MIRA INFORM REPORT

Report Date :

04.07.2013

IDENTIFICATION DETAILS

Name :	MIRC ELECTRONICS LIMITED
Registered Office :	Onida House, 91, MIDC, Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.01.1981
Com. Reg. No.:	11-023637
Capital Investment / Paid-up Capital :	Rs.141.938 Millions
CIN No.: [Company Identification No.]	L32300MH1981PLC023637
TAN No.: [Tax Deduction & Collection Account No.]	MUMM21150D
PAN No.: [Permanent Account No.]	AAACM8055A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer and Exporter of Display Devices including Color TV, LCD and LED, Washing Machines and Air Conditions.
No. of Employees :	1600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 7900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears continuous dip in the total income past some years. The company has incurred loss from it operation during 2013 and also in 2012. However, trade relations are fair. Business Is active. Payment terms are usually correct. The company can be considered for business dealings at usual 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB- (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	22.05.2013

Rating Agency Name	CRISIL
Rating	A3 (Short Term Rating)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	22.05.2013

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 :	Mr. Kamlesh Talekar
Designation :	Senior Account Manager
Contact No.:	91-22-66975802
Date :	03.07.2013

LOCATIONS

Registered Office :	Onida House, 91, MIDC, Mahakali Caves Road, Andheri (East), Mumbai - 400093, Maharashtra, India
Tel. No.:	91-22-28200435 / 56975777
Fax No.:	91-22-28384499 / 28325068
E-Mail :	kamlesh.tekar@onida.com info@onida.net response@onida.com ajayendra.jain@onida.com corporate.sales@onida.com anoop.pillai@onida.com shivkumar.jaiswal@onida.com
Website :	http://www.onida.com
Factory 1 :	Village Kudus, Bhiwadi Wada Road, Taluka Wada, Thane – 421312, Maharashtra, India
Factory 2 :	B-204/205, Phase – II, Noida – 201305, Uttar Pradesh, India
Factory 3 :	Khasra No. 399 to 401 and 405 to 410, 158 Kms Milestone, Delhi - Roorkee Highway - NH-58 Village - Mundiyaki, Pargana - Manglorur, Tehsil - Roorkee, District Hariwar (Uttarakhand) – 247670, India

DIRECTORS

As on: 31.03.2013

Name :	Mr. Gulu L. Mirchandani
Designation :	Chairman and Managing Director
Qualification :	B.E. (Mechanical)
Other Directorship	He was President of ‘Consumer Electronics and TV Manufacturers Association’ and Chairman of the Bombay Chapter of the World Presidents’ Organisation (WPO)
Name :	Mr. Vijay J. Mansukhani
Designation :	Managing Director
Qualification :	Graduate from the College of Marine Engineering, Mumbai
Experienced:	30 Years
Other Directorship	He is the Managing Director of Adino Telecom Limited, a joint venture with Enkay Telecommunications (India) Limited
Name :	Mr. Shyamsunder Dhoot,
Designation :	Whole-time Director
Date of Birth :	01.04.1960
Qualification :	Production Engineer
Date of Appointment :	16.02.2013
Name :	Mr. Manoj K. Maheshwari
Designation :	Director
Qualification :	B.Sc.(Chemistry) and Post Graduate in Industrial Management
Name :	Mr. Vimal Bhandari
Designation :	Director
Date of Birth :	23.08.1958
Qualification :	Chartered Accountant
Other Directorship	He is currently An Executive Director on the Board of Infrastructure Leasing and Financial Services Limited
Name :	Mr. Ranjan Kapur
Designation :	Director
Date of Birth :	25.11.1942
Qualification :	Masters – English from Delhi University and degree is Advbanced Studies from Advertising Agencies Association of America
Other Directorship :	He is thr Director of Pedilite Industries Limited, Abbott India Limited, Hitech Plast Limited, MIC Electronics Limited, Nimbus Communications Limited.

KEY EXECUTIVES

Name :	Mr. Kamlesh Talekar
Designation :	Senior Account Manager
Name :	Mr. Anoop Pillai
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on: 31.03.2013

Category of shareholder	Number of Shares	Percentage of Holdings
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	50968193	35.96
Bodies Corporate	1435160	1.01
Any Others (Specify)	25688283	18.12
Trusts	25688283	18.12
Sub Total	78091636	55.09
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	78091636	55.09
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2700	0.00
Financial Institutions / Banks	1208	0.00
Insurance Companies	801200	0.57
Foreign Institutional Investors	6958822	4.91
Sub Total	7763930	5.48
(2) Non-Institutions
Bodies Corporate	10603129	7.48
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	34071503	24.04
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	9409507	6.64
Any Others (Specify)	1811973	1.28
Clearing Members	477218	0.34
Non Resident Indians	875841	0.62
Trusts	458914	0.32
Sub Total	55896112	39.43
Total Public shareholding (B)	63660042	44.91
Total (A)+(B)	141751678	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)	141751678	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Sl. No.	Name of the Shareholder	No. of Shares held	As a % of grand total (A)+(B)+(C)	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Gulita Securities Limited	10,91,160	0.77	0.77
2	Adino Electronics Limited	3,44,000	0.24	0.24
3	Gulu L Mirchandani	1,99,85,348	14.10	14.10
4	G L Mirchandani	9,76,010	0.69	0.69
5	Gita Gulu Mirchandani	50,11,256	3.54	3.54
6	Kaval G Mirchandani	1,25,02,829	8.82	8.82
7	Kaval G Mirchandani	14,000	0.01	0.01
8	Sasha G Mirchandani	1,24,78,370	8.80	8.80
9	Sasha G Mirchandani	380	0.00	0.00
10	IIFL Trustee Services Limited	2,56,88,283	18.12	18.12
	Total	7,80,91,636	55.09	55.09

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Adonis Electronics Private Limited	6345849	4.48	4.48
2	Surya Prakash Heda	2617287	1.85	1.85
3	Hypnos Fund Limited	6492322	4.58	4.58
	Total	15455458	10.90	10.90

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Display Devices including Color TV, LCD and LED, Washing Machines and Air Conditions.
Exports :
Products :	Display Devices including Color TV, LCD and LED, Washing Machines and Air Conditions
Countries :	Dubai
Imports :
Products :	Display Devices including Color TV, LCD and LED, Washing Machines and Air Conditions
Countries :	· China · Hong Kong · Malaysia · Japan
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

1600 (Approximately)

Bankers :

· State Bank of India

· ICICI Bank Limited

· HDFC Bank Limited

· IDBI Limited

· Canara Bank

· Royal Bank of Scotland

· Yes Bank Limited

· Axis Bank Limited

· Corporation Bank

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

LONG-TERM BORROWINGS

Term Loan from Banks

0.000

150.014

SHORT-TERM BORROWINGS

Cash Credit Facility

978.414

556.508

Others

150.000

250.000

Total

1128.414

956.522

Note:

Security	31st March, 2013 Rs. in Millions	Repayment terms
Secured by pari passu charge in favour of the bankers by hypothecation of Company's current assets and on the Company's immovable and movable properties except the Land and Building and Plant and Machinery embedded to the earth in Roorkee.	150.014	Monthly in equal installments payable over a period of three years

Banking Relations :
Auditors :
Name :	N. M. Raiji and Company Chartered Accountants
Subsidiary :	Akasaka Electronics Limited
Enterprise over which any person described in 2 and 3 is able to exercise significant influence :	· Iwai Electronics Private Limited · Adino Telecom Limited · Gulita Wealth Advisors Private Limited

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
168020000	Equity Shares	Rs.1/- each	Rs.168.020 Millions
2000000	5% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.200.000 Millions
10000	8% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.1.000 Millions
1000000	11% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.100.000 Millions
	Total		Rs.469.020 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
141751678	Equity Shares	Rs.1/- each	Rs.141.752 Millions
248000	Forfeited Equity Shares		Rs.0.186 Million
	Total		Rs.141.938 Millions

Reconciliation of Equity Shares outstanding

PARTICULARS	31st March, 2013
Fully paid up shares
At the beginning of the year	14,17,51,678
At the end of the year	14,17,51,678
Partly paid up shares
At the beginning of the year	2,48,000
At the end of the year	2,48,000

Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash

In FY 2009-10 : 7,48,96,669 Equity Shares were alloted and 7,48,96,575 Equity Shares were cancelled as per the Scheme of Amalgamation of Guviso Holdings Private Limited. with the Company.

Details of Shareholders holding more than 5 % of the issued shares

Name of Shareholder	31st March, 2013
	Total Shares Held	As a % of Total Shares
Mr. Gulu L. Mirchandani	2,09,61,358	14.79
IIFL Trustee Services Limited (Beneficial owner Mr. Vijay J. Mansukhani)	2,56,88,283	18.12
Mr. Kaval G. Mirchandani	1,25,16,829	8.83
Mr. Sasha G. Mirchandani	1,24,78,750	8.80

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	141.938	141.938	141.938
(b) Reserves & Surplus	1847.399	2133.770	2523.167
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1989.337	2275.708	2665.105
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	150.014	350.006
(b) Deferred tax liabilities (Net)	0.000	154.479	181.223
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	21.281	21.512	17.631
Total Non-current Liabilities (3)	21.281	326.005	548.860
(4) Current Liabilities
(a) Short term borrowings	1128.414	1216.508	1054.480
(b) Trade payables	3396.816	3092.716	3687.298
(c) Other current liabilities	698.285	806.383	785.944
(d) Short-term provisions	25.787	54.184	176.907
Total Current Liabilities (4)	5249.302	5169.791	5704.629
TOTAL	7259.920	7771.504	8918.594
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1541.383	1649.490	2064.498
(ii) Intangible Assets	0.632	0.844	0.937
(iii) Capital work-in-progress	76.666	0.000	0.628
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	262.485	262.485	262.485
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	375.817	413.573	439.313
(e) Other Non-current assets	4.502	3.360	0.000
Total Non-Current Assets	2261.485	2329.752	2767.861
(2) Current assets
(a) Current investments	1.668	1.946	2.945
(b) Inventories	2510.624	3035.972	3464.621
(c) Trade receivables	1325.448	1275.016	1635.095
(d) Cash and cash equivalents	307.300	285.119	471.259
(e) Short-term loans and advances	353.250	402.392	576.241
(f) Other current assets	500.145	441.307	0.572
Total Current Assets	4998.435	5441.752	6150.733
TOTAL	7259.920	7771.504	8918.594

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	12922.901	16492.794	19125.659
		Other Income	20.092	25.526	33.778
		TOTAL (A)	12942.993	16518.320	19159.437
Less	EXPENSES
		Cost of materials consumed	4740.331	6390.774	18413.989
		Purchases of Stock-in-Trade	5373.473	6531.001
		Changes in inventories of Finished goods, Work-in-progress and Stock-in-Trade	459.736	280.331
		Employees benefit expenses	772.321	922.638
		Other Expenses	1520.846	2185.463
		Exceptional Items	0.000	50.122
		TOTAL (B)	12866.707	16360.329	18413.989
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.286	157.991	745.448
Less	FINANCIAL EXPENSES (D)		387.165	358.633	177.303
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(310.879)	(200.642)	568.145
Less/ Add	DEPRECIATION/ AMORTISATION (F)		157.875	215.498	216.042
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(468.754)	(416.140)	352.103
Less	TAX (H)		(182.383)	(267.430)	79.178
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(286.371)	(389.397)	272.925
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1053.477	1442.874	1361.990
Less	APPROPRIATIONS
		Equity Dividend	0.000	0.000	141.752
		Tax on Dividend	0.000	0.000	22.996
		Transfer to General Reserve	0.000	0.000	27.293
	BALANCE CARRIED TO THE B/S		767.106	1053.477	1442.874
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	171.614	120.732	259.405
	TOTAL EARNINGS		171.614	120.732	259.405
	IMPORTS
		Raw Materials	3465.126	4182.245	10932.771
		Finished Goods – Stock in Trade	3228.590	4501.291	0.000
		Capital Goods	76.541	56.397	78.207
	TOTAL IMPORTS		6770.257	8739.933	11010.978
	Earnings/ (Loss) Per Share (Rs.)		(2.02)	(2.75)	1.93

Expected Sales (2013-14) : Rs.18000.000 Millions

The above information has been parted by Mr. Kamlesh Talekar.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(2.21)	(2.36)	1.42
Net Profit Margin (PBT/Sales)	(%)	(3.63)	(2.52)	1.84
Return on Total Assets (PBT/Total Assets}	(%)	(6.77)	(5.54)	4.07
Return on Investment (ROI) (PBT/Networth)		(0.24)	(0.18)	0.13
Debt Equity Ratio (Total Debt /Networth)		0.57	0.60	0.53
Current Ratio (Current Asset/Current Liability)		0.95	1.05	1.08

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Acceptances and Buyers Credit	2662.439	2323.558	2104.922
Others	734.377	769.158	1582.376
Total	3396.816	3092.716	3687.298

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	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

PERFORMANCE:

During the year, the Turnover of the Company stood at Rs. 13652.300 Millions as against Rs. 17351.500 Millions, during the previous financial year, a decline in turnover by 21.32%. The Company incurred a net loss of Rs. 286.400 Millions as against a net loss of Rs. 389.400 Millions recorded during the previous financial year.

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
SHORT-TERM BORROWINGS
Term Loan	0.000	410.000
Total	0.000	410.000

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Belying hopes of recovery, India's economic growth rate is estimated to slip to a decade's low of 5 per cent in 2012-13, pulled down by poor performance of manufacturing, agriculture and services sectors. The previous low at 4 per cent was recorded in 2002-03.

India's industrial output registered a sluggish 1 percent growth in 2012-13, the worst performance in more than two decades, due to poor show by the manufacturing and mining sectors. However, the factory output, measured in terms of the Index of Industrial Production (IIP), witnessed some improvement towards the end of the year, but overall performance remained sluggish. The Consumer electronics and durables market in India is divided into three segments namely

• White Goods (ACs, Refrigerators, Washing Machines, Microwave ovens etc.)

• Brown Goods (TVs, CD/DVD players, radio, still camera etc.)

• Grey Goods: IT and Telecom equipment used in offices such as Fax machines, computers, printers etc.)

Consumer electronics (durables) sector continues to be the main stay of the Indian electronic industry contributing about 32% of the total hardware production. The market is expected to grow at 10 to 12% annually. Some high growth categories within this segment include mobile phones, TVs and music systems. Consumer Durables play an important role in the economy of the nation. Consumer Durables sector contributes more than 5.5% to the IIP and also is an employment intensive sector. Considering the low levels of penetration of Consumer Durables, this sector has immense growth potential and job creating opportunities.

By 2015 it is expected that every village in India will be connected by an all weather road, and will have internet connectivity and almost all homes will have electricity connection and possess a mobile phone. The industry thus expects the rural market to reach an inflexion point which could lead to explosion in demand.

The future thus appears quite encouraging. Besides, low penetration levels, easy availability of finance options, growing prominence of consumer electronics' retail stores, online retail industry and a robust 400 million plus Indian middle class with a comprehensive rise in level of affluence is also fuelling the demand in this industry.

MIRC stands attractively positioned in this regard for more than 25 years, the company leveraged advanced technology, focused on introduction of innovative products aligned with evolving Indian lifestyles and in doing so, emerged as a popular household brand. Gradually the company has extended from televisions to a range of successful products comprising air-conditioners, LCD/ LED TVs, Mobiles phones, Microwave ovens, DVD players, Washing Machines etc.

At Mirc, this evolution and growth has been driven by its innovation-driven research and development team resulting in the creation of cutting-edge products of the highest quality and standards designed as per the needs of the Indian consumers.

4. OUTLOOK

The coming year provides us with tremendous opportunity and they are motivated by the thought of building a stronger MIRC. While there will undoubtedly be challenges, they believe that they have a sound strategy and a strong management team to lead this change.

In the times to come, Brand strength, product mix, a well-established distribution network, after-sales service, and technological superiority would be factors which will determine the competitive advantage of industry players. Market shares are expected to consolidate; however, the pace of consolidation would decline. While major industry players would continue to focus on prices in the low-medium range, advertising and promotional spends would continue to be an integral part of the company's expenses.

With easy availability of finance, fall in prices due to increased competition, growth of media, growth in consumer base of rural sector, the consumer durables industry is growing at a fast pace. Given these factors, a good growth is projected in the future, too.

The Company has extended its offerings under the Onida brand across products as well as geographical boundaries. The company expects to increase its presence in these products and emerge as a leading solutions provider for electronic home improvement goods. The company has also positioned an exclusive brand 'IGO' for the rural market to capture the potential demand from the rural areas. Since rural market offers a great opportunity to expand its business the company will be making an aggressive rural foray through 'IGO' branded products in LCD/LED and Washing Machine segments.

CONTINGENT LIABILITIES

(Rs. in Millions)

PARTICULARS	31st March 2013	31st March 2012
Contingent Liabilities
a) Guarantees given to Bank against which Rs. Nil (previous year Rs. Nil) has been deposited as margin money	145.335	156.522
b) Guarantees given to bank on behalf of Subsidiary company - Akasaka Electronics Limited	213.200	213.200
c) Income tax demands in respect of which appeals have been filed	18.845	7.769
d) Excise Duty, Service Tax and Custom Duty in respect of which appeals have been filed	270.880	3113.640
e) Claims made against the Company not acknowledged as debts	666.185	368.112

FIXED ASSETS:

Intangible Assets

· R and D Software

Tangible Assets

· Leasehold Land

· Freehold Land

· Buildings

· Plant and Machinery and Electrical Fittings

· Furniture, Fixtures and Equipments

· Motor Vehicles

· R and D-Building

· R and D- Plant and Machinery and Electrical Fittings

· R and D- Furniture, Fixture and Equipments

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] 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.60.10
UK Pound	1	Rs.91.07
Euro	1	Rs.77.95

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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

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.