MIRA INFORM REPORT

Report Date :

28.02.2013

IDENTIFICATION DETAILS

Name :	BHAVYA CEMENTS LIMITED
Registered Office :	Thangeda Village, Dachepally Mandal, District Guntur – 522414, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.04.2007
Com. Reg. No.:	01-053611
Capital Investment / Paid-up Capital :	Rs.690.517 Millions
CIN No.: [Company Identification No.]	U26941AP2007PLC053611
TAN No.: [Tax Deduction & Collection Account No.]	HYDB03403B
PAN No.: [Permanent Account No.]	AADCB1182A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Portland Cement.
No. of Employees :	190 [In Office + in Factory] Approximately

RATING & COMMENTS

MIRA’s Rating :

Ca [18]

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Yet to Commence Business Activity
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Though the company was incorporated in the year 2007. The company is yet to commence its commercial operations. The plant of the company is still under its implementation stage. Payments are unknown. The company can be considered for business dealings on a secured 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY [General Details]

Name :	Mr. Murty
Designation :	Account Department
Contact No.:	91-40-23558384
Date :	10.12.2011

LOCATIONS

Registered Office/ Factory :	Thangeda Village, Dachepally Mandal, District Guntur – 522414, Andhra Pradesh, India
Tel. No.:	91-8649-273900
Fax No.:	91-8649-273819
E-Mail :	bhavyacementworks@gmail.com i.e.reddy@gmail.com murty@bhavyacements.in
Website :	http://www.bhavyacements.in
Corporate Office :	Plot No. A-1, IInd Floor, Bhavya Spoorthi Bhavan, Film Nagar, Jubilee Hills, Hyderabad – 500033, India
Tel. No.:	91-40-23558384 / 85
Fax No.:	91-40-23558393
E-Mail :	info@bhavyacements.in

DIRECTORS

As on 29.09.2010

Name :

Mr. Venigalla Anand Prasad

Designation :

Managing Director

Address :

Plot No.1099/A, Road No.41, Jublee Hills Society, Hyderabad - 500034, Andhra

Pradesh, India

Date of Appointment :

16.04.2007

DIN No.:

00207561

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U45200AP1991PTC013314	BHAVYA CONSTRUCTIONS PRIVATE LIMITED	Managing director	15/10/1991	15/10/1991	Active	NO
2	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Managing director	21/10/2007	16/04/2007	Active	NO
3	U45200AP2009PTC063126	BHAVYA CASTLES HYDERABAD PRIVATE LIMITED	Director	20/03/2009	20/03/2009	Active	NO

Name :

Ms. Venigalla Krishna Kumari

Designation :

Director

Address :

Plot No.1099/A, Raod No.41, Jublee Hills Co-Op Society, Hyderabad - 500034, Andhra Pradesh, India

Date of Appointment :

16.04.2007

DIN No.:

00207725

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U45200AP1991PTC013314	BHAVYA CONSTRUCTIONS PRIVATE LIMITED	Director	31/12/1993	31/12/1993	Active	NO
2	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Director	16/04/2007	16/04/2007	Active	NO

Name :

Mr. Venkata Rao Yaramasu

Designation :

Director

Address :

6 3 609 - 1 And 2, F504, Anand Nagar Colony, Khairatabad, Hyderabad - 500004, Andhra Pradesh, India

Date of Appointment :

02.02.2010

DIN No.:

01046905

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U63022AP1998PTC029401	NJP SURYA COLD STORAGE PRIVATE LIMITED	Director	20/07/2006	20/07/2006	-	Active	NO
2	L29219AP1983PLC004319	LOKESH MACHINES LIMITED	Director	27/09/2006	27/09/2006	31/10/2008	Active	NO
3	U15139AP2006PTC051839	SYRYS FOODS PRIVATE LIMITED	Director	30/11/2006	30/11/2006	30/09/2010	Active	NO
4	U67120AP2007PTC054774	YVM INVESTMENT PRIVATE LIMITED	Director	12/7/2007	12/7/2007	-	Active	YES
5	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Director	2/2/2010	2/2/2010	-	Active	NO

Name :

Mr. Ravi Ghanshyamdas Lekhrajani

Designation :

Nominee Director

Address :

Flat No. B-605, 6th Floor, Sagar Shrot, Juhu Varsova, New Link Road, Andheri West, Mumbai - 400053, Maharashtra, India

Date of Appointment :

08.12.2009

DIN No.:

01759409

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U34300PN1985PTC035877	INDO SCHOTTLE AUTO PARTS PRIVATE LIMITED	Nominee director	28/11/2005	28/11/2005	13/08/2008	Active	NO
2	U24110MH1991PTC063399	PHTHALO COLOURS AND CHEMICALS (INDIA) LIMITED	Nominee director	23/07/2007	23/07/2007	-	Active	NO
3	U60100WB2004PTC100396	VENKATESH LOGISTICS PRIVATE LIMITED	Nominee director	1/12/2008	1/12/2008	-	Active	NO
4	U21093PN2004PLC018983	BILTUBE INDUSTRIES LIMITED	Nominee director	9/11/2009	9/11/2009	-	Active	NO
5	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Nominee director	8/12/2009	8/12/2009	-	Active	NO
6	U67190MH2010PTC202800	WIP (INDIA) PRIVATE LIMITED	Additional director	7/5/2010	7/5/2010	-	Active	NO
7	U74999MH1955PTC009593	S H KELKAR AND COMPANY PRIVATE LIMITED	Director	4/9/2010	27/08/2010	-	Active	NO
8	U99999MH1990PLC056461	TOPACK FITTINGS LIMITED	Director	8/6/2011	8/6/2011	-	Active	NO
9	U27100MH2005PTC153462	TEKNO STEELS AND FORGINGS PRIVATE LIMITED	Director	8/6/2011	8/6/2011	-	Active	NO

Name :

Mr. Raghavulu Edara

Designation :

Director

Address :

16-2-751/A/35/1/3/A, Plot No.3, Road No.1, Asmangadh, Hyderabad - 500060, Andhra Pradesh, India

Date of Appointment :

21.01.2008

DIN No.:

02008012

Name :

Mr. Shivakumar Pokala

Designation :

Whole Time Director

Address :

F No.202, 6-2-10, Temple View Residency, Lakdikapul, Hyderabad - 500004, Andhra Pradesh, India

Date of Appointment :

16.04.2007

DIN No.:

02489876

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Whole-time director	1/8/2009	16/04/2007	Active	NO
2	U45200AP2009PTC063126	BHAVYA CASTLES HYDERABAD PRIVATE LIMITED	Director	20/03/2009	20/03/2009	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Bhavya Constructions Private Limited	13,650,000
V. Ananda Prasad	3,090,240
P. Shiva Kumar	1,429,000
V. Krishna Kumari	1,319,000
B. Rajamallu	1,000,000
E. Raghavulu	853,966
R. Srinivasa Rao	754,000
R. Uma Devi	500,000
V. Aditya	475,167
E. Venkateswara Rao	716,500
R. Uma Maheswar	404,000
N. Sarojini	350,000
M. Srinivasa Raghava Reddy	350,000
Vasireddy Eswar Rao	304,191
R. Srivalli	300,000
R. Mohan Rao	254,000
V. Dhana Laxmi	250,000
Uppu Srinivas	250,000
T. Gopi Chand	250,000
R. Harsha	250,000
R. Haritha	250,000
P. Amruth Prasad	250,000
P. Venkateswara Rao	200,000
K. Pitchaiah	125,167
D. Balakrishna	125,000
G.C. Subba Naidu	100,000
A. Vijaya	100,000
G. Bharathamma	90,000
G. Balaiah	90,000
V. Nagendra Rao	79,000
N. Chandrika	75,000
Adusumilli Venkateswara Rao	53,425
Y. Srivani	50,000
V. Vedavathi	50,000
M. Mangathai	50,000
Narendra Vutla	49,004
Y. Venkata Ratna Kumari	37,500
Y. Venkata Gopal Rao	37,500
Y. Swathi	29,250
K Ramesh	25000
G. Shiva Prasad	25000
B. Susheela	25000
B. Narmada	25000
B. Durga Kalyan Chakravarthy	25000
B. Venkat Reddy	25000
Kalagara Vijaya Babu	25,000
N. Krishna Kumari	25,000
M. Jhansi Rani	25,000
G. Vengal Rao	25,000
Y. Subba Rao	22,500
A. Rajesh	20,000
Eadara Sri Laxmi	17,500
E. Bharathi	15,000
K. Priyanka	12,500
Y. Ratnamala	11,250
V. Radha Rani	10,000
Somarapu Vinay Babu	10,000
Somarapu Sunaina	10,000
N. Sujatha	10,000
N. Jaya Laxmi	10,000
Konagala Rama Krishna Chowdary	10,000
Kanagala Prathima	10,000
Y. Swetha	9,000
K. Sangameswara Rao	7,500
G. Ashok Kumar	4,500
V.V. Seetharama Rao	4,000
N. Harimohan	4,000
G. Radhika	3,000
Kalasapakam Venkatesh	2,500
Kalasapakam Vasudev	2,500
I. Ramesh	2,500
I. Madhavi Latha	2,500
Total Equity Shares	29,051,660
Wayzata Indian Ocean Limited	4,000,000
Total Preference Shares	4,000,000

As on 23.03.2011

Names of Allottees	No. of Shares Allotted
Bhavya Constructions Private Limited, India	4918340
V. Ananda Prasad	2600000
E. Raghavulu	300000
K. Kusuma Kumari	25000
Y. Srivani	50000
V. Vedavathi	150000
M. Jhansi Rani	25000
E. Saraswathi	50000
Total	8118340

As on 29.09.2010

Equity Share Break Up Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie’s Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	1.40
Bodies corporate	46.99
Directors or relatives of Directors	51.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Portland Cement.

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

190 [In Office + in Factory] Approximately

Bankers :

• Punjab National Bank, Andhra Pradesh, India
• State Bank of India
• State Bank of Hyderabad
• Union Bank of India
• State Bank of Indore

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Vehicle Loan – Reliance Capital Limited	0.147	0.622
Term loan from Punjab National Bank State Bank of India State Bank of Hyderabad Union Bank of India State Bank of Indore	523.700 351.712 281.200 281.303 172.000	338.415 225.888 180.678 181.912 111.145
Total	1610.062	1038.660
Term loans from Punjab National Bank, State Bank of India, State Bank of Hyderabad, Union Bank of India and State Bank of Indore are secured by equitable mortgage of land and building plant and machinery and hypothecation of al movable [except book debts] including movable machinery, machinery spares, tools and accessories both present and future. The managing director ans all directors guarantee these loans in their personal capacities and future guaranteed by Bhavya Constructions Private Limited by offering immovable properties as collateral security. Finance leases from reliance capital limited are secured by hypothecation of vehicle.

Banking Relations :	--
Auditors :
Name :	BSR and Associates Chartered Accountants
Address :	Andhra Pradesh, India
Name :	Mahavishnu and Sharma Chartered Accountants
Address :	220, Chenoy Trade Centre, Parklane, Secunderabad – 500003, Andhra Pradesh, India
PAN :	AACFM8795N
Associates / Subsidiaries :	Bhavya Constructions Private Limited Activity : Developers and Builders Venkata Kanaka Durga Metal industries

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital : Rs.775.000 millions

Issued, Subscribed & Paid-up Capital : Rs.771.700 millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
30,000,000	Equity Shares	Rs.10/- each	Rs.300.000 millions
4,000,000	11% cumulative compulsory convertible preference shares	Rs.100/- each	Rs.400.000 millions
	Total		Rs.700.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29,051,660	Equity Shares	Rs.10/- each	Rs.290.517 millions
4,000,000	11% cumulative compulsory convertible preference shares	Rs.100/- each	Rs.400.000 millions
	Total		Rs.690.517 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		690.517	211.464	0.500
2] Share Application Money		12.900	151.105	187.021
3] Reserves & Surplus		290.017	210.964	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		993.434	573.533	187.521
LOAN FUNDS
1] Secured Loans		1610.062	1038.660	1.099
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1610.062	1038.660	1.099
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2603.496	1612.193	188.620
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.473	3.030	2.699
Capital work-in-progress		2401.623	936.449	147.901
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	3.800
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	153.425	663.087	34.896
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	103.123	21.399	0.154
Total Current Assets		256.548	684.486	38.850
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.958	10.085	0.522
	Other Current Liabilities
	Provisions	20.227	1.724	0.320
Total Current Liabilities		59.185	11.809	0.842
Net Current Assets		197.363	672.677	38.008
MISCELLANEOUS EXPENSES		0.037	0.037	0.012
TOTAL		2603.496	1612.193	188.620

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	0.000	0.000	0000
		Other Income	7.194	1.545	0.514
		TOTAL (A)	7.194	1.545	0.514
Less	EXPENSES
		Salaries and Wages	23.191	7.204
		Administrative and other Expenses	31.626	20.231
		TOTAL (B)	54.817	27.435	4.008
	PROFIT/[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		[47.623]	[25.890]	[3.494]
Less	FINANCIAL EXPENSES (D)		135.284	42.781	0.037
	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		182.907	[68.671]	[3.531]
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.034	0.833	0.269
	PROFIT / [LOSS] BEFORE TAX (E-F) (G)		[183.941]	[69.504]	[3.800]
Less	TAX (H)		0.000	0.000	0.000
	PROFIT / [LOSS] AFTER TAX (G-H) (I)		[183.941]	[69.504]	[3.800]
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		[73.304]	[3.800]	0.000
	BALANCE CARRIED TO THE B/S		[257.245]	[73.304]	[3.800]
	Earnings/[Loss] Per Share (Rs.)		[5.56]	NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	[2557.85]	[4498.64]	[739.30]
Return on Total Assets (PBT/Total Assets}	(%)	[70.47]	[10.11]	[9.14]
Return on Investment (ROI) (PBT/Networth)		[0.18]	[0.12]	[0.02]
Debt Equity Ratio (Total Liability/Networth)		1.68	1.83	0.01
Current Ratio (Current Asset/Current Liability)		4.33	57.96	46.14

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	-
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	No
Profitability for last three years	No
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	No
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	No
Incorporation details, if applicable	-
Last accounts filed at ROC	-
Major Shareholders, if applicable	-

Note:

Registered office address of the company has been shifted from Plot No. A-1, IInd Floor, Bhavya Spoorthi Bhavan, Film Nagar, Jubilee Hills, Hyderabad – 500033, India to the present address w.e.f. 08.12.2009

Financial Results:

As the company has not yet commenced its commercial operations, the income from operation is nil.

Status of Implementation of Project

The member are aware that the company is establishing a 1.20 MTPA cement plant at village Thangeda, near Dachepally in Guntur District of Andhra Pradesh with a capital outlay of Rs.3202.900 millions there has been slight delay in the implementation of the project due to the disturbance in the state on political front. The physical progress of the project on the date of this report is as follows.

Land and Site Development:

Acquisition of land is continued and an extent about 1000 acres of land for plant and mine acquired

Civil Works:

1. Civil works comprise of excavation of foundations and concreting of foundations and structures for various sections like Crushing, Limestone Pre-blending, Raw Mill, Coal Mill, Pre-heater Silos for Raw Meal and Cement, Clinker Tank.

a) The total excavation quantities are estimated at 61,400 M3 for the project and out of which 61,400 M3 excavation was completed which is equivalent to 100% of the estimated quantity.

b) The total concrete work quantities are estimated at 34,000 M3 and the actual quantities of concrete work completed is 33,800 M3 which is equivalent to 99.41% of the estimated quantity.

c) The residential colony comprise of various types of quarters for workers, supervisory and executives. The project also envisages a guest house to accommodate suppliers, executives and visitors. While the guest house is in the finishing stages of completion, about 49 residential quarters are completed and occupied by the employees of the company.

Plant and Machinery:

The turn key supplied to the extent of 97% and erection also completed up to 95%.

License and Clearances:

The company has received all the necessary approvals required for establishing the cement plant including mining lease permission

Contingent Liabilities: [As on 31.03.2010]

Contingent Liabilities not provided for an account of

• Dividend accrued on cumulative compulsory convertible preference shares Rs.13.742 millions

• Guarantees given by the bankers Rs.0.064.

Bankers Charges Report as per Registry

Corporate identity number of the company	U26941AP2007PLC053611
Name of the company	BHAVYA CEMENTS LIMITED
Address of the registered office or of the principal place of business in India of the company	Thangeda (Village), Dachepally (Mandal), Guntur – 522414, Andhra Pradesh, India
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	Tata Capital Limited, One Forbes, Dr V B Gandhi Marg,Fort, Mumbai – 400001, Maharashtra, India CIN : L65990MH1991PLC060670 Email : shailesh.rajadhyaksha@tatacapital.com
Nature of instrument creating charge	Loan cum Hypothecation cum Guarantee Agreement No 7000124656 dated 31.08.2011 for Rs. 13.466 millions
Date of instrument Creating the charge	31.08.2011
Amount secured by the charge	Rs.13.467 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Interest @ 6.30% per annum Terms of Repayment - Principal and interest amount to be repaid in 35 monthly installments of Rs. 0.458 millions Extent and Operation of the charge - The Loan Amount along with all costs, interest, fees and expenses and all monies in terms of this Loan Agreement is secured by Hypothecation of the Asset as specified in Annexure 1 to the Loan Agreement.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	BD 155 Bull Dozer

FIXED ASSETS

· Furniture and Fixtures

· Computer

· Office Equipments

· Electrical Installations

· 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.53.84
UK Pound	1	Rs.81.24
Euro	1	Rs.70.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	2
--CREDIT LINES	1~10	1
--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		18

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.