MIRA INFORM REPORT

Report Date :

05.07.2012

IDENTIFICATION DETAILS

Name :	KANPUR PLASTIPACK LIMITED
Registered Office :	D 19-20 Panki Industrial Area, Kanpur - 208022, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.07.1971
Com. Reg. No.:	20-003444
Capital Investment / Paid-up Capital :	Rs.73.063 Millions
CIN No.: [Company Identification No.]	L25209UP1971PLC002444
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of FIBC (Jumbo Bags) and Woven Sacks.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 890000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old established having satisfactory track record. Financially company have performed well in the current year. Trade relations are reported to be fair. Business is active. Payment are reported to be regular and as per commitment. The company can be considered for normal business dealing 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.

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 / Factory :	D 19-20 Panki Industrial Area, Kanpur - 208022, Uttar Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@kanplas.com
Website :	www.kanplas.com
Factory 2 :	A-1, A-2, Udyog Kunj, Site – V, Kanpur – 208022, Uttar Pradesh, India
Factory 3 :	D- 6, Panki Industrial Area, Site – II, Kanpur - 208022, Uttar Pradesh, India

DIRECTORS

As on 31.03.2011

Name :	Mr. Mahesh Swarup Agarwal
Designation :	Chairman
Name :	Mr. Manoj Agarwal
Designation :	Managing Director
Name :	Mr. Sunil Mehta
Designation :	Executive Director
Name :	Shashank Agarwal
Designation :	Executive Director
Name :	Mr. Soubhagya Mal Jain
Designation :	Independent Director
Name :	Mr. Pradeep Kumar Goenka
Designation :	Independent Director
Name :	Dr. Gyanesh Narayan Mathur
Designation :	Independent Director
Name :	Dr. Jagan Nath Gupta
Designation :	Independent Director
Name :	Mr. Prem S. Khamesra
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Ankur Srivastava
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Names of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4,589,842	57.67
Bodies Corporate	917,250	11.52
Sub Total	5,507,092	69.19
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5,507,092	69.19
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	155,220	1.95
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1,536,760	19.31
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	488,788	6.14
Any Others (Specify)	271,387	3.41
Non Resident Indians	271,387	3.41
Sub Total	2,452,155	30.81
Total Public shareholding (B)	2,452,155	30.81
Total (A)+(B)	7,959,247	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	7,959,247	-

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of FIBC (Jumbo Bags) and Woven Sacks.

Products :

Product Description	Item Code No.
Woven Fabric of Ethylene (Laminated/Coated)	39269099
Sacks and Bags of Ethylene (Laminated/Coated and/or printed)	39232100
Sacks and Bags of Polypropylene (Laminated/Coated and/or printed)	39232990
Flexible Intermediate Bulk Containers (FIBCs)	63053200
Polypropylene Multifilament Yarn	54024800

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Fabric and Sacks	MT	Not Applicable	13000*	9963.70**

Notes:

* The capacity is for producing unlamented fabric

** Includes LDPE and others for finished goods

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
1) Working Capital Loans from State Bank of India
a) Cash Credit (Hypothecation) and cash Credit (Book Debts) including Foreign currency Demand Loan Rs.18.326 Millions (Previous year Rs.19.126 Millions)	143.098	137.606
b) Export Bills Purchase	88.836	56.118
c) Cash Credit Limited under E-DFS Scheme	12.300	0.000
2) Buyers Credit from Bank (In Foreign Currency)	43.456	0.000
3) Term Loan from State Bank of India including foreign currency term loan Rs.36.894 Millions (previous year Rs.42.334 Millions)	208.890	131.087
4) Vehicle Finance under Hire Purchase (Secured by Hypothecation of Vehicle)	2.228	0.000
Total	498.808	324.811
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
a) Deposits (Including Interest accrued thereon)	18.550	24.138
b) Others (Intercorporate Deposits)	7.500	2.500
Total	26.050	26.638

Banking Relations :	--
Auditors :
Name :	Pandey and Company Chartered Accountants
Address :	Kanpur, Uttar Pradesh, India
Corporate Law Auditors :	Adesh Tandon and Associates Chartered Accountants
Address :	Kanpur, Uttar Pradesh, India
Associates :	· KSM Exports Limited · MSA Investment and Trading Company Private Limited · KPL Packaging Private Limited

CAPITAL STRUCTURE

After 27.09.2011

Authorised Capital: Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital: Rs.99.592 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions
2000000	Preference Shares	Rs.10/- each	Rs.20.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5306250	Equity Shares	Rs.10/- each	Rs.53.063 Millions
2000000	12% Redeemable Cumulative Preference Shares	Rs.10/- each	Rs.20.000 Millions
	Total		Rs.73.063 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		73.063	53.063	53.063
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		150.322	127.084	106.163
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		223.385	180.147	159.226
LOAN FUNDS
1] Secured Loans		498.808	324.811	291.256
2] Unsecured Loans		26.050	26.638	21.523
TOTAL BORROWING		524.858	351.449	312.779
DEFERRED TAX LIABILITIES		28.785	20.336	17.230
TOTAL		770.028	551.932	489.235
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		396.145	274.169	258.833
Capital work-in-progress		6.626	4.323	0.000
INVESTMENT		0.075	2.862	2.862
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	257.566	178.123	127.007
	Sundry Debtors	171.912	126.862	139.133
	Cash & Bank Balances	14.754	7.583	8.209
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	48.129	66.043	50.873
Total Current Assets		492.361	378.611	325.222
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	66.514	39.413	44.967
	Other Current Liabilities	15.823	12.016	11.845
	Provisions	37.287	58.194	42.604
Total Current Liabilities		119.624	109.623	99.416
Net Current Assets		372.737	268.988	225.806
MISCELLANEOUS EXPENSES		1.445	1.590	1.734
TOTAL		770.028	551.932	489.235

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1175.842	996.039	978.165
		Other Income	7.674	6.039	6.130
		TOTAL (A)	1183.516	1002.078	984.295
Less	EXPENSES
		(Increase) / Decrease in stock	(39.102)	(45.015)	0.000
		Material Consumed	773.917	681.851	664.623
		Trade Tax	8.072	9.858	8.965
		Manufacturing Expenses	166.995	142.774	114.872
		Personal Expenses	57.378	44.975	39.406
		Administrative Expenses	38.765	33.379	32.886
		Selling Expenses	72.978	51.703	55.213
		TOTAL (B)	1079.003	919.525	915.965
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		104.513	82.553	68.330
Less	FINANCIAL EXPENSES (D)		35.786	27.363	23.572
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		68.727	55.190	44.758
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.069	15.481	16.281
Less	ADJUSTMENT RELATING TO EARLIER YEAR		0.000	0.000	0.015
	PROFIT BEFORE TAX (E-F) (G)		50.658	39.709	28.462
Less	TAX (I)		20.402	14.308	9.841
	PROFIT AFTER TAX (G-I) (J)		30.256	25.401	18.621
Add	ADJUSTMENT RELATING TO EARLIER YEAR INCOME/(EXPENSES)		0.079	0.002	0.000
Add	EXCESS DEPRECATION WRITTEN BACK		0.000	1.704	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		95.119	74.199	59.303
Less	APPROPRIATIONS
		Dividend on Preference Shares	0.800	0.000	0.000
		Dividend on Equity Shares	5.306	5.306	3.184
		Tax on Dividend	0.990	0.881	0.541
	BALANCE CARRIED TO THE B/S		118.358	95.119	74.199
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	873.745	621.267	685.778
	TOTAL EARNINGS		873.745	621.267	685.778
	IMPORTS
		Raw Materials	359.214	283.215	113.493
		Stores & Spares	1.804	0.178	0.113
	TOTAL IMPORTS		361.018	283.393	113.606
	Earnings Per Share (Rs.)		5.70	4.79	3.51

QUARTERLY

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	380.830	481.060	513.720	510.070
Total Expenditure	342.450	428.090	461.340	444.410
PBIDT (Excl OI)	38.380	52.970	52.380	65.660
Other Income	0.000	0.000	20.000	0.000
Operating Profit	38.380	52.970	72.380	65.660
Interest	12.730	11.820	13.670	12.900
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	25.650	41.150	58.710	52.760
Depreciation	5.830	5.950	6.600	6.220
Profit Before Tax	19.810	35.200	52.110	46.540
Tax	0.000	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	19.810	35.200	52.110	46.540
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	19.810	35.200	52.110	46.540

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.56	2.53	1.89
Net Profit Margin (PBT/Sales)	(%)	4.31	3.99	2.90
Return on Total Assets (PBT/Total Assets}	(%)	5.70	6.08	4.87
Return on Investment (ROI) (PBT/Networth)		0.23	0.22	0.18
Debt Equity Ratio (Total Liability/Networth)		2.86	2.56	2.59
Current Ratio (Current Asset/Current Liability)		4.12	3.45	3.27

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	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
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	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	No

Review of Operations:

It is a matter of great satisfaction that the Company’s operations continue to grow steadily. The may note that after providing for taxation the Net Profit stands at Rs.30.256 Millions against Rs.25.401 Millions for earlier year. During the year, the Company successfully completed expansion / technologically upgradation programme. The diversified product of Multifilament Yarn was successfully commissioned and the products have been well accepted in the market. Operations at all the three units continue satisfactorily.

During the year the share capital was raised by issue of Preference Shares worth Rs.20.000 Millions allotted to Promoters'' Group as approved in the annual general meeting of the company held on 21/09/2010.

The trading activities as Del Credere Associate Cum Consignment Stockist of Indian Oil Corporation Limited (IOCL) continue to grow.

Milestones

1971 – Incorporation of the company

1972 – Production of HDPE Woven Sacks Begins

1984 – Import of first circular looms into the country

1986 – Issue of shares to the public and listing with BSE, UPSE and CSE

1987 – Exports of PP bags to Europe begins

2000 – Production and exports of FIB’S TO Europe

2004 – Maiden declaration of dividend

2008 – Establishment of new finishing unit and substantial expansion in FIBC’S

2011 – Production of multifilament yarn begins

Management Discussion and Analysis Report:

Industry Structure and Development

The company is mainly engaged in manufacturing and export of FIBC (Jumbo Bags) and Woven Sacks. Exports contributed about 75% of the turnover of the company. The company has recently ventured into manufacturing of Multifilament Yarn (MFY). They have penetrated into new areas in South America.

Segment Wise or Product Wise Performance:

The company operates in two primary business segments viz Manufacturing of Fabrics and Woven Sacks and as Consignment Stockiest of Indian Oil Corporation Limited.

Their trading activities are gradually stabilizing. And the expect to improve in the years to come thus contributing to improve the bottom-line.

Contingent Liability:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Counter Guarantees given to Bank for issue of performance guarantees by Bank	65.848	40.148
Foreign bills discounted by the bank under letter of credit	16.357	13.325
Legal undertakings submitted to customs and DGFT under Duty exemption scheme for import of raw material against which all exports have been completed and advance license are under redemption	444.811	79.617
Labour cases pending with labour courts/high courts	0.250	0.060

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31^ST MARCH 2012

Rs in Millions

	Particulars	Quarter ended 31.03.2012 (Audited)	Quarter ended 31.12.2011 (Audited)	Year ended 31.03.2012 (Audited)
1	Income from Operations
	(a) Net Sales / income from Operations	510.074	513.720	1885.677
	(b) Other Operating Income	-	-	-
	Total Income from operations (net)	510.074	513.720	1885.677
2	Expenses
	(a) Cost of materials consumed	292.721	302.260	1147.569
	(b) Purchase of stock-in-trade	-	-	-
	(c) Change in inventory of finished goods, work
	in progress and stock-in-trade	10.966	24.633	27.107
	(d) Employee benefit expenses	23.523	20.420	81.859
	(e) Depreciation and amortisation expenses	6.215	6.598	24.587
	(f) Other Expenditure	117.197	114.031	419.761
	Total Expenses	450.622	467.942	1700.883
3	Profit/ (Loss) from Operations before other income, finance costs and
	exceptional items (1-2)	59.452	45.778	184.794
4	Other Income	-	20.000	20.000
5	Profit/ (Loss) from ordinary activities before
	finance cost and exceptional items (3+4)	59.452	65.778	204.794
6	Finance costs	12.909	13.671	51.128
7	Profit/ (Loss) from ordinary activities after
	finance cost but before exceptional items (5-6)	46.543	52.107	153.666
8	Exceptional Items	-	-	-
9	Profit/ (Loss) from Ordinary activities before
	Tax(7-8)	46.543	52.107	153.666
10	Tax Expenses	-	-	52.858
11	Net Profit (Loss) from Ordinary Activities
	after Tax (9-10)	46.543	52.107	100.808
12	Extraordinary Item (net of tax expense)	-	-	-
13	Net Profit/ (Loss) for the period (11-12)	46.543	52.107	100.808
14	Paid-up Equity Share Capital (Face Value: Rs 10/-each)	79.593	79.593	79.593
15	Reserves (excluding Revaluation Reserves as per Balance sheet of previous accounting year)	_	_	213.264
16	Earning per Share - Basic and Diluted
	(of Rs. 10/- each) (not annualised)	5.85	6.55	12.32
A	PARTICULARS OF SHAREHOLDING
19	Public Shareholding	2452283	2452283	2452283
	Number of Shares	30.81%	30.81%	30.81%
	Percentage of Shareholding
20	Promoters and Promoter group
	a) Pledged/Encumbered	--	--	--
	Number of shares	--	--	--
	Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	--	--	--
	Percentage of Shares (as a % of the total share capital of the Company)	--	--	--
	b) Non-encumbered	5506965	5506965	5506965
	Number of shares	100%	100%	100%
	Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	69.19%	69.19%	69.19%
	Percentage of Shares (as a % of the total share capital of the Company)	--	--	--

INVESTOR COMPLAINTS
Pending at the beginning of the quarter	Nil
Received during the quarter	2
Disposed of during the quarter	2
Remaining unresolved at the end of the quarter	Nil

Note:

1. The above results of the Company were reviewed by Audit Committee and approved by the Board of Directors at its respective meeting held on 30.05.2012. The Limited Review as required under Clause 41 of the Listing agreement has been carried out by the Statutory Auditors.

2. Dividend @ 10% (i.e. Rs1.00 per equity share) has been recommended by the Board of Directors for the year 2011-12 subject to approval of shareholders at Annual General Meeting.

3. Figures relating to previous year/period have been regrouped/rearranged, wherever necessary.

4. The provisions for Taxation have been made at the end of the year only.

5. The figures of the quarter ended 31.03.2012 being balancing figures between audited figures in respect of full financial year and the published year todate figures upto the third quarter of the relevant financial year.

6. The Company operates in two primary business segments viz. Manufacturing of Fabrics and Woven Sacks etc. and Consignment Stockist. In terms of provisions of Accounting Standard 17, Consignment Stockist activity, presently, is not a reportable segment

STATEMENT OF ASSETS AND LIABILITIES

	PARTICULAR	31.03.2012
I	Equity and Liabilities
	1) Shareholders Funds
	a) Share Capital	99.592
	b) Reserves and Surplus	213.264
	c) Money received against share warrants	--
	Sub-total-Shareholders' funds	312.856
	2) Non – Current Liabilities
	a) Long term Borrowing	266.209
	b) Deferred tax liabilities (Net)	35.259
	c) Other Long term liabilities	-
	d) Long-term provisions	21.301
	Sub-total - Non-current liabilities	322.769
	3) Current Liabilities
	a) Short term borrowing	361.814
	b) Trade payable	50.956
	c) Other current liabilities	23.840
	d) Short term provision	60.373
	Total	496.983
	Total	1132.608
II	Assets
	1) Non – Current Assets
	a) Fixed assets	463.303
	b) Non – current Investment	8.465
	c) Deferred tax assets	--
	d) Long term loans and advance	13.658
	e) Other non-current assets	--
	Total	485.426
	2) Current Assets
	a) Current Investment	-
	b) Inventories	252.754
	c) Trade receivables	292.660
	d) Cash and cash equivalents	20.580
	e) Short term loans and advance	79.887
	f) Other current assets	1.301
	Total	647.182
	Total	1132.608

Fixed Assets:

· Land

· Building

· Plant and Machinery

· Electric Installation

· Furniture and Fixtures

· Office Equipments

· Vehicles

NEWS

KANPUR PLASTIPACK LIMITED ANNOUNCES BUMPER RESULTS

30^th May 2012, Kanpur Plastipack Limited a leading manufacturer and Exporter of Industrial Packaging products has in its board meeting held on 30^th May reported a big jump in its sales, Profits before Tax and Earning per Share for the period ended 31^st March 2012. The highlights as compared to same period last year are:-

Q4 Performance

• Turnover increased by 45% to Rs. 510.100 Millions as against Rs 350.800 Millions
• PBT increased by 360% to Rs 46.500 Millions as against Rs. 10.100 Millions
• EPS increased by 208% to Rs 5.85 per share as against Rs 1.90 per share (not annualized)

Yearly Performance

• Turnover increased by 55% to Rs. 1885.700 Millions as against Rs 1213.100 Millions
• PBT increased by 203% to Rs 153.700 Millions as against Rs 50.700 Millions
• EPS increased by 116% to Rs 12.32 per share as against Rs 5.70 per share

Announcing the audited quarterly and annual results for the period ending 31st March 2012, Mr. Manoj Agarwal, Managing Director of the Company expressed satisfaction on the healthy performance of the company over the last financial year.

Citing the reasons behind the results he added that the full benefits of capacity additions in the previous year, improved productivity and operational efficiency and favorable demand conditions in Exports enabled this extraordinary performance. Operations continue to remain stable and Mr Agarwal was confident of the company’s continued growth during the next financial year. The company is planning is major investments and expansions in value added products shortly.

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 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.54.55
UK Pound	1	Rs.85.47
Euro	1	Rs.68.70

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.