MIRA INFORM REPORT

Report Date :

17.11.2012

IDENTIFICATION DETAILS

Name :	BHAGAWATI INTERNATIONAL LIMITED
Registered Office :	S-492/A, Greater Kailash I, New Delhi-110048
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.07.1974
Com. Reg. No.:	55-091462
Capital Investment / Paid-up Capital :	Rs.40.333 Millions
CIN No.: [Company Identification No.]	U29268DL1974PLC091462
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Glass Reinforced GRP Pipes, FRP/GRP Rehabilitation Pipes, Panels, FRP/GRP Chairs, FRP/GRP Gratings.
No. of Employees :	50 [Approximately] [In Office + In Factory]

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 260000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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.

INFORMATION PARTED BY

Name :	Mr. Dilip
Designation :	Marketing Executive
Contact No.:	91-8802965730
Date :	16.11.2012

Name :	Mr. Ajay
Designation :	Deputy Marketing Manager
Contact No.:	91-9871432084
Date :	16.11.2012

LOCATIONS

Registered Office :	S-492/A, Greater Kailash I, New Delhi-110048, India
Tel. No.:	91-11-29236977
Fax No.:	91-11-29230698
E-Mail :	bhagwatiglasses@gmail.com
Website :	http://www.bhagwatiinternational.com
Corporate Office :	A-27B, Sector-16, Noida-201301, Uttar Pradesh, India
Tel. No.:	91-120-4749901
Fax No.:	91-120-4749901
Area :	1500 Sq. Ft.
Location :	Owned
Factory:	Plot No. 3F/3G, Echotech-II, Udyog Vihar, Greater Noida-201308, Uttar Pradesh, India
Area :	2 Acer
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Rakesh Samarat Bhardwaj

Designation :

Director

Address :

S-492/A, Greater Kailash I, New Delhi-110048, India

Date of Birth/Age :

09.07.1962

Date of Appointment :

01.10.1980

Din No.:

00029757

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	U29268DL1974PLC091462	BHAGAWATI INTERNATIONAL LIMITED	Director	01/10/1980	01/10/1980	-	Active	NO
2	U51109WB1965PTC026534	BHAGWATI STEEL PRIVATE LIMITED	Director	27/07/1981	27/07/1981	-	Active	NO
3	U85110DL1995PLC073381	SOMA MEDICAL INTERNATIONAL LIMITED	Director	20/10/1995	20/10/1995	########	Active	NO
4	U74899DL2000PLC108768	BHAGAWATI COMBAT SYSTEMS LIMITED	Director	07/12/2000	07/12/2000	-	Active	NO
5	U50200DL2004PTC124083	BHAGWATI HEAVY EQUIPMENTS MAINTENANCE AND SERVICES PRIVATE LIMITED	Director	14/01/2004	14/01/2004	-	Active	NO
6	L24111RJ1974PLC005789	BHAGAWATI GAS LIMITED	Managing director	01/07/2009	01/07/2004	-	Active	NO
7	U74899DL1993PTC056157	LAVINO PORTFOLIOS PRIVATE LIMITED	Director	27/03/2006	27/03/2006	-	Active	NO
8	U52209DL2007PTC169977	KUMUD - SHACHI TRADING PRIVATE LIMITED	Director	30/10/2007	30/10/2007	-	Active	NO
9	U29220DL2011PTC226178	FLOW TECH-BHAGAWATI AIR PRIVATE LIMITED	Director	12/10/2011	12/10/2011	-	Active	NO

Name :

Mr. Vivek Sharma

Designation :

Director

Address :

67, Park Street, Kolkata-700016, West Bengal, India

Date of Birth/Age :

01.08.1973

Date of Appointment :

20.01.1998

Din No.:

00041217

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	U51109WB1965PTC026534	BHAGWATI STEEL PRIVATE LIMITED	Director	25/05/1994	25/05/1994	-	Active	NO
2	U29268DL1974PLC091462	BHAGAWATI INTERNATIONAL LIMITED	Director	20/01/1998	20/01/1998	-	Active	NO
3	U74899DL1993PTC056157	LAVINO PORTFOLIOS PRIVATE LIMITED	Director	15/07/1998	15/07/1998	-	Active	NO
4	U74899DL2000PLC108768	BHAGAWATI COMBAT SYSTEMS LIMITED	Director	07/12/2000	07/12/2000	-	Active	NO
5	U92120AP2003PTC040301	MOTHER VISION PRIVATE LIMITED	Director	16/01/2003	16/01/2003	-	Active	NO
6	L24111RJ1974PLC005789	BHAGAWATI GAS LIMITED	Whole-time director	01/06/2008	09/07/2007	-	Active	NO
7	U52209DL2007PTC169977	KUMUD - SHACHI TRADING PRIVATE LIMITED	Director	01/05/2008	01/05/2008	-	Active	NO

Name :

Mr. Trikkur Pisharath Nandan

Designation :

Director

Address :

70-B, B-5, Dhwalgiri, Sector 34, Noida-201301, Uttar Pradesh, India

Date of Birth/Age :

17.06.1962

Date of Appointment :

11.04.2007

PAN No.:

APFPP8431A

DIN No.:

00749732

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	U27109WB1971PTC027999	S K STEELS PRIVATE LIMITED	Director	06/07/2006	06/07/2006	-	Active	NO
2	U29268DL1974PLC091462	BHAGAWATI INTERNATIONAL LIMITED	Additional director	11/04/2007	11/04/2007	-	Active	NO

Name :	Mr. Arivu Selvam
Designation :	Director
Address :	203 , Tagore Road Hostel, Minto Road Complex, Minto Road, Delhi – 110002, India
Date of Birth/Age :	02.06.1967
Date of Appointment :	30.09.2011
Din No.:	03620738

KEY EXECUTIVES

Name :	Mr. Dilip
Designation :	Marketing Executive
Name :	Mr. Ajay
Designation :	Deputy Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
B.P. Bhardwaj	5100
Ramrup Sharma	850
S.K. Sharma	13150
S.K. Steels Private Limited, India	583510
Kamakashi Bhardwaj	2000
Kanta Devi Bhardwaj	70100
Lavino Portfolios Private Limited, India	60000
Peethambra Granites Private Limited, India	200000
Rakesh Samarat Bhardwaj	2670490
Vijaya Sharma	1050
Shashi Sharma	1050
Suman Bhardwaj	700
Rekha Bhardwaj	700
Shachi Bhardwaj	345635
Tara Devi Sharma	39000
Bhagawati Combat System Limited, India	40000
Total	4033335

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	21.91
Directors or relatives of directors	78.09
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Glass Reinforced GRP Pipes, FRP/GRP Rehabilitation Pipes, Panels, FRP/GRP Chairs, FRP/GRP Gratings.

Products :

Product Description	Item Code
GRP Pipes	39173990

· FRP / GRP Pipes

· FRP / GRP Rehabilitation Pipes

· FRP / GRP Insulated Panels

· SME Panels

· FRP / GRP Chairs

· FRP / GRP Fan Blades

· FRP / GRP Auto Parts

· Epoxy Rods

· Epoxy Borewell Screens

Exports :

Countries :

· Europe

· Middle East

Exports :

Countries :

· China

Terms :

Selling :

L/C, Cash and Credit (30 Days / (45 Days – Depends) )

Purchasing :

L/C, Cash and Credit (30 Days / (45 Days – Depends) )

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity in ‘000 meters (On Single shift basis per year)*	Actual Production Qty
GRP Pipes	Meter	20	3573

Note: *As certified by the management and relied upon by the Auditors being a technical matter.

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

· GTPL Private Limited

No. of Employees :

50 [Approximately] [In Office + In Factory]

Bankers :

· Kotak Mahindra Bank Limited

· State Bank of India, NEPZ, Noida - 201301, Uttar Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
From Banks
Term Loans from State Bank of India	2.891	0.000
Vehicle/Equipments Loan from Kotak Mahindra Bank Limited	1.152	0.785
Cash Credit Loan	15.556	0.000
From Others
Vehicle/Equipments Loan	0.757	3.225
Total	20.356	4.010
Notes: 1. Term Loan and Cash credit loan from bank is secured by way of: a) Hypothecation of all current assets of the company including stocks of raw material, Stock‐in‐Process, Finished Goods including goods in transit, Receivables and other current assets of the company, present and future b) Hypothecation of Plant and Machinery and other /miscellaneous Fixed Assets of the company which are proposed to be acquired by the Bank's Finance 2. Further Secured by way of: a) Equitable mortgage of factory land and building situated at lease hold plot no. 3F and 3G, Echotech‐II, Udyog Vihar, Greater Noida, (Uttar Pradesh) measuring 7457.55 Sq. Mtrs. In the name of the company b) Hypothecation of existing Plant and Machinery and other fixed assets of the unit and guaranted by the directors of the company
Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
From Body Corporate	35.053	60.057
Total	35.053	60.057

Banking Relations :	--
Auditors :
Name :	Chaturvedi and Company Chartered Accountants
Address :	405-407, Chiranjiv Tower, 43, Nehru Place, New Delhi-110019, India
Tel. No.:	91-1126432388/26463013/26284488
Fax No.:	91-11-26467586
E-Mail :	chaturvedico@airtelmail.in delhi@chaturvedico.com
Website:	http://www.chaturvedico.com
Pan No.:	AABFC9567F
Subsidiaries :	Bhagawati Combat Systems Limited CIN No.: U74899DL2000PLC108768

CAPITAL STRUCTURE

As on 31.03.2011

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
4033335	Equity Shares	Rs.10/- each	Rs.40.333 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		40.333	36.750	29.427
2] Share Application Money		20.109	0.575	7.725
3] Reserves & Surplus		5.592	0.325	0.269
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		66.034	37.650	37.421
LOAN FUNDS
1] Secured Loans		20.356	4.010	0.000
2] Unsecured Loans		35.053	60.057	47.588
TOTAL BORROWING		55.409	64.067	47.588
DEFERRED TAX LIABILITIES		0.398	0.397	0.265
TOTAL		121.841	102.114	85.274
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		58.409	53.117	52.739
Capital work-in-progress		9.218	9.218	9.218
PRE-OPERATIVE EXPENDITURE INCLUDING CAPITAL ADVANCES		0.000	2.890	3.172
INVESTMENT		1.632	1.632	1.632
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.583	9.306	0.158
	Sundry Debtors	28.266	12.662	6.615
	Cash & Bank Balances	7.180	6.984	1.481
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	32.607	20.190	17.490
Total Current Assets		80.636	49.142	25.744
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.158	10.580	4.808
	Other Current Liabilities	10.506	2.915	2.070
	Provisions	0.390	0.390	0.353
Total Current Liabilities		28.054	13.885	7.231
Net Current Assets		52.582	35.257	18.513
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		121.841	102.114	85.274

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	77.550	26.671	20.010
		Other Income	2.895	1.011	0.030
		TOTAL (A)	80.445	27.682	20.040
Less	EXPENSES
		Manufacturing and Operating Expenses	59.343	23.418	13.175
		Personnel Expenses	10.853	5.483	1.922
		Administrative and Other Expenses	6.983	2.788	1.009
		Increase / Decrease in Stocks	(0.977)	(6.665)	0.000
		TOTAL (B)	76.202	25.024	16.106
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.243	2.658	3.934
Less	FINANCIAL EXPENSES (D)		2.078	0.272	2.257
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.165	2.386	1.677
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.065	2.198	1.162
	PROFIT BEFORE TAX (E-F) (G)		0.100	0.188	0.515
Less	TAX (H)		0.000	0.132	0.339
	PROFIT AFTER TAX (G-H) (I)		0.100	0.056	0.176
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.324	0.268	0.092
	BALANCE CARRIED TO THE B/S		0.424	0.324	0.268
	EARNINGS IN FOREIGN CURRENCY
		Sales of MS Steel Scaffoldings	0.000	1.176	0.000
		Solar Volatic Cells	0.000	0.000	11.846
	TOTAL EARNINGS		0.000	1.176	11.846
	IMPORTS
		Raw Materials	51.625	17.267	0.447
		Stores & Spares	1.330	0.509	0.257
	TOTAL IMPORTS		52.955	17.776	0.704
	Earnings Per Share (Rs.)		0.03	0.02	0.06

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.12	0.20	0.88
Net Profit Margin (PBT/Sales)	(%)	0.13	0.70	2.57
Return on Total Assets (PBT/Total Assets}	(%)	0.07	0.18	0.66
Return on Investment (ROI) (PBT/Networth)		0.00	0.00	0.01
Debt Equity Ratio (Total Liability/Networth)		1.26	2.07	1.46
Current Ratio (Current Asset/Current Liability)		2.87	3.54	3.56

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10193355
Corporate identity number of the company	U27107DL1974PLC091462
Name of the company	BHAGAWATI INTERNATIONAL LIMITED
Address of the registered office or of the principal place of business in India of the company	S-492/A, Greater Kailash I, New Delhi-110048, India
Type of charge	Book Debts Immovable Property
Particular of charge holder	State Bank of India, NEPZ Branch, Phase-II, Noida-201305, Uttar Pradesh, India
Email	sbi.09837@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Letter of Arrangement (SME-1)
Date of instrument Creating the charge	31.03.2011
Amount secured by the charge	Rs.47.700 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest WC: 6.5% above the base rate. present effective rate 14.75% p.a. TL (new): 6.5% above the base rate+0.5% term premium. present effective rate 15.25% p.a. Terms of Repayment For WC: Repayable on demand. The facility which has been sanctioned on 23.03.2011 is available for 12 months from the date. For TL (new): In 42 monthly installments of Rs. (41* Rs. 0.080) million each, with the first installment commencing on OCT. 2011 and the last installment falling due on MARCH 2015. Margin RM-Indigenous : 25% Semi-finished goods : 25% Finished goods : 25% Domestic Receivables : 40% TL : 25% LC : 20% BG : 20% Extent and Operation of the charge 1. Primary Security: a) Hypothecation of all current assets of the co. including stocks of RM, SIP, FG, Receivables and others current assets of the co. present and future. b) Hypo. of P and M exclusive Bank finance of all present and future fixed assets. 2. Collateral Security: a) EM of factory Land and Building situated at lease hold plot no. 3F and 3G Echotech-II, Udyog Vihar, Greater Noida measuring 7457.55 sq. mtrs. b) Hypo. of exiting plant and machinery and other fixed assets of the unit. Others WDV is Rs. 29.500 Millions of the unit as per audited Balance Sheet dated 31.3.2010. 3. a) Personal Guarantee of Mr. Rakesh S. Bhardwaj, b) Personal Guarantee of Mr. Vivek Sharma c) Personal Guarantee of Mr. T.P. Nandan.
Short particulars of the property charged	Factory Land and Building situated at lease hold plot no. 3F and 3G Echotech-II, Udyog Vihar, Greater Noida measuring 7457.55 sq. mtrs.
Date of latest modification prior to the present modification	12.12.2009
Particulars of the present modification	1. The CC limit is enhanced from Rs. 12.500 Millions to Rs. 22.500 Millions 2. The new SLC limit is sanctioned of Rs. 2.500 Millions 3. The SME Car loan limit is sanctioned of Rs. 1.500 Millions 4. The new TL limit is sanctioned of Rs. 3.400 Millions 5. The old TL limit remains same at Rs. 2.800 Millions 6. The LC is enhanced from Rs. 5.000 Millions to Rs. 7.500 Millions 7. The BG is enhanced from Rs. 5.000 Millions to Rs. 7.500 Millions

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Bank Guarantees secured by way of Fixed deposit of same amount	0.000	0.162
Bank Guarantees/Letters of Credit issued by the bank on behalf of the Company	0.145	1.532
Counter Guarantee given to bankers for guarantees issued by the banker (Net of margins)	0.000	0.025
Bills Discounting Outstanding	8.860	9.715

TRADE REFERENCES:

· GTPL Private Limited

FIXED ASSETS:

· Land Leasehold

· Factory Building

· Furniture and Fixtures

· Office Equipments

· Plant and Machinery

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.99
UK Pound	1	Rs.87.21
Euro	1	Rs.70.22

INFORMATION DETAILS

Information Gathered by :	SLP
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.