MIRA INFORM REPORT

Report Date :

24.11.2012

IDENTIFICATION DETAILS

Name :	COSMO FERRITES LIMITED
Registered Office :	P. O. Jabli, District Solan, Jabli – 173209, Himachal Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.07.1985
Com. Reg. No.:	006378
Capital Investment / Paid-up Capital :	Rs. 120.300 Millions
CIN No.: [Company Identification No.]	L27106HP1985PLC006378
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Soft Ferrites
No. of Employees :	275 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 900000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Reserves of the company appear to be low. There appears some dip in the revenue earned from operations during 2012 and the profits have dipped tremendously. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with great caution.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A4 + : BANK GUARANTEE
Rating Explanation	Minimal degree of safety and high credit risk
Date	19.11.2012

Rating Agency Name	CRISIL
Rating	A4 + : LETTER OF CREDIT
Rating Explanation	Minimal degree of safety and high credit risk
Date	19.11.2012

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 :	P. O. Jabli, District Solan, Jabli – 173209, Himachal Pradesh, India
Tel. No.:	91-1792-277231/277232 /277235/ 277236
Fax No.:	91-1792-277234
E-Mail :	sanjay@cosmoferrites.com plant@cosmoferrites.com sales@cosmoferrites.com
Website :	www.cosmoferrites.com
Corporate Office :	Cosmo Ferrites Limited, 517, 5th Floor, DLF Tower-A, Jasola New District Centre, Jasola, New Delhi -110025, India.
Tel. No.:	91-11-49398800
Fax No.:	91- 11- 49398888
E-Mail :	sales@cosmoferrites.com
Factory :	RO. Jabli, Distt. Solan H.R -173 209, India Tel. No.: 91-1792-277231-32/35/36 Fax No.: 91-1792-277234 E-mail : plant@cosmoferrites.com

DIRECTORS

As on: 31.03.2012

Name :	Mr. Ashok Jaipuria
Designation :	Non Executive Director
Name :	Mr. Shreekant Somany
Designation :	Non Executive Director
Name :	Mr. Rakesh Nangia
Designation :	Non Executive Director
Date of Birth/Age :	30.07.1954
Qualification :	B.Com, FCA
Name :	Mr. N. K. Gupta
Designation :	Non Executive Director
Name :	Mr. B. D. Gupta
PAN No.:	Non Executive Director
Name :	Mr. H. L. Paran
Designation :	Non Executive Director
Name :	Mr. A. K.Jain
Designation :	Non Executive Director
Name :	Ambrish Jaipuria
Designation :	Director
DIN No.:	002146S7

KEY EXECUTIVES

Name :	Mr. SanjayKumar Ojhc
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	195000	1.62
Bodies Corporate	7431944	61.78
Sub Total	7626944	63.40
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7626944	63.40
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7100	0.06
Financial Institutions / Banks	300	0.00
Sub Total	7400	0.06
(2) Non-Institutions
Bodies Corporate	834655	6.94
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	2258886	18.78
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	1297144	10.78
Any Others (Specify)	4971	0.04
Non Resident Indians	4971	0.04
Sub Total	4395656	36.54
Total Public shareholding (B)	4403056	36.60
Total (A)+(B)	12030000	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)	12030000	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Soft Ferrites
Products :	Soft Ferrites

GENERAL INFORMATION

No. of Employees :

275 (Approximately)

Bankers :

· State Bank of India

· Canara Bank

· ICICI Bank

· Export - Import Bank of India

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

Term Loans

From Banks

Rupee Loan *

39.451

29.354

Hire Purchase Finance **

1.603

4.799

Loans repayable on demand

From Banks***

67.242

65.659

Foreign Currency Buyers Credit ****

62.507

39.174

Total

170.803

138.986

*Rupee Term Loons ore secured by first equitable mortgage of immovable assets both present and future and hypothecation of moveable assets except charged to rank pari-passu inter se and subject to prior charges created in favour of the company’s for working capital loans and assets exclusively charged.

** Assets purchased under Hire Purchase Finance schemes are hypothecated to the financiers

***Secured by hypothecation of inventories and book debts and further secured by way of second charge on fixed assets both present and future.

****There is no default as on the Balance Sheet date in repayment of loans and interest.

As on 31.03.2012 (Rs in Millions)

Particular	Amount
Payable after 1 year	14.521
Payable after 2 years	6.933
Payable after 3 years	6.800
Payable after 4 years	6.800
Payable after 5 years	6.000

Unsecured Loan

As on

31.03.2012

As on

31.03.2011

Deposits

0.285

0.285

Total

0.285

0.285

Banking Relations :	--
Auditors :
Name :	B.K. Shroff and Company. Chartered Accountants
Associates Companies:	· Cosmo Films Limited · Sterling Oxide Limited · Super Sadiq Enterprises Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions
-	At the beginning of the year		-
-	Add: Additions during the year		-
-	Less: Reduction during the year		-
15000000	At the end of the year	Rs. 10/- each	Rs. 150.000 Millions
800000	Preference Shares	Rs. 100/- each	Rs. 80.000 Millions
-	At the beginning of the year		-
-	Add: Additions during the year		-
-	Less: Reduction during the year		-
800000	At the end of the year	Rs. 100/- each	Rs. 80.000 Millions
	Total		Rs. 230.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12030000	Equity Shares	Rs.10/- each	Rs. 120.300 Millions
-	At the beginning of the year		-
-	Add: Additions during the year		-
-	Less: Reduction during the year		-
12030000	At the end of the year	Rs.10/- each	Rs. 120.300 Millions
135000	Preference Shares	Rs. 100/- each	Rs.13.500 Millions
-	At the beginning of the year		-
-	Add: Additions during the year		-
135000	Less: Reduction during the year		Rs. 13.500 Millions
-	At the end of the year		-
	Total		Rs. 120.300 Millions

Cumulative Redeemable Preference shares shall be redeemed within years from the date of allotment or earlier than that as the company may deem fit.

Details of shares in the company held by each shareholder holding more than 5 % of shares is as under

As on 31.03.2012

Name of the Shareholder	No of Share
Sunrise Manufacturing Company Limited	4595075
Pravasi Enterprises Limited	240050
Andheri Properties and Finance Limited	2596819

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		120.300	133.800	133.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		116.454	112.724	72.457
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		236.754	246.524	206.257
LOAN FUNDS
1] Secured Loans		170.803	138.986	139.939
2] Unsecured Loans		0.285	0.285	0.000
TOTAL BORROWING		171.088	139.271	139.939
DEFERRED TAX LIABILITIES		59.018	58.894	62.808
TOTAL		466.860	444.689	409.004
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		373.499	300.956	301.495
Capital work-in-progress		6.717	52.548	1.765
INVESTMENT		17.876	17.876	17.875
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		0.699	0.699	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	73.960	53.062	46.690
	Sundry Debtors	57.300	61.023	47.257
	Cash & Bank Balances	28.352	24.807	19.808
	Other Current Assets	14.652	19.779	0.000
	Loans & Advances	11.823	27.208	30.029
Total Current Assets		186.087	185.879	143.784
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	55.796	42.062
	Other Current Liabilities	51.510	44.350	43.332
	Provisions	10.712	26.857	12.583
Total Current Liabilities		118.018	113.269	55.915
Net Current Assets		68.069	72.610	87.869
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		466.680	444.689	409.004

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	428.011	493.409	375.913
		Other Income	12.723	7.631	5.627
		TOTAL (A)	440.734	501.040	381.540
Less	EXPENSES
		Cost of material consumed	147.706	130.807
		Purchase of stock in trade	0.104	0.478
		Changes in Inventories of finished goods, Works in Progress and Stock in trade	(20.823)	(2.333)
		Employee Benefit Expenses	81.150	82.841
		Other Expenses	170.487	187.916
		TOTAL (B)	378.624	399.709	310.871
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		62.110	101.331	70.669
Less	FINANCIAL EXPENSES (D)		24.355	19.714	17.518
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		37.755	81.617	53.151
Less/ Add	DEPRECIATION/ AMORTISATION (F)		33.777	29.211	27.983
	PROFIT BEFORE TAX (E-F)		3.978	52.406	25.168
Less	TAX		0.523	10.570	7.579
Less/ Add	MAT CREDIT ENTITLEMENT		0.413	0.000	4.180
	PROFIT AFTER TAX		3.868	41.836	21.769
Less/ Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		58.494	18.227	(1.273)
Less	APPROPRIATIONS
		Provision for arrears of Dividend on Cumulative Redeemable Preference Shares	0.000	0.000	1.471
		Proposed Dividend on Cumulative Redeemable Preference Shares	0.000	1.350	0.470
		Corporate Tax on Dividend	0.000	0.219	0.328
	BALANCE CARRIED TO THE B/S		62.362	58.494	18.227
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	230.074	296.580	166.483
	TOTAL EARNINGS		230.074	296.580	166.483
	IMPORTS
		Raw Materials	55.463	48.498	36.721
		Stores & Spares	5.488	10.497	7.864
	TOTAL IMPORTS		60.951	58.995	44.585
	Earnings Per Share (Rs.)		0.31	3.35	1.62

QUARTERLY / SUMMARISED RESULTS

(Rs in Millions)

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	114.100	133.900
Total Expenditure	106.100	118.200
PBIDT (Excl OI)	8.000	15.700
Other Income	0.000	2.800
Operating Profit	8.000	18.500
Interest	6.900	7.300
Exceptional Items	0.000	0.000
PBDT	1.100	11.200
Depreciation	9.700	9.800
Profit Before Tax	(8.600)	1.400
Tax	(3.000)	(0.600)
Provision and Contingencies	0.000	0.000
Profit After Tax	(5.600)	2.000
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit / Loss	(5.600)	2.000

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.87	8.35	5.71
Net Profit Margin (PBT/Sales)	(%)	0.93	10.62	6.69
Return on Total Assets (PBT/Total Assets}	(%)	0.71	10.76	0.05
Return on Investment (ROI) (PBT/Networth)		0.02	0.21	0.12
Debt Equity Ratio (Total Liability/Networth)		1.22	1.03	0.95
Current Ratio (Current Asset/Current Liability)		1.57	1.64	2.57

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

REVIEW OF OPERATIONS

Sales Revenue Rs. 440.734 Millions for the year ending 31st March 2012 as compared to Rs501.040 Millions previous year. Net Profit after tax for the year is Rs. 3.868 Millions as compared to Rs.41.836 Millions in the previous year. This year was challenging on various fronts, via upward pressure on key raw materials prices along with increased competition in global ferrites market, down fall in international market.

FUTURE OUTLOOKS EXPANSION

Various cost cutting measures ore being taken in o structured manner. Besides, different market segments are being explored to increase the order book and thereby better capacity utilization. It is expected that performance in current year will be much better. Company had undertaken on expansion project to increase the capacity by 50%. Project has been commissioned on 28 April 2011

OUTLOOK

The outlook for the industry and the company looks bright and new markets in the global arena are being developed by the company. The company is also focusing on cost cutting and increased productivity to enhance its competitiveness

MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis has been discussed in detail and is annexed to the Directors Report.

CONTINGENT LIABILITIES AND COMMITMENTS

(Rs in millions)

Particulars	Amount
	As at 31.03.2012
Contingent Liabilities
a) Claims against the company not acknowledged as debts	31.97
b) Income Tax & Excise duty demands disputed in appeals and against which payments made Rs. 1.000 Millions (previous year 1.621 Millions)	30.27
c) Bank Guarantee	20.00
d) Bill discounted with Banks	75.85
Commitments
a) Estimated amount of contracts (net of advances) remaining
to be executed on capital account and not provided for	-
b) Letter of credits opened for which the material has not
yet been shipped	150.55

AUDITED STANDALONE FINANCIAL RESULTS

(Rs in Millions)

PART I		Quarter Ended		Year to date
Particulars		30.09.2012	30.06.2012	30.09.2012
1	lncome from operations
	a. Net Sales/lncome from Operations (Net of excise duty)	133.300	110.500	243.800
	b Other Operating lncome	0.600	3.600	3.600
	Total	133.900	114.100	247.400
2	Expenses
	a (lncrease) /decrease in finished goods, stock in trade and work in progress	5.600	(5.200)	(4.000)
	b. Consumption of raw materials	36.400	38.800	75.200
	c. Purchase of traded goods	0.200	0.100	0.200
	d Employees cost	24.900	23.600	48.500
	e. Depreciation	9.800	9.700	19.500
	f. Power & Fuel	18.000	16.100	34.100
	S Stores, Spares & Packing Material	17.700	15.500	33.200
	h. Other Expenses	15.400	17.200	33.000
	Total	128.000	115.800	243.300
3	Profit/(Loss) from operations before other lncome, finance costs and exceptional items (1-2)	5.900	(1.700)	4.100
4	Other lncome	2.800	0.000	2.800
5	Profit/(Loss) before finance costs and I exceptional items (3+4	8.700	(1.700)	6.900
6	Finance Costs	7.300	6.900	14.100
7	Profit/(Loss) after finance costs but before exceptional items (5-6)	1.400	(8.600)	(7.200)
8	Exceptional items	0.000	0.000	0.000
9	Profit/(Loss) before tax (7+8)	1.400	(8.600)	(7.200)
10	Tax expense	(0.600)	(3.000)	(3.600)
11	Net Profit/(Loss) after tax (9-10)	2.000	(5.600)	(3.600)
12	Extraordinary Items (net of tax expense Rs. Nil)	0.000	0.000	0.000
13	Net Profit/(Loss) for the period (11+12)	2.000	(5.600)	(3.600)
14	Paid-up equity share capital of Rs. 10/- each Reserves excluding	120.300	120.300	120.300
15	Revaluation Reserves as per Balance Sheet of previous year	0.000	0.000	0.000
16	Earnings Per Share of Rs. 10/- each (not annualised) Basic (Rs.) Diluted (Rs.)	0.16 0.16	(0.46) (0.46)	(0.30 (0.30)

PART I		Quarter Ended		Year to date
Particulars A PARTICULARS OF SHAREHOLDERS		30.09.2012	30.06.2012	30.09.2012
	1. Public Shareholding
	No. of shares	4403056	4403056	4403056
	Percentage of shareholding	36.60	36.60	36.60
	2. Promoter and Promoter group Shareholding
	a. Pledged/Encumbered	NIL	NIL	NIL
	-Number of Shares
	Percentage of Shares(as a % of total
	shareholding of promoter group)
	-Percentage of Shares(as a % of the total
	Share Capital of Company)
	b Non-Encumbered
	-Number of Shares	7626944	7626944	7626944
	-Percentage of Shares(as a % of total
	shareholding of promoter group)	100	100	100
	-Percentage of Shares(as a % of the total
	Share Capital of Company	63.40	63.40	63.40

Particulars	Quarter ended 30.09.2012
B INVESTERS COMPLAINTS
Pending at the beginning of the quarter	NIL
Received during the quarter	NIL
Disposed off during the quarter	NIL
Remaining unresolved at the end of the quarter	NIL

AUDITED STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rs in Millions)

Particulars	As at
	30.09.2012
A EQUITY AND LIABILITIES
1. Shareholders'funds
(a) Share Capital	120.300
(b) Reserves & surplus	112.900
Sub-total	233.200
2. Non-current liabilities
(a) Long-term borrowings	52.800
(b) Deferred tax liabilities (net)	55.300
(c) Other long-term liabilities	0.300
(d) Long-term provisions	8.500
Sub-total	116.900
3. Current liabilities
(a) Short-term borrowings	107.900
(b) Trade payables	57.600
(c) Other current liabilities	57.100
(d) Short-term provisions	1.700
Sub-total	224.300
Total	574.400
B ASSETS
1. Non-current assets
(a) Fixed assets	370.600
(b) Non-current investments	17.900
(c) Long-term loans and advances	5.800
(d) Other non-current assets	0.700
Sub-total	395.000
2. Current assets
(a) Inventories	76.200
(b) Trade receivables	64.000
(c) Cash and cash equivalents	11.800
(d) Short-term loans and advances	7.000
(e) Other current assets	20.400
Sub-total	179.400
Total	574.400

FIXED ASSETS

· Land and Building

· Plant and Machinery

· Office Equipment

· Furniture and Fixture

· Vechiles

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. 55.34
UK Pound	1	Rs. 88.30
Euro	1	Rs. 71.37

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		35

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.