MIRA INFORM REPORT

Report Date :

15.02.2012

IDENTIFICATION DETAILS

Name :	LEADER VALVES LIMITED
Registered Office :	S-3, S-4, Industrial Town, Jalandhar-144004, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.12.1979
Com. Reg. No.:	16-003792
Capital Investment / Paid-up Capital :	Rs.12.425 Millions
CIN No.: [Company Identification No.]	U29120PB1979PLC003792
TAN No.: [Tax Deduction & Collection Account No.]	JLDL00012F
PAN No.: [Permanent Account No.]	AAACL2362H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Walves.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (57)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sounds. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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 – 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 :	S-3, S-4, Industrial Town, Jalandhar-144004, Punjab, India
Tel. No.:	91-181-2490666/ 2490777/ 2490888/ 2490999/ 6570919 / 2290341
Fax No.:	91-181-2290894/ 2294256
E-Mail :	info@leadervalves.com anujoffice2000@yahoo.com
Website :	www.leadervalves.com
Branches :	Located At Delhi Bhubaneshwar Chennai Coimbatore Mumbai  Kochi

DIRECTORS

As on 30.09.2011

Name :

Mr. Jatinder Kumar Beri

Designation :

Chairman and Managing Director

Address :

R/o-334, Lajpat Nagar, Jalandhar

Date of Birth/Age :

30.04.1943

Date of Appointment :

29.12.1979

DIN No.:

00831215

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	U29120PB1979PLC003792	LEADER VALVES LIMITED	Managing director	1/4/2008	29/12/1979	-	Active	NO
2	U67120PB1988PTC008431	P N BERRY INVESTMENTS PRIVATE LIMITED	Managing director	27/05/1988	27/05/1988	-	Active	NO
3	U34300PB1995PLC016039	LEADER HIGH PRESSURE FITTINGS INDIA LIMITED	Director	15/03/1995	15/03/1995	-	Active	NO
4	U28939PB1995PTC016795	B.M. T SAND COATINGS AND ENGINEERING PRIVATE LIMITED	Managing director	19/07/1995	19/07/1995	-	Active	NO

Name :

Mrs. Ambika Beri

Designation :

Director

Address :

R/o-334, Lajpat Nagar, Jalandhar

Date of Birth/Age :

22.02.1970

Date of Appointment :

01.06.1997

DIN No.:

01201417

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	U29120PB1979PLC003792	LEADER VALVES LIMITED	Whole-time director	1/4/2008	1/6/1997	-	Active	NO
2	U28939PB1995PTC016795	B.M. T SAND COATINGS AND ENGINEERING PRIVATE LIMITED	Director	18/07/1997	18/07/1997	-	Active	NO
3	U67120PB1988PTC008431	P N BERRY INVESTMENTS PVT LIMITED	Director	11/8/1999	11/8/1999	-	Active	NO

Name :

Mrs. Ayushi Beri

Designation :

Director

Address :

R/o-334, Lajpat Nagar, Jalandhar

Date of Birth/Age :

22.01.1973

Date of Appointment :

06.11.1998

DIN No.:

01201457

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	U28939PB1995PTC016795	B.M. T SAND COATINGS AND ENGINEERING PRIVATE LIMITED	Director	18/07/1995	18/07/1995	-	Active	NO
2	U29120PB1979PLC003792	LEADER VALVES LIMITED	Whole-time director	1/4/2008	6/11/1998	-	Active	NO
3	U67120PB1988PTC008431	P N BERRY INVESTMENTS PRIVATE LIMITED	Director	11/8/1999	11/8/1999	-	Active	NO

Name :

Mrs. Purnima Beri

Designation :

Director

Address :

R/o-334, Lajpat Nagar, Jalandhar

Date of Birth/Age :

13.10.1949

Date of Appointment :

29.12.1979

DIN No.:

01201488

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	U29120PB1979PLC003792	LEADER VALVES LIMITED	Whole-time director	1/4/2008	29/12/1979	-	Active	NO
2	U67120PB1988PTC008431	P N BERRY INVESTMENTS PRIVATE LIMITED	Director	27/05/1988	27/05/1988	-	Active	NO
3	U34300PB1995PLC016039	LEADER HIGH PRESSURE FITTINGS INDIA LIMITED	Managing director	15/03/1995	15/03/1995	-	Active	NO
4	U28939PB1995PTC016795	B.M. T SAND COATINGS AND ENGINEERING PRIVATE LIMITED	Director	19/07/1995	19/07/1995	-	Active	NO

Name :

Mr. Hemant Beri

Designation :

Director

Address :

R/o-334, Lajpat Nagar, Jalandhar

Date of Birth/Age :

26.02.1972

Date of Appointment :

06.10.1995

DIN No.:

01201529

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	U28939PB1995PTC016795	B.M. T SAND COATINGS AND ENGINEERING PRIVATE LIMITED	Director	18/07/1995	18/07/1995	-	Active	NO
2	U29120PB1979PLC003792	LEADER VALVES LIMITED	Whole-time director	1/4/2008	6/10/1995	-	Active	NO
3	U67120PB1988PTC008431	P N BERRY INVESTMENTS PRIVATE LIMITED	Director	11/8/1999	11/8/1999	-	Active	NO
4	U34300PB1995PLC016039	LEADER HIGH PRESSURE FITTINGS INDIA LIMITED	Director	15/03/2007	15/03/2007	-	Active	NO

Name :

Mr. Sudarshan Lal Bajaj

Designation :

Director

Address :

R/o, 321, Shaheed Udham Singh Nagar, Jalandhar

Date of Birth/Age :

02.06.1941

Date of Appointment :

22.08.2005

DIN No.:

01599263

Name :

Mr. Vinod Dhanprakash sharma

Designation :

Director

Address :

R/o, C-33, Cozy Home, Pali hills, Mumbai – 56

Date of Birth/Age :

22.08.1943

Date of Appointment :

31.08.1999

DIN No.:

01643304

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	U28920MH1975PTC018486	RAJVIN ENGINEERING PRIVATE LIMITED	Director	18/08/1975	18/08/1975	-	Active	NO
2	U28920MH1991PTC061036	PANAMETRICS ENGINEERING PRIVATE LIMITED	Director	14/04/1991	14/04/1991	20/08/2010	Active	NO
3	U14548MH1997PTC107739	TUBELINE FABRICATORS AND ENGINEERS (INDIA) PRIVATE LIMITED	Director	5/5/1997	5/5/1997	-	Active	NO
4	U51900MH1995PTC085522	BEACON MERCANTILE PRIVATE LIMITED	Director	15/02/1999	15/02/1999	-	Active	NO
5	U29120PB1979PLC003792	LEADER VALVES LIMITED	Director	31/08/1999	31/08/1999	-	Active	NO
6	U31909MH1982PTC026597	CONSTELLATION DYNAMATICS PRIVATE LIMITED	Director	9/8/2010	9/8/2010	-	Active	NO
7	U74900MH2010PTC207828	IVT CONTROLS INDIA PRIVATE LIMITED	Director	18/09/2010	18/09/2010	25/11/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Purnima Beri Mr. Hemant Beri (Jointly with)	1275
Purnima Beri J K Beri (Jointly with)	1875
Hemant Beri J K Beri (Jointly with)	1275
Jatinder Kumar Beri Purnima Beri (Jointly with)	1500
M/s. P.N. Ben Inv, Private Limited, Jalandhar, India	6045
Jatinder Kumar Beri Purnima Beri Hemant Beri (Jointly with)	1875
Purnima Beri Ambika Beri Ayushi Beri (Jointly with)	1980
Ayushi Beri Hemant Beri (Jointly with)	150
Hemant Beri Ayushi Beri (Jointly with)	300
Jatinder Kumar Beri Purnima Beri Hemant Beri (Jointly with)	1500
Jatinder Kumar Beri Purnima Beri (Jointly with)	1688
Purnima Devi Hemant Beri Master Jey Dev Beri (Jointly with)	30
Purnima Devi Hemant Beri Master Jey Dev Beri (Jointly with) Ambika Beri M/N/ Guardian Ambika Beri	1305
Purnima Beri Ambika Beri Master Jey Dev Beri M/N/ Guardian Ambika Beri	1575
Hemant Beri Ambika Beri (Jointly with) Master Jey Dev Beri M/N/ Guardian Ambika Beri	1500
Hemant Beri Ambika Beri (Jointly with) Master Jey Dev Beri M/N/ Guardian Ambika Beri	150
Jatinder Kumar Beri Ambika Beri (Jointly with) Master Jey Dev Beri M/N/ Guardian Ambika Beri	1875
Purnima Beri Hemant Beri (Jointly with) Ambika Beri	2123
Jatinder Kumar Beri Hemant Beri (Jointly with) Purnima Beri	8457
Hemant Beri Purnima Beri J.K. Beri	13919
Hemant Beri (Jointly with) Ayushi Beri Purnima Beri J.K.Beri	9173
Ambika Beri Hemant Beri (Jointly with) Purnima Beri J.K. Beri	11055
Ayushi Beri Hemant Beri Purnima Beri J.K. Beri	10641
Late. Dwarka Dass Sehgal	3732
Jatinder Beri Purnuma Beri	4296
Jatinder Beri Purnuma Beri (Jointly with) Hemant Beri	1500
Jatinder Beri Purnuma Beri (Jointly with) Hemant Beri	30001
Jatinder Kumar Beri Purnima Beri (Jointly with) Hemant Beri	1875
Hemant Beri Jaydev Beri (Minor) M/N/ Guardian Ambika Beri	60
Jatinder Kumar Beri Hemant Beri (Jointly with)	1500
Jatinder Kumar Beri	15
Total	124245

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	4.87
Directors or relatives of Directors	95.13
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Walves.
Products:	Value and Cocks Boiler mountings

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Punjab National Bank, Old Railway Road, Jalandhar – 144001, Punjab, India
• Punjab National Bank, Hong Kong
• ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Punjab National Bank, Railway Road Branch Secured Against Stock, Bills and Receivables	7.049	51.759
From Punjab National Bank, Railway Road Branch Secured Against Machinery and Building	0.000	2.031
From Punjab National Bank, Hong Kong	7.134	7.245
From ICICI Bank Limited Secured Against Cars	0.015	2.959
Total	14.198	63.994
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Sundry Deposits From Directors	7.285	7.434
From Others	0.136	0.136
Deposit From Dealers	9.617	9.702
Total	17.038	17.272

Banking Relations :	--
Auditors :
Name :	V.P. Vijh and Company Chartered Accountant
Address :	2^nd Floor, K.K. Tower, Opposite circuit House, Jalandhar- 144001, Punjab, India
Tel. No.:	91-181-2220922/ 2452202/ 4622922
Fax No.:	91-181-22311447
PAN.:	AABHV1419B
Associates:	Leader Exports BMT Sand Coating and Engineering (Private) Limited P.N. Berry and company P N Berry Investment (Private) Limited
Other Related Parties	M/s Rajvin Engineers (Private) Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
124245	Equity Shares	Rs.100/- each	Rs.12.424 Millions

Note:

Out of above 78750 Equity shares of Rs.100/- each fully paid have been allotted for consideration other than cash

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		12.425	12.425	12.425
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		310.000	237.578	157.365
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		322.425	250.003	169.790
LOAN FUNDS
1] Secured Loans		14.199	63.994	65.963
2] Unsecured Loans		17.038	17.272	17.953
TOTAL BORROWING		31.237	81.266	83.916
DEFERRED TAX LIABILITIES		18.686	17.203	3.058
TOTAL		372.348	348.472	256.764
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		186.224	162.979	91.555
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.783	0.783	0.783
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	92.448	71.444	70.060
	Sundry Debtors	244.777	236.627	171.311
	Cash & Bank Balances	25.453	25.464	33.195
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	105.000	72.748	50.116
Total Current Assets		467.678	406.283	324.682
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	189.553	162.183	113.361
	Other Current Liabilities	190.028	10.305	8.854
	Provisions	73.756	49.085	38.041
Total Current Liabilities		282.337	221.573	160.256
Net Current Assets		185.341	184.710	164.426
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		372.348	348.472	256.764

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	734.052	685.232	604.095
		Other Income	52.445	37.164	49.869
		Depreciation Written Back	0.000	41.423	0.000
		Excise Duty	0.550	0.000	0.453
		TOTAL (A)	787.047	763.819	654.417
Less	EXPENSES
		Raw Material consumed	196.225	184.571	169.311
		Other Manufacturing Expenditure	278.468	256.908	228.487
		Excise Duty paid	51.202	35.808	47.859
		Finished/ Semi Finished goods	23.920	33.350	25.814
		Excise Duty Adjustment Account on Stock of finished goods	0.000	0.070	0.000
		Personnel Expenses	60.819	53.418	38.438
		Office ADMIN Expenses	17.340	18.272	16.387
		Selling and distribution Expenses	40.651	37.532	32.176
		TOTAL (B)	668.625	619.929	558.472
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		118.422	143.890	95.945
Less	FINANCIAL EXPENSES (D)		7.535	9.723	12.392
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		110.885	134.167	83.553
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.716	9.906	11.825
	PROFIT BEFORE TAX (E-F) (G)		100.169	124.261	71.728
Less	TAX (I)		28.157	43.300	15.746
	PROFIT AFTER TAX (G-I) (J)		72.012	80.961	55.982
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		218.922	137.961	81.979
	BALANCE CARRIED TO THE B/S		290.934	218.922	137.961
	IMPORTS
		Import of Plant and Machinery	0.845	21.966	0.000
		Import of Car	0.000	0.000	7.283
		Import of Spares for Repair of Plant and Machinery	1.239	0.260	0.316
		Import of stores Spares and Semi Finished Goods	41.421	28.365	18.284
	TOTAL IMPORTS		43.505	50.591	25.883
	Earnings Per Share (Rs.)		579.57	651.62	450.58

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.15	10.60	8.55
Net Profit Margin (PBT/Sales)	(%)	13.65	18.13	11.87
Return on Total Assets (PBT/Total Assets}	(%)	15.32	21.83	17.23
Return on Investment (ROI) (PBT/Networth)		0.31	0.50	0.42
Debt Equity Ratio (Total Liability/Networth)		0.97	1.21	1.44
Current Ratio (Current Asset/Current Liability)		1.66	1.83	2.03

LOCAL AGENCY FURTHER INFORMATION

Operation Performance:

In the current year of market recession, the company has been able to maintain its growth and witnessed an increase of Rs.48.800 Million in its turnover. In the coming years, the company is hopeful for the better results and maintaining its growth rate.

Financial and Operational Performance:

With the constant efforts and devotion of its management and workers, the company has achieved a sales turnover of Rs.734.000 Millions as compared to last year figure of Rs.685.200 Millions recording a growth of 7.12% which is the remarkable achievement for any company in this Industry. The directors are expecting and putting constant efforts to father improve / increase the production and sales and achieve higher profitability in the coming years.

Future Outlook / Expansion:

The company has achieved the highest ever sales during the year under review since inception of the company. Further, considering the demand of the customers. The comp-any is in process to enlarge its production base and for that Purpose further new machinery is proposed to be installed. The company is regularly conversing with its bankers and other financial institutions to provide finance for the expansion in production facilities and it is expected that by proposed induction f new machinery and by up gradation of technology, the production level and sales would be further improved during the current year.

Contingent Liabilities

Particular	31.03.2011	31.032010
A) Guarantees given by Banks and other	85.919	80.027
B) Bonds executed in favour of excise authorities	10.000	10.000
C) Claims Against the company not acknowledged as debts demands raised by Excise / ESI departments disputed n appeals
(i) For the period 1995-96 case pending with excise tribunal	0.160	0.600
(ii) For the period 1997-98 case under excise law pending with supreme court	0.395	0.395
(iii) for the period 2006-07 case pending with commissioner appeal CE	0.078	0.078
(iv) ESI case pending in high court relating to 1975-1980	0.187	0.187
(v) ESI case pending in high court relating o 1954-1986	0.191	0.191

Form 8

Corporate identity number of the company	U29120PB1979PLC003792
Name of the company	Leader Valves Limited
Address of the registered office or of the principal place of business in India of the company	S-3, S-4, Industrial Town, Jalandhar-144004, Punjab, India Anujoffice2000@yahoo.com
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	10048909
Type of charge	Immovable Property
Particular of charge holder	Punjab National Bank, Old Railway Road, Jalandhar – 144001, Punjab, India Bo3513@pnb.co.in
Nature of instrument creating charge	Letter of Continuity Dated 21.01.2011 To secure the immovable property of company for the loan facilities availed by the group company as per following details: M/s Leader Exports = Rs.20.000 Millions Leader high pressure fittings (India) limited=3.500 Million BMT sand coatings and engineers private limited =0.700 Million Total =Rs.24.200 Millions
Date of instrument Creating the charge	21.02.2011
Amount secured by the charge	Rs24.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: A per Respective Agreements with Bank Terms of repayment: As per agreement with the Bank . Margin: As per agreement with the Bank Extent and operation of the charge: 100 %
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Conveyance deed issued on 26.10.1954 by director of industries, jalandhar for the property situated at industrial area, jalandhar in the name of leader vales limited
Date of instrument modifying the charge	07.03.2009
Particulars of the present modification	The original charge dated 10.03.2007 was modified on 09.03.2009 for Rs.2.420 Millions. However, by this modification on 21.01.2011, the amount of charge Rs.2.420 Million (Leader exports Rs.20.000 + Leader High pressure fittings India Limited Rs.3.500 + BMT sand coatings private limited Rs.0.700 Million ) remain the same. However, now the charge is secured by immovable property of # deed of conveyance issued on 26.10.1954 by Director of Industries, Jalandhar only. The charge of properties stand vacated.

Fixed Assets:

• Land and Building
• Plant and Machinery
• Data Proc. Center
• Furniture and Fixture
• Patterns
• Office Equipment
• Vehicles
• Library Books
• Agricultural Equipment
• Live Stock
• Workers Welfare Equipment

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.49.33
UK Pound	1	Rs.77.41
Euro	1	Rs.66.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		57

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	-

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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.