1. Summary Information

		Country	India
Company Name	KORTEK ELECTRONICS (INDIA) LIMITED	Principal Name 1	Mr. Young Man Yoon
Status	Moderate	Principal Name 2	Mr. Kil Hwan Lee
		Registration #	55-108800
Street Address	1/ 24, Asaf Ali Road, New Delhi – 110002, India
Established Date	08.12.2000	SIC Code	--
Telephone#	91-120-2569460	Business Style 1	Manufacturer
Fax #	91-120-2569461	Business Style 2	--
Homepage	www.kortekelectronics.com	Product Name 1	Printed Circuit Board for CTV Assembly
# of employees	800 (Approximately)	Product Name 2	Monitor Assembly
Paid up capital	Rs.43,132,600 /-	Product Name 3	DVD Player
Shareholders	Foreign holdings-100%	Banking	Standard Chartered Bank
Public Limited Corp.	NO	Business Period	11 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	B (37)
Related Company
Relation	Country	Company Name	CEO
Holding Company	Hong Kong	Kohin Electronics Company Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	1,426,081,000	Current Liabilities	1,521,866,000
Inventories	554,079,000	Long-term Liabilities	291,958,000
Fixed Assets	410,215,000	Other Liabilities	47,174,000
Deferred Assets	0,000	Total Liabilities	1,860,998,000
Invest& other Assets	34,894,000	Retained Earnings	521,139,000
		Net Worth	564,271,000
Total Assets	2,425,269,000	Total Liab. & Equity	2,425,269,000
Total Assets (Previous Year)	2,551,437,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	3,990,904,000	Net Profit	143,436,000
Sales(Previous yr)	4,739,116,000	Net Profit(Prev.yr)	58,971,000

MIRA INFORM REPORT

Report Date :

04.07.2012

IDENTIFICATION DETAILS

Name :	KORTEK ELECTRONICS (INDIA) LIMITED (w.e.f. 03.03.2010)
Formerly Known As :	KYUNG IN ELECTRONICS (INDIA) PRIVATE LIMITED
Registered Office :	1/ 24, Asaf Ali Road, New Delhi – 110002
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.12.2000
Com. Reg. No.:	55-108800
Capital Investment/ Paid-up Capital:	Rs.43.132 Millions
CIN No.: [Company Identification No.]	U74899DL2000PLC108800
TAN No.: [Tax Deduction & Collection Account No.]	DELK04047B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Electronic Items like Printed Circuit Board for CTV assembly and Monitor Assembly, Remote Control Apprats for CTV, DVD Player, etc.
No. of Employees:	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 2250000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The latest financials of the company are not made available. As per our old database, we found that the company has been doing well over years. Trade relations are reported as decent. Business is active. Payment terms are not known. The company can be considered for business dealings with some caution. Note: Rating is based on general informations as latest financial are not made available.

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 :	1/ 24, Asaf Ali Road, New Delhi – 110002, India
Tel. No.:	91-120-2569460
Fax No.:	91-120-2569461
E-Mail :	kortekindia@rediffmail.com
Website :	www.kortekelectronics.com
Corporate Office/ Factory 1 :	35-B, Udyog Vihar Industrial Area, Greater Noida – 201 306, Uttar Pradesh, India
Tel. No.:	91-120-2569264-67 (4 Lines)
Fax No.:	91-120-2569461
E-Mail :	mkt@kortekelectronics.com
Manufacturing Plants :
Factory 2 :	Lotte Electronics Limited, Plot Khasra No.539-542, Near Nalanda School, Tehsil Kichha, District Udhamsingh Nagar, Rudrapur – 263 148, Uttarakhand, India
Factory 3 :	Plot No.543, Village Kishanpur, Tehsil Kichha, District Udham Singh Nagar, Rudrapur – 263 148, Uttarakhand, India
Tel. No.:	91-5944-280264

DIRECTORS

As on: 26.09.2011

Name :

Mr. Young Man Yoon

Designation :

Whole Time Director

Address :

T-2, 801, Earth Court, Jaypee Green, Greater Noida, Uttar Pradesh, India

Date of Birth/Age :

13.11.1959

Date of Appointment :

14.07.2001

DIN No.:

00038294

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL2000PLC108800	KORTEK ELECTRONICS (INDIA) LIMITED	Director	14-07-01	14-07-01	-	Active	NO
2	U32109DL2005PTC135897	KY MAGIC ENTERTAINMENT PRIVATE LIMITED	Director	30-01-07	30-01-07	-	Active	NO
3	U74120DL2008PLC175729	LOTTE ELECTRONICS LIMITED	Director	20-03-08	20-03-08	-	Active	NO

Name :

Mr. Kil Hwan Lee

Designation :

Director

Address :

Flot 19 F, Tower 1, The Belchers – 89, Pokfulam Road, Hong Kong

Date of Birth/Age :

06.08.1958

Date of Appointment :

20.07.2001

DIN No.:

00283145

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL2000PLC108800	KORTEK ELECTRONICS (INDIA) LIMITED	Director	20-07-01	20-07-01	-	Active	NO
2	U32109DL2005PTC135897	KY MAGIC ENTERTAINMENT PRIVATE LIMITED	Director	06-05-05	06-05-05	-	Active	NO
3	U74120DL2008PLC175729	LOTTE ELECTRONICS LIMITED	Director	30-09-10	12-02-10	-	Active	NO

Name :

Mr. Yeong Sung Kim

Designation :

Director

Address :

Block – 47, 10/ F, Baugio Villa – 555, Victoria Road, Hong Kong

Date of Birth/Age :

26.08.1958

Date of Appointment :

03.06.2004

DIN No.:

00282811

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL2000PLC108800	KORTEK ELECTRONICS (INDIA) LIMITED	Director	03-06-04	03-06-04	-	Active	NO
2	U74899DL2005PTC143901	DONGNAM LOGISTICS INDIA PRIVATE LIMITED	Director	21-12-05	21-12-05	-	Active	NO
3	U32109DL2005PTC135897	KY MAGIC ENTERTAINMENT PRIVATE LIMITED	Director	06-05-06	06-05-06	-	Active	NO
4	U74120DL2008PLC175729	LOTTE ELECTRONICS LIMITED	Director	30-09-10	12-02-10	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Monika Bhayana
Designation :	Secretary
Address :	C-25G, Delhi Police Apartment, Mayur Vihar, Phase- I, Delhi – 110 091, India
Date of Birth/Age :	18.09.1978
Date of Appointment :	17.05.2006
PAN No.:	AJIPB9340H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 26.09.2011

Names of Shareholders	No. of Shares
Kohin Electronics Company Limited, Hong Kong	3849760
Kil Hwan Lee	154440
Young Man Yoon	154380
Yeong Sung Kim	154440
Kyoung Hee Lee	80
Sanjiv Kumar Jalan	40
Kim S. H.	20
Total	4313160

Equity Share Break up (Percentage of Total Equity)

As on: 26.09.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Electronic Items like Printed Circuit Board for CTV assembly and Monitor assembly, Remote Control Apprats for CTV, DVD Player, etc.

Products :

Product Description	ITC Code
Printed Circuit Board for CTV assembly and Monitor assembly	8534
Remote Control Apprats for CTV	8529
DVD Player	8521

PRODUCTION STATUS (As on: 31.03.2010)

Particulars	Unit	Installed Capacity
Printed Circuit Board Kit	Nos.	2000000
Remote Control	Nos.	4000000
DVD Players	Nos.	1000000
Set Top Box	Nos.	1500000
Karaoke System	Nos.	20000

Particulars	Unit	Actual Production
CTV, MNT Chassis Kit	Nos.	1302359
Remote Control	Nos.	3797310
Set Top Boxes	Nos.	349743
DVD Player	Nos.	743878
Karaoke System/ Mike	Nos.	11409

GENERAL INFORMATION

No. of Employees :

800 (Approximately)

Bankers :

· Axis Bank Limited, G-04, G-05, G-06, G-07, G-17, G-18,F-03, F-04d-1, Alpha Commercial Belt- I, Greater Noida - 201308, Uttar Pradesh, India

· Standard Chartered Bank, Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2010	As on 31.03.2009
From Banks:
Term Loan (Due within one year Rs.7.667 Millions, previous year Rs.17.567 millions)	11.766	25.999
Interest accrued on the above	0.100	0.139
Working Capital Facility	275.550	146.138
Interest accrued on the above The above term loan and cash credit facility are secured by way of hypothecation of all fixed assets and current assets, present and future and equitable mortgage of land and building situated at Greater Noida and guaranteed by Directors.	0.560	0.532
Secured by way of hypothecation of motor vehicles (Due within one year – Rs.2.122 Millions previous year Rs.2.645 millions)	3.936	4.145
Interest accrued on the above	0.038	0.031
From Others:
Secured by way of hypothecation of plant and machinery and guaranteed by Managing Director (Due within one year – Rs.0.008 previous year Rs.14.273 millions)	0.008	13.444
Interest accrued on the above	0.000	0.145
Total	291.958	190.573

Banking Relations :	--
Auditors :
Name :	V.K. Mehta and Company Chartered Accountants
Address :	409-409A International Trade Tower, Nehru Place, New Delhi – 110019, India
Tel. No.:	91-11-26470003
Fax No.:	91-11-46705533
E-Mail :	office@vamco.in
Website :	www.vamco.in
PAN No.:	AAAPM4504D
Subsidiary Company :	· KY MAGIC ENTERTAINMENT PRIVATE LIMITED CIN No.: U32109DL2005PTC135897 · LOTTE ELECTRONICS LIMITED CIN No.: U74120DL2008PLC175729
Holding Company :	Kohin Electronics Company Limited, Hong Kong
Associates :	3S Electronics Company Limited

CAPITAL STRUCTURE

As on: 06.09.2011

Authorised Capital : Rs.90.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.43.132 Millions

As on: 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4313160	Equity Shares	Rs.10/- each	Rs.43.132 millions

Note:

4313160 Equity Shares (Previous year 2156580) of Rs.10 each fully paid up (Out of above snares 10.78 29C Equity shares allotted as fully paid up bonus shares by way of capitalisation of General Reserve on 24/1 2005 and 2156580 Equity Shares allotted as fully paid up bonus shares by way of capitalisation of General Reserve on 25.01.2010) Kohin Electronics Company Limited Hong Kong the holding company holds 38,49.76C Equity shares of the above)

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		43.132	21.566	21.566
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		521.139	404.316	347.868
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		564.271	425.882	369.434
LOAN FUNDS
1] Secured Loans		291.958	190.573	228.597
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		291.958	190.573	228.597
DEFERRED TAX LIABILITIES		37.235	35.062	25.798
TOTAL		893.464	651.517	623.829
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		410.215	392.610	313.775
Capital work-in-progress		0.000	3.260	0.000
INVESTMENT		34.894	34.894	14.894
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	554.079	747.202	263.299
	Sundry Debtors	939.666	1030.122	709.040
	Cash & Bank Balances	15.522	9.881	13.436
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	470.893	333.468	120.626
Total Current Assets		1980.160	2120.673	1106.401
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1510.652	1880.508	798.758
	Other Current Liabilities	11.214	13.123	9.908
	Provisions	9.939	6.289	2.575
Total Current Liabilities		1531.805	1899.920	811.241
Net Current Assets		448.355	220.753	295.160
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		893.464	651.517	623.829

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income / Turnover	3990.904	4739.116	3669.400
		Other Income	202.224	8.017	NA
		TOTAL (A)	4193.128	4747.133	NA
Less	EXPENSES
		Raw material consumed	3505.211	4112.529
		Manufacturing, distribution and administrative expenses	357.335	652.611
		Increase/ decrease in stock of finished goods and work in progress	39.965	(160.414)
		TOTAL (B)	3902.511	4604.999	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		290.617	142.134	199.860
Less	FINANCIAL EXPENSES (D)		33.548	26.862	18.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		257.069	115.272	177.260
Less/ Add	DEPRECIATION/ AMORTISATION (F)		38.460	34.668	27.540
	PROFIT BEFORE TAX (E-F) (G)		218.609	80.604	149.720
Less	TAX (H)		75.173	21.633	58.060
	PROFIT AFTER TAX (G-H) (I)		143.436	58.971	91.660
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		396.599	342.150	255.520
Less	APPROPRIATIONS
		Transfer to General Reserve	14.000	2.000	2.500
		Proposed Dividend	4.313	2.156	0.000
		Tax on Dividend	0.733	0.366	0.000
		Interim Dividend	0.000	0.000	2.160
		Tax on Interim Dividend	0.000	0.000	0.360
	BALANCE CARRIED TO THE B/S		520.988	396.599	342.150
	IMPORTS
		Raw Materials	935.243	2435.962	1090.669
		Plant and Machinery	20.207	77.451	20.287
		Trade Goods	0.000	0.000	1.107
	TOTAL IMPORTS		955.450	2513.413	1112.063
	Earnings Per Share (Rs.)		33.26	27.34	42.50

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.42	1.24	NA
Net Profit Margin (PBT/Sales)	(%)	5.48	1.70	NA
Return on Total Assets (PBT/Total Assets}	(%)	9.15	3.21	10.54
Return on Investment (ROI) (PBT/Networth)		0.39	0.19	0.41
Debt Equity Ratio (Total Liability/Networth)		3.23	4.91	2.81
Current Ratio (Current Asset/Current Liability)		1.29	1.12	1.36

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	-
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	No
Major Shareholders, if applicable	Yes

Note:

The registered office of the company has been shifted from S-246, Panchsheel Park, 2^nd Floor, New Delhi – 110 017 to the present address w.e.f. 04.02.2002.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U74899DL2000PLC108800
Name of the company	KORTEK ELECTRONICS INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	1/ 24, Asaf Ali Road, New Delhi – 110002, India E-mail: kortekindia@rediffmail.com
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge · Fixed assets and Currents assets (present and future)
Particular of charge holder	Axis Bank Limited, G-04, G-05, G-06, G-07, G-17, G-18,F-03, F-04d-1, Alpha Commercial Belt- I, Greater Noida - 201308, Uttar Pradesh, India E-mail: Munish.Sachdeva@axisbank.com
Nature of instrument creating charge	Deed of hypothecation dated 14.05.2011
Date of instrument Creating the charge	14.05.2011
Amount secured by the charge	Rs.260.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC/term loan-base rate +3.00% p.a. (base rate at present 9.50 %, decided by bank from time to time) payable monthly Terms of Repayment CC- On demand Term loan- 5 Years + moratorium of 12 months Margin For term loan nil For cash credit the DP will be calculated by applying the margins mentioned below Raw materials 25% Finished goods 25% Stores and spares 25% Book debts (cover period -90days) 25% LC/SBLC/LOU from buyers credit-15% Bg-10 % (100 % in case of disputed liabilities) Extent and Operation of the charge The charge shall operate for credit limit of Rs.260.000 Millions sanctioned to the company (on pari passu basis) together with interest commission, legal & other costs, charges payments etc. incidental to the following security charged.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First pari passu charge by way of hypothecation of movable fixed assets and equitable mortgage on land and building of the company, both present and future along with SCB and Citi Bank. First pari passu by way of hypothecation of current assets of the company, present and future, along with SCB and Citi Bank. Personal guarantee of Mr. Y M Yoon

FIXED ASSETS:

· Leasehold Land

· Freehold Land

· Building

· Air Conditioners/ Fans

· Computers

· Generators

· Electrical Installation

· Furniture and Fixture

· Office Equipments

· Plant and Machinery

· Temporary Shed

· UPS

· Motor Vehicles

· Fire Fighting Equipments

· Tools and Dies

· Software

· Music Compositions

AS PER WEBSITE DETAILS:

OVERVIEW

Headquartered in Greater Noida, Subject, an ISO 9001:2008 certified company, is a leading electronics manufacturing services (EMS) and OEM provider in the country combining key innovations with unparalleled experience and comprehensive capabilities resulting in delivering high quality cost effective solutions for the consumer electronics market. Since its establishment in December 2000, Subject has provided its customers a wide range of products followed with outstanding customer centricity and service by taking ownership and delivering on commitments. Currently, they manufacture DVD Players, Digital Set Top Boxes, Karaoke entertainment systems, Remote control of AC and CTV, there truly world class and state of the art manufacturing facilities and distribution network enables them to deliver uncompromised quality and reliability of there products on time to all there clients. At Subject, they have always focused on striving for excellence with an operating discipline, benchmarked with the best in the world.

Today, within a short span of eight years, they have registered phenomenal growth, almost tripling there turnover within the previous three years and have shown exponential and consistent growth patterns for the future. Such huge success has been achieved by the constant efforts of there employees and management through rendering quality services that exceed the global standards in terms of efficiency, accuracy and cost effectiveness. Subject has a strong brand equity reflective of credibility, ethical values and consistent high quality product image. They have established a national footprint with there manufacturing facilities spread all across the country, starting out with a team of around 200 employees at the time of inception and today they have around 800 people from different professional and academic backgrounds working on growing the company at a scorching pace. In an increasingly global business environment, there company's main focus is to strengthen its core electronics intensive business while ramping up "Value Added" and "High Technology based" products and services in areas of its operations.

There USPs are the following:

The largest original electronics manufacturers of DVD players and Digital Set Top Boxes, supplying to brands like LG, Videocon, Croma, Sansui, TATA Sky and Hathway respectively.

Established as one of the leading EMS company in India with rapid expansion in capacity, speed to meet the customer demand and increasing operational efficiency.

The first company to launch its own line of karaoke entertainment systems, as well as launched the first ever karaoke club in India named “The Big Show".

They firmly believe that Innovation is the key to the future and it endeavors them to continuously upgrade there existing technologies, embrace new technologies, motivate there personnel and uplift the living standards of those around them.

HISTORY AND MILESTONES

2000 Established Kortek Electronics (India) Limited

2001 An ISO 9001:2000 standards certified company with a work force of more than 800 people, Commenced production of remote controls for CTV and AC, Auto Inserted Monitors and CTV PCB assembly for LG Electronics and Videocon.

2002 Commenced production line of Manual Inserted CTV PCB Assembly for LG Electronics.

2004 Established our own sales and marketing company, KY Magic Entertainment Private Limited. Production of DVD players commenced for LG Electronics, Launched our Own Line of Video Karaoke products as well as supplied to Kum Young.

2005 Karaoke Microphones were put into production for our own line and for Enter Tech Limited

2006 There technological capabilities allowed us to venture into the field of Set Top Box production, production commenced for supplies to Humax.

2007 Launched India's First ever karaoke Club named "The Big Show" in Greater Noida, Uttar Pradesh

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.54.81
UK Pound	1	Rs.86.04
Euro	1	Rs.69.06

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		37

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.