MIRA INFORM REPORT

Report Date :

25.09.2013

IDENTIFICATION DETAILS

Name :	KAY PEE ENTERPRISES
Registered Office :	14 A, Lokenath Bose, Garden Lane, Kolkata-700046, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.03.2005
Capital Investment / Paid-up Capital :	Rs.7.532 Millions
Legal Form :	Sole Proprietary Concern
PAN No.: [Permanent Account No.]	ACZPB2714K
Line of Business :	Manufacturing and Trading Activity of Leather Sheet.
No. of Employees :	5 [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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established proprietary concern having a satisfactory track record. It is engaged in the manufacturing and trading activity of leather sheet. Trade relations are reported as fair. Business is active. Payment terms are usually correct. The concern can be considered 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	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.

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. Sourav Bhowmick
Designation :	Manager
Contact No.:	91-9830408441
Date :	21.09.2013

LOCATIONS

Registered Office :	14 A, Lokenath Bose, Garden Lane, Kolkata-700046, West Bengal, India
Tel. No.:	91-33-23283165/ 23292841
Mobile No.:	91-9830408441 [Mr. Sourav Bhowmick]
Fax No.:	Not Available
E-Mail :	souravbhowmick28@yahoo.com
Location :	Owned
Warehouse :	Kolkata Leather Complex, Karai Danga, South 24, PGNS.
Location :	Owned

SOLE PROPRIETOR

Name :	Mrs. Sharmila Bhowmick
Designation :	Proprietor
Date of Birth / Age :	15.02.1967

KEY EXECUTIVES

Name :	Mr. Sourav Bhowmick
Designation :	Manager

BUSINESS DETAILS

Line of Business :	Manufacturing and Trading Activity of Leather Sheet.
Terms :
Selling :	Credit [60 Days]
Purchasing :	Cash and Credit [20 Days]

GENERAL INFORMATION

Customers :

Others [Exporters]

No. of Employees :

5 [Approximately]

Bankers :

Bank of India, Rash Behari Ave Branch

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
From Bank of India	10.487	14.379
TOTAL	10.487	14.379

Banking Relations :	--
Auditors :
Name :	Roy Amit and Company Chartered Accountants
Address :	58, Doctor Lane, PS Taltal, Kolkata-700010, West Bengal, India
Mobile No.:	91-9830024715
Sister Concern :	Bhowmick Tennery Machone Manufacturing Company Private Limited Line of Business: Manufacturer and Trader of Raw Skin Processed into Finished Leather Sheet.

CAPITAL STRUCTURE

AS ON 31.03.2013

Capital Investment :
Owned :	Rs.7.532 Millions
Borrowed :	--
Total :	Rs.7.532 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2013	31.03.2012	31.03.2011
SHAREHOLDERS FUNDS
1] Proprietor Capital		7.532	5.596	5.081
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7.532	5.596	5.081
LOAN FUNDS
1] Secured Loans		10.487	14.379	9.530
2] Unsecured Loans		1.000	1.000	1.000
TOTAL BORROWING		11.487	15.379	10.530
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		19.019	20.975	15.611
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.012	0.013	0.014
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.232	15.988	15.581
	Sundry Debtors	11.381	8.050	4.088
	Cash & Bank Balances	0.022	0.049	0.059
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.081	0.695	0.250
Total Current Assets		29.716	24.782	19.978
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.109	3.792	4.325
	Other Current Liabilities	0.600	0.028	0.056
	Provisions	0.000	0.000	0.000
Total Current Liabilities		10.709	3.820	4.381
Net Current Assets		19.007	20.962	15.597
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		19.019	20.975	15.611

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	234.299	99.936	65.028
		Other Income	0.110	0.110	0.041
		TOTAL	234.409	100.046	65.069
Less	EXPENSES
		Cost of Goods Sold	197.626	81.492	53.580
		Carrying Expenses	1.065	0.730	0.000
		Tanning Charges	12.488	7.849	5.267
		Godown Rent	0.042	0.042	0.042
		Staff Salaries	4.542	1.231	0.628
		Staff Welfare Expenses	0.812	0.294	0.076
		Bonus	0.351	0.320	0.178
		Insurance	0.012	0.013	0.014
		Commission	1.125	1.295	1.098
		Printing and Stationery	0.112	0.104	0.088
		Travelling and Conveyance	2.199	0.889	0.610
		Carriage Outward	0.000	0.000	0.392
		Delivery Charges	3.531	0.511	0.000
		Postage and Telegram	0.033	0.031	0.029
		Prior Period Expenses	0.500	0.000	0.000
		Subscription and Donation	0.015	0.010	0.005
		Legal Charges	0.020	0.008	0.005
		General Charges	2.023	0.444	0.113
		Accounting Charges	0.108	0.080	0.048
		Entertainment Expenses	1.055	0.300	0.188
		Value Added Tax	0.000	0.000	0.105
		Rates and Taxes	0.008	0.003	0.000
		Car Hire Charges	0.432	0.489	0.422
		Bank Interest	2.157	1.563	0.870
		Bank Charges	0.168	0.142	0.111
		Repairs and Maintenance	0.970	0.970	0.193
		Professional Tax	0.000	0.000	0.003
		Telephone	0.398	0.199	0.181
		Audit Fees	0.020	0.020	0.008
		TOTAL	231.812	99.029	64.254
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		2.597	1.017	0.815
Less/ Add	DEPRECIATION/ AMORTISATION		0.001	0.001	0.002
	NET PROFIT / LOSS		2.596	1.016	0.813

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.11	1.02	1.25
Net Profit Margin (PBT/Sales)	(%)	1.11	1.02	1.25
Return on Total Assets (PBT/Total Assets}	(%)	8.73	4.10	4.07
Return on Investment (ROI) (PBT/Networth)		0.34	0.18	0.16
Debt Equity Ratio (Total Debt/Networth)		1.53	2.75	2.07
Current Ratio (Current Asset/Current Liability)		2.77	6.49	4.56

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	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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
From Relatives	1.000	1.000
TOTAL	1.000	1.000

------------------------------------------------------------------------------------------------------------------------------

BALANCE SHEET

SOURCES OF FUNDS		31.03.2014 [Estimated]	31.03.2015 [Projected]
SHAREHOLDERS FUNDS
1] Proprietor Capital		9.748	12.867
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		9.748	12.867
LOAN FUNDS
1] Secured Loans		15.000	15.000
2] Unsecured Loans		1.000	1.000
TOTAL BORROWING		16.000	16.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		25.748	28.867
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.011	0.010
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.781	21.834
	Sundry Debtors	9.374	10.268
	Cash & Bank Balances	0.020	0.024
	Other Current Assets	0.000	0.000
	Loans & Advances	0.518	0.609
Total Current Assets		29.693	32.735
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.921	3.789
	Other Current Liabilities	0.035	0.089
	Provisions	0.000	0.000
Total Current Liabilities		3.956	3.878
Net Current Assets		25.737	28.857
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		25.748	28.867

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014 [Estimated]	31.03.2015 [Projected]
	SALES
		Income	263.821	351.145
		Other Income	0.119	0.128
		TOTAL	263.940	351.273
Less	EXPENSES
		Cost of Goods Sold	222.765	299.378
		Carrying Expenses	1.202	1.456
		Tanning Charges	13.625	15.279
		Godown Rent	0.048	0.048
		Staff Salaries	4.812	6.159
		Staff Welfare Expenses	0.904	1.413
		Bonus	0.445	0.889
		Insurance	0.012	0.011
		Commission	1.212	1.825
		Printing and Stationery	0.130	0.192
		Travelling and Conveyance	2.255	2.988
		Carriage Outward	0.000	0.000
		Delivery Charges	3.677	5.067
		Postage and Telegram	0.039	0.042
		Prior Period Expenses	0.000	0.000
		Subscription and Donation	0.016	0.019
		Legal Charges	0.020	0.020
		General Charges	3.031	3.912
		Accounting Charges	0.144	0.180
		Entertainment Expenses	1.401	1.622
		Value Added Tax	0.000	0.000
		Rates and Taxes	0.015	0.020
		Car Hire Charges	0.612	0.635
		Bank Interest	2.860	2.920
		Bank Charges	0.189	0.200
		Repairs and Maintenance	1.043	2.403
		Professional Tax	0.000	0.000
		Telephone	0.446	0.455
		Audit Fees	0.020	0.020
		TOTAL	260.923	347.153
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		3.017	4.120
Less/ Add	DEPRECIATION/ AMORTISATION		0.001	0.001
	NET PROFIT / LOSS		3.016	4.119

KEY RATIOS

PARTICULARS		31.03.2014 [Estimated]	31.03.2015 [Projected]
PAT / Total Income	(%)	1.14	1.17
Net Profit Margin (PBT/Sales)	(%)	1.14	1.17
Return on Total Assets (PBT/Total Assets}	(%)	10.15	12.57
Return on Investment (ROI) (PBT/Networth)		0.31	0.32
Debt Equity Ratio (Total Debt/Networth)		1.64	1.24
Current Ratio (Current Asset/Current Liability)		7.51	8.44

------------------------------------------------------------------------------------------------------------------------------

ASSESSMENT OF WORKING CAPITAL REQUIREMENT

OPERATING STATEMENT

(RS. IN MILLIONS)

Particulars	31.03.2014	31.03.2015
	Estimated	Projected
Gross Sales
Domestic	263.821	351.146
Export	0.000	0.000
Total	263.821	351.146
Less: Excise Duty	0.000	0.000
Net Sales	263.821	351.146
% age rise (+) or Fall (-) in Net Sales as compared to previous year	12.60%	33.10%
COST OF SALES
Raw Material (Including Stored and Other items used in the process of Manufacture)
Imported	225.252	302.590
Indigenous	0.000	0.000
Others (Consumable)
Imported	0.000	0.000
Indigenous	0.000	0.000
Power and Fuel	0.000	0.000
Direct Labour (Factory Wages and Salary)	13.626	15.279
Other Manufacturing Expenses	0.000	0.000
Depreciation	0.001	0.001
Sub Total	238.879	317.870
Add: Opening Stock in Process	0.000	0.000
Sub Total	238.879	317.870
Deduct : Closing Stock in Process	0.000	0.000
Cost of Production
Add : Opening Stock of Finished Goods	15.497	16.783
Sub Total	254.376	334.653
Less: Closing Stock of Finished Goods	16.783	18.539
Sub Total (Total Cost of Sales)	237.593	316.114
Selling, General and Administrative Expenses	20.471	28.121
Sub total	258.064	344.235
Operating Profit before Interests	5.757	6.911
Interest	2.860	2.920
Operating Profit After Interests	2.897	3.991
Add: Other Non-Operating Income
Interest	0.119	0.128
Deduct Other Non-Operating Expenses	0.000	0.000
Net of Other Non-Operating Income/Expenses	0.119	0.128
Profit before Taxes	3.016	4.119
Less: Tax Provision	0.000	0.000
Net Profit After Tax	3.016	4.119
Retained Profit	3.016	4.119
Retained Profit/ Net profit (% age)	100.00	100.00

------------------------------------------------------------------------------------------------------------------------------

ANALYSIS OF BALANCE SHEET OF LIABILITIES AND ASSETS

(RS. IN MILLIONS)

Particulars	31.03.2014	31.03.2015
	Estimated	Projected
CURRENT LIABILITIES
Short – Term borrowings from banks [including bill purchased, discounted and excess borrowings placed on repayment basis]
From applicant Banks	15.000	15.000
From Other Banks	0.000	0.000
Of which BP and BD	0.000	0.000
Sub Total (A)	15.000	15.000
Short Term Borrowings from others
Sundry creditors [Trade]	3.956	3.878
Sundry creditors [Expenses]	0.000	0.000
Advance payments from customers/ deposits from dealers	0.000	0.000
Provision of taxes	0.000	0.000
Dividend Payable	0.000	0.000
Other Statutory Liabilities (Due within one year)	0.000	0.000
Deposits/ Installments of Term/ loans/DPGs/Debentures etc. (Due within one year)	0.000	0.000
Other current liabilities and provision (Due within one year)	0.000	0.000
Sub – Total (B)	3.956	3.878
Total Current Liabilities	18.956	18.878
TERM LIABILITIES
Debentures (Not Maturing within one year)	0.000	0.000
Preferences Shares (Redeemable after one year)	0.000	0.000
Prop. Term Loan excluding installments < 1 year	0.000	0.000
Term Loans (Excluding Installment)	0.000	0.000
Deferred Installment (Due within one year)	0.000	0.000
Term deposit (repayable one year)	0.000	0.000
Other Term Liabilities	1.000	1.000
Total Term Liabilities	1.000	1.000
Total of Outside Liabilities	19.956	19.878
Net Worth
Share Capital Account	9.748	12.867
General Reserve	0.000	0.000
Shares Premium Account	0.000	0.000
Plus (+) or deficit (-) in Profit and Loss Account others (Specify)	0.000	0.000
Differed Tax Liability	0.000	0.000
Net Worth	9.748	12.867
TOTAL LIABILITIES	29.704	32.745
ASSETS
CURRENT ASSETS
Cash and Bank Balance	0.020	0.024
Fixed deposit with bank	0.000	0.000
Receivable Other than Exports	9.374	10.268
Installment of deferred receivable (due within one year)	0.000	0.000
INVENTORY:
Raw materials (including stores and other item used in the process of manufacturing)
Imported	2.998	3.295
Indigenous	0.000	0.000
Stock – in – process	16.783	18.539
Finished Goods	0.000	0.000
Other Consumable Spares
Imported Consumables	0.000	0.000
Indigenous Consumables	0.000	0.000
Advance to Suppliers of Raw materials and stores and spares	0.518	0.609
Advances Payments Taxes	0.000	0.000
Other current assets (specify major items )	0.000	0.000
TOTAL CURRENT ASSETS	29.693	32.735
FIXED ASSETS
Gross Block	0.012	0.011
Depreciation to date	0.001	0.001
NET BLOCK	0.011	0.010
Investment/ books debts/ advances/ exposits which are not current assets	0.000	0.000
Investment in subsidiary company	0.000	0.000
Others Investment	0.000	0.000
Others Debtors (6 month)
Security Deposits	0.000	0.000
Others	0.000	0.000
TOTAL OTHER NON – CURRENT ASSETS	0.000	0.000
Intangible assets	0.000	0.000
TOTAL ASSETS	29.704	32.745
Tangible Net Worth	9.748	12.867
Net Working Capital	10.737	13.857
Current Ratio	1.57	1.73
Total Outside Liabilities/ Tangible Net Worth	2.05	1.54
Total Term Liabilities/ Tangible Net Worth	0.10	0.08

------------------------------------------------------------------------------------------------------------------------------

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(RS IN MILLIONS)

Particulars	31.03.2014	31.03.2015
	Estimated	Projected
FIRST METHOD OF LENDING
Total Current Assets	29.693	32.735
Other Current Liabilities (Other than bank borrowings)	3.956	3.878
Working Capital Gap (WCG)	25.737	28.857
Minimum stipulated net working capital i.e. 25% of WCG/ 25% of total current assets as the case may be depending upon the method of lending being applied (Export receivables to be excluded under both methods)	6.434	7.214
Actual / projected net working capital	10.737	13.857
Item 3 minus item 4	19.303	21.643
Item 3 minus item 5	15.000	15.000
Maximum permissible bank finance (Item 6 or 7 whichever is lower)	15.000	15.000
Excess Borrowing Representing Short falling NWC	--	--
SECOND METHOD OF LENDING
Total Current Assets	29.693	32.735
Other Current Liabilities (Other than bank borrowings)	3.956	3.878
Working Capital Gap (WCG)	25.737	28.857
Minimum stipulated net working capital i.e. 25% of WCG/ 25% of total current assets as the case may be depending upon the method of lending being applied (Export receivables to be excluded under both methods)	7.423	8.184
Actual / projected net working capital	10.737	13.857
Item 3 minus item 4	18.314	20.673
Item 3 minus item 5	15.000	15.000
Maximum permissible bank finance (Item 6 or 7 whichever is lower)	15.000	15.000
Excess Borrowing Representing Short falling NWC	--	--

------------------------------------------------------------------------------------------------------------------------------

FUNDS FLOW STATEMENT

(RS IN MILLIONS)

Particulars	31.03.2014	31.03.2015
	Estimated	Projected
SOURCES OF FUNDS
Net Profit (after deferred tax)	3.016	4.119
Depreciation	0.000	0.000
Increase in share capital/appln./premium	2.216	3.119
Increase in term liabilities (including public deposits)	0.000	0.000
Decrease in
Fixed assets and capital WIP	0.001	0.001
Other non-current assets	0.000	0.000
Inc./(dec.) in deferred tax liability / (asset)	0.000	0.000
Other	0.000	0.000
TOTAL	5.233	7.239
USES
Net loss	0.000	0.000
Decrease in term liabilities (including public deposits)	0.000	0.000
Increase in
Fixed assets and capital WIP	0.000	0.000
Other non-current assets	0.000	0.000
Dividend payments	3.016	4.119
Inc./(Dec.) in deferred tax assets/(liability)	0.000	0.000
Others	0.000	0.000
TOTAL	3.016	4.119
Variation in NWC
Long term surplus (+) / Deficit (-)	2.217	3.120
Increase/decrease in current assets * (as per details given below)	(0.023)	3.042
Increase/decrease in current liabilities other than bank borrowings	(6.753)	(0.078)
Increase/decrease in working capital gap	6.730	3.120
Net surplus/ deficit	(4.513)	0.000
Increase/decrease in bank borrowings	4.513	0.000
Increase/decrease in net sales	29.522	87.325

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 records 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.62.65
UK Pound	1	Rs.100.46
Euro	1	Rs.84.60

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--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.