MIRA INFORM REPORT

Report Date :

16.04.2013

IDENTIFICATION DETAILS

Name :	TRANSPEK-SILOX INDUSTRY LIMITED
Formerly Known As :	TRANSPEK METALS AND OXIDES LIMITED
Registered Office :	Kalali Road, Atladra, Vadodara – 390 012, Gujarat
Country :	India
Financials (as on) :	31.12.2008
Date of Incorporation :	29.03.1996
Com. Reg. No.:	04-29188
CIN No.: [Company Identification No.]	U28999GJ1996PLC029188
TAN No.: [Tax Deduction & Collection Account No.]	BRDT00555C
Legal Form :	A Closely held public limited liability company
Line of Business :	Manufacturer and Export of Zinc and Sulphur based Chemicals

RATING & COMMENTS

	MIRA’s Rating :			Ba (49)
RATING			STATUS		PROPOSED CREDIT LINE
41-55		Ba	Overall operation is considered normal. Capable to meet normal commitments.		Satisfactory

Maximum Credit Limit :	USD 5000000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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	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

INFORMATION PARTED BY

Name :	Mr. Bakul
Designation :	Ex – Finance
Date :	09.03.2010

LOCATIONS

Registered Office / Warehouse:	Kalali Road, Atladra, Vadodara – 390 012, Gujarat
Tel. No.:	91-265-2680401-2-3-4-5
Fax No.:	91-265-2680406 / 2680407 / 2680062
E-Mail :	dsmahajani@tsilbrd.com rajeevm@tsilbrd.com info@transpek-silox.com
Website :	www.transpek-silox.com
Location :	Owned
Factory :	Located at · Atladra · Ekalbara · Bhiwandi · 2 factory in Silvassa

DIRECTORS

Name :	Mr. Ashwin Champraj Shroff
Designation :	Chairman
Address :	B-15, Vasanta Theosophical Society, JUhu Road, Juhu, Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	22.01.1945
Date of Appointment :	18.01.2001
Name :	Mr. Paresh Manilal Saraiya
Designation :	Managing Director
Address :	18, Charotar Society, Old Padra Road, Vadodara – 390 020, Gujarat, India
Date of Birth/Age :	12.08.1953
Date of Appointment :	19.01.2001
Name :	Mr. Tigrane Mouchegh Djierdjian
Designation :	Director
Address :	26, Boulevard DV Tenao, Monaco, France
Date of Birth/Age :	02.09.1940
Date of Appointment :	19.01.2001
Name :	Mr. Antonio Angelo Di Nallo
Designation :	Director
Address :	75 Avenue De Gaulle, F 78600, Maisons Laffitte, France
Date of Birth/Age :	29.09.1948
Date of Appointment :	19.01.2001
Name :	Mr. Philippe Georges Renier
Designation :	Director
Address :	18, Rue Du Werihet, 4052, Beaufays, Belgium
Date of Birth/Age :	24.04.1960
Date of Appointment :	19.01.2001
Name :	Mr. Robert Alfred De Coster
Designation :	Director
Address :	8 La Clairiere, B-5190 Onoz Jemeppe Sur Sambre, Belgium
Date of Birth/Age :	01.10.1943
Date of Appointment :	19.09.2002
Name :	Mr. Lakshminarsimhachari Rajagopalan
Designation :	Director
Address :	A-3, Sahyog, Gorwa – Refinery Road, Vadodara – 390 016, Gujarat, India
Date of Birth/Age :	01.07.1937
Date of Appointment :	19.01.2001
Name :	Ms. Manjula A Chawala
Designation :	Alternate Director to Philippe Renier
Address :	E-3, Anandniketan, New Delhi – 110 002, India
Date of Birth/Age :	24.10.1964
Date of Appointment :	14.03.2002

KEY EXECUTIVES

Name :	Mr. Ashish Tiwari
Designation :	Manager
Name :	Mr. Bakul
Designation :	Ex – Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 19.03.2009)

Names of Shareholders	No. of Shares
Transpek Industry Limited	949313
L Rajagopalan	1
Shailesh K Solanki	1
Societe Industrielle Liegeoise Des Oxydes S.A. (Silox)	10044132
Tigrane Mouchegh Djierdjian	1
Antonio Angelo Di Nallo	1
Philippe Georges Renier	1
Excel Industries Limited	1067450
Total	12060900

Equity share breakup (percentage of total equity) (As on 30.06.2009):-

Category	Percentage
Foreign holdings (foreign institutional investor(s), Foreign companie(s), Foreign financial institution(s), Non resident Indian(s) or Overseas corporate bodies or others	83.28
Bodies corporate	16.72
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Export of Zinc and Sulphur based Chemicals

Products :

Product Description	ITC Code
Zinc Dust	7903.10
Zinc Oxide	2817.10
Sodium Hydro Sulphite	283110.01

Exports :

Products :

Zinc and Sulphur Chemicals

Countries :

Europe Uk, USA, Taiwan, Europe, Korea, Australia, Switzerland

Imports :

Products :

Raw Materials

Countries :

Spain, Europe

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS (As on 31.12.2008):-

Particulars	Unit	Installed Capacity	Actual Production
Sulphoxylate Products	MT	32700	25532
Zinc Based Products	MT	21500	21823

Notes

· Installed capacities are on an annual basis as certified by the Management and accepted by the auditors being a technical matter.

· Production quantities include captive consumption and production at jobworker’s site.

GENERAL INFORMATION

Customers :

· End Users

· Retailers

· Wholesalers

No. of Employees :

650

Bankers :

· State Bank of India Lead Bank

Specialised Commercial Branch, Trident, Race Course Circle, Vadodara – 390 007, Gujarat, India

· Union Bank of India

Industrial Finance Branch, Union Bank Bhavan, Sayajigunj, Vadodara – 390 005, Gujarat, India

· Bank of Baroda

Corporate Banking Branch, Vadodara, Gujarat, India

· Axis Bank Limited

Vardhaman Complex, Opposite GEB, Race Course Circle (North), Vadodara, Gujarat, India

Facilities :

Secured Loans	(As on 31.12.2008) Rs. in millions
From Banks
Working Capital Facilities
Cash Credit	0.000
Term Loan
From Union Bank of India (Repayable within one year Rs.38.400 millions)	74.461
Total	74.461

a Working Capital facilities are secured by first charge by way of Joint Deed of Hypothecation of raw materials, consumable stores and spares, stock – in – process, finished goods and book debts, whole of the movables, both present and future, situated at Atladra, Ekalbara, Silvassa and Bhiwandi and a Second charge on movable and immovable properties of the company, both present and future, situated at Atladra, Ekalbara, Silvassa and Bhiwandi in favour of SBI Consortium.

b Term Loan is secured by way of a Composite Deed of Hypothecation by way of :

· A First charge on all the fixed assts pertaining to Sodium Hydro Sulphite plant at Village Ekalbara, Tal. Padra, Dist. Baroda in favour of Union Bank of India.

· A first charge by way of hypothecation of all the Company’s other tangible moveable plant and machinery, both present and future, situated at Atladra, Ekalbara, Silvassa and Bhiwandi in favour of Union Bank of India.

· A first charge by way of extension of equitable mortgage on all the existing immovable properties of the company situated at Atladra, Ekalbara, Bhiwandi and Silvassa in favour of Union Bank of India.

· A second charge on the whole of the Company’s Stocks of Raw Materials, Stocks in Process, Semi-Finished and Finished goods, Stores and Spares not relating to plant and machinery (consumable stores and spares), Bills Receivable and Book Debts and all other movable, both present and future situated at Atladra, Ekalbara, Bhiwandi and Silvassa in favour of Union Bank of India.

Banking Relations :

-----

Auditors :

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

31, Nutan Bharat Society, Alkapuri, Vadodara – 390 007, Gujarat, India

Tel. No.:

91-265-2333776

Fax No.:

91-265-2339729

Holding Company :

Societe Industrielle Liegeoise Des Oxydes S.A. (Silox)

Associates/Subsidiaries :

· Punjab Chemical and Corp Protection, Mumbai

· Excel industries

CAPITAL STRUCTURE

(As on 19.03.2009):-

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12060900	Equity Shares	Rs.10/- each	Rs.120.609 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2009
Sales Turnover	3500.000

Expected Sales (2009-10): Rs.4000.000 millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2008	31.12.2007	31.12.2006
SHAREHOLDERS FUNDS
1] Share Capital		120.609	120.609	120.609
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		883.965	745.080	654.177
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1004.574	865.689	774.786
LOAN FUNDS
1] Secured Loans		74.461	115.555	224.502
2] Unsecured Loans		85.989	85.858	83.835
TOTAL BORROWING		160.450	201.413	308.337
DEFERRED TAX LIABILITIES		79.594	72.370	62.226
TOTAL		1244.618	1139.472	1145.349
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		620.950	574.644	561.056
Capital work-in-progress		14.978	6.517	3.643
INVESTMENT		0.000	125.419	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	102.044	139.491	145.051
	Sundry Debtors	397.420	704.322	889.261
	Cash & Bank Balances	433.430	79.264	29.078
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	194.740	175.765	143.657
Total Current Assets		1127.634	1098.842	1207.047
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	301.796	564.385	519.391
	Provisions	218.284	104.640	110.806
Total Current Liabilities		520.080	669.025	630.197
Net Current Assets		607.554	429.817	576.850
MISCELLANEOUS EXPENSES		1.136	3.075	3.800
TOTAL		1244.618	1139.472	1145.349

PROFIT & LOSS ACCOUNT

PARTICULARS		31.12.2008	31.12.2007	31.12.2006
Sales Turnover		3173.800	3452.970	3134.770
Export Incentives		44.660	23.050	9.040
Other Income		31.590	19.270	12.890
Total Income		3250.050	3495.290	3156.700
Profit/(Loss) Before Tax		331.400	174.920	204.300
Provision for Taxation		93.740	20.510	31.240
Profit/(Loss) After Tax		237.660	154.410	173.060
Earnings in Foreign Currency :
	Export Earnings	1122.770	995.380	930.260
	Other Earnings	34.450	0.000	0.000
Total Earnings		1157.220	995.380	930.260
Imports :
	Raw Materials	29.520	76.190	446.450
	Capital Goods Purchase	7.520	0.390	2.650
	Stores & Spares	1.840	0.920	1.950
	Trading Goods Purchase	0.000	3.210	6.510
Total Imports		38.880	80.710	457.560
Expenditures :
	Manufacturing Expenses	2412.960	2916.370	2573.310
	Employee’s Remuneration and Benefits	204.510	169.370	160.170
	Administration and General Expenses	63.190	51.470	55.100
	Selling and Distribution Expenses	128.220	94.960	80.910
	Finance charges	41.370	55.740	43.340
	Amortisation of Expenses	2.490	3.620	3.500
	Increase/(Decrease) in Finished Goods	27.230	(7.810)	0.170
	Depreciation	38.680	36.650	35.900
Total Expenditure		2918.650	3320.370	2952.400
Earnings Per Share (Rs.)		19.70	12.80	--

KEY RATIOS

PARTICULARS		31.12.2008	31.12.2007	31.12.2006
PAT / Total Income	(%)	7.31	4.42	5.48
Net Profit Margin (PBT/Sales)	(%)	10.44	5.07	6.52
Return on Total Assets (PBT/Total Assets}	(%)	18.95	10.45	11.55
Return on Investment (ROI) (PBT/Networth)		0.33	0.20	0.26
Debt Equity Ratio (Total Liability/Networth)		0.68	1.01	1.21
Current Ratio (Current Asset/Current Liability)		2.17	1.64	1.92

LOCAL AGENCY FURTHER INFORMATION

Form 8:-

Name of the company	TRANSPEK-SILOX INDUSTRY LIMITED
Presented By	Mr. S A Vaziry – Company Secretary
1) Date and description of instrument creating the change	Composite Hypothecation Deed dated 15.10.2004 executed by M/s. Transpek-Silox Industry Limited (thereon and hereafter called “the Borrower” of the company”) in favour of Union Bank of India (hereinafter referred to as “the Bank”)
2) Amount secured by the charge/amount owing on the securities of charge	Term Loan of Rs.190.000 millions in aggregate from the bank
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	· A first charge on all the fixed assets created and financed by the Bank pertaining to 10000 MT Sodium Hydro Sulphite plant to be installed and commissioned at Village Ekalbara, Tal. Padra, Dist. Vadodara (including those goods, plants, machinery equipments, implements etc. purchased out of the Term Loan sanctioned by the Bank) with a second charge on the aforesaid fixed assets in favour of the SBI Consortium (comprising of State Bank of India as the Lead Bank. Bank of Baroda and Axis Bank Limited) · A first charge by way of hypothecation of all the Borrower’s other tangible moveable plant and machinery, both present and future whether installed or not whether lying loose or in cases at site or in Transit or which may at any time during the continuance of the security be installed at or lying loose or in cases or being in or upon or about the Borrower’s factory premises and godown situated at Atladra. Vadodara, Ekalbara (Dist Vadodara) in the State of Gujarat, Silvassa in the Union Territory of Dadra and Nagar Haveli and Bhiwandi (Maharashtra) or wherever else the same may be or be held anywhere to the order and disposition of the Borrower or in course of transit subject to the consent / No Objection Certificate from the SBI Consortium (comprising of State Bank of India as the Lead Bank. Bank of Baroda and Axis Bank Limited) · A second charge on the whole of the Current assets of the Borrower namely, Stocks of Raw Materials, Stocks in process, Semi-Finished and Finished goods, Stores and Spares not relating to Plant and Machinery (consumable Stores and Spares), Bills receivable and Book Debts and all other movables, both present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about the Borrower’s factories, premises and godowns situated at Atladra, Vadodara Ekalbara (Dist Vadodara), Silvassa in the Union Territory of Dadra and Nagar Haveli and Bhiwandi (Maharashtra) or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery, however and wheresoever in the possession of the Borrower and either by way of substitution or addition subject to the first charge created / to be created in favour of the Company’s bankers both present and future, for working capital facilities.
4) Gist of the terms and conditions and extent and operation of the charge.	· The term Loan facility of Rs.190 millions sanctioned by the Bank is secured as per Clause 3 (1 to 3) hereinabove mentioned and as described in the Composite Hypothecation Deed dated 15.10.2004 · Interest shall be charged at the rate of 6.75% p.a. with monthly rests. · Margin of Security is 25%. · Repayment in 60 monthly installments of Rs.3.200 millions each to commence from January ’06. Also interest to be serviced by the Company as and when debited i.e. on monthly basis. · Moratorium upto December 2005, interest to be debited at monthly rests to be serviced immediately. · The Company to abide by the terms and conditions contained in the General term Loan Agreement dated 15^th October 2004 entered into by the Company with the Bank. · Other terms and conditions as per Composite Hypothecation Deed Dated 15.10.2004.
5) Name and Address and description of the person entitled to the charge.	Union Bank of India Industrial Finance Branch, Union Bank Bhavan, Sayajigunj, Vadodara – 390 005, Gujarat, India
6) Date and brief description of instrument modifying the charge	No instrument was executed charge created on 29.04.2005 by way of Memorandum of Entry.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	First Modification – Dated 23.02.2005 Equitable Mortgage by way of Deposit of Title Deeds for creating First charge on the immovable property of the Company comprising or non-agricultural land together with constructions and installations both present and future as described in Second Schedule (enclosures to equitable mortgage by deposit of title deeds) situated at Survey no. 321/1, Block No. 440 of Mouje Ekalbara of Padra Taluka, Dist. Vadodara with all rights, title, interest connected therewith including the right of way, with a second charge on the aforesaid property in favour of the SBI Consortium (comprising of State Bank of India as per the Lead Bank, Bank of Baroda and Axis Bank Limited) Present Modification – Dated 29.04.2005 Memorandum of Entry dated 29.04.2005 extending the Equitable Mortgage by way of Deposit of Title Deeds dated 16^th June, 2001 executed with SBI Consortium (comprising of State Bank of India as the Lead Bank, Bank of Baroda, Axis Bank Limited) in order to further create a First charge in favour of Union Bank of India (term Lender) with a second charge in favour of SBI Consirtium as a Collateral Security in respect of the immovable properties of the Company comprising of non-agricultural land, buildings, plant and machinery and erection thereon (both present and future) as described in Annexure – I (enclosures to Memorandum of Entry) and more particularly descried in the Schedule (enclosures to Memorandum of entry) situated a Atladra, Vadodara, Ekalbara (Dist. Vadodara) and Silvassa in the Union Territory of Dadra and Nagar Haveli), with all rights, title, interest connected therewith including the right of way, the amount and term and conditions remain unchanged.

Corporate identity number of the company	U28999GJ1996PLC029188
Name of the company	TRANSPEK-SILOX INDUSTRY LIMITED
Address of the registered office or of the principal place of business in India of the company	Kalali Road, Atladra, Vadodara – 390 012, Gujarat, India
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	State Bank of India Lead Bank Specialised Commercial Branch, Trident, Race Course Circle, Vadodara – 390 007, Gujarat, India
Nature of instrument creating charge	Memorandum of entry
Date of instrument Creating the charge	25.06.2007
Amount secured by the charge	Rs.420.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and operation of the charge The credit facilities are secured by way of E M over Immovable properties more particularly described in second schedule to Memorandum of Entry.
Particulars of the property charged	The credit facilities are secured by way of E M over Immovable properties more particularly described in second schedule to Memorandum of Entry.

Trade references-

· Gujarat Alkalies, Gujarat

· Asian Paint

· Oshaug Trading Company, Korea

sundry Creditors Details:-

Not Available

Other information

Notes on Accounts

1. Estimated value of contracts pending execution on the Capital Account and not provided for amount to Rs.3.58 millions.

2. Contingent Liabilities

a Excise Duty and Service Tax :

Tax and interest contested by the Company where no provision is considered necessary Rs.8.33 millions.

· Income Tax

Tax and interest on disallowances contested by the company where no provision is considered necessary Rs.7.55 millions.

· Sales Tax

Demand raised by the authorities under the Gujarat and Central Sales Tax Acts, which is contested by the company and where no provision is considered necessary Rs.4.91 millions.

b Letters of Credit, Guarantee, Counter guarantee etc. given to various parties and Government Departments / Authorities amount to Rs.14.61 millions.

c The company has furnished a Corporate Guarantee to HDFC, a housing finance institution, in respect of housing loans taken by the employees. Balance amount of employee’s loans outstanding is Rs.0.21 million.

3. Capital Work-in-Progress includes advances against Capital Expenditure Rs.7.01 millions.

Fixed Assets

· Land (Freehold)

· Lease Hold Land

· Buildings

· Plant and Machinery

· Electrical Installations

· Research and Development Equipments

· Furniture and Fixtures

· Vehicles

website details:-

Company Profile

A quest for an unparalleled synergy, brought together two Inorganic Chemical producers from Europe and Asia during the year 2001.

These chemical majors, Silox S.A of Belgium and Transpek Industry Limited of India, have a strong standing in their respective business areas and geographical regions.

Prayon S.A has more than a century of Industrial experience and International recognition in Phosphate Chemicals. Owned equally by OCP, Morocco and SRIW, Belgium, it comprises of 20 companies located in more than 10 countries. Over 60 % of Phosphoric Acid Production worldwide uses Prayon Technology.

The partnership between Transpek and Silox was aimed at leveraging the "Spirit of Synergy" arising out of specialisation in Zinc and Sulphur based chemicals, similar value systems, identical orientation towards customer centric products, environment consciousness and human empowerment across all spheres of activities.

The Joint Venture draws strength from the innate desire of the partners to consolidate their global presence by complimenting their individual strengths, and to attain their mutual vision of growth through dedicated service to all stake holders and the society as a whole.

Global Economic Scenario – An overview

The first sign of dent in the global euphoria arising out of rising prices came in the form of the ripple effect of sub-prime crisis in US which escalated into a full blown financial crisis when the over leveraged mortgage securities went bust due to big scale housing loan defaults. This led to big players in this business such as Fannie Mae and Freddie Mac to the brink of bankruptcy, forcing the US Government to bail them out through a take over, Similar was the case with the world’s largest Insurance Company, AIG which teetered and since it was too big to fail, had to be supported again by the US Government. The overall bail out package of USD 886 billion doled out by the UIS Government is the biggest and the first ever Intervention by them since the depression of 1930, which pales before the current financial crisis.

Amidst all this, history was written when Mr. Barack Obama became the first ever African-American to be elected as the President of the US. He has his hands full to steer the teetering economy, which is reeling under deep financial crisis and military power in the world.

The ripple effect of financial meltdown in the US left many other economics across the world ducking for cover, which did not exist, and hence the spiraling effect was felt in all parts of the world, with once Invincible financial powers across the globe needing bail out by respective Governments to stay afloat. The crisis was so big that even countries like UK, Australia, Korea, Argentina, Ukraine, Hungary, Iceland, Ireland, Greece needed infusion of internal / external capital to save their financial systems from collapse. The Eurozone was already admitted that recession looms large before it, the after effects of which can be very severe on the economies of its member nations.

In the Far East, Japan, which has been technically under recession for more than a decade had shown signs of recovery over the last few years driven by enhanced exports to North America and Europe. However with one of its major partner, the US, in trouble this is expected to leave a pall of gloom on the Japanese economy.

China, the world’s fourth largest economy (in terms of purchasing power parity), which has always thrived on exports announced a 4 Trillion Yuan ($586 billion) stimulus package to stimulate its internal consumption, in the background of declining global demand. It has cut down on its growth estimate from 11% to 8%. This has sapped the confidence of a populace who are always used to double-digit growth and a country seemingly insulated from the global credit crunch on account of its capital controls, a partially-convertible currency and underdeveloped financial markets. The pressure on the Chinese Government to stimulate growth is so severe that it has urged its people, who are more saving oriented, to enhance spending in an effort to kick start internal consumption. The Chinese Government resorted to cutting Interest rates, a measure hitherto unthinkable in their context, in order to accelerate internal economic activity.

There is almost a universal consensus that the global economy is set to weaken, and the debate now is whether emerging economies would be able to decouple themselves to lessen the brunt from the developed economies where the impact of financial crisis is expected to be deep and protracted.

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. 54.63
UK Pound	1	Rs. 83.70
Euro	1	Rs. 71.42

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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		49

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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.