MIRA INFORM REPORT

Report Date :

10.08.2012

IDENTIFICATION DETAILS

Name :	PRECISION CAMSHAFTS LIMITED
Registered Office :	E-102/ 103, MIDC, Akkalkot Road, Solapur-413006, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.06.1992
Com. Reg. No.:	11-067126
Capital Investment / Paid-up Capital :	Rs.30.921 Millions
CIN No.: [Company Identification No.]	U24231PN1992PLC067126
TAN No.: [Tax Deduction & Collection Account No.]	PNEP07666B
PAN No.: [Permanent Account No.]	AABCP1086B
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Automobile Components.
No. of Employees :	1500 (Approximately) ( In Office + In Factory)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2700000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears a subject dip in the profitability of the company during 2011. Financial position appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered 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	TERM LOAN : CRISIL BBB-
Rating Explanation	Moderate credit risk
Date	14.11.2011

Rating Agency Name	CRISIL
Rating	BANK GUARANTEE : CRISIL A3
Rating Explanation	Moderate degree of safety
Date	14.11.2011

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. Satish Katti
Designation :	Assistant Manager
Contact No.:	91-9049006093
Date :	09.08.2012

LOCATIONS

Registered Office :	E-102/ 103, MIDC, Akkalkot Road, Solapur-413006, Maharashtra, India
Tel. No.:	91-217-3295433/4/5
Mobile No.:	91-9049006093 (Mr. Satish Katti)
Fax No.:	91-217-2653398
E-Mail :	info@pclindia.in sales@pclindia.in admin@pclindia.in accounts@pclindia.in
Website :	www.pclindia.in
Location :	Owned
Factory 1 :	E-90, MIDC, Akkalkot Road, Solapur, Maharashtra, India
Location :	Leased
Factory 2 :	D-5, MIDC, Chincholi, Solapur-413255, Maharashtra, India
Tel. No.:	91-217-3295430/1/2
Fax No.:	91-217-2357645
Location :	Leased

DIRECTORS

As on 09.09.2011

Name :	Mr. Yatin S Shah
Designation :	Managing Director
Address :	51, Sarvodaya HSG, Society, Horgi Road, Solapur-412002, Maharashtra, India
Date of Birth/Age :	26.10.1961
Qualification :	B. Com, MBA
Experience :	25 Years
Date of Appointment :	08.06.1992
DIN No.:	00318140
Voter ID No.:	MT/37/216/372439
Name :	Mr. Jayant Vasudeo Aradhye
Designation :	Director
Address :	Omkar, 8183/ 2B, Railway Lines, Solapur-413001, Maharashtra, India
Date of Birth/Age :	07.06.1941
Date of Appointment :	09.12.2006
DIN No.:	00409341
Voter ID No.:	MT/37/216/0159518
Name :	Mr. Mahesh Janardhan Risbud
Designation :	Director
Address :	Annapoorna, 1034, Shivajinagar, Pune-411016, Maharashtra, India
Date of Birth/Age :	21.07.1952
Date of Appointment :	27.03.2008
DIN No.:	00089817
Name :	Mr. Pradeep Chandrakant Bandivadekar
Designation :	Nominee director
Address :	7, Shakutal, Sahitya Sahavas, M G Kalekar Road, Bandra(E), Mumbai-400051, Maharashtra, India
Date of Birth/Age :	06.02.1961
Date of Appointment :	26.07.2008
DIN No.:	00059330
Voter ID No.:	UZV0550037
Name :	Mr. Ravindra Rangnath Joshi
Designation :	Whole-time director
Address :	17, Model Colony, Jule Solapur, Solapur – 413004, Maharashtra, India
Date of Birth/Age :	04.10.1964
Date of Appointment :	30.09.2010
DIN No.:	03338134

KEY EXECUTIVES

Name :	Mr. Satish Katti
Designation :	Assistant Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 09.09.2011

Names of Shareholders	No. of Shares
Yatin Subhash Shah	33189
Subhash Raoji Shah	19740
Urmila Subhash Shah	10063
Dr Suhasini Yatin Shah	20966
Maneesh Jayant Aradhye	8179
Dr Sunita Jayant Aradhye	4085
Jayant Vasudeo Aradhye	56010
Mrs Rama Maneesh Aradhye	3480
Arvind Ganesh Chitale	67520
NSDL A/c Tata Capital Limited	80394
Dr Manjiri Vinayak Chitale	1460
Vijay Vasudeo Aradhye	1000
Dr Vinayak Chitale	200
Yeshwant Shankar Kelkar	1000
Anil Wamanrao Mansabdar	1200
Kedar Vijay Aradhye	148
Mahendra Mohan Deosthali	287
Sudhanshu Gangadhar Joshi	287
Total	309208

As on 09.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	21.84
Bodies corporate	26.00
Directors or relatives of Directors	50.36
Other top fifty shareholders	1.80
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Automobile Components.
Exports :
Products :	· Automobile Components
Countries :	· Germany · China · European Countries
Terms :
Selling :	L/C, Cash and Credit (30 days and 60 days)
Purchasing :	Cash and Credit (30 days and 60 days)

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Camshaft Casting	Nos.	N.A.	9,780,000	# 7,933,224
Camshafts	Nos.	N.A.	1,020,000	1,015,163
Chills	Nos.	N.A.	250,000	--
Tappets	Nos.	N.A.	140,000	--

Notes:

1. In terms of Notification No 477(E) dt.25th July 1991, issued by Ministry of Industry, Department Of Industrial Development, the Company’s products have been exempted from industrial licensing. Accordingly disclosure requirements concerning Licensed Capacity are not applicable.

2. Installed capacity is as certified by Management and relied upon by Auditors.

3. # Out of above 1,002,104 ( 331,465) castings have been captively consumed.

4. The difference in reconciliation of quantitative figures for opening stock, production, sales and closing stock is due to rejections/scrap.

5. Figures in brackets pertain to the previous year.

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

· BMW

· General Motors

· Mercedes

· Porsche

· Maruti Suzuki

· MAN

· Force

· Simpson Motors

· Leewon Precision

· Musashi

· Escorts

· Arrow Specialties Inc.

· Ford

· TATA

· New Holland

· Sonalika Int4ernational

· Avtec

· Eicher

· Mahindra

· Hyundai

· Indian Railway

No. of Employees :

1500 (Approximately) ( In Office + In Factory)

Bankers :

• Bank of India, Subash Chowk Branch, 142, Mauraji Peth, Solapur-413001, Maharashtra, India

• Bank of Baroda, Solapur Main Branch, Chati Galli, West Mangalwar Peth, Solapur-413002, Maharashtra, India

• Bank of India and Bank of Baroda, Pune MID Corporate Branch, 1162/6, Shivaji Nagar, Pune University Road, Pune – 411005, Maharashtra, India

• Bank of India, Malad West Branch, S V Road, Opposite Nataraj Market, Malad West, Mumbai - 400064,, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loans Banks Secured	539.345	524.650
Working Capital Loans Banks Secured	98.493	92.188
Loans Taken For Vehicles Secured	3.341	6.215
Total	641.179	623.053

(A) (Secured by exclusive first charge on present and future fixed assets of the Company and hypothecation of book debts and stocks by reciprocal charge to the bankers for PCL Unit I and II. Secured by way of first charge and pari passu charge by bankers by way of hypothecation of present and future moveable fixed assets and equitable mortgage on immoveable property of 100% EOU Unit. And personal guarantee of directors [excluding independent and nominee directors] (Repayment due within one year Rs. 148.787 Millions [Previous Year Rs. 77.215 Millions)

(B) Rs. 98.495 Millions consists of Rs 10.060 Millions towards Overdraft against Fixed Deposit and Rs 88.434 Millions towards Cash Credit and Packing Credit. (Secured by exclusive first charge on present and future fixed assets of the Company and hypothecation of book debts and stocks by reciprocal charge to the bankers for subject Unit I and II. Secured by way of first charge and pari passu charge by bankers by way of hypothecation of present and future moveable fixed assets and equitable mortgage on immoveable property of 100% EOU Unit. and personal guarantee of directors [excluding independent and nominee directors]

(D) (Secured against hypothecation of Vehicles) (Repayment due within one year Rs. 2.534 Millions [Previous Year Rs. 1930 Millions])

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans Directors Unsecured	3.075	3.975
Fixed Deposits Unsecured	46.478	49.165
Other Debt Unsecured	0.000	0.017
Total	49.553	53.157

Notes:

(A) (Due within One year Rs. 1.475 Millions [Previous Year Rs. 1.600 Millions])

(B) (Due within One year Rs. 10.050 Millions [Previous Year Rs.7.784 Millions])

Banking Relations :	--
Auditors :
Name :	S R Batliboi and company Chartered Accountants
Address :	C-401, 4^th Floor, Panchshil Tech Park, Yerwada, Pune-411006, Maharashtra, India
PAN No.:	AALFS0506L
Associates:	Tata Capital Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7,75,000	Equity Shares	Rs. 100/- Each	Rs.77.500 Millions
21,25,000	Preference Shares	Rs. 100/- Each	Rs.212.500 Millions
	Total		Rs.290.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,09,208	Equity Shares	Rs. 100/- Each	Rs.30.921 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		30.921	119.382	211.690
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		639.839	497.830	288.978
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		670.760	617.212	500.668
LOAN FUNDS
1] Secured Loans		641.179	623.053	385.459
2] Unsecured Loans		49.553	53.157	72.091
TOTAL BORROWING		690.732	676.210	457.550
DEFERRED TAX LIABILITIES		60.870	51.012	44.486
TOTAL		1422.362	1344.434	1002.704
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		932.751	784.604	703.586
Capital work-in-progress		40.728	127.095	64.458
INVESTMENT		0.125	0.125	0.125
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	199.413	101.700	88.509
	Sundry Debtors	520.496	416.718	232.015
	Cash & Bank Balances	243.656	282.459	154.577
	Other Current Assets	5.127	4.627	18.685
	Loans & Advances	91.518	98.889	61.168
Total Current Assets		1060.210	904.393	554.954
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	398.133	340.893	168.785
	Other Current Liabilities	192.213	96.364	92.451
	Provisions	21.106	34.526	59.183
Total Current Liabilities		611.452	471.783	320.419
Net Current Assets		448.758	432.610	234.535
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1422.362	1344.434	1002.704

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2730.599	1919.459	1539.152
		Other Income	42.237	25.565	22.424
		TOTAL (A)	2772.836	1945.024	1561.576
Less	EXPENSES
		Consumption Materials Changes Inventories	1409.714	827.344	1279.986
		Manufacturing Service Costs	370.383	226.894
		Contract Cost	63.649	59.796
		Employee Related Expenses	277.836	174.272
		Administrative Selling Other Expenses	201.382	203.425
		Prior Period Items	(6.931)	(16.502)
		TOTAL (B)	2316.033	1475.229	1279.986
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		456.803	469.795	281.590
Less	FINANCIAL EXPENSES (D)		87.580	68.009	68.499
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		369.223	401.786	213.091
Less/ Add	DEPRECIATION/ AMORTISATION (F)		100.738	92.676	85.778
	PROFIT BEFORE TAX (E-F) (G)		268.485	309.110	127.313
Less	TAX (H)		85.581	35.827	42.199
	PROFIT AFTER TAX (G-H) (I)		182.904	273.283	85.114
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1846.844	1236.220	951.931
	TOTAL EARNINGS		1846.844	1236.220	951.931
	IMPORTS
		Raw Materials	0.000	6.375	35.587
		Stores & Spares	17.096	8.845	11.204
		Capital Goods	40.385	93.810	55.396
	TOTAL IMPORTS		57.481	109.030	102.187
	Earnings Per Share (Rs.)		557.00	777.00	--

Particulars	31.03.2012
Sales Turnover (Approximately)	Above 3000.000

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

The above information has been parted by Mr. Satish Katti.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.60	14.05	5.45
Net Profit Margin (PBT/Sales)	(%)	9.83	16.10	8.27
Return on Total Assets (PBT/Total Assets}	(%)	13.47	18.30	8.27
Return on Investment (ROI) (PBT/Networth)		0.40	0.50	0.25
Debt Equity Ratio (Total Liability/Networth)		1.94	1.86	1.55
Current Ratio (Current Asset/Current Liability)		1.73	1.92	1.73

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITOR DETAILS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditor
- Due Small Micro Enterprises	37.779	33.933	15.408
- Due Others	360.354	306.960	153.377
	398.133	340.893	168.785

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	Yes
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	Yes
34]	External Agency Rating, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24231PN1992PLC067126
Name of the company	Precision Camshafts Limited
Address of the registered office or of the principal place of business in India of the company	E 102/103 MIDC Akkalkot Road, Solapur-413006, Maharashtra, India E-mail Id : info@pclindia.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10227408
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Bank of India and Bank of Baroda, Pune MID Corporate Branch, 1162/6, Shivaji Nagar, Pune University Road, Pune – 411005, Maharashtra, India E-mail Id : MCB.Pune@bankofindia.co.in
Nature of instrument creating charge	Indenture of Mortgage
Date of instrument Creating the charge	13.01.2012
Amount secured by the charge	Rs.1235.400 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Separate rates of interest to each limit as per sanction letter of both the banks Terms of Repayment Separate terms of repayment as per sanction letter of both the banks Margin Separate terms of margin as per sanction letter of both the banks Extent and Operation of the charge Charge will be operated till the loan is repaid in full along with interest and charges thereon.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari passu charge for Term Loan and second pari passu charge of Working Capital and Non Fund based limits by way of Registered Indenture of Mortgage on following immovable properties Leasehold Land bearing Plot No D-5 admeasuring about 62725 sq metres situated in the Chincholi Industrial Area Taluka Mohol Dist Solapur with Buildings and structures thereon about 24108.50 sq mtrs. Leasehold Land bearing Plot No E-90 admeasuring about 11520 sq metres situated in the Solapur Industrial Area Tal: North Solapur with Buildings and structures thereon about 5218.29 sq mtrs. Leasehold Land bearing Plot No E-102 admeasuring about 4000 sq metres situated in the Solapur Industrial Area Tal: North Solapur with Buildings and structures thereon about 271.90 sq mtrs. Leasehold Land bearing Plot No E-103 admeasuring about 4728 sq metres situated in the Solapur Industrial Area Tal: North Solapur with Buildings and structures thereon about 1449.35 sq mtrs. First Pari passu charge on the movable plant and machinery situated at aforesaid plots, premises and second pari passu charge on Current Assets, Book debts bills receivables etc. for Term Loan Facility by way of Registered indenture of Mortgage. First Pari passu charge on the Current assets, Book debts, bills receivables etc. and Second Pari passu charge on the movable plant and machinery situated at aforesaid plots, premises for Working Capital and Non Fund based facilities by way of Registered indenture of Mortgage.
Date of instrument modifying the charge	14.06.2010
Particulars of the present modification	Total charge consolidated to Rs. 1235.400 Millions and Additional security created by way of Indenture of Mortgage.

FINANCIAL RESULTS:

The turnover of the company grew by 42.56 % over the last financial year however the profitability before tax as percentage of turnover decreased from 15.24 % for the last financial year to 9.58 % for the current year. The profit before tax reduced by 5.67 % over that of the last year.

OPERATIONS:

PCL I AND II

There was not much change in the total number of camshafts (machined and as cast) sold during the year 2010-2011 over the last year as capacity utilization in Foundry (Unit II) and Machine shop (Unit I) has been over 90% for the last two years and the expansion activities were confined to the EOU divisiononly.

The production at the Foundry division (PCL II) reduced by a marginal 3.9 % due to shifting of TML parts to the EOU foundry. However the sales to Unit I increased by 5 % while export sales increased by 85 % . Total sales from Unit II increase by 5.77 % over the last financial year. The following new items were developed and serial production started: SA Facelift, Kappa CVVT In & Ex for Leewon Precision, Korea.

The sale of machined components in the domestic market did not show much change. The increased sale to tractor and car segment was compensated by the reduced sale to Indian Railways because of their shifting from DLW Varanasi to DMW Patiala.

PCL EOU Division

Foundry 3 at EOU became operational in February 2010 with a capacity to manufacture 130,000 castings per month. This was enhanced to reach 200,000 per month by December 2010 and further enhanced to produce 240,000 camshafts per month in March 2011.

The total number of camshaft castings produced during the year 2010-2011 from EOU Division increased by 78.38 % over the last year. Number of camshafts exported increased by 70 % while camshafts sold in DTA market increased by 206 % .

The total sales from EOU division increased by 64.15% with increase in exports by 56.4 % while increase in DTA sale by 206%.

CONTINGENT LIABILITIES NOT PROVIDED FOR (AS ON 31.03.2011)

(i) The Collector of Stamps, Solapur has demanded payment of stamp duty of Rs. 3.178 Millions (Previous Year Rs. 3.178 Millions) for cancellation and issue of equity shares after amalgamation of Precision Valvetrain Components Limited (PVPL) with the Company in year 2007-2008. The Company has filed an appeal against demand made by the Collector of Stamps, Solapur with Controlling Revenue Authority, Pune.

(ii) The Company is in appeal and the application is pending with “Hon’ble High Court of Judicature Appellate” against the claim made under Employees provident Funds and Miscellaneous Provision Act, 1952 for Rs. 2.423 Millions (Previous Year 2.423 Millions). The Company has deposited an amount of Rs. 1.212 Millions (Previous Year 1.212 Millions) under protest which has been shown under Loans and Advances.

(iii) The Company has filed an appeal with Custom Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai claiming refund of service tax of Rs. 0.675 Million (Previous Year Rs. 0.675 Million) paid on behalf of foreign sale commission agents.

(iv) The Additional Commissioner of sales tax has vide order dated March 30, 2009 disallowed set-off of Rs. 0.423 Million (Previous Year Rs 0.423 Million) availed under rule 42AD of the Sales Tax Rules for the financial year 2003-2004. The Company has filed an appeal against the same with the Sales Tax Tribunal (Mumbai).

(v) The Assistant Commissioner of Income Tax, Solapur has disallowed deduction under section 10B of the Income Tax Act, 1961 and raised demand against company for Rs. 2.890 Millions (Previous Year Rs. 2.890 Millions) vide order dated December 30, 2009 for the financial year 2006-2007. Out of this the Company has deposited Rs. 1.595 Millions (Previous Year Rs. 1.445 Millions) with the Income tax authorities. However, the Company has made an appeal with the Commissioner of Income Tax (Appeals) Pune and the order of CIT (Appeals) is awaited.

(vi) Claims against company not acknowledged as debt amounted to Rs. 0.355 (Previous Year Rs. 0.355 Millions).

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.55.17
UK Pound	1	Rs.86.43
Euro	1	Rs.68.27

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.