MIRA INFORM REPORT

Report Date :

12.07.2013

IDENTIFICATION DETAILS

Name :	SOLYVENT FLAKT (INDIA) PRIVATE LIMITED (w.e.f. 06.12.2012)
Formerly Known As :	FLAKT (INDIA) PRIVATE LIMITED
Registered Office :	No.147, Poonamalee High Road, Numbal Village, Kancheepuram – 600 077, Tamilnadu
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	15.05.2002
Com. Reg. No.:	18-048938
Capital Investment / Paid-up Capital :	Rs.118.589 millions
CIN No.: [Company Identification No.]	U29199TN2002PTC048938
PAN No.: [Permanent Account No.]	AAACF6153G
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in manufacture and sale of industrial axial and centrifugal fans, blowers and air treatment equipment.
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 241000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear huge accumulated losses recorded by 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

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 DECLINED

Management non-cooperative

LOCATIONS

Registered Office :	No.147, Poonamalee High Road, Numbal Village, Kancheepuram – 600 077, Tamilnadu, India
Tel. No.:	91-44-26272023
Fax No.:	91-44-26272606
E-Mail :	mohua.dattagupta@flaktwoods.com
Website :	http://www.flaktwoods.in
Factory :	Located at: · Kolkata Tel. No.: 91 33 71204000 Fax No.: 91 33 24901643 · Chennai · Kasna

DIRECTORS

AS ON 12.04.2013

Name :

Mr. Anil Ram Baijal

Designation :

Managing Director

Address :

123, Engineers Co-Operative Group Housing Society, Plot-21, I.P. Extension, Patparganj, Delhi – 110 092, India

Date of Birth/Age :

14.11.1948

Date of Appointment :

18.04.2011

PAN No.:

AAGPB3655A

DIN No.:

02276752

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	U29199TN2002PTC048938	SOLYVENT FLAKT (INDIA) PRIVATE LIMITED	Managing director	18/04/2011	07/05/2003	-	Active	NO
2	U67120WB1893NPL000761	THE BENGAL CHAMBER OF COMMERCE AND INDUSTRY	Director	13/11/2009	13/11/2009	23/09/2011	Active	NO
3	U31103DL2012PTC239785	FLAKTWOODS ACS (INDIA) PRIVATE LIMITED	Director	03/08/2012	03/08/2012	-	Active	NO

Name :

Mr. Aloke Mookherjea

Designation :

Director

Address :

P-553, Pandita Road Extension, 2^nd Floor, Kolkata – 700 029, West Bengal, India

Date of Birth/Age :

20.09.1937

Date of Appointment :

15.05.2002

PAN No.:

AEXPM8917P

DIN No.:

00174385

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	U29199TN2002PTC048938	SOLYVENT FLAKT (INDIA) PRIVATE LIMITED	Director	15/05/2002	15/05/2002	-	Active	NO
2	U85110WB1995PLC071440	MERIDIAN MEDICAL RESEARCH AND HOSPITAL LIMITED	Director	31/05/2005	31/05/2005	-	Active	NO
3	U01409WB2004PTC099181	TITAGARH BIOTEC PRIVATE LIMITED	Director	29/06/2005	29/06/2005	-	Amalgamated	NO
4	U70100WB1946GAP014545	WOODLANDS MEDICAL CENTRE LIMITED	Director	29/12/2005	29/12/2005	-	Amalgamated	NO
5	L27320WB1997PLC084819	TITAGARH WAGONS LIMITED	Director	08/01/2007	08/01/2007	-	Active	NO
6	U93000WB2008PTC127454	EASTERN ENVIRO CARE PRIVATE LIMITED	Director	01/08/2008	01/08/2008	-	Active	NO
7	U85110WB2009PLC140464	WOODLANDS MULTISPECIALITY HOSPITAL LIMITED	Director	25/08/2011	13/01/2011	-	Active	NO
8	U70109WB2008PLC128968	TITAGARH MARINE LIMITED	Nominee director	14/09/2012	11/02/2012	-	Active	NO

Name :

Mr. Sabyasachi Mitra

Designation :

Whole-Time Director

Address :

Flat - 5C, Rajkamal, 128, R.B. Avenue, Kolkata – 700 029, West Bengal, India

Date of Birth/Age :

19.06.1970

Date of Appointment :

18.04.2011

PAN No.:

ADSPM9541R

DIN No.:

01481697

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	U29199TN2002PTC048938	SOLYVENT FLAKT (INDIA) PRIVATE LIMITED	Whole-time director	18/04/2011	28/03/2007	-	Active	NO
2	U31103DL2012PTC239785	FLAKTWOODS ACS (INDIA) PRIVATE LIMITED	Director	03/08/2012	03/08/2012	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Mohua Datta Gupta
Designation :	Secretary
Address :	Flat - 302, Nandana, 172, R.B. Avenue, Kolkata – 700 029, West Bengal, India
Date of Birth/Age :	31.03.1971
Date of Appointment :	31.12.2007
PAN No.:	AIEPG3324K

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 12.04.2013

Names of Shareholders	No. of Shares
Flakt Woods (Luxembourg) Sarl, Luxembourg	11458330
Aloke Mookherjea	100
M. Ganesan	48
Bhupendra Nath Bhattacharya	2
Siben Mitra	2
Anil Ram Baijal	394
Sabyasachi Mitra	39
Espiet Loic	4
Flakt Woods Cyprus Limited, Cyprus	400000
Mohua Datta Gupta	1
Rakesh Kohli	10
Total	11858930

AS ON 12.04.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacture and sale of industrial axial and centrifugal fans, blowers and air treatment equipment.

Products :

Item Code No. (ITC Code)	84144090
Product Description	Fan and Blowers

Brand Names :

"SOLYVENT"

PRODUCTION STATUS [AS ON 31.12.2011]

Particulars	31.12.2011
Licensed Capacity	NA
Installed Capacity *	5,662

(Quantity in Nos.)

Particulars	Actual Production
Fan	6244
Fan Parts	808
Air Handling Units	2096
Parts of Air Handling Unit	25339

*Installed capacity of Kasna factory not ascertainable

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Hongkong and Shanghai Banking Corporation Limited, 30, Rajaji Salai, Chennai – 600 001, Tamilnadu, India

Facilities :

Secured Loan	As on 31.12.2012 (Rs. in Millions)	As on 31.12.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Loans taken for vehicles	0.000	0.129
Total	0.000	0.129

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Address :	Plot No. Y 14, Block EP, Sector V, Saltlake Electronic Complex, Bidhan Nagar, Kolkata – 700 091, West Bengal, India
PAN No:	AAFFP3698A
Ultimate Holding Company (As on 31.12.2011) :	Stromboli Investissements SAS
Indirect Holding Companies (As on 31.12.2011) :	· Ventilation Holding Sweden AB · Ventilation Holding Finland Oy
Direct Holding Company (As on 31.12.2011) :	Flakt Woods (Luxembourg) Sarl
Fellow Subsidiaries (As on 31.12.2011) :	· Ventilation Holding France SAS · Flakt Woods Finance (Luxembourg) Sarl · Semco LLC (formerly Semco Incorporated (USA)) · Semco Duct and Acoustical Products Inc (USA) · Flakt Woods Fans (Australia) Pty Limited · Flakt Woods SA · Flakt Elve NV · Flakt Coiltech Inc. · Woods Air Movement Limited · Flakt Woods AS - Norway · Flakt Woods LLC · Flakt Ou · Flakt Woods Oy · Flakt Solyvent-Ventec SAS · Flakt Woods GmbH · Flakt Woods (Ireland) Limited · Flakt Woods S.P.A · Flakt SIA · Flakt UAB · Flakt Bovent Sp. Zo.o · Flakt Woods Holdings(Poland) Sp.zo.o (till 20^th September, 2011) · LLC Flakt Industrial and Building Systems · Flakt Woods (Singapore) Pte Limited · Flakt Woods Korea Limited · Flakt Woods Fans(Pty) Limited · Flakt Solyvent S.L · Forvaltningsbolaget Ljungarum HB · Flakt Woods AB · Flakt Woods Group SA · American Fan Company Inc · Fan Group Inc · Flakt Woods Limited · UK Woods Flakt Holdings Limited · Woods Holdings Limited · Global Air Movement Holdings Limited (till 6^th December, 2011) · UK Mezzanine Newco Limited(till 6^th December, 2011) · UK AFC Co. Holdings Limited (till 27^th December, 2011) · Global Air Movement Holdings Topaco Limited (till 6^th December, 2011) · Global Air Movement Midco Limited (till 6th December, 2011) · Flakt Woods Holding Sarl · Flakt Woods Ventilatoren GmbH · Flakt Woods AS – Denmark (till 7^th December, 2011) · Woods Fan Limited · Woods Air Movement Topco Limited (till 6^th December, 2011) · Keith Blackman Limited · Air Woods Limited · Blackman Export Co. Limited · Fanmanco Limited · Fan Manufacturing Co Limited · Woods Fan Technology Limited · Woods Air Control Limited · T C Refrigeration Services Limited · Unicoils Airconditioning Limited · Flakt Woods Ventilation (Wuxi) Co Limited · Flakt Woods Cyprus Limited (Formerly Augylia Investments Limited) · Flakt Woods ACS Sarl · Flakt Woods VS Sarl · Airchal SAS · Flakt Woods (Shanghai) Trading Co Limited · Flakt Woods Northern Ireland Branch · The Representative Office of Flakt Woods AB ,Sweden in Russia · Flakt Woods Shanghai Representative Office · FWG Beijing Representative Office · Solyvent do Brasil Ventiladores Industrials Limited · WAM Flakt Limited · KB Flakt Limited · WF Flakt Limited · WAC Flakt Limited
	·

CAPITAL STRUCTURE

AS ON 12.04.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11858930	Equity Shares	Rs.10/- each	Rs.118.589 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	118.589	118.589
(b) Reserves & Surplus	(58.416)	(44.182)
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	60.173	74.707
(3) Non-Current Liabilities
(a) Long-term borrowings	180.000	180.129
(b) Deferred tax liabilities (Net)	2.959	0.000
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	37.232	40.107
Total Non-current Liabilities (3)	220.191	220.236
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	398.783	547.735
(c) Other current liabilities	257.458	307.537
(d) Short-term provisions	103.450	117.133
Total Current Liabilities (4)	759.691	972.405
TOTAL	1040.055	1267.048
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	169.650	204.618
(ii) Intangible Assets	8.692	16.374
(iii) Capital work-in-progress	0.000	0.482
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	22.829	38.686
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	201.171	260.160
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	193.989	236.341
(c) Trade receivables	340.138	494.766
(d) Cash and cash equivalents	154.457	141.091
(e) Short-term loans and advances	120.757	122.657
(f) Other current assets	29.543	12.033
Total Current Assets	838.884	1006.888
TOTAL	1040.055	1267.048

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		78.049
2] Share Application Money		0.000
3] Reserves & Surplus		89.380
4] (Accumulated Losses)		(126.693)
NETWORTH		40.736
LOAN FUNDS
1] Secured Loans		0.784
2] Unsecured Loans		180.000
TOTAL BORROWING		180.784
DEFERRED TAX LIABILITIES		0.000
TOTAL		221.520
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		227.126
Capital work-in-progress		10.292
INVESTMENT		0.000
DEFERRED TAX ASSETS		56.248
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	220.923
	Sundry Debtors	370.339
	Cash & Bank Balances	73.845
	Other Current Assets	220.655
	Loans & Advances	75.190
Total Current Assets		960.952
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	714.191
	Other Current Liabilities	117.992
	Provisions	200.915
Total Current Liabilities		1033.098
Net Current Assets		(72.146)
MISCELLANEOUS EXPENSES		0.000
TOTAL		221.520

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		Sales and Services (Net)	1723.182 (Gross Turnover)	1969.804 (Gross Turnover)	1555.917
		Other Income	NA	NA	144.623
		TOTAL (A)	NA	NA	1700.540
Less	EXPENSES
		Material Consumed etc.	NA	NA	965.723
		Personnel Expenses	NA	NA	207.622
		Other Expenses	NA	NA	500.732
		Provision for Loss on Impairment	NA	NA	183.568
		Exceptional Income/ Expenditure	NA	NA	11.157
		TOTAL (B)	NA	NA	1868.802
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		30.076	(3.180)	(168.262)
Less	FINANCIAL EXPENSES (D)				29.908
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41.351 (Financial and Depreciation Expenses)	56.902 (Financial and Depreciation Expenses)	(198.170)
Less/ Add	DEPRECIATION/ AMORTISATION (F)				68.125
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(11.275)	(60.082)	(266.295)
Less	TAX (H)		2.959	56.248	(54.790)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(14.234)	(116.330)	(211.505)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(243.023)	(126.693)	84.812
	BALANCE CARRIED TO THE B/S		(257.257)	(243.023)	(126.693)
	EARNINGS IN FOREIGN CURRENCY
		Export of goods direct on FOB basis	187.857	38.658	57.814
		Service Sales		5.393	0.922
		Commission Income		5.002	6.856
		Service Income		0.534	0.000
		Other Income		19.274	1.606
	TOTAL EARNINGS		187.857	68.861	67.198
	IMPORTS
		Raw Materials	NA	47.123	17.185
		Components	NA	109.010	51.483
		Capital Goods	NA	0.435	4.041
	TOTAL IMPORTS		NA	156.568	72.709
	Earnings / (Loss) Per Share (Rs.)		(1.20)	(14.05)	(28.55)

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	NA	NA	(12.44)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(17.11)
Return on Total Assets (PBT/Total Assets}	(%)	(1.34)	(5.97)	(22.41)
Return on Investment (ROI) (PBT/Networth)		(0.19)	(0.80)	(6.54)
Debt Equity Ratio (Total Debt/Networth)		2.99	2.41	4.44
Current Ratio (Current Asset/Current Liability)		1.10	1.04	0.93

LOCAL AGENCY FURTHER INFORMATION

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	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

Unsecured Loan	As on 31.12.2012 (Rs. in Millions)	As on 31.12.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Fully convertible debentures others	180.000	180.000
Total	180.000	180.000

CHANGE IN NAME OF THE COMPANY

During the year the name of the Company was changed from FLAKT (INDIA) Private Limited to Solyvent Flakt (India) Private Limited. The Shareholders of the Company approved the proposal to change the name of the Company at the Extra-ordinary General Meeting of the Company held on 22^nd November, 2012. The change of name as above has been approved by the Ministry of Corporate Affairs, Central Government too and the change became effective from 6^th December, 2012.

Solyvent Ventec, one of their Group Company, is the centre of excellence for the products manufactured at their Kolkata and Chennai factories and Solyvent is a well known brand for industrial and process fans especially in cement and steel industries, a sector catered to by the Company. In an exercise to leverage the brand name of "Solyvent" and to expand the growth of the Company, the name of the Company was changed in line with the global set-up, newly created.

FORMATION OF SUBSIDIARY AND DIVESTMENT OF THE AIR CLIMATE SOLUTIONS BUSINESS TO IT

The Company floated a subsidiary called FlaktWoods ACS (India) Private Limited in 2012 with its registered office at New Delhi. Pursuant to the global restructuring policy of the Group’s business, it was decided to divest and transfer the Air Climate Solutions (ACS) Division of the Company to the newly formed subsidiary from 1^st October, 2012.

SALE OF STAKE IN FlaktWoods ACS (India) Private Limited to Flakt Woods ACS Sarl

Pursuant to a strategic move guided by the Group, the stake of the Company in the newly formed subsidiary FlaktWoods ACS (India) Private Limited was sold to one of the companies belonging to the Flakt Woods Group called Flakt Woods ACS Sarl on 30^th November, 2012 at Kolkata.

REVIEW OF OPERATIONS

2012 continued to be a difficult year for the Indian economy, amply reflected in the economic survey presented in the Parliament. Index of Industrial Production (IIP) continued to remain in the negative territory for the second consecutive month in December, 2012 as it contracted by 0.6% as compared to a downwardly revised -0.8% in the previous month. Capital goods production, a measure of investments in factories shrank by 0.9% in December 2012, having grown just once in the nine months since then [Source: CII Economy update – IIP 12.2.13]

The negative growth of the manufacturing sector, driven by a sharp decline in demand conditions in the economy is extremely worrisome.

FIXED ASSETS:

Tangible Assets:

· Freehold Land

· Factory Building

· Other Building

· Plant and Machinery

· Computers

· Office Equipment

· Furniture and Fixtures

· Vehicles

Intangible Assets:

· Trademark

· Capitalised Software

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.59.64
UK Pound	1	Rs.90.14
Euro	1	Rs.77.99

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	SMN

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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.