MIRA INFORM REPORT

Report Date :

24.04.2013

IDENTIFICATION DETAILS

Name :	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED
Registered Office :	Prakashgad Plot No. G-9, Anant Kanekar Marg, Bandra (East), Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.05.2005
Com. Reg. No.:	11-153645
Capital Investment / Paid-up Capital :	Rs.30000.500 Millions
CIN No.: [Company Identification No.]	U40109MH2005SGC153645
TAN No.: [Tax Deduction & Collection Account No.]	PNEE00582B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Distribution of Electricity
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 233600000
Status :	Satisfactory
Payment Behaviour :	Slow
Litigation :	Exists
Comments :	Subject is a State Government Company engaged in distribution of electricity. It is a well established company having a satisfactory track record. The creditors and lenders can be confident of their exposures in the company. The subject has incurred heavy loss during 2012. However, it gets better operational and financial support from the government. Trade relations are reported as decent. Business is active. Payments are reported to be slow. The company can be considered good for 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.

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 DECLINED BY

Management non co-operative

LOCATIONS

Registered Office / Head Office:	Prakashgad Plot No. G-9, Anant Kanekar Marg, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-26474211/ 26470953/26472131
Fax No.:	91-22-26476749/ 26470953
E-Mail :	cs@mahadiscom.in
Website :	www.mahadiscom.in

DIRECTORS

AS ON 11.09.2012

Name :	Mr. Ajoy Mehta
Designation :	Managing Director
Address :	A/7, Saudamini Haji Ali, Mumbai – 400034, Maharashtra, India
Date of Birth/Age :	21.09.1959
Date of Appointment :	28.05.2010
DIN No. :	00155180
Name :	Mr. Dattatraya Dharmaji Wavhal
Designation :	Director
Address :	14/601, Flower Valley Complex Eastern Express Highway, Khopat Thane West, Mumbai – 400601, Maharashtra, India
Date of Birth/Age :	06.12.1957
Date of Appointment :	20.08.2012
DIN No. :	02767994
Name :	Mr. Maruti Kishanrao Deore
Designation :	Director
Address :	Flat No. 1, Ground Floor, Vidyut Nirmal Niwal, Devidyal Road, Mumbai-400080, Maharashtra, India
Date of Birth/Age :	24.01.1956
Date of Appointment :	16.07.2012
DIN No. :	02780312
Name :	Mr. Prakash Vithal Page
Designation :	Director
Address :	131, Poornanand Walkeshwar Road, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	18.09.1953
Date of Appointment :	02.01.2009
DIN No. :	00096443
Name :	Mr. Ashok Rajaram Harane
Designation :	Director
Address :	B-302, Millennium Gardens 182, Upper Govind Nagar, Malad (East), Mumbai – 400097, Maharashtra, India
Date of Birth/Age :	04.06.1946
Date of Appointment :	02.01.2009
DIN No. :	00123013
Name :	Mr. Vidyadhar Krishnaji Kanade
Designation :	Director
Address :	Department of IE and L Mantralaya, Mumbai-400034, Maharashtra, India
Date of Birth/Age :	01.10.1955
Date of Appointment :	21.11.2011
DIN No.:	00246871

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 11.09.2012

Names of Shareholders	No. of Shares
V.K.Kanade Principal Secretary (Energy) Nominee of GOM.	49940
Subrat P. Ratho M.D. of MSEBHCL,	10
P.G. Mohite (Nominee of GOM.)	10
Kunda A. Rethrekar (Nominee of GOM)	10
D. K. Kharat (Nominee of GOM.)	10
Avinash Subhedar, (Nominee of GOM.)	10
L. N. Sadafule (Nominee of GOM)	10
MSEB Holding Company Limited, India	5316931800
TOTAL	5316981800

AS ON 11.09.2012

Equity Shares Break Up	Percentage of Holding
Government [Central and State]	99.98
Government companies	0.02
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Distribution of Electricity

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· IDBI Bank Limited

· DCC Bank Limited

· Canara Bank

· Bank of Maharashtra

· Bank of India

Facilities :

Secured Loan

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Long Term Borrowings

Term Loans

From Banks

Term Loans from DCC Bank

Raigad DCC Bank

787.500

1050.000

Ratnagiri DCC Bank

972.703

1191.273

Sindhudurga DCC Bank

464.286

571.429

From Other Parties

Loan from Rural Electrification Corporation

55437.652

39590.879

Power Finance Corporation

39828.400

26248.474

Short Term Borrowings

Loans repayable on demand from banks (secured by hypothecation of book debts)

Overdrafts from Banks for working Capital

17500.000

19000.000

Cash Credit from Banks

Canara Bank

9305.100

0.000

Bank of Maharashtra

3320.044

0.000

Bank of India

1054.048

0.000

TOTAL

128669.733

87652.055

NOTES

LONG TERM BORROWINGS

As at 31^st March 2012	Number of Loans	Outstanding amount as on 31.03.2012 (Rs. In Millions)	Rate of Interest	Repayment of period	Moratorium period included in the period of maturity at (3)	Security offered
Term Loans from Banks						Hypothecation of future assets and Government of Maharashtra Guarantee
Raigad DCC Bank Limited	1	1050.000	8% to 9.5%	11 years	3 years
Ratnagiri DCC Bank Limited	7	1191.273	9% to 10%	7 years	Nil
Sindhudurga DCC Bank Limited	1	571.429	9.25%	7 years	Nil
Term Loans from other parties
State Government Loans	4	4080.480	11.50%	10 years	Nil
Loan from Rural Electrification Corporation	875	81641.263	11% to 12.50%	13 years	3 years
Loans from Power Finance Corporation	374	45390.234	11% to 13%	12 to 15 years	2 to 5 years

As at 31^st March 2011	Number of Loans	Outstanding amount as on 31.03.2012 (Rs. In Millions)	Rate of Interest	Repayment of period	Moratorium period included in the period of maturity at (3)	Security offered
Term Loans from Banks						Hypothecation of future assets and Government of Maharashtra Guarantee
Raigad DCC Bank Limited	1	1312.500	8% to 9.5%	11 years	3 years
Ratnagiri DCC Bank Limited	7	1389.914	9% to 10%	7 years	Nil
Sindhudurga DCC Bank Limited	1	678.571	9.25%	7 years	Nil
Term Loans from other parties
State Government Loans	4	4475.357	11.50%	10 years	Nil
Loan from Rural Electrification Corporation	845	43972.522	11% to 12.50%	13 years	3 years
Loans from Power Finance Corporation	310	29519.199	11% to 13%	12 to 15 years	2 to 5 years

Banking Relations :	--
Financial Institutions:	· Rural Electrification Corporation Limited, Core 4 Scope Complex, 7 Lodi Road, New Delhi – 110 003, India · Power Finance Corporation Limited, “Urjanidhi”, 1 Barakhamba Lane, Connaught Place, New Delhi-110001, India
Auditors :
Name 1 :	Borkar and Muzumdar and Company Chartered Accountants
Address :	235/237, Peninsula House, Dr. D N Road, Fort, Mumbai 400001, Maharashtra, India
PAN No.:	AAAFB3194J
Name 2 :	M P Chitale and Company Chartered Accountants
Address :	1^st Floor, Hamam House, Ambalal Doshi Marg, Fort, Mumbai - 400001, Maharashtra, India
PAN No.:	AAAFM2282Q
Holding Company :	· MSEB Holding Company Limited CIN No.: U40100MH2005SGC153649
Subsidiaries Company :	· Aurangabad Power Company Limited CIN No.: U40109MH2007SGC171852

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000000	Equity Shares	Rs.10/- each	Rs. 75000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000050000	Equity Shares	Rs.10/- each	Rs. 30000.500 Millions

AS ON 11.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000000	Equity Shares	Rs.10/- each	Rs. 200000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5316981800	Equity Shares	Rs.10/- each	Rs. 53169.818 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		30000.500	30000.500	0.500
2] Contribution from GoM/MSEB Holding Company Limited		23169.318	16200.238	32630.125
3] Reserves & Surplus		5233.391	7735.178	17126.713
4] Equity from GoM towards Projects		0.000	0.000	4842.300
NETWORTH		58403.209	53935.916	54599.638
LOAN FUNDS
1] Secured Loans		128669.733	87652.055	59897.604
2] Unsecured Loans		51574.642	46782.611	6295.187
TOTAL BORROWING		180244.375	134434.666	66192.791
DEFERRED TAX LIABILITIES		8980.244	1056.919	0.000
TOTAL		247627.828	189427.501	120792.429
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		184098.350	111242.149	74850.144
Capital work-in-progress		39133.268	40462.068	23437.385
INVESTMENT		1943.082	1653.986	1367.415
DEFERREX TAX ASSETS		0.000	0.000	3573.938
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9897.106	8908.129	2878.937
	Sundry Debtors	87112.823	90929.038	117532.421
	Cash & Bank Balances	4008.072	5568.197	13738.648
	Other Current Assets	81079.925	56448.394	22.806
	Loans & Advances	6181.172	5008.240	14300.860
Total Current Assets		188279.098	166861.998	148473.672
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	82809.468	61264.472	46190.255
	Other Current Liabilities	60328.184	48816.181	65136.333
	Provisions	22688.318	20712.047	19583.537
Total Current Liabilities		165825.970	130792.700	130910.125
Net Current Assets		22453.128	36069.298	17563.547
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		247627.828	189427.501	120792.429

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue Income	395545.103	332655.561	276423.129
		Other Income	12518.823	12516.872	11462.805
		Revenue Subsidy and Grants From GOM	0.000	0.000	4000.000
		TOTAL (A)	408063.926	345172.433	291885.934
Less	EXPENSES
		Power Purchase Cost	351202.873	289494.449	238419.520
		Employee costs	22985.254	20468.684	18380.658
		Repairs and Maintenane Expenses	5528.775	5141.918	0.000
		Administration and general expenses	4440.257	2319.407	8989.868
		Other expenses	11142.735	15499.555	15201.707
		Net Prior period credits / charges	0.000	0.000	1597.916
		Adjustment of Depreciation	(12647.775)	0.000	0.000
		TOTAL (B)	382652.119	332924.013	282589.669
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25411.807	12248.420	9296.265
Less	FINANCIAL EXPENSES (D)		17783.645	10813.029	9001.279
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7628.162	1435.391	294.986
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7645.701	10674.666	8122.701
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(17.539)	(9239.275)	(7827.715)
Less	TAX (H)		8061.676	5807.403	3020.012
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(8079.215)	(15046.678)	(10847.727)
	Contingency Reserve		0.000	0.000	290.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	(11457.808)
	BALANCE CARRIED TO THE B/S		NA	NA	(22595.536)
	Earnings Per Share (Rs.)		(2.85)	(5.11)	(222754.53)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(1.98)	(4.36)	(3.72)
Net Profit Margin (PBT/Sales)	(%)	0.00	(2.78)	(2.83)
Return on Total Assets (PBT/Total Assets}	(%)	0.00	(3.32)	(3.51)
Return on Investment (ROI) (PBT/Networth)		0.00	(0.17)	(0.14)
Debt Equity Ratio (Total Debt /Networth)		3.09	2.49	1.21
Current Ratio (Current Asset/Current Liability)		1.14	1.28	1.13

LOCAL AGENCY FURTHER INFORMATION

CASE DETAILS
Bench:- Bombay
Stamp No:-	CAWST/10459/2013	Failing Date:-	04.04.2013
Main Matter
Stamp No:-	WPST/2859/2012	Reg No.:-	WP/1064/2012
Petitioner:-	Areeb Rolling Mills Private Limited	Respondent:-	Maharashtra State Electricity Distribution Company Limited
Petn. Adv.:-	K C Pandey
District:-	Mumbai
Bench:-	Single
Status:-	Pre-Admission
Next Date:-	12.04.2013
Coram:-	Registrar (Judicial)
Act:-	Indian Electricity Act, 1910

CHARGES

Entity	Person	Competent Authority	Regulatory Charges	Regulatory Actions / Date of Order	Further Developments
Maharashtra State Electricity Distribution Company Limited	--	CBEC	Defaulted in payment of customs / excise duties	Notice issued under section 142 of customs act, 1962 31.03.2012	--

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	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	Yes
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	No

UNSECURED LOAN	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Term Loans
From Other Parties
Financial Participation by Consumers (Interest Bearing)	0.818	0.818
State Government Loans	3341.040	3768.455
Financial Participation by Consumers (Interest Free)	14.609	18.175
Interest Free Loan from MIDC For electric Work	360.021	360.021
Deposits
Security Deposits from Consumers (In Cash)	45675.227	41169.343
Deposits collected to be refunded after eight years (without interest)	6.083	6.083
Refundable capital cost deposits	1.857	1.857
Deposit collected from private agencies towards energy bill collection work	320.819	300.475
Special deposit from Staff Welfare Fund	196.498	151.828
Deposits for Electrification, services connection etc.	1213.810	558.553
Short Term Borrowings
Deposits
Deposit from temporary service connections	443.860	447.003
TOTAL	51574.642	46782.611

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors
Liability for purchase of power	79649.235	58171.987	41038.142
Liability for transmission charges	3160.233	3092.485	5152.113
TOTAL	82809.468	61264.472	46190.255

OPERATIONAL PERFORMANCE

During the 7th year of operation, the Company had sold 80131 Mus of power, which has generated revenue of Rs. 395545.100 Millions.

However, after providing for Depreciation, Interest, Finance Charges and other debits there was a loss of Rs. 17.500 Millions (before tax).

LOAD SHEDDING PROTOCOL

The Company has been experiencing significant growth in power consumption during last few years in its area of operations due to buoyancy in economy. In view of availability of Power, the Company is taking steps to reduce the load shedding gradually.

POWER PURCHASE

During the year the company has taken a big leap in hiring up the long term power to ensure that the company will not have power shortage in future years.

The company executed PPA for 2600 MW under competitive bidding process case – 1, stage -2. and PPA for additional quantum of 125 MW is under process.

The power purchase agreements for power from Korba Unit-7, Mouda stage –II Vindhyachal Stage – V, Solapur, Lara, Dhurvaram, Khargone and Gadarwara Project are executed with NTPC. During the year, two units of Nashik Power Stations of MSPGCL are closed. 2 units of 500 MW each of Bhuswal and one 500 MW unit of Khaparkheda Power Stations of MSPGCL are synchronized, the COD is expected during the year 2012.

The company endeavors to monitor the progress of all projects under PPA and demand pattern. To bridge the gap in supply and demand due to delay in some projects of Mahagenco and NTPC, a medium term tender was floated.

The supply of power from JSW Energy, Ratnagiri (300 MW) commenced from Sept. 2010 under Long term Case-I, stage- I and Korba Unit (7), 108 MW commenced from March 2011.

Due to unprecedented shortage of coal and gas during the year, the generation from Long Term sources such as MSPGCL, NTPC, RGPPL was drastically reduced. Hence, in order to mitigate load shedding, MSEDCL had to resort to short term Power Purchase MSEDCL floated tenders from time to time as per the requirement of power. MSEDCL procured 6438 MUS during FY 2011-2012 through e-tendering and IEX and PXIL at competitive rates. Also, the company has successfully implemented Zero Load Shedding scheme in Revenue Head Quarters area by purchasing 475.64 mus at Rs. 2178.300 Millions. Up to June 2011 and this cost is received from consumers availing this facility, through Reliability charges. The scheme was effective up to June 2011 and thereafter load shedding is withdrawn in almost all cities.

The Bhivkund Coal Block (100 MP) in Wardha valley was allocated to Aurangabad Power Company Limited on SPV for setting up of 1 x 500 MW green field Power project under tariff based competitive bidding route. Accordingly the e-tender for 470-620 MW Power procurement utilizing coals from Bhivkund Coal Block was floated as per competitive bidding guidelines issued by Ministry of Power, MERC approved the directions in RFP documents. The four bids are received in due time and technical evaluation is being done.

The power from project will be available four years after the execution of PPA i.e. in 2016-17.

To make up the gap arisen due to delay in projects a medium term power procurement was proposed. The due process of competitive bidding was carried out. The PPA of 300 MW with JSW Energy Limited, Ratnagiri and 475 MW with M/s. Adani Power Maharashtra Limited were executed. The power commenced during the year and will be for one year and one day from commencement.

The additional power of 125 MW from M/s. Adani Power Maharashtra Limited Under Case -1 Stage -2 process is approved by MERC.

During year, the capacity of 170 MW from Sipat Unit -1 and 160 MW from first unit of Mundra UMPP was added in addition to 775 MW under medium term contract.

FORM 8

Corporate identity number (CIN) or foreign company registration number of the company	U40109MH2005SGC153645
Name of the company	MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	Prakashgad Plot No. G-9, Anant Kanekar Marg, Bandra (East), Mumbai – 400 051, Maharashtra, India E-mail: cs@mahadiscom.in
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Rural Electrification Corporation Limited, Core 4 Scope Complex, 7 Lodi Road, New Delhi – 110 003, India E-mail: mlkumawat@recl.nic.in
Nature of instrument creating charge	Bulk Hypothecation Deed dated 24th August, 2012 between REC Limited and MSEDCL wherein MSEDCL has hypothecated as security its future movable properties/assets and stocks to the extent of 72.5% of the Future Assets in respect of the 84 R-APDRP Schemes covered under Loan Agreement for Rs. 8251.487 Millions dated 24.08.2012 as unencumbered hypothecated goods.
Date of instrument Creating the charge	24.08.2012
Amount secured by the charge	Rs.8251.487 Millions
Brief of the principal terms a conditions and extent and operation of the charge	Rate of Interest The interest shall be charged on the loan @ annualized INBMK + 350bps with annual reset. The interest shall be payable quarterly by borrower till full loan amount along with other dues are paid to REC Terms of Repayment The period of moratorium period for repayment of the principal shall be 3 years from the 15th day of the month of disbursement of the first installment of the loan but the entire loan shall be repaid by the borrower within a period of 13 years from the date of disbursement of the first installment of the loan. Margin 25% Extent and Operation of the charge The MSEDCL has hypothecated and charged as security its future movable properties and its stocks of materials and equipments etc. to the extent of 72.5%of the future assets in respect of the 84R-APDRP Schemes covered under the loan agreement date 24.08.2012 between REC and MSEDCL as unencumbered hypothecated goods by way of pari passu basis along with PFC for the repayment of Loan to REC with interest, penal interest in case of late payments and other costs and charges in term bulk hypothecation deed date 24.08.2012.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Borrower (MSEDCL) has hypothecated and charged as security its future movable properties including movable machinery, equipments, machinery, machinery spares, tools, implements and accessories and its stocks of materials and equipments etc. to the extent of 72.5% of the future assets in respect of the 84 R-APDRP Schemes covered under the Loan Agreement dated 24.08.2012 between REC and MSEDCL as unencumbered hypothecated goods by way of pari passu basis along with PFC for the repayment of Loan to REC with interest, penal interest in case of late payments and other costs and charges in terms of the Bulk Hypothecation Deed between REC and MSEDCL dated 24.08.2012

FIXED ASSETS

• Land and land flights
• Buildings
• Hydraulic works
• Other civil works
• Plant and machinery
• Lines and cable networks
• Vehicles
• Furniture and fixtures
• Office equipment

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. 54.29
UK Pound	1	Rs. 82.87
Euro	1	Rs. 70.80

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPT

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	---
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		45

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.