MIRA INFORM REPORT

Report Date :

23.04.2013

IDENTIFICATION DETAILS

Name :	KORES (INDIA) LIMITED
Registered Office :	301/302, Ashford Chambers, Lady Jamshedji Road, Mahim (West), Mumbai – 400 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.05.1936
Com. Reg. No.:	11-002494
Capital Investment / Paid-up Capital :	Rs.130.000 Millions
CIN No.: [Company Identification No.]	U21198MH1936PLC002494
TAN No.: [Tax Deduction & Collection Account No.]	MUMK12588C / MUMK12076B / MUMK11758F
PAN No.: [Permanent Account No.]	AAACK5069Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stationery Products, Castings, Auto Components, Yarn, Clothes and API/ Bulk Drugs etc. and also engaged in Building Construction and Development.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (39)

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

Maximum Credit Limit :	USD 3689000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. It has incurred loss from its operations during 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BB+
Rating Explanation	Moderate risk of default.
Date	September 07, 2012

Rating Agency Name	CRISIL
Rating	Short Term Rating: A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	September 07, 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.

INFORMATION PARTED BY

Name :	Mr. Vimal Bagadia
Designation :	Finance Manager
Contact No.:	91-9820268437
Date :	19.04.2013

LOCATIONS

Registered Office/ Corporate Office 1 :

301/302, Ashford Chambers, Lady Jamshedji Road, Mahim (West), Mumbai – 400 016, Maharashtra, India

Tel. No.:

91-22-24476800

Mobile No.:

91-9820268437 (Mr. Vimal Bagadia)

Fax No.:

91-22-24476999

E-Mail :

info@kores-india.com

legal@kores-india.com

response@kores-india.com

sunilcs2004@rediffmail.com

Website :

http://www.kores-india.com

Location :

Owned

Corporate Office 2 :

Plot No.6, Industrial Area No.1, Pithampur, Indore – 452 001, Madhya Pradesh, India

Factory 1 :

Chakan (Foundry Division)

Chakan Talegoan Road, Gat No.109, Chakan Talegoan Road, Chakan – 410 501 District: Pune, Chakan, Maharashtra, India

Tel. No.:

91-2135-252128/ 254797

Fax No.:

91-2135-252149

Factory 2 :

Pune (Pefco Foundry Division and Administrative Office)

Plant No. I:

E-14, 15 and 16, Bhosari Industrial Area, Pune – 411 026, Maharashtra, India

Tel. No.:

91-20-27120741

Fax No.:

91-20-27120014

E-Mail :

sales@kores-foundry.com

Area :

Owned

Factory 3 :

Plant No. II:

Gat No.149, Chakan, Talegaon Road, Chakan, District Pune – 410 501, Maharashtra, India

Area :

Owned

Factory 4 :

Pithampur (Engineering Division)

Plot No.6, Area No.1, Pithampur, District Dhar, Pithampur – 454 775, Madhya Pradesh, India

Tel. No.:

91-7292-252275

Factory 5 :

Wankaner: (Textile Division)

Station Road, Wankaner – 363 622, Gujarat, India

Tel. No.:

91-2828-220310/ 220385

Fax No.:

91-2828-220433

Area :

Owned

Factory 6 :

Roha (Pharmaceutical and Chemicals Division)

Plot No.59A, 65B, 65C, 66A and 58/2, MIDC, Industrial Area, Dhatav, Roha, District Raigad – 402 116, Maharashtra, India

Tel. No.:

91-2194-263568

Fax No.:

91-2194-263567

Area :

Owned

Factory 7 :

Business and Computer Systems Division

Mumbai

Building No.K-11, New Arihant Compund, Village - Koper, Taluka - Bhiwandi
District Thane, Maharashtra, India

Factory 8 :

Thane:

1^st Pokharan Road, Thane (West) – 400 606, Maharashtra, India

Area :

Owned

Factory 9 :

Pharmaceuticals and Chemical Division

C-7/1-B, TTC Industrial Area, MIDC, Pawane, Navi Mumbai – 400 705, Maharashtra, India

Tel. No.:

91-22-24946555

Fax No.:

91-22-24950401

Factory 10 :

Rudrapur (Uttaranchal):

Plot No.15, Sector 211 E, Panthnagar, Rudrapur – 263 154, Uttaranchal, India

Area :

Owned

Branch / Representative Office :

Located at:

Agartala	Coimbatore	Hubli	Mumbai	Rajkot
Ahmedabad	Cuttack	Hyderabad	Mysore	Ranchi
Akola	Dehradun	Indore	Nagpur	Roha
Allahabad	Delhi	Jabalpur	Nanded	Rudrapur
Amritsar	Dhanbad	Jaipur	Nashik	Salem
Aurangabad	Ernakulam	Jallandhar	New Delhi	Solapur
Bangalore	Erode	Jammu	Patna	Surat
Bareily	Fort	Jamnagar	Pithampur	Tirunelveli
Baroda	Goa	Jamshedpur	Poducherry	Tirupathy
Belgaum	Guntur	Jodhpur	Pune	Tirupur
Bhagalpur	Guwahati	Kanpur	Raipur	Trichur
Bhavnagar	Gwalior	Kolhapur	Kolkata	Trichy
Bhopal	Chakan	Lucknow	Kottayam	Trivandrum
Bhubaneshwar	Chandigarh	Madurai	Vikhroli	Udaipur
Bilwara	Chennai	Mangalore	Visakhapatnam
Calicut	Vizag	Wankaner	Varanasi

DIRECTORS

As on 27.09.2012

Name :	Mr. Anand Kumar Thirani
Designation :	Managing Director
Address :	Flat No.19 and 20, Firpose Co-operative Society Limited, 47A-Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	03.09.1956
Qualification :	B. Com
Date of Appointment :	29.05.1981
DIN No.:	00082344
PAN No.:	AAEPT3338G
Name :	Mr. Sushil Kumar Thirani
Designation :	Whole Time Director
Address :	Flat No.7, A Wing, Sea Face Apartment, 50, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	20.10.1930
Qualification :	Inter Science
Date of Appointment :	30.11.1956
DIN No.:	00082283
PAN No.:	AACPT3467E
Name :	Mr. Rajkumar Hanumanprasad Saboo
Designation :	Whole Time Director
Address :	Flat No.1902, C Wing, Gundecha Garden, Lal Baug, Mumbai – 400 012, Maharashtra, India
Date of Birth/Age :	19.12.1964
Qualification :	C.A.
Date of Appointment :	01.04.2005
DIN No.:	00053600
PAN No.:	ACPPS6072F
Name :	Mr. Karunakar Govinda Menon
Designation :	Director
Address :	6B, Kannarkat, Condominiums, T.O.C.H. School Road, Vyttilla, Ernakulam – 682 019, Kerala, India
Date of Birth/Age :	08.03.1930
Qualification :	B. Sc., (Tech.), A.M.I.I. Chem. E., A.M.I. Indus. E. (Ind.)
Date of Appointment :	01.04.2005
DIN No.:	00086420
Name :	Mr. Jagdish Prasad Gupta
Designation :	Director
Address :	Flat No.104, Azalea Apartments, Naber, Pune – 411 045, Maharashtra, India
Date of Birth/Age :	15.10.1935
Date of Appointment :	20.11.1997
DIN No.:	00053681
Name :	Mr. Satish Kantilal Patel
Designation :	Director
Address :	604, Sibylle Apartments, 65, Worlihill Estate, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	16.05.1936
Date of Appointment :	26.08.2004
DIN No.:	00081904
Name :	Mr. Sameer Ashok Mehta
Designation :	Director
Address :	702, Sukh Sagar Building, Sir Bhalchandra Road, Matunga, Mumbai – 400 019, Maharashtra, India
Date of Birth/Age :	29.11.1976
Date of Appointment :	25.08.2010
DIN No.:	02945481
PAN No.:	AFWPM8893C

KEY EXECUTIVES

Name :	Mr. Vishnu Ramchandra Murkar
Designation :	Company Secretary
Address :	A-404, New Shreenath Complex Co-Operative Society, Mira Bhayander Road, Mira Road, Thane – 401 107, Maharashtra, India
Date of Birth/Age :	01.06.1979
Date of Appointment :	02.04.2012
PAN No.:	AHLPM0620L
Name :	Mr. Vimal Bagadia
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2012

Note:

Shareholding details file attached.

As on 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	39.54
Directors or relatives of Directors	51.69
Other top fifty shareholders	8.77
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Stationery Products, Castings, Auto Components, Yarn, Clothes and API/ Bulk Drugs etc. and also engaged in Building Construction and Development.

Products :

Products	ITC Code No.
Bulk Drugs and Drugs Intermediates	98041000
Other Cast Articles of Iron and Steel	73251000
Carbon Paper	48162090
Cloth	63071010

Exports :

Products :

Stationery Products

Countries :

· Africa

· European Countries

· Bangladesh

Imports :

Products :

Raw Material

Countries :

· China

· Japan

· Europe

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity @	Installed Capacity (As certified by the Management)	Actual Production *
Drilling Equipments etc	Nos.	90	45	37
Yarn	Kgs.	41760 Spindles	41760	5415648
Castings	MT	35760	35760	24139
Bulk Drugs and Drug Intermediates	Kgs.	Not Applicable**	1448000	965855
Speciality Chemicals	MT	23	18	12
Encoder/ Reader Sorter	Nos.	3600	3600	21

Note:

Actual production does not include production of the following products on job work basis from outside parties.

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Stencils	Quires	--	--	182692
Inks	Kgs. / Ltrs.	--	--	15850
Cloth	Mtrs.	--	--	199617
Cloth	Kgs	--	--	103463

@ As at 31-03-2011 at per annum basis

* Including own consumption in the manufacture of other products

** The licensed capacity is not indicated as industrial license for the same stands abolished in terms of Press Note No. 4 (1994 series) issued by the Department of Industrial Development, Ministry of Industries, Government of India.

GENERAL INFORMATION

Customers :

End Users

· Tata Motors

No. of Employees :

2000 (Approximately)

Bankers :

· Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, M.G. Road, Mumbai – 400 023, Maharashtra, India

· Bank of Baroda, Bhadra Branch, Ahmedabad, Gujarat, India

· Dena Bank

· State Bank of Indore

· State Bank of India

· ICICI Bank Limited

· Kotak Mahindra Bank

· IndusInd Bank

Facilities :

Fund base facility total Rs.800.000 millions with Central Bank of India, Bank of Baroda, Dena Bank and State Bank of India

Non Fund base facility total Rs.480.000 millions with Central Bank of India, Bank of Baroda, Dena Bank and State Bank of India

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	503.347	633.523
Rupee term loans from others	8.493	14.782
SHORT-TERM BORROWINGS
Rupee term loans from banks	774.980	812.489
Inter-corporate deposits	55.865	40.600
Deposits from others Fixed deposits (maturing within one year)	22.916	2.564
Other loans and advances (Foreign exchange risk premium)	2.769	2.351
Total	1368.370	1506.309

Banking Relations :	--
Auditors :
Name :	Singhi and Company Chartered Accountants
Address :	901-A, Twin Tower, Lokhandwala Complex, 2^nd Cross Lane, Andheri (West), Mumbai – 400 053, Maharashtra, India
PAN No.:	AAOFS5579C
Associate Companies :	· Kores Services Limited, India · Shashi Finance Private Limited, India · Quality Inks Private Limited, India · Futuristic Securities Limited, India · Solar Packaging Private Limited, India · Vishvakirti Consultancy Limited, India · Pepega (Insulation and Packaging) Limited, India · Shri Amarsinhji Stationery Industries Limited, India · Art Enterprises, India · Nandini Chemicals Limited, India · Magna Inks Limited, India

CAPITAL STRUCTURE

As on 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions
250000	Preference Shares	Rs.100/- each	Rs.25.000 Millions
	Total		Rs.175.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions
200000	Preference Shares	Rs.100/- each	Rs.20.000 Millions
	Total		Rs.130.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		130.000	130.000	75.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		792.396	928.388	824.448
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		922.396	1058.388	899.448
LOAN FUNDS
1] Secured Loans		1368.370	1506.309	1114.987
2] Unsecured Loans		226.229	59.466	110.401
TOTAL BORROWING		1594.599	1565.775	1225.388
DEFERRED TAX LIABILITIES		10.706	55.388	51.300
TOTAL		2527.701	2679.551	2176.136
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1744.601	1783.308	1101.203
Capital work-in-progress		64.513	18.002	28.629
INVESTMENT		10.022	12.387	22.562
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	900.629	993.912	944.502
	Sundry Debtors	1286.713	1340.040	866.345
	Cash & Bank Balances	63.992	74.322	68.474
	Other Current Assets	2.908	4.470	7.562
	Loans & Advances	494.110	458.215	501.422
Total Current Assets		2748.352	2870.959	2388.305
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1357.296	1378.215	1103.003
	Other Current Liabilities	543.097	491.053	222.940
	Provisions	139.394	135.837	38.620
Total Current Liabilities		2039.787	2005.105	1364.563
Net Current Assets		708.565	865.854	1023.742
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2527.701	2679.551	2176.136

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	7503.655	6767.262	7013.063
		Other Income	35.624	39.573	62.782
		TOTAL (A)	7539.279	6806.835	7075.845
Less	EXPENSES
		Cost of materials consumed	2892.489	2358.302	6701.222
		Purchases of stock-in-trade	2116.060	1881.331
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(115.922)	52.134
		Employee benefit expense	684.556	620.856
		Expenditure on production, transportation and other expenditure pertaining to E&P activities	45.864	42.489
		Other expenses	1658.906	1503.834
		Extraordinary items	0.094	(204.967)
		TOTAL (B)	7282.047	6253.979	6701.222
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		257.232	552.856	374.623
Less	FINANCIAL EXPENSES (D)		253.953	161.844	172.520
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.279	391.012	202.103
Less/ Add	DEPRECIATION/ AMORTISATION (F)		183.115	168.445	168.873
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(179.836)	222.567	33.230
Less	TAX (H)		(43.844)	53.399	9.449
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(135.992)	169.168	23.781
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		746.909	587.969	576.873
Less	APPROPRIATIONS
		Proposed Dividend on Preference Shares	NA	2.200	2.200
		Proposed Dividend on Equity Shares	NA	6.600	5.500
		Tax on Dividend	NA	1.428	1.279
		Transferred to General Reserve	NA	0.000	3.706
	BALANCE CARRIED TO THE B/S		NA	746.909	587.969
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	733.167	479.388	680.485
	TOTAL EARNINGS		733.167	479.388	680.485
	IMPORTS
		Raw Materials	NA	NA	231.289
		Stores & Spares	NA	NA	9.403
		Capital Goods	NA	NA	6.609
		Finished Goods	NA	NA	165.107
	TOTAL IMPORTS		NA	NA	412.408
	Earnings/ (Loss) Per Share (Rs.)
	- Basic		(12.14)	15.18	3.92
	- Diluted		NA	20.24	NA

Particulars	31.03.2013
Sales Turnover (Approximately)	7000.000

Expected Sales (2013-2014): Rs.7500.000 Millions

The above information has been parted by Mr. Vimal Bagadia Finance Manager).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(1.80)	2.49	0.34
Net Profit Margin (PBT/Sales)	(%)	(2.40)	3.29	0.47
Return on Total Assets (PBT/Total Assets}	(%)	(4.00)	4.78	0.95
Return on Investment (ROI) (PBT/Networth)		(0.19)	0.21	0.04
Debt Equity Ratio (Total Debt/Networth)		1.73	1.48	1.36
Current Ratio (Current Asset/Current Liability)		1.35	1.43	1.75

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Sundry Creditors	1357.296	1378.215	1103.003

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	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last four years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Deposits from others	162.854	11.186
Loans and advances from directors	33.400	10.300
Other loans and advances	29.975	32.426
SHORT-TERM BORROWINGS
Rupee term loans from banks	0.000	5.554
Total	226.229	59.466

Note:

The registered office of the company has been shifted from Korea House, Plot No.10, Off Dr. E Moses Road, Worli, Mumbai – 400 018, Maharashtra, India, to the present address w.e.f. 10.06.2011.

OFFICE PRODUCTS DIVISION

During the year, the Office Product Division has introduced new innovative and unique products in Office Automation and School Segment. The Strength of division is strong market network at all over India through its Branches, Dealers and Distributor.

The division has shown better results as compared to previous year, but margins were under pressure because of increase of input cost and stiff competition.

During the current year, inspite of challenge of stiff competition and over all slow down of the economy, the division will do better with new product introduction with new products and more vide reach in the market.

BUSINESS AND COMPUTER SYSTEMS DIVISION

During the year, the division has not performed well topline and bottom line are declined marginally because of stiff competition and reverse bid procedure adopted by most of the banks. Margins were under pressure.

The division has introduced new and improved models of Cheque processing and Currency Sorters, the result of which will ripe in the current year.

During the current year, the division with new improved products and with better efficient cheque processing machines, hopeful for better and improved results.

PHARMACEUTICALS AND CHEMICALS DIVISION

The division could not do better and incurred heavy losses, because of increase in the input cost could not passed on buyers because of excess supply. Further introduction of new molecules

During the current year looking into the depressed market condition and pressure on the margin, results of the divisions are going to be adverse.

FOUNDRY DIVISION

During year, better demand in auto and non auto sector and optimum utilization of newly expanded KOYO line at Chakan. The overall demand and margins of Foundry Product locally were good.

However, steep increase in raw material prices particularly steel scrap, Ferro alloys etc and higher power cost is continuous challenge for the division.

For the current year, division is expanding the capacity. Market of Auto sector is under pressure.

TEXTILE DIVISION

During the year, the division was under slow movement position because of steep fall in the cotton prices which resulted into the stock liquidation/consumption loss.

However, last quarter of the year has shown improved demand and realization in the industry.

For the current year, looking into the market trend and stabilizing the cotton prices and overall improvement in the demand in the local as well as export market the outlook of the division seems to be better barring monsoon conditions.

ENGINEERING DIVISION

During the year, due to radical changes in government policies for mineral exploration and mining sector, the division faced challenges. The Indian economy was absolutely flat and there were no new progression has been developed in the segment of mining and explorations as result of which demand of drilling rigs came down drastically and affected the topline and bottom line of this division.

During the current year, the division's performance is under pressure barring relaxation from the government in the policy of exploration and mining.

INTERNATIONAL BUSINESS DIVISION

This division has shown good results. Inspite of global recession, the division has shown better results.

Looking to the current year market scenario, the division is adopting a cautious approach for its scale of operation for the current year.

REAL ESTATE DIVISION

During the year, the division has completed all projects apart from 16^th Building which is under scan of legal procedure. Steep increase in interest rate coupled with sluggish demand in real estate forced the division to slow down its scale for the current fiscal year.

Looking to the current year market scenario, the division is adopting a cautious approach for its scale of operation for the current year.

FIXED ASSETS:

v Land and Building – (On Leasehold and Freehold land)

v Plant and Machinery

v Furniture and Fixtures

v Office Equipments

v Motor Car and Vehicles

v Bore-Wells and Water Connections

v Enterprise System

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 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.54.17
UK Pound	1	Rs.82.45
Euro	1	Rs.70.70

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		39

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.