MIRA INFORM REPORT

Report Date :

28.03.2012

IDENTIFICATION DETAILS

Name :	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED
Registered Office :	Prakashgad Plot No. G-9, Anant Kanekar Marg, Bandra (East), Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.05.2005
Com. Reg. No.:	11-153645
Capital Investment / Paid-up Capital :	Rs.0.500 Million
CIN No.: [Company Identification No.]	U40109MH2005SGC153645
TAN No.: [Tax Deduction & Collection Account No.]	PNEE00582B
Legal Form :	A Closely held Government of Maharashtra Company.
Line of Business :	Distribution of Electricity
No. of Employees :	Information not divulged by management

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 218398552
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a State Government Company engaged in distribution of electricity. It is an established company having satisfactory track. The creditors and lenders can be confident of their exposures in the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. 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.

INFORMATION DENIED BY

Name :	Ms. Swati
Designation :	Office Executive
Contact No.:	91-22-26474211
Date :	26.03.2012

LOCATIONS

Registered Office / Head Office:	Prakashgad Plot No. G-9, Anant Kanekar Marg, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-26474211/ 26470953/26472131
Fax No.:	91-22-26476749/ 26470953
E-Mail :	cs@mahadiscom.in
Website :	www.mahadiscom.in

DIRECTORS

AS ON 26.09.2011

Name :	Mr. Ajoy Gangavishan Mehta
Designation :	Chairman
Address :	A/7, Saudamini Haji Ali, Mumbai – 400034, Maharashtra, India
Date of Birth/Age :	21.09.1959
Date of Appointment :	02.02.2009
DIN No. :	00155180
Name :	Mr. Subrat Prafulla Chandra Ratho
Designation :	Director
Address :	38, Ambar, 9^th Floor, Narayan Dabholkar Marg, Malabar Hill, Mumbai-400006, Maharashtra, India
Date of Birth/Age :	10.10.1962
Date of Appointment :	07.07.2006
DIN No. :	00502716
Name :	Mr. Sharad Krushnarao Dabhade
Designation :	Whole Time Director
Address:	02.07.1957
Date of Birth/ Age:	602, MSEB Quarters Plot No. R-10, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Date of Appointment:	19.03.2009
DIN No. :	02638202
Name :	Mr. Dattatraya Dharmaji Wavhal
Designation :	Whole Time Director
Address :	14/601, Flower Valley Complex Eastern Express Highway, Khopat Thane West, Mumbai – 400601, Maharashtra, India
Date of Birth/Age :	06.12.1957
Date of Appointment :	20.08.2009
DIN No. :	02767994
Name :	Mr. Maruti Kishanrao Deore
Designation :	Whole Time Director
Address :	Flat No. 1, Ground Floor, Vidyut Nirmal Niwal, Devidyal Road, Mumbai-400080, Maharashtra, India
Date of Birth/Age :	24.01.1956
Date of Appointment :	29.08.2009
DIN No. :	02780312
Name :	Mr. Prakash Vithal Page
Designation :	Director
Address :	131, Poornanand Walkeshwar Road, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	18.09.1953
Date of Appointment :	02.01.2009
DIN No. :	00096443
Name :	Mr. Ashok Rajaram Harane
Designation :	Director
Address :	B-302, Millennium Gardens 182, Upper Govind Nagar, Malad (E), Mumbai – 400097, Maharashtra, India
Date of Birth/Age :	04.06.1946
Date of Appointment :	02.01.2009
DIN No. :	00123013
Name :	Mr. Sitaram J Kunte
Designation :	Director
Address :	Dept of IE and L, Mantralaya, Mumbai, Maharashtra, India
Date of Birth/Age :	03.11.1961
Date of Appointment :	09.08.2011

KEY EXECUTIVES

Name :	Mr. Shailendra Rajkishore Tiwari
Designation :	Company Secretary
Date of Appointment :	02.06.2008
Pan No. :	AADPT6627P
Name :	Mr. D. S. Bodale
Designation :	C.E. (Load Management)
Name :	Mr. N.G. Naru
Designation :	Chief Investigation Officer
Name :	Mr. Deepak J. Lad
Designation :	OSD to MD & C.E. (Internal Reforms)
Name :	Mr. B. F. Dongare
Designation :	C.E. (APDRP)
Name :	Mr. G. S. Trimukhe
Designation :	C.E. (Material Management)
Name :	Mr. A. N. Gujar
Designation :	C.E. (Infra)
Name :	Mr. D.S.Talware
Designation :	C.E.(Testing)
Name :	Mr. Ashok Chavan
Designation :	C.E. (Power Purchase)
Name :	Mr. A. R. G. Shaikh
Designation :	C.E.(Distribution)
Name :	Mr. M.D. Zode
Designation :	C.E. (Special Proj.)
Name :	Mr. P.M. Matey
Designation :	C.G.M. (Tech./Estt.)
Name :	Mr. Bhagwan Gadade
Designation :	C.G.M (Internal Audit)
Name :	Mr. V. B. Bagul
Designation :	C.G.M. (Personnel)
Name :	Mr. U.S. Mane
Designation :	C.G.M. (I.T)
Name :	Mr.  Ram Dotonde
Designation :	C.G.M. (Corporate Communication)
Name :	Mr. A. L. Alaspurkar
Designation :	Chief  Legal Adviser
Name :	Mr. D. Chatterjee
Designation :	Principal Consultant (Distribution Franchisee)
Name :	Mr. S. M. Bhoyar
Designation :	CGM (Corp. A/Cs)
Name :	Mr. V. R. Shiroorkar
Designation :	C.G.M. (F & A)
Name :	Mr. Anil Khaparde
Designation :	Regional Executive Director (Nagpur)
Name :	Mr. R.G.Bundile
Designation :	C.E. (Nagpur Urban Zone)
Name :	Mr. K.V.Ajnalkar
Designation :	C.E. (Nagpur Zone)
Name :	Mr. C.H. Yerme
Designation :	C.E. (Amravati Zone Akola )
Name :	Mr. K. J. Sirsikar.
Designation :	C.E. (Aurangabad Zone)
Name :	Mr. S.P. Nagtilak
Designation :	C.E. (Pune Zone)
Name :	Mr. S. M. Patil
Designation :	C.E. (Kolhapur)
Name :	Mr. R. D. Munde
Designation :	C.E. (Latur Zone)
Name :	Mr. S. D. Shinde
Designation :	C.E. (Nanded Zone)
Name :	Mr. P. U. Shinde
Designation :	C.E. (Nashik Zone)
Name :	Mr. V. C. Somkuwar
Designation :	C.E. (Jalgaon Zone)
Name :	Mr. W. H. Jagtap
Designation :	C.E. (Baramati Zone)
Name :	Mr. B. B. Patil
Designation :	C.E. (Kalyan Zone)
Name :	Mr. S. G. Karpe
Designation :	C.E. (Bhandup Urban Zone)
Name :	Mr. A.N. Rankhambe
Designation :	C.E. ( Kokan Zone, Ratnagiri)
Name :	Mr. N. G. Misal
Designation :	C.E. (Training & Safety), Eklahare, Nashik)
Name :	Mr. Supe
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2011

Names of Shareholders	No. of Shares
Staram J Kunte (Principal Secretary) Energy Nominee of GOM	49940
Ratho Subrat (M D of MSEBHCL)	10
Girase Gulabsingh (Nominee of GOM)	10
Rethrekar A Kunda (Nominee of GOM)	10
D K Kharat (Nominee of GOM)	10
C K Jadhav (Nominee of GOM)	10
L N Sadafule (Nominee of GOM)	10
Total	50000

AS ON 26.09.2011

List of Allottee	No. of Shares
MSEB Holding Company Limited – India	3000000000

AS ON 26.09.2011

Category	Percentage
Government [Central and State]	99.98
Government Companies	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Distribution of Electricity

GENERAL INFORMATION

No. of Employees :

Information not divulged by management

Bankers :

Rural Electrification Corporation Limited, Core 4scope Complex,

Facilities:

SECURED LOANS	31.03.2010 (RS. IN MILLIONS)	31.03.2009 (RS. IN MILLIONS)
Loans and Advances from banks
Bill discounting facility from I.D.B.I. Bank Limited (Secured by way of hypothecation of book debts ) (Repayable within one year Rs.117.064 millions)	0.000	117.064
Term Loan from Raigad DCC. Bank (Secured by existing fixed assets and escrow of revenue ) (Repayable within one year Rs.262.500 millions)	1575.000	1837.500
Term Loan from Ratnagiri DCC. Bank Secured by existing fixed assets and escrow of revenue )	1000.000	0.000
Overdrafts from Banks for working capital (Secured by Book Debts)	14000.000	3000.000
Other Loans and Advances
Loan from Rural Electrification Corp. (Secured by GoM guarantee, escrow of revenue and 1st charge of future assets) (Repayable within one year Rs.2224.600 millions)	31276.125	24209.998
Power Finance Corporation (Secured by GoM guarantee, escrow of revenue and 1st charge of future assets) (Repayable within one year Rs.1029.100 millions)	12046.479	9179.566
Total	59897.604	38344.128

UNSECURED LOANS	31.03.2010 (RS. IN MILLIONS)	31.03.2009 (RS. IN MILLIONS)
SHORT TERM LOANS & ADVANCES
a) From Bank	0.000	0.000
b) From Others	0.000	0.000
OTHER LOANS & ADVANCES
a) From Bank	0.000	0.000
b) From Others
1 State Government Loans (Repayable within one year Rs.668.488 millions)	5073.005	4904.665
2 Interest Accrued and due on Government Loans	1002.090	1002.090
3 Interest free Loan from MIDC for Elec Work	165.126	144.386
4 Financial Participation by Consumers' (Interest Bearing)	1.118	1.118
5 Refundable Capital Cost Deposits	3.281	3.281
6 Deposits collected to be refunded after eight years (without interest)	7.239	7.239
7 Financial Participation by consumers' (Interst Free)	40.985	48.079
8 Capital Cost Deposits	0.000	0.133
10 Financial participation by consumers'	2.343	2.345
Total	6295.187	6113.337

Financial Institutions:

· Rural Electrification Corporation Limited, Core 4 Scope Complex, 7 Lodi Road, New Delhi – 110 003, Delhi, India

· Power Finance Corporation Limited, ‘Urjanidhi’, 1, Barkhamba Lane, Connaught Place, New Delhi-110001, India

Banking Relations :

--

Auditors :

Name 1 :

Borkar and Muzumdar and Company

Chartered Accountants

Address :

235/237, Peninsula House, Dr. D N Road, Fort, Mumbai 400001, Maharashtra, India

Name 2 :

M P Chitale and Company

Chartered Accountants

Address :

1^st Floor, Hamam House, Ambalal Doshi Marg, Fort, Mumbai - 400001, Maharashtra, India

Holding Company:

• MSEB Holding Company Limited

CIN: U40100MH2005SGC153649

Subsidiary :

• Aurangabad Power Company Limited

CIN: U40109MH2007SGC171852

• Dhopave Coastal Power Limited

CIN: U40108MH2007SGC168836

Co-Subsidiary :

• Maharashtra State Power Generation Company Limited
• Maharashtra State Electricity Transmission Company Limited

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000000	Equity Shares	Rs. 10/- each	Rs. 25000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 10/- each	Rs.0.500 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.500	0.500	0.500
2] Contribution from Gom/MSEB Holding Company Limited		32630.125	32327.103	32113.597
3] Reserves & Surplus		17126.713	19739.566	18497.208
4] Equity from Gom towards Projects		4842.300	2078.000	0.000
NETWORTH		54599.638	54145.169	50611.305
LOAN FUNDS
1] Secured Loans		59897.604	38344.128	36655.070
2] Unsecured Loans		6295.187	6113.337	6226.396
TOTAL BORROWING		66192.791	44457.465	42881.466
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		120792.429	98602.634	93492.771
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		74850.144	60213.113	50186.402
Capital work-in-progress		23437.385	19755.620	16849.170
INVESTMENT		1367.415	684.502	683.847
DEFERREX TAX ASSETS		3573.938	6593.850	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2878.937	1809.475	1069.750
	Sundry Debtors	117532.421	106271.290	82082.306
	Cash & Bank Balances	13738.648	5177.621	11782.057
	Other Current Assets	22.806	87.500	101.387
	Loans & Advances	14300.860	19509.096	23034.126
Total Current Assets		148473.672	132854.982	118069.626
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	46190.255	41042.643	31791.016
	Other Current Liabilities	65136.333	58642.592	43638.839
	Provisions	19583.537	21814.198	16866.419
Total Current Liabilities		130910.125	121499.433	92296.274
Net Current Assets		17563.547	11355.549	25773.352
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		120792.429	98602.634	93492.771

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Revenue Income	276423.129	234830.603	201586.150
		Other Income	11462.805	13153.871	8405.469
		Revenue Subsidy and Grants From GoM	4000.000	0.000	0.000
		TOTAL (A)	291885.934	247984.474	209991.619
Less	EXPENSES
		Purchaser of power	238419.520	206062.995	170063.889
		Employee costs	18380.658	23983.907	16898.126
		Administration and general expenses	8989.868	9162.734	7754.340
		Other expenses	15201.707	8193.992	3193.299
		Net Prior period credits / charges	1597.916	(251.432)	(262.737)
		TOTAL (B)	282589.669	247152.196	197646.917
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9296.265	832.278	12344.702
Less	FINANCIAL EXPENSES (D)		9001.279	7879.018	5734.117
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		294.986	(7046.740)	6610.585
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8122.701	6467.711	5398.317
	PROFIT BEFORE TAX (E-F) (G)		(7827.715)	(13514.451)	1212.268
Less	TAX (I)		3020.012	(4493.378)	40.634
	PROFIT AFTER TAX (G-I) (J)		(10847.727)	(9021.073)	1171.634
Less	Contingency Reserve		290.00	270.000	520.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(11457.808)	(4221.399)	(4873.033)
Add	DEFERRED TAX ADJUSTMENT OF PREVIOUS PERIOD		0.000	2054.664	0.000
	BALANCE CARRIED TO THE B/S		(22595.536)	(114578.808)	(4221.399)
	Earnings Per Share (Rs.)		(222755)	(185821)	13033

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(3.72)	(3.64)	0.56
Net Profit Margin (PBT/Sales)	(%)	(2.83)	(5.75)	0.60
Return on Total Assets (PBT/Total Assets}	(%)	(3.51)	(7.00)	0.72
Return on Investment (ROI) (PBT/Networth)		(0.14)	(0.25)	0.02
Debt Equity Ratio (Total Liability/Networth)		3.61	3.07	2.67
Current Ratio (Current Asset/Current Liability)		1.13	1.09	1.28

LOCAL AGENCY FURTHER INFORMATION

The Sundry Creditors details:

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
For purchase of power	41038.142	37072.176	29551.896
For capital supplies/works	3256.844	637.585	558.024
Fro O and M supplies/works	1895.269	3332.882	1681.096
Total	46190.255	41042.643	31791.016

COMPANY PROFILE

Erstwhile Maharashtra State Electricity Board was looking after Generation, Transmission & Distribution of Electricity in the State of Maharashtra barring Mumbai. But with enactment of Electricity Act 2003, MSEB was unbundled into 4 Companies viz. MSEB Holding Co. Ltd., Maharashtra State Electricity Distribution Co. Ltd., Maharashtra State Power Generation Co. Ltd. and Maharashtra State Electricity Transmission Co. Ltd. on 6 th June 2005.

OPERATIONAL PERFORMANCE:

During the 5^th year of operation, the Company had sold 63941 MUs of power, which has generated revenue of Rs. 276423.100 millions.

However, after providing for Depreciation, Interest, Finance charges, other debits and Extraordinary Items there was a loss of Rs. 7827.700 millions.

The Company continued its efforts to strengthen its distribution system and has established new sub-stations, augmented existing sub-stations sanctioning additional load during the year.

LOAD SHEDDING PROTOCOL:

The company has experiencing significant growth in power consumption during last few years in its area of operations due to buoyancy in economy. Despite various efforts put in by the company to meet the growing power demand, the growth in supply has largely been insufficient to cater to rising demand. As a result the demand-supply mismatch is widening, necessitating immediate drastic and emergent measures. In order to bridge this gap, the company had purchased power from time to time and also tied up long term power purchases, wherever needed within the regulatory parameters and commercial prudence.

As a preventive measure and to maintain the demand – supply equilibrium, load shedding, as per the protocol and directives given by the Honorable MERC, is being implemented.

POWER PURCHASE:

The company is committed to make Maharashtra load shedding free by 2012. The company has taken lead in tie up of long term power procurement to meet future demand and be a power surplus state. Apart from 2000 MW PPA under competitive bidding process, the company has executed PPA for additional 300 MW with M/s JSW

Energy Ratnagiri. The second stage of competitive bidding process is for procurement of 2000 MW Power (-20%, +30%) is initiated. Moreover, the PPA’s have been executed with M/s Emco Energy Ltd (200 MW), M/s Adani Power Maharashtra Ltd (1200 MW), M/s Indiabulls Power Ltd (1200 MW).

To minimize load shedding, the company purchases 941.86 MUs from traders at Rs. 6676.200 millions. The company has also successfully implemented the Zero Load Shedding Program in the revenue Head quarters by purchasing 1396.88 MUs at 7967.600 millions and this cost has been recovered from the specified consumers in this area through Reliability Charges.

During the mansoon (off peak season of June 2009 to Sept 2009), the company banked 66.88 MUs with Punjab and availed the same in return from them during the peak season of Jan 10 to March 10.

Bankers Charges Report as per Registry

Corporate identity number of the company	U40109MH2005PLC153645
Name of the company	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. G – 9, Prakashgad, Prof. Anant Kanetkar Marg, Bandra (East), Mumbai – 400 451, Maharashtra , India
This form is for	Creation of Charge
Type of charge	Movable Property
Particular of charge holder	Power Finance Corporation Limited, ‘Urjanidhi’, 1, Barkhamba Lane, Connaught Place, New Delhi-110001, India
Nature of instrument creating charge	Deed of Hypothecation dated 26.11.2010 (hereinafter the DOH) executed by Maharashtra State Electricity Distribution Company Ltd(hereinafter the Borrower) in favour of Power Finance Corporation Ltd.(hereinafter PFC) securing the repayment of Rs.2420.400 millionss along with other moneys payable(hereinafter the Loan),for implementation of Part-B projects under R-APDRP at 36 towns, on 1st charge basis over all the movables at Chiplun, Solapur, Ichalkarananji and Virar (DOH copy enclosed herewith).
Date of instrument Creating the charge	26.11.2010
Amount secured by the charge	Rs.2420.400 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Interest shall be paid at such rate as notified by MoF currently 11.5%. Interest shall accrue from the date of release of amount by MoP and shall be payable on the 14th of each month. Terms of Repayment - The period of repayment shall be twenty years including moratorium of five years. No repaymenht shall be made in the months of April and May each year. Extent and Operation of the charge - The charge will extend to and operate as 1st charge over entire movable assets, present and future pertaining to Chiplun, Solapur, Ichalkarananji and Virar in the State of Maharashtra created in the project out of the loan sanctioned by PFC (hereinafter Project Assets).
Short particulars of the property charged	Entire movable assets,present and future pertaining to Chiplun, Solapur, Ichalkarananji and Virar in the State of Maharashtra created out of the project cost sanctioned by PFC.

Corporation identity number or foreign company registrations number of the company	U40109MH2005PLC153645
Name of the company	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED
Address	Plot No. G – 9, Prakashgad, Prof. Anant Kanetkar Marg, Bandra (East), Mumbai – 400 451, Maharashtra , India
This Form is for	Creation of charge
Type of Charges	Hypothecation
Particular of the charge holder	Rural Electrification Corporation Limited Address: Core 4 Scope Complex, 7 Lodi Road, New Delhi – 110 003, India
Nature or description of the instrument creating charge	Loan Agreement and Deed of Hypothecation of Movable Assets of power utility (Both create a single charge)
Date of the instrument creating charge	24.02.2006
Amount Secure by the charge	Rs. 761.801 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest- Basic Rate- 10.00% With Default Escrew over- 9.50% With Rebate of 0.5% upon prompt payment but without default
Description of the property charge whether it is a charge on	Plant and machinery
Particulars of the Property charged	First charge by hypothecation of movable assets/ properties including movable machinery, equipments, machinery, machinery spares, tools, implements and accessories installed and its stock of materials and equipments and first charge by hypothecation of the future movable assets to be created out of the project loan to be sanctioned by REC

Fixed Assets:

• Land and land flights
• Buildings
• Hydraulic works
• Other civil works
• Plant and machinery
• Lines and cable networks
• Vehicles
• Furniture and fixtures
• Office equipment

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.50.90
UK Pound	1	Rs.81.27
Euro	1	Rs.67.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.