MIRA INFORM REPORT

Report Date :

08.02.2012

Note : Modern Petrofils is the unit of Modern Syntex (India) Limited

IDENTIFICATION DETAILS

Name :	MODERN SYNTEX (INDIA) LIMITED MODERN PETROFILS (UNIT OF MODERN SYNTEX (INDIA) LIMITED)
Registered Office :	A-4, Vijay Path, Tilak Nagar, Jaipur – 302 004, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.11.1976
Com. Reg. No.:	17-1780
Capital Investment / Paid-up Capital :	Rs.1282.166 Millions
CIN No.: [Company Identification No.]	L24302RJ1976PLC001780
TAN No.: [Tax Deduction & Collection Account No.]	JPRM00019F / JPRM00018E
Legal Form :	A Public Limited Liability Company. The Company's Shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer and Sale of Polyester Filament Yarn, Polyester Viscose Fabric and Polyester Viscose Yarn.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
Payment Behaviour :	Slow and delayed
Litigation :	--
Comments :	Subject is a part of Modern Group which is not faring well. The group is general and subject company in particular faces financial crisis. The company has huge accumulated losses. Payments are reported to be slow and delayed. The company can be considered for any business dealings on a safe and secured trade terms and conditions. Note : The company’s shares are listed, but it is suspended due to penal reasons.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. M. P. Sethy
Designation :	Senior Manager
Contact No.:	91-9328842303
Date :	06.02.2012

LOCATIONS

Registered Office :	A-4, Vijay Path, Tilak Nagar, Jaipur – 302 004, Rajasthan, India
Tel. No.:	91-141-2623430 / 31 / 32 / 33
Mobile No.:	91-9328842303 (Mr. M. P. Sethy)
Fax No.:	91-141-2621382
Email :	modernregd@datainfosys.net ssdangi@modernpetrofils.in modernjaipur@sify.com
Website :	http://www.modernpetrofils.in http://www.modern-group.com
Corporate Headquarter :	68/69, Godavari, Poachkhanwala Road, Worli, Mumbai - 400025, Maharashtra, India
Tel. No.:	91-22-4923315/ 4944285/ 4944288/ 4972921
Corporate Office :	N.H. No. 8, Village: Bamangam, Taluka Karjan, District Vadodara – 391 210, Gujarat, India
Tel. No.:	91-265-2830787 (D) / 2830782 / 781 / 3093959 / 58 (For Purchase and Domestic Marketing)
Fax No.:	91-265-2830369 (For Purchase and Domestic Marketing)
Factory :	· Yarn Division : Matsya Industrial Area, Alwar – 301030, Rajasthan, India. · Suitings Division : Old Industrial Area, Alwar, Rajasthan, India · Petrofils Division : Bamangaon, Taluka: Karjan, Baroda, Gujarat, India.
For Export Marketing :	Mr. Mangesh Jadhav Protoprima Chambers, 1, Suren Road, Near L and T Health Centre, Andheri (East), Mumbai – 400 093, Maharashtra, India Telephone : 91-22-66973798 / 32403358 Fax No. : 91-22-26836536 / 66910491 Email : mangesh@modernpetrofils.in mkt1@modernpetrofils.in

DIRECTORS

As on 23.09.2011

Name :	Mr. Kamal Ranka
Designation :	Chairman cum Managing Director
Address :	7/8 Sidaarth, 42 R. G. Thadani Marg, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	19.12.1964
Date of Appointment :	19.10.2006
DIN No.:	00934876

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	U17120MH1997PLC111447	Ken Software Technologies Limited	Director	20-05-98	20-05-98	01-11-11	Active	NO
2	L24302RJ1976PLC001780	Modern Syntex (India) Limited	Managing director	19-10-09	19-10-06	-	Active	NO

Name :	Mr. Ravindra Raniwala
Designation :	Director
Address :	44, Jambu Dweep, Civil Lines, Rajbhawan Marg, Jaipur – 302 006, Rajasthan, India
Date of Birth/Age :	25.01.1956
Date of Appointment :	30.03.2000
DIN No.:	00506419

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	U74140RJ1991PTC006375	Raniwala Consultants Private Limited	Director	12-12-91	12-12-91	Active	NO
2	L24302RJ1976PLC001780	Modern Syntex (India) Limited	Director	30-03-00	30-03-00	Active	NO

Name :	Mr. Rajagopalan Venugopal
Designation :	Director
Address :	102, Tarigopula Residency, 35^th Main, BTM Layout, II Stage, Bangalore – 560 068, Karnataka, India
Date of Birth/Age :	05.06.1946
Date of Appointment :	29.03.2010
DIN No.:	00391817

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	L24302RJ1976PLC001780	Modern Syntex (India) Limited	Director	30-09-10	26-09-01	Active	NO

Name :	Mr. Hiralal Sharma
Designation :	Director
Address :	605-A, Mahsarowar Building, Near Chincholi Cross INC, Malad (West), Mumbai – 400 064, Maharashtra, India
Date of Birth/Age :	03.01.1951
Date of Appointment :	30.03.2000
DIN No.:	00352410

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	L31300RJ1982PLC002460	Modern Insulators Limited	Whole-time director	01-07-09	23-06-94	Active	NO
2	L24302RJ1976PLC001780	Modern Syntex (India) Limited	Director	30-03-00	30-03-00	Active	NO
3	L17124RJ1977PLC001758	Modern Denim Limited	Director	29-06-00	29-06-00	Active	NO
4	L17115RJ1980PLC002075	Modern Threads (India) Limited	Director	24-03-01	24-03-01	Active	NO
5	L17124RJ1976PLC001869	Modern Terry Towels Limited	Director	24-03-01	24-03-01	Active	NO
6	U51109MH2009PTC191078	Motile Power Trade Private Limited	Additional director	20-03-09	20-03-09	Active	NO

Name :	Mr. Devidas Tulsiram Gokhe
Designation :	Director
Address :	B-407, Sindhu Lokgram Kalyan, Thane – 421 306, Maharashtra, India
Date of Birth/Age :	04.07.1955
Date of Appointment :	30.12.2010
DIN No.:	01878132

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	L17120MH1982PLC026081	Emtex Industries (India) Limited	Nominee director	27-04-07	27-04-07	21-06-10	Active	YES
2	L24302RJ1976PLC001780	Modern Syntex (India) Limited	Nominee director	30-12-10	30-12-10	-	Active	NO

Name :	Mr. Shata Nand Sharma
Designation :	Whole Time Director
Address :	C-1, Modern Petrofiles Colony, Bamangam P. O., Taluka Karjan, Vadodara – 391 210, Gujarat, India
Date of Birth/Age :	10.06.1957
Date of Appointment :	01.04.2011
DIN No.:	03505812

KEY EXECUTIVES

Name :	Mr. Deepak Kumar Goyal
Designation :	Secretary
Address :	A-301, Amar Nagar-C, Panchawala Sirsi Road, Jaipur – 302 034, Rajasthan, India
Date of Birth/Age :	18.08.1981
Date of Appointment :	01.02.2011
PAN No.:	ARJPG5393G
Name :	Mr. M. P. Sethy
Designation :	Senior Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.09.2011

Names of Preference Shareholders	No. of Shares
Cosmic Holding Private Limited, India	450000
General Insurance Corporation of India, India	250000
The New India Assurance Company Limited, India	250000
United India Insurance Company Limited, India	210000
National Insurance Corporation Limited, India	170000
The Oriental Insurance Company Limited, India	170000
Total	1500000

As on 23.09.2011

Equity Share Breakup	Percentage of Holding
Category
Government companies	0.19
Public financial companies	24.80
Nationalised or other banks	0.14
Mutual funds	1.20
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	5.32
Bodies corporate	34.50
Other top fifty shareholders	1.06
Others	32.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Sale of Polyester Filament Yarn, Polyester Viscose Fabric and Polyester Viscose Yarn.

Products :

Product Description	ITC Code
Partially Oriented Yarn (POY)	540246.00
Polyester Filament Yarn (PFY)	540242.00
Polyester Viscose Fabric	551511.00

· PFY/POY Chips

· Fabric

· Scrap Sales

· Polycondensation Mechanical

· Spinning Mechanical

· Dyeing Mechanical

· Quality Control Laboratory

· Instruments

· Electrical

· Other Equipments

Exports :

Products :

Polyester Filament Yarn, Polyester Viscose Fabric and Polyester Viscose Yarn

Counties :

· Asian Countries

· European Countries

· Africa

· UK

Imports :

Products :

· Raw Material

· Machinery

Counties :

· China

· Middle East

Terms :

Selling :

L/C and Credit (60 days / 90 days)

Purchasing :

L/C and Credit (60 days / 90 days)

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity*	Installed Capacity (per annum)	Actual Production
Chips/POY/PFY	MT	Not Applicable	52500	82087

* De-licensed as per Government of India Notification No.S.O.477 (E) dated 25th July 1991.

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

· Bank of India

Mumbai Corporate Banking Branch, 70/80, M. G. Road, Mumbai – 400 023, Maharashtra, India

· ICICI Banking Corporation Limited

· State Bank of Bikaner and Jaipur

· Dena Bank

· Axis Bank Limited

· Indusind Bank

· State Bank of India

· Sanwa Bank Limited

· Mashreq Bank

· Bank of Baroda

· Union Bank of India

· Deutsche Bank

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Fully convertible debentures secured	58.997	58.997
Non-convertible debentures secured	1064.767	1131.267
Rupee term loans banks secured	187.500	341.865
Working capital loans banks secured	731.901	1040.237
Interest accrued due debentures secured	0.000	6.130
Interest accrued due other debt secured	603.101	601.232
Total	2646.266	3179.728

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Non-convertible debentures unsecured	57.527	57.958
Rupee term loans financial institutions unsecured	13.500	13.500
Foreign currency loans banks unsecured	814.842	814.842
Public deposits unsecured	40.719	41.723
Interest accrued due debentures unsecured	523.600	499.829
Interest accrued due other debt unsecured	54.969	54.969
Total	1505.157	1482.821

Banking Relations :	--
Auditors :
Name :	T. R. Chadha and Company Chartered Accountants
Address :	1, Smruti, Ground Floor, M. V. Panlosakar Road, Near Hanuman Cross Road No. 2, Vile Parle (East), Mumbai - 400 057, Maharashtra, India
PAN No.:	AAAFT1655Q
Other Associates :	Shubham Corporate Advisory Services (Private) Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.10/- each	Rs.1250.000 Millions
3500000	Preference Shares	Rs.100/- each	Rs.350.000 Millions
	Total		Rs.1600.000 Millions

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount
113498333	Equity Shares	Rs.10/- each	Rs.1134.983 Millions
1500000	Preference Shares	Rs.100/- each	Rs.150.000 Millions
	Total		Rs.1284.983 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
113498333	Equity Shares	Rs.10/- each	Rs.1134.983 Millions
1500000	Preference Shares	Rs.100/- each	Rs.150.000 Millions
	Less : Calls arrears		Rs.2.817 Millions
	Total		Rs.1282.166 Millions

Note

1. Equity Share Capital includes Rs.174.850 millions issued for consideration other than cash.

2. Preference shares of Rs.25.000 millions, Rs.59.000 millions and Rs.21.000 millions respectively were redeemable from December 05, March 06 and April 06 respectively in 28 equal quarterly installments without any past and future dividend as per settlement terms with the preference share holders. Preference Shares of Rs.45.000 millions were to be redeemed at Rs.4.500 millions as per settlement terms. Final redemption of Preference Shares will be on sanction of rehabilitation scheme by BIFR. The payment of Rs.86.496 millions made towards settlement is shown under Loans and Advances.

3. Equity share Application money represents subscription received pursuant to the restructuring / settlement scheme. Instruments will be issued on sanction of rehabilitation scheme by BIFR.

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		1282.166	1282.166	1632.166
2] Share Application Money		450.000	450.000	0.000
3] Reserves & Surplus		2192.929	2192.929	2370.417
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3925.095	3925.095	4002.583
LOAN FUNDS
1] Secured Loans		2646.266	3179.728	5500.294
2] Unsecured Loans		1505.157	1482.821	1613.578
TOTAL BORROWING		4151.423	4662.549	7113.872
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		8076.518	8587.644	11116.455
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1143.384	1372.058	1759.270
Capital work-in-progress		3.347	3.899	27.870
INVESTMENT		0.021	0.021	0.015
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	336.535	226.551	226.093
	Sundry Debtors	85.241	69.503	198.215
	Cash & Bank Balances	181.064	99.072	100.253
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2003.683	2400.860	1912.187
Total Current Assets		2606.523	2795.986	2436.748
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	136.464	105.335	111.294
	Other Current Liabilities	225.834	147.939	341.984
	Provisions	58.372	56.240	56.531
Total Current Liabilities		420.670	309.514	509.809
Net Current Assets		2185.853	2486.472	1926.939
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
OTHER ASSETS		4743.913	4725.194	7402.361
TOTAL		8076.518	8587.644	11116.455

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	6215.514	5046.157	5213.559
		Other Income	7.082	4.572	10.713
		TOTAL (A)	6222.596	5050.729	5224.272
Less	EXPENSES
		Consumption materials changes inventories	4895.261	3941.262	4972.351
		Manufacturing service costs	780.472	702.900
		Employee related expenses	177.403	163.191
		Administrative selling other expenses	123.247	105.194
		Exceptional income expense, net	(70.256)	(2724.421)
		TOTAL (B)	5906.127	2188.126	4972.351
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		316.469	2862.603	251.921
Less	INTEREST FINANCIAL CHARGES (D)		97.232	92.379	241.030
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		219.237	2770.224	10.891
Less/ Add	DEPRECIATION/ AMORTISATION (F)		237.956	254.257	255.294
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		(18.719)	2515.967	(244.403)
Less	TAX (H)		0.000	0.000	0.902
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		(18.719)	2515.967	(245.305)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(4725.194)	(7402.361)	(7157.056)
Add	AMOUNT TRANSFERRED RESERVES		0.000	161.200	0.000
	BALANCE CARRIED TO THE B/S		(4743.913)	(4725.194)	(7402.361)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	306.328	240.501	232.492
	TOTAL EARNINGS		306.328	240.501	232.492
	IMPORTS
		Raw Materials	60.532	54.762	77.673
		Capital Goods	0.190	0.000	3.224
		Components and Spares Parts	13.525	23.229	23.616
	TOTAL IMPORTS		74.247	77.991	104.513
	Earnings Per Share (Rs.)		(0.78)	--	(2.34)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(0.30)	49.81	(4.70)
Net Profit Margin (PBT/Sales)	(%)	(0.30)	49.86	(4.69)
Return on Total Assets (PBT/Total Assets}	(%)	(0.50)	60.36	(5.82)
Return on Investment (ROI) (PBT/Networth)		0.00	0.64	(0.06)
Debt Equity Ratio (Total Liability/Networth)		1.16	1.27	1.90
Current Ratio (Current Asset/Current Liability)		6.20	9.03	4.78

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Creditors due small micro enterprises	0.000	0.000	111.294
Creditors due others	136.464	105.335
Total	136.464	105.335	111.294

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions of the firm	YES
4.	Premises details	YES
5.	Type of Business	YES
6.	Line of Business	YES
7.	Promoter’s background	--
8.	No. of employees	YES
9.	Name of person contacted	YES
10.	Designation of contact person	YES
11.	Turnover of firm for last three years	NO
12.	Profitability for last three years	NO
13.	Reasons for variations <> 20%	--
14.	Estimation for coming financial year	NO
15.	Capital in the business	NO
16.	Details of sister concerns	--
17.	Major Suppliers	NO
18.	Major Customers	NO
19.	Payment terms	YES
20.	Export / Import details (is applicable)	YES
21.	Market information	--
22.	Litigation that the firm / promoter involved in	--
23.	Banking Details	YES
24.	Banking facility details	NO
25.	Conduct of the banking account	--
26.	Buyer visit details	--
27.	Financials, if provided	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

OPERATIONS

The year was highly volatile for the Polyester industry and witnessed extreme pressures both on top as well as bottom lines. The unprecedented increase in prices of PTA and MEG, the main input material coupled with the increase in power cost for exorbitant increase in crude oil price resulted in huge increase in cost of production. The Polyester industry in India particularly has been suffering for incessant capacity additions in past few years in a market which was already over supplied. It has put pressure on the profitability of the company too during the year.

During the year the Company has achieved turnover of Rs.6830.000 millions registering about 27% increase compared to the turnover of Rs.5410.000 millions in the previous year. The company could achieve reduction in net loss during the year despite adverse market conditions and global recession. The net loss during the year is Rs.89.000 millions compared to the net loss of Rs.208.400 millions in the previous year.

The Company is relentlessly putting all its efforts to reduce the cost and improve the operating margins but the profit of the company is still negative. In absence of profits, the directors are unable to declare any dividend for the year.

EXPORTS

The Company has achieved exports of about Rs.310.000 millions during the year compared to the exports of Rs.240.000 millions in the previous year despite of high volatility in the international market spreading over the year. The long spells of recessionary trend prevailing in global synthetic textile markets coupled with cheaper export from South East Asian countries has put extreme pressure on the prices and reduced the margins on exports to a large extent and it would still take sometime to improve. The Company is putting in all the efforts to search for new international markets to increase its export further.

RESTRUCTURING OF DEBTS AND SANCTION OF REVIVAL SCHEMEBY HON'BLE BIFR

The Company is making continues efforts for settlement of dues of the secured lenders and is glad to report that 97.35 % of the lenders have approved the settlement / restructuring of their dues. This has resulted into write back of principal and interest during the year also and the same has been included in the exceptional items shown under financial results. The Company is making continuous efforts for restructuring / sanction of settlement with remaining lenders. The Company has also filed a Draft Revival Scheme with the Hon'ble BIFR with copy to Operating Agency and all concerning parties pursuant to direction of Hon'ble BIFR on 5th April, 2011 while declaring the Company as Sick on the basis of fresh reference filed based on audited accounts for the year ended 31st March, 2010. The Operating Agency is now examining the Scheme for necessary action and circulation.

PUBLIC FIXED DEPOSITS

In view of the petition filed by the Company, the Hon'ble Company Law Board had passed an order on 23.1.2002 that, the repayment of fixed deposits shall be made by the company in accordance with the revival scheme as and when approved by the BIFR under the provisions of SICA. However payments on compassionate grounds are being made continuously by the Company as per the decision of the committee formed by Hon'ble CLB for this purpose.

CONTINGENT LIABILITIES NOT PROVIDED FOR (As on 31.03.2011)

1. Bank Guarantees and Letters of Credit outstanding Rs.82.299 millions

2. Claims and liabilities against the company not acknowledged as debts Rs.21.691 millions excluding interest, penalty, etc which is not ascertainable.

3. Excise duty demand disputed by the company Rs.59.167 millions

4. Fuel surcharge, Octroi Duty etc. disputed by the Company Rs.0.420 million

5. Disputed demand of Sales Tax Rs.31.248 millions

6. In respect of restructured debts, future payment obligation is to be fulfilled as stipulated, failing which the original liability will fall back with interest and panel interest , amount of which is not ascertainable. However, SUUTI has restored the total liabilities due to default in payment of OTS amount and have intimated the outstanding dues of Rs.9149.200 millions including unsecured debts, dues of UTI MF, overdue and penal interest etc. as per their as on 31st March, 2011. The company has disputed the entire dues of UTI MF and is in the process of renegotiating the OTS proposal with them, pending which, unpaid liability of Rs.136.000 millions is kept in books of accounts as per settlement terms.

FIXED ASSETS

· Freehold Land

· Leasehold Land

· Building and Roads

· Plant and Machinery

· Furniture, Fixtures and Office Equipments

· Vehicles

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.48.92
UK Pound	1	Rs.77.31
Euro	1	Rs.64.12

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.