MIRA INFORM REPORT

Report Date :

02.07.2012

IDENTIFICATION DETAILS

Name :	DHUNSERI PETROCHEM AND TEA LIMITED
Formerly Known As :	DHUNSERI TEA AND INDUSTRIES
Registered Office :	Dhunseri House, 4-A, Woodburn Park, Kolkata-700 020, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.05.1916
Com. Reg. No.:	2697
CIN No.: [Company Identification No.]	L15492WB1916PLC002697
TAN No.: [Tax Deduction & Collection Account No.]	CALD02820G
PAN No.: [Permanent Account No.]	AABCD1597K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Polyethylene Terephthalate (Pet) Resin and Tea.

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 24000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 :	Dhunseri House, 4-A, Woodburn Park, Kolkata-700 020, West Bengal, India
Tel. No.:	91-33-22821950
Fax No.:	91-33-22878350
E-Mail :	aspet@cal2.vsnl.net.in

DIRECTORS

AS ON 31.03.2010

Name :	Mr. C K Dhanuka
Designation :	Chairman, Managing Director and Chief Executive Officer
Name :	Mr. M Dhanuka
Designation :	Vice Chairman and Executive Dire
Name :	Mr. Bharat Bajoria
Designation :	Director
Name :	Mr. Yvues Frank Lombard
Designation :	Director
Name :	Mr. Joginder Pal Kundra
Designation :	Director
Name :	Mr. Pradip Kumar Khaitan
Designation :	Director
Name :	Mr. Basudeb Sen
Designation :	Director
Name :	Mr. Anurag Bagaria
Designation :	Director
Name :	Mr. Sanjay Kumar Pai
Designation :	Director
Name :	Mr. Biswanath Chhattopadhyay
Designation :	Executive Director and Chief Executive Officer
Name :	Mr. Raj Narain Bharadwaj
Designation :	Director

KEY EXECUTIVES

Name :	Mr. K V Balan
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	907,343	7.75
Bodies Corporate	4,080,776	34.85
Sub Total	4,988,119	42.59
(2) Foreign
Bodies Corporate	3,795,054	32.41
Sub Total	3,795,054	32.41
Total shareholding of Promoter and Promoter Group (A)	8,783,173	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	8,111	0.07
Financial Institutions / Banks	4,345	0.04
Central Government / State Government(s)	175	-
Sub Total	12,631	0.11
(2) Non-Institutions
Bodies Corporate	1,483,755	12.67
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 millions	1,251,415	10.69
Individual shareholders holding nominal share capital in excess of Rs.0.100 millions	152,421	1.30
Any Others (Specify)	27,500	0.23
Non Resident Indians	10,764	0.09
Foreign Nationals	6,988	0.06
Trusts	8,614	0.07
Custodian	1,134	0.01
Sub Total	2,915,091	24.89
Total Public shareholding (B)	2,927,722	25.00
Total (A)+(B)	11,710,895	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	11,710,895	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polyethylene Terephthalate (Pet) Resin and Tea.

GENERAL INFORMATION

Bankers :

Not Available

Banking Relations :
Auditors :	Not Available

CAPITAL STRUCTURE

As on 04.09.2010

Authorised Capital : Rs.3.512 millions

Issued, Subscribed & Paid-up Capital : Rs.350.247 millions

As on 31.03.2010

Issued, Subscribed & Paid-up Capital :Rs.350.300 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		350.300	117.200	117.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5715.400	1311.800	1174.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6065.700	1429.000	1291.700
LOAN FUNDS
1] Secured Loans		3042.300	217.400	293.000
2] Unsecured Loans		933.300	194.400	202.700
TOTAL BORROWING		3975.600	411.800	495.700
DEFERRED TAX LIABILITIES		382.700	58.500	35.400
TOTAL		10424.000	1899.300	1822.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5370.100	505.900	457.900
Capital work-in-progress		435.700	5.600	4.900
INVESTMENT		815.600	1533.700	1543.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	760.700	127.600	109.300
	Sundry Debtors	1491.100	107.400	104..600
	Cash & Bank Balances	2382.000	88.100	17.000
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1642.900	83.400	115.400
Total Current Assets		6276.700	406.500	346.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	2273.000	498.600	483.500
	Provisions	201.100	53.800	45.900
Total Current Liabilities		2474.100	552.400	529.400
Net Current Assets		3802.600	(145.900)	(183.100)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		10424.000	1899.300	1822.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	11401.100	1045.300	915.300
		Other Income	633.900	124.600	134.900
		TOTAL (A)	12035.000	1169.900	1050.200
Less	EXPENSES
		Raw Materials	8139.400	192.700	157.600
		Power & Fuel Cost	535.700	98.800	87.300
		Employee Cost	425.000	292.000	296.400
		Other Manufacturing Expenses	249.500	135.100	124.800
		Selling and Administration Expenses	680.300	96.200	96.400
		Miscellaneous Expenses	207.000	69.600	25.600
		Stock Adjustments	105.300	(0.500)	23.700
		TOTAL (B)	10342.200	883.900	811.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1692.800	286.000	238.400
Less	FINANCIAL EXPENSES (D)		233.000	43.700	70.500
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1459.800	242.300	167.900
Less/ Add	DEPRECIATION/ AMORTISATION (F)		278.800	25.900	27.600
	PROFIT BEFORE TAX (E-F) (G)		1181.000	216.400	140.300
Less	TAX (H)		290.500	49.800	5.200
	PROFIT AFTER TAX (G-H) (I)		890.500	166.600	135.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		84.900	97.600	61.000
Less	APPROPRIATIONS		252.400	179.300	43.400
	BALANCE CARRIED TO THE B/S		2031.700	84.900	97.600
	Earnings Per Share (Rs.)		73.99	14.22	19.33

SUMMARISED RESULTS

PARTICULARS	30.06.2010
Gross Sales	3478.500
Other Operating Income	89.500
Other Income	45.100
Total Income	3613.100
Total Expenditure	3210.200
PBIDT	402.900
Interest	42.000
PBDT	360.900
Depreciation	65.500
Tax	59.700
Fringe Benefit Tax	0.000
Deferred Tax	0.000
Reported Profit After Tax	235.700
Extra-ordinary Items	(33.000)
Adjusted Profit After Extra-ordinary item	268.700

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.40	14.24	12.86
Net Profit Margin (PBT/Sales)	(%)	10.36	20.70	13.36
Return on Total Assets (PBT/Total Assets}	(%)	10.14	23.72	17.45
Return on Investment (ROI) (PBT/Networth)		0.19	0.15	0.11
Debt Equity Ratio (Total Liability/Networth)		1.06	0.67	0.79
Current Ratio (Current Asset/Current Liability)		2.54	0.74	0.65

LOCAL AGENCY FURTHER INFORMATION

COMPANY HISTORY

Subject was incorporated in 1961. The S L Dhanuka group took over the management of the company in 1955 from James Finlay and Company. In 1970, the company was renamed Dhunseri Tea and Industries. In 1980, the company acquired the Namsang and Dilli Gardens in Assam. It took over Bahadur Tea Company and amalgamated it with DTCL on 1 Apr.'91. In 1994, it acquired three more tea estates -- Santi tea estate, Khetojan tea estate and Khagorijan tea estate. Santi tea estate was amalgamated with DTCL on 1 Apr.'93. The company has 1248 hectares of plantation area in Assam.It came out with a public issue in Dec.'92 and a rights issue of NCDs with detachable warrants in Jul.'94. The funds from the rights issue were utilised to acquire the three tea estates mentioned above and to expand manufacturing facilities. DTCL cultivates and sells tea in packed form. DTCL also has a pharmaceutical division called Iveon Laboratories (ILL). It produces IV fluids with the latest FFS technology. In 1993, the company expanded the production capacity from 35 lac bottles pa (LBA) to 167 LBA. The company has set up packaging plants near its gardens, and markets them under the Lal Ghora and Kala Ghora brands. During 1998-99, the Company raised a sum of Rs.80.000 millions by issue of 15% Secured Non-convertible Debentures on private placement basis with financial institutions to augment long-term resources of the Company for working capital requirements. The company has promoted South Asian Petrochem Limited, a 100% E.O.U. petrochemical project at Haldia, West Bengal, for manufacture of PET Resins under technical and financial collaboration with Lurgi Zimmer AG of Germany, during the 1999-2000. The 100% EOU petrochemical project viz South Asian Petrochem Limited was completed ahead of schedule. The Technical and Financial collaboration was done by Zimmer A G, Germany. The trial run for the project is going on and once completed the commercial production will be commenced. During 2000-01, the company was allotted 69,99,400 Equity Shares of Rs.10/- each by South Asian Petrochem Limited, and with this allotment, the total holding of the in South Asian Petrochem Limited has gone upto about 70% of its issued share capital, thereby making it a subsidiary of Dhunseri Tea and Industries Limited.

Operations:
 
The total tea manufacturing and sales for the year was 9.9 and 10.0 mn kg. As against 10.4 and 10.6 mn kg, respectively in the previous year. The production for the year was less due to adverse weather conditions. Although, the sales in terms of volume were also less in comparison to the previous year, it was offset by better sales realisation during the year resulting in higher turnover. 
 
The Company's existing brands viz. LAL GHORA and KALA GHORA continues to retain their position as market leader in the State of Rajasthan. To further consolidate this position, certain initiatives being undertaken are expected to enhance the market share for packet teas of the Company. 
 
The demand for orthodox tea continues to rise. The programme for uprooting and replanting with quality clones is continuing in a phased manner. The programme for modification and extension of the existing manufacturing facilities, as well as the setting up of new facilities for manufacture of orthodox tea have been implemented and is expected to be beneficial for the Company. During the year, upgrading of machineries at some of the tea factories were undertaken, for achieving quality improvement as well as increased output.
 
The Company continues to focus on improving the yield for achieving higher productivity with resultant reduction in production cost. It is also constantly monitoring the adoption of cost control as well as quality up gradation measures which will enable the company to sustain its growth and profitability over the coming years.
 
Madhuting Tea Private Limited:
 
The annual production of tea of Madhuting Tea Private Limited, (in which the Company holds 50% of its paid-up capital), was 9.82 lac kg, entirely comprising orthodox tea, in comparison to 10.17 lac kg. In the previous year. The programme for extension of the plantation area undertaken by the Company was completed during the year. The realizations during the year were better in comparison to the previous year.
 
Amalgamation of UNI Stock Private Limited:
 
As per the scheme of amalgamation of UNI Stock Private Limited with the Company, sanctioned by the Hon'ble High Court at Calcutta by an order passed on 3rd September 2008, the Board had allotted 3795054 equity shares of Rs.10/- each fully paid-up on 24th November,2008 to the erstwhile member of the amalgamated company. 
 
With this allotment the issued and paid-up capital of the Company increased from Rs.79.239 millions to Rs.117.190, comprising of 1, 17, 10,895 equity shares of Rs10 each fully paid-up and a sum of Rs.0.081millions originally paid-up on forfeited equity shares.
 
Subsidiary Company:
 
South Asian Petrochem Limited (SAPL), an export oriented unit promoted by the Company is engaged in manufacture of PET Resin. In its sixth year of business relating to year ended 31st March 2009, it achieved a turnover of Rs.11600 millions as against Rs.10440 millions in the previous year. The Company's EBIDTA was Rs.718.100 millions in 2008-09, as against Rs.1267.900 millions in the previous year and its PAT was Rs.157.300 millions in 2008-09 as against Rs.555.300 millions in the previous year. It was conferred with an award for being the best EOU (Non SSI Category: Plastic Products) by Export Promotion Council for EOUs and SEZs, Ministry of Commerce and Industry, Government of India for the year 2006-07.
 
A dividend of Re.0.40 per equity share for the year ended 31st March 2009 has been recommended for approval at the AGM being convened on 25th July 2009.
 
The Company has received from the Central Government exemption under Section 212 vide letter No.47/263/2009 CLIII dated 24.04.2009. Accordingly, the Audited Statements of Accounts, the Reports of the Board of Directors and Auditors of the Subsidiary Companies are not annexed. Shareholders who wish to have a copy of the full report and accounts of the subsidiaries will be provided the same on receipt of written request from them. These documents will also be available for inspection by any shareholder at the Registered Office of the Company on any working day during business hours. 
 
As required under the Listing Agreement with the stock exchanges, the audited consolidated financial statements of the Company are also attached and form part of the annual report of the Company.
 
M/s Madhuting Tea Private Limited being an associate company since 2002, its results for the year ended 31st March 2009 have also been considered in the above Consolidated Financial Statements.
 
Dhunseri IT Park:
 
This new venture of the company is proposed to be developed on about 6 acres of land and will comprise of a twin tower with a total built-up area of about 7.19 lac sq.ft.
 
The financial tie-up for the project has been completed and the entire project cost is envisaged to be around Rs130 cr. The work on the 1st phase of the project is likely to commence by November, 2009 and is expected to be completed in about two years. However, the position will be reviewed in October 2009 before commencement of the project. 
 
The foundation stone for the project was laid by the Hon'ble Chief Minister Sri. Buddhadeb Bhattacharjee on 19th January 2009.
 
Management Discussion and Analysis Report:
 
Industry structure and developments:
 
The total tea production during the season 2008 for the industry as a whole was higher compared to the season 2007. 
 
This was mainly due to higher crop in South India. The average realisations were also higher for the industry during the season 2008 in comparison to season 2007.
 
The Company's production as marginally less in relation to the last year's level due to more emphasis on quality and orthodox production.
 
Opportunities and threats:
 
With global production being comparatively less and with less carry-over stock, coupled with rising domestic demand and exports, the tea prices ruled firm. The demand for internal consumption of tea as well as exports are expected to grow in the coming years. With overall domestic production not expected to increase significantly in comparison to the demand, will result in increased realisation for the industry. 
 
Outlook:
 
The outlook for the industry is expected to further improve with increased exports as well as internal consumption, coupled with better price realisations in the coming years.
 
Industry developments:
 
Demand and supply:
 
Tea is among the few sectors with growing long-term demand. The global tea market grew from US$1.84 bn in 1990 to US$7.3 bn in 2008 and is expected to double in five years. Barring the last quarter of 2008, overall tea demand increased during the year. Europe's per capita tea consumption was estimated at 25 litres (source: German Tea Association), while the UK tea market grew 2% in 2007 and 0.4% in 2008. Tea sales in the UK increased owing to greater affordability over competing beverages.
 
Production:
 
India's $1.5 bn tea industry has been in a slump since 1998, with prices and exports plummeting because of weak domestic demand and increased international competition, coupled with poor quality teas produced in the country. But 2008 was a turning point. The quality of India's tea produce improved significantly, fetching higher realisations. During the year, India's production was estimated at around 980 mn with North India 
Accounting for more than 75% of the country's tea production. The tea gardens in Assam accounted for more than 65% of the North Indian tea production.
 
Drought in Assam:
 
Owing to the dry spell, tea production in Assam declined between February and March 2009. The drought-like conditions and pest problems prompted tea manufacturers to protect bushes and secure production.
Consumption:
 
India is the second largest tea consumer in the world. The country's tea demand grew 2.5-3% during 2008-09. Based on the prevailing 3.5% annual consumption growth, domestic demand is expected to rise by 35-38 mn kg. As per the survey done by ORG-Marg for the Tea Board of India, India's per capita tea consumption is 0.8 kg, far below UK's 2.5 kg, Ireland's 1.5 kg, Pakistan's 0.95 kg, along with Bangladesh and Sri Lanka's 1.2 kg.
 
Pricing:
 
Owing to a lower global production, realisations strengthened 15% per cent - from Rs.101.26 in 2007 to Rs.116.39 in 2008. Average auction prices increased l0% in the last nine months of 2008 when compared to auction averages of the previous season. Auction prices in the North Indian auction markets reached a high of Rs.105.58 in 2008-09, compared to a high of Rs.81.82 in 2007-08.
 
Exports:
 
India exported 1, 83,987 thousand kg of tea in 2008-09 as against 1, 85,322 thousand kg in 2007-08, a 0.7% decline. In value terms, exports increased 18% from Rs.18880.000 millions in 2007-08 to Rs.22270.000 millions in 2008-09 as average export prices strengthened from Rs.101.91 per kg in 2007-08 to Rs 123.64 per kg in 2008-09. The average export price of North Indian tea strengthened from Rs.117.22 in 2007-08 to Rs.146.18 in 2008-09. The tea exports were primarily dominated by loose BT tea, a widely used variety, which accounted for 72% of exports in volume terms and 67% in value terms.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2010

(Rs. In Millions)

Particulars	3 Months Ended
	30.06.2010 (Unaudited)
(a) Net Sales / Income from operations	3478.459
(b) Other Operating Income	89.514
Total Income	3567.973
Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	(125.171)
b) Consumption of raw materials	2696.878
c) Employees cost	117.096
d) Power and Fuel	129.865
e) Depreciation	65.463
f) Other expenditure	350.020
Total	3234.151
Profit from operations before other income, interest and foreign exchange Fluctuation on term loan liability exceptional liability	333.822
Other income	45.055
Profit before interest and foreign exchange Fluctuation on term loan liability exceptional liability	378.877
Interest	42.001
Profit from Ordinary Activities before and foreign exchange Fluctuation on term loan liability and Tax	336.876
Foreign Exchange fluctuation gain /Loss on Term loan Liability	(41.428)
Profit from Ordinary Activities before tax	295.448
Tax Expenses	59.722
Net Profit from Ordinary Activities after tax	235.726
Paid up equity share capital (Face value of Rs.10/- per share)	350.329
Reserves excluding revaluation reserves as per balance sheet of previous accounting year	-
Earning per share (EPS) (Not Annualized)
(a) Basic	6.73
(b) Diluted	6.41
Public shareholding
Number of shares	13095241
Percentage of shareholding	37.39
Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	-
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	0.00
Percentage of shares (as a % of total share capital of the company)	0.00
b) Non Encumbered
Number of shares	21929513
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00
Percentage of shares (as a % of total share capital of the company)	62.61

Notes:

1. The above results were reviewed by the audit committee and approved by the Board of Directors at their respective meeting held on 31.07.2010. The statutory auditors of the company have also carried out limited review of the results.
2. details number of investor complaints for the quarter ended 30.06.2010 are Beginning- Nil, Received-1, disposal-1, Pending Nil
3. A) During the Year 2007-2008 the company raised Rs.717.700 millions by preferential Allotment of Equity Shares. Out of the net proceed after meeting issue expenses Rs.693.566 millions has been utilized as an advanced towards equity Participation/ Expenses in new oversees project. The balance utilized money stands deposited with banks.

B) The company had issued 200 Zero percent unsecured foreign currency convertible Bonds (FCCB) of US$ 100000 each aggregating to US$12.5 million has been brought back cancelled by the company at a discount on face value. Consequent upon such Buy Back and cancellation, the company’s obligations to convert the said bonds into shares. If so claimed by the Bonds holders and/or to redeem the same in foreign currency has to come in an end vis-à-vis the cancelled Bonds. The company is of the view that the balance outstanding Bonds may not ultimately redeemed as the same may be converted into equity shares within the assigned date and hence has not considered the effect of realignment of the bonds value as prescribed in the accounting standards (AS11) on effects of challenges in foreign exchange Rates notified in the companies rules 2006 and also not provided for premium on redemption of the said bonds.

4. Segment wise revenue, Results and capital employed for quarter ended 30.06.2010

(Rs. In Millions)

Particulars	3 Months Ended
	30.06.2010 (Unaudited)
Segment Revenue
Tea	270.287
Polyster Chips	3208.172
Total	3478.459
Segment Results before Tax and Interest
Tea	7375.300
Polyster Chips	255.782
Total	329.535
Other unallocable Expenditure	(72.001)
Total Profit Before Tax	7.914
Capital Employed	10108.700
Tea	534.767
Polyster Chips	1212.474
unallocable	8361.459

5. The figures for the current quarter are n0ot comparable with those of the previous quarter due to the scheme of arrangement as mentioned point No.4 above
6. previous results figures have been regrouped / rearranged wherever necessary

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.56.31
UK Pound	1	Rs.88.06
Euro	1	Rs.70.91

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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

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.