MIRA INFORM REPORT

Report Date :

28.08.2014

Tel. No.:	91-130-2484108
Fax No.:	91-130-2484109

IDENTIFICATION DETAILS

Name :	ANCALIMA LIFESCIENCES LIMITED
Formerly Known As:	UNI SULE LABORATORIES PRIVATE LIMITED (w.e.f. 08.07.2006) PFISCAR INDIA LIMITED
Registered Office :	2071, Old Anaj Mandi, Narela, Delhi - 110040
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.05.1988
Com. Reg. No.:	55-31451
Capital Investment / Paid-up Capital :	Rs. 4.935 Millions
CIN No.: [Company Identification No.]	U52110DL1988PLC031451
TAN No.: [Tax Deduction & Collection Account No.]	DELP06518B
PAN No.: [Permanent Account No.]	AACCP5005B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceutical and Veterinary Formulation.
No. of Employees :	48 [In Office : 13; In Factory : 25]

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 32000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However 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 – 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 :	Mr. Manish Pandey
Designation :	Account
Contact No.:	91-130-2484108
Date :	16.08.2014

LOCATIONS

Registered Office :	2071, Old Anaj Mandi, Narela, Delhi – 110040, India
Tel. No.:	91-130-2484108
Mobile :	91-9896008786 / 8059208786 (Mr. Rajeev Garg)
Fax No.:	91-130-2101076
E-Mail :	arunahuja_7@rediffmail.com admin@ancalima.com sales@ancalima.com exports@ancalima.com rg@ancalima.com
Website :	http://www.ancalima.com
Area :	Rented
Factory :	50^th Km Stone, National Highway No.1, Murthal, Sonepat – 131 039, Haryana, India
Tel. No.:	91-130-2484108
Mobile No.:	91-9896084700 [Mr. Rajeev Garg]
Fax No.:	91-130-2484109
Area :	Owned

DIRECTORS

As on 30.09.2013

Name :

Mr. Rajeev Garg

Designation :

Director

Address :

935, Sector – 15, Sonepat – 133 101, Haryana, India

Date of Birth/Age :

01.11.1972

Date of Appointment :

15.02.1996

DIN No.:

00159925

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	U52110DL1988PLC031451	ANCALIMA LIFESCIENCES LIMITED	Director	15-02-96	15-02-96	-	Active	NO
2	U24112UP1948PTC001882	THE NEW INTERNATIONAL CHEMICALS PRIVATE LIMITED	Director	14-08-97	14-08-97	-	Active	NO
3	U24233DL2005PLC140455	UTTARANCHAL BIOTECH LIMITED	Director	28-02-07	28-02-07	16-10-08	Active	NO

Name :

Ms. Garg Sakshi

Designation :

Director

Address :

935, Sector – 14, Sonepat , Haryana, India

Date of Birth/Age :

14.12.1974

Date of Appointment :

02.05.1988

DIN No. :

00159945

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	U52110DL1988PLC031451	ANCALIMA LIFESCIENCES LIMITED	Director	01-02-05	01-02-05	-	Active	NO
2	U24112UP1948PTC001882	THE NEW INTERNATIONAL CHEMICALS PRIVATE LIMITED	Director	28-09-12	28-09-12	-	Active	NO

Name :

Ms. Sita Ram Garg

Designation :

Director

Address :

935, Sector – 14, Sonepat– 131001, Haryana, India

Date of Birth/Age :

20.06.1943

Date of Appointment :

02.11.2009

DIN No.:

00455602

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	U24112UP1948PTC001882	THE NEW INTERNATIONAL CHEMICALS PRIVATE LIMITED	Director	01-06-85	01-06-85	-	Active	NO
2	U24233DL2005PLC140455	UTTARANCHAL BIOTECH LIMITED	Director	05-01-09	07-09-05	24-10-09	Active	NO
3	U52110DL1988PLC031451	ANCALIMA LIFESCIENCES LIMITED	Director	02-11-09	02-11-09	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Manish Pandey
Designation :	Account

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Sita Ram Garg	11
.Nirmla Garg	1
Raghbir Chand Garg	501
Sukhdev Garg	10
Gore Lal	01
Shanti Devi	01
Ashok Kumar	01
Bhagwati Devi	01
Atma Ram	01
Nirmal Goel	01
Minakshi Garg	01
Natasha Garg	01
Kaushlya Devi	01
Rajeev Garg	33277
The New India International Chemicals Private Limited	13300
Surat Singh Kuhar	01
Sakshi Garg	2225
Viran Jain & Sons (Huf)	01
Rajeev Garg (Huf)	10
Veena Jain	5
TOTAL	49351

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pharmaceutical and Veterinary Formulation.
Product :	· Cosmetic Formulation o Hair Shampoo 100 mL o Neem & Honey Face Wash 70ml o Famine Wash o Moisturizing Lotion o Sun Screen Gel · Dry Powder Injections-Human o Meropenem Injection 250mg o Imipenem & Cilastatin Injection 1 g. o Piperacillin & Tazobactam Injection 2.250g. o Vancomycin Injection 500mg o Ceftazidime & Tazobactam Injection 1.125 g. o Cefuroxime Injection 750mg · Liquid Injections - Human o Clindamycin Injection 2ml o Ondansetron Injection 2 ml. o Iron Sucrose Injection 2.5ml. o Nandrolone Decanoate 25mg. · Veterinary Formulations o Meloxicam-20 30ml & 50ml & 100ml o Nandrolone Decanoate 5 ml o Ivermectin 2ml & 50ml o Cyanocobalamin & Cholecalciferol Injection 45 ml · External Applications o Clindamycin 1 % + Adapalene 0.1% Gel o Clindamycin 1% + Isotretinoin 0.5 % Gel o Ketoconazole + ZPTO Hair Lotion o Clindamycin 1% Gel · Formulations for Export Only o Paraldehyde Injection o Dex-Ketoprofen 100mg/2ml Injection o Ketoprofen Inj. 100mg/2ml o Phytomenadione Injection 10mg/ml
Exports :
Countries :	· Afghanistan · Nigeria
Terms :
Selling :	Cash and Credit (60 Days)
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

· Wholesalers

· Pharma AG Trading

· Santo Domingo

· Dominican Republic

· Cera  Medical Limited

No. of Employees :

48 [In Office : 13; In Factory : 25]

Bankers :

• HDFC Bank, Delhi
• HDFC Bank, Sonepat
• ICICI Bank
• Canara Bank, Atlas Road, Sonipat – 131 001, Haryana, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Term Loans:
From Banks	1.227	1.645
Short Term Borrowings
Working Capital Loans
From Bank	12.428	11.832
Total	13.655	13.477

Banking Relations :	--
Auditors :
Name :	Ahuja Arora and Associates Chartered Accountants
Address :	N-146, Greter Kailash Part-1, , New Delhi- 110 048, India
Tel. No.:	91-29243799 / 29243800
Mobile No.:	919810069885
E-Mail :	arunahujs.7@gmail.com
PAN No. :	AAGFA7637P
Associates/Subsidiaries :	The New International Chemicals Private Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49351	Equity Shares	Rs.100/- each	Rs.4.935 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4.935	4.935
(b) Reserves & Surplus	3.166	2.322
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	8.101	7.257
(3) Non-Current Liabilities
(a) long-term borrowings	14.177	14.124
(b) Deferred tax liabilities (Net)	0.378	0.086
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.957	0.865
Total Non-current Liabilities (3)	15.512	15.075
(4) Current Liabilities
(a) Short term borrowings	12.428	11.832
(b) Trade payables	23.688	27.069
(c) Other current liabilities	5.404	3.598
(d) Short-term provisions	2.516	2.108
Total Current Liabilities (4)	44.036	44.607
TOTAL	67.649	66.939
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	15.699	15.242
(ii) Intangible Assets	0.079	0.099
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.150	0.150
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.143	0.140
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	16.071	15.631
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	16.177	20.939
(c) Trade receivables	28.982	26.228
(d) Cash and cash equivalents	1.029	0.601
(e) Short-term loans and advances	3.751	2.171
(f) Other current assets	1.639	1.369
Total Current Assets	51.578	51.308
TOTAL	67.649	66.939

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		4.934
2] Share Application Money		0.000
3] Reserves & Surplus		1.391
4] (Accumulated Losses)		0.000
NETWORTH		6.325
LOAN FUNDS
1] Secured Loans		12.421
2] Unsecured Loans		13.530
TOTAL BORROWING		25.951
DEFERRED TAX LIABILITIES		0.235
TOTAL		32.511
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.531
Capital work-in-progress		0.000
INVESTMENT		0.150
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.417
	Sundry Debtors	18.632
	Cash & Bank Balances	0.266
	Other Current Assets	1.775
	Loans & Advances	2.338
Total Current Assets		43.428
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	23.443
	Provisions	2.155
Total Current Liabilities		25.598
Net Current Assets		17.830
MISCELLANEOUS EXPENSES		0.000
TOTAL		32.511

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	91.492	89.701	79.195
		Other Income	4.834	3.916	2.094
		TOTAL (A)	96.326	93.617	81.289
Less	EXPENSES
		Cost of Materials Consumed	59.766	64.125	62.215
		Purchases of Stock-in-Trade	2.787	1.329	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	1.338	(0.682)	0.000
		Employees benefits expense	6.499	6.229	4.925
		Managerial remuneration	1.650	1.260	0.900
		Payment to auditors	0.101	0.084	0.083
		Interest	0.000	0.000	2.366
		Insurance Expenses	0.223	0.286	0.166
		Power and Fuel	2.541	2.201	1.773
		Other expenses	14.261	12.165	6.051
		TOTAL (B)	89.166	86.997	78.479
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.160	6.620	2.810
Less	FINANCIAL EXPENSES (D)		3.092	2.944	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.068	3.676	2.810
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.283	2.189	1.766
	PROFIT BEFORE TAX (E-F) (G)		1.785	1.487	1.044
Less	TAX (H)		0.941	0.556	0.166
	PROFIT AFTER TAX (G-H) (I)		0.844	0.931	0.878
	BALANCE CARRIED TO THE B/S		NA	NA	1.391
	EARNINGS IN FOREIGN CURRENCY
	TOTAL EARNINGS		0.471	0.470	40.082
	IMPORTS
		Raw Materials	NA	NA	0.138
	TOTAL IMPORTS		NA	NA	0.138
	Earnings Per Share (Rs.)		17.11	18.87	17.81

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.88	0.99	1.08
Net Profit Margin (PBT/Sales)	(%)	1.95	1.66	1.32
Return on Total Assets (PBT/Total Assets}	(%)	2.64	2.23	1.80
Return on Investment (ROI) (PBT/Networth)		0.22	0.20	0.16
Debt Equity Ratio (Total Debt /Networth)		3.28	3.58	4.10
Current Ratio (Current Asset/Current Liability)		1.17	1.15	0.58

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	4.935	4.935
Reserves & Surplus	2.322	3.166
Net worth	7.257	8.101
long-term borrowings	14.124	14.177
Short term borrowings	11.832	12.428
Total borrowings	25.956	26.605
Debt/Equity ratio	3.577	3.284

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	79.195	89.701	91.492
		13.266	1.997

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	79.195	89.701	91.492
Profit	0.878	0.931	0.844
	1.11%	1.04%	0.92%

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	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	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
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

Note: Registered office of the company has been shifted from A-337,Lgf-2 Basement, Shivalik, Delhi, Central Delhi-110017, Delhi, India to the present address w.e.f. 16.11. 2009

LATIGATION DETAILS

IN THE HIGH COURT OF DELHI AT NEW DELHI

  CS(OS) 1420/2013

  DR.REDDY S LABORATORIES LTD ..... Plaintiff

  Through: Ms. Sabia Veqar, Adv.

versus


ANCALIMA LIFESCIENCES LIMITED AND ORS ..... Defendants

 Through: Mr. Siddhanth Bambha, Adv.

CORAM:

  SH. KOVAI VENUGOPAL (DHJS), JOINT REGISTRAR (JUDICIAL)

   O R D E R

   25.07.2014

 Today the case is coming up for carrying out admission/denial of the additional documents.

Ld. counsel for defendant submits that the additional documents filed by the plaintiff are some promotional material and invoices which do not pertain to the defendant, therefore, there is no need of carrying   out admission/denial. Admission/denial of the documents stage is taken as complete. Put up before the Hon'ble Court for further directions on date fixed i.e. 29.08.2014.

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
Long Term Borrowings
Loans and advances from related parties	12.950	12.479
Total	12.950	12.479

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10040053	13/01/2007	1,365,000.00	CANARA BANK	ATLAS ROAD, SONIPAT, HARYANA - 131001, INDIA	A11207883
2	90054987	13/03/2014 *	17,500,000.00	CANARA BANK	CANARA BANK, SONEPAT, HARYANA - 131001, INDIA	C02354496
3	90052716	23/07/2003 *	2,500,000.00	CANARA BANK	SONIPAT, SONIPAT, HARYANA, INDIA	-

* Date of charge modification

FIXED ASSETS

• Air conditioner
• Building
• Building under construction
• Vehicle
• CCD Camera
• Computer
• Dies and Tools
• Electrical Equipment
• EPABX
• Fire Extinguisher
• Furniture and Fixture
• Generator
• Lab Equipment
• Land
• Mobile Phone
• Plant and Machinery
• Printer and Scanner
• Refrigerator
• Scooter
• Software
• Telephone Equipment
• Vacume Cleaner
• Weight Machine
• Water Cooler

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 records 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. 60.46
UK Pound	1	Rs. 100.14
Euro	1	Rs. 79.65

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	ASH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	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		30

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.