MIRA INFORM REPORT

Report Date :

30.10.2012

IDENTIFICATION DETAILS

Name :	HINDUSTAN NEWS PRINT LIMITED
Registered Office :	News Print Nagar, Mavelloorvaikom Taluk, Kottayam - 686616, Kerala
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.06.1983
Com. Reg. No.:	09-003735
Capital Investment / Paid-up Capital :	Rs. 999.999 Millions
CIN No.: [Company Identification No.]	U21013KL1983GOI003735
TAN No.: [Tax Deduction & Collection Account No.]	TVDH00192D
PAN No.: [Permanent Account No.]	AAACH5288E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Taking over and acquiring the business of the Kerala Newsprint Project
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 7600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of Hindustan Paper Corporation Limited. It is a well established reputed and a Government of India enterprise. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. 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	Long-term Rating A-
Rating Explanation	Adequate degree of safety. It carry low credit risk.
Date	October 8, 2012

Rating Agency Name	CRISIL
Rating	Short-term rating A2+
Rating Explanation	Strong degree of safety. It carry low credit risk.
Date	October 8, 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 :	News Print Nagar, Mavelloorvaikom Taluk, Kottayam – 686616, Kerala, India
Tel. No.:	91-4829-256211 to 256221
Fax No.:	91-4829-256777 / 251911
E-Mail :	secretarial@hnlonline.com hnl@hnlonline.com
Website :	http://www.hnlonline.com

DIRECTORS

AS ON 21.09.2011

Name :

Madduri Venkata Narasimha Rao

Designation :

Managing director

Address :

HPC Housing Complex, HC Block, Sector III, Saltlake City, Kolkata – 700074, West Bengal, India

Date of Birth/Age :

26.07.1955

Qualification :

Chartered Accountant and Company Secretary

Date of Appointment :

14.10.2009

DIN No.:

00470654

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	U21013KL1983GOI003735	HINDUSTAN NEWS PRINT LIMITED	Managing director	14/10/2009	29/09/2003	Active	NO
2	U74899DL1970PLC005301	HINDUSTAN PAPER CORPORATION LIMITED	Managing director	21/02/2011	31/01/2004	Active	NO
3	U21012NL1971SGC001349	NAGALAND PULP AND PAPER COMPANY LIMITED	Nominee director	21/02/2011	11/02/2004	Active	NO
4	U21098UP2008PLC035197	JAGDISHPUR PAPER MILLS LIMITED	Nominee director	21/02/2011	08/05/2008	Active	NO

Name :

Mr. Sunil Kumar Singh

Designation :

Nominee director

Address :

D413 Pragathi Vihar, Lodhi Road, Delhi – 110003, India

Date of Birth/Age :

13.02.1971

Date of Appointment :

30.06.2010

DIN No.:

02679637

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	U27100JH1958GOI000630	HEAVY ENGINEERING CORPORATION LIMITED	Nominee director	23/04/2009	23/04/2009	31/08/2009	Active	NO
2	U21012MP1947GOI000636	NEPA LIMITED	Director	13/05/2010	13/05/2010	-	Active	NO
3	U21012NL1971SGC001349	NAGALAND PULP AND PAPER COMPANY LIMITED	Nominee director	17/05/2010	17/05/2010	-	Active	NO
4	U21013KL1983GOI003735	HINDUSTAN NEWS PRINT LIMITED	Nominee director	30/06/2010	30/06/2010	-	Active	NO
5	U21098UP2008PLC035197	JAGDISHPUR PAPER MILLS LIMITED	Nominee director	07/03/2011	07/03/2011	-	Active	NO
6	U33301KA1999PLC025573	HMT WATCHES LIMITED	Director appointed in casual vacancy	26/04/2011	26/04/2011	25/07/2011	Active	NO
7	U29130AP1964FLC001023	HMT BEARINGS LIMITED	Director appointed in casual vacancy	26/04/2011	26/04/2011	25/07/2011	Active	NO
8	U25112WB1984GOI037225	TYRE CORPORATION OF INDIA LIMITED	Director	03/08/2012	03/08/2012	-	Active	NO

Name :

Mr. Subhendra Nath Bhattacharyya

Designation :

Director

Address :

66/3 Dum Dum Road, Kolkata – 700074, West Bengal, India

Date of Birth/Age :

19.07.1955

Qualification :

Bachelor of Engineering

Date of Appointment :

19.07.2010

DIN No.:

03147076

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	U74899DL1970PLC005301	HINDUSTAN PAPER CORPORATION LIMITED	Director	30/03/2010	30/03/2010	Active	NO
2	U21098UP2008PLC035197	JAGDISHPUR PAPER MILLS LIMITED	Nominee director	30/03/2010	30/03/2010	Active	NO
3	U21012NL1971SGC001349	NAGALAND PULP AND PAPER COMPANY LIMITED	Nominee director	30/03/2010	30/03/2010	Active	NO
4	U21013KL1983GOI003735	HINDUSTAN NEWS PRINT LIMITED	Director	19/07/2010	19/07/2010	Active	NO

KEY EXECUTIVES

Name :	Siji Abraham
Designation :	Secretary
Address :	C20/39 HNL Towns HIP News Print Nagar, Kottayam – 686616, Kerala, India
Date of Birth/Age :	01.04.1977
Date of Appointment :	30.11.2009
PAN No.:	AKOPA4490Q
Name :	Subhasis Dey
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.09.2011

Names of Shareholders	No. of Shares
Hindustan Paper Corporation Limited, India	99999700
S N Bhattacharya	100
M V Narasimha Rao	100
Total	99999900

AS ON 21.09.2011

Equity Share Breakup	Percentage of Holding
Category
Government companies	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Taking over and acquiring the business of the Kerala Newsprint Project

Products :

ITC Code	Product Descriptions
48.01	Newsprint

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Newsprint	Metric Tonne	1,00,000	100000	104911
Writing andamp; Printing Paper	Metric Tonne	20,000	Nil	Nil

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Centurion Bank Limited, Choice Towers, Manorama Junction, Cochin – 682016, Kerala, India

Ø State Bank of Travancore, Vellore Branch, Edathaamara Buildings, Mevelloor P.O., Kottayam – 686609, Kerala, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans banks secured	136.746	0.000
Total	136.746	0.000
Notes: (A) Cash Credit/Loan from Scheduled Commercial Banks taken on Short Term Basis - Central Bank of India (Secured by hypothecation of current assets such as Sundry Debtors, stocks of raw materials, stock in process, finished goods and stores and spares)

Banking Relations :	--
Auditors :
Name :	Kuryan and Suseelan Chartered Accountants
Address :	Pukadiyil Buildings, Sastri Road, Kottayam- 686001, Kerala, India
Tel. No.:	91-481-2563109 / 2580735
Fax No.:	91-481-2583152
E-Mail :	Kscaktm@gmail.com
Income-tax PAN of auditor or auditor's firm :	AACFK5262G
Holding Company :	Hindustan Paper Corporation Limited [U74899DL1970PLC005301]

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000,000	Equity Shares	Rs. 10/- each	Rs. 1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99,999,900	Equity Shares	Rs.10/- each	Rs. 999.999 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		999.999	999.999	999.999
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		921.383	917.504	1397.744
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1921.382	1917.503	2397.743
LOAN FUNDS
1] Secured Loans		136.746	0.000	326.552
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		136.746	0.000	326.552
DEFERRED TAX LIABILITIES		301.678	302.487	324.456
TOTAL		2359.806	2219.990	3048.751
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1468.697	1453.012	1548.010
Capital work-in-progress		79.251	186.085	171.241
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	690.934	610.619	1441.530
	Sundry Debtors	286.776	169.831	429.776
	Cash & Bank Balances	350.428	356.887	37.470
	Other Current Assets	8.441	2.586	2.250
	Loans & Advances	259.320	282.913	280.256
Total Current Assets		1595.899	1422.836	2191.282
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	234.626	391.266	536.033
	Other Current Liabilities	402.391	265.809	191.496
	Provisions	147.024	184.868	134.253
Total Current Liabilities		784.041	841.943	861.782
Net Current Assets		811.858	580.893	1329.500
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2359.806	2219.990	3048.751

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3016.608	2843.859	2976.737
		Other Income	135.211	45.940	69.412
		TOTAL	3151.819	2889.799	3046.149
Less	EXPENSES
		Consumption materials changes inventories	1322.733	1652.158
		Manufacturing service costs	958.460	877.126
		Contract cost	25.041	24.663
		Employee related expenses	584.291	606.074
		Administrative selling other expenses	89.300	134.188
		TOTAL	2979.825	3294.209	2699.963
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		171.994	(404.410)	346.186
Less	FINANCIAL EXPENSES		6.179	6.668	13.414
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		165.815	(411.078)	332.772
Less/ Add	DEPRECIATION/ AMORTISATION		117.569	122.929	120.185
	PRIOR PERIOD ITEMS BEFORE TAX		5.887	4.055	(1.634)
	PROFIT BEFORE TAX		54.133	(529.952)	210.953
Less	TAX		3.765	(49.712)	84.597
	PROFIT AFTER TAX		50.368	(480.240)	126.356
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		797.660	1277.900	1268.538
Less	APPROPRIATIONS
		Dividend	40.000	0.000	100.000
		Tax on Dividend	6.489	0.000	16.994
	BALANCE CARRIED TO THE B/S		801.539	797.660	1277.900
	VALUE OF EXPORTS ON FOB BASIS		0.000	1.861	1.338
	IMPORTS
		Raw Materials and Consumables	8.623	75.820	460.214
		Components and Spare Parts	32.670	27.659	45.142
		Capital Goods	1.246	6.058	13.298
	TOTAL IMPORTS		42.539	109.537	518.654
	Earnings Per Share (Rs.)		0.50	(4.80)	1.26
			0.50	(4.80)	1.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.60	(16.62)	4.15
Net Profit Margin (PBT/Sales)	(%)	1.79	(18.63)	7.09
Return on Total Assets (PBT/Total Assets}	(%)	1.77	(18.43)	5.64
Return on Investment (ROI) (PBT/Networth)		0.03	(0.28)	0.09
Debt Equity Ratio (Total Liability/Networth)		0.48	0.44	0.50
Current Ratio (Current Asset/Current Liability)		2.04	1.69	2.54

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	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

ORIGIN AND BRIEF HISTORY

The Company was incorporated as a Private Limited Company on 7th June, 1983, as a wholly owned subsidiary of Hindustan Paper Corporation Limited, with the main objective of taking over and acquiring the business of the Kerala Newsprint Project, a unit of Hindustan Paper Corporation Limited, on a going concern basis in accordance with the directive of the Government of India.

OPERATIONAL AND FINANCIAL PERFORMANCE:

During the year, the Company maintained higher levels of operational and financial performance by achieving a production of 104911 MT, which is 105% of the installed capacity with a sales turnover of Rs.3016.600 Millions as against 100546 MT at a value of Rs.2843.900 Millions during the previous year.

The Company’s stock position at the end of 31.03.2011 was NIL.

BUSINESS OUTLOOK:

The business outlook appears to be satisfactory, as the price of newsprint is rising in the domestic market as compared to international market, which remains stable. In the domestic market the newsprint price has gone up to 10-20% year-to-date because of the strong demand fuelled by expansion plans of newspaper publishers. The potential is immense, as newspaper reaches only 20% of the population of India. Globally, the industry is connected with a 1.8 billion population and a further 5 billion population is to be tapped. The chances are that circulation would keep increasing. The average annual growth of the Industry in the Indian print Industry had been 15% in advertising and 5% in circulation over the last three years. It is heartening to note that domestic newsprint prices had increased to an average of 13.4% compared to its average prices in 2010. On the same basis, international newsprint prices (US) were up only by 7.2%. Moreover the Indian middle class is fuelling an increase in newspaper readership, which in turn increases advertising revenue for publishers and demand for newsprint. In the present scenario of growth in the newsprint industry, the domestic newsprint manufacturing industry perceives a major opportunity for investment in sustainable competitiveness. However the Company has taken relentless efforts to create stability in the changing market environment, and to provide platform for future growth.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U21013KL1983GOI003735
Name of the company	HINDUSTAN NEWS PRINT LIMITED
Address of the registered office or of the principal place of business in India of the company	News Print Nagar, Mavelloorvaikom Taluk, Kottayam – 686616, Kerala, India Email: secretarial@hnlonline.com
This form is for	Modification of charge
Charge identification number of the modified	90022763
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of Travancore, Vellore Branch, Edathaamara Buildings, Mevelloor P.O., Kottayam – 686609, Kerala, India Email: velloor@sbt.co.in
Nature of description of the instrument creating or modifying the charge	(1) Supplemental Agreement of Loan for increase in the overall Working Capital Limit dated 06.08.2012. (2) Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall Working Capital Limit dated 06.08.2012. (3) Letter regarding the grant of individual limits within the overall Working Capital Limit dated 06.08.2012.
Date of instrument Creating the charge	06.08.2012
Amount secured by the charge	Rs. 620.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest : 175 bps above SBT BR, effectively 12.25% p.a. with monthly rests. Terms of Repayment The Adhoc Working Capital Limit of Rs.100.000 Millions is to be repaid within a period of 6 months from the date of sanction, i.e. 20.07.2012 Margin Margin : 20% Extent and Operation of the charge Extended the existing Hypothecation on stocks of raw materials, stock in process, finished goods, stores and spares, receivables and other current assets in favour of State Bank of Travancore as continuing security by way of first charge on pari passu basis with other banks in the MBA viz. Central Bank of India and State Bank of India to secure the Adhoc Working Capital limit of Rs.100.000 Millions extended by State Bank of Travancore to the borrower Company in addition to the existing WC limit of Rs.520.000 Millions. Others Nature of Credit Facilities : The aggregate limit was enhanced from Rs.520.000 Millions to Rs.620.000 Millions as under: Limits Existing Proposed (Rupees in Millions) CC 300.000 300.000 (FBWC) Adhoc CC 0.000 100.000 (FBWC) LC 170.000 170.000 (NFB) BG 50.000 50.000 (NFB) ------- ------- Total 520.000 620.000 ==== ====
Short particulars of the property charged	Extended the existing Hypothecation on stocks of raw materials, stock in process, finished goods, stores and spares, receivables and other current assets in favour of State Bank of Travancore as continuing security by way of first charge on pari passu basis with other banks in the MBA viz. Central Bank of India and State Bank of India to secure the enhanced Working Capital Limit of Rs. 620.000 Millions including the Adhoc limit of Rs. 100.000 Millions.
Date of latest modification prior to the present modification	31.12.2011
Particulars of the present modification	On 06.08.2012,(i) the aggregate credit facility was enhanced from Rs. 520.000 Millions to Rs. 620.000 Millions by granting a new Adhoc CC limit of Rs. 100.000 Millions (ii) extended the existing hypothecation charge on stocks of raw materials, stock in process, finished goods, stores and spares, receivables and other current assets in favour of SBT as continuing security to secure the enhanced Working Capital Limit of Rs. 620.000 Millions by way of first charge on pari passu basis with other banks in the MBA viz. CBI and SBI.

CONTINGENT LIABILITY

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010
a) Suits for enhancement of compensation filed by ex-land owners whose lands were acquired for Kerala Newsprint Mill.	2.000	2.000
b)Disputed Liability in respect of Sales Tax	139.342	246.965
c) Value of Bills Discounted and Letters of Credit issued by Bankers	102.885	3.775
d)Contingent Liability in respect of House Loan advanced to employees by HDFC Ltd.	0.000	0.024
e) Claims against the Company not acknowledged as debts
1 Claim for Service Tax by Service Providers	43.520	37.334
2 Claims made by Forest Department, GoK towards Lease rent	10.928	9.977
3 Others	39.059	16.324
f) Contingent Liability for Income Tax	8.043	26.828
g) Disputed liability to KFDC	1.823	1.823
h) Contingent Liability in respect of Bank Guarantees issued favouring KSEB, Mahanadi Coalfields Limited and East Coast Railways.	26.351	20.873

FIXED ASSETS:

Ø Land

Ø Building

Ø Roads

Ø Railway Siding

Ø Plant and Machinery

Ø Construction Equipment

Ø Office Equipment

Ø Furniture and Fixtures

Ø Other Equipments

Ø Durable Tools

Ø Fans and Electricals

Ø Cooling Apartment

Ø Vehicles

Ø Water Supply

Ø Drainage and Sewage System

Ø Air Conditioner

Ø Air Cooler

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 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 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] on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] 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. 53.81
UK Pound	1	Rs. 86.52
Euro	1	Rs. 69.50

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.