MIRA INFORM REPORT

Report Date :

20.11.2013

IDENTIFICATION DETAILS

Name :	ARCVAC FORGE CAST LIMITED (w.e.f. 27.02.2007)
Formerly Known As :	ARCVAC FORGE CAST PRIVATE LIMITED
Registered Office :	N.H.-2, Panchghara, Hooghly – 712306, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	11.07.2003
Com. Reg. No.:	21-096561
Capital Investment / Paid-up Capital :	Rs. 47.052 Millions
CIN No.: [Company Identification No.]	U27109WB2003PLC096561
TAN No.: [Tax Deduction & Collection Account No.]	CALA06690F
PAN No.: [Permanent Account No.]	AAEC8396E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Iron and Steel.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 3680000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears losses recorded by the company during the financial year 2013. However, trade relations are fair. Business is active. Payment terms are slow but correct. 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BB-
Rating Explanation	Moderate risk of default and high credit risk
Date	21.03.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A4+
Rating Explanation	Minimal degree of safety and very high credit risk
Date	21.03.2013

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 DENIED

Management Non Co-operative (Tel No.: 91-33-22827381)

LOCATIONS

Registered Office/ Factory :	N.H.-2, Panchghara, Hooghly – 712306, West Bengal, India
Tel. No.:	91-33-26598000
Fax No.:	91-33-26598002
E-Mail :	arcvac.sales@smithy.in arcvac@smithy.in akash@smity.in arcvac@smity.in
Website :	www.arcvacsteel.com

DIRECTORS

As on 27.09.2012

Name :

Binod Chhajer

Designation :

Director

Address :

13 Chapel Road, Hastings, Kolkata – 700022, West Bengal, India

Date of Birth/Age :

23.01.1961

Date of Appointment :

01.04.2010

PAN No.:

ACKPC0494J

DIN No.:

00028959

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27106WB1985PLC039776	VIKRANT FORGE LIMITED	Director	25/11/1985	25/11/1985	-	Active	NO
2	U51909WB1994PTC066756	MARK INTERTRADES PRIVATE LIMITED	Director	22/05/1996	22/05/1996	-	Active	NO
3	U27109WB2003PLC096561	ARCVAC FORGE CAST LIMITED	Whole-time director	01/04/2010	11/07/2003	-	Active	NO
4	U67120WB1995PTC070093	KSK SHARE AND STOCK BROKERS PRIVATE LIMITED	Director	09/10/2004	09/10/2004	-	Active	NO
5	U65999WB1997PTC083052	VITAL FINCON PRIVATE LIMITED	Director	02/11/2004	02/11/2004	-	Amalgamated	NO
6	U51109WB1996PTC078693	ALLIED MERCHANTS PRIVATE LIMITED	Director	30/06/2005	30/06/2005	-	Active	NO
7	U27109WB2002PLC094287	EASTERN SMITHY LIMITED	Director	22/11/2005	22/11/2005	-	Amalgamated	NO
8	U70101WB2006PLC110739	SMITHY PROJECTS LIMITED	Director	24/07/2006	24/07/2006	-	Active	NO
9	U51909WB1994PTC065066	KEMINT TRADING PRIVATE LIMITED	Director	21/03/2007	21/03/2007	-	Amalgamated	NO
10	U51909WB1994PTC065658	KOLBER COMMERCIAL PRIVATE LIMITED	Director	03/04/2007	03/04/2007	-	Active	NO
11	U27100WB2008PLC131551	INTEGRATED FORGE LIMITED	Director	29/12/2008	29/12/2008	02/01/2009	Active	NO
12	U51109WB2007PTC117178	VIKASH VINIMAY PRIVATE LIMITED	Director	03/11/2009	03/11/2009	-	Active	NO
13	U51109WB2008PTC125928	KINGFISHER VINIMAY PRIVATE LIMITED	Director	03/11/2009	03/11/2009	-	Active	NO
14	U51109WB2007PTC116044	CIDER TRACOM PRIVATE LIMITED	Director	03/11/2009	03/11/2009	-	Active	NO
15	U51109WB2007PTC114617	TELESCOPE VINIMAY PRIVATE LIMITED	Director	03/11/2009	03/11/2009	-	Active	NO
16	U93090WB2009PTC139586	SMITHY RESOURCES PRIVATE LIMITED	Director	19/11/2009	19/11/2009	-	Active	NO

Name :

Mr. Raj Kumar Chhajer

Designation :

Director

Address :

6, Burwan Road, Konark Garden, Block No A, Kolkata – 700027, West Bengal, India

Date of Birth/Age :

30.06.1955

Date of Appointment :

11.07.2003

DIN No.:

00028972

PAN No.:

ACIPC6387J

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U27106WB1985PLC039776	VIKRANT FORGE LIMITED	Whole-time director	01/04/2007	25/11/1985	-	Active	NO
2	U51909WB1994PTC066756	MARK INTERTRADES PRIVATE LIMITED	Director	22/05/1996	22/05/1996	-	Active	NO
3	U51109WB1991PTC052422	EXCLUSIVE TRADE AND PRINT PRIVATE LIMITED	Director	07/06/1999	07/06/1999	10/10/2011	Active	NO
4	U27109WB2002PLC094287	EASTERN SMITHY LIMITED	Director	26/02/2002	26/02/2002	-	Amalgamated	NO
5	U27109WB2003PLC096561	ARCVAC FORGE CAST LIMITED	Director	11/07/2003	11/07/2003	-	Active	NO
6	U67120WB1995PTC070093	KSK SHARE AND STOCK BROKERS PRIVATE LIMITED	Director	09/10/2004	09/10/2004	-	Active	NO
7	U65999WB1997PTC083052	VITAL FINCON PRIVATE LIMITED	Director	09/10/2004	09/10/2004	-	Amalgamated	NO
8	U51109WB1996PTC078693	ALLIED MERCHANTS PRIVATE LIMITED	Director	30/06/2005	30/06/2005	-	Active	NO
9	U51909WB1994PTC065066	KEMINT TRADING PRIVATE LIMITED	Director	21/03/2007	21/03/2007	-	Amalgamated	NO
10	U51909WB1994PTC065658	KOLBER COMMERCIAL PRIVATE LIMITED	Director	03/04/2007	03/04/2007	-	Active	NO
11	U51109WB1883GAP000462	CALCUTTA CHAMBER OF COMMERCE	Director	17/03/2009	17/03/2009	-	Active	NO
12	U51109WB2007PTC117178	VIKASH VINIMAY PRIVATE LIMITED	Director	03/11/2009	03/11/2009	-	Active	NO
13	U51109WB2008PTC125928	KINGFISHER VINIMAY PRIVATE LIMITED	Director	03/11/2009	03/11/2009	-	Active	NO
14	U51109WB2007PTC116044	CIDER TRACOM PRIVATE LIMITED	Director	03/11/2009	03/11/2009	-	Active	NO
15	U51109WB2007PTC114617	TELESCOPE VINIMAY PRIVATE LIMITED	Director	03/11/2009	03/11/2009	-	Active	NO
16	U93090WB2009PTC139586	SMITHY RESOURCES PRIVATE LIMITED	Director	19/11/2009	19/11/2009	-	Active	NO

Name :

Mr. Manik Chand Nahata

Designation :

Director

Address :

59 Kalicharan Ghose Road, Flat No. 402, Kolkata – 700050, West Bengal, India

Date of Birth/Age :

21.07.1954

Date of Appointment :

23.09.20098

PAN No.:

ABJPN9043Q

DIN No.:

02647911

MAJOR SHAREHOLDERS

As on 27.09.2012

Names of Shareholders	No. of Shares
Raj Kumar Chhajer	8750
Bindo Chhajer	5250
Manoj Chhajer	3250
Kiran Devi Chhajer	1000
Bindo Chhajer HUF	75000
Allied Merchants Private Limited, India	1993700
Telescope Vinimay Private Limited, India	941500
Kingfisher Vinimay Private Limited, India	860000
Cider Tracom Private Limited, India	8150
Vikash Vinimay Private Limited, India	347500
Total	4244100

As on 05.06.2013

Names of Allottee	No. of Shares
Cider Tracom Private Limited, India	2000
Kingfisher Vinimay Private Limited, India	65500
Total	67500

As on 30.03.2013

Names of Allottee	No. of Shares
Vikarnt Forge Limited, India	102717
Total	102717

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2012

Category	Percentage
Bodies corporate	98.00
Directors or relatives of Directors	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron and Steel.

Products :

Product Description	ITC Code
Iron and Steel	72069019

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· State Bank of Bikaner and Jaipur, 20-B, Park Street, Kolkata - 700016, West Bengal, India

· State Bank of Hyderabad

· State Bank of India

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Rupee term loans from banks	765.367	474.462
Short Term Borrowings
Loans repayable on demand from banks	293.712	298.106
Total	1059.079	772.568

Banking Relations :	--
Auditors :
Name :	R L Mundhra and Company Chartered Accountants
Address :	745/859, Marshal House, 33/1 Netaji Subhas Road, Kolkata- 700001, West Bengal, India
PAN No.:	AAEFR0104N
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Vikrant Forge Limited CIN No : U27106WB1985PLC039776 · Allied Merchants Private Limited CIN No : U51109WB1996PTC078693 · V V C Properties Private Limited CIN No : U70109WB2009PTC139119 · Kingfisher Vinimay Private Limited CIN No : U51109WB2008PTC125928 · Telescope Vinimay Private Limited CIN No : U51109WB2007PTC114617 · Smithy Resources Private Limited CIN No : U93090WB2009PTC139586 · Integrated Forge Limited CIN No : U27100WB2008PLC131551 · Aster Vincom Private Limited CIN No : U51109WB2007PTC114221 · Cider Tracom Private Limited CIN No : U51109WB2007PTC116044 · Easy Tradecom Private Limited CIN No : U51109WB2007PTC114219

CAPITAL STRUCTURE

After 31.03.2013

Authorised Capital : Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.47.727 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4705167	Equity Shares	Rs. 10/- each	Rs.47.052 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	47.052	42.441	38.660
(b) Reserves & Surplus	873.773	876.666	798.754
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	920.825	919.107	837.414
(3) Non-Current Liabilities
(a) long-term borrowings	899.868	653.162	762.609
(b) Deferred tax liabilities (Net)	135.729	50.850	35.582
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.272	0.146	50.793
Total Non-current Liabilities (3)	1035.869	704.158	848.984
(4) Current Liabilities
(a) Short term borrowings	293.712	298.106	297.748
(b) Trade payables	342.159	402.179	161.955
(c) Other current liabilities	97.132	272.611	277.669
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	733.003	972.896	737.372
TOTAL	2689.697	2596.161	2423.770
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1293.927	1367.308	1436.576
(ii) Intangible Assets	0.027	0.199	0.372
(iii) Capital work-in-progress	340.018	18.397	7.257
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	6.366	(37.754)	0.000
(d) Long-term Loan and Advances	38.445	145.146	14.340
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1678.783	1493.296	1458.545
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	437.679	483.216	498.007
(c) Trade receivables	358.206	461.026	382.183
(d) Cash and cash equivalents	54.807	59.435	37.505
(e) Short-term loans and advances	160.222	99.188	47.530
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1010.914	1102.865	965.225
TOTAL	2689.697	2596.161	2423.770

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		1130.519	1689.547	1502.248
		Other Income		26.974	25.208	15.152
		TOTAL (A)		1157.493	1714.755	1517.400
Less	EXPENSES
		Cost of Materials Consumed		612.706	968.530	1064.381
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		76.485	61.123	(159.908)
		Employee Benefits Expenses		50.318	59.726	49.204
		Expenditure on production, transportation and other expenditure pertaining to E&P activities		0.000	0.000	29.590
		Other Expenses		331.826	367.883	291.457
		TOTAL (B)		1071.335	1457.262	1274.724
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			86.158	257.493	242.676
Less	FINANCIAL EXPENSES (D)			146.292	175.541	133.040
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			(60.134)	81.952	109.636
Less	DEPRECIATION/ AMORTISATION (F)			74.082	73.717	59.845
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			(134.216)	8.235	49.791
Less	TAX (H)			(43.720)	2.172	15.229
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			(90.496)	6.063	34.562
	IMPORTS
			Raw Materials	200.896	264.453	226.227
			Stores & Spares	0.049	0.406	0.521
	TOTAL IMPORTS			200.945	264.859	226.748
	Earnings Per Share (Rs.)			(20.89)	1.53	9.07

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(7.82)	0.35	2.28
Net Profit Margin (PBT/Sales)	(%)	(11.87)	0.49	3.31
Return on Total Assets (PBT/Total Assets}	(%)	(5.82)	0.33	2.07
Return on Investment (ROI) (PBT/Networth)		(0.15)	0.01	0.06
Debt Equity Ratio (Total Debt /Networth)		1.30	1.03	1.27
Current Ratio (Current Asset/Current Liability)		1.38	1.13	1.30

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

Note: the registered office of the company has been shifted form 12 C, Lord, Sinha Road, 2^nd Floor, Flat No. 2B, Shakespeare Sarani, Kolkata – 700071, West Bengal, India to the present address w.e.f. 27.09.2013

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Other loans and advances	134.501	178.700
Total	134.501	178.700

PERFORMANCE

During the year the gross sales came down by Rs.598.600 Millions (32.12%) barely able to achieve a gross turnover of Rs.1265.700 Millions as against Rs.1864.400 Millions during the previous year. The under utilization of all the plant facilities due to lack of sufficient orders resulted in the company incurring a net loss of Rs.90.400 Millions compared to net profit of Rs.6.000 Millions in the previous year. The year 2012-13 witnessed the slowest growth in the last decade resulting in slowdown in the domestic market. This resulted in lot of new industrial units being put on hold or being scrapped altogether. With no new projects coming and the ongoing projects put on hold, had a direct bearing on the performance of the company The cost of inputs and raw material continued to rise and because of sluggish market the said increase could not be passed on to the customer which affected the Company in terms of volumes and the margins which lead to the present difficult financial position.

REVIEW OF OPERATIONS:

The business environment which started deteriorating rapidly from second half of FY 2011-12 onwards due to worsening macro-economic scenario continued creating immense pressure on margins. Fierce competition from domestic as well as foreign companies further weakened the companys performance resulting in pressure on the margins as well as order booking. The companys business is directly related to the capital goods industry, which is undergoing a negative growth since the current slowdown started. Many large projects have been put on hold, which has increased the companys inventories coupled with pressure on payment realization as well as new order bookings.

BUSINESS OUTLOOK:

Due to worsening global and domestic macro-economic scenario the future seems to be uncertain and unless the Indian economy revives and starts growing-up again, the performance of the company will continue to remain under pressure. During the slowdown period of 2008 we could maintain our performance level because the power and mining sectors continued to be robust, but since middle of last financial year, even power and mining sectors have been badly affected.

On the positive side, the company has been able to position itself as the most preferred vendor for forging quality ingots and forgings for the leading consumers in India, but at the moment, even they are also not having orders, hence, the performance of the company gets tied up with their performance.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10425759	30/03/2013	117,000,000.00	STATE BANK OF BIKANER AND JAIPUR	20-B, Park Street, Kolkata, West Bengal - 700016, India	B75146092
2	10422528	23/03/2013	115,800,000.00	STATE BANK OF HYDERABAD	Park Street Branch, Poddar Point (1st Floor), 113, Park Street, Kolkata, West Bengal - 700016, India	B73971095
3	10349436	30/03/2012	320,000,000.00	STATE BANK OF INDIA (LEAD BANK)	Commercial Branch, N. S. Road, 8, N. S. Road, Kolkata, West Bengal - 700001, India	B37501772
4	10089228	07/02/2008	1,140,000,000.00	STATE BANK OF INDIA (LEAD BANK)	Mid Corporate Loan Administration, 7th Floor, "Samriddhi Bhawan", E Block,1, Strand Road, Kolkata, West Bengal - 700001, India	A32865123
5	80022097	21/03/2013 *	1,019,400,000.00	STATE BANK OF INDIA	Commercial Branch, N. S. Road, 8, N. S. Road, Kolkata, West Bengal - 700001, INDIA	B73226128
6	80022098	04/02/2010 *	1,531,000,000.00	STATE BANK OF INDIA (LEAD BANK)	Mid Corporate Loan Administration Unit, 7th Floor, "Samriddhi Bhawan", Block- E, 1, Strand Road, Kolkata, West Bengal - 700001, India	A80256050

*Date of modification charges

FIXED ASSETS:

· Land

· Plant and Machinery

· Office Equipment

· Building

· Vehicle

· Computer

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.62.23
UK Pound	1	Rs.100.18
Euro	1	Rs.84.06

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		29

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.