MIRA INFORM REPORT

Report Date :

25.02.2012

IDENTIFICATION DETAILS

Name :	KRISHNA INDUSTRIAL CORPORATION LIMITED
Registered Office :	239, Mount Road, Chennai – 600002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.04.1956
Com. Reg. No.:	18-001112
Capital Investment / Paid-up Capital :	Rs.20.145 Millions
CIN No.: [Company Identification No.]	L45309TN1956PLC001112
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Supplying of Bio Fertilizers, Bio Pesticides
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 161000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 :	239, Mount Road, Chennai – 600002, Tamilnadu, India
Tel. No.:	91-44-28522319/ 28524849/ 28523065/ 28522661
Fax No.:	91-44-28527978
E-Mail :	kicho@dataone.in kic_ndd@yahoo.co.in m_swaminathan@yahoo.com
Fertilizer Division:	Nidadavole - 534304 West Godavari, Andhra Pradesh,

DIRECTORS

As on 08.09.2011

Name :

Mr. Rajeswary Ramakrishnan

Designation :

Director

Address :

53-54 Race Course Road, Coimbatore – 641018, Tamilnadu, India

Date of Birth/Age :

19.02.1928

Date of Appointment :

30.07.1962

DIN No.:

01385665

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	L15421TN1936PLC011632	THE JEYPORE SUGAR COMPANY LIMITED	Managing director	03-09-10	30-10-61	-	Active	NO
2	L45309TN1956PLC001112	KRISHNA INDUSTRIAL CORPORATION LIMITED	Director	10-09-08	30-07-62	-	Active	NO
3	U65991TN1947PTC002215	R.S.INDUSTRIAL CORPORATION PRIVATE LIMITED	Director	30-11-68	30-11-68	-	Active	NO
4	U29269TZ1959PTC000303	RAMAKRISHNA MACHINERY CORPORATION PRIVATE LIMITED	Director	07-07-69	07-07-69	-	Active	NO
5	U65993TN1989PLC017898	JEYPORE SUGAR FINANCE AND INVESTMENT CORPORATION LIMITED	Director	15-09-89	15-09-89	-	Active	NO
6	U65993TN1997PTC037281	V.R.K. GRANDSONS INVESTMENT PRIVATE LIMITED	Director	06-01-97	06-01-97	-	Active	NO
7	U17111TZ1923PLC013696	RADHA KRISHNA MILLS LIMITED	Director	25-09-06	25-09-06	-	Active	NO
8	U15421TN2011PLC079822	V RAMAKRISHNA SUGARS LIMITED	Director	24-03-11	24-03-11	-	Active	NO

Name :

Mr. Siva Rama Krishna Prasad

Designation :

Managing director

Address :

53-54 Race Course Road, Coimbatore – 641018, Tamilnadu, India

Date of Birth/Age :

13.01.1951

Date of Appointment :

07.02.2002

DIN No.:

01276634

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	U65991TN1947PTC002215	R.S.INDUSTRIAL CORPORATION PRIVATE LIMITED	Director	30-06-08	30-11-68	-	Active	NO
2	U29269TZ1959PTC000303	RAMAKRISHNA MACHINERY CORPORATION PRIVATE LIMITED	Director	26-12-80	26-12-80	-	Active	NO
3	L15421TN1936PLC011632	THE JEYPORE SUGAR COMPANY LIMITED	Director	14-09-84	14-09-84	-	Active	NO
4	U65993TN1989PLC017898	JEYPORE SUGAR FINANCE AND INVESTMENT CORPORATION LIMITED	Director	15-09-89	15-09-89	-	Active	NO
5	U65993TN1997PTC037281	V.R.K. GRANDSONS INVESTMENT PRIVATE LIMITED	Director	06-01-97	06-01-97	-	Active	NO
6	L45309TN1956PLC001112	KRISHNA INDUSTRIAL CORPORATION LIMITED	Managing director	07-02-10	07-02-02	-	Active	NO
7	U17111TZ1923PLC013696	RADHA KRISHNA MILLS LIMITED	Director	25-09-06	25-09-06	-	Active	NO
8	U72200TZ2008PTC014188	INNOSOFTTECH SOLUTIONS (INDIA) PRIVATE LIMITED	Director	29-01-08	29-01-08	-	Active	NO
9	U15421TN2011PLC079822	V RAMAKRISHNA SUGARS LIMITED	Director	24-03-11	24-03-11	-	Active	NO

Name :

Mr. Nagaraja Rao Prasad

Designation :

Director

Address :

Royal Enclave, Plot No. 432/4, 3^rd Avenue, Anna Nagar, Chennai – 600101, Tamilnadu, India

Date of Birth/Age :

22.03.1944

Date of Appointment :

22.09.1980

DIN No.:

01276626

Name :

Mr. Nisar Ahmed Mecca

Designation :

Director

Address :

A-17, Everest Buildings, Taredeo Road, Mumbai – 400034, Maharashtra, India

Date of Birth/Age :

15.01.1953

Date of Appointment :

31.01.2005

DIN No.:

00153168

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	U01110MH1991PTC062606	SHREE KRISHNA AGRO INDUSTRIAL SERVICES PVT LTD	Director	25-11-91	25-11-91	-	Active	NO
2	U01122MH1995PLC084214	MERIDIAN CORPORATE SERVICES LIMITED	Director	02-01-95	02-01-95	-	Active	NO
3	L67190MH1998PLC113638	ABM KNOWLEDGEWARE LIMITED	Director	27-04-00	27-04-00	-	Active	NO
4	U64203AP1997PLC027883	TEAMASIA SEMICONDUCTORS(INDIA) LIMITED	Director	16-08-03	16-08-03	04-05-07	Active	YES
5	L45309TN1956PLC001112	KRISHNA INDUSTRIAL CORPORATION LIMITED	Director	31-01-05	31-01-05	-	Active	NO
6	U74994MH2005PTC154972	LEB DESIGN AND PROJECT MANAGEMENT PRIVATE LIMITED	Director	21-07-05	21-07-05	01-10-10	Active
7	U45202TN2006PTC059257	VIRGO REALTORS PRIVATE LIMITED	Director	25-11-06	25-11-06	-	Active	NO
8	U45201MH2006PTC165408	Mordril Properties (India) Private Ltd	Director	27-11-06	27-11-06	-	Active	NO
9	U63030MH2006PTC162493	MIDEX AIRLINES PRIVATE LIMITED	Director	13-10-07	13-10-07	-	Active	NO
10	U74900MH2008PTC182879	WORKSPACE OFFICE SOLUTIONS PRIVATE LIMITED	Director	30-05-08	30-05-08	01-07-11	Active	NO
11	L45202TN1991PLC046402	MASCON GLOBAL LIMITED	Director	28-08-08	15-06-08	19-05-10	Active	NO
12	U65991TN1991PTC021210	CAPRI CORPORATE SERVICES PRIVATE LIMITED	Director	15-07-09	15-07-09	-	Active	NO

Name :

Mr. Adhilingam Pitchiah

Designation :

Director

Address :

A-7, Shantiniketan Apartments, 93 (Old No. 42) Buzullah Road, T Nagar, Chennai – 600017, Tamilnadu, India

Date of Birth/Age :

01.07.1950

Date of Appointment :

31.01.2005

DIN No.:

01521767

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	U65991TN1994PLC027260	AZAX BENEFIT FUND LIMITED	Director	08-12-04	08-12-04	-	Active	NO
2	L45309TN1956PLC001112	KRISHNA INDUSTRIAL CORPORATION LIMITED	Director	31-01-05	31-01-05	-	Active	NO
3	U74999TN2011PTC078827	TECON INFRASTRUCTURE ENGINEERING PRIVATE LIMITED	Director	14-01-11	14-01-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 08.09.2011

Names of Shareholders	No. of Shares
Rajeswary Ramakrishnan	151,200
Siva Rama Krishna Prasad	282,602
Nagaraja Rao Prasad	500
Nisar Ahmed Mecca	20,500
Adhilingam Pitchiah	20,500

Equity Share Break up (Percentage of Total Equity)

As on 08.09.2011

Category	Percentage
Bodies corporate	9.01
Directors or relatives of Directors	70.66
Other top fifty shareholders	17.72
Others	2.59
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Supplying of Bio Fertilizers, Bio Pesticides

Products :

Product Description	Item Code No.
Fertilizers	310310
Sulphuric Acid	280700.01
Acetic Acid	31021730X

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity
Acetic Acid and its salts (MT per annum)	MT	3300

Particulars	Unit	Installed Capacity
a) Superphosphate (MT per annum)	MT	45000
b) Sulphuric Acid (MT per annum)	MT	33520
c) Co2 Gas (MT per annum)
Vuyyuru	MT	3000
Jangareddigudem	MT	1500
Hyderabad (bottling)	MT	3650
d) Acetic Acid and its Salts (MT per annum)	MT	3300
e) Ethyl acetate (MT per annum)	MT	1000
f) Bio- Fertilisers (MT per day)	MT	3
g) NPK Granules (MT per annum)	MT	30000

(As certified by the Management)

Particulars	Unit	Actual Production
a) Superphosphate (MT)	MT	27568
b) Sulphuric Acid (MT)	MT	18583
c) NPK Mixtures - Granules (MT)	MT	8586
d) Co2 Gas (MT)
Jangareddigudem	MT	726
Hyderabad (bottling)	MT	1315
e) Acetic Acid (MT)	MT	103
f) Ethyl Acetate (MT)	MT	21
g) Bio - Fertiliser (MT)	MT	148

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Andhra Bank, Mount Road Branch, 95, Anna Salai, Chennai – 600002, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	3.710	2.270
Rupee term loans financial institutions secured	47.904	60.271
Rupee term loans others secured	0.269	0.676
Working capital loans banks secured	41.943	30.706
Other debt secured	1.883	1.914
Total	95.709	95.837
Footnotes Secured against Specific Assets Secured by equitable mortgage of land and buildings and hypothe- -cation of all the fixed assets of the Company, present and future, situated at Nidadavole and further guaranteed by the Chairman and the Managing Director of the company in their individual capacities From Companies Secured against Specific Assets Secured by Hypothecation of Raw Materials, Finished and semi Finished Goods, spares, book debts and subsidy receivable from the Government, and further secured by a second charge on the the fixed assets of the company present and future and guaranteed by the chairman and the Managing Director of the company in their individual capacities OD from Bank Secured against Fixed Deposits
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Fixed deposits unsecured	13.295	11.815
Deferred sales tax loan unsecured	20.182	20.883
Total	33.477	32.698

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountant
Address :	33-25-33/B, Govindarajulu Naidu Street, Vijaywada – 520002, Andhra Pradesh, India
PAN.:	AADFB8032G
Related Parties :	The Jey[pore Sugar Company Limited Jeypore Sugar Finance and Investment Corporation Limited RS Industrial Corporation Private Limited Radha Krishna Mills Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions
50000	Preference Share	Rs.100/- each	Rs.5.000 Millions
	TOTAL		Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2014541	Equity Shares	Rs.10/- each	Rs.20.145 Millions

Notes: Out of the paid up share capital 12588 shares were allotted as fully paid up by way of shares by capitalization of reserves

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		20.145	20.145	10.145
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		20.179	17.674	18.590
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		40.324	37.819	28.735
LOAN FUNDS
1] Secured Loans		95.709	95.837	104.756
2] Unsecured Loans		33.477	32.698	35.705
TOTAL BORROWING		129.186	128.535	140.461
DEFERRED TAX LIABILITIES		13.250	12.285	12.817
TOTAL		182.760	178.639	182.013
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		114.580	119.691	125.079
Capital work-in-progress		9.683	7.023	9.729
INVESTMENT		0.884	0.884	0.884
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.003	60.840	65.407
	Sundry Debtors	60.859	64.810	73.800
	Cash & Bank Balances	19.087	22.499	15.645
	Other Current Assets	72.704	19.882	104.946
	Loans & Advances	14.525	15.937	17.411
Total Current Assets		212.178	183.968	277.209
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	126.888	109.801	204.203
	Other Current Liabilities	18.752	18.129	17.999
	Provisions	8.925	4.997	8.686
Total Current Liabilities		154.565	132.927	230.888
Net Current Assets		57.613	51.041	46.321
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		182.760	178.639	182.013

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	374.856	306.039	443.366
		Other Income	5.425	12.369	4.992
		TOTAL (A)	380.281	318.408	448.358
Less	EXPENSES
		Consumption materials changes inventories	223.302	192.726	303.593
		Manufacturing service costs	34.298	30.869	73.766
		Employee related expenses	47.324	42.127	42.754
		Administrative selling other expenses	38.717	27.347	1.701
		TOTAL (B)	343.641	293.069	421.814
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		36.640	25.339	26.544
Less	FINANCIAL EXPENSES (D)		18.141	15.778	17.650
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.499	9.561	8.894
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.691	11.153	10.653
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		7.808	(1.592)	(1.759)
Less	TAX (H)		1.791	(0.676)	(0.129)
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		6.017	(0.916)	(1.630)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(0.879)	0.037	2.854
Less	APPROPRIATIONS		5.138	0.000	1.187
	BALANCE CARRIED TO THE B/S		1.325	(0.879)	0.037
	IMPORTS
		Raw Materials	128.672	77.426	175.283
	TOTAL IMPORTS		128.672	77.426	175.283
	Earnings/loss Per Share (Rs.)		2.99	(0.60)	(1.61)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.58	(0.29)	(0.36)
Net Profit Margin (PBT/Sales)	(%)	2.08	(0.52)	(0.40)
Return on Total Assets (PBT/Total Assets}	(%)	2.39	0.52	0.44
Return on Investment (ROI) (PBT/Networth)		0.19	0.04	0.06
Debt Equity Ratio (Total Liability/Networth)		7.04	6.91	12.92
Current Ratio (Current Asset/Current Liability)		1.37	1.38	1.20

LOCAL AGENCY FURTHER INFORMATION

WORKING RESULTS

FERTILISER DIVISION

During the year, the production of Super phosphate and Sulphuric Acid was 27568 MT and 18583 MT as against 20447 MT and 10865 MT respectively during the previous year and sale of Super Phosphate and Sulphuric Acid was 28815 MT and 8529 MT as against 16781 MT and 4452 MT respectively during the previous year.

The working of this unit has been quite satisfactory. In the current financial year the production and sales of Super phosphate is expected to be good with good monsoon and Nutrient Based Subsidy policy.

CO2 Units

JANGAREDDIGUDEM UNIT

The production of Co2 Gas at this unit during the year was 726 MT as against 360MT during last year and sales were 710 MT as against 361MT during the previous year. The working of this unit was affected, as distilleries did not have adequate molasses. During the year a Storage tank was commissioned to store Co2 purchases and bottle the same to cater to customers.

CO2 BOTTLING UNIT

The production of Co2 Gas at this unit during the year was 1315 MT as against 1759 MT during last year and sales were 1327 MT as against 1767 MT during the previous year. The working of this unit has been quite satisfactory during the year. The company has started shifting the unit to company’s own premises at Pashamylaram, Medak District and is expected to be completed by end June 2011.

ACETIC ACID UNIT

The production of Acetic Acid at this unit during the year was 103 MT, as against 447 MT during last year, and sales were 103 MT as against 424 MT during the previous year. The working of this unit was hampered due to non-availability of alcohol.

The production of Ethyl Acetate at this unit during the year was 21 MT, as against Nil MT during last year, and sales were 17 MT as against Nil MT during the previous year. The working of this unit was hampered due to non-availability of alcohol.

KASBAH SYSTEMS SOFTWARE

The performance of this unit has been very satisfactory considering the global scenario of IT industry. Kasbah provided high-end services to European market during the year.

BIO-FERTILISER UNIT:

The production of Bio-Fertiliser at this unit during year was 148 MT as against 344 MT during the previous year and sales were 144 MT as against 344 MT during the previous year.

The company expects to increase the sales of this division in the current year.

NPK GRANULATION UNIT

The production of NPK Granulation Mixtures at this unit during the year was 8586 MT as against 16264 MT during last year and sales were 8386 MT as against 16175 MT during the previous year. The working of this plant during the year has been affected due to non-availability of Urea and DAP. This unit is expected to do better with availability of Urea and DAP during the current year.

Safety and pollution Control:

Nidadavole Units

The company has adhered to the pollution limits prescribed by the Andhra Pradesh Pollution Control Board.

CO2 Units

They have already implemented all safety measures as per factory rules in our factories at Jangareddigudem and Hyderabad.

FORM 8

Corporate identity number of the company	L45309TN1956PLC001112
Name of the company	KRISHNA INDUSTRIAL CORPORATION LIMITED
Address of the registered office or of the principal place of business in India of the company	239, Mount Road, Chennai – 600002, Tamilnadu, India Email: kicho@dataone.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90289182
Type of charge	Book Debts Movable Property Floating charge
Particular of charge holder	Andhra Bank, Mount Road Branch, 95, Anna Salai, Chennai – 600002, Tamilnadu, India Email: bmche848@andhrabank.co.in
Nature of instrument creating charge	Composite Agreement DPN Sanction Letter dated 13.11.2011
Date of instrument Creating the charge	15.12.2011
Amount secured by the charge	Rs.154.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: OCC: Base Rate + 5.25% Presently 16% per annum. and rate of interest for other credit facility as per sanction letter dt.13.11.2011 Terms of Repayment: OCC: On Demand. Margin: OCC: On both Stocks and Receivables not older than 90 days uniformly at 25%. FLC (da/dp) : 15% Bank Guarantee: 10% Cash. Extent and Operation of the charge: As mentioned in Column No.15 of this e-form 8. Others: Nature of facilities Existing Renewed (Rs in millions) OCC Rs.40.000 Rs.40.000 FLC (DA/DP) RS.110.000 Rs.110.000 Bank Guarantee Rs.2.000 Rs.2.000 Term Loan Rs.2.600 Rs.2.600 Total Rs.154.600 Rs.154.600 All other terms and conditions as per the sanction letter and instruments executed on 15.12.2011.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation by way of first charge in favour of the bank on all stocks covered under LC and all other current assets of the company both present and future. Hypothecation of stocks of raw materials, semi finished goods, stores & spares, finished goods and subsidy receivables and book debts Hypothecation by way of Second charge on the Fixed Assets of the Company.
Date of instrument modifying the charge	12.11.2010
Particulars of the present modification	The amount secured by the charge has been renewed at the existing limit of Rs.154.600 millions All other terms and conditions of original charge and subsequent modifications remain unchanged.

FIXED ASSETS

• Land
• Factory Building
• Non-Factory Building
• Plant and Machinery
• Electrical Installation
• Tramways Trolleys
• Water Works
• Gas Cylinder
• Weighing Machine
• Workshop Equipment
• Lab Equipment
• Furniture and Fitting
• Vehicles
• Computers
• Library

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.49.07
UK Pound	1	Rs.77.19
Euro	1	Rs.65.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.