MIRA INFORM REPORT

Report Date :

09.03.2013

IDENTIFICATION DETAILS

Name :	IREO PRIVATE LIMITED (W.e.f 09.10.2009)
Formerly Known As :	IREO REALTY PRIVATE LIMITED (w.e.f. 18.09.2009) ORANGE REALTY PRIVATE LIMITED
Registered Office :	A-11, 1st Floor, Neeti Bagh, New Delhi - 110049
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.03.2004
Com. Reg. No.:	55-125163
Capital Investment / Paid-up Capital :	Rs. 11298.253 Millions
CIN No.: [Company Identification No.]	U70101DL2004PTC125163
PAN No.: [Permanent Account No.]	AAACO6644B
Legal Form :	Private Limited Liability Company
Line of Business :	The company engaged in the development of integrated township with high quality residential and commercial development.
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 38000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears accumulated losses recorded by the company. However, the company has performed well and earned some profit during the current year. The capital base seems to be strong. 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 – 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan = BBB
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk
Date	August 2012

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-11, 1st Floor, Neeti Bagh, New Delhi - 110049, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	orange.mis@gmail.com sales@ireo.in
Website :	http://www.ireoworld.com
Corporate Office :	Orchid Center, 5^th Floor, Golf Course Road, Sector - 53, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-4754000
Branch Office :	Located At · Chandigarh · Chennai · Ludhiana · Mumbai
Overseas Office :	Located At · New York · Mauritius

DIRECTORS

As on 28.09.2012

Name :	Mr. Madhukar Tulsi
Designation :	Director
Address :	313-B, Terrace Heights 3 Laburnum Apartsments Gurgaon – 122005, Haryana, India
Date of Birth/Age :	08.06.1948
Date of Appointment :	09.08.2005
DIN No.:	00075894
Name :	Mr. Anupam nagalia
Designation :	Director
Address :	EG 3/18, Garden Estate Mg – Road, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	27.10.1956
Date of Appointment :	11.03.2011
DIN No.:	00005054

KEY EXECUTIVES

Name :	Mr. Nitin Sharma
Designation :	Secretary
Address :	Flat No. 1002, Tower No. 17, Vipul Greens, Sector 48, Sohna Road, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	21.01.1978
Date of Appointment :	20.04.2011
Pan No.:	AYCPS7265H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders (Equity Share )	No. of Shares
Ireo Investment Holding – III Limited, Republic of Mauritius	336453877
Ireo Management – I Limited, Republic of Mauritius	200
Total	336454077

Names of Shareholders (Preference Share )	No. of Shares
Ireo Investment Holding – III Limited, Republic of Mauritius	793371250
Total	793371250

As on 31.12.2012

Names of Allottee (Equity Share )	No. of Shares Allotted
Dequeen Limited, Nicosia	42387625
Total	42387625

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The company engaged in the development of integrated township with high quality residential and commercial development.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Kotak Mahindra Bank Limited, 15 - 16, UGF, Ambadeep Building,, 14 K G Marg, New Delhi - 110001, Delhi, India

· Axis Trustee Services Limited Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Rupee term loans from banks	375.000	875.000
Short-term borrowings
Rupee term loans from banks	1952.802	154.241
Total	2327.802	1029.241
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	Golf View Tower B, Sector 42, Sector Road, Gurgaon-122002, Haryana, India
PAN.:	AALFS0506L
Fellow Subsidiary company :	· Dequeen Limited · Luzige Limited · Sethos Limited
Holding company :	IREO Investment Holding III Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	· Ireo Victory Valley Private Limited · Sunflower Real Tech Private Limited · Ireo Hospitality Company Private Limited · Ireo Residences Company Private Limited · G. P. Realtors Private Limited · Ireo Realtors Private Limited · Ireo Waterfront Private Limited · Puma Realtors Private Limited · Accent Builders Private Limited

CAPITAL STRUCTURE

After 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1125000000	Equity Shares	Rs.10/- each	Rs.11250.000 Millions
1250000000	Preference Shares	Rs.10/- each	Rs.12500.000 Millions
	Total		Rs.23750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
378841702	Equity Shares	Rs.10/- each	Rs.3788.417 Millions
793371250	Preference Shares	Rs.10/- each	Rs.7933.713 Millions
	Total		Rs.11722.130 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1125000000	Equity Shares	Rs.10/- each	Rs.11250.000 Millions
1250000000	Preference Shares	Rs.10/- each	Rs.12500.000 Millions
	Total		Rs.23750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
336454077	Equity Shares	Rs.10/- each	Rs.3364.541 Millions
793371250	Preference Shares	Rs.10/- each	Rs.7933.713 Millions
	Total		Rs.11298.253 Millions

Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liqudation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts including the amounts payable to preference shareholders. The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms of redemption of preference shares

Of the above 793,371,250 preference shares, 321,703,500 shares of Rs. 10 each were issued on March 29, 2006 and 471,667,750 shares of Rs. 10 each were issued on April 28, 2007. These shares were redeemable at par after three years from the date of their respective allotment. Subsquently, the Board of directors has decided that in view of the long term business plans, the preference shares shall not be redeemed before March 31, 2015.

Shares held by the holding company

Particular	Rs. In Millions
Ireo Investment Holding III Limited, the holding company equity shares of Rs.10 each	3364.541
793,371,250 preference shares of Rs.10 each	7933.713

Disclosure of shareholding more than five per cent in company

Name of shareholder	Number of shares held in company	Percentage of shareholding in company
EQUITY SHARE
Ireo Investment Holding – III Limited, Republic of Mauritius	336,454,077	100.00%
PREFERENCE SHARE
Ireo Investment Holding – III Limited, Republic of Mauritius	793,371,250	100.00%

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		11298.253	11066.016	11066.016
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(1707.792)	(1499.131)	(913.351)
NETWORTH		9590.461	9566.885	10152.665
LOAN FUNDS
1] Secured Loans		2327.802	1029.241	2006.025
2] Unsecured Loans		9684.782	8490.351	8452.851
TOTAL BORROWING		12012.584	9519.592	10458.876
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		21603.045	20446.477	20611.541
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		338.754	369.477	326.371
Capital work-in-progress		62.323	2.469	32.277
INVESTMENT		0.000	2982.413	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29553.384	19405.266	0.000
	Sundry Debtors	157.430	0.000	0.000
	Cash & Bank Balances	103.565	200.141	539.094
	Other Current Assets	504.556	94.476	16264.460
	Loans & Advances	5371.421	8206.311	8353.296
Total Current Assets		35690.356	27906.194	25156.850
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1155.814	1162.451	111.957
	Other Current Liabilities	13282.865	9613.616	4815.556
	Provisions	49.709	38.009	20.410
Total Current Liabilities		14488.388	10814.076	4947.923
Net Current Assets		21201.968	17092.118	20208.927
MISCELLANEOUS EXPENSES		0.000	0.000	43.966
TOTAL		21603.045	20446.477	20611.541

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	NA	NA	25.676
		Other Income
		TOTAL	NA	NA	25.676
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	700.718
		Advertising Expenses
		TOTAL	NA	NA	700.718
	PROFIT / (LOSS) (BEFORE TAX		12.692	(585.780)	(675.042)
Less	TAX		3.808	0.000	(11.190)
	PROFIT / (LOSS)AFTER TAX		8.884	(585.780)	(663.852)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1499.131)	(913.351)	(249.499)
Add	Balance brought fwd erstwhile of IREO Realtors Private Limited pursuant to scheme of amalgamation		(16.326)	0.000	0.000
Add	Loss after tax for the period 01.04.2009 to 31.03.2011 of erstwhile of IREO Realtors Private Limited pursuant to scheme of amalgamation		(201.219)	0.000	0.000
	BALANCE / (LOSS)CARRIED TO THE B/S		(1707.792)	(1499.131)	(913.351)
	Earnings Per Share (Rs.)		0.01	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	(2585.50)
Return on Total Assets (PBT/Total Assets}	(%)	0.04	(2.07)	(2.60)
Return on Investment (ROI) (PBT/Networth)		0.00	(0.06)	(0.07)
Debt Equity Ratio (Total Debt /Networth)		1.25	1.00	1.03
Current Ratio (Current Asset/Current Liability)		2.46	2.58	5.08

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	No
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

Particular	As on 31.03.2012	As on 31.03.2011
Long-term borrowings
Bonds/debentures	9684.782	6990.351
Short-term borrowings
Loans repayable on demand	0.000	1500.000
Total	9684.782	8490.351

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U70101DL2004PTC125163
Name of the company	IREO PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A-11, 1st Floor, Neeti Bagh, New Delhi - 110049, India orange.mis@gmail.com
This form is for	Creation of charge
Type of charge	· Any interest in immovable property · Book debts · Movable property (not being pledge) · Floating charge · Goodwill · Others (Intellectual property)
Particular of charge holder	Axis Trustee Services Limited Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400025, Maharashtra, India debenturetrustee@axistrustee.com
Nature of instrument creating charge	Deed of Hypothecation dated 30/08/2012 in favour of Axis Trustee Services Limited, (acting as Security Trustee for the benefit of Standard Chartered bank in respect of Credit facilities of Rs. 3000.000 Millions)
Date of instrument Creating the charge	30.08.2012
Amount secured by the charge	Rs. 3000.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + Margin as per the terms of attached sanction letter. Margin As may be agreed by bank from time to time.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	The Borrower as the legal and/ or beneficial owner of the Hypothecated Property, as Security for the outstanding, does hereby hypothecate, and charge in favour of the Security Trustee (for the benefit of the Secured Parties) on a first ranking pari passu charge basis, as per the details of attached deed of hypothecation, on a first ranking pari passu charge basis: (i) All rights, titles, interests and benefits in all and singular under and in respect of the Group Housing Accounts as detailed in attached DOH (ii) All the rights, title, interest, benefit, claims and demands whatsoever of the Borrower in to under and/or in respect of the Insurance Policies (iii) all rights title interest and benefit in all and singular of the whole of the Borrowers moveable machinery (iv) all rights, titles, interests and benefits in all and singular under and in respect of the Accounts and all accounts in relation thereto and all Receivables

AS PER WEBSITE

PRESS RELEASE

GROWING INDIAN REAL ESTATE COMPANY IREO DEPLOYS IBM’S MANAGED DISASTER RECOVERY SOLUTION FOR SECURE IT ENVIRONMENT

New Delhi, India - 23 Jul 2012: IBM (NYSE: IBM) today announced the successful implementation of Business Continuity and Disaster Recovery services at IREO Private Limited, a fully integrated real estate company in India. Through this 10-year engagement, IREO will have access to a dedicated, cost-effective data center environment, ensuring a sophisticated risk management capability. The Disaster Recovery solution will be hosted in an IBM managed data center in Bangalore. IBM will also perform the 24/7 monitoring and management of the hosted infrastructure.

Established in 2004, IREO is a leading real estate organization with a pan-India foot print of projects, including that in National Capital Region (NCR), Haryana, Punjab, Tamil Nadu, and Maharashtra. IREO also has plans to execute projects in prime locations across 3,000 acres of land. In 2011 IREO engaged IBM for the implementation and maintenance of a robust Business Continuity and Disaster Recovery service. The engagement gives the real estate company access to IBM’s world-class skills and capabilities and helps them save on the investment required for building their own data center.   

In India, real estate being a highly competitive and growing business, enterprises are moving towards minimum downtime, as business continuity is playing a significant role in organizational growth. Also with business operations expanding, they are faced with the need to step up the hosting capabilities and IT resources to support it. For IREO, any prolonged downtime could have a huge business impact in terms of being able to access document management – a very important piece for the real estate industry, and key e-business applications needed for the company’s sales process.  In addition, key areas like daily price management, order management, sales process and documentation would be impacted by any downtime. The Business Continuity and Disaster Recovery solution will enable undisrupted operation at IREO, ensuring better customer service for the company. 

“We needed to ensure that our data center was always up and running as it was becoming increasingly necessary for us to have a reliable, resilient and secure IT infrastructure that could support the growing needs of our business operations. We were looking for a partner who could manage our disaster recovery needs, enabling us to focus on our core business area of real estate,” said Rajesh Garg, VP Business development and Technology, IREO. “By leveraging the IBM Disaster Recovery Solution we were not only able to reduce our capital expenditure by 30%, but we also have access to reliable and scalable enterprise class infrastructure being managed by skilled personnel.”

“IBM brings its experience to companies of all sizes that want to be proactively prepared for any kind of risk or disaster, better utilize their existing manpower, increase reliability, flexibility, and set up the right kind of infrastructure to reduce their time to market,” said KS Raghunandan, Director, Integrated Technology Services, Global Technology Services, IBM India/South Asia “Choosing the right infrastructure recovery service provides clients with a secure, risk free environment avoiding the complexity associated with hiring highly skilled resources. It also equips them with an alternate work environment to minimize loss of employee productivity, thus meeting their needs for continuous operations.”

IREO TO INVEST RS 38000.000 MILLIONS ON HYATT-BRANDED HOTEL, RESIDENCES

NEW DELHI: Private equity fund Ireo will invest up to $700 million (about Rs.38000.000 Millions) to develop luxury residences as well as a hotel and has tied up with the global hotel chain Hyatt for managing the projects.

"We have entered into management agreements with Hyatt Hotels Corporation for branded 'Grand Hyatt' residences and a 'Grand Hyatt' hotel in our large township project in Gurgaon. The project cost will be between $650-700 million," Ireo's Senior Vice-President (Hospitality) Pankaj Dugar said.

The company has already raised $2 billion since 2004 for developing realty projects in India.

It would invest part of this fund and raise some debt to finance the 29-acre project that comprises 265 branded homes, 460 rooms luxury hotel and 4 lakh sq ft office space and 3 lakh high-street retail. This project is part of Ireo city in Gurgaon.

Dugar said the company has also tied up with London-based Foster+Partners for doing the architecture of the project and Tony Chi for interior designing.

The price of the branded residential units will be a minimum of Rs.120.000 Millions. The size of the units would range from 4,600 sq ft to 10,000 sq ft. The project is expected to be operational in 2017.

As per the terms of the management agreement, Hyatt Hotels Corporation will manage the residences and the 460-room hotel property and will provide services and facilities.

On being asked if Hyatt group was looking at any more such partnerships in India, Hyatt Hotels Corporation Global Head (Residential Development) John M Burlingame said: "We are always looking at opportunities for the growth of the company."

Chicago-headquartered Hyatt Hotels Corporation now manages 10 hotel properties in India. But this is the hospitality chain's maiden entry into managing the branded residences segment in the country.

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.54.40
UK Pound	1	Rs.81.57
Euro	1	Rs.71.24

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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
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.