MIRA INFORM REPORT

Report Date :

28.04.2012

IDENTIFICATION DETAILS

Name :	MEGHMANI INDUSTRIES LIMITED
Formerly Known As :	PATEL AGRO CHEM LIMITED
Registered Office :	Plot No.27, Phase I, GIDC Industrial Estate, Vatva, Ahmedabad – 382 445, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.02.1993
Com. Reg. No.:	04-019013
Capital Investment / Paid-up Capital :	Rs.45.000 millions
CIN No.: [Company Identification No.]	U29199GJ1993PLC019013
TAN No.: [Tax Deduction & Collection Account No.]	AHMM00395D
PAN No.: [Permanent Account No.]	AABCM0535G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Dyes, Agro Chemicals and Intermediates.
No. of Employees :	68 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 5868000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Meghmani Group. It is a well established and reputed company having fine track. General financial position is good. 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/ Factory 1 :	Plot No.27, Phase I, GIDC Industrial Estate, Vatva, Ahmedabad – 382 445, Gujarat, India
Tel. No.:	91-79-25833381/ 25897793
Fax No.:	91-79-26463999/ 25834588/ 25893495
E-Mail :	vshekhar@meghmani.com alkesh@meghmanidyes.com meghmaniad1@sancharnet.in helpdesk@meghmani.com exports@meghmani.com jbrahma@meghmanidyes.com
Website :	http://www.meghmani.com
Corporate Office :	203-204, White Cross, 15 Patel Society, Gulbai Tekra Road, Panchvati, Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-26569901/ 26562827/ 26467511
Fax No.:	91-79-26422600
Factory 2 :	Block No. 401, Village Chharodi, Taluka Sanand, District Ahmedabad – 382 170, Gujarat, India
Tel. No.:	91-2717-273204/ 273284
Fax No.:	91-2717-273117
Factory :	Also Located at: v Panoli v Ankleshwar

DIRECTORS

As on 27.06.2011

Name :

Mr. Natwarlal Meghjibhai Patel

Designation :

Chairman cum Managing Director

Address :

6-B, Ashok Vatika No.1, Opposite Ekta Farm, Ambli, Bopal Road, Bodakdev, Ahmedabad – 380 058, Gujarat, India

Date of Birth/Age :

01.06.1953

Date of Appointment :

22.02.1993

DIN No.:

00027540

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	U29199GJ1993PLC019013	MEGHMANI INDUSTRIES LIMITED	Managing director	01-11-11	22-02-93	Active	NO
2	U24231GJ1993PLC019271	MEGHMANI CHEMICALS LIMITED	Director	26-12-94	26-12-94	Active	NO
3	L24110GJ1995PLC024052	MEGHMANI ORGANICS LIMITED	Managing director	01-04-09	02-01-95	Active	NO
4	U24110GJ1999PLC036306	MEGHMANI DYES AND INTERMEDIATES LIMITED	Managing director	13-03-08	21-07-99	Active	NO
5	U50101GJ1996PTC030122	FIDELITY EXPORT PRIVATE LIMITED	Director	27-01-00	27-01-00	Active	NO
6	U52100GJ1965PLC001347	GSEC LIMITED	Director	18-03-04	18-03-04	Active	NO
7	U40105GJ2006PLC048974	MEGHMANI ENERGY LIMITED	Director	29-08-06	29-08-06	Active	NO
8	U24100GJ2007PLC051717	MEGHMANI FINECHEM LIMITED	Director	11-09-07	11-09-07	Active	NO
9	U24211DL1970NPL005200	CROP CARE FEDERATION OF INDIA	Director	25-07-08	25-07-08	Active	NO
10	U29224GJ1987PLC010044	JOHN ENERGY LIMITED	Director	30-09-09	27-02-09	Active	NO
11	U24100GJ2008PLC054564	MEGHMANI CHEMTECH LIMITED	Director	25-03-11	25-03-11	Active	NO

Name :

Mr. Rameshbhai Meghjibhai Patel

Designation :

Managing Director

Address :

No.54, Shreenath Park Society, Behind Avishkar Party Plot, Manekbaug, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

01.03.1956

Date of Appointment :

22.02.1993

E-Mail:

ramesh@meghmani.com

DIN No.:

00027637

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	U29199GJ1993PLC019013	MEGHMANI INDUSTRIES LIMITED	Managing director	01-11-11	22-02-93	Active	NO
2	L24110GJ1995PLC024052	MEGHMANI ORGANICS LIMITED	Whole-time director	01-04-09	02-01-95	Active	NO
3	U24110GJ1999PLC036306	MEGHMANI DYES AND INTERMEDIATES LIMITED	Managing director	13-03-08	21-07-99	Active	NO
4	U50101GJ1996PTC030122	FIDELITY EXPORT PRIVATE LIMITED	Director	12-09-01	12-09-01	Active	NO
5	U92410GJ1989GAP012192	KARNAVATI CLUB LIMITED	Director	17-09-02	17-09-02	Active	NO
6	U51909GJ2002PLC041575	VANGUARD OVERSEAS LIMITED	Director	21-03-03	21-03-03	Active	NO
7	U45209GJ2005NPL046417	VATVA INDUSTRIAL ESTATE INFRASTRUCTURE DEVELOPMENT LIMITED	Director	13-07-05	13-07-05	Active	NO
8	U40105GJ2006PLC048974	MEGHMANI ENERGY LIMITED	Director	29-08-06	29-08-06	Active	NO
9	U24100GJ2007PLC051717	MEGHMANI FINECHEM LIMITED	Director	11-09-07	11-09-07	Active	NO
10	U24100GJ2008PLC054564	MEGHMANI CHEMTECH LIMITED	Director	25-03-11	25-03-11	Active	NO

Name :

Mr. Lalit Kantilal Patel

Designation :

Director

Address :

31, Park Hill, Near Narmada Vasahat, Opposite Karnavati Club, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

15.02.1967

Date of Appointment :

22.02.1993

DIN No.:

00011773

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	U29199GJ1993PLC019013	MEGHMANI INDUSTRIES LIMITED	Director	22-02-93	22-02-93	Active	NO
2	U24110GJ1999PLC036306	MEGHMANI DYES AND INTERMEDIATES LIMITED	Director	21-07-99	21-07-99	Active	NO
3	U40105GJ2006PLC048974	MEGHMANI ENERGY LIMITED	Director	29-08-06	29-08-06	Active	NO
4	U24100GJ2007PLC051935	MEGHMANI SPECIALTY CHEMICALS LIMITED	Director	10-10-07	10-10-07	Active	NO
5	U24231GJ1993PTC020229	SYNERGY CHLORINATION PRIVATE LIMITED	Director	27-10-07	27-10-07	Active	NO
6	U24100GJ2007PLC051763	UNISON INDUSTRIES LIMITED	Director	22-09-08	25-08-08	Active	NO
7	U67120GJ2009PTC058361	ALB STOCK BROKING PRIVATE LIMITED	Director	15-10-09	15-10-09	Active	NO

Name :

Mr. Keyur Balkrishna Thakkar

Designation :

Director

Address :

L-14/265, Satyagraha Chhavani Society, Satellite Road, Ahmedabad – 380 015, Gujarat, India

Date of Birth/Age :

06.04.1968

Date of Appointment :

24.09.2007

E-Mail:

tkeyurca@yahool.com

DIN No.:

01490623

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	U29199GJ1993PLC019013	MEGHMANI INDUSTRIES LIMITED	Director	24-09-07	10-04-07	Active	NO
2	U67120GJ2009PTC058361	ALB STOCK BROKING PRIVATE LIMITED	Director	26-10-09	26-10-09	Active	NO

Name :

Saroj Narayan Mohanty

Designation :

Additional Director

Address :

C-103, West View CHS, Plot No.6, Sector 2, Charkop, Kandivali (West), Mumbai – 400 067, Maharashtra, India

Date of Birth/Age :

27.01.1953

Date of Appointment :

31.01.2011

DIN No.:

03413326

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	U29199GJ1993PLC019013	MEGHMANI INDUSTRIES LIMITED	Director	27-06-11	31-01-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.06.2011

Names of Shareholders	No. of Shares
Natwarlal Patel	1287250
Bhartiben Patel	12500
Disha Patel	25000
Ankit Patel	25000
Rameshbhai Patel	850000
Kalpanaben Patel	7500
Karan Patel	22500
Vaishakhi Patel	20000
Amitaben Patel	985750
Lalit Patel	41500
Jagrutiben Patel	7500
Ganpatbhai Patel	288750
Praful Patel	3000
Shardaben Patel	512250
Popatbhai Patel	15250
Anil Patel	7500
Prashant Patel	5000
Kuverben Patel	337250
Anand Patel	12750
Darshan Patel	10000
Haribhai Patel	1500
Ravi Patel	10375
Kiranbhai Patel	11875
Total	4500000

As on 27.06.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturing of Dyes, Agro Chemicals and Intermediates.

Products :

ITC Code No.	Product Description
29215109	O.P.D.A
380831009	Atrazine
3014	Hexaconazole

Brand Names :

• ‘MEGASTAR'
• 'MEGACYPER' (Pesticide Formulations)
• ‘MEGHAFAST' (Pigments)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Agrochemicals Basics	M.T.	3000	1441.33
Solid Formulations	M.T.	NA	2376.09
Liquid Formulations	K.L.	NA	2527.41
Dyes and Others	M.T.	2100	319.48

GENERAL INFORMATION

No. of Employees :

68 (Approximately)

Bankers :

• State Bank of India, Vatva Industrial Estate Branch, Vatva, Ahmedabad – 382 445, Gujarat, India
• State Bank of India, 4^th Floor, MID Corporation Administration Unit, Local Head Office Building, Bhadra, Ahmedabad – 380 001, Gujarat, India
• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013, Maharashtra, India
• State Bank of India, Overseas Branch, 3^rd Floor, Amrit Jayanti Bhavan, Navjivan PO, B/H Gujarat Vidyapith, Ahmedabad – 380 014, Gujarat, India

Facilities :

Secured Loans :	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
Rupee term loans banks secured	50.000	50.000
Foreign currency loans banks secured	0.000	10.554
Working capital loans banks secured	47.190	7.857
Total	97.190	68.411

Unsecured Loans :	As on 31.03.2011 Rs. in Millions	As on 31.03.2010 Rs. in Millions
Rupee term loans banks unsecured	30.000	50.000
Working capital loans others unsecured	20.000	0.000
Loans subsidiaries unsecured	0.000	15.000
Loans directors unsecured	100.051	59.224
Total	150.051	124.224

Banking Relations :	--
Auditors :
Name :	Balkrishna T. Thakkar and Company Chartered Accountants
Address :	602, Saffron, Ambawadi, Ahmedabad – 380 015, Gujarat, India

CAPITAL STRUCTURE

As on 27.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 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		45.000	45.000	18.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1421.933	1180.752	1024.095
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1466.933	1225.752	1042.095
LOAN FUNDS
1] Secured Loans		97.190	68.411	12.834
2] Unsecured Loans		150.051	124.224	115.924
TOTAL BORROWING		247.241	192.635	128.758
DEFERRED TAX LIABILITIES		23.132	28.124	11.713
TOTAL		1737.306	1446.511	1182.566
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		427.625	416.631	214.440
Capital work-in-progress		347.009	59.812	17.264
INVESTMENT		92.003	92.758	274.398
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	503.972	490.380	374.935
	Sundry Debtors	602.148	495.820	548.222
	Cash & Bank Balances	80.425	165.839	72.463
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	121.113	121.068	138.339
Total Current Assets		1307.658	1273.107	1133.959
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	243.797	209.664	148.085
	Other Current Liabilities	136.652	125.577	275.906
	Provisions	56.540	60.556	33.504
Total Current Liabilities		436.989	395.797	457.495
Net Current Assets		870.669	877.310	676.464
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1737.306	1446.511	1182.566

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	1939.838	1528.655	1686.397
		Other Income	10.592	16.608	13.178
		TOTAL (A)	1950.430	1545.263	1699.575
Less	EXPENSES
		Consumption materials changes inventories	1192.283	886.047	1467.654
		Manufacturing service cost	195.056	164.687
		Employee related expenses	43.846	34.038
		Administrative selling other expenses	178.216	154.103
		Research development expenditure	17.959	11.457
		TOTAL (B)	1627.360	1250.332	1467.654
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		323.070	294.931	231.921
Less	INTEREST FINANCIALCHARGES (D)		5.430	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		317.640	294.931	231.921
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.568	26.321	21.543
	PROFIT BEFORE TAX (E-F) (G)		281.072	268.610	210.378
Less	TAX (H)		29.431	66.561	29.336
	PROFIT AFTER TAX (G-H) (I)		251.641	202.049	181.042
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		898.765	745.108	600.383
Less	APPROPRIATIONS
		Transfer to General Reserve	40.473	30.000	30.000
		Interim Dividend		6.750	0.000
		Final Dividend		9.000	5.400
		Tax on Dividend		2.642	0.918
	BALANCE CARRIED TO THE B/S		1109.933	898.765	745.108
	EARNINGS IN FOREIGN CURRENCY		NA	536.915	1291.246
	IMPORTS
		Raw Materials	NA	633.179	876.962
		Capital Goods	NA	15.498	0.324
		Stores Consumption	NA	3.301	0.932
	TOTAL IMPORTS		NA	651.978	878.218
	Earnings Per Share (Rs.)		55.92	44.90	100.58

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	12.90	13.08	10.65
Net Profit Margin (PBT/Sales)	(%)	14.49	17.57	12.47
Return on Total Assets (PBT/Total Assets}	(%)	16.20	15.90	15.60
Return on Investment (ROI) (PBT/Networth)		0.19	0.22	0.20
Debt Equity Ratio (Total Liability/Networth)		0.47	0.48	0.56
Current Ratio (Current Asset/Current Liability)		2.99	3.22	2.48

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	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	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	--
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

OPERATIONS:

Turnover for the financial year ended 31^st March, 2011 amounted to Rs.1939.838 millions as compared to Rs.1528.655 millions for the year ended 31^st March 2010. The Profit after tax for the year amounted to Rs.251.641 millions as compared to Rs.202.049 millions for the previous year.

DOMESTIC SALES:

The Domestic Sales of the Company increased by 25.49% i.e. from Rs.885.927 millions in F.Y. 2009-10 to Rs.1111.769 millions in F.Y. 2010-11.

EXPORT SALES:

The Export Sales of the Company increased by 28.85% i.e. from Rs.642.678 millions in F.Y. 2009-10 to Rs.828.069 millions in F.Y. 2010-11.

OVERVIEW OF ECONOMY

In the financial year of 2010-11 the Indian economy has witnessed robust economic growth. Growing Faster, Improving Stability, Progressing on Structural Challenges. Government’s Policies formulated to take care of and to help accelerate economic inclusion, boost investment and infrastructure, and enable agriculture, which has revived remarkably well this year, to be on a sustained high growth path. The economy has emerged with remarkable rapidity from the slowdown caused by the global crisis in recent past couple of years. The growth in the GDP is estimated about 8.6% during 2010-11 against expected 7.5% for the year, with a forecast of 9.00% for 2011-12

FORM 8:

Corporate identity number of the company	U29199GJ1993PLC019013
Name of the company	MEGHMANI INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.27, Phase I, GIDC Industrial Estate, Vatva, Ahmedabad – 382 445, Gujarat, India E-Mail: jbrahma@meghmanidyes.com
This form is for	Modification of charge
Charge identification number of the modified	90102662
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Overseas Branch, 3^rd Floor, Amrit Jayanti Bhavan, Navjivan PO, B/H Gujarat Vidyapith, Ahmedabad – 380 014, Gujarat, India E-Mail: sbi.04038@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Extension of equitable mortgage dated 06.09.2011.
Date of instrument Creating the charge	06.09.2011
Amount secured by the charge	Rs.990.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Working Capital: 3.25% above base rate i.e. 10.85% Term Loan: 3.45% above base rate i.e. 11.05% Terms of Repayment: Working Capital: payable on demand Term Loan: Repayable in 63 months including the moratorium of 13 months. Repayment commencing from January - 2012 Margin: Raw material: 25% Stock in process: 25% Finished goods: 25% LC: 10% BG: 10% EPC: 10% of FOB value Extent and Operation of the charge: The charge shall operate as security by way of first charge on pari passu basis with HDFC Bank Limited by way of Extension of Equitable Mortgage of (1) Freehold N.A. land bearing block no. 401 of mouje chharodi, (2) Leasehold plot no. 27 in Vatva Industrial Estate and (3) 1^st and exclusive charge by way of Equitable Mortgage of Plot No. Z/6, and Z/7/2 in Dahej SEZ, of the Company, for securing the total credit facilities of Rs.990.000 millions, granted by the Bank.
Short particulars of the property charged	Equitable mortgage on pari passu basis with HDFC Bank Limited, of freehold N.A. land bearing Block No. 401(paiki) admsg. 10718 sq. mtrs. of Mouje Chharodi of Sanand Taluka in the reg. district of Ahmedabad. Equitable mortgage on pari passu basis with HDFC Bank Limited, of Leasehold plot no. 27 admsg. about 7128 sq. mtrs. bearing S.No.434/1/B in Vatva Industrial Estate, of Vinzol Village of Vatva Taluka of A'bad. Equitable Mortgage on 1^st and exclusive charge basis of leasehold property bearing Plot No. Z/6, and Z/7/2 in Dahej SEZ, consisting of R.S. Nos.441/P, 442/P, 443/P, 469/P, 470, 471/P, 472, 473/P, 482/P of Dahej.
Date of latest modification prior to the present modification	13.08.2009
Particulars of the present modification	By this modification, charge shall be enhanced from Rs.280.000 millions to Rs.990.000 millions and the amount shall be additionally secured by 1^st and exclusive charge of Equitable Mortgage of Plot Nos. Z/6, and Z/7/2 in Dahej SEZ.

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.52.68
UK Pound	1	Rs.85.12
Euro	1	Rs.69.38

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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.