MIRA INFORM REPORT

Report Date :

10.12.2013

IDENTIFICATION DETAILS

Name :	TREADSDIRECT LIMITED
Formerly Known As :	TREADSDIRECT (INDIA) LIMITED
Registered Office :	2000, Trichy Road, Singanallur, Coimbatore - 641005, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	07.07.2010
Com. Reg. No.:	18-016201
Capital Investment / Paid-up Capital :	Rs. 47.500 Millions
CIN No.: [Company Identification No.]	U25114TZ2010PLC016201
Legal Form :	A Closely held Public limited liability company.
Line of Business :	Providing retreading solution of the transport industries.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 1064888
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Over financial position of the company appears to be strong and healthy. Company is operating on its owned funds. Trade relations are reported as fair. Business is active. Payment terms are reported to regular and as per commitment. The company can be considered normal 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.

ECGC Country Risk Classification List – June 30, 2012

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

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	LT – Fund based Facility: A
Rating Explanation	Adequate credit quality and average credit risk
Rating	ST – Fund based Facility: A1
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	February, 2013

LOCATIONS

Registered/ Head Office :	2000, Trichy Road, Singanallur, Coimbatore - 641005, Tamilnadu, India
Tel. No.:	91-422-4321000
Fax No.:	91-422-4321015
E-Mail :	secretarial@tradesdirect.com info@in.elgirubber.com info@in.treadsdirect.com
Website :	www.treadsdirect.com
Factory :-	Located at:- v Korkadu Village, Puducherry v Kottayi, Plakkad

DIRECTORS

AS ON 14.05.2013

Name :

Mr. Sudarsan Varadaraj

Designation :

Managing director

Address :

227/1 Tea Estates, Race Course, Coimbatore – 641018, Tamilnadu, India

Date of Birth/Age :

22.01.1958

Date of Appointment :

09.07.2011

Voter ID No.:

HBW/0951384

DIN No.:

00133533

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	U02511TZ1970PLC000611	ELGI RUBBER PRODUCTS LIMITED	Director	31/03/2008	21/04/1984	-	Amalgamated	NO
2	L02511TZ1981PLC010010	ELGI RUBBER COMPANY LIMITED	Managing director	12/03/1988	12/03/1988	-	Amalgamated	NO
3	L15314TN1961PLC004674	KLRF LIMITED	Director	05/10/1990	05/10/1990	-	Active	NO
4	U31200TZ1991PLC003193	GEO RENEWABLE POWER LIMITED	Director	21/03/1991	21/03/1991	-	Amalgamated	NO
5	U29253TZ1981PLC001104	ELGI ULTRA INDUSTRIES LIMITED	Director	18/08/1992	18/08/1992	-	Active	NO
6	L17111TZ1962PLC001200	SUPER SPINNING MILLS LIMITED	Director	13/03/1993	13/03/1993	-	Active	NO
7	L29120TZ1960PLC000351	ELGI EQUIPMENTS LIMITED	Director	18/11/1993	18/11/1993	-	Active	NO
8	U31200TZ1963PLC000487	ELGI ELECTRIC AND INDUSTRIES LIMITED	Director	15/07/1996	15/07/1996	17/09/2009	Active	NO
9	U72200TZ1996PLC009971	LRG TECHNOLOGIES LIMITED	Director	19/07/1996	19/07/1996	-	Active	NO
10	U51909TZ1997PTC007965	TYRE POINT PRIVATE LIMITED	Director	10/06/1997	10/06/1997	-	Active	NO
11	L02511TZ1998PLC008630	TREADSDIRECT LIMITED (AMALGAMATED	Managing director	01/04/2008	02/11/1998	-	Amalgamated	NO
12	U29220KA1986PTC007449	FESTO CONTROLS PRIVATE LIMITED	Director	16/04/2000	16/04/2000	-	Active	NO
13	L25119TZ2006PLC013144	ELGI RUBBER COMPANY LIMITED	Managing director	01/01/2011	16/10/2006	-	Active	NO
14	U26941TZ1990PTC002672	ACHUTHA VULCANISING CEMENT PRIVATE LIMITED	Director	28/09/2007	28/08/2007	-	Amalgamated	NO
15	U25111TZ2003PLC017268	TITAN TYRECARE PRODUCTS LIMITED	Director	30/09/2009	09/07/2009	-	Active	NO
16	U25114TZ2010PLC016201	TREADSDIRECT LIMITED	Managing director	09/07/2011	07/07/2010	-	Active	NO

Name :

Samy Ramasamy Venkatachalam

Designation :

Director

Address :

G 10, B Block, Pachiraja Apartment, Puliakulam Road, Coimbatore – 641045, Tamilnadu, India

Date of Birth/Age :

03.03.1957

Date of Appointment :

09.07.2011

Voter ID No.:

TN/20/106/0190079

DIN No.:

01683083

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	U02511TZ1970PLC000611	ELGI RUBBER PRODUCTS LIMITED	Director	06/10/2000	06/10/2000	-	Amalgamated	NO
2	U25111TZ2003PLC017268	TITAN TYRECARE PRODUCTS LIMITED	Director	04/08/2003	04/08/2003	-	Active	NO
3	L02511TZ1998PLC008630	TREADSDIRECT LIMITED(AMALGAMATED	Director	22/09/2007	23/07/2007	-	Amalgamated	NO
4	U26941TZ1990PTC002672	ACHUTHA VULCANISING CEMENT PRIVATE LIMITED	Director	28/09/2007	28/08/2007	-	Amalgamated	NO
5	U51909TZ1997PTC007965	TYRE POINT PRIVATE LIMITED	Director	30/09/2010	27/01/2010	-	Active	NO
6	L25119TZ2006PLC013144	ELGI RUBBER COMPANY LIMITED	Director	30/08/2010	19/05/2010	06/01/2011	Active	NO
7	U25114TZ2010PLC016201	TREADSDIRECT LIMITED	Director	09/07/2011	07/07/2010	-	Active	NO

Name :

Muthuswamy Doraiswami Selvaraj

Designation :

Director

Address :

“Surya” 33, 34, Mayflower Avenue, Sowripalayam Road, Coimbatore – 641028, Tamilnadu, India

Date of Birth/Age :

08.12.1953

Date of Appointment :

09.07.2011

Voter ID No.:

TN/20/106/0081270

DIN No.:

00001608

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	U67120TZ1994PTC005420	SURYAVARADH SECURITIES PRIVATE LIMITED	Director	10/10/1994	10/10/1994	-	Active	NO
2	L02511TZ1981PLC010010	ELGI RUBBER COMPANY LIMITED	Director	30/01/2001	30/01/2001	-	Amalgamated	NO
3	L17111TZ1953PLC000248	VTX INDUSTRIES LIMITED	Director	01/11/2004	01/01/2004	31/07/2010	Active	NO
4	U02511TZ1970PLC000611	ELGI RUBBER PRODUCTS LIMITED	Director	29/01/2005	29/01/2005	-	Amalgamated	NO
5	L02511TZ1998PLC008630	TREADSDIRECT LIMITED(AMALGAMATED	Director	22/09/2007	23/07/2007	-	Amalgamated	NO
6	U26941TZ1990PTC002672	ACHUTHA VULCANISING CEMENT PRIVATE LIMITED	Director	28/09/2007	28/08/2007	-	Amalgamated	NO
7	U25111TZ2003PLC017268	TITAN TYRECARE PRODUCTS LIMITED	Director	10/09/2010	01/07/2010	-	Active	NO
8	U25114TZ2010PLC016201	TREADSDIRECT LIMITED	Director	09/07/2011	07/07/2010	-	Active	NO
9	L25119TZ2006PLC013144	ELGI RUBBER COMPANY LIMITED	Director	14/01/2011	06/01/2011	-	Active	NO
10	AAA-0132	MDS CORPORATE SERVICES LLP	Designated Partner	20/08/2009	20/08/2009	-	Active	NO

Name :

Mr. Thangavel Ashok Anand

Designation :

Director

Address :

20 Chinnaaiyavu Thevar Layotu, Sowripalayam, Coimbatore – 641028, Tamilnadu, India

Date of Birth/Age :

25.12.1952

Date of Appointment :

09.07.2011

DIN No.:

00002353

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	U31200TZ1991PLC003193	GEO RENEWABLE POWER LIMITED	Director	31/07/1998	31/07/1998	-	Amalgamated	NO
2	L02511TZ1981PLC010010	ELGI RUBBER COMPANY LIMITED	Whole-time director	16/10/2000	16/10/2000	06/06/2008	Amalgamated	NO
3	U72200TZ1996PLC009971	LRG TECHNOLOGIES LIMITED	Director	22/09/2006	22/05/2006	-	Active	NO
4	L02511TZ1998PLC008630	TREADSDIRECT LIMITED(AMALGAMATED	Director	30/08/2008	06/06/2008	-	Amalgamated	NO
5	U25114TZ2010PLC016201	TREADSDIRECT LIMITED	Director	09/07/2011	06/01/2011	-	Active	NO

Name :

Mr. Muthuswamy John Edward

Designation :

Director

Address :

I Sri Andal Layout Iyer Hospital Road, Singanallur, Coimbatore – 641005, Tamilnadu, India

Date of Birth/Age :

06.01.1947

Date of Appointment :

09.07.2011

DIN No.:

00002365

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	U72200TZ1996PLC009971	LRG TECHNOLOGIES LIMITED	Director	22/09/2006	01/04/2006	-	Active	NO
2	L02511TZ1981PLC010010	ELGI RUBBER COMPANY LIMITED	Director	30/08/2008	22/05/2006	-	Amalgamated	NO
3	L25119TZ2006PLC013144	ELGI RUBBER COMPANY LIMITED	Director	16/10/2006	16/10/2006	06/01/2011	Active	NO
4	L02511TZ1998PLC008630	TREADSDIRECT LIMITED(AMALGAMATED	Additional director	28/03/2008	28/03/2008	06/06/2008	Amalgamated	NO
5	U25114TZ2010PLC016201	TREADSDIRECT LIMITED	Director	09/07/2011	06/01/2011	-	Active	NO

Name :

Mr. Rangarajan Gopalan

Designation :

Whole-time director

Address :

Sarojparasanthi 1A-11 Sri Ram Layout, Sai Baba Colony, Coimbatore – 641011, Tamilnadu, India

Date of Birth/Age :

27.08.1951

Date of Appointment :

09.07.2011

DIN No.:

00002666

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	U02511TZ1970PLC000611	ELGI RUBBER PRODUCTS LIMITED	Director	22/05/2006	22/05/2006	Amalgamated	NO
2	U25114TZ2010PLC016201	TREADSDIRECT LIMITED	Whole-time director	09/07/2011	06/01/2011	Active	NO

KEY EXECUTIVES

Name :	C.N. Paramasivam
Designation :	Company Secretary
Address :	“Surya” 33, Mayflower Avenue, Behind Senthil Nagar, Sowripalayam Road, Coimbatore – 641028, Tamilnadu, India

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 14.05.2013

Names of Shareholders	No. of Shares
Elgi Rubber Company Limited, India	4749994
Sudarsan Varadaraj	1
M.D. Selvaraj	1
K. Gnanasekaran	1
S R Venkatachalam	1
T. Ashokanand	1
M John Edward	1
Total	4750000

AS ON 14.05.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing retreading solution of the transport industries.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	State Bank of India, 1443, Trichy Road, P.B. No. 3902, Coimbatore – 641018, Tamilnadu, India

Banking Relations :	--
Auditors :
Name :	Reddy Goud and Janardhan Chartered Accountants
Address :	104, Embassy Center, 11, Cresent Road, Bangalore – 560001, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AABFR0092C
Holding Company :	Elgi Rubber Company Limited [U25119TZ2006PLC013144]
Fellow Subsidiary Company :	· Titan Tyrecare Products Limited · Treadsdirect Limited, Sri Lanka · Midwest USA
Other related parties :	· Elgi Ultra Industries Limited · Elgi Equipments Limited · Ellargi and Co

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,750,000	Equity Shares	Rs.10/- each	Rs. 47.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	47.500	47.500	47.500
(b) Reserves & Surplus	218.722	158.560	40.459
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	266.222	206.060	87.959
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	172.537	280.759	435.104
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	172.537	280.759	435.104
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	61.908	38.442	117.326
(c) Other current liabilities	27.420	25.005	18.480
(d) Short-term provisions	31.870	26.467	18.170
Total Current Liabilities (4)	121.198	89.914	153.976
TOTAL	559.957	576.733	677.039
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.021	11.942	13.663
(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	0.006	0.006	0.006
(c) Deferred tax assets (net)	5.305	8.205	1.061
(d) Long-term Loan and Advances	18.469	14.123	5.364
(e) Other Non-current assets	6.872	6.871	2.427
Total Non-Current Assets	46.673	41.147	22.521
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	260.825	300.994	355.905
(c) Trade receivables	182.794	179.265	199.535
(d) Cash and cash equivalents	25.666	21.761	34.170
(e) Short-term loans and advances	43.215	32.920	64.595
(f) Other current assets	0.784	0.646	0.313
Total Current Assets	513.284	535.586	654.518
TOTAL	559.957	576.733	677.039

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	1756.475	1943.175	447.382
		Other Income	25.481	23.663	2.987
		TOTAL (A)	1781.956	1966.838	450.369
Less	EXPENSES
		Cost of materials consumed	719.280	1135.949	387.405
		Purchases of stock-in-trade	581.034	294.896	0.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	18.757	16.848	0.000
		Employee benefit expense	82.483	114.065	0.000
		Others Expense	213.644	227.028	0.000
		Exceptional Items	(0.289)	0.000	0.000
		TOTAL (B)	1614.909	1788.786	387.405
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		167.047	178.052	62.964
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		167.047	178.052	62.964
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.851	2.094	0.487
	PROFIT BEFORE TAX (E-F) (G)		165.196	175.958	62.477
Less	TAX (H)		55.202	57.857	22.017
	PROFIT AFTER TAX (G-H) (I)		109.994	118.101	40.460
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		158.560	40.460	--
Less	APPROPRIATIONS
		Transfer to General Reserve	10.999	--	--
		Dividend	23.750	--	--
		Tax on Dividend	3.853	--	--
		Proposed Dividend	19.000	--	--
		Dividend Distribution Tax on proposed dividend	3.229	--	--
	BALANCE CARRIED TO THE B/S		207.723	158.561	40.460
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	.221.944	290.714	63.546
	IMPORTS
		Raw Materials	NA	122.724	25.404
	Earnings Per Share (Rs.)		23.16	24.86	33.84

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	6.17	6.00	8.98
Net Profit Margin (PBT/Sales)	(%)	9.40	9.06	13.97
Return on Total Assets (PBT/Total Assets}	(%)	29.78	30.96	9.24
Return on Investment (ROI) (PBT/Networth)		0.62	0.85	0.71
Debt Equity Ratio (Total debt/Networth)		NA	NA	NA
Current Ratio (Current Asset/Current Liability)		4.24	5.96	1.12

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last one year	Yes
12]	Profitability for last one year	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	--
23]	Banking Details	Yes
24]	Banking facility details	No
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	Yes
34]	External Agency Rating, if available	yES

FIXED ASSETS:

Ø Land

Ø Building

Ø Plant and Machinery

Ø Computers

Ø Furniture and Fittings

Ø 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 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.61.18
UK Pound	1	Rs.101.01
Euro	1	Rs.83.82

INFORMATION DETAILS

Information Gathered by :	--
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.