SMIRA INFORM REPORT

Report Date :

24.09.2013

IDENTIFICATION DETAILS

Name :	DIVINE ALLOYS AND POWER CO LIMITED
Registered Office :	Block A, 139, Refent Estate, 176/14/139 Raipur Road Kolkata – 700092, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	06.09.2004
Com. Reg. No.:	21-099681
Capital Investment / Paid-up Capital :	Rs. 220.230 Millions
CIN No.: [Company Identification No.]	U27102WB2004PLC099681
PAN No.: [Permanent Account No.]	AACCD1367Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Mild Steel Ingot and Pig Iron.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 5047000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company is exposed to the cyclical nature and ongoing weakness in the steel industry that is likely to adversely impact the profitability and cash flow. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

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

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

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term rating = C
Rating Explanation	Have very high risk of default regarding timely servicing of financial obligations.
Date	August 23, 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 DENIED BY

MANAGEMENT NON - COOPERATIVE (91-651-2331850)

LOCATIONS

Registered Office :	Block A, 139, Refent Estate, 176/14/139 Raipur Road Kolkata – 700092, West Bengal, India
Tel. No.:	91-651-2331850
Fax No.:	91-651-2330798
E-Mail :	dapcl@hotmail.com divinegroup.ranchi@gmail.com
Website :	www.divinegroup.org.in
Head Office :	Divine House, Club Road, Ranchi – 834 001, Jharkhand India
Factory :	Raidih – Palgam, Kaushalgarh, Chowka Kandra Road, PS: Chowka, District Saraikela- 832401, Jharkhand, India

DIRECTORS

As on: 29.09.2012

Name :

Mr. Akhilesh Pandey

Designation :

Director

Address :

Tajmahal, Club Road, Ranchi – 834001, Jharkhand, India

Date of Birth/Age :

10.02.1972

Date of Appointment :

06.09.2004

DIN No. :

00616750

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
2	U45200JH2004PTC010914	TRIVENI INFRATECH PRIVATE LIMITED	Director	24/08/2004	24/08/2004	-	Active	NO
3	U27102WB2004PLC099681	DIVINE ALLOYS & POWER CO LIMITED	Director	06/09/2004	06/09/2004	-	Active	NO
4	U72200WB1996PTC081511	HUNGERFORD APARTMENTS PRIVATE LIMITED	Director	22/08/2005	22/08/2005	02/04/2013	Under Process of Striking off	NO
5	U70102WB1996PTC080304	HUNGERFORD CONSTRUCTIONS PVT.LTD.	Director	25/01/2012	15/05/2007	-	Active	NO
6	U40102WB2007PLC118068	DIVINE VIDYUT LIMITED	Director	29/12/2012	24/08/2007	-	Active	NO
7	U74140WB1994PTC062751	EMPIRE ADVISORY SERVICES PVT LTD	Director	22/12/2007	22/12/2007	02/04/2013	Active	NO
8	U70101DL2009PTC196540	YAMA STRUCTURES & CONSTRUCTIONS PRAIVATE LIMITED	Director	05/01/2010	05/01/2010	-	Active	NO
9	U70101WB2005PTC105020	RAJGHARANA PROPERTIES PRIVATE LIMITED	Director	01/04/2010	01/04/2010	-	Active	NO
10	U27310WB2008PTC123430	TRIVENI METAL AND POWER PRIVATE LIMITED	Director	02/04/2010	02/04/2010	-	Active	NO
11	U51109WB2005PTC104989	RANISATI VINIMAY PRIVATE LIMITED	Director	02/04/2010	02/04/2010	-	Active	NO
12	U51909WB1993PTC059255	SUNFLOWER BARTER PVT.LTD.	Director	15/04/2010	15/04/2010	-	Active	NO
13	U40106WB2010PLC153010	COSMIC URJA LIMITED	Director	15/09/2010	15/09/2010	-	Active	NO
14	U40102WB2011PLC161540	BT DIVINE POWER AND MINING CORPORATION LIMITED	Director	06/04/2011	06/04/2011	-	Active	NO
15	U74999WB2011PLC170773	DIVINE POWER & MINING CORPORATION LIMITED	Director	16/12/2011	16/12/2011	-	Active	NO
16	U24233MH2012PLC227492	DIVINE BIOTECH LIMITED	Director	29/02/2012	29/02/2012	-	Active	NO
17	U27100WB2005PTC103920	RAJKESHARI ISPAT AND ENERGY PRIVATE LIMITED	Director	08/10/2012	08/10/2012	-	Active	NO
18	U45209MH2012PTC238811	JUPITER CITY DEVELOPERS (INDIA) PRIVATE LIMITED	Director	14/12/2012	14/12/2012	-	Active	NO

Name :

Mr. Rajesh Pandey

Designation :

Director

Address :

Tajmahal, Club Road, Ranchi – 834001, Jharkhand, India

Date of Birth/Age :

31.05.1973

Date of Appointment :

14.12.2004

DIN No. :

00605105

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
2	U27102WB2004PLC099681	DIVINE ALLOYS & POWER CO LIMITED	Director	14/12/2004	14/12/2004	-	Active	NO
3	U70102WB1996PTC080304	HUNGERFORD CONSTRUCTIONS PVT.LTD.	Director	12/02/2010	15/05/2007	-	Active	NO
4	U40102WB2007PLC118068	DIVINE VIDYUT LIMITED	Director	29/12/2012	24/08/2007	-	Active	NO
5	U74140WB1994PTC062751	EMPIRE ADVISORY SERVICES PVT LTD	Director	22/12/2007	22/12/2007	02/04/2013	Active	NO
6	U70101WB2005PTC105020	RAJGHARANA PROPERTIES PRIVATE LIMITED	Director	01/04/2010	01/04/2010	-	Active	NO
7	U27310WB2008PTC123430	TRIVENI METAL AND POWER PRIVATE LIMITED	Director	02/04/2010	02/04/2010	-	Active	NO
8	U51109WB2005PTC104989	RANISATI VINIMAY PRIVATE LIMITED	Director	02/04/2010	02/04/2010	-	Active	NO
9	U51909WB1993PTC059255	SUNFLOWER BARTER PVT.LTD.	Director	15/04/2010	15/04/2010	-	Active	NO
10	U40106WB2010PLC153010	COSMIC URJA LIMITED	Director	15/09/2010	15/09/2010	-	Active	NO
11	U14200JH2011PTC014696	DIVINE NATURAL RESOURCES PRIVATE LIMITED	Director	17/02/2011	17/02/2011	-	Active	NO
12	U24233MH2012PLC227492	DIVINE BIOTECH LIMITED	Director	29/02/2012	29/02/2012	-	Active	NO
13	U27100WB2005PTC103920	RAJKESHARI ISPAT AND ENERGY PRIVATE LIMITED	Director	08/10/2012	08/10/2012	-	Active	NO
14	U72200WB1996PTC081511	HUNGERFORD APARTMENTS PRIVATE LIMITED	Director	23/03/2013	23/03/2013	02/04/2013	Under Process of Striking off	NO

Name :

Mr. Kalyan Kumar Mukharjee

Designation :

Additional Director

Address :

D-10, Shyamali Colony Mecon

Date of Birth/Age :

04.06.1951

Date of Appointment :

01.10.2011

DIN No. :

03631622

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	U27102WB2004PLC099681	DIVINE ALLOYS & POWER CO LIMITED	Additional director	01/10/2011	01/10/2011	-	Active	NO
2	U40102WB2007PLC118068	DIVINE VIDYUT LIMITED	Additional director	03/10/2011	03/10/2011	04/10/2012	Active	NO
3	U40106WB2010PLC153010	COSMIC URJA LIMITED	Additional director	04/10/2011	04/10/2011	-	Active	NO
4	U74140WB2008PLC130221	S K GLOBAL SERVICES LIMITED	Director	27/02/2012	27/02/2012	-	Active	NO
5	U66000WB2009PLC139864	S K INSURANCE BROKING LIMITED	Director	27/02/2012	27/02/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

SHAREHOLDERS DETAILS FILE ATTACHED

As on: 29.09.2012

Name of Allottes	No. Shares
Rajagharana Properties Private Limited, India	185791
Total	185791

As on: 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	90.20
Directors or relatives of Directors	9.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Mild Steel Ingot and Pig Iron.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Ø Bank of India, Ranchi MID Corporation Branch, Shajanand Chowk, Birsa Raj Marg, Harmu, Ranchi – 834012, Jharkhand, India

Ø Punjab National Bank, Mahavir Chowk, Upper Bazar, Ranchi – 834001, Jharkhand, India

Ø Oriental Bank of Commerce

Ø United Bank of India

Ø Canara Bank

Ø Corporation Bank

Facilities :

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Rupees term loan from bank	1901.781	813.999
Short Term Borrowing
Working capital loans from bank	112.426	104.869
Total	2014.207	918.868

Banking Relations :	--
Auditors :
Name :	Vijay Jha and Company Chartered Accountants
Address :	CD-7, Sector 3, Dhurva, Rachi – 834004, Jharkhand, India
PAN No. :	AFPPJ2460K

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.100/- each	Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2963240	Equity Shares	Rs.100/- each	Rs.296.324 Millions

As on: 31.03.2012

Authorised Capital : Rs.350.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 220.230 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	220.230	201.120
(b) Reserves & Surplus	852.317	637.173
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	189.346	222.157
Total Shareholders’ Funds (1) + (2)	1261.893	1060.450
(3) Non-Current Liabilities
(a) long-term borrowings	1901.781	813.999
(b) Deferred tax liabilities (Net)	6.845	6.063
(c) Other long term liabilities	514.555	3.852
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	2423.181	823.914
(4) Current Liabilities
(a) Short term borrowings	112.426	104.869
(b) Trade payables	234.594	84.470
(c) Other current liabilities	137.762	33.630
(d) Short-term provisions	33.168	18.938
Total Current Liabilities (4)	517.950	241.907
TOTAL	4203.024	2126.271
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	197.292	210.980
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	3067.876	1323.585
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	142.000	130.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	7.014	7.013
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	3414.182	1671.578
(2) Current assets
(a) Current investments	0.983	0.983
(b) Inventories	255.056	172.881
(c) Trade receivables	310.344	210.527
(d) Cash and cash equivalents	75.886	17.532
(e) Short-term loans and advances	33.700	31.293
(f) Other current assets	112.873	21.477
Total Current Assets	788.842	454.693
TOTAL	4203.024	2126.271

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		99.999
2] Share Application Money		269.116
3] Reserves & Surplus		342.287
4] (Accumulated Losses)		0.000
NETWORTH		711.402
LOAN FUNDS
1] Secured Loans		214.460
2] Unsecured Loans		7.495
TOTAL BORROWING		221.955
DEFERRED TAX LIABILITIES		5.563
TOTAL		938.920
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		230.157
Capital work-in-progress		230.201
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	117.936
	Sundry Debtors	107.279
	Cash & Bank Balances	30.249
	Other Current Assets	0.000
	Loans & Advances	331.985
Total Current Assets		587.449
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	50.730
	Other Current Liabilities	24.505
	Provisions	35.692
Total Current Liabilities		110.927
Net Current Assets		476.522
MISCELLANEOUS EXPENSES		2.040
TOTAL		938.920

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2206.386	2052.936	1387.614
		Other Income	0.540	0.161	0.005
		TOTAL	2206.926	2053.097	1387.619
Less	EXPENSES
		Cost of materials consumed	1873.478	1887.626
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	4.013	(54.745)
		Employee benefit expense	8.670	9.725
		Other expenses	199.589	123.142
		TOTAL	2085.750	1965.748	1307.641
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		121.176	87.349	79.978
Less	FINANCIAL EXPENSES		31.148	30.862	34.836
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		90.028	56.487	45.142
Less/ Add	DEPRECIATION/ AMORTISATION		26.141	0.000	19.582
	PROFIT BEFORE TAX		63.887	56.487	25.560
Less	TAX		20.728	19.408	7.999
	PROFIT AFTER TAX		43.159	37.079	17.561
	Earnings Per Share (Rs.)		20.81	26.08

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.95	1.81	1.26
Net Profit Margin (PBT/Sales)	(%)	2.89	2.75	1.84
Return on Total Assets (PBT/Total Assets}	(%)	6.43	8.40	3.13
Return on Investment (ROI) (PBT/Networth)		0.05	0.05	0.03
Debt Equity Ratio (Total Debt /Networth)		1.60	0.87	0.31
Current Ratio (Current Asset/Current Liability)		1.52	1.88	5.29

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	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	Yes

NOTE:

The registered address of the company has been shifted from Block A, 139, Regent Estate, Kolkata – 700032, West Bengal, India to the present address w.e.f. 15.02.2011

INDEX CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10422420	30/03/2013	103,100,000.00	PUNJAB NATIONAL BANK	PUNJAB NATIONAL BANK , MAHAVIR CHOWK, UPPER BAZAR , RANCHI, Jharkhand - 834001, INDIA	B73932683
2	10426079	26/03/2013	65,100,000.00	BANK OF INDIA	KOLKATA LARGE CORPORATE BRANCH,, 5, B.T.M. SARANI ,, KOLKATA, West Bengal - 700001, INDIA	B75248286
3	10427126	26/03/2013	698,800,000.00	BANK OF INDIA	RANCHI MID CORPORATE BRANCH, SHAJANAND CHOWK,, BI RSA RAJ MARG, HARMU, RANCHI, Jharkhand - 834012, I NDIA	B75618785
4	10236418	23/08/2010	1,909,200,000.00	PUNJAB NATIONAL BANK	MAHABIR CHOWK, RANCHI, Jharkhand - 834001, INDIA	A93402972
5	10029259	28/09/2012 *	657,498,000.00	Punjab National Bank Oriental Bank of Commerce United Bank of India Canara Bank Corporation Bank	PUNJAB NATIONAL BANK Mahavir Chowk, Upper Bazar, Ranchi, Ranchi, Jharkhand - 834001, INDIA	B60159589

* Date of charge modification

PROJECTS AND EXPANSION PLANS:

The company is presently implementing the expansion (forward and backward integration) of the existing steel manufacturing unit by setting up Coal Washery, Coke oven plant, Sponge iron plant, Mini Blast furnace, Pig casting machine, sinter plant, BOF converter, Induction furnace, Billet casting machine, Rolling Mill and a captive power plant. Implementation of all the integrated units is in final stage of completion. Some of units have also completed its trial and commissioning and ready to operate. The commercial operation will start very shortly after integration of all the units.

GROUP AND ASSOCIATE CONCERNS

Divine Vidyut Limited

Divine Vidyut Limited has started its power generation from its Unit- I of 1 x 20 MW captive power plant (CPP) to meet the power requirements of the company. The Unit-II CPP of 25 MW capacity is presently under implementation and expected commercial operation will be during April, 2013.

Cosmic Urja Limited

Cosmic Urja Limited was incorporated during the year for setting up an 80 MW Integrated Coal based thermal power plant in Jharkhand to cater to the growing need of power in the state. The company has obtained coal linkage, water approval and LoI for PPA from thse JSEB. The implementation of the project will start during October, 2012.

FIXED ASSETS:

Ø Land

Ø Building

Ø Factory Building

Ø Plant Machinery

Ø Office Equipments

Ø Computer Equipments

Ø Furniture Fixtures

Ø Vehicles

Ø Motor Vehicles

Ø Computer Software

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.62.52
UK Pound	1	Rs.100.26
Euro	1	Rs.84.67

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		27

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

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.