MIRA INFORM REPORT

Report Date :

18.10.2012

IDENTIFICATION DETAILS

Name :	LAL BABA SEAMLESS TUBES PRIVATE LIMITED (w.e.f 19.01.2007)
Formerly Known As :	LAL BABA STEEL INDUSTRIES PRIVATE LIMITED
Registered Office :	13A, Government Place (East), 2^nd Floor, Kolkata – 700069, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.06.2006
Com. Reg. No.:	21-110060
Capital Investment / Paid-up Capital :	Rs. 245.750 Millions
CIN No.: [Company Identification No.]	U27310WB2006PTC110060
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Seamless Steel Tube
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 850000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. It has incurred heavy loss from its operations during 2011. Liquidity position of the company is under severe pressure. There appears huge internal borrowing recorded by the company. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with great 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	C (Term Loan)
Rating Explanation	Very high risk of default
Date	September 2012

Rating Agency Name	ICRA
Rating	C (Cash Credit)
Rating Explanation	Very high risk of default
Date	September 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. Debashis
Designation :	Export Manager
Contact No.:	91-9051611120
Date :	16.10.2012

LOCATIONS

Registered Office/ Corporate Office :	13A, Government Place (East), 2^nd Floor, Kolkata – 700069, West Bengal, India
Tel. No.:	91-33-22310770/22310770/40080579
Mobile No.:	91-9051611696 (Mr.S. R. Mishra – Sales Executive)
Fax No.:	91-33-22310771
E-Mail :	sales@lbstubes.com snvroc@email.com
Location :	Rented
Factory :	Bardhanya Ghata, Debhog, Purba Midnapur, Holdia – 721657, West Bengal, India

DIRECTORS

AS ON 28.09.2010

Name :	Mr. Kishan Kumar Dhanuka
Designation :	Director
Address :	Space Town, Block – 3, VIP Road, Kolkata – 700052, West Bengal, India
Date of Birth/Age :	25.10.1968
Date of Appointment :	28.11.2006
DIN No.:	00569035

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U28939WB1997PTC086219	Sf Forgings Private Limited	Director	30/12/1997	30/12/1997	Active	NO
2	U51109WB1999PTC090488	Expansion Bellows Private Limited	Director	15/10/1999	15/10/1999	Active	NO
3	U27109WB1995PTC068639	Macedon Vinimay Private Limited	Director	2/5/2000	2/5/2000	Active	NO
4	U27310WB2006PTC110060	Lal Baba Seamless Tubes Private Limited	Director	28/11/2006	28/11/2006	Active	NO
5	U51909WB1986PTC041568	S N R Trading Company Private Limited	Director	9/3/2007	9/3/2007	Active	NO
6	U51109WB2008PTC125644	Mld Commercial Private Limited	Director	13/05/2008	13/05/2008	Active	NO
7	U25191WB2003PTC097168	Bee-Cee Tubes Private Limited	Director	13/01/2011	13/01/2011	Active	NO

Name :	Mr. Pankaj Dhanuka
Designation :	Director
Address :	C/280, Sector-ll, Bidhannagar, Salt Lake, Kolkata- 700091, West Bengal, India
Date of Birth/Age :	15.01.1970
Date of Appointment :	28.11.2006
DIN No.:	00569195

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U27106WB1997PTC083691	Nf Forgings Private Limited	Director	22/04/1997	22/04/1997	-	Active	NO
2	U27109WB1995PTC068639	Macedon Vinimay Private Limited	Director	31/12/2003	31/12/2003	-	Active	NO
3	U72900WB2004PTC097921	Xplore-Tech Services Private Limited	Director	25/02/2004	25/02/2004	-	Active	NO
4	U74140WB2005PTC101643	P N S Business Private Limited	Director	11/2/2005	11/2/2005	-	Active	NO
5	U74999WB2005PTC104004	X-Tronics Marketing Private Limited	Director	4/7/2005	4/7/2005	30/11/2007	Active	NO
6	U51909WB1986PTC041568	S N R Trading Company Private Limited	Director	11/9/2006	11/9/2006	-	Active	NO
7	U27310WB2006PTC110060	Lal Baba Seamless Tubes Private Limited	Director	28/11/2006	28/11/2006	-	Active	NO
8	U72200WB2007PTC117984	Xplore Infrastructure Private Limited	Director	22/08/2007	22/08/2007	25/07/2008	Active	NO
9	U74200WB2010PTC144652	Pew Engineering Private Limited	Director	30/03/2010	30/03/2010	-	Active	NO
10	U25191WB2003PTC097168	Bee-Cee Tubes Private Limited	Director	13/01/2011	13/01/2011	-	Active	NO

Name :	Mr. Babulal Dhanuka
Designation :	Director
Address :	C/280, Sector-ll, Bidhannagar, Salt Lake, Kolkata- 700091, West Bengal, India
Date of Birth/Age :	08.10.1937
Date of Appointment :	26.06.2006
DIN No.:	00569274

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U65993WB1988PTC044777	S D R Meghnath Investments Private Limited	Director	2/12/2000	2/12/2000	Active	NO
2	U27310WB2006PTC110060	Lal Baba Seamless Tubes Private Limited	Director	26/07/2006	26/07/2006	Active	NO
3	U74999WB2005PTC104004	X-Tronics Marketing Private Limited	Director	1/4/2007	1/4/2007	Active	NO
4	U74999WB2009PTC137782	Lalbaba Industrial Corporation Private Limited	Director	14/08/2009	14/08/2009	Active	NO Bottom of Form

Name :	Mr. Murari Lal Dhanuka
Designation :	Director
Address :	Space Town, Block – 3, VIP Road, Kolkata – 700052, West Bengal, India
Date of Birth/Age :	05.01.1942
Date of Appointment :	26.06.2006
DIN No.:	00569306

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U27310WB2006PTC110060	Lal Baba Seamless Tubes Private Limited	Director	26/07/2006	26/07/2006	Active	NO
2	U25209WB1994PTC066299	Modern Extrusions (India) Private Limited	Director	4/8/2009	4/8/2009	Active	NO
3	U74999WB2009PTC137782	Lal baba Industrial Corporation Private Limited	Director	14/08/2009	14/08/2009	Active	NO

Name :	Mr. Jitendra Kochar
Designation :	Director
Address :	P-857, Lake Town, Block A, Kolkata-700089, West Bengal, India
	03.09.1970
Date of Appointment :	24.05.2008
Date of Cessation :	24.05.2011
DIN No.:	00893164

KEY EXECUTIVES

Name :	Mr. Debashis
Designation :	Export Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2010

Names of Shareholders	No. of Shares
Babulal Dhanuka	5000
Murarilal Dhanuka	5000
S.D.R Meghnath Investments Private Limited	3455000
S N R Trading Company Private Limited	21110000
TOTAL	24575000

AS ON 28.09.2010

Names of Allottees	No. of Shares
Nettown Mercantiles Private Limited, India	14000
Shriramrathi Marketing Private Limited, India	28800
Positive Vinimay Private Limited, India	24000
Intellect Trade-Link Private Limited, India	32000
Singrodia Bros. Holding Private Limited, India	40000
Rotomac Vinimay Private Limited, India	16000
Clubside Dealcom Private Limited, India	60400
TOTAL	215200

AS ON 28.09.2010

Equity Shares Break Up	Percentage of Holding
Bodies corporate	99.96
Directors or relatives of Directors	0.04
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Seamless Steel Tube

Products :

• Seamless Steel Tubes foe Low and Medium Pressure Boilers
• Cold Drawn Seamless Tubes
• Seamless Steel Tubes For High Pressure Boilers
• Steel Tubes for Heat Exchangers Seamless
• Seamless Carbon Steel Tubes for High Temperature
• Seamless Carbon Steel Boiler Tubes for High Pressure
• Seamless Medium Carbon Steel Boilers and Super Heater Tubes
• Seamless Carbon and Alloy Steel for Mechanical Tubing

Product Description	Item Code No.
Trading in Stainless Steel and S.S. Pipes	7218

Exports :

Countries :

• Bangladesh
• Sri Lanka
• Dubai
• USA

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS (AS ON : 31.03.2010)

Particulars	Unit	Actual Production
Manufactured Goods
- Seamless Steel Tubes (Kgs)	Kgs	658630
Trade Goods
- Steel Seamless Pipes (Kgs.)	Kgs	192031
- Steel Seamless Pipes (Mtr.)	Mtr	1978

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers

No. of Employees :

30 (Approximately)

Bankers :

• Oriental Bank of Commerce, 107/1 Park Street Branch, 1^st Floor, Park Street Branch, Kolkata – 700001, West Bengal, India

• HDFC Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans secured
Rupee term loans banks secured	276.891	166.693
TOTAL	276.891	166.693
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans unsecured
Rupee term loans others unsecured	63.962	66.184
TOTAL	63.962	66.184

Banking Relations :	--
Auditors :
Name :	Surana Naveen Vikash and Company Chartered Accountant
Address :	P-11, New Howrah Bridge, Approach Road, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22351187/0520
Fax No.:	91-33-22350520
E-Mail :	snvtax@email.com
PAN.:	AAQFS6728P
Holding Company (As on 31.03.2010):	S N R Trading Company Private Limited CIN No.: U51909WB1986PTC041568

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24575000	Equity Shares	Rs.10/- each	Rs. 245.750 Millions

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24790200	Equity Shares	Rs.10/- each	Rs. 247.902 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		245.750	245.750	149.900
2] Share Application Money		0.500	2.000	45.750
3] Reserves & Surplus		(32.602)	2.362	1.060
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		213.648	250.112	196.710
LOAN FUNDS
1] Secured Loans		276.891	166.693	173.092
2] Unsecured Loans		63.962	66.184	0.000
TOTAL BORROWING		340.853	232.877	173.092
DEFERRED TAX LIABILITIES		0.141	0.141	0.141
TOTAL		554.642	483.130	369.943
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		472.762	165.025	20.572
Capital work-in-progress		0.000	299.829	310.652
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.656	14.404	9.553
	Sundry Debtors	53.209	5.576	3.468
	Cash & Bank Balances	0.765	0.709	0.860
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	50.848	62.576	51.812
Total Current Assets		146.478	83.265	65.693
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	61.569	61.255	20.611
	Other Current Liabilities	8.650	11.156	6.976
	Provisions	0.838	0.838	0.600
Total Current Liabilities		71.057	73.249	28.187
Net Current Assets		75.421	10.016	37.506
MISCELLANEOUS EXPENSES		6.459	8.260	1.213
TOTAL		554.642	483.130	369.943

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	229.395	37.826	59.639
		Other Income	6.775	1.770	0.605
		TOTAL (A)	236.170	39.596	60.244
Less	EXPENSES
		Consumption of Raw Material Purchase for Trading Exp	151.503	27.587	59.402
		Other Expenses	79.066	9.042
		TOTAL (B)	230.569	36.629
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.601	2.967	[Including Financial
					Expenses
Less	FINANCIAL EXPENSES (D)		32.355	0.851	Depreciation ]
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(26.754)	2.116
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.210	0.576
	PROFIT BEFORE TAX (E-F) (G)		(34.964)	1.540	0.842
Less	TAX (H)		0.000	0.238	0.372
	PROFIT AFTER TAX (G-H) (I)		(34.964)	1.302	0.470
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.362	1.060	0.590
	BALANCE CARRIED TO THE B/S		(32.602)	2.362	1.060
	IMPORTS
		Raw Materials	NA	1.389	NA
		Stores & Spares	NA	7.028	NA
		Capital Goods	NA	8.759	NA
	TOTAL IMPORTS		NA	17.176	NA
	Earnings Per Share (Rs.)		(1.41)	0.08	0.04

Expected Sales (2012-2013) : Rs. 300.000 Millions

The above information has been parted by Mr. Debashis.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(14.80)	3.29	0.78
Net Profit Margin (PBT/Sales)	(%)	(15.24)	4.07	1.41
Return on Total Assets (PBT/Total Assets}	(%)	(5.65)	0.62	0.98
Return on Investment (ROI) (PBT/Networth)		(0.16)	0.00	0.00
Debt Equity Ratio (Total Liability/Networth)		1.93	1.22	1.02
Current Ratio (Current Asset/Current Liability)		2.06	1.14	2.33

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE

Registered office has been shifted form 28, Strand Road, 3^rd Floor, Kolkata – 700001, West Bengal, India to present address w.e.f. 05.03.2011

FORM 8

Corporate identity number of the company	U27310WB2006PTC110060
Name of the company	LAL BABA SEAMLESS TUBES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	13A, Government Place (East), 2^nd Floor, Kolkata – 700069, West Bengal, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10105836
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge Others
Particular of charge holder	Oriental Bank of Commerce, 107/1 Park Street Branch, 1^st Floor, Park Street Branch, Kolkata – 700001, West Bengal, India
Nature of instrument creating charge	Supplemental Agreement to Secure Credit/Loan Facilities - (Loan DOC-13). Agreement of Guarantee - (Loan DOC-11) (3 Sets). Letter Confirming Deposit of Title Deeds - (LTR-21) belonging to Corporate Guarantor and Security Provider.
Date of instrument Creating the charge	12.07.2012
Amount secured by the charge	Rs. 245.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash Credit: At 5.25% over Base Rate, present effective rate 15.75% p.a. with monthly rests. Term Loan: At 5.25% over Base Rate, present effective rate 15.75% p.a. with monthly rests. Terms of repayment Working Capital Limit is repayable on demand. The outstanding Term Loan of Rs.51.400 Millions is repayable in 43 monthly installments of Rs.1.200 Millions commencing from April, 2013. Interest shall be recovered as and when due. Margin As stipulated by the Bank for the respective assets from time to time. Cash Credit : 25% on stocks and Receivables up to 90 days, Term Loan : 25% and Bank Guarantee (Financial & Performance) : 25%. Extent and operation of the charge The charge operates as first charge basis on the whole of the hypothecated current assets and moveable fixed assets of the Company, both present and future and mortgaged properties belonging to M/s. PEW Engineering Private Limited (Corporate Guarantor and Security Provider) to secure the maximum amount under the said charge fixed at Rs.245.000 Millions together with interest, costs and charges thereon. Other The Borrower shall not do or allow anything which may prejudice the security and shall comply with the terms and conditions of the Agreement. The overall limit is also secured by Corporate Guarantee of M/s. PEW Engineering Private Limited, M/s. SF Forgings Private Limited and M/s. SNR Trading Company Private Limited. All other terms, conditions and security details shall continue to remain same as before in full force and effect.
Short particulars of the property charged (Including location of the property)	Hypothecation of raw materials, stock in process, finished goods and receivables and other current assets of the Company, both present and future. First charge on Equitable Mortgage of factory land and building at Haldia. Hypothecation of plant and machinery and other fixed assets of the Company, both present and future on pari passu basis with WBIDC. All that piece and parcel of bastu land together with one dilapidated RT structure measuring about (i) 3 cottah 1 chittacks 15 sq. ft. being Plot No.68A, Dag No.1311 and 1316 (ii) 5 cottahs, 4 chittacks 30 sq. ft. being Plot No.68 at Dag No.1311, 1316 and 1317 (iii) 6 cottahs 6 chittacks 24 sq. ft. being Plot No.50 at Dag No.1316, 1318 and 1319 within Municipal Holding No.40, Joya Bidi Road, Ghusury, P.S. Bally, District Howrah under Khatian No. 602, J.L. No.18,P.S. No.1985 of Mouza Ghusury within ADSR Howrah belonging to M/s. PEW Engineering Private Limited (Corporate Guarantor and Security Provider).
Whether any of the property or interest therein under reference is not registered in the name of the company.	Yes
If yes, in whose name it is registers	PEW Engineering Private Limited (Corporate Guarantor and Security Provider)
Particulars of the present modification	By this modification, the overall limit remains same at Rs.245.000 Millions. However, the repayment schedule of the TL has been Reviewed and Rescheduled and the sub limits are now altered for the credit facilities as stated under and charge on hypothecated current assets and moveable fixed of the Borrower and mortgaged properties belonging to the Corporate Guarantor and Security Provider extended/created to secure the overall limit : CC : Rs.135.000 Millions BG : (Rs.12.000 Millions) TL (existing) : Rs.110.000 Millions.

FIXED ASSETS

• Leasehold Land
• Land
• Air Conditioners
• Motor Car
• Furniture and Fixture
• Office Equipment
• Computer and Accessories

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. 52.75
UK Pound	1	Rs. 85.07
Euro	1	Rs. 69.03

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.