MIRA INFORM REPORT

Report Date :

08.01.2013

IDENTIFICATION DETAILS

Name :	MAGNUM VENTURES LIMITED (w.e.f 15.11.2006)
Formerly Known As :	Magnum Papers Limited (w.e.f 31.05.1995) Magnum Papers Private Limited
Registered Office :	685, Chitla Gate, Chawri Bazar, Delhi- 110006, Delhi
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.05.1980
Com. Reg. No.:	010492
Capital Investment / Paid-up Capital :	Rs. 376.019 Millions
CIN No.: [Company Identification No.]	L21093DL1980PLC010492
TAN No.: [Tax Deduction & Collection Account No.]	DELM08792A
PAN No.: [Permanent Account No.]	AAACM6054H
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturing of Duplex Board and Writing Printing Paper and News Prints.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear some accumulated loss recorded by the company. The External borrowing of the company in huge. The rating also reflect the delay in servicing of interest in the past and government policy has also affected the profitability of the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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 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	ICRA
Rating	(ICRA) D
Rating Explanation	This rating are in default or are expected to be in default soon.
Date	December 2012

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.

LOCATIONS

Registered Office/ Head Office :	685, Chitla Gate, Chawri Bazar, Delhi- 110006, Delhi, India
Tel. No.:	Not Available
Mobile No.:	Not Available
Fax No.:	Not Available
E-Mail :	magnumventures@gmail.com
Website :
Corporate Office/ Factory 1 :	Plot No. 18/41, Site-IV, Industrial Area, Sahibabad, Ghaziabad 201010, Uttar Pradesh,
Tel. No.:	91- 120- 4199200 (100 lines)
Fax No.:	91- 120- 4199234
E-Mail :	magnumventures@gmail.com
Factory 2 :	64/3, 4, 5 and 6, Site-IV, Industrial Area, Sahibabad, Ghaziabad 201010, Uttar Pradesh
Phone No.:	91- 120- 4180000
Fax No.:	91- 120- 4180088
E-Mail :	www.countryinns.com/sahibabad.in
Branch :	Magnum House, 3/ 4326, Ansari Road, Darya Ganj, New Delhi – 110002

DIRECTORS

As on 31.03.2012

Name :

Mr. Pradeep Kumar Jain

Designation :

Managing Director

Name :

Mr. Abhey Kumar Jain

Designation :

Whole- time Director

Name :

Mr. Parmod Kumar Jain

Designation :

Director

Name :

Mr. Praveen Kumar Jain

Designation :

Director

Name :

Mr. Subash Oswal

Designation :

Director

Name :

Mr. Rakesh Garg

Designation :

Director

Address :

B 175 (SF - B-Block, Ashok Vihar, PH-I, Delhi-110052

Date of Birth/Age :

18.02.1964

Qualification :

B.Com

Experience :

34 Years

Date of Appointment :

29.09.2009

DIN No.:

02683693

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	L21093DL1980PLC010492	Magnum Ventures Limited.	Director	29/09/2009	22/05/2009	Active	NO

Name :

Mr. Naveen Jain

Designation :

Director

Name :

Shri Krishan Jain

Designation :

Director

Address :

30, Kapil Vihar, Pitampura, Delhi-110034

Date of Birth/Age :

01.04.1954

Qualification :

B.Com and FCA

Experience :

17 Years

Date of Appointment :

17.09.2010

DIN No.:

00365462

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	U67120DL1994PTC062237	MLG INVESTMETNS PRIVATE LIMITED	Director	10/01/1995	10/01/1995	30/08/2010	Active	NO
2	U74140DL2005PTC143384	SIX SIGMA CONSULTING PRIVATE LIMITED	Director	07/12/2005	07/12/2005	18/11/2008	Active	NO
3	L21093DL1980PLC010492	Magnum Ventures Limited.	Director	17/09/2010	15/02/2010	-	Active	NO
4	AAA-8654	ARVACHIN CONSULTING LLP	Designated Partner	02/04/2012	02/04/2012	-	Active	NO

Name :

Mr. Kamal Prasad

Designation :

Nominee- Director

Name :

Mr. Subash Oswal

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Anant Prakash
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	19960700	53.08
Sub Total	19960700	53.08
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	19960700	53.08
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	2982843	7.93
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	9279086	24.68
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	4833951	12.86
Any Others (Specify)	545304	1.45
Clearing Members	201402	0.54
Trusts	23125	0.06
NRIs/OCBs	320777	0.85
Sub Total	17641184	46.92
Total Public shareholding (B)	17641184	46.92
Total (A)+(B)	37601884	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	0	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Duplex Board and Writing Printing Paper and News Prints.

PRODUCTION STATUS (As on 31.03.2012)

Particulars	Unit	2012
Licensed Capacity	MT	85000
Production	MT	65185

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Indian overseas Bank

Ø PNB

Ø Syndicate Bank

Ø Oriental Bank Of Commerce

Ø Allahabad bank

Ø Vijaya Bank

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term Loan
Secured
From Banks
Indian overseas Bank	294.044	275.213
PNB	778.026	729.232
Syndicate Bank	648.446	599.375
Oriental Bank Of Commerce	324.320	303.500
Allahabad bank	183.267	185.621
Vijaya Bank	224.006	226.500
Secured Working Capital Loans from banks
IOB	28.956	28.875
Oriental Bank of Commerce	229.024	221.880
Syndicate Bank	22.189	22.837
Allahabad Bank	46.175	40.173
PNB	75.642	71.944
Total	2854.095	2705.150
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Unsecured Loans and Advances From Related Parties	288.513	269.278
Long Term maturities of Finance Lease Obligations	4.442	4.795
Total	292.955	274.073

Banking Relations :	-----
Auditors :
Name :	Sunil K. Mittal and Company Chartered Accountants
Address :	8- D, Hansalya, 15, Barakhamba Road, New Delhi- 110001, Delhi, India
Tel. No.:	91- 11- 23358616, 23358617, 23716601
E-Mail :	caskmittal@rediffmail.com

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
64000000	Equity Shares	Rs.10/- each	Rs. 640.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
37601884	Equity Shares	Rs.10/- each	Rs. 376.019 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		376.019	376.019	376.019
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	175.403	459.788
4] (Accumulated Losses)		(28.157)	0.000	0.000
NETWORTH		347.862	551.422	835.807
LOAN FUNDS
1] Secured Loans		2854.095	2705.150	2609.370
2] Unsecured Loans		292.955	274.073	239.576
TOTAL BORROWING		3147.050	2979.223	2848.946
DEFERRED TAX LIABILITIES		0.000	0.000	13.718
TOTAL		3494.912	3530.645	3698.471
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2669.414	2847.003	3047.838
Capital work-in-progress		0.000	0.000	3.410
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		206.278	113.265	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	116.143	130.556	166.892
	Sundry Debtors	670.173	523.169	458.960
	Cash & Bank Balances	55.286	8.306	7.473
	Other Current Assets	5.518	2.861	0.000
	Loans & Advances	84.979	100.621	133.322
Total Current Assets		932.099	765.513	766.647
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	187.276	135.679	87.761
	Other Current Liabilities	113.192	49.767	23.623
	Provisions	12.411	9.690	8.294
Total Current Liabilities		312.879	195.136	119.678
Net Current Assets		619.220	570.377	646.969
MISCELLANEOUS EXPENSES		0.000	0.000	0.254
TOTAL		3494.912	3530.645	3698.471

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1970.132	1740.979	1325.001
		Other Income	1.461	1.128	15.820
		TOTAL (A)	1971.593	1742.107	1340.821
Less	EXPENSES
		Cost of Material Consumed	1327.183	1203.737
		Change in Inventory of Finished Goods and WIP	(4.094)	30.480
		Employee Benefit Expense	140.650	119.320
		Other Expenses	172.691	240.417
		TOTAL (B)	1636.430	1593.954	1180.887
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		335.163	148.153	159.934
Less	FINANCIAL EXPENSES (D)		409.193	319.267	226.462
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(74.030)	(171.114)	(66.528)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		222.543	240.236	228.247
	PROFIT/ LOSS BEFORE TAX (E-F) (G)		(296.573)	(411.350)	(294.775)
Less	TAX (I)		(93.012)	(126.966)	(192.643)
	PROFIT/ LOSS AFTER TAX (G-I) (J)		(203.561)	(284.384)	(102.132)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(120.867)	163.517	265.649
	BALANCE CARRIED TO THE B/S		(324.428)	(120.867)	163.517
	EARNINGS IN FOREIGN CURRENCY		98.944	22.395	N. A
	IMPORTS
	Paper Raw Materials		11.664	0.453	----
	Chemical and Consumable Spares Parts		9.565	6.716	----
	Hotel Spare Parts
	Mini Bar Cooling Unit		0.115	N. A	N. A
	Laundry Equipment		0.078	N. A	N. A
	Earnings Per Share (Rs.)
	Basic		(5.41)	(7.56)	(5.12)
	Diluted		(5.41)	(7.56)	(5.12)

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2012 1^st Quarter	30.09.2012 2^nd Quarter
Net Sales	468.100	439.100
Total Expenditure	432.900	425.900
PBIDT (Excl OI)	35.200	13.200
Other Income	3.300	3.100
Operating Profit	38.500	16.300
Interest	107.500	113.500
PBDT	(69.000)	(97.200)
Depreciation	52.300	53.200
Profit Before Tax	(121.300)	(150.400)
Tax	(37.500)	(46.400)
Profit After Tax	(83.800)	(104.000)
Net Profit	(83.800)	(104.000)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(10.32)	(16.32)	(7.62)
Net Profit Margin (PBT/Sales)	(%)	(15.05)	(23.63)	(22.25)
Return on Total Assets (PBT/Total Assets}	(%)	(8.23)	(11.39)	(7.73)
Return on Investment (ROI) (PBT/Networth)		(0.85)	(0.75)	(0.35)
Debt Equity Ratio (Total Liability/Networth)		9.95	5.76	2.95
Current Ratio (Current Asset/Current Liability)		2.98	3.92	6.41

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 three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	No
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	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	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

YEAR IN RETROSPECT

During the year, total income of the Company was Rs. 1971.594 Millions as against Rs. 1711.627 Millions in the previous year. Depreciation of Rs. 222.543 Millions and Interest accrued Rs. 409.193 Millions during the year forced the company to suffer loss of Rs. 203.560 Millions. The main reason seen for not recovery of Depreciation and Interest in total are as under:

1. High Inflation rate faced by Indian economy.

2. Coal Price, Petroleum Products, Transportation Cost on Peak Levels.

3. Rate of Interest increased multiple times by bankers during the year.

4. High Competition and low operating Margin.

The company is taking necessary steps to perform better in coming years.

SEGMENTS

PAPER DIVISION

To our stakeholders, that to meet out the challenges of recession in their existing final product “Writing and Printing Paper” the company has diversified in to manufacture of “Newsprints” and started manufacturing Newsprints w. e. f. 01st July 2010.

Presently the Company is manufacturing the following Products:

a) Duplex Board

b) Newsprints

Benefits of Manufacturing Newsprints

1. Demand for Newsprints paper is not affected by recession.

2. The realization of payment is fast and no bad debts.

3. Final Product is exempt from Excise Duty

4. Since last two year the demand of writing and printing paper is fallen down which results in operating loss to the company.

As per the separate Books of Account maintained by the company for Duplex Board (Excisable) and Newsprints (Exempted), results from the Newsprints manufacturing and sale achieved by the company during the Fiscal year 2010-11 and 2011-12 are as under:

(In MT)

Particular	2010-11	2011-12
Production	5117.44	19406.98
Sale	5058.28	19439.21

HOTEL DIVISION

The Hotel Division started its operation w. e. f. 15-02-2009, the Hotel is having category “FIVE STAR” the hotel is doing well. The Hotel is having “TWO WINGS” which is as under:

a) Wing 1 is the lower part of the building which consists of Two Basement, Ground Floor, Mezzanine Floor, Service Floor and First Floor.

b) Wing 2 Consists of 5 Floors, Floor No 2 to 6. Floor from number 2 to 6 provide Rooms and restaurants for the customers.

The Company is maintaining separate for WING I and WING II, the financial results of the company for the year 2010-11 and 2011-12 are as under:

(In Rs. Millions)

Particular	2010-11	2011-12	%age Increase
Gross Revenue	452.100	531.200	17.49
EBIDTA	58.900	210.600	257.55

OVERVIEW:

The Company was incorporated on May 29, 1980 as MAGNUM PAPERS LIMITED and was taken over in 1984 with the new name as Magnum Ventures Limited. In September 20, 2007, Magnum made an Initial Public Offer and is currently listed at National Stock Exchange of India Limited. (‘NSE’) and Bombay Stock Exchange Limited (‘BSE’).

Magnum is ideally located at Sahibabad, Ghaziabad (Uttar Pradesh) the (NCR region hardly 15 KM from the heart of Delhi i.e. Connaught Place, New Delhi). The Company is having large infrastructures 65000 Square Meter and Five Lacs Square feet Building Area in Sahibabad Industrial Area, Ghaziabad (Uttar Pradesh).

Magnum currently operates in Paper Industry and Hotel Industry, and Manufacturing of papers since more than 25 Years. The existing manufacturing activities cover printing and writing papers, duplex boards, Xerox paper, Wrapping and packing paper and so on with installed capacity of 85 k MT per annum based on 3 shift and 330 days working days in a year. Magnum also operates Hotel Industry by the name of country inn and suites by Carlson, a Five Star Hotel at Sahibabad, Ghaziabad (Uttar Pradesh) diagonally opposite to Vaishali Metro Station, 50 minutes from the International Airport, 10 minutes from the Akshardham Temple and India Gate and Connaught Place is just a 25 minutes drive from the Hotel. Their Sahibabad hotel provides innovative theme restaurants, extensive banqueting areas, state-of-the-art Business Centre, health club and spa, beauty salon, shopping arcade and outdoor, poolside bar that offers a world-class dining experience. The hotel is the first eco-friendly, all-vegetarian, five-star hotel. It comprising of 216 rooms in four categories i.e. 64 Standard Rooms, 76 Superior Rooms, 70 Club Rooms, and 6 Executive Suites. The Hotel was soft launched in the month of January, 2009, which is now in full operation. The hotel has a USP of being the first all Vegetarian Hotel to have been formally certified as a five star hotel by (HRACC) Ministry of Tourism.

INDUSTRY STRUCTURE, DEVELOPMENTS & OUTLOOK:

The Company’s business broadly consists of manufacturing of Papers and Hotel Industry.

Paper Industry

The Indian paper industry is said to be growing in the line with the GDP of the country. While keeping a optimistic approach and given the expansions which had taken place in recent couple of years which have been more or less absorbed too, the paper industry seems to be growing in almost digits. Keeping the optimism along with the challenges, the Indian paper industry has grown in the past and now the industry has to have a planned growth path so as to overcome the challenges of raw material availability, manpower, short term over capacity situation, environmental foot print etc.

Hotel Industry

The constant transformation has made the Indian hotel industry more functional and practical and has gained a level of acceptance world over. The standards of facilities and services offered have evolved over the last decade towards the extensive use of technology, environment friendly services, pricing, market segmentation, regional preferences, etc. The Indian hotel industry has seen a significant growth in room inventory across categories from upscale luxury to limited services and boutique and hotels. The occupancy and the room rates have seen continued gains both from the domestic and the international traveller in both the business and leisure segment.

The government has stepped up various reforms to accelerate the industry growth with liberalization in the regulatory framework, investment friendly schemes, extensive support for creating a world class infrastructure, initiating better air and land connectivity, incentivising regional set-up in tier III and IV cities, exploring the untapped geographical resources. The government is focusing on the PPP and is looking beyond the traditional tourism avenues and on to new initiatives –tourism, sports and adventure tourism, religious circuit, wildlife safaris, rural tourism, eco-tourism, cruise tourism and wellness tourism.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Electrical Installation
• Generator
• Vehicle
• Office Equipment
• Furniture and Fixture
• Computer
• Fire Fighting Equipment

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. 54.85
UK Pound	1	Rs. 88.16
Euro	1	Rs. 71.54

INFORMATION DETAILS

Report Prepared by :

RJT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.