MIRA INFORM REPORT

Report Date :

28.03.2013

IDENTIFICATION DETAILS

Name :	NATIONAL PEROXIDE LIMITED
Registered Office :	Neville House, J N Herdia Road, Ballard Estate, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.03.1954
Com. Reg. No.:	11-09254
Capital Investment / Paid-up Capital :	Rs.57.470 Millions
CIN No.: [Company Identification No.]	L24299MH1954PLC009254
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	The Subject engaged in Manufacturing of Peroxygens.
No. of Employees :	119 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 5900000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track record. There appears some dip in the turnover and profitability of the company it its due to shutdown and sluggish market conditions and also due to lower sales realization arising from higher imports at lower prices. However, trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings trade terms and conditions.

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	FITCH
Rating	NATIONAL LONG TERM RATING : FITCH A (IND)
Rating Explanation	This rating denote expectations of low default risk
Date	December, 2011

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 / Head Office :	Neville House, J N Herdia Road, Ballard Estate, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22618071
Fax No.:	91-22-22665966 / 22613519
E-Mail :	secretarial@naperol.com
Website :	http://www.naperol.com
Factory :	N.R.C. Road, P. O. Atali, Via Mohone, District Thane, Kalyan - 421 102, Maharashtra, India
Tel. No.:	91-251-2270094/2270670/2270673
Fax No.:	91-251-2270669/2270671
E-Mail :	mktg@naperol.com

DIRECTORS

As on 31.03.2012

Name :	Ness N. Wadia
Designation :	Chairman
Name :	P. V. Kuppuswamy
Designation :	Director
Name :	K. N. Suntook
Designation :	Director
Name :	R. Batra
Designation :	Director
Name :	J. S. Bilimoria
Designation :	Director
Name :	D. N. Mehta
Designation :	Director
Name :	N. P. Ghanekar
Designation :	Director
Name :	S. R. Lohokare
Designation :	Managing Director
Qualification :	B. Tech. (Hons.) (Chemical Engg.); P. G.D.I.M.; M.F. M. (Bombay University)

KEY EXECUTIVES

Name :	S. A. Gaikwad
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2012

Category of Shareholder	No. of Shareholders	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6325	0.11
Bodies Corporate	2522440	43.89
Sub Total	2528765	44.00
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	5250	0.09
Bodies Corporate	1494000	26.00
Sub Total	1499250	26.09
Total shareholding of Promoter and Promoter Group (A)	4028015	70.09
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	825	0.01
Sub Total	825	0.01
(2) Non-Institutions
Bodies Corporate	269750	4.69
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1333851	23.21
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	85350	1.49
Any Others (Specify)	29209	0.51
Clearing Members	7763	0.14
Non Resident Indians	21446	0.37
Sub Total	1718160	29.90
Total Public shareholding (B)	1718985	29.91
Total (A)+(B)	5747000	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)	5747000	0.00

BUSINESS DETAILS

Line of Business :

The Subject engaged in Manufacturing of Peroxygens.

GENERAL INFORMATION

No. of Employees :

119 (Approximately)

Bankers :

• State Bank of India
• Canara Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Loans Repayable on Demand:
Cash Credits (Secured by a first charge by way of hypothecation of stocks and book debts and second mortgage of all the Company’s immovable properties.)	52.643	88.517
Total	52.643	88.517

Banking Relations :	--
Auditors :
Name :	S. B. Billimoria and Company Chartered Accountants
Solicitors and Advocates :	Crawford Bayley and Company
Wholly owned Subsidiary :	Naperol Investments Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5747000	Equity Shares	Rs.10/- each	Rs.57.470 Millions

Notes:

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

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

In last 5 years, no classes of shares has been issued either by payment being received in cash or brought back nor bonus issues made by the Company.

Following are the names of the shareholders with numbers of Equity Shares holding more than 5 percent of the total Equity Shares:

Name of the Equity Shareholders	Numbers of Shares	Percentage
	31.03.2012
Macrofil Investments Limited	1884065	32.78
Solvay S A	1442500	25.10

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		57.470	57.470	57.470
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1425.214	1230.129	729.045
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1482.684	1287.599	786.515
LOAN FUNDS
1] Secured Loans		52.643	88.517	0.000
2] Unsecured Loans		0.000	0.000	14.484
TOTAL BORROWING		52.643	88.517	14.484
DEFERRED TAX LIABILITIES		157.535	123.850	130.450
TOTAL		1692.862	1499.966	931.449
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1178.195	745.941	820.818
Capital work-in-progress		25.834	218.808	20.824
INVESTMENT		239.801	217.742	12.733
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	109.627	183.949	78.997
	Sundry Debtors	243.634	270.743	174.295
	Cash & Bank Balances	10.199	10.153	9.354
	Other Current Assets	1.597	0.962	0.000
	Loans & Advances	200.268	218.357	51.280
Total Current Assets		565.325	684.164	313.926
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	200.789	229.235	146.469
	Other Current Liabilities	20.347	47.899	15.893
	Provisions	95.157	89.555	75.407
Total Current Liabilities		316.293	366.689	237.769
Net Current Assets		249.032	317.475	76.157
MISCELLANEOUS EXPENSES		0.000	0.000	0.917
TOTAL		1692.862	1499.966	931.449

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1540.000	1819.154	1219.056
		Other Income	21.672	29.616	6.010
		TOTAL (A)	1561.672	1848.770	1225.066
Less	EXPENSES
		Cost of Raw Material Consumed	336.060	292.104	888.662
		Changes in inventories of finished goods	58.710	(84.903)
		Employee benefits expenses	106.864	112.640
		Other expenses	566.910	577.822
		TOTAL (B)	1068.544	897.663	888.662
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		493.128	951.107	336.404
Less	FINANCIAL EXPENSES (D)		4.075	7.584	12.740
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		489.053	943.523	323.664
Less/ Add	DEPRECIATION/ AMORTISATION (F)		100.219	84.096	83.083
	PROFIT BEFORE TAX (E-F) (G)		388.834	859.427	240.581
Less	TAX (H)		114.022	280.200	78.571
	PROFIT AFTER TAX (G-H) (I)		274.812	579.227	162.010
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1007.779	564.645	486.122
Less	APPROPRIATIONS
		Transfer to General Reserve	27.500	57.950	16.250
		Dividend	68.964	68.964	57.470
		Tax on Dividend	10.763	11.454	9.767
		Additional Tax on Dividend	0.000	(2.275)	0.000
	BALANCE CARRIED TO THE B/S		1175.364	1007.779	564.645
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.484	3.585	2.327
	TOTAL EARNINGS		0.484	3.585	2.327
	IMPORTS
		Raw Materials	70.859	58.854	82.483
		Stores & Spares	2.921	0.587	4.830
		Capital Goods	15.363	33.728	5.905
	TOTAL IMPORTS		89.143	93.169	93.218
	Earnings Per Share (Rs.)		47.82	100.79	28.19

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	493.900	569.300	537.600
Total Expenditure	313.800	379.500	362.600
PBIDT (Excl OI)	180.100	189.800	175.000
Other Income	11.200	13.600	11.400
Operating Profit	191.300	203.500	186.400
Interest	00.700	00.900	01.200
Exceptional Items	0.000	0.000	0.000
PBDT	190.600	202.600	185.200
Depreciation	27.400	27.500	27.600
Profit Before Tax	163.300	175.100	157.600
Tax	52.800	57.600	51.800
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	110.500	117.500	105.800
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	110.500	117.500	105.800

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	17.60	31.33	13.22
Net Profit Margin (PBT/Sales)	(%)	25.25	47.24	19.74
Return on Total Assets (PBT/Total Assets}	(%)	22.30	60.10	21.20
Return on Investment (ROI) (PBT/Networth)		0.26	0.67	0.31
Debt Equity Ratio (Total Debt/Networth)		0.04	0.07	0.02
Current Ratio (Current Asset/Current Liability)		1.79	1.87	1.32

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	Yes
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	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	Yes

FINANCIAL RESULTS

The gross sales and other income for the year were Rs.1561.700 Millions as against Rs.1848.800 Millions for the previous year registering a decrease of 16%. The profit before tax was Rs.388.800 Millions (after interest and depreciation charges of Rs.104.300 Millions) and the profit after tax was Rs.274.800 Millions for the year as against Rs.859.400 Millions and Rs.579.200 Millions respectively, for the previous year, both down by 55% and 53% respectively.

An inventory of 5,422 MT of Hydrogen Peroxide (H2O2) was available for the Plant shutdown taken from 11th April to 21st June, 2011 to implement the 84,000 MTPA Expansion Project. However, due to the extension of shutdown and the prevailing market conditions, there was a loss of 1,500 MT of H2O2 by way of sales. The plant started commercial production from 1st September, 2011.

The decline in the sales volume during the year was partially due to the shutdown and sluggish market conditions. The decline in profit was due to lower sales realization arising from higher imports at lower prices.

OPERATIONS

During the year, the Company successfully implemented the expansion project which has increased the capacity of the Hydrogen Peroxide (H2O2) Plant from 68,000 MTPA to 84,000 MTPA.

During the year, the Company produced 57,624 MT of H2O2, as compared to 71,826 MT during the previous year.

The Company sold 61,240 MT of H2O2 during the year, as against 66,806 MT during the previous year. The lower demand in the market led to a decrease in prices of H2O2, resulting in lower profit for the year. The Company, however, continues to maintain its prime position in the market and held 40% market share during the year.

3.29 Million Cubic Meters (MCM) of Hydrogen Gas (H2) were also sold during the year, as against 3.92 MCM during the previous year. Sales of H2 were lower as compared to the previous year, due to the shutdown for expansion.

The price of crude oil and consequently Natural Gas had risen significantly by the end of the year thereby impacting the cost of production.

During the year, the Company received Rs.2.550 Millions by way of dividend from its wholly owned subsidiary, Naperol Investments Ltd. Since the Company became debt free, the cash surplus was invested in financial instruments. The interest and dividend income on account of such investments amounts to Rs.10.900 Millions. As a result, the other income of the Company was Rs.28.600 Millions as against Rs.32.500 Millions in previous year.

The timing of the next stage of expansion to 95,000 MTPA.

INDUSTRY STRUCTURE AND DEVELOPMENTS

There are currently four companies which manufacture Hydrogen Peroxide in India. National Peroxide Limited continues to be the largest producer of Hydrogen Peroxide in the country with a market share of 40%. In addition to being well known in the industry as a pioneer, its product commands a strong brand image. It has been in the forefront in the development of technology for manufacture of Hydrogen Peroxide, as well as new applications development. Due to these efforts, the domestic market has significantly developed over the years.

The Company's project to expand its capacity to 84,000 MTPA was commissioned in September 2011. A competitor's additional capacity of 28,000 MTPA also came on stream in June 2011. The total production capacity in the Country, during 2011-12, is now at 2,02,000 MTPA on an annualized basis. The domestic demand is expected to grow by 5% p.a. during 2012-13. This will result in the domestic demand being fully met from local producers.

OUTLOOK

The outlook for the industry in the near term can only be viewed with cautious optimism due to the surplus capacity in Thailand, Pakistan and Bangladesh. A mega plant was commissioned in Thailand in 2011 by Solvay and is expected to increase the availability from Thailand which has a limited domestic demand. On the other hand, the domestic availability has improved as a result of increased capacity of the Company and the new Plant set up by a Competitor. This will put pressure on the Hydrogen Peroxide prices in the coming years.

Cotton prices have now come down and are expected to improve the fortunes of the domestic Textile industry. This will result in improved demand for Hydrogen Peroxide.

The subsidized supply of Natural Gas in the neighbouring countries has created distortions in the cost structure of the industry. This coupled with lower logistics costs, due to the proximity to the customers, makes imports feasible particularly in the North. This will result in impacting the demand for the domestic producers.

Implementation of Goods and Service Tax (GST) has been deferred and it is not certain when it will be implemented. The state of Maharashtra still continues to levy local taxes such as octroi, thereby increasing the cost of production. It is expected that in the near future, if GST is implemented and octroi consequently withdrawn, the Company's cost of production will reduce.

The Company views the outlook of the business with cautious optimism

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Estimated amount of Contracts remaining to be executed on Capital Account and not provided for	2.376	146.988
Excise Duties – ’Pending in appeal-matters decided against the Company (the Company is not estimating any cash outflow relating to this matter)	1.150	1.150

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

(Rs. In Millions)

	PARTICULARS	THREE MONTHS ENDED		NINE MONTHS ENDED
		31.12.2012	30.09.2012	31.12.2012
		(Reviewed)	(Reviewed)	(Reviewed)
1	Income from Operations
	a) Net Sales / Income from Operations	537.113	568.885	1598.911
	b) Other Operating Income	0.480	0.393	1.880
	Total Income from Operations (Net)	537.593	569.278	1600.791
2	Expenses
	a) Consumption of Raw Materials	140.581	129.744	379.573
	b) (Increase)/ Decrease in Stock in Trade	(25.313)	7.578	(17.379)
	c) Employees Benefit Expense	41.346	35.698	106.654
	d) Power	59.580	67.511	174.493
	e) Packing	54.376	49.493	150.367
	f) Consumption of Stores and Spares	8.578	7.382	20.968
	g) Freight Outward	27.170	32.334	90.855
	h) Depreciation	27.611	27.489	82.476
	i) Other Expenditure	56.237	49.709	150.251
	Total Expenses	390.166	406.938	1138.258
3	Profit from Operations before Other Income and Finance Costs (1- 2)	147.427	162.340	462.533
4	Other Income	11.353	13.615	36.178
5	Profit before Interest (3+4)	158.781	75.955	498.711
6	Finance Costs	1.153	0.881	2.729
7	Profit before Taxes (5- 6)	157.628	175.074	495.982
8	Tax Expense	51.810	57.580	162.190
9	Net Profit for the period after Taxes (7-8)	105.818	117.494	333.792
10	Paid-up Equity Share Capital (Face value per equity share of Rs.10 each)	57.470	57.470	57.470
11	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year	-	-	-
12	Basic and Diluted Earnings per Share (EPS)(Rs.) (Not Annualised)(For year end - Annualised)	18.41	20.44	58.08
A	Particulars of Shareholding
1	Public Shareholding:
	- Number of Shares	1,718,985	1,718,985	1,718,985
	- Percentage of Shareholding	29.91	29.91	29.91
2	Promoters and Promoter Group Shareholding:
	a) Pledged/Encumbered
	- Number of Shares	919,000	919,000	919,000
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	22.82	22.82	22.82
	- Percentage of Shares (as a % of the total share capital of the Company)	15.99	15.99	15.99
	b) Non-encumbered
	- Number of Shares	3,109,015	3,109,015	3,109,015
	- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	77.18	77.18	77.18
	- Percentage of Shares (as a % of the total share capital of the Company)	54.10	54.10	54.10
B	Investor Complaints	Three months ended 31st December, 2012
	Pending at the beginning of the quarter	Nil
	Received during the quarter	1
	Disposed of during the quarter	1
	Remaining unresolved at the end of the quarter	Nil

Notes:

1. The operating profit for the quarter and nine months is significantly higher than the corresponding quarter and nine months of the previous year as a result of an increase in the sales volumes of both Hydrogen Peroxide and Hydrogen Gas. Since there was a plant shutdown of 72 days from 11th April, 2011 till 21st June, 2011 for expansion of the plant during the previous year, the results of the current nine months are not comparable to those of the earlier corresponding period.

2. In the context of the Accounting Standard on Segment Reporting (AS-17), Peroxygen business is the only reportable business segment.

3. The above results were reviewed by the Audit Committee of the Board on 13th February, 2013 and were thereafter approved and taken on record by the Board of Directors at its meeting held on 14th February, 2013 and have been subjected to "Limited Review" by the Statutory Auditors.

4. The figures for the previous period/year have been regrouped, wherever necessary, to conform to the classifications of the current period.

FIXED ASSETS

• Land
• Buildings
• Plant and Machinery
• Furniture and Fixtures
• Office Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.27
UK Pound	1	Rs.82.49
Euro	1	Rs.69.88

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		54

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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