MIRA INFORM REPORT

Report Date :

06.12.2012

IDENTIFICATION DETAILS

Name :	ALFA LAVAL INDIA LIMITED
Registered Office :	Mumbai-Pune Road, Dapodi, Pune–411 012, Maharashtra
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	15.12.1937
Com. Reg. No.:	11-002732
Capital Investment / Paid-up Capital :	Rs.181.600 Millions
CIN No.: [Company Identification No.]	U29299PN1937PLC002732
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Process Vessels, Fermenters, Reactors.
No. of Employees :	12600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (73)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 19580000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Alfa Laval Group, a multinational operations. It is a well established and reputed company having excellent track. Financial position is good. Fundamentals are strong and healthy. Trade relations are fair. Payments are regular and as per commitments. The company can be considered good for any 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

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	AA+ (Long Term Rating)
Rating Explanation	High degree of safety to carry very low credit risk.
Date	September 2012

Rating Agency Name	CRISIL
Rating	A1+
Rating Explanation	Very strong degree of safety. It carry lowest credit risk.
Date	September 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.

LOCATIONS

Registered Office / Factory 1 :	Mumbai-Pune Road, Dapodi, Pune–411 012, Maharashtra, India
Tel. No.:	91-20-27107100/ 66119100/ 27147721/ 7728/ 776321/ 797711
Fax No.:	91-20-27147711/ 779479
E-Mail :	alil.inverstorservices@alfalaval.com info@alfalaval.co.in cp.balakrishnan@alfalaval.com
Website :	http://www.alfalaval.com
Factory 2 :	Gat No.30 to 33 and 74 to 82, Sarole Veer Road, Sarole – 412 205, Taluka Bhor, District Pune, Maharashtra, India
Tel. No.:	91-2113-282367
Fax No.:	91-2113-282301
E-Mail :	india.info@alfalaval.com
Factory 3 :	E-7/ E-8, M.I.D.C. Estate, Satara - 415 004, Maharashtra, India
Tel. No.:	91-2162-244503
Fax No.:	91-2162-244268
Head Office / Sales and Corporate Office :	Office No. 301, Global Port Building Survey No. 45/1-10, Mumbai Bangalore Highway Baner Pune-411045, Maharashtra, India
Tel. No.:	91-20-67341100
Fax No.:	91-20-67341115
Customer Service Center :	Plot No. R-674, MIDC Rebale, TTC Industrial Area, Post Ghansoli, Navi Mumbai - 400 701, Maharashtra, India
Sales Office :	Located at: v Gujarat v Karnataka v Tamilnadu v West Bengal v Madhya Pradesh v Andhra Pradesh v Mumbai v New Delhi

DIRECTORS

AS ON 21.06.2012

Name :	Mr. Giuseppe Falciola
Designation :	Director
Address :	7, Via De Gasperi Milano, Vedano Al Lamro, Italy
Date of Birth/Age :	21.09.1942
Date of Appointment :	23.02.2006
Date of Cessation :	22.06.2012
DIN No.:	00533587
Name :	Mr. Jose Antonio Hernanz Arroyo
Designation :	Managing Director
Address :	13-3, Avenida De Torrelodones, Madrid, Torrelodones-Colonia, Spain-28250
Date of Birth/Age :	16.04.1952
Date of Appointment :	01.01.2010
PAN No.:	AEUPH8555B
DIN No.:	02848196

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29299PN1937PLC002732	ALFA LAVAL INDIA LIMITED	Managing director	01/02/2010	01/01/2010	Active	NO

Name :	Mr. Raymond John Field
Designation :	Director Appointed in Casual Vacancy
Address :	41 D, Pat Heung, Ha Che Tsuen, Yuen Long, Hong Kong, China
Date of Birth/Age :	11.05.1954
Date of Appointment :	27.07.2011
DIN No.:	00867545

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29299PN1937PLC002732	ALFA LAVAL INDIA LIMITED	Director	22/06/2012	27/10/2004	Active	NO

KEY EXECUTIVES

Name :	Mr. Viswanathan Chandrasekhar
Designation :	Company Secretary
Address :	C3/18 and 19, Salunke Vihar Road, Oxford Comforts, Wanowrie, Pune-411040, Maharashtra, India
Date of Birth/Age :	20.01.1958
Date of Appointment :	20.08.1993
PAN No.:	AANPC6399P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.06.2012

Note: Shareholder details file attached.

AS ON 21.06.2012

Equity Shares Break Up	Percentage of Holding
Nationalized or other banks	0.03
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	97.01
Bodies corporate	0.39
Other top fifty shareholders	0.66
Others	1.91
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Process Vessels, Fermenters, Reactors.

Products :

ITC Code	Product Descriptions
84211905	Decanters
84211910	Separators
841950	Heat Exchangers

GENERAL INFORMATION

No. of Employees :	12600 (Approximately)
Bankers :	v Bank of India v Standard Chartered Bank v Bank of Maharashtra v Industrial Development Bank of India Limited v The Hong Kong and Shanghai Banking Corporation Limited

Banking Relations :	--
Auditors :
Name :	S R Batliboi and Associates Chartered Accountant
Address :	C-401, Fourth Floor, Panchshil Tech Park, Yerwada, Pune-411006, Maharashtra, India
PAN No.:	AABFS3421N
Holding Company :	Alfa Laval Corporate AB Sweden
Ultimate Holding Company :	Alfa Laval AB Sweden
Fellow Subsidiaries :	Australia Alfa Laval Australia Pty Limited Belgium Alfa Laval Corporate AB Belgian Branch Brazil Alfa Laval Ltda Bulgaria Alfa Laval Limited Canada Alfa Laval Inc Greece Alfa Laval AEBE Hungary Alfa Laval Kft India · Alfa Laval Support Services Private Limited · Tranter India Private Limited Indonesia PT Alfa Laval Italy · Alfa Laval SpA · Astepo S.r.l · Alfa Laval Parma S.r.l Chile Alfa Laval S.A.C.I. China · Alfa Laval (China) Limited · Alfa Laval Flow Equipment (Kunshan) Company Limited · Alfa Laval (Jiangyin) Manufacturing Company Limited · Alfa Laval (Shanghai) Technologies Company · Wuxi MCD Gasket Company Limited Japan Alfa Laval KK South Korea Alfa Laval Korea Limited Czech Republic Alfa Laval Spol S.R.O. Malaysia Alfa Laval (Malaysia) Sdn Bhd Denmark · Alfa Laval Copenhagen A/S · Alfa Laval Tank Equipment A/S · Alfa Laval Kolding A/S · Alfa Laval Nakskov A/S · Alfa Laval Nordic A/S · Scandi Brew Netherlands · Alfa Laval Groningen B.V. · Alfa Laval Merco B.V. · Alfa Laval Benelux N.V-S.A. · Alfa Laval Benelux B.V. Finland · Alfa Laval Nordic OY · Alfa Laval Vantaa OY Norway Alfa Laval Nordic A/S France · Alfa Laval Vicarb SAS · Alfa Laval SAS · Alfa Laval Spiral SAS · Alfa Laval Moatti SAS · MCD SAS · Packinox SA Phillipines Alfa Laval Philippines Inc Poland · Alfa Laval Polska Sp. z. o. o · Alfa Laval Krakow Sp.z .o. o Germany Alfa Laval (Germany) Mid Europe GmbH Portugal Alfa Laval Portugal Ltda Qatar Alfa Laval Service Operations Qatar LLC Russia AO Alfa Laval Potok Singapore Alfa Laval Singapore Pte Limited South Africa Alfa Laval (Pty) Limited Spain Alfa Laval Iberia SA Sweden · Alfa Laval Tumba AB · Alfa Laval Treasury International AB · Alfa Laval Holding AB · Alfa Laval Lund AB · Alfa Laval Nordic AB · Alfa Laval (Thailand) Limited Taiwan Alfa Laval Taiwan Limited Thailand Alfa Laval Quality Moving AB Turkey Alfa Laval Makine Sanayii ve Ticaret Limited. Sti UAE Alfa Laval Middle East Limited United Kingdom · Alfa Laval Limited · Alfa Laval Pumps Limited USA · Alfa Laval Inc · Alfa Laval Thermal Inc · Alfa Laval Distribution Inc Venezuela Alfa Laval Venezolana S.A.

CAPITAL STRUCTURE

AS ON 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs. 200.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
18160567	Equity Shares	Rs.10/- each	Rs. 181.610 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18160483*	Equity Shares	Rs.10/- each	Rs. 181.600 Millions

NOTES

a) 441,845 9/10 (Previous year 441,845 9/10) equity shares of Rs.10 each have been allotted as fully paid up pursuant to contracts for consideration other than cash;

b) 29,988 (Previous year 29,988) equity shares of Rs.10 each have been allotted as fully paid up, pursuant to the right exercised by a lender of converting a part of the loan advanced by them to the Company;

c) 8,822,989 (Previous year 8,822,989) equity shares of Rs.10 each have been allotted as fully paid up Bonus shares by capitalization of general reserve, securities premium, capital reserve and export reserve.

* includes 16,120,281 (Previous year 16,120,281) Equity shares of Rs.10 each held by Alfa Laval Corporate AB, Sweden the Holding Company (Alfa Laval AB, the Ultimate Holding Company)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		181.600	181.600	181.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4715.020	4040.740	3593.070
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4896.620	4222.340	3774.670
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	46.060
TOTAL BORROWING		0.000	0.000	46.060
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4896.620	4222.340	3820.730
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1152.310	964.950	977.760
Capital work-in-progress		267.550	116.490	23.580
INVESTMENT		548.780	1305.510	1233.850
DEFERREX TAX ASSETS		141.930	82.360	32.890
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2377.050	1994.610	1759.940
	Sundry Debtors	2593.280	1980.990	1766.140
	Cash & Bank Balances	1075.160	522.710	395.050
	Other Current Assets	247.270	240.180	284.180
	Loans & Advances	1148.910	918.100	605.640
Total Current Assets		7441.670	5656.590	4810.950
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1959.560	1529.830	1221.520
	Other Current Liabilities	2216.180	1405.740	1294.670
	Provisions	479.880	967.990	742.110
Total Current Liabilities		4655.620	3903.560	3258.300
Net Current Assets		2786.050	1753.030	1552.650
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4896.620	4222.340	3820.730

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	11541.740	8360.340	8875.730
		Other Income	409.000	231.990	121.130
		TOTAL (A)	11950.740	8592.330	8996.860
Less	EXPENSES
		Consumption materials changes inventories	7003.720	4605.650	0.000
		Manufacturing service costs	687.820	495.650	6990.440
		Contract cost	231.530	137.990	0.000
		Employee related expenses	974.110	809.270	0.000
		Administrative selling other expenses	1009.400	753.280	0.000
		TOTAL (B)	9906.580	6801.840	6990.440
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2044.160	1790.490	2006.420
Less	FINANCIAL EXPENSES (D)		0.620	5.300	5.250
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2043.540	1785.190	2001.170
Less/ Add	DEPRECIATION/ AMORTISATION (F)		139.340	127.100	129.570
	PROFIT BEFORE TAX (E-F) (G)		1904.200	1658.090	1871.600
Less	TAX (H)		598.830	576.880	638.210
	PROFIT AFTER TAX (G-H) (I)		1305.370	1081.210	1233.390
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2218.740	1880.070	1301.850
Less	APPROPRIATIONS
		Transfer to General Reserve	131.000	109.000	124.000
		Dividend	544.810	544.810	454.010
		Tax on Dividend	86.280	88.730	77.160
	BALANCE CARRIED TO THE B/S		2762.020	2218.740	1880.070
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	4735.140	2609.150	NA
		Commission Earnings	2.300	3.360	NA
		Other Earnings	41.460	93.270	NA
	TOTAL EARNINGS		4778.900	2705.780	NA
	IMPORTS
		Raw Materials	2623.790	1600.020	NA
		Stores & Spares	210.040	196.120	NA
		Capital Goods	227.100	48.580	NA
	TOTAL IMPORTS		3060.930	1844.720	NA
	Earnings Per Share (Rs.)		71.88	59.54	67.92

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	10.92	12.58	13.70
Net Profit Margin (PBT/Sales)	(%)	16.50	19.83	21.08
Return on Total Assets (PBT/Total Assets}	(%)	21.80	24.73	32.33
Return on Investment (ROI) (PBT/Networth)		0.39	0.39	0.49
Debt Equity Ratio (Total Liability/Networth)		0.95	0.92	0.87
Current Ratio (Current Asset/Current Liability)		1.60	1.45	1.47

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	Yes
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)	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

NATURE OF OPERATIONS

Subject is engaged in the manufacture and sale of industrial equipment and process solutions. The Company sells high speed separators heat exchangers and flow equipment amongst other products besides offering process solutions to various industries.

OPERATIONS AND FINANCIAL RESULTS

In the wake of an uncertain business environment that pervaded during the year under review, the order intake, in the aggregate, moved past the 10 billion rupee mark to Rs 11,126.59 Millions (2010 : Rs9,052.87 Millions) registering an increase of about 23% over the previous year with some major orders from the Food industry and a very good flow of business from the Principals. The healthy order backlog at the commencement of the year helped in augmentation of the sales revenues which also crossed the ten billion rupee mark to reach Rs.11,541.74 Millions (2010: Rs.8,360.34 Millions) reflecting an increase of about

38% year on year. With exchange gain, export benefits and profit on sale of mutual fund investments boosting the other income, the total income for the year was at Rs.11,950.74 Millions (2010:Rs.8,592.33 Millions). While the earnings before depreciation, interest and taxation regained the two billion rupee mark, the overall profitability could not grow in line with the sales turnover growth due to higher provisioning and incidence of higher costs. The financial performance of the Company for the year

DELISTING OF EQUITY SHARES:

The Company had received a communication from Alfa Laval Corporate AB, Sweden, the Promoter, informing of its decision to seek a voluntary delisting of the equity shares of the Company from the stock exchanges on which they are presently listed, being Bombay Stock Exchange Limited and National Stock Exchange of India Limited in accordance with the Securities and Exchange Board of India ( Delisting of Equity Shares) Regulations, 2009 with the objectives of obtaining full ownership of the Company and of providing an exit opportunity to the public shareholders. This was followed up with further communications by the Promoter conveying the floor price of Rs.2,045/- per equity share and an indicative offer price of Rs.2,850/- per equity share. The Promoter who currently holds 88.77% of the paid-up equity share capital of the Company is proposing to acquire from the Public shareholders the outstanding 2,040,202 Equity Shares constituting 11.23% of the paid-up equity share capital of the Company through a reverse book building process scheduled to be conducted between February 15, 2012 and February 22, 2012 which will determine the exit price for the Promoter to decide thereon. The acquisition of the equity shares by the Promoter is conditional upon a minimum of 1,020,101 equity shares being tendered at or below the exit price so as to cause the Promoter’s shareholding to increase to 94.38% of the paid-up equity share capital of the Company. Meanwhile, the Company has applied for and obtained the in principle approval from the above Stock Exchanges for the proposed voluntary delisting of the equity shares of the Company.

FIXED ASSETS

· Free Hold Land

· Leasehold Land

· Buildings and Roads

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Computer Software

WEB SITE DETAILS

PROFILE

Subject traces its presence in India since 1937. A sales company of Alfa Laval Group, Alfa Laval India has its local registered office at Pune. Factories in India located in Maharashtra manufacture and supply key components and systems in Separation, Heat Transfer and Flow technology.

Evolution of Alfa Laval in India

1937

Incorporated as Vulcan Trading Company Private Limited, wholly owned subsidiary of the Swedish Match Company, representing leading Swedish Companies in India, including Alfa Laval.

1961

Started Manufacturing set up at Pune.

1965

Vulcan Trading merged with Alfa Laval Ltd. and was re-christened as Vulcan Laval Limited.

1981

Alfa Laval AB became majority share holder.

1987

Name changed to Alfa Laval India Limited.

1993

Alfa Laval India became the subsidiary company of Alfa Laval AB.

Alfa Laval India is:

· An acknowledged supplier of Plate and Spiral Exchangers, Centrifugal Separators and Decanters and Sanitary Flow Equipment.

· A Group Manufacturing Unit for certain models of Separators, Decanters and Sanitary Flow Equipment for global market.

· A global hub for executing Alfa Laval projects in Distillery and vegetable oil refineries in South Africa, China, Nigeria, Middle East, Turkey, Russia and Bangladesh.

· Equipped with special expertise in process equipment fabrication in SS and other exotic metals.

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. 54.56
UK Pound	1	Rs. 87.89
Euro	1	Rs. 71.52

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
TOTAL		73

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.