MIRA INFORM REPORT

Report Date :

03.10.2012

IDENTIFICATION DETAILS

Name :	ONCO THERAPIES LIMITED
Registered Office :	Strides House, Bilekahallli, Bannerghatta Road, Bangalore – 560076, Karnataka
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	14.08.2007
Com. Reg. No.:	08-043599
Capital Investment / Paid-up Capital :	Rs.24.062 Millions
CIN No.: [Company Identification No.]	U24232KA2007PLC043599
TAN No.: [Tax Deduction & Collection Account No.]	BLRO02269B
PAN No.: [Permanent Account No.]	AAACO9507F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Research and Manufacturing of all kinds of anti cancer/ oncology related pharmaceutical products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (39)

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

Maximum Credit Limit :	USD 5060000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture of Strides Arcolab Limited and Aspen Pharmacare. It is a established company having moderate track. There appears some accumulated losses. However, reserve seems strong. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. In view of strong holding company can be considered for business dealing with slight caution.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

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

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

INDIAN ECONOMIC OVERVIEW

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

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB- (Long Term Bank Facilities)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	January 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 :	Strides House, Bilekahallli, Bannerghatta Road, Bangalore – 560076, Karnataka, India
Tel. No.:	91-80-67840000
Fax No.:	91-80-67840800
E-Mail :	sudhir.kanchan@stridesarco.com kannan.n@stridesarco.com

DIRECTORS

As on: 24.05.2012

Name :

Mr. Venkatraman Subramanian Iyer

Designation :

Director

Address :

L 204, Mantri Woodlands, Arekere, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

18.03.1957

Qualification :

Master of Science [Chemistry] and Diploma in Business Management.

Date of Appointment :

30. 09.2008

DIN No.:

00408092

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U24231KA2003PTC039016	MEDGENE PHARMACEUTICALS PRIVATE LIMITED	Director	14/06/2006	03/05/2005	-	Amalgamated	NO
2	U02429KA2004PTC033503	AGILA SPECIALTIES PRIVATE LIMITED	Director	14/06/2006	31/03/2006	-	Active	NO
3	U24231TZ1986PLC008788	GLOBAL REMEDIES LIMITED	Director	19/06/2007	26/03/2007	27/11/2008	Amalgamated	NO
4	U24230KA2007PTC042337	HIGHER PHARMATECH PRIVATE LIMITED	Director	02/04/2007	02/04/2007	-	Active	NO
5	U24232KA2007PLC043599	ONCO THERAPIES LIMITED	Director	30/09/2008	10/03/2008	-	Active	NO
6	U24231TN1996PLC035068	GRANDIX PHARMACEUTICALS LIMITED	Additional director	16/03/2009	16/03/2009	-	Amalgamated	NO
7	L24230MH1990PLC057062	STRIDES ARCOLAB LIMITED	Whole-time director	31/05/2010	19/01/2010	25/05/2012	Active	NO

Name :

Mr. Sudhir Krishna Kanchan

Designation :

Director

Address :

B-2002, Sobha Sunbeam 2, Sobha Hill View After Thalagatpura Police Station Uttarahalli, Manavarthakal, Kanakpura Road, Bangalore – 560062, Karnataka, India

Date of Birth/Age :

26.02.1955

Qualification :

CA, CMA and CS

Date of Appointment :

14.08.2007

DIN No.:

01606191

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U24231TZ1986PLC008788	GLOBAL REMEDIES LIMITED	Director	30/06/2008	28/06/2007	-	Amalgamated	NO
2	U24232KA2007PLC043599	ONCO THERAPIES LIMITED	Director	14/08/2007	14/08/2007	-	Active	NO
3	U24231KA2003PTC039016	MEDGENE PHARMACEUTICALS PRIVATE LIMITED	Director	30/06/2008	01/11/2007	16/03/2009	Amalgamated	NO
4	U24296KA2008PTC045588	QUANTUM REMEDIES PRIVATE LIMITED	Director	08/04/2008	08/04/2008	25/03/2009	Amalgamated	NO
5	U73100KA2009PTC049535	STRIDES TECHNOLOGY AND RESEARCH PRIVATE LIMITED	Director	06/04/2009	06/04/2009	-	Under Process of Striking off	NO
6	U24232TN2001PLC047875	GRANDIX LABORATORIES LIMITED	Additional director	19/08/2009	19/08/2009	-	Amalgamated	NO
7	U74140KA2007PTC043095	INBIOPRO SOLUTIONS PRIVATE LIMITED	Nominee director	30/05/2011	25/11/2010	17/04/2012	Active	NO
8	U24100KA2012PTC063995	AGILA BIOTECH PRIVATE LIMITED	Director	16/05/2012	16/05/2012	-	Active	NO
9	U24132KA2012PTC064214	STRIDES EMERGING MARKETS PRIVATE LIMITED	Director	01/06/2012	01/06/2012	-	Active	NO

Name :

Mr. Ajay Singh Rathore

Designation :

Director

Address :

C -3- 1107, L and T Apartments, South City, Bannerghatta Road, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

15.08.1972

Qualification :

CA and ICWA

Date of Appointment :

27.05.2011

DIN No.:

03342984

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140KA2007PTC043095	INBIOPRO SOLUTIONS PRIVATE LIMITED	Nominee director	30/05/2011	25/11/2010	-	Active	NO
2	U24232KA2007PLC043599	ONCO THERAPIES LIMITED	Director	27/05/2011	04/05/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 24.05.2012

Names of Shareholders	No. of Shares
Arun Kumar	1
K R Ravishankar	1
Sudhir Kanchan	1
Kannan N	1
Anil Kumar P	1
N T Venkatesha	1
Strides Arcolab Limited, India	2406181
Total	2406187

Equity Share Break up (Percentage of Total Equity)

As on: 24.05.2012

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Research and Manufacturing of all kinds of anti cancer / oncology related pharmaceuticals products.

Product :

Product Description	ITC Code
Diluent	9999999
INJ-PWDR [LYO]	9999999
LIQ INJ- Vial	9999999

PRODUCTION STATUS AS ON 31.12.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Liquid Vials	Numbers in Million	**NA	39.86	NA

Note : Installed Capacities are as certified by the management and relied upon by the Auditors. The installed capacities serve multiple purposes and will vary according to product mix.

** Not applicable as the products have been de- licenssed.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, Fort, Mumbai – 400023, Maharashtra, India
• Axis Bank Limited, Indian Express Building, 2nd Floor, Queens Road, Bangalore - 560001, Karnataka, India
• Axis Bank Limited, 2nd Floor-E, Axis House, Bombay Dyeing Mill Compd, Panduranga Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.12.2011	As on 31.12.2010
Rupee term loans banks secured	2467.638	3050.000
Total	2467.638	3050.000

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
PAN.:	AADFD3771D

CAPITAL STRUCTURE

As on 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2406187	Equity Shares	Rs.10/- each	Rs.24.062 Millions

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		24.062	22.431	20.256
2] Share Application Money		0.000	0.000	19.080
3] Reserves & Surplus		1374.314	1278.081	1220.404
4] (Accumulated Losses)		(133.321)	(106.929)	0.000
NETWORTH		1265.055	1193.583	1259.740
LOAN FUNDS
1] Secured Loans		2467.638	3050.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		2467.638	3050.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	36.000
TOTAL		3732.693	4243.583	1295.740
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1304.705	1174.709	1170.644
Capital work-in-progress		26.659	203.433	157.620
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	207.439	67.603	4.187
	Sundry Debtors	344.485	34.184	0.776
	Cash & Bank Balances	12.757	408.692	106.227
	Other Current Assets	0.530	0.000	0.000
	Loans & Advances	2440.733	3007.164	60.894
Total Current Assets		3005.944	3517.643	172.084
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	411.510	312.935	184.461
	Other Current Liabilities	173.193	321.637	0.442
	Provisions	19.912	17.630	19.705
Total Current Liabilities		604.615	652.202	204.608
Net Current Assets		2401.329	2865.441	(32.524)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3732.693	4243.583	1295.740

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	772.910	149.955	0.000
		Income from Export of Dossiers	0.000	0.000	134.108
		Other Income	393.761	158.573	6.931
		TOTAL (A)	1166.671	308.528	141.039
Less	EXPENSES
		Consumption materials changes inventories	304.617	64.995
		Manufacturing service costs	60.256	35.233
		Employee related expenses	61.071	44.916
		Administrative selling other expenses	97.087	57.684
		Research development expenditure	59.058	29.460
		Exceptional income expense	147.018	0.000
		TOTAL (B)	729.107	232.288	83.808
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		437.564	76.240	57.231
Less	FINANCIAL EXPENSES (D)		382.303	234.747	(0.119)
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		55.261	(158.507)	57.350
Less/ Add	DEPRECIATION/ AMORTISATION (F)		81.654	55.054	44.713
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(26.393)	(213.561)	12.637
Less	TAX (I)		0.000	(36.000)	4.510
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)		(26.393)	(177.561)	8.127
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(106.928)	70.633	62.505
	BALANCE CARRIED TO THE B/S		(133.321)	(106.928)	70.633
	EARNINGS IN FOREIGN CURRENCY
		Reimbursement of Site transfer and BE study expenses and Sales Job work	24.738	10.427	0.000
		Sale of Products	214.499	52.580	0.000
		Development and Licensing Income	526.022	72.403	0.000
		Income from sale of dossiers	0.000	0.000	134.108
	TOTAL EARNINGS		765.259	135.410	134.108
	IMPORTS
		Capital Goods	4.640	26.559	40.154
		Others Goods	8.483	11.501	0.817
		Raw Materials	131.179	27.376	0.513
	TOTAL IMPORTS		144.302	65.436	41.484
	Earnings/ (Loss) Per Share (Rs.)		(11.54)	(82.97)	3.99

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	(2.26)	(57.55)	5.76
Net Profit Margin (PBT/Sales)	(%)	(3.41)	(142.42)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(0.61)	(4.55)	0.94
Return on Investment (ROI) (PBT/Networth)		(2.09)	(0.17)	0.01
Debt Equity Ratio (Total Liability/Networth)		2.43	3.10	0.16
Current Ratio (Current Asset/Current Liability)		4.97	5.39	0.84

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

OPERATIONS:

The Company has received regulatory approvals from MHRA, UK, ANVISA, Brazil, TGA, Australia and US FDA. During the year, the Company started commercial supply of Oncology related products to US, Europe, Far East and other regulated markets through Big Pharma.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U24232KA2007PLC043599
Name of the company	ONCO THERAPIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Strides House, Bilekahallli, Bannerghatta Road, Bangalore – 560076, Karnataka, India E-mail: sudhir.kanchan@stridesarco.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10329066
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Axis Bank Limited, Indian Express Building, 2nd Floor, Queens Road, Bangalore - 560001, Karnataka, India E-mail: vaishali.anvekar@axisbank.com
Nature of instrument creating charge	Supplemental agreement dated June 28, 2012
Date of instrument Creating the charge	28.06.2012
Amount secured by the charge	Rs.650.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1. CC - Base rate + 4.50% p.a 2. EPC/ PCFC/ FBP/FBD - Base rate + 2.75% p.a. 3. EBRD - Linked to 6 Months LIBOR 4. LC / LOU for Buyers Credit/ BG - 1% p.a+ Service Tax 5. LER on FCs - Nil Terms of Repayment 1.Cash Credit (CC) - On demand 2.EPC/PCFC - Upto 270 days or expiry of contracts/export letters of credit of shipment, whichever is earlier 3.Foreign Bills Purchased (FBP) /Foreign Bills Discounting (FBD)/ EBRD - On due dates (i.e.180 days from the date of shipment) 4.Letter of Credit and LOU for Buyers Credit - As agreed between lender and borrower 5.Bank Guarantee : Tenor - Maximum of 3 years including claim period 6. LER on Forward Contracts : Tenor - One Year Margin 1. CC - 25% of raw material, stock-in-progress, finished goods and packing material, stores and spares and book debts (cover period 90 days) 2. Export Packing Credit (EPC)/ Pre Shipment Credit in foreign Currency (PCFC) - 25% 3. Foreign Bills Purchased(FBP)/Foreign Bills Discounting(FBD)/ EBRD- Nil 4. Letter of Credit (LC) and LOU for Buyers Credit - 10% 5. Bank Guarantee (BG) - 10%. However 100% in case of disputed liability 6. Loan Equivalent Risk (LER) on Forward Contracts (FCs) - Nil Extent and Operation of the charge Exclusive first charge on the current assets of the Company. Second charge on plant, machinery and other fixed assets of the Company. Personal guarantee of Mr. Arun Kumar Pillai. Others Fund Based : Rs. 330.000 Millions 1.EPC / PCFC* : Rs.200.000 Millions; 2.FBP / FBD/ EBRD* : Rs.130.000 Millions ; 3.CC : Rs.50.000 Millions (Sub limit of fund based facilities) * One way interchangeability from EPC/ PCFC to FBP/ EBRD is permitted Non Fund Based (Rs. 320.000 Millions) 1.LC : Rs.250.000 Millions ; 2.LOU for Buyers Credit : Rs.150.000 Millions (Sub limit of LC) ; 3.BG : Rs.20.000 Millions ; 4.LER on FCs : Rs.50.000 Millions Total Working Capital Facility Rs.650.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	As fully described in the second schedule of attached supplemental agreement dated June 28, 2012 All tangible movable machinery, plant machinery, fixtures, fittings, other installation, cranes, furniture, computers and other accessories. The whole of the Borrower's movable goods and assets both present and future and including but without prejudice to generality of the foregoing words all. All the present and future book debts, outstanding monies, receivables claims bills, contracts, engagements and securities which are now due and owing.
Particulars of the present modification	Credit Facilities modified to include Cash credit facility of Rs. 50.000 Millions as a sub limit of existing fund based working capital limit of Rs. 330.000 Millions. One way interchangeability from Export Packing Credit / Pre Shipment Credit in foreign Currency facilities to Foreign Bills Purchased/ Foreign Bills Discounting/ EBRD facilities.

FIXED ASSETS

• Leasehold Land
• Buildings
• Furniture and Fixtures
• Office Equipments and Computers
• Plant and Machinery
• Software Licenses

AS PER WEBSITE DETAILS:

Press Releases:

ONCO THERAPIES GET US FDA APPROVAL FOR ONCOLOGY DRUGS

Bangalore, September 30:

Onco Therapies Limited, a wholly owned subsidiary of Strides Arcolab Limited, has announced that it has received the US Food and Drug Administration approval for Paclitaxel injection and tentative nod for Oxaliplatin injection.

Paclitaxel and Oxaliplatin are part of the oncology portfolio licensed to Pfizer in January 2010 for the US market.

The company expects to launch the product immediately in the US market and according to IMS (a pharmaceutical intelligence and market research company) data, market size for generic Paclitaxel is about $46 million.

“Tentative approval for Oxaliplatin injection also has been got and IMS data estimate the size of US market is $1.4 billion. While other generic companies approved for this product are expected to launch the product in August 2012, Strides will issue further updates on this product in April 2012,” release said.

Paclitaxel is a chemotherapy drug to be used alone or with other drugs to treat ovarian cancer, breast cancer, non-small cell lung cancer and AIDS-related Kaposi's sarcoma. Whereas Oxaliplatin is a chemotherapy drug used to treat advanced cancer of the colon and rectum. It is used in combination with other medications to slow or stop cancer cell growth.

The company in a release said Paclitaxel injection is approved for USP, 6 mg/ml packaged in 30 mg/ml, 100 mg/16.7 ml and 300 mg/50 ml multiple dose vials.

Paclitaxel is among the products in the drug shortage list of the American Society of Health – System Pharmacists and the USDFDA.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.78
UK Pound	1	Rs.85.16
Euro	1	Rs.67.79

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		39

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.