MIRA INFORM REPORT

Report Date :

08.06.2013

IDENTIFICATION DETAILS

Name :	IRIS COMPUTERS LIMITED
Registered Office :	E-69, Vasant Marg, Vasant Vihar, New Delhi – 110 057
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.08.1996
Com. Reg. No.:	55-081490
Capital Investment / Paid-up Capital :	Rs.41.368 Millions
CIN No.: [Company Identification No.]	U72100DL1996PLC081490
PAN No.: [Permanent Account No.]	AAACI9670H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trading of IT Equipment.
No. of Employees :	250 (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 2480000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB (Long Term Rating)
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	March, 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.

LOCATIONS

Registered Office :	E-69, Vasant Marg, Vasant Vihar, New Delhi – 110 057, India
Tel. No.:	91-11-26146808/ 51661350/ 54/ 26782505
Fax No.:	91-11-26149613/ 26782510
E-Mail :	sanjiv.krishen@iriscomputers.net iriscare@iriscomputers.net rakesh.bihal@iris.com anilguptaca@hotmail.com rakesh.bihal@iriscomputers.net somarya@iriscomputers.net
Website :	http://www.iriscomputers.net
Locations :	Owned
Corporate Office :	A-155, Road No.4, Mahipalpur, New Delhi – 110 037, India
Tel. No.:	91-11-26782505
Fax No.:	91-11-26782510

DIRECTORS

As on 25.08.2012

Name :

Mr. Sanjiv Krishen

Designation :

Director

Address :

E-69, Vasant Marg, Vasant Vihar, New Delhi – 110 057, India

Date of Birth/Age :

24.03.1948

Qualification :

Graduate

Date of Appointment :

28.08.1996

DIN No :

01356670

PAN No.:

AASPK3393E

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	U72100DL1996PLC081490	IRIS COMPUTERS LIMITED	Director	28/08/1996	28/08/1996	-	Active	NO
2	U80221DL2002PTC114903	COMPAREX India Private Limited	Director	09/04/2002	09/04/2002	14/10/2011	Active	NO
3	U45201DL2004PTC123800	ZYGON INFRASTRUCTURES PRIVATE LIMITED	Director	07/10/2004	07/10/2004	07/09/2008	Active	NO
4	U72200DL2005PTC137596	YULAN SOFTWARE PRIVATE LIMITED	Director	14/06/2005	14/06/2005	-	Strike off	NO
5	U30007DL2005PTC142032	IMPACT IT SOLUTIONS PRIVATE LIMITED	Director	22/05/2006	22/05/2006	-	Active	NO
6	U28910DL2007PTC163399	IMPACT INFRASTRUCTURE PRIVATE LIMITED	Director	14/05/2007	14/05/2007	-	Active	NO
7	U72200DL2007PTC170127	Impact IT Outsourcing Private Limited	Director	02/11/2007	02/11/2007	-	Strike off	NO
8	U72900DL2009PTC189527	IRIS GLOBAL SERVICES PRIVATE LIMITED	Whole-time director	20/04/2009	20/04/2009	-	Active	NO
9	U71210DL2009PTC190128	IRIS CDP Rental Private Limited	Director	08/05/2009	08/05/2009	-	Active	NO

Name :

Mr. Som Nath Arya

Designation :

Director

Address :

M-98, Ground Floor, Saket, New Delhi - 110 017, India

Date of Birth/Age :

12.05.1944

Qualification :

B.E. Electronics (Hons)

Date of Appointment :

15.04.2005

DIN No :

00162973

PAN No.:

AAAPA3428L

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	U74899DL1991PTC045653	INTERGER MANAGEMENT SERVICES PRIVATE LIMITED	Managing director	13/09/1991	13/09/1991	-	Active	NO
2	U74899DL1991PTC045704	INTEGER LEASING AND FINANCE COMPANY PRIVATE LIMITED	Managing director	18/09/1991	18/09/1991	26/07/2010	Active	NO
3	U45201DL2004PTC123800	ZYGON INFRASTRUCTURES PRIVATE LIMITED	Director	07/10/2004	07/10/2004	07/09/2008	Active	NO
4	U72100DL1996PLC081490	IRIS COMPUTERS LIMITED	Director	15/04/2005	15/04/2005	-	Active	NO
5	U72200DL2005PTC137596	YULAN SOFTWARE PRIVATE LIMITED	Director	14/06/2005	14/06/2005	-	Strike off	NO
6	U30007DL2005PTC142032	IMPACT IT SOLUTIONS PRIVATE LIMITED	Director	22/05/2006	22/05/2006	-	Active	NO
7	U70109DL2007PTC162720	INTEGER INFRASTRUCTURE PRIVATE LIMITED	Director	30/04/2007	30/04/2007	-	Active	NO
8	U74140DL2007PTC163369	INTEGER CONSULTANCY SERVICES PRIVATE LIMITED	Director	14/05/2007	14/05/2007	26/07/2010	Active	NO
9	U72200DL2007PTC170127	IMPACT IT OUTSOURCING PRIVATE LIMITED	Director	02/11/2007	02/11/2007	-	Strike off	NO
10	U72900DL2009PTC189527	IRIS GLOBAL SERVICES PRIVATE LIMITED	Whole-time director	20/04/2009	20/04/2009	-	Active	NO
11	U71210DL2009PTC190128	IRIS CDP RENTAL PRIVATE LIMITED	Director	08/05/2009	08/05/2009	-	Active	NO
12	U21014DL2011PTC217340	ELKAY SOFTPACK PRIVATE LIMITED	Additional director	03/10/2012	03/10/2012	18/04/2013	Active	NO

Name :

Ms. Kamini Talwar

Designation :

Director

Address :

A2/102, Uniworld City, Sector – 30, Village Silokhra, Gurgaon – 122 002, Haryana, India

Date of Birth/Age :

31.05.1960

Qualification :

M.Com, ICWA

Date of Appointment :

15.04.2005

DIN No :

01391323

PAN No.:

ACDPT1406A

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	U72100DL1996PLC081490	IRIS COMPUTERS LIMITED	Director	15/04/2005	15/04/2005	-	Active	NO
2	U72900DL2009PTC189527	IRIS GLOBAL SERVICES PRIVATE LIMITED	Director	01/05/2009	01/05/2009	-	Active	NO
3	U71210DL2009PTC190128	IRIS CDP RENTAL PRIVATE LIMITED	Director	08/05/2009	08/05/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.08.2012

Names of Shareholders	No. of Shares
Sanjiv Kirshen	1822095
Deepa Krishen	909990
Newco Group Limited, British Virgin Islands	335331
ESAPI Limited, Bahamas	342650
Sanjay Krishen	38500
Som Nath Arya	130690
Kamini Talwar	130690
Sanjiv Krishen – HUF	43805
Kanta Krishen	10
Rakesh Bihal	2000
Jairaj Singh	1000
Manoj Kumar	2000
Rajesh Kandpal	1000
R. Sundaesan	2500
Sameer Chaudhary	5000
Kuldeep Kumar	2000
Suresh Joshi	1000
Anil Singh	1000
Grechkesh Diman	2000
Kunal Dutt Tiwari	1000
Monica Bhatia	1000
Neena Jaswal	2500
Patel Nilesh	2500
Jayesh Bhavsar	1000
Vinod Kumar Mishra	2500
D.V.N. Sai Krishna	1000
Prasad M.K	2000
Sunshine Housecon Limited, India	50000
Sharadaraj Tradefin Limited, India	50000
Consortium Financial Resources Limited, India	100000
Lawrence Buildcon Limited, India	75000
Sunmoon Vision Infradevelopers Private Limited, India	75000
Total	4136761

As on 25.08.2012

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]	16.00
Bodies corporate	8.00
Directors or relatives of directors	74.00
Other top fifty shareholders	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trading of IT Equipment.

Products :

Item Code No. (ITC Code)	99611841
Product Description	Computing Machinery and Packaged Software

Imports :

Products :

IT Equipment

Countries :

Singapore

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

Corporates

· Arthur Andersen

· Bank of America

· Citibank

· Merrill Lynch

· Data Quest

· US Software

· Western GECO

· Delhi Police

· Defence Ministry

· NTPC

· Uttaranchal Government

· BHEL

No. of Employees :

250 (Approximately)

Bankers :

• Axis Bank Limited, 4/10, OPG House, Asaf Ali Road, New Delhi – 110 002, India
• HDFC Bank Limited, Sandoz House, Worli, Mumbai – 400 013, Maharashtra, India
• Indian Bank, Mehrauli Institutional Area, New Delhi - 110 016, India
• Axis Bank Limited, Plot No.2, CSR Building, Nelson Mandela Road, Vasant Kunj, New Delhi – 110 070, India
• Citibank N.A., Jeevan Bharti Building, 4^th Floor, 124, Connaught Circus, Connaught Place, New Delhi – 110 001, India
• State Bank of India
• ING Vysya Bank Limited, Narian Manzil, Ground Floor, Shop No. G1 to G5, I Floor, Shop No.1001 to 1007, Barakhamba Road, New Delhi – 110 001, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Long-term maturities of finance lease obligations	0.735	0.470
SHORT-TERM BORROWINGS
Working capital loans from banks	625.868	744.558
Total	626.603	745.028

Banking Relations :	--
Financial Institution :	3i Infotech Trusteeship Services Limited, 3^rd to 6^th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400 703, Maharashtra, India
Auditors :
Name :	Jain Christopher, Srikanth and Srikanth Chartered Accountants
Address :	2^nd Floor, Uniworth Plaza, #20, Sankey Road, Bangalore – 560 020, Karnataka, India
Tel. No.:	91-80-23347000
Fax No.:	91-80-23316852
E-Mail:	odmin@jcssglobal.com
Website:	http://www.jcssglobal.com
PAN No.:	AADFJ0586H
Associates over which Key Managerial Personnel or their relatives are able to exercise significant influence :	IRIS Unified Technologies Limited (Previously Known as IRIS Unified Learnings Limited) IRIS CDP Rental Private Limited IRIS Global Services Private Limited Integer Management Services Private Limited Integer Infrastructure Private Limited Impact IT Solutions Private Limited Impact Infrastructure Private Limited

CAPITAL STRUCTURE

As on 25.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4136761	Equity Shares	Rs.10/- each	Rs.41.368 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		41.368	37.493	35.693
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		578.681	435.406	373.140
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		620.049	472.899	408.833
LOAN FUNDS
1] Secured Loans		626.603	745.028	902.864
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		626.603	745.028	902.864
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1246.652	1217.927	1311.697
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.074	28.974	32.851
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		13.545	9.866	8.970
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1002.259	654.971	560.137
	Sundry Debtors	1882.411	2658.813	2300.137
	Cash & Bank Balances	155.684	30.491	60.262
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	228.658	195.292	50.642
Total Current Assets		3269.012	3539.567	2971.178
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1815.584	2132.206	1645.384
	Other Current Liabilities	56.452	64.921	49.991
	Provisions	172.943	163.353	5.927
Total Current Liabilities		2044.979	2360.480	1701.302
Net Current Assets		1224.033	1179.087	1269.876
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1246.652	1217.927	1311.697

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	10961.093	8113.432	8650.997
		Other Income	82.762	113.325	138.874
		TOTAL (A)	11043.855	8226.757	8789.871
Less	EXPENSES
		Purchases of stock-in-trade	10950.858	7933.234	8560.200
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(347.288)	(94.834)
		Employee benefit expense	75.319	63.999
		Other expenses	103.738	105.007
		TOTAL (B)	10782.627	8007.407	8560.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		261.228	219.350	229.671
Less	FINANCIAL EXPENSES (D)		154.320	119.365	123.783
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		106.908	99.985	105.888
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.556	5.869	5.657
	PROFIT BEFORE TAX (E-F) (G)		104.352	94.116	100.231
Less	TAX (H)		34.702	31.850	36.030
	PROFIT AFTER TAX (G-H) (I)		69.650	62.266	64.201
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	234.610	170.409
	BALANCE CARRIED TO THE B/S		NA	NA	234.610
	EARNINGS IN FOREIGN CURRENCY
		Export of goods	10.347	179.202	39.971
		Export of Services	0.000	10.939	10.651
	TOTAL EARNINGS		10.347	190.141	50.622
	IMPORTS
		Purchase of traded goods	503.228	625.823	841.139
	TOTAL IMPORTS		503.228	625.823	841.139
	Earnings Per Share (Rs.)		18.24	17.40	17.99

Particulars	31.03.2013
Sales Turnover (Approximately)	16000.000

The above information has been parted by Mr. Som Nath Arya (Director).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.63	0.76	0.73
Net Profit Margin (PBT/Sales)	(%)	0.95	1.16	1.16
Return on Total Assets (PBT/Total Assets}	(%)	3.18	2.64	3.34
Return on Investment (ROI) (PBT/Networth)		0.17	0.20	0.25
Debt Equity Ratio (Total Debt/Networth)		1.01	1.58	2.21
Current Ratio (Current Asset/Current Liability)		1.60	1.50	1.75

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	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last four 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	Yes
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	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

BACKGROUND

The Company was incorporated on August 28, 1996 as an unlisted public company with liability limited by shares under ‘The Companies Act, 1956’, with its registered office in the national capital territory of Delhi. The main objects of the Company are to do the business of distribution of computers, notebooks and other electronic equipments in India and abroad.

The Company is an authorized distributor for the technology products of IBM, Lenovo, Dell, HCL, APC, Belkin, Samsung, Lexmark, Acer, Numeric, Tudor, Viewsonic, Zicom, Canon and Microsoft and has a presence in almost all states through 32 offices across the country.

FINANCIAL RESULTS / OPERATIONS

Iris completed one more successful year on March 31, 2012 with a revenue of Rs 11043.900 millions and a net profit before tax of Rs 104.300 millions.

Last year was of a very significant year for Iris, not only because they crossed the landmark target of Rs.10000.000 milliona, but also they over achieved it by Rs.1000.000 millions taking the growth to 34 % over the previous year. It became even more significant since this increased revenue was achieved without HP business since they had discontinued distribution of HP products last year.

Major contributors in this growth were Lenovo by 40%, HCL 77%, IBM 36%, Dell 56% whereas Canon and Samsung growth was multifold over the previous year. In addition they also started distributing Ateis audio equipment, Lexmark printers and Numeric UPS which also contributed significantly to Iris business growth.

Debtors and inventory play a serious role in the distribution business. They continued their focus on extending credit to the dealers very cautiously to improve their profitability and reduce exposure on bad debts. Similarly they also accelerated their effort and focus on reducing inventory. Increased bank interest rates, however, resulted in high increase in finance cost which was a big dampener.

The outlook for IT distribution in India continues to be encouraging although the Indian economy in general has slowed down a bit. They are still very bullish on Iris future growth and are continuing to look for adding more products in their distribution profile. During this new year (after April 01, 2012) they have ventured in to the Telecom industry and started distributing MTS smart phones in NCR.

Bankers Charges Report as per Registry

Corporate identity number of the company	U72100DL1996PLC081490
Name of the company	IRIS COMPUTERS LIMITED
Address of the registered office or of the principal place of business in India of the company	E-69, Vasant Marg, Vasant Vihar, New Delhi – 110 057, India E-Mail: rakesh.bihal@iriscomputers.net
This form is for	Creation of charge
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	CIN No.: L85110KA1930PLC000124 ING Vysya Bank Limited, Narian Manzil, Ground Floor, Shop No. G1 to G5, I Floor, Shop No.1001 to 1007, Barakhamba Road, New Delhi – 110 001, India E-Mail: giridharvvrn@ingvysyabank.com
Nature of description of the instrument creating or modifying the charge	Deed of General Hypothecation.
Date of instrument Creating the charge	29.04.2013
Amount secured by the charge	Rs.100.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: CC : IVBR+2.30% WCDL (Sub limit to CC): At negotiated rates. PBG (Sub limit to CC): Commission 1.05%p.a. all inclusive to be collected upfront. Terms of Repayment: CC : On Demand WCDL (Sub limit to CC): Max 180 days. PBG (Sub limit to CC): Maximum 12 months including claim period. Margin: CC: 25% margin on stocks and book debts upto 90 days WCDL (Sub limit to CC) : 25% margin on stocks and book debts upto 90 days PBG (Sub limit to CC) : 20% Extent and Operation of the charge: First pari passu charge on the current assets of the company both present and future. Others: CC : Rs.100.000 millions WCDL (Sub limit to CC) : Rs.(80.000) millions PBG (Sub limit to CC) : Rs.(20.000) millions
Short particulars of the property charged	The whole of the Current Assets of the company/namely, stocks of raw materials, stocks in process, semi-finished goods, stores and spares not relating to Plant and Machinery (Consumable Stores and Spares), Bills Receivable and Book-debts and all other assets and movables both present and future or wherever located in India.

FIXED ASSETS:

Tangible Assets

v Leasehold Improvements

v Buildings

v Computers

v Office Equipments

v Furniture and Fixtures

v Vehicles

Intangible Assets

v Computer 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.56.74
UK Pound	1	Rs.88.53
Euro	1	Rs.75.20

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--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
-	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.