MIRA INFORM REPORT

Report Date :

01.09.2012

IDENTIFICATION DETAILS

Name :	JOHN DISTILLERIES PRIVATE LIMITED (w.e.f. 01.12.2010)
Formerly Known As :	JOHN DISTILLERIES LIMITED
Registered Office :	110, Panthrapalya, Mysore Road, Bangalore – 560039, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.09.1996
Com. Reg. No.:	08-021158
Capital Investment / Paid-up Capital :	Rs.728.124 Millions
CIN No.: [Company Identification No.]	U51228KA1996PLC021158
TAN No.: [Tax Deduction & Collection Account No.]	BLRJ00513C
PAN No.: [Permanent Account No.]	AAACJ4322P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Food Beverages
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 3500000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears slight dip in the income during 2011. Financial strength of the company is still improving. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealing with some 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	CARF
Rating	Short term = A4
Rating Explanation	High risk of default
Date	March, 2012

Rating Agency Name	CARF
Rating	Long term = BB+
Rating Explanation	Moderate risk of default
Date	March, 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 :	110, Panthrapalya, Mysore Road, Bangalore – 560039, Karnataka, India
Tel. No.:	91-80-28600630
Fax No.:	91-80-28600489
E-Mail :	madhusudhan@jdl.in
Website :	http://www.jdl.in
Mumbai Office :	215 Atrium, 520 C,  Andheri Kurla Road, Andheri East Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-67488700 / 01
Fax No.:	91-22-67488777

DIRECTORS

As on 08.09.2011

Name :	Mr. Paul Plathotathil John
Designation :	Whole-Time Director
Address :	17/5, Brunton Road, Bangalore – 560025, Karnataka, India
Date of Birth/Age :	30.09.1965
Date of Appointment :	01.03.2006
DIN No.:	00012851
Name :	Mr. Krishnan Neelakantan Namboodiri
Designation :	Managing Director
Address :	479-C, 15th Loop Road, Rajeswari Nagar, Bangalore – 560098, Karnataka, India
Date of Birth/Age :	21.08.1952
Date of Appointment :	04.04.2003
DIN No.:	00515059
Name :	Mr. Sridhar Pongur
Designation :	Whole-Time Director and Chief Operation Officer
Address :	No. 97, 60 Feet Road, Ideal Home Township, Rajarajeswari Nagar, Bangalore – 560098, Karnataka, India
Date of Birth/Age :	10.06.1965
Date of Appointment :	10.04.2008
DIN No.:	02154497
Name :	Mr. Ranjit Jayantilal Shah
Designation :	Nominee Director
Address :	20, 2nd Floor, C.C.I. Chambers, Dinshaw Wachha Road, Mumbai, 400020, Maharashtra, India
Date of Birth/Age :	30.05.1958
Date of Appointment :	18.03.2011
DIN No.:	00088405
Name :	Mr. Joven Francis Vellara
Designation :	Director
Address :	No. 41, Richmond Road, Bangalore – 560025, Karnataka, India
Date of Birth/Age :	16.11.1695
Date of Appointment :	01.03.2005
DIN No.:	00515085

KEY EXECUTIVES

Name :	Mr. Madhusudhan Papakannu
Designation :	Secretary
Address :	No. 18, 18th Cross, 20th 'B' Main, Kaveri Road, Sms Layout, Bangalore – 560078, Karnataka, India
Date of Birth/Age :	07.05.1976
Date of Appointment :	07.08.2008
PAN No.:	BEVPS3761L
Name :	Mr. Rathnakar Shetty.B
Designation :	Vice President - Human Resources
Name :	Mr. Raj Kumar Choudhary
Designation :	Director - Exports and Defense Business
Name :	Mr. R.G Sharma
Designation :	Head- Manufacturing, Quality Assurance and Innovation
Name :	Mr. Ganesh Narayanswami
Designation :	Chief Purchasing Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 08.09.2011

Names of Shareholders (Equity Shares)	No. of Shares
Paul Plathotathil John No. 17/5, Brunton Road, Bangalore – 560025, Karnataka, India	22812832
Krishnan Neelakantan Namboodiri 479-C, 15th Cross, 'A' Loop Road, Rajeswari Nagar, Bangalore – 560098, Karnataka, India	1
Gpe (India) Limited, Mauritius #5, Rogers House, President John Kennedy Street, Port Louis, Mauritius	80
Gaja Trustee Company Private Limited, India G-133, Sarita Vihar, New Delhi – 110044, India	20
Total	22812933

Names of Shareholders (Preference Shares)	No. of Shares
Gpe (India) Limited, Mauritius #5, Rogers House, President John Kennedy Street, Port Louis, Mauritius	388050
Gaja Trustee Company Private Limited, India G-133, Sarita Vihar, New Delhi – 110044, India	111945
Total	499995

As on 08.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Food Beverages.

Products :

Description of product or services	ITC number of product
Indian Manufactured Foreign Liquor	220810
Malt	220810

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

· ICICI Bank Limited

· HDFC Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	(A)71.421	65.127
Rupee term loans financial institutions secured	(B)348.200	341.000
Loans taken for vehicles secured	(C)43.948	24.069
Other debt secured	740.272	845.621
Total	1203.841	1275.817
(A) Amount repayable within a period of 12 months Rs 42.519 Millions (B) Amount repayable within a period of 12 months Rs 62.800 Millions (C) Amount repayable within a period of 12 months Rs 13.424 Millions (Rs. In Millions)
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Other debt unsecured	122.683	408.271
Total	122.683	408.271
(A) Karnataka and Andhra Pradesh State Beverages Corporations - Rs.122.683 Millions (B) Karnataka and Andhra Pradesh State Beverages Corporations - Rs.378.367 Millions bank over drafts - Rs.29.904 Millions

Banking Relations :	--
Financial Institutions:	· Sicom Limited, Nirmal Building, 1st Floor, Nariman Point, Mumbai - 400021, Maharashtra, India · Sicom Limited, Solitaire Corporate Park, Building No. 4, Guru, Hargovindji Road, Andheri (East), Mumbai - 400093, Maharashtra, India
Auditors :
Name :	B S R R and Company Chartered Accountants
Address :	Maruthi InfoTech Centre, 11 12/1, Inner Ring Road, Bangalore - 560071, Karnataka, India
PAN.:	AAKFB1884H
Subsidiaries Company :	· Chitali Distillery Limited (merged with effect from 1 October 2010) CIN No. : U15130PN2003PLC134014 · John Metal Closures and Allied Products Private Limited (merged with effect from 1 October 2010) · Chateau De Banyan Private Limited (merged with effect from 1 October 2010)
Fellow Subsidiaries :	· Bloomingdale Hotels Private Limited · Kumarakom Lake Resort Private Limited CIN No. : U55102KL1997PTC011822 · Paul Resorts and Hotels Private Limited CIN No. : U55101KA2003PTC032853

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 Millions
499995	Preference Shares	Rs. 1000/- each	Rs.499.995 Millions
	Total		Rs.799.995 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22812933	Equity Shares	Rs.10/- each	Rs.228.129 Millions
499995	Preference Shares	Rs. 1000/- each	Rs.499.995 Millions
	Total		Rs.728.124 Millions

(A) Of the equity shares of Rs.10 each comprised in the subscribed and paid up capital of the Company, (a) 22,812,832 (previous year: 22,703,303) equity shares of Rs 10 each are held by Paul P John. (b) The Company had issued 2,050,000 equity shares of Rs 10 each by way of private placement on preferential basis in the earlier year. (c) The Company had issued 1,754,833 bonus shares by capitalizing the general reserve amounting to Rs 17,548,330 in the earlier year.

(B) Preference shares: (i) The Company has issued the following preference shares during the year - 388,050, 0.001% Compulsorily Convertible Preference Shares (CCPS) of Rs 10 each - 111,945, 0.001% Optionally Convertible Preference Shares (OCPS) of Rs 10 each (ii) Dividend rights As per the shareholders agreement in each financial year, each holder of the CCPS/OCPS shall be entitled to a cumulative preferential dividend equal to 0.001 % per annum of the face value of such CCPS/OCPS. In any given financial year, the Company shall not declare any dividend or other distribution to its holders of equity shares unless it has first declared and paid the preferential dividend for such financial year to the holders of the CCPS/OCPS. If the Company has not declared preferential dividend in any financial year, holders of CCPS shall (notwithstanding that the CCPS/OCPS may have been redeemed or converted) have the right to receive the accumulated preferential dividend in the succeeding financial years. (iii) Voting rights The holder of the CCPS/OCPS shall be entitled to voting rights only in respect of those resolutions placed before the Company which directly affect the rights attached to the CCPS/OCPS. Provided however, the holder of the CCPS/OCPS shall be entitled to vote on every resolution placed before the Company at any meeting, if the dividend due has remained unpaid for an aggregate period of not less than 2 (two) years preceding the date of commencement of the meeting. (iv) Conversion of preference shares As per the shareholders agreement, notwithstanding anything to the contrary contained in the agreement, the holder of the CCPS/OCPS shall have a right to convert the CCPS/OCPS held in a single tranche or in multiple tranches as per the terms hereof, upon the occurrence certain events. The price at which conversion will take place will depend upon the option availed by the holder.

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		728.124	228.128	190.080
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		165.812	236.010	244.825
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		893.936	464.138	434.905
LOAN FUNDS
1] Secured Loans		1203.841	1275.817	1008.076
2] Unsecured Loans		122.683	408.271	751.141
TOTAL BORROWING		1326.524	1684.088	1759.217
DEFERRED TAX LIABILITIES		8.999	(42.601)	11.796
TOTAL		2229.459	2105.625	2205.918
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1125.195	606.949	461.703
Capital work-in-progress		208.253	2.219	158.806
INVESTMENT		50.899	287.632	287.633
DEFERREX TAX ASSETS		0.000	0.000	59.131
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	554.265	544.357	329.157
	Sundry Debtors	392.576	639.954	700.566
	Cash & Bank Balances	75.555	22.959	27.128
	Other Current Assets	100.538	224.970	0.000
	Loans & Advances	317.848	411.175	550.826
Total Current Assets		1440.782	1843.415	1607.677
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	312.958	272.773	366.947
	Other Current Liabilities	229.260	359.475
	Provisions	53.452	2.342	2.085
Total Current Liabilities		595.670	634.590	369.032
Net Current Assets		845.112	1208.825	1238.645
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2229.459	2105.625	2205.918

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	4459.000	4516.000
	Other Income
	TOTAL	4459.000	4516.000
EXPENSES
	Office Expenses
	Administrative Expenses	4119.000	4211.000
	Advertising Expenses
	TOTAL	4119.000	4211.000
				NA
PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		340.000	305.000
DEPRECIATION AND FINANCIAL CHARGES		312.000	291.500
PROFIT BEFORE TAX		27.000	13.500
TAX		5.000	4.500
PROFIT AFTER TAX		22.000	9.000
EARNINGS IN FOREIGN CURRENCY		110.331	67.130	NA
Earnings Per Share (Rs.)		0.94	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.49	0.20	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.05	0.55	NA
Return on Investment (ROI) (PBT/Networth)		0.03	0.03	NA
Debt Equity Ratio (Total Liability/Networth)		2.15	5.00	4.89
Current Ratio (Current Asset/Current Liability)		2.42	2.90	4.36

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 two years	Yes
12]	Profitability for last two 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

BACKGROUND

Subject was incorporated on 19 September 1996. The registered office of the Company is located at Bangalore, Karnataka, India. The Company is engaged in the business of distillation, packaging, distribution, marketing and sale of Indian liquor. On 1 December 2010, the Company changed its status from a public limited company to a private limited company and has changed its name from John Distilleries Limited to Subject.

PERFORMANCE OF THE COMPANY:

During the year the Company’s strategy was defensive. Reduced prices of ENA in the market led to fragmented competition in the price segment below the one in which their flagship brand Original Choice operates. The focus was to maintain market share in a tough competitive environment, keeping their loyal customer base intact. The Company was able to maintain market share in key markets, and is preparing new brands and strategies to implement once rising ENA prices make it financially unviable for their smaller and fragmented competitors to compete with their economies of scale. .

The rate of Extra Neutral Alcohol (ENA) which constitutes 45% of cost of raw materials was favorable this year due to a good sugar crop this year. The average cost of ENA last year was around Rs.35.97, and this came down to Rs. 31.87 per liter this year. The Company also stepped up its bottle recycling program, enabling significant cost savings.

The Company’s Project at Chitali is nearing completion. The unit is yet to commence sales, but operational costs have already begun to accrue, resulting in higher Finance Cost and Overheads, lowering profitability temporarily.

AMALGAMATION OF CHITALI DISTILLERY LIMITED, CHATEAU DE BANYAN LIMITED AND JOHN METAL CLOSURES & ALLIED PRODUCTS PRIVATE LIMITED WITH THE COMPANY.

During the year, the Scheme of Amalgamation for the merger of M/s. Chitali Distilleries Limited, Chateau De Banyan Limited and John Metal Closures and Allied Products Private Limited, (Wholly owned subsidiary companies of the Company) with the Company was approved by the Honourable High Court of Karnataka and the Honourable Bombay High Court on 28^th January 2011 and final Decree to that effect may come from the High Court of Karnataka at any time.

FUTURE PROSPECTS:

The spirits industry in India has a promising future in view of the favourable market scenario, the change in life style of younger generation and growing income level. This has given a major fillip to this industry. The company plans to launch few premium line brands in the premium segment shortly strategically when market conditions are ripe.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2011	31.03.2010
i) Bank guarantees	--	5.000

ii) Holders of CCPS/OCPS are eligible for cumulative dividend for cumulative of 0.001%. The CCPS/OCPS were issued on 18 March 2011 and accordingly the dividend for the year ended 31 March 2011 amounts to Rs 178.

iii) Contingent liabilities not provided for :

a) ABD Private Limited (formerly known as BDA Limited) ( a competitor of the Company) has sought a stay order on the trademark registration of “ORIGINAL CHOICE”, and challenged the registration by filing two separate proceedings (one appeal and one rectification) before Intellectual Property Appellate Board (IPAB). The appeal was dismissed by IPAB and subsequently by Madras High Court. An Special Leave Petition (SLP) against the said orders is pending before Supreme Court. The rectification proceeding is pending before IPAB awaiting supreme court decision in SLP.

In parallel proceedings, ABD Private Limited (formerly known as BDA Limited)filed objection before West Bengal Excise Commissioner against the Company's application for label registration, which was allowed by the Commissioner. On appeal, Principal Secretary set aside the Commissioner order and approved the label. The appeal filed by ABD Private Limited (formerly known as BDA Limited) against the principal secretary order has been dismissed by West Bengal Taxation Tribunal(WBTT). The appeal against the WBTT order is pending before Calcutta High Court.

In another proceedings, ABD Private Limited (formerly known as BDA Limited), the owners of the brand 'Gorbatschow Vodka' has filed the case against the Company for copy of bottle design. The Company has lost the case in Bombay High Court. The Company is in process of filing compromise petition with the Bombay High Court. The impact of the above cases cannot be quantified.

b) One of the vendor of Chitali Distillery Limited (CDL) (merged with the Company with effect from 1 October 2010) had filed a case for Rs 3.108 Millions for wrong deductions made from vendor bills by CDL in 2008. The case is pending for hearing before Shrirampur Court.

c) The Excise Range officer had raised a demand of Rs 5.412 Millions on the Company, by disallowing CENVAT credit not claimed on duplicate invoices. The Credit was subsequently reversed by the Company. However, the a penalty of Rs 0.500 Million was levied on the Company. The Company has filed a case in Bombay High Court, challenging the levy of penalty.

d) The Sale tax authorities has raised a demand of Rs 3,083 Millions for consumption of rectified spirit for manufacture and bottling of country liquor on behalf of one of the customers. The Company has paid a sum of Rs 1.500 Millions under protest against the demand raised. The case pending for hearing at Sales Tax Appellate Tribunal, Mumbai.

e) The Excise authorities has denied the cenvat credit amounting to Rs. 1.817 Millions paid as purchase tax on molasses, the matter is pending with CESTAT for hearing.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51228KA1996PTC021158
Name of the company	JOHN DISTILLERIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	110, Panthrapalya, Mysore Road, Bangalore – 560039, Karnataka madhusudhan@jdl.in
This form is for	Creation of charge
Type of charge	· Immovable property · Movable property (not being pledge)
Particular of charge holder	Sicom Limited, Solitaire Corporate Park, Building No. 4, Guru, Hargovindji Road, Andheri (East), Mumbai - 400093, Maharashtra, India snavare@sicomindia.com
Nature of instrument creating charge	Deed of Hypothecation dated 20.03.2012 MOE dated 20.03.2012
Date of instrument Creating the charge	20.03.2012
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest shall be re-set under every cycle anf for the 1st year shall be @ 2.25% p.a above SICOM`s MTR which at present is @14.50% p.a payable monthly, in case of default additional interest@4% p.a. Terms of Repayment The loan shall be repayable in a single installment at the end of 12 months from the date of first disbursement under each cycle. Extent and Operation of the charge Till the repayment of loan
Short particulars of the property or asset(s) charged (including complete address and location of the property)	all moveable of the Company both present and future situate at JDPL, Rahata T.Q. Chitali Village, Ahmednagar District Maharashtra, India and immovable properties situated jalagaon village bearing Gat Nos. 96,89B,93B,94A,95A,136A,38/1, and immovable properties situated at Chitali village bearing Gat Nos. 160A,161,168,169,170,172,173,174,175,176,182, 183,184,398,399,400,420,421,422,423,424,426,425,427 measuring 226.36 acres.

FIXED ASSETS

· Free Hold Land

· Factory Building

· Plant Machinery

· Office Equipments

· Factory Equipments

· Computer Equipments

· Furniture Fixtures

· Vehicles

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 records 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.55.72
UK Pound	1	Rs.87.95
Euro	1	Rs.69.66

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.