MIRA INFORM REPORT

Report Date :

16.08.2013

IDENTIFICATION DETAILS

Name :	VAMSI LABS LIMITED
Formerly Known As :	VAMSI LABS PRIVATE LIMITED
Registered Office :	A-14/15, MIDC Area, Pune Road Chincholi, Solapur - 413255, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.01.1991
Com. Reg. No.:	11-059750
Capital Investment / Paid-up Capital :	Rs. 28.635 Millions
CIN No.: [Company Identification No.]	U24231MH1991PLC059750
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Selling of Bulk Drugs and Intermediates, Fine Chemicals (APIs).
No. of Employees :	85 (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 187500
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having a moderate track record. The company has seen a slight dip in its net profitability during 2012. The ratings also take into consideration the small scale of operations of the company along with its stretched liquidity position. However, trade relations are fair. Business is active. Payment terms are 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	ICRA
Rating	Term Loans: B-
Rating Explanation	High risk of default
Date	April 2013

Rating Agency Name	ICRA
Rating	Short term non fund based limits: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	April 2013

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. Nagraj
Designation :	Accounts Department
Contact No.:	91-217-2357274
Date :	12.08.2013

LOCATIONS

Registered Office/ Factory :	A-14/15, MIDC Area, Pune Road Chincholi, Solapur - 413255, Maharashtra, India
Tel. No.:	91-217-2357274/ 75
Mobile No.:	91-9422457791 (Mr. G. Pratap Reddy) 91-9422457790 (Mr. M. Kesava Reddy)
Fax No.:	91-217-2357278
E-Mail :	mkreddy@vamsilabs.com sales@vamsilabs.com kapil@vamsilabs.com nagraj@vamsilabs.com
Website :	www.vamsilabs.com

DIRECTORS

AS ON 27.08.2012

Name :

Mr. Kesava Reddy Bhujanga Reddy Madana

Designation :

Whole-time director

Address :

B-149, Plot No.3, Gangadhar Housing Society, Hotgi Road, Solapur - 413003, Maharashtra, India

Date of Birth/Age :

01.04.1954

Date of Appointment :

01.04.2009

DIN No.:

01916588

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Whole-time director	01/04/2009	09/01/1991	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	14/08/1996	14/08/1996	Active	NO

Name :

Mr. Pratap Reddy Linga Reddy Gaddam

Designation :

Managing director

Address :

Plot No.24/2, Hotgi Road, Solapur - 413003, Maharashtra, India

Date of Birth/Age :

16.07.1960

Date of Appointment :

01.04.2009

DIN No.:

01926026

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Managing director	01/04/2009	09/01/1991	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	14/08/1996	14/08/1996	Active	NO
3	U01122PN1999PTC014275	GREENFIELD CET PLANT PRIVATE LIMITED	Director	20/07/2002	20/07/2002	Active	NO
4	U24232PN2011PTC139429	GPR LIFE SCIENCES PRIVATE LIMITED	Director	05/05/2011	05/05/2011	Active	NO

Name :

Mr. Jaganmohan Anakala

Designation :

Whole-time director

Address :

132, Railway Lines, Forest, Solapur - 413003, Maharashtra, India

Date of Birth/Age :

01.07.1968

Date of Appointment :

30.09.2010

DIN No.:

02796369

Name :

Prasadureddy Kotiswamy Devagiri

Designation :

Director

Address :

Raghavendra Apartments, Hotgi Road, Near Sales Tax Office, Solapur - 413003, Maharashtra, India

Date of Birth/Age :

01.07.1945

Date of Appointment :

01.03.2004

DIN No.:

02796374

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Director	01/03/2004	01/03/2004	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	01/03/2004	01/03/2004	Active	NO
3	U24232PN2011PTC139429	GPR LIFE SCIENCES PRIVATE LIMITED	Director	05/05/2011	05/05/2011	Active	NO

Name :

Rama Taraka Reddy Tummuru

Designation :

Director

Address :

H. No.8-2-601/B/104, G. P. Residency Road No.10, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India

Date of Birth/Age :

01.07.1948

Date of Appointment :

01.03.2004

DIN No.:

02797424

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Director	01/03/2004	01/03/2004	-	Active	NO
2	U27109AP2007PTC053805	GAVI SIDDESWARA STEELS(INDIA) PRIVATE LIMITED	Director	03/05/2007	03/05/2007	25/03/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Nagraj
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.08.2012

Names of Shareholders	No. of Shares
D. Prasadu Reddy	71650
G. Pratap Reddy	563332
K. Joji Reddy	22350
K. Madhusudan Reddy	15630
M. K. Reddy	682928
M. Shivnagendram	18670
A. Leelavathi	31280
D. Vindya Rani	22600
G. Anupama Reddy	103400
K. Venkata Laxmi	13480
M. Pramiladevi	114750
M. Sambrajayamma	106600
V. Malleshwari	41170
G. Samhita Reddy	232240
G. Madalasa Reddy	238083
M. Priyanka Reddy	585337
Total	2863500

AS ON 27.08.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Bulk Drugs and Intermediates, Fine Chemicals (APIs).

Products/ Services :

ITC Code No.	Product Descriptions
2905 14 20	Salbutamol Sulphate and Base
3004 90 91	Salmeterol Xinafoate
3004 90 99	Formoterol Fumarate
2933 39 90	Cyproheptadine
2922 50 24	Domperidone
2933 39 90	Haloperidol
2942 00 00	Other Bulk Drugs and Intermediates

Exports :

Products :

Finished Goods

Countries :

· European Countries

Imports :

Products :

Chemicals

Countries :

· European Countries

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Utilizes Capacity
Salbutamol Sulphate	MT/ KGS	24	17
Salmeterol Xinafoate	KGS	600	23.790
Formeterol Fumarate	KGS	600	8.457
Cyproheptadine	MT/ KGS	24	9.177
Domperidone and Malate	MT/ KGS	24	10583
Haloperidol	MT/ KGS	24	1287
Loperamide	MT/ KGS	6	1555

GENERAL INFORMATION

Customers :

End Users and Others

No. of Employees :

85 (Approximately)

Bankers :

State Bank of India, Industrial Finanace Branch, The Arcade, World Trade Center, Cuffe Parade, Coloba, Mumbai - 400005, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
Term Loan of Rs.20.000 Millions with State Bank of India IFB. Mum.	7.553	8.729
WCD Loan of Rs.55.000 Millions with State Bank of India. IFB. Mum.	39.886	46.080
Vehicle Loans from
(a) Ford Car loan from HDFC Bank Limited	0.000	0.098
(b) Corolla Car loan from HDFC Bank Limited	0.000	0.118
(c) Tata Bus loans from Sunderam Finance Limited	0.000	0.000
(d) BMW Car loan from BMW India Financial Services Private Limited	2.156	2.821
(e) Gio Vehicle loans from Sunderam Finance Limited (Secured by charge on the vehicles with R.T.O for respective loan amounts)	0.024	0.072
Sales-tax Deferral Under PS11993 Scheme i) Original Entitlement Certificate of Rs.13.800 Millions PSI 93	5.658	7.848
ii) Expansion Entitlement Certificate of Rs.25.400 Millions PSI 93	25.171	25.170
SHORT TERM BORROWINGS
Cash Credit with State Bank of India, IFB, Mumbai [Secured by a first charge by way of Stock, Book debts of the Company movables and mortgage of present and future immovable properties and personal guarantee of Directors]	39.895	39.916
Total	120.343	130.852
LONG TERM BORROWINGS Term loan, WCD Loan from SBI was taken and carriers interest charged as per sanctioned terms. The loan is repayable in monthly installments as per schedule along with interest from the date of loan Deferred sales tax loan is interest free and payable is after completion 10 yrs from the date of utilisation and the said amount will be paid in 6 installment of due amount and fall due in May of every year.

Banking Relations :	--
Financial Institution :	Sundaram Finance Limited, 21 Patullos Road, Chennai - 600002, Tamilnadu, India
Auditors :
Name :	Ashok Madgundi and Company Chartered Accountants
Address :	210/A/1, Sakhar Peth, Solapur – 413007, Maharashtra, India
Tel. No.:	91-217-2620403/ 2626540
Income-tax PAN of auditor or auditor's firm :	ABRPM6697F

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3,750,000	Equity Shares	Rs. 10/- each	Rs. 37.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,863,500	Equity Shares	Rs. 10/- each	Rs. 28.635 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011	31.03.2010
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	28.635	28.635	19.996
(b) Reserves & Surplus	18.251	14.675	10.773
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	8.639
Total Shareholders’ Funds (1) + (2)	46.886	43.310	39.408
(3) Non-Current Liabilities
(a) long-term borrowings	84.562	93.199	68.890
(b) Deferred tax liabilities (Net)	5.359	5.436	5.607
(c) Other long term liabilities	58.177	62.176	101.280
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	148.098	160.811	175.777
(4) Current Liabilities
(a) Short term borrowings	39.895	39.916	39.920
(b) Trade payables	57.194	52.730	48.448
(c) Other current liabilities	13.231	10.503	2.017
(d) Short-term provisions	1.248	1.030	0.914
Total Current Liabilities (4)	111.568	104.179	91.299
TOTAL	306.552	308.300	306.484
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	92.194	86.911	71.520
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.642	0.642	0.642
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	18.777	22.902	33.188
(e) Other Non-current assets	5.503	7.338	20.923
Total Non-Current Assets	117.116	117.793	126.273
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	51.459	59.812	57.515
(c) Trade receivables	60.404	53.951	37.660
(d) Cash and cash equivalents	2.008	1.453	3.300
(e) Short-term loans and advances	75.565	75.291	1.810
(f) Other current assets	0.000	0.000	79.926
Total Current Assets	189.436	190.507	180.211
TOTAL	306.552	308.300	306.484

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	276.876	232.206	189.424
		Other Income	0.076	1.605	0.289
		TOTAL (A)	276.952	233.811	189.713
Less	EXPENSES
		Cost of material consumed	142.358	135.937
		Purchases of traded goods	2.785	1.289
		Increase/ (Decrease) in inventories of finished goods, work in progress and traded goods	13.573	(4.017)
		Employee benefit expenses	24.860	21.545
		Power, Fuel and Water Charges	18.307	16.664
		Stores, Consumable, Spares repairs and maintenance	13.430	11.517
		Travelling, conveyance, Sales Commission	2.167	3.008
		Other Expenses	26.540	21.308
		Exceptional items	2.200	0.000
		TOTAL (B)	246.220	207.251	163.339
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		30.732	26.560	26.374
Less	FINANCIAL EXPENSES (D)		17.843	15.247	15.262
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.889	11.313	11.112
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.847	6.601	6.052
	PROFIT BEFORE TAX (E-F) (G)		5.042	4.712	5.060
Less	TAX (H)		1.485	0.752	0.268
	PROFIT AFTER TAX (G-H) (I)		3.557	3.960	4.792
	EARNINGS IN FOREIGN CURRENCY
		Export at FOB Value	69.930	50.161	37.126
	IMPORTS
		Raw Materials	17.595	13.968
		Capital Goods	1.394	0.000
	TOTAL IMPORTS		18.989	13.968	NA
	Earnings Per Share (Rs.)		1.24	1.38	2.39

Particulars	31.03.2013
Sales Turnover (Approximately)	290.000

The above information has been parted by Mr. Nagraj [Accounts Department]

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.28	1.69	2.53
Net Profit Margin (PBT/Sales)	(%)	1.82	2.03	2.67
Return on Total Assets (PBT/Total Assets}	(%)	1.65	1.57	1.65
Return on Investment (ROI) (PBT/Networth)		0.11	0.11	0.13
Debt Equity Ratio (Total Debt/Networth)		2.65	3.07	2.76
Current Ratio (Current Asset/Current Liability)		1.70	1.83	1.97

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	No
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	--
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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10115598	05/07/2008	116,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANACE BRANCH, THE ARCADE, WORLD TRA DE CENTER, CUFFE PARADE, COLOBA, MUMBAI - 400005, MAHARASHTRA, INDIA	A43106889
2	10006775	10/05/2006	790,000.00	SUNDARAM FINANCE LIMITED	21 PATULLOS ROAD, CHENNAI - 600002, TAMILNADU, INDIA	A01353069
3	90093378	07/11/2005 *	20,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, WORLD TRADE CENTRE; CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	-
4	90091565	02/06/2001	33,000,000.00	STATE BANK OF INDIA	BALIVES BRANCH, SOLAPUR, MAHARASHTRA, INDIA	-
5	90088309	29/07/2000	19,800,000.00	STATE BANK OF INDIA	BALIVES BRANCH, SOLAPUR, MAHARASHTRA, INDIA	-
6	90091312	07/11/2005 *	45,000,000.00	STATE BANK OF INDIA	BALIVES BRANCH, SOLAPUR, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
Deposits from Others (Repayable for more than one year)	4.114	2.263
Total	4.114	2.263

CORPORATE INFORMATION:

Subject is a public company domiciled in Indian and incorporates under the provisions of the Companies Act, 1956. Its shares are not listed. This company is closely held Limited Company. The company is engaged in the manufacturing and selling Bulk Drugs and Intermediates, Fine chemicals (APIs). The company caters to both domestic and international market.

COMPANY PERFORMANCE

The net Sale of the Company are increased from Rs. 232.200 Millions to Rs. 276.800 Millions approximately, which shows remarkable performance in such competitive scenario. After meeting all the expenses the company posted a Cash Profit and Net Profit at Rs. 12.887 Millions and Rs.5.040 Millions respectively. Decrease in Net Profit is due to higher depreciation and interest cost.

However the Directors pose a sincere confidence in performing well in the years to come.

FIXED ASSETS:

· Land

Land Development

Agricultural Land

Building

Plant and Machinery

Electrical Installation

Office Furniture and Fixture

Vehicles

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. 61.52
UK Pound	1	Rs. 94.99
Euro	1	Rs. 81.63

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	NO
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--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.