MIRA INFORM REPORT

Report Date :

12.10.2013

IDENTIFICATION DETAILS

Name :	BLOOM DEKOR LIMITED
Registered Office :	267, Village Oran, Taluka Prantij, N.H. 8, District Sabarkantha - 383 205, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.03.1992
Com. Reg. No.:	04-017341
Capital Investment / Paid-up Capital :	Rs.60.000 Millions
CIN No.: [Company Identification No.]	L20210GJ1992PLC017341
TAN No.: [Tax Deduction & Collection Account No.]	AHMB00170C
PAN No.: [Permanent Account No.]	AAACB6221B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer And Exporter of High Pressure Decorative Laminates.
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 640000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. In the current their is improvement in the performance capacity and financially. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments The company can be considered for business dealing with slight 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	ICRA
Rating	TERM LOAN = BB
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	October 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 DECLINED BY

Name :	Mr. Raju
Designation :	Accounts Manager
Contact No.:	91-79-26841916

LOCATIONS

Registered Office / Factory :	267, Village Oran, Taluka Prantij, N.H. 8, District Sabarkantha - 383 205, Gujarat, India
Tel. No.:	91-2770-230510
Fax No.:	91-2770-230546
E-Mail :	doshiac@gmail.com info@bloomdekor.com
Website :	http://www.bloomdekor.com
Location :	Owned
Head Office :	2/F, Sumel, S G Highway, Thaltej, Ahmedabad-380059, Gujarat, India
Tel. No.:	91-79-26841916/17/18
Fax No.:	91-79-26841914
E-Mail :	laminates@bloomdekor.com doors@bloomdekor.com

DIRECTORS

As on 31.03.2012

Name :	Mr. Mayur Rajendrabhai Parikh
Designation :	Director
Address :	H/62, Management Enclave, Nehru Parikh Road, Vastrapur, Ahmedabad - 380015, Gujarat, India
Date of Birth/Age :	13.11.1959
Date of Appointment :	15.08.1992
DIN No.:	Director
Name :	Dr Sunil Sitaram Gupta
Designation :	Chairman and Managing Director
Address :	No.9, Kalhaar Bungalows, Sector-III Beyond Shilaj Village, Bopal Post, Ahmedabad - 380058, Gujarat, India
Date of Birth/Age :	06.12.1958
Date of Appointment :	23.03.1992
DIN No.:	00012572
Name :	Mrs. Rupal Sunil Gupta
Designation :	Whole-time director
Address :	No.9, Kalhaar Bungalows, Sector-III Beyond Shilaj Village, Bopal Post, Ahmedabad - 380058, Gujarat, India
Date of Birth/Age :	15.10.1961
Date of Appointment :	23.03.1992
DIN No.:	00012611
Name :	Mr. Chirag Ashokbhai Mehta
Designation :	Director
Address :	5, Janpad Society, P. T. College Road, Paldi, Ahmedabad – 380006, Gujarat, India
Date of Birth/Age :	07.05.1975
Date of Appointment :	24.10.2008
DIN No.:	02500707
Name :	Mr. Karan Sunil Gupta
Designation :	Director
Address :	No.9, Kalhaar Bungalows, Sector-III Beyond Shilaj Village, Bopal Post, Ahmedabad - 380058, Gujarat, India
Date of Birth/Age :	09.10.1989
Date of Appointment :	01.04.2012
DIN No.:	03435462
Name :	Mr. Ashok Chandrakant Gandhi
Designation :	Director
Address :	2, Prabhat Society, Paldi, Ahmedabad - 380007, Gujarat, India
Date of Birth/Age :	04.12.1939
Date of Appointment :	29.09.2012
DIN No.:	00022507

KEY EXECUTIVES

Name :	Mr. Raju
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2013

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3402882	49.68
Bodies Corporate	128000	1.87
Sub Total	3530882	51.55
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	3530882	51.55
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	813146	11.87
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	907534	13.25
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	568389	8.30
Any Others (Specify)	1030049	15.04
Non Resident Indians	957207	13.97
Hindu Undivided Families	49702	0.73
Clearing Members	23140	0.34
Sub Total	3319118	48.45
Total Public shareholding (B)	3319118	48.45
Total (A)+(B)	6850000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	6850000	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer And Exporter of High Pressure Decorative Laminates

Products :

Product Description	ITC Code
Decorative Laminated Sheets and Wooden Doors	44129900

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Laminate Plant	Sheets	--	1470000	1049906
Door Plant	Pieces	--	90000	5824

GENERAL INFORMATION

No. of Employees :

70 (Approximately)

Bankers :

· State Bank of India, Overseas Branch Navjeevan Trust Building, Navjeevan P O, Ahmedabad - 380014, Gujarat, India

· The Karur Vysya Bank Limited, Post Box No.21, Erode Road, Karur - 639002, Tamil Nadu, India

Facilities :

Secured Loans	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions
Long Term Borrowing
Term Loans
- From Banks	2.542	9.338
- From Financial Institutions	3.945	0.000
Short Term Borrowing
- From banks	199.235	172.516
- Bill Discounted under letter of credit	3.545	3.496
Total	209.267	185.350

Banking Relations :	--
Auditors :
Name :	B T Vora And Company Chartered Accountants
Address :	706 "Hemkoot" Opposite Capital Commercial Centre, Ashram Road, Ahmedabad – 380009, Gujarta, India
PAN No.:	AALPV1476A
Related Parties :	· Suncare Traders Limited · Karan Interior Limited · Anik Holding Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6250000	Equity Shares	Rs.10/- Each	Rs.62.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- Each	Rs.60.000 Millions

Reconciliation of Shares outstanding at the begging and at the end of reporting year.

Particulars	No. of shares	Rs. In Millions
Equity shares with voting rights
At the Begning of the year	600000	60.000
Issued During the year	--	--
Outstanding at the end of the year	600000	60.000

Details of shares held by each shareholder holding more than 5% of issued share capital:

Class of shares / Name of shareholder	Number of shares held	% holding in that class of shares
Equity shares with voting rights
Dr. Sunil Gupta	2146074	35.77%
Rupal Gupta	509759	8.50%
Bimalkumar P. Brahmbhatt	800000	13.33%
Rudra Securities and Capital Limited	0	0.00%
Total	3455833	57.60%

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	60.000	60.000
(b) Reserves & Surplus	99.766	97.438
(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)	159.766	157.438
(3) Non-Current Liabilities
(a) long-term borrowings	7.719	9.338
(b) Deferred tax liabilities (Net)	16.728	16.577
(c) Other long term liabilities	7.431	8.325
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	31.878	34.240
(4) Current Liabilities
(a) Short term borrowings	202.780	176.012
(b) Trade payables	113.604	119.010
(c) Other current liabilities	26.370	23.721
(d) Short-term provisions	5.318	1.526
Total Current Liabilities (4)	348.072	320.269
TOTAL	539.716	511.947
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	158.630	159.017
(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	0.422	0.011
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	9.274	8.109
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	168.326	167.137
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	235.733	231.121
(c) Trade receivables	88.294	85.042
(d) Cash and cash equivalents	27.992	12.235
(e) Short-term loans and advances	19.283	15.405
(f) Other current assets	0.088	1.007
Total Current Assets	371.390	344.810
TOTAL	539.716	511.947

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		60.000
2] Share Application Money		0.000
3] Reserves & Surplus		103.073
4] (Accumulated Losses)		0.000
NETWORTH		163.073
LOAN FUNDS
1] Secured Loans		144.437
2] Unsecured Loans		5.877
TOTAL BORROWING		150.314
DEFERRED TAX LIABILITIES		17.268
TOTAL		330.655
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		155.900
Capital work-in-progress		0.000
INVESTMENT		0.017
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS LOANS & ADVANCES
	Inventories	175.369
	Sundry Debtors	81.651
	Cash & Bank Balances	8.109
	Other Current Assets	0.000
	Loans & Advances	29.957
Total Current Assets		295.086
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	111.532
	Other Current Liabilities	8.215
	Provisions	0.601
Total Current Liabilities		120.348
Net Current Assets		174.738
MISCELLANEOUS EXPENSES		0.000
TOTAL		330.655

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	535.489	431.835	412.388
		Other Income	2.329	3.086	6.512
		TOTAL (A)	537.818	434.921	418.900
Less	EXPENSES
		Cost of materials consumed	315.467	271.790
		Purchases of stock-in-trade	4.898	7.616
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	3.752	(34.432)
		Employee benefits expenses	39.291	35.570
		Other expenses	116.799	122.416
		TOTAL (B)	480.207	402.960	372.643
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		57.611	31.961	46.257
Less	FINANCIAL EXPENSES (D)		39.448	27.633	20.313
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.163	4.328	25.944
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.135	10.377	13.155
	PROFIT BEFORE TAX (E-F) (G)		6.028	(6.049)	12.789
Less	TAX (H)		0.214	(0.414	2.638
	PROFIT AFTER TAX (G-H) (I)		5.814	(5.635)	10.151
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		66.818	72.453	62.302
	BALANCE CARRIED TO THE B/S		68.845	66.818	72.453
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	100.273	91.051	109.785
	TOTAL EARNINGS		100.273	91.051	109.785
	IMPORTS
		Raw Materials	114.481	118.301	98.981
		Stores & Spares	0.000	1.511	1.698
		Capital Goods	5.523	8.109	6.347
		Publicity Item	0.000	0.618	0.000
	TOTAL IMPORTS		120.004	128.539	107.026
	Earnings Per Share (Rs.)		0.97	(0.94)	1.69

QUARTERLY RESULTS

PARTICULARS	30.06.2013
Audited / UnAudited	UnAudited
Net Sales	139.600
Total Expenditure	128.100
PBIDT (Excl OI)	11.500
Other Income	0.100
Operating Profit	11.600
Interest	13.900
Exceptional Items	0.000
PBDT	(2.300)
Depreciation	3.400
Profit Before Tax	(5.700)
Tax	0.000
Provisions and contingencies	0.000
Profit After Tax	(5.700)
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(5.700)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.08	(1.30)	2.42
Net Profit Margin (PBT/Sales)	(%)	1.13	(1.40)	3.10
Return on Total Assets (PBT/Total Assets}	(%)	1.12	(1.18)	2.84
Return on Investment (ROI) (PBT/Networth)		0.04	(0.03)	0.08
Debt Equity Ratio (Total Debt /Networth)		1.32	1.18	1.66
Current Ratio (Current Asset/Current Liability)		1.07	1.08	2.45

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	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	Yes

UNSECURED LOANS:

Particulars	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions
Long Term Borrowing
Term Loans
- From Banks	1.232	0.000
Total	1.232	0.000

INDEX CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10208233	23/08/2013 *	285,100,000.00	PUNJAB NATIONAL BANK LIMITED	ASHRAM ROAD, AHMEDABAD, Gujarat - 380009, INDIA	B84527944
2	90099550	21/10/2003 *	7,500,000.00	THE KARUR VYSYA BANK LTD.	MOTILAL CENTRE ASHRAM ROAD, AHMEDABAD, Gujarat - 380009, INDIA	-
3	90099071	20/12/2002 *	40,000,000.00	EXPORT IMPORT BANK OF INDIA	CENTRE ONE WORLD TRADE CENTRE, FUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	-
4	90097872	28/03/1994	9,000,000.00	GUJARAT STATE FINANCIAL CORPORATION	JALDARSHAN BUILDING ASHRAM ROAD, AHMEDABAD, Gujarat - 380009, INDIA	-

* Date of charge modification

FINANCIAL PERFORMANCE:

Subject is engaged into the manufacturing of high pressure laminate sheets used in the furniture industry as well as interiors. The Company was mainly exporting its products till 2006-07. The growth in the local market and the continuous strengthening of the Rupee against the USD opened new opportunities for the company to shift focus onto the domestic markets. Domestic sales have shown a growth of 27.77% over the previous year 10-11.

The gross turnover of the company in the year 2011-2012 has shown a growth of 23.66% as compared to the previous year which also exceeded the projections. The turnover of the company in the year 2011-2012 is Rs.537.817 Millions as against Rs.434.922 Millions for the previous year 2010-2011.

The domestic markets in India have shown tremendous up trends in demand due to a boom in the construction industry and new design concepts emerging for sophisticated interiors. This is reason enough for the increase in domestic laminate sales and strategic decisions taken by the management have helped in improving the top line of the company both in the domestic and the international markets.

During the financial year, there had been a number of external factors adversely affecting the performance and profitability of the Company; i.e Increase in 1) raw material cost, for chemicals like Phenol, Methanol, Formaldehyde and Melamine due to rising crude oil prices. 2) Unfavorable exchange rates of US Dollar and EURO 3) Increase in both inward and outward freight costs due to high fuel prices. In addition to this, frequent shortage of raw materials also affected the overall production and in turn, the anticipated top line of the Company.

Despite the downturn in the economy subject has returned an increase of 24.45% on the top line with better margins.

INDUSTRY OVERVIEW AND DEVELOPMENTS:

Globally, the decorative laminate industry is projected to have a marginal growth. However, the domestic market is showing a very healthy double digit growth, which appears to be sustainable for the coming decade mainly on account of boom in the real estate markets which has put a high demand for decorative laminate sheets catering to the interior decoration of the innumerable residential and commercial buildings sector.

At the same time, the Chinese invasion with low prices is adding pressure on the price realizations. The contribution of Indian laminate industry to the world demand is still under utilized and offers a lot of opportunity for the growth in volume.

OUTLOOK:

LAMINATES:

Laminate industry in India is growing at a rapid speed, in spite of many new entrants in the market. Although the competition has increased, it has created awareness amongst the consumers and has benefited to the organized players like Bloom. Bloom has its own standing in the market and is known as a premium brand. With the help of versatile product range in Laminates and with two Brands, BLOOM - Simply d'front and OLIVE - new world laminates - BE BOLD. BE NEW. BE U. it can cater the needs of both the trade and the influencers. Company is poised to become a market leader soon. The platform is ready, we just need to take off!, aiming at a growth of nearly 25% annual.

DOORS:

The Company's entry into door business was marked by down trend in construction industry and fierce competition from unorganized sector. Hence, Bloom doors going very tough in this business. Hence, Bloom doors introduced up-market, environment friendly new generation - engineered doors which found lots of interests in the market. Many builders were interested in using them as entrance doors due to rich and esthetic look of solid door but value for money. New door concepts are very well accepted in the market and company is hopeful of achieving 50% growth for the coming year.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions
a) Letter of Credit opened for import of Raw materials	20.061	11.237
b) Letter of Credit opened for indigenous Raw material	10.725	15.138
c) Sales bills discounted With Bankers	3.545	3.495
d) Letter of Credit for Capital Goods`	0.000	2.618
e) Income tax demand disputed in appeals	16.581	17.310
f) Gujarat Sales Tax disputed in appeals	0.598	0.598
g) Insurance claim	2.041	2.041
h) Excise & Service tax demand disputed in appeals	0.987	0.000

FIXED ASSETS:

· Land

· Site Development

· Factory Building

· Staff Quarters

· Plant and Machinery

· S.S. Press Moulds

· Electric Installation

· Lab Equipments

· Office Equipments

· Furniture and Fixture

· Air Conditioner

· Vehicles

· E- Treatment Plant

· Office Furniture

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 records 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.61.15
UK Pound	1	Rs.97.76
Euro	1	Rs.82.78

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.