MIRA INFORM REPORT

Report Date :

08.11.2012

IDENTIFICATION DETAILS

Name :	REGENT GRANITO (INDIA) LIMITED
Registered Office :	C - 304, Ganesh Meridian, Opposite Amirraj Farm, Near Gujarat High Court, S. G Highway, Ahmedabad - 380061, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.10.2003
Com. Reg. No.:	04-043039
Capital Investment / Paid-up Capital :	Rs. 84.000 millions
CIN No.: [Company Identification No.]	U26933GJ2003PLC043039
TAN No.: [Tax Deduction & Collection Account No.]	AHMR02678E/ AHMR02372G
PAN No.: [Permanent Account No.]	AACCR5441B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Vitrified Tiles.
No. of Employees :	Information declined by management

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 1022000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The latest financials are not made available. However, as per previous years (2011) record, the company is found to be performing well. There appears increase in its sales turnover over years. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct. The company can be considered 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A3 (Short term Bank Facilities)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	16.03.2012

Rating Agency Name	CARE
Rating	BBB- (Long term Bank Facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	16.03.2012

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.

INFORMATION DECLINED

MANAGEMENT NON – COOPERATIVE.

LOCATIONS

Registered Office/ Factory 1 :	C - 304, Ganesh Meridian, Opposite Amirraj Farm, Near Gujarat High Court, S. G Highway, Ahmedabad - 380061, Gujarat, India
Tel. No.:	91-79-40027286/ 40035429/ 40027286 91-2772-226247
Fax No.:	91-79-40035430 91-2772-226248
E-Mail :	madendrapatel_regent@yahoo.com reg_bank@yahoo.com rgil_account@yahoo.com info@regentgranito.com regent_ho@yahoo.com regent_tejas@yahoo.com
Website :	http://www.regentgranito.com
Head Office / Factory 2 :	Block No 355, Opposite GEB Substation, Near Sabar Dairy At and P.O. Hajipur, Himatnagar N.H. No.8, District Sabarkantha – 383 120, Gujarat, India
Tel. No.:	91-2772-226247 / 48 / 226466 / 67 / 226377
Fax No.:	91-2772-226247/ 226248 / 226249 / 226468
Email :	sales@regentgranito.com
Area :	24 Acre
Location :	Owned
Branch Office :	Located at: · Ahmedabad · Indore · Bangalore · Jaipur · Bhuvneshwar · Kolkata · Cochin · Lucknow · Calicut · Mumbai · Chennai · Mohali · Coimbatore · Nagpur · Delhi · Pune · Dehradun · Secundrabad · Goa · Vijaywada · Hubli

DIRECTORS

As on 29.09.2012

Name :	Mr. Kacharabhai Rajabhai Patel
Designation :	Managing Director
Address :	At – Rampur Nava, Post Ganthiyol, Ta-Idar, District – Sabarkantha, Rampur Nava – 383 410, Gujarat, India
Date of Birth/Age :	15.04.1966
Date of Appointment :	01.09.2009
Qualification	S.S.C
PAN No.:	AFZPP6291G
DIN No.:	00075029
Name :	Mr. Tejas Sureshchandra Gandhi
Designation :	Whole Time Director
Address :	C – 202, Chinmay Tower, Abhishek Row House, Vishrnu Bunglow, Memnagar, Ahmedabad – 380 052, Gujarat, India
Date of Birth/Age :	04.03.1972
Date of Appointment :	16.01.2006
Qualification	B.COM
PAN No.:	ABQPG3298R
DIN No.:	00048130
Name :	Mr. Ramanbhai Keshabhai Patel
Designation :	Whole Time Director
Address :	At – Narsinhpura, Post – Kukadiya, Tauka- Idar, District – Sabarkantha, Narshinpura – 383 430, Gujarat, India
Date of Birth/Age :	01.06.1951
Date of Appointment :	01.09.2009
Qualification	S.S.C
PAN No.:	ABYPP7377A
DIN No.:	00048159
Name :	Mr. Shailesh Maganlal Patel
Designation :	Managing Director
Address :	At and Post Badoli, Idar, Sabarkantha – 383 430, Gujarat, India
Date of Birth/Age :	20.07.1975
Date of Appointment :	01.09.2009
Qualification	B.COM
PAN No.:	AICPP4278P
DIN No.:	01456380
Name :	Mr. Mukeshkumar Purushottam Patel
Designation :	Whole Time Director
Address :	At and Post Badoli, Idar, Sabarkantha – 383 410, Gujarat, India
Date of Birth/Age :	05.02.1969
Date of Appointment :	01.05.2008
Qualification	B.SC
PAN No.:	AICPP1284B
DIN No.:	01456407
Name :	Mr. Mahendrakumar Girdharbhai Patel
Designation :	Additional Director
Address :	At and Post Badoli, Idaar, Sabarkantha – 383 410, Gujarat, India
Date of Birth/Age :	08.10.1969
Date of Appointment :	01.04.2008
PAN No.:	AHZPP0041N
DIN No.:	01517544
Name :	Mr. Dipakkumar Keshubhai Patel
Designation :	Director
Address :	Laxmanpura, Goral, Taluka – Idar, S.K. Idar – 383 430, Gujarat, India
Date of Birth/Age :	01.07.1978
Date of Appointment :	15.04.2008
PAN No.:	AICPP1270H
DIN No.:	01456602
Name :	Mr. Shantilal Ramabhai Patel
Designation :	Director
Address :	Hajipura, Himatnagar, Sabarkantha, Himatnagar – 383 120, Gujarat, India
Date of Birth/Age :	11.09.1954
Date of Appointment :	15.04.2008
DIN No.:	02260031

KEY EXECUTIVES

Name :	Ms. Urmi Dhansuklal Shah
Designation :	Secretary
Address :	BB/17, Sanskrdeep Apartment, Opposite Suryavashi Tower, Vastrapur, Ahmedabad, Gujarat, India
Date of Birth/Age :	26.07.1981
Date of Appointment :	01.02.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

NOTE: SHAREHOLDERS DETAILS NOT AVAILABLE

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	3.43
Directors or relatives of Directors	30.20
Other top fifty shareholders	50.66
Others	15.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Vitrified Tiles.

Products :

Item Code No. (ITC Code)	69010030
Product Description	Vitrified Tiles

· Soluble Salt Vitrified Tiles

· Double Charge Vitrified Tiles

· Plain Coloured Vitrified Tiles

· Matt Finish Vitrified Tiles

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity
Vitrified Tiles	(Sq. Mtr)	14000	14000

Particulars in respect of Good Manufactured

Particulars	Unit
Vitrified Tiles	2424170

GENERAL INFORMATION

No. of Employees :

Information declined by management

Bankers :

· State Bank of India, Commercial Branch, 3^rd Floor, Paramsiddhi Complex, Opposite V.S. Hospital, Ellisbridge, Ahmedabad – 380 006, Gujarat, India

· HDFC Bank Limited

· AXIS Bank Limited

· Union Bank of India

· ICICI Bank Limited

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	82.640	121.112
Working capital loans banks secured	243.249	219.076
Loans taken for vehicles secured	3.540	1.122
Total	329.429	341.310
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks unsecured	1.933	6.091
Loans directors unsecured	6.144	6.115
Other debt unsecured	81.385	64.195
Total	89.462	76.401

Footnotes

(A) TERM LOAN- Hypothecation Of Plant and Machinery Etc. (2011) (2010) S.B.I. Term Loan-30842755122 17250619 23455057 S.B.I. Term Loan-10301057043 3792200 15103097 S.B.I. Term Loan-30111077792 54562866 82554314 Reliance Consumer Finance Limited.

Banking Relations :	--
Auditors :
Name :	K.K. Patel and Associates Chartered Accountants
Address :	F-51, 2^nd Floor, Akash Ganga Complex, Near S.T. Stand, Himatnagar – 383 001, Gujarat, India
Tel. No.:	91-2772-240499
Mobile No.:	91-9898044121
E-Mail :	kamleshpatel74@hotmail.com
PAN No.:	AGPPP6687D

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
8500000	Equity Shares	Rs.10/- each	Rs.85.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8400000	Equity Shares	Rs.10/- each	Rs.84.000 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		84.000	84.000	84.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		171.593	141.825	113.994
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		255.593	225.825	197.994
LOAN FUNDS
1] Secured Loans		329.429	341.310	322.389
2] Unsecured Loans		89.462	76.401	70.279
TOTAL BORROWING		418.891	417.711	392.668
DEFERRED TAX LIABILITIES		22.256	23.395	19.054
TOTAL		696.740	666.931	609.716
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		265.799	286.837	288.192
Capital work-in-progress		56.902	9.104	9.104
INVESTMENT		0.030	0.030	0.030
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	290.472	329.513	259.534
	Sundry Debtors	191.449	140.660	104.523
	Cash & Bank Balances	24.247	15.826	14.890
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	58.235	47.245	35.390
Total Current Assets		564.403	533.244	414.337
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	160.000	127.001	84.312
	Other Current Liabilities	1.146	1.258	0.000
	Provisions	29.248	34.500	18.554
Total Current Liabilities		190.394	162.759	102.866
Net Current Assets		374.009	370.485	311.471
MISCELLANEOUS EXPENSES		0.000	0.475	0.919
TOTAL		696.740	666.931	609.716

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1230.710	921.775	870.516
		Other Income	4.100	2.396	7.834
		TOTAL (A)	1234.810	924.171	878.350
Less	EXPENSES
		Consumption materials changes inventories	702.381	443.580	755.999
		Manufacturing service costs	118.215	127.311
		Employee related expenses	44.203	35.563
		Administrative selling other expenses	241.011	189.863
		TOTAL (B)	1105.810	796.317	755.999
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		129.000	127.854	122.351
Less	FINANCIAL EXPENSES (D)		39.719	42.701	51.471
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		89.281	85.153	70.880
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.914	43.258	45.690
	PROFIT BEFORE TAX (E-F) (G)		47.367	41.895	25.190
Less	TAX (H)		17.600	14.064	9.618
	PROFIT AFTER TAX (G-H) (I)		29.767	27.831	15.572
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		125.825	97.994	82.442
	BALANCE CARRIED TO THE B/S		155.592	125.825	97.994
	IMPORTS
		Raw Materials	23.145	8.497	33.708
		Stores & Spares	35.145	33.975	27.453
		Capital Goods	5.920	29.548	9.425
	TOTAL IMPORTS		64.210	72.020	70.586
	Earnings Per Share (Rs.)		3.31	3.43	1.85

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.41	3.01	1.77
Net Profit Margin (PBT/Sales)	(%)	3.85	4.55	2.89
Return on Total Assets (PBT/Total Assets}	(%)	5.71	3.63	3.59
Return on Investment (ROI) (PBT/Networth)		0.19	0.19	0.13
Debt Equity Ratio (Total Liability/Networth)		2.38	2.57	2.50
Current Ratio (Current Asset/Current Liability)		2.96	3.28	4.03

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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 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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The Registered office of the company has been shifted from Block No 355 Opposite Geb Substation Near Sabar Dairy At and P. O. Hajipur, Himatnagarn, N. H NO 8, District Sabarkantha-383120, Gujarat, India to the present address w.e.f. 01.10.2009

OPERATION:

During the year the Company has achieved a turnover of Rs. 1230.710 Millions as against Rs. 921.775 Millions in the previous year registering a growth of 33.51%. During the year the Company has earned Net Profit of Rs. 29.767 Millions as against the Net Profit of Rs.27.831 Millions in the previous year. During the year, company has developed its market for wall tiles of different sizes e.g. 300x600, 300x450, 300x300, 300x200 etc. The company has also done business by trading vitrified tiles due to shortage of production facilities and high demand of the market . Barring unforeseen circumstances, the Directors are hopeful to get better performance in the current year.

EXPANSION:

In the month of January, 2011 the Company has planned expansion project for additional capacity of 4000 Sq. Mtr. Per day of exterior tiles and other value added tiles like Glazed Vitrified Tiles. The Company expects to commence commercial of expansion project in the month of September, 2011. Looking at the market, the new products will give more penetration in tiles market to regent brand. By additional capacity, the company will have additional business of around Rs. 220.000 or 250.000 Millions in current financial year.

FINANCE

In the month of March, 2011, State Bank of India, Commercial Branch, Ahmedabad has sanction to the Company enhancement of various credit facilities from 551.000 Millions to 789.200 Millions.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U26933GJ2003PLC043039
Name of the company	REGENT GRANITO (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	C - 304, Ganesh Meridian, Opposite Amirraj Farm, Near Gujarat High Court, S. G Highway, Ahmedabad - 380061, Gujarat, India Email: rgil_account@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10283418
Type of charge	Immovable property
Particular of charge holder	State Bank of India, Commercial Branch, 3^rd Floor, Paramsiddhi Complex, Opposite V.S. Hospital, Ellisbridge, Ahmedabad – 380 006, Gujarat, India Email: rm1.cbahm@sbi.co.in
Nature of instrument creating charge	1. Memorandum Relating to Deposit of Title Deeds for creation of further charge for term loan overall limit where the initial chargeis created by way of Mortgage by Deposit of Title Deeds in form C.10A 2. Letter Regarding the grant of Individual limits within the overall limit in form C.5
Date of instrument Creating the charge	09.04.2012
Amount secured by the charge	Rs. 787.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit: 3.50% + Base Rate (BR) , SLC: 4.50% + BR., TL-of Rs. 135.000 Millions : 3.75% +BR , TL of Rs. 31.000 Millions: 4.25% +BR and TL of Rs. 92.500 Millions : 4.00% +BR , Presently BR is 10.00% p.a. Terms of Repayment Cash Credit: Payable on demand, TL-II of Rs. 135.000 Millions to be repaid in 20 equal quarterly instl. of Rs. 6.750 Millions each commencing from 1st April 2008, TL-III of Rs. 31.000 Millions to be repaid in 20 quarterly instl. each of Rs. 1.550 Millions and repayment shall start from the 2^nd quarter of F.Y 2010-11 i.e. from Aug.09 after moratorium of 6 months and TL IV of Rs.92.500 Millions to be repaid in 21 quarterly instal. and starting from Dec.12 in 20 equal instal. of Rs. 4.400 Millions and last instal. of Rs. 4.500 Millions. Margin RM/SIP/FG : 25%, Book Debt (90 days cover) : 40% and LC/BG: 15% Extent and Operation of the charge Exclusive first charge over the immovable properties of the company situated at Block No./Survey No. 312, 355 and 352 of Village: Hajipur, Taluka Himatnager, Dist. Sabarkantha, Gujarat.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Immovable property admeasuring 56932 sq. mtrs situated at Block/Survey No. 355/p of Village: Hajipur, Taluka Himatnager, Dist. Sabarkantha, Gujarat . Immovable Property admeasuring 15276 sq. mtrs situated at Block No./Survey No. 312, of Village: Hajipur, Taluka Himatnager, Dist. Sabarkantha, Gujarat Immovable Property admeasuring 24251 sq. mtrs situated at Block No. 352 of Village: Hajipur, Taluka Himatnager, Dist. Sabarkantha, Gujarat.
Date of instrument modifying the charge	24.03.2011
Particulars of the present modification	Charge extended by way of extension of Equitable Mortgage created over immovable Property situated at Block No./S. No. 312 (15276 sq. mtrs), 355/p (56932 sq. mtrs) and 352 (24251 sq. mtrs) of Village: Hajipur, Taluka Himatnager, District Sabar Kantha ,Gujarat to secure total credit facilities of Rs. 787.600 Millions.( additional of F.B. limit of Rs. 50.000 Millions, N.FB of Rs. 50.000 Millions And liquidation of T.L of Rs. 90.000 Millions and reduction in CEL of Rs. 11.600 Millions)

FIXED ASSETS

· Factory Building

· Plant and Machinery

· Gasifier

· Computer

· Furniture and Fixture

· Vehicle

· Office Equipments

· Electric Installation

· Land

CMT REPORT (Corruption, Money Laundering and 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 internationa 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.54.25
UK Pound	1	Rs.87.00
Euro	1	Rs.69.83

INFORMATION DETAILS

Information Gathered by :	SLP
Report Prepared by :	MRI

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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 and 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

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.