MIRA INFORM REPORT

Report Date :

17.12.2012

IDENTIFICATION DETAILS

Name :	COVALENT LABORATORIES PRIVATE LIMITED
Registered Office :	D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.09.2002
Com. Reg. No.:	01-39606
Capital Investment / Paid-up Capital :	Rs.60.000 Millions
CIN No.: [Company Identification No.]	U24230AP2002PTC039606
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Bulk Drugs and Drug Intermediates.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2860000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track. The latest financials are not made available. However as per previous year’s record, financial position seems to be good. Trade relations are reported as decent. Business is active. Payments terms are usually correct and as per commitments. 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.

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	ICRA
Rating	Letter of Credit: A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	03.10.2012

Rating Agency Name	ICRA
Rating	Term Loan: BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	03.10.2012

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/ Corporate Office :	D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, Andhra Pradesh, India
Tel. No.:	91-40-23738492/ 93/ 94
Fax No.:	91-40-23738496
E-Mail :	finance@covalentlab.com enquiry@covalentlab.com covalentlabs@rediffmail.com covalent_accts@rediffmail.com
Website :	http://www.covalentlab.com
Factory :	Survey No. 374, Gundla Machanoor Village, Hathnoor Mandal, Medak District, Andhra Pradesh, India
Tel. No.:	91-8455-233853/ 233935

DIRECTORS

AS ON 30.07.2012

Name :

Mr. Madireddy Narayana Reddy

Designation :

Managing Director

Address :

Plot No. 986, Road No. 50, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Date of Birth/Age :

20.02.1951

Date of Appointment :

13.09.2002

Din No.:

00123201

Name :

Mr. Madireddty Vijay Kiran

Designation :

Whole Time Director

Address :

Plot No. 986, Road No. 50, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Date of Birth/Age :

12.09.1981

Date of Appointment :

01.01.2007

PAN No.:

ACKPV1863G

Din No.:

01095484

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24230AP2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Whole-time director	01-01-07	13-09-02	-	Active	NO
2	U24232AP2011PTC073729	LONSDALE LIFE SCIENCES PRIVATE LIMITED	Director	06-04-11	06-04-11	07-11-11	Active	NO

Name :

Mr. Nandigala Prasanth

Designation :

Director

Address :

Plot No. 550, Road No. 19, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Date of Birth/Age :

14.04.1972

Date of Appointment :

15.05.2003

Din No.:

01740471

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24232AP1982PLC003368	VIRCHOW LABORATORES LIMITED.	Director	25-10-99	25-10-99	Active	NO
2	U74210AP1974PTC001733	IMEX ENGINEERING CO PVT LTD	Director	18-10-01	18-10-01	Active	YES
3	U24230AP2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15-05-03	15-05-03	Active	NO
4	U24116AP1991PLC012314	ANDHRA ORGANICS LIMITED	Whole-time director	01-04-11	08-09-04	Active	NO
5	U24239AP2004PLC042949	VIRCHOW DRUGS LIMITED	Director	12-09-07	12-09-07	Active	NO

Name :

Mr. Mundla Naryan Reddy

Designation :

Director

Address :

Plot No. 15-A, Road No. 2, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Date of Birth/Age :

01.06.1951

Date of Appointment :

15.05.2003

Din No.:

00064392

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24232AP1982PLC003368	VIRCHOW LABORATORES LIMITED	Managing director	01-06-11	20-01-82	-	Active	NO
2	U24210AP2001PTC036520	VIRCHOW BIOTECH PRIVATE LIMITED	Director	04-04-01	04-04-01	-	Active	NO
3	U74210AP1974PTC001733	IMEX ENGINEERING COMPANY PRIVATE LIMITED	Director	18-10-01	18-10-01	-	Active	YES
4	U24230AP2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15-05-03	15-05-03	-	Active	NO
5	U23209AP2003PTC041101	VIRCHOW PETROCHEMICAL PRIVATE LIMITED	Director	04-06-03	04-06-03	-	Active	NO
6	U24239AP2004PLC042949	VIRCHOW DRUGS LIMITED	Director	25-03-04	25-03-04	-	Active	NO
7	U24116AP1991PLC012314	ANDHRA ORGANICS LIMITED	Director	08-09-04	08-09-04	-	Active	NO
8	U24110AP2005PTC046609	EMMENNAR CHEM PRIVATE LIMITED	Director	22-06-05	22-06-05	-	Active	NO
9	U45200AP2005NPL045814	HYDERABAD PHARMA INFRASTRUCTURE AND TECHNOLOGIES LIMITED	Director	21-12-06	21-12-06	17-01-11	Active	NO
10	U24230MH2007PTC176048	VIRCHOW HEALTHCARE PRIVATE LIMITED	Director	20-11-07	20-11-07	-	Active	NO
11	U24299AP2002PTC039653	EMMENNAR BIO-TECH PRIVATE LIMITED	Director	10-03-08	10-03-08	-	Active	NO

Name :

Mr. Lingareddy Venkata Subash

Designation :

Director

Address :

Plot No. 435/a, Road No. 20, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India

Date of Birth/Age :

09.12.1971

Date of Appointment :

15.05.2003

Din No.:

00125240

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72100AP2001PLC036378	OCIMUM BIO SOLUTIONS (INDIA) LIMITED	Whole-time director	01-12-10	12-03-01	-	Active	NO
2	U24232AP1982PLC003368	VIRCHOW LABORATORES LIMITED	Director	14-03-02	14-03-02	-	Active	NO
3	U15419AP2002PTC038404	MUKUNDA DAIRY PRODUCTS PRIVATE LIMITED	Director	30-03-02	30-03-02	09-09-11	Active	NO
4	U24129AP1976PTC002072	CORAMANDEL INFRASTRUCTURE PRIVATE LIMITED	Director	27-01-03	27-01-03	23-01-08	Active	NO
5	U24230AP2002PTC039606	COVALENT LABORATORIES PRIVATE LIMITED	Director	15-05-03	15-05-03	-	Active	NO
6	U74999AP2007PTC052835	FICUS ENTERPRISES (INDIA) PRIVATE LIMITED	Director	19-02-07	19-02-07	-	Active	NO
7	U72300AP2007PTC055671	MAX INFRATECH (INDIA) PRIVATE LIMITED (PART IX)	Director	25-09-07	25-09-07	-	Amalgamated	NO
8	U14200AP2008PTC057527	CORAMANDEL MINING AND EXPORTS PRIVATE LIMITED	Director	30-09-10	19-10-09	-	Active	NO
9	U45200AP1999PLC030861	UAN MAX INFRA LIMITED	Director	26-12-09	24-12-09	05-09-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.07.2012

Names of Shareholders	No. of Shares
Madireddy Narayana Reddy	1886500
Maddireddy Vijay Kiran	323000
Madireddy Narayana Reddy	142000
M Varun	43500
K Prabhakar Reddy	5000
Mundla Narayana Reddy	180000
Lakshmi Prasana	180000
M Sudha	360000
M Mahavishnu	360000
Nandigala Prasanth	430000
Nandigala Hemanth	430000
L V Suinil	300000
L Sunitha	300000
P Gargi	90000
L V Subhash	300000
L V Subha Reddy	90000
N Ramasubba Reddy	120000
K Harimohan Reddy	77000
K Subhashini Reddy	43000
G Jayaprada	40000
P Ravindra	30000
P Rajini	30000
Ch Ramya	20000
N V Reddy	110000
Teena	110000
Total	6000000

AS ON 30.07.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs and Drug Intermediates.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Bulk Cephalosporin’s	294110

PRODUCTION STATUS [AS ON 31.03.2011]

Installed Capacity – KGS	400000
Actual Productions – KGS	367785

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad-500082, Andhra Pradesh, India

· Citi Bank N.A.,

1^st Floor, Queens Plaza, Sardar Patel Road, Hyderabad-500003, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	331.694	366.694
Working capital loans	635.778	224.047
Hire purchase installment payable	5.299	1.629
Total	972.771	592.370
Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	0.000	9.994
Loans directors	5.970	5.971
Other debt	27.840	18.640
Total	33.810	34.605

Banking Relations :	--
Auditors :
Name :	M V Narayana Reddy And Company Chartered Accountant
Address :	8-3-941, Flat No. 504, Vijayasree Apartments, Behind Chermas, Atmeerpet, Hyderabad-500073, Andhra Pradesh, India
Tel. No.:	91-40-23743975/ 23744448
PAN No:	AADFM4830F
Associates :	· Virchow Laboratories Limited · Virchow Petro Chemicals Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs. 10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs. 10/- each	Rs.60.000 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		60.000	60.000	60.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		656.626	457.054	284.458
4] (Accumulated Losses)		0.00	0.000	0.000
NETWORTH		716.626	517.054	344.458
LOAN FUNDS
1] Secured Loans		972.771	592.370	390.465
2] Unsecured Loans		33.810	34.605	34.880
TOTAL BORROWING		1006.581	626.975	425.345
DEFERRED TAX LIABILITIES		44.525	49.265	16.396
TOTAL		1767.732	1193.294	786.199
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		716.191	691.737	218.606
Capital work-in-progress		73.899	0.000	178.609
INVESTMENT		20.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	673.357	342.151	230.146
	Sundry Debtors	991.004	638.820	474.060
	Cash & Bank Balances	152.750	59.278	41.759
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	213.641	152.123	136.223
Total Current Assets		2030.752	1192.372	882.188
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	56.941	36.295	42.691
	Other Current Liabilities	911.409	594.987	414.174
	Provisions	104.760	59.572	36.392
Total Current Liabilities		1073.110	690.854	493.257
Net Current Assets		957.642	501.518	388.931
MISCELLANEOUS EXPENSES		0.000	0.039	0.053
TOTAL		1767.732	1193.294	786.199

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		TOTAL (A)	4150.007	2270.824	1819.869
Less	EXPENSES
		TOTAL (B)	3629.539	1904.710	1616.787
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		520.468	366.114	203.082
Less	FINANCIAL EXPENSES (D)		116.723	61.596	61.662
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		403.745	304.518	141.420
Less/ Add	DEPRECIATION/ AMORTISATION (F)		102.641	39.481	34.517
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		301.104	265.037	106.903
Less	TAX (H)		101.532	92.441	36.635
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		199.572	172.596	70.268
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		457.054	284.458	214.190
	BALANCE CARRIED TO THE B/S		656.626	457.054	284.458
	EARNINGS IN FOREIGN CURRENCY		1194.600	822.309	NA
	IMPORTS
		Capital Goods	4.700	1.529	NA
		Others	32.934	34.948	NA
	TOTAL IMPORTS		37.634	36.477	NA
	Earnings / (Loss) Per Share (Rs.)		33.26	28.77	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.81	7.60	3.86
Return on Total Assets (PBT/Total Assets}	(%)	10.96	14.07	9.71
Return on Investment (ROI) (PBT/Networth)		0.42	0.51	0.31
Debt Equity Ratio (Total Liability/Networth)		2.90	2.55	2.67
Current Ratio (Current Asset/Current Liability)		1.89	1.73	1.79

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	No
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	Yes
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS AND BUSINESS PERFORMANCE:

Gross revenues increased from Rs.2325.823 Millions in the previous year to Rs.3969.054 Millions, at a growth rate of above 70%. The company's export revenues for the year increased from Rs.837.600 Millions to Rs.1181.000 Millions, at a growth rate of 41%. Profit before tax increased from Rs.265.037 Millions to Rs.301.104 Millions registering a growth of 13.60%. The expansion of facilities which has taken place in the last financial year, efficient use of resources and marketing strategy contributed for improved turnover and profitability.

The company is in the process of achieving manufacturing excellence by improving efficiency and reducing operating costs while maintaining quality. The company is focusing on high value, high margin products and to enter into the regulatory markets.

DOMESTIC MARKETS:

The company has an established reputation as a supplier in domestic markets. This position shall be maintained and expanded upon. The company plans to leverage this strength to open new markets for its products. The company has a disciplined approach to costs and follows prudential norms. Systems are strictly enforced and costs are closely monitored. Careful planning ensures there is no time over run.

INTERNATIONAL MARKETS:

During the year the company's export earnings amounting to Rs.1181.000 Millions, covering exports to the Netherlands, Mexico, Turkey, China, Bangladesh, Jordan, Switzerland and other markets represented an increase of 41% over the previous year.

FUTURE PROSPECTS:

To achieve the goal of growing profitability, the company is in the process of building up strong and diverse product portfolio. In this direction, the company is developing the processes and systems that will ensure sustainable growth in the long term. Further, for expanding into key markets and for improving high quality customer base, the company is striving hard to deliver the products at a much higher level of quality as compared to its competitors.

The company is recognized as a reliable source by major overseas customers and continue to use this as a leverage point to grow its business and profitability.

INFRASTRUCTURE:

MANUFACTURING FACILITIES:

The company has spent an amount of Rs. 72.173 Millions on capital additions during the year for enhancing the production facilities by adding some balancing equipment to the existing facility. Further, the company has also planned for creating another production block with an estimated cost of Rs. 180.000 Millions towards which already an amount of Rs. 73.899 Millions is spent during the year. State Bank of India has sanctioned a term loan of Rs. 120.000 Millions to part finance this project.

The company has also acquired around 56 acres of land in Ranasthalam Mandal, Srikakulam District, for setting up another unit to manufacture new products and is in the process of obtaining approvals from the authorities.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U24230AP2002PTC039606
Name of the company	COVALENT LABORATORIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, Andhra Pradesh, India
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Citi Bank N.A., 1^st Floor, Queens Plaza, Sardar Patel Road, Hyderabad-500003, Andhra Pradesh, India
Email	mounika.kancheti@citi.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation
Date of instrument Creating the charge	21.03.2012
Amount secured by the charge	Rs.225.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be stipulated by the bank from time to time Terms of Repayment All facilities are repayable on demand Margin As agreed from time to time. Extent and Operation of the charge First exclusive charges over the hypothecated assets of the company funded out of ECB term loan in favour of the security trustee (Citi Bank) Bilateral Term loan by way of external commercial borrowing for United states Dollars 4,680,000 equivalent of Rs.225.000 Millions
Short particulars of the property charged	First exclusive charges over the hypothecated assets of the company funded out of ECB term loan in favour of the security trustee (Citi Bank)

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Lab Equipments

· Electrical Installation

· Office Equipments

· Furniture and Fixture

· Vehicles

· Computer

· Factory Equipments

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.54.39
UK Pound	1	Rs.87.78
Euro	1	Rs.71.29

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.