MIRA INFORM REPORT

Report Date :

19.11.2013

IDENTIFICATION DETAILS

Name :	MODERN DENIM LIMITED
Formerly Known As :	MODERN SUITING PRIVATE LIMITED
Registered Office :	A-4, Vijay Path, Tilak Nagar, Jaipur – 302004, Rajasthan
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.11.1977
Com. Reg. No.:	17-001758
Capital Investment / Paid-up Capital :	Rs.440.020 Millions
CIN No.: [Company Identification No.]	L17124RJ1977PLC001758
PAN No.: [Permanent Account No.]	AABCM0861H
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Denim Fabrics.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Maximum Credit Limit :	Since the status of the company is Sick, we cannot recommend credit limit.
Status :	Sick Company
Payment Behaviour :	Slow and delayed
Litigation :	Exist
Comments :	Subject is declared as a sick company by the Board of Industrial and Financial Reconstruction. Management has registered the case vide Case No 325/2000 with BIFR under section 3 (1) (O) of The Sick Industrial Companies Act 1985, the order on which for approval of rehabilitation proposal is pending. However, business is active. Payment terms are slow and delayed. The company can be considered for business dealing on a fully secured trade terms and condition. Note: The shares of the subject company are not traded from last 30 days.

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.

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 BY

Name :	Mr. J.C. Trivedi
Designation :	Finance Department
Contact No.:	91-2717-251361
Date :	15.11.2013

LOCATIONS

Registered Office :	A-4, Vijay Path, Tilak Nagar, Jaipur – 302004, Rajasthan, India
Tel. No.:	91-414-2623431
Fax No.:	91-414-2621382
E-Mail :	modernjaipur@sify.com
Factory :	10km, Mile Stone, NH No. 8, Sarkhej Bavla Road, Moraiya, Ahmedabad – 380021, Gujarat, India
Tel. No.:	91-2717-251351/2/3/4/5/251361
Fax No.:	91-2717/250367/251368
E-Mail :	sales@moderndenim.com

DIRECTORS

As on 21.09.2012

Name :

Mr. Sachin Ranka

Designation :

Director

Address :

Siddharth, 9^th Floor, R.G. Thadani Marg, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

28.01.1963

Date of Appointment :

01.09.2010

PAN No.:

AADPR9516Q

DIN No.:

00335534

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	L17124RJ1977PLC001758	MODERN DENIM LIMITED	Managing director	01/09/2010	29/03/1991	-	Active	NO
2	L17124RJ1976PLC001869	MODERN TERRY TOWELS LIMITED	Managing director	01/10/2009	25/09/1992	-	Active	NO
3	L31300RJ1982PLC002460	MODERN INSULATORS LIMITED	Director	30/11/1992	30/11/1992	-	Active	NO
4	L17115RJ1980PLC002075	MODERN THREADS (INDIA) LIMITED	Director	30/06/1998	30/06/1998	31/01/2011	Active	NO
5	U51109MH2009PTC191078	MOTILE POWER TRADE PRIVATE LIMITED	Additional director	20/03/2009	20/03/2009	-	Active	NO
6	U91110MH1954NPL009385	THE COTTON TEXTILES EXPORT PROMOTION COUNCIL	Director	29/09/2010	29/09/2010	18/10/2012	Active	NO

Name :

Mr. Bhawar Lal Verma

Designation :

Director

Address :

B-12, Bhagrathi Colony, Chomu House, Jaipur – 302001, Rajasthan , India

Date of Birth/Age :

15.06.1944

Date of Appointment :

03.09.1983

DIN No.:

00411628

Name :

Mr. Hiralal Sharma

Designation :

Director

Address :

605-A, Mansarowar Building, Near Chincholi Cross Ing., Malad (West), Mumbai – 400064, Maharashtra, India

Date of Birth/Age :

03.01.1951

Date of Appointment :

29.06.2000

DIN No.:

00352410

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	L31300RJ1982PLC002460	MODERN INSULATORS LIMITED	Whole-time director	01/07/2012	23/06/1994	-	Active	NO
2	L24302RJ1976PLC001780	MODERN SYNTEX (INDIA) LIMITED	Director	30/03/2000	30/03/2000	-	Active	NO
3	L17124RJ1977PLC001758	MODERN DENIM LIMITED	Director	29/06/2000	29/06/2000	-	Active	NO
4	L17115RJ1980PLC002075	MODERN THREADS (INDIA) LIMITED	Director	24/03/2001	24/03/2001	-	Active	NO
5	L17124RJ1976PLC001869	MODERN TERRY TOWELS LIMITED	Director	24/03/2001	24/03/2001	-	Active	NO
6	U51109MH2009PTC191078	MOTILE POWER TRADE PRIVATE LIMITED	Additional director	20/03/2009	20/03/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mrs. Kirti R. Shah
Designation :	Secretary
Address :	B-4, Vardman Krupa Row House, Opposite Satadhar Society, Sola Road, Ahmedabad – 380061, Gujarat, India
Date of Birth/Age :	23.06.1951
Date of Appointment :	24.03.2001
PAN No.:	ACAPS7068Q

MAJOR SHAREHOLDERS

As on 21.09.2012

Equity shareholders details not available.

Names of Preference Shareholders	No. of Shares
15% Cumulative Redeemable Preference Shares (Series – I)
Chand Merchant Private Limited, India	4920
The Oriental Insurance Co. Limited, India	5000
Unit Trust of India, India	9841
National Insurance Corporation Limited, India	5000
Public	239
Total	25000

Names of Preference Shareholders	No. of Shares
14% Cumulative Redeemable Preference Shares (Series – II)
Chand Merchant Private Limited, India	5000
Canbank Financial Service Limited, India	5000
The Oriental Insurance Co. Limited, India	5000
National Insurance Corporation Limited, India	5000
United India Insurance Co. Limited, India	5000
Total	25000

Names of Preference Shareholders	No. of Shares
17.5% Cumulative Redeemable Preference Shares (Series – III)
The New India Assurance Company Limited, India	50000
The Oriental Insurance Co. Limited, India	30000
United India Insurance Co. Limited, India	40000
National Insurance Corporation Limited, India	30000
General Insurance Corporation of India, India	50000
Total	200000

Names of Preference Shareholders	No. of Shares
17.5% Cumulative Redeemable Preference Shares (Series – IV)
Vulvan Traders Private Limited, India	200000
United India Insurance Co. Limited, India	60000
General Insurance Corporation of India, India	40000
Total	300000

Names of Preference Shareholders	No. of Shares
16% Cumulative Redeemable Preference Shares (Series – V)
The Oriental Insurance Co. Limited, India	35000
United India Insurance Co. Limited, India	35000
General Insurance Corporation of India, India	30000
Total	100000

Equity Share Break up (Percentage of Total Equity)

As on 21.09.2012

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	2.44
Bodies corporate	43.79
Directors or relatives of Directors	0.03
Other top fifty shareholders	1.17
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Denim Fabrics.

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

· Bank of Baroda, Bhadra Branch, Opposite Dinbai Tower, Lal Darwaja, Ahmedabad - 380001, Gujarat, India

· Bank Of Maharashtra, Bhadra Branch, , Ahmedabad - 380061, Gujarat, India

· Indian Overseas Bank, M. I. Road, Jaipur - 302001, Rajasthan, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee term loans from others	264.462	256.804
Short Term Borrowings
Working capital loans from banks	222.302	210.409
Total	486.764	467.213

Long Term Borrowings

· Secured Term loan from Financial Institutions carry interest rate of 14% p.a. Out of total outstanding, Rs.171.662 Millions (Previous year Rs.131.666 Millions) towards restructuring / settlement, which has been shown as "Advanance against settlment" and Rs.33.338 Millions repayable during 2013-14.

· Secured Term loan from others carry interest rate of 14% p.a. Out of total Outstanding, Rs.92.800 Millions (Previous year Rs.91.800 Millions) paid towards restructuring / settlement, which has been shown as "Advance against settlement" and balance Rs.53.200 Millions repayable during 2013-14.

Short Term Borrowings

Borrowings for working capital from Banks are secured by hypothecation of stocks, book debts and second charge on fixed assets and are guaranteed by some of the Directors. 6.2 Rate of Interest on Working Capital Borrowing as per terms of sanction letter is PLR + 2 %. The Company has provided interest @ 17% at rate specified in latest advise issued by the bank. Principal and Interest on Working Capital Borrowings has remained unpaid since 2001-02.

Banking Relations :	--
Financial Institutions :	Morsel Traders Private Limited, 002 Gulmohar Complex, Station Road, Goregaon (East, Mumbai – 400063, Maharashtra, India
Auditors :
Name :	J.T. Shah and Company Chartered Accountants
Address :	201, Lalita Complex, Rasala Marg, Near Mithakhali Six Road, Navarangpura, Ahmedabad, Gujarat, India
PAN No.:	AABFJ6616J
Associates :	Shubham Corporate Advisory Services Private Limited CIN No.: U74140MH2003PTC141048
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Modern Terry Towels Limited CIN No.: L17124RJ1976PLC001869 · Modern Insulators Limited CIN No.: L31300RJ1982PLC002460

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs. 10/- each	Rs.400.000 Millions
2000000	Preference Shares	Rs. 100/- each	Rs.200.000 Millions
	Total		Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
37502000	Equity Shares	Rs. 10/- each	Rs.375.020 Millions
650000	Preference Shares	Rs. 100/- each	Rs.65.000 Millions
	Total		Rs.440.020 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	440.020	440.020	440.020
(b) Reserves & Surplus	(1412.459)	(1555.255)	(1568.190)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	160.000	160.000	160.000
Total Shareholders’ Funds (1) + (2)	(812.439)	(955.235)	(968.170)
(3) Non-Current Liabilities
(a) long-term borrowings	671.637	671.229	525.050
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	18.853	16.823	11.833
Total Non-current Liabilities (3)	690.490	688.052	536.883
(4) Current Liabilities
(a) Short term borrowings	222.302	210.409	198.517
(b) Trade payables	160.228	134.431	191.777
(c) Other current liabilities	500.671	678.699	748.738
(d) Short-term provisions	3.769	2.268	4.635
Total Current Liabilities (4)	886.970	1025.807	1143.667
TOTAL	765.021	758.624	712.380
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	291.169	291.707	282.599
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	283.342	241.875	159.147
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	574.511	533.582	441.746
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	127.514	141.654	216.986
(c) Trade receivables	40.954	64.573	43.821
(d) Cash and cash equivalents	9.072	8.661	2.080
(e) Short-term loans and advances	12.970	10.154	7.747
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	190.510	225.042	270.634
TOTAL	765.021	758.624	712.380

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		1597.108	1675.673	1434.485
		Other Income		3.632	6.363	6.651
		TOTAL (A)		1600.740	1682.036	1441.136
Less	EXPENSES
		Cost of Materials Consumed		1074.762	1124.696	1102.432
		Purchase of stock-in-trade		0.000	0.287	0.000
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(0.781)	58.379	(87.554)
		Employee Benefits Expenses		142.542	121.624	98.611
		Other Expenses		363.927	313.514	258.875
		Exceptional Items		(161.270)	0.000	(699.433)
		TOTAL (B)		1419.180	1618.500	672.931
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			182.560	63.536	768.205
Less	FINANCIAL EXPENSES (D)			22.606	34.982	23.619
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			158.954	28.554	744.586
Less	DEPRECIATION/ AMORTISATION (F)			16.158	15.619	14.339
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			142.796	12.935	730.247
Less	TAX (H)			0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			142.796	12.935	730.247
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	4.211	21.539	0.000
	TOTAL EARNINGS			4.211	21.539	0.000
	IMPORTS
			Raw Materials	45.961	32.086	23.483
			Stores & Spares	14.917	12.732	13.826
	TOTAL IMPORTS			60.878	44.818	37.309
	Earnings Per Share (Rs.)
	Basic			3.51	0.05	19.18
	Diluted			2.46	0.03	13.44

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	8.92	0.77	50.67
Net Profit Margin (PBT/Sales)	(%)	8.94	0.77	50.91
Return on Total Assets (PBT/Total Assets}	(%)	29.64	2.50	131.99
Return on Investment (ROI) (PBT/Networth)		(0.17)	(0.01)	(0.75)
Debt Equity Ratio (Total Debt /Networth)		(1.10)	(0.92)	(0.75)
Current Ratio (Current Asset/Current Liability)		0.21	0.22	0.24

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	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	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	Yes
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LISTING DETAILS:

HIGH COURT OF GUJARAT

CAVEATNo. 2884 of2013

Status : PENDING CCIN No : 001025201302884

Last Listing Date : -

Coram : -

S.NO.	Name of the Petitioner	Advocate On Record
1	UTTAR GUAJRAT VIJ COMPANY LTD	MR PREMAL R JOSHI for: Caveator(s) 1

S.NO.	Name of the Petitioner	Advocate On Record
1	MODERN DENIM LTD

Presented On : 06.09.2013 Registered On : -

Bench Category : District : MAHESANA

Case Originated From : THROUGH ADVOCATE Listed : 0 times

Stage Name :

LOWERCOURT DETAILS

S.No.	Lower Court Case Detail	Lower Court Name	Judge Name	Judgment date
1	SPECIAL CIVIL APPLICATION/15262/2012	GUJARAT HIGH COURT, AHMEDABAD	-	12/08/2013

OFFICE DETAILS

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	06/09/2013	VAKALATNAMA	MR PREMAL R JOSHI ADVOCATE for PETITIONER(s) 1	5	MR PREMAL R JOSHI(1327) for P:1
2	06/09/2013	MEMO OF APPEAL/PETITION/SUIT	MR PREMAL R JOSHI ADVOCATE for PETITIONER(s) 1	50	MR PREMAL R JOSHI(1327), for P:1

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans and advances from related parties (Loans from Corporate bodies do not carry any interest and are repayable in three equal annual instalments starting from 2015-16)	407.175	414.425
Total	407.175	414.425

OPERATIONS

During the year the company has achieved a turnover of Rs.1600.000 Millions as against Rs.1680.000 Millions during the previous financial year in spite of difficult business conditions. The margins were under pressure due to downturn witnessed in the Denim market during the year and the Company operated at lower utilization levels compared to previous financial year. The current supply glut in the domestic denim market has dragged down the entire financial performance of the Company which is visible in the financial results and the situation is not expected to improve in the near future. However, despite of all adverse features, the Company is continuing its efforts to explore opportunities for its products in overseas markets but insufficient resources is not allowing to reap the benefits to its fullest extent. The directors are unable to recommend any dividend for the year.

FUTURE PROSPECTS

The market across the globe is fragmented in nature and it become tough to access the real size in the demand side. Most of the new denim capacity in the country has become operational, resulting over supply and pressure on prices and margins. However removal of quota restrictions and growing consumption in Asian countries along with the growing mall mania is likely to increase the demand of denim. Their strategy to focus development of new designs in the conventional denim fabric is coming to our respite and being welcome in the medium segment of the market. Roaring temptation for new varieties will further strengthen the product mix. Global international brands are setting up offices in India. As such the company is hopeful to maintain its presence with competitive edge in spite of new entrants.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80029000	15/09/2000	668,300,000.00	BOB BOM Indusind Bank IOB Sanwa Bank	Chinubahi Towers, Ashram Road, Ahmedabad, Gujarat - 380009, INDIA	-
2	80059045	23/03/2010 *	217,034,409.00	MORSEL TRADERS PRIVATE LIMITED	002, GULMOHAR COMPLEX, STATION ROAD, GOREGAON (EAST), MUMBAI, Maharashtra - 400063, INDIA	A85515898
3	80059044	23/03/2010 *	42,034,409.00	MORSEL TRADERS PRIVATE LIMITED	002, GULMOHAR COMPLEX, STATION ROAD, GOREGAON (EAST), MUMBAI, Maharashtra - 400063, INDIA	A85518553
4	80059042	23/03/2010 *	175,000,000.00	MORSEL TRADERS PRIVATE LIMITED	002, GULMOHAR COMPLEX, STATION ROAD, GOREGAON (EAST), MUMBAI, Maharashtra - 400063, INDIA	A85469690
5	80059041	23/03/2010 *	72,000,000.00	MORSEL TRADERS PRIVATE LIMITED	002, GULMOHAR COMPLEX, STATION ROAD, GOREGAON (EAST), MUMBAI, Maharashtra - 400063, INDIA	A85516359
6	80059064	23/03/2010 *	125,000,000.00	MORSEL TRADERS PRIVATE LIMITED	002, GULMOHAR COMPLEX, STATION ROAD, GOREGAON (EAST), MUMBAI, Maharashtra - 400063, INDIA	A85469146
7	80065571	01/09/1995 *	332,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH , , MUMBAI, Maharashtra - 440011, INDIA	-

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Vehicle

· Computer

· Office Equipment’s

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.63.06
UK Pound	1	Rs.101.15
Euro	1	Rs.84.95

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VNT

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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