MIRA INFORM REPORT

Report Date :

19.03.2012

IDENTIFICATION DETAILS

Name :	FRESHTROP FRUITS LIMITED
Registered Office :	A – 603, Shapath IV, Opposite Karnavati Club, S. G. Road, Ahmedabad 380051, Gujarat, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.09.1992
Com. Reg. No.:	04 -18365
Capital Investment / Paid-up Capital :	Rs.110.450 Millions
CIN No.: [Company Identification No.]	L15400GJ1992PLC018365
TAN No.: [Tax Deduction & Collection Account No.]	AHMF00071B
PAN No.: [Permanent Account No.]	AAACF2885P
Legal Form :	A Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Mango Pulp, Guava Pulp, Tomato Pulse and Exporter of Fresh Fruits.
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 1350000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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. Chirag
Designation :	AGM of Accounts
Contact No.:	91-79-40307055
Date :	16.03.2012

LOCATIONS

Registered Office :	A – 603, Shapath IV, Opposite Karnavati Club, S. G. Road, Ahmedabad 380051, Gujarat, India
Tel. No.:	91-79-66527060 / 66527061/ 40307050
Fax No.:	91-79-66527069
E-Mail :	info@freshtrop.com c.malgiya@freshtrop.com marketing@freshtrop.com
Website :	www.freshtrop.com
Location :	Owned
Factory 1 :	Gat No. 171, Village Jaulke, Taluka Dindori, Bombay Agra Road, District Nasik 422207, Maharashtra, India
Factory 2 :	Survey No. 1366, Savlej wayfale Road, Siddhewadi, Post Savlej, Taluka Tasgaon, District Sangli 416 311, Maharashtra, India
Factory 3 :	Gat No. 2425, 2426, 2430 and 2431 Malharpet, Pandharpur Road, Post Kaledhone, Taluka Khatav, District Satara, Maharashtra, India
Factory 4:	Gat No. 598/1, Village Janori, Dindori, Nashik – 422206, Maharashtra, India

DIRECTORS

As on 31.03.2011

Name :	Mr. Ashok V. Motiani
Designation :	Chairman and Managing Director
Date of Birth/Age :	57 Years
Qualification :	B. Tech (IIT, Mumbai)
Experience :	32 Years
Date of Appointment :	30.09.1992
Name :	Mr. Nanita A. Motiani
Designation :	Executive Director
Name :	Mr. Ramchandra Joshi
Designation :	Non-Executive/Independent Director
Name :	Mr. Mayur Shah
Designation :	Non-Executive/Independent Director

KEY EXECUTIVES

Name :	Mr. Jignesh J. Gandhi
Designation :	Secretary
Name :	Mr. Chirag
Designation :	AGM of Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,854,288	25.84
Bodies Corporate	2,435,013	22.05
Sub Total	5,289,301	47.89
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5,289,301	47.89
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	5,276	0.05
Sub Total	5,276	0.05
(2) Non-Institutions
Bodies Corporate	660,696	5.98
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	2,403,932	21.76
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	2,232,910	20.22
Any Others (Specify)	452,885	4.10
Non Resident Indians	452,331	4.10
Clearing Members	554	0.01
Sub Total	5,750,423	52.06
Total Public shareholding (B)	5,755,699	52.11
Total (A)+(B)	11,045,000	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)	11,045,000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Mango Pulp, Guava Pulp, Tomato Pulse and Exporter of Fresh Fruits.

Products :

Product Description	Item Code No
Fresh Grapes	801610.00
Mango Pulp	080450.40
Guava Pulp	200980.00

Exports :

Products :

Fresh Fruits

Countries :

• European Country

Imports :

Products :

Packaging Material

Countries :

• Italy

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Installed Capacity
Fresh Fruits	Mt	35400
Fruit Juice Concentrate Plant	Mt	31600

Note: Installed capacity is as certified by the management and relied upon by the Auditors. Capacity utilization is restricted by the availability of raw materials due to seasonal nature of business.

GENERAL INFORMATION

Suppliers :

• Guglio

Customers :

Wholesalers and Retailers

• ITC Limited

No. of Employees :

70 (Approximately)

Bankers :

• Axis Bank, Ahmedabad, Gujarat, India
• ICICI Bank Limited
• Royal Bank of Scotland

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. Millions)
Term Loans	88.477	145.970
Working Capital Loans	133.779	98.103
Total	222.256	244.073
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. Millions)
Inter Corporate Deposit	2.004	0.225
From Bank	20.212	0.000
Total	22.216	0.225

Axis Bank: Cash Credit Rs.150.000 Millions

Axis Bank : TL Rs.60.000 Millions

Banking Relations :
Auditors :
Name :	Mayank Shah and Associates Chartered Accountant
Address :	706 and 708, Mahakant, Opposite V. S. Hospital, Ellisbridge, Ahmedabad 380006.
Ph No.:	91-79-26575642/ 26579106
Enterprise under significant influence of Key Management personnel :	Freshcap Investments Private Limited (Formerly known as Capital Packaging Private Limited) Freshtrop Plantations Private Limited Agrofoyer Solutions Private Limited Agrofoyer Investments Private Limited Freshfal Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1,50,00,000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11,045,000	Equity Shares	Rs.10/- each	Rs.110.450 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		110.450	105.450	100.450
2] Share Application Money		0.000	2.425	0.000
3] Reserves & Surplus		146.677	141.509	113.434
4] (Accumulated Losses)		0.000	0.000	0.000
5] Deferred Government Grant		81.366	75.968	4.742
NETWORTH		338.493	325.352	218.626
LOAN FUNDS
1] Secured Loans		222.256	244.073	249.447
2] Unsecured Loans		22.216	0.225	9.500
TOTAL BORROWING		244.472	244.298	258.947
DEFERRED TAX LIABILITIES		23.246	22.515	12.978
TOTAL		606.211	592.165	490.551
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		429.430	401.657	137.673
Capital work-in-progress		0.000	34.774	261.798
INVESTMENT		0.000	0.397	0.296
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	192.842	207.628	171.664
	Sundry Debtors	97.077	47.310	20.384
	Cash & Bank Balances	20.067	12.778	16.853
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	47.936	48.482	31.611
Total Current Assets		357.922	316.198	240.512
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	162.583	150.892	114.246
	Other Current Liabilities	18.646	5.336	35.605
	Provisions	0.269	5.309	0.774
Total Current Liabilities		181.498	161.537	150.625
Net Current Assets		176.424	154.661	89.887
MISCELLANEOUS EXPENSES		0.357	0.676	0.897
TOTAL		606.211	592.165	490.551

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	533.200	486.751	375.395
		Other Income	10.376	14.769	3.824
		Export Incentives	19.457	16.581	13.401
		TOTAL (A)	563.033	518.101	392.620
Less	EXPENSES
		Material Consumed & Stock Variation	348.403	265.364	217.680
		Manufacturing Expenses	29.666	21.903	13.715
		Payments to & Provisions for Employment	20.302	15.624	6.862
		Administrative Expenses	13.846	13.084	22.793
		Selling and Distribution Expenses	104.768	130.665	106.960
		Preliminary & Issue Expenditure written off	0.318	0.318	0.299
		Loss on sale of Mutual Funds	0.000	0.000	3.493
		TOTAL (B)	517.303	446.958	371.802
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		45.730	71.143	20.818
Less	FINANCIAL EXPENSES (D)		21.554	18.735	5.595
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.176	52.408	15.223
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.793	21.159	8.834
	PROFIT BEFORE TAX (E-F) (G)		1.383	31.249	6.389
Less	TAX (H)		0.731	9.537	2.299
	PROFIT AFTER TAX (G-H) (I)		0.652	21.712	4.090
	MAT Credit Entitlement of previous year		(0.644)	2.402	0.000
	Prior Period and extra ordinary Items		0.460	(0.739)	0.080
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		121.571	98.195	94.185
	BALANCE CARRIED TO THE B/S		122.039	121.571	98.195
	EARNINGS IN FOREIGN CURRENCY
		Sales of Fresh Fruits	405.897	438.845	375.395
		Sales of Processed Fruits	32.940	18.499	0.000
	TOTAL EARNINGS		438.837	457.344	375.395
	IMPORTS
		Raw Materials	1.772	0.000	0.000
		Packing Material	22.172	15.400	14.193
		Consumables	0.340	0.445	0.000
		Capital Goods	0.000	0.606	107.414
		Others	0.269	0.000	0.000
	TOTAL IMPORTS		24.553	16.451	121.607
	Earnings Per Share (Rs.)		0.06	2.14	0.41

Expected Sales (2011-2012) : Rs.650.000 Millions

The above information has been parted by Mr. Chirag – AGM Accounts

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2000
Net Sales	320.380	46.130	56.480
Total Expenditure	284.420	42.070	57.740
PBIDT (Excl OI)	35.960	4.060	(1.260)
Other Income	1.090	1.140	1.140
Operating Profit	37.050	5.200	(0.120)
Interest	6.870	6.000	6.200
Exceptional Items	0.000	0.000	0.000
PBDT	30.180	(0.800)	(6.320)
Depreciation	6.780	5.730	5.550
Profit Before Tax	23.400	(6.530)	(11.870)
Tax	7.800	(2.140)	(3.890)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	15.600	(4.390)	(7.980)
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	15.600	(4.390)	(7.980)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.12	4.19	1.04
Net Profit Margin (PBT/Sales)	(%)	0.26	6.42	1.70
Return on Total Assets (PBT/Total Assets}	(%)	0.18	4.35	1.69
Return on Investment (ROI) (PBT/Networth)		0.00	0.10	0.03
Debt Equity Ratio (Total Liability/Networth)		1.26	1.25	1.87
Current Ratio (Current Asset/Current Liability)		1.97	1.96	1.60

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors

Particulars	31.03.2011	31.03.2010	31.03.2009
	Rs in Millions
Sundry Creditors	162.583	150.892	114.246

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	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	--
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	No
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	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OPERATIONS

FRESH FRUITS SEGMENT

The year shows largely the result of the worst ever season for exports of fresh Indian grapes to Europe.

Detection of a harmless but still banned chemical CCC resulted in the German Supermarkets deciding not to sell Indian grapes in their market for both the 2010 and 2011 seasons. Despite this the company was able to avoid loss in the full financial year of 2010-11.

The total income during the year increased from Rs.518.10 million to Rs.563.03 million, while the profit after tax was just Rs.0.47 million the worst in the last 5 years. While the industry saw mostly serious and committed exporters in the fray this year, the overall exports to EU reduced drastically from about 3700 containers in 2010 to only around 1900 containers in 2011 season. With the scare of previous year still in their minds, German retailers did not buy Indian grapes this year. The company however, witnessed a moderate drop of less than 15% in quantities exported to Europe, thereby consolidating its position from 7.5% to over 12.5% share of the Indian exports to EU.

During the 2011 season the company worked towards finding new markets, the results are encouraging and they would work hard in developing these markets in the coming years.

This year the Company used its infrastructure for collection, grading and sorting of fresh fruits and vegetables subsidized by Ministry of Food processing for distribution of fresh grapes in the domestic market. Here too the results are very encouraging and they feel there is a great untapped potential in this market.

Imports of fresh produce to create round the year availability of certain fruits in the domestic market was also undertaken but there is too much unorganized rush in this market similar to what was seen in exports in the earlier years and they feel it will take some time for this business to mature. They will keep working in developing this segment but will not like to be aggressive.

FOOD PROCESSING SEGMENT

The Revenue generated from this segment, during the year under report, increased from Rs.49.080 million to Rs.104.020 million and the operating loss reduced from Rs.23.65 million to Rs.11.23 million. The Company processed 5,846 M Tons of fruit in this year as compared to 2,516 M Tons in the previous year.

The Infrastructure created for food processing was offered to other processed food traders and manufacturers for processing fresh fruits supplied by them. With a good availability of fresh fruits and vegetables in and around Nasik they expect many more fruit processors to use their state-of-the art facilities in the coming years.

The demand for good quality, hygienically processed food is ever increasing. Nasik is the largest vegetable producing area in the western part of India and is just 200 kms away from Mumbai. It is centrally located for distribution to other parts of Maharashtra, Gujarat and Madhya Pradesh. They will continue to identify and diversify the food products being processed and manufactured at this plant.

FINANCE

During the year, the Company has revised its Working Capital Facilities of Rs.1500.00 Lacs for the peak season and Rs.90.000 millions for off season from Axis Bank Limited for the Fresh Fruits and Food Processing activities of the Company. During the year , Axis Bank Limited has also taken over a cash credit facility from The Royal Bank of Scotland N.V. (formerly known as ABN Amro Bank B.V.) and has also been sanctioned a Fresh short term loan of Rs.20.000 millions for working capital requirement of the Company.

RECENT TRENDS AND FUTURE OUTLOOK

While increasing awareness amongst the consumers related to pesticide residues, poses a challenge, it also presents an opportunities for some. The recent trend clearly demonstrates the willingness of the consumer to pay more for good quality and safe fresh produce and this is a very positive indicator for their industry.

With increased thrust of the central and state governments, towards development of agri-based infrastructure, they can expect plethora of opportunities to present themselves given the as yet under utilized potential in this business within as well as outside India. The Company is well prepared to make the most of these opportunities and has a bright outlook for the future.

Subject has undertaken a gradual shift towards marketing to EU retailers directly with predetermined prices as compared to earlier model of 100% consignment sales to intermediate service providers. This has helped strengthen customer relationships and also backward linkages where associated growers are better prepared towards meeting the requirements of the EU retailers.

Subject initiated supplies of Table Grapes to the domestic market – both organized as well as unorganized sector. This has enabled in utilizing their infrastructure for a longer period as grapes availability for domestic supplies is much longer than the exports season. This is likely to see a significant and rapid growth in the coming years.

Subject has made some inroads in supplies to the other markets such as CIS countries and Fareast and intends to further increase presence in these markets.

The company has embarked upon an expansion and diversification path with the setting up of a food processing unit for producing mango pulp and concentrates, guava pulp and concentrates, pomegranate juices and concentrates as well as Tomato paste. This synergetic foray into food processing is likely to strengthen The Company and enable future growth.

TRADE REFERENCES

• ITC Limited
• Guglio

CONTINGENT LIABILITY

Nature of Liabilities	31.03.2011	31.03.2010
	(Rs in Millions )
Estimated amounts of contracts remaining to be executed on capital account and not provided (net of advances)	1.698	0.617
Estimated amount of Custom/Excise duty liability in respect of Capital Goods purchased without payment of duty under EPCG Scheme	21.741	39.774
Estimated amount of duty liability on stock of duty free materials	1.857	2.028
Estimated amount of duty liability on Capital Goods procured/ imported under Bonds given by the company	0.000	2.455
Disputed matters in appeals/contested in respect of Income Tax	6.874	0.262
Bank Guarantees	4.251	1.250
Letter of Credit	0.000	3.556
TOTAL	36.421	49.942

Fixed Assets

• Land and Land Development
• Factory Building
• Machinery
• Office Equipment
• Vehicles
• Furniture and Fixtures
• Computer
• Office Electrification
• Pollution Control Equipment
• Website

UN AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 31.12.2011

Particulars	3 Months Ended		Nine Months ended
	31.12.2011	30.09.2011	31.12.2011
	(Rs in Millions )
	UNAUDITED
Net Sales / Income from Operation	55.923	41.787	395.611
Other Operating Income	0.560	4.342	27.381
Total Income (1+2)	56.483	46.129	422.991
(Increase) / Decrease in stock in trade	8.837	(16.180)	108.785
Consumption of raw materials	23.223	33.626	154.613
Purchase of trade goods	(0.233)	3.800	4.264
Employee Cost	5.967	4.915	15.813
Depreciation	5.548	5.728	18.054
Other Expenditure	19.926	15.912	100.738
Total Expenditure (4+5+6+7+8+9)	63.268	47.801	402.268
Profit from Operation before Other Income,	(6.785)	(1.672)	20.724
Interest and Exceptional Items (3-10)
Other Income / (Loss)	1.114	1.141	3.342
Profit before Interest & Exceptional Items (11 + 12)	(5.671)	(0.531)	24.066
Financial Charqes	6.201	5.998	19.070
Profit after Interest but before Exceptional Items (13-14)	(11.871)	(6.529)	4.996
Prior Period Items	--	--	--
Profit/(Loss) from ordinary activities before tax (15+16)	(11.871)	(6.529)	4.996
Tax Expenses	(2.590)	(1.734)	0.354
Deferred Taxation	(3.891)	(2.142)	1.765
MAT Credit Entitlement	2.590	1.734	(0.354)
Net Profit/(Loss) from Ordinary Activities after Tax (17-18-19-20)	(7.980)	(4.387)	3.232
Extraordinary items (Net of Tax Expenses)	0.000	0.000	0.000
Net Profit/(Loss) for the period (21-22)	(7.980)	(4.387)	3.232
Paid up equity Share capital (Face value of Rs.10 per share)	110.450	110.450	110.450
Reserve excluding revaluation reserve as per balance sheet of previous year	--	--	--
Earninq per share (EPS)
Basic & Diluted before extraordinary Items	(0.72)	(0.40)	0.29
Basic & Diluted after extraordinary Items	(0.72)	(0.40)	0.29
Public Shareholding
Number of Shares	5,755,699	5,755,699	5,755,699
Percentage of shareholding	52.11	52.11	52.11
Promoters & Promoter Group Shareholding
a) Pledqed / Encumbered	Nil	Nil	Nil
b) Non-Encumbered
Number of Shares	5,289,301	5,289,301	5,289,301
. Percentage of Shares (as a % of the total	100.00	100.00	100.00
shareholding of the Promoter & Promoter Group)
Percentage of Shares (as a % of the total Share Capital of the Company)	47.89	47.89	47.89

Particulars	3 Months Ended		Nine Months ended
	31.12.2011	30.09.2011	31.12.2011
	(Rs in Millions )
	UNAUDITED
Segment Revenue (Net Sales including Export Incentives)
a) Fresh Fruits	3.120	12.889	295.942
b) Food Processing	53.364	33.240	127.049
Total Revenue	56.483	46.129	422.991
Segment Results (Profit before Interest & Financial Expenses, Exceptional Items and Taxes)
a) Fresh Fruits	(5.805)	0.294	23.829
b) Food Processing	2.465	0.707	7.466
LESS:
Interest	6.201	5.998	19.070
Other Unallocable Expenditure	2.369	1.571	7.344
Other Unallocable Income	(0.038)	(0.040)	(0.115)
Total Profit / (Loss) Before Tax	(11.871)	(6.529)	4.996

** Capital Employed has not been identified with any of the reportable segments, as the assets used in the Company’s business and the liabilities contracted are used inter changeably between segments.

Notes:

1. The Company has identified following segments as reportable segment in accordance with AS-17 issued by the ICAI. Segment wise details are given to the extent possible.

a) Fresh Fruits

b) Food Processing

c)

2. During the quarter ended December 31, 2011 the Company has received NIL complaints. There was no pending complaint as on December 31, 2011.

3. Other Operating income includes export incentive.

4. Other Expenditure includes Exchange Loss during the Quarter.

5. Previous Year's figures have been regrouped, wherever necessary.

6. The above financial results have been reviewed by the Audit Committee, and approved by the Board of Directors in their meeting held on 13.02.2012. The Auditors have carried out limited review of the above results.

7. The company is engaged in agriculture export business, agri industry being seasonal in nature, sale /profit for the quarter do not proportionately reflect the annual performance

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.50.31
UK Pound	1	Rs.79.05
Euro	1	Rs.65.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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		29

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.