MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	VALUE INDUSTRIES LIMITED (w.e.f. 03.04.2008)
Formerly Known As :	VIDEOCON APPLIANCE LIMITED
Registered Office :	14 KM Stone, Taluka Paithan, Chittegaon, Aurangabad – 431 005, Maharashtra
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	08.03.1988
Com. Reg. No.:	11-46445
Capital Investment / Paid-up Capital :	Rs.391.860 Milions
CIN No.: [Company Identification No.]	L99999MH1988PLC046445
TAN No.: [Tax Deduction & Collection Account No.]	MUMV09538E
PAN No.: [Permanent Account No.]	AAACV2299K
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturing and marketing of Electrical and Electronic Appliances such as Air Conditioners, Refrigerators, Programmable Washing Machines and Assemblies and Sub-Assemblies.
No. of Employees :	425 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 18000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of Videocon Group. The group is controlled and financed by Dhoot family. It is a well established company having satisfactory track. There appears slight dip in the profitability of the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for business dealing at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facility = BBB+
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk
Date	April 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 :	14 KM Stone, Taluka Paithan, Chittegaon, Aurangabad – 431 005, Maharashtra, India
Tel. No.:	91-2431-251501
Fax No.:	91-2431-251551
E-Mail :	info@videocongroup.com secretarial@videoconmail.com
Website :	http://www.videocongroup.com
Administrative Office :	171, Mittal Court, “C” Wing, Nariman Point, Mumbai – 400 021, Maharashtra, India
Factory :	15 KM Stone, Taluka Paithan, Chittegaon, Aurangabad – 431 005, Maharashtra, India

DIRECTORS

As on 31.12.2011

Name :	Mr. Naveen B. Mandhana
Designation :	Director
Address :	907-908/A, Akruti Nova, Saiwadi, Opposite Teli Galli, Andheri (East), Mumbai – 400069, Maharashtra, India
Date of Birth/Age :	18.11.1956
Date of Appointment :	08.03.1988
Name :	Mr. Subhash S. Dayama
Designation :	Director
Address :	Sukharta Society, Nagar Pune Road, Kinetic Chowk, Ahmednagar – 414001, Maharashtra, India
Date of Birth/Age :	05.05.1961
Date of Appointment :	08.12.2005
Name :	Mr. Avinash Malpani
Designation :	Director
Address :	50B, 2^nd Floor, Gariahat Road, Kolkata – 700019, West Bengal, India
Date of Birth/Age :	15.09.1950
Date of Appointment :	30.09.1996

KEY EXECUTIVES

Name :	Mrs. Amruta S. Karkare
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2012

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2,292,605	5.85
Bodies Corporate	16,029,801	40.91
Sub Total	18,322,406	46.76
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	18,322,406	46.76
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	14,276	0.04
Financial Institutions / Banks	6,123	0.02
Insurance Companies	944,756	2.41
Foreign Institutional Investors	1,025	0.00
Any Others (Specify)	0	0.00
Sub Total	966,180	2.47
(2) Non-Institutions
Bodies Corporate	1,624,584	4.15
Individual shareholders holding nominal share capital up to Rs. 0.100 million	13,921,773	35.53
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	4,140,941	10.57
Any Others (Specify)	209,791	0.54
Non Resident Indians	171,158	0.44
Trust & Foundation	38,633	0.10
Sub Total	19,897,089	50.78
Total Public shareholding (B)	20,863,269	53.24
Total (A)+(B)	39,185,675	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	39,185,675	--

BUSINESS DETAILS

Line of Business :

Manufacturing and marketing of Electrical and Electronic Appliances such as Air Conditioners, Refrigerators, Programmable Washing Machines and Assemblies and Sub-Assemblies.

Products :

Item Code No. (ITC Code)	8450.00
Product Description	Washing Machine
Item Code No. (ITC Code)	8415.00
Product Description	Air Conditioner
Item Code No. (ITC Code)	8418.00
Product Description	Refrigerator

GENERAL INFORMATION

No. of Employees :

425 (Approximately)

Bankers :

· Allahabad Bank

· Axis Bank Limited

· Bank of Baroda

· Bank of India

· Indian Bank

· Punjab National Bank

· State Bank of Bikaner and Jaipur

· State Bank of India

· The Federal Bank Limited

· Uco Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.12.2011	As on 31.12.2010
Non Convertible Debentures	10.670	27.040
Rupee Term Loans from Banks and Financial institutions	2178.880	1591.480
External Commercial Borrowings	965.160	939.560
Vehicle Loan form Bank	3.760	0.000
Working Capital Loans from Banks	3614.210	2935.040
Total	6772.680	5493.120
Unsecured Loan	As on 31.12.2011	As on 31.12.2010
From Bank	1904.580	499.850
Form Others	2250.000	2250.000
Total	4154.580	2749.850

Banking Relations :	--
Auditors :
Name :	Kadam and Company Chartered Accountants
Address :	Vedant 8/9, Viraj Estate, Opposite Tarakpur Bus Stand, Ahmednagar – 414003, Maharashtra, India
Name :	Khandelwal Jain and Company Chartered Accountants
Address :	12-B, Baldota Bhavan, 117, Maharshi Karve Road, Opposite Churchgate Railway Station, Mumbai – 400 020, Maharashtra, India

CAPITAL STRUCTURE

As on 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
55000000	Equity Shares	Rs.10/- each	Rs.550.000 millions
7500000	Redeemable Preference Shares	Rs.100/- each	Rs.750.000 millions
	Total		Rs.1300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39185675	Equity Shares	Rs.10/- each	Rs.391.860 millions

Note:

(Of the above 6,138,359 (Previous period 6,138,359) Equity Shares of Rs.10/- each fully paid-up were allotted pursuant to amalgamation without payment being received in cash)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		391.860	398.010	404.170
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4201.620	4160.570	4071.620
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4593.480	4558.580	4475.790
LOAN FUNDS
1] Secured Loans		6772.680	5493.120	7304.660
2] Unsecured Loans		4154.580	2749.850	1000.000
TOTAL BORROWING		10927.260	8242.970	8304.660
DEFERRED TAX LIABILITIES		960.890	955.780	924.890
Grant form Ozone Projects Trust Fund		12.820	15.970	21.190
TOTAL		16494.450	13773.300	13726.530
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8774.360	8067.150	7906.660
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		947.700	529.960	561.010
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5412.950	3788.350	3629.590
	Sundry Debtors	2582.170	2659.730	2414.690
	Cash & Bank Balances	119.720	142.120	98.980
	Other Current Assets	3.620	5.660	1.880
	Loans & Advances	931.830	1163.750	561.130
Total Current Assets		9050.290	7759.610	6706.270
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2031.920	2248.890	1064.050
	Other Current Liabilities	184.180	234.570	285.080
	Provisions	61.800	99.960	98.280
Total Current Liabilities		2277.900	2583.420	1447.410
Net Current Assets		6772.390	5176.190	5258.860
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		16494.450	13773.300	13726.530

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	13386.870	17136.270	12041.780
		Other Income	112.420	97.090	19.800
		TOTAL (A)	13499.290	17233.360	12061.580
Less	EXPENSES
		Cost of Goods Consumed/Sold	11130.020	14400.810	9966.730
		Salaries, Wages and Employees' Benefits	243.200	273.350	207.740
		Manufacturing and Other Expenses	547.690	494.370	431.350
		Transferred from Revaluation Reserve	0.000	(8.750)	(13.740)
		TOTAL (B)	11920.910	15159.780	10592.080
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1578.380	2073.580	1469.500
Less	FINANCIAL EXPENSES (D)		696.870	792.200	578.940
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		881.510	1281.380	89.056
Less/ Add	DEPRECIATION/ AMORTISATION (F)		829.180	1050.990	815.810
	PROFIT BEFORE TAX (E-F) (G)		52.330	230.390	74.750
Less	TAX (H)		17.150	69.850	25.340
	PROFIT AFTER TAX (G-H) (I)		35.180	160.540	49.410
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		849.120	763.920	760.610
Less/ Add	Excess/(Short) Provision of Income Tax for earlier years		6.010	(16.140)	(1.350)
Add	Transferred from Debenture Redemption Reserve		8.200	13.650	13.700
Less	APPROPRIATIONS
		Proposed Dividend - Equity Shares	0.000	39.190	39.190
		Proposed Dividend - Preference Shares	0.120	0.860	1.230
		Tax on Proposed Dividend	0.020	6.650	6.870
		Transfer to Capital Redemption Reserve	6.150	6.150	6.160
		Transfer to General Reserve	5.000	20.000	5.000
	BALANCE CARRIED TO THE B/S		887.220	849.120	763.920
	IMPORTS
		Raw Materials	923.630	1160.980	1005.280
		Capital Goods	4.600	6.440	2.620
	TOTAL IMPORTS		928.230	1167.420	1007.900
	Earnings Per Share (Rs.)		1.05	3.66	1.19

QUARTERLY RESULTS

PARTICULARS	31.03.2012 1^st Quarter	30.06.2012 2^nd Quarter
Net Sales	2938.200	2915.900
Total Expenditure	2661.600	2638.500
PBIDT (Excl OI)	276.600	277.400
Other Income	12.900	5.400
Operating Profit	289.500	282.800
Interest	235.400	235.800
Exceptional Items	0.000	0.000
PBDT	54.100	47.000
Depreciation	212.800	216.300
Profit Before Tax	(158.700)	(169.300)
Tax	(50.000)	(55.000)
Provisions and contingencies	0.000	0.000
Profit After Tax	(108.700)	(114.300)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(108.700)	(114.300)

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	0.26	0.93	0.41
Net Profit Margin (PBT/Sales)	(%)	0.39	1.34	0.62
Return on Total Assets (PBT/Total Assets}	(%)	0.29	1.46	0.51
Return on Investment (ROI) (PBT/Networth)		0.01	0.05	0.02
Debt Equity Ratio (Total Liability/Networth)		2.87	2.37	2.18
Current Ratio (Current Asset/Current Liability)		3.97	3.00	4.63

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	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

OPERATIONS

During the year, the first half was reasonably good, whereas there was decline in the demand during the second half. The biggest challenge, during the year, has been the increase in the cost of raw materials and components, rising interest rates and intense competition. As a result, there was a slight decline in the net sales of the Company from Rs.17136.270 Millions for the 15 months ended on 31st December, 2010 to Rs.13386.870 Millions for the current year. Consequently, the profit after tax has also declined from Rs.160.540 Millions to Rs.35.180 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management of the Company has pleasure in presenting the Management Discussion and Analysis Report in compliance with the Code of Corporate Governance under Clause 49 of the Listing Agreement.

INDUSTRY STRUCTURE AND DEVELOPMENT

The global consumer electronics industry is set to witness growth in the near future, with the rising technological innovations. The digital technology revolution has enabled the industry to earn profit from the growing interaction of digital applications.

Though the consumer electronics and home appliances market in India has been going through a period of steady growth, it cannot remain isolated from the overall economy. As prices increase, consumer finance becomes more expensive and discretionary budget available to household shrinks. There could well be a negative impact on the domestic consumer electronics and home appliances market as well.

The trade is unanimous about customers being more aware of products, features, market prices and other aspects. It is no longer easy to influence the customers to switch from their preferred brands. Though going forward, the market may move upward and sales volume may increase, albeit profits and margins which are steadily declining as the financial exposure and investment in the business increase.

To face the growing competition and price challenges, the Company is focused on creating more awareness about the products. Company’s mission is to make its product better, inspirational and increase consumer pull. With a wide and vast range of products, which are a result of constant innovation and technology upgradation, the product provides a solution to all their needs that will keep closer to the hearts of millions of consumers. The Company will look forward to enhance its product image and induce sales. Radical and refreshing communication will be created to get credibility across target groups with change in perception. Every product is a result of consumer insights and rigorous product tests performed at its innovation labs and R and D facilities.

SEGMENT PERFORMANCE

The Company has only one segment viz. ‘Consumer Electronics and Components/parts thereof’ as per the Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India

PRODUCT WISE PERFORMANCE

The Company is primarily engaged in the business of manufacturing and trading of the following products:

a) Washing Machines:

The demand for washing machines in India is increasing with the changing status of women and working couples. A large number of women in India today are working, so there is less time available with them to do manual washing. The washing machine proves to be of great help in speeding up domestic work.

The fully automatic segment is gradually catching up owing to convenience, better wash performance and quality. The Company focused on innovation in design, look and technology. The recently introduced models of washing machines contains the following features:

· Anti Rust Plastic Body

· Digital Display

· UV light

· 15 degree tilt drum

· Direct Drive Motor

· Aero Wash Technology

· Hand Wash

· Auto Error Detection

· Digital sensi Logic

· Air dry function in Semi Automatic Washing Machine (SAWM)

· Dual element heater in dryer

· Toughened glass tops, in SAWM with floral printing and matching body graphics

· Added air dry function in SAWM to increase the drying efficiency

The green revolution and energy saving norms ensures less power and water consumption

b) Refrigerators:

Refrigerator for long has remained a high involvement product at the time of purchase but once at home and in use, the utility aspect takes an edge over. There have been constant improvements on energy efficiency and cooling aspect and new technologies have been evident across all categories.

They have shifted towards 5 star rated refrigerators as the customers are now well abreast of the significance of the same. The latest models of the Company contains following flattering features:

· Inverter Technology

· Wings Flow Turbo

· Power Deodorize

· Blue ION Technology

· Water and Ice Dispenser

· Digital Multi Sensor

· Digital Display

· Vita Air Technology

· Stabilizer free operation

· PCM door finish

· Transparent interior

· Infrared sterilization

· Toughened glass shelves

· Night vision Frost Free refrigerator with ambient light sensing LED illumination in door handle

· Digital watch, Crisper separator, cosmetic box in frost free refrigerator

· FM radio in direct cool refrigerator

· LED light implementation in both direct cool and frost free refrigerator

Wings Flow Turbo technology with 8 wings and 2 fans increase the inflow of fresh air in every corner. Blue ION technology detects and finishes off food spoiling bacteria and fungus. On the whole, it’s a refrigerator that keeps food fresh for long. The new Vita Air Technology provides the benefit of Vitamin C which helps to boost immunity, fight common cold and other vital diseases. In short, the Company not only takes care of the freshness of food but also the health of consumers.

c) Air-Conditioners:

Purchase and use of air-conditioning system in both residential and commercial applications often goes hand in hand with the health of economy in a given country. An increase in per capita income pushes up consumer demand for comfort living and eventually drives demand for high-value products such as air-conditioning system.

While man’s desire to control the indoor environment lead to the invention of air-conditioning systems, growth in population, sturdy economic progress, industrialization, rising standard of living, affordability of technology and increase in commercial applications have led to its rapid proliferation across the globe. Global warming continues to remain a major factor propelling market demand, especially in the residential segment. Depletion of ozone layer, EI Nino effect and global warming make up for the primary reasons that create the need for air-conditioning system.

Following are the eye-catching features of some of the latest models:

· Heating and cooling function

· Ioniser

· Adjustable Louvers (6 level)

· Vitamin C filter

· Gold, Blue and Green fin Evaporator

· 100% copper pipes

· Anti Bacteria filter on/off system

· Vita Air Technology

· Inverter Technology

· PFC coil in outdoor unit

Demand for air-conditioners is increasing because of major growth in infrastructure sector. Due to the high temperatures all around the year and the rising prosperity, the country offers the Air-conditioning sector great prospects for growth.

STRATEGY AND OUTLOOK

The Company continues to grow its business due to in-house technological advancement, aggressive marketing and distribution, advertising strategies with focused penetration in the key market

The core strategy in coming year will be to improve the product quality and increase the market share. The Company has chalked out a bi-polar strategy wherein premium image will be built through aesthetically and technologically superior products and volumes driven through a frugally innovative range to cater to the mass market.

The Company’s focus on ground level activities will also increase as it aims at building an instant connect with the consumers by means of road shows, exhibitions and through building experience zones and product demonstrations. Apart from this, in-store build-up will be a major focus – providing marketing collaterals, innovative and implementation through visual merchandising.

The Company seeks to strengthen its position in the business of “Electronic and Home Appliances” at national level by venturing into new areas of business through diversification policies and by increasing the scale of operations.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Rs. In Millions

Particular	31.12.2011	31.12.2010
Letters of Guarantees	19.870	27.670
Letters of Credit opened	332.990	146.180
Excise Duty demands under dispute (Amount paid under protest Rs.1.000 million, Previous period Rs.1.000 million)	5.100	2.290
Custom Duty demands under dispute (Amount paid under protest Rs.2.590 millions, Previous period Rs.2.590 millions)	13.270	12.380
Service Tax demands under dispute	18.180	1.000
Sales Tax demands under dispute (Amount paid under protest Rs.27.930 millions, Previous period Rs.27.930 millions)	86.180	86.180
The Company is a Co-guarantor in respect of borrowings of group companies. The aggregate amount of said guarantees, extended alongwith 8 other Coguarantors are Rs.8311.100 millions (Previous period Rs.9056.000 millions). The said guarantees are extended on the basis of support in the form of undertaking provided by certain other group companies to the extent of the amount of the guarantees. Further, the Company is a Co-guarantor along with 14 other Coguarantors in respect of borrowings of group companies amounting to Rs.3500.000 millions (Previous period Rs.3500.000 millions).

Fixed Assets :

· Freehold Land

· Building

· Plant and Machinery

· Electrical Installations

· Computer

· Furniture and Fixtures

· Office Equipments

· 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 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

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

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.