MIRA INFORM REPORT

Report Date :

09.01.2012

IDENTIFICATION DETAILS

Name :	INDIAN FURNITURE PRODUCTS LIMITED
Registered Office :	Jai Kisan Bhawan, Zuari Nagar, Goa - 403726
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.12.2000
Com. Reg. No.:	24-002922
Capital Investment / Paid-up Capital :	Rs.230.001 Millions
CIN No.: [Company Identification No.]	U72200GA2000PLC002922
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Furniture.
No. of Employees :	150 (Approximately) (In Office + In Factory)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 890000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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

Name :	Mr. Prasad
Designation :	Account Department
Contact No.:	91-44-27662420
Date :	07.01.2012

LOCATIONS

Registered Office :	Jai Kisan Bhawan, Zuari Nagar, Goa – 403726, India
Tel. No.:	91-44-27600229
Fax No.:	91-44-27661780
E-Mail :	vivek@stylespafurniture.com tprasad@stylespafurniture.com sudhakar@stylespafurniture.com
Website :	http://www.zuari-furniture.com http://www.stylespafurniture.com
Location :	Owned
Corporate Office :	"Zuari House", 41, Montieth Road, Chennai-600 008, Tamil Nadu, India
Tel. No.:	91-44-28528731
Fax No.:	91-44-28545343
Factory :	G106, SIDCO Industrial Estate, Kakkalur, Thiruvallur-602 003, Tamil Nadu, India.
Tel. No.:	91-44-27662420
Fax No.:	91-44-27661780
E-Mail :	enquiry@zuari-furniture.com kitchens@zuari-furniture.com
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Anil Kapoor
Designation :	Director
Address :	C-36, First Floor, Kalindi Colony, New Delhi – 110065, India
Date of Birth/Age :	16.08.1953
Date of Appointment :	25.08.2003
DIN No.:	00032299

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	U65993GA1995PLC001942	Zuari Investments Limited	Director	01-03-02	01-03-02	24-12-10	Active	NO
2	U72200GA2000PLC002922	Indian Furniture Products Limited	Director	25-08-03	25-08-03	-	Active	NO
3	U24124GA2002PLC003064	Zuari Maroc Phosphates Limited	Managing director	30-05-05	30-05-05	08-05-07	Active	NO
4	U11202GA2000PLC002869	Zuari Indian Oiltanking Limited	Director	14-10-05	14-10-05	23-08-07	Active	NO
5	U74900GA2006PLC004921	Zuari Management Services Limited	Director	06-12-06	06-12-06	11-11-09	Active	NO
6	L24124RJ1985PLC003293	Chambal Fertilisers And Chemicals Limited	Managing director	16-02-07	16-02-07	-	Active	NO
7	U45200DL2007PLC157223	Chambal Infrastructure Ventures Limited	Director	27-06-08	22-06-07	-	Active	NO
8	U26941KA2007PLC054428	Gulbarga Cement Limited	Director	30-10-07	30-10-07	11-11-09	Active	NO
9	U40300DL2007PLC171736	Chambal Energy (Orissa) Limited	Director	20-12-07	20-12-07	-	Active	NO
10	U40300DL2007PLC171762	Chambal Energy (Chhattisgarh) Limited	Director	20-12-07	20-12-07	-	Active	NO
11	U85300DL1955NPL002999	The Fertiliser Association of India.	Director	12-09-08	12-09-08	-	Active	NO
12	U01122GA1995PLC001751	Zuari Seeds Limited	Director	27-09-10	28-05-10	-	Active	NO
13	U61100RJ2011PLC034702	India Steamship Limited	Director	01-04-11	01-04-11	-	Active	NO

Name :	Mr. Arun Mahajan
Designation :	Managing Director
Address :	B-1/18, II Floor, Safarjung Enclave, New Delhi – 110029, India
Date of Birth/Age :	12.03.1955
Date of Appointment :	01.11.2006
DIN No.:	00610171

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	U65993GA1995PLC001942	Zuari Investments Limited	Director	11-03-03	11-03-03	-	Active	NO
2	U72200GA2000PLC002922	Indian Furniture Products Limited	Managing director	01-11-09	01-11-06	-	Active	NO
3	U66010GA2003PLC003185	Zuari Insurance Brokers Limited	Director	13-11-06	13-11-06	-	Active	NO
4	U36101TN1998PLC039842	Style Spa Furniture Limited	Managing director	28-02-07	28-02-07	-	Active	NO
5	U27205DL2008PLC180160	Zuari Commodity Trading Limited	Director	27-06-08	27-06-08	-	Active	NO
6	U65100DL2008PLC180229	Zuari Financial Services Limited	Director	27-06-08	27-06-08	-	Active	NO
7	U65910GA2009PLC006177	Zuari Holdings Limited	Director	10-09-09	10-09-09	24-05-11	Active	NO

Name :	Mr. Narayanan Suresh Krishnan
Designation :	Director
Address :	Flat No.105, Four Seasons No.16, Brunton Road, Bangalore – 560025, Karnataka, India
Date of Birth/Age :	03.06.1964
Date of Appointment :	26.03.2007
DIN No.:	00021965

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	U40109AP2005PLC046893	Sitapuram Power Limited	Director	18-07-05	18-07-05	20-10-08	Active	NO
2	U26942AP2000PLC050415	Zuari Cement Limited	Director	07-02-06	07-02-06	06-12-06	Active	NO
3	U24124GA2002PLC003064	Zuari Maroc Phosphates Limited	Managing director	24-09-07	08-11-06	-	Active	NO
4	U66010GA2003PLC003185	Zuari Insurance Brokers Limited	Director	07-09-07	13-11-06	22-09-10	Active	NO
5	U74900GA2006PLC004921	Zuari Management Services Limited	Director	06-12-06	06-12-06	-	Active	NO
6	U11202GA2000PLC002869	Zuari Indian Oiltanking Limited	Director	26-09-08	12-12-06	-	Active	NO
7	U01122GA1995PLC001751	Zuari Seeds Limited	Director	24-09-07	15-03-07	-	Active	NO
8	U72200GA2000PLC002922	Indian Furniture Products Limited	Director	07-09-07	26-03-07	-	Active	NO
9	U65993GA1995PLC001942	Zuari Investments Limited	Director	07-09-07	07-09-07	-	Active	NO
10	U26941KA2007PLC054428	Gulbarga Cement Limited	Director	30-10-07	30-10-07	-	Active	NO
11	U01409GA2007PLC005489	Zuari Rotem Speciality Fertilizers Limited	Director	28-12-09	15-11-07	11-07-11	Active	NO
12	U45309KA2007PLC043161	Adventz Infraworld India Limited	Director	19-09-08	11-12-07	-	Active	NO
13	U27205DL2008PLC180160	Zuari Commodity Trading Limited	Director	27-06-08	27-06-08	10-08-10	Active	NO
14	U65100DL2008PLC180229	Zuari Financial Services Limited	Director	27-06-08	27-06-08	10-08-10	Active	NO
15	U24120GA2009PLC006158	Zuari Fertilisers And Chemicals Limited	Director	11-08-09	11-08-09	-	Active	NO
16	U65910GA2009PLC006177	Zuari Holdings Limited	Director	10-09-09	10-09-09	-	Active	NO
17	U74900GA2010PLC006413	Adventz Industries India Limited	Director	14-06-10	14-06-10	-	Active	NO
18	L65921GA1967PLC000157	Zuari Industries Limited	Director	19-09-11	21-01-11	-	Active	NO

Name :	Mr. Ramabhadran Raghunathan
Designation :	Additional Director
Address :	Abhirami Shrutilaya, Flat SB, No.42, 28^th Cross Street, Indira Nagar, Adyar, Chennai – 600020, Tamil Nadu, India
Date of Birth/Age :	05.06.1949
Date of Appointment :	24.03.2011
DIN No.:	01343980

KEY EXECUTIVES

Name :	Mr. Prasad
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Zuari Industries Limited, India	23000000
BK Kinekar, Jointly with Zuari Industries Limited, India	10
L. M. Chandrashekhar jointly with Zuari Industries Limited, India	10
H. C. Shah jointly with Zuari Industries Limited, India	10
K. G. Dhume jointly with Zuari Industries Limited, India	10
N. Suresh Krishnan jointly with Zuari Industries Limited, India	10
R. Y. Patil jointly with Zuari Industries Limited, India	10
B. V. jointly with Zuari Industries Limited, India	10
Harish Malhotra jointly with Zuari Industries Limited, India	10
Total	23000080

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Furniture.

Products :

Product Description	Item Code
Ready to Assemble Furniture	940300

Exports :

Products :

Furniture

Countries :

• Europe Countries
• Dubai
• Saudi Arabia

Imports :

Products :

• Machinery
• Raw Material

Countries :

• Japan
• Germany

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS

As on 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Furniture	Units	160000	136899

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

150 (Approximately) (In Office + In Factory)

Bankers :

Canara Bank – Leader of the Consortium, Mount Road Branch, 781-785, Anna Salai, Chennai - 600002, Tamil Nadu, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working Capital Loan	154.388	60.409
Total	154.388	60.409
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Deposits related parties	134.444	150.804
Deferred Sales Tax	75.863	88.985
Total	210.307	239.789

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	3, Cenotaph Road, Teynampet, Chennai - 600 018, Tamil Nadu, India
Tel. No.:	91-44-66328400
Fax No.:	91-44-24311450
PAN.:	AALFS0506L
Group Companies :	Zuari Industries Limited
Subsidiary companies :	Indian Furniture Products Limited Zuari Seeds Limited Simon India Limited Adventz Infraworld India Limited (AIIL) Gulbarga Cement Limited (GCL) Zuari Fertilisers and Chemicals Limited (ZFCL) Zuari Holdings Limited (ZHL) Globex Limited (GL) Zuari Management Services Limited (ZMSL) Zuari Investment Limited Zuari Insurance Brokers Limited (ZIBL) Zuari Commodity Trading Limited (ZCTL) Zuari Financial Services Limited (ZFSL)
Joint venture Companies :	Zuari Indian Oiltanking Limited Zuari Maroc Phosphates Limited Zuari Rotem Speciality Fertlisers Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
23100000	Equity Shares	Rs.10/- each	Rs.231.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23000080	Equity Shares	Rs.10/- each	Rs.230.001 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		230.001	230.001	230.001
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(8.154)	(15.509)	(36.120)
NETWORTH		221.847	214.492	193.881
LOAN FUNDS
1] Secured Loans		154.388	60.409	37.192
2] Unsecured Loans		210.307	239.789	285.181
TOTAL BORROWING		364.695	300.198	322.373
DEFERRED TAX LIABILITIES		1.158	0.000	0.000
TOTAL		587.700	514.690	516.254
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		172.977	173.855	161.411
Capital work-in-progress		0.289	0.000	0.000
INVESTMENT		23.300	23.300	23.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	353.539	307.142	315.554
	Sundry Debtors	51.761	37.577	22.900
	Cash & Bank Balances	12.678	22.013	21.964
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	142.629	143.784	126.146
Total Current Assets		560.607	510.516	486.564
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	69.871	38.703	98.891
	Other Current Liabilities	89.130	145.116	48.661
	Provisions	10.472	9.162	7.469
Total Current Liabilities		169.473	192.981	155.021
Net Current Assets		391.134	317.535	331.543
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		587.700	514.690	516.254

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1302.848	989.909	918.632
		Other Income	9.823	24.817	3.944
		TOTAL (A)	1312.671	1014.726	922.576
Less	EXPENSES
		Consumption materials changes inventories	797.710	609.831
		Manufacturing service costs	183.929	139.691
		Contract cost	30.218	10.763
		Employee related expenses	116.793	98.298
		Administrative selling other expenses	118.653	85.644
		TOTAL (B)	1247.303	944.227	858.132
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		65.368	70.499	64.444
Less	FINANCIAL EXPENSES (D)		36.758	28.934	23.341
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		28.610	41.565	41.103
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.978	16.757	13.844
	PROFIT BEFORE TAX (E-F) (G)		10.632	24.808	27.259
Less	TAX (I)		3.277	4.197	3.707
	PROFIT AFTER TAX (G-I) (J)		7.355	20.611	23.552
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(15.509)	(36.120)	(59.672)
	BALANCE CARRIED TO THE B/S		(8.154)	(15.509)	(36.120)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	0.000	0.000	1.882
	TOTAL EARNINGS		0.000	0.000	1.882
	IMPORTS
		Raw Materials	224.773	167.262	190.090
		Tools and Spares parts	0.797	0.107	0.960
		Capital Goods	3.923	3.238	0.714
		Traded Goods	111.183	45.538	48.134
	TOTAL IMPORTS		340.676	216.145	239.898
	Earnings Per Share (Rs.)		0.32	0.90	1.02

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.56	2.03	2.55
Net Profit Margin (PBT/Sales)	(%)	0.82	2.51	2.97
Return on Total Assets (PBT/Total Assets}	(%)	1.45	3.62	4.21
Return on Investment (ROI) (PBT/Networth)		0.05	0.12	0.14
Debt Equity Ratio (Total Liability/Networth)		2.41	2.30	2.46
Current Ratio (Current Asset/Current Liability)		3.31	2.65	3.14

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Due Small Micro Enterprises	2.840	2.429
Due Others	67.031	36.274
	69.871	38.703	97.891

OPERATIONS:

Furniture industry staged significant recovery in the financial year 2010-11. Organized furniture Retail grew by 20% while the company has grown by 30% over the previous year. Sales growth was however scarred by inflationary spills which kept the margins under check. Zuari channel augmented its dealer base as well as geographical reach. It embraced aggressive pricing strategies in its pursuit of garnering larger market share. It has created enormous visibility and carved out a name for the Brand "Zuari Furniture" in the multi brand outlets registering 43% growth in Sales over the previous year. Major buyer Style Spa Furniture Limited registered 20% growth which bolstered the momentum provided by the Zuari channel. The company has embarked a more aggressive plan in the year ahead with contemporary products and designs while widening its reach. The company is looking for international collaborations for increasing the productivity of the plant as well as improving the technology for better product features and designs. Sales grew to Rs.1300.000 Millions ( Previous year Rs.1000.000 Millions, ) and operating profits (EBIDA)recorded Rs.65.368 Millions compared to Rs70.498 Millions ,(EBIDA) of previous year. Margins have been under strain due to invading imports of Finished goods and company' penetrating pricing strategy. Company' decision not to accrue interest on ICD issued to M/s Straight curve Ideas Private Limited., has dwindled the profits by Rs.16.900 Millions, resulting in a PBT of Rs.10.600 Millions compared to Rs24.800 Millions of the previous year. Mr. Vijay Shankar, Director of the Company, has resigned from the Board of Directors and Mr. R.Raghunathan is appointed as an Additional Director till the next AGM. Mr. S.K. Poddar and Mr. Suresh Krishnan retire by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

Check List by Info Agents	Available in Report (Yes / No)
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 two years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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, if available	--

CONTINGENT LIABILITY:

Particulars	31.03.2011	31.03.2010
Disputed Tax	4.963	19.247
Disputed Service Tax	0.000	10.451

Note ;

Sales tax matters under appeal Rs.4.963 Millions. Any cash outflow in respect of sales tax and service tax matters under appeal would depend on the ultimate outcome of the appeal. No reimbursements are expected.

FORM 8 :

Corporate identity number of the company	U72200GA2000PLC002922
Name of the company	INDIAN FURNITURE PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	Jai Kisaan Bhawan, Zuari Nagar, Goa – 403726, India E-mail Id : vivek@stylespafurniture.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90076445
Type of charge	Immovable property Any interest in immovable property Book debts Movable property (not being pledge) Floating charge Others (Whole of Current assets)
Particular of charge holder	Canara Bank – Leader of the Consortium, Mount Road Branch, 781-785, Anna Salai, Chennai - 600002, Tamil Nadu, India E-Mail : cb0911@canarabank.com
Nature of instrument creating charge	Supplemental Joint Deed Of Hypothecation ,Supplemental Working Capital Consortium agreement ,Inter-Se agreement, Extension of Equitable Mortgage by deposit of title deeds
Date of instrument Creating the charge	11.10.2011
Amount secured by the charge	Rs.468.700 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest BR+3% for Canara Bank and J and K Bank, BR +3.5% for Axis bank, BR +4.75% for C B I morefully described in the agreement (rate of interest is subject to change by the bank from time to time) Terms of repayment As per the agreements Margin As per the agreements Extent and operation of the charge On Paripassu 1st charge basis with 1) Canara Bank, Mount Road Branch, Anna Salai, Chennai-400002, Tasmil Nadu, India (Leader) - Rs.220.000 Millions, 2) Central Bank of India, Second Line Beach, Chennai-400001, Tamil Nadu, India - Rs.60.000 Millions, 3) Jammu and Kashmir Bank, Armenian Street, Chennai-400001, - Rs.115.000 Millions 4)Axis Bank, RK Salai, Chennai-4 - Rs.73.700 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Extension of Equitable Mortgage by deposit of Title Deeds of immovable property , both present and future admeasuring 16.447 acres at S.Nos.482, 488/1 and 2, 489, 490, 491, 492/1 and 2,496 part Thaneerkulam Village,79 pt 81/1, 82,83 part, Putlur Village, Thiruvellore Dt at G 106-108 SIDCO Industrial Estate, Kakkalur, Thiruvellore together with all buildings and structures thereon and all plant and machinery therein, morefully described in the document enclosed by way of pari passu 1st charge. Whole of the existing Securities including those acquired and or to be acquired out of the enhanced Credit Limits made available now including whole of Current Assets including Stocks of Raw Materials, Stock in process, Semi finished Goods, stores and spares not relating to Plant and Machinery (Consumable stores and spares) Bills Receivable, Book Debts and all other Assets and movables both present and future morefully described in the document enclosed by way of pari passu 1st charge. This is in addition to all other existing securities
Date of instrument modifying the charge	11.03.2011
Particulars of the present modification	Credit limits enhanced to Rs.468.700 Millions and further secured by properties given above more fully described in the documents enclosed. All other terms and conditions of the original charge and the subsequent modification remain unchanged.

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Computers
• Furniture and Fittings
• Office equipments
• Electrical Installations
• 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.52.78
UK Pound	1	Rs.81.79
Euro	1	Rs.67.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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