MIRA INFORM REPORT

Report Date :

05.08.2013

IDENTIFICATION DETAILS

Name :	INDIAN SUCROSE LIMITED
Registered Office :	G T Road, Mukerian, District Hoshiarpur – 144211, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.12.1990
Com. Reg. No.:	55 - 010903
Capital Investment/ Paid-up Capital:	Rs. 224.183 Millions
CIN No.: [Company Identification No.]	L15424PB1990PLC010903
TAN No.: [Tax Deduction & Collection Account No.]	JLD100268C
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer and Exporter of Sugar.
No. of Employees:	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 1938000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. Latest financials as on 2012 are not available with us as management of the company has failed to file them with the government department. As per the previous, even though the company has seen a slight increase in the sales turnover there appear a drastic dip in the net profitability during 2011. Profit margin seems to be low. External borrowings are huge and are increasing over years may affect the liquidity position of the company. However, trade relations are fair. Business is active. Payments terms are slow but correct. In view of timely support from promoters for making term debt repayment, the company can be considered for business dealings with some caution. Note : The shares of the subject company are not traded since last 30 days.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every yea

.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : B
Rating Explanation	High risk of default
Date	17.10.2012

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. Sukhram
Designation :	Accounts department
Contact No.:	91-1883-249001
Date :	02.08.2013

LOCATIONS

Registered Office / Factory :	G T Road, Mukerian, District Hoshiarpur – 144211, Punjab, India
Tel. No.:	91-1883-2490025 / 249001
Mobile No.:	91-9999555000 (Mr. Kunal)
Fax No.:	91-1883-244532/2490001
E-Mail :	kunal.singh00@gmail.com csaksingh@gmail.com
Location :	Owned

DIRECTORS

As on : 30.09.2011

Name :	Mr. D.P Singh
Designation :	Chairman
Name :	Mr. Kunal Yadav
Designation :	Managing Director
Name :	Mt. Jitender Singh
Designation :	Director
Name :	Mr. Pawan Dewan
Designation :	Director
Name :	Mr. Sheoraj Singh Ahlawat
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Anant Kr. Singh
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on : 30.06.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3084886	19.95
Bodies Corporate	6022607	38.95
Sub Total	9107493	58.90
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	9107493	58.90
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9433	0.06
Financial Institutions / Banks	500	0.00
Sub Total	9933	0.06
(2) Non-Institutions
Bodies Corporate	728401	4.71
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	3841082	24.84
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	1014174	6.56
Any Others (Specify)	760724	4.92
Trusts	1	0.00
Non Resident Indians	760723	4.92
Sub Total	6344381	41.03
Total Public shareholding (B)	6354314	41.10
Total (A)+(B)	15461807	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	15461807	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Sugar.

Products :

ITC Number Of Product	Description of Product or Services
17011109	White Crystal Sugar
1703100	Molasses
23010000	Bagasse

Exports :

Products :

Finished Goods

Countries :

· Pakistan

· Dubai

Terms :

Selling :

L/C Cash/Credit (30 to 60 Days)

Purchasing :

L/C Cash/Credit (30 to 60 Days)

PRODUCTION STATUS

Sr .no	Particular	Unit	Quantity
a)	Licensed Capacity	TCD	5000 (5000)
b)	Installed Capacity	TCD	5000 (5000)
c)	Production
	Sugar	Qtls	487572 (2724000)
	Molasses	Qtls	247229 (133658)
	Bagasse	Qtls	1350969 (842367)

NOTE:

1 The installed capacity is certified by management and has not verified by the auditors being Technical matter

2 Production of Bagasse includes 1088787 (Previous Year 742279 Qtls) consumed internally as fuel and boller

3 Company has purchased white sugar Nil Qtls From Cosmos Industries Limited (Previous Year 11657.50)

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

20 (Approximately)

Bankers :

Punjab National Bank, Mukerian Branch, Hosiarpur, Punjab, India

Facilities :

SECURED LOAN	As on 31.03.2011
Term Loans
Punjab National Bank	580.039
Interest Accrued and Due	6.254
Govt. of India, Sugar Development Fund (SDF)	32.000
Cash Credit
Punjab National Bank	914.294
Vehicle Loans
Scheduled banks	2.679
Interest Accrued and Due	0.027
Total	1535.293

Notes :

1) Term loans from Punjab National bank are secured against hypothecation of all the plant and machineries of the company.

2) Cash credit limit is secured by way of pledge of sugar stocks and hypothecation of stocks of stores, Packing material and of Molasses.

3) Term loan, cash credit limits and Bank Guarantee taken from Punjab National Bank are further secured by way of first charge on

Company’s immovable properties situated at Mukerian, Distt Hoshiarpur, and Punjab.

4) Term Loans and cash credit limit except the Term Loan from sugar development fund are also secured by way of personal guarantees of

three directors of the company

5) The Vehicles loan from banks are secured against vehicles financed by them.

6) The amount of term loan repayable with in year is Rs. 194.343 Millions (Previous year Rs. 90.695 Millions)

7) Term loan from Govt. of India, Sugar development fund are secured by way of Bank guarantee given by the company.

Auditors :
Name :	B.K. Kapur and Company Chartered Accountants
Address :	Ghaziabad, Uttar Pradesh, India
Subsidiaries :	Yadu Sugar Limited

CAPITAL STRUCTURE

As on : 30.09.2011

Authorised Capital: (Rs. Millions)

No. of Shares	Type	Value	Amount
18000000	Equity Share	Rs.10/- each	Rs.180.000 Millions
700000	Preference Share	Rs.100/- each	Rs. 70.000 Millions
Total			Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15461807	Equity Share	Rs.10/- each	Rs 154.618 Millions
	Less call unpaid		Rs. (0.435) Millions
700000	Preference Share	Rs.100/- each	Rs. 70.000 Millions
Total			Rs 224.183 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		224.183	154.183	154.183
2] Share Application Money		0.000	70.000	0.000
3] Reserves & Surplus		260.254	253.975	208.520
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		484.437	478.158	362.703
LOAN FUNDS
1] Secured Loans		1535.293	1018.710	921.966
2] Unsecured Loans		100.109	111.058	2.150
TOTAL BORROWING		1635.402	1129.768	924.116
DEFERRED TAX LIABILITIES		86.603	92.825	100.632
TOTAL		2206.442	1700.751	1387.451
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		729.077	762.756	541.717
Capital work-in-progress		137.396	137.925	0.000
INVESTMENT		74.222	20.222	20.223
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1080.717	686.895	619.978
	Sundry Debtors	84.357	94.454	73.514
	Cash & Bank Balances	20.516	212.479	278.201
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	802.570	1003.241	818.209
Total Current Assets		1988.160	1997.069	1789.902
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	14.279	12.717	15.571
	Other Current Liabilities	693.080	1182.615	933.330
	Provisions	15.054	21.889	15.490
Total Current Liabilities		722.413	1217.221	964.391
Net Current Assets		1265.747	779.848	825.511
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2206.442	1700.751	1387.451

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1089.554	997.679	955.461
		Other Income	97.660	12.651	0.486
		TOTAL (A)	1187.214	1010.330	955.947
Less	EXPENSES
		Material and Manufacturing Expenses	1281.172	764.305	760.792
		Cost of goods sold	36.763	0.000	0.000
		Salary, wages and benefits	50.711	50.076	46.481
		Administration Expenses	13.842	18.887	18.551
		Profit Prior Expenses	0.020	0.370	0.000
		Increase in Stock	(413.443)	(44.537)	(6.936)
		TOTAL (B)	969.065	789.101	818.888
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		218.149	221.229	137.059
Less	FINANCIAL EXPENSES (D)		161.481	103.265	59.156
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		56.668	117.964	77.903
Less/ Add	DEPRECIATION/ AMORTISATION (F)		52.474	50.521	48.572
	PROFIT BEFORE TAX (E-F) (G)		4.194	67.443	29.331
Less	TAX (H)		(2.085)	21.988	(9.262)
	PROFIT AFTER TAX (G-H) (I)		6.279	45.455	38.593
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		186.039	140.584	101.991
	BALANCE CARRIED TO THE B/S		192.318	186.039	140.584
	EARNINGS IN FOREIGN CURRENCY		--	10.204	--
	Earnings Per Share (Rs.)		0.41	2.94	2.50

Particulars	31.03.2012
Sales Turnover (Approximately)	1300.000

Expected Sales (2012-2013): Rs. 2000.000 Millions

The above information has been parted by Mr. Sukhram (Accounts department)

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
Net Sales	473.100	562.900	579.500	578.100
Total Expenditure	414.100	462.700	516.300	399.900
PBIDT (Excl OI)	59.100	100.200	63.200	178.200
Other Income	7.800	4.100	0.600	0.500
Operating Profit	66.900	104.200	63.800	178.700
Interest	60.400	48.800	38.800	50.100
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	6.500	55.400	25.100	128.600
Depreciation	13.800	14.300	14.000	15.000
Profit Before Tax	(7.300)	41.200	11.100	113.600
Tax	(1.600)	10.900	6.500	35.700
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	(5.700)	30.300	4.700	77.900
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	(5.700)	30.300	4.700	77.900

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.53	4.51	4.04
Net Profit Margin (PBT/Sales)	(%)	0.38	6.76	3.07
Return on Total Assets (PBT/Total Assets}	(%)	0.15	2.44	1.26
Return on Investment (ROI) (PBT/Networth)		0.01	0.14	0.08
Debt Equity Ratio (Total Liability/Networth)		1.49	2.55	2.66
Current Ratio (Current Asset/Current Liability)		2.75	1.64	1.86

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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

CASE DETAILS :

Case Status : Pending

Status of CIVIL WRIT PETITION 434 OF 2012

EMPLOYEES PROVIDENT FUND ORGANISATION Vs.

M/S INDIAN SUCROSE LTD.

Pet’s Adv. : SANJAY TANGRI

Last Listed On : No Date mentioned

List Type :

FIR No. : NO FIR DETAILS AVAILABE / NOT A CRIMINAL CASE

Category : LABOUR

Bench for Next Hearing Dt : MR. JUSTICE MAHESH GROVER

,---,--- Bench SI. No : 106

Bench for Last Hearing Dt : NO BENCH MENTIONED

Case Updated on : Saturday, February 25, 2012

UNSECURED LOANS :

Rs in Millions

Particulars	31.03.2011
From Directors and their relative ( Including Rs.43.500 Millions from Directors Previous year Rs. 36.000 Millions )	43.500
From Companies	56.609
TOTAL	100.109

PERFORMANCE REVIEW :

The company maintains performance in the term of net profit in compare to last year. As compared to last year turnover of Rs. 1038.437 Millions the company achieved turnover of Rs. 1141.189 Millions during the current year. Because of increase in cost of raw material, and financial charges the net operating profit before tax (PBT) has decreased to Rs. 4.193 Millions during the year as compared to Rs. 67.443 Millions during last year.

During the year, the Company has crushed 5117272 QTLS of Sugarcane and produced 487572 BAGS of Sugar in 115 day crushing days, as compared to previous year crushing of 3060357QTLS of sugarcane and production of 272400 BAGS of Sugar in 77 crushing days

The capacity utilization of the plant during the year was 79.50% and the average recovery was 8.87% as compared to capacity utilization of 63.75 % and average recovery of 9.50 % in the previous year.

INDUSTRY STRUCTURE AND DEVELOPMENT :

Indian sugar industry is highly fragmented with organized and unorganized players. The unorganized players mainly produce Gur and Khandari, the less refined forms of sugar. The government had a controlling grip over the industry, which has slowly yet steadily given way to liberalization. The report provides comprehensive analysis about the structure of Indian sugar industry by explaining the above facets. Besides the classification of sugar products and by-products like molasses, their uses too have been extensively covered.

In 2008-09, Sugar Industry witnessed a dramatic change in Sugar cycle, with the reversal of high supply - low prices scenario. The year started with high sugar surplus, low prices and higher inventories. By the second half of the year it was clear that sugarcane planting and also its diversion reflecting falling production in the current and next sugar year, sugar prices firmed up in the second half of the year. The shift in the cropping pattern from cane to other crops and diversion to non – crystal sugar production resulted in lower cane and hence lower supply of sugar

Credit rating agency, Fitch Ratings says the year 2011 will be a recovery phase for the Indian sugar sector, and expects the sector to have a stable outlook. Indian sugar company’s financial profile will benefit from positive sugar margins as a result of lower sugarcane costs and stable sugar prices. Cash flows will also benefit from increased contribution from the sugar by-product businesses, namely distillery and cogeneration operations. However, sugarcane availability and the regulated nature of the industry are key concerns that continue to weigh on the Indian sugar sector, and could impact the sector’s outlook

This industry has the potential to be a leading player not only in the domestic markets but also in the international markets with several value-additions like clean power and ethanol.

The industry has the potential to do well if we have a conducive long-term sugar policy with minimal controls. If decontrolled, most of the sugar manufacturing companies will do well depending on the plant, managerial and administrative efficiency of the company

OUTLOOK :

The second revision of the world sugar balance in the 2010/11 (October/September) crop cycle by ISO puts world production at a record 168.045 mln tonnes, raw value, up 4.66% from the last season. Although ISO still expect a record high world sugar production, it has been revised downwards by 0.910 mln tonnes from their previous assessment in November, 2010. In contrast to output, world consumption has been revised marginally upwards and now is put at 167.849 mln tonnes. Consumption is expected to grow at 2.01%, slower than the 10-year average of 2.6%, due to historically high prices in both the world and domestic markets. After two seasons of large deficits, the stocks/consumption ratio had reduced to the lowest level for more than 20 years - since 1989/90. The ratio is expected to decrease further to 35.04% in 2010/11 from 35.73% in the previous season of a large deficit. Despite the downward revision of world production, export availability still covers projected import demand. The absence of a physical trade deficit may act to cap prices for the rest of 2010/11 season. The world export availability is put at 50.496 mln tonnes exceeding import demand estimated at 50.309 mln tonnes.

INDEX OF CHARGE :

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10438260	27/06/2013	740,000.00	PUNJAB NATIONAL BANK	MAIN BRANCH MUKERIAN, MUKERIAN, Punjab - 144211, I NDIA	B79980728
2	10438261	27/06/2013	990,000.00	PUNJAB NATIONAL BANK	MAIN BRANCH MUKERIAN, MUKERIAN, Punjab - 144211, I NDIA	B79981106
3	10439310	17/06/2013	2,351,724.00	PUNJAB NATIONAL BANK	MAIN BRANCH MUKERIAN, MUKERIAN, Punjab - 144211, I NDIA	B79981650
4	10422155	29/03/2013	1,240,000,000.00	PUNJAB NATIONAL BANK	MAIN BRANCH, MUKERIAN, MUKERIAN, Punjab - 144211, INDIA	B73871261
5	10417594	13/03/2013	100,000,000.00	PUNJAB NATIONAL BANK	MAIN BRANCH, MUKERIAN, MUKERIAN, Punjab - 144211, INDIA	B72548688
6	10411947	23/02/2013	50,000,000.00	PUNJAB NATIONAL BANK	MAIN BRANCH, MUKERIAN, MUKERIAN, Punjab - 144211, INDIA	B70805338
7	10395740	12/12/2012	1,300,000.00	PUNJAB NATIONAL BANK	MUKERIAN, MUKERIAN, Punjab - 144211, INDIA	B65420721

FIXED ASSETS:

· Freehold Land

· Trade Mark

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Vehicles and Tractors

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.80
UK Pound	1	Rs. 91.95
Euro	1	Rs. 80.37

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	YES
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.