MIRA INFORM REPORT

Report Date :

08.10.2012

1. Summary Information

		Country	India
Company Name	Deki Electronics Limited	Principal Name 1	Mr. Jai Kumar
Status	Satisfactory	Principal Name 2	Mr. Charu Sahni
		Registration #	55-008845
Street Address	132, Somdutt Chambers – 1, Bhikaji Cama Place, New Delhi – 110066, India
Established Date	23.01.1978	SIC Code	--
Telephone#	91-11-26186261 / 26161246 / 26182867	Business Style 1	Manufacturer
Fax #	91-11-26182867	Business Style 2	Exporter
Homepage	www.dekielectronics.com	Product Name 1	Plastic Film Capacitors
# of employees	226 [Approximately]	Product Name 2	Electrical Transformer
Paid up capital	Rs. 9,550,800/-	Product Name 3	Knitted Garments
Shareholders	Directors or relatives of directors – 72.42% Other top fifty shareholders –16.10%	Banking	Canara Bank
Public Limited Corp.	No	Business Period	34 Years
IPO	No	International Ins.	-
Public Enterprise	No	Rating	Ba [50]
Related Company
Relation	Country	Company Name	CEO
Enterprises over which significant influence exercised :	India	RDC Marketing Private Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	144,276,000	Current Liabilities	29,353,000
Inventories	77,585,000	Long-term Liabilities	61,344,000
Fixed Assets	84,337,000	Other Liabilities	34,457,000
Deferred Assets	2,557,000	Total Liabilities	125,154,000
Invest& other Assets	38,000	Retained Earnings	174,088,000
		Net Worth	183,639,000
Total Assets	308,793,000	Total Liab. & Equity	308,793,000
Total Assets (Previous Year)	276,080,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	532,812,000	Net Profit	46,624,000
Sales(Previous yr)	484,139,000	Net Profit(Prev.yr)	41,914,000

IDENTIFICATION DETAILS

Name :	DEKI ELECTRONICS LIMITED (12.08.1981)
Formerly Known As :	DEKI ELECTRONICS PRIVATE LIMITED
Registered Office :	132, Somdutt Chambers-I, Bhikaji Cama Place, New Delhi – 110066
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.01.1978
Com. Reg. No.:	55-008845
Capital Investment / Paid-up Capital :	Rs. 9.551 Millions
CIN No.: [Company Identification No.]	U32109DL1978PLC008845
TAN No.: [Tax Deduction & Collection Account No.]	DELD00348F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers, Exporters and Importer of Plastic Film Capacitors.
No. of Employees :	226 [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 730000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established 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 normal for 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Cash Credit limit : CRISIL BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	January 11, 2012

Rating Agency Name	CRISIL
Rating	Term loan : BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	January 11, 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 :	132, Somdutt Chambers-I, Bhikaji Cama Place, New Delhi – 110 066, India
Tel. No.:	91-11-26186261 / 26161246 / 26182867
Fax No.:	91-11-26182867
E-Mail :	jagdeep@dekielectronics.com secl@dekielectronics.com mktg@dekielectronics.com bali@dekielectronics.com shariq@dekielectronics.com pant@dekielectronics.com shanker@dekielectronics.com secretarial@dekielectronics.com rajeshlal@rajeshlalandco.com
Website :	www.dekielectronics.com
Area :	336 sq. fts.
Location :	Rented
Administrative Office / Factory 1 :	B-20, Sector - 58, District – Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-2584687 / 88 / 2585457 / 58 / 26161246
Fax No.:	91-120-2585289 / 26182867
E-Mail :	vinod@dekielectronics.com bali@dekielectronics.com
Area :	25000 sq. fts.
Location :	Owned
Factory 2 :	D-19, Sector 10, Gautam Budh Nagar, Noida, Uttar Pradesh, India
Tel. No.:	91-120-2584687 / 88
Fax No.:	91-120-2585289
E-Mail :	dekielec@del2.vsnl.net.in
Area :	16000 sq. ft.
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Vinod Sharma

Designation :

Managing director

Address :

160 Munirka Enclave, New Delhi – 110067, India

Date of Birth/Age :

20.09.1965

Qualification :

Diploma in Hotel Management Catering Technology administration and Applied Nutrition.

Experience :

20 Years

Date of Appointment :

11.08.1992

DIN No.:

00064374

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	U32109DL1978PLC008845	DEKI ELECTRONICS LIMITED	Managing director	25/10/2007	11/08/1992	Active	NO
2	U74899DL1967NPL015218	ELCINA ELECTRONIC INDUSTRIES ASSOCIATION OF INDIA	Director	08/09/2005	08/09/2005	Active	NO

Name :

Mr. Charu Gupta

Designation :

Director

Address :

405, Block – 3, Silver Estate, Sector – 50, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

24.05.1969

Qualification :

Post Graduate from NIIFT

Date of Appointment :

17.08.1999

DIN No.:

00145037

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	U74899DL1995PTC069201	SHRI KRISHNA INVESTMENTS PRIVATE LIMITED	Director	30/05/1995	30/05/1995	-	Active	NO
2	U32109DL1978PLC008845	DEKI ELECTRONICS LIMITED	Director	17/08/1999	17/08/1999	-	Active	NO
3	U74899DL1995PTC069197	DEKI HOUSING PRIVATE LIMITED	Director	28/03/2004	28/03/2004	22/06/2012	Active	NO

Name :

Mr. Jai Kumar

Designation :

Whole-time director

Address :

160 Munirka Enclave, New Delhi – 110067, India

Date of Birth/Age :

05.02.1930

Qualification :

Msc. in Chemistry

Experience :

59 Years

Date of Appointment :

31.03.1982

DIN No.:

00253838

Name :

Mr. Promod Chawla

Designation :

Director

Address :

K – 87, Hauz Khas Enclave, New Delhi 110016, India

Date of Birth/Age :

16.04.1941

Qualification :

Post Graduate MBA

Date of Appointment :

18.08.2005

DIN No.:

00646044

Name :

Mr. Ashok Kumar Gupta

Designation :

Nominee director

Address :

18 UPSID Officers Colony, Nawab Ganj, Kanpur – 201301, Uttar Pradesh

Date of Birth/Age :

11.05.1956

Date of Appointment :

28.04.1983

DIN No.:

01250708

Name :

Mrs. Ruchika Jaggi

Designation :

Director

Address :

9 Wayfield Lane Cohoes, New York 12047 USA

Date of Birth/Age :

25.12.1962

Date of Appointment :

27.12.2010

DIN No.:

03336623

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	U32109DL1978PLC008845	DEKI ELECTRONICS LIMITED	Director	30/09/2011	27/12/2010	Active	NO

Name :

Mr. Ranjit Kumar Whig

Designation :

Director

Address :

C-231, Defence Colony, New Delhi – 110024, Delhi, India

Date of Birth/Age :

29.09.1941

Date of Appointment :

22.02.2011

DIN No.:

03378661

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	U32109DL1978PLC008845	DEKI ELECTRONICS LIMITED	Director	30/06/2011	22/02/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Kripa Shankar	500
O.P. Agarwal	16000
Sharad Kumar	100
UPSIDC	109620
Ashok Kumar Gupta	26320
Chandrakant Bhageria	2000
Sunita Bhageria	2000
Vijay Kumar Gupta	8600
Vinod Sharma	16880
Charu Sheel S. Gupta	3000
Usha Gupta	3000
Shakuntla Kr. Kaint	3400
Vimla Agarwal	1600
Jai Mala Agarwal	5000
Jai Kumar	709760
Shilpi Agarwal	1500
Charu Gupta	16000
Ruchika Gupta	15700
Deepika Sharma	14100
Total	955080

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	72.42
Other top fifty shareholders	16.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporters and Importer of Plastic Film Capacitors.

Products :

ITC Code	Product Descriptions
85322990	Plastic Film Capacitors

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Film Capacitor	Million Pcs P.a.	750	460	655550452 Pcs

GENERAL INFORMATION

No. of Employees :

226 [Approximately]

Bankers :

Ø Citibank N.A., Jeevan Bharti Building, 4^th Floor, 124 Connaught Circus, Connaught Place, New Delhi – 110001, India

Ø Canara Bank, South Extension, New Delhi, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Canara Bank Delhi
a. Term Loan Canara Bank against fixed assets i.e. Plant and Machinery Add interest accrued and due	12.165	24.396
Canara Bank (OCC) 1^st charge against hypothecation of stocks, WIP, goods in transit and book debts.	21.252	20.555
Car loan from Canara Bank against hypothecation of car	1.262	1.560
Total	34.679	46.511
Note: The Loans at S. No. 1a and 1b from Canara Bank are also secured in addition to above explained assets, against the 1st charge over Factory land & Building at D-9, Sec 10, and B-20 Sec. 58 Noida, and all other fixed assets. Also the loans at S. No. 1a and 1b are guaranteed by directors of the company.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Deposit from Directors Interest accrued and due on above	8.431 0.805	4.820 0.549
Deposit from Others Interest accrued and due on above	15.368 1.386	15.193 1.887
Deposit from Companies (ICD)	0.675	0.675
Total	26.665	23.124

Banking Relations :	--
Auditors :
Name :	R.K. Lal and Company Chartered Accountants
Address :	B-45, Ansal, Chambers-I, New Delhi – 110066, India
Tel. No.:	91-11-32993977
E-Mail :	rajeshlal_ca@hotmail.com
Income-tax PAN of auditor or auditor's firm :	AAAFR6990E
Enterprises over which significant influence exercised :	Ø RDC Marketing Private Limited Ø Shree Krishna Investment Private Limited Ø Deki Housing Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
955,080	Equity Share	Rs.10/- each	Rs. 9.551 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		9.551	9.551	9.551
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		174.088	130.288	90.536
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		183.639	139.839	100.087
LOAN FUNDS
1] Secured Loans		34.679	46.511	77.838
2] Unsecured Loans		26.665	23.124	21.896
TOTAL BORROWING		61.344	69.635	99.734
DEFERRED TAX LIABILITIES		0.000	0.000	0.759
TOTAL		244.983	209.474	200.580
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		84.337	94.358	106.275
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		2.557	1.483	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	77.585	51.150	45.126
	Sundry Debtors	88.964	86.788	57.583
	Cash & Bank Balances	10.849	5.178	3.507
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	44.463	37.073	22.525
Total Current Assets		221.861	180.189	128.741
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.858	8.793	3.134
	Other Current Liabilities	9.495	24.257	21.136
	Provisions	34.457	33.556	10.228
Total Current Liabilities		63.810	66.606	34.498
Net Current Assets		158.051	113.583	94.243
MISCELLANEOUS EXPENSES		0.038	0.050	0.062
TOTAL		244.983	209.474	200.580

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	532.812	484.139	283.791
		Other Income	6.978	6.801	1.873
		TOTAL (A)	539.790	490.940	285.664
Less	EXPENSES
		Manufacturing Expenses	364.686	324.612	182.368
		Personnel Cost	76.332	66.448	50.221
		Administrative Expenses	14.655	13.604	10.884
		Marketing and Sales Expenses	2.477	4.933	2.181
		Increase / Decrease in Stocks	(13.600)	(9.424)	0.143
		TOTAL (B)	444.550	400.173	245.797
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		95.240	90.767	39.867
Less	FINANCIAL EXPENSES (D)		9.880	11.475	11.941
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		85.360	79.292	27.926
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.211	15.621	13.490
	PROFIT BEFORE TAX (E-F) (G)		70.149	63.671	14.436
Less	TAX (H)		23.525	21.757	5.225
	PROFIT AFTER TAX (G-H) (I)		46.624	41.914	9.211
	Adjustment Relating to Previous year		(0.596)	0.073	0.272
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		96.682	59.029	51.696
Less	APPROPRIATIONS
		Transfer to General Reserve	2.302	2.099	0.474
		Proposed Dividend @20%	1.910	1.910	1.433
		Tax on Dividend @ 16.995%	0.317	0.325	0.243
	BALANCE CARRIED TO THE B/S		138.181	96.682	59.029
	EARNINGS IN FOREIGN CURRENCY
		Sale of goods manufactured	31.543	24.160	9.020
	IMPORTS
		Raw Materials	159.321	135.867	112.050
		Stores & Spares	4.316	1.508	3.082
		Semi finished Capacitors	157.581	129.168	34.481
		Machines	5.039	3.547	24.886
		PCS, ESS etc.	6.748	2.035	0.000
	TOTAL IMPORTS		333.005	272.125	174.499
	Earnings Per Share (Rs.)		48.81	43.88	9.64

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.64	8.54	3.22
Net Profit Margin (PBT/Sales)	(%)	13.17	13.15	5.09
Return on Total Assets (PBT/Total Assets}	(%)	22.91	23.19	6.14
Return on Investment (ROI) (PBT/Networth)		0.38	0.46	0.14
Debt Equity Ratio (Total Liability/Networth)		0.68	0.97	1.34
Current Ratio (Current Asset/Current Liability)		3.48	2.71	3.73

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	Yes
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	Yes

PERFORMANCE AND FUTURE PROSPECTS

Net sales during the year 2010-11 was Rs. 531.992 Millions which was 9.88% higher than the sales value of the previous year 2009-10. This was a year of consolidated after the phenomenal growth of 72% in the previous year. As a long term strategy they decided not to drop the prices of Inclusive film capacitors. They felt that with the growing reports of increase in labour costs and non availability of power in China, there would be an Chinese capacitors prices. However, this did not happen and as a result they lost significant sales of Inductive capacitors to cheaper Chinese imports in Non Inductive Metalized capacitors on the other hand they gained market share in the Industrial segment of Fan Regulators and Energy Meters.

Export turnover during the year amounted to Rs. 31.543 Millions as compared to Rs. 24.160 Millions in the previous year. This is a growth of approximately 30% in exports. The company is striving hard to further improve export sales of capacitors. They have recently made inroads into two large customers in Europe.

Company’s top line has grown by 9.88% over last year. Inspite of increase in raw material cost there has been no impact on the Profitability which remained at 13%, the same as last year. This was due to an increase in the operational effectiveness of the plant.

The year 2011/12 will be a difficult year with regular increases in the price of raw materials and also its availability coming into question. There are still no signs of any increase in imported Inductive capacitors prices in the market. They are looking at further improvement in operational effectiveness coming out of the modified Industice plant to increase their safe and keep their profitability intact. In the Non Inductive metalized line they are planning to revamp their Miniature line to enhance productivity.

In 2011/12 they expect to have a top line growth of 20% but PBT may decline marginally.

EXPANSION / DIVERSIFICATION

In 2011/12 they want to fully exploit their existing capacities of both lines by focusing on operational effectiveness.

For the year 2012/13 they envisage a shortfall in both film / foil and metalized lines. The are placing order for equipments which should be in house by March 2012. This will help to further increase their presence in the Lighting and Industrial segments. A significant expansion of capacities is being planned.

FINANCE

The working capital limit with Canara Bank is Rs. 62.500 millions. During the year, company has repaid Rs. 12.232 Millions from existing term loans.

CONTINGENT LIABILITIES

a) An amount of Rs. 0.635 million in respect of Bonds given to Excise Authorities for export and Rs. 2.544 Millions in respect of Bonds given to Excise Authorities for Import (Previous year Rs. 0.244 and Rs. 2.683 Millions respectively).

b) Rs. 0.207 million for custom duty on UPS import under EPCG scheme.

c) LC to the tune of Rs. 2.945 millions was outstanding at the close of year. (Previous year Rs. 4.598 millions)

d) An amount of Rs. 3.833 millions in respect of non receipt of .C. form and Rs. 0.076 million in respect of non receipt of ‘I’ form from customers for sales made up to quarter ended Dec 2010

e) Civil work contract remaining to be executed Rs. 12.295 Millions

FIXED ASSETS

Ø Leasehold Land

Ø Building

Ø Plant and Machinery

Ø Electric Installation

Ø Machinery

Ø Machinery Accessories

Ø Tools and Equipments

Ø Air Conditioners

Ø Typewriter

Ø D G Set

Ø Coolers

Ø Fans

Ø Fire Fighting

Ø Vehicles

Ø Cycles

Ø Furniture and Fixtures

Ø Computers

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. 51.62
UK Pound	1	Rs. 83.57
Euro	1	Rs. 67.17

INFORMATION DETAILS

Report Prepared by :

BVA

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	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	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

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