MIRA INFORM REPORT

Report Date :

24.11.2012

IDENTIFICATION DETAILS

Name :	SANDOZ PRIVATE LIMITED
Registered Office :	Sandoz House, Dr. A. B. Road, Worli, Mumbai – 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.03.1995
Com. Reg. No.:	11-086989
Capital Investment / Paid-up Capital :	Rs.32.000 millions
CIN No.: [Company Identification No.]	U24230MH1995PTC086989
IEC No.:	MUMN06026G
TAN No.: [Tax Deduction & Collection Account No.]	AAACS9267J
PAN No.: [Permanent Account No.]	Private Limited Liability Company
Legal Form :	Manufacturers, Importers and Exporters of Drugs and Tablets etc.
Line of Business :	1500 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

A (62)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 7300000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Novartis Holding AG, Switzerland. It is a well established company having good track. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. Company can be considered good for normal business dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	Sandoz House, Dr. A. B. Road, Worli, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-24939258 / 24981620 / 24982095 / 27639157 / 27639335
Fax No.:	91-22-24981620 / 56512121 / 24982099 / 27639064 / 27639012
E-Mail :	vaibhav.karandikar@sandoz.com atul.powale@sandoz.com yezdi.dhabhar@sandoz.com accounts@sandoz.com rohit.bagadia@sandoz.com
Website :	http://www.sandoz.com
Location:	Owned
Corporate Office :	Sandoz House, Shivsagar Estate, A Block, 6^th Floor, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-24981623
Factory:	MIDC, Plot No. 8-A/2, 8-B TTC Industrial Area, Kawle Block, Village Dighe, Opposite Thane Belapur Road, Navi Mumbai – 400 708, Maharashtra, India
Tel No.:	91-22-24982091
Fax No. :	91-22-24982099
Branch 1 :	P.O. Sandoz Baug Kolshet Road, Thane 400607, Maharashtra, India
Tel. No.:	91-22-25314080
Fax No.:	91-22-25314111
Branch 2 :	7^th Floor, Peninsula Towers, Corporate Park, Ganpatrao Kadam Marg, Off Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-56512100
Fax No.:	91-22-56512121
Production Site :	Plot No. D-31 and plot No. D-32, MIDC, TTC Industrial Area, Turbhe, Navi Mumbai – 400705, Maharashtra, India
Tel No.:	91-22-55910485
Fax No. :	91-22-55910472

DIRECTORS

As on: 19.09.2011

Name :

Mr. Mohit Jagdish Malhotra

Designation :

Director

Address :

A-29/B, DDA Flats, Munirka, New Delhi-110067, India

Date of Birth/Age :

03.04.1970

Date of Appointment :

01.07.2010

Din No.:

03061163

Name :

Mr. Govindarajan Venkatachary

Designation :

Director

Address :

204, Vakratonda, Bhakti Mandir Road, Thane – 400602, Maharashtra, India

Date of Birth/Age :

24.08.1951

Qualification :

B. Sc

Date of Appointment :

14.04.2008

Din No.:

00819520

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U73100MH2004PTC169592	HEXAL PHARMA PRIVATE LIMITED	Director	19-08-05	19-08-05	Active	NO
2	U24230MH1995PTC086989	SANDOZ PRIVATE LIMITED	Director	11-08-08	14-04-08	Active	NO

Name :

Mr. Cesare Frontini

Designation :

Director

Address :

Herzog – Heinrich – STR 15 80336 Munchen, Germany-000000

Date of Birth/Age :

01.12.1966

Date of Appointment :

14.04.2008

Din No.:

02051887

Name :

Mr. Anshuman Tikaram Sharma

Designation :

Director

Address:

Flat No. 901, 9^th Floor, Seaking Plot-217, AHK Bhaba Road, Bandstand, Bandra (West), Mumbai-400050, Maharashtra, India

Date of Birth/Age :

30.08.1965

Date of Appointment:

09.06.2010

Din No.:

02225737

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U64120MH2006PTC159808	ACTVE DIGITAL SERVICES PRIVATE LIMITED	Director	20-05-08	20-05-08	05-01-10	Active	NO
2	U24230MH1995PTC086989	SANDOZ PRIVATE LIMITED	Alternate director	09-06-10	09-06-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 19.09.2011

Names of Shareholders	No. of Shares
Novartis Holding A G (Switzerland)	3199995
Novartis A G (Switzerland)	5
Total	3200000

As on: 19.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers, Importers and Exporters of Drugs and Tablets etc.
Products :	· Tablets · Bulk Drugs · Nasal Sprays

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity
Bulk Drugs and Drug Intermediates	Metric Tonnes	472
Tablets	Thousand Numbers	3501032
Capsules	Thousand Numbers	798968
Vials	Thousand Numbers	11290

Information in respect of Licensed Capacity is not furnished in view of withdrawal of licensing requirements vide Gazette Notification No. S.O. 477(E) dated 25th July, 1991.

The installed capacities, being a technical matter, are as certified by the management and not verified by the auditors.

Installed Capacity of previous year excludes the production capacity for Tablets and Granules produced in Turbhe plant as production was discontinued and assets were held for sale. During the previous year, 2,659 Thousand Tablets and 8.3 Metric Tonnes of Granules were produced.

Particulars	Unit	Actual Production
Bulk Drugs and Drug Intermediates	Metric Tonnes	1290
Formulation: Tablets	Thousand Numbers	1171471
Capsules	Thousand Numbers	463525
Nasal Sprays	Litres	10210
Kit (Combi Pack of Capsules and Tablets)	Thousand Numbers	4025
Granules	Kgs	--
Injectables	Thousand Vials/Ampoules	2156

GENERAL INFORMATION

Customers:

· Sandoz AG

· Novartis India Limited

· Sandoz International GmbH

· Novartis (Bangladesh) Limited

· Novartis Pharma (Pakistan) Limited

· Novartis Corporation (Malaysia)

· Novartis Animal Health Australasia Pty Limited

· Novartis Taiwan Company Limited

· PT Novartis Indonesia

· Novartis Healthcare Private Limited

· Sandoz Pty Limited

· LEK Pharmaceuticals D D

· Novartis Consumer Health SA, Nyon

· Sandoz S.A (Pty) Limited

· Novartis Bangladesh Limited

· Hexal (Sandoz) Korea

· Novartis Healthcare Private Limited

· Novartis ( Thailand) Limited

No. of Employees :

1500 [Approximately]

Bankers :

· Standard Chartered Bank, 90, M G Road, Fort, Mumbai – 400001, Maharashtra, India

· BNP Paribas, 62, Homji Street, Fort, Mumbai – 400001, Maharashtra, India

· Union Bank of India, Union Bank Bhavan, First Floor, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Particulars	As on 31.03.2011 (Rs. In Millions)	As on 31.03.2010 (Rs. In Millions)
SECURED LOANS
From Banks
Rupee term loans banks secured	353.387	586.117
Total	353.387	586.117
UNSECURED LOANS
Rupee term loans banks unsecured	1198.000	1610.017
Working capital loans banks unsecured	81.240	60.933
From Others Inter-corporate Deposits (repayable on demand)	5435.000	4263.658
Total	6714.240	5934.608

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountant
Address :	252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400028, Maharashtra, India
PAN No.:	AAEFP5579P
Holding Company :	Novartis Holding AG, Basel, Switzerland
Ultimate Holding Company:	Novartis AG, Basel, Switzerland
Associates/Subsidiaries :	· Chiron Behring Vaccines Private Limited · CIN: U24230MH1997PTC111122 · Novartis Healthcare Private Limited · CIN: U15202MH1997PTC111257 · Novartis India Limited · CIN: L24200MH1947PLC006104 · Hexal (Sandoz) Korea · Hexal AG · JenaHexal Pharma Gmbh · LEK Pharmaceuticals D D · LEK S.A · Novartis Animal Health Australasia Pty Limited · Novartis Bangladesh Limited · Novartis Biociencias S.A. · Novartis Consumer Health SA, Nyon · Novartis Consumer Health, Inc · Novartis Corporation (Malaysia) · Novartis France SA · Novartis International AG · Novartis International Pharma AG · Novartis Pharma (Pakistan) Limited · Novartis Pharma LLC · Novartis Pharma AG · Novartis Pharma Services AG. · Novartis Vaccines and Diagnostics · Novartis Thailand Limited · PT Novartis Indonesia · PT Sandoz Indonesia · Salutas Pharma GmbH · Sandoz Turkey · Sandoz AG · Sandoz do Brazil Industria · Sandoz Canada Inc. · Sandoz GmbH · Sandoz Iiac Sanayi Ve Ticaret A.S. · Sandoz Inc. · Sandoz International GmbH · Sandoz K K · Sandoz Philippines Corporation · Sandoz Pty Ltd · Sandoz (SA) Pty Limited · Sandoz D.O.O.

CAPITAL STRUCTURE

As no: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10 each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3200000	Equity Shares	Rs.10 each	Rs.32.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		32.000	32.000	32.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1797.299	1471.108	1500.147
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1829.299	1503.108	1532.147
LOAN FUNDS
1] Secured Loans		353.387	586.117	367.902
2] Unsecured Loans		6714.240	5934.608	5594.067
TOTAL BORROWING		7067.627	6520.725	5961.969
DEFERRED TAX LIABILITIES		145.235	0.000	0.000
TOTAL		9042.161	8023.833	7494.116
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5024.742	4520.764	4618.039
Capital work-in-progress		262.230	843.698	430.247
INVESTMENT		0.000	1.200	1.200
DEFERREX TAX ASSETS		0.000	2.847	28.879
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4776.148	3169.124	2181.858
	Sundry Debtors	1382.573	1751.052	1676.465
	Cash & Bank Balances	45.900	25.152	19.283
	Other Current Assets	5.526	11.457	3.457
	Loans & Advances	1646.234	1543.368	1224.263
Total Current Assets		7856.381	6500.153	5105.326
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3052.409	3512.337	2382.885
	Other Current Liabilities	854.197	78.695	97.687
	Provisions	194.586	253.797	209.003
Total Current Liabilities		4101.192	3844.829	2689.575
Net Current Assets		3755.189	2655.324	2415.751
MISCELLANEOUS EXPENSES		0.0000	0.000	0.000
TOTAL		9042.161	8023.833	7494.116

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	9648.000	8395.875	6435.123
		Sale of Services	1591.000	1330.669	1312.917
		Other Income	146.000	122.848	211.135
		TOTAL	11385.000	9849.392	7959.175
Less	EXPENSES
		Office Expenses		5533.344	3790.633
		Administrative Expenses		3307.422	3188.524
		Advertising Expenses		109.361	(79.500)
		TOTAL	10911.000	8950.127	6899.657
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)		(Including finance and depreciation Expenses)	899.265	1059.518
Less	FINANCIAL EXPENSES			360.939	599.135
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION			538.326	460.383
Less/ Add	DEPRECIATION/ AMORTISATION			534.962	507.417
	PROFIT BEFORE TAX		474.000	3.364	(47.034)
Less	TAX		148.000	32.403	24.499
	PROFIT AFTER TAX		326.000	(29.039)	(71.533)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1372.897	1401.936	1473.469
	BALANCE CARRIED TO THE B/S		1698.897	1372.897	1401.936
	IMPORTS
		Raw Materials	2570.501	3624.077	0.000
		Packing Materials	132.007	108.612	0.000
		Finished Goods	1.217	453.109	0.000
		Capital Goods	157.306	285.176	0.000
		Spares and Consumables	33.382	60.338	0.000
	TOTAL IMPORTS		2894.413	4531.312	0.000
	Earnings Per Share (Rs.)		101.93	(9.07)	(22.35)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.86	(0.29)	(0.90)
Net Profit Margin (PBT/Sales)	(%)	4.91	0.04	(0.73)
Return on Total Assets (PBT/Total Assets}	(%)	3.67	0.03	(0.48)
Return on Investment (ROI) (PBT/Networth)		0.26	0.00	(0.03)
Debt Equity Ratio (Total Liability/Networth)		6.11	6.90	5.65
Current Ratio (Current Asset/Current Liability)		1.91	1.69	1.90

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	Yes
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	No

Bankers Charges Report as per Registry

Corporate identity number of the company	U24230MH1995PTC086989
Name of the company	SANDOZ PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sandoz House, Dr. A. B. Road, Worli, Mumbai – 400018, Maharashtra, India
This form is for	· Modification of charge
Charge identification (ID) number of the charge to be modified	90158196
Type of charge	· Book Debts · Movable Property · Floating Charge
Particular of charge holder	Standard Chartered Bank, 90, M G Road, Fort, Mumbai – 400001, Maharashtra, India Email ID: reenabang@rediffmail.com
Nature of instrument creating charge	Supplemental Deed of Hypothecation executed by Company in favour of Standard Chartered Bank, Union Bank of India and BNP Paribas
Date of instrument Creating the charge	28.03.2007
Amount secured by the charge	Rs.1080.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As determined by the Banks from time to time. Terms of Repayment As determined by Bank from time to time Margin As applicable, if any Extent and Operation of the charge Hypothecation by way of first pari passu charge on: a) the whole of the stocks of raw materials, goods in process and semi finished, finished and manufactured goods and articles, both present and future. b) present and future raw materials, work in process, stores and spares, packaging materials and finished goods, all other current assets and all present and future book debts, o/s moneys, receivables, claims and bills. Others The sharing of the following three Banks is as under: 1) Union Bank of India: Fund Based - Rs.50.000 Millions and Non Fund Based - Rs.5.000 millions - Total Rs.55.000 Millions 2) BNP Paribas: Fund Based - Rs.400.000 Millions and Non Fund Based - Rs.75.000 Millions - Total Rs.475.000 Millions 3) Standard Chartered Bank: Fund Based - Rs.400.000 Millions and Non Fund Based - Rs.1.500 millions - Total Rs.550.000 Millions Total Charge is on Rs.1080.000 millions.
Short particulars of the property charged	Hypothecation by way of first pari passu charge on: a) the whole of the stocks of raw materials, goods in process and semi finished, finished and manufactured goods and articles, both present and future. b) present and future raw materials, work in process, stores and spares, packaging materials and finished goods, all other current assets and all present and future book debts, o/s moneys, receivables, claims and bills.
Date of latest modification prior to the present modification	20.05.2004
Particulars of the present modification	By way of present modification, the charge amount enhanced from Rs.700.000 millions to Rs.1080.000 millions. All other terms and conditions shall remains the same.

CONTINGENT LIABILITIES:

Particulars	31.03.2011	31.03.2010
(a) Income-tax matters
(i) Matters decided in favour of the company but disputed further by the income-tax authorities	187.392	191.492
(ii) Matters decided against the company in respect of which the company has preferred an appeal	423.066	312.697
	610.458	504.189
(b) Sales tax matters	9.434	38.722
(c) Excise, Service Tax and Customs matters	29.950	99.542
Note: Future cash outflows in respect of above are determinable only on receipt of judgments /decisions pending with various forums/authorities.
(d) Guarantees given by banks to third parties on behalf of the company	43.641	39.993
(e) Outstanding letters of credit issued by the bank	2.336	22.320

Disclosure of Amalgamations

Pursuant to a Scheme of Amalgamation of erstwhile Hexal Pharma Private Limited with the company as sanctioned by the Honourable High Court of Bombay on 25^th March, 2011, the assets and liabilities of Hexal Pharma Private Limited were transferred to and vested in the company with effect from 1st April, 2010. The scheme has accordingly been given effect to in these Financial Statements. The scheme has been accounted for under the pooling of interests method as prescribed by Accounting Standard (AS-14), notified under sub-section (3C) of Section 211 of the Act. Accordingly, the assets, liabilities and other reserves of the erstwhile subsidiary as at the aforementioned date have been taken over at their book values. There has been no adjustment for differences in accounting policies between the companies.

FIXED ASSETS

• Trademarks
• Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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.55.34
UK Pound	1	Rs.88.30
Euro	1	Rs.71.37

INFORMATION DETAILS

Report Prepared by :

DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		62

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

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.