MIRA INFORM REPORT

Report Date :

16.05.2012

IDENTIFICATION DETAILS

Name :	LEE PHARMA LIMITED (w.e.f. 06.10.1997)
Formerly Known As :	LEE PHARMA PRIVATE LIMITED
Registered Office :	Survey No. 257 and 258/1, Door No. 11-6/56-C Block, Opposite IDPL Factory, Moosapet (Village), Balanagar (Post), Hyderabad 500037, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.10.1997
Com. Reg. No.:	01-028095
Capital Investment / Paid-up Capital :	Rs. 14.509 Millions
CIN No.: [Company Identification No.]	U24230AP1997PLC028095
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and marketing of Active Pharmaceutical Ingredients (APIs) and Intermediate Chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 150000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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.

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 :	Survey No. 257 and 258/1, Door No. 11-6/56C Block, Opposite IDPL Factory, Moosapet (Village), Balanagar (Post), Hyderabad 500037, Andhra Pradesh, India
Tel. No.:	91-40-66170334 / 66170336
Fax No.:	91-40-66170330
E-Mail :	accounts@leepharma.com info@leepharma.com sales@leepharma.com purchase@leepharma.com
Old Branch Office:	A-401, Saidatta Apartments, Srinivasa Nagar Colony (E), Ameerpet, Hyderabad – 500038, Andhra Pradesh, India

DIRECTORS

As on 29.09.2011

Name :

Mr. Alla Venkata Reddy

Designation :

Managing Director

Address :

Plot No. 157, Vivekanandnagar Colony, Kukatpally, Hyderabad-500072, Andhra Pradesh, India

Date of Birth/Age :

15.02.1955

Qualification :

Post Graduate

Date of Appointment :

27.08.2007

DIN No.:

00018534

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65993AP1995PTC019971	LEE HEALTH DOMAIN INDIA PRIVATE LIMITED	Director	7/04/1995	7/04/1995	-	Active	NO
2	U24230AP1997PLC028095	LEE PHARMA LIMITED	Managing director	27/08/2007	6/10/1997	-	Active	NO
3	U24239AP1998PTC030275	LEE POWER AND FUEL PRIVATE LIMITED	Director	30/09/1998	30/09/1998	-	Active	NO
4	U01110AP2001PTC036979	GENOVA BIOTECHNIQUES PRIVATE LIMITED	Director	18/08/2006	18/08/2006	17/07/2007	Active	NO
5	U45201AP2007PTC056353	INDKEY INFRA PROJECTS PRIVATE LIMITED	Director	19/11/2007	19/11/2007	-	Active	NO

Name :

Mrs. Alla Ratna Kumari

Designation :

Wholetime Director

Address :

Plot No. 157, Vivekanandnagar Colony, Kukatpally, Hyderabad-500072, Andhra Pradesh, India

Date of Birth/Age :

22.11.1960

Qualification :

Graduate

Date of Appointment :

27.08.2007

DIN No.:

00022478

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U65993AP1995PTC019971	LEE HEALTH DOMAIN INDIA PRIVATE LIMITED	Director	7/04/1995	7/04/1995	-	Active	NO
2	U24230AP1997PLC028095	LEE PHARMA LIMITED	Whole-time director	27/08/2007	6/10/1997	-	Active	NO
3	U24239AP1998PTC030275	LEE POWER AND FUEL PRIVATE LIMITED	Director	23/03/1999	23/03/1999	-	Active	NO

Name :

Mr. Alla Raghu Mitra

Designation :

Whole time Director

Address :

Plot No.157, Vivekanand Nagar Colony, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India

Date of Birth/Age :

10.10.1980

Date of Appointment :

27.08.2007

DIN No.:

00080789

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24230AP1997PLC028095	LEE PHARMA LIMITED	Whole-time director	27/08/2007	4/05/2006	-	Active	NO

Name :

Dr. Tatineni Gopala Rao

Designation :

Director

Address :

203, Siri Residency, Thakur Mansion Lane, Somajiguda, Hyderabad-500082, Andhra Pradesh, India

Date of Birth/Age :

15.07.1944

Date of Appointment :

22.04.1999

DIN No.:

00043939

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U70102AP1997PTC027377	SAROVAR ESTATES PRIVATE LIMITED	Director	19/06/1997	19/06/1997	-	Active	NO
2	U33112AP1997PTC028505	JUBILEE HOSPITALS PRIVATE LIMITED	Director	9/12/1997	9/12/1997	-	Strike off	NO
3	U24230AP1997PLC028095	LEE PHARMA LIMITED	Director	22/04/1999	22/04/1999	-	Active	NO
4	U70102AP2002PTC038338	VANASTALI HILLS REAL ESTATES PRIVATE LIMITED	Director	9/01/2002	9/01/2002	-	Active	NO
5	U45200AP2004PTC044300	WESTSIDE ESTATES PRIVATE LIMITED	Director	30/09/2004	30/09/2004	-	Active	NO
6	U45400AP2007PTC053739	GVS INFRASTRUCTURE PRIVATE LIMITED	Director	24/04/2007	24/04/2007	-	Active	NO

Name :

Mr. Fransisco Javier Castellsague Casals

Designation :

Director

Address :

GRVE CARI.OS III 6131, Barcelona - 08028, Spain

Date of Birth/Age :

09.06.1941

Date of Appointment :

27.09.2007

DIN No.:

01869905

Name :

Mr. Gary Ethan Kamins

Designation :

Director

Address :

Pac Palisades ca 90272, California - 90272, USA

Date of Birth/Age :

06.06.1962

Date of Appointment :

27.09.2007

DIN No.:

01832818

Name :

Mr. Vijay Kumar Agarwal

Designation :

Director

Address :

23, Ahoora Mahal, 6^th Floor, 93 Marina Drive, G Road, Mumbai – 400002, Maharashtra, India

Date of Birth/Age :

13.03.1952

Date of Appointment :

27.09.2007

DIN No.:

017010632

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L24110MH1992PLC065942	EMMESSAR BIOTECH AND NUTRITION LIMITED	Director	17/03/1992	17/03/1992	-	Active	NO
2	U51496MH2002PTC137268	AGARWAL CHEMICAL AGENCIES PRIVATE LIMITED	Director	18/09/2002	18/09/2002	-	Active	NO
3	U74999MH2005PTC154265	SURVIVAL TECHNOLOGIES PRIVATE LIMITED	Director	27/06/2005	27/06/2005	-	Active	NO
4	U24230AP1997PLC028095	LEE PHARMA LIMITED	Director	27/09/2007	27/09/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Alla Venkata Reddy	249000
Alla Ratna Kumari	161700
Alla Raghumitra	102300
Alla Leela Rani	62100
P. V. Subba Reddy	16200
P. Jagadeeshwara Reddy	4050
P. Padmalatha Reddy	5400
P. Anjusha Reddy	1350
P. Venkata Reddy	6750
P. Varalakshmi	1350
P. Venkata Reddy	2700
K. Lahiri	100
K. Swapna Lahiri	100
M. Lakshmi Prasanna	100
P. Madhusudhan Reddy	5400
P. Bhuvana Reddy	5400
A. Nagi Reddy	42700
A. Anjamma Reddy	40800
K. Tarun Reddy	10000
K. Bhargav Reddy	10000
B. Pitchi Reddy	20000
B. Dhanalakshmi Reddy	15000
B. Anasurya Reddy	15000
S. Madhusudhan Reddy	20000
M. Mallikarjun Rao	100
A. Vijaya Kumari	100
B. Rama Subba Reddy	100
K. Mallikarhun Reddy	100
T. Gopal Rao	100
Moehs Iberica S L	616636
Vijay Kumar Raghunandan Prasad Agarwal	36273
Total	1450909

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	42.50
Directors or relatives of Directors	57.50
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and marketing of Active Pharmaceutical Ingredients (APIs) and Intermediate Chemicals.
Product:	ITC Code No.	Product Description
	2942	Bulk Drugs and intermediates

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drugs and Intermediates	MTs	750	385629

Note: Installed Capacities are calculated on the basis of product mix and certified by the management.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Term Loan From SBI
Foreign Currency Loans	3.262	11.752
Rupee Loan	58.776	75.989
Working Capital Loan From SBI	221.690	110.504
Hire Purchase Loans	0.013	0.701
Total	283.741	198.946
Secured Loan	As on 31.03.2011	As on 31.03.2010
From Corporate Bodies	9.114	8.993
From Director and Share Holder	2.422	2.929
Sales Tax Deferment	5.082	5.082
Total	16.618	17.004

Banking Relations :	--
Auditors :
Name :	M. V. Narayana Reddy & Company Chartered Accountants
Address :	Flat No. 504, Vijayasree Apartments, Behind Chermas, Ameerpet, Hyderabad - 500073, Andhra Pradesh, India
PAN.:	AADFM4830F

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7650000	Equity Shares	Rs. 10/- each	Rs. 76.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1450909	Equity Shares	Rs. 10/- each	Rs.14.509 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		14.509	14.509	14.509
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		366.669	353.604	341.373
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		381.178	368.113	355.882
LOAN FUNDS
1] Secured Loans		283.741	198.946	151.864
2] Unsecured Loans		16.618	17.004	17.114
TOTAL BORROWING		300.359	215.950	168.978
DEFERRED TAX LIABILITIES		33.137	28.990	23.802
TOTAL		714.674	613.053	548.662
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		464.124	441.317	364.407
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		10.000	0.000	11.904
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	241.542	217.001	129.755
	Sundry Debtors	216.949	183.961	133.575
	Cash & Bank Balances	11.118	8.212	5.741
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.750	36.762	32.266
Total Current Assets		510.359	445.936	301.337
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	237.547	247.041	107.526
	Other Current Liabilities	27.384	23.893	24.652
	Provisions	4.878	3.266	0.119
Total Current Liabilities		269.809	274.200	132.297
Net Current Assets		240.550	171.736	169.040
MISCELLANEOUS EXPENSES		0.000	0.000	0.069
DEFERRED REVENUE EXPENDITURE		0.000	0.000	3.242
TOTAL		714.674	613.053	548.662

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	846.566	728.786	589.900
		Other Income	6.127	3.014	5.919
		TOTAL (A)	852.693	731.800	595.819
Less	EXPENSES
		Material Consumed	549.926	509.503	361.631
		Manufacturing Expenses	147.589	119.486	91.162
		Research and Development Expenses	14.027	9.043	10.402
		Salaries and Benefits to Employees	12.016	14.617	14.726
		Administrative and Selling Expenses	75.909	62.446	75.094
		Preliminary Expenses Written off	0.000	0.069	0.069
		Deferred Revenue Expenses Written off	0.000	3.242	1.863
		Increase/(Decrease) in Finished Goods	(20.069)	(44.791)	(9.123)
		TOTAL (B)	779.398	673.616	545.824
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		73.295	58.184	49.995
Less	FINANCIAL EXPENSES (D)		26.211	16.361	18.174
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.084	41.823	31.821
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.740	18.755	16.794
	PROFIT BEFORE TAX (E-F) (G)		22.344	23.068	15.027
Less	TAX (H)		9.279	10.837	4.284
	PROFIT AFTER TAX (G-H) (I)		13.065	12.231	10.743
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		40.622	38.391	37.648
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	10.000	10.000
	BALANCE CARRIED TO THE B/S		43.687	40.622	38.391
	EARNINGS IN FOREIGN CURRENCY
		Earnings on FOB Basis	435.179	391.598	349.007
	TOTAL EARNINGS		435.179	391.598	349.007
	IMPORTS
		Raw Materials	140.877	151.727	61.709
		Capital Goods	1.811	7.696	3.190
	TOTAL IMPORTS		142.688	159.423	64.899
	Earnings Per Share (Rs.)		9.00	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.53	1.67	1.80
Net Profit Margin (PBT/Sales)	(%)	2.63	3.16	2.55
Return on Total Assets (PBT/Total Assets}	(%)	4.38	5.17	4.98
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.04
Debt Equity Ratio (Total Liability/Networth)		0.71	0.74	0.37
Current Ratio (Current Asset/Current Liability)		1.89	1.63	2.28

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

REVIEW OF THE BUSINESS OPERATIONS:

During the year, the company has clocked a net turnover of Rs. 846.566 Millions as against Rs. 728.786 Millions in the preceding financial year registering a growth of 16.16% in the current year sales. The company has earned a net profit of Rs.13.065 Million (Previous year Rs. 12.231 Millions) after providing for taxes of Rs, 9.279 Millions (Previous year Rs. 10.837 Millions)

The export turnover (CIF Value) of the company is Rs. 457.468 Millions comprising of 54.04% on sales in the current year. The company has leveraged its presence in the API segment in the European market. The main product of the company “Omeprazole” has been a very good success during the year and we expect to increase further market share in the European continent. The company filed for CEP approvals for EDQM authorities. They are planning to file another CEP application for one of consideration by the EDQM authorities. They are planning to file CEP application for one of the anti ulcerative product developed by the company. During the year company filed Drug Master Files (DMF’s) in various countries to expand the international presence.

In the Intermediates segment for the generic molecules, the R and D division of the company has done significant improvements in bringing down the cost and improving productivity and hence the company has become the main intermediate supplier for global major.

The Pellets division of the company has been able to generate good revenues by utilizing the strength in manufacturing different sizes, concentration, and release patterns in various therautic segments. The company has successfully development and commercialised several new products and supplied to major for validations etc which will bring good revenues in the years to come.

The company’s the new manufacturing facility for pallets, Granules and finished Dosage Forms at Visakhapatnam Special Economic Zone (VSEZ) Has Started its Commercial Operations. This facility has built on par meeting the regulatory requirements of all the global health authorities.

During the year the company has undergone a significant change in terms of new molecules selection and their development, either in the form of intermediate chemicals, API or semi finished dosage forms. The product portfolio has been diversified into various therapeutic segments like anti coagulants, cardiac arrhythmic anti spasmodic, anti retroviral. Some of them have been commercialized and some of them would be taken up during the next year. The company is expecting the good revenues from these niche product segments.

Contingent Liabilities Not Provided For:

(Rs. In Millions)

Particular	31.03.2011
Guarantees given by Bank	5.425
Un-expired Letters of Credits	61.516

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24230AP1997PLC028095
Name of the company	LEE PHARMA LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 257 and 258/1, Door No. 11-6/56C Block, Opposite IDPL Factory, Moosapet (Village), Balanagar (Post), Hyderabad 500037, Andhra Pradesh, India Email: accounts@leepharma.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90124067
Type of charge	· Immovable property · Book debts
Particular of charge holder	State Bank of India, Industrial Finance Branch, Raj Bhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India Email: sbi.09103@sbi.co.in
Nature of instrument creating charge	1) Supplemental Agreement Of Hypothecation Of Goods And Assets For Increase In The Overall Limit 2) Supplemental Agreement Of Loan For Increase In The Overall Limit 3) 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 4) Letter Regarding The Grant Of Individual Limits Within The Overall Limit 5) Supplemental Deed Of Guarantee For Increase In Overall Limit.
Date of instrument Creating the charge	23.08.2011
Amount secured by the charge	Rs. 526.700 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit: 5.25 % above Base Rate; effective rate 12.75% p.a. Terms of Repayment Repayable on demand/Renewable every 12 months Margin Cash Credit: Raw Material Domestic : 25% Imported : -- SIP : 25% FG : 25% Receivables : 40% (Cover Period) : 90 Days LC(Domestic) : 15% LC (Foreign) : 12% BG : 12 Extent and Operation of the charge Primary Security: Hypothecation of all chargeable current assets of the Company. Collateral Security: (i) Extension of Charge on fixed assets of the Company. (ii) Extension of EM on three storeyed house at plot no.157, Vivekananda Nagar Colony,Kukatpally, Hyderabad Belonging to Mrs. A. Ratna Kumari. Guarantee: Personal Guarantee of the Promoter directors as under 1. Mr. A. Venkata Reddy, 2. Mrs. A. Ratna Kumari. Others CC 19.00 EPC (12.00) BD (12.00) TL III 3.20 TL IV 3.20 TL V 2.95 TL VI 6.00 LC 10.00 BG 1.50 STAND BY LIMIT 6.00 Forward contract 0.82 TOTAL 52.67
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary Security: Hypothecation of all chargeable current assets of the Company. Collateral Security: Extension of Charge on fixed assets of the Company. ( Extension of EM on three storeyed house at plot no.157, Vivekananda Nagar Colony, Kukatpally, Hyderabad Belonging to Mrs. A. Ratna Kumari. Guarantee: Personal Guarantee of the Promoter directors as under 1. Mr. A. Venkata Reddy, 2. Mrs. A. Ratna Kumari.
Date of instrument modifying the charge	22.10.2009
Particulars of the present modification	Limits Enhanced From Rs. 406.700 millions To Rs. 526.700 millions.

Fixed Assets

• Land Factory Buildings
• Plant and machinery
• Electrical Works
• Office equipments
• Lab Equipments
• Furniture and Fixtures
• Computers
• Vehicles
• Capital Work in Progress
• R and D 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 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.53.84
UK Pound	1	Rs.86.72
Euro	1	Rs.69.17

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.