MIRA INFORM REPORT

Report Date :

01.09.2012

IDENTIFICATION DETAILS

Name :	ACE MANUFACTURING SYSTEMS LIMITED

Registered Office :	Plot No.467-469, 12^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	07.03.1994

Com. Reg. No.:	08-015321

Capital Investment/ Paid-up Capital:	Rs.6.880 Millions

CIN No.: [Company Identification No.]	U85110KA1994PLC015321

TAN No.: [Tax Deduction & Collection Account No.]	BLRA01051B

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of CNC Machines, Industrial Plants Machines.

No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 4110000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an well established company having good track record. But for the current year financial details is missing from government department. However, from the previous year record company performance is remarkable. Fundamental seems to be strong. Trade relations are reported to be fair. Business is active. Payment are reported to be regular and as per commitments. The company can be considered for normal 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

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	A+ (Long Term Rating)
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk.
Date	July 2011

Rating Agency Name	ICRA
Rating	A1+(Short Term Rating)
Rating Explanation	Having very strong degree of safety regarding timely payment of financial obligation it carry credit risk.
Date	July 2011

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 :	Plot No.467-469, 12^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-41828100/28360508 to 12/41828102
Fax No.:	91-80-28362791/41828102
E-Mail :	helpdesk@amslindia.com
Web Site:	www.amsl.in

DIRECTORS

As On 16.05.2012

Name :

Mr. Shrinivas Govindrao Shirgurkar

Designation :

Director

Address :

586, 1^st Main, 2^nd Stage, 3^rd Block, Rmvextention, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

08.04.1948

Qualification :

B.E.

Date of Appointment :

07.03.1994

Din No.:

00173944

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	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Managing director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
4	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
5	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	30/08/1996	30/08/1996	-	Active	NO
6	U34300KA2005PTC037594	PRAGATI TRANSMISSION PRIVATE LIMITED.	Director	03/11/2005	03/11/2005	-	Active	NO
7	L85110KA1980PLC003913	WENDT INDIA LIMITED	Director	17/04/2006	17/04/2006	-	Active	NO

Name :

Mr. Benedict Machado

Designation :

Director

Address :

583, 1^st Main, 2^nd Stage, 3^rd Block, Rmvextention, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

04.12.1948

Qualification :

B.E.

Date of Appointment :

07.03.1994

Din No.:

00174074

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	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Managing director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
4	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
5	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	30/08/1996	30/08/1996	-	Active	NO
6	U34300KA2005PTC037594	PRAGATI TRANSMISSION PRIVATE LIMITED.	Director	03/11/2005	03/11/2005	-	Active	NO

Name :

Mr. Ashok Vishwanath Sathe

Designation :

Director

Address :

No.252, 5^th D Cross,2^nd Phase, 2^nd Stage, Mahalakshmipuram, Bangalore – 560086, Karnataka, India

Date of Birth/Age :

17.03.1940

Qualification :

B.E., M.TECH

Date of Appointment :

07.03.1994

Din No.:

00174204

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	U29199KA1986PLC007816	ACE DESIGNERS LIMITED	Whole-time director	01/07/2010	25/09/1986	-	Active	NO
2	U02922KA1987PLC008415	AUTO CNC MACHINING LIMITED	Director	11/06/1987	11/06/1987	-	Active	NO
3	U74899DL1987PTC029798	MICROMATIC MACHINE TOOLS PRIVATE LTD	Director	01/02/1988	01/02/1988	-	Active	NO
4	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Director	07/03/1994	07/03/1994	-	Active	NO
5	U85110KA1995PLC018544	ACE MULTI AXES SYSTEMS LIMITED	Director	16/08/1995	16/08/1995	-	Active	NO
6	U29199KA2001PTC029247	PRAGATI AUTOMATION PRIVATE LIMITED	Director	05/07/2001	05/07/2001	-	Active	NO
7	U22100PN2007PTC130644	UDYAM PRAKASHAN PRIVATE LIMITED	Director	03/09/2007	03/09/2007	-	Active	NO
8	U29253KA2011PTC060244	PRAGATI CONTROL SYSTEMS PRIVATE LIMITED	Director	05/09/2011	05/09/2011	-	Active	NO

Name :

Mr. Puttige Ramdas

Designation :

Director

Address :

No.452, 1^st Stage 1 main Bemllayout, Basveshwarnagar, Bangalore – 560079, Karnataka, India

Date of Birth/Age :

18.03.1946

Qualification :

B.E., M. TECH

Din No.:

30.03.1996

Passport No.:

01510873

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	U85110KA1994PLC015321	ACE MANUFACTURING SYSTEMS LIMITED	Managing director	01/04/2010	30/03/1996	-	Active	NO
2	U28930KA2007PTC043919	AMS BHARGAVA MACHINING PRIVATE LIMITED	Director	20/09/2007	20/09/2007	-	Active	NO

Name :

Mr. V. Chandra

Designation :

Director

Address :

No.437, 8^th Floor, Mahalakshmipuram, Bangalore – 560086, Karnataka, India

Date of Birth/Age :

B.E

Date of Appointment :

13.02.1995

Din No.:

01510893

Name :

Mr. Thirumalaimuppur Kuppuswamy Ramesh

Designation :

Additional Director

Address :

1702, 7^th Floor, Gowart Apartmentsm RMV II Stage, Bangalore – 560054, Karnataka, India

Date of Birth/Age :

26.01.1958

Date of Appointment :

04.08.2007

Din No.:

01790388

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 16.05.2012

Names of Shareholders		No. of Shares
ACE Designer Limited, India		19400
Micro Matic Machine Tools Limited, India		18000
Puttige Ramdas		11200
Benedict Machado		5400
Shrinivas Govindrao Shirgurkar		5400
Ramdas Jayashree		4000
Philomena Machado		1800
Bharathi Shitrgurkar		1800
V. Chandra		1800
Total		68800

As On 16.05.2012

Category		Percentage

Bodies corporate		49.00
Directors or relatives of directors		51.00

Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of CNC Machines, Industrial Plants Machines.

Products :

ITEM CODE NUMBER	PRODUCT DESCRIPTION
84597100	Matching Centers

GENERAL INFORMATION

Customers :

· Auto Tech Industries

· Bagla Group

· Bajaj Auto Limited

· Bajaj Motors

· Bosch Group

· Brakes India Group

· Dynamatic Technologies

· Kiran Udyog Limited

· Mach Aero

· Mahindra Group

· Maruti Suzuki

· Quest

· TBK

· Super Auto India

· Zanvar Group of Industries

No. of Employees :

Not Available

Bankers :

· Canara Bank, Industrial Finance Branch, No.83, Richmond Road, Bangalore – 560025, Karnataka, India

· Karnataka Bank Limited, Kasturba Road, Bangalore – 560001, Karnataka, India

Facilities :

Rs. In Millions

Secured Loans

As on 31.03.2011

Rs. in millions

As on 31.03.2010

Rs. in millions

Working capital loans secured

48.192

22.128

Total

48.192

22.128

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions

Other debt unsecured	3.127	3.127
Total	3.127	3.127


Banking Relations :	--

Auditors :
Name :	P.A. Ghatage and Company Chartered Accountant
Address :	2/10, BDA Flats, Cambridge Layout Extension, Ulsoor, Bangalore-560008, Karnataka, India
Pan No.:	AANPG1439N

Associates:	· Ace Designers Limited · Pragati Automation Private Limited · Micromatic Machine Tools Private Limited · Ace Multi Axes Systems Limited · Auto CNC Machining Limited · AMS Bhargava Machining Private Limited

CAPITAL STRUCTURE

As on 16.05.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

100000	Equity Shares	Rs.100/- each	Rs.10.000 Million
50000	Preference Shares	Rs.100/- each	Rs.5.000 Millions
	Total		Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

68800	Equity Shares	Rs.100/- each	Rs.6.880 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		6.880	7.600	7.600
2] Share Application Money		0.000	0.00	0.000
3] Reserves & Surplus		1021.231	961.883	903.211
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1028.111	969.483	910.811
LOAN FUNDS
1] Secured Loans		48.192	22.128	3.436
2] Unsecured Loans		3.127	3.127	26.723
TOTAL BORROWING		51.319	25.255	30.159
DEFERRED TAX LIABILITIES		32.542	29.600	0.000

TOTAL		1111.972	1024.338	940.970

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		364.797	336.930	345.725
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		252.608	302.608	19.608
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	532.475	355.365	513.077
	Sundry Debtors	274.964	234.898	137.851
	Cash & Bank Balances	69.144	33.646	8.560
	Other Current Assets	182.081	109.902	0.00
	Loans & Advances	145.696	46.716	93.212
Total Current Assets		1204.360	780.527	752.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	381.401	270.735	91.752
	Other Current Liabilities	142.181	54.974	49.630
	Provisions	186.211	70.018	35.681
Total Current Liabilities		709.793	395.727	177.063
Net Current Assets		494.567	384.800	575.637

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		1111.972	1024.338	940.970

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2131.702	1110.332	909.180
		Other Income	18.142	5.987	9.034
		TOTAL (A)	2149.844	1116.319	918.214

Less	EXPENSES
		Consumption materials changes inventories	1432.793	805.345
		Manufacturing service costs	36.709	15.153
		Employee related expenses	159.726	88.331
		Administrative selling other expenses	162.609	82.399
		TOTAL (B)	1791.837	991.228	807.074

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		358.007	125.091	111.140

Less	FINANCIAL EXPENSES (D)		0.258	0.591	6.040

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		357.750	124.500	105.100

Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.771	15.572	15.697

	PROFIT BEFORE TAX (E-F) (G)		340.979	108.928	89.403

Less	TAX (H)		109.242	36.077	30.259

	PROFIT AFTER TAX (G-H) (I)		231.737	72.851	59.144

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		857.832	806.660	763.296

Less	APPROPRIATIONS
	Provision for Divided on equity shares			12.160	8.360
	Corporate Dividend on Tax		52.041	2.019	1.421
	Transfer to General Reserve			7.500	6.000
	BALANCE CARRIED TO THE B/S		1037.528	857.832	806.659

	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	13.330	12.295	21.834
	TOTAL EARNINGS		13.330	12.295	21.834

	IMPORTS
		Raw Materials	NA	81.273	106.526
	TOTAL IMPORTS		NA	81.273	106.526

	Earnings Per Share (Rs.)		3368.27	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.78	6.53	0.10

Net Profit Margin (PBT/Sales)	(%)	15.99	9.81	9.83

Return on Total Assets (PBT/Total Assets}	(%)	21.73	9.75	8.14

Return on Investment (ROI) (PBT/Networth)		0.33	0.11	0.09

Debt Equity Ratio (Total Liability/Networth)		0.74	0.43	0.23

Current Ratio (Current Asset/Current Liability)		1.70	1.98	4.25

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	Yes
Payment Terms	No
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	Yes

FINANCIAL RESULTS:

During the year , the Company achieved the all time highest ever turnover and production of Rs. 2123.600 Millions and Rs. 2185.300 Millions respectively, and registered a growth of 92 % in Turnover, and 132 % in production, as compared to the previous year’s turnover/production of Rs. 1106.000 Millions /Rs. 942.400 Millions. The profit before tax for the year stood at Rs. 341.000 Millions, as against the previous year’s figure of Rs. 108.900 Millions. In view of the manufacturing industry looking up, the Production and Turnover of the Company were the highest ever in the history of the Company. The order inflow for the financial year 2010-11 was almost double of the previous year. The Company hopes that the improvement in the situation will continue and the Company would do much better in the next financial year. The Company has made ambitious plans to produce and dispatch about 1200 machines in the financial year 2011-12. During the year , Company has sold 752 machines consisting of 42 Horizontal Machining Centres and 710 Vertical Machining Centres.

FORM 8

Corporate identity number of the company	U85110KA1994PLC015321
Name of the company	ACE MANUFACTURING SYSTEMS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.467-469, 12^th Cross, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India Email: helpdesk@amslindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80038464
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	Karnataka Bank Limited, Kasturba Road, Bangalore – 560001, Karnataka, India Email: blr.kb@ktkbank.com
Nature of instrument creating charge	Hypothecation Agreement Dated 29.02.2012
Date of instrument Creating the charge	29.02.2012
Amount secured by the charge	Rs.45.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest OD: BR + 3% Margin OD: 25% on stocks and book debts of not more than 120 days Extent and operation of the charge up to 21.10.2012 or till the closure of the entire loan proceeds
Short particulars of the property charged (Including location of the property)	Hypothecation of Raw Materials, Stock In Process, Semi Finished Goods, Finished Goods, Stores and Spares, Packing Material On Paripassu Basis With Canara Bank Stored at no. a-153 and a-154, Survey No. ii c Main Road, ii Stage, Peenya Industrial Estate, Bangalore Belonging To The Company. Assignment of Books Debts of The Company Which Are Not More Than 120 Days Older. First Charge on Fixed Assets of The Company on paripassu basis with canara bank as under: hypothecation of furniture and fixtures, plant and machinery and miscellaneous fixed assets stored AT NO. A-153 and A-154, Survey No. II C Main Road, II Stage, Peenya Industrial Estate, Bangalore Belonging To The Company.
Date of last modification prior to the present modification	29.09.2007
Particulars of the present modification	Renewal of overdraft facility with enhanced limit from Rs. 34.000 Millions to Rs. 35.000 Millions Renewal of ILC/ FLC (DA/DP)/ bank guarantee facility with enhanced limit from Rs. 55 Millions to Rs.10.000 Millions FDBP/ FUDBP (LC) facility of Rs.10.000 Millions stands withdrawn. hence the overall limit is revised from Rs.49.500 Millions To Rs. 45.000 Millions All other conditions remains the same.

Fixed Assets:

· Plant and Machinery

· Furniture and Fixtures

· Building

· Motor Vehicle

AS PER WEB SITE DETAILS

Profile

Subject is one of the largest CNC machine tool builders in India today. The company has expertise in manufacturing of CNC vertical machining centers, CNC horizontal machining centers and in providing manufacturing solutions centered a round these products. The company was started in the year 1994 and has been able to install over 5000 machines locally and globally in total ever since.

AMS is a part of the Ace Micromatic Group which is the largest machine tool group in the country with a presence in many parts of world. The group specializes in the manufacturing CNC Turning Centers, CNC Grinding machines, CNC Machining Centers, and Automation equipment. The group also specializes in the manufacturing of components for diverse sectors namely, Automotive, Aerospace, Medical, Die and Mould, Railways etc. The strength of the group is the rich engineering experience among its leaders who are the pioneers in the development of many technologically advanced products. A healthy synergy among the companies has facilitated cross learning and rapid growth of the group to be the front runners in machine tool development.

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.55.65
UK Pound	1	Rs.88.10
Euro	1	Rs.69.84

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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.

MIRA INFORM REPORT

532.475

274.964

69.144

182.081

145.696

1204.360

381.401

142.181

186.211

709.793

494.567

Unit