MIRA INFORM REPORT

Report Date :

12.03.2013

IDENTIFICATION DETAILS

Name :	HINDUSTAN ADHESIVES LIMITED
Registered Office :	340/2-A, G. T. Road, Shahdara, New Delhi - 110095
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.04.1988
Com. Reg. No.:	55-031191
Capital Investment / Paid-up Capital :	Rs. 51.163 Millions
CIN No.: [Company Identification No.]	L74899DL1988PLC031191
TAN No.: [Tax Deduction & Collection Account No.]	DELH00730C
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer, Exporter and Importer of Self Adhesives Tapes and BOPP Films.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 400000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears huge external borrowing recorded by the company which seems to be increasing over years which also act as a threat to the liquidity position of the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with greet 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

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 :	340/2-A, G. T. Road, Shahdara, Delhi - 110095, India
Tel. No.:	91-11-22111379/23719734 / 41650348 / 41650347 / 26714080
Fax No.:	91-11-23328210 / 26191358 / 25131098
E-Mail :	hal@vsnl.com kcd@hindustanadhesives.com msbagla@hindustanadhesives.com
Location :	Owned
Corporate Office :	B-2 / 8, Safdarjung Enclave, New Delhi – 110 029, India.
Tel. No.:	91-11-51650347-48, 51650350 / 26714080
Fax No.:	91-11-51650349 / 26191358
E-Mail :	hal@vsnl.com
Factory :	29^th Mile Stone, Village Achheja, Tehsil Dadri, District Gautam Budh Nagar, Uttar Pradesh
Location :	Owned

DIRECTORS

AS ON 31.03.2012

Name :	Mr. L. K. Bagla
Designation :	Chairman
Name :	Mr. M. S. Bagla
Designation :	Managing Director
Name :	Mr. K C Dwivedi
Designation :	Director
Name :	Mr. K.C. Gupta
Designation :	Director
Name :	Mr. Pawan Sharma
Designation :	Director
Name :	Mr. suresh Ajila
Designation :	Director
Name :	Mrs. Urmila Goenka
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S. S. Dua
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2393329	46.78
Bodies Corporate	640400	12.52
Sub Total	3033729	59.3
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3033729	59.3
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	200	0
Sub Total	200	0
(2) Non-Institutions
Bodies Corporate	896902	17.53
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1051452	20.55
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	87037	1.7
Any Others (Specify)	46980	0.92
Non Resident Indians	4925	0.1
Clearing Members	42055	0.82
Sub Total	2082371	40.7
Total Public shareholding (B)	2082571	40.7
Total (A)+(B)	5116300	100
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0
(1) Promoter and Promoter Group	0	0
(2) Public	0	0
Sub Total	0	0
Total (A)+(B)+(C)	5116300	0

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Self Adhesives Tapes and BOPP Films.

Products :

ITC CODE	Product Description
3919	Self Adhesive Tapes
3920.32	BOPP Film
--	Imported Cars

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Self Adhesives Tapes	SQM	62,000,000	44,875,134
BOPP Film	MT	1,750	1,056.49

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· IDBI Bank, Videocon Tower, Jhandewalan, New Delhi, India

· Allahabad Bank, International Branch, Partiament Street, New Delhi, India

· HDFC Bank

· ICICI Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Term Loan
Allahabad Bank Loan No. I	3.806	0.000
Allahabad Bank Loan No. II	21.920
Working Capital Term Loans from Banks
IDBI	10.640	17.835
Allahabad Bank	6.635	10.494
Cash Credit from Banks
Allahabad Bank	29.410	23.934
IDBI	57.306	58.191
Auto Loans
HDFC Bank	0.828	4.205
ICICI Bank Limited	3.658	0.939
Tata Motors Finance Limited	0.564	0.000
TOTAL	134.767	115.598
NOTES 1. Term loans No.1 from Allahabad Bank is secured by way of hypothecation of all movable and immovable assets financed by the said bank out of the proceeds from disbursal of the said loans 2. Term loans No. II from Allahabad Bank is secured by way of hypothecation of all movable and immovable assets financed by the said bank out of the proceeds from disbursal of the said loans and also equitable mortgage of land and building (to be constructed) situated at Plot No.15 village Mundiyaki, Pargana Mangalore, Tehsil, Roorkee, District Haridwar. 3. Working Capital term loans and cash credit loans are secured against hypothecation of entire stocks of raw materials, work in progress, finished goods, stores and spares, book debts and first charge on fixed assets of the company 4. Auto loans are secured by way of hypothecation of vehicles financed by the Banks. 5. Loans are further guaranteed by Sh. M S Bagla and Sh L K Bagla, Director of the Company.

Banking Relations :	--
Auditors :
Name :	Salarpuria and Partners Chartered Accountants
Address :	1008 Chiranjiv Tower, 43, Nehru Place, New Delhi – 110 019,India
Related Parties :	· Hindustan foils Limited · Agarwal Treacom Private Limited · Bagla Polifilms Limited · Surya Consumer Goods Private Limited · Alora Trading Company Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5116300	Equity Shares	Rs.10/- each	Rs. 51.163 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		51.163	51.163	51.163
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		51.075	33.354	23.760
4] (Accumulated Losses)		0.000	0.000	(12.789)
NETWORTH		102.238	84.517	62.134
LOAN FUNDS
1] Secured Loans		134.767	115.598	117.547
2] Unsecured Loans		30.613	1.686	39.225
TOTAL BORROWING		165.380	117.284	156.772
DEFERRED TAX LIABILITIES		13.400	16.360	12.778
TOTAL		281.018	218.161	231.684
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		104.583	113.708	124.216
Capital work-in-progress		48.220	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	74.397	66.349	52.870
	Sundry Debtors	100.400	79.140	70.719
	Cash & Bank Balances	10.703	4.061	4.026
	Other Current Assets	6.904	6.904	6.904
	Loans & Advances	31.023	27.731	25.938
Total Current Assets		223.427	184.185	160.457
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	64.667	47.200	34.517
	Other Current Liabilities	10.099	13.184	4.699
	Provisions	20.446	19.348	13.773
Total Current Liabilities		95.212	79.732	52.989
Net Current Assets		128.215	104.453	107.468
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		281.018	218.161	231.684

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	629.385	528.089	487.409
		Other Income	0.631	0.037	0.413
		TOTAL	630.016	528.126	487.822
Less	EXPENSES
		Material Consumed and Manufacturing Expenses	490.760	406.674	366.185
		Employees Remuneration and Benefits	33.186	27.274	23.210
		Administrative and Other Expenses	25.604	20.683	19.397
		Sales and Distribution Expenses	20.843	17.271	14.567
		Increase / (Decrease) in Stock	(0.675)	(7.925)	(2.027)
		TOTAL	569.718	463.977	421.332
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		60.298	64.149	66.490
Less	FINANCIAL EXPENSES		18.266	17.310	18.090
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		42.032	46.839	48.400
Less/ Add	DEPRECIATION/ AMORTISATION		15.647	14.171	13.056
	PROFIT / (LOSS) BEFORE TAX		26.385	32.668	35.344
Add/ Less	Extra Ordinary Items		0.000	(9.708)	5.433
Less	TAX		8.665	0.577	16.812
	PROFIT / (LOSS) AFTER TAX		17.720	22.383	23.965
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.594	(12.789)	(36.754)
	BALANCE CARRIED TO THE B/S		27.314	9.594	(12.789)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	58.050	53.031	52.762
	TOTAL EARNINGS		58.050	53.031	52.762
	IMPORTS
		Raw Materials	69.770	46.593	31.014
		Stores & Spares	0.482	0.000	0.000
		Capital Goods	0.245	0.000	1.037
	TOTAL IMPORTS		70.497	46.593	32.051
	Earnings Per Share (Rs.)		3.46	4.37	4.68

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter	6^th Quarter	7^th Quarter
Net Sales	158.700	172.500	171.300	166.300	183.600	191.500	191.300
Total Expenditure	145.700	157.500	157.600	150.900	164.300	171.600	172.100
PBIDT (Excl OI)	13.000	15.000	13.700	15.400	19.300	19.900	19.200
Other Income	0.100	0.000	0.000	0.000	0.000	0.000	0.000
Operating Profit	13.100	15.000	13.700	15.400	19.300	19.900	19.200
Interest	5.200	4.700	5.500	6.000	8.100	9.500	8.400
Exceptional Items	0.000	0.000	0.000	0.000	0.000	0.000	0.000
PBDT	7.900	10.300	8.200	9.400	11.200	10.400	10.800
Depreciation	3.600	4.000	3.900	4.000	5.100	5.600	5.300
Profit Before Tax	4.300	6.300	4.300	5.400	6.100	4.800	5.500
Tax	0.500	1.000	1.000	1.200	1.000	1.000	1.000
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Profit After Tax	3.800	5.300	3.300	4.200	5.100	3.800	4.500
Extraordinary Items	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Net Profit	3.800	5.300	3.300	4.200	5.100	3.800	4.500

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.81	4.24	4.91
Net Profit Margin (PBT/Sales)	(%)	4.19	6.19	7.25
Return on Total Assets (PBT/Total Assets}	(%)	8.04	10.97	12.42
Return on Investment (ROI) (PBT/Networth)		0.26	0.39	0.57
Debt Equity Ratio (Total Debt /Networth)		1.62	1.39	2.52
Current Ratio (Current Asset/Current Liability)		2.35	2.31	3.03

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	No
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)	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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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

Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Bodies Corporate	16.923	0.234
From Directors	2.611	1.452
From Others (Including Deferred Credit)	11.079	0.000
TOTAL	30.613	1.686

OPERATIONS

DURING THE YEAR

The Company continues to increase the sales of its primary finished product namely Carton Sealing Tapes and other specialty Adhesive Coated products by providing the customers an excellent quality product backed by dedicated customer services.  The Company continues to add value to the product and has focus towards using self adhesive tapes as both a security feature and as well as a product branding tool have resulted in higher sales and as well better contribution to the profits of the company in the current year and the same has been well appreciated by leading multinational companies now operating in India.

The Company has now the focus on converting 100% of BOPP film production into adhesive tapes. To achieve this objective the company is installing one new adhesive coating machine which will become operational by September 2011. It has taken part in many International Trade shows in the current year and is hopeful of increasing the exports and thus increases the capacity utilization of its plant and machinery.

In the last financial year the company has substantially improved the total sales of the Company and it is further buoyant for the current year sales as the Indian economy is performing better than most of the global economies in the world and most Indian companies are flourishing and having impressive growth in sales thus increasing the demand for the product manufactured by the Company.

CURRENT SCENARIO

The growing sales of Carton Sealing Tapes and the acceptance of the new products developed by the Company for the Indian market and as well growth in the fast moving consumer goods sector in India for all manufactured products and services provides ample opportunity for the Company to utilize full capacities for production of Self Adhesive Tapes and be able to focus on building its Brand and Image as a quality supplier of Adhesive Coated Products in India.

The goodwill that the Company commands because of superior quality products makes it a preferred choice supplier to many new and existing multinational companies setting up facilities in India and also leading domestic companies who prefer to rely on the company for all of their requirements of packaging tapes.

The Company has decided to further leverage the goodwill that it commands from leading customers in India and is under the process of setting up a "Display Packaging" film commonly called Polyolefin shrink films. The total cost of the new investment being implemented at Roorkee in Uttarakhand is approximately Rs. 120.000 Millions and has been financed by the Allahabad Bank to the extent of Rs. 66.200 Millions and the balance is being invested by internal accruals and unsecured being arranged by the promotes. The production of the new product will commence by October 2011, and will enable the company to take advantage of the 5 years income tax holiday and other benefits available in the State.

The good results of the company has been encouraging the management to expand and explore more opportunities in the adhesive coating business in the future and thus it would be able to take advantage of the global network created by it over the last few years with consistent exports to various parts of the world for different types of packaging materials.

FINANCIAL RESULTS

The total income of the Company has increased substantially by about 19%, whereas the PBIDT has decreased by 9% do to the steep rice in raw materials price during the year and the delay in getting the price increase from its customers.

The Company is confident of further improving the performance in the Current financial year and is pleased to inform you that it is moving towards greater success and prosperity and would keep looking for new opportunities to expand the business in the packaging industry.

FIXED ASSETS

· Land (Freehold)

· Building

· Plant and Machinery

· Electric Installation

· Furniture and Fixtures

· Air Conditioner

· Office Equipment

· Car’s

· Delivery Trucks

· Scooters

· Cycles

· Computers

UNAUDITED FINANCIAL RESULTS FOR THE THREE MONTHS ENDED 31.12.2012

(Rs. in millions)

Sr. No.	Particular	3 Months Ended	3 Months Ended	9 Months Ended	9 Months Ended	Accounting Year March 2012
		Unaudited	Unaudited	Unaudited	Unaudited	Audited
1.	Net Sales/Income from Operations	191.300	171.300	566.400	502.600	669.200
2.	Expenditure
	Consumption of Raw Materials	134.500	116.700	380.200	338.500	450.400
	Staff Cost	11.000	9.300	30.500	24.300	38.100
	Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade	(12.000)	0.500	(8.500)	5.200	(0.400)
	Other Expenditures	38.600	31.100	105.8/00	92.800	122.200
	Depreciation and Amortization Expenses	5.300	3.900	16.000	11.500	15.300
	Interest	8.400	5.500	26.000	15.400	21.000
	f) Total	185.800	167.000	550.000	487.700	646.600
9.	Profit / Loss Before Tax	5.500	4.300	16.400	14.900	22.600
10.	Tax Expense	(1.000)	(1.000)	(3.000)	(3.000)	(1.100)
11.	Net Profit / Loss	4.500	3.300	13.400	12.400	15.700
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	51.200	51.200	51.200	51.200	51.200
15.	Reserves Excluding Revaluation Reserve	80.600	63.500	80.600	63.500	67.200
16.	Earning Per Shares	0.088	0.064	0.262	0.242	0.307
17.	Non Promoted
	-Number of Shares	2082571	2302571	2082571	2302571	2302571
	- Percentage of Shareholding	41$	45%	41%	45%	45%
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil	Nil	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil	Nil	Nil	Nil	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil	Nil	Nil	Nil	Nil
	b) Non Encumbered
	- Number of Shares	3033729	2813729	3033729	2813729	2813729
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100%	100%	100%	100%	100%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	59%	55%	59%	55%	55%

NOTES

1. Above results were taken on record by its Board of Directors at the meeting held on 31.01.2013.

2. Segment reporting as defined in accounting standard 17 is not applicable to the Company

3. There were no complaints from investors outstanding at the beginning of the quarter. The company received Nil complaint from the investors during the qtr.

4. Results for the period ended December 31, 2012 have been received by the auditors of company.

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. 54.29
UK Pound	1	Rs. 81.08
Euro	1	Rs. 70.61

INFORMATION DETAILS

Report Prepared by :

DPT

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	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.