MIRA INFORM REPORT

Report Date :

06.11.2012

IDENTIFICATION DETAILS

Name :	WESTERN DRUGS LIMITED (w.e.f. 17.04.2010)
Formerly Known As :	WESTERN DRUGS PRIVATE LIMITED
Registered Office :	F-271 A, Mewar Industrial Area, Madri, Udaipur – 313 001, Rajasthan
Country :	India
Financials (as on) :	31.03.2012 (Summarised Figures)
Date of Incorporation :	20.04.1989
Com. Reg. No.:	17-004914
Capital Investment / Paid-up Capital :	Rs.41.485 millions
CIN No.: [Company Identification No.]	U24232RJ1989PLC004914
TAN No.: [Tax Deduction & Collection Account No.]	JDHW00033F
PAN No.: [Permanent Account No.]	AAACW2424P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of bulk drugs and pharmaceuticals including vitamin pp, niacin, nicotinic acid, niacinamide, and nicotinamide.
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 2170000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It has recorded some growth in its sales turnover during 2012. Trade relations are reported as decent. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Factory :	F-271 A, Mewar Industrial Area, Madri, Udaipur – 313 001, Rajasthan, India
Tel. No.:	91-294-2490976/ 3293915
Fax No.:	91-294-2490676
E-Mail :	infoudaipur@westerndrugs.com tcsindia@sify.com
Website :	http://www.westerndrugs.com
Head Office :	321, Tantia - Jogani Industrial Premises, Co-Operative Society Limited, Sitaram Mills Compound, J.R. Boricha Marg, Mumbai - 400 011, Maharashtra, India
Tel. No.:	91-22-61232000
Fax No.:	91-22-61232030
Research and Development Centre :	F-28 and 29, Mewar Industrial Area, Madri, Udaipur – 313 001, Rajasthan, India

DIRECTORS

As on 15.09.2012

Name :

Mr. Bhagwati Lal Dagliya

Designation :

Managing Director

Address :

87, Ganesh Nagar, Kalkamata Road, Udaipur, Rajasthan, India

Date of Birth/Age :

11.11.1951

Qualification :

M. Com

Date of Appointment :

20.04.1989

DIN No.:

00302082

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24232RJ1989PLC004914	WESTERN DRUGS LIMITED	Managing director	20/04/1989	20/04/1989	-	Active	NO
2	U24232RJ1998PTC015016	RANKA ORGANICS PRIVATE LIMITED	Managing director	12/12/2011	27/09/2011	-	Active	NO

Name :

Mr. Mahavir Chunni Lal Ranka

Designation :

Director

Address :

4, Prena Vidhya Marg, Udaipur, Rajasthan, India

Date of Birth/Age :

15.06.1954

Qualification :

Graduate

Date of Appointment :

27.09.1991

DIN No.:

00337553

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24232RJ1989PLC004914	WESTERN DRUGS LIMITED	Director	27/09/1991	27/03/1991	-	Active	NO
2	U24232RJ1998PTC015016	RANKA ORGANICS PRIVATE LIMITED	Director	27/09/2011	03/08/1998	-	Active	NO
3	U52190RJ2006PTC022276	KHETAJI IMPORTS PRIVATE LIMITED	Director	24/03/2006	24/03/2006	-	Strike off	NO

Name :

Mr. Mishri Lal Lodha

Designation :

Director

Address :

26-27 Pratap Colony, Ganesh Nagar, Kalka Mata Road, Udaipur, Rajasthan, India

Date of Birth/Age :

01.03.1952

Qualification :

B.Sc

Date of Appointment :

20.04.1989

DIN No.:

00302054

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24232RJ1989PLC004914	WESTERN DRUGS LIMITED	Director	20/04/1989	20/04/1989	-	Active	NO
2	U24232RJ1998PTC015016	RANKA ORGANICS PRIVATE LIMITED	Director	27/09/2011	27/09/2011	-	Active	NO

Name :

Mr. Dilip Bakhtwar Ranka

Designation :

Director

Address :

111/19, Thakudwara Road, Mumbai, Maharashtra, India

Date of Birth/Age :

25.09.1966

Qualification :

MBA

Date of Appointment :

27.09.1991

DIN No.:

00337719

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U99999MH1957PTC010856	TRANSMISSIONS PRIVATE LIMITED	Director	01/07/1989	01/07/1989	-	Active	NO
2	U24232RJ1989PLC004914	WESTERN DRUGS LIMITED	Director	27/09/1991	27/09/1991	-	Active	NO
3	U24232RJ1998PTC015016	RANKA ORGANICS PRIVATE LIMITED	Director	27/09/2011	03/08/1998	-	Active	NO

KEY EXECUTIVES

Name :	Mrs. Aditee Shekdar
Designation :	Manager - Marketing
E-Mail :	ashekdar@westerndrugs.com
Name :	Mr. V.M. Ranka
Designation :	Quality Assurance In- Charge
E-Mail :	vranka@westerndrugs.com
Name :	Mr. Hiren Mehta
Designation :	Export /Import Executive
E-Mail :	hmehta@westerndrugs.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 15.09.2012

Names of Shareholders	No. of Shares
Bhagwati Lal Dagliya	214600
Mishri Lal Lodha	378510
Bhagwati Devi Lodha	148240
Maheshwari E. Dora	375260
Vikram M. Ranka	168750
Mahavir C. Ranka	65550
Nikhil M. Ranka	165640
Hitesh J. Ranka	166500
Anil J. Ranka	276760
Dilip B. Ranka	56000
Manish J. Ranka	111700
Sanjay J. Ranka	4040
Ridhi D. Ranka	150000
Riya D. Ranka	143650
Sulochna B. Ranka	431780
Bakhtawar C. Ranka	100000
Usha M. Ranka	642810
Neena D. Ranka	236570
Chandresh Dagliya	31215
Chandra B. Dagliya	280935
Total	4148510

As on 15.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	91.00
Other top fifty shareholders	9.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of bulk drugs and pharmaceuticals including vitamin pp, niacin,
nicotinic acid, niacinamide, and nicotinamide.

Products :

Item Code No. (ITC Code)	293600
Product Description	Niacin
Item Code No. (ITC Code)	293600
Product Description	Niacinamide

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	31.03.2011
Bulk Drugs and By Product
A. Licensed Capacity	N.A.
B. Installed Capacity	7500 M.T.
C. Actual Production (Including By product)	23319
Conversion for Job	136

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Citibank N.A., DLF Square Building, M Block, Jacaranda Marg, DLF City Phase - II, Gurgaon – 122 002, Haryana, India

v Citibank N.A., Trent House, 2^nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

v Allahabad Bank, Mumbai, Maharashtra, India

v Allahabad Bank, Udaipur, Rajasthan, India

v HDFC Bank Limited, Mumbai, Maharashtra, India

v HDFC Bank Limited, Udaipur, Rajasthan, India

v State Bank of Bikaner and Jaipur

Facilities :

Secured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	3.750	22.083
Working capital loans banks secured	93.759	86.077
Total	97.509	108.160

Unsecured Loans	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loans directors unsecured	1.128	0.421
Deposits related parties unsecured	43.080	15.523
Total	44.208	15.944

Banking Relations :	--
Auditors :
Name :	Om Prakash S. Chaplot and Company Chartered Accountants
Address :	66, Panchsheel Marg, 1^st Floor, Near Town Hall, Udaipur – 313 001, Rajasthan, India
Tel. No.:	91-294-2420177/ 2414277
Fax No.:	91-294-2412985
E-Mail :	opchaplot@sify.com
Income-tax PAN of auditor or auditor's firm :	AABFO0980E

CAPITAL STRUCTURE

As on 15.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4148510	Equity Shares	Rs.10/- each	Rs.41.485 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SUMMARISED FIGURES

PARTICULARS	31.03.2012
Share Capital	41.485
Reserves & Surplus	501.042
Secured Loans	188.961
Unsecured Loans	112.823
Fixed Assets [Net Block]	456.613
Investment	80.030
Net Current Assets	251.081
Turnover	1616.441
Total Expenditure	1430.498
Profit Before Tax	198.253
Profit After Tax	133.855

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		41.485	41.485	43.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		391.295	319.192	262.607
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		432.780	360.677	305.607
LOAN FUNDS
1] Secured Loans		97.509	108.160	98.238
2] Unsecured Loans		44.208	15.944	28.240
TOTAL BORROWING		141.717	124.104	126.478
DEFERRED TAX LIABILITIES		34.920	25.157	19.906
TOTAL		609.417	509.938	451.991
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		287.436	223.405	188.302
Capital work-in-progress		20.682	0.000	0.000
INVESTMENT		0.030	0.030	0.030
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	172.270	153.080	167.500
	Sundry Debtors	162.514	139.618	106.280
	Cash & Bank Balances	11.889	5.729	10.952
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	104.627	84.459	82.503
Total Current Assets		451.300	382.886	367.235
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	90.073	44.629	33.327
	Other Current Liabilities	1.720	1.445	1.467
	Provisions	58.238	50.309	68.782
Total Current Liabilities		150.031	96.383	103.576
Net Current Assets		301.269	286.503	263.659
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		609.417	509.938	451.991

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	1384.077	1223.216	1089.407
		Other Income	19.863	9.052	3.058
		TOTAL (A)	1403.940	1232.268	1092.465
Less	EXPENSES
		Consumption materials changes inventories	1094.364	976.422	850.815
		Manufacturing service costs	36.675	31.224
		Employee related expenses	42.360	31.834
		Administrative selling other expenses	37.338	37.313
		TOTAL (B)	1210.737	1076.793	850.815
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		193.203	155.475	241.650
Less	INTEREST FINANCIAL EXPENSES (D)		9.774	11.199	40.322
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		183.429	144.276	201.328
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.264	11.551	10.117
	PROFIT BEFORE TAX (E-F) (G)		169.165	132.725	191.211
Less	TAX (H)		55.943	45.573	66.104
	PROFIT AFTER TAX (G-H) (I)		113.222	87.152	125.107
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		308.392	250.096	179.298
Less	Prior Period Adjustment		NA	0.372	0.000
	APPROPRIATIONS
		Transferred to General Reserve	NA	8.715	12.511
		Dividend	35.262	16.897	17.200
		Tax on Dividend	5.857	2.872	2.923
	BALANCE CARRIED TO THE B/S		369.172	308.392	271.771
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB Basis	596.457	539.959	486.928
	TOTAL EARNINGS		596.457	539.959	486.928
	IMPORTS
		Raw Materials	NA	105.652	211.980
	TOTAL IMPORTS		NA	105.652	211.980
	Earnings Per Share (Rs.)		27.28	21.00	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.06	7.07	11.45
Net Profit Margin (PBT/Sales)	(%)	12.22	10.85	17.55
Return on Total Assets (PBT/Total Assets}	(%)	22.90	21.89	34.42
Return on Investment (ROI) (PBT/Networth)		0.39	0.37	0.63
Debt Equity Ratio (Total Liability/Networth)		0.67	0.61	0.75
Current Ratio (Current Asset/Current Liability)		3.01	3.97	3.55

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 four years	Yes
12) Profitability for last four 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 involved in	--
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
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

AS ON 31.03.2011

OPERATIONS

The Company continued to see growth in the financial year 2010-11. The turnover of the Company registered an increase of 13.99% from Rs.1228.817 millions to Rs.1400.709 millions. The profit after tax for the year 2010 - 2011 is Rs.113.222 millions compared to Rs.87.152 millions earned in the year 2009 - 2010. Increase in the profit is due to the better capacity utilization and better strategic planning of materials, production planning and marketing.

EXPANSION IN EXISTING UNIT

Considering the increase in the demand of Niacin and Niacinamide, the company has taken steps to increase the production capacity of Niacin and Niacinamide by installing balancing equipments and construction of additional Building for Niacinamide. Project is under process.

REDUCTION IN COST OF PRODUCTION

Considering the competition over price in international and national market, the company has decided to reduce cost of Production by way of reduction in fuel cost. For this purpose, the company has purchased additional Land nearby the existing Unit to put coal fire Boiler and put plant to further process of bye product for value addition.

INVESTMENT IN RANKA ORGANICS PRIVATE LIMITED, UDAIPUR

The company has acquired 100% shares of Ranka Organics Private Limited, Udaipur by investing in the 500000 equity shares of Rs.10.00 each at a consideration of Rs.120.00 per share. The Board of Directors appraised that it will be beneficial for the company to acquire a larger market share in their common area of operations. The company called the Board of Director’s Meeting on 4^th April, 2011 to authorize the Board for the acquisition of shares of Ranka Organics Private Limited.

RESERCH AND DEVELOPMENT CENTRE

The company has in the process of establishing a New division in the name of “Research and Development Centre” at its Office at F-28 and 29, Mewar Industrial Area, Madri, Udaipur for the development, research and marketing of the new products.

CHANGE IN THE NAME OF COMPANY

The company is converted into Public Limited Company and the name of the company is changed to “Western Drugs Limited”. The Registrar of Company has given the permission of change and issued the new Incorporation Certificate with effect from 17^th April, 2010.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24232RJ1989PLC004914
Name of the company	WESTERN DRUGS LIMITED
Address of the registered office or of the principal place of business in India of the company	F-271 A, Mewar Industrial Area, Madri, Udaipur – 313 001, Rajasthan, India E-Mail: accountsudaipur@westerndrugs.com
This form is for	Modification of charge
Charge identification number of the modified	90074245
Type of charge	Immovable Property
Particular of charge holder	Citibank N.A., DLF Square Building, M Block, Jacaranda Marg, DLF City Phase - II, Gurgaon – 122 002, Haryana, India E-Mail: vlaxman@vsnl.com
Nature of description of the instrument creating or modifying the charge	Memorandum of Entry.
Date of instrument Creating the charge	26.03.2012
Amount secured by the charge	Rs.318.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest to be charged at such rate/s as may be determined by the Bank from time to time. Terms of Repayment: Working capital facility shall be repayable On demand. Term Loan shall be repayable in suitable installments. Margin: As may be stipulated by the Bank from time to time. Extent and Operation of the charge: The Company accorded and gave oral consent to Citibank NA, Mumbai being the Security Trustee (for and on behalf of Citibank NA, Bahamas) to continue to hold and retain the title deeds (by way of constructive delivery) in respect of its immovable properties as security for repayment of credit facilities of Rs.318.000 millions (including INR 70.000 millions), with interest, liquidated damages, costs, charges and expenses and all other money whatsoever due and payable thereon. Others: The mortgage herein created in favour of Security Trustee to secure ECB Loan of INR 70.000 millions shall rank pari passu in favour of Citibank NA, Mumbai for its working capital facilities of Rs.245.000 millions, without any priority or preference of one over the other.
Short particulars of the property charged	Equitable Mortgage on property including land and building situated at Unit No.213, in Creative Industrial Centre Premises Co-operative Society Limited, NM Joshi Marg, Parel, Mumbai. Equitable Mortgage on property including land and building situated at Plot No.F-28 and F-29, Mewar Industrial Area, Udaipur Rajasthan. Equitable Mortgage on property including land and building situated at Plot no. G-5, G-6, G-7, G-8 A, G-9, G-10 B, Mewar Industrial Area, Udaipur, Rajasthan. Equitable Mortgage on property including land and building situated at Plot No.F-271 (A), Mewar Industrial Area, Udaipur, Rajasthan.
Date of latest modification prior to the present modification	03.10.2011
Particulars of the present modification	The charge shall now stand increased form Rs.248.000 millions to Rs.318.000 millions (including INR 70.000 millions equivalent to US $) in favour of the Bank, against the security of Immovable properties including land and building situated at Rajasthan and Mumbai.

FIXED ASSETS:

v Land

v Factory Building

v Other Building

v Plant and Machinery

v Furniture and Fixture

v Vehicle

v Office Equipment

v Computer

v Office Building - Mumbai

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.54.07
UK Pound	1	Rs.86.69
Euro	1	Rs.69.37

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	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.