MIRA INFORM REPORT

Report Date :

06.08.2013

IDENTIFICATION DETAILS

Name :	MUKESH UDYOG LIMITED
Registered Office :	VPO Bhudhewal Road, Near Kohara, Tehsil and District Ludhiana-141010, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.08.1994
Com. Reg. No.:	16-014976
Capital Investment / Paid-up Capital :	Rs.95.828 Millions
CIN No.: [Company Identification No.]	L65921PB1994PLC014976
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges.
Line of Business :	Manufacturing of Polyester, Cotton and Other Yarns which are Appropriate For Apparels, Suiting and Knitted Fabrics.
No. of Employees :	500 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears a sharp dip in the profitability of the company. The company has also recorded huge external borrowing. 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.

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 year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A4 [Short Term Bank Facility]
Rating Explanation	Minimal degree of safety. It carry high credit risk.
Date	16.11.2012

Rating Agency Name	CARE
Rating	BB [Long Term Bank Facility]
Rating Explanation	Moderate risk of default
Date	16.11.2012

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 [GENERAL DETAILS]

Name :	Mr. Sandeep Gupta
Designation :	Director
Contact No.:	91-9814007586
Date :	06.08.2013

LOCATIONS

Registered Office/ Factory :	VPO Bhudhewal Road, Near Kohara, Tehsil and District Ludhiana-141010, Punjab, India
Tel. No.:	91-161-2843731/742/2843425
Fax No.:	91-161-2843739/2848742
E-Mail :	mukeshudyoglimited@gmail.com fpo@mukeshudyog.com mukeshinfosy@satyam.net.in
Website :	http://www.mukeshudyog.com
Location :	Owned
Administrative Office :	Gill Road, Miller Ganj, Ludhiana-141003, Punjab, India
Tel. No.:	91-161-2536013
Fax No.:	91-161-2537337

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Pardeep Gupta

Designation :

Managing Director

Address :

508-B, Aggar Nagar, Ludhiana, Punjab, India

Date of Appointment :

24.08.1994

Din No.:

00159858

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1986PTC022996	ASHARFI INVESTMENTS PRIVATE LIMITED	Director	11/05/1987	11/05/1987	Active	NO
2	U74899DL1987PTC028908	KAY CEE ISPAT UDYOG PRIVATE LIMITED	Director	05/12/1989	05/12/1989	Active	NO
3	U27106PB1991PTC011275	MUKESH ALLOYS PRIVATE LIMITED	Director	12/04/1991	12/04/1991	Active	NO
4	L27310PB1992PLC012160	MUKESH STRIPS LIMITED	Director	31/03/1992	31/03/1992	Active	NO
5	U74899DL1989PTC034604	MATRY MANGAL BUILDERS PRIVATE LIMITED	Director	15/01/1993	15/01/1993	Active	NO
6	L65921PB1994PLC014976	MUKESH UDYOG LIMITED	Managing director	01/10/2009	24/08/1994	Active	NO
7	U65921PB1992PLC012409	MUKESH INDUSTRIAL FINANCE LIMITED	Director	03/10/1998	03/10/1998	Active	NO
8	U00060PB2006PTC029541	ODEON ENTERPRISES PRIVATE LIMITED	Director	18/01/2006	18/01/2006	Active	NO
9	U74899DL1993PTC054922	JAY AMBEY KNITTERS PRIVATE LIMITED	Director	27/09/2011	21/05/2011	Active	NO

Name :

Mr. Krishan Chand Gupta

Designation :

Director

Address :

508-B, Aggar Nagar, Ludhiana, Punjab, India

Date of Appointment :

24.08.1994

Din No.:

00057030

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U74899DL1986PTC022996	ASHARFI INVESTMENTS PRIVATE LIMITED	Director	20/09/1986	20/09/1986	Active	NO
2	U74899DL1986PTC018509	DBA SWITCHGEAR PRIVATE LIMITED	Director	20/09/1986	20/09/1986	Active	NO
3	U74899DL1987PTC028908	KAY CEE ISPAT UDYOG PRIVATE LIMITED	Director	13/08/1987	13/08/1987	Active	NO
4	L27310PB1992PLC012160	MUKESH STRIPS LIMITED	Director	31/03/1992	31/03/1992	Active	NO
5	U27104PB1993PTC013030	PUNJAB ISPAT PRIVATE LIMITED	Director	08/02/1994	08/02/1994	Active	NO
6	L65921PB1994PLC014976	MUKESH UDYOG LIMITED	Director	24/08/1994	24/08/1994	Active	NO
7	L27106PB1981PLC004654	MUKESH STEELS LIMITED	Managing director	01/10/2009	24/08/1994	Active	NO
8	U27106PB1991PTC011275	MUKESH ALLOYS PRIVATE LIMITED	Director	20/12/2003	20/12/2003	Active	NO
9	U00060PB2006PTC029541	ODEON ENTERPRISES PRIVATE LIMITED	Director	18/01/2006	18/01/2006	Active	NO
10	U67120PB1991PTC011290	PLEZER INVESTMENTS PRIVATE LIMITED	Director	01/10/2006	01/10/2006	Active	NO

Name :

Mr. Sandeep Gupta

Designation :

Director

Address :

521-B, Aggar Nagar, Ludhiana, Punjab, India

Date of Appointment :

24.08.1994

Din No.:

00159814

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65921PB1992PLC012409	MUKESH INDUSTRIAL FINANCE LIMITED	Director	24/06/1992	24/06/1992	-	Active	NO
2	U74899DL1989PTC034604	MATRY MANGAL BUILDERS PRIVATE LIMITED	Director	15/01/1993	15/01/1993	-	Active	NO
3	U74899DL1993PTC054921	SMRATI BUILDERSAND DEVELOPERS PRIVATE LIMITED	Director	20/08/1993	20/08/1993	-	Active	NO
4	U74899DL1993PTC054953	AKRITI CINE MEDIA PRIVATE LIMITED	Director	24/08/1993	24/08/1993	-	Active	NO
5	L65921PB1994PLC014976	MUKESH UDYOG LIMITED	Director	24/08/1994	24/08/1994	-	Active	NO
6	L27310PB1992PLC012160	MUKESH STRIPS LIMITED	Whole-time director	01/10/2009	09/12/2002	-	Active	NO
7	U74899DL1993PTC054959	GOODLUCK TRAVELLERS PRIVATE LIMITED	Director	24/08/2003	24/08/2003	-	Active	NO
8	L27106PB1981PLC004654	MUKESH STEELS LIMITED	Director	18/10/2004	18/10/2004	17/08/2007	Active	NO
9	U00060PB2006PTC029541	ODEON ENTERPRISES PRIVATE LIMITED	Director	18/01/2006	18/01/2006	-	Active	NO

Name :

Mr. Sanjiv Mohan

Designation :

Director

Address :

39, Brown Road, Ludhiana, Punjab, India

Date of Appointment :

30.01.1999

Din No.:

01052823

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	L65921PB1994PLC014976	MUKESH UDYOG LIMITED	Director	30/01/1999	30/01/1999	Active	NO
2	U74899DL1995PTC064557	MORISON VASUDEVA CONSULTING PRIVATE LIMITED	Director	02/08/2000	02/08/2000	Active	NO

Name :

Mr. Ashok Gupta

Designation :

Director

Address :

83, Green Park, Ludhiana, Punjab, India

Date of Appointment :

30.01.1999

Din No.:

01414304

Name :

Reecha Gupta

Designation :

Director

Address :

Opposite Sachdeva Auto, Lakkar Mandi, Phillaur, District Jalandhar-144410, Punjab, India

Date of Appointment :

26.07.2010

Din No.:

00008019

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U70102PB2008PTC031664	FUTURE COLONIZERS AND CONSTRUCTION PRIVATE LIMITED	Additional director	01/10/2009	01/10/2009	01/10/2009	Active	NO
2	L65921PB1994PLC014976	MUKESH UDYOG LIMITED	Director	30/09/2010	26/07/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	56.17
Directors or relatives of directors	25.07
Other top fifty shareholders	11.96
Others	6.80
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Polyester, Cotton and Other Yarns which are Appropriate For Apparels, Suiting and Knitted Fabrics.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Polyester/Viscose/Acrylic Yarn Item	5509
Cotton Yarn	5206
Billets	7207

Terms :

Selling :

LC and Credit

Purchasing :

LC and Credit

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity
Acrylic / Viscose	--	79744	30000
Polyester/Cotton Yarn Spindles / Spindles Steel Billets	MT	100000	49000

ACTUAL PRODUCTION

Textiles Division
Polyester Yarn	1772.454
Cotton Yarn	2066.500
Other Yarn (P.C.)	199.507
Wastes	590.224
Steel Division
Billets	15062.190
End Cutting	121.225

GENERAL INFORMATION

No. of Employees :

500 [Approximately]

Bankers :

· Punjab National Bank, Industrial Area, Ludhiana-141003, Punjab, India

· Corporation Bank, Premises No. 5, New Lajpat Nagar, Pakhowal Road, Ludhiana-141001, Punjab, India

· Punjab and Sind Bank, Miller Ganj, Ludhiana-141003, Punjab, India

· State Bank of India, Special Commercial Branch, Pahawa Hospital Complex, Ludhiana, Punjab, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Term loans from banks	213.375	283.227
Short Term Borrowings
Loans repayable on demand from banks	444.637	311.848
TOTAL	658.012	595.075

Banking Relations :	--
Auditors :
Name :	Gupta Vinodkumar and Associates Chartered Accountants
Address :	7, II Floor, Surya Shopping Arcade, National Road, Ghumar Mandi, Ludhiana, Punjab, India
PAN No:	ABIPG5833C
Associates :	· Dba Switchgear Private Limited [U74899DL1986PTC018509] · Goodluck Travellers Private Limited [U74899DL1993PTC054959] · Matry Mangal Builders Private Limited [U74899DL1989PTC034604] · Smrati Buildersand Developers Private Limited [U74899DL1993PTC054921] · Punjab Ispat Private Limited [U27104PB1993PTC013030] · Akriti Cine Media Private Limited [U74899DL1993PTC054953] · Ashrafi Investments Private Limited [U67120MH1974PTC018000] · Mukesh Strips Limited [L27310PB1992PLC012160] · Mukesh Alloys Private Limited [U27106PB1991PTC011275] · Mukesh Industrial Finance Limited [U65921PB1992PLC012409] · Mukesh Steels Limited [L27106PB1981PLC004654] · Odeon Enterprises Private Limited [U00060PB2006PTC029541]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
14800000	Equity Shares	Rs.10/- each	Rs.148.000 Millions
5200000	Preferences Shares	Rs.10/- each	Rs.52.000 Millions
	TOTAL		Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6312800	Equity Shares	Rs.10/- each	Rs.63.128 Millions
3270000	Preferences Shares	Rs.10/- each	Rs.32.700 Millions
	TOTAL		Rs.95.828 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	95.828	95.828
(b) Reserves & Surplus	156.193	138.131
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	252.021	233.959
(3) Non-Current Liabilities
(a) long-term borrowings	491.623	449.600
(b) Deferred tax liabilities (Net)	42.723	45.049
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.711	0.640
Total Non-current Liabilities (3)	535.057	495.289
(4) Current Liabilities
(a) Short term borrowings	444.637	311.848
(b) Trade payables	324.108	229.674
(c) Other current liabilities	101.823	130.314
(d) Short-term provisions	17.667	24.185
Total Current Liabilities (4)	888.235	696.021
TOTAL	1675.313	1425.269
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	501.265	571.552
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	35.780	20.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	5.702	5.702
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	32.154	39.917
(e) Other Non-current assets	29.842	23.290
Total Non-Current Assets	604.743	660.461
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	311.490	267.848
(c) Trade receivables	478.928	274.360
(d) Cash and cash equivalents	204.015	121.248
(e) Short-term loans and advances	32.630	72.977
(f) Other current assets	43.507	28.375
Total Current Assets	1070.570	764.808
TOTAL	1675.313	1425.269

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		64.264
2] Share Application Money		38.000
3] Reserves & Surplus		116.851
4] (Accumulated Losses)		0.000
NETWORTH		219.115
LOAN FUNDS
1] Secured Loans		427.915
2] Unsecured Loans		51.208
TOTAL BORROWING		479.123
DEFERRED TAX LIABILITIES		34.815
TOTAL		733.053
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		399.483
Capital work-in-progress		141.972
INVESTMENT		5.703
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	89.220
	Sundry Debtors	106.579
	Cash & Bank Balances	22.148
	Other Current Assets	0.000
	Loans & Advances	83.249
Total Current Assets		301.196
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.738
	Other Current Liabilities	101.642
	Provisions	10.921
Total Current Liabilities		115.301
Net Current Assets		185.895
MISCELLANEOUS EXPENSES		0.000
TOTAL		733.053

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2814.320	1732.944	1267.310
		Other Income	10.055	4.357	4.120
		TOTAL (A)	2824.375	1737.301	1271.430
Less	EXPENSES
		Cost of materials consumed	1421.995	767.342
		Purchases of stock-in-trade	829.168	718.755
		Employee benefit expense	27.953	20.613
		Other expenses	279.350	162.314	1145.834
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	48.840	(113.023)
		TOTAL (B)	2607.306	1556.001	1145.834
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		217.069	181.300	125.596
Less	FINANCIAL EXPENSES (D)		123.978	42.360	27.164
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		93.091	138.940	98.432
Less/ Add	DEPRECIATION/ AMORTISATION (F)		68.810	58.497	49.286
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		24.281	80.443	49.146
Less	TAX (H)		6.219	27.600	6.644
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		18.062	52.843	42.502
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		138.130	85.287	74.349
	BALANCE CARRIED TO THE B/S		156.192	138.130	116.851
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	225.311	27.286
	IMPORTS
		Raw Materials	NA	292.593	51.963
		Purchase of Stores	NA	0.874	0.000
		Others	NA	0.213	1.504
	TOTAL IMPORTS		NA	293.68	53.467
	Earnings / (Loss) Per Share (Rs.)		2.86	12.47	13.47

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.64	3.04	3.34
Net Profit Margin (PBT/Sales)	(%)	0.86	4.64	3.87
Return on Total Assets (PBT/Total Assets}	(%)	1.49	5.75	7.01
Return on Investment (ROI) (PBT/Networth)		0.10	0.34	0.22
Debt Equity Ratio (Total Debt/Networth)		3.72	3.25	2.19
Current Ratio (Current Asset/Current Liability)		1.21	1.10	2.61

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)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10355106	31/03/2012	60,000,000.00	CORPORATION BANK	PREMISES NO 5, NEW LAJPAT NAGAR, PAKHOWAL ROAD, LUDHIANA- 141001, PUNJAB, INDIA	B39441662
2	10356611	31/03/2012	150,000,000.00	PUNJAB NATIONAL BANK	INDUSTRIAL AREA, LUDHIANA - 141003, PUNJAB, INDIA	B39947320
3	10308504	27/09/2011	190,000,000.00	PUNJAB AND SIND BANK	MILLER GANJ, LUDHIANA- 141003, PUNJAB, INDIA	B21690219
4	10274984	01/03/2011	20,000,000.00	PUNJAB NATIONAL BANK	INDUSTRIAL AREA, LUDHIANA - 141003, PUNJAB, INDIA	B09028036
5	10251854	03/10/2011 *	330,000,000.00	PUNJAB AND SIND BANK	MILLER GANJ, LUDHIANA- 141003, PUNJAB, INDIA	B26146316
6	10246968	01/03/2011 *	180,000,000.00	PUNJAB NATIONAL BANK	INDUSTRIAL AREA, LUDHIANA - 141010 PUNJAB , INDIA	B09030008
7	10172750	05/05/2010 *	150,000,000.00	PUNJAB AND SIND BANK	MILLER GANJ, LUDHIANA- 141003, PUNJAB, INDIA	A84600733
8	90175464	11/03/2011 *	688,000,000.00	STATE BANK OF INDIA	SALES HUB MID CORPORATE, SCB MILLER GANJ, LUDHIANA - 14100, PUNJAB 3, INDIA	B11880366
* Date of charge modification

OPERATIONS:

During the year, the company recorded total revenues of Rs. 2824.375 Millions as against Rs. 1737.301 Millions during the previous financial year. The Profit before depreciation and tax has decreased from Rs. 138.940 Millions in the previous year to Rs. 93.091 Millions in the year. Profit after Tax reported by the Company for the financial year has also decreased from Rs 52.843 Millions to Rs.18.062 Millions.

UNSECURED LOAN	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Intercorporate borrowings	76.900	24.300
Loans and advances from others	111.952	79.553
Deposits from others	89.396	62.520
TOTAL	278.248	166.373

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Office Equipments

· Furniture and Fittings

· Computer

· Car

· Scooter and Motor Cycle

· Tempo

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.60.82
UK Pound	1	Rs.92.97
Euro	1	Rs.80.73

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
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	4
--CREDIT LINES	1~10	2
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.