MIRA INFORM REPORT

Report Date :

26.03.2013

IDENTIFICATION DETAILS

Name :	VISHNU CHEMICALS LIMITED (w.e.f. 23.08.2006)
Formerly Known As :	KEYSTONE INDUSTRIES LIMITED
Registered Office :	6/3/662/B/4, 2^nd Floor, Sri Sai Nilayam, Sangeet Nagar Colony, Somajiguda, Hyderabad - 500082, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.01.1993
Com. Reg. No.:	01-046359
Capital Investment / Paid-up Capital :	Rs.594.460 Millions
CIN No.: [Company Identification No.]	L85200AP1993PLC046359
TAN No.: [Tax Deduction & Collection Account No.]	HYDV00354E
PAN No.: [Permanent Account No.]	AAACU7238Q
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Sodium Chromate, Basic Chrome Sulphate, Yellow Sodium and Chronic Acid.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 3900000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears fall in the profitability recorded by the company. The ratings also reflect its delays in debt servicing. This is due to lack of sufficient liquidity to support its high revenue growth. However, trade relations are reported to be fair. Business active. Payments are reported to be slow. 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	CRISIL
Rating	CASH CREDIT : CRISIL D
Rating Explanation	Expected to be in default soon
Date	February, 2013

Note:

Reason for suspended :- Inability to main valid rating in the absence of adequate information.

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/ Corporate Office :	6/3/662/B/4, 2^nd Floor, Sri Sai Nilayam, Sangeet Nagar Colony, Somajiguda, Hyderabad - 500082, Andhra Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	i.d.reddy@gmail.com
Website :	http://www.vishnuchemicals.com
Factory 1 :	Survey No.15 Gaddapotharam, Medak District – 502319, Andhra Pradesh, India
Factory 2 :	Survey No. 18-26 Nandini Road, Bhilai – 490026, Chattisgarh, India
Factory 3 :	Plot No. 57 Phase – III, IDA., Jeedimetla, Hyderabad - 500 055, Andhra Pradesh, India
Factory 4 :	Plot No. 29 IOCL Road, J.N. Pharma City, Parawada, District Vishakapatnam - 531 019, Andhra Pradesh, India
Regional Office :	Locate at: Tamilnadu Delhi Gujarat

DIRECTORS

As on: 31.03.2012

Name :	Mr. Krishna Murthy Cherukuri
Designation :	Chairman and Managing Director
Address :	Pushpam , 8-2-293/82/a/919/1, Road, No. 47, Jubli Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	02.07.1957
Date of Appointment :	02.01.2006
Name :	Mr. Suddarth Cherukuri
Designation :	Director
Address :	Pushpam , 8-2-293/82/a/919/1, Road, No. 47, Jubli Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	12.05.1985
Date of Appointment :	02.01.2006
PAN No.:	AGHPC0087C
Name :	Mrs. Manjula Cherukuri
Designation :	Director
Address :	Pushpam , 8-2-293/82/a/919/1, Road, No. 47, Jubli Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	17.05.1965
Date of Appointment :	02.01.2006
Name :	Mr. Bajrang Lal Bajaj
Designation :	Independent Director
Name :	Mr. U. Dileep Kumar
Designation :	Independent Director
Name :	Mr. V. Vimalanand
Designation :	Independent Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	8959506	75.00
Sub Total	8959506	75.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	8959506	75.00
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	200	0.00
Sub Total	200	0.00
(2) Non-Institutions
Bodies Corporate	191471	1.60
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1238551	10.37
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	1136451	9.51
Any Others (Specify)	419841	3.51
NRIs/OCBs	355481	2.98
Clearing Members	64360	0.54
Sub Total	2986314	25.00
Total Public shareholding (B)	2986514	25.00
Total (A)+(B)	11946020	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	11946020	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Sodium Chromate, Basic Chrome Sulphate, Yellow Sodium and Chronic Acid.

Products :

Product Description	ITC Code
Sodium Bichromate	28415001
Basic Chromium Sulphate	28321003
Chromic Acid	28425001

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Installed Capacity
Sodium Bichromate	Qty/Mts	86000

Note: The API Unit at Jeedimetla being Primarily a R and D facility, installed Capacity there of is not quantifiable (as Certified by the management relied upon by Auditors being a technical matter)

Particulars	Unit	Actual Production
Sodium Bichromate	Qty/Mts	30466.289
Basic Chromium Sulphate	Qty/Mts	30197.000
Yellow Sodium Sulphate	Qty/Mts	20721.626
Chromic Acid	Qty/Mts	434.568
Saccharine	Qty/Mts	601.362

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of Hyderabad
• Andhra Bank
• Indian Overseas Bank
• State Bank of India
• Punjab National Bank
• Union Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans From Banks	401.400	472.183
Long Term Maturities of Finance Lease Obligations	1.736	1.911
Loans repayable on demand
From Banks	600.905	558.623
Total	1004.041	1032.717

Banking Relations :	--
Auditors :
Name :	C K S Associates Chartered Accountant
Address :	87, Nagarjuna, Road # 3, Gagan Mahal Colony, Hyderabad – 500029, Andhra Pradesh, India
Concerns in which key management personnel are proprietors/directors :	Vasantha Transport Corporation KMS Infrastructure Limited Vishnu Life Sciences Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions
60000000	7% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.600.000 Millions
	Total		Rs.750.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11946020	Equity Shares	Rs.10/- each	Rs.119.460 Millions
47500000	7% Cumulative Redeemable Preference Shares	Rs.10/- each	Rs.475.000 Millions
	Total		Rs.594.460 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		594.460	594.460	594.460
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		397.172	311.960	197.603
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		991.632	906.420	792.063
LOAN FUNDS
1] Secured Loans		1004.041	1032.717	1697.612
2] Unsecured Loans		422.692	275.754	56.464
TOTAL BORROWING		1426.733	1308.471	1754.076
DEFERRED TAX LIABILITIES		215.927	167.444	129.972
TOTAL		2634.292	2382.335	2676.111
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1929.289	2033.999	1899.758
Capital work-in-progress		424.871	244.080	287.180
INVESTMENT		2.130	2.130	2.131
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		10.097	1.187	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	696.223	550.047	537.307
	Sundry Debtors	496.361	489.760	297.808
	Cash & Bank Balances	96.308	77.919	120.666
	Other Current Assets	40.882	33.085	13.148
	Loans & Advances	332.569	206.034	184.984
Total Current Assets		1662.343	1356.845	1153.913
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	754.440	527.642	558.121
	Other Current Liabilities	602.802	692.065	88.153
	Provisions	37.196	36.199	20.597
Total Current Liabilities		1394.438	1255.906	666.871
Net Current Assets		267.905	100.939	487.042
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2634.292	2382.335	2676.111

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	3293.660	2874.916	2068.262
		Other Income	22.859	25.818	22.958
		TOTAL (A)	3316.519	2900.734	2091.220
Less	EXPENSES
		Cost of Materials Consumed	1519.971	1273.995
		Changes in Inventories of Finished Goods & Work-in-Progress	(160.201)	(54.670)
		Employee Benefit Expense	102.882	94.557
		Other Expenses	1291.837	1072.419
		TOTAL (B)	2754.489	2386.301	1710.902
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		562.030	514.433	380.318
Less	FINANCIAL EXPENSES (D)		315.335	247.356	210.395
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		246.695	267.077	169.923
Less/ Add	DEPRECIATION/ AMORTISATION (F)		113.436	104.499	99.787
	PROFIT BEFORE TAX (E-F) (G)		133.259	162.578	70.136
Less	TAX (H)		48.047	48.221	54.010
	PROFIT AFTER TAX (G-H) (I)		85.212	114.357	16.126
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		282.874	168.517	152.391
	BALANCE CARRIED TO THE B/S		368.086	282.874	168.517
	EARNINGS IN FOREIGN CURRENCY
		Sodium Saccharin, B C S, S B	1237.103	1175.582	505.596
	TOTAL EARNINGS		1237.103	1175.582	505.596
	Earnings Per Share (Rs.)		4.35	6.79	1.35

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
	1^st Quarter	2^nd Quarter
Net Sales	746.100	717.470
Total Expenditure	620.600	590.800
PBIDT (Excl OI)	125.500	126.670
Other Income	5.480	(5.190)
Operating Profit	130.980	121.480
Interest	80.570	77.440
Exceptional Items	0.000	0.000
PBDT	50.410	44.040
Depreciation	29.500	30.360
Profit Before Tax	20.910	13.680
Tax	6.630	4.170
Provisions and contingencies	0.000	0.000
Profit After Tax	14.290	9.510
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	14.290	9.510

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.57	3.94	0.77
Net Profit Margin (PBT/Sales)	(%)	4.05	5.66	3.39
Return on Total Assets (PBT/Total Assets}	(%)	3.71	4.79	2.29
Return on Investment (ROI) (PBT/Networth)		0.13	0.18	0.08
Debt Equity Ratio (Total Debt/Networth)		2.84	2.83	3.07
Current Ratio (Current Asset/Current Liability)		1.19	1.08	1.73

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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

DETAILS UNSECURED LOAN

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Inter Corporate Deposits	10.000	0.000
Sales tax deferment	16.188	20.354
Long Term Security Deposits from Customers and Suppliers	201.500	131.500
Loans from directors	45.448	45.648
From Others
Inter Corporate Deposits	8.348	17.671
Others	140.880	60.296
Other Loans and Advances
Advance from Contractors	0.328	0.285
Total	422.692	275.754

OPERATIONS:

The fuel oil cost has gone up abnormally during last financial year and the current financial year in view of international barrel price. As the company uses large quantity of fuel oil as energy source by which the profitability of the company during the previous year was affected. Therefore the company has taken up steps to source alternative fuel for saving the cost and improving the profitability which will reflect next financial year. Due to shortage of raw materials the production was not continuous during last financial year. In view of this, they have entered contracts with raw material suppliers during 1st quarter it self for smooth supply for entire year.

FUTURE PLANS:

This year the company is also planning to introduce new product Chrome Oxide Green in its Hyderabad facility which will enhance the company’s turnover and profitability significantly. Furthermore the company is also planning for increasing the capacity of derivatives during the current financial year.

The company is striving to achieve the growth @ 40% every year. The necessary basic infrastructure already created and only fine tuning is required to reach the targets. The product mix is already finalized keeping in view of the market requirement and potential. The company also looks for various possibilities to secure long term raw material supplies. The Management is also planning to reduce the debt burden on balance sheet by improving cash accruals.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

The financial statements have been prepared as per the requirements of the Companies Act, 1956. There are no material departures from the prescribed accounting standards in the adoption of the accounting standards. The management of the company accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflects in a true and fair manner, the form and substance of transactions, and reasonably present the Company’s state of affairs and profits for the year.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The chemical industry is critical for the economic development of any country, providing products and enabling technical solutions in virtually all sectors of the economy.

Global chemical production growth slowed down from 4.4% p.a. in 1999-2004 to 3.6% p.a. in 2004-2009, with global chemical sales in FY10 valued at $3.4 trillion. The industry is increasingly moving eastwards in line with the shift of its key consumer industries (e.g. automotive, electronics, etc.) to leverage greater manufacturing competitiveness of emerging Asian economies and to serve the increasing local demand. This has led to share of Asia in the global chemical industry increasing from 31% in 1999 to 45% in 2009.

With Asia’s growing contribution to the global chemical industry, India emerges as one of the focus destinations for chemical companies worldwide. With the current size of approximately $108 billion1, the Indian chemical industry accounts for ~3% of the global chemical industry. Two distinct scenarios for the future emerge, based on how effectively the industry leverages its strengths and manages challenges. In the base case scenario, with current initiatives of industry and government, the Indian chemical industry could grow at 11% p.a. to reach size of $224 billion by 2017. However, the industry could aspire to grow much more and its growth potential is limited only by its aspirations. In such an optimistic scenario, high end–use demand based on increasing per capita consumption, improved export competitiveness and resultant growth impact for each sub-sector of the chemical industry could lead to an overall growth rate of over 15% p.a. and a size of $290 billion by 2017 (~6% of global industry). This has a potential for further upside in the future considering India’s increasing competitiveness in manufacturing.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
Claims against company not acknowledged as debt	8.641	8.641
Indemnity given by company to the banks for Bank Guarantees and Letters of Credit	163.088	237.925

FIXED ASSETS:

Tangible Assets

• Land
• Buildings
• Plant and Machinery
• Lab Equipments
• R and D Equipment
• Data Process Equipment
• Office Equipment
• Furniture and Fixtures
• Vehicles

Intangible Assets

• Computer Software

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 31ST DECEMBER, 2012

(Rs. In Millions)

SI. No.	PARTICULARS	Quarter Ended		Nine Months Ended
		31.12.2012 (Unaudited)	30.09.2012 (Unaudited)	31.12.2012 (Unaudited)
1	(a) Net Sales /Income from operations	805.694	711.399	2255.778
	(b) Other Operating Income	7.930	6.073	21.413
	Total Income	813.624	717.472	2277.191
	Expenditure
2	a) Increase / Decrease in stock-in-trade	(58.998)	(11.045)	(45.887)
	b) Consumption of raw materials	517.894	372.866	1284.866
	c) Employees Cost	26.537	30.334	80.221
	d) Depreciation	30.307	30.357	90.165
	e) Other Expenditure	205.545	198.648	583.175
	Total Expenditure	721.285	621.160	1992.540
3	Profit from Operations before Other Income, Interest and Exceptional Items (1-2)	92.339	96.312	284.651
4	Other Income	--	(5.187)	0.291
5	Profit Before Interest and Exceptional Items (3+4)	92.339	91.125	284.942
6	Interest (Net)	77.653	77.437	235.656
7	Profit after Interest but before exceptional Items (5-6)	14.686	13.688	49.286
8	Exceptional Items	--	--	--
9	Profit(+)/Loss(-) from Ordinary Activities before Tax (7+8)	14.686	13.688	49.286
10	Tax Expenses	5.066	4.173	15.865
11	Net Profit(+)/Loss(-) from Ordinary Activities after Tax (9-10)	9.620	9.515	33.421
12	Extra Ordinary Items (net of tax expense)	--	--	--
13	Net Profit(+)/Loss(-) for the period - (11-12)	9.620	9.515	33.421
14	Paid up Equity Share Capital(F V Rs.10/-)	119.460	119.460	119.460
15	Reserves Excluding Revaluation Reserves	--	--	--
16	Earning per Share (EPS) ( Rs.)
	a) Basic and Diluted EPS before Extraordinary items for the period, for the year to date and for the previous year	0.11	0.10	0.71
	b)Basic and Diluted EPS after Extraordinary items for the period, for the year to date and for the previous year	0.11	0.10	0.71
17	Public Share Holding
	No. of Shares	2986514	2986514	2986514
	Percentage of share holding	25.00	25.00	25.00
18 A	Promoters and Promoter group shareholding
	a) Pledged/Encumbered
	-Number of Shares	5680687	5680687	5680687
	-Percentage of Shares(as a % of the total shareholding of promoters and promoter group)	63.40	63.40	63.40
	-Percentage of Shares(as a % of the total share capital of the company)	47.55	47.55	47.55
	b) Non - encumbered
	-Number of Shares	3278819	3278819	3278819
	-Percentage of Shares(as a % of the total shareholding of promoters and promoter group)	36.60	36.60	36.60
	-Percentage of Shares(as a % of the total share capital of the company)	27.45	27.45	27.45

PARTICULARS		3 Months Ended December, 2012
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	Nil
	Received during the quarter	Nil
	Disposed Off during the quarter	Nil
	Remaining unresolved at the end of the quarter	Nil

Notes:

1. Corresponding previous period figures have been regrouped / reclassified wherever necessary.

2. The auditors of the company have carried out the limited review of the above unaudited financial results in terms of clause 41 of the listing agreement. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors in their meeting held on 12.02.2013.

3. EPS has been arrived, after making provision for dividend on Preference Share Capital.

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.54.10
UK Pound	1	Rs.82.47
Euro	1	Rs.70.49

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
3OPERATING 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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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	-

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