MIRA INFORM REPORT

Report Date :

23.11.2012

IDENTIFICATION DETAILS

Name :	KRITI INDUSTRIES (INDIA) LIMITED
Registered Office :	Mehta Chambers, 34-Siyagunj, Indore-452007, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.03.1990
Com. Reg. No.:	10-005732
Capital Investment / Paid-up Capital :	Rs.49.604 Millions
CIN No.: [Company Identification No.]	L25206MP1990PLC005732
TAN No.: [Tax Deduction & Collection Account No.]	BPLK00508E BPLK02602F BPLK02569A
PAN No.: [Permanent Account No.]	AAACK7078B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges.
Line of Business :	Manufacturer of Rigid PVC Pipes and Soybean/Rapeseed Oil, De Oiled Cake by Solvent Extraction Process.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

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

Maximum Credit Limit :	USD 1630000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB – [Long Term Bank Facilities]
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	27.09.2012

Rating Agency Name	CARE
Rating	A3 [Short Term Bank Facilities]
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	27.09.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Mehta Chambers, 34-Siyagunj, Indore-452007, Madhya Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@kritiindia.com
Website :	www.kritiindia.com
Corporate Office :	Chetak Chambers, 14 R N T Marg, 4^th Floor, Indore-452 001, Madhya Pradesh, India
Tel. No.:	91-731-2704716 / 2719100 / 2719195
Fax No.:	91-731-2704506 / 4042118 / 2704701
Factory :	Plot No. 75-86 and 13/1, Tarpura, 75-86 Pithampur, District Dhar, Madhya Pradesh, India

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Shiv Singh Mehta
Designation :	Managing Director
Name :	Mrs. Purnima Mehta
Designation :	Director
Date of Birth/Age :	25-05-1960
Qualification :	B.A.(Hons), M.B.A, PGDBM
Date of Appointment :	01.10.1999
Name :	Mr. V. M. Bhole
Designation :	Nominee Director- IDBI
Name :	Mr. Manoj Fadnis
Designation :	Independent and Non-Executive Director
Name :	Mr. Rakesh Kalra
Designation :	Independent and Non-Executive Director
Name :	Mr. Somnath Ghosh
Designation :	Independent and Non-Executive Director
Name :	Dr. Swatantra Singh Kothari
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2304847	4.65
Bodies Corporate	30312931	61.11
Sub Total	32617778	65.76
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	32617778	65.76
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1600	0.00
Sub Total	1600	0.00
(2) Non-Institutions
Bodies Corporate	1294910	2.61
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	8616862	17.37
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	6968662	14.05
Any Others (Specify)	103708	0.21
NRIs/OCBs	97393	0.20
Clearing Members	6315	0.01
Sub Total	16984142	34.24
Total Public shareholding (B)	16985742	34.24
Total (A)+(B)	49603520	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	49603520	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Rigid PVC Pipes and Soybean/Rapeseed Oil, De Oiled Cake by Solvent Extraction Process.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
PVC/HDPE PIPES/DUCT	MT	63600	33404 **
PVC FITTINGS	MT	1800	1623

** Including job work receipt 60 M.T. (Previous Year 26 M.T.)

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

· State Bank of Travancore

· IDBI Bank Limited

· Bank of India

· State Bank of Hyderabad

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
TERM LOAN (Installment due within 12 months shown in Current Liabilities)
From Banks
IDBI Bank Limited
(i) (Repayable in 19 monthly installments, Last installment due on 1st April, 2014 Rate of Interest 15.25% p.a.at year end.)	13.500	25.100
(Repayable in 17 Quarterly installments, Last installment due on 1st September 2013 Rate of Interest 15.25% p.a.at year end.)	5.700	18.900
(iii) (Repayable in 7 Quarterly installments, Last installment due on 1st April 2014 Rate of Interest 14.75 p.a.at year end.)	2.057	0.000
State Bank of Hyderabad (Repayable in 11 quarterly installments, Last installment due on 31st December, 2014 Rate of Interest: 15.75% p.a.at year end.)	9.556	14.535
Bank of India (Repayable in 17 quarterly installments, Last installment due on 30th June, 2016 Rate of Interest: 14.50% p.a.at year end. (Above loans are secured by First charge/ Mortgage on fixed assets of the company and personal guarantee of Managing Director)	75.710	29.372
From banks (Secured by hypothecation of finished goods, raw material, stock in process, store and spares, sundry debtors, export bills, receivables and second charge on fixed assets of the company and personal guarantee of Managing Director)	232.695	180.148
TOTAL	339.218	268.055

Banking Relations :	--
Auditors :
Name :	R.D. Asawa and Company Chartered Accountants
Address :	403, Alankar Point, Geeta Bhawan Square, A.B. Road, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-2491393/2491376 [Office] 91-731-2544205/2471910 [Residential]
Fax No.:	91-731-2491393
Holding Company :	Sakam Trading Private Limited
Subsidiaries :	· Kriti Auto and Engineering Plastic Private Limited (Wholly owned Subsidiary Company) · Kriti Nutrients Limited (Subsidiary company of Sakam Trading Private Limited) · Chetak Builders Private Limited (Subsidiary company of Sakam Trading Private Limited)

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Re. 1/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49603520	Equity Shares	Re.1/- each	Rs.49.604 Millions

NOTE:

SHAREHOLDER HOLDING MORE THAN 5 % OF SHARES OF THE COMPANY AND ITS PERCENTAGE

Particular	As on 31.03.2012
	No. of Shares	% of Shares
Sakam Trading Private Limited	25843673	52.10

Pursuant to the Hon'ble High Court of M.P. order dated 1.11.2011 approving the scheme of amalgamation of promoter group companies viz Kriti Corporate Service Private Limited, Kriti Auto Accessories Private Limited, Kasta Pipes Private Limited and Shipra Pipes Private Limited. With Sakam Trading Private Limited, the Shareholding of the above transferor companies are vested in Sakam Trading Private Limited Thus Sakam Trading Private Limited becomes holding company w.e.f.27.02.12 of Kriti Industries (India) Limited.

Particular	As on 31.03.2012
	No. of Shares	% of Shares
Chetak Builders Private Limited	4469258	9.01

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		49.604	49.604	49.604
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		359.547	312.345	271.395
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		409.151	361.949	320.999
LOAN FUNDS
1] Secured Loans		339.218	268.055	308.515
2] Unsecured Loans		0.000	0.000	36.680
TOTAL BORROWING		339.218	268.055	345.195
DEFERRED TAX LIABILITIES		53.641	47.198	45.442
TOTAL		802.010	677.202	711.636
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		408.659	334.888	281.660
Capital work-in-progress		7.738	8.624	1.236
INVESTMENT		77.715	77.715	77.905
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	710.982	739.954	630.284
	Sundry Debtors	304.649	220.203	142.454
	Cash & Bank Balances	59.590	52.810	88.973
	Other Current Assets	95.342	107.034	0.000
	Loans & Advances	62.842	63.402	149.439
Total Current Assets		1233.405	1183.403	1011.150
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	677.133	778.078	560.710
	Other Current Liabilities	216.123	115.343	69.900
	Provisions	32.251	34.007	29.705
Total Current Liabilities		925.507	927.428	660.315
Net Current Assets		307.898	255.975	350.835
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		802.010	677.202	711.636

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2808.704	2528.428	3985.233
		Other Income	16.548	20.249	13.942
		TOTAL (A)	2825.252	2548.677	3999.175
Less	EXPENSES
		Cost of materials consumed	2280.094	2008.890
		Employee benefit expense	121.974	96.570
		Other expenses	301.554	233.247	3695.769
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(131.545)	15.034
		TOTAL (B)	2572.077	2353.741	3695.769
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		253.175	194.936	303.406
Less	FINANCIAL EXPENSES (D)		134.666	93.070	136.148
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		118.509	101.866	167.258
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.216	27.714	44.083
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		82.293	74.152	123.175
Less	TAX (H)		26.444	24.555	32.082
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		55.849	49.597	91.093
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		67.958	69.508	68.891
Less	APPROPRIATIONS
		Transfer to General Reserve	50.000	40.000	78.272
		Proposed Dividend	7.440	7.440	7.440
		Corporate Dividend Tax	1.207	1.207	1.264
		Transferred to Contingency Reserves	0.000	2.500	3.500
	BALANCE CARRIED TO THE B/S		65.160	67.958	69.508
	IMPORTS
		Raw Materials	323.736	521.094	1171.204
		Capital Goods	0.000	30.900	0.000
	TOTAL IMPORTS		323.736	551.994	1171.204
	Earnings / (Loss) Per Share (Rs.)		1.13	1.00	1.84

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	1003.590	345.000
Total Expenditure	924.870	332.380
PBIDT (Excl OI)	78.720	12.620
Other Income	8.500	0.010
Operating Profit	87.220	12.630
Interest	31.510	31.340
PBDT	55.710	(18.710)
Depreciation	10.150	10.430
Profit Before Tax	45.560	(29.130)
Tax	14.780	-9.450
Provisions and contingencies	0.000	0.000
Profit After Tax	30.78	(19.680)
Net Profit	30.780	(19.680)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.97	1.95	2.27
Net Profit Margin (PBT/Sales)	(%)	2.93	2.93	3.09
Return on Total Assets (PBT/Total Assets}	(%)	5.01	4.88	9.53
Return on Investment (ROI) (PBT/Networth)		0.20	0.20	0.38
Debt Equity Ratio (Total Liability/Networth)		3.09	3.30	3.13
Current Ratio (Current Asset/Current Liability)		1.33	1.27	1.53

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	No
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	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

YEAR IN RETROSPECT:

The Company has achieved total Turnover of Rs. 3082.178 Millions and Profit before Tax Rs. 82.293 Millions and Profit after Tax Rs. 55.849 Millions. During the year the Company has undertaken expansion of capacity for manufacture of PVC/ HDPE pipes & fittings and Drip Irrigation.

SUBSIDIARY COMPANY:

Kriti Auto and Engineering Plastics Private Limited, wholly owned subsidiary of the company, achieved gross turnover of Rs.243.190 Millions representing a profit after tax of Rs. 1.796 Millions.

The statement pursuant to Section 212 of the Companies Act, 1956 containing the details of the Company's subsidiary is attached.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

INDUSTRY STRUCTURE AND DEVELOPMENT:

India's plastic industry is projected to grow at estimated rate of 15% in the coming years. The PVC pipes business is driven in large measure by demand for pipes used in agriculture and irrigation sector, constructions and upcoming infrastructure projects. The union budget for 2012-13 has increased allocation for agriculture and irrigation. The target for agriculture credit has been raised by Rs. 1000000.000 Millions to Rs. 5750000.000 Millions. Central government is also mobilizing funds for irrigation projects. All the above factors will be helpful for industry to grow.

BUSINESS STRATEGY:

The company is conscious of its brand value and enhancing it by offering newer and better quality products, advertising and promotions. The company has introduced new range of accessories for the piping system. It also has facilities for producing a variety of PVC/HDPE fittings. Company is increasing its customer’s base in agriculture and building sector. Company has created separate verticals for irrigation, building products, MIS and Institutional sales through expanded marketing network in identified focus areas.

FINANCIAL PERFORMANCE:

The financial statements are prepared in compliance with the Companies Act, 1956 and as per the generally accepted accounting principles, policies and practices prevalent in India. The Company's financial performance is discussed in details under the head "Financial Results" in Directors' Report to the Members.

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER / HALF YEAR ENDED 30^TH SEPTEMBER, 2012

Rs. in Millions

Sr. No.	Particular	Quarter Ended		Half Year Ended
		30.09.2012 [Unaudited]	30.06.2012 [Unaudited]	30.09.2012 [Unaudited]
1.	Net Sales/Income from Operations	344.837	1003.272	1348.109
	Other Operating Income	0.163	0.325	0.488
	Total Income	345.000	1003.597	1348.597
2.	Expenditure
	Cost of materials consumed	415.207	730.845	1146.052
	Purchase of stock in trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work in progress and stock in trade	(143.131)	47.385	(95.746)
	Employee benefits expenses	31.525	33.727	65.252
	Depreciation and amortization expenses	10.433	10.146	20.580
	Other expenses	28.769	98.981	127.750
	TOTAL EXPENSES	342.803	921.084	1263.889
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	2.196	82.513	84.709
4.	Other Income	0.011	8.497	8.508
5.	Profit Before Interest and Exceptional Items (3+4)	2.209	91.010	93.217
6.	Interest	31.339	45.451	76.790
7.	Profit After Interest but before Exceptional Items (5-6)	(29.132)	45.559	16.427
8.	Exceptional Items	0.000	0.000	0.000
9.	Profit from Ordinary Activities before Tax (7-8)	(29.132)	45.559	16.427
10.	Tax Expense	(9.452)	14.781	5.329
11.	Net Profit from Ordinary Activities after Tax (9-10)	(19.680)	30.778	11.098
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	(19.680)	30.778	11.098
14.	Paid-up Equity Share Capital (Face Value of Re.1/- Each)	49.604	49.604	49.604
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	(0.40)	0.62	0.22
	b) Basic and diluted EPS after extraordinary items	(0.40)	0.62	0.22
17.	Public Shareholding
	-Number of Shares	16985742	16985742	16985742
	- Percentage of Shareholding	34.24	34.24	34.24
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil
	b) Non Encumbered
	- Number of Shares	32617778	32617778	32617778
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%	100%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	65.76%	65.76%	65.76%

Particulars	3 Months ended on March 31, 2012
Pending at the beginning of the quarter	0
Received during the quarter	6
Disposed of during the quarter	6
Remaining unresolved at the end of the quarter	0

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

Rs. in Millions

PARTICULARS	30.09.2012
Equity and liabilities
Shareholders' fund
Share capital	49.604
Reserve & surplus	370.644
Sub-total - Shareholders' funds	420.248
Non - current liabilities
Long term borrowings	90.772
Deferred tax liability (net)	54.425
Others long term liabilities	15.255
Sub-total - Non-current liabilities	160.452
Current liabilities
Short term borrowings	268.757
Trade payables	530.065
Other current liabilities	412.262
Short term provisions	7.352
Sub-total - Current liabilities	1218.436
Total - Equity & Liabilities	1799.136
Assets
Non-current assets
Fixed assets	435.296
Non-current investment	77.715
Long term loans & advances	10.683
Sub-total - Non-current Assets	523.694
Current assets
Inventories	725.104
Trade receivables	337.943
Cash & bank balances	55.117
Short term loans & advances	81.656
Other current assets	75.623
Sub-total - Current Assets	1275.443
Total – Assets	1799.136

NOTE:

1. The above results are subject to a “Limited Review” by the auditors of the company.

2. The above financial results have been reviewed by the audit committee and approved and taken on record by the board of directors at its meetings held on 27.10.2012.

3. The company has only one business segment to be reported namely Plastics as per Accounting Standard-17.

4. The previous period/ year figures are regrouped/ rearranged wherever necessary.

5. Other expenses are net of the excise duty related to the differences between the closing stock and opening stocks of Rs.18.039 Millions for the quarter ended on 30.09.2012.

FIXED ASSETS

· Land

· Goodwill

· Factory Building

· Plant and Machinery

· Dies and Moulds

· Vehicles

· Furniture and Fixtures

· Computers

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or 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.55.15
UK Pound	1	Rs.88.03
Euro	1	Rs.70.85

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		41

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