MIRA INFORM REPORT

Report Date :

11.06.2013

IDENTIFICATION DETAILS

Name :	GALA PRECISION ENGINEERING PRIVATE LIMITED
Registered Office :	A-59, Road No. 10, Wagle Industrial Estate, Thane-400604, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.02.2009
Com. Reg. No.:	11-190522
Capital Investment / Paid-up Capital :	Rs. 35.237 Millions
CIN No.: [Company Identification No.]	U29268MH2009PTC190522
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and seller of Disc Springs and washers and machines and washing systems.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (37)

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

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject belongs to Gala Group. It is an established company having moderate track record. The Gala group business risk profile is deteriorating. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term Rating : (BB)
Rating Explanation	Moderate risk of default
Date	22.01.2013

Rating Agency Name	CRISIL
Rating	Short term Rating : (A4+)
Rating Explanation	Minimal degree of safety. It carry high credit risk.
Date	22.01.2013

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 :	A-59, Road No. 10, Wagle Industrial Estate, Thane-400604, Maharashtra, India
Tel. No.:	91-22-25821321/25800252/41410404/25821232/25820252
Fax No.:	91-22-25820771
E-Mail :	savita.iyer@galagroup.com
Website:	www.galagroup.com
Factory 1 :	Plot No. 295, Village Vadavali at Post Met, Masurne Road, Bhiwandi-Wada Highway, Taluka Wada, Thane-421312, Maharashtra, India
Tel. No.:	91-2526-220155
Fax No.:	91-2526-220577
Factory 2 :	No. 4 Workshop, 1669 Hu Hang Road, Fengxian District, Shanghai, China
E-Mail :	china@galagroup.com
Germany Branch Office :	Niederlassung Deutschland, 1^st Floor, Lyoner Strasse 14, 60528 Frankfurt am Main Germany
Tel. No.:	+49 69 66 55 41 58 (Ashish Thosar)
Fax No.:	+49 69 66 55 41 59
E-Mail :	ashish.thosar@galagroup.com

DIRECTORS

As on : 29.09.2012

Name :

Mr. Kirit Vishanji Gala

Designation :

Managing Director

Address :

161/162, Tarangan I, Shahid Mangal Pande Road, Thane-400606, Maharashtra, India

Date of Birth/Age :

25.08.1962

Date of Appointment :

01.06.2009

DIN No.:

01540274

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	U99999MH1988PTC047020	GALA SPRINGS PRIVATE LIMITED	Director	14-04-88	14-04-88	-	Active	NO
2	U99999MH1989PTC052116	GALA PRECISION TECHNOLOGY PRIVATE LIMITED	Director	09-06-89	09-06-89	01-06-09	Active	NO
3	U29268MH2009PTC190522	GALA PRECISION ENGINEERING PRIVATE LIMITED	Managing director	01-06-09	01-06-09	-	Active	NO
4	U74120MH2011PTC212582	KUTCHI ANGEL NETWORK PRIVATE LIMITED	Director	20-01-11	20-01-11	-	Active	NO
5	U67190MH2005PLC158288	SHEMAROO ENTERTAINMENT LIMITED	Director	09-12-11	29-08-11	-	Active	NO
6	U72200MH2008PTC188770	DELTECS INFOTECH PRIVATE LIMITED	Additional director	12-03-13	12-03-13	-	Active	NO

Name :

Mrs. Taramati Vishanji Gala

Designation :

Director

Address :

161/162, Tarangan I, Shahid Mangal Pande Road, Thane-400606, Maharashtra, India

Date of Birth/Age :

02.07.1944

Date of Appointment :

23.02.2009

DIN No.:

01540332

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	U99999MH1989PTC052116	GALA PRECISION TECHNOLOGY PRIVATE LIMITED	Director	15-05-95	15-05-95	01-06-09	Active	NO
2	U29268MH2009PTC190522	GALA PRECISION ENGINEERING PRIVATE LIMITED	Director	23-02-09	23-02-09	-	Active	NO

Name :

Mr. Vishanji Harshi Gala

Designation :

Director

Address :

161/162, Tarangan I, Shahid Mangal Pande Road, Thane-400606, Maharashtra, India

Date of Birth/Age :

28.11.1936

Date of Appointment :

30.09.2010

DIN No.:

01540359

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	U99999MH1988PTC047020	GALA SPRINGS PRIVATE LIMITED	Director	14-04-88	14-04-88	-	Active	NO
2	U99999MH1989PTC052116	GALA PRECISION TECHNOLOGY PRIVATE LIMITED	Director	09-06-89	09-06-89	01-06-09	Active	NO
3	U29268MH2009PTC190522	GALA PRECISION ENGINEERING PRIVATE LIMITED	Director	30-09-10	01-06-09	-	Active	NO

Name :

Mr. Balkishan Shyamsunder Jalan

Designation :

Director

Address :

Shankar Charya, Marg Powai, Mumbai-100076, Maharashtra, India

Date of Birth/Age :

23.08.1970

Date of Appointment :

30.09.2010

DIN No.:

02876873

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	U29268MH2009PTC190522	GALA PRECISION ENGINEERING PRIVATE LIMITED	Director	30-09-10	01-11-09	-	Active	NO

Name :

Mr. Satish Dayaldas Kotwanj

Designation :

Director

Address :

C-5/502, Madhav Srishti, Kahdak Pada, Kalyan (West), Thane-421301, Maharashtra, India

Date of Birth/Age :

17.07.1973

Date of Appointment :

30.09.2010

DIN No.:

03154231

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	U29268MH2009PTC190522	GALA PRECISION ENGINEERING PRIVATE LIMITED	Director	30-09-10	01-06-10	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rajendra Despande
Designation :	Vice President
Name :	Mr. Anand Kaundanya
Designation :	Vice President
Name :	Mr. Swapnil Chogle
Designation :	Vice President
Name :	Mr. Raghavendra Prasad
Designation :	Associate Vice President
Name :	Mr. K Mahindran
Designation :	Associate Vice President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 29.09.2012

Shareholders details file Attached

Equity Share Break up (Percentage of Total Equity)

As on : 29.09.2012

Category	Percentage
Directors or relatives of Directors	94.54
Other top fifty shareholders	5.46
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and seller of Disc Springs and washers and machines and washing systems.

Products :

Product Description	Item Code
Disc spring / spring washers	73182100
Vibratory / centrifugal / flow through finishing machines	84609090

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Commercial Branch, Swastik Chambers, Sion-Trombay, Road, Chembur, Mumbai-400071, Maharashtra, India

Facilities :

(Rs. in Millions)

SECURED LOAN	As on 31.03.2012	As on 31.03.2011
Long term borrowings From State Bank of India:
The loans are repayable in 58 monthly installments, commencing from 16 June 2009. The loans are secured by first and exclusive charge by way of hypothecation on fixed assets acquired under terms of Business Transfer Agreement dated 26 May 2009. The loan carries rate of interest of 13.75% to 15.00% per annum.)	14.100	28.200
(The loans are repayable in 60 monthly installments, with moratorium period of 6 months from the 1 July 2011. The loans are secured by first and exclusive charge by way of hypothecation on certain specific equipments financed through the loan. The loan carries rate of interest of 13.75% to 15.00% per annum.)	4.524	--
Vehicle finance loan : (The loans are repayable in equated monthly installments, from the month subsequent to disbursement of the loan. The loans are secured against hypothecation of related vehicles takenunder the loans.)	3.536	0.525
Cash credit and overdraft facility from banks	148.419	139.277
Total	170.579	168.002

Auditors :
Name :	BSR and Company Chartered Accountants
Address :	KPMG House, Kamla Mills Compound, 448, Senapati Bapat Marg, Lower Parel, Mumbai-400013, Maharashtra, India
Subsidiaries :	Gala Precision Components (Shanghai) Private Limited (with effect from 1^st June, 2010)

CAPITAL STRUCTURE

As on : 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs. 110.000 Millions
7000000	Preferences Shares	Rs.10/- each	Rs. 70.000 Millions
	Total		Rs. 180.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2023716	Equity Shares	Rs.10/- each	Rs. 20.237 Millions
1500000	Preferences Shares	Rs.10/- each	Rs. 15.000 Millions
	Total		Rs. 35.237 Millions

Note :

31 March 2012

Particulars	Number	Amount
Equity shares
At the commencement of the period	1.738	17.380
Shares issued	0.285	2.857
At the end of the period	2.023	20.237
6% Non-cumulative compulsorily convertible preference shares
At the commencement of the period	1.500	15.000
Shares issued	--	--
At the end of the period	1.500	15.000

Rights, preferences and restrictions attached to equity shares:

The company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time subject to payment of dividend to preference shareholders. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

31 March 2012

Particulars	Number	% of total shares in the class
Equity shares Rs. 10each, fully paid-up
Kirit Vishanji Gala	0.603	29.82
Vishanji Harshi Gala	0.411	20.32
Rumie Kirit Gala	0.311	15.41
Taramati V Gala	0.260	12.89
6% Non-cumulative compulsorily convertible preference shares of Rs. 10 each, fully paid-up held up
Gala Springs Private Limited	1.500	0.100

Share capital :

Rights, preferences and restrictions attached to preference shares:

1,500,000 6% non-cumulative compulsorily convertible preference shares (CCPS) of Rs. 10 each, fully paid-up were privately placed with Gala Springs Private Limited.

The CCPS are convertible after the term of seven years from the date of issue to 38% of equity share capital post conversion without any downward protection.

The CCPS carries a preferential right as to dividend over equity shareholders. Where dividend is not declared for a financial year, the entitlement for that year lapses. The CCPS are entitled to one vote per share at meetings of the Company on any resolutions of the company directly affecting their rights. In the event of liquidation, preference shareholders have a preferential right over equity shareholders to be repaid to the extent of capital paid-up and dividend in arrears on such shares

Investments in and dues from Gala Precision Components (Shanghai) Private Limited, China. ('Gala China' or 'the subsidiary')

The Company has investments aggregating to Rs. 74571.334 Millions (previous year: Rs. 29512.209 Millions) in its wholly-owned subsidiary, Gala Precision Components (Shanghai) Private Limited. Also, Trade receivables and Loan and advances include Rs. 11506.401 Millions (previous year: Rs. 56225.322 Millions) and Rs. Nil (previous year: Rs. 7665.404 Millions) respectively, due from the said subsidiary. Gala China's net-worth continues to be eroded as at 31 December 2011 as per its audited financial statements. However, considering that Gala China is relatively new to the market in China, management believes that there is a potential for business in this market and is in the process of establishing a foothold and continuously expanding the operations of the subsidiary. Management is confident that the subsidiary will be able to meet its long term business plan and generate profits going forward (the subsidiary has converted from losses into profits in the year ended 31 December 2011). Accordingly, management considers the diminution in the value of investment in the subsidiary not be of a permanent nature and is confident of recovering the amounts due; hence, no provision is considered necessary at this stage by management.

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		35.237	32.380	32.379
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		217.590	152.765	152.218
4] (Accumulated Losses)		0.000	0.000	(16.572)
NETWORTH		252.827	185.145	168.025
LOAN FUNDS
1] Secured Loans		170.580	168.002	176.532
2] Unsecured Loans		46.200	85.000	20.000
TOTAL BORROWING		216.780	253.002	196.532
DEFERRED TAX LIABILITIES		0.603	0.000	0.000
TOTAL		470.210	438.147	364.557
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		159.708	148.900	167.913
Capital work-in-progress		4.803	4.282	11.598
INVESTMENT		103.016	59.049	19.481
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	150.529	140.675	77.100
	Sundry Debtors	117.464	160.556	123.360
	Cash & Bank Balances	2.979	6.780	2.802
	Other Current Assets	0.143	0.060	0.000
	Loans & Advances	33.503	39.209	24.885
Total Current Assets		304.618	347.280	228.147
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.683	71.086	33.887
	Other Current Liabilities	25.920	20.331	17.142
	Provisions	30.332	29.947	11.553
Total Current Liabilities		101.935	121.364	62.582
Net Current Assets		202.683	225.916	165.565
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		470.210	438.147	364.557

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	551.946	412.484	231.148
		Other Income	18.783	5.038	15.609
		TOTAL	570.729	417.522	246.757
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	548.996	399.463	263.330
	PROFIT BEFORE TAX		21.733	18.059	(16.573)
Less	TAX		4.051	0.946	0.000
	PROFIT AFTER TAX		17.682	17.113	(16.573)
	BALANCE CARRIED TO THE B/S		17.682	17.113	(16.573)
	EARNINGS IN FOREIGN CURRENCY		291.557	177.113	57.003
	IMPORTS
		Raw Materials	80.353	46.959	22.931
		Capital Goods	0.160	2.680	0.000
	TOTAL IMPORTS		80.513	49.639	22.931
	Earnings Per Share (Rs.)
	Basic		10.17	9.85	(23.17)
	Diluted		5.94	6.10	(23.17)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.10	4.10	(6.72)
Net Profit Margin (PBT/Sales)	(%)	3.94	4.38	(7.17)
Return on Total Assets (PBT/Total Assets}	(%)	4.68	3.64	(4.18)
Return on Investment (ROI) (PBT/Networth)		0.08	0.10	(0.10)
Debt Equity Ratio (Total Debt /Networth)		0.86	1.36	1.54
Current Ratio (Current Asset/Current Liability)		2.99	2.86	3.65

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	---------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	---------------------
22]	Litigations that the firm / promoter involved in	---------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--------------------
26]	Buyer visit details	--------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN :

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Short term borrowings:
Loan from Directors/shareholders	46.200	75.000
Inter-corporate deposits	--	10.000
Total	46.200	85.000

COMPANY OVERVIEW :

Gala Precision Engineering Private Limited (‘the Company’) was incorporated in 2009.The Company purchased disc spring and mass finishing solution business from Gala Precision Technology Private Limited under Business Transfer Agreement dated 26 May 2009 with effect from 1 June 2009. The Company has its production unit at Wada in Thane District, Maharashtra.

OPERATIONS:

India Operations : (April 2011 to March 2012)

During the year 2011-12, the company have achieved gross turnover of Rs. 606.749 Millions. The above turnover excludes Inter-Unit Sale. There is no impact on profit and loss as the Inter-unit sale took place at Cost and accordingly matching cost was excluded from expenses side. During this period they have achieved Exports Sales of Rs. 291.818 Millions. During the current year the Export Sales have increased against the previous year from Rs. 180.881 Millions to Rs. 291.818 Millions i.e growth of 61.33 % and this has improved their profitability. they could do this due to aggressive market development and adding new customers.

China Operations :-

The 100% WOS in china which was earlier part of Gala Precision Technology private Limited and the same have been taken over by us as a part of BTA and applications to RBI under Automatic route is made and is under process. The 100% WOS in China has achieved a net turnover of Rs.90.299 Millions (RMB 10.586 Millions) during the financial year ended on 31st December 2011 as against the previous year of Rs. 39.956 Millions (RMB 5.850 Millions) registering a growth of 80.96% in RMB. The above sales consist of only DS product. The Directors are confident that China Operations will pick up in the coming years considering the restructuring of business.

Business Development :

The company is expecting increase in growth by utilising the capacity to the maximum and matching the customer orders. Market development efforts are further continuing in this direction to achieve similar growth in 2012-13.

BANKERS CHARGES REPORT AS PER REGISTRY :

Corporate identity number of the company	U29268MH2009PTC190522
Name of the company	Gala Precision Engineering Private Limited
Address of the registered office or of the principal place of business in India of the company	A-59, Road No. 10, Wagle Industrial Estate, Thane-400604, Maharashtra, India Email : savita.iyer@galagroup.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10165862
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Commercial Branch, Swastik Chambers, Sion-Trombay, Road, Chembur, Mumbai-400071, Maharashtra, India Email : sangita.gupta@sbi.co.in
Nature of instrument creating charge	Memorandum of Deposit for Creation of Further Charge (C.10)
Date of instrument Creating the charge	18.05.2012
Amount secured by the charge	Rs. 253.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Extend and operation of the charge: First charge
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1) Land bearing Gut No. 295, Hissa Nos. 2 (Part) & 4 (Part), admn. 12,800 sq. meters, in Village Wadavali, Taluka Wada, Dist. Thane, Maharashtra, India 2) Industrial Plot bearing Gat No.302(p), Khata No.205, Plot No.1, in Village Musarane, Tal. Wada, Dist. Thane, Maharashtra, India admn. 8,000 sq. meres, together with buildings, structures & fixed plant & M/c thereon. 3) Indl. land bearing Gat no.302 (p), Khata No. 206, Plot No. 2, in Village Musarane, Taluka Wada, Dist. Thane, Maharashtra, India admn. 8,000 sq. meters, together with buildings, structures and fixed plant & M/c thereon. 4) Plot No. A-59, admn. 1,105 sq. meters, in Wagle Industrial Estate, Village Panchpakhadi, Taluka and Dist. Thane, Maharashtra, India together with structure and fixed plant and M/c thereon.
Date of instrument modifying the charge	21.06.2011
Particulars of the present modification	Equitable mortgage created on 19/03/2010 on immovable properties of the Co. on 21/06/2011 on properties secure the credit facilities aggregating to Rs.194.200 Millions, extended to furthers secure the enhanced credit facilities aggregating to Rs. 253.200 Millions.

FIXED ASSETS:

• Development Cost
• Bore Well
• Freehold Land
• Leasehold Land
• Factory Building
• Plant and Machinery
• Electrical Installation
• Computers
• Vehicles
• Office Equipments
• Dies and Moulds

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. 57.78
UK Pound	1	Rs. 89.71
Euro	1	Rs. 76.24

INFORMATION DETAILS

Report Prepared by :

NIS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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		37

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.