MIRA INFORM REPORT

Report Date :

18.08.2012

IDENTIFICATION DETAILS

Name :	NARMADA GELATINES LIMITED
Formally Known As :	SHAW WALLACE GELATINES LIMITED
Registered Office :	"Caravs", Room No. 28, Civil Lines, Jabalpur – 482001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.01.1961
Com. Reg. No.:	10-016023
Capital Investment / Paid-up Capital :	Rs.40.331 Millions
CIN No.: [Company Identification No.]	L24111MP1961PLC016023
TAN No.: [Tax Deduction & Collection Account No.]	JBPN00151E
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Gelatine, Ossein and Di-calcium Phosphate.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (57)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 2600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financially company is doing well. Trade relations are reported to be fair. Business is active. Payment are reported to be regular and as per commitment. The company can be considered for normal 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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.

LOCATIONS

Registered Office :	"Caravs", Room No. 28, Civil Lines, Jabalpur – 482001, Madhya Pradesh, India
Tel. No.:	91-761-2678627
Fax No.:	Not Available
E-Mail :	ngljbp@rediffmail.com swgdel@vsnl.net swgchn@vsnl.com nglkolkata@rediffmail.com
Website :	http://www.narmadagelatines.com
Factory :	Village Meerganj, Bheraghat Road, Jabalpur – 482 001, Madhya Pradesh, India
Tel. No.:	91-761-2830433 / 432 / 518
Fax No.:	91-761-2830516
E-Mail :	swgljbp@sancharnet.in
Sales Office :	Located at · New Delhi · Chennai · Kolkata

DIRECTORS

As on 31.03.2012

Name :	Justice Gulab Gupta
Designation :	Director
Date of Birth/Age :	01.03.1933
Qualification :	B.A., LLB from Allahabad University and LLM. from U.S.A.
Name :	Mr. Deepak Chaudhuri
Designation :	Director
Name :	Mr. Mohan Chandra Pant
Designation :	Director
Name :	Mr. Sanjeev Jain
Designation :	Director
Date of Birth/Age :	05.12.1961
Qualification :	B.Com, ACA
Name :	Mr. Ravindra K. Raje
Designation :	Director
Name :	Mr. Ashok K. Kapur
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Mahesh Verma
Designation :	Company Secretary and Compliance Officer
AUDIT COMMITTEE
Name :	Justice Gulab Gupta
Designation :	Chairman
Name :	Mr. Deepak Chaudhuri
Designation :	Member
Name :	Mr. Mohan Chandra Pant
Designation :	Member
Name :	Mr. Ravindra K. Raje
Designation :	Member
REMUNERATION COMMITTEE
Name :	Justice Gulab Gupta
Designation :	Chairman
Name :	Mr. Deepak Chaudhuri
Designation :	Member
Name :	Mr. Mohan Chandra Pant
Designation :	Member
INVESTORS' GRIEVANCE COMMITTEE
Name :	Mr. Mohan Chandra Pant
Designation :	Chairman
Name :	Justice Gulab Gupta
Designation :	Member
Name :	Mr. Ashok K. Kapur
Designation :	Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	3,024,793	75.00
Sub Total	3,024,793	75.00
Total shareholding of Promoter and Promoter Group (A)	3,024,793	75.00
(B) Public Shareholding
(1) Institutions
Insurance Companies	350	0.01
Sub Total	350	0.01
(2) Non-Institutions
Bodies Corporate	269,540	6.68
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	564,734	14.00
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	142,246	3.53
Any Others (Specify)	31,395	0.78
Non Resident Indians	20,965	0.52
Clearing Members	10,430	0.26
Sub Total	1,007,915	24.99
Total Public shareholding (B)	1,008,265	25.00
Total (A)+(B)	4,033,058	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	4,033,058	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Gelatine, Ossein and Di-calcium Phosphate.

Products :

Product Description	Item Code No.:
Gelatine	35030020
Di-calcium Phosphate	2302.00

PRODUCTION STATUS

As on 31.03.2012

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Gelatine	MT	NA	3000	2492

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Union Bank of India

· ICICI Bank Limited

· State Bank of India

· HDFC Bank Limited

· Axis flank Limited

· Allahabad Bank

· IDBI Bank Limited

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Short-term Borrowing
Bank Overdraft (Secured against Fixed Deposits)	22.530	6.564
Total	22.530	6.564

Banking Relations :	--
Auditors :
Name :	T. R. Chadha and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India
Ultimate Holding Company :	· Jumbo World Holdings Limited
Holding Company :	· Alfamont (Mauritius) Limited
Related Parties :	· MPIL Corporation Limited
Group Companies :	· Aasman Management Services Private Ltd · Camry International FZE · Dandvati Investments and Trading Company Private Limited · Derby Electricals (India) Private Limited · GWL Properties Limited · Harshit Finlease and Investments Private Limited · Jerom Trading S Investment Private Limited · Jumbo Electronics Company Limited (LLC), · Jumbo Electronics Corporation Private Limited · Jumbo Investments Limited · Jumbo World Holdings (India) Private Limited · Firestorm Electronics Corporation Private Limited · MPIL Corporation Limited · Orson Video Private Limited · Phonegarage.com India Private Limited · Primo Enterprises Private Limited · SMN Engineers Limited · SoIvin International Limited · Starfire Investments Limited · Wizer Advertising Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,00,00,000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
1,00,00,000	9% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.100.000 Millions
			Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40,33,058	Equity Shares	Rs.10/- each	Rs.40.331 Millions
	Add : Forfeited Shares		Rs.0.007 Millions
			Rs.40.338 Millions

Notes:

(1) Of the above Equity Shares :

(a) 5,96,020 Equity Shares(*) were allotted as fully paid up by way of bonus shares by capitalisation of Capital Redemption Reserve and General Reserve in 1994-95.

(b) 46,650 Equity Shares (*) were allotted as fully paid up for consideration other than cash, pursuant to a contract.

*some of these shares (numbers not ascertainable since shares are in demat form) stand cancelled as per the Scheme of arrangement approved by Calcutta High Court on 6th May, 2003.

(2) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

Particulars	31st March 2012		31st March 2011
	No. of Shares	Amount Rs. In Millions	No. of Shares	Amount Rs. In Millions
Equity shares with voting rights - Number of shares (Rs. 10/- per share)	4033058	40.331	4033058	40.331

(3) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs.4.50 (31 March 2011: Rs.4.00).

(4) Details of shares held by the holding company, the ultimate holding company, their subsidiaries and associates:

Particulars	Equity shares with voting rights and Numbers of Shares
	31st March 2012	31st March 2011
Alfamont ( Mauritius) Limited, the holding company Jumbo World Holdings Limited, the ultimate holding company Dandvati Investments and Trading Company Private Limited, the holding company Jumbo World Holdings Limited, the ultimate holding company	3024793 Nil	3024793 Nil

(5) Equity shareholders holding more than 5% of equity shares along with the number of equity shares held is as given below:

Name of the Shareholder	31st March 2012		31st March 2011
	%	Number of Shares	%	Number of Shares
Alfamont ( Mauritius) Limited Dandvati Investments and Trading Company Private Limited	75	3024793	75	3024793

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		40.338	40.338	40.338
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		608.100	524.382	450.097
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		648.438	564.720	490.435
LOAN FUNDS
1] Secured Loans		22.530	6.564	3.942
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		22.530	6.564	3.942
DEFERRED TAX LIABILITIES		35.813	33.133	33.499
TOTAL		706.781	604.417	527.876
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		225.516	205.568	208.401
Capital work-in-progress		8.217	0.577	1.657
INVESTMENT		45.000	65.003	55.003
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	255.948	173.980	118.113
	Sundry Debtors	140.849	132.842	123.336
	Cash & Bank Balances	121.886	84.651	74.597
	Other Current Assets	4.973	2.620	1.853
	Loans & Advances	30.746	36.591	32.232
Total Current Assets		554.402	430.684	350.131
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	65.768	47.717	31.270
	Other Current Liabilities	20.143	15.021	29.681
	Provisions	40.443	34.677	26.365
Total Current Liabilities		126.354	97.415	87.316
Net Current Assets		428.048	333.269	262.815
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		706.781	604.417	527.876

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1067.146	909.756	837.462
		Other Income	21.902	13.033	14.007
		TOTAL (A)	1089.048	922.789	851.469
Less	EXPENSES
		Cost of Materials Consumed	607.319	487.495	712.286
		Employees benefits expense	90.190	80.565
		Other expenses	282.011	213.284
		Change in Inventories of Finished goods and Work-in Progress	(63.716)	(17.693)
		Extraordinary Item	(5.194)	0.000
		TOTAL (B)	910.610	763.651	712.286
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		178.438	159.138	139.183
Less	FINANCIAL EXPENSES (D)		1.711	1.107	0.995
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		176.727	158.031	138.188
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.414	17.285	15.749
	PROFIT BEFORE TAX (E-F) (G)		159.313	140.746	122.439
Less	TAX (H)		48.668	46.043	40.651
	PROFIT AFTER TAX (G-H) (I)		110.645	94.703	81.788
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	41.616	22.807	45.941
	TOTAL EARNINGS		41.616	64.423	45.941
	IMPORTS
		Raw Materials	2.152	5.724	4.257
		Stores & Spares	2.059	0.000	0.000
	TOTAL IMPORTS		4.211	5.724	4.257
	Earnings Per Share (Rs.)		27.43	23.48	20.28

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	10.16	10.26	9.61
Net Profit Margin (PBT/Sales)	(%)	14.93	15.47	14.62
Return on Total Assets (PBT/Total Assets}	(%)	20.43	22.12	21.92
Return on Investment (ROI) (PBT/Networth)		0.25	0.25	0.25
Debt Equity Ratio (Total Liability/Networth)		0.23	0.18	0.19
Current Ratio (Current Asset/Current Liability)		4.39	4.42	4.01

LOCAL AGENCY FURTHER INFORMATION

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter 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	--
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	No

ECONOMY AND COMPANY OVERVIEW

Indian economy has had an estimated growth of 6.9% in 2011-12 as compared to 8.4% in 2010-11. The manufacturing sector is likely to show a growth of only 3.9% in GDP during 2011-12 as against the growth of 7.6% in 2010-11. High inflation due to persistently high crude petroleum prices throughout the year played spoilsport, oscillating within a band of 8% to 3%, this led to several rounds of interest rate hikes by the Reserve Bank to curb inflation and prevent overheating of the economy.

On the operational front, the company was able to maintain profit margins amidst rising input costs as a result of comprehensive planning and forecasting strategy for procurement of raw materials. The company managed to mitigate the impact of this increase in costs through proactive dialogue and price negotiation with the customers, overall, the year was very challenging in terms of Input cost inflation and managing it.

FINANCIAL HIGHLIGHTS

The Company recorded another year of growth, both in revenue and profits. Gross sales increased to Rs. 1131.400 Millions from Rs. 964.800 Millions in the previous year registering a growth of 17.3%, Earnings before interest, taxes and depreciation increased to Rs 173.200 Millions from 158.100 Millions in 2010-11, an increase of 3.6%. Profit after tax was at Rs 110.600 Millions for 2011-12 as compared to Rs 94.700 Millions In the previous year, up by 16.8%. Consequently, the Earnings per share increased to Rs. 27.43 as compared to Rs 23.48 in 2010-11.

The strength of Company''s business strategies and competence in execution were demonstrated in its performance during 2011-12, when it not only weathered the storm unleashed by the global economic meltdown and inflationary Indian economy but successfully delivered consistent growth.

OUTLOOK

The company''s actions to improve productivity and quality of its products are In process. Barring any unforeseen circumstances, the company should continue to perform well.

To meet the increased demand, the company has enhanced the annual installed capacity of gelatine plant from 2400 MT to 3000 MT. The enhanced production has come into effect from January 2012.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The company is engaged in the business of manufacture and sale of gelatin and ossein and the by-product di-calcium phosphate which broadly form part of one product group and hence a single business segment. However based on geographical factors, reportable segment have been identified as exports sales and domestic sales.

CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF :

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
(a) Counter Guarantees to Bank	0.600	0.650
(b) Claims not acknowledged as debts : 1. Excise Duty 2. Income Tax	106.419 10.649	103.881 7.127

FIXED ASSETS:

· Freehold land

· Buildings

· Plant and Machinery

· Furniture and Fittings

· Computer and Office Equipments

· Electrical Installation

· Vehicles

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE, 2012

(Rs. In Millions)

Sr. No.	Particulars	Quarter Ended
		30.06.2012
		(Reviewed)
1	(a) Net Sales / Income from operations	279.100
	(b) Other Operating Income	1.500
	Total Operating Income	280.600
2	Expenditure
	(a) (Increase)/Decrease in Stock in Trade and Work in progress	17.600
	(b) Consumption of raw materials	124.700
	(c) Employees Cost	19.300
	(d) Depreciation	4.500
	(e) Power & Fuel	58.000
	(f) Other Expenditure	20.100
	Total	244.200
3	Profit from operations before other income, interest & exceptional item (1-2)	36.400
4	Other Income	2.200
5	Profit before interest & exceptional items (3+4)	38.600
6	Interest	0.300
7	Profit after interest but before exceptional items (5-6)	38.300
8	Exceptional Items	--
9	Profit / (Loss) from Ordinary Activities before tax (7+8)	38.300
10	Tax expense
	(a) Provision for Income Tax	12.300
	(b) Provision for Earlier Year Tax	--
	(c) Provision for Deferred Tax	--
	Total	12.300
11	Net Profit / (Loss) from Ordinary Activities after tax (9-10)	26.000
12	Extra Ordinary Item / Prior Period Expenses / (Income) (Net of tax expense)	--
13	Net Profit / (Loss) for the period (11-12)	26.000
14	Paid up Equity Share Capital (Face Value of Rs.10/- each)	40.300
15	Reserves excluding revaluation reserves	--
16	Earning per share (Rs.)
	(a) basic and diluted EPS before extraordinary items (not to be annualised)	6.45
	(b) basic and diluted EPS after extraordinary items (not to be annualised)	6.45
17	Public Shareholding
	No. of Shares	1008265
	Percentage of Share Holding	25.00
18	Promoter and Promoter Group Shareholding
	a) Pledged / Encumbered
	Number of Shares	--
	Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	--
	Percentage of Shares (as a % of the total share capital of the Company)	--
	(b) Non- Encumbered
	Number of Shares	3024793
	Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00
	Percentage of Shares (as a % of the total share capital of the Company)	75.00

SEGMENT WISE RESULTS FOR THE YEAR / QUARTER ENDED 30^TH JUNE, 2012

(Rs. In Millions)

Particulars	Quarter Ended
	30.06.2012
	(Reviewed)
Segment Revenue
(net sale/income from each segment)
Export	22.800
Domestic	257.700
Total Segment Revenue	280.500
Segment Results
(Profit / (loss) before tax, interest income & interest expense)
Export	4.300
Domestic	34.300
Total Segment Results	38.600
Unallocated Expenditure	0.300
Exceptional Items	--
Profit Before Tax	38.300

Notes:

1. The statutory Auditor have carried out a Limited Review of the results for the quarter ended 30^th June, 2012 as required under clause 41 of the Listing Agreement.

2. The above financial results of the company were reviewed by the Audit Committee, approved and taken on record by the Board of Director at its meeting held on 14^th August, 2012.

3. Provision for employee benefits for the current period has been made on an estimated basis. Actual provision required for the full year shall be considered at the end of the year, in accordance with the revised Accounting Standard AS-15(Employees Benefit)

4. The company is engaged in the business of manufacture and sale of Gelatine, Ossein and DCP for industrial application which broadly form part of one product and hence a single business segment. However, based on geographical factors, reportable segment have been identified as exports sales and domestics sales, The segment beginning – 2 Received – 2, Disposed off – 2, Pending – 2

5. Previous year ‘s figures have been regrouped / reclassifies whenever necessary.

WEBSITE DETAILS:

HISTORY

Subject (Erstwhile Shaw Wallace Gelatines Ltd) was set up in 1961. The company is strategically located in the Central Indian State of Madhya Pradesh and has convenient access to its main and essential inputs of crushed bones, acid, lime and good quality water.

Subject, has pioneered the manufacture of ossein and gelatin in India and is today a frontrunner in India's Gelatine Industry meeting exacting standards of various users worldwide.

They at Narmada have successfully applied sophisticated technology to ensure Quality at each stage of its manufacturing process so that their products meet international quality standards and is commercially worthy of a broad spectrum of usages in the dynamic domestic and international markets.

They are

· having a Government recognized in house R and D facility

· A professional marketing set up with stock points / warehouses in major Indian metros

· An all India purchase set up tied up with backward integrated units

· Have a dominant position in the domestic market

AWARDS

Some of the landmarks awards they have obtained

· 1975 Award for Ossein Export by Capexil

· 1992 National award for Import substitute by the Government of India

· 1994 Export performance award from Madhya Pradesh Industrial Organisation

· 1995 Highest Gelatine export by capexil

· 1998 National Award for outstanding contribution in Environment to an employee

· 2001 Capexil Award for Gelatine Export

· 2004 Capexil Award for Gelatine Export

CERTIFICATIONS

· ISO 9000:2001 by BVQI

· HACCP by DNV

· EDQM

· HALAL - Jamait - E - ULAMA

· KOSHER

· Drug Licence - Govt. of MP

· GMP -Govt. of MP

OVERVIEW

Gelatine is one of the most versatile biological products with a wide range of physical and chemical properties. It is a natural animal protein composed of various essential amino acids required for human nutrition.

Gelatine is derived from the selective hydrolysis and extraction of protein collagen found mainly in the connective tissues of animals.

Collagen is the principal organic component of animal bones. In India bovine bones, are the conventional raw materials used in gelatine manufacture. The formation of water soluble gelatine may be regarded as hydration and hydrolysis of collagen. Gelatine molecules represent various sized units, each a fragment of the collagenous chain.

Gelatine is not a single chemical entity. It is a mixture of fractions different principally in molecular sizes. These fractions are composed entirely of amino acid radicals joined together by peptide linkages.

Gelatine contains the essential elements of carbon, hydrogen, nitrogen and oxygen. It contains all the amino acids which are essential for mammalian nutrition with the exception of tryptophane. It has a direct contribution to a wide range of products in the pharmaceutical, edible, photographic and other technical industries.

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 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.55.70
UK Pound	1	Rs.87.55
Euro	1	Rs.68.85

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		57

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	-

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