MIRA INFORM REPORT

Report Date :

18.02.2013

IDENTIFICATION DETAILS

Name :	GOA SHIPYARD LIMITED
Registered Office :	Vaddem House, Vaddem, Vasco Da Gama, Goa – 403802
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.09.1967
Com. Reg. No.:	24-000077
Capital Investment / Paid-up Capital :	Rs.291.0090 Millions
CIN No.: [Company Identification No.]	U63032GA1967GOI000077
TAN No.: [Tax Deduction & Collection Account No.]	BLRG03202D
PAN No.: [Permanent Account No.]	AAACG7569F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Shipbuilders, Ship Repairs and Engineers.
No. of Employees :	1776 (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 25000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a Union Government Company. It is a well established and reputed company having a good track record. There appears dip in the profitability during the current year. However, general financial position of the company seems to be strong. Fundamentals are healthy liquidity position of the company seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for normal business dealings at usual trade terms and condition.

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

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 :	Ms. Munira
Designation :	Accounts Department
Contact No.:	91-22-23738321
Date :	12.02.2013

LOCATIONS

Registered Office/ Unit :	Vaddem House, Vaddem, Vasco Da Gama, Goa – 403 802, India
Tel. No.:	91-832-2512152 (5 Lines)/ 2513954/ 2512359/ 2513943
Fax No.:	91-832-2513870/ 2513943/ 2513260/ 2512148/ 2514232
E-Mail :	contactus@goashipyard.com
Website :	http://www.goashipyard.co.in
Location :	Rented
Unit :	GSL Units II, III and IV, Sancoale Industrial Estate, Zuarinagar – 403726, Goa, India
Mumbai Office:	Mazagon Dock Limited, Dockyard Road, Mumbai – 400010, Maharashtra, India
Tel. No.:	91-22-23738321/ 23738747/ 23738749
Fax No.:	91-22-23738140
E-Mail :	gslmum@vsnl.net
Location :	Rented
Delhi Office:	‘H’ Block, Defence Headquarters, DHQ Post Office, New Delhi-110011, India
Tel. No.:	91-11-23015681
Fax No.:	91-11-23792311

DIRECTORS

(AS ON 26.07.2012)

Name :	Mr. Vineet Bakshi
Designation :	Chairman cum Managing Director
Address :	Shipyard House, Airport Road, Chicalim-403711, Goa, India
Date of Birth/Age :	11.01.1954
Date of Appointment :	01.03.2010
DIN No.:	02960365
Name :	Mr. S Ananthasayanam Sampathikumaran
Designation :	Director
Address :	D2/2 GSL Officesrs’ Residential Enclave, Airport Road, Chicalim-403711, Goa, India
Date of Birth/Age :	09.07.1952
Date of Appointment :	05.11.2003
DIN No.:	00124035
Name :	Mr. Rangila Choudhary
Designation :	Whole Time Director
Address :	131 A Duplex Bunglow Rangavi Estate, Post Airport, Dabolim-403801, Goa, India
Date of Birth/Age :	01.03.1955
Date of Appointment :	19.01.2009
DIN No.:	02554804
Name :	Mr. Om Prakash Bansal
Designation :	Director
Address :	2521, Gover Highland, NIBM Kondhwa, Pune-411048, Maharashtra, India
Date of Birth/Age :	30.09.1945
Date of Appointment :	28.07.2009
DIN No.:	02730246
Name :	Mr. Prem Kumar Kataria
Designation :	Director
Address :	8205 Sector B-IX, Vasant Kunj, New Delhi-11070, India
Date of Birth/Age :	01.05.1960
Date of Appointment :	12.07.2010
DIN No.:	03175921
Name :	Mr. Debashish Chatterjee
Designation :	Director
Address :	Directors Bungalow, IIMK Campus, Kunnamangalam, Kozhikode-673570, Kerala, India
Date of Birth/Age :	05.09.1964
Date of Appointment :	19.01.2011
DIN No.:	02874723
Name :	Mr. Prabhatkumar Suryakant Shrivastava
Designation :	Director
Address :	D-1/1 GSL Officers Residential Enclave, Airport Road, Chicalim-403711, Goa, India
Date of Birth/Age :	11.05.1956
Date of Appointment :	28.04.2011
DIN No.:	03510161
Name :	Dr. Venkata Rao Rambhatla
Designation :	Director
Address :	National Law School of India University Vice Chancellor’s Lodge Nagarbhavi Bangalore 560242, Karnataka, India
Date of Birth/Age :	15.03.1954
Date of Appointment :	20.09.2011
DIN No.:	03386559
Name :	Mr. Muttathil Puthanveetil Muralidharan
Designation :	Director
Address :	31, Lodhi Estate, Max Muller Marg, New Delhi – 110003, India
Date of Birth/Age :	13.02.1953
Date of Appointment :	03.01.2012
DIN No.:	05197530

KEY EXECUTIVES

Name :	Ms. Munira
Designation :	Accounts Department
Name :	Mr. Ramchandra Chimanshet Asukar
Designation :	Secretary
Address :	S-2n, Prime Monarch, Near Vidya Mandir School, Airport Road, Adarsh Nagar, Chicalim-603711, Goa, India
Date of Birth/Age :	01.01.1957
Date of Appointment :	17.06.1991
Pan No.:	ACHPA5931H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 26.07.2012)

Shareholding details file attached.

(AS ON 26.07.2012)

Equity Shares Break – up

Category	Percentage
Government [Central and State]	51.09
Government Companies	47.21
Bodies corporate	1.17
Other top fifty shareholders	0.50
Others	0.03
Total	100.00

BUSINESS DETAILS

Line of Business :

Shipbuilders, Ship Repairs and Engineers.

Products :

Products Description	Item Code No.
Other Vessels, Including Warships and Lifeboats other than Rowing Boats	8906
Maintenance, Repair and Installation Services	9987

Exports :

Products :

Finished Goods

Countries :

· Australia

· Italy

· Netherlands

· Germany

Imports :

Products :

Raw Materials

Countries :

· Australia

· Italy

· Netherland

· Germany

Terms :

Selling :

L/C, Credit and Cheque DD

Purchasing :

L/C, Credit and Cheque DD

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Actual Production
Ship Construction	49201
Ship Repairs	1487
General Engineering	10134
Base and Depot Spares	6821

GENERAL INFORMATION

Customers :	· Indian Navy · Indian Coast Guard · Oil and Natural Gas Corporation · Mormugao Port Trust · Madras Port Trust · Tulkorin Port Trust · Government of Goa · Government of Maldives · Government of Mozambique · Government of Yemen · Exploratory Fisheries Project, Mumbai · Central Institute of Fisheries, Mumbai · Royal Navy of Oman · Andaman and Nicobar Administration · Government of Iran · Central Marine Fisheries Research Institute · Ministry of Home Affaires Government of India
No. of Employees :	1776 (Approximately)
Bankers :	· SBI Consortium Bank, Vasco Da Gama-403802, Goa, India Contact No.: 91-832-2500102 · Bank of Maharashtra · Canara Bank · IDBI Bank · Corporation Bank
Facilities :	--

Banking Relations :	--
Auditors :
Name :	U N Bene and Company Chartered Accountant
Address :	F-1, Gopika M L Furtado Road Opposite ICICI Bank, Margao Goa-403601, India
Tel. No.:	91-832-2730643/ 2725089
Pan No.:	AAAFU2675H
Fax No.:	beneamod@yahoo.co.in

CAPITAL STRUCTURE

(AS ON 26.07.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29100937	Equity Shares	Rs.10/- each	Rs.291.009 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		291.000	291.000	291.009
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6027.300	5400.100	4052.791
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6318.300	5691.100	4343.800
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		112.900	117.500	122.000
TOTAL BORROWING		112.900	117.500	122.000
DEFERRED TAX LIABILITIES		255.800	185.000	56.800
TOTAL		6687.000	5993.600	4522.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4098.300	3602.800	596.300
Capital work-in-progress		0.000	0.000	1573.900
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3559.700	2999.300	3630.700
	Sundry Debtors	1372.400	1484.500	1945.900
	Cash & Bank Balances	4921.200	3200.200	5025.000
	Other Current Assets	16.500	16.500	3.700
	Loans & Advances	1772.000	2205.500	4789.800
Total Current Assets		11641.800	9906.000	15395.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	673.000	1415.700	896.700
	Other Current Liabilities	8028.200	5556.400	10205.800
	Provisions	351.900	543.100	1940.200
Total Current Liabilities		9053.100	7515.200	13042.700
Net Current Assets		2588.700	2390.800	2352.400
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6687.000	5993.600	4522.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2748.800	5151.300	4733.400
		Other Income	412.600	363.700	878.500
		TOTAL (A)	3161.400	5515.000	5611.900
Less	EXPENSES
		Cost of materials consumed	3621.800	5431.700
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(4067.400)	(4758.900)	3481.800
		Employee benefit expense	1106.500	1064.400
		Other expenses	906.800	991.700
		TOTAL (B)	1567.700	2728.900	3481.800
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1593.700	2786.100	2130.100
Less	FINANCIAL EXPENSES (D)		170.600	53.100	110.800
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1423.100	2733.000	2019.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		162.800	85.100	47.000
	PROFIT BEFORE TAX (E-F) (G)		1260.300	2647.900	1972.300
Less	TAX (H)		432.700	886.600	665.100
	PROFIT AFTER TAX (G-H) (I)		827.600	1761.300	1307.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.500	0.200	0.100
Less	APPROPRIATIONS
		Transfer to General Reserve	627.500	1347.000	1001.600
		Proposed Dividend	171.700	355.000	262.000
		Tax on Dividend	28.500	59.000	43.500
	BALANCE CARRIED TO THE B/S		0.400	0.500	0.200
	IMPORTS
		Raw Materials	906.900	1943.800	288.600
		Capital Goods	17.700	211.500	714.000
	TOTAL IMPORTS		924.600	2155.300	1002.600
	Earnings Per Share (Rs.)		29	61	45

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	26.18	31.94	23.29
Net Profit Margin (PBT/Sales)	(%)	45.85	51.40	41.67
Return on Total Assets (PBT/Total Assets}	(%)	8.01	19.60	12.33
Return on Investment (ROI) (PBT/Networth)		0.20	0.47	0.45
Debt Equity Ratio (Total Debt/Networth)		0.02	0.02	0.03
Current Ratio (Current Asset/Current Liability)		1.29	1.32	1.18

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Sundry Creditors	673.000	1415.700
Total	673.000	1415.700

Particulars	31.03.2010 (Rs. In Millions)
Sundry Creditors
Creditors due to small micro enterprises	4.200
Creditor due to others	892.500
Total	896.700

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	Yes
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	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	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	No

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Deferred Payment Liability	112.900	117.500
Total	112.900	117.500
Note: The deferred payment liability payable over 45 years without interest, in equal annual installment of Rs.13.031 Millions. The loan is equated to units of Special Drawings Rights (SDR) as per Inter Governmental Agreement. The loan amount has been revalued at the present rate of SDR (announced by RBI), which is Rs. 669.098 Millions for 1 SDR.

TRADE REFERENCE:

· Madras Port Trust

· Oil and Natural Gas Corporation Limited

· Indian Waist Guard

· Central Industries of Fisheries

FINANCIAL PERFORMANCE:

During the financial year 2011-12, the Company has earned Gross Profit before Depreciation, Interest and Prior Period Adjustment of Rs.1593.700 Millions.

VALUE OF PRODUCTION:

During the financial year 2011-12, the Company has achieved value of production of Rs 6764.300 Millions.

FINANCIAL RESULTS

Profit: During the year 2011-12, the company has earned Profit before Tax of Rs.1260.300 Millions as against Rs.2647.900 Millions in the previous year and made Net Profit after Tax of Rs.827.600 Millions against Rs.1761.300 Millions in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure and Developments:

Shipbuilding is a cyclical industry and depends on a number of variables. Currently, there is a recession in the industry in keeping with worldwide economic condition. Despite competition from international and Indian Shipyards, the Company continues to make efforts to secure shipbuilding/ ship repair orders and maintain the growth momentum.

Infrastructure Modernisation and Diversification

The Modernisation project embarked upon by the Company to meet the future challenges in terms of technology and workload is being implemented in phases at an estimated outlay of Rs.8000.000 Millions. Phases 1 and 2 of the project have since been completed. The facilities created under Phases 1 and 2 and related facilities have been put to use. As part of Phase 3 works, 2 Nos. 45T Level Luffing cranes have been installed over the Repair Berth and Jetty. This will enhance the cranage handling on the Repair Berth and Jetty. The preparatory work is in progress to implement the next Phase of the modernisation plan.

The Company continues to execute stern gear supply orders for other shipyards for Naval vessels. The Company also supplies CPP Spares to the Indian Navy and other Shipyards. The Company is presently executing orders for supply of Glass Reinforced Plastic (GRP) Interceptor Boats to Mazagon Dock Limited, Mumbai, Research Fishing Vessels for Central Marine Fisheries Research Institute, Kochi and Pontoons and Gangways for Indian Navy. The Company continues to provide training on Survival at Sea to ONGC personnel on their training Vessel Samudra Shiksha. The Company has also provided training on CPP Shafting and Controls to overseas customers at GSL.

The second state-of-the-art Damage Control Training Facility AVINASH built at Seamanship School, Kochi has been handed over to the Indian Navy on 30.03.2012. The Company is also constructing a Shore Based Test Facility for Aeronautical Development Agency, Bangalore. This unique test facility is being set up with technology and specialized equipment from Russia at INS Hansa, Goa.

IT INITIATIVES - ERP SYSTEM

The BaaN ERP System implemented across the organization has enabled shortening delivery period of vessels. The ERP System has contributed in overall decrease in shipbuilding time as well as operational costs and has helped the Company to gain a competitive edge. As part of ERP-IT, improvement to the System Hardware, Software, Networks and services has been undertaken on an on-going basis, so as to cater to the increasing workload, with greater speed, transparency, high availability, accuracy with audit trails for future references. These initiatives have greatly improved decision making, reduced our procurement and processing cycle time. Many developments have taken place including e-tendering and employee access to personal.

Marketing and Business Development

The Company has been making efforts to avail the opportunities prevailing in the shipbuilding all over the world. The Company has been making efforts for exporting its products, specially the in-house designed range of Patrol Vessels by participating in various exhibitions, seminars and by giving presentations on shipbuilding ability of the yard and interacting with potential customers of various countries.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building and Other Civil Constructions

· Plant and Machinery

· Slipways

· Fittin Out Jetty

· Capital Dradging

· Furniture, Fittings and Office Equipments

· Motor Cars and Vehicles

· Steam Launches and Boats

NEWS

SHIP CATCHES FIRE AT GOA SHIPYARD

VASCO: A portion of the ship 'Yellowfin', belonging to the fisheries survey of India, caught fire in the premises of the Goa Shipyard Limited (GSL) at Vaddem-Vasco on Wednesday afternoon. The loss suffered is yet to be estimated.

A GSL fire tender was immediately pressed into service to extinguish the flames. Besides this, two fire tenders from Vasco fire station and one fire tender each from the MPT and Zuari battled the flames for about three and a half hours.

According to a source, "the ship, which is for repairs at the GSL dock, had also caught fire on Tuesday evening." Though the cause of the fire is not yet known, it is suspected that the fire started in the pantry and spread to the engine room. Flames of the burning ship could be seen from nearby buildings.

GOA SHIPYARD LIMITED-BUILT SIMULATOR COMMISSIONED

APRIL 17, 2012

A damage control simulator (DCS), 'Avinash' built by Goa Shipyard Limited for the Indian Navy was commissioned recently. V Adm K N Sushil, flag officer commander-in-chief, Southern Naval Command, did the honours at a ceremony held at Seamanship School, Naval Base, Kochi-Kerala. 'Avinash' is the second DCS built by GSL for the Indian Navy, a month ahead of schedule. The facility is aimed at providing naval officers and sailors with a first-hand experience of potential dangers on a ship at sea. The simulator, designed like a section of an actual warship with three decks, is supported by a captive power plant of 500KW and modern control systems equipped with CCTV to monitor the entire training imparted to seamen. 'The realistic damage scenarios and sense of crisis generated on board the DCS contributes invaluably in inculcating the ability to "think on their feet" amongst the trainees, besides improving team building skills, thereby preparing them for unforeseen hardships and emergencies that may emerge at sea,' states a press release.

GMC hosts international conference: The Indian Academy of Cytologists, in collaboration with the European Federation of Cytology Societies (EFCS) and the International Academy of Cytology, recently organized an international conference at the Goa Medical College, Bambolim. Dr R G Wiseman Pinto chaired the scientific sessions and the faculty comprised Dr Jerzy Klijanienko ( France), Dr Roberto Dina (UK), Dr Ratnayake Palitha (Srilanka), Dr L P Kok (Netherlands), Dr Mathilda Boon (Netherlands), Dr Binnur Onal (Turkey), Dr Helen Fernandes (USA), Dr Abha Malik ( Australia), Dr N A Jambhekar (India), Dr. Nalini Gupta (India) and Dr Suresh Bhambhani (India). The topics covered were paediatric tumors, thyroid, TB alveolitis, salivary glands, e-learning in cytopathology, breast cancer, head and neck, mesothelioma, skin pathology, cervical cytology, use of computers in histopathology, conventional versus liquid based cytology. There were also 88 scientific research proffered papers presented at the conference. The Goa Medical Council gave CME accreditation for the conference awarding 10 CME credit hours.

Carmel College professor gets Swedish scholarship: Manoj Borkar, an environmental educator and biologist, has been awarded a scholarship by the Swedish government and has been invited by the Swedish International Development Cooperation Agency (SIDA) to participate in advanced international training programme in 'Education for sustainable development in higher education'. Scholars from 11 Scandinavian, Asian and African countries with tertiary qualification and experience in the higher education sector will participate in the training from April 21. Borkar, who has opted for 'environmental impact assessment in the mining sector' as his area of specialization, will visit universities of Stockholm, Chalmers and Uppsala. Borkar works as an associate professor of zoology and environmental biology at Carmel College for Women, Nuvem.

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.53.99
UK Pound	1	Rs.83.72
Euro	1	Rs.72.09

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

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