MIRA INFORM REPORT

Report Date :

21.09.2013

IDENTIFICATION DETAILS

Name :	VARDHMAN INDUSTRIES LIMITED

Registered Office :	2^nd Floor, Jeevan Deep Building, Parliament Street, New Delhi – 110 001

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	05.12.1984

Com. Reg. No.:	55-019492

Capital Investment / Paid-up Capital :	Rs.79.476 Millions

CIN No.: [Company Identification No.]	L74899DL1984PLC019492

TAN No.: [Tax Deduction & Collection Account No.]	DELV04256A

Legal Form :	Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturing and Marketing of Steel Ingots and G.P/G.C Sheets and Coils.

No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 3026000

Status :	Satisfactory

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB = Long Term Rating
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	15.10.2012

Rating Agency Name	CRISIL
Rating	A3+ = Short Term Rating
Rating Explanation	Moderate degree of safety and higher credit risk
Date	15.10.2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. S.P. Singla
Designation :	Vice President in Marketing
Contact No.:	91-9813232578
Date :	16.09.2013

LOCATIONS

Registered Office :	2^nd Floor, Jeevan Deep Building, Parliament Street, New Delhi – 110 001, India
Tel No. :	91-11-23742401
Mobile No.:	91-9313904878/ 9873232578 (Mr. S.P. Singla)
Fax No. :	91-11-23742403
E-Mail :	cs.vil@vallabhgroup.com singla512@gmail.com
Website :	www.vardhman-industries.com
Area :	2000 Sq. Ft
Location :	Rented

Marketing Office :	GH-6/223, Meera Bagh, Paschim Vihar, New Delhi – 110 087, India
Tel. No.:	91-11-32568055
Fax No.:	91-11-25274665
E-Mail:	singla512@gmail.com singla_ndl@yahoo.co.in
Area :	1000 Sq. Fts
Location :	Owned

Branch Office / Administrative Office :	G.T. Road, Pawa, Sahnewal, Ludhiana - 141 120, Punjab, India
Tel. No.:	91-161-2511412/13
Fax No.:	91-161-2511414

Factory :	Iron and Steel Units G.T. Road, Village Pawa, Sahnewal Ludhiana - 141 120, Punjab, India Tel No. : 91-161-2511412/2511413 G.T. Road, Village Bapror, Tehsil Rajpura, District Patiala, Punjab, India Tel No. : 91-1762-265700 / 657781 Fax No. : 91-1762-265710 Area : 70 Acres Location : Owned G.T. Road, Village Nandpur, Sahnewal, Ludhiana - 141 120, Punjab, India Tel No. : 91-161-2844499 Village Dugdha Ghamaria(), District Saraikela, Jharkhand, India Tel No. : 91-657-3290209 Power Units ()** Village Dugdha Ghamaria (), District Saraikela , Jharkhand, India Tel No. : 91-657-3290209 () Petition for approval of Scheme of Arrangement under section 394 for hiving off of these units is pending with Hon'ble Delhi High Court at New Delhi

DIRECTORS

As on 31.03.2013

Name :	Mr. Kapil Kumar Jain
Designation :	Chairman

Name :	Mr. Rahul Jain
Designation :	Managing Director

Name :	Mr. Vikram Jain
Designation :	Whole Time Director

Name :	Mr. Suresh Gupta
Designation :	Director

Name :	Mr. Ashok Kumar Jain
Designation :	Director

Name :	Mr. Ashwani Kumar
Designation :	Director

Name :	Mr. Surendra Kumar Vig
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S.P. Singla
Designation :	Vice President in Marketing

SHAREHOLDING PATTERN

As on 30.06.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2965200	37.56
Bodies Corporate	2189800	27.74
Sub Total	5155000	65.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5155000	65.29
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	98238	1.24
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	1986718	25.16
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	595576	7.54
Any Others (Specify)	59668	0.76
Clearing Members	15205	0.19
NRIs/OCBs	44463	0.56
Sub Total	2740200	34.71
Total Public shareholding (B)	2740200	34.71
Total (A)+(B)	7895200	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)	7895200	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Steel Ingots and G.P/G.C Sheets and Coils.

Products :

ITC Code No.	Product Description
72061010	Steel Ingots
72104900	Galvanized Plain / Galvanized Corrugated Sheets / Coils
72109090	Galvanized Colour Coated Coils / Sheets

Exports :

Products :

Galvanized Black Pipes, Steel Black Pipes and Colour Coated Products.

Countries :

African Countries

Imports :

Products :

Raw Material

Countries :

China
Korea
Japan

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Steel Ingots	MT	16500	8340
GP Coils	MT	45000	47222
CR Coils	MT	36000	32798
Colour Coated Coil / Sheet*	MT	41250	14640

Note: * Production has been generated out of raw material partly transferred from production of GP Coils.

GENERAL INFORMATION

Suppliers :

JSW Limited

Customers :

Wholesalers, Retailers and End Users

L G Electronics India Private Limited

No. of Employees :

500 (Approximately)

Bankers :

Punjab National Bank, Large Corporate Branch, Bhagwati Tower, R.K. Road, Ludhiana-141 003, Punjab, India
State Bank of India, Specialised Commercial Branch, Miller Ganj, Pahwa Hospital Complex, Ludhiana-141 003, Punjab, India
IDBI Bank Limited
Allahabad Bank

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loans from Banks (Rate of Interest)
IDBI Bank Limited (13.25%)	74.366	81.178
State Bank of India (13.15%)	327.666	271.503
Allahabad Bank (13.20%)	20.350	30.503
Vehicle Loans from Banks: (Rate of Interest)
ICICI Bank Limited (9.36%)	0.000	0.076
HDFC Bank Limited (9.75%)	0.000	0.112
ICICI Bank Limited (10.49%)	0.000	0.124
HDFC Bank Limited (10.00%)	0.000	0.111
HDFC Bank Limited (12.00%)	0.537	0.000
ICICI Bank Limited (11.25%)	0.229	0.000
ICICI Bank Limited (11.26%)	0.137	0.000
Short Term Borrowings
Working Capital Loans from Banks	742.301	605.250
Total	1165.586	988.857

Note :

LONG TERM BORROWINGS:

Term Loans from IDBI Bank Limited and SBI are secured on pari passu basis by way of equitable mortgage created by deposit of title deeds of immovable properties of GPGC Sheet unit and by way of hypothecation of all movable properties of the said unit including movable machinery, machinery spares, tools and accessories, present and future, subject to the prior charge(s) created and/or to be created by the company on Current Assets of the company for working capital facilities. These loans have been guaranteed by three directors of the company.

Term Loan from Allahabad Bank is secured by tangible Fixed Assets of the CR unit at Rajpura and also guaranteed by three directors of the company.

Terms of Repayment

In case of IDBI, installments are payable upto 2018-19.

In case of SBI, installments are payable upto 2019-20.

In case of AB, installments are payable upto 2015-16.

Vehicle Loans are secured by way of hypothecation of specific vehicle and personally guaranteed by one director

SHORT TERM BORROWINGS:

Working Capital borrowings from State Bank of India and IDBI Bank Limited are secured by hypothecation of entire present and future tangible current assets of the GPGC unit of the Company on pari passu basis and personally guaranteed by three of the directors. The said borrowings are also secured by way of second charge on block assets of the GPGC unit of the Company.
Working Capital borrowings from Punjab National Bank are secured by hypothecation of entire present and future current assets of the Steel unit of the Company and personally guaranteed by three of the directors. The said borrowings are also secured by way of first charge on block assets of the Steel unit of the Company.


Banking Relations :	--

Auditors :
Name :	Raj Gupta and Company Chartered Accountants
Address :	Miller Ganj, Ludhiana -141 003, Punjab, India

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

8000000	Equity Shares	Rs. 10/- each	Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

7895200	Equity Shares	Rs. 10/- each	Rs. 78.952 Millions
	Add: Shares forfeited (Amount Paid-up)		Rs. 0.524 Million
	Total		Rs. 79.476 Millions

The detail of shareholders holding more than 5% shares

Name of the Shareholder

No. of shares

% of Holding

Vallabh Steels Limited

666600

8.44%

Associated Leasing Limited

747400

9.47%

The reconciliation of number of shares outstanding is set out below:

Name of the Shareholder	No. of shares
Shares outstanding at the beginning of the year (Nos.)	7895200
Shares Issued during the year	-
Shares bought back during the year	-
Shares outstanding at the end of the year (Nos.)	7895200

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share

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	79.476	79.476	79.476
(b) Reserves & Surplus	676.929	653.787	587.897
(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)	756.405	733.263	667.373

(3) Non-Current Liabilities
(a) long-term borrowings	542.572	453.466	250.721
(b) Deferred tax liabilities (Net)	129.351	116.846	89.539
(c) Other long term liabilities	95.551	88.414	11.607
(d) long-term provisions	3.178	2.854	2.345
Total Non-current Liabilities (3)	770.652	661.580	354.212

(4) Current Liabilities
(a) Short term borrowings	742.301	605.250	506.054
(b) Trade payables	278.720	212.471	227.630
(c) Other current liabilities	155.111	167.760	112.353
(d) Short-term provisions	0.516	9.586	9.576
Total Current Liabilities (4)	1176.649	995.067	855.613

TOTAL	2703.706	2389.910	1877.198

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1110.240	1009.623	669.052
(ii) Intangible Assets	15.021	7.078	6.345
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	111.703	96.438	83.338
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	13.335	12.662	8.781
(e) Other Non-current assets	0.000	0.000	0.00
Total Non-Current Assets	1250.299	1125.801	767.516

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	445.870	376.398	411.731
(c) Trade receivables	618.126	517.458	522.701
(d) Cash and cash equivalents	26.444	23.885	18.944
(e) Short-term loans and advances	362.967	346.368	156.306
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1453.407	1264.109	1109.682

TOTAL	2703.706	2389.910	1877.198

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3829.121	3830.943	3367.943
		Other Income	1.647	0.800	0.840
		TOTAL	3830.768	3831.743	3368.783

Less	EXPENSES
		Cost of Materials Consumed	3300.999	3130.477	2814.591
		Changes in inventories of finished goods, Work-in-Progress and Stock-in-Trade	(103.701)	74.205	-34.465
		Employee Benefit Expense	55.670	48.185	52.814
		Other Expenses	330.484	299.839	268.867
		TOTAL	3583.452	3552.706	3101.807

Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		247.316	279.037	266.976

Less	FINANCIAL EXPENSES		116.183	99.551	66.740

	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		131.133	179.486	200.236

Less/ Add	DEPRECIATION/ AMORTISATION		67.154	56.716	43.283

	PROFIT/(LOSS) BEFORE TAX		63.979	122.770	156.953

	EXCEPTIONAL ITEMS		28.332	0.000	0.000

Less	TAX		12.504	47.705	48.109

	PROFIT/(LOSS) AFTER TAX		23.143	75.065	108.844

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		582.565	519.176	422.008

Less	APPROPRIATIONS
		Proposed Dividend	0.000	7.895	7.895
		Tax on dividend	0.000	1.281	1.281
		Transferred to General Reserve	2.500	2.500	2.500
	BALANCE CARRIED TO THE B/S		603.208	582.565	519.176

	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB basis	621.074	844.902	759.753
	TOTAL EARNINGS		621.074	844.902	759.753

	IMPORTS
		Raw Material, Spare parts and components	63.074	42.327	118.875
		Capital Goods	47.790	103.345	6.997
	TOTAL IMPORTS		110.864	145.672	125.872

	Earnings Per Share (Rs.)		2.93	9.51	13.79

QUARTERLY RESULTS

PARTICULARS	30.06.2013 (1^st Quarter)
Net Sales	1052.100
Total Expenditure	995.200
Profit before interest, depreciation and tax (Excluding Other Income)	57.000
Other income	0.000
Operating Profit	57.000
Interest	29.300
Exceptional Items	(6.400)
Profit before depreciation and tax	21.300
Depreciation	18.000
Profit Before Tax	3.300
Tax	0.500
Provisions and contingencies	0.000
Profit After Tax	2.800
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	2.800

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.60	1.96	3.23

Net Profit Margin (PBT/Sales)	(%)	1.67	3.20	4.66

Return on Total Assets (PBT/Total Assets}	(%)	4.36	9.62	14.03

Return on Investment (ROI) (PBT/Networth)		0.08	0.17	0.24

Debt Equity Ratio (Total Debt /Networth)		1.70	1.44	1.33

Current Ratio (Current Asset/Current Liability)		1.23	1.27	1.30

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	No
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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No
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	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
From Shareholders, Directors and their relatives	119.287	69.859
Total	119.287	69.859

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10396524	22/12/2012	55,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B65741308
2	10395565	15/12/2012	170,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, GOLDEN TOWER, DHOLEWAL, G.T. ROAD, LUDHIANA, Punjab - 141003, INDIA	B65345779
3	10326093	03/05/2012 *	70,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B38425781
4	10307831	24/06/2013 *	185,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B78264694
5	10274780	03/09/2011 *	70,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B21380209
6	10253361	15/11/2010	50,000,000.00	ALLAHABAD BANK	IIFB, CHEEMA CHOWK, 165, INDUSTRIAL AREA-A, LUDHIANA, Punjab - 141003, INDIA	A99735714
7	90044149	19/08/2005 *	66,500,000.00	PUNJAB NATIONAL BANK	INTERNATIONAL BANKING BRANCH, INDUSTRIAL AREA, LUDHIANA, Punjab - 141003, INDIA	-
8	90061861	23/07/2012 *	1,395,900,000.00	STATE BANK OF INDIA	SPECIALISED COMMERCIAL BRANCH, MILLER GANJ, PAHWA HOSPITAL COMPLEX, LUDHIANA, Punjab - 141003, INDI A	B55838254
9	90040509	19/08/2005 *	35,000,000.00	PUNJAB NATIONAL BANK	INTERNATIONAL BANKING BRANCH, INDUSTRIAL AREA, LUDHIANA, Punjab - 141001, INDIA	-
10	90056089	25/06/2012 *	821,500,000.00	PUNJAB NATIONAL BANK	INTERNATIONAL BANKING BRANCH, INDUSTRIAL AREA, LUDHIANA, Punjab - 141003, INDIA	B42069401

* Date of charge modification

OPERATIONS:

During the year, the Company recorded marginally lower gross revenue and operating income of Rs. 3830.767 Millions as compared to Rs. 3831.743 Millions in the previous year. Profit before interest, depreciation and tax is placed at Rs. 218.984 Millions as compared to Rs. 279.036 Millions of the previous year representing a fall of over 21 %. Profit after tax has fallen sharply from Rs. 75.065 Millions in previous year to Rs. 23.143 Millions. In the last financial year, the overall growth was flat and the margins were very low due to macro economic challenges of the economy particularly in the Iron and Steel Industry. Due to this low economic growth and stiff competition input costs increased and on the other hand, sales prices declined which has resulted in drastic fall in profitability of the Company. Further, the performance of the company needs to be viewed in the backdrop of the Indian economy having, for FY 2012-13, one of the lowest GDP growth rates for more than a decade. The management is seized of the matter and making all out efforts to improve the performance of the Company. It is exploring the possibility of adding certain new clients pertaining to white goods sector for which there product is a import substitute.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Outlook for 2013-14:

With the slowing growth of the Indian Economy, the outlook does not remain very positive. Further concerns remain on account of rising inflation coupled with tightening liquidity resulting in higher rate of interest on Bank borrowings. Economic activity is expected to take a step downward with GDP expected to grow at around 5-6% in the current financial year 2013-14 which does not augur well for the industry in general.

Company's Performance:

The Gross turnover of the Company during the year 2012-13 was Rs. 3830.767 Millions as against Rs. 3831.743 Millions in the previous year. The net profit after tax has declined sharply from Rs. 75.065 Millions to Rs. 23.143 Millions in the previous year.

TRADE REFRENCES:

JSW Limited
L G Electronics India Private Limited

FIXED ASSETS:

Land
Building
Furniture and Fixture
Plant and Machinery
Technical known-how

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. 62.24
UK Pound	1	Rs. 99.90
Euro	1	Rs. 84.23

INFORMATION DETAILS

Information Gathered by :	NAY

Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
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	5
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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

0.60

1.67

4.36

0.08

1.70

1.23

Unit