MIRA INFORM REPORT

Report Date :

10.10.2013

IDENTIFICATION DETAILS

Name :	HALCYON LABS PRIVATE LIMITED
Registered Office :	405-408 Navbharat Estates, B Wing, Zakaria Bunder Road, Sewri West, Mumbai – 400015, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.05.1984
Com. Reg. No.:	11-033021
Capital Investment / Paid-up Capital :	Rs. 4.917 Millions
CIN No.: [Company Identification No.]	U24230MH1984PTC033021
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Bulk drugs and intermediate chemicals.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 380000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Even though sales turnover of the company has increased, profit of the company has decreased during the financial year 2012. However, trade relations are fair. Business is active. Payments are recorded as 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

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: BB+
Rating Explanation	Inadequate credit quality and high credit risk.
Date	13 September 2012

Rating Agency Name	CRISIL
Rating	Short term rating : A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	13 September 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. Raviraj
Designation :	Account Manager
Contact No.:	91-22-24158860
Date :	07.10.2013

LOCATIONS

Registered Office :	405-408 Navbharat Estates, B Wing, Zakaria Bunder Road, Sewri West, Mumbai – 400015, Maharashtra, India
Tel. No.:	91-22-24158860
Fax No.:	91-22-24158861
E-Mail :	vdevan@encoregroup.net amerchant@encoregroup.net halcyon@ah2.agmgroup.com
Website :	www.halcycolabs.com
Location :	Owned
Factory :	Plot No. 409, Phase – IV, Naroda Industral Estate, Naroda, Ahmedabad – 382330, Gujarat, India
Tel. No.:	91-79-2811132/2821009/22844624/4370
Fax No.:	91-79-2821607

DIRECTORS

As on 29.09.2012

Name :

Mr. Aditya Sudhir Merchant

Designation :

Managing director

Address :

8A Suvas Apartment, 68F Nepeansea Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

26.09.1980

Date of Appointment :

01.10.2012

DIN No.:

02725972

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	U24230MH1984PTC033021	HALCYON LABS PRIVATE LIMITED	Managing director	01/10/2012	01/08/2009	-	Active	NO

Name :

Mr. Kirit Narsidas Shah

Designation :

Whole-time director

Address :

279 Shanti Kun,j Flat 24, Near Gandhi Market, Sion East, Mumbai – 400 022.

Maharashtra, India

Date of Birth/Age :

20.12.1949

Date of Appointment :

15.11.1997

DIN No.:

00093737

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	U74999MH1995PTC094588	INDUSTRIAL UTILITIES COMPANY (INDIA) PRIVATE LIMITED	Director	17/11/1995	17/11/1995	-	Amalgamated	NO
2	U24230MH1984PTC033021	HALCYON LABS PRIVATE LIMITED	Whole-time director	15/11/1997	15/11/1997	-	Active	NO

Name :

Shaila Viren Merchant

Designation :

Director

Address :

Suvas Apartment, 68F Nepeansea Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

10.11.1967

Date of Appointment :

31.07.1998

DIN No.:

01789821

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	U67120MH1981PTC025769	SAIDARSHAN BUSINESS CENTRES PRIVATE LIMITED	Director	12/10/1988	12/10/1988	-	Active	NO
2	U24230MH1984PTC033021	HALCYON LABS PRIVATE LIMITED	Director	31/07/1998	31/07/1998	-	Active	NO
3	U24230MH1987PTC044312	ZYG PHARMA PRIVATE LIMITED	Managing director	01/04/2009	01/04/2009	-	Active	NO
4	U55200MH1991PTC064076	JAMNAJI RESORTS PRIVATE LIMITED	Director	30/09/2010	30/09/2010	-	Active	NO

Name :

Rupa Sudhir Merchant

Designation :

Director

Address :

8A Suvas Apartment, 68F Nepeansea Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

17.01.1955

Date of Appointment :

01.10.2012

DIN No.:

00092488

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	U67120MH1981PTC025769	SAIDARSHAN BUSINESS CENTRES PRIVATE LIMITED	Director	26/12/1981	26/12/1981	-	Active	NO
2	U24230MH1984PTC033021	HALCYON LABS PRIVATE LIMITED	Director	01/10/2012	11/09/1989	-	Active	NO
3	U70102MH2011PTC222315	BEGONIA CONSTRUCTIONS PRIVATE LIMITED	Director	23/09/2011	23/09/2011	-	Active	NO
4	U24230MH1991PTC063720	ENCORE NATURAL POLYMERS PRIVATE LIMITED	Additional director	01/08/2013	01/08/2013	-	Active	NO

Name :

Mr. Bharat Ratilal Joshi

Designation :

Additional director

Address :

6 Nishant Bunglows II New Someshwar Complex, 132 Ft Road, Satellite, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

10.02.1953

Date of Appointment :

01.06.2012

DIN No.:

00093822

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	U74999MH1995PTC094588	INDUSTRIAL UTILITIES COMPANY (INDIA) PRIVATE LIMITED	Director	25/05/2001	25/05/2001	-	Amalgamated	NO
2	U24230MH1991PTC063720	ENCORE NATURAL POLYMERS PRIVATE LIMITED	Whole-time director	01/08/2006	01/08/2006	-	Active	NO
3	U24139GJ2012PTC070478	ENCORE POLYFRAC PRODUCTS PRIVATE LIMITED	Director	25/05/2012	25/05/2012	-	Active	NO
4	U24230MH1984PTC033021	HALCYON LABS PRIVATE LIMITED	Additional director	01/06/2012	01/06/2012	-	Active	NO
5	U24233MH2012PTC227842	INDUSTRIAL GUAR PRODUCTS PRIVATE LIMITED	Managing director	01/09/2013	08/06/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Raviraj
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Sudhir A Merchant	46506
Sudhir A Merchant and Rupa S Merchant	43025
Aditya S Merchant	45750
Nandini S Merchant	42000
Anjali V Merchant	47875
Viren A Merchant and Shaila V Merchant	43200
Indu A Merchant and Viren A Merchant	3000
Rupa S Merchant and Sudhir A Merchant	4500
Shaila V Merchant	35500
Viren A Merchant	47906
Indu A Merchant	37000
Rupa S Merchant	25900
Ajitkumar Gordhandas and Indu A Merchant	6375
Radhika V Merchant (Minor)	33200
Anila R Shah and Shefali R Shah	30000
Total	491737

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	93.90
Other top fifty shareholders	6.10
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Bulk drugs and intermediate chemicals.
Exports :
Products :	Bulk drugs Intermediate chemicals
Countries :	France Germany UK USA South Africa Italy Vietnam Indonesia etc.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

250 (Approximately)

Bankers :

• The Hongkong and Shanghai Banking Corporation Limited, 52/60, Mahatma Gandhi Road, Fort, Mumbai - 400001, Maharashtra, India
• Bank of Baroda, International Business Branch, Foreshore Building, Gen Bhosale Marg, Nariman Point, Mumbai - 400021, Maharashtra, India

Facilities :

Secured Loan

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

Long-term Borrowings

From Bank

0.347

0.541

Short-term borrowings

From Bank

28.077

12.938

Total

28.424

13.479

Note:

Details of terms of repayment for the other long-term borrowings and security provided in respect of the secured other long-term borrowings:

Particulars	Terms of repayment and security*	31.03.2012		31.03.2011
Term loans from banks: HDFC Bank	Secured by Hypothecation of Vehicle - Repayable in 60 Monthly Equated Installments commencing from 1-4-201	0.347	--	0.541	--
Total - Term loans from banks	--	0.347	--	0.541	--

(i) Details of security for the secured short-term borrowings:

Particulars	Nature of security	31.03.2012	31.03.2011
Loans repayable on demand from banks: Bank of Baroda	Secured by Hypothecation on present and future stocks and book debts, present and future fixed assets, equitable mortgage on factory land and building	28.077	12.938
Total Form Bank	--	28.077	12.938

Banking Relations :
Auditors :
Name :	A.P. Asher and Company Chartered Accountants
Address :	Vela Kutir, Plot # 25, Navyug Society, V. M. Road, Jvpd Scheme, Vile Parle (West), Mumbai - 400 056, Maharashtra, India
Associates:	Zyg Pharma Private Limited Encore Healthcare Private Limited Saidarshan Business Centres Private Limited Encore Natural Polymers Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
550000	Equity Shares	Rs.10/- each	Rs. 5.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
491737	Equity Shares	Rs.10/- each	Rs. 4.917 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	4.917	4.917
(b) Reserves & Surplus	88.916	76.846
(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)	93.833	81.763
(3) Non-Current Liabilities
(a) long-term borrowings	0.347	0.541
(b) Deferred tax liabilities (Net)	1.996	1.942
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	2.343	2.483
(4) Current Liabilities
(a) Short term borrowings	28.077	22.938
(b) Trade payables	24.899	36.033
(c) Other current liabilities	5.420	8.851
(d) Short-term provisions	0.263	0.163
Total Current Liabilities (4)	58.659	67.985
TOTAL	154.835	152.231
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	31.697	27.387
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	14.900	14.900
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	2.187	8.495
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	48.784	50.782
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	34.766	35.838
(c) Trade receivables	44.160	39.763
(d) Cash and cash equivalents	8.936	7.434
(e) Short-term loans and advances	11.964	11.453
(f) Other current assets	6.225	6.961
Total Current Assets	106.051	101.449
TOTAL	154.835	152.231

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.917
2] Share Application Money		0.000
3] Reserves & Surplus		68.713
4] (Accumulated Losses)		0.000
NETWORTH		73.630
LOAN FUNDS
1] Secured Loans		41.490
2] Unsecured Loans		0.000
TOTAL BORROWING		41.490
DEFERRED TAX LIABILITIES		1.581
TOTAL		116.701
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.860
Capital work-in-progress		0.000
INVESTMENT		14.900
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.180
	Sundry Debtors	52.833
	Cash & Bank Balances	14.457
	Other Current Assets	0.000
	Loans & Advances	39.804
Total Current Assets		134.274
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.911
	Other Current Liabilities	11.820
	Provisions	12.885
Total Current Liabilities		59.616
Net Current Assets		74.658
MISCELLANEOUS EXPENSES		0.000
TOTAL		116.701

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		170.568
		Other Income		15.713
		TOTAL	214.020	186.281	195.916
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
Less/ Add	DEPRECIATION/ AMORTISATION		2.949	2.741	2.930
	PROFIT BEFORE TAX		17.760	16.464	11.337
Less	TAX		5.689	3.744	2.302
	PROFIT AFTER TAX		12.071	12.720	9.035
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		53.516	46.882	37.847
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	1.500	0.000
		Dividend	0.000	3.933	0.000
		Tax on Dividend	0.000	0.653	0.000
	BALANCE CARRIED TO THE B/S		65.587	53.516	46.882
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	92.843	118.813
	IMPORTS
		Raw Materials	NA	90.779	116.465
	TOTAL IMPORTS		NA	90.779	116.465
	Earnings Per Share (Rs.)		24.55	25.87	18.37

Particulars	31.03.2013
Sales Turnover (Approximately)	252.300

The above information has been parted by Mr. Raviraj (Account Manager)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.64	6.89	4.61
Net Profit Margin (PBT/Sales)	(%)	NA	9.65	NA
Return on Total Assets (PBT/Total Assets}	(%)	12.69	11.99	7.04
Return on Investment (ROI) (PBT/Networth)		0.19	0.20	0.15
Debt Equity Ratio (Total Debt /Networth)		0.30	0.29	0.56
Current Ratio (Current Asset/Current Liability)		1.13	1.24	2.25

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

MARKETING OUTLOOK:

During the current year also, raw material prices continued to be volatile. the company is continuously attempting to upgrade the quality of its products to meet market demands local as well as international and to stay ahead of the competition by virtue of value addition

UNSECURED LOAN

PARTICULARS

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

Short-term borrowings

Loans and advance from related parties

0.000

10.000

Total

0.000

10.000

Note:

(i) Details of security for the secured short-term borrowings:

Particulars	Nature of security	31.03.2012	31.03.2011
Loans and advances from related parties: Nandini S. Merchant	--	--	10.000

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10396055	04/01/2013	85,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	52/60, MAHATMA GANDHI ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B65551848
2	10381906	17/10/2012	85,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	52/60, MAHATMA GANDHI ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B60229028
3	90361233	22/03/2002 *	5,000,000.00	BANK OF BARODA	INTER NATIONAL BUSINSS BRANCH ; NRIMAN POINT, MUMB AI, MAHARASHTRA, INDIA	-
4	90361150	10/04/2007 *	83,000,000.00	BANK OF BARODA	INTERNATIONAL BUSINESS BRANCH, FORESHORE BLDG, GEN BHOSALE MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	-
5	90360967	13/07/1998	25,000,000.00	BANK OF BARODA	INTER NATIONAL BUSINSS BRANCH ; NRIMAN POINT, MUMBAI, MAHARASHTRA, INDIA	-
6	90357856	10/04/2007 *	83,000,000.00	BANK OF BARODA	INTERNATIONAL BUSINESS BRANCH,, FORESHORE BLDG, G EN BHOSALE MARG, NARIMAN POINT,, MUMBAI, MAHARASHT RA - 400021, INDIA	-
7	90212522	16/07/1994	1,560,000,143,500.00	BANK OF BARODA	INDL FINANCE BRANCH, BARODA HOUSE; 42 C. P. STREET; FORT, BOMBAY, MAHARASHTRA - 400023, INDIA	-
8	90360691	06/05/1994 *	14,500,000.00	BANK OF BARODA	INDUSTRIAL FINANCE BRNH ; BARODA . HOUSE, 42; C.P . STREET FORT, MUMBAI, MAHARASHTRA, INDIA	-
9	90212365	06/12/1994 *	1,900,000.00	BANK OF BARODA	INDL FINANCE BRANCH, BARODA HOUSE; 42 C. P. STREET; FORT, BOMBAY, MAHARASHTRA - 400001, INDIA	-
10	90212320	07/12/1992	1,560,000.00	BANK OF BARODA	BOMABY MAIN OFFICE DEPT., BOMBAY SAMACHAR MARG; FORT, BOMBAY, MAHARASHTRA - 400023, INDIA	-

Note: * Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2012
Claims against the Company not acknowledged as debt	5.728
Guarantees - Adani Gas Limited	0.222
Other money for which the Company is contingently liable	8.469

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Vehicle
• Office Equipment
• Leasehold Improvement
• 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.61.92
UK Pound	1	Rs.99.45
Euro	1	Rs.83.92

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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		34

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.