MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	THE EIMCO-K.C.P. LIMITED (w.e.f.17.10.1968)
Formerly Known As :	THE EIMCO-K.C.P. PRIVATE LIMITED
Registered Office :	183, New No. 239, Ramakrishna Buildings, Annasalai, Chennai – 600 006, Tamil Nadu.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.09.1967
Com. Reg. No.:	18-005550
Capital Investment / Paid-up Capital :	Rs. 6.000 Millions
CIN No.: [Company Identification No.]	U27209TN1967PLC005550
IEC No.:	0488004586
TAN No.: [Tax Deduction & Collection Account No.]	CHET00256E
PAN No.: [Permanent Account No.]	AAACT2962M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Liquid Solids Separations Equipments
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 250000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered good for normal 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

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

Management Non Co-Operative

LOCATIONS

Registered Office :	183, New No. 239, Ramakrishna Buildings, Annasalai, Chennai – 600 006, Tamil Nadu, India
Tel. No.:	91-44-28555171 / 28555862
Fax No.:	91-44-28555863
E-Mail :	ekcp@md2.vsnl.net.in skcp@md2.vsnl.net.in
Location :	Owned
Factory :	11A, 3^rd Main Road, Industrial Estate, Anbattur, Chennai – 600 058, Tamil Nadu, India
Branch Office :	231, Arun Chambers, J. Dadaji Road, Tardeo, Mumbai - 400 034, Maharashtra, India
Tel. No.:	91-22-24944030
Fax No.:	91-22-24954608
E-Mail :	ekcp@md2.vsnl.net.in
Branch Offices :	Group’s offices Located in · Hyderabad · Mumbai · Cochin · Delhi · Kolkata · Bangalore

DIRECTORS

AS ON 28.09.2011

Name :	Ms. Irmgard Velagapudi
Designation :	Chairman
Address :	No. 15, Damodarapuram, Main Road, Chennai, Tamil Nadu, India
Date of Birth/Age :	18.09.1936
Date of Appointment :	18.10.2001
DIN No.:	00091370

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U65993TN1996PTC037113	DURGAMBA INVESTMENT PRIVATE LIMITED	Director	12/12/1996	12/12/1996	Active	NO
2	L15421TN1995PLC033198	K.C.P.SUGAR AND INDUSTRIES CORPORATION LIMITED	Managing director	29/03/2010	11/09/2000	Active	NO
3	U40105TN1992PTC022298	ENERGY DEVICE TECHNOLOGY (INDIA) PRIVATE LIMITED	Director	07/05/2001	07/05/2001	Active	NO
4	U74140TN1980PTC008358	V M RAO CONSULTANTS PRIVATE LIMITED	Director	20/08/2001	20/08/2001	Active	NO
5	U73100TN1998PLC041501	KCP SUGARS AGRICULTURAL RESEARCH FARMS LIMITED	Director	18/10/2001	18/10/2001	Active	NO
6	U27209TN1967PLC005550	THE EIMCO-K.C.P. LIMITED	Director	18/10/2001	18/10/2001	Active	NO

Name :	Ms. Velagapudi Kiran Rao
Designation :	Director
Address :	No. 11, 3^rd Street, Kasturi Estate, Chennai, Tamilnadu, India
Date of Birth/Age :	18.12.1964
Date of Appointment :	30.07.2003
DIN No.:	00091466

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	L15421TN1995PLC033198	K.C.P.SUGAR AND INDUSTRIES CORPORATION LIMITED	Whole-time director	29/07/2012	29/07/2002	Active	NO
2	U27209TN1967PLC005550	THE EIMCO-K.C.P. LIMITED	Director	31/07/2003	31/07/2003	Active	NO
3	U65993TN1996PTC037113	DURGAMBA INVESTMENT PRIVATE LIMITED	Director	31/08/2005	31/08/2005	Active	NO
4	U74140TN1980PTC008358	V M RAO CONSULTANTS PRIVATE LIMITED	Director	04/07/2007	04/07/2007	Active	NO
5	U55100TN2010PTC075641	AMETHYST CAFE PRIVATE LIMITED	Managing director	10/05/2010	10/05/2010	Active	NO

Name :	Mr. Jakka Satyanarayana
Designation :	Director
Address :	Old 76/5/1, New 34/5/1, Bazullah Road, T Nagar, Chennai, Tamilnadu, India
Date of Birth/Age :	15.05.1936
Date of Appointment :	14.02.2001
DIN No.:	00020580
Name :	Mr. Krishnaswamy Kalyanaraman
Designation :	Director appointed in causal vacancy
Address :	25, 3^rd Main Road, MC Nagar, Chitlapakkam, Chennai, Tamilnadu, India
Date of Birth/Age :	29.06.1945
Date of Appointment :	10.08.2007
DIN No.:	01761928

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2011

Names of Shareholders	No. of Shares
Irmgad Velagapudi M Rao	3
KCP Sugars and Industries Corporation Limited, India	599990
P.R. Ramakrishnan	1
R. Prabhu	1
Ramaniklala Kalyani	1
Vinod R Sethi	1
Kiran Rao	1
R. Ganesan	1
S. Chidambaram	1
Total	600000

AS ON 28.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Liquid Solids Separations Equipments

Products :

ITC Code No.	Product Description
842110	Solid Liquid Separation Equipment

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Actual Production
Filters , Besides Washers, Classifiers, Clarifiers, Components, Spares etc.	Nos.	4
	Nos.	11

GENERAL INFORMATION

No. of Employees :

150 (Approximately)

Bankers :

· Axis Bank Limited, CMC Centre, Karumuttu Nilayam, No.192, Anna Salai, Chennai-600002, Tamil Nadu, India

· Canara Bank, 787 Mount Road, Madras -600002, Tamil Nadu, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Bank Secured by exclusive charge on the entire current assets of the company and collaterally by hypothecation of entire movable fixed assets of the company along with equitable mortgage of factory land and building at Ambattur, Chennai.	40.241	75.383
Total	40.241	75.383
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Holding Company – KCP Sugar and Industries Corporation Limited	0.700	13.500
Total	0.700	13.500

Banking Relations :	--
Auditors :
Name :	B. Purushottam and Company Chartered Accountants
Address :	3-D Pioneer Homes, 23-A, North Boag Road, T. Nagar, Chennai-600017, Tamil Nadu, India
PAN No. :	AADFB9589N
Holding Company :	K.C.P.Sugar And Industries Corporation Limited CIN No. : L15421TN1995PLC033198

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs. 6.000 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		6.000	6.000	6.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		55.543	46.209	40.645
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		61.543	52.209	46.645
LOAN FUNDS
1] Secured Loans		40.241	75.383	86.522
2] Unsecured Loans		0.700	13.500	16.300
TOTAL BORROWING		40.941	88.883	102.822
DEFERRED TAX LIABILITIES		0.000	0.217	0.000
TOTAL		102.484	141.309	149.467
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.989	20.143	21.062
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.011	0.011
DEFERREX TAX ASSETS		0.637	0.000	0.154
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	72.567	76.457	65.166
	Sundry Debtors	91.438	117.757	160.841
	Cash & Bank Balances	18.695	11.914	11.654
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	36.172	30.642	25.689
Total Current Assets		218.872	236.770	263.350
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.048	59.322	83.002
	Other Current Liabilities	43.507	35.422	35.024
	Provisions	23.459	20.871	17.084
Total Current Liabilities		135.014	115.615	135.110
Net Current Assets		83.858	121.155	128.240
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		102.484	141.309	149.467

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	276.449	285.921	265.585
		Other Income	4.934	7.499	3.702
		TOTAL (A)	281.383	293.420	269.287
Less	EXPENSES
		Consumption Materials Changes Inventories	141.696	167.037
		Manufacturing Service Costs	32.564	38.524
		Employee Related Expenses	44.592	33.760
		Administrative Selling Other Expenses	36.659	28.600
		Prior Period Items	0.022	0.032
		TOTAL (B)	255.533	267.953	245.885
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.850	25.467	23.402
Less	FINANCIAL EXPENSES (D)		9.138	12.206	13.482
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.712	13.261	9.920
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.633	3.925	3.830
	PROFIT BEFORE TAX (E-F) (G)		13.079	9.336	6.090
Less	TAX (H)		3.745	3.771	2.774
	PROFIT AFTER TAX (G-H) (I)		9.334	5.565	3.316
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		34.206	28.641	25.325
	BALANCE CARRIED TO THE B/S		43.540	34.206	28.641
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	47.454	4.096	0.000
	TOTAL EARNINGS		47.454	4.096	0.000
	IMPORTS
		Components	NA	13.805	1.848
		Finished Goods	NA	0.000	1.044
	TOTAL IMPORTS		NA	13.805	2.892
	Earnings Per Share (Rs.)		15.56	9.27	5.53

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.32	1.90	1.23
Net Profit Margin (PBT/Sales)	(%)	4.73	3.27	2.29
Return on Total Assets (PBT/Total Assets}	(%)	5.52	3.63	2.14
Return on Investment (ROI) (PBT/Networth)		0.21	0.18	0.13
Debt Equity Ratio (Total Liability/Networth)		2.86	3.92	5.10
Current Ratio (Current Asset/Current Liability)		1.62	2.05	1.94

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	No

REVIEW OF OPERATIONS

During the period the Company has received Orders totaling to Rs.248.839 Millions as compared to Rs. 294.722 Millions during the previous year. From the enclosed Annual Accounts it may be noted that the income earned from the sale of product and services by the Company for the year ended 31st March 2011 was Rs.297.005 Millions as against Rs. 305.178 Millions in the previous year. The Profit was at Rs. 12.892 Millions for the year as against profit of Rs. 9.335 Millions for the previous year. After providing for current and deferred taxation, the net profit for the year was Rs. 9.334 Millions to which after adding the brought forward surplus of Rs. 34.205 Millions, the carry forward surplus to the next year amounted to Rs. 43.539 Millions

CONTINGENT LIABLITIES:

a). The Guarantees issued by the Company’s Bankers in favour of the customers against advances from them and other obligations amounting to Rs.80.541 Millions (Rs.70.988 Millions) are secured by stores and spares (including those lying with subcontractors), Work in progress and Finished goods.

b) No provision has been made towards:-

i). Disputed Sales Tax demands raised by the Sales Tax Authorities under TNGST and CST for the years 1991-92 and 1992-93 amounting to Rs.0.619 Million for which company preferred appeals before Appellate authorities. Pending decision in appeals an amount of Rs.48, 360/- has been paid under protest and the same is grouped under Loans and Advances.

ii) Disputed ESI demand raised by ESI authorities under ESI Act for the years 1990-91 to 1993-94 amounting to Rs.0.068 Million. Pending disposal of its appeal against the said demands the company paid Rs.0.015 Million under protest, and the same is grouped under Loans and Advances. Disputed ESI demand raised by ESI authorities under ESI Act for the years 2000-01 to 2003-04 amounting to Rs.0.106 Million. Pending disposal of its appeal against the said demands the company paid Rs.0.027 Million under protest, and the same is grouped under Loans and Advances.

iii) Disputed Income Tax demand raised by Income Tax authorities under Income Tax Act for the years 2007-08(A.Y-2008-2009) amounting to Rs.1.929 Millions including interest. Pending disposal of its appeal against the said demands with Commissioner of Income Tax Appeals (III).

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27209TN1967PLC005550
Name of the company	THE EIMCO-K.C.P. LIMITED
Address of the registered office or of the principal place of business in India of the company	183, New No. 239, Ramakrishna Buildings, Annasalai, Chennai – 600 006, Tamil Nadu, India E-mail Id : ekcp@md2.vsnl.net.in
This form is for	Modification of charge
	90288462
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Axis Bank Limited, CMC Centre, Karumuttu Nilayam, No.192, Anna Salai, Chennai-600002, Tamil Nadu, India E-mail Id : n.parameswaran@axisbank.com
Nature of instrument creating charge	Composite Hypothecation Deed (Current Assets, Movables, Plant and Machinery) Declaration cum Confirmation Deed of Confirmation For The Extension of Mortgage
Date of instrument Creating the charge	11.04.2011
Amount secured by the charge	Rs. 220.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash Credit : BR+3.25% i.e.12.25% EPC : up to 180 days BR+2.25% i.e.11.25% and beyond 180 days BR+3.25% i.e.12.25% FBP/FBN : up to 90 days 12.25% beyond 90 days 13.25% i.e. BR+4.25% (Base Rate : 9% p.a) Terms of repayment Cash Credit : Repayable on demand FBP/FBN : Repayable on due date Margin Cash Credit : 25% on Stocks an book debts (Cover period 120 days) EPC : Drawing will be permitted only against confirmed export orders / Letter of Credit lodged with the bank actual drawing will be permitted up to 80% of the FOB value of the confirmed export orders / letter of credit or 75% of the value of raw material / stock in process, finished goods, which is lower. Bank Guarantee : 100% cash margin Other Nature of Facilities Existing Modified (Rs. in millions) Cash Credit 100.000 100.000 EPC (Sub Limit to CC) (5.000) (5.000) FBP/FBN(Sub Limit to CC) (5.000) (5.000) LER(Sub Limit to CC) - - - (1.200) BG 100.000 120.000 LC (Sub-Limit to BG) (30.000) (30.000) Total 200.000 220.000 All other terms and conditions as per sanction letter and Instruments executed.
Short particulars of the property charged (Including location of the property)	Hypothecation on Exclusive Charge on all movable goods, stock of raw material, work in progress, semi finished goods and finished goods such as mechanical bar screens, GRIT collectors/detritors etc. Hypothecation by way of Exclusive Charge in favour of the bank on all the present and future Book debts, Outstanding monies, receivables, claims, contracts, securities, investment, rights, etc., Hypothecation by way of First Charge on all the tangible movable plant and machinery, furniture, fixtures, fittings, other installations, electrical fittings, computers and other accessories, vehicles Extention of EM situated at Plot No.11-A at Ambattur Industrial Estate, Saidapet Tk, Athipet Village and Chinglepet M. G. R. District, measuring about 1.84 Acres Comprised in S No. 453, 454 and 455(1,2 part)
Date of instrument modifying the charge	24.09.2008
Particulars of the present modification	The amount secured by the charge has been Enhanced from Rs. 200.000 millions to Rs. 220.000 millions All other terms and conditions of the original charge and the subsequent modification remains unchanged.

FIXED ASSETS:

• Land
• Buildings
• Plant and Machinery
• Furniture and Fittings
• Computers
• Knowhow and Design
• Vehicles

WEB SITE DETAILS

PROFILE

Subject is one of the supplier of equipment and technology in India for Liquid - Solid separation and Biological treatment processes. The company's products and technical services are extensively used in Mineral processing, Chemical processing, Food processing, Refining, Pulp and paper manufacturing, Municipal and Industrial water and waste water treatment.

Milestones

1967	The Eimco-KCP Limited, was launched in the year 1967 as a joint venture company between EIMCO-K.C.P. Limited, Chennai, India and EIMCO Corporation, USA.
1970	In the 1970's, EIMCO Corporation was taken over by Envirotech Corporation.
1984	The joint venture existed until Baker International, USA took over the Envirotech Corporation, USA in 1984. Eimco-KCP paid a lump sum for the EIMCO drawings and manuals and took possession of the same updated until 1984, thus becoming a wholly owned subsidiary of the KCP Limited.
1996	From 01.04.1996 Eimco-KCP Limited has become a wholly owned subsidiary of KCP sugars and Industries Corporation Limited, Chennai, India.
1997	The Eimco-KCP Limited has obtained ISO 9001 certification from LRQA in Feb 1997.

Management

Smt. Irmgard Velagapudi M. Rao, Chair Person

Smt. Irmgard Velagapudi M. Rao, aged 70 years, is a German National, wife of Sri. V. M. Rao, the Promoter of this Company, and holds a German Diploma in Commerce. She was instrumental in managing the Company through one of the most difficult times for the industry and the Company and her sustained efforts had resulted in the improved crushing and profitability.

Shri. Vinod R. Sethi, Group Chairman

Vinod R. Sethi, aged 44 years, is a Chemical Engineers from Indian Institute of Technology, Mumbai, and an MBA (Finance) and a Beta Gamma Sigma Graduate from New York University. He established the Indian business for Morgan Stanley and was its Chief Investment Officer for 12 years, where the business grew in excess of USD 2 billion in assets. He is holding Directorship of a few other Companies as well.

Smt. V. Kiran Rao, Vice Chair Person

Smt. V. Kiran Rao, aged 41 years, is a German National, an Anthropologist, Historian and a graduate from the University of London and had worked in various assignments in Europe and the United Kingdom. Under the leadership of her father, Sri. V. M. Rao, she had gained wide experience in the sugar industry and related matters.

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 marke 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.52.70
UK Pound	1	Rs.85.71
Euro	1	Rs.68.15

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.