MIRA INFORM REPORT

Report Date :

11.01.2012

IDENTIFICATION DETAILS

Name :	NEELA SYSTEMS LIMITED
Registered Office :	4/8, Piramal Industrial Premises Co-Operative Society Limited, S.V. Road, Goregaon (West), Mumbai – 400 062, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.10.2007
Com. Reg. No.:	11-175261
Capital Investment / Paid-up Capital :	Rs.50.000 millions
CIN No.: [Company Identification No.]	U41000MH2007PLC175261
PAN No.: [Permanent Account No.]	AACCN6144P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Trader, Exporter and Importer of Purified Water System, Tanks and Heaters.
No. of Employees :	More than 250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1281000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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.

INFORMATION PARTED BY

Name :	Mr. V.C. Jain
Designation :	A.V.P. Account
Contact No.:	91-22-40888444
Date :	09.01.2012

LOCATIONS

Registered Office :	4/8, Piramal Industrial Premises Co-Operative Society Limited, S.V. Road, Goregaon (West), Mumbai – 400 062, Maharashtra, India
Tel. No.:	91-22-40888444
Fax No.:	91-22-28747129
E-Mail :	vcjain@neelasystemslimited.com contact@neelasystemslimited.com
Website :	http://www.neelasystemslimited.com
Location :	Owned
Corporate Office :	4/5, 4/6, Piramal Industrial Premises Co-Operative Society Limited, S.V. Road, Goregaon (West), Mumbai – 400 062, Maharashtra, India
Factory and Warehouse :	Gat No.456/ 467/ 438/ 204/ 205, Village Usar Kudus, Taluka Wada, District Thane – 421 303, Maharashtra, India
Tel. No.:	91-22-40888444
Fax No.:	91-2526-220035
Area :	1250000 sq ft (Factory) 45000 sq ft (Warehouse)
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Himanshu Virendra Shah

Designation :

Managing Director

Address :

Flat-1101, Sanghvi Villa, Plot No.73, S.V. Road, TPS VI, Andheri (West), Mumbai – 400 058, Maharashtra, India

Date of Birth/Age :

17.05.1964

Qualification :

B.Sc.

Experience :

24 Years

Date of Appointment :

22.10.2007

DIN No.:

00012867

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27109MH1993PTC075474	Neela India Private Limited	Managing director	06-12-93	06-12-93	Amalgamated	NO
2	U28920MH1999PTC122156	Pure Flow India Private Limited	Director	11-10-99	11-10-99	Strike off	NO
3	U41000MH2007PLC175261	Neela Systems Limited	Managing director	01-04-11	22-10-07	Active	NO

Name :

Mrs. Manisha Himanshu Shah

Designation :

Whole Time Director

Address :

Flat-1201, Sanghvi Villa, Plot No.73, S.V. Road, TPS VI, Andheri (West), Mumbai – 400 058, Maharashtra, India

Date of Birth/Age :

25.11.1965

Date of Appointment :

22.10.2007

DIN No.:

00012661

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U28920MH1999PTC122156	Pure Flow India Private Limited	Director	01-08-00	01-08-00	Strike off	NO
2	U27109MH1993PTC075474	Neela India Private Limited	Director	01-04-02	01-04-02	Amalgamated	NO
3	U41000MH2007PLC175261	Neela Systems Limited	Whole-time director	01-04-11	22-10-07	Active	NO

Name :

Mrs. Sunanda Virendra Shah

Designation :

Whole Time Director

Address :

1201, 12^th Floor, Sanghvi Villa TPS No. VI, Plot 75, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra, India

Date of Birth/Age :

20.07.1940

Date of Appointment :

22.10.2007

DIN No.:

00012950

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27109MH1993PTC075474	Neela India Private Limited	Director	01-04-96	01-04-96	Amalgamated	NO
2	U28920MH1999PTC122156	Pure Flow India Private Limited	Director	01-08-00	01-08-00	Strike off	NO
3	U41000MH2007PLC175261	Neela Systems Limited	Whole-time director	01-04-11	22-10-07	Active	NO

Name :

Mr. Amit Parmanand Shah

Designation :

Additional Director

Address :

401, Shashwat Building, S.V. Road, Irla, Vile Parle, Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

19.02.1964

Date of Appointment :

01.10.2010

DIN No.:

00439765

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	U22220MH1995PTC093945	Spectrum Scan Private Limited	Director	26-10-95	26-10-95	-	Active	NO
2	U22219MH2002PTC136527	Spectrum Screen Private Limited	Director	17-07-02	17-07-02	-	Active	YES
3	U22200MH1971NPL015200	Bombay Master Printers Association	Director	17-08-06	17-08-06	-	Active	NO
4	U22219MH2001NPL133077	Screen Printers Association of India	Director	24-09-07	24-09-07	30-09-09	Active	NO
5	U41000MH2007PLC175261	Neela Systems Limited	Director	30-09-11	01-10-10	-	Active	NO

Name :

Mr. Darshan Anil Thakore

Designation :

Additional Director

Address :

71, Sanskar, J.V.P.D. Scheme, Road No.8, Vile Parle (West), Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

03.12.1965

Date of Appointment :

01.10.2010

DIN No.:

00840871

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U52311MH2007PTC166736	Anantco Enterprises Private Limited	Director	04-01-07	04-01-07	Active	NO
2	U41000MH2007PLC175261	Neela Systems Limited	Director	30-09-11	01-10-10	Active	NO

Name :

Mr. Rajiv Manharlal Shah

Designation :

Additional Director

Address :

3, Guru Smruti, Swastik Society, N.S. Road No.4, J.V.P.D. Scheme, Vile Parle (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

06.05.1963

Date of Appointment :

01.10.2010

DIN No.:

01914229

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U18101MH2008PTC182244	Clothes Rack Private Limited	Managing director	15-05-08	15-05-08	Active	NO
2	U41000MH2007PLC175261	Neela Systems Limited	Director	30-09-11	01-10-10	Active	NO

KEY EXECUTIVES

Name :	Mr. V.C. Jain
Designation :	A.V.P. Account

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Himanshu Shah jointly with Manisha H. Shah jointly with Sunanda Shah	3000000
Manisha Shah jointly with Himanshu Shah jointly with Sunanda Shah	1000000
Sunanda Shah jointly with Himanshu Shah jointly with Manisha H. Shah	499970
Krishika Shah jointly with Manisha H. Shah	250000
Naman Shah (Minor)	250000
Ketan Shah jointly with Manisha H. Shah	10
Nilima Shah jointly with Manisha H. Shah	10
Siddharth Shah jointly with Himanshu Shah	10
Total	5000000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Exporter and Importer of Purified Water System, Tanks and Heaters.
Products :	v Seed Cleaners v Pan Mixer v One Way Roll Crushers v Dental Lab Lathe v Gas Handling Projects v Agitated Nutsche Filter Dryer v Vacuum Ejector Systems v Customize PP Tank v Gravimetric Systems v Emulsion Tank
Exports :
Products :	v Seed Cleaners v Pan Mixer v One Way Roll Crushers v Dental Lab Lathe v Gas Handling Projects v Agitated Nutsche Filter Dryer v Vacuum Ejector Systems v Customize PP Tank v Gravimetric Systems v Emulsion Tank
Countries :	v Poland v Vietnam v Bangladesh
Imports :
Products :	Components
Countries :	v China v UK v USA
Terms :
Selling :	Credit
Purchasing :	L/C

GENERAL INFORMATION

Suppliers :

v Alfa Laval

Customers :

Manufacturing Company

v Aurobindo Pharma

v Cadila Healthcare Limited

v Dishman Pharma Healthcare

v Wockhardt

v L’Oreal

v NecLife

v Ranbaxy

v Glenmark

v Unichem

v Shasun

No. of Employees :

More than 250 (Approximately)

Bankers :

v State Bank of India, Industrial Finance Branch, Near Chincholi Phatak, S.V. Road, Malad West, Mumbai – 400 064, Maharashtra, India

v Axis Bank, Goregaon (West)

Facilities :

Cash Credit – Rs.220.000 millions and Term Loan – Rs.120.000 millions (From State Bank of India)

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Working capital loans banks secured Cash Credit Loan (Hypothecation of Stocks and Book Debts)	169.709	117.248
Loans taken for vehicles secured Term Loan (Hypothecation of Vehicles)	0.733	2.782
Loans taken for other fixed assets secured Term Loan (Building and Machinery)	71.996	96.101
Total	242.438	216.131

SECURED LOANS:

a) Cash Credit Balance with State Bank of India (IFB), Malad, Mumbai is secured by first charge on the company's entire stocks of raw material, packing material, semi finished and finished goods, consumable stores and spares, book debts and is collaterally secured by charge on the fixed assets of the company.

b) Cash Credit facilities with State Bank of India (IFB), is further secured by first charge on Company’s entire current assets both present and future, wherever situated. It is further collaterally secured by mortgage of Land at Wada of the Company. Two out of the three directors has guaranteed the loan amount.

c) The Company has Term loan facilities from bankers secured by first charge on Company’s entire fixed assets acquired or to be acquired, wherever situated. It is further collaterally secured by mortgage of Land at Wada of the Company. Two out of the three directors has guaranteed the loan amount.

d) The Facilities from State Bank of India Bank (IFB), Malad (West), Mumbai are further Collaterally Secured by way of Equitable Mortgage on Office Premises of Associate Entity Neela Traders and also by way of extension of Equitable Mortgage on Flat of Directors.

e) Vehicle Loan is secured by hypothecation of vehicles and is financed by HDFC Bank Limited

f) The Fixed deposit of Rs.17.455 millions is charged to State Bank of India respectively as margin money for bank guarantee and letter of credit and as security with cash credit account.

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Loans directors unsecured	10.000	31.800
Total	10.000	31.800

Banking Relations :	--
Auditors :
Name :	Dhanraj Jain and Associates Chartered Accountants
Address :	31, Shubh Commercial Premises Co-operative Society Limited, Opposite Temptation Hotel, Akurli Station Road, Kandivali (East), Mumbai - 400 101, Maharashtra, India
PAN No.:	AAGPJ5394J
Associate Entities :	Neela Traders

CAPITAL STRUCTURE

As on 30.09.2011

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
5000000	Equity Shares	Rs.10/- each	Rs.50.000 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		50.000	50.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		270.285	188.722	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		320.285	238.722	10.000
LOAN FUNDS
1] Secured Loans		242.438	216.131	133.774
2] Unsecured Loans		10.000	31.800	22.700
TOTAL BORROWING		252.438	247.931	156.474
DEFERRED TAX LIABILITIES		6.753	5.058	0.000
TOTAL		579.476	491.711	166.474
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		262.168	237.720	9.086
Pre Operative Expenses Pending Allocation		0.000	0.000	3.153
Capital work-in-progress		0.000	0.000	80.033
INVESTMENT		0.000	0.000	0.001
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	260.731	224.927	0.000
	Sundry Debtors	196.014	188.365	0.000
	Cash & Bank Balances	55.611	34.136	75.181
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	61.913	67.395	1.740
Total Current Assets		574.269	514.823	76.921
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	157.825	143.950	3.167
	Other Current Liabilities	69.908	102.397	0.043
	Provisions	29.546	14.909	0.000
Total Current Liabilities		257.279	261.256	3.210
Net Current Assets		316.990	253.567	73.711
MISCELLANEOUS EXPENSES		0.318	0.424	0.490
TOTAL		579.476	491.711	166.474

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	804.850	585.140	0.000
		Other Income	11.290	5.909	0.000
		TOTAL (A)	816.140	591.049	0.000
Less	EXPENSES
		Consumption materials changes inventories	412.780	335.184	0.000
		Manufacturing service costs	55.750	30.578	0.000
		Employee related expenses	90.357	62.590	0.000
		Administrative selling other expenses	69.719	54.040	0.000
		TOTAL (B)	628.606	482.392	0.000
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		187.534	108.657	0.000
Less	INTEREST FINANCIAL CHARGES (D)		28.713	5.039	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		158.821	103.618	0.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.738	6.972	0.000
	PROFIT BEFORE TAX (E-F) (G)		138.083	96.646	0.000
Less	TAX (H)		49.524	35.546	0.000
	PROFIT AFTER TAX (G-H) (I)		88.559	61.100	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		50.952	0.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	5.000	0.000
		Proposed Dividend	6.000	4.400	0.000
		Provision for Dividend Tax	0.996	0.748	0.000
	BALANCE CARRIED TO THE B/S		122.515	50.952	0.000
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of exports	50.725	2.019	0.000
	TOTAL EARNINGS		50.725	2.019	0.000
	Earnings Per Share (Rs.)		17.71	16.46	0.00

Expected Sales (2011-2012): Rs.1000.000 millions

The above information has been parted by Mr. V.C. Jain (A.V.P. Account).

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.85	10.34	0.00
Net Profit Margin (PBT/Sales)	(%)	17.16	16.52	0.00
Return on Total Assets (PBT/Total Assets}	(%)	16.51	12.84	0.00
Return on Investment (ROI) (PBT/Networth)		0.43	0.40	0.00
Debt Equity Ratio (Total Liability/Networth)		1.59	2.13	15.97
Current Ratio (Current Asset/Current Liability)		2.23	1.97	23.96

LOCAL AGENCY FURTHER INFORMATION

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 three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	--
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
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	--

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry creditors
Creditors due small micro enterprises	--	--	--
Creditors due others (Sundry Creditors for Goods, Sundry Creditors for Capital goods, Sundry Creditors for Expenses)	157.825	143.950	3.167
Total	157.825	143.950	3.167

Note:

The registered office of the company has been shifted from 4/5, Piramal Industrial Premises Co-Operative Society Limited, S.V. Road, Goregaon (West) Mumbai – 400 062, Maharashtra to the present address w.e.f. 15.07.2011.

FINANCIAL RESULTS:

During the financial year ended 31^st March, 2011, the Company has earned total income of Rs.853.929 millions including adjustment made towards stocks. The Company has earned a profit of Rs.88.559 after providing provisions for depreciation of Rs.20.738 millions and Taxation of Rs.49.524 millions.

MERGER OF NIPL:

The High Court of Judicature at Bombay has passed an order on 7^th May, 2010, approving the scheme of arrangement between Neela India Private Limited (Called as “The Amalgamating Company”) and Neela Systems Limited (Called as “Resulting Company”) and their respective shareholders (Scheme).

The appointed date of the Scheme is 1^st August, 2009 and the effective date of the Scheme is 14^th May, 2010.

Upon coming into effect to this Scheme and with effect from the Appointed Date the undertaking of Amalgamating Company (Neela India Private Limited) has been transferred to and vested in the Resulting Company (Neela Systems Limited) as a going concern. Thereafter, with effect from the appointed date the Amalgamated Company (Neela Systems Limited) has been transferred and vested with all Assets and Liabilities on going concern basis.

Due to this scheme of Arrangement, the accounts of Neela Systems Limited of previous year includes accounts of Neela India Private Limited for the period 01.08.2009 to 31.03.2010 as merged accounts containing accounts of Neela Systems Limited for 01.04.2009 to 31.03.2010 and accounts of Neela India Private Limited for the period 01.08.2009 to 31.03.2010.

Contingent Liabilities: (As on 31.03.2011)

Provisions are recognized based on the best estimates of probable outflow of resources which would be required

to settle obligations arising out of past events. No provision is required to be made for liabilities which are contingent in nature.

v Bank Guarantees Rs.62.985 millions

FORM 8:

Corporate identity number of the company	U41000MH2007PLC175261
Name of the company	NEELA SYSTEMS LIMITED
Address of the registered office or of the principal place of business in India of the company	4/8, Piramal Industrial Premises Co-Operative Society Limited, S.V. Road, Goregaon (West), Mumbai – 400 062, Maharashtra, India E-Mail: vcjain@neelasystemslimited.com
This form is for	Modification of charge
Charge identification number of the modified	10130438
Type of charge	Book Debts Movable Property Others (other movable current assets)
Particular of charge holder	State Bank of India, Industrial Finance Branch, Near Chincholi Phatak, S.V. Road, Malad West, Mumbai – 400 064, Maharashtra, India E-Mail: sbi.04760@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental agreement of loan cum hypothecation (SME-4)
Date of instrument Creating the charge	29.09.2011
Amount secured by the charge	Rs.220.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: @ 15% p.a. with monthly rests or at such other rate as may be fixed by the bank from time to time. Terms of Repayment: On demand Margin: @ 25% Extent and Operation of the charge: Security created by way of first charge and to cover the principal amount together with interest, costs, charges, expenses etc. Others: Security created in respect of Demand cash credit with a sub limit of EPC/EBD/EBP of Rs.20.000 millions within the DCC limit.
Short particulars of the property charged	All present and future stocks, raw materials, goods, book debts, and vehicles and all other movable current assets including receivables, documents of title to goods, outstanding monies, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights and the present machinery and all the future machinery belonging to or in possession or control of the company or Bank or any third party whether in India or elsewhere including those in course of transit.
Date of latest modification prior to the present modification	09.03.2011
Particulars of the present modification	The total amount secured in respect of cash credit limit stands enhanced from Rs.170.000 millions to Rs.220.000 millions. Separate Form No.8 is being filed under Charge Identification Number 10129706 and 10129707 to cover the existing LC / BG and outstanding term loan facility aggregating Rs.226.000 millions.

TRADE REFERENCES:

v Alfa Laval

v Aurobindo Pharma

v Cadila Healthcare Limited

v Dishman Pharma Healthcare

FIXED ASSETS:

v Office Building

v Factory Building

v Plant and Machinery

v Office Equipments

v Computer Equipments

v Furniture and Fixtures

v 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.52.23
UK Pound	1	Rs.80.84
Euro	1	Rs.66.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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		47

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.