MIRA INFORM REPORT

Report Date :

18.08.2014

IDENTIFICATION DETAILS

Name :	PROEC ENERGY LIMITED (w.e.f 05.01.1993)
Formerly Known As :	NIPPON VINK CHEMICAL INDUSTRIES INDIA LIMITED
Registered Office :	First Floor A-11, FIEE, Okhla Industrial Area, Phase II, New Delhi – 110020, Delhi
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.01.1993
Com. Reg. No.:	55-051578
Capital Investment / Paid-up Capital :	Rs. 1.900 Million
CIN No.: [Company Identification No.]	U74899DL1993PLC051578
TAN No.: [Tax Deduction & Collection Account No.]	DELN02646A
PAN No.: [Permanent Account No.]	AAACN0312K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Drilling fluids and Speciality Chemicals.
No. of Employees :	Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 280000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Rating reflect sound financial risk profile marked by decent liquidity position and improvement in performance of the company. Trade relations are reported to be fair. Business is active. Payment are reported to be usually correct. The company can be considered for business dealing 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 – 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 DENIED BY

Management Non Cooperative (91-11-41672759)

LOCATIONS

Registered Office / Corporate :	First Floor A-11, FIEE, Okhla Industrial Area, Phase II, New Delhi – 110020, Delhi, India
Tel. No.:	91-11-41672759 / 41672760 / 41672761
Fax No.:	Not Available
E-Mail :	info@proecenergy.com finance@proecenergy.com
Website :	http://www.proecenergy.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Manav Modi

Designation :

Managing Director

Address :

15, Friends Colony [West], New Delhi – 110065, India

Date of Birth/Age :

23.05.1980

Date of Appointment :

01.10.2013

DIN No.:

01983833

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	U74899DL1993PLC051578	PROEC ENERGY LIMITED	Managing director	01/10/2013	26/04/2005	-	Active	NO
2	U74999DL2004PTC128973	MATINA ENTERPRISES PRIVATE LIMITED	Director	01/03/2013	01/03/2013	-	Active	NO

Name :

Mr. Sanjay Gupta

Designation :

Director

Address :

H. No.118 C, Sector 30, Gurgaon – 122001, Haryana, India

Date of Birth/Age :

05.07.1967

Date of Appointment :

26.04.2005

DIN No.:

00511367

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	U74899DL1993PLC051578	PROEC ENERGY LIMITED	Director	26/04/2005	26/04/2005	-	Active	NO
2	U15511DL1988PLC030921	VINTAGE DISTILLERS LIMITED	Director	04/06/2005	04/06/2005	16/07/2007	Active	NO
3	U15320WB1974PLC029655	LORDS DISTILLERY LIMITED	Whole-time director	01/11/2007	01/09/2007	16/07/2012	Active	NO
4	U74899DL1995PLC064165	MACL SECURITIES AND FINANCE LIMITED	Director	30/09/2009	10/01/2009	-	Active	NO

Name :

Mr. Gopala Rajakumar

Designation :

Director

Address :

H-15, Sarita Vihar, New Delhi – 110076, India

Date of Birth/Age :

20.05.1955

Date of Appointment :

21.07.2009

DIN No.:

00353620

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	U74899DL1989PTC035015	JEWEL ELECTRO IMPEX PRIVATE LIMITED	Director	10/02/1989	10/02/1989	-	Active	NO
2	U15122DL1994PTC057005	EDEN BEVERAGES AND SPIRITS PRIVATE LIMITED	Director	25/03/1994	25/03/1994	-	Active	NO
3	U15511DL1988PLC030921	VINTAGE DISTILLERS LIMITED	Director	05/01/1995	05/01/1995	16/07/2007	Active	NO
4	U74899DL1995PTC064723	SPECTRA HOLDINGS PRIVATE LIMITED	Director	24/01/1995	24/01/1995	-	Active	NO
5	U51312UP1990PTC011941	FORTHRIGHT BUILDERS PRIVATE LIMITED	Director	01/10/1995	01/10/1995	-	Active	NO
6	L15511DL1985PLC021272	SUNRISE DISTILLERIES LIMITED	Director	25/06/1997	25/06/1997	-	Active	NO
7	U65993DL1988PLC030825	SHUBH CREDITS LIMITED	Director	24/06/1998	24/06/1998	-	Active	NO
8	U27140DL1999PTC102730	HIGHRISE DISTILLERIES PRIVATE LIMITED	Director	08/12/1999	08/12/1999	28/02/2008	Active	NO
9	U74899DL1995PLC064165	MACL SECURITIES AND FINANCE LIMITED	Director	15/05/2001	15/05/2001	27/03/2007	Active	NO
10	U15320WB1974PLC029655	LORDS DISTILLERY LIMITED	Director	11/12/2002	11/12/2002	10/12/2009	Active	NO
11	U74899DL1973PTC006523	PHOTONICS PRIVATE LIMITED	Director	11/03/2003	11/03/2003	-	Active	NO
12	U67120DL1993PTC054053	MIDWAY SECURITIES PRIVATE LIMITED	Director	16/08/2006	16/08/2006	-	Active	NO
13	U45200DL1988PTC031656	D K DISTILLERS PRIVATE LIMITED	Director	24/08/2006	24/08/2006	30/05/2007	Active	YES
14	L52110DL1984PLC019625	DELTA INDUSTRIAL RESOURCES LIMITED	Director	07/03/2007	07/03/2007	07/03/2014	Active	NO
15	L65920DL1984PLC019583	SURYA INDUSTRIAL RESOURCES LIMITED	Director	07/03/2007	07/03/2007	20/02/2010	Amalgamated	NO
16	U74899DL1988PLC030362	UTILITY HOLDINGS LIMITED	Director	07/03/2007	07/03/2007	-	Active	NO
17	U74899DL1986PLC025227	TRANSNATIONAL TRAVELS LIMITED	Director	10/09/2007	10/09/2007	-	Active	NO
18	U74899DL1987PTC027720	SKYRISE CONSTRUCTIONS COMPANY PRIVATE LIMITED	Director	19/05/2008	19/05/2008	-	Active	NO
19	U74999DL2004PTC128973	MATINA ENTERPRISES PRIVATE LIMITED	Director	01/06/2009	01/06/2009	02/03/2013	Active	NO
20	U74899DL1993PLC051578	PROEC ENERGY LIMITED	Director	21/07/2009	21/07/2009	-	Active	NO

KEY EXECUTIVES

Name :	D. S. Associates
Designation :	Company Secretaries
Address :	A-233, Ground Floor, Bunkar Colony, Ashok Vihar IV, Delhi – 110052, India
Tel No.:	91-11-27307634 / 43085635
Mobile No :	91-9212735635
Fax No.:	91-11-27307634
E-mail :	dhawalkant@gmail.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Mr. Manav Modi	97050
Ms. Nidhi Modi	2000
Mr. C. L. Saini	10
Mr. G.R. Rajkumar	10
Matina Enterprises Private Limited	88000
Miss. Navya Modi	3000
Mr. Sanjay Gupta	10
Total	190080

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	46.30
Directors or relatives of Directors	53.70
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Drilling fluids and Speciality Chemicals.
Products :	· Drilling Additives · Cementing Additives · Commodity Chemicals

GENERAL INFORMATION

No. of Employees :

Not Available [We tried to confirm the number of employees but no one is ready to part any information from the company management]

Bankers :

· Bank of India, Paliament Street Branch, 4 PTI Building, Parliament Street Branch, New Delhi – 110001, Delhi, India

· Export – Import Bank of India

· Centre one, Floor 21, World Trade Centre, Cufee Parade, Mumbai – 400005, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
From Bank of India-Term loan Against Plant and Machinery	0.000	9.371
From Export import Bank of India Against books Debts, Stock, Fixed Assets of the company and personal guarantee of director	61.542	28.996
From L and T Finance Limited Against Generator	0.000	2.081
HDFC Bank Limited Against Car	1.609	0.000
From ICICI Bank Against Car	0.580	0.785
Less : Shown in current maturities of long term debt	(3.536)	(3.364)
SHORT TERM BORROWING
From Bank of India-Export Packing Credit	30.937	9.994
Total	91.132	47.863

Banking Relations :	---
Auditors :
Name :	R. Gopal Associates Chartered Accountant
Address :	G-1, Ground Floor, South Extension – II, New Delhi - 49
Tel. No.:	91-11-41649623 / 4164 9624 / 4164 9626
Fax No.:	91-11-41649625
E-Mail :	sunilrgo@gmail.com
PAN No.:	AABFR4836L
Related Parties :	· Matina Enterprises Private Limited · MACL Securities and Finance Limited · Transnational Securities and finlease Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
190080	Equity Shares	Rs.10/- each	Rs. 1.900 Million

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	1.900	1.900	1.880
(b) Reserves & Surplus	68.106	31.581	21.829
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.312
Total Shareholders’ Funds (1) + (2)	70.006	33.481	24.021
(3) Non-Current Liabilities
(a) long-term borrowings	84.796	61.373	26.819
(b) Deferred tax liabilities (Net)	1.398	0.466	0.434
(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)	86.194	61.839	27.253
(4) Current Liabilities
(a) Short term borrowings	30.937	9.995	10.000
(b) Trade payables	92.779	53.123	16.576
(c) Other current liabilities	5.439	4.560	7.205
(d) Short-term provisions	20.704	5.301	3.543
Total Current Liabilities (4)	149.859	72.979	37.324
TOTAL	306.059	168.299	88.598
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	106.917	60.794	37.563
(ii) Intangible Assets	0.061	0.045	0.000
(iii) Capital work-in-progress	20.717	6.574	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.309	1.243	1.219
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	129.004	68.656	38.782
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	46.610	25.207	11.162
(c) Trade receivables	83.220	42.697	22.663
(d) Cash and cash equivalents	21.407	18.601	7.815
(e) Short-term loans and advances	25.818	13.138	1.469
(f) Other current assets	0.000	0.000	6.707
Total Current Assets	177.055	99.643	49.816
TOTAL	306.059	168.299	88.598

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	507.505	233.230	117.527
		Other Income	0.658	0.437	1.242
		TOTAL (A)	508.163	233.667	118.769
Less	EXPENSES
		Cost of Materials Consumed	248.351	111.606	44.279
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(10.502)	(5.840)	(1.733)
		Employees benefits expense	16.261	8.936	6.843
		Other expenses	182.250	94.438	54.969
		Extraordinary Item	0.000	0.187	0.000
		TOTAL (B)	436.360	209.327	104.358
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		71.803	24.340	14.411
Less	FINANCIAL EXPENSES (D)		6.350	4.244	0.840
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		65.453	20.096	13.571
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.941	5.233	3.042
	PROFIT BEFORE TAX (E-F) (G)		56.512	14.863	10.529
Less	TAX (H)		19.098	4.963	3.363
	PROFIT AFTER TAX (G-H) (I)		37.414	9.900	7.166
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	432.104	188.364	116.774
	TOTAL EARNINGS		432.104	188.364	116.774
	IMPORTS
		Raw Materials	37.569	15.002	0.000
		Capital Goods	0.968	0.000	0.811
		Components and Spare parts	0.000	0.000	1.683
	TOTAL IMPORTS		38.537	15.002	2.494
	Earnings Per Share (Rs.)		196.83	52.37	38.12

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	7.36	4.24	6.03
Net Profit Margin (PBT/Sales)	(%)	11.14	6.37	8.96
Return on Total Assets (PBT/Total Assets}	(%)	18.46	8.83	11.88
Return on Investment (ROI) (PBT/Networth)		0.81	0.44	0.44
Debt Equity Ratio (Total Debt /Networth)		1.65	2.13	1.53
Current Ratio (Current Asset/Current Liability)		1.18	1.37	1.33

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	1.880	1.900	1.900
Reserves & Surplus	21.829	31.581	68.106
Share Application money pending allotment	0.312	0.000	0.000
Net worth	24.021	33.481	70.006
long-term borrowings	26.819	61.373	84.796
Short term borrowings	10.000	9.995	30.937
Total borrowings	36.819	71.368	115.733
Debt/Equity ratio	1.533	2.132	1.653

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	117.527	233.230	507.505
		98.448	117.599

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	117.527	233.230	507.505
Profit	7.166	9.900	37.414
	6.10%	4.24%	7.37%

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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWING
From Related Parties
MACL Securities and Finance Limited	1.589	1.433
Transnational Securities and Finlease Limited	1.299	1.172
Manav Modi	21.500	20.600
Matina Enterprises Private Limited	0.212	0.299
Total	24.600	23.504

NOTE:

The Registered Office of the company has been shifted from 18 Community Centre, New Friends Colony, New Delhi – 110025, Delhi, India to the present address w.e.f. 23.07.2013

OPERATIONS AND PERFORMANCE OF THE COMPANY

The sales of the company increased to Rs.507.505 Millions as compared to previous figure of Rs.233.230 Millions. Then company’s prospects are very good in the coming years. The company hopes to perform still better in the coming years.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10344108	22/03/2012 *	60,000,000.00	EXPORT-IMPORT BANK OF INDIA	CENTRE ONE, FLOOR 21, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	B35829811
2	10246898	19/04/2014 *	80,000,000.00	Bank of India	Parliament Street Branch, 4 PTI Building, Parliament Street Branch, New Delhi, Delhi - 110001, INDIA	C06616478

* Date of charge modification

FIXED ASSETS

· Factory Land

Factory Building

Plant and Machinery

Office Equipment

Lab equipments

Car

Generator

Motor Cycle / Scooter

Furniture and Fixture

Computers

Electric and Installation

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.61.28
UK Pound	1	Rs.103.01
Euro	1	Rs.81.89

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUM
Report Prepared by :	ARI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

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.