MIRA INFORM REPORT

Report Date :

24.10.2013

IDENTIFICATION DETAILS

Name :	KAVI COMMERCIAL COMPANY LIMITED
Registered Office :	Viraj Impex House, 47 P D Mello Road, Mumbai-400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.03.1985
Com. Reg. No.:	11-082517
Capital Investment / Paid-up Capital :	Rs. 14.700 Millions
CIN No.: [Company Identification No.]	L99999MH1985PLC082517
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Trader and Importer of Iron and Steel
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 740000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an old and well established company having a moderate track record. There appears a drastic dip in the net profitability of the company during 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings with some cautions.

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

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the traqde deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB (Long Term Rating)
Rating Explanation	Moderate degree of safety and carry moderate credit risk.
Date	May 2013

Rating Agency Name	ICRA
Rating	A3 (Short Term Rating)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	May 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 PARTED BY

Name :	Mr. Mukesh
Designation :	Accounts Department
Contact No.:	91-22-61295000
Date :	22.10.2013

LOCATIONS

Registered Office :	Viraj Impex House, 47, P D Mello Road, Mumbai-400009, Maharashtra, India
Tel. No.:	91-22-61295000
Fax No.:	91-22-61295024
E-Mail :	virajimpex@virajimpex.com
Website :	www.virajimpex.com
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Ratanlal Kaniyalala Didwania
Designation :	Director
Address :	Flat No.20, 10^th Floor, New USha Kiran, 15 Carmichael Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	02.08.1935
Date of Appointment :	12.11.1990
DIN No.:	00220820

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	Company/ LLP Status	Defaulting status
1	U51900MH1978PTC020237	DIDWANIA IMPORT AND EXPORT COMPANY PRIVATE LIMITED	Whole-time director	22/03/1978	22/03/1978	Strike off	NO
2	U27109AS1984PLC002202	ASSAM GALVANIZING INDUSTRIES LIMITED	Whole-time director	02/08/1984	02/08/1984	Strike off	NO
3	U70101MH1986PTC041043	NIRBHAY HOLDINGS PRIVATE LIMITED	Whole-time director	07/11/1988	07/11/1988	Active	NO
4	L99999MH1985PLC082517	KAVI COMMERCIAL COMPANY LIMITED	Whole-time director	01/10/2012	12/11/1990	Active	NO
5	U51900MH1988PTC046416	VIRAJ IMPEX PRIVATE LIMITED	Whole-time director	01/10/2012	06/12/1990	Active	NO
6	U29299GJ1992PLC018611	GUJARAT PIPAVAV MARINE ENGINEERS LIMITED	Whole-time director	23/11/1992	23/11/1992	Active	NO
7	U31300GJ1980PLC054048	LUMEN MAGNETIC WIRES LIMITED	Managing director	03/04/1998	03/04/1998	Active	NO
8	U35110MH1997PLC111092	VINAYAGA MARINE PETRO LIMITED	Whole-time director	01/10/2012	19/01/2004	Active	NO
9	U70100MH1999PTC121018	VIRAJ PROPERTIES PRIVATE LIMITED	Whole-time director	03/07/2007	03/07/2007	Active	NO

Name :	Mr. Vimal Ratanlal Didwania
Designation :	Director
Address :	Flat No.212, 21^st Floor, Mont Blane Co-Operative Housing Society, Near Shalimar Hotel, Dadi Seth Hill, August Kranti Marg, Mumbai-400036, Maharashtra, India
Date of Birth/Age :	25.10.1955
Date of Appointment :	15.10.1990
DIN No.:	00221021

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	Company/ LLP Status	Defaulting status
1	U51900MH1978PTC020237	DIDWANIA IMPORT AND EXPORT COMPANY PRIVATE LIMITED	Whole-time director	22/03/1978	22/03/1978	Strike off	NO
2	U70101MH1986PTC041043	NIRBHAY HOLDINGS PRIVATE LIMITED	Whole-time director	07/11/1988	07/11/1988	Active	NO
3	L99999MH1985PLC082517	KAVI COMMERCIAL COMPANY LIMITED	Whole-time director	01/10/2012	15/10/1990	Active	NO
4	U29299GJ1992PLC018611	GUJARAT PIPAVAV MARINE ENGINEERS LIMITED	Whole-time director	23/11/1992	23/11/1992	Active	NO
5	U35110MH1997PLC111092	VINAYAGA MARINE PETRO LIMITED	Managing director	01/10/2012	06/10/1997	Active	NO
6	U70100MH1999PTC121018	VIRAJ PROPERTIES PRIVATE LIMITED	Whole-time director	27/07/1999	27/07/1999	Active	NO
7	U70102MH1989PTC053323	VIRAJ LAND DEVELOPERS PRIVATE LIMITED	Director	22/04/2010	22/04/2010	Active	NO

Name :	Mr. Prakash Ratanlal Didwania
Designation :	Director
Address :	Flat No.20, 10^th Floor, New USha Kiran, 15 Carmichael Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	15.06.1960
Date of Appointment :	15.10.1990
DIN No.:	00225978

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	Company/ LLP Status	Defaulting status
1	U51900MH1988PTC046416	VIRAJ IMPEX PRIVATE LIMITED	Whole-time director	01/10/2012	07/03/1988	Active	NO
2	U70101MH1986PTC041043	NIRBHAY HOLDINGS PRIVATE LIMITED	Whole-time director	07/11/1988	07/11/1988	Active	NO
3	L99999MH1985PLC082517	KAVI COMMERCIAL COMPANY LIMITED	Managing director	01/10/2012	15/10/1990	Active	NO
4	U70100MH1999PTC121036	RIYA SHRIYA PROPERTIES PRIVATE LIMITED	Whole-time director	28/07/1999	28/07/1999	Active	NO

Name :	Mr. Aayush Kailash Didwania
Designation :	Director
Address :	30, Altamount Road, Chapsey Terrace, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	30.11.1986
Date of Appointment :	02.05.2005
DIN No.:	00222740

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	Company/ LLP Status	Defaulting status
1	L99999MH1985PLC082517	KAVI COMMERCIAL COMPANY LIMITED	Whole-time director	01/04/2010	02/05/2005	Active	NO

Name :	Mr. Naresh Champaklal Parekh
Designation :	Director
Address :	605, Gurukripa Co-operative Housing Society, L B S Marg, Gangawadi, Ghatkopar (West), Mumbai-400086, Maharashtra, India
Date of Birth/Age :	15.02.1952
Date of Appointment :	07.10.1992
DIN No.:	01961569

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	U70102MH1989PTC053323	VIRAJ LAND DEVELOPERS PRIVATE LIMITED	Whole-time director	19/01/1991	19/01/1991	22/04/2010	Active	NO
2	L99999MH1985PLC082517	KAVI COMMERCIAL COMPANY LIMITED	Director	07/10/1992	07/10/1992	-	Active	NO
3	U51109WB2008PTC122661	INFINITY VINCOM PRIVATE LIMITED	Director	15/02/2008	15/02/2008	-	Active	NO
4	U29299GJ1992PLC018611	GUJARAT PIPAVAV MARINE ENGINEERS LIMITED	Director	15/07/2009	15/07/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Mukesh
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Note: Shareholder details file attached.

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Bodies corporate	13.61
Directors or relatives of Directors	37.41
Other top fifty shareholders	48.98
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Trader and Importer of Iron and Steel

Products :

ITC CODE	PRODUCTS
7208	Hot Rolled Coils / Plates (Non Alloy)
7209	Cold Rolled Coils/Sheet
7225	Hot Rolled Steel Coils/Plates (Alloy)

Imports :

Products :

Iron and Steel

Countries :

· China

· Iran

· Russia

· Iraq

· Ukraine

Terms :

Selling :

L/C, Credit

Purchasing :

L/C, Credit

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	25 (Approximately)
Bankers :	· UCO Bank, Flagship Corporate Branch, 1^st Floor, Mafatlala Centre, Nariman Point, Mumbai-400021, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Bhatt and Mathur Chartered Accountant
Address :	402, Star Manor, Anand Road Extension, Malad (West), Mumbai-400064, Maharashtra, India
PAN No.:	AAAFB5870F
Associates :	· Viraj Impex Private Limited CIN No.:- U51900MH1988PTC046416 · Vinayaga Marine Petro Limited CIN No.:- U35110MH1997PLC111092 · Nirbhay Holdings Private Limited CIN No.:- U70101MH1986PTC041043 · Lumen Magnetic Wires Limited CIN No.:- U31300GJ1980PLC054048 · Riya Shriya Properties Private Limited CIN No.:- U70100MH1999PTC121036 · Viraj Properties Private Limited CIN No.:- U70100MH1999PTC121018

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1750000	Equity Shares	Rs.10/- each	Rs. 17.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1470000	Equity Shares	Rs.10/- each	Rs. 14.700 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	14.700	14.700
(b) Reserves & Surplus	171.559	169.058
(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)	186.259	183.758
(3) Non-Current Liabilities
(a) long-term borrowings	54.755	15.053
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	54.755	15.053
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	538.250	549.659
(c) Other current liabilities	12.634	12.768
(d) Short-term provisions	0.000	4.782
Total Current Liabilities (4)	550.884	567.209
TOTAL	791.898	766.020
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10.007	6.842
(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	46.783	46.783
(c) Deferred tax assets (net)	0.027	0.089
(d) Long-term Loan and Advances	7.968	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	64.785	53.714
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	199.388	86.664
(c) Trade receivables	238.355	160.400
(d) Cash and cash equivalents	256.221	406.810
(e) Short-term loans and advances	0.868	10.785
(f) Other current assets	32.281	47.647
Total Current Assets	727.113	712.306
TOTAL	791.898	766.020

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		14.700
2] Share Application Money		0.000
3] Reserves & Surplus		112.811
4] (Accumulated Losses)		0.000
NETWORTH		127.511
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		26.735
TOTAL BORROWING		26.735
DEFERRED TAX LIABILITIES		0.000
TOTAL		154.246
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.971
Capital work-in-progress		0.000
INVESTMENT		46.783
DEFERREX TAX ASSETS		0.085
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	167.560
	Sundry Debtors	250.850
	Cash & Bank Balances	44.354
	Other Current Assets	0.000
	Loans & Advances	45.225
Total Current Assets		507.989
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.829
	Other Current Liabilities	381.753
	Provisions	0.000
Total Current Liabilities		407.582
Net Current Assets		100.407
MISCELLANEOUS EXPENSES		0.000
TOTAL		154.246

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1036.896	1092.388	1361.746
		Other Income	21.294	13.173	8.812
		TOTAL (A)	1058.190	1105.561	1370.558
Less	EXPENSES
		Purchase of Stock In Trade	1155.219	903.935	1186.157
		Employee benefits expenses	0.839	0.358
		Other Expenses	7.404	30.756
		Changes in inventories of Finished goods, work in progress and stock in trade	(112.723)	80.896
		TOTAL (B)	1050.739	1015.945	1186.157
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.451	89.616	184.401
Less	FINANCIAL EXPENSES (D)		3.400	3.301	3.621
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.051	86.315	180.780
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.167	0.129	0.174
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		3.884	86.186	180.606
Less	TAX (H)		1.382	29.939	61.962
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		2.502	56.247	118.644
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		169.059	112.812	(5.832)
	BALANCE CARRIED TO THE B/S		171.561	169.059	112.812
	Earnings / (Loss) Per Share (Rs.)		1.70	38.26	80.71

Particulars	31.03.2013
Sales Turnover (Approximately)	1300.000

The above information has been parted by Mr. Mukesh.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.24	5.09	8.66
Net Profit Margin (PBT/Sales)	(%)	0.37	7.89	13.26
Return on Total Assets (PBT/Total Assets}	(%)	0.52	0.12	0.35
Return on Investment (ROI) (PBT/Networth)		0.02	0.47	1.42
Debt Equity Ratio (Total Debt /Networth)		0.29	0.08	0.21
Current Ratio (Current Asset/Current Liability)		1.32	1.26	1.25

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

FACILITIES

Unsecured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Intercorporate Deposits	54.755	15.053
TOTAL	54.755	15.053

VIEW INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	80002330	03/07/2010 *	650,000,000.00	UCO BANK	FLAGSHIP CORPORATE BRANCH, 1ST FLOOR, MAFATLAL CENTRE, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A89062707
* Date of charge modification

NOTE

Registered office has been shifted from 87/B, Broach Street, Nooruddin Chamber, 4^th Floor, Masjid (East), Mumbai-400009, Maharashtra, India, India to the present address w.e.f. 16.03.2010.

BUSINESS REVIEW

The Company deals in the flat steel product viz. prime/stock lot flat products like Hot Rolled, Cold Rolled Coils/Sheets/Plates, Non Alloy Steel Rod, M. S. Billets etc.

The WSA (World Steel Association) has projected that apparent steel use will increase by 6.5% to 1,398 mt in 2011, following growth of 15.1% in 2010. In 2012, it has projected that the same will grow further by 5.4%. Such growth will be largely driven by China and India with China’s apparent steel use in 2011 and 2012 expected to increase by 7.5% and 6% respectively. For India, growth in apparent steel use is expected to be subdued at 4.3% in 2011 but expected to go up by 7.9% in 2012.

As per the report of the Working Group on Steel for the 12th Plan, there exist many factors which carry the potential of raising the per capita steel consumption in the country, currently estimated at 55 kg (provisional). These include among others, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in urban population to 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.

Company’s sales were marginally down by 5.08% during the F.Y. 2011-12 as compared to previous F.Y. 2010-11 and the margin of the Company was also hit mainly due to depreciation of the local currency and volatility in steel prices in the F.Y.2011-12. During the F.Y.2011-12, rupee has depreciated against US$ due to Europe’s financial crisis, which led to higher costs for imports.

FIXED ASSETS

· Building

· Motor Vehicles

· Land

· Furniture and Fixtures

· 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. 61.53
UK Pound	1	Rs. 99.74
Euro	1	Rs. 84.74

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.