MIRA INFORM REPORT

Report Date :

18.02.2012

IDENTIFICATION DETAILS

Name :	ZEP INFRATECH LIMITED (w.e.f. 26.04.2011)
Formerly Known As :	ZEPPELIN MOBILE SYSTEMS INDIA LIMITED
Registered Office :	Abhijit, 7^th Floor, Mithakhali Six Road, Ellisbridge, Ahmedabad-380006, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.02.1994
Com. Reg. No.:	04-50189
Capital Investment / Paid-up Capital :	Rs.12.986 Millions
CIN No.: [Company Identification No.]	U74899GJ1994PLC050189
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers of Aluminium Shelters
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 2700000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. There appears some dip in the turnover profitability of the company. However, 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 :	Abhijit, 7^th Floor, Mithakhali Six Road, Ellisbridge, Ahmedabad-380006, Gujarat, India
Tel No.:	Not Available
Fax No.:	Not Available
E-Mail :	hiteshmehta@sintex.co.in zmi@zepinfratech.com
Website :	http://www.zepinfratech.com
Factory :	B-193-A, Phase-II, Noida-201305, Uttar Pradesh, India
Tel. No.:	91-120-2563480/ 83/ 5519450/ 52/ 3964568

DIRECTORS

As on 30.09.2011

Name :	Mr. Amit Dineshchandra Patel
Designation :	Director
Address :	Vrindava, Near Manali Apartment, Aopang Manav Mandal Workshop, Dr. V S Road, Vastrapur, Ahemedabad-3800152, Gujarat, India
Date of Appointment :	04.05.2006
DIN No.:	00171035

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	U65910GJ1983PTC006081	Denis Trades and Investments Private Limited	Director	07-12-88	07-12-88	-	Active	NO
2	L17110GJ1931PLC000454	Sintex Industries Limited	Managing director	01-05-10	21-10-93	-	Active	NO
3	U65990MH1993PTC074666	Kolon Investments Private Limited	Director	22-10-93	22-10-93	-	Active	NO
4	U65910GJ1995PTC028055	Opel Securities Private Limited	Director	13-03-97	13-03-97	03-02-11	Active	NO
5	U17115GJ2001PLC039370	Sintex Power Limited	Director	30-03-01	30-03-01	25-03-09	Active	NO
6	U74899GJ1994PLC050189	Zep Infratech Limited	Director	04-05-06	04-05-06	-	Active	NO
7	U01122GJ2007PTC050881	Brahma Farms and Cultivators Private Limited	Director	21-05-07	21-05-07	-	Active	NO
8	U25199GJ2007PLC051364	Bright Autoplast Limited	Director	23-07-07	23-07-07	-	Active	NO
9	U01403GJ2007PTC052432	Alokik Agri Farms Private Limited	Director	26-12-07	26-12-07	-	Active	NO
10	U45201GJ2008PTC053606	Atire Land Developers Private Limited	Director	16-04-08	16-04-08	-	Active	NO
11	U45201GJ2008PTC053601	Atik Land Developers Private Limited	Director	16-04-08	16-04-08	-	Active	NO
12	U23300GJ2008PLC052581	Sintex Oil and Gas Limited	Director	29-09-09	29-09-09	-	Active	NO
13	U45201GJ2009PLC058702	Sintex Infra Projects Limited	Director	25-11-09	25-11-09	-	Active	NO
14	U45201GJ2010PTC060326	Patel Dwellers Private Limited	Director	20-04-10	20-04-10	-	Active	NO
15	U17122GJ2007PTC049823	Saumya Textiles Private Limited	Director	27-04-10	27-04-10	-	Active	NO

Name :	Mr. Pranav Arunprasad Patel
Designation :	Director
Address :	Mangalam, Behind Apang Manav Mandal, Dr. V.S. Raod, Ahmedabad-380015, Gujarat, India
Date of Appointment :	15.03.2007
DIN No.:	00249074

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	L51909GJ1984PLC007374	Som Shiva (Impex) Limited	Whole-time director	01-11-11	21-02-86	-	Active	NO
2	U24299GJ1958PTC000910	Mas Chemicals Industries Private Limited	Director	03-03-92	03-03-92	-	Active	NO
3	L63910GJ1994PLC021915	Prism Finance Limited	Managing director	28-04-94	28-04-94	30-03-09	Active	NO
4	U45201GJ1994PTC023361	Akshar Estates Private Limited	Director	20-10-94	20-10-94	-	Active	NO
5	U65910GJ1994PTC023647	Samurai Holdings Private Limited	Director	23-11-94	23-11-94	30-03-09	Active	NO
6	U74899GJ1994PLC050189	Zep Infratech Limited	Director	15-03-07	15-03-07	-	Active	NO
7	U45300GJ2007PTC050882	Clariant Buildcon Private Limited	Director	21-05-07	21-05-07	30-03-09	Active	NO
8	U45209GJ2008PTC052528	Anahat Buildcon Private Limited	Director	03-01-08	03-01-08	30-03-09	Active	NO
9	U70101GJ2008PTC053084	Arris Estates Private Limited	Director	28-02-08	28-02-08	30-03-09	Active	NO
10	U45201GJ2008PTC053103	Billet Estates Private Limited	Director	29-02-08	29-02-08	30-03-09	Active	NO
11	U29259GJ1992PLC017353	Sintex International Limited	Director	13-09-08	03-06-08	-	Active	NO
12	U65910GJ1984PTC007508	Bar Magnet Investment Private Limited	Director	15-10-08	15-10-08	17-08-09	Active	NO
13	U45201GJ2010PTC060326	Patel Dwellers Private Limited	Director	20-04-10	20-04-10	-	Active	NO
14	U45200GJ2010PTC061814	Epistyle Propcon Private Limited	Director	31-07-10	31-07-10	-	Active	NO
15	U45200GJ2010PTC061838	Fillet Realty Private Limited	Director	03-08-10	03-08-10	-	Active	NO
16	U45200GJ2010PTC061851	Cony Realty Private Limited	Director	04-08-10	04-08-10	-	Active	NO
17	U17119GJ1982PTC005535	Phoenix Fabrics Private Limited	Director	30-09-11	05-11-10	-	Active	NO

Name :	Mr. Laxmiraj Mansinhji Rathod
Designation :	Director
Address :	24, Heritage Homes, Thaltej – Shilaj Road, Ahmedabad-380054, Gujarat, India
Date of Appointment :	15.03.2007
DIN No.:	00495270

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	U65910GJ1994PLC021715	Denis Finance Limited	Director	25-09-95	25-09-95	-	Active	NO
2	U74140GJ1980PLC003820	Akshat Consultancy Limited	Director	11-08-96	11-08-96	-	Active	NO
3	U17115GJ2001PLC039370	Sintex Power Limited	Director	30-03-01	30-03-01	01-01-09	Active	NO
4	L24132UP1990PLC012391	Hindustan Bio-Tech- Limited	Director	16-07-01	16-07-01	01-01-09	Active	NO
5	U45201GJ2004PTC044797	Saral Realty Private Limited	Director	24-09-04	24-09-04	13-07-11	Active	NO
6	U74899GJ1994PLC050189	Zep Infratech Limited	Director	15-03-07	15-03-07	-	Active	NO
7	U25199GJ2007PLC051364	Bright Autoplast Limited	Director	23-07-07	23-07-07	-	Active	NO
8	U23300GJ2008PLC052581	Sintex Oil and Gas Limited	Director	29-09-09	29-09-09	30-03-11	Active	NO

Name :	Mr. Ulrich Gottefried Carl Ernst Korte
Designation :	Director
Address :	Robert-Schumann- Strabe 9 Al, Markdorf-88677, Germany
Date of Appointment :	06.11.2000
DIN No.:	02590726

Name :	Mr. Bipin Kantilal Patel
Designation :	Alternate director
Address :	1-Laxmi Nivas, Shantinagar Society, Vadaj, Ahmedabad – 380013, Gujarat, India
Date of Appointment :	11.02.2010
DIN No.:	00245212

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	U74140GJ1980PLC003820	Akshat Consultancy Limited	Director	21-03-94	21-03-94	-	Active	NO
2	U74899GJ1994PLC050189	Zep Infratech Limited	Alternate director	11-02-10	11-02-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Sintex Industries Limited, India	1298540
Amit D Patel Joint with Sintex Industries Limited, India	10
L. M. Rathod Joint with Sintex Industries Limited, India	10
Dineshchandra B Patel Joint with Sintex Industries Limited, India	10
S. B. Dangayach Joint with Sintex Industries Limited, India	10
Rahul A Patel Joint with Sintex Industries Limited, India	10
Anuprasad P. Patel Joint with Sintex Industries Limited, India	10
Total	1298600

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage of Holding
Bodies corporate (not mentioned above)	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Aluminium Shelters

Products :

Product Description	ITC Code
Pre-fabricated building (Telecom Shelter)	94060091
Insulated Truck Body and Ambulances	8707

• Telecom Shelter
• Insulated Bodies – Kool Cargo
• Ambulance Bodies
• Mobile Clinics and Hospitals
• Torsion Free Systems
• Pre Fabricated Building Shelter

PRODUCTION STATUS

As on 31.03.2009

Particulars	Actual Production
Pre-fabricated building (Telecom Shelter)	4548
Insulated Truck Body and Ambulances	15

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of India, Corporate Finance Branch, 58, Shrimali Society, Ahmedabad-380009, Gujarat, India
• Vijaya Bank, A-5, Sector-19, Noida, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans secured	141.900	175.100
Working capital loans secured	362.184	344.860
Loans taken for fixed assets secured	1.697	0.389
Total	505.781	520.349
Note: Secured by first charge on movable and immovable assets of the company and collaterally secured by equitable mortgage of factory land and building situated at Noida (Uttar Pradesh) and Indore (Madhya Pradesh) Secured by hypothecation of the entire current assets including inventory, receivables etc of the company and further collaterally secured by second charge on the fixerd assets of the fixed assets of the company situated at Noida (Uttar Pradesh) and Indore (Madhya Pradesh) Under Hire Purchase arrangement where the vendors have a lien on and right of repossession of specific assets. out of the above loans, amount payable within 12 months in Rs.33.494 Millions
Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Rupee term loans unsecured	20.000	0.000
Deposits related parties unsecured	229.908	187.397
Total	249.908	187.397
Note: 1. Deposits related parties unsecured is pertaining to the unsecured loans taken from Sintex Industries Limited which is its holding company. 2. Out of the above total loans, payable within 12 months is Rs. 20.000 Millions

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	3^rd Floor, “Heritage”, Near Gujarat Vidyapith, Ashram Road, Ahmedabad-380014, Gujarat, India
Tel. No.:	91-79-27582542/ 27582543/ 66073100
Fax No.:	91-79-27582551
PAN No.:	AABFD7919A
Holding Company :	Sintex Industries Limited L17110GJ1931PLC000454

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1298600	Equity Shares	Rs. 10/- each	Rs.12.986 Millions

Notes:

(Out of the above 1298600 shares are held by the holding company Sintex Industries Limited and its nominees)

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		12.986	12.986	6.000
2] Share Application Money		0.000	0.000	350.000
3] Reserves & Surplus		670.965	661.967	293.741
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		683.951	674.953	649.741
LOAN FUNDS
1] Secured Loans		505.781	520.349	217.466
2] Unsecured Loans		249.908	187.397	479.241
TOTAL BORROWING		755.689	707.746	696.707
DEFERRED TAX LIABILITIES		35.042	27.493	16.723
TOTAL		1474.682	1410.192	1363.171
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		599.510	619.643	609.628
Capital work-in-progress		0.000	0.000	8.832
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	106.985	88.806	89.119
	Sundry Debtors	802.401	835.699	829.228
	Cash & Bank Balances	8.829	10.166	35.011
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	164.064	108.458	48.116
Total Current Assets		1082.279	1043.129	1001.474
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	198.487	243.495	250.070
	Other Current Liabilities	0.012	0.012	0.021
	Provisions	8.608	9.073	6.672
Total Current Liabilities		207.107	252.580	256.763
Net Current Assets		875.172	790.549	744.711
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1474.682	1410.192	1363.171

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1162.502	1338.393	1108.228
		Other Income	3.933	4.727	10.475
		TOTAL (A)	1166.435	1343.120	1118.703
Less	EXPENSES
		Consumption materials changes inventories	416.903	447.993
		Manufacturing service costs	174.155	311.390
		Employee related expenses	311.336	289.672
		Administrative selling other expenses	114.781	139.229
		TOTAL (B)	1017.175	1188.284	928.064
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		149.260	154.836	190.639
Less	FINANCIAL EXPENSES (D)		85.345	74.004	49.629
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		63.915	80.832	141.01
Less/ Add	DEPRECIATION/ AMORTISATION (F)		37.225	35.043	18.150
	PROFIT BEFORE TAX (E-F) (G)		26.690	45.789	122.860
Less	TAX (I)		10.120	12.981	47.903
	PROFIT AFTER TAX (G-I) (J)		16.570	32.808	74.957
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		273.986	252.274	190.827
Less	APPROPRIATIONS		9.571	11.096	13.510
		Transfer to General Reserve
		Dividend
		Tax on Dividend
	BALANCE CARRIED TO THE B/S		280.985	273.986	252.274
	TOTAL EARNINGS		5.855	12.919	30.106
	IMPORTS
		Raw Materials	NA	3.316	0.000
		Stores & Spares		0.262	0.000
		Capital Goods		0.000	25.250
	TOTAL IMPORTS		NA	3.578	25.250
	Earnings Per Share (Rs.)		12.76	34.25	124.93

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.42	2.44	6.70
Net Profit Margin (PBT/Sales)	(%)	2.30	3.42	11.09
Return on Total Assets (PBT/Total Assets}	(%)	1.59	2.75	7.63
Return on Investment (ROI) (PBT/Networth)		0.04	0.07	0.19
Debt Equity Ratio (Total Liability/Networth)		1.41	1.42	1.47
Current Ratio (Current Asset/Current Liability)		5.23	4.13	3.90

LOCAL AGENCY FURTHER INFORMATION

Note:

The register office of the company has been shifted from E-403 Som Vihar Apartment, R K Puram, New Delhi-110022, India to present address w.e.f. 06.03.2007

Operations and Financials:

During the year, the gross sales was Rs.1279.950 Millions as compared to Rs.1467.556 Millions in the previous year and the net sales were Rs.1162.502 Millions as compared to Rs.1338.393 Millions in the previous year. The main reason for reduction in the turnover may be attributed to slow down the pace of the industry and sharing arrangements amongst players in this field. Profit before tax was Rs.26.690 Millions as compared to Rs.45.790 Millions in the previous year. After providing for income tax of Rs.13.053 Millions (incl. Deferred Tax of Rs. 7.549 Millions) and excess provision of tax in earlier year Rs.2.933 Millions, Profit after tax was Rs.16.570 Millions.

Status in 2010-11 reflected in the following numbers:

· 12.78% decrease in gross turnover of the company to Rs.1279.950 Millions.

· 3.60% reduction in EBIDTA to Rs.149.260 Millions.

· 41.70% reduction in PBT to Rs.26.690 Millions.

· 49.49% reduction in PAT to Rs.16.570 Millions.

The Sales configuration has shown the conscious strategy by lowering dependence on telecom duly shift to other potential opportunities. The other avenues such prefab, infra/ civil construction has contributed 38 to the sales in Year 2010- 11 against 15 over the last fiscal. The Indian telecom Industry is passing through the challenging phase witnessing cutthroat competition, dropping revenues, EBIDTA.

The acquisition s and consolidation started during the year will likely to continue and the year 2011 onwards the business will continue to be challenging. The expected 3 G technology rollout will marginally change the demand for passive infrastructure products and services.

Subject plans to diversify to Infrastructure segment by winning EPC (Engineering, Procurement and Commissioning) contracts and prefabricated shelters business with defense and public sector undertakings. A Collective initiative is exercised to form the Vision of the organization; to become an infrastructure Company considering the huge potential for growth in the sector by using the capability and competence hence two years turnaround strategy is formed. Accordingly the organization is built and restructured by hiring professional management. The scope for the growth in both the segments is enormous and scalable.

Finance:

Due to competitive market conditions, profit before taxes has gone down as compared to previous year. The Earnings per share is recorded at (Rs.12.76) as compared to previous year (Rs.34.25). Company was regular in repayment of term loans and interest thereon.

Form 8:

Corporate identity number of the company	U74899GJ1994PLC050189
Name of the company	ZEP INFRATECH LIMITED
Address of the registered office or of the principal place of business in India of the company	Abhijit, 7^th Floor, Mithakhali Six Road, Ellisbridge, Ahmedabad-380006, Gujarat, India E-Mail : hiteshmehta@sintex.co.in
This form is for	Modification of Charge
Charge identification number of the modified	10065038
Type of charge	Immovable property
Particular of charge holder	State Bank of India, Corporate Finance Branch, 58, Shrimali Society, Ahmedabad-380009, Gujarat, India E-mail : sundar.n@sbi.co.in
Nature of instrument creating charge	Memorandum of deposit for creation of further charge for term loan/ overall limit the initial charge is created by a deed of mortgage.
Date of instrument Creating the charge	28.12.2009
Amount secured by the charge	Rs.775.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit- At 0.75% Below SBAR Presently Effective Rate Is 11.00% P. A. With Monthly Rests TL-- At SBAR Terms of Repayment TL- first 23 quarterly installments of Rs. 8.300 Millions and last (24th) installments of Rs.9.100 Millions each payable from the date of first disbursement and end in the 2015-16 (in 7 years including moratorium period of one year) CC- On Demand Margin Raw Material - 25% Stock In Process - 25% Finished Goods - 25% SPC - 10% Book Debts/ Receivables - 25% (Cover Period 90 Days) LC/BG - 10% Extent and Operation of the charge To secure the payments of all the moneys including interest, cost, changes and expenses due and payable by the borrower from time to time
Short particulars of the property charged	Property situated at B. 193/A Phase II Noida, Uttar Pradesh and Plot No 97 and 116 Sector E Industrial Area Sanwar Road Indore (Madhya Pradesh) more specifically describe in Title deeds.
Date of instrument modifying the charge	12.02.2009
Particulars of the present modification	The charge has been modified by change in the internal limits from Rs.803.400 Millions to Rs.775.000 Millions as per C-II dt.28.12.2009

Fixed Assets:

· Land

· Building

· Plant and Machinery

· Furniture, Fixtures and office Equipments

· Vehicles

· Computers

· Business Goodwill

· 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 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.49.21
UK Pound	1	Rs.77.75
Euro	1	Rs.64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.