MIRA INFORM REPORT

Report Date :

06.02.2014

IDENTIFICATION DETAILS

Name :	GUJARAT MICROWAX PRIVATE LIMITED
Registered Office :	401, 402 Sarthik Square, Near GNFC Tower, Sarkhej Gandhinagar Highway , Bodakdev, Ahmedabad – 380054, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.01.1989
Com. Reg. No.:	04-011737
Capital Investment / Paid-up Capital :	Rs. 28.473 Millions
CIN No.: [Company Identification No.]	U24229GJ1989PTC011737
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Microcrystalline Cellulose Powder used in Pharmaceutical Industries.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1920000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. The management has seen a better increase in its sales revenue as well as net profitability during 2013. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus on providing payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term fund based limits: “BBB-”
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	February, 2013

Rating Agency Name	ICRA
Rating	Short term fund based limits: “A3”
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	February, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Jay Prakash
Designation :	Export and Import Department
Contact No.:	91-79-26852181
Date :	05.02.2014

LOCATIONS

Registered Office :	401, 402 Sarthik Square, Near GNFC Tower, Sarkhej Gandhinagar Highway , Bodakdev, Ahmedabad – 380054, Gujarat, India
Tel. No. :	91-79-26852181
Fax No. :	91-79-26854169/ 26854170
E-Mail :	mj@gmpl.in jp@gmail.com
Website :	www.shailibiotech.com www.gmpl.com
Location :	Owned
Factory :	Located at · Nandasan Village, District Mehsana, Gujarat, India

DIRECTORS

As on 25.09.2013

Name :	Mr. Manas Anilkumar Jhajharia
Designation :	Director
Address :	25.09.1975
Date of Birth/Age :	36, Sumdhur Co-Operative Housing Society, Satellite Road, Ahmedabad – 380015, Gujarat, India
Date of Appointment :	20.09.2007
DIN No. :	00241611
Name :	Mr. Anilkumar Nandkishore Jhajharia
Designation :	Director
Address :	36, Sumdhur Co-Op Housing Society, Satellite Road, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	25.11.1947
Date of Appointment :	05.01.1989
DIN No. :	00336740
Name :	Josef Otto Rettenmaier
Designation :	Director
Address :	Holzmuhle 6, Rosenberg, Germany 73494
Date of Birth/Age :	22.01.1961
Date of Appointment :	23.06.2006
DIN No. :	02095744
Name :	Heinrich Ernst Wilhelm Petersen
Designation :	Director
Address :	Lessingstr. 2, Adelmannsfelden, Germany 73486
Date of Birth/Age :	09.09.1949
Date of Appointment :	30.06.2008
DIN No. :	02166885

KEY EXECUTIVES

Name :	Mr. Jay Prakash
Designation :	Export and Import Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2013

Names of Shareholders	No. of Shares
Anilkumar Jhajharia	929120
Manas Jhajharia	108080
Meenakshi Jhajharia	125000
Swati Jhajharia	76800
Anilkumar Jhajharia HUF	127650
Manas Jhajharia HUF	56975
Rettenmaier Asia Holding GMBH	1423625
Total	2847250

As on 25.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.00
Directors or relatives of Directors	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Microcrystalline Cellulose Powder used in Pharmaceutical Industries.
Exports :
Products :	Finished Goods
Countries :	· USA Europe
Imports :
Products :	Raw Material
Countries :	· USA Germany
Terms :
Selling :	Cash and Credit
Purchasing :	Cash, Credit and Depend

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Licensed Capacity	Installed Capacity
Microcrystalline Cellulose Powder	MT	5100.000	4830.582

GENERAL INFORMATION

Suppliers :

Sappi

Customers :

End Users

· JRS Pharma

No. of Employees :

300 (Approximately)

Bankers :

State Bank of India, Overseas Branch, 3^rd Floor, Amrut Jayanti Bhavan, Near Navjivan P.O., Ahmedabad - 380014, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
HDFC Bank Loan‐ Volkswagan Car (Secured against Hypothecation of Motor Vehicle Volkswagan car)	0.000	0.219
SHORT TERM BORROWINGS
Other loans and advances:
Cash Credit of S.B.I. ‐ Ahmedabad	142.877	42.412
P.C.F.C. A/c‐ USD	0.000	101.035
P.C.F.C. A/c‐ EURO	0.000	2.627
EBR A/C No. 30176195733 (NLC)	0.000	2.493
Total	142.877	148.786

Banking Relations :	--
Auditors :
Name :	Pipara and Company Chartered Accountants
Address :	Pipara Corporate House, Near Gruh Finance, Netaji Mark, Law Garden, Ahmedabad – 380006, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AABFP9063B
Associates:	· Gujarat Overseas Inc. Gujarat Paraffins Private Limited Gujarat Parachlore Private Limited Rettenmaier Asia Holding GMBH Shaili Bio‐Tech Private Limited Gujarat Parawaxes (Private) Limited Rettenmaier India Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3,250,000	Equity Shares	Rs.10/- each	Rs. 32.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,847,250	Equity Shares	Rs.10/- each	Rs. 28.473 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	28.473	28.473	28.473
(b) Reserves & Surplus	452.269	331.395	264.041
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.010	0.010	0.010
Total Shareholders’ Funds (1) + (2)	480.752	359.878	292.524
(3) Non-Current Liabilities
(a) long-term borrowings	48.854	48.727	58.612
(b) Deferred tax liabilities (Net)	38.800	36.772	33.981
(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)	87.654	85.499	92.593
(4) Current Liabilities
(a) Short term borrowings	185.415	206.105	197.805
(b) Trade payables	18.268	10.662	78.827
(c) Other current liabilities	19.786	32.417	69.331
(d) Short-term provisions	63.851	30.982	2.169
Total Current Liabilities (4)	287.320	280.166	348.132
TOTAL	855.726	725.543	733.249
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	286.955	301.406	305.014
(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	0.018	0.019	6.704
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	58.111	27.274	6.463
(e) Other Non-current assets	3.883	3.098	3.535
Total Non-Current Assets	348.967	331.797	321.716
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	116.832	134.428	106.072
(c) Trade receivables	185.699	155.552	153.908
(d) Cash and cash equivalents	144.175	47.555	30.736
(e) Short-term loans and advances	27.378	9.295	59.675
(f) Other current assets	32.675	46.916	61.142
Total Current Assets	506.759	393.746	411.533
TOTAL	855.726	725.543	733.249

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	958.824	741.500	671.677
		Other Income	NA	NA	39.933
		TOTAL	NA	NA	711.610
Less	EXPENSES
		TOTAL	NA	NA	618.103 (Including Interest and Depreciation)
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, EXTRA ORDINARY ITEMS, DEPRECIATION AND AMORTISATION		207.463	127.213
Less	EXTRA ORDINARY ITEMS		0.016	0.132
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		207.447	127.081
Less	FINANCIAL EXPENSES		8.066	8.861
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		199.381	118.220
Less/ Add	DEPRECIATION/ AMORTISATION		18.939	18.502
	PROFIT/ (LOSS) BEFORE TAX		180.442	99.718	93.507
Less	TAX		59.569	32.364	11.070
	PROFIT/ (LOSS) AFTER TAX		120.873	67.354	82.437
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		240.911	173.557	91.120
	BALANCE CARRIED TO THE B/S		361.784	240.911	173.557
	EARNINGS IN FOREIGN CURRENCY		775.610	623.052	561.882
	Earnings / (Loss) Per Share (Rs.)		42.45	23.66	28.95

Expected Sales (2013-2014) : Rs. 1150.000 Millions

The above information has been parted by Mr. Jay Prakash (Export and Import Department).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	NA	NA	11.58
Net Profit Margin (PBT/Sales)	(%)	18.82	13.41	13.92
Return on Total Assets (PBT/Total Assets}	(%)	21.09	13.74	12.87
Return on Investment (ROI) (PBT/Networth)		0.38	0.28	0.32
Debt Equity Ratio (Total Debt/Networth)		0.49	0.71	0.88
Current Ratio (Current Asset/Current Liability)		1.76	1.41	1.18

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
Current maturities of long‐term debt:
HDFC Bank Loan‐ Volkswagan Car (Secured against Hypothecation of Motor Vehicle Volkswagan car)	0.219	0.622	0.571
HDFC Bank Loan‐I20 (Secured against Hyp. of Motor Vehicle I‐20)	0.019	0.234	0.194
Total	0.238	0.856	0.765

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
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	Yes

LITIGATION DETAILS:

HIGH COURT OF GUJARAT LETTERS PATENT APPEAL No. 618 of 2013 In SPECIAL CIVIL APPLICATION / 6164 / 2004 ( DISPOSED ) On : 31/01/2013
Status: PENDING (Converted from : LPAST/493/2013) CCIN No : 001014201300618 Last Listing Date: 02/07/2013
Coram: HONOURABLE THE CHIEF JUSTICE MR. K.S.RADHAKRISHNAN HONOURABLE MR.JUSTICE AKIL KURESHI			Not Before : HONOURABLE MR.JUSTICE H.K.RATHOD HONOURABLE MR.JUSTICE JAYANT PATEL
S.NO.	Name of the Petitioner	Advocate On Record
1 2 3	CHIEF ENGINEER UTTAR GUJARAT VIJ CO. LTD. UTTAR GUJARAT VIJ CO. LTD. THROUGH DEPUTY ENGINEER EXECUTIVE ENGINEER (O & M) UTTAR GUJARAT VIJ CO LTD	MS LILU K BHAYA for: Appellant(s) 1 - 3
S.NO.	Name of the Respondant	Advocate On Record
1	GUJARAT MICROWAX LTD.	MR BHARAT T RAO for :Respondent(s) 1

Presented On

: 15/03/2013

Registered On

: 26/04/2013

Bench Category

: DIVISION BENCH

District

: MAHESANA

Case Originated From

: THROUGH ADVOCATE

Listed

: 2 times

StageName

: ADMISSION (FRESH MATTERS)

Classification

LPA - NON-SERVICE - ELECTRICITY ACT, 2003 - OTHER MISCELLANEOUS MATTERS

Act

LETTERS PATENT, 1865

LowerCourt Details

S.No.

LowerCourt CaseDetail

LowerCourtName

JudgeName

Judgmentdate

1

SPECIAL CIVIL APPLICATION/6164/2004

GUJARAT HIGH COURT, AHMEDABAD

HONOURABLE MR.JUSTICE JAYANT PATEL-JUDGE,HIGH COURT OF GUAJRAT HONOURABLE MR.JUSTICE JAYANT PATEL-JUDGE,HIGH COURT OF GUAJRAT HONOURABLE MR.JUSTICE JAYANT PATEL-JUDGE,HIGH COURT OF GUAJRAT HONOURABLE MR.JUSTICE JAYANT PATEL-JUDGE,HIGH COURT OF GUAJRAT HONOURABLE MR.JUSTICE JAYANT PATEL-JUDGE,HIGH COURT OF GUAJRAT HONOURABLE MR.JUSTICE JAYANT PATEL-JUDGE,HIGH COURT OF GUAJRAT HONOURABLE MR.JUSTICE JAYANT PATEL-JUDGE,HIGH COURT OF GUAJRAT

31/01/2013

Office Details

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

15/03/2013

MEMO OF APPEAL/PETITION/SUIT

MS LILU K BHAYA ADVOCATE for PETITIONER(s) 1

50

MS LILU K BHAYA:1-3

2

15/04/2013

VAKALATNAMA

MR BHARAT T RAO ADVOCATE for RESPONDENT(s) 1

5

MR BHARAT T RAO:1

3

26/04/2013

VAKALATNAMA

MR BHARAT T RAO ADVOCATE for RESPONDENT(s) 1

-

MR BHARAT T RAO:1

4

26/04/2013

VAKALATNAMA

MS LILU K BHAYA ADVOCATE for PETITIONER(s) 1

-

MS LILU K BHAYA:1-3

Linked Matters

S. No.

CaseDetail

Status Name

Disposal Date

Action/Coram

1

CIVIL APPLICATION/3633/2013

DISPOSED

22/04/2013

ANY OTHER MODE @ ADM.STAGE · HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI · HONOURABLE MR.JUSTICE S.G.SHAH

2

CIVIL APPLICATION/4980/2013

DISPOSED

02/07/2013

RULE ABSOLUTE/ALLOWED @ F.H · HONOURABLE MR.JUSTICE RAVI R.TRIPATHI · HONOURABLE MR.JUSTICE MOHINDER PAL

Court Proceedings

S. No.

Notified Date

Court Code

Board Sr. No.

Stage

Action

Coram

1

17/05/2011

3

-

OFFICE OBJECTION (FILING STAGE)

NEXT DATE

ADDITIONAL REGISTRAR (JUDICIAL)

2

21/06/2012

3

-

BOARD NO. I-A

NEXT DATE

· HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI · HONOURABLE MR.JUSTICE · N.V.ANJARIA

Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

1

LETTERS PATENT APPEAL/618/2013

· HONOURABLE MR.JUSTICE RAVI R.TRIPATHI · HONOURABLE MR.JUSTICE MOHINDER PAL

02/07/2013

N

ORDER

-

Y

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90110660	16/12/2003	30,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH; NEPTUNE TOWER, ASHRAM ROAD, AHEMADABAD, GUJARAT, INDIA	-
2	90107911	01/08/2006 *	12,450,000.00	STATE BANK OF INDIA	SPL.COMMERCIAL BRANCH,GANDHIGRAM, OPP. GANDHIGRAM RLY.STATION, AHMEDABAD - 380009, GUJARAT, INDIA	-
3	90113192	31/03/2011 *	285,300,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, 3RD FLOOR, AMRUT JAYANTI BHAVAN, NR NAVJIVAN P.O., AHMEDABAD - 380014, GUJARAT, INDIA	B10220812
4	90108927	31/03/2011 *	285,300,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, 3RD FLOOR, AMRUT JAYANTI BHAVAN, NEAR NAV JIVAN POST OFFICE, AHMEDABAD - 380014, GUJARAT, INDIA	B10220366

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from related parties:
Rettenmaier AsiaHolding GMBH	48.854	48.508
SHORT TERM BORROWINGS
Loans and advances from related parties:
Anilkumar Jhajharia ‐ HUF	0.000	41.525
AnilKumar Jhajharia	23.702	9.814
Manas Jhajharia ‐ HUF	0.000	0.138
Meenakshi Jhajharia	15.636	4.386
Manas Jhajharia	3.200	1.675
Total	91.392	106.046

FUTURE PROSPECTS

The market of their products as well the production and sales of companies products will increase substantially in coming years. During the year Company has commenced production at new unit and export of Croscarmellose Sodium. Directors feels extensive demand of the product in the coming year.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2013 (Rs. In Millions)
Claim against the company not acknowledged as debt : Inox Civil matter	0.515
GEB Demand	1.307
Sales Tax 2000‐2001 (see note(b) below)	0.418
Sales Tax 2002‐2003 (see note(c) below)	1.189

Notes :

· Petition against demand filed on 13‐09‐2006, matter pending at Tribunal.

Matter of sales tax on purchase of LDO FY 2002‐03,matter is pending with Hon'able High Court.

FIXED ASSETS

v Tangible Assets

Land

Site Development

Factory Building

Borewell

Plant and Machinery

D.M. Plant

R.D. Plant

Spray Drayer

Pollution Control Equipment

Electric Installation

Laboratory Equipment

Computeradn Fax

Office Equipment

Furniture and Fixture

Vehicle

Tempo

Tractor

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.45
UK Pound	1	Rs.102.01
Euro	1	Rs.84.35

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.