MIRA INFORM REPORT

Report Date :

09.08.2012

IDENTIFICATION DETAILS

Name :	FURNACE FABRICA (INDIA) LIMITED
Registered Office :	Opposite Milma Dairy, Koonamthai, Edapally, Kochi - 682024, Kerala
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.12.1985
Com. Reg. No.:	09-026752
Capital Investment / Paid-up Capital :	Rs.200.000 Millions
CIN No.: [Company Identification No.]	U28123KL1985PLC026752
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is an Engineering and Construction Company Engaged in Turnkey Project.
No. of Employees :	300 (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 3500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. The company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A- (Long term rating)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk.
Date	08.08.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Gopal Krishnan
Designation :	Senior Manager
Contact No.:	91-22-27612524
Date :	08.08.2012

LOCATIONS

Registered Office :	Opposite Milma Dairy, Koonamthai, Edapally, Kochi - 682024, Kerala, India
Tel. No.:	91-484-2543044
Fax No.:	91-484-2540131
E-Mail :	kpswamy@furnacefabrica.com furfab@vsnl.com
Website :	http://www.furnacefabrica.com
Corporate Office/ EPC Centre/ Works:	C/16-3, TTC, MIDC Area, Pawane Village, Thane Belapur Road, Navi Mumbai -400705, Maharashtra, India
Tel. No.:	91-22-27612799/ 2805/ 27684149/ 6224/ 67931700
Fax No.:	91-22-27612056
Email:	furfab@bom3.vsnl.net info@furnacefabrica.com
Branch :	97, Kailash Hills, Lower Ground, New Delhi - 110065, India
Tel. No.:	91-11-26831702
Fax No.:	91-11-26823165
Email:	ffildelhi@bol.net.in
Kandla Works :	Plot No.:518 to 521, New Area, Kandla Special Economic Zone, Gandhidham, Kutch-370230, Gujarat, India
Tel. No.:	91-2836-253525
Fax No.:	91-2836-253525
Email:	info@furnacefabrica.com
Overseas Office:	Located At: Middle East Zambia Sudan

DIRECTORS

As on: 29.09.2011

Name :	Mr. Badri Prasad
Designation :	Chairman Cum Managing Director
Address :	802, Progressive Co-operative Housing Society, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India
Date of Birth/Age :	07.06.1942
Qualification :	M.Tech, PHD in Metallurgy
Date of Appointment :	03.12.1985
DIN No.:	00329275
Name :	Mr. Basheeruddin Abdul Rehman
Designation :	Managing Director
Address :	2-Zenith Park, Denoar Farm Road, Mumbai - 400088, Maharashtra, India
Date of Birth/Age :	07.05.1941
Qualification :	B.E. Mechanical
Date of Appointment :	03.12.1985
DIN No.:	00307766
Name :	Mr. Thampi K Thrivikram
Designation :	Director
Address :	203, Building 13, Indra Darshan Off Link Road, Andheri (West), Mumbai -400053, Maharashtra, India
Date of Birth/Age :	15.08.1927
Date of Appointment :	31.03.2000
Name :	Mr. Shashikiran Badri Prasad
Designation :	Director
Address :	802, Progressive Co-operative Housing Society, Sector -15, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India
Date of Birth/Age :	12.02.1979
Qualification :	B.E. Mechanical, MBA (Finance)
Date of Appointment :	29.09.2007
DIN No.:	00329392
Name :	Mr. Ibrahim Ali
Designation :	Director
Address :	10 E, Old Fatehpura, Udaipur - 313001, Rajasthan, India
Date of Birth/Age :	02.06.1934
Date of Appointment :	22.12.2005
Name :	Mr. Raiz Basheeruddin
Designation :	Director
Address :	2-Zenith Park, Denoar Farm Road, Mumbai - 400088, Maharashtra, India
Date of Birth/Age :	11.07.1979
Qualification :	B.E. Mechanical, MBA (Finance)
Date of Appointment :	01.10.2009
DIN No.:	01235524

KEY EXECUTIVES

Name :	Mr. Gopal Krishnan
Designation :	Senior Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2011

Names of Shareholders	No. of Equity Shares
Badri Prasad	1500000
Basheeruddin Abdul Rehman	1500000
Mohammed Shajahan	100000
Dr. Sanam	600000
Shashikiran Badri Prasad	1200000
Archana Badri Prasad	800000
Raiz Basheeruddin	1300000
Nezee Basheeruddin	1500000
Sudha Badri Prasad	1000000
Ramesh Chandra	500000
Total	10000000

Names of Shareholders	No. of Preference Shares
Badri Prasad	100000
Basheeruddin Abdul Rehman	50000
Dr. Sanam	150000
Shashikiran Badri Prasad	200000
Archana Badri Prasad	100000
Raiz Basheeruddin	200000
Nezee Basheeruddin	100000
Sudha Badri Prasad	100000
Total	1000000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is an Engineering and Construction Company Engaged in Turnkey Project.
Exports :
Products :	· Turnkey Project
Countries :	· Zambia · Turkey · Qatar · Sudan · Saudi · Arabia
Imports :
Products :	· Parts
Countries :	· Germany · China
Terms :
Selling :	L/C and Credit (30 days)
Purchasing :	L/C and Credit (30 days)

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

300 (Approximately)

Bankers :

• Axis Bank Limited, MCMC at 5^th Floor, Chicago Plaza, Rajaji Road, Ernakulam-682035, Kerala, India
• State Bank of India, Commercial Branch, S T Road, Chembur, Mumbai-400071, Maharashtra, India
• Kotak Mahindra Bank Limited
• Export Import Bank of India
• Standard Chartered Bank, 19, Rajaji Salai, Chennai - 600001, Tamilnadu, India
• The South Indian Bank Limited, Plot No.62A, Sector 29, Vashi, Mumbai – 400703, Maharashtra, India
• Centurion Bank of Punjab Limited, Durga Niwasm G Road, Panaji, Goa - 403001, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	204.123	90.300
Foreign currency loans banks secured	178.910	0.000
Working capital loans banks secured	293.204	144.330
Loans taken for vehicles secured	15.461	19.220
Total	691.698	253.850
Note: (A) Secured against charge on movable and immovable properties of the company at Kandla SEZ, both present and future, and personal guarantee of the directors. Term Loan form Kotak Mahindra Bank is Secured by hypothecation of crane. The amount repayable within one year is Rs. 49.667 Millions. (B) Secured by hypothecation of crane. (C) Secured against hypothecation of raw material, stock-in-process, finished goods, book debts and charge on the immovable properties of the company other than charge on movable and immovable properties of the company at Kandla SEZ both present and future and personal guarantee of the directors. The amount repayable within one year is Rs. 293.204 Millions. (D) Net of unmatured H.P. Charges Rs.1.547 Millions and Secured by hypothecation of vehicles and hydra cranes. The amount payable within one year is Rs. 9.984 Millions.
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans unsecured	201.261	0.000
Loans directors unsecured	0.000	50.000
Total	201.261	50.000

Banking Relations :	--
Auditors :
Name :	Nisar and Kumar Company Chartered Accountants
Address :	A/17 Everest Tardeo Road, Tardeo, Mumbai – 400034, Maharashtra, India
PAN No.:	AACFN8765B
Subsidiaries :	Furnace Fabrica Company Zambia Limited, Zambia Furnace Fabrica FZC, UAE BEGG, Cousland Holding Limited, UK Pacific Refractories Limited
Step-down Subsidiaries :	Begg Cousland and Company Limited Begg Cousland Private Limited
Companies over which Director/relatives are able to exercise significant Influence :	· Polyceramics Industries · Furnace Fabrica Company Zambia Limited, Zambia

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions
1000000	2% Redeemable Preference Shares	Rs.100/- each	Rs.100.000 Millions
	Total		Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
1000000	2% Redeemable Preference Shares	Rs.100/- each	Rs.100.000 Millions
	Total		Rs.200.000 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		200.000	100.000	100.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		675.304	475.957	409.681
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		875.304	575.957	509.681
LOAN FUNDS
1] Secured Loans		691.698	253.850	161.885
2] Unsecured Loans		201.261	50.000	0.000
TOTAL BORROWING		892.959	303.850	161.885
DEFERRED TAX LIABILITIES		44.384	36.475	23.320
TOTAL		1812.647	916.282	694.886
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		547.514	360.297	303.000
Capital work-in-progress		293.532	96.242	1.925
INVESTMENT		489.167	164.972	82.633
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1443.050	115.468	84.515
	Sundry Debtors	109.975	814.032	766.039
	Cash & Bank Balances	268.024	336.446	287.759
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	622.077	501.456	286.869
Total Current Assets		2443.126	1767.402	1425.182
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	617.810	488.140	367.047
	Other Current Liabilities	901.337	678.826	587.795
	Provisions	441.545	305.665	163.012
Total Current Liabilities		1960.692	1472.631	1117.854
Net Current Assets		482.434	294.771	307.328
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1812.647	916.282	694.886

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3077.916	2745.776	2496.386
		Other Income	101.664	72.348	82.586
		TOTAL (A)	3179.580	2818.124	2578.972
Less	EXPENSES
		Consumption materials changes inventories	1550.722	1518.498
		Manufacturing service costs	186.956	154.352
		Contract cost	431.334	408.823
		Employee related expenses	142.181	158.373
		Administrative selling other expenses	342.362	237.224
		Prior period items before tax	(0.411)	0.000
		TOTAL (B)	2653.144	2477.270	2240.775
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		526.436	340.854	338.197
Less	FINANCIAL EXPENSES (D)		91.330	47.080	59.934
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		435.106	293.774	278.263
Less/ Add	DEPRECIATION/ AMORTISATION (F)		37.457	9.140	18.435
	PROFIT BEFORE TAX (E-F) (G)		397.649	284.634	259.828
Less	TAX (I)		139.998	101.363	89.202
	PROFIT AFTER TAX (G-I) (J)		257.651	183.271	170.626
Less	APPROPRIATIONS
		Interim Dividend	0.000	50.000	0.000
		Proposed Dividend	50.000	50.000	10.000
		Corporate Dividend Tax	8.304	16.995	1.699
		Adjustment During the Year	0.000	0.000	0.567
	BALANCE CARRIED TO THE B/S		199.347	66.276	158.360
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	34.131	120.900	83.403
		Overseas Contracts	0.000	173.547	399.926
	TOTAL EARNINGS		34.131	294.447	483.329
	IMPORTS
		Raw Materials	742.566	NA	NA
		Capital Goods	272.919	NA	NA
	TOTAL IMPORTS		1015.485	NA	NA
	Earnings Per Share (Rs.)		25.77	18.33	17.06

Particulars	31.03.2012
Sales Turnover (Approximately)	2500.000

Expected Sales (2012-2013): Rs.3500.000 Millions (Business Expansion)

The above information has been parted by Mr. Gopal Krishnan

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.10	6.50	6.62
Net Profit Margin (PBT/Sales)	(%)	12.92	10.37	10.41
Return on Total Assets (PBT/Total Assets}	(%)	13.30	13.38	15.03
Return on Investment (ROI) (PBT/Networth)		0.45	0.49	0.51
Debt Equity Ratio (Total Liability/Networth)		3.26	3.08	2.51
Current Ratio (Current Asset/Current Liability)		1.25	1.20	1.27

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Creditor due others	617.810	488.140	267.047
Total	617.810	488.140	267.047

Sr. No.	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	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

REVIEW OF OPERATIONS:

The Company continued to register all time high turnover in sales and other income of Rs. 3180.300 Millions as against Rs. 2818.100 Millions. The export turnover is Rs. 574.400 Millions which constituted 18.66% of the total turnover of Rs. 3077.900 Millions. The Profit before Tax is Rs. 39.76 Millions which is 39.71% higher as compared to last year of Rs. 284.600 Millions.

The company has commenced commercial production after successfully commissioning the Workshop for manufacturing heavy equipments and waste heat recovery boilers at Kandla Special Economy Zone in Gujarat. The facility has been financed through Rupee Term Loan from Export Import Bank of India. The turnover of the Workshop at SEZ during the year is Rs. 285.400 Millions of which Rs. 275.400 Millions is export turnover.

The order received from Vedanta Aluminium Limited for 3x3300 TPD Calcination plant has almost been completed and the commissioning of the plant is kept on hold by the client. The orders received from Vedanta Aluminium Limited and Sterlite Industries Limited for Long Distance Conveyor package; and Sulphuric acid plant and Gas cleaning Plant, Inter-Heat Exhanger and Waste heat Recovery Boiler were kept on hold by the client. The turnover of the company would have further increased had the above projects were not on hold.

The orders received from Indian Oil Corporation Limited for Composite work for Trim crude Heater and Crude Oil storage at Haldia refinery; Engineers India Private Limited for Supply of Pressure vessels for MRPL; Hindustan Petroleum Corporation Limited for Composite Civil and Mechanical works at their Mumbai refinery; Bharat Petroleum Corporation Limited for Construction of buildings, roads and associated works for CISF facility at Kochi refinery were completed during the year. The orders received from Sesa Goa Limited for Mechanical and Civil works of Blast Furnace, Coke Oven, Sinter Plant and Hindustan Zinc Limited for Design, Supply and erection of wet gas cleaning systems at Debari, Rajasthan are in steady progress.

The export project received from Konkola Copper Mines Plc., Zambia for DM water Plant; Ruashi Holding Pty. Limited, South Africa for Construction of Sulphuric Acid/ Sulphur dioxide Plant at Congo; Makina VE Kimya Endustrisi Kurumu General Directorate, Turkey for Oleum production Plant at Turkey; Raez Sulphate Factory, Kingdom of Saudi Arabia for Sulphuric Acid Plant at Jubail are in advanced stage of completion.

The company has won further domestic orders from Grasim Industries Limited for Sulphuric Acid Plants at Gujarat and Karnataka; Hindustan Zinc Limited for Sulphuric Acid, Gas Cleaning and Roaster, Waste Heat Recovery Boiler and Raw material handling plant at Dariba, Rajasthan; Linde Engineering Private Limited for Sulphur Recovery Unit at HPCL, Mumbai; and Export orders from Maroc Phosphor, Morocco for Fuser and Sulphur Liquid Filtration Plant and Qatar Industrial Manufacturing Company, Qatar for Sulphuric Acid Plant. These orders are under execution and are in steady progress. The order book position is around Rs.15200.000 Millions. More high value orders are expected in the near future.

The fabrication workshop has been certified by ISO 9001:2008, HSC 14000:18000, ASME for U Stamp, IBR and CCOE. The workshop has shown good performance.

The Company has expanded its asset base and purchased Equipments like Tippers, Earth Movers, Excavators, Trailors, 400, 200, 100, 55 Tonne Cranes and other equipments in addition to setting up of the Workshop Facility at Kandla SEZ. The financing arrangement for the 400 Tonne Liebherr Lattice Boom Crawler Crane has been through Foreign Currency Term Loan from Export Import Bank of India.

Note:

The Registered Office of the company has been shifted from 506-507 Swastik Chamberss T Road, Chembur, Mumbai - 400071, Maharashtra, India to the present address w.e.f. 24.02.2010

CONTINGENT LIABILITY:

(Rs. In Millions)

Particular	31.03.2011	31.03.2010
Guarantees issued by the Banks	1489.482	1070.496
Letters of Credit opened by the Bank	590.789	407.695
Claims in respect of indirect taxes.	0.447	0.447

Note:

a) Contingencies provided for in accordance with AS 29 issued by the Institute of Chartered Accountants of India: Rs. Nil (P.Y. Rs. Nil).

b) Contracts remaining to be executed on capital account and not provided for, are estimated at Rs.311.259 Millions (P.Y – Rs 206.600 Millions).

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U28123KL1985PLC026752
Name of the company	FURNACE FABRICA (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Opposite Milma Dairy, Koonamthai, Edapally, Kochi - 682024, Kerala, India E-mail: kpswamy@furnacefabrica.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10241105
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Standard Chartered Bank, 19, Rajaji Salai, Chennai - 600001, Tamilnadu, India E-mail: Nilesh.Babar@sc.com
Nature of instrument creating charge	Supplemental to Unattested Memorandum of Hypothecation
Date of instrument Creating the charge	21.03.2012
Amount secured by the charge	Rs.720.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As agreed by and with the Bank from time to time. Terms of Repayment As agreed by and with the Bank from time to time. Margin As applicable, if any. Extent and Operation of the charge The Bank is having first and exclusive charge on the security given by the Company, as described in sr. no. 15 below.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	A) Hypothecation by way of first and exclusive charge on all present and future book debts, outstandings moneys receivable, claims and bills which are now due and owing or which may at any time during the continuance of this security become due and as more particularly described in attached agreement. B) Hypothecation by way of first and exclusive charge on all present and future stock in trade consisting of raw materials, consumables, finished goods, goods in process of manufacturing and other merchandise whatsoever, being movable properties in relation to or procured for fulfillment of the Project, and as more particularly described in attached agreement.
Particulars of the present modification	At the request of the borrower, the Bank provided inner limit of working capital for Rs.300.000 Millions in respect of Tunisia Project within the overall existing limit of Rs.720.000 Millions on the existing security, as described in Sr.No.15 and Sch A of agreement. There are no change in the existing charge amount.

FIXED ASSETS:

• Land
• Temporary Structures
• Plant and Machinery
• Motor Vehicles
• Electrical and Office Equipment
• 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 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.55.15
UK Pound	1	Rs.86.00
Euro	1	Rs.68.31

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		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

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.