MIRA INFORM REPORT

Report Date :

30.04.2012

IDENTIFICATION DETAILS

Name :	M K U PRIVATE LIMITED
Registered Office :	13, Gandhi Gram G T Road, Kanpur-208001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.05.2001
Com. Reg. No.:	20-026027
Capital Investment/ Paid-up Capital:	Rs.75.193 Millions
CIN No.: [Company Identification No.]	U19202UP2001PTC026027
TAN No.: [Tax Deduction & Collection Account No.]	KNPM01477A
PAN No.: [Permanent Account No.]	AACCM6302Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Personal Protection and Defence Equipment.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

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

DIRECTORS

As. on 30.09.2011

Name :

Mr. Neeraj Gupta

Designation :

Managing Director

Address :

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

Date of Birth/Age :

08.11.1970

Date of Appointment :

20.09.2007

Pan No.:

AEQPG2409F

Din No.:

01054659

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U45206UP1991PTC013046	ART INFRA SOLUTIONS PRIVATE LIMITED	Director	15/04/1991	15/04/1991	1/9/2010	Active	NO
2	U24131UP1996PTC021001	M K U ARMORS PRIVATE LIMITED	Director	12/2/2004	12/2/2004	-	Active	NO
3	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Managing director	30/10/2010	20/09/2007	-	Active	NO
4	U91110UP1932NPL000467	MERCHANT CHAMBER OF UTTAR PRADESH	Director	4/10/2010	4/10/2010	29/09/2011	Active	NO
5	U28993UP2006PTC031284	CONCORD SAFETY SOLUTIONS PRIVATE LIMITED	Director	11/11/2010	11/11/2010	-	Active	NO

Name :

Mr. Manoj Gupta

Designation :

Director

Address :

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

Date of Birth/Age :

1.02.1968

Date of Appointment :

04.05.2001

Pan No.:

AEQPG2421K

Din No.:

01054595

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	4/5/2001	4/5/2001	-	Active	NO
2	U28993UP2006PTC031284	CONCORD SAFETY SOLUTIONS PRIVATE LIMITED	Director	31/01/2006	31/01/2006	25/11/2010	Active	NO
3	U45200UP2007PTC032899	ISHWAR COLONISERS PRIVATE LIMITED	Director	22/02/2007	22/02/2007	-	Active	NO
4	U19100UP2007PTC032980	ARP FOOTWEARS PRIVATE LIMITED	Director	9/3/2007	9/3/2007	13/06/2011	Active	NO
5	U45206UP1991PTC013046	ART INFRA SOLUTIONS PRIVATE LIMITED	Director	1/7/2008	1/7/2008	-	Active	NO
6	U26941UP1991PTC013611	TIRUPATI EQUIPMENTS PRIVATE LIMITED	Director	29/09/2011	12/11/2010	-	Active	NO

Name :

Mr. Sumit Khandelwal

Designation :

Director

Address :

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

Date of Birth/Age :

23.08.1975

Date of Appointment :

22.05.2003

Pan No.:

AHCPK8072B

Din No.:

00769177

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	22/05/2003	22/05/2003	-	Active	NO
2	U74991UP2007PTC032798	MKU WAREHOUSING COMPANY. PRIVATE LIMITED	Director	5/2/2007	5/2/2007	-	Active	NO
3	U28993UP2006PTC031284	CONCORD SAFETY SOLUTIONS PRIVATE LIMITED	Director	11/11/2010	11/11/2010	-	Active	NO

Name :

Mr. Sharad Khandelwal

Designation :

Director

Address :

172/279, Anand Bhawan Khyaliganj, Lucknow – 226018, Uttar Pradesh –India

Date of Birth/Age :

30.12.1967

Date of Appointment :

02.07.2011

Pan No.:

AEXPK7835A

Din No.:

00785335

Name :

Mr.Manish Khandelwal

Designation :

Director

Address :

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

Date of Birth/Age :

12.06.1975

Date of Appointment :

02.07.2011

Pan No.:

ACXPK1600P

Din No.:

01054861

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	U24131UP1996PTC021001	M K U ARMORS PRIVATE LIMITED	Director	23/04/2005	23/04/2005	-	Active	NO
2	U19100UP2007PTC032980	ARP FOOTWEARS PRIVATE LIMITED	Director	15/07/2008	15/07/2008	13/06/2011	Active	NO
3	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	2/7/2011	2/7/2011	-	Active	NO

Name :

Ms Neelam Gupta

Designation :

Director

Address :

127/581, W-1 Saket Nagar Kanpur - 208007 Uttar Pradesh India

Date of Birth/Age :

04.07.1963

Date of Appointment :

02.07.2011

Pan No.:

AILPG1193P

Din No.:

01161988

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	U24131UP1996PTC021001	M K U ARMORS PRIVATE LIMITED	Director	22/01/2006	22/01/2006	-	Active	NO
2	U19202UP2001PTC026027	M K U PRIVATE LIMITED	Director	2/7/2011	2/7/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Manish Kumar Shukla
Designation :	Company Secretary
Address :	75/07. Halsey Road, kanpur – 208001 - Uttar Pradesh, India
Date of Appointment :	21.07.2010
Pan No.:	BHGPS0188D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As. on 30.09.2011

Names of Shareholders	No. of Shares	%of Total Equity
Manoj Gupta	1085000	14.43
Neeraj Gupta	645000	8.58
Supriya Gupta	445000	5.92
Manna Lal Gupta HUF	430500	5.73
Sri Gopal Krishna Gupta	414000	5.51
Anurag Gupta	250600	3.33
Kiran Gupta	215900	2.87
Gopal Krishna Gupta/ Manoj Gupta/ Anurag Gupta	200000	2.66
Nikita Gupta	134000	1.78
Raj Khandelwal	75000	1.00
Neelam Gupta	75000	1.00
Manish Khandelwal	75000	1.00
Shanti Khandelawal	60000	0.80
Anurag Gupta HUF/ Gopal Krishna Gupta	50000	0.66
Radha Gupta	37000	0.49
Vaibhav Gupta	37000	0.49
Sharad Khandelwal	19000	0.25
Sumit Khandelwal	15000	0.20
Prerna Gupta	10000	0.13
Shrishti Gupta	6500	0.09
Master Karan Gupta	5500	0.07
Master Sidhratha Gupta	5500	0.07
Prachi Gupta	4500	0.06
M/s M K U Armors Private Limited, India	3224023	42.88
Bhagwan Gupta	100	0.0013
Ritu Jhunjhunwala	100	0.0013
Meet Gupta	10	0.0001
Naman Gupta	10	0.0001
Pramod Kumar Gupta	10	0.0001
Pramod Kumar Gupta/Anchal Gupta	10	0.0001
Total	7519263	100.00

As. on 30.09.2011

Equity Share Break - up

Category	Percentage
Bodies corporate	42.88
Directors or relatives of directors	53.89
Other top fifty shareholders	3.23
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Personal Protection and Defence Equipment.

PRODUCTION STATUS As. on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Helmet	No.	NA	1.8 Lacs	58126
Plates	No.	NA	1.8 Lacs	61008
Bullet proof Jacket	No.	NA	2.1 Lacs	18844
Vap	Sqmtr.	NA	0.18 Lacs	3343

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, Main Branch, PB No. 55, 58/42, 58/42, Bhartiya House, Birhana Road, Kanpur - 208001, Uttar Pradesh, India

Facilities :

Rs. In millions

SECURED LOAN	31.03.2011	31.03.2010
Rupee term loans banks secured	19.217	83.009
Working capital loans banks secured	569.901	361.888
Loans taken for vehicles secured	1.491	2.488
Total	590.609	447.385
SECURED LOAN	31.03.2011	31.03.2010
Loans directors unsecured	49.986	11.036
Other debt unsecured	39.400	20.554
Total	89.386	31.590

Banking Relations :	--
Auditors :
Name :	Birla and Chand Chartered Accountants
Address :	13-392, Neelkhand, Civil Lines, Kanpur-208 001, Uttar Pradesh, India
Pan No.:	ACJPB5908K
Companies and Concerns Controlled by Key Management Personnel/Relatives:	· A.R.T Infra Solution (PRIVATE) Limited. · A.R. Eolymers (Private) Limited. · Concord Safety Solutions (Private) Limited · MKU Warehousing (Private) Limited · Ishwar Colonisers (Private) Limited. · MKU Aerobot (Private) Limited. · MKU GmbH, Germany (A 100% subsidiary company ) · M/S MKU Participacos Limited .A, Brazil (A subsidiary company) · MKU Armors Private Limited

CAPITAL STRUCTURE

As. on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7519263	Equity Shares	Rs.10/- each	Rs.75.193 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		75.193	73.880	73.880
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		501.165	460.651	410.115
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		576.358	534.531	483.995
LOAN FUNDS
1] Secured Loans		590.609	447.385	342.790
2] Unsecured Loans		89.386	31.590	7.631
TOTAL BORROWING		679.995	478.975	350.421
DEFERRED TAX LIABILITIES		8.779	5.422	6.572
TOTAL		1265.132	1018.928	840.988
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		213.898	266.938	257.415
Capital work-in-progress		1.167	0.000	0.000
INVESTMENT		91.080	87.767	49.276
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	490.697	392.581	404.489
	Sundry Debtors	483.445	266.645	259.682
	Cash & Bank Balances	9.562	9.481	25.568
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	358.378	250.212	233.181
Total Current Assets		1342.082	918.919	922.920
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	363.057	269.171	327.815
	Other Current Liabilities	13.726	0.000	0.000
	Provisions	74.243	23.538	83.393
Total Current Liabilities		451.026	292.709	411.208
Net Current Assets		891.056	626.210	511.712
MISCELLANEOUS EXPENSES		67.931	38.013	22.585
TOTAL		1265.132	10128.928	840.988

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1606.400	1041.558	1425.292
		Other Income	43.900	74.796	9.788
		TOTAL (A)	1650.300	1116.354	1435.080
Less	EXPENSES
		TOTAL (B)	1519.200	989.298	1163.312
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		131.100	127.056	268.768
Less	FINANCIAL EXPENSES (D)		58.900	57.272	53.258
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		72.200	69.784	215.510
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.300	17.811	14.857
	PROFIT BEFORE TAX (E-F) (G)		54.900	51.973	200.653
Less	TAX (H)		13.800	1.066	28.302
	PROFIT AFTER TAX (G-H) (I)		41.100	50.907	172.351
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	975.703	519.244	1159.201
		Other Earnings	3.260	2.479	2.602
	TOTAL EARNINGS
	IMPORTS
		Raw Materials	890.017	379.120	818.288
	Earnings Per Share (Rs.)		5.39	6.84	23.26

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.49	4.56	12.03
Net Profit Margin (PBT/Sales)	(%)	3.42	4.99	14.07
Return on Total Assets (PBT/Total Assets}	(%)	3.53	4.38	16.99
Return on Investment (ROI) (PBT/Networth)		0.10	0.10	0.41
Debt Equity Ratio (Total Liability/Networth)		1.96	1.44	1.57
Current Ratio (Current Asset/Current Liability)		2.98	3.14	2.24

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

OPERATION AND PROSPECTS:

The company has recorded turnover in the current financial year to Rs.1606.400 Millions against Rs.1041.600 Millions in the previous year and the total profit after tax of the company decreased to Rs.41.100 Millions as against Rs.50.900 Millions in the previous year.

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

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

The company is also nurturing market of Night Vision Devises which is expected to grow in good amount in the coming years, world wide. In this regard The company has made tie up with some domestic and foreign players for the technology sharing.

CONTINGENT LIABILITIES:

i)Bank Guarantees given by the Company, Rs. 55.580 Millions ( Rs. 34.570Millions)

ii)L/C payable outstanding Rs. 15.139 Millions ( Rs. 3.392 Millions)

iii) Liabilities in respect of income tax matter for which the Company has gone in

Appeal pending are as follows:

Rs. In Millions

A Y	AMOUNT OF APPEAL	U/S OF I T ACT	ASSESSING AUTHORITY
2006-07	1.107	246A(1)(a)	ITAT Lucknow
2007-08	2.547	same	same

iv) Excise / custom / service tax in respect of which either show cause notice is received or the company / department are in appeal as follows:

Pending excise cases:

Rs. In Millions

Notice/Date	Amount	Assessing Authority
DZU/INV/54/KRU/06	5.762+ ` 0.151 int	CESTAT, New Delhi
V-Sec-11A/Dem/Adj/52/07	1.397	smae
V15/off/adj/24.10.2641	4.712	Addl.Comm Kanpur
V15/off/adj/18.2011/974	1.881	same

v) Estimated amount of contract remaining to be executed on capital a/c are not

Provided for ` Nil ( ` NIL)

vi) There is no claim against the Company acknowledged as debt.

Bankers Charges Report as per Registry

Corporate identity number of the company	U19202UP2001PTC026027
Name of the company	MKU PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	13, Gandhi Gramg T Road, Kanpur-208001, Uttar Pradesh, India kn.shridhar@yahooo.co.in
This form is for	Modification of charge
Charge identification number of the modified	10058790
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	Bank of Baroda, Main Branch, PB No. 55, 58/42, 58/42, Bhartiya House, Birhana Road, Kanpur - 208001, Uttar Pradesh, India v1maheshwari@rediffmail.com
Nature of description of the instrument creating or modifying the charge	(i) Sanction Letter (ii) Supplemental Composite Agreement of Hypothecation of Goods, Book Debts, Movable Machinery and Vehicle LDOC-17C (iii) Composite Memorandum of Entry
Date of instrument Creating the charge	21.02.2012
Amount secured by the charge	Rs.868.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: The Borrower hereby agrees to pay interest on the TL facility@5.50% above BR of the Bank p.a.,on the CC &other facility@6.75% above BR of the Bank p.a.& on PC &FBP facility@1% above BR of the Bank p.a. Terms of Repayment: 1- As per Sanction Letter of Bank. 2- Term Loan-I Rs.100.000 Millions- Repayable in 20 quarterly installments of Rs.5.000 Millions each w.e.f. 30.04.2012 subject to Annual Review. Interest to be paid as and when applied. 3- Term Loan-II Rs. 40.000 Millions Repayable in 16 quarterly installments of Rs.2.500 Millions each w.e.f. 30.04.2012 subject to Annual Review. Interest to be served additionally as and when applied. Margin: 44.84% on Term Loan-I 25.23% on Term Loan-II 25% on against paid stock for CC, PC and FBP facility 10% on Cash margin in cash of BG Nil- FBP facility Extent and operation of the Charge: The Company's assets are Hypothecated and mortgaged to secure credit facilities aggregating to Rs.868.000 Millions granted by the Bank to the Borrowers:- List of facilities as per Annexure attached. Others: The Company's M/s M K U Armors Private Limited and M/s ART Infra Solutions Private Limited (Earlier name M/s A.R. Thermosets Private Limited) has undertaken corporate guarantee to secure repayment of various credit facility aggregating to Rs.868.000 Millions granted by the Bank to M K U Private Limited.
Short particulars of the property charged	Demand Promissory Note, Letter of Continuing Security, Composite Hypothecation Agreement of Goods, Machinery, Book Debts and other movables. Land and building situated at office no. 103 on 1st Floor of premises no 26/72-D, Birhana Road, Kanpur admeasuring 540.1 Sq. mtr. owned by M/s M K U Private. Limited. and bounded East- Rakba No. 267, West- Road, North- Kori Hospital, South- Boundary of Kori Hospital. 2- Land and building situated at Arazi No. 638 (admeasuring 0.389 Hect.) at Vill. Khajaupur, Kanpur Nagar lease hold rights owned by M/s MKU Private. Limited. and bounded as below:- East- Arazi No. 640 and 641, West- Chaka Road, North- Arazi No. 625 and 642, South- Arazi No. 636. 3- Land and building situated at Part of Arazi No. 625Ka (admeasuring 0.246 Hect.) at Vill. Khajaupur, Kanpur lease hold rights owned by M/s MKU (Private)Limited. and bounded as below:- East- Arazi No. 640 and 642, West- Passage, North- Land of Gaon Sabha South- Arazi No. 638 and 639 4- All that piece and parcel of land and buildings situated at C-14, UPSIDC Industrial Area, Rooma, Kanpur admeasuring 2222 sq. mtr., owned by M/s M K U Armors (P) Limited, bounded as below:- East- 18 meter wide road no. 3, West- Open Land, North- Plot No. C-13, South- Road No.13 5- All that piece and parcel of land and buildings situated at Bungalow No.13, Gandhi Gram, Kanpur, built on Plot No. 7 part of arazi no. 4 at Deheli Sujanpur, Kanpur admeasuring 1750 square yards owned by Shri. Gopal Krishana Gupta and Smt. Kiran Gupta, Bounded as below:- East- 30 Feet Road, West- Property No. 12 owned by Shri Kailash Nath Tandon, North- 60 Feet Road, South- 30 Feet Road 6- Land and building situated at D-20, First Floor, Defence Colony, New Delhi admeasuring 333.33 square yards in the name of Shri. Neeraj Gupta and Smt. Nikita Gupta and bounded as below:- East- Main Road, West- Service Lane, North- Plot No. D-19, South- Plot No. D-21
Date of latest modification prior to the present modification	28.06.2011
Particulars of the present modification	The various credit facilities granted by the bank has now been enhanced from Rs.748.000 Millions to Rs.868.000 Millions Therefore, total amount of charge secured against hypothecation of entire current assets, fixed assets, stocks, book debts, shall now also be collaterally secured by equitable mortgage of immovable properties (as per column no. 15) etc. of the borrower has now been enhanced from Rs.748.000 Millions to Rs.868.000 Millions

Fixed Assets:

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

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.68
UK Pound	1	Rs.85.12
Euro	1	Rs.69.38

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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.