MIRA INFORM REPORT

Report Date :

24.11.2012

IDENTIFICATION DETAILS

Name :	LANXESS INDIA PRIVATE LIMITED
Registered Office :	Lanxess House, Plot No. A 162, A 163, A 164, Road No. 27, Wagle Estate, Opposite ITI College, MIDC, Thane-400604 (West), Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.02.2004
Com. Reg. No.:	11-158377
Capital Investment / Paid-up Capital :	Rs. 5784.088 Millions
CIN No.: [Company Identification No.]	U24119MH2004PTC158377
TAN No.: [Tax Deduction & Collection Account No.]	PNEL03844B
PAN No.: [Permanent Account No.]	AACCB3880A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Specialty Chemicals.
No. of Employees :	Information dined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 30000000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a 100% subsidiary of Lanxess Deutschland GmbH, Germany. It is established company having moderate track record. The financial detail for the current year is missing from the government department. However, from the previous year record company seems to be having satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be unknown.

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

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.

INFORMATION DECLINED BY

Name :	Mr. Deepak Padvale
Designation :	Treasury Head Department
Contact No.:	91-22-25871000
Date :	23.11.2012

LOCATIONS

Registered Office/ Factory 1 :	Lanxess House, Plot No. A 162, A 163, A 164, Road No. 27, Wagle Estate, Opposite ITI College, MIDC, Thane-400604 (West), Maharashtra, India
Tel. No.:	91-22-25871000 / 25311234/21729200
Fax No.:	91-22-25455039
Email :	sreeram.venkey@lanxess.com
Website :	http://www.lanxess.com
Factory 2 :	29/3, Valayankulam Village, Aruppukottai Road, Madurai-625022, Tamilnadu, India
Factory 3 :	Post – Birlagram, Nagda, District Ujjain - 456331, Madhya Pradesh, India
Factory 4 :	Plot No. 748/2/A, GIDC, Jhagadia Industrial Estate, District Bharuch - 393110, India
Headquarters:	Michael Wuest, Konrad-Adenaue-Ufer 41-45, D-50668 Koln, Postfach 10 03 44, D-50443, Koln Germany
Tel. No.:	49 221 1647 190
Fax No.:	49 221 1647 281
E-Mail :	michael.wuest.mw@bayerchemicals.com
Branch Office :	LOCATED AT: v Chennai v New Delhi v Kolkata

DIRECTORS

AS ON 09.08.2011

Name :	Dr. Rainier Van Roessel
Designation :	Chairman
Address :	Merkel Weg, 1A, Bergisch Gladbach, Bergisch Gladbach – 51427, Netherlands
Date of Birth/Age :	04.08.1957
Date of Appointment :	30.08.2007
Din :	01599378
Name :	Mr. Neelanjan Sarojkumar Banerjee
Designation :	Whole-time Director
Address :	7-C, Popular House, Eden Eoods, Pokhran Road No. 2, Thane - 400610
Date of Birth/Age :	02.03.1973
Date of Appointment :	09.08.2010
Din :	02743360
Name :	Dr. Joerg Strassburger
Designation :	Managing Director
Address :	Lanxess India Private Limited, Kolshet Road, Thane [West], Thane – 400607, Maharashtra, India
Date of Birth/Age :	29.02.1964
Date of Appointment :	10.03.2005
Din :	00223839
Name :	Mr. K.R.V. Subramanian
Designation :	Director
Address :	8, Rushilla, 17C, Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	26.09.1933
Date of Appointment :	17.06.2004
Din :	00005292
Name :	Mr. Venkatesh Sankaran
Designation :	Director
Address :	10/58-59 Savita, Chedda Nagar, Chembur, Mumbai – 400089, Maharashtra, India
Date of Birth/Age :	05.10.1960
Date of Appointment :	10.03.2005
Din :	00012517
Name :	Dr. Dattaprasad Talekar
Designation :	Director
Address :	Flat No. 403, Building No. 3, Wimbledon park, Pokhran Road No. 1, Opposite JK School, Thane – 400602, Maharashtra, India
Date of Birth/Age :	28.08.1957
Date of Appointment :	10.03.2005
Din :	00012595

KEY EXECUTIVES

Name :	Mr. Sreeram Venkey
Designation :	Secretary
Address :	8, Siddhivinayaka Vignahara CHS Limited, Chedda Nagar, Chembur, Mumbai – 400089, Maharashtra, India
Date of Birth/Age :	03.07.1962
Date of Appointment :	01.07.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Names of Shareholders	No. of Equity Shares
Lanxess Deutschland GMBH (Germany)	29509844
Lanxess Deutschland GMBH Jointly With Venkatesh Sankaran (Germany)	1
Lanxess Deutschland GMBH Jointly With Sreeram Venkey (Germany)	1
Lanxess Deutschland GMBH (Germany)	9998
Lanxess Deutschland GMBH Jointly With Venkatesh Sankaran (Germany)	1
Lanxess Deutschland GMBH Jointly With Dattaprasad Talekar (Germany)	1
Lanxess Deutschland GMBH (Germany)	206310000
Lanxess Deutschland GMBH (Germany)	404889000
Total	640718846
Names of Shareholders	No. of Preference Shares
Lanxess Deutschland GmbH, Germany	115200000
Total	115200000

AS ON 30.09.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Specialty Chemicals.

Products:

PRODUCT DESCRIPTION	ITC CODE
Benzaldehyde	2912
Benzyl Alcohol	2906
Thionyl Chloride	2812

PRODUCTION STATUS [As on 31.03.2011]

Particulars	Licensed and Installed Capacity	Actual Production
Manufacturing Chemicals and Chemical Intermediates	363569 MT and 20000 m3	207799
1. Installed Capacity mentioned above has been certified by the Management upon which auditors have relied. 2. Production is net off captive consumption for the year

GENERAL INFORMATION

No. of Employees :

Information dined by the management.

Bankers :

Not Available

Facilities :

Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Short Term Loan From Bank		220.000
Term Loans from Banks	2054.570	1050.000
Bank Overdraft		99.418
External Commercial Borrowings	2250.925	1424.115
Total	4305.495	2793.533

Banking Relations :

--

Auditors :

Name :

Sharp and Tannan Associates

Chartered Accountants

Address :

87, Nariman Bhavan, 227, Nariman Point, Mumbai – 400021, Maharashtra, India

PAN :

AAAFS1034J

Holding Company:

Lanxess Deutschland GmbH, Germany

Ultimate Holding Company :

Lanxess AG, Germany

Fellow Subsidiaries :

· Aliseca GmbH Germany

· Lanxess Pty. Limited. South Africa

· Lanxess Wuxi Chemical Company Limited. China

· Lanxess Buna Gmbh Germany

· Lanxess Butyle Pte. Limited Singapore

· Lanxess Central Eastern Europe S.R.O. Slovakia

· Lanxess Chemical China Company Limited China

· Lanxess Chemicals S.L. Spain

· Lanxess Corporation USA

· Lanxess Distribution Gmbh Germany

· Lanxess Elastomeres SAS France

· Lanxess Elastomeros Do Brazil SA Brazil

· Lanxess Emulsion Rubber S.A.S France

· Lanxess Finance B.V. Netherlands

· Lanxess Hong Kong Limited Hong Kong

· Lanxess Industria De Produtos Quimicos E Plasticos Limiteda. Brazil

· Lanxess International S.A. Switzerland

· Lanxess K.K. Japan

· Lanxess Korea Limited Korea

· Lanxess Limited United Kingdom

· Lanxess N.V. Belgium LANXESS Pte. Limited Singapore

· Lanxess Pty Limited - Australia

· Lanxess S.A. De C.V. Mexico

· Lanxess S.A. Argentina

· Lanxess S.A.S. France

· Lanxess S.R.L. Italy

· Lanxess Shanghai Pigments Company Limited China

· Lanxess Sybron Chemicals Inc. United States OOO

· Lanxess Russia Rhein Chemie Qingdao Limited China

· Rhein Chemie Corporation USA

· Rhein Chemie Japan Limited

· Rhein Chemie Rheinau Gmbh Germany

· Saltigo Gmbh Germany

Subsidiaries:

• Rubber Chemicals, Bayer Polychem (India) Limited

Kolshet Road, Thane – 400 607, Maharashtra

Tel. 91-22-25311779

Fax. 91-22-25455071

E-mail. ashok.malhan@bayermaterialscience.com

• Lanxess ABS Limited

CIN No.: L25200GJ1973PLC002436

CAPITAL STRUCTURE

AS ON 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
677407000	Equity Shares	Rs. 10/- each	Rs.6774.070 Millions
150000000	Preference Shares	Rs. 10/- each	Rs.1500.000 Millions
	Total		Rs.8274.070 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
640718846	Equity Shares	Rs. 10/- each	Rs.6407.188 Millions
144000000	Preference Shares	Rs. 10/- each	Rs.1440.000 Millions
	Total		Rs.7847.188 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
640718846	Equity Shares	Rs. 10/- each	Rs.6407.188 Millions
115200000	Preference Shares	Rs. 10/- each	Rs.1152.000 Millions
	Total		Rs.7559.188 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
467407000	Equity Shares	Rs. 10/- each	Rs. 4674.070 Millions
150000000	Preference Shares	Rs. 10/- each	Rs. 1500.000 Millions
	Total		Rs. 6174.070 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
434408846	Equity Shares [entirely held by LANXESS - Deutschland GmbH]	Rs. 10/- each	Rs.4344.088 Millions
144000000	4.5% Non Cumulative Non Convertible Redeemable Preference Shares [entirely held by LANXESS Deutschland GmbH, Germany Preference Shares are redeemable in 10 equal installments starting from 6^th year of the date of issue i.e. December 7, 2004 or any earlier period as per the discretion of the Board]	Rs. 10/- each	Rs.1440.000 Millions
	Total		Rs. 5784.088 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		5784.088	5474.938	1735.198
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1729.713	2018.780	1957.723
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7513.801	7493.718	3692.921
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		4305.495	2793.533	0.000
TOTAL BORROWING		4305.495	2793.533	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		11819.296	10287.251	3692.921
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7263.552	4530.268	220.630
Capital work-in-progress		1428.998	3310.624	933.734
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		340.232	24.463	113.223
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1634.112	1102.459	501.899
	Sundry Debtors	1636.218	1449.947	526.447
	Cash & Bank Balances	433.430	545.311	1283.885
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	811.980	714.410	719.381
Total Current Assets		4515.740	3812.127	3031.612
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	683.554	939.133	280.792
	Other Current Liabilities	1012.737	408.323	320.608
	Provisions	44.057	57.001	4.878
Total Current Liabilities		1740.348	1404.457	606.278
Net Current Assets		2775.392	2407.670	2425.334
MISCELLANEOUS EXPENSES		11.122	14.226	0.000
TOTAL		11819.296	10287.251	3692.921

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income			2835.960
		Other Income			224.800
		TOTAL (A)	7751.052	4745.714	3060.760
	EXPENSES
		Office Expenses
		Administrative Expenses	8375.058	4595.558	2839.670
		Advertising Expenses
		Other Expenses
		TOTAL (B)	8375.058	4595.558	2839.670
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				221.090
Less	FINANCIAL EXPENSES (D)				2.680
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				218.410
Less/ Add	DEPRECIATION/ AMORTISATION (F)				65.610
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		624.006	150.156	152.800
Less	TAX (H)		334.939	99.105	82.330
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		289.067	51.051	70.470
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	717.060
Less	PROFIT / LOSS UNDER SCHEME OF AMALGAMATION OF LANXESS PURIFICATION PRIVATE LIMITED		NA	NA	1.850
	BALANCE CARRIED TO THE B/S		NA	NA	785.680
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	2245.136	995.899	720.823
		Indenting Commission	213.571	185.613	161.120
		Marketing Services	11.858	13.158	17.091
		Manufacturing Services	0.000	0.352	4.445
		Sale of Information Technology Services	70.275	51.062	31.171
		Other Earnings	0.000	10.433	1.187
	TOTAL EARNINGS		2540.840	1256.517	935.837
	IMPORTS
		Raw Materials	1040.392	592.254	419.455
		Packing Materials	1.389	0.000	0.000
		Stores, Spares and Components	2.737	0.937	4.644
		Traded Goods	1327.031	1320.917	648.907
		Capital Goods	230.738	465.215	98.245
	TOTAL IMPORTS		2602.287	2379.323	1171.251
	Earnings/[Loss] Per Share (Rs.)		0.69	0.23	2.39

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	1.07	2.30
Net Profit Margin (PBT/Sales)	(%)	NA	NA	5.39
Return on Total Assets (PBT/Total Assets}	(%)	5.30	1.80	4.70
Return on Investment (ROI) (PBT/Networth)		0.08	0.02	0.04
Debt Equity Ratio (Total Liability/Networth)		0.80	0.56	0.16
Current Ratio (Current Asset/Current Liability)		2.59	2.71	5.00

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

PARTICULARS	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
SUNDRY CREDITORS
Micro and Small Enterprises	--	2.560	--
Others	683.554	936.573	280.792
Total	683.554	939.133	280.792

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	Yes
10]	Designation of contact person	Yes
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	No
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FINANCIAL PERFORMANCE

SALES:

The Company achieved a strong sales growth of 65% from Rs. 4669 millions the previous year to Rs 7686 millions Advanced Intermediate segment performed very positively throughout the year and grew by more than 100% led by Sales of Basic Chemicals now known as Advanced Industrial Intermediate (AII) from Nagda site. Exports have also seen an impressive growth of more than 100%, again coming from Nagda site and also from Jhagadia site after commissioning of Rubber chemicals (RUC) plant. Performance Polymer segment led by Semi Crystalline Products (SCP) grew by 76% over last year mainly coming from the growth in Automotive Industry.

Strong growth in Tire industry and commissioning of the RUC plant at Jhagadia site resulted in good performance by Performance Chemicals segment majorly from RheinChemie (RCH) with sales growth of 43% and RUC growing by 17%. Leather Chemicals (LEA) grew by 27%, due to improved market conditions.

The sales growth over the last 7 years has recorded a CAGR of 67%.

PROFITABILITY:

With an increase in the sales by 65%, the gross profit margins were maintained at 38%. The operating result before depreciation and amortization (EBITDA) pre exceptional was also maintained like last year. But earnings before Interest and Taxes (EBIT) declined sharply and resulted in a Net Loss for the year. Higher depreciation related to new projects capitalized during the year, interest costs for financing such projects and exceptional charges of X 302 mio for costs related to relocation of the production facility from Madurai to Jhagadia has impacted the bottom line of your Company. When all the capex projects at the sites at Jhagadia and Nagda starts generating revenue, the profitability of the Company would improve.

STATUS OF JHAGADIA PROJECT - The relocation of RUC plant from Thane to Jhagadia has been successfully completed and commercial production has started for all four production lines from April 2010. The ION Exchange plant has started sequential commissioning and commercial production of Polymer, Weak Acid Cation and Mixed bed sections. The Amination section will be commissioned in the 2nd quarter of 2011. The Company has started the project of Detailed Engineering and Civil construction of SCP (Semi Crystalline Products) on January 2011.

CONTINGENT LIABILITIES

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

RS. IN MILLIONS

PARTICULARS	31.03.2011	31.03.2010
a Central Excise Service Tax and VAT	6.236	1.566
b Advance Licenses against Export obligations	116.921	9.415
c Bank Guarantees	61.533	39.114
d The Collector of Stamps Ujjain has issued notices to the Company in respect of the Conveyance Deed for all the 10 Conveyances with respect to transfer of land at Nagda Madhya Pradesh. The main contention of the authorities is that the conveyance deeds are undervalued and the stamp duty should be paid on the enterprise value and not on the value of immovable properties conveyed. The Company has filed written submissions in the said matter and the case is pending. This being contingent in nature has not been provided for. NOTE: Future cash flows in respect of a above is determinable only on receipt of judgements/decisions pending with various forums/authorities.

FIXED ASSETS:

Intangible Assets –

· Computer Software

· Business Agency Rights

· Goodwill

· Customer Relationship

· Non-Compete Agreement

· Beneficial Chlorine Arrangement

Tangible Assets –

· Roads and Buildings

· Plant and Machinery

· Equipments

· Computers

· Furniture and Fixtures

· Motor and Vehicles

· Land

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 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

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.