MIRA INFORM REPORT

Report Date :

16.08.2014

IDENTIFICATION DETAILS

Name :	OREX PHARMA PRIVATE LIMITED
Registered Office :	Pisal House, Nakhwa Compound, Stadium Road, Near CIDCO Bus Stand, Thane (West), Thane - 400601, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.06.1979
Com. Reg. No.:	11-021403
Capital Investment / Paid-up Capital :	Rs. 15.150 Millions
CIN No.: [Company Identification No.]	U99999MH1979PTC021403
TAN No.: [Tax Deduction & Collection Account No.]	MUMO03234A/AAACO0984E
PAN No.: [Permanent Account No.]	AAACO0984E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Active Pharmaceutical Ingredients (API), Drug Intermediates, Storage Chemicals, etc.
No. of Employees :	60 (Approximately)

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 72900
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile marked by thin profitability margins and low reserves of the company. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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.7

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Ms. Sandhya
Designation :	Accountant
Contact No.:	91-265-3925400
Date :	13.08.2014

LOCATIONS

Registered Office :	Pisal House, Nakhwa Compound, Stadium Road, Near CIDCO Bus Stand, Thane (West), Thane - 400601, Maharashtra, India
Tel. No.:	91-22-25333379/ 25365317 91-265-3925400/ 425
Fax No.:	91-22-25369542 91-265-3925421
E-Mail :	info@orexpharma.com orex@bom2.vsnl.net.in marketing@orexpharma.com
Website :	www.orexpharma.com www.orexbulkdrugs.com
Area :	3000 sq. ft.
Location :	Leased
Factory :	B-5, Phase- I, MIDC, Dombivli (East), District Thane – 421203, Maharashtra, India
Area :	15000 sq. ft.
Location :	Leased

DIRECTORS

As on 30.09.2013

Name :

Mr. Baburao Krishnaji Pisal

Designation :

Chairman cum Managing Director

Address :

3^rd Floor, Sharad Kunj, Dr. Moose Road, Thane (West), Thane - 400602, Maharashtra, India

Date of Birth/Age :

05.10.1948

Qualification :

Graduate

Date of Appointment :

20.06.1979

Voter ID No. :

MT/10/053/0432113

DIN No. :

00253097

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	U99999MH1979PTC021403	OREX PHARMA PRIVATE LIMITED	Managing director	20-06-1979	20-06-1979	Active	NO
2	U99999MH1938GAP002843	THE BOMBAY COMMODITY EXCHANGE LIMITED	Director	28-09-2012	29-12-2011	Active	NO

Name :

Mr. Mangesh Baburao Pisal

Designation :

Director

Address :

3^rd Floor, Sharad Kunj, Dr. Moose Road, Thane (West), Thane - 400602, Maharashtra, India

Date of Birth/Age :

21.09.1979

Qualification :

Graduate

Date of Appointment :

01.10.2004

DIN No. :

00253563

Name :

Kiran Baburao Pisal

Designation :

Director

Address :

3^rd Floor, Sharad Kunj, Dr. Moose Road, Thane (West), Thane - 400602, Maharashtra, India

Date of Birth/Age :

21.04.1977

Date of Appointment :

30.09.2011

DIN No. :

03377733

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	U99999MH1979PTC021403	OREX PHARMA PRIVATE LIMITED	Director	30-09-2011	01-10-2010	Active	NO
2	U24232MH2004PTC148628	BIONEXT PHARMA PRIVATE LIMITED	Director	15-12-2012	15-12-2012	Active	NO

KEY EXECUTIVES

Name :	Ms. Sandhya
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Equity Shareholders	No. of Shares
Baburao K. Pisal	610600
Baburao K. Pisal HUF	302500
Suman B. Pisal	31850
Kiran B. Pisal	20
Mangesh B. Pisal	10
Vikram B. Pisal	10
Akshada B. Pisal	10
S.K. Pisal	55000
Total	1000000

Names of Preference Shareholders	No. of Shares
Baburao K. Pisal	242500
Suman B. Pisal	272500
Total	515000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Active Pharmaceutical Ingredients (API), Drug Intermediates, Storage Chemicals, etc.
Exports :
Products :	Bulk Drugs
Countries :	· East Europe · America
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

No. of Employees :

60 (Approximately)

Bankers :

· Bombay Mercantile Co-Operative Bank Limited, Carnac Bunder Road Branch, P'demello Road, Mumbai - 400009, Maharashtra, India

· HDFC Bank Limited

· Barclays Bank Plc.

· ICICI Bank Limited

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
From Banks
Bombay Mercantile Co-op Bank Limited -Term Loan*	7.801	4.375
SHORT TERM BORROWINGS
From Banks
Bombay Mercantile Co-op Bank Limited, Mumbai
-Cash Credit	21.545	17.540
-Export Packing Credit	4.994	4.985
-Term Loan	0.000	2.704
-Bill Discounting Foreign	2.781	5.267
-Bill Discounting Local	4.802	4.632
Total	41.923	39.503

NOTE:

*Term Loan from Bombay Mercantile Co-op Bank Limited, Mumbai is secured by way of a charge/ Lien/Mortgage on movable and immovable properties of the company.

Banking Relations :	--
Auditors :
Name :	Sumaria and Sumaria Chartered Accountants
Address :	1, Mulund Vaibhav, Zaver Cross Road, Adjacent To Railway Station, Mulund (West), Mumbai – 400080, Maharashtra, India
Tel. No. :	91-22-25616029/ 655240872
E-Mail :	jsumaria@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAZFS7438M

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs.10.000 Millions
750000	10% Redeemable Preference Share	Rs.10/- each	Rs.7.500 Millions
	Total		Rs. 17.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions
515,000	10% Redeemable Preference Share	Rs.10/- each	Rs. 5.150 Millions
	Total		Rs. 15.150 Millions

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	15.150	15.150	15.150
(b) Reserves & Surplus	3.075	2.064	0.178
(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)	18.225	17.214	15.328
(3) Non-Current Liabilities
(a) long-term borrowings	29.391	23.833	21.640
(b) Deferred tax liabilities (Net)	2.438	2.389	2.205
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	31.829	26.222	23.845
(4) Current Liabilities
(a) Short term borrowings	36.998	37.388	20.659
(b) Trade payables	45.713	37.082	29.554
(c) Other current liabilities	11.750	9.837	12.580
(d) Short-term provisions	1.892	2.125	1.230
Total Current Liabilities (4)	96.353	86.432	64.023
TOTAL	146.407	129.868	103.196
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	45.344	41.858	32.856
(ii) Intangible Assets	0.000	0.000	0.000
(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	0.850	0.850	0.088
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.216	8.153	7.101
(e) Other Non-current assets	6.021	4.952	4.997
Total Non-Current Assets	62.431	55.813	45.042
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	38.056	33.852	21.782
(c) Trade receivables	43.981	38.963	34.600
(d) Cash and cash equivalents	1.091	0.458	0.529
(e) Short-term loans and advances	0.094	0.093	0.090
(f) Other current assets	0.754	0.689	1.153
Total Current Assets	83.976	74.055	58.154
TOTAL	146.407	129.868	103.196

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income from Operations	141.203	113.829	119.9
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		7.100	6.284	7.518
Less/ Add	DEPRECIATION/ AMORTISATION		5.716	4.214	3.418
	PROFIT/ (LOSS) BEFORE TAX		1.384	2.070	4.100
Less	TAX		0.374	0.184	0.239
	PROFIT/ (LOSS) AFTER TAX		1.010	1.886	3.861
	EARNINGS IN FOREIGN CURRENCY		42.563	28.910	29.499
	Earnings / (Loss) Per Share (Rs.)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	0.98	1.82	3.42
Return on Total Assets (PBT/Total Assets}	(%)	0.95	1.60	3.98
Return on Investment (ROI) (PBT/Networth)		0.08	0.12	0.27
Debt Equity Ratio (Total Debt/Networth)		3.64	3.56	2.76
Current Ratio (Current Asset/Current Liability)		0.87	0.86	0.91

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	15.150	15.150	15.150
Reserves & Surplus	0.178	2.064	3.075
Net worth	15.328	17.214	18.225
long-term borrowings	21.640	23.833	29.391
Short term borrowings	20.659	37.388	36.998
Total borrowings	42.299	61.221	66.389
Debt/Equity ratio	2.760	3.556	3.643

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	119.900	113.829	141.203
		-5.063	24.048

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	119.900	113.829	141.203
Profit	3.861	1.886	1.010
	3.22%	1.66%	0.72%

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10504349	14/06/2014	5,000,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LTD.	CARNAC BUNDER ROAD BRANCH, P'DEMELLO ROAD, MUMBAI,  MAHARASHTRA - 400009, INDIA	C07429855
2	10504343	14/06/2014	12,500,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	CARNAC BUNDER ROAD BRANCH, P'DEMELLO ROAD, MUMBAI,  MAHARASHTRA - 400009, INDIA	C07427370
3	10425858	05/04/2013	2,500,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	CARNAC BUNDER ROAD BRANCH, P'DEMELLO ROAD, MUMBAI, MAHARASHTRA - 400009, INDIA	B75182089
4	10339282	24/08/2011	7,500,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	CARNAC BUNDER ROAD BRANCH, P'DEMELLO ROAD, MUMBAI, MAHARASHTRA - 400009, INDIA	B24924102
5	10338689	09/08/2011	5,000,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	CARNAC BUNDER ROAD BRANCH, P'DEMELLO ROAD, MUMBAI, MAHARASHTRA - 400009, INDIA	B24926305
6	10025598	30/04/2013 *	56,976,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	CARNAC BUNDER ROAD BRANCH, P'DEMELLO ROAD, MUMBAI, MAHARASHTRA - 400009, INDIA	B75182634
7	10015609	21/07/2014 *	34,000,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	CARNAC BUNDER ROAD BRANCH, P'DEMELLO ROAD, MUMBAI, MAHARASHTRA - 400009, INDIA	C14061170
8	10016615	21/08/2006	11,500,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED.	CARNAC BUNDER ROAD BRANCH, P'DEMELLO ROAD, MUMBAI, MAHARASHTRA - 400009, INDIA	A03576691
9	10012063	16/07/2010 *	5,000,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	FOREIGN EXCHANGE BRANCH, NAVRATAN BUILDING, 09, P. DMELLO ROAD, CARNAC BUNDER, MUMBAI, MAHARASHTRA -  400009, INDIA	A91267641
10	90145494	05/11/2004	1,265,725.00	THE BOMBAY MERCANTILE CO-OPERATIVE BANK LTD.	FORIGN EXCHANGE DEPARTMENT, UTTAM HOUSE, MUMBAI,  MAHARASHTRA - 400009, INDIA	-
11	90143571	16/07/2010 *	10,000,000.00	BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	FOREIGN EXCHANGE BRANCH, NAVRATAN BUILDING,09, P. DMELLO ROAD, CARNAC BUNDER, MUMBAI, MAHARASHTRA -  400009, INDIA	A91267146
12	90141751	02/03/1993	500,000.00	THE BOMBAY MERCANTILE CO-OPERATIVE BANK LIMITED	MUMBAI, MUMBAI, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
From Directors and Shareholders	14.931	15.861
From Banks
- Barclays Bank Plc.	0.000	1.048
- HDFC Bank Limited	0.475	0.655
From Non-Banking Companies
- ICICI Bank Limited	4.752	0.000
- Volkswagon Finance Limited (Vehicle Loan)	1.432	1.894
SHORT TERM BORROWINGS
From Banks
-Barclays Bank Plc.	1.047	1.205
-HDFC Bank Limited	0.180	0.000
-Shot Term Borrowing	0.000	0.332
-Current Maturities of Long Term Loan	0.000	0.160
From Non-Banking Finance Companies
ICICI Bank Limited	1.187	0.148
Volkswagon Finance Limited	0.462	0.000
Current Maturities of Long Term Loan	0.000	0.415
Total	24.466	21.718

OPERATIONS

Financial Year 2012-13 has been eventful for the company with further momentum in operational efficiency and Plant Modernization.

During the year, Income from operation has increased marginally compare to Previous year from Rs. 113.800 Millions to Rs. 141.200 Millions, but net profit has reduced to Rs, 1.011 Millions from Previous year Rs. 1.886 Millions. During the current year the company is trying to revive the Business by keeping a stiff target of production and sales of Rs. 210.000 Millionst to Rs. 260.000 Millions.

The company has initiated to improve the manufacturing infrastructure and upgraded modern R & D facilities. The company has also initiated to improve the quality of the products and reducing the cost by operating full fledged QA and QC department by appointing a whole time PhD Doctor to look after its activities. The company is very keen to increase the product range during next year from its in house R & D. The company also exploring the possibilities for long term contact manufacturing business.

Lastly the company is very confident to get better result during the year 2013-14.

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

· Office Equipment

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.61.06
UK Pound	1	Rs.101.84
Euro	1	Rs.81.56

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	MRI

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	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	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
--	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.