secured Loan	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Term loan from National Dairy Development Board (Against hypothecation of whole of movable properties including movable plant and machineries, furniture, fixtures, stock in trade, book debts and other movable both present and future (payable within 12 months Rs. Nil (previous year Rs. 8.271 millions)]	0.000	8.271
Cash credit facility from HDFC Bank Limited (first pari passu charge against hypothecation of all stock and book debts both present and future.)	9.049	9.197
Total	9.049	17.468

Banking Relations :	--
Auditors :
Name :	C. C. Chokshi and Company Chartered Accountant
Address :	Heritage 3^rd Floor, Behind Gujarat Vidyapith, Off, Ashram Road, Ahmedabad-380014, Gujarat, India.
Pan No.:	AACFC2938D
Associates/Subsidiaries :	· G.C.M.M.F Limited, Anand · Kaira D.C.M.P.U. Limited, Anand · SMC College of Dairy Science

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
Nil	Nil	Nil	Nil

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
Nil	Nil	Nil	Nil

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		0.000	0.000	0.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		10.816	12.868	15.280
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.816	12.868	15.280
LOAN FUNDS
1] Secured Loans		9.049	17.468	20.678
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		9.049	17.468	20.678
DEFERRED TAX LIABILITIES		0.000	0.000	0.179
OTHERS		54.391	32.834	15.381
TOTAL		74.256	63.170	51.518
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		67.784	61.461	50.178
Capital work-in-progress		0.000	0.000	2.425
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.651	14.343	21.421
	Sundry Debtors	2.838	3.354	2.781
	Cash & Bank Balances	8.680	3.234	3.715
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.382	3.623	3.557
Total Current Assets		34.551	24.554	31.474
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.193	17.507	27.878
	Other Current Liabilities	4.674	3.366	2.544
	Provisions	2.212	1.972	2.137
Total Current Liabilities		28.079	22.845	32.559
Net Current Assets		6.472	1.709	(1.085)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		74.256	63.170	51.518

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income		670.820	586.304
		Other Income		6.493	4.760
		TOTAL (A)	793.849	677.313	591.064
Less	EXPENSES
		Raw material consumed		487.238	443.382
		Purchase of milk and milk products		75.648	48.919
		Manufacturing and other expenses		78.080	74.160
		Sales and distribution expenses		5.150	4.320
		Expenditure on students		2.056	1.689
		Increase/ decrease in stock of finished goods and stock in process		6.521	(4.751)
		TOTAL (B)	772.459 (Including Financial Expenses and Depreciation)	654.693	567.719
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			22.620	23.345
Less	FINANCIAL EXPENSES (D)			1.123	1.629
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			21.497	21.716
Less/ Add	DEPRECIATION/ AMORTISATION (F)			4.223	8.206
	PROFIT BEFORE TAX (E-F) (G)		2.139	17.274	13.510
Less	TAX (H)		0.000	(0.179)	5.272
	PROFIT AFTER TAX (G-H) (I)		2.139	17.453	8.238
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	0.000	0.388
	BALANCE CARRIED TO THE B/S		NA	17.453	8.626
	IMPORTS
		Spares	0.107	0.000	0.000
	TOTAL IMPORTS		0.107	0.000	0.000
	Earnings Per Share (Rs.)		NA	NA	NA

Particulars	31.03.2011
Sales Turnover (approximately)	1010.000

Expected Sales (2011-12) : Rs. 1250.000 Millions.

The above information has been parted by Mr. Vipul Parmar (Accounts Head) and Mr. Jayadev Patel (Senior Executive Finance)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.27	2.58	1.39
Net Profit Margin (PBT/Sales)	(%)	NA	2.58	2.30
Return on Total Assets (PBT/Total Assets}	(%)	2.09	20.08	16.55
Return on Investment (ROI) (PBT/Networth)		0.20	1.34	0.88
Debt Equity Ratio (Total Liability/Networth)		3.43	3.13	3.48
Current Ratio (Current Asset/Current Liability)		1.23	1.07	0.97

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	21.193	17.507	27.878

FINANCIAL RESULTS:

During the year 2009-10, the turnover increased to Rs. 793.849 millions from Rs. 670.793 millions in the previous year, an increase of 18.34 %. The dairy has made a surplus of Rs. 21.558 millions during the current year against a surplus of Rs. 17.453 millions during the previous year.

Keeping in mind the growing business, Rs. 13.054 millions has been added to the Assets for additional infrastructure.

DAIRY ACTIVITIES

Dairy Plant Operations And Energy Usage

With a view to improving productivity in the dairy, effective daily monitoring of Dairy Plant Operations was introduced through strengthening of Total Quality Management during the year 2009-10. This enabled us in controlling loss of milk solids, utilities and packaging material, which resulted into improved financial performance.

The average energy cost during the year was 73 paise per liter of milk processed (including whey processed). 117 liters and 11.7 liters of milk was processed per liter of furnace oil and per unit of the electricity consumed respectively. The specific energy consumption cost was lower during 2009-10 as compared to the year 2008-09, mainly due to increase in throughput and overall energy efficiency.

During the year 2009-10 following activities were undertaken in the areas of Production and Engineering Services:

· Ice Cream Plant Expansion to increase production capacity from 4000 liters to 8000 liters by addition of new Ice cream Freezer, Fruit feeder, Mix preparation plant, its pipelines as well as Cup Filling Machine.

· Changeover of Boiler fuel from furnace oil to natural gas. (Commissioning of Gas Skid, pipe lines and Gas Burner to operate with compressed natural gas)

· RCC Hard Park near Tanker bay to avoid water logging during monsoon.

· Bitumen Road Surfacing (Road carpeting) work in Dairy campus.

· Outside painting work of entire Dairy Building

· Change of insulation and outer cladding of Milk Silos (S S 430 with S S 304).

· Replacement of load cells with latest type of Level Transmitters in two Milk Silos.

· Installed Photo sensor Unit on 4 Milk Packing M/c for uniform bag length in milk pouch.

· Installation of Metal Detection System for dairy products at Cheese section.

· Installation of CC TV Camera at Main gate as well as Milk dispatch dock.

· Energy efficient multi stage Chilled Water Pumps to replace old monoblock pumps for Refrigeration plant.

· Installation of new Air curtains for various cold store door to improve the energy efficiency.

· Import of Stretching Machine spares like Gear Box and variator from the original manufacturer.

· FRP Shade between worker Room and tanker bay as per the suggestion of MMPO auditors

· Construction of Scrap yard and Refreshment Room.

· Renovation of reading room at the Hostel

· Developed facilities for re-chilling of pasteurized milk.

Subject puts continued energy conservation efforts by maintaining power factor, efficient operations in refrigeration and boiler area.

Quality Management

The section-wise progress on quality management was regularly reviewed in monthly TQM meetings. Dayto-day monitoring of raw materials, semi-finished products and finished products was done through analysis of different parameters important to achieve desired goal of quality and losses control. The line studies, swab, water and air analysis were performed at regular intervals to sustain quality. The House Keeping audits of different sections were performed at regular interval to up-keep the work places for efficient utilization of time, man and machine. Different audits by Export Inspection Agency (EIA), Milk and Milk Products Order and M/s. DET NORSKE VERITAS (for Quality, Food Safety and Environment Management Systems) were conducted as per the schedule and no major non-compliance was observed. The following regular activities as per schedule were conducted in the Quality Assurance Area.

· Testing of pathogens in milk and milk products.

· Testing of Bore well water and Soft water.

· Pest control application by Pest control of India Limited

· Testing of Raw milk for adulteration like Urea, Carbonates, Neutralizer, Formalin etc.

· Process control and Hygiene control

· Testing of ingredients, packaging materials and cleaning solutions

· Finished products analysis.

· Weight check of packed milk and milk products

· Recording of cold stores temperatures

· Submission of products' analytical results to GCMMF on monthly basis and packed milk analytical results on daily basis.

· Submission of Ghee Grading statement to Agmark on monthly basis.

· Submission of progress report to MMPO on monthly basis.

· Surveillance Audit ISO-9001 and ISO-22000 - Recommended for the continuation of certificate.

· Renewal of Export License as well as Agmark License.

As a part of the development of ERP, Quality Assurance Module was specifically developed for effective MIS by Eastern Software Systems, Mumbai. The same is running satisfactorily.

Liquid Milk Marketing

For liquid milk marketing, Subject and the Kaira Union have common marketing policies with regard to commission, two time delivery and other conditions. The twin objectives of liquid milk marketing are to impart hands-on-experience to the students and also to provide wholesome, quality liquid milk to the consumers at a fair price. The major activities include distribution of milk as per market demand, market monitoring, infrastructural development, creating consumer awareness and sales promotional activities.

The dairy markets milk in Anand and nearby towns namely Vallabh Vidyanagar, Petlad, Borsad, Tarapur, Cambay and adjoining rural areas of Anand District. During the year 2009-10, 42 retail centers and 18 exclusive outlets were added. The current liquid milk marketing network includes 34 dealers, 57 Exclusive Outlets and 12 tricycle / push cart and Cold Storage at Cambay. For maintaining close contacts with the customers and users to know their needs, difficulties, expectations and suggestions, surveys are conducted on regular basis by our employees and students. The dairy manages Exclusive Outlet in hand, Petlad Milk Market and a part of Cambay Milk Market. During the year the average sale of liquid milk was 68162 LPD which was 8 % higher than the 63131 LPD during the year 2009- 10.

ACHIEVEMENTS:

They are glad to inform you that Subject has been selected to receive SAFA (South Asian Federation of Accountants ) Best Presented Accounts Award - 2008 (1st Runner up -Joint) in the category of Non-Governmental Organizations. The award ceremony was held on 5th November 2009 at Dhaka, Bangladesh. Due to very short notice, they could not arrange to receive the award in person.

They are pleased to inform that as per the letter received from Institute of Charted Accountants of India (ICAI), Subject, hand Gujarat has been adjudged the second best "ICAI Awards for Excellence in Financial Reporting" under the Category "Others" (Category VII) for the Financial Year 2008-09. On behalf of Subject, the shield has been received by Shri Anupam Purohit and Shri VT Joshi on 30.01.2010 at the ceremony held at Mumbai by Institute of Chartered Accountants of India (ICAI).

Contingent Liabilities not provided in respect of:

i) Claims against the dairy lodged by workers of the contractors and Government Authorities not acknowledged as debts (amount unascertainable).

ii) Disputed Service Tax demand amounting to Rs. 0.257 million plus interest and penalty (amount unascertainable) pending under Appeal before The Honorable Commissioner, Central Excise and Customs (Appeals), Vadodara and against which Rs. 0.064 million is paid under protest.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U15200GJ1998NPL034249
Name of the company	VIDYA DAIRY
Address of the registered office or of the principal place of business in India of the company	Gujarat Agricultural University Campus, Anand, District Kheda, Gujarat, India.
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India.
Email	nilesh.manoriya@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Letter of Hypothecation of Stocks and Book Debts
Date of instrument Creating the charge	03.12.2008
Amount secured by the charge	Rs.10.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit : 9.00 % p. a. at present with monthly rest plus interest tax or any other statutory levy (if applicable) or such other rate as may be stipulated by the bank from time to time. Working Capital Demand Loan : To be decided at preveiling rates. Terms of Repayment Repayable on demand. Margin 25 % on the Stock and Book Debts of Vidya Dairy OR any other margin as may be stipulated by the bank from time to time. Extent and Operation of the charge First pari passu charge on all stocks and book debts both present and future.
Short particulars of the property charged	First pari passu charge on all stocks and book debts both present and future.

Fixed Assets:

• Buildings
• Internal Electrification
• Plant and Machinery
• Equipments
• Furniture and Fixtures
• Vehicles
• Computers Software

Trade References:

· Yogo Kava India Limited – Bangalore

· Gujarat Milk Market Federation Limited – Gujarat

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.47.84
UK Pound	1	Rs.75.40
Euro	1	Rs.65.68

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.