MIRA INFORM REPORT

Report Date :

16.04.2012

IDENTIFICATION DETAILS

Name :	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED

Registered Office :	Main Road, Opposite Hotel Pariwar, Gulbarga-585102, Karnataka

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	30.04.2002

Com. Reg. No.:	08-30436

Capital Investment / Paid-up Capital :	Rs.3051.361 Millions

CIN No.: [Company Identification No.]	U04010KA2002PLC030436

TAN No.: [Tax Deduction & Collection Account No.]	BLRG02962B

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Distribution of Electricity.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 23000000

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an established power distribution company, owned by Karnataka State Government. There appears some losses recorded by the company. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments. As the subject is owned by the Karnataka State Government lenders and creditors can feel confident of its exposure to the company. The company can be considered good for normal 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

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

LOCATIONS

Registered Office :	Main Road, Opposite Hotel Pariwar, Gulbarga-585102, Karnataka, India
Tel. No.:	91-8472-256581
Fax No.:	91-8472-256842
E-Mail :	mdgescom@sancharnet.in kpclcs@gmail.com mdgesco@gmail.com
Website:	http://www.gescom.in

DIRECTORS

As on 29.12.2011

Name :

Mr. Munivenkatappa Nagaraja

Designation :

Director

Address :

29/1, 2^nd Cross, Kanakanapalya, 4^th Block,Jayanagar, Bangalore-560041, Karnataka, India

Date of Appointment :

17.12.2008

Din No.:

02893520

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	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-12-08	17-12-08	Active	NO
2	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-12-08	17-12-08	Active	NO
3	U40109KA1999SGC025521	KARNATAKA POWER TRANSMISSION CORPORATION LIMITED	Director	17-12-08	17-12-08	Active	NO
4	U40109KA2002SGC030425	MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-12-08	17-12-08	Active	NO
5	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	08-10-09	08-10-09	Active	NO
6	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	06-09-11	06-09-11	Active	NO

Name :

Mr. Naveen Kumar Manglur

Designation :

Director

Address :

Kaveri Bhavan, 5^th Floor, KG Road, Bangalore-560009, Karnataka, India

Date of Birth/Age :

05.01.1956

Date of Appointment :

15.09.2009

Din No.:

02801160

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	U40101KA2007SGC043640	POWER COMPANY OF KARNATAKA LIMITED	Managing director	25-06-09	25-06-09	Active	NO
2	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	15-09-09	15-09-09	Active	NO
3	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	15-09-09	15-09-09	Active	NO
4	U75112KA1996PLC020020	KARNATAKA RENEWABLE ENERGY DEVELOPMENT LIMITED	Nominee director	28-04-10	28-04-10	Active	NO
5	U40102DL2007GOI157615	COASTAL TAMIL NADU POWER LIMITED	Nominee director	30-08-10	30-08-10	Active	NO
6	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	17-06-11	17-06-11	Active	NO
7	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	21-10-11	21-10-11	Active	NO

Name :

Mr. Padam Kumar Garg

Designation :

Director

Address :

KPTCL and Director GESCOM, Kaveri Bhavan, Bangalore-560009, Karnataka, India

Date of Birth/Age :

26.04.1961

Date of Appointment :

23.10.2010

Din No.:

01959681

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	L15428KA1933SGC000142	MYSORE SUGAR COMPANY LIMITED	Managing director	25-05-05	25-05-05	11-02-08	Active	YES
2	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	23-10-10	23-10-10	-	Active	NO
3	U40109KA2002SGC030425	MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	23-10-10	23-10-10	29-12-11	Active	NO
4	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	23-10-10	23-10-10	-	Active	NO
5	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	23-10-10	23-10-10	-	Active	NO
6	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	23-10-10	23-10-10	-	Active	NO
7	L99999KA1936SGC000173	THE MYSORE PAPER MILLS LIMITED	Managing director	02-02-11	02-02-11	-	Active	NO

Name :

Mr. Madaiah Mahadev

Designation :

Director [Technical]

Address :

Gulbarga Electricity Supply Company Limited, Gulbarga Main Road, Golbarga-585102, Karnataka, India

Date of Birth/Age :

20.06.1957

Date of Appointment :

26.06.2010

Din No.:

03334378

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	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Whole-time director	26-06-10	26-06-10	Active	NO
2	U85110KA1945PLC000367	THE MYSORE ELECTRICAL INDUSTRIES LIMITED	Director	30-06-11	30-06-11	Active	NO

Name :

Sumanth Shankar Rao

Designation :

Director

Address :

No. 234, 6^th Main, Jayanagar, 4^th Block, Bangalore-560011, Karnataka, India

Date of Birth/Age :

01.12.1956

Date of Appointment :

03.02.2012

Din No.:

00349212

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	U40109KA2002SGC030425	MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Managing director	23-09-04	23-09-04	21-05-11	Active	NO
2	U31401KA2002SGC030437	HUBLI ELECTRICITY SUPPLY COMPANY LIMITED	Director	28-02-06	28-02-06	28-02-08	Active	NO
3	U40109KA2004SGC035177	CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED	Director	03-02-12	28-02-08	-	Active	NO
4	U04010KA2002SGC030438	BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED	Director	24-09-08	24-09-08	02-08-10	Active	NO
5	U40101KA2007SGC043640	POWER COMPANY OF KARNATAKA LIMITED	Director	31-10-08	31-10-08	17-06-11	Active	NO
6	U31101KA1975PLC002954	KARNATAKA VIDYUTH KARKHANE LIMITED	Managing director	30-05-11	17-08-09	-	Active	NO
7	U40109KA1999SGC025521	KARNATAKA POWER TRANSMISSION CORPORATION LIMITED	Whole-time director	18-01-12	18-01-12	-	Active	NO
8	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	03-02-12	03-02-12	-	Active	NO

Name :

Muddu Mohan

Designation :

Director

Address :

No. 1233, 2^nd Stage, Chandra Layout, Vijaynagar, Bangalore-560040, Karnataka, India

Date of Birth/Age :

01.08.1955

Date of Appointment :

03.02.2012

Din No.:

02349233

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	U63011KA1980PLC003718	D.DEVARAJ URS TRUCKS TERMINALS LIMITED	Managing director	16-07-08	16-07-08	Active	YES
2	U04010KA2002SGC030436	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED	Director	03-02-12	03-02-12	Active	NO
3	U40109KA1999SGC025521	KARNATAKA POWER TRANSMISSION CORPORATION LIMITED	Whole-time director	03-02-12	03-02-12	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.12.2011

Names of Shareholders		No. of Shares
Shamim Banu		130136095
Munish Moudgil		1
Madaiah Mahadev		1
Shivayogi C Kalsad		1
LV Nagarajan		1
Parvathy Keshavachar		1
S Pratap Kumar		1
R. Vishal		1
Sangappa Malenavar		1
SB Khanapur		1

Total		130136104

As on 29.12.2011

Equity Share Breakup		Percentage of Holding
Category
Government [Central and State]		100.00

BUSINESS DETAILS

Line of Business :

Distribution of Electricity.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v State Bank of Hyderabad, Super market Branch, Gulbarga-585101, Karnataka, India

v State Bank of Mysore, Gulbarga Branch, PB No. 42, Plot No. 67, Super Market, Old Office Road, Gulbarga-585101, Karnataka, India

v Bank of India, Gulbarga Branch, 63 Super Market Complex, Gulbarga 585 101, Karnataka, India

v State Bank of India

v Bank of India

v Canara Bank

v UCO Bank

v Syndicate Bank

v Vijaya Bank

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Loan from Canara Bank (secured by hypothecation of stores, inventories, machinery, current assets)	0.000	549.600
Loan from State Bank of Hyderabad (Secured by hypothecation of current assets distribution material)	715.561	1805.213
Loan from Rural Electrification Corporation (secured by hypothecation of distribution materials)	2794.960	2899.654
Loan from Rural Electrification Corporation – PSI (secured by hypothecation of assets installed in substation constructed under the project )	758.209	629.818
Loans from Power Financial corporation (Secured by hypothecation of movable assets comprising 2 x 5 MVA, 33/11 KV substation and associated lines.)	383.758	407.887
Loan from Rural Electrification Corporation towards APDRP Works (secured by hypothecation of assets created under the project)	223.574	254.312
Loans From Power Finance Corporation (Secured by hypothecation of assets created under the project DTC Metering)	272.568	231.494
Loans From Power Finance Corporation (Secured by hypothecation of assets created under the project Nirantara Jyoti)	34.547	36.050
Loans From Power Finance Corporation (Secured by hypothecation of assets created under the project R-APDRP)	413.289	112.104
Total	5596.466	6926.132

Unsecured Loan
Loans From GOK Towards Ganga Kalyan Works	13.140	15.330
Loans From GOK Towards Power Sector Automation (PSA)	7.830	13.050
Loans from Rural Electrification Corporation	0.000	28.569
Loans From Gol Through GOK Towards PMGY Works	68.886	74.336
Loans from Government of India, Ministry of Power Towards APDRP Works	85.359	92.473
Loans From Power Finance Corporation Limited	3.540	7.125
Total	178.755	230.883


Banking Relations :	--

Auditors :
Name :	P K Subramanian and Company Chartered Accountants
Address :	# 101-05-23, Kartik Complex, Bresthwarpaet, Raichur-584101, Karnataka, India
Tel. No.:	91-80-41107485
Pan No.:	AADFP8466A

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs.10/- each	Rs.4000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130136104	Equity Shares	Rs.10/- each	Rs.1301.361 Millions

As on 29.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000000	Equity Shares	Rs.10/- each	Rs.4000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
305136104	Equity Shares	Rs.10/- each	Rs.3051.361 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3051.361	1301.361	1301.361
2] Share Application Money		1050.600	1750.000	0.000
3] Reserves & Surplus		3430.407	2987.617	2512.397
4] (Accumulated Losses)		(1552.953)	(2166.037)	(1854.940)
NETWORTH		5979.415	3872.941	1958.818
LOAN FUNDS
1] Secured Loans		5596.466	6926.132	4974.036
2] Unsecured Loans		178.755	230.883	988.769
TOTAL BORROWING		5775.221	7157.015	5962.805
DEFERRED TAX LIABILITIES		139.559	509.703	208.641
SERVICE LINE AND SECURITY DEPOSITS		3056.088	2859.080	2637.180

TOTAL		14950.283	14398.739	10767.444

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		12197.596	10600.875	8878.821
Capital work-in-progress		636.735	1616.835	1439.538

INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	651.360	587.492	496.328
	Sundry Debtors	13049.275	12169.644	10296.166
	Cash & Bank Balances	1541.107	715.833	288.730
	Other Current Assets	6812.081	5095.889	4660.923
	Loans & Advances	638.477	751.666	958.212
Total Current Assets		22692.300	19320.524	16700.359
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	19769.118	16319.553	16080.652
	Provisions	807.330	820.042	170.722
Total Current Liabilities		20576.448	17139.595	16251.374
Net Current Assets		2115.852	2180.929	448.985

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		14950.283	14398.739	10767.444

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Revenue From Sale of Power	22021.884	16597.400	13612.700
		Revenue Subsidies and Grants	0.000	2.000	1.000
		Other Income	402.167	294.004	176.809
		TOTAL (A)	22424.051	16893.404	13790.509

Less	EXPENSES
		Purchase of Power	17681.136	12770.879	12990.122
		Repairs and Maintenance	242.116	209.240	147.497
		Employees Costs	1988.610	1515.991	1175.338
		Administrative and Other Expenses	343.875	304.434	286.876
		Other Debits	37.064	146.110	108.142
		Prior Period Charges (Net)	(529.517)	(55.322)	(15.944)
		TOTAL (B)	19763.284	14891.332	14692.031

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2660.767	2002.072	(901.522)

Less	FINANCIAL EXPENSES (D)		1738.874	1391.435	929.857

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		921.893	610.637	(1831.379)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		678.953	592.172	331.077

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		242.940	18.465	(2162.456)

Less	TAX (H)		(370.144)	329.562	(180.836)

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		613.084	(311.097)	(1981.620)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2166.037)	(1854.940)	126.680

	BALANCE CARRIED TO THE B/S		(1552.953)	(2166.037)	(1854.940)

	Earnings / (Loss) Per Share (Rs.)		4.71	(15.23)	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.73	(1.84)	(14.37)

Net Profit Margin (PBT/Sales)	(%)	1.10	0.11	(15.88)

Return on Total Assets (PBT/Total Assets}	(%)	0.70	0.06	(8.45)

Return on Investment (ROI) (PBT/Networth)		0.04	0.00	(1.10)

Debt Equity Ratio (Total Liability/Networth)		4.41	6.27	11.34

Current Ratio (Current Asset/Current Liability)		1.10	1.13	1.03

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

POWER PURCHASE:

Prior to 10.06.2005, KPTCL was purchasing power from various generating companies and supplied to ESCOMs. Consequent to enactment of the IE Act 2003, State Transmission Utilities were barred from carrying out power trading activities with effect from 10.06.2005. In order to facilitate the smooth working of distribution companies (ESCOMs), the Government of Karnataka constituted a State Power Procurement Coordination Centre under the Chairmanship of Principal Secretary, Energy Department. Further, the State Government issued guidelines to the ESCOMs to make necessary arrangements to purchase power directly form the generating companies and the Power Purchase Agreements already entered into by the KPTCL has been assigned to ESCOMs with effect from 10.06.2005. In order to arrange timely payments to the generation companies, the Government of Karnataka issued directions indicating the share of GESCOM as 13.26% of the total power purchase by all the ESCOMs subject to a final reconciliation of the actual power purchase by each ESCOMs (at the end of each financial year.)

During the year 2010-11, the company has received 6388.33 MUs (Except energy balance units) from various power producers viz. KPCL, NTPC, NLC, NPCIL-MAPS AND KAIGA, Minor IPPs and Major IPPs etc.

REVENUE FROM SALE OF POWER:

The demand raised during the period towards sale of power was Rs.16668.100 Millions.

REVENUE FROM SUBSIDIES:

During the year, Government of Karnataka vide letter No. EN 48 PSR 2006 dated 13.06.2007 has clarified that “Only the amount of subsidy as intimated by State Government needs to be taken into account by ESCOMs while preparing their Accounts and Balance Sheet”. The RE Subsidy released by Government of Karnataka for FY 10, amounts to Rs.7794.800 millions and the same along with the tripartite adjustments approved by GOK amount to Rs.649.500 millions is considered as the Tariff Subsidy for the finance year ended on 31.03.2011.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10048520
Corporate identity number of the company	U04010KA2002SGC030436
Name of the company	GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	Main Road, Opposite Hotel Pariwar, Gulbarga-585102, Karnataka, India
Type of charge	Book Debts Others
Particular of charge holder	State Bank of Mysore, Gulbarga Branch, PB No. 42, Plot No. 67, Super Market, Old Office Road, Gulbarga-585101, Karnataka, India Email: h.jsurya@gmail.com
Nature of description of the instrument creating or modifying the charge	Agreement of loan cum hypothecation (SME-2)
Date of instrument Creating the charge	28.12.2011
Amount secured by the charge	Rs.270.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Terms of Repayment Repayable on demand Margin 10% Extent and Operation of the charge Charge extends by way first charge on all the assets throughout the period of sanctioned limits.
Short particulars of the property charged	Hypothecation of the whole of the present and future book debts, outstanding monies, receivables, claims, bills, etc belonging to the company By way of first pari passu charge with State Bank of Hyderabad and other charge holders.
Date of latest modification prior to the present modification	30.03.2007
Particulars of the present modification	Total limits enhanced from Rs. 147.000 Millions to Rs. 270.000 Millions. All other terms, conditions and existing securities to continue.

Fixed assEts:-

· Land and Rights

· Buildings

· Roads

· Plant and Machinery

· Vehicles

· Office Equipments

· Furniture and Fixtures

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 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.51.42
UK Pound	1	Rs.81.93
Euro	1	Rs.67.67

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.

MIRA INFORM REPORT

651.360

13049.275

1541.107

6812.081

638.477

22692.300

19769.118

807.330

20576.448

2115.852

2.73

1.10

0.70

0.04

4.41

1.10

Unit