MIRA INFORM REPORT

1. Summary Information

		Country	India
Company Name	ANDHRA ELECTRONICS LIMITED	Principal Name 1	Mr. Bikkani Ratnakumar
Status	Satisfactory	Principal Name 2	Mr. Bolla Lakshminarayana
		Registration #	01-002130
Street Address	Plot No.34 and 35, Industrial Development Area, Kakinada- 533 005, Andhra Pradesh, India
Established Date	20.02.1977	SIC Code	--
Telephone#	91-884-2342203	Business Style 1	Manufacturer
Fax #	91-224-0448045	Business Style 2	--
Homepage	www.andhraelec.com	Product Name 1	Frequency Control Products
# of employees	Not Available	Product Name 2	--
Paid up capital	Rs.4,918,000/-	Product Name 3	--
Shareholders	Nationalised or other banks – 33.55% Directors or relatives of directors – 66.45%	Banking	Bank of Baroda
Public Limited Corp.	NO	Business Period	36 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Ba (49)
Related Company
Relation	Country	Company Name	-
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	57,630,000	Current Liabilities	9,775,000
Inventories	25,227,000	Long-term Liabilities	35,044,000
Fixed Assets	59,863,000	Other Liabilities	8,092,000
Deferred Assets	0,000	Total Liabilities	52,911,000
Invest& other Assets	280,000	Retained Earnings	85,717,000
		Net Worth	90,089,000
Total Assets	143,000,000	Total Liab. & Equity	143,000,000
Total Assets (Previous Year)	140,498,000
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	73,270,457	Net Profit	2,419,732
Sales(Previous yr)	67,743,193	Net Profit(Prev.yr)	1,273,546

MIRA INFORM REPORT

Report Date :

07.09.2013

IDENTIFICATION DETAILS

Name :	ANDHRA ELECTRONICS LIMITED

Registered Office :	Plot No.34 and 35, Industrial Development Area, Kakinada – 533 005, Andhra Pradesh

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	20.02.1977

Com. Reg. No.:	01-002130

Capital Investment / Paid-up Capital :	Rs.4.918 Millions

CIN No.: [Company Identification No.]	U29309AP1977PLC002130

TAN No.: [Tax Deduction & Collection Account No.]	VPNA00616A

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Frequency Control Products For Telecommunication, Military And Space Applications.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 360300

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track record. Trade relations are fair. Business is active. Payment terms are usually correct and as per commitment. The company can be considered 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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

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

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

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

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	Plot No.34 and 35, Industrial Development Area, Kakinada – 533 005, Andhra Pradesh, India
Tel. No.:	91-884-2379407 / 2342203
Fax No.:	91-884-2341145 / 2379408
E-Mail :	info@andhraelec.com nvvsatya@andhraelec.com
Website :	www.andhraelec.com
Area :	20000 sq.fts
Location :	Owned

USA Office :	Suite 725, 14781, Memorial Drive, Houston, TX – 77079, USA
Tel. No.:	1-877-891-7815
Fax No.:	1-413-473-9809
E-Mail :	Sales-usa@andhraelec.com

DIRECTORS

As on 27.09.2012

Name :

Mr. Bikkani Ratnakumar

Designation :

Managing Director

Address :

H. No.2-2-3/1, Srinagar, Kakinada – 533 003, Andhra Pradesh, India

Date of Birth/Age :

22.10.1956

Date of Appointment :

11.02.2008

DIN No.:

00033991

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	U50300AP1981PTC003044	SRI KVR FORGINGS Private Limited	Director	02-02-96	02-02-96	Active	NO
2	U60231AP1944PLC000223	SRI RAMADAS MOTOR TRANSPORT LTD.	Director	18-03-98	18-03-98	Active	NO
3	U29309AP1977PLC002130	ANDHRA ELECTRONICS LIMITED	Managing director	11-02-08	05-08-05	Active	NO
4	AAA-1187	AEL DATA SERVICES LLP	Designated Partner	23-04-10	23-04-10	Active	NO

Name :

Mr. Karipineni Venkata Sriram

Designation :

Whole-time Director

Address :

9-5, Ramanayya peta, Kakinada – 533 005, Andhra Pradesh, India

Date of Birth/Age :

18.01.1970

Date of Appointment :

13.08.2007

DIN No.:

00073911

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	U34300AP1983PLC003862	SRI BHAVANI CASTINGS LTD	Director	18-02-05	18-02-05	Active	NO
2	U29309AP1977PLC002130	ANDHRA ELECTRONICS LIMITED	Whole-time director	13-08-07	27-09-05	Active	NO

Name :

Mr. Bolla Lakshminarayana

Designation :

Managing Director

Address :

2-4-12/1, Girija Street, Srinagar, Kakinada – 533 003, Andhra Pradesh, India

Date of Birth/Age :

10.08.1949

Date of Appointment :

11.02.2008

DIN No.:

00075469

Other Directorship:

.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	U34300AP1983PLC003862	SRI BHAVANI CASTINGS LTD	Director	06-07-98	06-07-98	Active	NO
2	U29309AP1977PLC002130	ANDHRA ELECTRONICS LIMITED	Managing director	11-02-08	29-09-04	Active	NO

Name :

Mr. Prattipati Partha Sarathi

Designation :

Director

Address :

8-2-293/82, Plot no.500/2, Road No.86, Jubilee Hills, Hyderabad – 533 003, Andhra Pradesh, India

Date of Birth/Age :

27.07.1948

Date of Appointment :

19.09.2003

Name :

Mr. Ramchandra Shahdadpuri

Designation :

Director

Address :

8-2-293/82, Plot No.500/2, Road No.86, Jubilee Hills, Hyderabad – 533 003, Andhra Pradesh, India

Date of Birth/Age :

17.09.1946

Date of Appointment :

24.12.2004

MAJOR SHAREHOLDERS

As on 27.09.2012

Names of Shareholders		No. of Shares
B. Tufasamma		13550
V. Sridevi		20400
B. Ratnakumar		83650
B. L. Narayana		88800
C. V. Chinna Rao		1250
B. Shyamkumar		50
P. Pardhasaradhi		1100
B. Padmavathi		35300
B. Bhawani Devi		4800
B. R.T. Sundari		50
K. Tulasi		22750
B. Aditya		12500
B. Abhinay		12500
B. Padmavathi		20000
IDBI, IDBI Tower, India		165000
K.V. Sri Ram		5000
Sai lkya Aparajitha		5000
C. Sudhakar		50

Total		491750

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2012

Category	Percentage
Nationalised or other banks	33.55
Directors or relatives of Directors	66.45
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Frequency Control Products For Telecommunication, Military And Space Applications.

Products :

· Band Pass Filters

· Crystal Filters

· Local Oscillator

· Low Noise Amplifier

· Frequency Synthesizer

· Low Pass Filters

· High Pass Filters

Product or Services	ITC Code(4 digits)
Mounted Piezo	8541

PRODUCTION STATUS

Particulars

Licensed Capacity

(Nos.)

Installed Capacity

(Nos.)

Actual Production

(Nos.)

Mounted Piezo

1400000

954624

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Industrial Development Bank of India Limited, IDBI TOWERWTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

· Bank of Baroda, P B N.64, 17.1.6., Main Road, Kakinada – 533 001, Andhra Pradesh , India

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Term Loan from IDBI	8.850	13.800
Short Term Borrowings
Bank of Baroda CC	10.289	9.997
Bank of Baroda Book debts	6.924	1.140
Total	26.063	24.937

Banking Relations :	--
Auditors :
Name :	V. Ravi Sharma Chartered Accountants
Address :	Flat No. A7 Ratnanjali Towers, Near Three Lights Junction, Ramaraopeta, Kakinada – 533 004, Andhra Pradesh, India
PAN No.:	AAUPV0192N

CAPITAL STRUCTURE

As on 27.09.2012

Authorised Capital :

No. of Shares

Type

Value

Amount

10000000

Equity Shares

Rs. 10/- each

Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

491750

Equity Shares

Rs. 10/- each

Rs.4.918 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	4.918	4.917
(b) Reserves & Surplus	85.171	83.094
(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)	90.089	88.011

(3) Non-Current Liabilities
(a) long-term borrowings	17.831	22.781
(b) Deferred tax liabilities (Net)	5.618	5.329
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	23.449	28.110

(4) Current Liabilities
(a) Short term borrowings	17.213	11.137
(b) Trade payables	2.320	4.306
(c) Other current liabilities	7.455	7.098
(d) Short-term provisions	2.474	1.836
Total Current Liabilities (4)	29.462	24.377

TOTAL	143.000	140.498

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	59.863	63.888
(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	0.280	0.280
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	20.208	18.588
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	80.351	82.756

(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	25.227	23.171
(c) Trade receivables	13.366	19.332
(d) Cash and cash equivalents	18.135	9.954
(e) Short-term loans and advances	5.921	5.285
(f) Other current assets	0.000	0.000
Total Current Assets	62.649	57.742

TOTAL	143.000	140.498

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.917
2] Share Application Money		0.000
3] Reserves & Surplus		82.177
4] (Accumulated Losses)		0.000
NETWORTH		87.094
LOAN FUNDS
1] Secured Loans		37.314
2] Unsecured Loans		8.831
TOTAL BORROWING		46.145
DEFERRED TAX LIABILITIES		5.311

TOTAL		138.550

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		67.367
Capital work-in-progress		0.000

INVESTMENT		0.280
DEFERRED TAX ASSETS		0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.369
	Sundry Debtors	15.780
	Cash & Bank Balances	18.427
	Other Current Assets	22.871
	Loans & Advances	1.225
Total Current Assets		81.672
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.886
	Other Current Liabilities	1.139
	Provisions	1.744
Total Current Liabilities		10.769
Net Current Assets		70.903

MISCELLANEOUS EXPENSES		0.000

TOTAL		138.550

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	73.270	67.743	74.146
		Other Income	2.876	2.034	2.002
		TOTAL (A)	76.146	69.777	76.148

Less	EXPENSES
		Cost of Materials Consumed	22.288	21.979	17.740
		Changes in Inventories of Finished Goods, Work-in-progress and stock-in-trade	(2.546)	1.384	18.754
		Administrative	0.000	0.000	9.915
		Selling	0.000	0.000	6.666
		Employee benefits expense	20.179	16.421	0.000
		Other Expenses	21.304	17.325	7.027
		TOTAL (B)	61.225	57.109	60.102

Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.921	12.668	16.046

Less	FINANCIAL EXPENSES (D)		5.198	5.441	6.938

	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.722	7.227	9.108

Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.364	5.286	4.777

	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		4.359	1.941	4.331

Less	TAX (H)		1.940	0.667	1.400

	PROFIT/(LOSS) AFTER TAX (G-H) (I)		2.419	1.274	2.931

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.510	1.583	3.166

Less	APPROPRIATIONS
		Transfer to General Reserve	3.000	0.150	2.500
		Proposed Dividend at 6%	0.295	0.295	0.295
		Provision for Dividend Tax	0.048	0.048	0.049
	BALANCE CARRIED TO THE B/S		0.167	1.090	0.322

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3.803	3.195	3.800
	TOTAL EARNINGS		3.803	3.195	3.800

	IMPORTS
		Imported	11.903	17.870	15.378
		Indigeneous	6.020	4.003	1.846
	TOTAL IMPORTS		17.923	21.873	17.224

	Earnings Per Share (Rs.)		4.92	2.56	5.96

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.18	1.83	3.85

Net Profit Margin (PBT/Sales)	(%)	5.95	2.87	5.84

Return on Total Assets (PBT/Total Assets}	(%)	3.56	1.60	2.91

Return on Investment (ROI) (PBT/Networth)		0.05	0.02	0.05

Debt Equity Ratio (Total Debt /Networth)		0.39	0.39	0.53

Current Ratio (Current Asset/Current Liability)		2.13	2.39	7.58

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	Yes
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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Loans from Directors	8.005	8.005
Loans from Shareholders	0.976	0.976
Total	8.981	8.981

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10397152	18/12/2012	51,250,000.00	BANK OF BARODA	PB NO.64, 17.1.6., MAIN ROAD, KAKINADA – 533 001, Andhra Pradesh, INDIA	B65947889
2	10079682	24/10/2007	20,000,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI – 400 005, Maharashtra, INDIA	A28603330
3	90132838	10/08/2001 *	28,500,000.00	I.D.B.I. BANK LTD.	W.T.C. COMPLEX; I.D.B.I. TOWER, CUFFE PARADE, MUMBAI – 400 005, Maharashtra, INDIA	-
4	90135764	14/08/2001 *	16,500,000.00	BANK OF BARODA	MAIN ROAD, KAKINADA – 533 001, Andhra Pradesh, INDIA	-
5	90132145	12/10/1995 *	3,330,000.00	I.D.B.I. BANK LTD.	W.T.C. COMPLEX; I.D.B.I. TOWER, CUFFE PARADE, MUMBAI – 400 005, Maharashtra, INDIA	-
6	90132139	12/10/1995 *	7,000,000.00	I.D.B.I. BANK LTD.	W.T.C. COMPLEX; I.D.B.I. TOWER, CUFFE PARADE, MUMBAI – 400 005, Maharashtra, INDIA	-
7	90136511	20/11/1992	701,000.00	SUNDARAM FINANCE LTD.	NO – 21, PATULLOS ROAD, MADRAS – 600 002, Tamil Nadu, INDIA	-
8	90136510	22/09/1992	782,000.00	SUNDARAM FINANCE LTD.	NO - 21; PATULLOS ROAD, MADRAS – 600 002, Tamil Nadu, INDIA	-
9	90135219	11/03/1991	8,490,000.00	BANK OF BARODA	MAIN ROAD, KAKINDA - 533 001, Andhra Pradesh, INDIA	-
10	90131668	22/07/1989	1,400,000.00	BANK OF BARODA	KAKINADA, KAKINADA – 533 001, Andhra Pradesh, INDIA	-

* Date of charge modification

BUSINESS OPERATIONS :

Management is thinking to expand its operations, keeping in view the market conditions, by setting up of Design Centre at Hyderabad in the first stage and gradually expand the scope of operations to other parts of the company.

FIXED ASSETS:

· Land

· Factory Building

· Machinery

· Furniture and Fixture

· Office Equipments

· Air Conditioners

· Electric Equipments

· Generator

· Vehicles

· Computers

· Nitrogen Plant

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.65.96
UK Pound	1	Rs.102.91
Euro	1	Rs.86.58

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.

MIRA INFORM REPORT

3.18

5.95

3.56

0.05

0.39

2.13

Unit