MIRA INFORM REPORT

Report Date :

08.06.2013

IDENTIFICATION DETAILS

Name :	RUSAN PHARMA LIMITED
Registered Office :	Rusan House, 58-D, Government Industrial Estate, Charkop, Kandavli (West), Mumbai – 400 067, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.03.1994
Com. Reg. No.:	11-077069
Capital Investment / Paid-up Capital :	Rs. 48.410 Millions
CIN No.: [Company Identification No.]	U24230MH1994PLC077069
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14490A
PAN No.: [Permanent Account No.]	AABCR3179H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of pharmaceutical formulations, bulk drugs and intermediates
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 2489000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. It has modest scale of operations. The working capital requirement increases substantially leading to weakening of liquidity. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating B
Rating Explanation	High risk of default
Date	February 27, 2013
Rating Agency Name	CRISIL
Rating	Short Term Rating A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	February 27, 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 / Corporate Office :	Rusan House, 58-D, Government Industrial Estate, Charkop, Kandivli (West), Mumbai – 400 067, Maharashtra, India
Tel. No.:	91-22-28682512 / 28682515/28687035
Fax No.:	91-22-28687035/28682515/42383000
E-Mail :	rusan@bom2vsnl.net.in ashok@rusanpharma.com
Website :	www.rusanpharma.com
Factory :	Located at: Dehradun Kandla, Kutch Ankleshwar

DIRECTORS

As on 29.09.2012

Name :

Mr. Dilipkumar Khandbhai Desai

Designation :

Managing director

Address :

D – 67, Gordhan Baug, Jambli Galli, Borivali (W), Mumbai – 400092, Maharashtra, India

Date of Birth/Age :

06.05.1948

Date of Appointment :

21.04.1998

DIN No.:

00076268

Name :

Mr. Ramesh A. Patel

Designation :

Director

Address :

B/8, Bhavana Building, S. V. Road, Kandivli (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

05.12.1939

Date of Appointment :

02.05.1995

DIN No.:

00076665

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	U24230MH1994PLC077069	RUSAN PHARMA LIMITED	Director	02-05-95	02-05-95	19-04-13	Active	NO
2	U65990MH1994PTC081494	TUSCANY HOLDINGS PRIVATE LIMITED	Director	25-04-01	25-04-01	20-04-13	Active	NO
3	U24239MH1998PTC113193	EUROMED INTERNATIONAL PRIVATE LIMITED	Director	14-07-05	14-07-05	20-04-13	Active	NO

Name :

Mr. Navin Satyapal Saxena

Designation :

Director

Address :

302, Sea Castle Co-operative Housing Society Limited, 7 Bunglow Road, Versova, Andheri (West), Mumbai – 400061, Maharashtra, India

Date of Birth/Age :

01.01.1953

Date of Appointment :

15.03.1994

DIN No.:

00109583

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	U24230MH1994PLC077069	RUSAN PHARMA LIMITED	Director	15-03-94	15-03-94	-	Active	NO
2	U73100MH1994PTC083220	NAVIN SAXENA RESEARCH AND TECHNOLOGY PRIVATE LIMITED	Director	23-11-94	23-11-94	-	Active	NO
3	U24239MH1998PTC113193	EUROMED INTERNATIONAL PRIVATE LIMITED	Director	23-01-98	23-01-98	-	Active	NO
4	U24200MH1999PTC122536	RUSAN HEALTH CARE PRIVATE LIMITED	Director	03-11-99	03-11-99	-	Active	NO
5	U24110MH2011PTC216977	NAVICARE PHARMA PRIVATE LIMITED	Director	03-05-11	03-05-11	-	Active	NO
6	U65990MH1994PTC081494	TUSCANY HOLDINGS PRIVATE LIMITED	Director	17-10-12	17-10-12	-	Active	NO

Name :

Mr. Kunal Navin Saxena

Designation :

Managing Director

Address :

302, Sea Castle Co-operative Housing Society Limited, 7 Bunglow Road, Versova, Andheri (West), Mumbai – 400061, Maharashtra, India

Date of Birth/Age :

02.09.1983

Date of Appointment :

05.04.2012

DIN No.:

05267911

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	U24230MH1994PLC077069	RUSAN PHARMA LIMITED	Managing director	05-05-12	05-04-12	-	Active	NO
2	U65990MH1994PTC081494	TUSCANY HOLDINGS PRIVATE LIMITED	Director	17-10-12	17-10-12	-	Active	NO
3	U24200MH1999PTC122536	RUSAN HEALTH CARE PRIVATE LIMITED	Director	19-04-13	19-04-13	-	Active	NO
4	U73100MH1994PTC083220	NAVIN SAXENA RESEARCH AND TECHNOLOGY PRIVATE LIMITED	Director	19-04-13	19-04-13	-	Active	NO
5	U24110MH2011PTC216977	NAVICARE PHARMA PRIVATE LIMITED	Director	19-04-13	19-04-13	-	Active	NO
6	U24239MH1998PTC113193	EUROMED INTERNATIONAL PRIVATE LIMITED	Director	19-04-13	19-04-13	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Navin Satyapal Saxena	3640920
Archana Navin Saxena	1199870
Dilip Khandubhai Desai	50
Usha Dilip Desai	50
Pradip Nanalal Shah	50
Shakuntala Ramesh Patel	50
Ramesh Ambalal Patel	50
TOTAL	4841040

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of pharmaceutical formulations, bulk drugs and intermediates

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Canara Bank, Overseas Branch, Nariman Point, Mumbai – 400 021, Mumbai, Maharashtra, India · HDFC Bank Limited · State Bank of India

Facilities :

Secured Loan	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
1) RUPEE TERM LOANS
From State Bank of India -O/s Br
TL- Ill -A/c No.30783922066	18.728	44.758
TL- IV - A/c No.30349001084	58.796	79.619
TL-V - AIL No.315596637	26.616	26.491
2) VEHICLES LOANS
HDFC Bank Ltd - Dehradun (Indica)	0.285	0.348
HDFC Bank Ltd - Kandla (Safari)	0.637	0.919
-HDFC Bank Ltd - Kandla (SX4)	0.360	--
State Bank of India - Dehradun (Cherwolet)	0.574	0.759
3) TERM LOANS - SECURED
From State Bank of India -O/s Br
TL-I - A/c No.30101632954 Rupees	--	4.349
TL-II - A/c No.30219146983 FCNRB-TL	--	1.820
4) VEHICLES LOANS
VL-I -HDFC Bank Limited	--	0.041
5) Working Capital Loans from Banks
From Banks on Pre-Shipment
Packing Credit - Canara Bank- Overseas Br.	55.563	55.113
Packing Credit -State Bank Of India- Overseas Br.	103.441	76.816
Packing Credit - Foreign Currency	--	38.536
From Banks on Post-Shipment
Bill Purchased - Canara Bank-Overseas Br.	54.707	20.133
Bill Purchased -State Bank Of India- Overseas Br.	30.315	22.680
	350.022	372.382
NOTE 1): a) All the Term Loan from State Bank of India Overseas Branch are on following terms. TL -III: interest Rate @ 11.75% per annum. The loan is repayable in 16 quarterly installments of Rs. 1.900 millions with an initial moratorium of 1 year from the date of first disbursement. The balance 8 quarterly installments are payable from the date of Balance Sheet. TL -IV: interest Rate @ 12.25% per annum. The loan is repayable in 18 quarterly installments of Rs. 5.300 millions with an initial moratorium of 1 year from the date of first disbursement. The balance 8 quarterly installments are payable from the date of Balance Sheet. TL -V: interest Rate @ 12.25% per annum. The loan is repayable in 18 quarterly installments of Rs. 2.700 millions with an initial moratorium of 1 year from the date of first disbursement. The balance 17 quarterly installments are payable from the date of Balance Sheet. b) The above term loans are secured by a first charge by way of mortgage of Building, Plant & Machinery of Kandla, Ankleshwar and Dheradun units both present and future. c) The above term loans are further secured by personal guarantee of Dr.Navin Saxena and corporate guarantee of M/s Tuscany Holding Private Limited (Owner of office premises at Kandivali (West) NOTE 2): a) All the above vehicle loans are on following terms. VL-II: interest Rate @ 11.55% per annum. The loan is repayable in 60 monthly installments of Rs. 0.008 million from the date of first disbursement. The balance 42 monthly installments are payable from the date of Balance Sheet. VL-Ill: interest Rate @ 11.26% per annum. The loan is repayable in 36 monthly installments of Rs. 0.031 million from the date of first disbursement The balance 23 monthly installments are payable from the date of Balance 1 Sheet. VL-IV: interest Rate @ 16.49% per annum. The loan is repayable in 36 monthly installments of Rs. 0.018 million from the date of first disbursement. The balance 24 monthly installments are payable from the date of Balance Sheet. VL-V: interest Rate @ 10% per annum. The loan is repayable in 60 monthly installments of Rs. 0.019 millions from the date of first disbursement. The balance 35 monthly installments are payable from the’ date of Balance Sheet. b) The above vehicle loans are secured by a first charge by way of hypothecation of respective vehicles. NOTE 3): a) All the Term Loan from State Bank of India Overseas Branch are on following terms. TL -I: interest Rate @ 12.25% per annum. The loan is repayable in 16 quarterly installanients of Rs. 14 Lacs with an initial moratorium of 1 year from the date of first disbursement. TL -11: interest Rate @ 12.25% per annum. The loan is repayable in 16 quarterly installments of Rs. 56 Lacs with an initial moratorium of 1 year from the date of first disbursement. b) The above term loans are secured by a first charge by way of mortgage of Building, Plant and Machinery of Kandla, Ankleshwar and Dheradun units both present and future c)The above term loans are further secured by personal guarantee of Dr. Navin Saxena and corporate gurantee of M/s Tuscany Holding Private Limited (Owner of office premises at Kandivali (west) NOTE 4): a) All the Above Vehicles loans are on following terms. VL- I: interest Rate @ 14.25% per annum. The loan is repayable in 36 monthly installments of Rs. 0.021 millions from the date of first disbursement. b) The above vehicles loan is secured by a first charge by way of hypothecation of car. NOTE 5): Packing Credit from State Bank of India and Canara Bank is secured by (a) Hypothecation of Inventory, book debts, other movable Currents assets on Pari Pasu basis and are further guaranteed by personal Guarantee of Dr. Navin Saxena and Corporate guarantee of Tuscany Holding Private Limited. Bill discounting from State Bank of India and Canara Bank is secured by bills drawn on letters of credit issued by approved bank.

Banking Relations :	--
Auditors :
Name :	Gupta Saharia and Company Chartered Accountants
Address :	C – 103, Pranay Nagar, Ram Mandir Road, Vazira Naka Borivali (West), Mumbai – 400092, Maharashtra, India
PAN.:	AACFG8803D
Subsidiaries :	Tuscany Holding Private Limited CIN No. U65990MH1994PTC081494
Associates :	Euromed International Private Limited Navin Saxena Research and Technology Private Limited Rusan Healthcare Private Limited Pharmacare FZE

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4841040	Equity Shares	Rs.10/- each	Rs. 48.410 Millions

Reconciliation of number of equity shares outstanding at the beginning and at the end of the year

Equity Shares	March 31, 2012
	No. of Shares	Rs. In Millions
At the beginning of the year Period	4841040	48.410
Issued during the Period	--	--
Outstanding at the end of the Period	4841040	48.410

Terms/ Rights attached to Equity Shares

The Company has only one class of equity shares, having par value of Rs. 10/- per share. Each holder of equity share is entitled for one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The company has not issued any bonus shares or any shares for consideration other than cash, nor has the company bought shares during the period of five years immediately preceeding the previous year.

Details of share holding more than 5% shares in the company

Name of the shareholder	No. of Shares	% of holding in the class
Dr. Navin Saxena	3640920	75.21
Mrs. Archana Saxena	1199870	24.79

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		48.410	48.410	48.410
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		574.062	543.324	605.442
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		622.472	591.734	653.852
LOAN FUNDS
1] Secured Loans		350.022	372.382	389.061
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		350.022	372.382	389.061
DEFERRED TAX LIABILITIES		0.000	14.391	11.158
TOTAL		972.494	978.507	1054.071
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		415.325	447.525	481.658
Capital work-in-progress		8.603	32.026	21.937
INVESTMENT		15.435	15.695	15.616
DEFERREX TAX ASSETS		5.958	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	224.972	238.100	208.790
	Sundry Debtors	377.020	270.666	408.066
	Cash & Bank Balances	31.519	55.018	80.668
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	76.319	80.117	70.971
Total Current Assets		709.830	643.901	768.495
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	120.191	116.224	163.704
	Other Current Liabilities	49.434	33.328	60.995
	Provisions	13.032	11.088	8.936
Total Current Liabilities		182.657	160.640	233.635
Net Current Assets		527.173	483.261	534.860
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		972.494	978.507	1054.071

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	644.886	608.697	782.818
		Other Income	13.314	13.899	16.237
		TOTAL (A)	658.200	622.596	799.055
Less	EXPENSES
		Cost of materials consumed	294.199	349.666
		Changes in inventories of finished goods and work-in-progress	7.659	(14.374)
		Employee benefits expense	80.035	76.744
		Other expenses	146.671	159.905
		TOTAL (B)	528.564	571.941	610.276
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		129.636	50.655	188.779
Less	FINANCIAL EXPENSES (D)		50.617	44.255	26.921
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		79.019	6.400	161.858
Less/ Add	DEPRECIATION/ AMORTISATION (F)		61.172	62.869	57.511
	PROFIT/ LOSS BEFORE PRIOR PERIOD ITEM		17.847	(56.469)	104.347
Less	PRIOR PERIOD ITEM		1.957	2.465	0.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		15.890	(58.934)	104.347
Less	TAX (H)		(19.491)	3.184	1.151
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		35.381	(62.118)	103.196
Add	MAT CREDIT ENTITLEMENT		0.984	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		461.882	524.000	445.284
Less	APPROPRIATIONS
		Transfer to General Reserve	3.538	0.000	10.320
		Dividend	4.841	0.000	12.103
		Tax on Dividend	0.785	0.000	2.057
	BALANCE CARRIED TO THE B/S		489.083	461.882	524.000
	EARNINGS IN FOREIGN CURRENCY
		Export – FOB Basis	464.586	473.929	NA
	TOTAL EARNINGS		464.586	473.929	NA
	IMPORTS
		Raw Materials	57.823	56.725	42.951
		Capital Goods	0.000	18.823	11.660
	TOTAL IMPORTS		57.823	75.548	54.611
	Earnings Per Share (Rs.)		7.31	(12.83)	21.80

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.37	(9.98)	12.91
Net Profit Margin (PBT/Sales)	(%)	2.46	(9.68)	13.33
Return on Total Assets (PBT/Total Assets}	(%)	1.41	(5.40)	8.35
Return on Investment (ROI) (PBT/Networth)		0.02	(0.10)	0.16
Debt Equity Ratio (Total Debt /Networth)		0.56	0.63	0.59
Current Ratio (Current Asset/Current Liability)		3.89	4.01	3.29

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	No

TURNOVER:

During the year, the Company has achieved an overall Gross Turnover of Rs.653.921 Millions from sales, which includes Export Sales of Rs. 480.657 Millions and Local Sales Rs.173.264 Millions as compared to previous year’s Gross Turnover of Rs.617.143 Millions that includes export sale of Rs. 521.432 and local sales of Rs.95.711 Millions.

OPERATION AND THE OUTLOOK:

During the year, the company has achieved an overall total income of Rs.658.201 millions and earned Net Profit of Rs. 36.365 Millions as compared to previous year’s net Loss of Rs. 62.119 Millions on total income of Rs.622.596 millions. The company could achieve sales increase and could able to generate the profit during the year 2011-12, in spite of pending MHRA approval of the Kandla Facility. The company could increase the Turnover and generate the profit mainly because of focus on API and other Market like South Africa and CIS Countries.

Company has signed supply agreement with market leaders like SANDOZ, TEVA and ALVOGEN for manufacture and supply of products with long term manufacturing agreement. This will bring substantial growth in the turn over with reasonably good profit for the company in the coming Years. Company is now in discussion with above mentioned companies for development of new products of their interest which, if got through successfully, will help company to bring more revenue in years ahead. Rusan has signed Development and supply agreement with TEVA where they will develop products and its dossiers against an upfront payment and also supply the said products for Russian market.

The company’s main focus is long term supply in the tender awarded by South Africa, Department of Health and company expects to achieve a sale of approximately Rs. 300.000 Millions from South Africa Tender. Company is putting more efforts to market more products in Uzbekistan, and Mongolia to register substantial raise in its business turn over from these countries. This, they expect, will also help them in getting MOH tender contract from Uzbekistan.

Company has appointed country Managers for business Development in Kyrgyzstan, South East Asia and Africa. This has helped the company to identify new clients for their products in these territories. They will now be able to get entry for their products in Kyrgyzstan, Hongkong, Thailand, Indonesia and and Malaysia and achieve business in a bigger way. Introducing new products like RUBUPHINE (Nalbuphine) injection, Cutseal (Tissue adhesive), FENSTUD (Fentanyl) Transdermal patches in already established markets and new territories will give further boost in their export sales during coming years.

All out efforts are being made by their team to reinstate the MHRA Certification for their Kandla Plant and in order to achieve this, they are arranging to get their plants re-audited by MHRA authorities during October / November 2012 so that they are able to resurrect their operation in UK and other European countries.

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Office Equipments

· Equipments and Tools for R and D

· Dies

· Air condition

· Electric Installation

· Furniture and Fixture

· Computer

· Vehicles

· Guest House 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 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.56.42
UK Pound	1	Rs.86.54
Euro	1	Rs.73.86

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.