MIRA INFORM REPORT

Report Date :

20.05.2013

IDENTIFICATION DETAILS

Name :	ACE DESIGNERS LIMITED (w.e.f 27.12.2001)
Formerly Known As :	ACE DESIGNERS PRIVATE LIMITED ANUPAM MACHINE TOOLS PRIVATE LIMITED
Registered Office :	Plot No. 7 and 8, II Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.09.1986
Com. Reg. No.:	08-007816
Capital Investment / Paid-up Capital :	Rs. 142.400 Millions
CIN No.: [Company Identification No.]	U29199KA1998PTC007816
TAN No.: [Tax Deduction & Collection Account No.]	BLRA00221E
PAN No.: [Permanent Account No.]	AABCA2364F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of CNC Turning Machine.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having a good track record. Financially company performance seems to be good. Liquidity position is strong. The promoters seems to be well experienced and reputed businessmen.. Trade relational are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for business dealings at usual trade terms and condition.

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term fund based: AA-
Rating Explanation	Having high degree of safety regarding timely servicing of financial obligation it carry very low credit risk.
Date	November 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 / Factory 1:	Plot No. 7 and 8, II Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-22186700 to 719 / 40370400 to 599 / 22186730
Fax No.:	91-80-22186723
E-Mail :	sampath@acedesigners.co.in gsk@acedesigners.co.in acedesigners@acemicromatic.com chandra@acedesigners.co.in
Website :	http://www.acemicromatic.net http://www.acedesigners.co.in
Corporate Office :	Plot No. 240/241, 11^th Main Road, 3^rd Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-40200555
Fax No.:	91-80-41136066
E-Mail :	mmtblr@acemicromatic.com
Factory 2 :	Plot No. 282, IV Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-28394119
Fax No.:	91-80-28361507
Factory 3 :	Plot No. 533, 10^th Main, IV Main, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-28361503-06
Fax No.:	91-80-28361507
E-Mail :	acetsg@blr.vsnl.net.in
Website :	http://www.acedesigners.com
Factory 4 :	Plot No. A-49, 2^nd Main Road, II Stage, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India
Tel. No.:	91-80-28361601
Factory 5 :	Plot GF-1, KSSIDC Flat, Peenya Industrial Estate, Bangalore – 560 058, Karnataka, India

DIRECTORS

As on 21.07.2012

Name :	Mr. Shrinivas Govindrao Shirgurkar
Designation :	Director
Address :	583, 1^st Main, 2^nd Stage, 3^rd Block, RMV Extension, Bangalore – 560094, Karnataka
Date of Birth/Age :	08.04.1948
Qualification:	B.E.Mech
Date of Appointment :	25.09.1986
DIN No.:	00173944
PAN No.:	AKMPS5682E
Name :	Mr. Benedict Machado
Designation :	Director
Address :	583, 1^st Main, 2^nd Stage, 3^rd Block, RMV Extension, Bangalore – 560094, Karnataka
Date of Birth/Age :	04.12.1948
Qualification:	B.E.Mech
Date of Appointment :	25.09.1986
DIN No.:	00174074
PAN No.:	AEJPM7124C
Name :	Mr. Ashok Vishwanath Sathe
Designation :	Director
Address :	252, 15^th “D” Cross, 2^nd Phase, 2^nd Stage, Mahalakshmipuram, Bangalore – 560086, Karnataka
Date of Birth/Age :	17.03.1940
Qualification:	M.Tech
Date of Appointment :	25.09.1986
DIN No.:	00174204
PAN No.:	ADOPS5056R
Name :	Mr. Shankar Arunachalam
Designation :	Director
Address :	A – 23, Fascinate Homes, 12^th Cross, 6^th Main, Malleswaram, Bangalore – 560003, Karnataka
Date of Birth/Age :	02.02.1959
Date of Appointment :	27.07.2002
DIN No.:	00203948
Name :	Mr. Srinivasan Rangarajan
Designation :	Director
Address :	126, Dhanya, Nandidurga Road, Bangalore – 560046, Karnataka
Date of Birth/Age :	10.09.1941
Date of Appointment :	27.07.2002
DIN No.:	00043658

KEY EXECUTIVES

Name :	Mr. Sekhar Chandra K
Designation :	Secretary
Address :	16 – A, G.B. Layout, 2^nd Stage, Mahalakshmipuram, Bangalore – 560086, Karnataka, India
Date of Birth/Age :	01.06.1974
Date of Appointment :	05.02.2010
PAN No.:	AIYPK1629D

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 21.07.2012

Names of Shareholders	No. of Shares
Shrinivas G Shirgurkar	432000
Bharati S Shirgurkar	108000
Madhavi Trust	13500
Manisha Trust	13500
G D Shirgurkar (HUF)	27000
Benedict Machado	432000
Philamena Machado	148500
Preethi Trust	13500
Ashok Vishnanath Sathe	77000
Padma A Sathe	159000
Total	1424000

Equity Share Break up (Percentage of Total Equity)

As on 21.07.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of CNC Turning Machine.

Products :

ITC Code No	Production Description
84589100	CNC Lathes

PRODUCTION STATUS (31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
CNC Lathe Machines	Nos.	2000	2000	1280

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Standard Chartered Bank, Raheja Towers, Sixth Floor, No. 26-27, M.G Road, Bangalore – 560001, Karnataka, India

· Syndicate Bank, 204/7, North Block, Manipal Centre, Dickenson Road, Bangalore – 560042, Karnataka, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Term loans from banks	99.333	0.000
Working capital loans from banks	0.000	6.325
Total	99.333	6.325

Banking Relations :
Auditors :
Name :	S.R. Batliboi and Associates Chartered Accountants
Address :	12 and 13^th floor, U.B. city, Canberra block - 24, Vittal malya Road, Bangaluru - 560001, Karnataka India
Pan No.:	AABFS3421N
Associates :	ACE Manufacturing Systems Limited, India (CIN: U85110KA1994PLC015321) ACE Multi Axes Systems Limited, India (CIN: U85110KA1995PLC018544) Micromatic Machine Tools Private Limited, India (CIN: U74899DL1987PTC029798)

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Share	Rs.100/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1424000	Equity Share	Rs.100/- each	Rs.142.400 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		142.400	155.200	178.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1223.894	1115.668	1172.144
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1366.294	1270.868	1350.344
LOAN FUNDS
1] Secured Loans		99.333	6.325	0.000
2] Unsecured Loans		43.026	34.555	48.535
TOTAL BORROWING		142.359	40.880	48.535
DEFERRED TAX LIABILITIES		13.290	6.944	19.316
TOTAL		1521.943	1318.692	1418.195
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		883.721	664.925	676.841
Capital work-in-progress		45.851	52.299	9.031
INVESTMENT		74.392	104.103	233.720
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	840.596	642.023	417.502
	Sundry Debtors	390.789	302.943	353.599
	Cash & Bank Balances	315.328	116.572	153.215
	Other Current Assets	33.124	129.387	0.000
	Loans & Advances	354.397	236.351	308.072
Total Current Assets		1934.234	1427.276	1232.388
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	868.506	505.535	556.600
	Other Current Liabilities	399.113	333.176	107.794
	Provisions	148.636	91.200	69.391
Total Current Liabilities		1416.255	929.911	733.785
Net Current Assets		517.979	497.365	498.603
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1521.943	1318.692	1418.195

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4905.509	3355.096	1927.025
		Other Income	68.721	43.638	35.116
		TOTAL (A)	4974.230	3398.734	1962.141
Less	EXPENSES
		Cost of materials consumed	3356.486	2321.759
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(66.118)	(91.463)
		Employee benefit expense	390.865	295.195
		Other expenses	365.541	272.344
		TOTAL (B)	4046.774	2797.835	1706.936
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		927.456	600.899	255.205
Less	FINANCIAL EXPENSES (D)		22.670	10.316	12.932
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		904.786	590.583	242.273
Less/ Add	DEPRECIATION/ AMORTISATION (F)		86.459	67.303	62.623
	PROFIT BEFORE TAX (E-F) (G)		818.327	523.280	179.650
Less	TAX (H)		248.280	167.628	72.556
	PROFIT AFTER TAX (G-H) (I)		570.047	355.652	107.094
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1054.738	1169.779	945.577
	APPROPRIATIONS
		Proposed Final Dividend	92.560	54.320
		Interim Dividend paid	49.840	31.040
		Corporate Tax on Dividend (Interim and final)	23.101	13.968	62.659
		Transferred to General Reserves	57.005	35.565
		Reserves utilised for buy back of shares	260.755	312.800
		Capital Redemption reserve created	12.800	23.000
	BALANCE CARRIED TO THE B/S		1128.724	1054.738	990.012
	Earnings Per Share (Rs.)		380.41	216.17	60.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	11.46	10.46	5.46
Net Profit Margin (PBT/Sales)	(%)	16.68	15.60	9.32
Return on Total Assets (PBT/Total Assets}	(%)	42.31	36.66	14.58
Return on Investment (ROI) (PBT/Networth)		0.60	0.41	0.13
Debt Equity Ratio (Total Debt /Networth)		0.10	0.03	0.04
Current Ratio (Current Asset/Current Liability)		1.37	1.53	1.68

LOCAL AGENCY FURTHER INFORMATION

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

UNSECURED LOAN

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Deposits	43.026	34.555
Total	43.026	34.555

OPERATIONS

The Company achieved all time high turnover of Rs. 4901.700 Millions during the financial year registering a growth of 46.13% over the previous year. This is highest turnover since its inception. The other income is Rs.72.400 Millions. Depreciation for the year was Rs. 86.400 Millions as compared to Rs. 67.300 Millions during the corresponding year. The additional depreciation is on account of procurement of certain high end machines during the year; The Company achieved Earnings before Interest Tax and Depreciation (EBITDA) of Rs. 927.400 Millions as compared to 600.800 Millions during the corresponding year by registering a growth of 54.36. The year was challenging from many fronts Inflation pressure unabated during the year coupled with steep depreciation of Indian Rupee and increase in manpower cost impacted company’s profitability. Inpsite of this, the Company registered highest Profit before tax of Rs. 818.300 Millions during the year.

The Company performed exceedingly well as markets around the world continued to grapple with economy recovery. Company prudent business models, tight fiscal policies and a high brand image of the Company has allowed the Company to register a growth of 46.13% over the previous year. As usual, Jobber series of machines like Jobber XL, Jobber LM and Super Jobber contributed almost 67% of the total revenue and other models contributed rest of the revenue. The automotive segment which was upbeat in the first half of the year tapered down in the second half of the year due to poor market sentiments, increased food and fuel prices and increase in interest rates. Orders were received for all the products in proportion to manufacturing capacity throughout the year. However, average order backlog which was around 6 to 7 months of production capacity at the beginning of the year has come down to 3 to 4 month’s capacity at the end of financial year.

During the year the Company has invested in high-technology machines, which enhances both production capacity and quality of products. FMS from Sterrag Heckart with Fastem- AGV and Cylindrical Grinders (vertical and horizontal) from Studer and Nissin and ROBO Weld from Fanuc were added. With addition of these mother machines, capability to build on-time high accuracy custom made parts has improved and become internationally competitive. Going forward, IT investments are planned in disaster recovery site, which insulate the company from loss of critical data.

BUSINESS PROSPECTS

Global growth prospects dimmed and risks sharply escalated during the last quarter. India, China, Brazil and Russia (BRIC Countries), which was providing an impetus to the ongoing recovery of the world economy, also started slowing down. While the growth outlook remains sluggish, but there are other challenges which are facing their economy like high inflation particularly fuel, food prices and forex rates. Both Indian Machine Tool Manufacturers Association (IMTMA) and Automotive Component Manufacturers Association of India (ACMA) ) have predicted a robust growth for the upcoming year. Depreciation of Indian Rupee upto 22% in the last 2 quarters has made imported material further costlier, which will have impact on company’s profitability. Strong demand from the rural sector for automobiles due to burgeoning middle class with higher disposable incomes and Government stimulus for enhanced rural sector is likely to taper off these concerns.

With the enhancement of in-house production capacities, it is planned to achieve a revised production cum sales target of 3,400 machines from the planned 3,750 machines. To reduce the lead time in delivery of fast moving machines, a ware house is taken on rent to stock standard finished goods, which helps in committing delivery with ex-stock. In order to achieve targeted sales, the Company has planned for increase in manpower in key areas. Past vendor development initiatives taken have helped the Company in stabilizing casting requirements and are expected to remain so for the current year as well. Planned investments in Foundry Division are going on as per schedule and investments in CNC Machines division will be deferred by one or two quarters.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29199KA1986PLC007816
Name of the company	ACE DESIGNERS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 7 and 8, II Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India Email: chandra@acedesigners.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10330850
Type of charge	Immovable Property Book debt Movable property (not being pledge)
CIN:	U29199KA1986PLC007816
Particular of charge holder	Syndicate Bank, 204/7, North Block, Manipal Centre, Dickenson Road, Bangalore – 560042, Karnataka, India Email: ka.0461blrifbsyndicatebank@yahoo.com
Nature of instrument creating charge	Composite Hypothecation Agreement Dated 16-11-2012
Date of instrument Creating the charge	16.11.2012
Amount secured by the charge	RS.550.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base rate +1% applicable from time to time Terms of Repayment Loan is repayable in 17 quarterly equal installments of Rs. 30.300 Millions each and last bullet repayment of Rs. 31.300 Millions. Margin Margin Amount including promoter contribution is @42% Extent and Operation of the charge Exclusive charge on movable Plant & machinery and other assets acquired by the Company out of term loan funding and Eqitable Mortgage on company's Land and Building situated at Thyamagondlu Hobli. The original charge was created on 19.01.2012 by executing hypothecation deed. The same was modified on 25th January, 2012 ceeding over pari-passu charge with M/s. Standard Chartered Bank and M/s. EXIM Bank and further modified on 22.05.2012. There are no change in other terms and conditions Others 2ONE
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable Mortgage on Land situated at Govenahalli Village and Minnapura Village, Thyamagondlu Hobli, Nelamangala Taluk, Bangalore together with the Building constructed thereon.
Date of instrument modifying the charge	22.05.2012
Particulars of the present modification	The bank has revalidated the original sanction letter dt 04.06.11 for which the charge had been created on 19.01.2012 vide charge ID 10330850. The revised sanction has extended draw down schedule. Accordingly there is a change in repayment schedule. There are no change in other terms and conditions including operation of charge and rights and obligations of other bankers to whom the bank shared pari-passu charge.

FIXED ASSETS

· Land

· Buildings

· Factory building

· Plant and equipment

· Furniture and fixtures

· Vehicles

PRESS RELEASES

Ace Designers embarks on Rs 2500.000 Millions expansion

February 13, 2013

Bangalore-based machine tools major Ace Designers Limited has embarked on a major expansion drive involving an investment of over Rs 2500.000 Millions. The company, which manufactures CNC machines, is planning to expand capacity at its plant and is also setting up a foundry for captive consumption.

“We had planned this expansion about six years ago and acquired 82 acres in Nelamangala taluk from the Karnataka Industrial Area Development Board (KIADB) for Rs 280.000 Millions. We are now building a modern foundry with Italian technology which will be commissioned by the end of March or early April this year,” Shrinivas G Shirgurkar, managing director, Ace Designers, said.

He said, the foundry will produce 12,000 tonnes of castings per annum. Of this, about 60 per cent of the capacity would be used for captive requirements and the balance would be for outside orders.

Shirgurkar said, the company’s proposed plan to expand capacity of CNC machines’ plant in Bangalore will be executed from June onwards. The company planned to expand capacity nearly three times to 10,000 machines per annum. The company’s products include 2-axis, 3-axis and 5-axis CNC (computer numerically controlled) machines used in automobile, general engineering and electrical among other sectors.

“We have already secured all approvals from the state government for the proposed expansion. However, we delayed the expansion due to economic slowdown last year. As the market has shown signs of improvement this year, we are going ahead with the expansion during the next fiscal,” Shirgurkar told Business Standard.

The State High Level Clearance Committee (SHLCC) headed by chief minister has approved the company’s proposal to set up a foundry and expand its plant capacity at a meeting held in September last year. SHLCC also approved the company’s request for a two-year extension to execute the expansion programme.

He said, the company has also tied up finances for the project. Of a planned investment of Rs 2500.000 Millions, the foundry has seen an investment of Rs 1100.000 Millions, he said. Shirgurkar said, the company had witnessed slowdown in order booking during the second half of the present fiscal and as a result its turnover would decline 20 per cent for year-ending March 2013. It reported a turnover of Rs 4900.000 Millions in 2011-12.

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.54.88
UK Pound	1	Rs.83.65
Euro	1	Rs.70.57

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.