MIRA INFORM REPORT

Report Date :

01.02.2012

IDENTIFICATION DETAILS

Name :	SHINE PHARMACEUTICALS LIMITED
Formerly Known As :	SHINE PHARMACEUTICALS PRIVATE LIMITED
Registered Office :	A-103, Sumangalam Complex, Beside Sonpal Petrol Pump, Pratap Nagar, Vadodara-390004, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.08.1994
Com. Reg. No.:	04-22787
Capital Investment / Paid-up Capital :	Rs.22.500 Millions
CIN No.: [Company Identification No.]	U24231GJ1994PLC022787
TAN No.: [Tax Deduction & Collection Account No.]	BRDS01412F
PAN No.: [Permanent Account No.]	AAECS2660M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Tablets, Capsules and Oral liquids specializing in the field of Psychiatry, Neurology, Cardiology, Gastroenterology and Diabetology.
No. of Employees :	Not Available

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 439000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office/ Corporate Office :	A-103, Sumangalam Complex, Beside Sonpal Petrol Pump, Pratap Nagar, Vadodara-390004, Gujarat, India
Tel. No.:	91-265-2421947/ 2423067/ 3956767
Fax No.:	91-265-2420194
E-Mail :	shinespl@sify.com info@shinepharma.com shinespl@sify.com
Website :	http://www.shinepharma.com
Regional Office :	P-77, Kalindi Housing Estate, Kolkata-700089, West Bengal, India
Tel. No.:	91-33-25222290/ 25221167/ 39574069
Fax No.:	91-33-25221706
Factory :	Plot No. 132, Juni Jitherdi, Karjan –Vemardi Road, Vadodara, Gujarat, India
Tel. No.:	91-2666-233397/ 309955
Fax No.:	91-2666-232989

DIRECTORS

As on 30.09.2011

Name :

Dr. Hiranmaya Thakurdas Saha

Designation :

Director

Address :

Uttar Nabapally, Nabapally, Barsat, District -24, PGS (N), Kolkata -743203, West Bengal, India

Date of Birth/Age :

06.09.1949

Date of Appointment :

30.05.1996

DIN No.:

00490683

Name :

Mr. Samir Nalinkanta Chakraborty

Designation :

Managing Director

Address :

Laxminarayan Colony, Near Park Maidan, P.O. Nbapally, Barsat, District 24, Parganas (N)- 743203, West Bengal, India

Date of Birth/Age :

15.07.1954

Date of Appointment :

17.08.1994

DIN No.:

00502688

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	U24231GJ1994PLC022787	SHINE PHARMACEUTICALS LIMITED	Managing director	01-04-08	01-04-05	-	Active	NO
2	U24232GJ1996PLC028568	BHOOMI MEDICAMENTS LIMITED	Director	27-11-08	05-11-08	01-07-11	Active	NO
3	U74120DL2007PTC165607	COALESCENT CONSULTANCY PRIVATE LIMITED	Director	25-08-09	01-06-09	01-07-11	Active	NO
4	U24110GJ1992PTC018634	VITAL CARE PRIVATE LIMITED	Director	07-07-09	07-07-09	-	Active	NO
5	U51109WB2007PTC120909	EARTH TRADELINK PRIVATE LIMITED	Additional director	26-07-10	26-07-10	01-07-11	Active	NO

Name :

Mrs. Aloka Hiranmay Saha

Designation :

Whole Time Director

Address :

Uttar Nabapally, Nabapally, Barsat, District -24, PGS (N), Kolkata -743203, West Bengal, India

Date of Birth/Age :

18.01.1951

Date of Appointment :

30.05.1996

DIN No.:

00502660

Name :

Mr. Noel Prafulla Bhattacharjee

Designation :

Whole Time Director

Address :

Jyangra Kalitala, Megha Tower, Second Floor, Flat No. D/2, BLK -1, Kolkata-700059, West Bengal, India

Date of Birth/Age :

15.06.1955

Date of Appointment :

01.01.2004

DIN No.:

00427462

Name :

Mr. Pradeep Vishambhar Agarwal

Designation :

Whole Time Director

Address :

“Kshitji” 3 and 4, Raneshwar Darshan Society, Markand Desai Marg, Vasana Road, Vadodara-390015, Gujarat, India

Date of Birth/Age :

20.07.1969

Date of Appointment :

01.07.2003

DIN No.:

00048699

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	U24231GJ1994PLC022787	SHINE PHARMACEUTICALS LIMITED	Whole-time director	01-04-08	01-07-03	-	Active	NO
2	U24232GJ1996PLC028568	BHOOMI MEDICAMENTS LIMITED	Managing director	27-11-08	05-11-08	-	Active	NO
3	U74120DL2007PTC165607	COALESCENT CONSULTANCY PRIVATE LIMITED	Director	25-08-09	01-06-09	01-07-11	Active	NO
4	U24110GJ1992PTC018634	VITAL CARE PRIVATE LIMITED	Director	25-06-09	25-06-09	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Samir Chkraborty	699402
Hiranmaya Saha	477022
Aloka Saha	517690
Ariban Saha	74317
Mondira Chakraborty	294975
Noel Bhattacharjee	690525
Tultul Bhattacharjee	114817
Pradeep V Agarwal (HUF)	506252
TOTAL	3375000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Tablets, Capsules and Oral liquids specializing in the field of Psychiatry, Neurology, Cardiology, Gastroenterology and Diabetology.

Products :

Item Code No.	Products Description
3004-50	Tables
3004-50	Capsules
3004-50	Liquids

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production Qty in Lacs
Tables	Nos.	--	--	2036.41
Capsules	Nos.	--	--	193.83
Liquids	Liters.	--	--	168318.39

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, Atmajyot Ashram Road Branch, “Indraprastha”, Ellora Park, Vadodara-390005, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Bank of Baroda
Working Capital Loan	19.491	29.855
From Others
Hire Purchase Loan	3.035	0.717
Total	22.526	30.572
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors	1.227	1.227
From Others (Security Deposits)	10.650	10.900
Total	11.877	12.127

Banking Relations :	--
Auditors :
Name :	Shah Sanghavi and Company Chartered Accountants
Address :	2, “SAMARPAN”, 26 Haribhakti Colony, Race Course Circle, Vadodara – 390015, Gujarat, India
Tel. No.:	91-265-2337064
Fax No.:	91-265-2354386
E-Mail :	shahsanghvi@gmail.com
PAN.:	AITPS7518Q

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3375000	Equity Shares	Rs.10/- each	Rs.33.750 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2250000	Equity Shares (Of the above shares 1750000 Shares of Rs.10 each were allotted as fully paid-up bonus shares by way of capitalization of reserve in the previous year )	Rs.10/- each	Rs.22.500 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		22.500	22.500	22.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		87.236	58.979	41.563
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		109.736	81.479	64.063
LOAN FUNDS
1] Secured Loans		22.526	30.572	33.732
2] Unsecured Loans		11.877	12.127	11.640
TOTAL BORROWING		34.403	42.699	45.372
DEFERRED TAX LIABILITIES		7.803	6.926	5.605
TOTAL		151.942	131.104	115.040
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		67.551	62.959	56.386
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	71.604	50.516	44.345
	Sundry Debtors	60.360	48.219	37.497
	Cash & Bank Balances	23.757	20.213	18.500
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.641	6.233	6.638
Total Current Assets		167.362	125.181	106.980
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	50.478	31.616	22.652
	Other Current Liabilities	18.626	11.250	11.848
	Provisions	13.867	14.170	13.826
Total Current Liabilities		82.971	57.036	48.326
Net Current Assets		84.391	68.145	58.654
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		151.942	131.104	115.040

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	477.037	393.487	355.623
		Other Income	0.949	0.952	0.950
		TOTAL (A)	477.986	394.439	356.573
Less	EXPENSES
		Material Cost	115.547	101.502	96.765
		Manufacturing Expenses	15.722	11.285	12.773
		Employee Cost	82.630	70.589	61.712
		Administrative Expenses	8.488	7.597	7.231
		Selling and Distribution Expenses	218.950	174.499	150.822
		Increase/ Decrease in stock	(12.881)	(11.265)	(10.633)
		TOTAL (B)	428.456	354.207	318.670
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		49.530	40.232	37.903
Less	FINANCIAL EXPENSES (D)		2.561	3.582	5.683
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		46.969	36.650	32.220
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.909	3.368	3.217
	PROFIT BEFORE TAX (E-F) (G)		43.060	33.282	29.003
Less	TAX (H)		14.803	11.930	13.525
	PROFIT AFTER TAX (G-H) (I)		28.257	21.352	15.478
	Income Tax Expenses of Previous Year		0.000	0.000	0.008
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		46.951	39.535	34.197
Less	APPROPRIATIONS
		Transfer to General Reserve	--	10.000	7.500
		Dividend	--	3.375	2.250
		Tax on Dividend	--	0.561	0.382
	BALANCE CARRIED TO THE B/S		75.208	46.951	39.535
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	6.336	3.386	0.676
	TOTAL EARNINGS		6.336	3.386	0.676
	Earnings Per Share (Rs.)		12.56	9.46	6.88

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.91	5.40	4.34
Net Profit Margin (PBT/Sales)	(%)	9.01	8.46	.815
Return on Total Assets (PBT/Total Assets}	(%)	18.33	17.69	17.77
Return on Investment (ROI) (PBT/Networth)		0.39	0.41	0.45
Debt Equity Ratio (Total Liability/Networth)		1.07	1.22	1.45
Current Ratio (Current Asset/Current Liability)		2.02	2.19	2.21

LOCAL AGENCY FURTHER INFORMATION

OPERATIONAL AND FINANCIAL

During the year, the company has earned total income of Rs.490.867 Millions substantially increased as compared to Rs.405.704 Millions of previous year. The net profit of the company is Rs.28.257 Millions as compared to Rs.21.352 Millions of previous year, which certainly reveals the outstanding growth of the company. The directors shall strive harder to optimize the growth of the company and to maximize the shareholder worth in future.

FORM 8

Corporate identity number of the company	U24231GJ1994PLC022787
Name of the company	SHINE PHARMACEUTICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	A-103, Sumangalam Complex, Beside Sonpal Petrol Pump, Pratap Nagar, Vadodara-390004, Gujarat, India Email : shinespl@sify.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80036720
Type of charge	Book Debts Movable Property (not being pledge) Others
Particular of charge holder	Bank of Baroda, Atmajyot Ashram Road Branch, “Indraprastha”, Ellora Park, Vadodara-390005, Gujarat, India Email : atmajy@bankofbaroda.com
Nature of instrument creating charge	Charge modification certificate
Date of instrument Creating the charge	31.08.2010
Amount secured by the charge	Rs.30.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Working Capital – 0.75% below BPLR i.e. min 12.50% p.a. at present with monthly rest; Term Loan – 0.75% over BPLR i.e. 14.00% p.a. monthly rest Terms of Repayment Working Capital – On Demand Margin Stocks – 25%, Book debts 40%, Rest 30% Extent and Operation of the charge: The credit Facilities are secured by way of hypothecation of raw materials, stock in process, finished goods, packing materials and receivables and plant and machinery both present and future lying at the factory at plot no. 132, Village Juni – Jithadi, Karjan , Vemardi Road, Taluka Karjan and Flat no A-103, Sumanglam Complex, Pratapnagar, Vadodra
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The credit facility are secured by way of hypothecation of stocks of raw material, stock in process, finished goods, packing materials and receivables and plant and machinery present and future
Date of instrument modifying the charge	20.08.2007
Particulars of the present modification	Charge be modified from Rs.35.488 millions Rs.30.000 millions by satisfying their term loan facility of Rs.5.488 millions

Fixed Assets:

· Land

· Factory Building

· Office Building

· Bore well

· Plant and Machinery

· Laboratory Equipments

· Electrical Installation

· Material handling Equipments

· Furniture and Fixtures

· Office Equipments

· Air Conditioners

· Computers

· Bus

· Scooter

· Bicycles

· DG Set

· Maruit Car/ Hyndai

· E T P

· Electrical Weighing Scales

· Hvac System

· Lift

· Transformer

AS PER WEBSITE

Profile:

"A journey of thousand miles begin with single step" so was with them on 17th day of August, 1994 when Shine Pharmaceuticals Limited was incorporated.

Since then, it has been a step by step approach and a march ahead on the journey towards growth. A seed sown with just 8 products and 5 medical representatives has grown into a tree with more than 197 products and a strong team of 325 Medical Representative and the journey is on....

And what more... Adding feather to the cap a small manufacturing unit set up in the year 1996 has been expanded to almost 3 times with ISO 9001-2000 accrediation and WHO cGMP certification.

They aimed to do the things differently so as to stand out of the crowd. Therefore they decided to operate in the Niche segment of market.

They have selected the specialized products in Psychiatry, Neurology, Cardiology, Gastroenterology and now Diabetology.

Today, they are one of the fast growing company in the segment of products and few of the products are rated in top 20 in their particular segment as per the ORG retail audit.

They have set up the unit in the year 1996, located near Vadodara, Gujarat, India and the facilities are WHO cGMP and ISO 9001:2000 certified. Even the facilities are comparable to UK-MHRA, Australian TGA and South African - MCC standards to a great extend. The installed capacities in the respective departments are as follows :

Milestones:

The journey had been quite challenging and satisfying.

Every achievement is a milestone for the company and its people. Every time they made a mark they aimed for another one.

· Year 1994 : Incorporation of Shine Pharmaceuticals under the certificate of incorporation no. 04-22787, granted by the Assistant Register of Companies, Gujarat. Beginning of domestic operations with a focus on psychiatry range.

· Year 1996 : Commissioning of manufacturing unit at Vadodara, Gujarat. Domestic market operations expanded to 15 states.

· Year 1998 : Neurology, Cardiology and Gastroenterology segments added to the product portfolio.

· Year 2001 : Domestic market operations expanded to 22 states.

· Year 2003 : Manufacturing unit awarded with ISO 9001:2000 accerdiation.

· Year 2004 : As per the ORG report of Dec. 04, few of the brands entered the top (20) brands of their respective therapeutic segments at all India level. To strengthen domestic operations, field force increased to 200 representatives. Important Brands : Aldo, Nedol, Neurofit.

· Year 2005 : Manufacturing facilities expanded to 28000 sq. ft. with state-of-the-art infrastructure and modern equipments.

Manufacturing unit got the WHO GMP certification. The facilities are at par with UK MHRA, South African MCC and Australian TGA.

Registered an annual growth of 50% in the domestic market. Launched international operations in 30 countries

• Year 2006 : They successfully executed the first export order.

In domestic operations, they launched 3 divisions :

1. SPARK
2. 2. ROYAL
3. GLOW
4. Domestic operations expanded to 25 states and the field force increased to 300. Diabetology added to the product portfolio.

1. Year 2007 : Got Registration in Vietnam and Nigeria. Launched Domestic Market operation in State of Kerala, Goa, Hariyana, Jammu and Kashmir.

The Mentors:

Subject - Since the conception of the idea of forming a pharmaceutical company in the year 1994 to making it a pharmaceutical power house, the sole factor that is responsible is its people, the mentors. They are professionals from varied field such as Medicine, Distrubution, Sales and Finance. They have lead from front, steward the ship in all weathers and have written the success story. They are :

Dr. Hiranmay Saha

A leading psychiatrist with three decades of vast experience of treating patients, has given tremendous input in identifying the best products which works best with the patients on treatment of their ailments. His exposure to patients and products in fact is solely responsible for deciding the best products on one hand and guiding the sales force of the company on the other hand. He is the Chairman of the company.

Mr. Samir Chakroborty

A man synonymous to step by step progress - started his career with a retail pharmaceutical shop in the year 1974, a pharmaceutical whole sale distribution in the year 1976, a third party manufacturing in the year 1991, to a pharmaceutical house in the year 1994. He has got vast experience and knowledge of knitty gritties of finished formulation distribution. He is the Managing Director of the company.

Mr. Noel Bhattacharya

A hard core street smart sales man - started his career as a sales representative and with skills of sales he has grown to the position of All India Sales Manager. In the year 1991, he joined hands with Mr. Samir Chakraborty. His vast experience of sales and motivating the sales personnel at all levels, has guided the company to devise right selling strategies and train, guide and motivate the large sales team. He is the Sales Director of the company.

Mr. Pradeep Agrawal

A Chartered Accountant and Company Secretary - has got 16 years of experience of working with various corporates. He is associated with the company since foundation and has formally joined the Board of Directors in the year 2003. He is the Executive Director of the company and looks after the Financial, Legal, Commercial, HR, Manufacturing and Export operations of the company.

Infrastructure:

Site Description:

· It is a Pharmaceutical Formulation unit situated at Karjan, near National Highway No. 8, 34 kms away from Vadodara city, in Gujarat State.

· Land Area : 25,200 sq. mtrs

· Even though the factory site is surrounded by farm land from three side, however to avoid the dust pollution they have made the factory building on window less concept. It is free from dust, smoke, chemical and biological pollution. There are no pollutant industries or activities surrounding the unit.

· The total build up area of factory is 4000 sq. meter with new construction as per Schedule M and WHO guidelines.

· No other manufacturing activities are carried out in factory premises.

Premises:

The company has constructed the factory building as per the latest WHO GMP standards and the each department has been constructed in such a way so as to allow each operations to flow in Uni Direction. All the Doors and Viewing Panels are of Aluminum and the Doors in the production area are double Flushed. The Flooring is of Kota Stone with Mirror Polished and the Walls are Oil Painted. The building has been constructed with Windowless Concept so as to avoid any kind of pollution.

· Total land Area : 25,200 Sq. Meters

· Total Built - up Area : 4000.00 Sq. Meters

Marketing Network:

The Indian Pharmaceutical market is growing very fast for reasons :

· Awareness in Health Consciousness

· Fast detection of Diseases with the help of modern testing equipments

· Increased thrust of the Governments on the health of the people

· More increase in Grants/subsidies allocation by the WORLD HEALTH ORGANISATIONS to the developing countries

· Increase in diseases due to pollution and changes in life styles

· The substantial increase in export of finished formulations as well as API's to almost all part of the world

They are mainly manufacturing and marketing Neurology, Psychiatric, Cardiac and Diabetic medicines which are mainly life style related medicines. In addition to that they have got a large range of general products also. They have recently launch few new product in range of Diabetetic, Protiolytic enzyme. Calcium Suppliment and Anti - epilepna. The production team is still working on few more products to be launched in next few months. In the Eastern states like West Bengal, Assam, Meghalaya, Manipur, Sikkim, Tripura, Bihar, Jharkhand and Orissa they have established the market very well. They are placed in the top rated Pharmaceutical company in the product category. They are also expanding very fast in the market of Andhra Pradesh, U.P, Rajasthan, M.P. Chhatishgarh and Maharastra. Very recently they have very successfully launched in the states of Gujarat and Tamilnadu.

The company is selling its products 100 % on ethical basis. They have appointed 15 CandF Agents in various states as under : In addition to that a large number of stockiest have been appointed in various territories.

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.49.68
UK Pound	1	Rs.78.17
Euro	1	Rs.65.52

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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.