MIRA INFORM REPORT

Report Date :

19.11.2012

1. Summary Information

		Country	India
Company Name	Expanded Polymer Systems Private Limited	Principal Name 1	Mr. Mukesh Shantilal Bhuta
Status	Moderate	Principal Name 2	Dr. Vaman Jasvantrai Mehta
		Registration #	11-175657
Street Address	C – 44/1 and 2, C – 45/3, TTC Area, Pawne MIDC, Vashi, Navi Mumbai – 400705, Maharashtra, India
Established Date	02.11.2007	SIC Code	--
Telephone#	91-22-27670838	Business Style 1	Manufacturer
Fax #	91-22-27671065	Business Style 2	--
Homepage	www.expanded.co.in	Product Name 1	Polyols
# of employees	80 (Approximately)	Product Name 2	--
Paid up capital	Rs.100,000,000/-	Product Name 3	--
Shareholders	Directors or relatives of directors- 100%	Banking	Bank of India
Public Limited Corp.	No	Business Period	5 years
IPO	No	International Ins.	--
Public Enterprise	No	Rating	B (27)
Related Company
Relation	Country	Company Name	CEO
Associates	India	Shantilal and Company Private Limited	--
Note	--

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	411,219,000	Current Liabilities	390,092,000
Inventories	249,951,000	Long-term Liabilities	486,003,000
Fixed Assets	335,624,000	Other Liabilities	23,960,000
Deferred Assets	0,000	Total Liabilities	900,055,000
Invest& other Assets	2,086,000	Retained Earnings	4,000,000
		Net Worth	98,825,000
Total Assets	998,880,000	Total Liab. & Equity	998,880,000
Total Assets (Previous Year)	793,594,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales (Total Income)	1379,591,000	Net Profit	(41,448,000)
Sales (Previous yr) (Total Income)	1160,689,000	Net Profit(Prev.yr)	31,909,000

IDENTIFICATION DETAILS

Name :	EXPANDED POLYMER SYSTEMS PRIVATE LIMITED
Formerly Known As :	EXPANDED INCORPORATION
Registered Office :	C – 44/1 and 2, C – 45/3, TTC Area, Pawne MIDC, Vashi, Navi Mumbai – 400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.11.2007
Com. Reg. No.:	11-175657
Capital Investment / Paid-up Capital :	Rs.100.000 Millions
CIN No.: [Company Identification No.]	U24134MH2007PTC175657
TAN No.: [Tax Deduction & Collection Account No.]	MUME00833A/ MUME07100C
PAN No.: [Permanent Account No.]	AAAFE0142M/ AABCE8627R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Polyols.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 390000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial detail for the current year is missing from government department. And from the previous year record there appears some accumulated losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be unknown. The company can be considered for business dealings with some cautions.

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	ICRA
Rating	A4 (Short Term)
Rating Explanation	Having minimal degree of safety regarding timely payment of financial obligation. It carry very high credit risk and are susceptible to default.
Date	August, 2011

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 :	C – 44/1 and 2, C – 45/3, TTC Area, Pawne MIDC, Vashi, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-27670838/ 27670839/ 27680303/ 27680404/ 30914300
Fax No.:	91-22-27671065
E-Mail :	expanded.inc@vsnl.com admin@expandedinc.com hemantp@expandedinc.com rmehta@expanded.co.in
Website :	www.expanded.co.in
Location :	Owned

DIRECTORS

AS ON 17.09.2012

Name :

Mr. Mukesh Shantilal Bhuta

Designation :

Managing Director

Address :

1101, Alaknanda CHS Limited, 7^th Rajawadi Road, Ghatkopar (East), Mumbai – 400 077, Maharashtra, India

Date of Birth/Age :

12.08.1953

Qualification :

Science Graduate, B.E. Tech London

Date of Appointment :

01.08.2009

Din No.:

00801515

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U28920MH1950PTC008137	SHANTILAL AND COMPANY PRIVATE LIMITED	Director	22-07-02	22-07-02	Active	NO
2	U24134MH2007PTC175657	EXPANDED POLYMER SYSTEMS PRIVATE LIMITED	Managing director	01-08-09	02-11-07	Active	NO

Name :

Dr. Vaman Jasvantrai Mehta

Designation :

Director

Address :

24, Garodia Palace, 198, Garodia Nagar, Ghatkopar (East), Mumbai – 400 077, Maharashtra, India

Date of Birth/Age :

08.01.1934

Date of Appointment :

02.11.2007

Din No.:

01214512

Name :

Mr. Ajit Shantilal Bhuta

Designation :

Director

Address :

1101, Alaknanda CHS Limited, 7^th Rajawadi Road, Ghatkopar (East), Mumbai – 400 077, Maharashtra, India

Date of Birth/Age :

12.03.1951

Date of Appointment :

02.11.2007

Din No.:

00802006

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72900MH2001PTC134270	VALUE PROJECTS PRIVATE LIMITED	Director	19-12-01	19-12-01	19-10-10	Active	NO
2	U24134MH2007PTC175657	EXPANDED POLYMER SYSTEMS PRIVATE LIMITED	Director	02-11-07	02-11-07	-	Active	NO
3	U45400MH2007PTC175945	NGV INFRASTRUCTURES PRIVATE LIMITED	Director	15-11-07	15-11-07	-	Active	NO
4	U45400MH2007PTC176247	PEGASUS VALUE INFRAPROJECTS PRIVATE LIMITED	Director	28-11-07	28-11-07	-	Active	NO
5	U74999MH2011PTC218530	ABA PROJECTS CONSULTANT PRIVATE LIMITED	Director	10-06-11	10-06-11	-	Active	NO

Name :

Mr. Chandulal Kalidas Shah

Designation :

Director

Address :

64/A, Manju Niketan, Opposite Topiwala Cinema, Topiwala Compound, S.V. Road, Goregaon (West), Mumbai – 400 062, Maharashtra, India

Date of Birth/Age :

07.09.1941

Date of Appointment :

29.09.2008

Din No.:

01977071

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24134MH2007PTC175657	EXPANDED POLYMER SYSTEMS PRIVATE LIMITED	Director	29-09-08	28-11-07	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 17.09.2012

Names of Shareholders	No. of Shares
Mukesh Shantilal Bhuta	8400000
Vaman Jasvantrai Mehta	960000
Jayshree Ajit Bhuta	300000
Ajit Shantilal Bhuta	300000
Harsh Vaman Mehta	120000
Medha Mukesh Bhuta	600000
Hema C Shah and Vaman Jasvantrai Mehta	120000
Mikhail Mukesh Bhuta	1200000
TOTAL	12000000

AS ON 17.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polyols.

Products :

Product Description	Item Code
Polyols (Base and Blended)	3907

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Polyols	MT	17100	10819

NOTE:

1. Licensed capacity is not applicable in view of the company’s products having been de-licensed as per new licensing policy announced by the Government of India.

2. Installed capacity is as certified by the management and accepted by auditors as this is a technical matter.

GENERAL INFORMATION

No. of Employees :

80 (Approximately)

Bankers :

· Bank of India, Desai Niwas, M. G. Road, Ghatkopar (West), Mumbai – 400086, Maharashtra, India

· Bank of India, Andheri Mid Corporate Branch, BOI Building, 1^st Floor, 28, S.V. Road, Andheri (West), Mumbai-400058, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	101.139	109.599
Working capital loans banks	242.534	186.457
Loans taken for vehicles	7.891	12.735
TOTAL	351.564	308.791
Unsecured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Director loans	110.498	99.322
Other debts	23.941	11.954
TOTAL	134.439	111.276

NOTE:

· From bank repayable within one year Rs.8.294 millions.

· From bank repayable within one year Rs.7.997 millions.

Banking Relations :	--
Auditors :
Name :	C.M. Gabhawala and Company Chartered Accountants
Address :	42, Nanik Nivas, 30 Dr. D.D. Sathe Marg, Girgaum, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23880101 / 23823923
Fax No.:	91-22-23850931
E-Mail :	cmgco@hathway.com
Memberships :	· Bombay Industries Association · Indo Italian Chamber of Commerce · Indo German Chamber of Commerce · Bombay Chamber of Commerce · All India Plastic Manufacturers Association
Associates :	· Ajit Bhuta and Associates · Shantilal and Company Private Limited · Pushpak Properties

CAPITAL STRUCTURE

AS ON 17.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 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		100.000	100.000	100.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.000	40.273	14.194
4] (Accumulated Losses)		(5.175)	0.000	0.000
NETWORTH		98.825	140.273	114.194
LOAN FUNDS
1] Secured Loans		351.564	308.791	231.861
2] Unsecured Loans		134.439	111.276	109.724
TOTAL BORROWING		486.003	420.067	341.585
DEFERRED TAX LIABILITIES		7.260	3.600	2.050
TOTAL		592.088	563.940	457.829
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		335.624	316.897	113.312
Capital work-in-progress		1.920	0.000	125.933
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	249.951	101.097	85.146
	Sundry Debtors	252.570	244.254	276.339
	Cash & Bank Balances	60.171	60.787	26.254
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	98.478	70.226	14.092
Total Current Assets		661.170	476.364	401.831
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	385.709	206.645	0.000
	Other Current Liabilities	4.383	1.354	174.706
	Provisions	16.700	21.655	9.040
Total Current Liabilities		406.792	229.654	183.746
Net Current Assets		254.378	246.710	218.085
MISCELLANEOUS EXPENSES		0.166	0.333	0.499
TOTAL		592.088	563.940	457.829

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1379.591	1160.689	926.544
		Other Income
		TOTAL	1379.591	1160.689	926.544
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1405.058	1110.055
		Advertising Expenses
		Financial Expenses
		TOTAL	1405.058	1110.055	906.275
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(25.467)	50.634	(Including Depreciating)
Less/ Add	DEPRECIATION/ AMORTISATION		12.299	10.275
	PROFIT / (LOSS) BEFORE TAX		(37.766)	40.359	20.269
Less	TAX		3.682	8.450	7.661
	PROFIT / (LOSS) AFTER TAX		(41.448)	31.909	12.068
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.273	12.194	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	2.000	NA
		Proposed Dividend [Including Dividend Tax]	0.000	5.830	NA
	BALANCE CARRIED TO THE B/S		(5.175)	36.273	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	22.654	29.398	50.128
		Commission Received	10.382	5.074	28.811
	TOTAL EARNINGS		33.036	34.472	78.939
	IMPORTS
		Raw Materials	809.898	575.349	446.057
		Stores & Spares	0.000	5.125	12.228
		Capital Goods	0.059	0.000	0.000
	TOTAL IMPORTS		809.957	580.474	458.285
	Earnings / (Loss) Per Share (Rs.)		(4.14)	3.19	1.21

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(3.00)	2.75	1.30
Return on Total Assets (PBT/Total Assets}	(%)	(3.79)	5.09	3.93
Return on Investment (ROI) (PBT/Networth)		(0.38)	0.29	0.18
Debt Equity Ratio (Total Liability/Networth)		9.03	4.63	4.62
Current Ratio (Current Asset/Current Liability)		1.63	2.07	2.19

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	Yes
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	Yes
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	Yes

BACKGROUND:

The company has been converted from partnership firm to a private limited company on 2 November 2007 under chapter IX of the companies act, 1956 vide certificate of incorporation issued on 2 November 2007. No. U24134MH2007PTC175657.

OPERATIONS:

The company has earned total revenue of Rs. 1379.591 Millions (Previous year 1160.689 Millions) during the year, however during the year the Company has incurred after tax loss of Rs. 41.448 Millions as against profit of Rs 31.909 Millions in the previous year due to,

(a) Delay in commissioning of bulk storage tank resulting thereby in higher raw material cost

(b) Initial teething problem in establishing flexible grade polyol at Dahej plant which required to undergo process parameter changes

(c) Higher interest cost charged to the accounts due to under utilization of capacity

(d) Higher input cost compared to the previous year which could not be passed on entirely to the customers due to adverse market condition.

However, with bulk storage tank at GCPTCL commissioning and by establishing the flexible grade products to the fullest satisfaction of the customers, the company is expecting better performance during the current year.

CONTINGENT LIABILITIES: [AS ON 31.03.2011]

1. Letter of credit issued by banks on behalf of the company Rs. 287.490 Millions

2. Guarantee given by the banks on behalf of the company Rs. 0.347 Millions

3. Bills drawn on customers and discounted with Banks Rs. 77.079 Millions

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	10083711
Corporate identity number of the company	U24134MH2007PTC175657
Name of the company	EXPANDED POLYMER SYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C – 44/1 and 2, C – 45/3, TTC Area, Pawne MIDC, Vashi, Navi Mumbai – 400705, Maharashtra, India
Type of charge	Book Debts Movable Property [not being pledge]
Particular of charge holder	Bank of India, Andheri Mid Corporate Branch, BOI Building, 1^st Floor, 28, S.V. Road, Andheri (West), Mumbai-400058, Maharashtra, India
Email	andhericorp.mumbainorth@bankofindia.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental deed of Hypothecation.
Date of instrument Creating the charge	27.06.2011
Amount secured by the charge	Rs.785.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC (Hypothecation of Stocks and Book debts):3.50% over Base Rate presently 13.50% p.a. with monthly rests, or at such other rate/s of interest as may be notified by the bank from time to time. Terms of Repayment On Demand. Margin As per sanction terms. Extent and Operation of the charge To secure various Revised credit facilities aggregating to Rs.785.000 Millions granted by the bank to the company. Others Revised Facilities and Limits: 1)CC (Hypothecation of Stocks) Rs.261.500 Millions, 2) CC(Hypothecation of Book Debts) Rs.261.500 Millions, 3)EPC/FBP: Nil, Max.Rs.261.500 Millions, 4) LC(Foreign/Inland) DP/DA 90 days Rs.518.500 Millions, 5) Bank Guarantee Rs.5.000 Millions - Total (4+ 5) Rs.523.500 Millions, Aggregate Limits Rs.785.000 Millions.
Short particulars of the property charged	That the Security and Charge created shall be Security by way of First Charge on all the said 1. Hypothecation of all tangible movable machinery and plant both present and future 3. All tangible movable property and assets of whatsoever nature of the Borrower (both present and future) including all stocks such as Propylene Oxide, Adipic, Glycol, Caster Oil, Mono Ethele, etc. and other various types of chemicals and stocks in process of the Borrower wheresoever situate at Vashi Navi Mumbai and Dahej Industrial Estate 4. All the present and future Book-Debts.
Date of latest modification prior to the present modification	29.04.2011
Particulars of the present modification	By this Modification, the principal amount of charge on hypothecated assets is enhanced from Rs.665.000 Millions to Rs.785.000 Millions. Revised Facilities and Limits: 1)CC(Hypothecation of Stocks) Rs.261.005 Millions, 2) CC(Hypothecation of Book Debts) Rs.261.500 Millions, 3)EPC/FBP: Nil, Max.Rs.261.500 Millions, 4) LC(Foreign/Inland) DP/DA 90 days Rs.518.500 Millions, 5) Bank Guarantee Rs.5.000 Millions - Total (4+ 5) Rs.523.500 Millions, Aggregate Limits Rs.785.000 Millions.

FIXED ASSETS:

· Land

· Factory Buildings

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Vehicles

· Computers

· Technical Knowhow

· Software

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

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.