MIRA INFORM REPORT

Report Date :

01.12.2012

IDENTIFICATION DETAILS

Name :	GSP CROP SCIENCE PRIVATE LIMITED
Formerly Known As :	GUJARAT SUPERPHOSPHATE INDUSTRIES PRIVATE LIMITED
Registered Office :	404, Lalita Complex, 352/3, Rasala Road, Near Jain Temple, Navrangpura, Ahmedabad - 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.02.1985
Com. Reg. No.:	04-007641
Capital Investment / Paid-up Capital :	Rs. 250.000 Millions
CIN No.: [Company Identification No.]	U24120GJ1985PTC007641
TAN No.: [Tax Deduction & Collection Account No.]	AHMG00810F
PAN No.: [Permanent Account No.]	AAACG7984Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pesticides and Insecticides
No. of Employees :	650 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1700000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The latest financial is missing from government department. However, from the previous year the company performance seems to be good. Financially appears well. 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Term Loan BBB-
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	September 16, 2011

Rating Agency Name	CRISIL
Rating	Bank Guarantee
Rating Explanation	Moderate degree of safety. It carry higher credit risk.
Date	September 16, 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. Atish Shah
Designation :	General Manager in Finance
Contact No.:	91-9687652934
Date :	30.11.2012

LOCATIONS

Registered Office :	404, Lalita Complex, 352/3, Rasala Road, Near Jain Temple, Navrangpura, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79-26466580 / 26440493 / 26449936
Fax No.:	91-79-26448872 / 22901047
E-Mail :	atishshah@gspcrop.co.in saumil@gspcorp.in alkesh@gspcorp.in info@gspcorp.in bpiad1@sanchanet.in bpi@ad1.vsnl.net.in gspabhijit@gspcrop.co.in saumil_gsp@yahoo.co.in gspcrop@vsnl.net
Website :	www.gspcorp.in
Area :	2000 sq. fts.
Location :	Owned
Corporate Office :	1^st Floor, Amar Chambers, Relief Road, Kalupur, Ahmedabad –380002, Gujarat, India
Tel. No.:	91-79-27430299 / 27489081
Fax No.:	91-79-27435431
Location :	Owned
Factory 1 :	Plot No. 101 to 103, GVMM Industrial Estate, Odhav Road, Ahmedabad – 382415, Gujarat, India
Tel. No.:	91-79-22900927 / 22900528 / 22873927 / 22871030
Fax No.:	91-79-22902526
E-Mail :	gujaratsuper@satyam.net.in
Area :	50000 sq. fts.
Location :	Owned
Factory 2 :	551, Phase II, GIDC Kathwada, O/S Odhav Octroi Naka, Ahmedabad – 382430, Gujarat, India
Tel No. :	91-79-22902556 / 22900451
Fax No.:	91-79-22901047
Factory 3:	Plot No. 1, GIDC Estate Nandesari-391340, District Baroda, Gujarat, India
Tel No.:	91-265-2841517
Fax No.:	91-265-2840117

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Bhavesh Vrajmohan Shah
Designation :	Joint Managing director [w.e.f. 01.01.2011]
Address :	35 Manikamal Co-operative Society, Sal Hospital road, Near Surdhara Circle, Thaltej, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	30.09.1971
Date of Appointment :	01.03.1994
DIN No.:	00094669
Name :	Mr. Kenal Vrajmohan Shah
Designation :	Managing director [w.e.f. 01.01.2011]
Address :	11 Manikamal Society, VI-2 Surdhara Circle, Thaltej, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	31.10.1969
Date of Appointment :	01.03.1994
DIN No.:	00094439
Name :	Mr. Vrajmohan Ramanlal Shah
Designation :	Director
Address :	4/A, Rekhra Park Society, Vijaynagar Cross Road, Naranpura, Ahmedabad – 380013, Gujarat, India
Date of Birth/Age :	03.12.1941
Date of Appointment :	12.11.1985
DIN No.:	00094656

KEY EXECUTIVES

Name :	Mr. Atish Shah
Designation :	General Manager in Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Vrajmohan Shah	341750
V.R. Shah HUF	194140
Vrajmohan R. Shah Joint V.C. Shah, H.V. Shah and Joint Others	50
Vilasben V. Shah	176250
Kenal V. Shah	586710
Kenal V. Shah HUF	52190
Falguni K. Shah	56125
Bhavesh V. Shah	583520
Bhavesh V. Shah HUF	52186
Deepa B. Shah	56125
V R Shah and V V Shah	267630
V V Shah and V R Shah	133320
Bhavesh V Shah (HUF) Joint Mohammed Anees	1
Bhavesh V Shah (HUF) Joint Mohammed Arif	1
Bhavesh V Shah (HUF) Joint with Mohammed Yunus	1
Bhavesh V Shah (HUF) Joint Mohammed Munaf	1
Total	2500000

AS ON 28.09.2012

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pesticides and Insecticides
Products :	Ø Insecticides Ø Fungicides Ø Herbicides Ø Public Health Formulations Ø Seed Treatment Chemicals
Exports :
Products :	Pesticides and Insecticides
Countries :	Ø Latin America Ø Australia Ø Gulf Countries
Imports :
Products :	Raw Material
Countries :	Ø China Ø Japan
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Pesticides MT/KL	Weight	N.A.	N.A.	14780

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

650 (Approximately)

Bankers :

Ø Axis Bank Limited, Trishul 3^rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad – 380006, Gujarat, India

Ø State Bank of India, SPL Commercial Branch, Opposite Gandhidham Railway Station, Ahmedabad – 380009, Gujarat, India

Facilities :

Total – Rs. 600.000 Millions (State Bank of India)

Total – Rs. 150.000 Millions (Axis Bank Limited)

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	166.051	230.567
Working capital loans banks secured	602.947	456.168
Loans taken for vehicles secured	5.753	9.222
Total	774.751	695.957
Note: 1. Working Capital Facilities secured by Hypothecation of R.M.,F.G., Stock in Process, Packing Materials, Book Debts, Outstanding Monies, Receivable Claims etc. and Equitable Mortgage Of Factory Land and Building and by personal guarantee of Directors and Corporate Guarantee Of Bharat Pesticides Industries Private Limited and Universal Chemical Industries. 2. Term Loan Secured by Hypothecation of Machineries and personal Guarantee of Directors Corporate Guarantee Of Bharat Pesticides Industries Private Limited and Universal Chemical Ind. 3. Vehicle Loans Secured by Hypothecation of Vehicles. 4. Outstanding balance for facilities covered under item 1 and 2 are including interest.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans directors unsecured	28.235	13.971
Other debt unsecured	76.409	25.185
Total	104.644	39.156

Banking Relations :	--
Financial Institution :	3i Infotech Trusteeship Services Limited, 3^rd to 6^th Floor, International Infotech Park, Tower No. 5, Vashi Railway Station Complex, Vashi, navi Mumbai – 400703, Maharashtra, India
Auditors :
Name :	Borkar and Muzumdar Chartered Accountants
Address :	B - 408 Premium House Near Gandhigram Railway Station Ashram Road Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26580401 / 26580412
E-Mail :	gunvant_kotadia@yahoo.co.in
Income-tax PAN of auditor or auditor's firm :	AAAFD3194J
Associates :	Ø Bharat Pesticides Industries Private Limited Ø GSP Uruguay Sociedad Anonima
Partnership firm in which directors are interested :	Ø Universal Chemicals Industries Ø Universal Bio Science Ø Universal Crop Care

CAPITAL STRUCTURE

AFTER 28.09.2012

Authorised Capital : Rs. 500.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 250.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs. 100/- each	Rs. 300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,500,000	Equity Share	Rs.100/- each	Rs. 250.000 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		250.000	250.000	99.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		182.932	123.013	167.137
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		432.932	373.013	266.137
LOAN FUNDS
1] Secured Loans		774.751	695.957	241.009
2] Unsecured Loans		104.644	39.156	32.280
TOTAL BORROWING		879.395	735.113	273.289
DEFERRED TAX LIABILITIES		3.263	11.890	0.000
TOTAL		1315.590	1120.016	539.426
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		441.237	478.778	88.288
Capital work-in-progress		8.005	16.189	147.776
INVESTMENT		0.046	0.040	0.034
DEFERREX TAX ASSETS		0.000	0.000	0.646
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	815.661	744.251	375.822
	Sundry Debtors	494.049	427.234	214.718
	Cash & Bank Balances	137.654	80.136	61.702
	Other Current Assets	0.242	0.204	0.028
	Loans & Advances	103.531	104.755	75.149
Total Current Assets		1551.137	1356.580	727.419
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	567.004	546.102	273.177
	Other Current Liabilities	113.175	183.147	102.932
	Provisions	4.656	2.322	48.628
Total Current Liabilities		684.835	731.571	424.737
Net Current Assets		866.302	625.009	302.682
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1315.590	1120.016	539.426

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		2363.190	1492.383
		Other Income		5.510	11.564
		TOTAL (A)	3262.800	2368.700	1503.947
Less	EXPENSES
		Raw Material Consumed			983.024
		Manufacturing and Other Expenses			448.695
		Increase/ (Decrease) in stock			(114.846)
		TOTAL (B)	3078.723	2150.880	1316.873
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial expense)	(Including Financial expense)	187.074
Less	FINANCIAL EXPENSES (D)				35.841
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		184.077	217.820	151.233
Less/ Add	DEPRECIATION/ AMORTISATION (F)		94.764	53.357	14.153
	PROFIT BEFORE TAX (E-F) (G)		89.313	164.463	137.080
Less	TAX (H)		29.394	58.587	46.912
	PROFIT AFTER TAX (G-H) (I)		59.919	105.876	90.168
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.801	0.925	0.757
Less	APPROPRIATIONS
		Transfer to General Reserve	60.000	100.000	90.000
	BALANCE CARRIED TO THE B/S		6.720	6.801	0.925
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	0.637	0.228	0.006
	IMPORTS
		Raw Materials	1.041	0.900	0.485
		Interest and Other Expenses	0.009	0.005	0.002
		Foreign Traveling Expenses	0.006	0.003	0.001
		Capital Goods	0.000	0.011	0.003
	TOTAL IMPORTS		1.056	0.919	0.491
	Earnings Per Share (Rs.)
	Basic		27.00	43.00	91.00
	Diluted		27.00	105.00	0.00

Particulars	31.03.2012
Sales Turnover (Approximately)	3360.000

Expected Sales ( 2012-2013 ) : Rs. 4300.000 Millions

The above information has been parted by Mr. Atish Shah (General Manager in Finance)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.84	4.47	6.00
Net Profit Margin (PBT/Sales)	(%)	N.A.	6.96	9.19
Return on Total Assets (PBT/Total Assets}	(%)	4.48	8.96	16.81
Return on Investment (ROI) (PBT/Networth)		0.21	0.44	0.52
Debt Equity Ratio (Total Liability/Networth)		3.61	3.93	2.62
Current Ratio (Current Asset/Current Liability)		2.26	1.85	1.72

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Creditors due small micro enterprises	0.333	4.627	6.929
Creditors due others	566.671	541.475	266.248
Sundry creditors	567.004	546.102	273.177

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	Yes
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	No
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

PERFORMANCE AND OPERATIONS

The Company has registered sales turnover during the year to the tune of Rs 3262.800 Millions as compared to Rs.2368.700 Millions in the previous year.

FUTURE OUTLOOK

Indian economy is largely dependent on performance of the agriculture sector. Governments, both at central and state, give preference and support to this sector. With rising inflation, agriculture sector is required to perform in excellent way.

Availability of agriculture land in India is in ample. So, that, the company is of the view that there is a tremendous growth opportunity in this sector. With proper education for the use of pesticides by farmers on the fields will give better result and bumper crop. Their marketing teams are active in their efforts and visit farms on regular basis and give live demonstration for the use of their products to the farmers. Similarly farmers meeting are arranged to give product knowledge by slide shows.

There are efforts to produce low cost product for the benefits of poor farmers.

The Company continues to focus on its products and hope to further expand marketing base, both in India and outside.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24120GJ1985PTC007641
Name of the company	GSP CROP SCIENCE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	404, Lalita Complex, 352/3, Rasala Road, Near Jain Temple, Navrangpura, Ahmedabad - 380009, Gujarat, India Email ID: saumil@gspcrop.in
This form is for	Creation of charge
Type of charge	Others (Entire Current Assets and All Movable Fixed Assets)
Particular of charge holder	Axis Bank Limited, Trishul 3rd Floor Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad – 380006, Gujarat, India Email ID: uma1.shankar@axisbank.com CIN No.: L65110GJ1993PLC020769
Nature of description of the instrument creating or modifying the charge	Composite Hypothecation Deed (Current Assets, Movables, Plant and Machinery) dt.26.05.2012
Date of instrument Creating the charge	26.05.2012
Amount secured by the charge	Rs. 330.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As specified in schedule i of the composite hypothecation deed dated 26.05.2012 attached herewith. Terms of Repayment As per terms of sanction letter Margin As specified in schedule i of the composite hypothecation deed dated 26.05.2012 attached herewith. Extent and Operation of the charge Pari passu first charge on the entire current assets of the company, both present and future, along with other WC lenders and pari passu second charge on all movable assets of the company excluding those assets which are exclusively charged to lenders/fis so as to secure the loan amount, interest, penal interest, if any, and other costs and charges.
Short particulars of the property charged	Primary security: pari passu first charge on entire current assets of the company, both present and future, along with other wc lenders. Collateral security: pari passu second charge on all movable fixed assets of the company excluding those assets are exclusively charged to lenders/fis. Both primary and collateral security is more particularly described in schedule ii of the composite hypothecation deed dated 26.05.2012 which is attached here with.

CONTINGENT LIABILITIES IN RESPECT OF:

A. A differential duty of Rs. 1.611 Million claimed by Kathwada unit was disallowed by the Excise Department. The Central Excise Commissioner imposed equivalent penalty Rs.1.611 Million on Company and Rs. 0.100 Million penalty on director and Rs. 0.050 Million on concerned employee in charge.

As per Excise Department total of Rs. 1.761 Million is payable along with interest. The matter is in appeal pending before the CESTAT, Ahmedabad.

B. A Show Cause Notice was issued by the Excise Department in the matter of material for Job work found at Kathwada Unit. In July 2010 the Dy. Commissioner of Excise passed order demanding Excise Duty of Rs. 0.473 Million for the material seized and imposed equivalent penalty of Rs.0.473 Million and further imposed redemption fine of Rs.0.500 Million. A penalty of Rs.0.025 Million was also imposed on director. The Company has filed appeal before the CESTAT, Ahmedabad.

As per the advice of the legal counsel, at the moment the Company does not foresee any liability towards penalty and interest.

C. The SSIB Nhava sheva Custom, Maharastra, has demanded additional anti dumping duty of Rs.13.700 Millions on import of DETCL from Malaysia. The Company is in possession of certificate of Origin issued by Federation of Malaysian manufacturers which is disputed by the custom Authorities. Further, legal process will commence by the Company on receipt of Shawcause Notice by the Department. The Company expects favourable judgement on discussion with legal authority.

FIXED ASSETS

Ø Leasehold / Freehold Land

Ø Bore Well

Ø Laboratory Equipments

Ø Plant and Machineries

Ø Electric Installation

Ø Factory Equipments

Ø Factory Shed

Ø Office Building

Ø Office Equipments

Ø Furniture and Fixtures

Ø Computer

Ø Vehicles

Ø Technical Know How

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. 54.53
UK Pound	1	Rs. 87.48
Euro	1	Rs. 70.89

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.