MIRA INFORM REPORT

Report Date :

24.04.2012

IDENTIFICATION DETAILS

Name :	J. K. CEMENT LIMITED J. K. WHITE CEMENT WORKS - UNIT OF J. K. CEMENT LIMITED
Registered Office :	Kamla Tower, Kanpur – 208001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.11.1994
Com. Reg. No.:	17199
Capital Investment / Paid-up Capital :	Rs.699.273 Millions
CIN No.: [Company Identification No.]	L17229UP1994PLC017199
TAN No.: [Tax Deduction & Collection Account No.]	KNPJ00154A
Legal Form :	Public Limited Liability Company. The Company’s share are listed on stock exchange
Line of Business :	Manufacturer of Portland Cement and White Cement.
No. of Employees :	2168 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (69)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 56000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 :	Kamla Tower, Kanpur – 208001, Uttar Pradesh, India
Tel. No.:	91-512-2371478 / 81
Fax No.:	91-512-2332665 / 2399854
E-Mail :	Shambu.singh@jkcement.com
Website :	www.jkcement.com
Plant :	Grey Cement Plants Kailash Nagar, Nimbahera, District Chittorgarh, Rajasthan, India Mangrol, District Chittorgarh, Rajasthan, India Gotan, District Nagpur, Maharashtra, India Muddapur, District Bagakot, Karnataka, India White Cement Plant Gotan, District Nagpur, Maharashtra, India Thermal Power Plants Barmania Shambupura, Chittorgarh, Rajasthan, India Kailash Nagar, Nimbahera, District Chittorgarh, Rajasthan, India Gotan, District Nagpur, Maharashtra, India Muddapur, District Bagakot, Karnataka, India Waste Heat Recovery Power Plant Kailash Nagar, Nimbahera, District Chittorgarh, Rajasthan, India

DIRECTORS

As on 31.03.2011

Name :	Dr. Gaur Hari Singhania
Designation :	Chairman
Name :	Mr. Yadupati Singhania
Designation :	Managing Director and CEO
Name :	Mr. Jyoti Prasad Bajpai
Designation :	Director
Name :	Mr. Kailash Nath Khandelwal
Designation :	Director
Name :	Mr. Raj Kumar Lohia
Designation :	Director
Name :	Mr. Ashok Sharma
Designation :	Director
Name :	Mr. Achintya Karati
Designation :	Director
Name :	Mr. Jayant Narayan Godbole
Designation :	Director
Name :	Dr. K. B. Agarwal
Designation :	Director
Name :	Mr. Suparas Bhandari
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Shambhu Singh
Designation :	Company Secretary
Name :	Mr. A.K. Sarogi
Designation :	President (Corporate Affairs) and CFO
Name :	Mr. R. G. Bagla
Designation :	Group Executive President
Name :	Mr. Ashok Ghosh
Designation :	President (H. R.) and New Initiatives
Name :	Mr. B. K. Arora
Designation :	President (Works) – White Cement
Name :	Mr. D. Ravishankar
Designation :	President (Works)- Grey Cement
Name :	Mr. M. P. Rawal
Designation :	President (T and MS)
Name :	Mr. R. C. Shukla
Designation :	President (Marketing) – Grey Cement
Name :	Mr. V. P. Singh
Designation :	President (Marketing) – White Cement

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of promoter and Promoter Group
(1) Indian
Individuals / HUF	16574978	23.70
Bodies corporate	29589354	42.31
Any others (Specify)	153817	0.22
Persons Acting in Concert	153817	0.22
Sub Total	46318149	66.24
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	46318149	66.24
(B) Public Shareholdings
(1) Institutions
Mutual Funds	2523362	3.61
Financial Institutions/Banks	8474	0.01
Insurance Companies	2344462	3.35
Foreign Institutional Investors	8955861	12.81
Sub Total	13832159	19.78
(2) Non-Institutions
Bodies Corporate	2443140	3.49
Individuals
i. Individual Shareholders holding nominal share capital upto Rs.0.100 Million	5420124	7.75
ii. Individual Shareholders holding nominal share capital in excess Rs.0.100 Million	1589670	2.27
Any Others (Specify)	324008	0.46
Trusts	1799	--
Escrow Account	160	--
Societies	128004	0.18
Clearing Members	173850	0.25
Foreign Corporate Bodies	20195	0.03
Sub Total	9776942	13.98
Total Public shareholding (B)	23609101	33.76
Total (A)+(B)	69927250	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	69927250	--

BUSINESS DETAILS

Line of Business :

Manufacturer of Portland Cement and White Cement.

Products :

ITC Code No.	Product Description
252329.01	Portland Cement
252321.00	White Cement

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Portland / Pozzalana Cement	M.T.	--	7471900	5152540
White Cement	M.T.	--	400000	351102

GENERAL INFORMATION

No. of Employees :

2168 (Approximately)

Bankers :

• Allahabad Bank
• Andhra Bank
• Canara Bank
• Dena Bank
• Indian Bank
• Jammu and Kashmir Bank Limited
• United Bank of India
• Exim Bank
• IDBI Bank Limited
• Indian Overseas Bank
• ING Vyasa Bank
• State Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Non Convertible Debentures	4000.000	0.000
Term Loan from Banks	7770.535	8737.482
Cash Credit Accounts	599.046	599.193
Vehicle Loans	51.979	39.446
Total	12421.560	9376.121
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Security Deposits & Others	649.709	507.777
Deferred Sales Tax	769.880	853.305
Total	1419.589	1361.082

Banking Relations :	--
Auditors :
Name :	P.L. Tondon ad Company Chartered Accountants
Address:	Westcott Building, The Mall, Kanpur - 208 001, Uttar Pradesh, India
Wholly Owned Subsidiary companies :	J.K. Cement (Fujairah) FZC
Fellow Subsidiary :	J.K. Cement Works(Fujairah) FZC
Joint Ventures :	Bander Coal Company (Private) Limited
Related Parties :	Juggilal Kamlapat Holding Limited Yadu International Limited Jaykay Enterprises Limited J.K. Cotton Spg. and Wvg. Mills Company Limited Jaykaycem (Eastern) Limited Jaykaycem(Central) Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.10/- each	Rs. 800.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
69927250	Equity Shares	Rs.10/- each	Rs. 699.272 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		699.272	699.272	699.272
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13291.133	12838.226	11161.278
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13990.405	13537.498	11860.550
LOAN FUNDS
1] Secured Loans		12421.560	9376.121	4368.644
2] Unsecured Loans		1419.589	1361.082	1275.364
TOTAL BORROWING		13841.149	10737.203	5644.008
DEFERRED TAX LIABILITIES		2109.000	1858.000	1006.000
TOTAL		29940.554	26132.701	18510.558
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22964.761	20522.082	12157.507
Capital work-in-progress		1460.399	2252.806	350.573
INVESTMENT		58.419	59.880	107.408
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3210.532	2376.233	1361.258
	Sundry Debtors	607.613	818.731	530.382
	Cash & Bank Balances	3210.792	1316.707	1252.006
	Other Current Assets	50.195	17.940	13.163
	Loans & Advances	2368.617	2318.308	5814.919
Total Current Assets		9447.749	6847.919	8971.728
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1752.375	1434.515	1193.459
	Other Current Liabilities	2154.610	1857.018	1470.236
	Provisions	162.543	285.394	437.357
Total Current Liabilities		4069.528	3576.927	3101.052
Net Current Assets		5378.221	3270.992	5870.676
MISCELLANEOUS EXPENSES		78.754	26.941	24.394
TOTAL		29940.554	26132.701	18510.558

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	20830.763	18267.847	14968.356
		Other Income	366.439	192.912	79.118
		TOTAL (A)	21197.202	18460.759	15047.474
Less	EXPENSES
		Manufacturing Expenses	10324.470	7402.576	6557.502
		Payments to and Provisions for Employees	1274.820	994.273	872.999
		Selling, Administration and other Expenses	6592.952	5479.908	4297.838
		TOTAL (B)	18192.242	13876.757	11728.339
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3004.960	4584.002	3319.135
Less	FINANCIAL EXPENSES (D)		1039.855	616.322	455.307
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1965.105	3967.680	2863.828
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1127.334	855.094	524.222
	PROFIT BEFORE TAX (E-F) (G)		837.771	3112.586	2339.606
Less	TAX (H)		197.321	852.600	916.166
	PROFIT AFTER TAX (G-H) (I)		640.450	2259.986	1423.440
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1718.176	1448.948	1311.847
Less	ON AMALGAMATION		0.000	0.836	0.000
Less	APPROPRIATIONS
		General Reserve	65.000	1500.000	1000.000
		Transfer to Debenture Redemption Reserve	113.250	0.000	0.000
		Interim Dividend	0.000	174.818	0.000
		Proposed Dividend	139.855	244.745	244.745
		Tax on Dividend	22.688	70.359	41.594
	BALANCE CARRIED TO THE B/S		2017.833	1718.176	1448.948
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	189.931	203.528	148.654
	TOTAL EARNINGS		189.931	203.528	148.654
	IMPORTS
		Raw Materials	490.084	296.461	172.393
		Stores & Spares	246.337	466.498	171.232
		Capital Goods	53.789	64.238	38.526
	TOTAL IMPORTS		790.210	827.197	382.151
	Earnings Per Share (Rs.)		9.16	32.32	20.36

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	6090.330	5178.030	6181.960
Total Expenditure	4767.710	4519.310	4958.410
PBIDT (Excl OI)	1322.620	658.720	1223.540
Other Income	1.620	0.070	0.890
Operating Profit	1324.240	658.790	1224.430
Interest	280.540	297.560	263.500
Exceptional Items	0.000	0.000	0.000
PBDT	1043.700	361.230	960.930
Depreciation	304.990	308.520	315.230
Profit Before Tax	738.710	52.710	645.700
Tax	239.670	17.100	210.490
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	499.040	35.610	435.210
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	499.040	35.610	435.210

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.02	12.24	9.46
Net Profit Margin (PBT/Sales)	(%)	4.02	17.04	15.63
Return on Total Assets (PBT/Total Assets}	(%)	2.58	11.37	11.07
Return on Investment (ROI) (PBT/Networth)		0.06	0.23	0.20
Debt Equity Ratio (Total Liability/Networth)		1.28	1.06	0.74
Current Ratio (Current Asset/Current Liability)		2.32	1.91	2.89

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	No
8) No. of employees	Yes
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	Yes
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	--
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

OVERA LL PERFORMANCE

The Company’s performance during the year under report has improved both in terms of production, sales quantity as well as turnover. However, due to depressed market condition prevailed in overall cement industry the profitability have depleted. The Company’s turnover increased to Rs.26520.900 Millions during the year compared to Rs.22480.700 Millions in previous year. Profit before Depreciation and Tax achieved at Rs.1965.100 Millions compared to Rs.3967.700 Millions inspite of increased volumes due to higher input cost and decrease in margin.

OPERATIONS

Grey Cement

During the year under report, production of grey cement in Rajasthan plants reduced by 7.3% at 3.68 Million Tonnes as against 3.97 Million Tonnes during the pervious year, however taking together Rajasthan and Karnataka plant, production increased by 20% at 5.15 Million Tonnes compared to 4.29 Million Tonnes during pervious year. The contribution during the year was comparatively lower.

White Cement

Production of White Cement increased by 16.6% at 3.51 Lakh tonnes during the year compared to 3.01 Lakh tonnes while value added products registered increase of 55%. Sale was also in tandem with production. The contribution of both the products during the year was comparatively higher.

PRO JECTS OF THE COMPANY EXPANSION INITIATIVES

The Company in its effort to add capacity has already proposed implementation of expansion of Grey Cement in North India. Now, it has been finalized to set up a brownfield cement project of capacity of 3.5 MnTPA through an integrated unit of 8000 tpd clinker production at existing J.K.Cement Works, Mangrol site and a split located grinding unit at Jhajhar, Haryana in North India. The combined grinding capacity at integrated unit and split unit would be 4 MnTPA. The cost of the project is now estimated at Rs.23266.500 Millions including captive power plant of 35 MW and Waste Heat Recovery Plant of 15 MW. The Company has already purchased land at Jhajhar and applied for lease of new limestone mining area close to Mangrol site. Work at site is likely to start in October, 2011 and tentative schedule for completion is December, 2014

PRO JECTS OF SUBSIDIARY/JOINT VENTURE COMPANY IN HAND

(a) Projects under Subsidiary Company:

Cement Plant at Fujairah, UAE As reported last the Company had taken up establishment of a green field Grey Cement Plant in free trade zone at Fujairah, U.A.E. under its subsidiary, J.K.Cement Works (Fujairah) FZC, U.A.E. which is a joint venture company with Fujairah Investment, an undertaking of Government of Fujairah holding 10% equity. However, in view of change in business scenario in U.A.E, the Company is now planning to set up a small size plant of white cement convertible into Grey Cement to produce grey and white cement both according to the market demand. The project report for the same is under preparation. After finalization of the report, proposal for funding would be taken up with the Banks who have shown interest to fund the project.

(b) Project under Joint Venture:

Captive Coal Block in Maharashtra As reported earlier a Joint Venture Company viz. Bander Coal Company Private Limited (‘the JV Company’) was incorporated with equity contribution of other two companies. The JV Company had filed application for grant of Mining Lease for extraction of Coal over an area of 1604.67 Hectare area in Distt. Chandrapur, Maharashtra. Steps for preparation of amended Mining Plan and other approvals including forest clearance has also been initiated.

Finance

During the year under report the Company has availed additional Term Loan of Rs.1015.900 Millions and repaid Rs.1993.000 Millions. To augment long term finance, the Company also issued Secured Redeemable (redeemable in 7th, 8th, 9th and 10th years) Non Conventible Debentures of Rs.4000.000 Millions on private placement basis.

Management Discuss ion and Analysis Report

OUTLOOK

Economy

Indian economy is well positioned to attain sustainable growth trajectory with strong demand, robust consumption, savings and investment. It is widely accepted that average GDP growth of 8 – 9% can be maintained in coming years. Increasing number of young middle class households will have increased capacity for spending and housing sector will be a major beneficiary. However, there are some challenges also in the near term such as inflation, deceleration in corporate spending and hardening of global energy prices which can be tackled by coordinated monetary and fiscal policy measures. Despite these challenges, India has inherent many strengths to emerge as global economic power.

Industry

Grey Cement

The long term outlook for the cement industry continues to be bright based on sustained high growth of the Indian economy which should bring a significant increase in the demand for housing and commercial structures and ambitious plans of the Government for infrastructure investment of USD 1 trillion between 2012 -2017. Government stimulus for enhancing rural income and affordable housing will further increase the demand from housing sector.

The demand for cement is likely to remain strong in 2011 –12 based on continued focus on infrastructure development and economic growth. Substantial capacity additions are also likely to go on stream, particularly in South. Thus, demand – supply imbalance would continue to be cause of concern in the South and it is expected to improve or remain same in the other regions.

White Cement

Outlook for White Cement and Wall Putty for 2011 –12 is positive based on increased purchasing power of the upper middle class and high income segment. White Cement is promoted as aspirational product with long term durability ideally suited for the residential and commercial segment for interior and exterior applications. For Wall Putty, the main segment is residential sector. It is accepted in Metro cities and urban areas that Cement based Wall Putty is water resistant and provides a sub surface for decorative paint applications which helps to increase the appearance of walls. On a conservative basis, Wall Putty growth is estimated at 30% in 2011 -12.

PERFORMANCE DURING THE YEAR

1. Production of Grey Cement increased to 5.15 million tonnes during the year as against 4.28 million tones of previous year;

2. Production of White Cement increased to 3.51 lac tonnes as against 3.01 lac tonnes of previous year.

3. Substantial increase in the production of Value Added Product (Putty) of White Cement by 55%. Steps taken by the Company to increase productivity, promoting brand and strengthening of distribution network in southern and western regions has resulted increased volumes of grey cement despite low demand growth.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2011

Particulars	Standalone
	Quarter Ended		Nine Months Ended
	31.12.2011	30.09.2011	31.12.2011
	(Unaudited)
Gross Sales	7890.953	6514.626	22150.162
a) Net Sales/ Income from Operations	6150.185	5115.145	17319.830
b) Other Operating Income	31.766	62.888	130.488
Total Income	6181.951	5178.033	17450.318
Total Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	(66.988)	102.560	(263.150)
b) Consumption of raw Material	745.210	692.543	2165.990
c) Purchase of Traded Goods	1.490	1.539	4.600
d) Employee Cost	368.964	331.788	1074.094
e) Depreciation and Amortisation	315.227	308.518	928.736
f) Power and Fuel	1562.128	1296.557	4608.768
g) Stores and Spares	445.135	420.156	1316.201
h) Freight and Handling Outwards	1194.465	1078.877	3396.231
i) other Expenditure	708.008	597.294	1942.613
Total	5273.639	4827.831	15174.175
Profit from operations before Other Income, Interest and Tax	908.312	350.202	2276.143
Other Income	0.888	0.065	2.570
Profit from operations before Interest and Tax	909.200	350.267	2278.713
Interest and Finance Cost	263.497	207.556	841.500
Profit after Interest but before Exceptional Items	645.703	52.711	1437.123
Exceptional Items - Recovery of Loans and advances in Gateway Multichannel Retail (India) Limited	--	--	--
Profit from ordinary activities before tax	645.703	52.711	1437.123
Tax expense	210.493	17.162	467.269
Net Profit from ordinary activities after tax	435.211	35.509	969.854
Extra Ordinary Items	--	--	--
Net Profit after tax	435.211	35.509	969.854
Paid-up equity share capital (Face value of Rs.5/- Per Share - Also Refer Note 5)	699.272	699.272	699.272
Reserves(Excluding Revaluation Reserve)	--	--	--
Earnings per share (In Rs.) (not to be annualised - Refer Note 5)
- Basic	6.22	0.51	13.87
- Diluted	6.22	0.51	13.87
Public Shareholding *
- Number of Shares	23609101	23609101	23609101
- Percentage of shareholding	33.76%	33.76%	33.76%
Promoters and promoter group Shareholding * a) Pledged / Encumbered
- Number of shares	31875225	31875225	31875225
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	68.82%	68.82%	68.82%
- Percentage of shares (as a % of the total share capital of the company)	45.58%	45.58%	45.58%
b) Non-encumbered
- Number of shares	14442924	14442924	14442924
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	31.18%	31.18%	31.18%
- Percentage of shares (as a % of the total share capital of the company)	20.68%	20.68%	20.68%

Notes:

1. The company is engaged in only one business segment i.e. Cement.

2. Consequent release upon by banks on 6^th Feb, 2012, Promoters and promoters Group entire shareholding is non encumbered as on date.

3. There was no investor complaint pending at the beginning and at the close of the quarter. The company received and resolved 10 investor complaints during the quarter.

4. The above results are on stand alone basis.

5. The above results have been reviewed by the audit committee and approved by the Board of Directors at their meeting held on 11^th Feb, 2012. The auditor have performed a limited review of the same.

6. Previous period figures have been regrouped and rearranged whenever necessary to make them comparable with the current period.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Buildings

· Plant & Machinery

· Railway Sidings

· Rolling Stock

· Furniture, Fixtures and Office Equipments

· Vehicles

· Computer Software

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.52.23
UK Pound	1	Rs.84.16
Euro	1	Rs.68.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		69

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.