MIRA INFORM REPORT

Report Date :

10.10.2012

IDENTIFICATION DETAILS

Name :	P.P. ROLLING MILLS MFGING COMPANY PRIVATE LIMITED
Registered Office :	D-820, New Friends Colony, New Delhi – 110 065
Country :	India
Financials (as on) :	31.03.2012 (Summarised Figures)
Date of Incorporation :	07.04.1998
Com. Reg. No.:	55-093215
Capital Investment / Paid-up Capital :	Rs.18.200 millions
CIN No.: [Company Identification No.]	U29223DL1998PTC093215
IEC No.:	0592022757
PAN No.: [Permanent Account No.]	AABCP7505P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Rolling Mills Parts and complete Rolling Mills, Equipment on turnkey basis.
No. of Employees :	Approximately 250 (In Office – 40, In Factory – 210)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 618000
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	CARE
Rating	A4 (Short Term Bank Facilities)
Rating Explanation	This rating are considered to have minimal degree of safety it carry very high credit risk.
Date	April 30, 2012

Rating Agency Name	CARE
Rating	BB (Long Term Bank Facilities)
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligation.
Date	April 30, 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.

INFORMATION PARTED BY

Name :	Mr. Hemant Singhal
Designation :	General Manager – Finance
Contact No.:	91-9717179848
Date :	03.10.2012

LOCATIONS

Registered Office :	D-820, New Friends Colony, New Delhi – 110 065, India
Tel. No.:	91-11-26836340
Mobile No.:	91-9717179848 (Mr. Hemant Singhal)
Fax No.:	91-11-26836335
E-Mail :	accounts@pprm.in pprm@pprm.in pankajkhanna@pprm.in praneetkhanna@pprm.in
Website :	http://www.pprm.in
Location :	Owned
Head Office :	Plot No.I-42, DLF Industrial Estate, Phase-I, Faridabad – 121 003, Haryana, India
Tel. No.:	91-129-4181100/ 29
Fax No.:	91-129-4181124
Area :	About 19000 square feet
Factory 1 :	Plot No.39, Sector-39, Faridabad, Haryana, India
Location :	Owned
Factory 2 :	Plot No.70, Sector-25, Faridabad, Haryana, India
Area :	About 1,30,000 square feet
Location :	Owned
Factory 3 :	Plot No.928, Sector-58, Faridabad, Haryana, India
Location :	Owned

DIRECTORS

As on 28.09.2011

Name :

Mr. Pankaj Prem Khanna

Designation :

Managing Director

Address :

D-820, New Friends Colony, New Delhi – 110 065, India

Date of Birth/Age :

45 Years

Qualification :

B. Tech.

Experience :

25 Years

Date of Appointment :

09.08.2005

DIN No.:

00169023

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	U29223DL1998PTC093215	P P ROLLING MILLS MFGING COMPANY PRIVATE LIMITED	Managing director	09/08/2005	09/08/2005	-	Active	NO
2	U29223DL2008PTC175843	INCO-PP ROLLING AND PROCESS EQUIPMENT PRIVATE LIMITED	Director	25/03/2008	25/03/2008	-	Strike off	NO
3	U29292DL2010PTC201455	P.P. QUALSERV GEARS COMPANY PRIVATE LIMITED	Director	12/04/2010	12/04/2010	-	Active	NO

Name :

Mrs. Renu Prem Khanna

Designation :

Director

Address :

D-820, New Friends Colony, New Delhi – 110 065, India

Date of Birth/Age :

65 Years

Qualification :

M.A.

Experience :

40 Years

Date of Appointment :

09.08.2005

DIN No.:

00169121

Name :

Mr. Praneet Prem Khanna

Designation :

Director

Address :

D-820, New Friends Colony, New Delhi – 110 065, India

Date of Birth/Age :

17.06.1975

Qualification :

B.E.

Experience :

15 Years

Date of Appointment :

25.03.2006

PAN No.:

APCPK9861N

DIN No.:

00464766

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	U29223DL1998PTC093215	P P ROLLING MILLS MFGING COMPANY PRIVATE LIMITED	Director	25/03/2006	25/03/2006	-	Active	NO
2	U29223DL2008PTC175843	INCO-PP ROLLING AND PROCESS EQUIPMENT PRIVATE LIMITED	Director	01/07/2009	25/03/2008	-	Strike off	NO
3	U29292DL2010PTC201455	P.P. QUALSERV GEARS COMPANY PRIVATE LIMITED	Director	12/04/2010	12/04/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Hemant Singhal
Designation :	General Manager – Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Names of Shareholders	No. of Shares
Renu Prem Khanna	966000
Pankaj Prem Khanna	665000
Praneet Prem Khanna	189000
Total	1820000

As on 28.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Rolling Mills Parts and complete Rolling Mills, Equipment on turnkey basis.
Products/ Services :	v Hot Rolling Mills v Cold Rolling Mill v TMT Equipment v Gear Boxes v Mill Stand v Hot Saws v Twin Channel v Equipment Fabrication v Hot Rolling Mills Turnkey Solutions
Brand Names :	“PPRM”
Exports :
Products :	Rolling Mill Equipments
Countries :	Middle East
Imports :
Products :	Steel Forgings
Countries :	Germany
Terms :
Selling :	L/C and Cash
Purchasing :	L/C and Credit (90 days)

GENERAL INFORMATION

Suppliers :

v 42MM Architecture

v A C Enterprises

v A R Enterprises

v AGM Industries

v Akansha Clearing and Forwarding Private Limited

v B.B. Machine Tools

v Bajaj and Associates

v C L Machine Tools

v Cauvery Tours and Travels

v D and D Engineers and Fabricators

v D K Metal Works

v DHL Express India Private Limited

v E-Procurement Technologies Limited

v Falcon Contracts

v Faridabad Industries Association

v Gear House

v Gulati Steels Fab Private Limited

v H K Heavy Industries

v Ibm Metallurgical Lab. Services

v India Infrastructure and Logistics Private Limited

v Jayalakshmi Fabrication Works

v Krishna Placement Service

v Noble and Smith Corporation

v Payal Engineering Works

v R.R. Joshi (Shipping and Forwarding Private Limited

v Ram Engineering Works

v Shubham Logistics Private Limited

v Shri Krishna Testing and Engg. Services Private Limited

v Udit Communication

v Transamerica Logistics India Private Limited

v Vijay Technofeb and Traders

v Vaishno Calibration Services

v Yash Industries

v Acme Transmissions (India) Private Limited

v Khera Auto Agency

v Vikas Steel Tube Company

v Zesty Constructions Private Limited

Customers :

End Users

v Ashiana Ispat Limited

v Balmukund Sponge and Iron Limited

v Bunty International

v Galaxy Promoters Private Limited

v Dadiji Steels Limited

v Goenka Steels Private Limited

v Nobble Destilleries and Powers Limited

v Ruchi Power and Steel Industries Limited

v Samriddhi Ispat Private Limited

v Shree Sanyeeji Rolling Mills

v Larsen and Toubro Limited

v TISCO Growth Shop

v Sulzer Flovel Hydro Limited

v DLF Industries Limited

v Mecon and Flat Products (India) Limited

v Krupp (India) Limited

v Al-Ittefaq Steels Dammam, Saudi Arabia

v MID India Engineering, Kutch, Gujarat

v Bangladesh Steel Rolling Mill

v Sheema Steels

v AMK Steels, Bangladesh

v Universal Rolling W.L.L.

No. of Employees :

Approximately 250 (In Office – 40, In Factory – 210)

Bankers :

v Corporation Bank, Overseas Branch, M-93, Connaught Place, New Delhi – 110 001, India

v Deutsche Bank A.G., 28, ECE House K.G. Marg, New Delhi – 110 001, India

v HDFC Bank Limited

v ICICI Bank Limited

v State Bank of India

v Hongkong and Shanghai Banking Corporation Limited

Facilities :

Credit Limit – Rs.420.000 millions

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Loan and Advances From Banks
Corporation Bank CCSDL/01/100002	13.259	85.271
Corporation Bank -CCSDL-01/700004	18.187
Corporation Bank -TL/01/050003	6.396
Corporation Bank TLS 01/100005	97.160
Corporation Bank TLS/01/080004	3.896
Post Shipment Credit Loan	5.446
The National Small Industries Corporation Limited	4.341
BHW Home Finance Limited (Deutsche Bank)	23.123
Corporation Bank CMOBI/01/090001	0.358
Corporation Bank CMOBI/01/090002	0.471
Deutsche Bank Loan	10.925
ICICI Bank Car Loan	0.352
Reliance Capital Limited	0.157
LC Outstanding	13.567
Total	197.638	85.271

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Directors	1.426	0.652
From Others	0.000	0.700
Total	1.426	1.352

Banking Relations :	--
Auditors :
Name :	K.N. Barry and Company Chartered Accountants
Address :	Soni Mansion, 1687, Arya Samaj Road, Karol Bagh, New Delhi – 110 005, India
Tel. No.:	91-11-28752713
Mobile No.:	91-9810168752
Fax No.:	91-11-28752713
Income-tax PAN of auditor or auditor's firm :	AAFPB7583C

CAPITAL STRUCTURE

As on 28.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1820000	Equity Shares	Rs.10/- each	Rs.18.200 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SUMMARISED FIGURES

PARTICULARS	31.03.2012
Share Capital	18.200
Reserves & Surplus	136.200
Secured Loans	350.557
Unsecured Loans	1.076
Deferred Tax Liabilities	3.998
FIXED ASSETS [Net Block]	616.595
Inventories	104.377
Sundry Debtors	50.394
Cash & Bank Balances	14.106
Loans & Advances	170.021
Miscellaneous Expenses	0.041
Sundry Creditors & Other Current Liabilities	431.158
Provisions	14.469
Sales Turnover	895.587
Other Income	31.111
Profit before Tax	29.924
Provision for tax	8.224
Profit after Tax	21.700
Cost of goods	638.387
Manufacturing Expenses	33.471
Depreciation	35.202
Interest	13.298
Other Expenses	114.194

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		18.200	18.200	18.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		114.499	83.892	50.680
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		132.699	102.092	68.880
LOAN FUNDS
1] Secured Loans		197.638	85.271	123.273
2] Unsecured Loans		1.426	1.352	1.233
TOTAL BORROWING		199.064	86.623	124.506
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		331.763	188.715	193.386
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		497.037	350.324	287.466
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	1.960	1.960
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	69.084	20.535	24.421
	Sundry Debtors	25.215	34.457	23.984
	Cash & Bank Balances	96.352	153.269	75.387
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	130.011	122.347	116.478
Total Current Assets		320.662	330.608	240.270
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	225.191	223.635	156.203
	Other Current Liabilities	239.908	247.138	175.113
	Provisions	20.889	23.469	5.074
Total Current Liabilities		485.988	494.242	336.390
Net Current Assets		(165.326)	(163.634)	(96.120)
MISCELLANEOUS EXPENSES		0.052	0.065	0.080
TOTAL		331.763	188.715	193.386

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	767.471	739.259	578.236
		Other Income	18.153	13.505	10.153
		TOTAL	785.624	752.764	588.389
Less	EXPENSES
		Cost of Goods Sold	499.903	470.017	402.070
		Consumable Stores	21.187	16.846	16.331
		Paints	1.928	1.285	1.199
		Patterns	0.304	0.540	0.880
		Oil & Lubricants	2.631	2.909	2.342
		Power & Fuel	14.704	10.610	7.656
		Electricity Expenses	4.854	3.331	3.713
		Wages	6.010	1.449	1.828
		Work done by other	39.462	30.252	24.333
		Testing Charges	0.158	0.128	0.159
		Cartage	12.074	19.096	12.648
		Clearing & Forwarding Charges	3.473	1.993	0.252
		Security Charges	3.856	3.447	3.695
		Labour Charges	0.004	0.322	1.369
		Commissioning & Fitting Charges	0.000	2.659	0.767
		Administrative Expenses	100.943	119.235	95.988
		TOTAL	711.491	684.119	575.230
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		74.133	68.645	13.159
Less/ Add	DEPRECIATION/ AMORTISATION		27.544	17.127	13.612
	PROFIT/ (LOSS) BEFORE TAX		46.589	51.518	(0.453)
Less	TAX		14.021	18.307	1.481
	PROFIT/ (LOSS) AFTER TAX		32.568	33.211	(1.934)
	EARNINGS IN FOREIGN CURRENCY
		Export of F.O.B Value	197.950	408.993	371.239
		Miscellaneous Receipts	0.000	0.000	0.000
	TOTAL EARNINGS		197.950	408.993	371.239
	Earnings/ (Loss) Per Share (Rs.)		17.89	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.15	4.41	(0.33)
Net Profit Margin (PBT/Sales)	(%)	6.07	6.97	(0.08)
Return on Total Assets (PBT/Total Assets}	(%)	5.70	7.57	(0.09)
Return on Investment (ROI) (PBT/Networth)		0.35	0.50	(0.01)
Debt Equity Ratio (Total Liability/Networth)		5.16	5.69	6.69
Current Ratio (Current Asset/Current Liability)		0.66	0.67	0.71

LOCAL AGENCY FURTHER INFORMATION

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	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last four years	Yes
12) Profitability for last four years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

NATURE OF OPERATIONS:

The Company is a manufacturer and suppliers of Rolling Mills parts and complete Rolling Mills, equipment on turnkey basis.

The Company has technical collaboration with JPM Steel Technology.

BUSINESS:

The Company is running production units of Rolling Mills Equipment etc. very successfully. The business of the company has expended all round.

FINANCIAL RESULT:

The Turnover has improved for the year ended 31.03.2011 which is Rs.767.471 millions in comparison with year ended 31.03.2010 which was Rs.739.259 millions. The profit before tax and other adjustment is Rs.46.589 millions in the year ended 31.03.2011 as against of Rs.51.518 millions in the year ended 31.03.2010.

The net profit has decline due to depreciation in the current year which is Rs.27.545 millions on fixed assets in the year ended 31.03.2011 where as it was Rs.17.127 millions in the year ended 31.03.2010. The directors expect the better working result in the coming year.

OFFICE SITE:

The company has built office building in Plot No.I-42 in DLF Industrial area, Phase-I, Faridabad, Haryana. The office is very spacious, which is equipped with modern facilities and security systems. The accommodation is about 19000 square feet which is quite adequate for their use. They occupied the same in the month of September, 2010.

FACTORY SITE:

The company is also constructing a factory at Plot No.70 in Sector-25 in Faridabad Industrial Area. The expected covered area shall be about 130000 square feet. The factory site shall be very spacious for the use of the company. The construction of the factory shall take more than year time for completion.

Bankers Charges Report as per Registry

Corporate identity number of the company	U29223DL1998PTC093215
Name of the company	P.P. ROLLING MILLS MFGING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D-820, New Friends Colony, New Delhi – 110 065, India E-Mail: accounts@pprm.in
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	Corporation Bank, Overseas Branch, M-93, Connaught Place, New Delhi – 110 001, India E-Mail: pankajkpc@gmail.com
Nature of description of the instrument creating or modifying the charge	Memorandum of Deposit of Title deeds.
Date of instrument Creating the charge	18.02.2012
Amount secured by the charge	Rs.424.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Mortgage charge on the property for the limit sanction to the company. Terms of Repayment: As per terms of sanction. Margin: As per terms of Sanction. Extent and Operation of the charge: PCL CUM FDBN : Rs.60.000 millions IMPORT/INLAND LC CUM BG : Rs.200.000 millions TERM LOAN (Review) : Rs.92.000 millions TERM LOAN (Sanction) : Rs.72.500 millions Others: -NA-
Short particulars of the property charged	Equitable Mortgage of Industrial plot bearing No.70, Sector-25, Faridabad, Haryana owned by P.P Rolling Mills MFGING Company Private Limited measuring Urban Estate, Faridabad, Measuring 2600 sq. yards.

TRADE REFERENCES:

International Loha Bhandar

Contact No.: 91-9811036678

Contact Person: Mr. Dharmendra Goyal

R.K.G. International

Contact No.: 91-9818797693

Contact Person: Mr. Mittal

FIXED ASSETS:

v Land

v Air Conditioner

v Cellular Phone

v EPABX

v Fax Machine

v Heater

v Generator

v Plant and Machinery

v Office Equipments

v Electrical Installation

v Furniture and Fixture

v Vehicles

v Computer Equipments

v Printer

v Software

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.52.38
UK Pound	1	Rs.84.00
Euro	1	Rs.67.99

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	SMN

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.