MIRA INFORM REPORT

Report Date :

10.03.2012

IDENTIFICATION DETAILS

Name :	KRITI INDUSTRIES (INDIA) LIMITED
Registered Office :	Mehta Chambers, 34-Siyagunj, Indore-452007, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.03.1990
Com. Reg. No.:	10-005732
Capital Investment / Paid-up Capital :	Rs. 49.604 Millions
CIN No.: [Company Identification No.]	L25206MP1990PLC005732
TAN No.: [Tax Deduction & Collection Account No.]	BPLK00508E BPLK02602F BPLK02569A
PAN No.: [Permanent Account No.]	AAACK7078B
Legal Form :	Public Limited Liability Company. The Companies shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Rigid PVC Pipes and Soybean/Rapeseed Oil, De Oiled Cake by Solvent Extraction Process.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 1400000
Status :	Satisfactory
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some dip in the turnover of the company. However, networth appears to be good. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

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 :	Mehta Chambers, 34-Siyagunj, Indore-452007, Madhya Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@kritiindia.com
Website :	www.kritiindia.com
Corporate Office :	Chetak Chambers, 14 R N T Marg, 4^th Floor, Indore-452 001, Madhya Pradesh, India
Tel. No.:	91-731-2704716 / 2719100 / 2719195
Fax No.:	91-731-2704506 / 4042118 / 2704701
Factory 1 :	Plot No. 75-86 and 13/1, Tarpura, 75-86 Pithampur, District Dhar, Madhya Pradesh, India

DIRECTORS

AS ON 31.03.2011

Name :	Mrs. Purnima Mehta
Designation :	Director
Date of Birth/Age :	25-05-1960
Qualification :	B.A.(Hons), M.B.A, PGDBM
Date of Appointment :	01.10.1999
Other Directorship:	· Kriti Nutrients Limited · Kasta Pipes Private Limited · Shipra Pipes Private Limited · Chetak Builders Private Limited · Kriti Auto Accessories Private Limited · Sakam Trading Private Limited
Name :	Mr. Sajjan Singh Mehta
Designation :	Director
Date of Birth/Age :	26.07.1927
Qualification :	B. Sc
Date of Appointment :	16.03.1990
Other Directorship:	· Sakam Trading Private Limited · Chetak Builders Private Limited · Kriti Specialities Private Limited
Name :	Mr. S.S. Kothari
Designation :	Director
Date of Birth/Age :	15.06.1930
Qualification :	Ph. D (Econ.), FCA
Date of Appointment :	24.04.1992
Other Directorship:	· Jay Shree Tea and Industries Limited · Maharaja Shree Umaid Mills Limited · Kothari Management and Industrial Consultants Private Limited
Name :	Mr. V. M. Bhole
Designation :	Nominee Director- IDBI
Name :	Mr. Shiv Singh Mehta
Designation :	Promoter and Executive Director
Name :	Mr. Manoj Fadnis
Designation :	Independent and Non-Executive Director
Name :	Mr. Rakesh Kalra
Designation :	Independent and Non-Executive Director
Name :	Mr. Somnath Ghosh
Designation :	Independent and Non-Executive Director

KEY EXECUTIVES

Name :	Mr. Ashish Karodia
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2011

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,304,847	4.65
Bodies Corporate	30,312,931	61.11
Sub Total	32,617,778	65.76
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	32,617,778	65.76
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1,600	-
Sub Total	1,600	-
(2) Non-Institutions
Bodies Corporate	1,011,641	2.04
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	8,892,240	17.93
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6,968,662	14.05
Any Others (Specify)	111,599	0.22
NRIs/OCBs	107,453	0.22
Clearing Members	4,146	0.01
Sub Total	16,984,142	34.24
Total Public shareholding (B)	16,985,742	34.24
Total (A)+(B)	49,603,520	100
(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)	49,603,520	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Rigid PVC Pipes and Soybean/Rapeseed Oil, De Oiled Cake by Solvent Extraction Process.

Products :

ITC CODE	PRODUCTS
3917	PVC Pipes and Fittings

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
PVC/HDPE PIPES/DUCT	MT	63600	33404 **
PVC FITTINGS	MT	1800	1623

** Including job work receipt 60 M.T. (Previous Year 26 M.T.)

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
LONG TERM LOAN FROM BANKS (Secured by First Charge/Mortgage on Fixed Assets of the Company and Personal Guarantee of Directors)	136.364	138.575
WORKING CAPITAL LOAN FROM BANKS (Secured by Hypothecation of Finished Goods, Raw Material, Stock in process, Store and Spares, Sundry Debtors, Export Bills, Receivables and Second Charge on Fixed Assets of the Company and Personal Guarantee of Director and his relative	180.148	169.940
Total	316.512	308.515
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Inter Corporate Deposits	5.000	36.680
Total	5.000	36.680

Banking Relations :	--
Auditors :
Name :	Subhash Deshpande and Company Chartered Accountant
Subsidiaries :	· Kriti Auto and Engineering Plastic Private Limited (Wholly owned Subsidiary Company)
Companies/entities under the control of Key Management personnel :	· Chetak Builders Private Limited · Kriti Corporate Services Private Limited · Shipra pipes Private Limited · Sakam Trading Private Limited · Kriti Nutrients Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.1/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49603520	Equity Shares	Rs.1/- each	Rs. 49.604 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		49.604	49.604	62.004
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		312.345	271.395	247.279
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		361.949	320.999	309.283
LOAN FUNDS
1] Secured Loans		316.512	308.515	588.238
2] Unsecured Loans		5.000	36.680	0.000
TOTAL BORROWING		321.512	345.195	588.238
DEFERRED TAX LIABILITIES		47.197	45.442	78.315
TOTAL		730.658	711.636	975.836
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		334.888	281.660	568.583
Capital work-in-progress		8.624	1.236	54.053
INVESTMENT		77.715	77.905	0.943
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	739.954	630.284	538.519
	Sundry Debtors	220.203	142.454	211.001
	Cash & Bank Balances	52.810	88.973	63.219
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	170.435	149.439	201.729
Total Current Assets		1183.402	1011.150	1014.468
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	778.078	560.710	601.830
	Other Current Liabilities	64.446	69.900	60.381
	Provisions	31.447	29.705	0.000
Total Current Liabilities		873.971	660.315	662.211
Net Current Assets		309.431	350.835	352.257
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		730.658	711.636	975.836

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2528.261	3985.233	5447.455
		Miscellaneous Income	20.416	13.942	6.609
		TOTAL (A)	2548.677	3999.175	5454.064
Less	EXPENSES
		Cost of Material	2008.890	3292.607	4399.663
		Manufacturing Expenses	140.187	199.138	235.618
		Employees Remuneration and Benefits	91.393	102.211	104.605
		Administrative Expenses	98.236	172.113	311.077
		Increase / (Decrease) in Stock	15.034	(70.300)	194.845
		TOTAL (B)	2353.740	3695.769	5245.808
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		194.937	303.406	208.256
Less	FINANCIAL EXPENSES (D)		93.070	136.148	187.640
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		101.867	167.258	20.616
Less/ Add	DEPRECIATION/ AMORTISATION (F)		27.714	44.083	45.231
	PROFIT BEFORE TAX (E-F) (G)		74.153	123.175	(24.615)
Less	TAX (H)		24.555	32.082	1.477
	PROFIT AFTER TAX (G-H) (I)		49.598	91.093	(26.092)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		69.509	68.892	72.522
	Prior year income expenses		0.000	0.000	1.038
Less	APPROPRIATIONS
		Transfer to General Reserve	40.000	78.272	(20.000)
		Transfer to Contingency Reserve	2.500	3.500	(3.500)
		Proposed Dividend	7.441	7.440	0.000
		Tax on Dividend	1.207	1.264	0.000
	BALANCE CARRIED TO THE B/S		67.959	69.509	68.892
	EXPORT VALUE		0.000	556.365	1259.645
	IMPORTS
		Raw Materials	521.094	1171.204	206.763
		Capital Goods	30.900	0.000	5.449
	TOTAL IMPORTS		551.994	1171.204	212.212
	Earnings Per Share (Rs.)		1.00	1.84	(0.42)

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	888.210	381.270	1089.670
Total Expenditure	791.570	336.540	1053.420
PBIDT (Excl OI)	96.640	44.730	36.250
Other Income	2.150	2.600	2.320
Operating Profit	98.790	47.300	38.570
Interest	29.410	26.910	28.370
Exceptional Items	0.000	0.000	0.000
PBDT	69.380	20.420	10.200
Depreciation	6.950	9.730	9.420
Profit Before Tax	62.430	10.690	0.780
Tax	20.230	3.500	0.250
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	42.200	7.190	0.530
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	42.200	7.190	0.530

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.95	2.28	(0.48)
Net Profit Margin (PBT/Sales)	(%)	2.93	3.09	(0.45)
Return on Total Assets (PBT/Total Assets}	(%)	4.88	9.53	(1.55)
Return on Investment (ROI) (PBT/Networth)		0.20	0.38	(0.08)
Debt Equity Ratio (Total Liability/Networth)		3.43	3.27	4.30
Current Ratio (Current Asset/Current Liability)		1.35	1.53	1.53

LOCAL AGENCY FURTHER INFORMATION

YEAR IN RETROSPECT

The Company has achieved total Turnover of Rs. 2778.278 Millions and Profit before Tax Rs. 74.152 Millions and Profit after Tax Rs. 49.597 Millions. During the year the Company has undertaken expansion of capacity for manufacture of PVC/ HDPE pipes and fittings and Drip Irrigation.

SUBSIDARY COMPANY:

Kriti Auto and Engineering Plastics Private Limited, wholly owned subsidiary of the company, achieved gross turnover of Rs. 263.417 Millions representing a profit after tax of Rs. 6.828 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

The growth of Indian Plastic Pipe Industry is offering new opportunities in the irrigation and agriculture sector, water/sewer/gas transportation, OFC ducts in telecom sector and turnkey infrastructure projects. India represents 3% of global plastic production. The per capita consumption of plastic in India is bound to grow and slowly catch up with world average. The rapid growth in construction, telecommunication and government efforts to increase the agriculture sector gives enormous scope of growth.

BUSINESS STRATEGY

The Company is consolidating its existing markets through deep penetration in rural areas and multi product selling. The Company is also trying to become more cost effective and a very high quality producer.

It is working on widening the product range to reach out to a larger customer base in agriculture and building sector by launching Drip Irrigation Systems under Micro Irrigation Projects of various State Governments' subsidy scheme and introducing newer accessories for the piping system. There is also a greater focus on institutional sales in infrastructure, telecommunication and building construction sectors.

FINANCIAL PERFORMANCE

The financial statements are prepared in compliance with the Companies Act, 1956 and as per the generally accepted accounting principles, policies and practices prevalent in India. The Company's financial performance is discussed in details under the head "Financial Results" in Directors' Report to the Members.

CONTINGENT LIABILITIES (AS ON 31.03.2011)

Estimated amount of contracts remaining to be executed on Capital Account Rs. 29.237 Millions net of advance given (Previous Year Rs. 2.330 Millions)

Bank has given guarantee on behalf of the Company to various parties to the extent of Rs. 16.985 Millions (Previous Year Rs. 6.458 Millions.)

FIXED ASSETS

· Land

· Goodwill

· Factory Building

· Plant and Machinery

· Dies and Moulds

· Vehicles

· Furniture and Fixtures

· Computers

UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH SEPTEMBER, 2011

(Rs. In millions)

Particulars	Quarter Ended 30.09.2011 (unaudited)
(a) Net Sales/ Income from operation	885.452
(b) Other Operating Income	2.758
2. Expenditure
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P.	(5.022)
b. Consumption of Raw-Materials	677.735
c. Purchase of Traded Goods	--
d. Employees Cost	25.278
e. Depreciation	6.950
f. Other Expenditure	93.577
g. Total	798.518
3. Profit(+)/ Loss(-) from Operations before other Income Interest and Exceptional Item(1-2)	89.692
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss)	2.146
5. Profit(+)/ Loss(-) before Interest and Exceptional Item	91.838
6. Interest	29.413
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6)	62.425
8. Exceptional Items	0.000
9. Profit(+)/ Loss (-) from ordinary activities before Tax (7-8)	62.425
10. Tax Expenses	20.226
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10)	42.199
12. Extraordinary Items (Net of Tax Expense Rs.________)	0.000
13. Net Profit (+)/ Loss(-) for the period (11-12)	42.199
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share)	49.604
15. Reserves excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year	--
16. Earning per Share (EPS)
a) Basic and diluted EPS before extraordinary items for the period, for the year to date and for the previous year (not annualised)	0.85
b) Basic and diluted EPS after extraordinary items for the period,for the year to date and for the previous year (not annualised)	0.85
17. Public Shareholding
Number of Shares	16985742
% of Share holding	34.24%
18. Promoters and promoter group Shareholding
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
- Number of shares	32617778
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00%
- Percentage of shares (as a % of the total share capital of the company)	65.76%

Notes:

1. The above results are subjected to a “Limited Review”, by the auditors of the company.

2. The above financial results have been reviewed by the audit committee and approved Directors and taken on record by the Board of at its meetings held on 25.07.2011.

3. The previous period / year figures are regrouped / rearranged wherever necessary.

4. The company has only one Business segment to be reported namely elastics, as per Accounting standard -17.

5. The status of the investors' Complaints as on 30.06.2011 is a under:-

(a) complaints Received - 13 (b) Disposed Off - 13 ( c ) pending- Nil

WEBSITE DETAILS

GROUP PROFILE

Kriti is that supreme desire which flames out of the divine convergence of the creation, creator and the universe. Kriti is not for self indulgence of the creator but is his total surrender towards the cause"

Kriti Group. is a reputed manufacturer of plastic polymer Piping Systems, Blow moulded plastic products and premium quality refined Soyabean products with a loyal customer base both in India and internationally. The greater part of the products’ manufacturing is based in Central India with a branch in the Western region. The group sells branded products for domestic consumption as well as exports.

 Kriti has cherished the trust of its customers by walking that extra mile to integrate modern technology in its production facilities and processes to deliver a high quality product each time. The company conducts its business ethically, honours commitments and is continually adopting new environment friendly initiatives.

Kriti has cherished the trust of its customers by walking that extra mile to integrate modern technology in its production facilities and processes to deliver a high quality product each time. The company conducts its business ethically, honours commitments and is continually adopting new environment friendly initiatives.

The group has three main businesses:

Kriti Industries (India) Limited: The manufacturing unit houses comprehensive extrusion and moulding facilities. The products are sold under the brand names of Kasta which has sub brands like Khushali, Koresil, Krystal and are used for agriculture, micro irrigation, construction, infrastructure and telecommunication purposes.

Kriti Nutrients Limited:  The unit has a state of the art manufacturing setup which includes solvent extraction plants, vegetable oil refinery, lecithin plant, effluent treatment plant, fluidized bed boilers and an in-house tin and jar manufacturing facility. It uses best quality, Non GMO soyabean seeds with a high nutrient content to manufacture a premium quality product range. The range includes refined soyabean oil, Superhypro meal, Defatted soya flakes and lecithin used for human consumption, cattle feed, poultry, aquaculture, confectionary, dairy product, industrial applications and pharmaceutical preparations.

Kriti Auto Engineering and Plastics Private Limited.: It is an auto component manufacturing division, which produces moulded plastic components for automobiles. The customer list includes the leading automobile manufacturers of India.

The company has a group of professional and dynamic people who work collectively to compete effectively by accessing their own skills and harnessing those of others.

Kriti Group today, is one of the most trusted and respected enterprises with its brands commanding equity and ranking high on consumer preferences. It has its vision set high and is assiduously endeavouring towards achieving the same.

MILESTONES

That single step was the setting up of a single screw extruder imported from Battenfield Germany, for manufacturing Rigid PVC Pipes in a small shed, 32 Kms from Indore in Madhya Pradesh with a capital of Rs 0.2 million taken from MPFC in the year 1983.

The brand ‘Kasta’ was a success and led to expanded capacities and a dealership network of over 100 dealers. Strategically leveraging its’ relationship with the farmers, in 1992, a 200 tonnes per day Solvent Extraction Plant was established where the company became buyer of seeds from the farmers who were purchasing company’s rigid PVC Pipes. The same year the company went public with an initial issue of Rs 48.3 million at a premium double its share value.

In 1995 a new range of injection moulding products was added to the basket. The range of offering of the RPVC pipes increased steadily from diameter of 63mm to 316mm.

The company added a 50 tonne edible oil refinery in the year 1998, whose capacity was increased to 70 tonnes within 2 years. This earmarked the successful launch of the brand ‘Kriti Refined Edible Soya Oil’ and further expansion of the capacity to 120 tonnes.

With the advent of the telecom revolution a new range of institutional customers were added for the supply of co-extruded internally lubricated HDPE telecom ducts for laying Optical Fiber cables. The company subsequently started manufacturing large diameter HDPE pipes of 450mm. diameter for potable water supplies and sewage disposal.

In 2001, the company received the ISO 9000 certification, was processing 15000 tonne of plastics annually and added a 2 tonne per day Lecithin plant in the soya division.  The company was constantly expanding its plastics’ range and not only catered to customers in Madhya Pradesh, Rajasthan, Gujarat, Maharashtra but also many leading institutional customers and government departments.

The year, 2004 was a landmark year when the company moved out of Madhya Pradesh to Ranjangaon, Pune and put up new state of art facilities for moulding for white goods & the automobile industry.

In the subsequent year the company received a certificate for second highest sales of soya oil in India and also the ISO 22000 certification and many more opportunities.

In 2007 Kriti became the pioneer in manufacturing and exporting Super HyPro Soyabean meal, Value added soya flakes and specialty lecithin.

In 2010 Kriti demerged its businesses into Kriti Industries (India) Limited and Kriti Nutrients Limited. This was done to give specific focus to each business with its unique requirements.

Today the company has its presence in over 15 states in India and exports in countries of Western Europe and South East Asia. There is a constant focus on bringing in new products in the market in order to fulfill each need of the customer.

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. 50.01
UK Pound	1	Rs. 79.00
Euro	1	Rs. 66.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		41

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.