MIRA INFORM REPORT

Report Date :

22.09.2012

BUSINESS INFORMATION REPORT

1. Summary Information

		Country	India
Company Name	FORWARD SHOES (INDIA) PRIVATE LIMITED	Principal Name 1	Mr. Asgar Ali Dhala
Status	Moderate	Principal Name 2	Mr. Muhamed Yavar Dhala
		Registration #	18-026984
Street Address	37 Raja Muthiah Road, Periamet, Chennai - 600 003, Tamilnadu, India
Established Date	08.03.1994	SIC Code	--
Telephone#	91-44-25385658	Business Style 1	Manufacturer
Fax #	91-44-25366187	Business Style 2	Exporter
Homepage	www.forwardshoes.com	Product Name 1	Full Shoes
# of employees	Not Available	Product Name 2	Shoes Upper
Paid up capital	Rs.145,850,000/-	Product Name 3	--
Shareholders	Directors or relatives of directors- 100%	Banking	State Bank of India
Public Limited Corp.	NO	Business Period	18 Years
IPO	NO	International Ins.	--
Public Enterprise	NO	Rating	B (27)
Related Company
Relation	Country	Company Name	CEO
--	--	--	--
Note	--

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	370,998,000	Current Liabilities	206,252,000
Inventories	251,217,000	Long-term Liabilities	520,445,000
Fixed Assets	549,017,000	Other Liabilities	0
Deferred Assets	0	Total Liabilities	726,697,000
Invest& other Assets	339,000	Retained Earnings	298,074,000
		Net Worth	444,874,000
Total Assets	1,171,571,000	Total Liab. & Equity	1,171,571,000
Total Assets (Previous Year)	989,802,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	1,038,325,000	Net Profit	(8,190,000)
Sales(Previous yr)	680,669,000	Net Profit(Prev.yr)	834,000

IDENTIFICATION DETAILS

Name :	FORWARD SHOES (INDIA) PRIVATE LIMITED
Registered Office :	37, Raja Muthiah Road, Periamet, Chennai - 600003, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.03.1994
Com. Reg. No.:	18-026984
Capital Investment / Paid-up Capital :	Rs. 145.850 Millions
CIN No.: [Company Identification No.]	U19201TN1994PTC026984
PAN No.: [Permanent Account No.]	AAACF1138M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Full Shoes, Shoes Upper.
No. of Employees :	Not Available

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 1800000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears loss in the current year. However, networth of the company appears to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. 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	ICRA
Rating	Long term bank facilities : (ICRA) BB
Rating Explanation	Having moderate risk default regarding timely servicing of financial obligation.
Date	November 2010

Rating Agency Name	ICRA
Rating	Short term bank facilities : (ICRA) A4
Rating Explanation	Having minimal degree of safety regarding timely payment of financial obligation. It carry very high credit risk and are susceptible to default.
Date	November 2010

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 / Head office :	37 Raja Muthiah Road, Periamet, Chennai - 600003, Tamilnadu, India.
Tel. No.:	91-44-25385658 / 25615034/ 25615906
Fax No.:	91-44-25615187
E-Mail :	forward@vsnl.com forwardho@hoforwardgroup.in yavar@giasmd01.vsnl.net.in
Website:	www.forwardshoes.com
Area :	5000 Sq. ft.
Location:	Owned
Factory :	No. 7. MGR Nedunchalai, Nagalkeni, Chrompet, Chennai – 600044, Tamilnadu, India.
Tel. No.:	91-44-22510530 - 37
Fax No.:	91-44-22388988
E-mail :	forward@forwadgroup.in
Area :	20,000 sq. fts.
Location:	Owned
Godown :	8 - Anna Salai, Pammal, Chennai-600044, Tamilnadu, India
Tel. No.:	91-44-22210378
Fax No.:	91-44-22369008/25366182
Area:	5000 Sq. ft. (approximately)
Location:	Rented
Head Office :	50, Raja Muthiah Road, Periamet, Chennai - 600003, Tamilnadu, India.
Tel. No.:	91-44-25615658 / 25615034 / 25615906
Fax No.:	91-44-25615187
E-Mail :	forwardho@forwardgroup.in

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Asgar Dhala Ali

Designation :

Chairman cum Managing director

Address :

No.19, Sivaganga Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

Date of Birth/Age :

03.06.1939

Date of Appointment :

08.03.1994

DIN No.:

00642067

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	U19201TN1994PTC026984	FORWARD SHOES (INDIA) PRIVATE LIMITED	Director	09/02/2012	08/03/1994	-	Active	NO
2	U19119TN2004PTC052548	CONCERIA VIRGINIA CHENNAI PRIVATE LIMITED	Director	17/02/2004	17/02/2004	-	Active	NO
3	U19201TN2006PTC061171	STILFLEX FOOTBEDS CHENNAI PRIVATE LIMITED	Director	21/09/2006	21/09/2006	10/04/2008	Active	NO
4	U74999TN1910NPL002343	SOUTHERN INDIA CHAMBER OF COMMERCE AND INDUSTRY	Director	17/09/2007	17/09/2007	-	Active	NO
5	U19201TN2008PLC066386	PAVERS ENGLAND LIMITED	Director	11/02/2008	11/02/2008	10/04/2010	Active	NO

Name :

Mr. Muhamad Dhala Yavar

Designation :

Director

Address :

No.4/32, Casurina Drive, Neelangarai, Chennai – 600041, Tamilnadu, India.

Date of Birth/Age :

26.09.1967

Date of Appointment :

08.03.1994

DIN No.:

00640494

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	U19201TN1994PTC026984	FORWARD SHOES (INDIA) PRIVATE LIMITED	Managing director	09/02/2012	08/03/1994	-	Active	NO
2	U19119TN2004PTC052548	CONCERIA VIRGINIA CHENNAI PRIVATE LIMITED	Managing director	17/02/2004	17/02/2004	-	Active	NO
3	U91110TN2004PTC053638	CONSORTIUM OF SHOE MANUFACTURERS PRIVATE LIMITED	Director	05/07/2004	05/07/2004	-	Active	NO
4	U18209TN1989PLC017931	PALLAVARAM TANNERS INDUSTRIAL EFFLUENT TREATMENT COMPANY LIMITED	Director	22/05/2006	22/05/2006	-	Active	NO
5	U19201TN2006PTC061171	STILFLEX FOOTBEDS CHENNAI PRIVATE LIMITED	Managing director	21/09/2006	21/09/2006	10/04/2008	Active	NO
6	U19201TN2008PLC066386	PAVERS ENGLAND LIMITED	Director	20/02/2010	11/02/2008	13/12/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Asgar Ali Dhala	8610000
Muhamed Yavar Dhala	4795000
Zubeida Ali Dhala	1120000
Rehane Yavar Dhala	60000
Total	14585000

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Full Shoes, Shoes Upper.

Products :

• Casual/ Dress Shoes (Gents)
• Leather Shoe Uppers
• Casual/ Dress Shoes (Gents)
• Leather Shoe Uppers

ITC Code	Product Descriptions
64035112	Full Shoe

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Leather and International Branch, MVJ Towers, 177/1, P H Road, Chennai - 600010, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	138.952	169.909
Working capital loans banks secured	377.918	271.464
Total	516.870	441.373
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Loans Directors unsecured	3.575	2.536
Total	3.575	2.536

Banking Relations :	--
Auditors :
Name :	U.M. Kalilullah and Company Chartered Accountants
Address :	15, 12th Cross Street, Indira Nagar, Chennai – 600020, Tamilnadu, India
Tel. No.:	91-44-24913533/ 24912571
Income-tax PAN of auditor or auditor's firm :	AABFU5181F

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14,585,000	Equity Share	Rs.10/- each	Rs. 145.850 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		145.850	75.850	75.850
2] Share Application Money		0.950	0.950	0.950
3] Reserves & Surplus		298.074	306.556	306.344
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		444.874	383.356	383.144
LOAN FUNDS
1] Secured Loans		516.870	441.373	359.417
2] Unsecured Loans		3.575	2.536	2.536
TOTAL BORROWING		520.445	443.909	361.953
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		965.319	827.265	745.097
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		549.017	575.625	607.063
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.339	0.339	0.339
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	251.217	0.000	0.000
	Sundry Debtors	248.954	0.000	0.000
	Cash & Bank Balances	0.226	1.998	0.000
	Other Current Assets	0.000	308.345	285.794
	Loans & Advances	121.818	103.495	71.184
Total Current Assets		622.215	413.838	356.978
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	180.698	145.043	207.484
	Other Current Liabilities	25.554	0.607	0.393
	Provisions	0.000	16.887	11.406
Total Current Liabilities		206.252	162.537	219.283
Net Current Assets		415.963	251.301	137.695
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		965.319	827.265	745.097

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1038.325	680.669	664.029
		Other Income	76.180	83.356	81.173
		TOTAL (A)	1114.505	764.025	745.202
	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	1118.689	675.782	659.178
Less	PROFIT/ LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		73.885	71.647	73.500
Less	FINANCIAL EXPENSES (D)		50.792	35.968	34.377
	PROFIT/ LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.093	35.679	39.123
Less/ Add	DEPRECIATION/ AMORTISATION (F)		30.533	34.488	37.728
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		(7.440)	1.191	0.861
Less	TAX (H)		0.750	0.357	0.262
	PROFIT/ LOSS AFTER TAX (G-H) (I)		(8.190)	0.834	0.599
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	751.347	71.647	73.500
	Earnings/ Loss Per Share (Rs.)		0.56	0.11	0.08

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(0.73)	0.11	0.08
Net Profit Margin (PBT/Sales)	(%)	(0.72)	0.17	0.13
Return on Total Assets (PBT/Total Assets}	(%)	(0.64)	0.12	0.09
Return on Investment (ROI) (PBT/Networth)		0.02	0.00	0.00
Debt Equity Ratio (Total Liability/Networth)		1.63	1.58	1.52
Current Ratio (Current Asset/Current Liability)		3.02	2.55	1.63

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	No
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

GENERAL PERFORMANCE:

Leather Industry particularly in Footwear business, during the last financial year the global Scenario was a encouraging one though the recesses ion prevailed world wide. The Global market had been very competitive and they faced severe competition from some of their neighboring countries. Their company by its strong commitment to focus on quality unable to maintain goodwill of their buyers and in the process they were able to achieve a turnover of Rs. 1038.325 Millions registering an increase of 52.50% when compared to Rs. 680.669 Millions, increase of about 45% and 111.90% in the Export and Domestic turnover respectively over the previous year. In the existing scenario this is a moderate performance.

PROSPECTS:

During the first two quarters of the current year the global Market continued to be in down trend as envisaged and this has affected their company order position. However the third quarter of the year is quiet encouraging and they are started getting more orders. The results of it will come to know during the fourth quarter of this current year. Their participation in international fairs have been fruitful in the previous year and this year they found more and more buyers taking interest in their products.

The business interest shown by the buyers during the current year has also been very encouraging and they hope to get new and more lucrative orders in the immediate future.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U19201TN1994PTC026984
Name of the company	FORWARD SHOES (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	37 Raja Muthiah Road, Periamet, Chennai - 600 003, Tamil Nadu E-Mail ID : forward@vsnl.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90290344
Type of charge	Immovable property Book debts Movable property (not being pledge) Others (Hypothecation)
Particular of charge holder	State Bank of India, Leather and International Branch, MVJ Towers, 177/1, P. H. Road, Kilpauk, Chennai – 600010, Tamil Nadu, India E-Mail ID : dgm.07024@sbi.co.in
Nature of instrument creating charge	1. Supplemental Agreement of Loan for Increase in the overall limit. 2) Supplemental Agreement of Hypothecation of Goods and Assets for Increase in the Overall limit. 3) Letter regarding the grant individual limits within the overall limit. 4) Hypothecation Letter in respect of Machines accepted as collateral security for advances. 5) Omnibus Counter Guarantee. 6) EM Letters
Date of instrument Creating the charge	29.01.2011
Amount secured by the charge	Rs. 529.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of repayment As per Agreement Margin Raw Materials : 10% Stock-in-process : 10% Finished Goods : 10% LC / BG : 10% Extent and operation of the charge Exclusive first charge on the current assets, movable assets and immovable properties of the company to the extent of Rs. 529.100 Millions. Others Personal Guarantee of all the directors of the company. 1) Mr. Asgar Ali Dhala 2) Mr. Md Yavar Dhala 3) Mrs. Zubieda Asgar Ali Dhala 4) Mrs. Rehane Yavar Dhala
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary Security : EPC : Hypothecation charge over the entire current assets, which include Raw Materials, Stock-in-process, Finished Goods, Consumables, Stores, Spares, Receivables etc., FDB (Non-LC) and FDB (LC) : Documents of title to goods and extension of charge over the entire current assets. LC : Documents of title to goods and extension of charge over the entire current assets. BG : Extension of charge over the entire current assets. Term Loan (i) : Hypothecation of fixed assets purchased out of our bank finance. (ii) : Lead measuring 9.23 acres located at R.S.No.181/1 in Pammal village and the building thereon. Collateral Security:- (i) EM over Leasehold rights of Forward Shoes (India) Private Limited on the factory land admeasuring 2.81 acres (122403 sq ft) at S.No.96/2, situated at Pammal Village, Door No.2, MGR Nedunchalai,Nagelkeni, hormepet, Chennai along with the building thereon. (ii) (ii) Extension of EM over the Land Measuring 9.23 acres at R.S.No.181/1, Part along with building thereon at Door No.7, Adam Nagar Main Road, Pammal, Chennai - 600 044, as security to secure the limit of Rs.529.100 Millions Hypothecation of Movable fixed assets belonging to Forward Shoes (India) Private Limited, present and future.
Date of instrument modifying the charge	25.01.2007
Particulars of the present modification	The various credit facilities enjoyed by the company now has been enhanced to Rs.529.100 Millions.

FIXED ASSETS:

· Factory Building

· Plant and Machinery and Generators

· Furniture and Fittings

· Vehicle

· Office Equipments

· Computers

· Air conditioners

· New Project

WEBSITE DETAILS:

GROUP PROFILE

Forward group – a vertically integrated group of companies comprising of Tanneries, Shoe upper and Shoe manufacturing plants and a Sole manufacturing unit, is a professionally managed group with inherent modernity, technological excellence and sound ethics.

From modest beginnings as a EI tannery, decades of hard work has expanded its operations to master the art of tanning, designing and shoe making in pace with evolving trends – and the group is registering an impressive growth year after year.

Elegant range of cow and goat leathers, shoes of impeccable quality and finesse and soles of international quality, have led the company win several awards and merits, while the company constantly endeavors to exceed the customer’s expectations.

All the tanneries are eco friendly and certified by LWG Environment Audit, UK.

Predominantly a men’s shoe manufacturer, the product range comprises of Men's Formal, Classic, Moccasins, Brogues and has an extended range of Casual shoes, and Semi Formal shoes – in flat lasted and Strobel construction.

A joint venture between Forward Group and Malaspina SPA Italy is to manufacture soles in India, with a state-of-the art plant

The company cares for the welfare of its employees and has various schemes in place for its 3500 employees and is also into a lot of community endeavors.

For a company that has crossed many milestones - the Forward Group is ever motivated to provide quality products and solutions every time to its discerning customers.

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] 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. 53.91
UK Pound	1	Rs. 87.60
Euro	1	Rs. 70.01

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--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

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.