MIRA INFORM REPORT

Report Date :

15.01.2013

IDENTIFICATION DETAILS

Name :	PASUPATI ACRYLON LIMITED
Registered Office :	Thakurdwara, Kashipur Road, District Moradabad – 244 601, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.10.1982
Com. Reg. No.:	20-015532
Capital Investment / Paid-up Capital :	Rs. 891.410 millions
CIN No.: [Company Identification No.]	L50102UP1982PLC015532
TAN No.: [Tax Deduction & Collection Account No.]	DELP08493C
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturers and Marketers of Acrylic Staple Fibre.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 3600000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Even though the company has recorded an increase in its sales, the company has incurred loss during 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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	CRISIL
Rating	B (Cash Credit) [Downgraded from B+]
Rating Explanation	Moderate risk of default
Date	05.09.2012

Rating Agency Name	CRISIL
Rating	A4 (Bank Guarantee)
Rating Explanation	Minimal degree of safety. It carry very high credit risk
Date	05.09.2012

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 / Factory:	Thakurdwara, Kashipur Road, Dist. Moradabad – 244 601, Uttar Pradesh, India
Tel. No.:	91-591-2241352 / 55 / 2241263 / 05947 / 275506
Fax No.:	91-591-2241262
E-Mail :	works@pasupatiacrylon.com delhi@pasupatiacrylon.com
Website:	http://www.pasupatiacrylon.com
Corporate Office :	M-14, Connaught Circus, Middle Circle, New Delhi – 110 001, India
Tel. No.:	91-11-23715125 / 23723682 / 3656 / 23315901 / 47627400
Fax No.:	91-11-2331 0684 / 23730598 / 47627497
E-Mail :	pal@giasdl01.vsnl.net.in

DIRECTORS

As on 30.05.2012

Name :	Mr. M. M. Kohli
Designation :	Director
Date of Birth/Age :	01.06.1930
Qualification :	M.A. (Economics)
Date of Appointment :	01.02.1989
Name :	Mr. S. C. Malik
Designation :	Director
Date of Birth/Age :	10.01.1950
Qualification :	B.Com, (Hons), FCA
Date of Appointment :	14.02.2012
Name :	Mr. Sathyamoorthy
Designation :	Director
Name :	Mr. Devender Singh
Designation :	Director (PICUP Nominee)
Name :	Mr. Rakesh Gupta
Designation :	Director (PICUP Nominee)
Name :	Mr. Rakesh Mundra
Designation :	Director (Finance)
Date of Birth/Age :	14.04.1960
Qualification :	FCA, FCS and ACMA
Date of Appointment :	14.02.2012
Other Directorship:	AMG Mercantile Private Limited
Name :	Mr. Vineet Jain
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. Rakesh Mundra
Designation :	Company Secretary
Audit Committee:	· Mr. Ravinder Kapur · Mr. M.M. Kohli · Mr. S. C. Malik · Mr. Rakesh Gupta
Remuneration Committee:	· Mr. M.M. Kohli · Mr. Rakesh Gupta · Mr. K.D. Sharma · Mr. Devender Singh
Share Transfer – cum – Shareholder/Investor Grievance Committee:	· Mr. Ravinder Kapur · Mr. M.M. Kohli · Mr. Vineet Jain · Mr. S.C. Malik · Mr. Rakesh Mundra

SHAREHOLDING PATTERN

As on 30.09.2012

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	17454996	19.58
Bodies Corporate	36778697	41.26
Financial Institutions / Banks	4481752	5.03
Sub Total	58715445	65.87
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	58715445	65.87
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	179505	0.20
Financial Institutions / Banks	7335	0.01
Sub Total	186840	0.21
(2) Non-Institutions
Bodies Corporate	3194037	3.58
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	15466039	17.35
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	6666037	7.48
Any Others (Specify)	4904723	5.50
Non Resident Indians	814836	0.91
Overseas Corporate Bodies	1710	0.00
Foreign Banks & Foreign Companies	4088177	4.59
Sub Total	30230836	33.92
Total Public shareholding (B)	30417676	34.13
Total (A)+(B)	89133121	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	89133121	0.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Marketers of Acrylic Staple Fibre.

Products :

Product Description	Item Code No. (ITC Code)
Acrylic Fibre	55.04

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Allahabad Bank
• State Bank of Patiala
• UCO Bank
• Bank of Maharashtra
• State Bank of Travancore
• Bank of Baroda
• Canara Bank

Facilities :

Secured Loan	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Term Loans From Banks Rupee Loan (a) (c) Working Capital Term Loan (a) Vehicle Loan (b)	236.673 61.824 4.955	166.032 78.959 6.160
Loans Repayable on Demand From Banks (d) Hire Purchase Finance	4.881 0.000	103.747 0.004
Other Loans and Advances Foreign Currency Buyers Credit (d)	398.629	60.630
Total	706.962	415.532

NOTES:

(a) Loans of Rs. 78.497 millions (Previous year Rs. 100.321 millions) are secured interse on pari-passu basis by way of mortgage of Immovable properties and hypothecation of all moveable properties (save and except book debts) both present and future subject to prior charges created in favour of company's bankers for working capital facilities and further guaranteed by the managing director.

(b) Secured by hypothecation of specified asset acquired out of the loan amount.

c) Loan of Rs. 220.000 millions (previous year Rs. l50.000 millions) are secured by 1^st charge on New Plant and Machinery on pari-passu basis 2^nd Pari-pasau charge by way of hypothecation of current assets of the Company subject to existing charge of working capital bankers and assignment of project related documents, contract right interest, insurance contracts etc. and further guaranteed by the Managing Director.

(d) Secured by hypothecation of book debts, raw material, Finished goods, semi-finished goods, consumable stores and spares including in transit and also secured by a second charge by way mortgage of immovable properties both present and future and further guaranteed by the managing director.

Banking Relations :	--
Auditors :
Name :	B. K. Shroff and Company Chartered Accountants
Enterprises over which key management personnel / relative have significant influence :	· Prabhat Capital Services Limited, India · Gurukrupa Finvest Private Limited, India · Sulabh Plantation and Finance Private Limited, India · Accurex Traders Private Limited, India
Other Related Parties:	· Pasupati Officer’s Provident Fund Trust · The Pasupati Acrylon Limited Employees Superannuation Scheme · The Pasupati Acrylon Limited Employees Group Gratuity Scheme

CAPITAL STRUCTURE

As on 31.03.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs. 10/- each	Rs. 1000.000 millions

Issued:

No. of Shares	Type	Value	Amount
71158825	Equity Shares	Rs. 10/- each	Rs. 711.588 millions
18000000	Add : Additions during the period	Rs. 10/- each	Rs. 180.000 millions
	TOTAL		Rs. 891.588 millions

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
71133121	Equity Shares	Rs. 10/- each	Rs. 711.331 millions
18000000	Add : Additions during the period	Rs. 10/- each	Rs. 180.000 millions
	Less : Amount originally paid (on forfeited shares)		Rs. 0.079 millions
	TOTAL		Rs. 891.410 millions

Presently no options are available on un-issued share capital except convertibility clause(s), which can be exercised by the Financial Institution(s) in terms of loan agreement(s)

Details of shares in the company held by each shareholder holding more than 5% of shares as under:

Name of Shareholder	No. of Shares As at 31.03.2012
Manish Jain	15649232
Shubh Exim Limited	4500000
PICUP	4481752
Gurukripa Finvest Private Limited, India	9000000
Sulabh Plantation and Finance Private Limited, India	8250000

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		891.410	711.410	711.410
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		29.955	(8.876)	783.928
4] (Accumulated Losses)		0.000	0.000	(722.608)
NETWORTH		921.365	702.534	772.730
LOAN FUNDS
1] Secured Loans		706.962	415.532	283.680
2] Unsecured Loans		73.677	314.678	246.866
TOTAL BORROWING		780.639	730.210	530.546
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1702.004	1432.744	1303.276
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		941.748	734.084	888.197
Capital work-in-progress		215.794	287.816	136.056
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		239.583	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1050.871	1169.499	856.912
	Sundry Debtors	185.038	135.831	150.456
	Cash & Bank Balances	128.158	85.782	63.593
	Other Current Assets	36.312	47.064	0.000
	Loans & Advances	83.451	75.172	91.743
Total Current Assets		1483.830	1513.348	1162.704
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1004.845	985.647	25.170
	Other Current Liabilities	150.820	89.762	858.305
	Provisions	23.286	27.095	0.206
Total Current Liabilities		1178.951	1102.504	883.681
Net Current Assets		304.879	410.844	279.023
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1702.004	1432.744	1303.276

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3952.658	3865.666	2108.690
		Other Income	39.251	30.561	36.277
		TOTAL (A)	3991.909	3896.227	2144.967
Less	EXPENSES
		Cost of Materials Consumed	2762.840	3145.248	1178.105
		Purchases of Stock in Trade	0.645	0.467	0.000
		Changes in Inventories of Finished Goods, Work in Progress and Stock in trade	165.514	(411.949)	0.000
		Employee Benefit Expense	153.003	146.364	0.000
		Other Expenses	889.172	880.661	476.162
		Increase / (Decrease) in stocks	0.000	0.000	149.073
		TOTAL (B)	3971.174	3760.791	1803.340
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.735	135.436	341.627
Less	FINANCIAL EXPENSES (D)		102.276	70.338	32.160
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(81.541)	65.098	309.467
Less/ Add	DEPRECIATION/ AMORTISATION (F)		29.371	28.503	86.211
	Exceptional items		(148.406)	26.819	0.000
	Extraordinary Items		134.538	(58.460)	140.292
	PROFIT BEFORE TAX (E-F) (G)		(124.780)	4.954	82.964
Less	TAX (I)		(37.804)	1.130	0.109
Add	MAT Credit Entitlement		0.000	0.900	0.000
	PROFIT AFTER TAX (G-I) (J)		(86.976)	4.724	82.855
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	496.891	250.307	66.728
	TOTAL EARNINGS		496.891	250.307	66.728
	IMPORTS
		Raw Materials	2526.436	2791.987	0.036
		Stores & Spares	14.118	10.172	0.001
	TOTAL IMPORTS		2540.554	2802.159	0.037
	Earnings Per Share (Rs.)		(1.03)	0.07	NA

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
Type	1^st Quarter	2^nd Quarter
Net Sales	939.700	1035.100
Total Expenditure	886.200	1085.300
PBIDT (Excl OI)	53.500	(50.200)
Other Income	0.000	0.000
Operating Profit	34.600	(50.200)
Interest	(105.200)	35.800
Exceptional Items	(86.300)	86.300
PBDT	11.300	0.300
Depreciation	(97.600)	12.000
Profit Before Tax	0.100	(11.700)
Tax	0.000	0.000
Provisions and contingencies	(97.700)	0.000
Profit After Tax	0.000	(11.700)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(97.700)	(11.700)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(2.18)	0.12	3.86
Net Profit Margin (PBT/Sales)	(%)	(3.16)	0.13	3.93
Return on Total Assets (PBT/Total Assets}	(%)	(5.14)	0.22	4.05
Return on Investment (ROI) (PBT/Networth)		(0.14)	0.01	0.11
Debt Equity Ratio (Total Liability/Networth)		2.13	2.61	1.83
Current Ratio (Current Asset/Current Liability)		1.26	1.37	1.32

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%	----
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	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	Yes

OPERATIONS

The Company has recorded a production of 24718 MT and Sale of 26726 MT during the year as against 27863 MT and 25081 MT respectively during the previous year. The gross turnover during the year was Rs.4310.800 Millions as against Rs.4232.300 Millions in the previous year.

During the year under review, profitability is adversely affected due to exorbitant price increase i.e., to the tune of 30 to 50 percent by Coal India Limited. On account of such abnormal price increase, Company had to burden additional expense on power & fuel. Secondly, during the year due to economic upheaval in European Union / Euro zone and depleting US economy, the USD to INR rose sharply, As the company is dependent upon imports, due to this sudden sharp & unexpected increase it had to suffer significant amount of foreign exchange loss despite of its proactive approach.

The Company has written back CENVAT credit of Rs.134.500 Millions written off in earlier year in these accounts, as the custom/excise duty imbalance stands corrected and company is increasing its exports as such there is virtual certainty of its recovery.

The new power plant is commissioned during the later part of the year; it is designed to run on multi fuel i.e. coal, pet coke and rice husk. As explained above company had to suffer heavy losses due to sharp increase of coal prices as there was no option except to use coal, but now with the commissioning of new power plant the company would be in a position to alter the fuel from coal to pet coke/ rice husk to its advantage. Production from new line has also started during the current year, due to increase in production the company would be in a position to derive economy of scale benefit. With the commissioning of power plant and new line it is expected that cost of production shall go down, which would give competitive advantage, as such barring unforeseen circumstances the company expects to post better profitability during the current year.

UNSECURED LOANS

Unsecured Loan	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Inter Corporate Deposits	39.000	180.000
Deferred Credit	34.677	134.678
Total	73.677	314.678

ISO CERTIFICATION

The Company is an ISO 9001:2000, accredited by Bureau of Indian Standard, Rooid Voor Accreditatie, Netherland. This certification indicates our commitments in meeting global quality and standards.

UNAUDITED FINANCIAL RESULTS (REVIEWED) FOR THE QUARTER ENDED 30^TH JUNE 2012

(Rs. In millions)

Particulars	Quarter Ended Reviewed 30.06.2012
1. Income from operations
(a) Net sales	931.800
(b) Other operating income	7.900
Total income from operations (net)	939.700
2. Expenditure
(a) Cost of materials consumed	882.800
(b) Purchases of stock-in-trade	0.000
(c) Changes in inventories of finished goods, work-in progress and stock-in-trade	(302.600)
(d) Employee benefits expense	40.000
(e) Depreciation and amortization expense	11.300
(f) Power and Fuel	122.800
(g) Other expenditure	143.200
Total expenses	897.500
3. Profit from Operations before Other income, interest and Exceptional Items (1-2)	42.200
4. Other Income	0.000
5. Profit from ordinary activities before Interest and Exceptional Items (3+4)	42.200
6. Interest (Finance Costs)	34.600
7. Profit from ordinary activities after Interest but before exceptional	7.600
8.Exceptional Items - Foreign Exchange (Loss)/Gain	(100.520)
9. Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8)	(97.600)
10. Tax expense	0.100
Deferred Tax Asset	0.000
Minimum alternate tax (MAT)	0.000
MAT Credit Entitlement	0.000
11. Net Profit from ordinary activities after tax (9-10)	(97.700)
12. Extraordinary items	0.000
13. Net Profit (+)/ Loss (-) for the period after taxes (11-12)	(97.700)
14. Paid - Up equity share capital (Face value of the share is Rs. 10)	891.400
15. Reserves excluding Revaluation Reserves	0.000
Earnings per share
a) Before extraordinary items	(1.10)
b) After extraordinary items	(1.10)
PARTICULARS OF SHAREHOLDING
17. Public shareholding
- Number of shares	30417676
- Percentage of shareholding	34.13
18. Promoters and Promoters' Group Shareholding
- (a) Pledged/Encumbered
- No. of Shares	15125000
- Percentage of Shares (as a % of the total outstanding of Promoters and Promoters' groups)	25.76
- Percentage of Shares (as a % of the total share capital of the Company)	16.97
- (b) Non-Encumbered
- No. of Shares	43590445
- Percentage of Shares (as a % of the total outstanding of Promoters and Promoters' groups)	74.24
- Percentage of Shares (as a % of the total share capital of the Company)	48.9

Investor Complaints	3 months ended (30.06.2012)
Pending at the beginning of the quarter.	Nil
Received during the quarter.	6
Disposed off during the quarter.	6
Remaining unresolved at the end of the quarter.	Nil

FIXED ASSETS:

· Land - Leasehold

· Freehold

· Office Premises

· Buildings

· Plant and Machinery

· Electric Installations

· Furniture and Fixtures

· Factory and Office Equipment

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.64
UK Pound	1	Rs.88.17
Euro	1	Rs.73.13

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

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.