MIRA INFORM REPORT

Report Date :

02.10.2013

IDENTIFICATION DETAILS

Name :	ARON UNIVERSAL LIMITED
Registered Office :	25/1, Jigani Industrial Area, Jigani Anekal Taluk, Bangalore – 562106, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.06.1983
Com. Reg. No.:	08-005391
Capital Investment / Paid-up Capital :	Rs. 37.920 Millions
CIN No.: [Company Identification No.]	U74999KA1983PLC005391
TAN No.: [Tax Deduction & Collection Account No.]	BLRA05610D
PAN No.: [Permanent Account No.]	AACCA0449A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of vivid daylight Fluorescent pigments, Fluorescent Toners, Fluorescent ink bases, Fluorescent dispersions and pigment dispersions through relentless research and development.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 375000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as decent. Business is active. Payment terms re usually correct and as per commitment. The company can be considered for 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.

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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 DECLINED BY

Name :	Mr. Shailesh Madhubhai Patel
Designation :	Director
Contact No.:	91-9845193244
Date :	25.09.2013

LOCATIONS

Registered Office / Factory :	25/1, Jigani Industrial Area, Jigani Anekal Taluk, Bangalore – 562106, Karnataka, India
Tel. No. :	91-80-26605128 / 27825578 / 27825331 / 27825315 / 27825795
Mobile No. :	91-9845193244 (Mr. Shailesh Madhubhai Patel)
Fax No. :	91-80-27825331 / 27825794 / 27825578
E-Mail :	kupendraas@gmail.com
Website :	www.aronuniversal.com
Corporate Office :	No.103/104, Brigade Business Suites, 44, T Mariappa Road (100ft Road), Ashoka Pillar, Jayanagar 2^nd Block, Bangalore – 560011, Karnataka, India
Tel. No. :	91-80-26579449 / 26579339 91-8110-416222
Fax No. :	91-80-27825794 / 27825578
E-Mail :	sales@aronuniversal.com
Overseas Office :	Located at · China

DIRECTORS

As on 28.09.2012

Name :

Mr. Ashok Babubhai Amin

Designation :

Managing Director

Address :

507, 46^th Cross, Jayan Agar, 5^th Block, Bangalore – 560041, Karnataka, India

Date of Birth/Age :

22.02.1939

Date of Appointment :

29.06.1983

DIN No. :

00215825

Name :

Ansu Ashok Amin

Designation :

Managing director

Address :

507, 46^th Cross, Jayan Agar, 5^th Block, Bangalore – 560041, Karnataka, India

Date of Birth/Age :

09.02.1946

Date of Appointment :

01.04.2010

DIN No. :

00215956

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	U74999KA1983PLC005391	ARON UNIVERSAL LIMITED	Managing director	01/04/2010	01/07/1993	-	Active	NO

Name :

Mr. Shailesh Madhubhai Patel

Designation :

Whole-time director

Address :

321, 3^rd Main, 4^th Cross, JP Nagar, 3^rd Phase, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

21.12.1952

Date of Appointment :

01.04.2010

DIN No. :

00228647

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	U74999KA1983PLC005391	ARON UNIVERSAL LIMITED	Whole-time director	01/04/2010	29/06/1983	-	Active	NO
2	U24221KA1999PTC024921	KAPAM INTERNATIONAL PRIVATE LIMITED	Director	19/03/1999	19/03/1999	-	Active	NO

Name :

Kalpana Shailesh Patel

Designation :

Whole-time director

Address :

321, 3^rd Main, 4^th Cross, JP Nagar, 3^rd Phase, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

03.06.1954

Date of Appointment :

01.04.2010

DIN No. :

00228796

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	U74999KA1983PLC005391	ARON UNIVERSAL LIMITED	Whole-time director	01/04/2010	01/07/1993	-	Active	NO
2	U24221KA1999PTC024921	KAPAM INTERNATIONAL PRIVATE LIMITED	Director	19/03/1999	19/03/1999	-	Active	NO

Name :

Mr. Sriram Tadimalla

Designation :

Director

Address :

25/1, North Public Square Road, Basavangudi, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

07.04.1948

Date of Appointment :

26.08.1995

DIN No. :

00318089

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	U74999KA1983PLC005391	ARON UNIVERSAL LIMITED	Director	26/08/1995	26/08/1995	-	Active	NO
2	U35204KA1996PTC020766	ADITYA AUTO PRODUCTS AND ENGINEERING (INDIA) PVT LTD	Director	27/10/2004	27/10/2004	29/09/2012	Active	NO

Name :

Mr. Pulak Chandra Ray

Designation :

Director

Address :

Sarbhashree 161-F, 2^nd Cross, JP Nagar, Bangalore – 560078, Karnataka, India

Date of Birth/Age :

23.12.1930

Date of Appointment :

07.11.1995

DIN No. :

00384548

Name :

Mr. Narasimh Iengar Sampath Kumaran

Designation :

Director

Address :

No.1350/18, 5^th Cross, Ashok Nagar, Bangalore – 560050, Karnataka, India

Date of Birth/Age :

23.01.1942

Date of Appointment :

19.09.2008

DIN No. :

02248392

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	U74999KA1983PLC005391	ARON UNIVERSAL LIMITED	Director	19/09/2008	30/06/2008	-	Active	NO

Name :

Mr. Sriram Padmanathan

Designation :

Director

Address :

No.306, Kasturbha, 40^th Cross, 8^th Block, Jayanagar, Bangalore – 560004, Karnataka, India

Date of Birth/Age :

26.03.1942

Date of Appointment :

12.06.2001

DIN No. :

01515711

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	U29210KA1971PLC002030	RAPSRI ENGINEERING INDUSTRIES LIMITED	Director	30/09/1973	30/09/1973	-	Active	NO
2	U29120KA1976PTC002958	VITA TECHNOLOGY PRIVATE LIMITED	Director	20/02/1976	20/02/1976	-	Active	NO
3	U74999KA1983PLC005391	ARON UNIVERSAL LIMITED	Director	12/06/2001	12/06/2001	-	Active	NO
4	U85110KA1990PLC010752	SURETEC PRECISION LIMITED	Whole-time director	01/04/2007	01/04/2007	-	Active	NO
5	U29100KA2012PLC063295	RAPSRI ENGINEERING PRODUCTS COMPANY LIMITED	Director	29/03/2012	29/03/2012	-	Active	NO
6	U29214KA2012PTC063570	RAPSRI PRECISION ENGINEERED COMPONENTS PRIVATE LIMITED	Director	16/04/2012	16/04/2012	-	Amalgamated	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
Ashok Babubhai Amin	1534720
Ansu Ashok Amin	554720
Nirav S Patel	32000
Sunita Ashok Amin	124480
Yashni S Patel	32000
Patel M Shailesh - HUF	115840
Amin B Ashok - HUF	112480
Neelam Ashok Amin	62400
Shailesh Madhubai Patel	813760
Kalpana Shailesh Patel	409600
Total	3792000

Allottees as on 04.12.2012

Names of Allottees	No. of Shares
Ashok Babubhai Amin	433
Total	433

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of vivid daylight Fluorescent pigments, Fluorescent Toners, Fluorescent ink bases, Fluorescent dispersions and pigment dispersions through relentless research and development.

Products :

Item Code No. (ITC Code)	Product Description
320417	Daylight Fluorescent Pigments

· Cosmetics

· Petroleum Products

· Coatings

o Clay Coating

o Paper

o Seed Coating

· Printing Inks

o Digital Inks

o Gravure Inks

o Offset Inks

o Screen Inks

· Painting

o Aliphatic/ Aromatic Solvent Base

o Aqueous / Latex

o Cellulose

o Rubber

o Water Colors

· Plastics

o Blow Moulding

o Direct Moulding

o Extruded Plastic Profiles

o Custom Extruded Plastic Profiles

o Masterbatch

o PVC

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	31.03.2011
Installed Capacity	MT	1200.00
Actual Production	MT	1109.148

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· State Bank of India, Sme JP Nagar Branch, No.11, 1st Floor, 20^th Main, 15^th Cross, JP Nagar, 5^th Phase, Bangalore - 560078, Karnataka, India

· Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Secured Term Loans From Banks
State Bank of India Term Loan Secured Against Hypothecation of Plant and Machinery and other Current Assets	53.983	13.708
Kotak Mahindra Prime Limited Term Loan Secured Against Hypothecation of Car and Guarnanted by the Directors of the Company	1.274	0.551
Kotak Mahindra Bank Term Loan Secured Against Hypothecation of Flat And Guarnanted by the Directors of the Company	6.910	0.000
State Bank of India Buyers Credit Secured Against Hypothecation of Plant and Machinery and Stock	6.491	0.000
SHORT TERM BORROWINGS
Secured Loans From Banks
Cash Credit from State Bank of India
Cash Credit	50.168	28.868
Export Packing Credit (Secured By Hypothecation of Raw Materials, Finished Goods, Wip, Book Debts and Bills Receivables)	25.203	20.142
Total	144.029	63.269

Banking Relations :	--
Auditors :
Name :	Kupendra and Associates Chartered Accountants
Address :	Ground Floor, Hema Enclave, No.245, 3rd Cross, 3^rd Main, Chamarajpet, Bangalore – 560018, Karnataka, India
PAN No. :	AHEPS3013N

CAPITAL STRUCTURE

After 28.09.2012

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
3792433	Equity Shares	Rs.10/- each	Rs. 37.924 Millions

As on 28.09.2012

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
3792000	Equity Shares	Rs.10/- each	Rs. 37.920 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	37.920	37.920
(b) Reserves & Surplus	55.940	46.704
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	93.860	84.624
(3) Non-Current Liabilities
(a) long-term borrowings	99.844	41.591
(b) Deferred tax liabilities (Net)	12.471	10.322
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	112.315	51.913
(4) Current Liabilities
(a) Short term borrowings	75.371	49.010
(b) Trade payables	48.033	23.249
(c) Other current liabilities	5.766	19.261
(d) Short-term provisions	4.272	5.134
Total Current Liabilities (4)	133.442	96.654
TOTAL	339.617	233.191
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	161.861	69.689
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	1.758	7.616
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3.698	3.056
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	167.317	80.361
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	76.153	55.115
(c) Trade receivables	77.388	73.010
(d) Cash and cash equivalents	6.849	5.144
(e) Short-term loans and advances	11.535	19.391
(f) Other current assets	0.375	0.170
Total Current Assets	172.300	152.830
TOTAL	339.617	233.191

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		18.960
2] Share Application Money		0.000
3] Reserves & Surplus		46.829
4] (Accumulated Losses)		0.000
NETWORTH		65.789
LOAN FUNDS
1] Secured Loans		31.670
2] Unsecured Loans		27.601
TOTAL BORROWING		59.271
DEFERRED TAX LIABILITIES		9.796
TOTAL		134.856
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		76.976
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.394
	Sundry Debtors	58.849
	Cash & Bank Balances	4.498
	Other Current Assets	3.088
	Loans & Advances	11.113
Total Current Assets		108.942
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.062
	Other Current Liabilities	12.153
	Provisions	12.847
Total Current Liabilities		51.062
Net Current Assets		57.880
MISCELLANEOUS EXPENSES		0.000
TOTAL		134.856

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	324.538	293.276	265.614
		Other Income	1.001	0.389	(2.098)
		TOTAL (A)	325.539	293.665	263.516
Less	EXPENSES
		Cost of Material Consumed	212.667	166.819
		Employee Benefits Expenses	33.039	26.697
		Other Expenses	69.029	59.447
		Impairment of Assets	0.000	6.767
		Changes In Inventories of Finished Goods Work-In-Progress And Stock -In-Trade	(24.183)	(11.121)
		TOTAL (B)	290.552	248.609	221.967
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		34.987	45.056	41.549
Less	FINANCIAL EXPENSES (D)		12.963	4.602	10.522
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.024	40.454	31.027
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.037	4.513	5.024
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		16.987	35.941	26.003
Less	TAX (H)		5.548	12.495	9.185
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		11.439	23.446	16.818
	Additional Income Tax		--	--	0.580
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	NA	0.933
		Provision for Dividend	NA	NA	3.413
	BALANCE CARRIED TO THE B/S		NA	NA	11.892
	EARNINGS IN FOREIGN CURRENCY
		Earnings by way of exports	185.263	163.469	152.127
	TOTAL EARNINGS
	IMPORTS
		Raw Materials	126.947	102.048
		Capital Goods	14.022	0.000
	TOTAL IMPORTS		140.969	102.048	76.119
	Earnings / (Loss) Per Share (Rs.)		3.02	6.18	8.87

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.51	7.98	6.38
Net Profit Margin (PBT/Sales)	(%)	5.23	12.26	9.79
Return on Total Assets (PBT/Total Assets}	(%)	5.03	15.93	13.99
Return on Investment (ROI) (PBT/Networth)		0.18	0.42	0.40
Debt Equity Ratio (Total Debt/Networth)		1.87	1.07	0.90
Current Ratio (Current Asset/Current Liability)		1.29	1.58	2.13

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	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10330954	02/12/2011	7,000,000.00	KOTAK MAHINDRA BANK LIMITED	36-38A, NARIMAN BHAVAN, 227, D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	B30300602
2	90195390	11/08/2001 *	975,000.00	STATE BANK OF INDIA	BANGLORE COMMERCIAL BRANCH, KRISHI BHAVAN HUDOSN CIRCLE, BANGLORE, KARNATAKA, INDIA	-
3	90194068	10/05/2013 *	247,000,000.00	STATE BANK OF INDIA	SME JP NAGAR BRANCH, NO.11, 1ST FLOOR, 20TH MAIN, 15TH CROSS, JP NAGAR 5TH PHASE BANGALORE - 560078, KARNATAKA, INDIA	B78079472
4	90195356	23/11/2001 *	11,600,000.00	STATE BANK OF INDIA	BANGLORE COMMERCIAL BRANCH, KRISHI BHAVAN HUDSUN CIRCLE, BANGLORE, KARNATAKA, INDIA	-
5	80065259	17/01/1996	2,080,000.00	THE KARNATAKA STAT FINANCIAL CORPORATION	MG ROAD, BANGALORE - 560001, KARNATAKA, INDIA	-
6	90193723	01/07/1995 *	775,000.00	STATE BANK OF INDIA	BANGLORE CITY BRANCH, J.C. ROAD, BANGLORE - 565002, KARNATAKA, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
LONG TERM BORROWINGS
Loans from Directors	31.186	27.332
Total	31.186	27.332

PERFORMANCE OF THE COMPANY AND OPERATIONS:

During the year 2011-2012, the company had about 10.66 % growth in the Total Sales turnover and the company has achieved profit decrease by 50 % compared to the previous year, this is on account of increase in raw materials cost, interest, salary etc. Quantitative details of sales are 1089.46 mt.

NEW PRODUCTS:

The R&D division of the company is continuously releasing the new products and few such products have been put into the market for test marketing and success of these products will result in the increase of profitability and turnover of the company.

EXPANSION PROJECT:

The 1st Phase of expansion project taken for modernization and capacity expansion has been completed last year. The infrastructure created is now put to use and as a result the product quality has substantially improved. This will enable them to improve their sales turnover considerably during current financial year.

They may have to go in for 2^nd phase of the expansion during the current financial year to achieve optimum results.

CORPORATE OFFICE:

During the year a city office at “Brigade Suites”, opp: Ashok Pillar has been purchased. This new office has a separate office for their CMD and CEO along with some other senior officers and marketing / sales staff. This will have better impact and access to the market.

This will also help to have useful meetings with foreign designators during the visit to India, other customers / dealers and also suppliers.

REPRESENTATIVE OFFICE IN CHINA:

The company has strengthened the team at China office and hope penetrates China market shortly with this new team.

FIXED ASSETS

· Freehold Land

· Buildings

· Plant and Equipments

· Furniture and Fixture

· Vehicles (Cars)

· Office Equipments

· Computers

· Electrical Installations

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.62.36
UK Pound	1	Rs.101.20
Euro	1	Rs.84.54

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.