MIRA INFORM REPORT

Report Date :

27.12.2012

IDENTIFICATION DETAILS

Name :	LINCON POLYMERS PRIVATE LIMITED
Registered Office :	308, Shanti Mall, Near Satadhar Cross Road, Ghatlodia, Ahmedabad – 380 061, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.03.1996
Com. Reg. No.:	04-028973
Capital Investment / Paid-up Capital :	Rs. 8.075 millions
CIN No.: [Company Identification No.]	U17119GJ1996PTC028973
IEC No.:	0803008597
TAN No.: [Tax Deduction & Collection Account No.]	AHML00266A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of PP/HDPE woven sacks and Bags.
No. of Employees :	100 (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 460000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is and established company having satisfactory track record. There appears slight dip in profitability. However, general financial position of the company seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct 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

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	CARE
Rating	BB+ (Long term rating)
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation
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 :	308, Shanti Mall, Near Satadhar Cross Road, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
Tel. No.:	91-79-27461493/27470603
Mobile No.:	91-9825005913 (Mr. Paresh B. Patel)
Fax No.:	91-79-27470812
E-Mail :	paresh@linconpolymers.com vksoni58@hotmail.com office@linconpolymers.com sales@linconpolymers.com
Website :	http://www.linconpolymers.com
Factory :	Block No. 38, Khatraj, Taluka- Kalol, District – Gandhinagar, Gujarat, India
Tel. No.:	91-2764-281274
Fax No.:	91-2764-281424
E-Mail :	deepak@linconpolymers.com suresh@linconpolymers.com
Branch Office :	701/6A, 7th Floor, Krishna Green Land Park, Kasarvadavali Junction, Ghod Bunder Road, Opposite Parshwanath Engineering College, Thane (West), Mumbai-400604, Maharashtra, India
Tel. No.:	91-22-25970675
Fax No.:	91-22-25970579
E-Mail :	Mathews@linconpolymers.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Babubhai Kachrabhai Patel

Designation :

Chairman

Address :

111, Vaibhav Bunglow, Near Sun-N-Step Club, Sola Road, Ghatlodia, Ahmedabad – 380 061, Gujarat, India

Date of Birth/Age :

10.03.1953

Qualification :

Graduate

Date of Appointment :

25.08.1999

DIN No :

00229793

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U17119GJ1996PTC028973	LINCON POLYMERS PRIVATE LIMITED	Director	25/08/1999	25/08/1999	-	Active	NO
2	U51109GJ2011PTC066646	DIVYA TRADELINK PRIVATE LIMITED	Director	05/08/2011	05/08/2011	-	Active	NO

Name :

Mr. Pareshbhai Babubhai Patel

Designation :

Director

Address :

111, Vaibhav Bunglow, Near Sun-N-Step Club, Sola Road, Ghatlodia, Ahmedabad – 380 061, Gujarat, India

Date of Birth/Age :

23.09.1976

Qualification :

Graduate

Date of Appointment :

25.08.1999

DIN No :

00229834

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U17119GJ1996PTC028973	LINCON POLYMERS PRIVATE LIMITED	Director	25/08/1999	25/08/1999	-	Active	NO
2	U25209GJ2003PTC043385	PRIYAL PLAST PRIVATE LIMITED	Director	16/06/2006	16/06/2006	18/07/2008	Active	NO
3	U51109GJ2006PTC049600	HIYA OVERSEAS PRIVATE LIMITED	Director	18/12/2006	18/12/2006	16/06/2008	Active	NO
4	U25202MP2012PTC029009	RALIN POLYMERS PRIVATE LIMITED	Director	14/08/2012	14/08/2012	-	Active	NO

Name :

Mr. Hardikbhai Dilipbhai Patel

Designation :

Director

Address :

49, Krishna Society, Jail Road, Mehsana (N.G.), Gujarat, India

Date of Birth/Age :

03.06.1976

Date of Appointment :

01.10.2004

DIN No :

00251825

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U11299GJ1979PTC003483	OLYMPIC SYNTHETIC SACKS PVT LTD	Managing director	01/12/1997	01/12/1997	-	Active	NO
2	U51502GJ1995PTC025467	MALAY EXPORTS PRIVATE LIMITED	Director	01/10/2004	01/10/2004	-	Active	NO
3	U17119GJ1996PTC028973	LINCON POLYMERS PRIVATE LIMITED	Director	01/10/2004	01/10/2004	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Babubhai K. Patel	282750
Pareshbhai B. Patel	154150
Kamlaben B. Patel	50660
Lilaben P. Patel	300
Revaben L. Patel	867
Indumatiben l. Solanki	2500
Nikitaben Patel	6085
Anitaben P. Patel	30000
Bhaveshbhai B. Patel	15300
Laxmanbhai K. Patel	14418
Vikrambhai M. Shah	1500
Niravbhai P. Brahmbhatt	2100
Sureshbhai K. Patel	1600
Mafatlal L. Chaudhari	100
Kashiram B. Patel	100
S. M. Brothers (Prop. Ranchodbhai Patel)	100
Visat Traders (Prop. Pravinbhai D. Patel)	100
Krupa Trading (Prop. Shri Bansibhai Patel)	100
Deepaliben Patel J/w Krupa Patel and Roopali Patel	100
Shri Parasbhai Patel J/w Smt. Varshaben Patel	100
ShrAdishbhai Patel	100
Industrial Marketing (Prop. Ram Avtar Agrawal)	100
Divya Agrawal (H.U.F.)	100
We Exim (Prop. Vijaybhai Patel)	50100
Hardikbhai D. Patel	42950
Samir G. Patel	47250
Shailesh R. Patel	21275
Pushpaben G. Patel	12500
Arvind B. Patel	42500
Dhanesh B. Patel	27500
Babubhai Mathuradas Patel	110
Reshma Tejas Patel	100
Total	807515

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	3.72
Directors or relatives of Directors	96.28
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of PP/HDPE woven sacks and Bags.

Products :

ITC CODE	PRODUCT DESCRIPTION
39232100	PP / HDPE Woven Sacks and Bags

PRODUCTION STATUS AS ON 31.03.2012

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Woven Sacks	Pcs.	--	--	49944922
Fabrics	Mt	--	--	1136
Other Items*	MT.	--	--	1272

*Includes production of intermediates products i.e. Tape (for sales)

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

· Punjab National Bank

Sola Road Branch, Ghatlodia, Ahmedabad - 380061, Gujarat, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Working Capital Facilities - Cash Credit	36.549	3.780
Working Capital Facilities - Buyers Credit	106.183	32.633
Term Loan - Rupee Loan	39.527	37.425
Term Loan - Buyers Credit (Capital Goods)	5.100	8.846
Vehicle Loan (Secured against Hypothecation of respective vehicles)	1.040	2.639
Total	188.399	85.323
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Directors	3.671	10.494
Inter Corporate Loan	11.362	17.495
From Shareholders and Related Parties	14.383	12.417
Total	29.416	40.406

Note:

Working Capital facilities from the Punjab National Bank are secured by way Of first charge on hypothecation of entire currents assets (present & future! of the Company including stocks of raw materials, stock in process, finished goods, receivables, stores, spares and consumables.

Working Capital facilities and Term loan, from the Punjab National Bank, is secured by way of Equitable Mortgage of Factory Land and building situated at Block No. 38 ft 39, Palki Village, Khatraj, Kabl, Gandhinagar and first charge on Plant a Machinery, Equipments and Other Fixed Assets of the Company,

Banking Relations :	--
Auditors :
Name :	V K Soni and Company Chartered Accountants
Address :	501/B, Parshwa Tower, Near Pakvan-II, S G Road, Bodakdev, Ahmedabad-380054, Gujarat, India
PAN.:	AADFV2811R
Enterprises under significant influence of key management personnel :	· Priyal Plast Private Limited · Malay Plast Private Limited · Acton Investment Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
807515	Equity Shares	Rs.10/- each	Rs.8.075 Millions

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		8.075	8.075	6.510
2] Share Application Money		0.000	0.000	9.871
3] Reserves & Surplus		107.561	95.211	49.618
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		115.636	103.286	65.999
LOAN FUNDS
1] Secured Loans		188.399	155.323	73.348
2] Unsecured Loans		29.416	40.406	36.614
TOTAL BORROWING		217.815	195.729	109.962
DEFERRED TAX LIABILITIES		19.653	13.598	4.962
TOTAL		353.104	312.613	180.923
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		135.817	146.089	69.535
Capital work-in-progress		17.065	11.082	1.119
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	84.887	55.892	14.856
	Sundry Debtors	116.448	114.114	71.804
	Cash & Bank Balances	12.996	7.657	4.956
	Other Current Assets	1.316	0.000	0.000
	Loans & Advances	51.875	21.108	45.903
Total Current Assets		267.522	198.771	137.519
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	37.592	24.010	13.532
	Other Current Liabilities	28.194	17.854	7.0.98
	Provisions	1.514	1.465	6.629
Total Current Liabilities		67.300	43.329	27.259
Net Current Assets		200.222	155.442	110.260
MISCELLANEOUS EXPENSES		0.000	0.000	0.009
TOTAL		353.104	312.613	180.923

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	720.327	647.969	519.620
		Other Income	18.646	9.031	3.696
		TOTAL (A)	738.973	657.000	523.316
Less	EXPENSES
		Cost of Materials Consumed	576.787	489.604	482.655
		Purchases of Traded Goods	7.103	51.088
		Employee Benefit Expenses	13.741	8.778
		Preliminary expenses Written off	0.000	0.010
		Other Expenses	84.543	59.923
		Prior period Expenditure	0.000	0.934
		Changes in inventories of Stock-in-Trade	(8.631)	(7.694)
		TOTAL (B)	673.543	602.643	482.655
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		65.430	54.357	40.661
Less	FINANCIAL EXPENSES (D)		29.672	16.144	10.671
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		35.758	38.213	29.990
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.301	13.553	7.323
	PROFIT BEFORE TAX (E-F) (G)		18.457	24.660	22.667
Less	TAX (H)		9.800	13.718	7.873
	PROFIT AFTER TAX (G-H) (I)		8.657	10.942	14.794
Add:	Mat Tax Credit Entitlement		3.693	4.915	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		56.435	40.578	25.784
	BALANCE CARRIED TO THE B/S		68.785	56.435	40.578
	EARNINGS IN FOREIGN CURRENCY		20.753	21.508	27.812
	IMPORTS
		Raw Materials	251.989	47.523	54.349
		Capital Goods	0.711	1.641	11.866
	TOTAL IMPORTS		252.700	49.164	66.215
	Earnings Per Share (Rs.)		15.29	19.64	22.73

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.20	1.67	2.83
Net Profit Margin (PBT/Sales)	(%)	2.56	3.81	4.36
Return on Total Assets (PBT/Total Assets}	(%)	4.58	7.15	10.95
Return on Investment (ROI) (PBT/Networth)		0.16	0.24	0.34
Debt Equity Ratio (Total Liability/Networth)		2.47	2.31	2.15
Current Ratio (Current Asset/Current Liability)		3.98	5.59	5.04

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)	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	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

NOTE:

The Registered address of the company has been shifted from F-2, Aakansha Appartments, Near Sola Railway Crossing, Ghatlodia, Ahmedabad – 380 061, Gujarat, India to the present address with the effect form 29.01.2007.

FINANCIAL RESULTS

During the year, the Company achieved turnover and other income of Rs. 738.972 millions as against turnover of Rs. 647.969 millions achieved during the previous year 2010-11 registering a growth of 14.04%. Despite the economic slowdown in the current year and the loss on account of depreciation of Rupee vis-a-vis dollar, the Company has earned EBITDA of Rs. 52.149 millions which is more or less similar to EBITDA for F.Y. 2010-11. The director's expect the Company to show improved performance in the years to come.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17119GJ1996PTC028973
Name of the company	LINCON POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	308, Shanti Mall, Near Satadhar Cross Road, Ghatlodia, Ahmedabad – 380 061, Gujarat, India Email: office@linconpolymers.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80016174
Type of charge	Immovable property
Particular of charge holder	Punjab National Bank Sola Road Branch, Ghatlodia, Ahmedabad - 380061, Gujarat, India Email: 3937@pnb.co.in
Nature of instrument creating charge	Mortgage deed [without possession] Dtd. 12.01.2012
Date of instrument Creating the charge	12.01.2012
Amount secured by the charge	Rs. 253.600 millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of Repayment CC on demand subject of review annually and Term Loans as per original sanction. Extent and Operation of the charge Punjab National Bank has exclusive first charge over all immovable properties/ assets as mentioned in Col. No.15 below till the repayment of aggregate credit facilities of Rs.2536 lacs along with interest, additional interest, panel interest, cost, charges, commission and all such other amount as may be due to the Bank from time to time or what so ever in nature.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Land bearing Block No.38/p, adm. about 2500 sq. mtrs. with construction standing thereon situate, lying and being at Mouje (Sim) Khatrej, Taluka Kalol, Reg. Dist. Gandhinagar and Sub-Dist. Kalol; Land Block No.38/p, adm. about 1-06-48 hec. area sq. mtrs. from same southern portion adm. about 6813 sq. mtrs. & construction thereon adm. about 334.44 sq. mtrs. situated in Mouje Khatrej, Tal.Kalol; Land situate being Vill. Khatrej,Tal.Kalol,Dist.Gandhinagar forming part of S.No.21/2 & B.No.39/p of Mouje Khatrej,Tal. Kalol adm. 1983.90 sq.mtrs. thereabout togetherwith buildings thereon AND Bunglow No.12/A adm.plot area 429 sq.mts. with construction adm.620 sq.yards i.e.518.40 sq.mts. thereon, Malayvilla Bunglows, S.No.433 paiki hissa No.1+2+3,TP Sch.No.42 FP No.76 Mouje Sola,Tal.Daskori
Whether any of the property or interest therein under reference is not registered in the name of the company	Yes
If yes, in whose name it is registered	Property mentioned in Sr.No.15 (iii) is registered in the name of Malay Plast Pvt. Ltd. and Property mentioned in Sr.No.15 (iv) is registered in the name of Mrs. Anita P. Patel and Mr.Paresh B. Patel.
Date of instrument modifying the charge	21.11.2011
Particulars of the present modification	The present modification is made to further secure the aggregate charge of Rs.253.600 millions by simple mortgage (without possession) over immovable properties mentioned above. Now at present the total charge is stands for aggregate maximum limit of Rs.253.600 millions. All other terms and conditions remain unchanged and continued.

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2012
LUT Bond given by the Company against import of Raw Material under DEEC	27.686
Bank guarantee issued by the bank in favour of the Company	5.000
Corporate Guarantee Given for credit facilities taken by Priyal Plast Private Limited Term loan - Rs. 30.000 millions and Cash Credit limit - Rs. 10.000 millions for loan taken from Punjab National Bank, Sola Road, Ahmedabad)	40.000

FIXED ASSETS

v Tangible Assets

· Land and Site Development

· Building

· Office Building

· Plant and Machinery

· Electric Installation

· Furniture and Fixture

· Office Equipment

· Motor Car

· Air Conditioner

· Computer

· Scooter

· Wind Mill

v Intangible Assets

· Software

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 pyments 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.54.96
UK Pound	1	Rs.88.68
Euro	1	Rs.72.45

INFORMATION DETAILS

Report Prepared by :

MRI

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	NO
--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.