MIRA INFORM REPORT

Report Date :

19.11.2012

IDENTIFICATION DETAILS

Name :	THERMAL SYSTEMS (HYDERABAD) PRIVATE LIMITED
Registered Office :	Plot No.1, Apuroopa Township, IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.11.1991
Com. Reg. No.:	01-013404
Capital Investment / Paid-up Capital :	Rs. 59.750 Millions
CIN No.: [Company Identification No.]	U31909AP1991PTC013404
PAN No.: [Permanent Account No.]	AAACT9825H
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Trader of Economizers, Super Heaters, Boilers and Parts
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Even though there appears some dip in the sales turnover of the company during 2011, the profitability has improved. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct and as per commitment. 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	CRISIL
Rating	A2 : LETTER OF CREDIT AND BANK GUARANTEE
Rating Explanation	Strong degree of safety and low credit risk.
Date	22.09.2011

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 :	Plot No.1, Apuroopa Township, IDA, Jeedimetla, Hyderabad – 500055, Andhra Pradesh, India
Tel. No.:	91-40.23091801/02/03/04/05/06
Fax No.:	91-40-23097433
E-Mail :	rajasekhar@thermalindia.com info@thermalindia.com
Website :	www.thermalindia.com

DIRECTORS

As on: 28.09.2011

Name :

Mr. Polina Veer Raju

Designation :

Managing director

Address :

303B, Road No. 25, Jumilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

01.06.1949

Qualification :

B. E

Experience :

37 Years

Date of Appointment :

04.11.1991

DIN No.:

00162614

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	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Managing director	04-11-91	04-11-91	-	Active	NO
2	U33119AP1997PTC028492	P.S. STEAM AND POWER PRIVATE LIMITED	Director	05-12-97	05-12-97	-	Active	NO
3	U40108AP2010PTC069856	HAFNER STEAM BOILER PRIVATE LIMITED	Director	06-08-10	06-08-10	-	Active	NO
4	U23101AP2011PLC072783	COROMANDEL COKE & POWER LIMITED	Director	21-02-11	21-02-11	-	Active	NO

Name :

Mr. Polina Sesha Ratnam

Designation :

Director

Address :

303B, Road No. 25, Jumilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

03.07.1958

Qualification :

Intermediate

Date of Appointment :

04.11.1991

DIN No.:

00162620

Name :

Mr. Mullapudi Ananda Rao

Designation :

Director

Address :

H. No. 2-30 -6, Nizampet Road, Hyder Nagar, Kukatpally, Hyderabad _ 500072, Andhra Pradesh, India

Date of Birth/Age :

20.10.1960

Qualification :

B. Com

Date of Appointment :

16.08.1993

DIN No.:

00162623

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	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Director	16-08-93	16-08-93	-	Active	NO
2	U24232AP2011PTC078320	NOVOZENE THERAPEUTICS PRIVATE LIMITED	Director	30-12-11	30-12-11	-	Active	NO

Name :

Mr. Marni Srinivasa Rao

Designation :

Whole-time director

Address :

Villa 225, Indu Fortune Fields, Phase – 13 KPHB Colony, Hyderabad - 500072, Andhra Pradesh, India

Date of Birth/Age :

14.05.1969

Qualification :

B. E

Date of Appointment :

29.08.2011

DIN No.:

03303869

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	U24232AP2010PTC071320	SAMARLAKOT FERTILISERS & CHEMICALS PRIVATE LIMITED	Director	22-11-10	22-11-10	-	Active	NO
2	U23101AP2011PLC072783	COROMANDEL COKE & POWER LIMITED	Director	21-02-11	21-02-11	-	Active	NO
3	U33119AP1997PTC028492	P.S. STEAM AND POWER PRIVATE LIMITED	Whole-time director	01-04-11	01-04-11	-	Active	NO
4	U40108AP2010PTC069856	HAFNER STEAM BOILER PRIVATE LIMITED	Whole-time director	01-04-11	01-04-11	-	Active	NO
5	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Whole-time director	29-08-11	29-08-11	-	Active	NO

Name :

Mr. Polina Satya Narayana

Designation :

Director

Address :

Plot No. 12, Maruti Nagar, Yousafguda, Hyderabad – 500045, Andhra Pradesh, India

Date of Birth/Age :

11.11.1959

Qualification :

L. E. E

Experience :

26 Years

Date of Appointment :

29.08.2011

DIN No.:

00162617

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	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Director	29-08-11	16-08-93	29-09-12	Active	NO
2	U33119AP1997PTC028492	P.S. STEAM AND POWER PRIVATE LIMITED	Director	05-12-97	05-12-97	-	Active	NO
3	U74140TN2004PTC054795	MANTECH TECHNICAL SERVICES PRIVATE LIMITED	Director	02-12-04	02-12-04	23-01-09	Active	NO
4	U40108AP2010PTC069856	HAFNER STEAM BOILER PRIVATE LIMITED	Director	06-08-10	06-08-10	-	Active	NO
5	U28123AP2011PTC077658	NMS MECHFAB PRIVATE LIMITED	Managing director	12-12-11	24-11-11	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2011

Names of Shareholders	No. of Shares
Polina Veer Raju	3794125
Polina Sesha Ratnam	985875
Polina Satya Narayana	1195000
Total	5975000

As on: 07.09.2012

Names of Allottees	No. of Shares Allotted
Mullapudi Ananda Rao	100
Marni Srinivasa Rao	100
Satyavada Venkata Ramachanda Rao	100
Kudaravalli Subramanyeswara Rao	100
Avirneni Srirama Krishna	100
Dharam Pal	100
Tetali Venkata Ram	100
Total	700

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Trader of Economizers, Super Heaters, Boilers and Parts

Product :

Product Description	ITC Code
Boilers and Parts	84021000
Economizers and Parts	84041000
Super Heaters and Parts	84041000

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Actual Production
Economizers	Nos	46432413
Super Heaters	Nos	62245967
Boilers	Nos	588841413
Others	Nos	99980034

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Mid Corporate Group, Overseas Branch, Road No. 36, Rajala Center, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans secured Rupee term loans others secured	16.753	37.026
Working capital loans secured Working capital loans banks secured	169.167	185.789
Loans taken for fixed assets secured Loans taken for vehicles secured	2.134	3.580
Total	188.054	226.395
Footnotes (A) TERM LOAN FROM APSFC:(Secured by equitable mortgage of Land and Building, Plant and Machinery, covered by Plot 31, Apuroopa Township, Plot#D.27,Plot#157A,B&C,158 IDA Bollaram and 2nd charge on Land and Building at Plot # D-30 & 31, Phase V, IDA Jeedimela & Plot no. 172A, IDA, Miyapur, Bollaram, Hyderabad and Directors personal Guarantee) (B) Working Capital Loan from State Bank of India (Against hypothecation of stocks, WIP, Book debts 1st charge on Land and Building at Plot no. D30 and 31, Land at Survey no.279 at Jeedimetla and Land at Sy.No.172A IDA, Bollaram. Miyapur, Hyderabad and 2nd charge on Land and Building, Plant and Machinery at Plot No-1, Plot no-D27, Plot No-157A, 157B, 157C and Plot no. 158 at Sy No. 172 IDA, Bollaram, Miyapur, Hyderabad and Directors personal Guarantee) (C) Loans taken for vehicles secured : against hypothecation of Vehicles to HDFC Bank Limited
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Deferred sales tax loan unsecured	13.867	16.283
Total	13.867	16.283

Banking Relations :	--
Financial Institutions :	Andhra Pradesh State Financial Corporation, Chirag Ali Lane, Hyderabad, Andhra Pradesh, India
Auditors :
Name :	G. Seshadri and Company Chartered Accountants
Address :	Plot No D11, Road No 9, Filmnagar, Jubileehills, Hyderabad -500033, Andhra Pradesh, India
PAN No.:	ACGPG2153A
Subsidiaries :	Thermal Systems GmbH, Germany

CAPITAL STRUCTURE

As on: 28.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5975700	Equity Shares	Rs.10/- each	Rs.59.757 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5975000	Equity Shares	Rs.10/- each	Rs.59.750 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		59.750	59.750	59.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		439.743	361.609	299.826
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		499.493	421.359	359.576
LOAN FUNDS
1] Secured Loans		188.054	226.395	246.343
2] Unsecured Loans		13.867	16.283	20.682
TOTAL BORROWING		201.921	242.678	267.025
DEFERRED TAX LIABILITIES		13.298	23.936	23.813
TOTAL		714.712	687.973	650.414
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		207.895	209.803	215.991
Capital work-in-progress		30.738	0.000	0.449
INVESTMENT		1.115	8.115	3.115
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	360.129	142.263	218.621
	Sundry Debtors	298.990	394.113	470.631
	Cash & Bank Balances	379.545	281.149	102.984
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	218.815	161.914	168.578
Total Current Assets		1257.479	979.439	960.814
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	166.316	131.323	173.290
	Other Current Liabilities	464.777	255.988	259.193
	Provisions	151.422	122.073	97.472
Total Current Liabilities		782.515	509.384	529.955
Net Current Assets		474.964	470.055	430.859
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		714.712	687.973	650.414

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1050.700	1134.242	1145.307
		Other Income	42.400	10.409	23.134
		TOTAL (A)	1093.100	1144.651	1168.441
Less	EXPENSES
		Raw Material Consumed	NA	569.018	495.651
		Manufacturing Expenses	NA	121.983	162.416
		Expenses on Employees	NA	106.139	109.803
		Administrative, Selling and Other Expenses	NA	202.947	192.988
		(Increase) /Decrease in Stocks	NA	(7.292)	63.952
		TOTAL (B)	NA	992.795	1024.810
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	151.856	143.631
Less	FINANCIAL EXPENSES (D)		NA	20.966	30.487
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	130.890	113.144
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	21.788	20.468
Less/ Add	PRIOR PERIOD ITEMS (EXPENSES)/ INCOME		NA	1.226	0.465
	PROFIT BEFORE TAX (E-F) (G)		103.900	110.328	92.211
Less	TAX (H)		25.800	41.577	33.908
	PROFIT AFTER TAX (G-H) (I)		78.100	68.751	58.303
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		100.609	88.826	43.513
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	50.000	6.000
		Provision for Proposed Dividend	0.000	5.975	5.975
		Corporate Dividend Tax	0.000	0.992	1.015
	BALANCE CARRIED TO THE B/S		178.709	100.610	88.826
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	323.132	590.206	348.807
	TOTAL EARNINGS		323.132	590.206	348.807
	Earnings Per Share (Rs.)		13.07	11.51	9.76

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.14	6.01	4.98
Net Profit Margin (PBT/Sales)	(%)	9.89	9.73	8.05
Return on Total Assets (PBT/Total Assets}	(%)	7.09	9.28	7.83
Return on Investment (ROI) (PBT/Networth)		0.21	0.26	0.25
Debt Equity Ratio (Total Liability/Networth)		1.97	1.78	2.22
Current Ratio (Current Asset/Current Liability)		1.61	1.92	1.81

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	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

SALES TREND:

The company has achieved turnover of Rs.1050.700 Millions during the year against previous year sales turnover of Rs. 1134.242 Millions. The decrease of sales turnover is due to economic slowdown and deferment of project schedules by customer. However as on the date of the report there have been positive trends for the companys products in the domestic and Export markets. The current order book position is satisfactory and valued at Rs. 2490.000 Millions.

REVIEW OF OPERATIONS:

Due to economic slowdown situations during the previous financial years has a cascading effect on the current financial year under report. However, the company achieved a turnover of Rs. 1050.700 Millions as against the previous year of Rs. 1134.242 Millions. The position is improved considerably during the financial year 2011-12. Even though the turnover is slightly less than the previous Financial Year, the Company achieved profit before tax of Rs. 103.900 Millions as against Rs110.328 Millions in the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U31909AP1991PTC013404
Name of the company	THERMAL SYSTEMS (HYDERABAD) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.1, Apuroopa Township, Ida, Jeedimetla, Hyderabad – 500055, Andhra Pradesh, India rajasekhar@thermalindia.com
This form is for	Modification of charge
Charge identification number of the charge to be modified	90137573
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	State Bank of India, Mid Corporate Group, Overseas Branch, Road No. 36, Rajala Center, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India g.suresh@sbi.co.in
Nature of instrument creating charge	· Letter regarding the grant of individual limits within the overall limit. · Sanction Letter.
Date of instrument Creating the charge	16.04.2012
Amount secured by the charge	Rs. 1060.600 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest Cash Credit (Hypothecation) - 4.50% above Bank's Base Rate (Presently 14.50% per annum) Terms of repayment Repayable on demand Margin Raw Material (Domestic) - 25% Raw Material (Imported) - 10% Stock in Process - 25% Finished Goods - 25% EPC - 10% LC (Usance 180 days) - 10% BG - 10% Book Debts (cover 90 days) – 40% Extent and operation of the charge The Charge will be extended on immovable and movable properties of the Company as described in the agreements.
Short particulars of the property or assets charged (including complete address and location of the property)	· Primary: Hypothecation of current assets of the Company. · Collateral: 1. Exclusive charge on all fixed assets of the Company presently (including EM of all the properties (land along with structures thereon) belonging to the Company including those which are · presently mortgaged to APSFC. · 2. EM of residential property of the MD of the Company Mr. Polina Veerraju situated at H. No. 8-2-293/82/A/303B, Road No. 26, Jubilee Hills, Hyderabad.
Date of modification prior to the present modification	10.05.2011
Particulars of the present modification	There is no change in overall limits of Rs. 1060.600 Millions. The details are as under: 1. Cash Credit - Rs. 200.000 Millions EPC (sub-limit of Cash Credit) - (Rs. 110.000 Millions) FBD (Non LC) (sub-limit of Cash Credit) - (Rs. 110.000 Millions) 2. LC - Rs. 300.000 Millions 3. BG - Rs. 500.000 Millions 4. CEL (Forward Contract) - Rs. 10.600 Millions 5. Stand by Limit - Rs. 50.000 Millions

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2011
Estimated amount of Contracts remaining to be executed on capital amount	0.000
Guarantees, Letter of Credits executed by Banks, against the counter guarantees of the companys Managing Director	673.904
Bills discounting against Letter of Credits	96.538

FIXED ASSETS

· Land

· Lease hold land

· Building

· Factory Building

· Plant and Machinery

· Equipments

· Computer

· Furniture and Fixture

· Vehicles

· Livestock

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 :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.