MIRA INFORM REPORT

Report Date :

20.07.2012

IDENTIFICATION DETAILS

Name :	SHREE PUSHKAR CHEMICALS AND FERTILISERS LIMITED (w.e.f. 05.03.2012)
Formerly Known As :	SHREE PUSHKAR PETRO PRODUCTS LIMITED
Registered Office :	202, ‘A’ Wing, Building No.3, Rahul Mittal Industrial Estate, Sir M. V. Road, Andheri (East), Mumbai-400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.03.1993
Com. Reg. No.:	11-071376
Capital Investment / Paid-up Capital :	Rs. 202.369 Millions
CIN No.: [Company Identification No.]	U24100MH1993PLC071376
TAN No.: [Tax Deduction & Collection Account No.]	MUMS47888B
PAN No.: [Permanent Account No.]	AAACS9372E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Cattail Seeds Supplementary
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (38)

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

Maximum Credit Limit :	USD 1600000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track records. Profitability of the company appears to be low. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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. Sen Gupta
Designation :	Finance Head
Contact No.:	91-22-42702525
Date :	19.07.2012

EXTERNAL AGENCY RATING

Agency Name	Rating
ICRA	A3

Rating Explanations

AAA (Highest Safety)	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
AA (High Safety)	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
A (Adequate Safety)	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
BBB (Moderate Safety)	Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
BB (Moderate Risk)	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
B (High Risk)	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
C (Very High Risk)	Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
D (Default)	Instruments with this rating are in default or are expected to be in default soon.

LOCATIONS

Registered Office :	202, ‘A’ Wing, Building No.3, Rahul Mittal Industrial Estate, Sir M. V. Road, Andheri (East), Mumbai-400059, Maharashtra, India
Tel. No.:	91-22-28502525
Fax No.:	91-22-28504242
E-Mail :	sarfare@shreepushkar.com info@shreepushkar.com g_makharia@hotmail.com
Website :	www.shreepushkar.com
Area :	3000 Sq. Mtr.
Location :	Leased
Factory 1 :	B 102-103, MIDC Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, India
Tel. No.:	91-2356-272625 / 272718
Fax No.:	91-2356-272625
Factory 2 :	D-25, MIDC Lote Parshuram, Taluka Khed, District Ratnagiri, Maharashtra, India
Tel. No.:	91-2356-272255
Fax No.:	91-2356-273255

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Punit Gopi Makharia
Designation :	Director
Address :	C- 603, Lakschandi Heights, Krishna Vatika Road, Gokuldham, Goregaon (East), Mumbai 400 063, Maharashtra, India
Date of Birth/Age :	28.04.1970
Date of Appointment :	29.03.1993
DIN No :	01430764
Name :	Mr. Gautam Gopi Makharia
Designation :	Director
Address :	C- 603, Lakschandi Heights, Krishna Vatika Road, Gokuldham, Goregaon (East), Mumbai 400 063, Maharashtra, India
Date of Birth/Age :	06.09.1973
Date of Appointment :	29.03.1993
DIN No :	01354843
Name :	Mr. Ramakant Madhav Nayak
Designation :	Director
Address :	A-11, Anand Dham, Road No.9, Prabhat Colony, Near Hotel, Santacruz (East), Mumbai-400055, Maharashtra, India
Date of Birth/Age :	30.06.1945
Date of Appointment :	04.12.2010
DIN No :	00129854
Name :	Mr. Akshay Dua
Designation :	Nominee Director
Address :	H No.V-11/57, DLF Phase-3, Block-V, Vill Nathupur, Gurgaon-122002, Haryana, India
Date of Birth/Age :	23.03.1980
Date of Appointment :	23.06.2011
DIN No :	03144843
Name :	Mr. Nirmal Kedia
Designation :	Director
Address :	252, Krishna Bhavan, Ground Floor, Walkehswar Road, Walkeshwar, Mumbai 400 006 , Maharashtra, India
Date of Birth/Age :	01.02.1970
Date of Appointment :	08.09.2010
DIN No :	00050769

KEY EXECUTIVES

Name :	Mr. Sen Gupta
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Aradhana Makharia	353446
Gautam Makharia	4328301
Bhanu Makharia	432307
Gopi Kishan Makharia	356831
Manisha J. Sarfare	9415
Punit Makharia	9194593
Ranjana Makharia	375692
Sudhir Kangutkar	9415
India Enterprise Development Fund, India	5647589
TOTAL	20707589

AS ON 23.06.2011

Names of Shareholders	No. of Shares
India Enterprise Development Fund, India	470632
TOTAL	470632

AS ON 30.09.2011

Equity Shares Break Up	Percentage of Holding
Venture Capital	27.27
Bodies corporate	72.64
Directors or relatives of Directors	0.09
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Cattail Seeds Supplementary

Products :

ITC CODE	PRODUCT
29214524	K. Acid
29222140	Gamma Acid
29222932	Vinly Sulphonester

Exports :

Products :

· Cattail Seeds Supplementary

Countries :

· Thailand

· Switzerland

· Germany

· Pakistan

· Korea

Imports :

Products :

Raw Material

Countries :

· China

· Egypt

· Iran

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	2011
Installed Capacity	Metric Tone	108740.00
Actual Production	Metric Tone	32449.96

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

No. of Employees :

250 (Approximately)

Bankers :

· State Bank of India, industrial Finance Branch, Snehal chambers, Telli Gali, Andheri (East), Mumbai-400069, Maharashtra, India

· HDFC Bank

· Yes Bank

· Exim Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans secured
Rupee term loans banks secured	153.068	131.759
Working capital loans secured
Working capital loans banks secured	262.420	193.539
Loans taken for fixed assets secured
Loans taken for vehicles secured	0.438	0.795
Loans taken for other fixed assets secured	3.767	1.334
Total	419.693	327.427
NOTES: (A) 1. Working capital limits from banks are secured in pari passu by hypothecation of present and future stock of raw material, stock in process, and finished goods, and book debts of the company, and further secured by first charge on all the fixed assets (including WIP) and mortgage of flat at Goregaon, plot at Nashik on parri passu basis. 2. Term Loan from State Bank of India are secured by mortgage of Flat at Goregaon and plot at Nashik on parri passu basis. 3. Above loans are further guaranteed by two directors of the Company. 4. Vehicle and Equipments are secured against hypothecation of specific vehicles and equipments.
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loans directors unsecured	0.696	1.391
Total	0.696	1.391
State Bank of India – Total Facility Limit Rs. 440.000 Millions Yes Bank - Total Facility Limit Rs. 70 Millions Exim Bank Limited - Total Facility Limit Rs. 150.000 Millions

Banking Relations :	--
Auditors :
Name :	Parihar and Associates Chartered Accountant
Address :	G-1, Ground Floor, Sushila Palace, Opposite Swagat Hall, Carter Road No.5, Borivali (East), Mumbai-400066, Maharashtra, India
PAN No.:	AAEPP6061C
Associates :	· Dwarka Security Private Limited · Makharia Overseas Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
21000000	Equity Shares	Rs.10/- each	Rs. 210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20236957	Equity Shares	Rs.10/- each	Rs. 202.369 Millions

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
21000000	Equity Shares	Rs.10/- each	Rs. 210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20707589	Equity Shares	Rs.10/- each	Rs. 207.076 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		202.369	192.016	75.100
2] Share Application Money		22.422	17.923	78.423
3] Reserves & Surplus		188.371	143.381	58.702
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		413.162	353.320	212.225
LOAN FUNDS
1] Secured Loans		419.693	327.427	219.753
2] Unsecured Loans		0.696	1.391	0.056
TOTAL BORROWING		420.389	328.818	219.809
DEFERRED TAX LIABILITIES		24.992	16.410	13.049
TOTAL		858.543	698.548	445.083
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		341.570	141.889	141.050
Capital work-in-progress		151.586	213.371	67.579
INVESTMENT		0.510	0.510	0.510
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	366.097	292.051	211.594
	Sundry Debtors	144.066	124.033	81.745
	Cash & Bank Balances	28.736	39.111	6.203
	Other Current Assets	27.983	22.574	17.882
	Loans & Advances	16.789	15.668	15.822
Total Current Assets		583.671	493.437	333.246
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	120.322	111.610	41.728
	Other Current Liabilities	84.276	30.475	47.482
	Provisions	17.122	10.959	9.534
Total Current Liabilities		221.720	153.044	98.744
Net Current Assets		361.951	340.393	234.502
MISCELLANEOUS EXPENSES		2.926	2.385	1.442
TOTAL		858.543	698.548	445.083

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1304.967	1015.164	666.174
		Other Income	7.925	2.878	2.602
		TOTAL (A)	1312.892	1018.042	668.776
Less	EXPENSES
		Consumption materials changes inventories	1119.177	880.860	532.656
		Manufacturing Expenses	79.517	65.622	41.966
		Administrative Expenses	8.977	9.032	8.121
		Excise Duty	0.000	0.000	30.155
		Employees Costs	3.720	3.152	0.000
		TOTAL (B)	1211.391	958.666	612.898
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		101.501	59.376	55.878
Less	FINANCIAL EXPENSES (D)		36.071	23.562	25.281
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		65.430	35.814	30.597
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.110	12.169	11.884
	PROFIT BEFORE TAX (E-F) (G)		46.320	23.645	18.713
Less	TAX (H)		18.476	7.550	3.702
	PROFIT AFTER TAX (G-H) (I)		27.844	16.095	15.011
Add / Less	ADJUSTMENT OF TAX OF EARLIER YEAR		0.000	0.000	0.919
Less	DEFERRED TAX LIABILITIES OF CURRENT YEAR		0.000	0.000	1.383
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		71.696	55.601	41.054
	BALANCE CARRIED TO THE B/S		99.540	71.696	55.601
	EXPORT VALUE		88.597	86.974	104.670
	IMPORTS VALUE		79.290	60.340	24.523
	Earnings Per Share (Rs.)		1.82	1.18	2.00

Particulars	31.03.2012
Sales Turnover (Approximately)	1600.000

Expected Sales (2012-2013) : Rs. 2000.000 Millions

The above information has been parted by Mr. Sen Gupta.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.12	1.58	2.24
Net Profit Margin (PBT/Sales)	(%)	3.55	2.33	2.81
Return on Total Assets (PBT/Total Assets}	(%)	5.01	3.72	3.95
Return on Investment (ROI) (PBT/Networth)		0.11	0.07	0.09
Debt Equity Ratio (Total Liability/Networth)		1.61	1.41	1.56
Current Ratio (Current Asset/Current Liability)		2.63	3.22	3.37

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. Constructions 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	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	Yes
13. Reasons for variation <> 20%	------
14. Estimation for coming financial year	Yes
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	No
18. Major customers	No
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	------
22. Litigations that the firm / promoter involved	------
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	Yes

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors due others	120.322	111.610	41.728
TOTAL	120.322	111.610	41.728

OPERATIONS

During the year 2010-11 the Sales turnover of the company has increased to Rs. 1355.725 Millions as against Rs. 1050.637 Millions achieved during the last year, recording a growth of 29.03% on a YoY basis. As reported earlier Sulphuric Acid plant having capacity of the 125 MT per day has been commissioned in September 2010, where as the CSA plant and the Power plant have been successfully commissioned in April 2011 and August 2011 respectively. The delays in commissioning of the latter 2 plants have been mainly due to certain technical glitches

that developed during the course of commissioning of the main Sulphuric acid plant necessitating modification and design of a key equipment leading to a lower capacity utilisation during this intervening period. However since then the plant has been running at rated capacity and without any difficulty. The overall delay in commissioning of the acid complex as compared to the original schedule has thus been to the extent of over 10 months. Their decision of establishing the fertiliser division in place of the Beta-Napthol plant, which was announced during the last AGM, has been quite encouraging and is turning to be a great business driver, as the market for the products and the margins available on the same have been constantly improving over time. As regards the progress in the implementation of the Fertiliser Division, the Soil Conditioner (SC) plant has been commissioned in March 2011 whereas the Single Super Phosphate (SSP) plant has been commissioned in September 2011. Though the clearance for the SSP plant from the ministry of fertilizer was received within a reasonable period, the implementation of the project was stalled on account of a temporary embargo imposed by the Ministry of Environment and Forest on creation of additional capacity in the

Ratnagiri Sindhudurg belt. The said clearance was received in July 2011 where after the permission from the MPCB for commissioning of the plant was received in August 2011 and commercial production has started immediately from early September 2011. They are happy to inform that both the products have received very encouraging response from the farmers their valued clients. Not only are they supplying these products to the neighbouring areas but also are making roadways into the neighbouring state of Andhra Pradesh. They will be happy to note that in view of their entry into a totally new product line, they have set up a Fertiliser Marketing Division at Pune which is close to the rich agricultural belt of Western Maharashtra. They have also appointed resident representatives at district places of Pune, Kolhapur, Sangli and Satara. This would provide them with the desired market feedback and follow-up which should be of immense help in the years to come and they believe that their emerging markets would be the key drivers for their future growth prospects. They are also in the process of establishing proper marketing channels and network in conjunction with DSCL their marketing agents.

FUTURE OUTLOOK

They may share with that their Acid complex has been commissioned and is providing great mileage in terms of lower production costs for their existing product lines. As per the encouraging signals being received from their Fertiliser division, they propose expanding their capacities of the fertiliser and sulphuric acid division in the immediate future. They would also like to share with that they have been toying with the idea of their future expansions in the Dye-intermediate division through synergistic alliances, which in their opinion would provide the desired growth strategy. They would like to assure with a sense of confidence and strong optimism that they are striving and will continue to strive for a sustained and enduring growth across their various product divisions.

FORM 8

Corporate identity number of the company	U24100MH1993PLC071376
Name of the company	SHREE PUSHKAR PETRO PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	202, ‘A’ Wing, Building No.3, Rahul Mittal Industrial Estate, Sir M. V. Road, Andheri (East), Mumbai-400059, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	State Bank of India, industrial Finance Branch, Snehal chambers, Telli Gali, Andheri (East), Mumbai-400069, Maharashtra, India
Nature of instrument creating charge	Memorandum of deposit for creation of further charge for term loan/overall limit where the initial charge is created by way of mortgage by deposit of title deeds.
Date of instrument Creating the charge	27.07.2011
Amount secured by the charge	RS. 667.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest DCC - 4.75% above BR present effective rate 14.00% p.a. with Monthly rests, as against applicable pricing of 16.00% p.a. and existing pricing of 1.00% above SBAR i.e. 15.00% p.a. Terms of repayment TL I - Original Repayment Schedule 54 Monthly installments (15 Months moratorium period from July 2007 to September 2008). Repayment of term loan started October 2008 with Moratorium of 15 Months. TL III Original Repayment Schedule is for 48 Monthly installments commencing from April 2011 (Moratorium from June 2010 to March 2011) Margin Raw Materials (Imported)- 25%, Raw Materials (Indigenous) - 25%, SIP - 25%, Finished Goods - 25%, Book Debts (Cover 90 days) - 50%, EPC - 10%, LC - 15%, BG - 15%. Buyers Credit - 15% Extent and operation of the charge Property of First Charge basis for the SBI under existing Term Loan at outstanding level to the extent of Rs. 150.700 millions and on Second pari passu Charge basis for the repayment to the SBI Consortium for the WC of Rs. 667.000 millions Other SBI - Rs. 447.000 millions, Yes Bank Limited - Rs. 70.000 millions, EXIM Bank - Rs. 150.000 millions, Total - Rs. 667.000 millions. and SBI TLs - TL I - Rs. 29.800 millions, TL II - Rs 86.500 millions, TL III - Rs. 34.400 millions, Total - Rs. 150.700 millions All other terms and conditions as per the SBI San letter No. IFB/DGM/SKR/2011-12/54 dated 14.06.2011, Yes Bank Limited San letter No YBL/MUM/BB/FL/0394/2010-11 dated 17.09.2010 and EXIM San letter No SME/PSC-105/06 dated May 03, 2011 read with letter no SME:PPSC-105:38 dated June 21, 2011 and loan agreement.
Short particulars of the property charged (Including location of the property)	Property of First Charge basis for the SBI under existing Term Loan at outstanding level to the extent of Rs. 150.700 millions and on Second pari passu Charge basis for the repayment to the SBI Consortium for the WC of Rs. 667.000 millions 1. All that piece or parcel of factory land and building adm 7072 sq. mtrs, lying being and situate at Plot No. B-103 in the Lote Parshuram Industrial Area within the village of Lote an outside limits of Khed Muncipal Council, Taluka and Registration District Ratnagiri Sub- District and bounded as follows: On or towards the North by service corridor 60 M road, or towards south by Drainage line; on or towards the east by the Plot No. C-42 and or towards the West by the Plot No. B- 102 2. All the piece or parcel of land adm 19471 sq. mtrs, being Plot No. D -25, in the Lote Pashuram Industrial Area, within the village limits of Lote Taluka and Registration District of Ratnagiri and bounded as follows on or towards the North by Plot No. D-20 and MIDC boundary, on or towards south by service corridor; on or towards the east by MIDC boundary and or towards the West by road. Together with the structures 3. All the piece or parcel of land admeasuring 9000 sq. mtrs, being Plot No.B-102, in the Lote Pashura Industrial area, within the village limits of Khed, Taluka and Registration Sub- District of Khed of Ratnagiri and bounded as follows on or towards the North by MIDC Lane, On or towards the South by Plot No B-103, On or towards the East by MIDC Road 30MR/W and On or towards the West by MIDC Boundary. Together with structures standing thereon.
Charge identification number of the charge to be modified	90366219
Date of instrument modifying the charge	11.07.2011
Particulars of the present modification	The Borrowers by way of Registered mortgage of Immovable properties of First Charge basis for the SBI under existing Term Loan at outstanding level to the extent of Rs. 150.700 millions and on Second pari passu Charge basis for the repayment to the SBI Consortium for the WC at Described Point No. 15 has provided further security to secure the SBI Consortium for the Working Capital of Rs. 667.000 millions

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· Computers and Printers

· Vehicles

· Office Equipments

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] 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. 55.38
UK Pound	1	Rs. 86.74
Euro	1	Rs. 68.06

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPT

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	4
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		38

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	-

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