MIRA INFORM REPORT

Report Date :

24.05.2013

IDENTIFICATION DETAILS

Name :	PREMIUM TRANSMISSION LIMITED [w.e.f. 14.06.2010]
Formerly Known As :	PREMIUM ENERGY TRANSMISSION LIMITED [w.e.f. 22.04.2004] BILT INFRASTRUCTURE PRIVATE LIMITED [w.e.f. 31.07.2000] EVEREST FOOD (INDIA) PRIVATE LIMITED
Registered Office :	Premium House, Mumbai Pune Road, Chinchwad, Pune – 411019, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.04.1983
Com. Reg. No.:	11-133199
Capital Investment / Paid-up Capital :	Rs. 432.500 Millions
CIN No.: [Company Identification No.]	U01119PN1938PLC133199
TAN No.: [Tax Deduction & Collection Account No.]	NSKP02127G NSKP02126F PNEP08128B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Gearboxes.
No. of Employees :	900 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 6500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having good track record. Financially company seems to be strong. Performance capability is high. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual 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.

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH
Rating	Long term rating: A+
Rating Explanation	The default risk is low. The capacity for payment of financial commitments is considered strong.
Date	June, 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.

INFORMATION PARTED BY

Name :	Mr. R. S. Kulkarni
Designation :	Senior Manager in Account Finance
Contact No.:	91-20-66314100
Date :	23.05.2013

LOCATIONS

Registered Office / Factory :	Premium House, Mumbai Pune Road, Chinchwad, Pune – 411019, Maharashtra, India
Tel. No.:	91-20-66314100/ 27475141
Fax No.:	91-20-27450287
E-Mail :	svk@premiumtransmission.com rtg@premiumtransmission.com rsk@premiumtransmission.com
Website :	http://www.premiumtransmission.com
Location :	Owned
Branch Office:	P. B. No.5, Mumbai – Pune Road, Next to Greaves Cotton Limited, Chinchwad, Pune – 411019, Maharashtra, India
Corporate/ Head Office :	The Westin, 402, Business Plaza, 36/3-B, Koregaon Park Annex, Mundhwa Road, Pune – 411001, Maharashtra, India
Tel No.:	91-20-67269713
Fax No.:	91-20-67269728
Email :	snr@premiumtransmission.com
European Branch Office :	Stephan B. V. D-31789, Germany, Ohsener Strasse 79-83.
Tel No.:	+49 (0) 5151/780-0
Fax No.:	+49 (0) 5151/780-441
Email :	info@premium-stephan.com

DIRECTORS

As on 14.06.2012

Name :	Mr. Suresh Kumar Mamanchand Jain
Designation :	Director
Address :	India 159, Siddharth Enclave, Ashram Chowk, Ring Road, New Delhi - 110014, India
Date of Birth/Age :	12.03.1957
Date of Appointment :	09.11.2006
DIN :	00003500
Name :	Mr. Karan Thapar
Designation :	Director
Address :	8, Cedar Avenue, DLF, Chatarpur, New Delhi – 110030, India
Date of Birth/Age :	20.03.1957
Date of Appointment :	05.09.2008
DIN :	00004264
Name :	Mr. Sunil Nawal Phatarphekar
Designation :	Director
Address :	Satguru Simran, 5^th Floor, 3^rd Road, Almieda Park, Bandra, Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	02.10.1963
Date of Appointment :	08.06.2004
DIN :	00005164
Name :	Mr. Tapan Kumar Makhanlal Chattopadhyay
Designation :	Director
Address :	Flat No. 902, Building C1, Montvertapristine, Kirkee, Pune - 411020, Maharashtra, India
Date of Birth/Age :	09.12.1938
Date of Appointment :	03.05.2007
DIN :	00114708
Name :	Mr. Praveen Krishnachandra Sachdev
Designation :	Director
Address :	D- 846, 3^rd Floor, New Friends Colony, New Delhi – 110065, India
Date of Birth/Age :	04.04.1945
Date of Appointment :	04.05.2009
DIN :	00291546
Name :	Mr. Atulya Gupta
Designation :	Managing Director
Address :	C- 1 / 1594 Vasant Kunj, New Delhi – 110070, India
Date of Birth/Age :	17.12.1962
Date of Appointment :	11.07.2011
DIN :	01646139
PAN No.:	AAJPG4147M

KEY EXECUTIVES

Name :	Mr. Ratanlal Tikaram Goel
Designation :	Secretary
Address :	Flat No.201/202, Vedant Apartment, Sadashivpeth, Pune - 411030, Maharashtra, India
Date of Birth/Age :	09.02.1962
Date of Appointment :	08.06.2004
PAN :	ABJPG4245P
Name :	Mr. R. S. Kulkarni
Designation :	Senior Manager in Account Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.06.2012

Names of Shareholders	No. of Shares
DBH International Private Limited, India	12499980
Marble Arch Investments PCC Limited, Mauritius	10000000
Karan Thapar	5
Karam Thapar	5
Suresh Kumar Mamanchand Jain	2
P S Saini	2
Surinder Singh Chugh	2
Tikaram Ratanlal Goel	2
Praveen Sachdev	2
Total	22500000

Equity Share Break up (Percentage of Total Equity)

As on 14.06.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	44.44
Bodies corporate	55.56
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of Gearboxes.

Products :

Products Description	ITC Code No.
Industrial Gear Boxes	84839000
Fluid Couplings	84836020
Geared Motors	85013119

Exports :

Products :

Finished Goods

Countries :

• Australia
• South East Asia
• Gulf Country
• UK

Imports :

Products :

Raw Materials

Countries :

• China
• Taiwan
• South Korea
• Singapore

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity* and Installed Capacity**	Actual Production
Gear Boxes	Nos.	65000	37325
Fluid Couplings	Nos.	3500	2470
Geared Motors	Nos.	25000	15584
Auto Components	Nos.	1500000	1139626

(*) The company’s products are exempt from licensing requirements under the Industrial Policy by virtue of Notification No.477 (E) of 25.07.1991.

(**) As certified by the management on which the statutory auditors have placed reliance.

GENERAL INFORMATION

Customers :

• End Users
• OME’s

No. of Employees :

900 (Approximately)

Bankers :

§ Axis Bank Limited, JM Road Branch, 1262/B, Sterling Plaza, Jangali Maharaj Road, Deccan Gymkhana, Pune - 411004, Maharashtra, India

§ ICICI Bank Limited, Land Mark, Race Cource Circle, Alkapuri, Vadodara – 390015, Gujarat, India

§ State Bank of India, Tarachandra Branch, India

§ Yes Bank

§ HDFC Bank

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Rupee term loans from banks	93.750	30.000
Other loans and advances, others	174.236	273.921
Total	267.986	303.921

Banking Relations :
Auditors :
Name :	Walker, Chandiok and Company Chartered Accountants
Address :	401, Century Arcade, Narangi Baug Road, Off Boat Club Road, Pune - 411001, Maharashtra, India
PAN No.:	AAAFW4298E
Holding Company :	DBH International Private Limited, India CIN : U74899DL1950PTC057209
Entities in which KMP exercise significant influence:	APJ Financial Services Private Limited, India CIN: U74899DL1995PTC072523 Crompton Greaves Limited, India CIN: L99999MH1937PLC002641 English Indian Clays Limited, India CIN : L26939KL1963PLC002039 Greaves Cotton Limited CIN : L99999MH1922PLC000987 Greaves Leasing Finance Limited CIN : U29299MH1958PLC011250 Pembril Industrial and Engineering Company Private Limited CIN : U29291MH1973PTC016361 Ascot International FZC, United Arab Emirates Karun Carpets Private Limited Bharat Projects Private Limited Dee Greaves Limited Standard Refineries and Distillery Limited Bharat Starch Products Limited DBH Global Holdings Limited DBH Investments Private Limited Greaves Farymann Diesel GmbH DBH Consulting Limited Greaves Auto Limited Greaves Cotton Netherlands B.V.
Entities which exercise significant influence on the Company:	Marble Arch Investments PCC Limited, Mauritius
Subsidiary company:	Premium Transmission Cooperatie UA Premium Stephan BV, Netherlands

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
26000000	Equity Shares	Rs.10/- each	Rs.260.000 Millions
3450000	Preference Shares	Rs.100/- each	Rs.345.000 Millions
	Total		Rs.605.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22500000	Equity Shares	Rs.10/- each	Rs.225.000 Millions
2075000	Preference Shares	Rs.100/- each	Rs.207.500 Millions
	Total		Rs.432.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011 [9 months]	30.06.2010 [12 months]
SHAREHOLDERS FUNDS
1] Share Capital		432.500	598.567	598.566
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1184.198	971.806	772.195
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1616.698	1570.373	1370.761
LOAN FUNDS
1] Secured Loans		267.986	303.921	292.264
2] Unsecured Loans		58.851	30.428	38.419
TOTAL BORROWING		326.837	334.349	330.683
DEFERRED TAX LIABILITIES		64.376	61.164	61.947
TOTAL		2007.911	1965.886	1763.391
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		987.298	928.368	964.125
Capital work-in-progress		144.024	23.579	24.465
INVESTMENT		229.087	340.903	340.903
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	557.660	477.946	402.281
	Sundry Debtors	873.996	755.144	712.966
	Cash & Bank Balances	87.978	127.704	90.371
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	217.146	147.671	58.252
Total Current Assets		1736.780	1508.465	1263.870
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	622.172	601.367	419.517
	Other Current Liabilities	314.023	96.888	252.401
	Provisions	153.083	137.174	158.054
Total Current Liabilities		1089.278	835.429	829.972
Net Current Assets		647.502	673.036	433.898
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2007.911	1965.886	1763.391

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011 [9 months]	30.06.2010 [12 months]
	SALES
		Income	3877.970	2558.623	3157.351
		Other Income	48.566	20.640	29.286
		TOTAL (A)	3926.536	2579.263	3186.637
Less	EXPENSES
		Cost of materials consumed	2070.556	1317.964
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(67.129)	(27.505)
		Employee benefit expense	360.608	238.983
		Other expenses	791.280	496.795
		TOTAL (B)	3155.315	2026.237	2574.243
	PROFIT/[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		771.221	553.026	612.394
Less	FINANCIAL EXPENSES (D)		48.543	30.543	61.121
	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		722.678	522.483	551.273
Less/ Add	DEPRECIATION/ AMORTISATION (F)		125.027	90.648	120.057
	PROFIT / [LOSS] BEFORE TAX (E-F) (G)		597.651	431.835	431.216
Less	TAX (H)		120.418	128.896	153.273
	PROFIT / [LOSS] AFTER TAX (G-H) (I)		477.233	302.939	277.943
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		271.806	272.194	258.123
Less	APPROPRIATIONS
		Transfer to General Reserve	250.000	200.000	150.000
		Preference Dividend (including Corporate Dividend Tax)	16.114	13.155	17.539
		Proposed Final Dividend (including Corporate Dividend Tax)	65.201	45.086	51.098
		Interim Dividend (including Corporate Dividend Tax)	52.474	45.086	45.235
	BALANCE CARRIED TO THE B/S		365.250	271.806	272.194
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	NA	125.560	153.067
	TOTAL EARNINGS		NA	125.560	153.067
	IMPORTS
		Raw Materials	NA	66.019	71.084
		Components and Spare Parts	NA	2.360	1.634
		Capital Goods	NA	1.799	59.201
	TOTAL IMPORTS		NA	70.178	131.919
	Earnings/[Loss] Per Share (Rs.)		18.51	11.24	10.10

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011 [9 months]	30.06.2010 [12 months]
PAT / Total Income	(%)	12.15	11.75	8.72
Net Profit Margin (PBT/Sales)	(%)	15.41	16.88	13.66
Return on Total Assets (PBT/Total Assets}	(%)	34.41	28.63	34.12
Return on Investment (ROI) (PBT/Networth)		0.37	0.27	0.31
Debt Equity Ratio (Total Debt /Networth)		0.20	0.21	0.24
Current Ratio (Current Asset/Current Liability)		1.59	1.81	1.52

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors	622.172	601.367	419.517
Total	622.172	601.367	419.517

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	Yes
10]	Designation of contact person	Yes
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	Yes
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	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)
Other loans and advances, others	58.851	30.428
Total	58.851	30.428

OPERATIONS:

The Company has achieved net income of Rs. 3926.500 Millions during the year as against Rs. 2579.300 Millions in the previous period, in respect of continuing operations registering growth of 14% on annualized basis.

The Net income excludes the revenue of Rs. 94.000 Millions from erstwhile Auto Component business, which was divested during the year and the Company earned a profit of Rs. 72.500 Millions (net of tax) by divestment. The Net Profit after tax for the year has also increased by 18% on annualized basis to Rs. 477.200 Millions as against. 302.900 Millions in the previous period.

The exports during the year were Rs. 227.600 Millions against Rs. 125.600 Millions in the previous period, a growth of 36% on annualized basis. The Company has appointed new dealers in Middle East, Brazil and Central Europe. During the year the Company has enhanced its presence in these regions by deploying dedicated resources to explore the business opportunities.

The company has drawn up ambitious plan for growth in the international operations and some effective steps have already been initiated during the year. New products especially for the export markets are under development as also new geographies are being explored.

Business in all product groups has shown a reasonable growth. Considering sluggish economic scenario in the country, growth in the business over the previous period is considered satisfactory. New product lines developed by the Company are also receiving good response from the market. The management is optimistic that with the introduction of new products in the Helical and Planetary Gearbox family, growth trend will continue in the coming financial year also.

FUTURE OUTLOOK

The Indian economy is showing some slow down in the growth and as a fall out of the economic turmoil visible in the global economies like Europe and America, it is likely to have impact on the growth of their economy. As a consequence the manufacturing sector is curtailing growth estimates for the current year.

As the company is having diversified product line and customer base it is expected that the business is partially insulated from major impact due to global economical issues. Despite adversities, the Indian economy is growing at reasonable pace; GDP is expected to grow at about 7% in the new financial year. This augurs very well for future growth prospects of the Company inspite of challenges the manufacturing sector is going through.

The Company is continuously focusing on development of new products, greater penetration in existing markets and increasing the geographies to cater to the new markets.

The Directors are optimistic of improved performance for the current year, barring any unforeseen circumstances.

PROMOTER GROUP

The company is subsidiary of DBH International Private Limited which holds 124, 99,980 shares of Paid Up Equity Capital of the Company.

Consequent to buyback of 32, 76,314 Equity shares from DBH International Private Limited during the year, the holding percentage has come down from 61.20% to 55.55% of the paid up Equity Share Capital of the Company.

The Members may note that the promoter group companies are controlled by Mr. Karan Thapar, comprising of the following Companies 1) Greaves Cotton Limited (2) Pembril Industrial and Engineering Company Private Limited (3) DBH International Private Limited (4) Karun Carpets Private Limited (5) Greaves Leasing Finance Limited (6) Bharat Projects Private Limited (7) Dee Greaves Limited (8) Bharat Starch Products Limited (9) DBH Global Holdings Limited (10) DBH Investments Private Limited (11) Greaves Farymann Diesel GmbH (12) DBH Consulting Limited (13) Greaves Auto Limited (14) Greaves Cotton Netherlands B.V. (15) Ascot International FZC Sharjah, UAE, 16) DBH Stephan Limited (17) Premium Transmission Cooperatie UA and (18) Premium Stephan B.V.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U01119PN1983PLC133199
Name of the company	PREMIUM TRANSMISSION LIMITED
Address of the registered office or of the principal place of business in India of the company	Premium House, Mumbai Pune Road, Chinchwad, Pune – 411019, Maharashtra, India Email: rtg@premiumtransmission.com
This form is for	Creation of charge Deed of Hypothication
Type of charge	Movable property (not being pledge )
Particular of charge holder	(CIN: L65190GJ1994PLC021012) ICICI Bank Limited, Land Mark Race Cource Circle, Alkapuri, Vadodara – 390015, Gujarat, India Email: shanthi.venkatesan@icicibank.com
Nature of instrument creating charge	Deed of Hypothecation dated 15/03/2013
Date of instrument Creating the charge	15.03.2013
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Such Sum of "I-Base" and 'Spread' per annum, including other applicable levies as may be stipulated by the lender. Present 'I-Base' 9.75 % and 'spread' 1.95% Terms of Repayment Repayment of Principal in 8 equal quarterly installments payable on last day of each quarter , 1st installment being due on the end of the 48 months from the date of 1st disbursement. The repayment shall begin latest by March, 31 2017. Extent and Operation of the charge First and Exclusive charge by way of Hypothecation on the plant and machinery procured through this facility. Others Total Rupee Term loan facility of Rs.100.000 Millions is Interchangeable with buyers credit and/or CAPEX Letters of Credit, within sub Limit of Total Rupee term loan of Rs.100.000 Millions. Other terms and conditions as per deed of hypothecation Date 15.03.2013, and credit arrangement letter Date 16.01.2013 and amendatory credit arrangement letters Date 30.01.2013
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Exclusive charge on the plant and Machinery procured through this facility, as more particularly Described in the 'Schedule' of the Deed of Hypothecation Date 15.03.2013

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2012
Bills of exchange discounted with banks	31.528
Guarantee given on behalf of subsidiary	264.921
Central sales tax and VAT liability that may arise in respect of matters in appeal	36.194
Excise duty liability that may arise in respect of matters in appeal	8.283
Income tax liability that may arise in respect of matters in appeal	10.811
Estimated amount of contracts remaining to be executed on capital account and not provided for	209.599
Commitments relating to lease arrangements*	13.260
Total	574.595
*Disclosures in respect of non-cancellable operating leases
Payable not later than 1 year	4.680
Payable later than 1 year not later than five years	8.580
Payable later than five years	0.000
Total	13.260

FIXED ASSETS

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer 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.55.99
UK Pound	1	Rs.84.18
Euro	1	Rs.71.86

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.