MIRA INFORM REPORT

Report Date :

18.10.2013

IDENTIFICATION DETAILS

Name :	EWAC ALLOYS LIMITED
Registered Office :	L & T House, Ballard Estate, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.04.1962
Com. Reg. No.:	11-012315
Capital Investment / Paid-up Capital :	Rs. 82.944 millions
CIN No.: [Company Identification No.]	U74999MH1962PLC012315
PAN No.: [Permanent Account No.]	AAACE2470R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Special Welding Electrodes, Gas Brazing Rods And Fluxes, Welding Torches And Accessories, Atomised Metal Powder Alloys, Flux Cored Continuous Wires and Wire Feeders, Polymer Compounds and Wear Resistant Plates.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 2290000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “Larsen and Toubro Limited”. Financial performance of the company appears to be strong and healthy. Liquidity position seems to be decent. Trade relation are fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered ggod for business dealing at usual trade terms and condition.

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	CARE
Rating	Long term facilities : “AA+”
Rating Explanation	High degree of safety and very low credit risk.
Date	January, 2013

Rating Agency Name	CARE
Rating	Short term facilities : “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	January, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-22685656)

LOCATIONS

Registered Office :	L & T House, Ballard Estate, Mumbai – 400001, Maharashtra, India
Tel. No. :	91-22-67525656
Fax No. :	91-22-67525893
E-Mail :	subhodh.shetty@larsentoubro.com
Website :	www.larsentoubro.com
Factory :	Dr. Rene Wasserman Centre, Plot No.7917, GIDC, Ankleshwar – 393002, Gujarat, India
Regional Office :	L & T Business Park, Tower – B, TC – II, 5^th Floor, L&T Gate No.5, Powai Campus, Saki Vihar Road, Powai, Mumbai – 400072, Maharashtra, India

DIRECTORS

As on 19.08.2013

Name :

Mr. Jagdish Pandurang Nayak

Designation :

Director

Address :

Gilder House, 2nd Floor, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

13.11.1943

Qualification :

BE (MECH), PGD IN PROD ENGG

Date of Appointment :

10.08.1999

DIN No. :

00001644

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	L99999MH1946PLC004768	LARSEN AND TOUBRO LIMITED	Whole-time director	13/11/2008	03/03/1995	31/03/2011	Active	NO
2	U29119MH1997PLC109700	L AND T CONSTRUCTION EQUIPMENT LIMITED	Director	29/07/1997	29/07/1997	-	Active	NO
3	U74999MH1961PLC012188	L AND T VALVES LIMITED	Director	29/07/1999	29/07/1999	-	Active	NO
4	U74999MH1962PLC012315	EWAC ALLOYS LIMITED	Director	10/08/1999	10/08/1999	-	Active	NO
5	U28920MH1952PLC008893	L AND T CUTTING TOOLS LIMITED	Director	19/08/1999	19/08/1999	12/09/2013	Active	NO
6	L26940MH2000PLC128420	ULTRATECH CEMENT LIMITED	Director	24/08/2000	24/08/2000	15/06/2009	Active	NO
7	U45200AP2003PLC041893	NAC INFRASTRUCTURE EQUIPMENT LIMITED	Director	17/11/2003	17/11/2003	21/08/2010	Active	NO
8	U25209PN2000PTC147028	TOSHIBA MACHINE (CHENNAI) PRIVATE LIMITED	Director	07/06/2004	07/06/2004	17/12/2010	Active	NO
9	U22111WB2000PTC162530	VOITH PAPER TECHNOLOGY (INDIA) PRIVATE LIMITED	Director	12/05/2006	12/05/2006	30/09/2009	Active	NO
10	U31501MH2007PLC176667	L AND T ELECTRICALS AND AUTOMATION LIMITED	Director	12/12/2007	12/12/2007	02/08/2010	Active	NO
11	U74900MH2008PLC182601	L AND T NATURAL RESOURCES LIMITED	Director	23/05/2008	23/05/2008	06/12/2010	Active	NO

Name :

Mr. Raghavan Sadagopan

Designation :

Director

Address :

Flat No.302, Emerald, Green Apartment, 108, 6th Main, 8th Cross, Malleswaram, Bangalore – 560003, Karnataka, India

Date of Birth/Age :

25.03.1946

Qualification :

LME, AMIE, M.A.

Date of Appointment :

30.08.2008

DIN No. :

00002647

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	U29240MH1998PTC117183	CASE NEW HOLLAND CONSTRUCTION EQUIPMENT (INDIA) PRIVATE LIMITED	Director	22/03/2004	22/03/2004	31/03/2011	Active	NO
2	U65990MH1994PLC083147	L AND T FINANCE LIMITED	Director	04/05/2006	04/05/2006	-	Active	NO
3	U29119MH1997PLC109700	L AND T CONSTRUCTION EQUIPMENT LIMITED	Director	23/06/2006	12/05/2006	-	Active	NO
4	U28920MH1952PLC008893	L AND T CUTTING TOOLS LIMITED	Director	20/04/2007	23/12/2006	-	Active	NO
5	U22111WB2000PTC162530	VOITH PAPER TECHNOLOGY (INDIA) PRIVATE LIMITED	Director appointed in casual vacancy	31/07/2007	31/07/2007	30/09/2009	Active	NO
6	U25209PN2000PTC147028	TOSHIBA MACHINE (CHENNAI) PRIVATE LIMITED	Director	23/09/2009	18/09/2007	28/09/2012	Active	NO
7	U74999MH1961PLC012188	L AND T VALVES LIMITED	Director	27/05/2008	27/05/2008	-	Active	NO
8	U74999MH1962PLC012315	EWAC ALLOYS LIMITED	Director	25/04/2009	30/08/2008	-	Active	NO
9	U29253MH2010PTC210325	L AND T KOBELCO MACHINERY PRIVATE LIMITED	Director	25/11/2010	25/11/2010	-	Active	NO

Name :

Mr. Sunil Shrikrishna Sapre

Designation :

Director appointed in casual vacancy

Address :

401/402 Dipti Garnet, Jayprakasha Nagar, Road No-4, Goregaon (East), Mumbai – 400063, Maharashtra, India

Date of Birth/Age :

30.07.1963

Date of Appointment :

15.07.2013

DIN No. :

05329410

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	U40102PB2007PLC031039	NABHA POWER LIMITED	Director	28/09/2012	23/07/2012	-	Active	NO
2	U67190MH2000PLC125653	L AND T CAPITAL COMPANY LIMITED	Director	22/08/2013	13/07/2013	-	Active	NO
3	U74999MH1962PLC012315	EWAC ALLOYS LIMITED	Director appointed in casual vacancy	15/07/2013	15/07/2013	-	Active	NO
4	U28920MH1952PLC008893	L AND T CUTTING TOOLS LIMITED	Director	19/08/2013	15/07/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ananthkrishnan Shivkumar
Designation :	Manager
Address :	202, Garden View Building, Greenfield Society, Ghatla Road, Chembur, Mumbai – 400071, Maharashtra, India
Date of Birth/Age :	12.12.1955
Date of Appointment :	02.07.2011
PAN No.:	AADPA3840P
Name :	Mr. Subhodh Ravindranath Shetty
Designation :	Secretary
Address :	B-501/502, Gajanan Tower CHS Limited, M. Karve Road, Dombivili (West), Mumbai – 421202, Maharashtra, India
Date of Birth/Age :	15.06.1977
Date of Appointment :	14.02.2007
PAN No.:	AKYPS0719G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.08.2013

Names of Shareholders	No. of Shares
Larsen and Toubro Limited, India	829434
Nayak Pandurang Jagdish Jointly with Larsen and Toubro Limited, India	1
Shukla Jyotindra Vipin Jointly with Larsen and Tourbro Limited, India	1
Sadagopan Raghavan Jointly with Larsen and Tourbro Limited, India	1
N Hariharan Jointly with Larsen and Tourbro Limited, India	1
P. Ramakrishnan Jointly with Larsen and Tourbro Limited, India	1
Prasad V. Shanbhag Jointly with Larsen and Tourbro Limited, India	1
Total	829440

As on 19.08.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	99.99
Directors or relatives of Directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Special Welding Electrodes, Gas Brazing Rods And Fluxes, Welding Torches And Accessories, Atomised Metal Powder Alloys, Flux Cored Continuous Wires and Wire Feeders, Polymer Compounds and Wear Resistant Plates.

Products :

Item Code No. (ITC Code)	Product Description
83111000	Coated Electrodes
83112000	Flux- Cored Electrodes
72109090	Wear Plates

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity *	Actual Production
Special Welding Electrodes and Gas Welding Rods	Tonnes	600	741
Welding Fluxes - Powai	Tonnes	15	31
Welding Torches and Accessories	Nos.	300	101
Atomized Metal Powder Alloys	Tonnes	68	5
Flux-cored continuous Electrodes	Tonnes	360	306
Cold repair Compounds	Tonnes	30	3
Wear Plates/ Parts	Sq. metres	7500	6545
Manual Metal Arc Welding Electrodes and Gas Rods	Tonnes	240	345

Note:

Licensed capacity per annum not indicated due to the abolition of Industrial Licenses as per Notification No. 477 (E) dated 25th July, 1991 issued under the Industries (Development and Regulation) Act, 1951.

*As Certified by the Management and accepted by the Auditors.

GENERAL INFORMATION

No. of Employees :	Not Diuvlged
Bankers :	Bank of Baroda, Corporate Financial Services Branch, 3, Walchand Hirachand Marg, Ballard Pier, Mumbai – 400001, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Sharp and Tannan Chartered Accountants
Address :	Ravindra Annexe, 194 Churchgate Reclamation, Dinshaw Vachha Road, Mumbai – 400020, Maharashtra, India
PAN No. :	AAAFS2967E
Holding company :	Larsen and Toubro Limited, India CIN No.: L99999MH1946PLC004768
Fellow Subsidiaries: :	· Tractor Engineers Limited Larsen and Toubro Infotech Limited, India CIN: U72900MH1996PLC104693 L and T Finance Limited, India CIN: U65990MH1994PLC083147 L and T Cutting Tools Limited, India CIN: U28920MH1952PLC008893

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.100/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
829440	Equity Shares	Rs.100/- each	Rs. 82.944 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	82.944	82.944	82.944
(b) Reserves & Surplus	669.986	489.301	403.920
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	752.930	572.245	486.864
(3) Non-Current Liabilities
(a) long-term borrowings	320.000	80.000	0.000
(b) Deferred tax liabilities (Net)	29.876	16.876	23.385
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	12.353	8.383	5.344
Total Non-current Liabilities (3)	362.229	105.259	28.729
(4) Current Liabilities
(a) Short term borrowings	115.000	0.000	0.000
(b) Trade payables	537.554	587.181	264.004
(c) Other current liabilities	41.207	317.408	60.004
(d) Short-term provisions	94.666	383.042	16.681
Total Current Liabilities (4)	788.427	1287.631	340.689
TOTAL	1903.586	1965.135	856.282
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	749.869	169.409	153.800
(ii) Intangible Assets	5.159	0.000	0.000
(iii) Capital work-in-progress	49.985	332.330	0.451
(iv) Intangible assets under development	0.000	4.428	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	41.555	71.412	5.636
(e) Other Non-current assets	15.401	7.528	0.200
Total Non-Current Assets	861.969	585.107	160.087
(2) Current assets
(a) Current investments	0.000	81.965	68.120
(b) Inventories	469.311	616.195	254.094
(c) Trade receivables	430.407	533.214	288.223
(d) Cash and cash equivalents	83.567	93.668	40.647
(e) Short-term loans and advances	58.332	54.986	45.111
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1041.617	1380.028	696.195
TOTAL	1903.586	1965.135	856.282

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3845.257	3512.137	1844.808
		Other Income	15.027	8.759	11.654
		TOTAL (A)	3860.284	3520.896	1856.462
Less	EXPENSES
		Cost of materials consumed	489.764	869.185	457.817
		Purchases of stock-in-trade	1152.590	1393.369	730.614
		Employee benefit expense	289.248	258.506	112.477
		Other expenses	852.809	501.414	169.572
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	155.027	(349.787)	(35.627)
		TOTAL (B)	2939.438	2672.687	1434.853
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		920.846	848.209	421.609
Less	FINANCIAL EXPENSES (D)		25.121	1.485	1.167
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		895.725	846.724	420.442
Less/ Add	DEPRECIATION/ AMORTISATION (F)		30.482	28.514	15.392
	PROFITBEFORE TAX (E-F) (G)		865.243	818.210	405.050
Less	TAX (H)		284.500	265.291	132.266
	PROFITAFTER TAX (G-H) (I)		580.743	552.919	272.784
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		98.467	69.086	51.594
	APPROPRIATIONS
		Dividend	344.218	402.278	194.918
		Tax on Dividend	55.841	65.260	32.374
		General Reserve	59.000	56.000	28.000
	BALANCE CARRIED TO THE B/S		220.151	98.467	69.086
	EARNINGS IN FOREIGN CURRENCY
		Export of goods (on FOB basis)		47.597	40.787
		Commission		16.791	22.699
	TOTAL EARNINGS		NA	64.388	63.486
	IMPORTS
		Raw Materials			27.362
		Spare parts			0.658
		Capital Goods			1.481
		Trading goods			443.843
	TOTAL IMPORTS		NA	703.033	473.344
	Earnings Per Share (Rs.)		700.16	666.62	328.88

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	15.04	15.70	14.69
Net Profit Margin (PBT/Sales)	(%)	22.50	23.30	21.96
Return on Total Assets (PBT/Total Assets}	(%)	46.68	50.25	47.33
Return on Investment (ROI) (PBT/Networth)		1.15	1.43	0.83
Debt Equity Ratio (Total Debt/Networth)		0.58	0.14	0.00
Current Ratio (Current Asset/Current Liability)		1.32	1.07	2.04

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	No
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

YEAR IN RETROSPECT/ PERFORMANCE OF THE COMPANY

The sales (inclusive of excise) and other income for the financial year are Rs. 4016.900 Millions as against Rs. 3678.700 Millions for the previous financial year. The profit before tax (after interest and depreciation charges) is Rs. 865.200 Millions and profit after tax is Rs. 580.700 Millions for the financial year under review as against Rs. 818.200 Millions and Rs. 552.900 Millions respectively for the previous year.

The Company had closed its entire manufacturing operations at its Powai Works, Mumbai as at the end of the previous year (ending March 31, 2012) and majority of the moveable assets existing at Powai works have now been shifted to Ankleshwar. There was no material impairment of assets required to be made on completion of shifting and re-installation at Ankleshwar.

UNSECURED LOANS

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long term borroings
Rupee term loans from others	320.000	80.000
Short term borroings
Term loans	115.000	0.000
Total	435.000	80.000

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80048809	29/10/2008 *	30,000,000.00	BNP PARIBAS	62, HOMJI STREET, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	A52839107
2	80049010	11/01/1982	2,000,000.00	BANK OF BARODA	FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	-
3	80049998	17/08/2011 *	151,000,000.00	BANK OF BARODA	CORPORATE FINANCIAL SERVICES BRANCH, 3,WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI, MAHARASHTRA - 400001, INDIA	B25808262
4	80049009	15/05/1973	1,200,000.00	BANK OF BARODA	BOMBAY MAIN OFFICE, MUMBAI, MAHARASHTRA - 400001, INDIA	-

NOTE: * Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013	31.03.2012
Sales tax liabilty that may arise in respect of matters in appeals	33.858	33.858
Excise Duty liability that may arise in respect of matters in appeals	54.373	0.000

Note:

1. It is not practicable to estimate the timing of cash outflows, if any, in respect of above matter pending appellate proceedings.

2. The Company does not expect any reimbursements in respect of above contingent liabilities.

FIXED ASSETS

· Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

Office Equipment

Other Equipments

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.61.58
UK Pound	1	Rs.98.51
Euro	1	Rs.83.49

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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.