MIRA INFORM REPORT

Report Date :

30.08.2014

IDENTIFICATION DETAILS

Name :	ANTARCTIC INDUSTRIES LIMITED
Registered Office :	G-1, Ground Floor, Gagandeep Building, Rajendra Palace, New Delhi - 110008
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	23.02.1983
Com. Reg. No.:	55-088911
Capital Investment / Paid-up Capital :	Rs. 4.950 Millions
CIN No.: [Company Identification No.]	L29212DL1983PLC088911
PAN No.: [Permanent Account No.]	AABCA1339A
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturers and Suppliers Of Alloy Steel, Carbon Steel, Hot Die Steel Bars, Steel Rods, etc.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

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 and losses that company has incurred from its operational activities. 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. NOTE: Company not listed on BSE and NSE.

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 that 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 DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-161-5084433)

LOCATIONS

Registered Office :	G-1, Ground Floor, Gagandeep Building, Rajendra Palace, New Delhi – 110008, India
Tel. No. :	Not Available
Fax No. :	Not Available
E-Mail :	l.mahajan@gmail.com finance@ludhianasteel.com
Website :	www.ludhianasteel.com
Factory :	C-44/47, Behind Metro Tyres Limited, Focal Point, Ludhiana – 141010, Punjab, India
Tel. No.:	91-161-5084433/ 2673249/ 2677749
Fax No.:	91-161-2673229
E-Mail :	sandeepjain@ludhianasteel.com ajay.antarticind@gmail.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Raj Kumar Jain

Designation :

Managing Director

Address :

16, Rakh Bagh, Civil Lines, Ludhiana – 141003, Punjab, India

Date of Birth/Age :

24.06.1935

Qualification :

Graduate

Date of Appointment :

30.08.2013

PAN No.:

ADBPJ6364J

DIN No. :

00528205

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	U00000DL1990PTC040159	CAPRICORN STEEL MILLS PVT LTD	Director	16-05-1990	16-05-1990	Active	NO
2	U74899DL1990PTC040155	AQUARIUS STEEL MILLS PRIVATE LIMITED	Director	16-05-1990	16-05-1990	Active	NO
3	L29212DL1983PLC088911	ANTARCTIC INDUSTRIES LIMITED	Managing director	30-08-2013	01-05-1994	Active	NO
4	U27104DL1995PTC183524	LSR ISPAT Private Limited	Director	08-11-2012	24-08-1995	Active	NO
5	U27100MH1986PLC041884	LSR SPECIAL STEELS LIMITED	Director	30-09-2010	27-05-2010	Active	NO
6	U27106PB1990PTC010241	TRISHALA ALLOYS PRIVATE LIMITED	Director	30-09-2010	03-08-2010	Active	NO

Name :

Mr. Sandeep Jain

Designation :

Whole Time Director

Address :

16, Rakh Bagh, Civil Lines, Ludhiana – 141003, Punjab, India

Date of Birth/Age :

09.01.1963

Qualification :

Graduate

Date of Appointment :

01.10.2013

PAN No. :

AAPPJ9885P

DIN No. :

00528233

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	U74899DL1990PTC040146	LEO STEEL MILLS PRIVATE LIMITED	Director	16-05-1990	16-05-1990	Active	NO
2	L29212DL1983PLC088911	ANTARCTIC INDUSTRIES LIMITED	Whole-time director	01-10-2013	01-05-1994	Active	NO
3	U27104DL1995PTC183524	LSR ISPAT PRIVATE LIMITED	Director	08-11-2012	24-08-1995	Active	NO
4	U27202DL1996PTC154744	LSR FORGE PRIVATE LIMITED	Director	08-04-2009	08-04-2009	Active	NO
5	U27106PB1990PTC010241	TRISHALA ALLOYS PRIVATE LIMITED	Director	30-09-2010	03-08-2010	Active	NO
6	U27100MH1986PLC041884	LSR SPECIAL STEELS LIMITED	Director	27-09-2012	01-01-2011	Active	NO
7	AAB-0064	KAIZEN IMPORT AND EXPORT LLP	Designated Partner	09-07-2012	09-07-2012	Active	NO

Name :

Mr. Sanjay Jain

Designation :

Whole Time Director

Address :

16, Rakh Bagh, Civil Lines, Ludhiana – 141003, Punjab, India

Date of Birth/Age :

09.10.1964

Qualification :

Graduate

Date of Appointment :

01.10.2013

PAN No. :

AAPPJ98886Q

DIN No. :

00528310

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	U74899DL1990PTC040155	AQUARIUS STEEL MILLS PRIVATE LIMITED	Director	16-05-1990	16-05-1990	Active	NO
2	U74899DL1994PTC063540	LSR INVESTMENT AND LEASING PRIVATE LIMITED	Director	16-12-1994	16-12-1994	Active	NO
3	U27104DL1995PTC183524	LSR ISPAT Private LIMITED	Director	08-11-2012	24-08-1995	Active	NO
4	L29212DL1983PLC088911	ANTARCTIC INDUSTRIES LIMITED	Whole-time director	01-10-2013	26-02-1996	Active	NO
5	U27202DL1996PTC154744	LSR FORGE PRIVATE LIMITED	Director	24-09-1996	24-09-1996	Active	NO
6	U27106PB1990PTC010241	TRISHALA ALLOYS PRIVATE LIMITED	Director	30-09-2010	03-08-2010	Active	NO
7	U27100MH1986PLC041884	LSR SPECIAL STEELS LIMITED	Director	27-09-2012	01-01-2011	Active	NO
8	AAB-0064	KAIZEN IMPORT AND EXPORT LLP	Designated Partner	09-07-2012	09-07-2012	Active	NO

Name :

Mr. Shiv Kumar Chaudhary

Designation :

Director

Address :

MIG-379/380, Sector 40, Near Moti Nagar, Ludhiana – 141010, Punjab, India

Date of Birth/Age :

19.10.1965

Qualification :

Graduate

Date of Appointment :

26.11.2010

DIN No. :

00528299

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	U67121PB1994PLC014646	APARNA CAPITAL SERVICES LIMITED	Director	15-01-2003	15-01-2003	-	Active	NO
2	L29212DL1983PLC088911	ANTARCTIC INDUSTRIES LIMITED	Director	26-11-2010	26-11-2010	-	Active	NO
3	U27104DL1995PTC183524	LSR ISPAT PRIVATE LIMITED	Director	28-09-2012	15-11-2011	28-11-2012	Active	NO

Name :

Mr. Rishi Puri

Designation :

Director

Address :

G-245, BRS Nagar, Ludhiana – 141001, Punjab, India

Date of Birth/Age :

17.06.1986

Qualification :

Graduate

Date of Appointment :

01.04.2005

DIN No. :

01581676

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	L29212DL1983PLC088911	ANTARCTIC INDUSTRIES LIMITED	Director	01-04-2005	01-04-2005	-	Active	NO
2	U51109PB1997PTC020287	JUPITER SALES PRIVATE LIMITED	Director	30-08-2007	30-08-2007	-	Active	NO
3	U67120PB1995PTC017011	INCREMENTAL SECURITIES PRIVATE LIMITED	Director	24-11-2009	24-11-2009	-	Active	NO
4	U74899DL1993PTC054419	TRITRONICS INDIA PRIVATE LIMITED	Director	20-08-2012	30-06-2011	28-03-2013	Active	NO
5	U72100DL1997PTC089522	LETS ENGINEERING AND TECHNOLOGY SERVICES PRIVATE LIMITED	Director	29-09-2012	28-11-2011	-	Active	NO

Name :

Mr. Ajay Kumar Singh

Designation :

Director

Address :

4001-L, Gobind City, Jamalpur Distt, Ludhiana – 141003, Punjab, India

Date of Birth/Age :

21.03.1965

Qualification :

Graduate

Date of Appointment :

02.09.2005

DIN No. :

02440577

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	L29212DL1983PLC088911	ANTARCTIC INDUSTRIES LIMITED	Director	02-09-2005	02-09-2005	-	Active	NO
2	U27104DL1995PTC183524	LSR ISPAT PRIVATE LIMITED	Director	28-09-2012	15-11-2011	08-11-2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Aparna Capital Services Limited, India	32000
LSR Investment and Leasing Private Limited, India	35000
Sandeep Jain	54280
Sudarshan Jain	26000
Raj Kumar Jain	32000
Sanjay Jain	56950
Jyoti Jain	22600
Dipti Jain	47670
Raj Kumar Jain and Sons	26500
Sandeep Jain (HUF)	35500
Sanjay Jain (HUF)	39000
Capricorn Steel Mills Private Limited, India	37500
Leo Steel Mills Private Limited, India	25000
Aquarius Steel Mills Private Limited, India	25000
Total	495000

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	31.21
Directors or relatives of Directors	68.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Suppliers Of Alloy Steel, Carbon Steel, Hot Die Steel Bars, Steel Rods, etc.

Products :

Item Code No. (ITC Code)	Product Description
72249099	Steel

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Punjab National Bank, Large Corporate Branch, Bhagwati Tower, R K Road, Cheema Chowk, Ludhiana - 141003, Punjab, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Loans taken for vehicles (Vehicles loans are secured by hypothecation of vehicles purchased)	2.654	1.284
SHORT TERM BORROWINGS
Loans repayable on demand from banks (Working Capital Loan is secured against Hypothecation of stock of raw material, Finished Goods, Stock of Spares, Book Debts and Plant and Machinery and Properties)	19.048	14.551
Total	21.702	15.835

Banking Relations :	--
Auditors :
Name :	Vinay and Associates Chartered Accountants
Address :	30, II Floor, Feroze Gandhi Market, Ludhiana - 141001, Punjab, India
Income-tax PAN of auditor or auditor's firm :	AACFV0520C
Associates :	· Trishala Alloys Private Limited CIN No.: U27106PB1990PTC010241 LSR Forge Private Limited CIN No.: U27202DL1996PTC154744
Enterprises which are owned, or have significant influence of or are partners with Key Management personnel and their relatives :	Ludhiana Steel Rolling Mills

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
495,000	Equity Shares	Rs.10/- each	Rs. 4.950 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	4.950	4.950	4.950
(b) Reserves & Surplus	171.538	201.451	202.403
(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)	176.488	206.401	207.353
(3) Non-Current Liabilities
(a) long-term borrowings	25.568	26.998	1.764
(b) Deferred tax liabilities (Net)	0.727	0.535	0.641
(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)	26.295	27.533	2.405
(4) Current Liabilities
(a) Short term borrowings	19.048	14.551	16.830
(b) Trade payables	73.654	47.716	47.009
(c) Other current liabilities	19.331	10.497	8.988
(d) Short-term provisions	16.000	16.000	16.000
Total Current Liabilities (4)	128.033	88.764	88.827
TOTAL	330.816	322.698	298.585
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	80.279	70.744	70.602
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	4.479	4.240
(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	10.453	10.728	4.269
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	90.732	85.951	79.111
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	67.976	61.282	63.441
(c) Trade receivables	107.812	121.913	117.518
(d) Cash and cash equivalents	17.961	10.975	18.319
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	46.335	42.577	20.196
Total Current Assets	240.084	236.747	219.474
TOTAL	330.816	322.698	298.585

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	820.744	810.251	698.154
		Other Income	0.969	8.766	1.031
		TOTAL (A)	821.713	819.017	699.185
Less	EXPENSES
		Cost of Materials Consumed	605.570	569.958	446.355
		Employees benefits expense	15.717	14.415	11.053
		Other expenses	216.253	226.758	194.578
		TOTAL (B)	837.540	811.131	651.986
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(15.827)	7.886	47.199
Less	FINANCIAL EXPENSES (D)		10.982	6.477	2.034
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(26.809)	1.409	45.165
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.913	2.466	2.310
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(29.722)	(1.057)	42.855
Less	TAX (H)		0.191	(0.105)	15.623
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(29.913)	(0.952)	27.232
	Earnings / (Loss) Per Share (Rs.)		(60.43)	(1.92)	55.01

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(3.64)	(0.12)	3.89
Net Profit Margin (PBT/Sales)	(%)	(3.62)	(0.13)	6.14
Return on Total Assets (PBT/Total Assets}	(%)	(8.98)	(0.33)	14.56
Return on Investment (ROI) (PBT/Networth)		(0.17)	(0.01)	0.21
Debt Equity Ratio (Total Debt/Networth)		0.25	0.20	0.09
Current Ratio (Current Asset/Current Liability)		1.88	2.67	2.47

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	4.950	4.950	4.950
Reserves & Surplus	202.403	201.451	171.538
Net worth	207.353	206.401	176.488
long-term borrowings	1.764	26.998	25.568
Short term borrowings	16.830	14.551	19.048
Total borrowings	18.594	41.549	44.616
Debt/Equity ratio	0.090	0.201	0.253

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	698.154	810.251	820.744
		16.056	1.295

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	698.154	810.251	820.744
Profit	27.232	(0.952)	(29.913)
	3.90%	(0.12%)	(3.64%)

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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80059840	12/06/2014 *	182,500,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, BHAGWATI TOWER, R K ROAD, CHEEMA CHOWK, LUDHIANA - 141003, PUNJAB, INDIA	C09633645

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Working capital loans from banks	22.914	25.714
Total	22.914	25.714

OPERATIONAL REVIEW

The Company's operating income was Rs. 821.713 Millions as compared to Rs. 819.017 Millions of the last year. The company has incurred a loss after tax of Rs. 29.913 Millions as compared to last year loss of Rs. 0.952 Million.

FIXED ASSETS

Tangible Assets

· Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

Motor Vehicles

Office Equipment

Computer Equipments

Other Equipments

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.60.47
UK Pound	1	Rs.100.35
Euro	1	Rs.79.86

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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	--

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