MIRA INFORM REPORT

Report Date :

20.11.2012

IDENTIFICATION DETAILS

Name :	GELNOVA LABORATORIES (INDIA) PRIVATE LIMITED
Formerly Known As :	FRANCO FABRICS PRIVATE LIMITED
Registered Office :	C–125, TTC Industrial Area, Mahape, Navi Mumbai - 400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.01.1997
Com. Reg. No.:	11-105706
Capital Investment / Paid-up Capital :	Rs. 18.000 Millions
CIN No.: [Company Identification No.]	U17000MH1997PTC105076
TAN No.: [Tax Deduction & Collection Account No.]	MUMG06968D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Supplier and Exporter of Pharmaceutical Formulation mainly soft gelatin capsules and soft lozenge.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 520000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The financial position of the company appears to be sound. It has recorded some growth in its sales and profits during 2011. Trade relations are reported as trustworthy. Business is active. Payments terms are 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 :	C–125, TTC Industrial Area, Mahape, Navi Mumbai - 400705, Maharashtra, India
Tel. No.:	91-22-27621908/ 27821269/ 27686411-13
Fax No.:	91-22-27686411/ 27686414
E-Mail :	gelnova@vsnl.net chetan@gelnova.com jatin@gelnova.com
Website:	www.gelnova.com

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Dhananjay Thakorbhai Desai

Designation :

Additional director

Address :

Madanwad, Valsad - 396001, Gujarat, India

Date of Birth/Age :

23.08.1942

Date of Appointment :

29.09.2010

DIN No.:

00049574

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	U24231GJ1979PTC003529	SHREE SULPHURICS PRIVATE LIMITED	Director	07/05/1997	07/05/1997	-	Active	NO
2	L25200GJ1981PLC004375	ECOPLAST LIMITED	Alternate director	20/01/2006	20/01/2006	-	Active	NO
3	U24299GJ1980PLC003929	GUJARAT INSECTICIDE LIMITED	Director	15/12/2007	13/08/2007	-	Active	NO
4	U24110MH1967PLC013688	GHARDA CHEMICALS LIMITED	Director	13/12/2007	13/08/2007	-	Active	NO
5	U24230GJ1983PTC006157	SIDMAK LABORATORIES (INDIA) PRIVATE LIMITED	Director	25/09/2008	06/02/2008	-	Active	NO
6	U17000MH1997PTC105076	GELNOVA LABORATORIES (INDIA) PRIVATE LIMITED	Director	29/09/2010	15/10/2009	-	Active	NO
7	U85191PN2009NPL134917	VASANTA INSTITUTE OF AYURVEDA	Director	05/11/2009	05/11/2009	-	Active	NO
8	U24200MH1998PTC115774	PHARMA BASE INDIA PRIVATE LIMITED	Alternate director	20/01/2010	20/01/2010	28/10/2010	Active	NO
9	U70102MH2009PTC196238	SILVER STREAM PROPERTIES PRIVATE LIMITED	Director	30/09/2010	18/03/2010	-	Active	NO
10	U85100MH1991GAT061430	GHARDA MEDICAL AND ADVANCED TECHNOLOGIES FOUNDATION	Director	10/04/2010	10/04/2010	-	Active	NO
11	U74210MH1977GAT019689	GHARDA SCIENTIFIC RESEARCH FOUNDATION	Director	30/06/2010	30/06/2010	-	Active	NO
12	U74120MH2011PTC212012	RUTH FINVEST PRIVATE LIMITED	Director	08/01/2011	08/01/2011	-	Active	NO

Name :

Mr. Vasant Kumar Keshavji Thakker

Designation :

Director

Address :

L – 3/4, Eden Hall, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

29.11.1936

Qualification :

B.Com

Experience :

42 Years

Date of Appointment :

18.08.2000

DIN No.:

00079870

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	Company/ LLP Status	Defaulting status
1	U17000MH1997PTC105076	GELNOVA LABORATORIES (INDIA) PRIVATE LIMITED	Director	18/08/2000	18/08/2000	Active	NO
2	U51500MH1994PTC079955	HORMONE TECHNOLOGIES PRIVATE LIMITED	Director	01/07/2011	01/07/2011	Active	NO

Name :

Mr. Jatin Vasant Kumar Thakker

Designation :

Director

Address :

L – 3/4, Eden Hall, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

07.12.1967

Qualification :

B.Sc Chemical Engineering from USA

Experience :

20 Years

Date of Appointment :

18.08.2000

DIN No.:

00079977

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	Company/ LLP Status	Defaulting status
1	U17000MH1997PTC105076	GELNOVA LABORATORIES (INDIA) PRIVATE LIMITED	Director	18/08/2000	18/08/2000	Active	NO
2	U51500MH1994PTC079955	HORMONE TECHNOLOGIES PRIVATE LIMITED	Director	01/07/2011	01/07/2011	Active	NO

Name :

Mrs. Bharati Vasant Kumar Thakker

Designation :

Director

Address :

L – 3/4, Eden Hall, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

22.06.1940

Date of Appointment :

18.08.2000

DIN No.:

00080070

Name :

Mr. Rusi Nusserwanji Sethna

Designation :

Additional director

Address :

B-23, Sterling Apartment, 38, Dr. G Deshmukh Marg, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

25.11.1932

Date of Appointment :

29.09.2010

DIN No.:

00184588

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	L35110MH1948PLC006472	THE GREAT EASTERN SHIPPING COMPANY LIMITED	Director	27/06/1974	27/06/1974	29/07/2010	Active	NO
2	L24100MH1974PLC017773	CITURGIA BIOCHEMICALS LIMITED	Director	24/03/1986	24/03/1986	10/04/2007	Active	NO
3	U65110MH1928PTC028916	HSBC AGENCY (INDIA) PRIVATE LIMITED	Director	15/06/1990	15/06/1990	03/09/2012	Active	NO
4	L21012MH1964PLC013058	PUDUMJEE PULP AND PAPER MILLS LIMITED	Director	08/10/1992	08/10/1992	-	Active	NO
5	L17120MH1933PLC002031	MODERN INDIA LIMITED	Director	29/11/1994	29/11/1994	-	Active	NO
6	U55101MH1986PTC038538	CHALET HOTELS PRIVATE LIMITED	Director	16/12/1999	16/12/1999	-	Active	NO
7	L24299MH1954PLC009254	NATIONAL PEROXIDE LIMITED	Director	30/10/2003	30/10/2003	08/08/2011	Active	NO
8	U55101GJ2009PTC056531	HAZUR HOTEL PRIVATE LIMITED	Director	03/04/2009	03/04/2009	04/10/2011	Active	NO
9	U17000MH1997PTC105076	GELNOVA LABORATORIES (INDIA) PRIVATE LIMITED	Director	29/09/2010	15/10/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Equity Shareholders	No. of Shares
Vasant Kumar Keshavji Thakkar	33800
Jatin Vasant Kumar Thakkar	33813
Bharati Vasant Kumar Thakkar	29900
Monica J. Thakkar	32487
Total	130000

Names of Preference Shareholders	No. of Shares
Vasant Kumar Keshavji Thakkar	5150
Jatin Vasant Kumar Thakkar	8500
Bharati Vasant Kumar Thakkar	10000
Jatin Vasant Kumar Thakkar	3500
Jatin Vasant Kumar Thakkar	4000
Jatin Vasant Kumar Thakkar	500
Monica J. Thakkar	9000
Vasant Kumar Keshavji Thakkar	9350
Total	50000

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer, Supplier and Exporter of Pharmaceutical Formulation mainly soft gelatin capsules and soft lozenge.

Products :

ITC Code	Product Descriptions
105	Drugs and Pharmaceuticals

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Soft Gelatine Capsules	Nos	N.A.	500000000	424001327

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Citibank N.A., Citi Group Centre, Bandra Kurla Complex, Bandra East, Mumbai – 400051, Maharashtra, India

Ø Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Borrowings from Banks
Demand loans from banks	62.500	54.515
Total	62.500	54.515

Banking Relations :	--
Auditors :
Name :	Kalyaniwalla and Mistry Chartered Accountants
Address :	Kalpataru Heritage, 127 Mahatma Gandhi Road, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-61587200
Fax No.:	91-22-22673964
Income-tax PAN of auditor or auditor's firm :	AAAFK7554R

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150,000	Equity Shares	Rs. 100/- each	Rs. 15.000 Millions
50,000	Preference Shares	Rs. 100/- each	Rs. 5.000 Millions
	Total		Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
130,000	Equity Shares	Rs.100/- each	Rs. 13.000 Millions
50,000	Preference Shares	Rs. 100/- each	Rs. 5.000 Millions
	Total		Rs. 18.000 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		18.000	18.000	18.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		113.172	89.478	81.607
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		131.172	107.478	99.607
LOAN FUNDS
1] Secured Loans		62.500	54.515	65.077
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		62.500	54.515	65.077
DEFERRED TAX LIABILITIES		3.691	5.165	5.412
TOTAL		197.363	167.158	170.096
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		92.054	74.341	69.026
Capital work-in-progress		8.920	13.340	3.817
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	78.869	57.481	47.991
	Sundry Debtors	151.454	132.066	121.909
	Cash & Bank Balances	6.080	7.257	1.272
	Other Current Assets	0.016	0.000	0.000
	Loans & Advances	8.536	6.893	4.541
Total Current Assets		244.955	203.697	175.713
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	134.534	107.178	66.157
	Other Current Liabilities	11.933	13.415	8.234
	Provisions	2.099	3.627	4.069
Total Current Liabilities		148.566	124.220	78.460
Net Current Assets		96.389	79.477	97.253
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		197.363	167.158	170.096

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL (A)	515.571	431.364	N.A.
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	458.238	394.662	N.A.
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		57.333	36.702
Less	FINANCIAL EXPENSES (D)		7.484	6.808
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.849	29.894
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.026	7.543
	PROFIT BEFORE TAX (E-F) (G)		41.823	22.351	N.A.
Less	TAX (H)		11.483	10.853	N.A.
	PROFIT AFTER TAX (G-H) (I)		30.340	11.498	N.A.
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		82.457	N.A.	N.A.
Less	APPROPRIATIONS
		Transfer to Capital redemption reserve	0.714	0.714	N.A.
		Transfer to General Reserve	3.034	1.150
		Preference dividend	0.500	0.500
		Interim and Final Dividend	5.200	2.600
		Dividend distribution tax	0.947	0.527
	BALANCE CARRIED TO THE B/S		102.402	82.457	N.A.
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	3.370	0.687	15.441
	IMPORTS
		Raw Materials and Packing Materials	3.744	5.984	0.000
		Capital Goods	0.000	5.941	0.000
	TOTAL IMPORTS		3.744	11.925	0.000
	Earnings Per Share (Rs.)		233.39	88.45	178.42

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.88	2.67	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	12.41	8.04	N.A.
Return on Investment (ROI) (PBT/Networth)		0.32	0.21	N.A.
Debt Equity Ratio (Total Liability/Networth)		1.61	1.66	1.44
Current Ratio (Current Asset/Current Liability)		1.65	1.64	2.24

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 two years	Yes
12]	Profitability for last two 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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATION:

The gross sales of the year was Rs. 573.300 Millions as against Rs. 472.100 Millions achieved in previous year thereby yielding an increase of 21.44% over the previous year. Similarly the net profit for the year was Rs. 30.000 Millions as against Rs. 11.500 Millions earned in the previous year showing a remarkable increase from 2.43% in the previous year to 5.29% in the year in comparison to the sales achieved respective years.

The company has introduce for the first time in India the new product ranged with german technology. “PASTILLE” during the year. The company is test marketing the concept of textile and finding out acceptability of the said product in the Indian market.

For the current year, in the opinion of the board, the company will show the continued growth as shown in the previous year with the help of the products being introduced.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17000MH1997PTC105076
Name of the company	GELNOVA LABORATORIES (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C-125, TTC Industrial Area, Mahape, Navi Mumbai - 400705, Maharashtra, India Email: chetan@gelnova.com
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts Movable Property Others (Current Assets and Moveable Fixed Assets.)
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai – 400021, Maharashtra, India Email: john.fernandes@kotak.com CIN No.: L65110MH1985PLC038137
Nature of description of the instrument creating or modifying the charge	1. Deed of Hypothecation. 2. Memorandum of Entry for Mortgage by Constructive Delivery of Title Deeds.
Date of instrument Creating the charge	02.01.2012
Amount secured by the charge	Rs. 40.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest TL - Floating over the tenure of the facility. The Rate of Interest has been arrived at on the basis of the Bank's Base Rate. Terms of Repayment TL - Loan shall be repaid by way of 60 EMIs starting from month following the month of first disbursement of TL. EMIs shall be recovered by ways of debit to current a/c of the Borrower with the Bank. EMIs shall be recovered by banking PDCs on respective due dates. Margin TL - 25%. Inland Sales Bill Discounting - 10%. Extent and Operation of the charge 1. Pari passu charge with Citybank by way of Hypothecation on Current assets and Movable assets including Movable fixed assets present and future of the Borrower, to secure repayment of financial facilities granted by the KMBL to the Borrower. 2. Pari passu charge by way of Mortgage of Immovable property of Gelnova Laboratories (India) Private Limited, in favour of Kotak Mahindra bank as security for repayment of financial facilities granted by the Bank to Gelnova Laboratories (India) Private Limited
Short particulars of the property charged	Charge on Current assets and Movable assets including Movable fixed assets present and future of the Borrower,as described in Schedule to the Deed of Hypothecation. All that piece or parcel of land known as P. No. C-125 adms. about 3920 sq. mtrs., situated in the Trans Thane Creek Industrial Area, within the Village limits of Borivali within the limits of Navi Mumbai Municipal corporation, Taluka and Registration Sub-District Thane, District and Registration District Thane, more particularly described in Sch. B to the Mortgage Deed.

CONTINGENT LIABILITIES:

a) Guarantees given by the Company’s bankers against counter guarantees given by the company Rs. 0.443 Million.

b) Demand raised by the Commissioner of Central Excise, Belapur Commissionerate amounting to Rs. 24.478 Millions.

FIXED ASSETS

Ø Leasehold Land

Ø Building

Ø Plant and Machinery

Ø Furniture, Fixtures and Fittings

Ø Office Equipment

Ø Computer

Ø 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. 54.97
UK Pound	1	Rs. 87.50
Euro	1	Rs. 70.16

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		50

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	-

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