MIRA INFORM REPORT

Report Date :

24.05.2012

IDENTIFICATION DETAILS

Name :	JHAVERI FLEXO INDIA LIMITED JHAVERI FLEXI LAMINATE PRIVATE LIMITED AMALGAMATED WITH JHAVERI FLEXO INDIA LIMITED
Registered Office :	Gut No.74, Farola, Paithan Road, Aurangabad – 431105, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.04.1985
Com. Reg. No.:	11-035938
Capital Investment / Paid-up Capital :	Rs.125.803 Millions
CIN No.: [Company Identification No.]	L25209MH1985PLC035938
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Laminate, PPC Films, Stretch etc.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 2300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has incurred some losses in the current year. However, financials of the company appears to be good. 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. Note: Jhaveri Flexi Laminate private Limited amalgamated with Jhaveri Flexo India Limited in the year 2006.

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

INFORMATION PARTED BY

Name :	Mr. Anil Somani
Designation :	Finance Manager
Contact No.:	91-2431-251664
Date :	22.05.2012

LOCATIONS

Registered Office/ Factory 1 :	Gut No.74, Farola, Paithan Road, Aurangabad – 431105, Maharashtra, India
Tel. No.:	91-2431-251663/ 664
Fax No.:	91-2431-251661
E-Mail :	somani@jhaveriflexo.com ashish@jhaveriflexo.com
Website :	http://www.jhaveriflexo.com
Location :	Owned
Corporate Office :	9^th and 10^th Floor, Gold Crest, 10^th Road, J.V.P.D Scheme, Near HSBC Bank, Vile Parle (West), Mumbai – 400049, Maharashtra, India
Tel. No.:	91-22-61512121
E-Mail :	rupal.pandya@jhaveriflexo.com
Factory 2:	Dapada, Silvassa Factory Survey No. 135/2, Village Dapada, Khanvel Road, Silvassa – 396 230. U.T. OF D.N.H.
Tel No.:	91-260-2699084/ 184
Factory 3:	Luhari, Silvassa Factory 188/2/1, Village Luhari, Opposite Govt Tourism Resort, Silvassa – 396 230, U.T OF D.N.H.
Tel No.:	91-2602993437
European Office :	4 Sydenham Avenue London SE26 6UH
Tel No.:	+44 20 8776 8911
E-Mail :	europeansales@jhaveriflexo.com
USA Office :	5208,Downing Creek Drive, Charlotte 28269, USA
Tel No.:	1-704-509-1677
E-Mail :	niravintl@hotmail.com
Indian Sales Offices :	Located at: · Mumbai · Chennai · Ahmedabad · Delhi · Aurangabad · Hyderabad · Bangalore · Kolkata

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. Rajul Sandeep Jhaveri
Designation :	Chairman
Name :	Mr. M K Sinha
Designation :	Director
Name :	Mr. Dinesh Shah
Designation :	Director
Name :	Mr. Yogen Lathia
Designation :	Director
Name :	Mr. Vijay D. Ajgaonkar
Designation :	Director
Name :	Mr. Ranjan P. Gupta
Designation :	Director
Name :	Mr. Sandeep Jhaveri
Designation :	Managing Director
Name :	Mr. Krishna Kumqr Sadani
Designation :	Joint Managing Director
Name :	Mr. Abhiwhej Jhaveri
Designation :	Whole Time Director
Name :	Mrs. Mrunal Jhaveri
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Ashish Gupta
Designation :	Company Secretary
Name :	Mr. Anil Somani
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2011)

Names of Category	No. of Shares	Percentage of Holding
Promoters
- Indian Promoters	18867948	74.99
- Foreign Promoters	--	--
Mutual Funds and UTI	50000	0.20
Banks, Financial Institutions, Insurance companies (Central/ State Government/ No-Government Institutions)	18400	0.07
FIIs	--	--
Private Corporate Bodies	2243002	8.91
Indian Public	2901028	11.53
NRIs/ OCBs	1080261	4.30
Any Others	--	--
Total	25160639	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Laminate, PPC Films, Stretch etc.

Products :

Products Description	Item Code No.
Lamination Films	39203020
Flexible Laminates	39202090

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Installed Capacity
Farola Unit	12420 Mt
Dapada Unit	12000 Mt
Luhari Unit	7500 Mt

Particulars	Unit	Actual Production
PVC Film	Rolls	1346853
Masking Film	Kg.	832635
Stretch Film	Kg.	1257548
Lamination Film	Kg.	2149689
CPP Film	Kg.	2546167
Laminates	Kg.	8713501

GENERAL INFORMATION

Suppliers :

· Reliance

· Ititachi

· Exon

Customers :

Wholesalers and Retailers

· Britannia

· Cadbury

· GULF

· Cargill

· Dabur

· Indian Oil

· ITC Limited

· JSW

· Nestle

· Hindustan Unilever Limited

· Videocon

· General Mills

· Tata Chemicals

· PepsiCo

No. of Employees :

500 (Approximately)

Bankers :

· The Saraswat Co-operative Bank Limited

Aurangabad, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Term Loan
From The Saraswat Co-operation Limited (Secured by the first mortgage of fixed assets of all three units present and future floating charges on all other assets)	197.553	87.247
Vehicles Loan
From ICICI Banking Corporation Limited	0.175	0.416
From HDFC Bank	0.000	0.057
From Tata Finance	0.016	0.150
From SCBL Bank	11.361	13.005
(Secured by the Mortgage of Vehicle)
Working Capital Loan
From The Saraswat Co-operative Bank Limited CC	343.684	236.851
From The Saraswat Co-operative Bank Limited BP	0.000	1.093
(Secured by hypothecation of Raw Materials, Stock in process, finished goods and goods in transit)
Total	552.789	338.819
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	209.469	119.769
From Inter Company Deposits	0.000	0.000
From Others	0.000	95.506
From RCB	61.245	117.534
Sales Tax Defferment Liability	84.159	74.609
Total	354.873	407.418

Banking Relations :	--
Auditors :
Name :	Bhatter and Company Chartered Accountant
Address :	Mumbai, Maharashtra, India
Associates Company :	· Wellworth Industries Limited · R. S. Jhaveri Steel and Company Private Limited. · Sangam Press Private Limited · Mars Fincom Private Limited · R.S. Jhaveri and Company

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.5/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25160639	Equity Shares	Rs.5/- each	Rs.125.803 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		125.803	125.803	125.803
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		441.057	447.303	444.170
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		566.860	573.106	569.973
LOAN FUNDS
1] Secured Loans		552.789	338.819	328.296
2] Unsecured Loans		354.873	407.418	478.008
TOTAL BORROWING		907.662	746.237	806.304
DEFERRED TAX LIABILITIES		16.175	9.412	2.199
TOTAL		1490.697	1328.755	1378.476
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		856.811	795.099	820.692
Capital work-in-progress		73.337	125.013	129.778
INVESTMENT		0.050	0.050	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	463.886	347.638	255.758
	Sundry Debtors	327.442	255.386	263.234
	Cash & Bank Balances	52.161	26.708	40.153
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	101.623	86.078	120.367
Total Current Assets		945.112	715.810	679.512
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	359.293	289.482	240.846
	Other Current Liabilities	27.064	14.072	10.331
	Provisions	3.750	10.989	9.537
Total Current Liabilities		390.107	314.543	260.714
Net Current Assets		555.005	401.267	418.798
MISCELLANEOUS EXPENSES		5.494	7.326	9.158
TOTAL		1490.697	1328.755	1378.475

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2418.915	1867.743	1692.250
		Other Income	12.119	14.477	3.143
		Profit on Sale of Fixed Assets	0.214	1.436	0.000
		TOTAL (A)	2431.248	1883.656	1695.393
Less	EXPENSES
		Increase/ (Decrease) in Stock	13.995	(33.674)	(12.090)
		Raw Materials Consumed	1768.923	1371.788	1274.070
		Manufacturing and Other Expenses	318.051	253.080	217.343
		Payments to Employees	115.141	90.919	65.327
		Selling and Distribution Expenses	53.248	51.507	39.696
		Loss on sale of fixed assets	0.000	0.000	0.172
		Share Issue Expenses Written off	1.832	1.830	0.000
		TOTAL (B)	2271.190	1735.450	1584.518
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		160.058	148.206	110.875
Less	FINANCIAL EXPENSES (D)		62.658	42.513	25.927
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		97.400	105.693	84.948
Less/ Add	DEPRECIATION/ AMORTISATION (F)		96.617	84.337	66.473
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		0.783	21.356	18.475
Less	TAX (H)		7.029	10.864	8.454
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(6.246)	10.492	10.021
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		117.178	114.045	111.383
Less	APPROPRIATIONS
		Proposed Dividend	0.000	6.290	6.290
		Dividend Distribution Tax	0.000	1.069	1.069
	BALANCE CARRIED TO THE B/S		110.932	117.178	114.045
	EARNINGS IN FOREIGN CURRENCY		55.640	35.806	14.136
	IMPORTS
		Raw Materials	675.474	354.902
		Stores & Spares	4.165	1.844	499.682
		Plant and Machinery	0.676	7.608
	TOTAL IMPORTS		680.315	364.354	499.682
	Earnings Per Share (Rs.)		(0.25)	0.42	--

Particulars	31.03.2012
Sales Turnover (Approximately)	3000.000

Expected Sales (2012-13): Rs.3500.000 Millions

The above information has been parted by Mr. Anil Somani.

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	596.110	723.120	726.920
Total Expenditure	557.800	662.070	665.400
PBIDT (Excl OI)	38.310	61.050	61.520
Other Income	0.780	0.610	0.430
Operating Profit	39.090	61.660	61.950
Interest	27.180	26.900	33.420
Exceptional Items	0.000	0.000	0.000
PBDT	11.910	34.760	28.530
Depreciation	25.760	26.090	30.700
Profit Before Tax	(13.850)	8.670	(2.170)
Tax	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(13.850)	8.670	(2.170)
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	(13.850)	8.670	(2.170)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(0.26)	0.56	0.59
Net Profit Margin (PBT/Sales)	(%)	0.03	1.14	1.09
Return on Total Assets (PBT/Total Assets}	(%)	0.04	1.41	1.23
Return on Investment (ROI) (PBT/Networth)		0.00	0.04	0.03
Debt Equity Ratio (Total Liability/Networth)		2.29	1.85	1.87
Current Ratio (Current Asset/Current Liability)		2.42	2.28	2.61

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	No

NOTICE

Trading members of the Exchange are hereby informed that the under mentioned new securities of Jhaveri Flexo India Limited (Scrip Code: 507796, ISIN No. INE114C01025) are listed and permitted for trading on the Exchange with effect from Wednesday, January 10, 2007.

Securities

1,36,08,000*

Equity Shares of Rs.5/- each issued to the shareholders of erstwhile M/s. Jhaveri Flexi Laminate Private Limited pursuant to the scheme of amalgamation of the Company. Dist. Nos. 9038516 to 22646515

* These shares are ranking pari-passu with the existing equity shares of the company.

2. Trading members may please note that 1,36,08,000 equity shares issued pursuant to the scheme of amalgamation are under lock-in as per the details given below and therefore these shares would not be good delivery in the market till then. The company has confirmed that the 4,24,000 equity shares are issued in physical form and the relevant share certificates have been enfaced with a stamp regarding its non-transferability. The remaining 1,31,84,000 equity shares are issued in demat form for which necessary corporate action has been executed to have lock-in period marked in the depository’s record. The details of non-transferable shares are given hereinbelow:]

Number of Shares	Details of Dist. Nos.	Date upto which lock in
4,24,000 - Physical	9038516 to 9462515	20.01.2010
1,31,84,000 - Demat	9462516 to 22646515	20.01.2010
1,36,08,000	Total

Further, it may also be noted that the existing 29,86,230 equity shares held in demat mode are also under lock-in till January 20, 2010.

3. The brief particulars of the Scheme of Amalgamation are as mentioned below:

a) The Scheme of Amalgamation of the company was approved by the Hon'ble High Court of Bombay vide its Order dated September 01, 2006.

b) Appointed Date: April 1, 2005

c) Effective Date: September 27, 2006

d) Date of Allotment: October 19, 2006

e) Exchange Ratio – For every 1 equity share of Rs.10/- each held in the transferor company, viz; Jhaveri Flexi Laminate Private Limited, 8 equity shares of Rs.10/- each of the company has been issued.

4. The company's financial year ends on 31^st March.

5. In case trading members require any clarification on the subject matter of the notice, they may please contact the undersigned on 22721233/34 on Extn. No.8281 or Ms. Anupam Jha on Extn. No.8133.

Rajesh Gandhi

Manager - Dept. of Corporate Services

Tuesday, January 09, 2007

PERFORMANCE:

Turnover net of excise during the year ended on 31^st March 2011 was Rs.2418.915 Millions increased by 29.51% as against Rs.1867.743 Millions in previous year, owing to increase in operational and financing cost upon getting installed and commissioning of all new machines and lower capacity utilization of new machines the net profit was in minus at Rs.6.246 Millions for the year ended on 31.03.2011 as against net profit of Rs.10.492 Millions in previous year.

The Company is achieving sound growth rate in export. During the year export turnover was Rs.55.640 Millions registering growth of 55.39% compare to previous year. Company's products specially Laminates, CPP, PVC and Stretch film have been stabled in overseas market. The Company is forecasting new heights in export turnover during the current year.

VOLUNTARY DELISTING:

The Company has received a requisition letter dated 9th May 2011 from Mr. Sandeep Jhaveri on behalf of himself and other Promoters/Promoter Group, conveying their intention to voluntarily delist the Equity Shares of the Company from both Stock Exchanges i.e. The Bombay Stock Exchange Ltd. (BSE) and The Calcutta Stock Exchange Limited (CSE) in compliance with the SEBI (Delisting of Equity Shares) Regulations 2009 and any other rules, regulations, act related thereto ("Delisting Proposal"). In view of above the approval of the Shareholders was sought by means of Postal Ballot for delisting of the Equity Shares of the Company from BSE and CSE.

The ratio of total valid votes cast by public shareholders in favour of the proposed resolution to the valid votes cast by public shareholders against it was, approximately 54.63: 1. Accordingly the Director declared the results on 01st June 2011 that the special resolution for delisting of Equity Shares of the Company as set out in notice dated 10.05.2011 has been approved and passed by requisite majority as required under Regulation 8 of the SEBI Delisting Regulations. After getting approval from Stock Exchanges and completions of other procedures the promoters will send offer letter to the public shareholders for purchasing their shares.

MANAGEMENT DISCUSSION AND ANALYSIS:

The performance of the company during the year 2010-11 was below the expectation. The company could not achieve desired results during the year under review due to under utilization of installed capacity of new plants and teething troubles in implementation of expansion plans.

The Company is focusing to utilize maximum installed capacity as against current 60-65% utilization and always searches the ways to cut the cost of production so as to achieve higher rate of return. Moving forward towards this the company has recently imported one High Vacuum Metalizer from German manufacturer to do metalizing on laminates/CPP Film in-house so as to save cost involved on job work and can execute orders of metalizing of other customers too.

Indian packaging industry is growing with rapid rate. The large growing middle class, liberalization, demand for ready to eat food products and organized retail sector are the catalysts to growth in packaging. There are tremendous scopes to develop new and advanced product variants, new applications which suit to the customers'' requirements and add value edition for their products.

Rising inflationary pressures, high volatility in raw material prices, higher cost of finance and growing competition from organized and un-organized players are the key factors which can adversely affect the business and financial conditions of the company.

Forecasting the above risk factors, your directors had decided long back that through increase in sales turnover and quality of products the company not only can mitigate the above risk but it will also ensure to grow the top and bottom line and therefore embarked upon the expansion cum diversification plans in the year of 2007-08. Long associated big and diversified customers, recently installed state of art plants around in all three units, well spread and diversified product range, sustained growth story of Indian economy are some of the strong favorable ingredients which ensure that your company to move ahead on its growth path in the ensuing years.

CONTINGENT LIABILITY (AS ON 31.03.2011)

A. Guarantees given by bank on behalf of the Company is for Rs.7.097 Millions.

B. In respect to Assessment Year 2001-02, there is a IT demand u/s 271 (1) for Rs.4.361 Millions on the erstwhile Jhaveri Flexi Laminate Private Limited. The company has appealed with the Income tax Appellate Tribunal.

C. In respect to Assessment Year 2003-04, there is a IT demand against assessment u/s 154 of Rs.1.166 Millions on the erstwhile Jhaveri Flexi Laminate Private Limited. The company has appealed with the Income Tax Appeallate Tribunal.

D. In respect to Assessment Year 2005-06, there is a IT demand against assessment u/s 143 (3) of Rs.2.883 Millions on the erstwhile Jhaveri Flexi Laminate Private Limited. The company has appealed with the Income Tax Appeallate Tribunal.

TRADE REFERENCE:

· Tata Chemicals

· PepsiCo

· Reliance

· Ititachi

· Exon

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Trade Mark

· Computer Equipment

· Office Equipment

WEBSITE DETAILS:

INTRODUCTION

Jhaveri is a manufacturer of high quality flexible food packaging. The manufacturing facilities in India they supply major global brands, both domestically and internationally.

They make a wide range of products, from highly sophisticated multilayered machine, ready pouches to basic films and wraps. Jhaveri is an exceptionally innovative company, always striving for better technical solutions at ever lower prices.

Jhaveri is a $50 million turnover publicly quoted company that has enjoyed rapid growth in recent years. This is based on their passionate commitment to quality and the enduring long term partnership that they have developed with all the customers.

COMPANY PROFILE

Jhaveri Flexo India Limited a professionally managed organization has developed its core competence in the manufacture of superior quality and customised flexible packaging solutions. Empowered with sophisticated technology and offering excellent services we started manufacturing in the year 1998, under the dynamic leadership of Mr. Sandeep Jhaveri.

A strategic diversification in a rapidly growing flexible packaging industry. Since then Jhaveri Flexo India Limited has indeed created benchmarks of excellence in the packaging industry by going in for a reverse merger with Flexo Film Wraps India Limited. Established in 1986, Flexo Film Wraps India Limited’s goal has been simple and straightforward - to be a dominant player in the Indian flexible packaging materials arena.

This emphasis has enabled Flexo Film to emerge as one of India's leading flexible packaging companies, with a strong focus on product development and total customer satisfaction.

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.55.93
UK Pound	1	Rs.88.15
Euro	1	Rs.70.87

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

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	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		42

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.