MIRA INFORM REPORT

Report Date :

06.02.2013

IDENTIFICATION DETAILS

Name :	MICRO INKS LIMITED (w.e.f.  03.03.2004)
Formerly Known As :	HINDUSTAN INKS AND RESINS LIMITED
Registered Office :	Bilakhia House, Muktanand Marg, Chala, Vapi – 396191, Gujarat
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	13.11.1991
Com. Reg. No.:	04-016598
Capital Investment / Paid-up Capital :	Rs. 248.721 Millions
CIN No.: [Company Identification No.]	U24220GJ1991PLC016598
TAN No.: [Tax Deduction & Collection Account No.]	SRTM01621E
PAN No.: [Permanent Account No.]	AAACH7063F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Printing Inks, Resins, Varnishes, Pigments, Flush Colors.
No. of Employees :	1500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (61)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 32000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track record. Financial position of the company appears to be sound. Trade relations are reported as fair. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. Note : Due to technical error in the government sites, we hereby provide you the report with available details and we would provide you with a on the same company as soon as we get the additional information.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A1+ (Commercial Paper)
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	22.12.2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Hitesh Parikh
Designation :	Finance Head
Contact No.:	91-260-3052100
Date :	05.02.2013

LOCATIONS

Registered/ Corporate Office :	Bilakhia House, Muktanand Marg, Chala, Vapi – 396191, Gujarat, India
Tel. No.:	91-260-2462811 / 2460284 / 2460280 / 3052100
Fax No.:	91-260-2463932 / 2463733 / 3052125
E-Mail :	jagrutiparikh@microinks.com info@microinks.com hitesh.parikh@microinks.com alpesh.chahiyara@microinks.com
Website :	www.microinks.com
Area :	5000 sq. ft.
Location :	Owned
Branch Office :	Located At: Mumbai Kolkata Ahmedabad Chennai Bangalore Baroda Noida Secunderabad
Marketing Headquarters/ Sales & Support - International Business Division :	907,Windfall Sahar Plaza, J B Nagar, Andheri (East), Mumbai - 400059, Maharashtra, India
Tel No.:	91-22-28360201/ 28364313
Fax No :	91-22-28379660/ 28222222
E-mail :	ibd@microinks.com
Western Region :	Located At: Mumbai Indore Ahmedabad Nagpur Baroda Pune
Northern region :	Located At: Noida Ludhiana Kanpur
Southern Region :	Located At: Chennai Bangalore Hyderabad Sivakasi
Eastern Region :	9 Transport Depot Road, Kolkata-700088, West Bengal, India
Tel No.:	91-33-24496134-36
Fax No :	91-33-24495051

DIRECTORS

AS ON 05.05.2012

Name :	Mrs. Ashwani Kumar Bhardwaj
Designation :	Managing Director
Address :	House No. 34, Chala Park, Housing Society, Daman Road, Chala, Vapi - 396191, Valsad, Gujarat, India
Date of Birth/Age :	18.03.1958
Qualification :	B.Sc. MBA
Date of Appointment :	31.01.2012
PAN No.:	AFBPB0925K
Din No.:	01515689
Name :	Mr. Ursula G. Borgmann
Designation :	Director appointed in casual vacancy
Address :	Besides Secretariat House, Opposite Chief of Police Bungalow, Daman – 396210
Date of Birth/Age :	07.09.1955
Qualification :	Graduate in Chemical Engineering
Date of Appointment :	03.02.2006
Din No.:	01541193
Name :	Mr. Hasmukh S. Shah
Designation :	Director
Address :	15, Dhanushya Society, Sama Road, Vadodara – 390008, Gujarat, India
Date of Birth/Age :	04.10.1934
Qualification :	MA (Economics)
Date of Appointment :	27.06.2000
Din No.:	00152195
Voter ID No.:	HDG5241344
Name :	Mr. Mansingh L. Bhakta
Designation :	Director
Address :	4, Sagar Villa, 38 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	03.12.1931
Qualification :	LLB. SOLICITOR
Date of Appointment :	27.06.2000
Din No.:	00001963
Voter ID No.:	MT/04/024/198444
Name :	Mr. Pradip N. Khandwalla
Designation :	Director
Address :	B/101, Jupiter Tower, Opposite Samkit Bungalows, Bodakdev, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	18.02.1940
Qualification :	CA, MBA, USA Ph.D, USA
Date of Appointment :	13.01.2005
Din No.:	00064643
Name :	Mr. Heinrich W. Ringer
Designation :	Additional Director
Address :	Besides Secretariat House, Opposite Chief of Police Bungalow, Daman – 396210
Date of Birth/Age :	21.12.1994
Qualification :	MBA
Date of Appointment :	29.07.2010
Din No.:	01540491
Name :	Mr. Kadankote Kannan Unni
Designation :	Additional Director
Address :	207, Marigold, 236, Raheja Enclave, Race Course Road, Coimbatore – 641018, Tamilnadu, India
Date of Birth/Age :	15.07.1941
Qualification :	B.Sc.(Agriculture)
Date of Appointment :	01.05.2010
Din No.:	29.07.2010
Voter ID No.:	MT208/03/06/210501

KEY EXECUTIVES

Name :	Mr. Hitesh Parikh
Designation :	Finance Head
Name :	Alpesh Mansukhlal Chaniyara
Designation :	Secretary
Address :	Block No. 2, Shree Co-operative Housing Society Vapi - Daman Road, Chala, Vapi - 396191, Valsad, Gujarat, India
Date of Birth/Age :	13.06.1977
Date of Appointment :	01.06.2011
PAN No.:	AEHPC5783R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOT AVAILABLE

AS ON 09.05.2012

Names of Allottees	No. of Shares
MHM Holding Company, Germany	939

AS ON 05.05.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	97.86
Bodies corporate	0.47
Other top fifty shareholders	0.27
Others	1.40
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Printing Inks, Resins, Varnishes, Pigments, Flush Colors.

Products :

Product Description	Item Code No. (ITC Code)
Printing Inks	32151
Resins and Varnished	3909
Pigments/Flush Colours	3204.17

PRODUCTION STATUS AS ON 31.12.2010

Particulars	Unit	Installed Capacity	Actual Production
Printing Inks	MT	203000	141483
Resins and Varnishes	MT	55600	35102
Pigments / Flush Colours	MT	46500	4657
Wire Enamels	MT	3450	3064
Press Chemicals	MT	5000	1667
By Products	MT	-	134

GENERAL INFORMATION

Customers :

Wholesaler, Retailers

No. of Employees :

1500 (Approximately)

Bankers :

Ø DBS Bank Limited, Credit Control Unit, 3rd Floor, Fort House, Dr. D. N. Road, Fort, Mumbai – 400001, Maharashtra, India

Ø Standard Chartered Bank, M.G. Road, Fort, Mumbai, Maharashtra, India

Ø Bank of India, Mumbai Large Corporate office Branch, 70-80, M.G. Road, Fort, Mumbai -400001, Maharashtra, India

Ø Axis Bank Limited, Trishul 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad – 380006, Gujarat, India

Ø State Bank of India

Ø ICICI Bank Limited

Ø The Hong Kong and Shanghai Banking Corporation Limited

Ø Australia and New Zealand Banking Group Limited, Singapore

Ø Citi Bank

Ø Nova Scotia Bank

Ø BNP Scotia Bank

Facilities :

Secured Loans	As on 31.12.2011 Rs. in millions	As on 31.12.2010 Rs. in millions
Foreign currency loans banks secured	1579.805	1755.173
Working capital loans banks secured	440.813	282.438
	2020.618	2037.611

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra, India
Pan No.:	AACFD4815A
Holding Company :	Ø MHM Holding GmbH, Germany
Fellow Subsidiaries :	Ø Michael Huber M ü nchen GmbH, Germany Ø Hostmann-Steinberg GmbH, Germany Ø Stehlin + Hostag AG, Switzerland Ø Hostmann-Steinberg Limited, Canada Ø Huber Chile S.A., Chile Ø Huber Italia S.p.A., Italy Ø Huber Inks (Shenzhen) Limited, China Ø Info-Lab Limited, Ireland Ø Hostmann-Steinberg South Africa (Pty.) Limited, South Africa Ø PT Huber Inks Indonesia, Indonesia Ø Hostmann-Steinberg Tintás Graficás Brasil Ltda., Brazil Ø Michael Huber Austria GmbH, Austria Ø Glietsmann Security Inks GmbH, Germany Ø Graphocolor Limited, Ireland Ø Hostmann-Steinberg Eesti Oü, Estonia Ø Huber France S.A.S., France Ø Hostmann-Steinberg Benelux B.V., Netherlands Ø Hostmann-Steinberg RUS OOO, Russia Ø Michael Huber Printing Inks S.L.R., Romania Ø Michael Huber Polska sp. z.o.o., Poland Ø Michael Huber CZ s.r.o., Czech Republic Ø Michael Huber Hungaria Kft, Hungary Ø Stehlin Hostag Ink UK Limited, United Kingdom Ø Tipolit S.A., Spain Ø Huber Bulgaria EOOD, Bulgaria Ø Hostmann-Steinberg Latvija, Latvija
Subsidiaries :	Ø Hostmann-Steinberg Inc., USA Ø Micro Inks (Singapore) Pte. Ltd., Singapore Ø Hostmann – Steinberg Australia Pty. Limited, Austria (w.e.f. December 1, 2010) Ø Hostmann-Steinberg New Zealand Limited, New Zealand

CAPITAL STRUCTURE

AS ON 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs.10/- each	Rs. 300.000 Millions
5,500,000	Preference Shares	Rs.100/- each	Rs. 550.000 Millions
	Total		Rs. 850.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24,872,061	Equity Shares	Rs.10/- each	Rs. 248.721 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		248.721	248.720	248.720
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7767.099	6572.705	5327.750
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8015.820	6821.425	5576.470
LOAN FUNDS
1] Secured Loans		2020.618	2037.611	1194.890
2] Unsecured Loans		1285.262	357.680	400.000
TOTAL BORROWING		3305.880	2395.291	1594.890
DEFERRED TAX LIABILITIES		334.630	348.857	364.580
TOTAL		11656.330	9565.573	7355.940
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3156.937	3215.803	3103.170
Capital work-in-progress		479.847	78.657	244.190
INVESTMENT		1957.231	1812.102	971.190
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2675.963	2958.649	1983.480
	Sundry Debtors	5130.316	3659.163	3317.630
	Cash & Bank Balances	434.320	366.656	104.680
	Other Current Assets	72.571	86.811	0.000
	Loans & Advances	694.226	467.517	510.280
Total Current Assets		9007.396	7538.796	5916.070
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2209.676	2257.433	2129.110
	Other Current Liabilities	439.503	568.092	372.910
	Provisions	295.902	254.260	196.660
Total Current Liabilities		2945.081	3079.785	2698.680
Net Current Assets		6062.315	4459.011	3217.390
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		11656.330	9565.573	7355.940

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	21075.505	17296.951	13764.810
		Other Income	40.110	44.291	40.030
		TOTAL (A)	21115.615	17341.242	13804.840
Less	EXPENSES
		Consumption materials changes inventories	14960.180	11933.657
		Manufacturing service costs	1016.842	885.605
		Employee related expenses	714.921	648.056
		Administrative selling other expenses	1434.641	1408.214
		TOTAL (B)	18126.584	14875.532	11659.020
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2989.031	2465.710	2145.820
Less	FINANCIAL EXPENSES (D)		615.512	90.027	160.670
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2373.519	2375.683	1985.150
Less/ Add	DEPRECIATION/ AMORTISATION (F)		366.363	373.010	485.670
	PROFIT BEFORE TAX (E-F) (G)		2007.156	2002.673	1499.480
Less	TAX (H)		638.773	584.278	373.990
	PROFIT AFTER TAX (G-H) (I)		1368.383	1418.395	1125.490
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2760.132	2015.178	1564.270
Less	APPROPRIATIONS
		Proposed Dividend	149.232	149.232	149.230
		Provision for Dividend Distribution Tax on Proposed Dividend	24.786	24.209	25.360
		General Reserve	150.000	500.000	500.000
	BALANCE CARRIED TO THE B/S		3804.497	2760.132	2015.170
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	10930.640	9014.510	6761.660
	IMPORTS
		Raw Materials	6353.590	5985.400	3948.020
		Stores & Spares	12.570	8.650	11.390
		Capital Goods	83.510	39.690	5.780
		Goods Traded	11.580	5.270	6.280
	TOTAL IMPORTS		6461.250	6039.010	3971.470
	Earnings Per Share (Rs.)		55.02	57.03	45.26

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	6.48	8.18	8.15
Net Profit Margin (PBT/Sales)	(%)	9.52	11.58	10.89
Return on Total Assets (PBT/Total Assets}	(%)	16.50	18.62	16.63
Return on Investment (ROI) (PBT/Networth)		0.25	0.29	0.27
Debt Equity Ratio (Total Debt/Networth)		0.41	0.35	0.29
Current Ratio (Current Asset/Current Liability)		3.06	2.45	2.19

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.12.2011	31.12.2010	31.12.2009
	(Rs. In Millions)
Creditors due small micro enterprises	10.186	13.274	15.520
Creditors due others	2199.490	2244.159	2113.590
Total	2209.676	2257.433	2129.110

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	Yes
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	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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.12.2011	31.12.2010
	(Rs. In Millions)
Foreign currency loans banks unsecured	1285.262	357.680
Total	1285.262	357.680

PERFORMANCE REVIEW:

In the year 2011, the Company achieved a milestone turnover of Rs. 21,965 million and Consolidated turnover of Rs. 25,958 million.

Consolidated Net Sales grew by 28% and stood at Rs. 25,069 million led by 15% growth in domestic market, 2% (in dollar terms) growth in US market, 18% growth in Rest of the World market (excluding USA, AUS, NZ, huber group and India), 30% growth in revenue from huber group worldwide.

OUTLOOK:

Indian Economy has performed relatively well on the backdrop of weak global economic environment. On a continuing trend, the growth rate of the company has been positive in the current year as well.

However, the global economy continues to be on a weak trend, especially with Europe and North America performing flat to negative growth rate and the Middle East with political upheavals, the industry may face a flat growth rate in these regions. The improvements are likely to be expected by end of the year with no significant upturn. The silver lining is in Asian and Australian markets, which shows a favorable growth rate. The Company while supporting the markets in Europe and NAFTA is focusing on the Asian and Australian markets to maintain its growth path.

CONTINGENT LIABILITIES NOT PROVIDED FOR, IN RESPECT OF:

(Rs. In Millions)

Particulars	31.12.2011	31.12.2010
Counter Guarantees given to banks	159.110	103.120
Corporate Guarantees given to banks on behalf of a Subsidiary Company [USD 12.800 million (As at 31/12/2010, USD 10.00 million)] [Amount outstanding USD 5.30 million, Rs.248.480 million (As at 31/12/2010, USD 5.000 million, Rs.223.550 million)]	679.810	447.100
Income Tax, Fringe Benefit Tax, Sales Tax, Central Excise and Service Tax demands:
in respect of matters which are contested by the Company	1276.900	62.66
in respect of matters decided in Company's favour where the department is in further appeal	349.640	342.600
Cases filed against the Company in respect of Labour Laws	3.570	2.430
Bills Discounted	221.260	595.120
Other Matters	4.970	4.770

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	L24220GJ1991PLC016598
Name of the company	MICRO INKS LIMITED
Address of the registered office or of the principal place of business in India of the company	Bilakhia House, Muktanand Marg, Cbala, Vapi – 396191, Gujarat, India Eamil: hitesh.parikh@microinks.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10205031
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	DBS Bank Limited, Credit Control Unit, 3rd Floor, Fort House, Dr. D. N. Road, Fort, Mumbai – 400001, Maharashtra, India Email:vikramrao@dbs.com
Nature of instrument creating charge	Modification of Charge by way of reduction from USD 10.0 Million to USD 6.0 Mio equivalent INR 277.8 Million, actual term loan availed by the Company, as per the letter of the DBS Bank dated February 28, 2012.
Date of instrument Creating the charge	28.02.2012
Amount secured by the charge	Rs. 277.800 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Remain Same Terms of Repayment Remain Same Margin Remain Same Extent and Operation of the charge Modification of Charge by way of reduction from Term Loan of USD 10.0 Mio equivalent INR 463.0 Million reduced to USD 6.0 Mio equivalent INR 277.8 Mio actual Term loan availed by the Company from DBS Bank Ltd., as per the letter of the Bank Dated February 28, 2012
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Remain Same
Date of last modification prior to the present modification	23.03.2010
Particulars of the present modification	Modification of charge by way of reduction from Term Loan of USD 10.0 Mio equivalent INR 463.0 Million reduced to USD 6.0 Mio equivalent INR 277.8 Mio actual Term loan availed by the Company from DBS Bank Ltd., as per the letter of the Bank Dated February 28, 2012.

FIXED ASSETS

Ø Free Hold Land

Ø Lease Hold Land

Ø Buildings

Ø Plant and Machineries

Ø Laboratory Equipments

Ø Wind Mills

Ø Computers

Ø Furniture and Fittings

Ø Vehicles

Ø Intangible Assets (Software)

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. 53.29
UK Pound	1	Rs. 83.97
Euro	1	Rs. 71.88

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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
TOTAL		61

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.