MIRA INFORM REPORT

Report Date :

15.02.2014

IDENTIFICATION DETAILS

Name :	VIVIMED LABS (ALATHUR) PRIVATE LIMITED (w.e.f.27.08.2013)
Formerly Known As :	ACTAVIS PHARMA MANUFACTURING PRIVATE LIMITED
Registered Office :	130, Shanta Industrial Estate, 1^st Floor, I.B. Patel Road, Goregaon (East), Mumbai – 400063, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	23.11.2006
Com. Reg. No.:	11-165760
Capital Investment / Paid-up Capital :	Rs. 658.752 Millions
CIN No.: [Company Identification No.]	U24219MH2006PTC165760
PAN No.: [Permanent Account No.]	AAGCA0040H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Solid Oral Dosage forms (Tablets and Capsules) and Active Pharma Ingredients.
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 :

B (31)

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

Maximum Credit Limit :	USD 5950000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Company has incurred loss from its operation in 2012. However, trade relations are fair. Business is active. Payment terms are 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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 DECLINED

MANAGEMENT NON-COOPERATIVE

(CONTACT NO.: 91-40-27176005/ 06)

LOCATIONS

Registered Office :	130, Shanta Industrial Estate, 1^st Floor, I.B. Patel Road, Goregaon (East), Mumbai – 400063, Maharashtra, India
Tel. No.:	91-22-66886700
Fax No.:	Not Available
E-Mail :	muralidharan.cs@watsonpharm.co.in yugandhar.kopparthi@vivimedlabs.com
Factory :	101 to 108 and 153, SIDCO Pharmaceutical Estate, Alathur, District Kanchipuram – 603110, Tamilnadu, India

DIRECTORS

AS ON 17.06.2013

Name :

Chinnadharavaram Sundaresan Muralidharan

Designation :

Director

Address :

302, B Wing, Avalon Building, Hiranandani Garden, Powai, Mumbai – 400076, Maharashtra, India

Date of Birth/Age :

05.02.1963

Date of Appointment :

17.06.2013

Date of Cessing :

31.07.2013

DIN No.:

00014740

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	U24230GJ1984PLC007440	CONCORD BIOTECH LIMITED	Director	10/02/2006	10/02/2006	29/09/2007	Active	NO
2	U24230MH2005PTC156968	WATSON PHARMA PRIVATE LIMITED	Managing director	22/01/2013	20/05/2010	-	Active	NO
3	U24230MH2004PTC148084	ACTAVIS PHARMA PRIVATE LIMITED	Director	28/06/2013	14/01/2013	-	Active	NO
4	U24219MH2006PTC165760	VIVIMED LABS (ALATHUR) PRIVATE LIMITED	Director	17/06/2013	14/01/2013	31/07/2013	Active	NO
5	U24239MH2006PTC163981	ACTAVIS PHARMA DEVELOPMENT CENTRE PRIVATE LIMITED	Director	25/06/2013	14/01/2013	-	Active	NO
6	U73100KA1999PTC025994	LOTUS LABS PRIVATE LIMITED	Director	28/06/2013	14/01/2013	-	Active	NO

Name :

Ronald Jeffrey Morrod

Designation :

Director

Address :

Flat No. 3rd and 4th, 1st and 2nd Floor, Unit No.3, Narayan Terraces, Union Park Road, Pali Hill, Bandra, Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

20.06.1957

Date of Appointment :

17.06.2013

Date of Cessing :

31.07.2013

DIN No.:

03139797

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	U24230MH2005PTC156968	WATSON PHARMA PRIVATE LIMITED	Director	22/01/2013	03/08/2010	-	Active	NO
2	U24230MH2004PTC148084	ACTAVIS PHARMA PRIVATE LIMITED	Director	28/06/2013	14/01/2013	-	Active	NO
3	U24219MH2006PTC165760	VIVIMED LABS (ALATHUR) PRIVATE LIMITED	Director	17/06/2013	14/01/2013	31/07/2013	Active	NO
4	U24239MH2006PTC163981	ACTAVIS PHARMA DEVELOPMENT CENTRE PRIVATE LIMITED	Director	25/06/2013	14/01/2013	-	Active	NO
5	U73100KA1999PTC025994	LOTUS LABS PRIVATE LIMITED	Director	28/06/2013	14/01/2013	-	Active	NO

Name :

Mrs. Rashmi Ranjan Patra

Designation :

Director

Address :

Flat No. 2, Malvika Apartment, Plot No. 13/6, 1st Cross Street, Indira Nagar, Adyar, Chennai – 600020, Tamilnadu, India

Date of Birth/Age :

02.04.1962

Qualification :

B Pharm, MMS

Date of Appointment :

17.06.2013

Date of Cessing :

11.12.2013

DIN No.:

06472839

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	U24219MH2006PTC165760	VIVIMED LABS (ALATHUR) PRIVATE LIMITED	Director	17/06/2013	14/01/2013	11/12/2013	Active	NO

NOTE:

3 of the Directors has been ceased to hold the operations.

KEY EXECUTIVES

Name :	V. Rajasekaran
Designation :	VP - Quality Affairs and Compliance
Date of Birth/Age :	48 Years
Qualification :	BSc, Chemistry, PGDAC, PGDBA

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 17.06.2013

Names of Shareholders	No. of Shares	% of Shares Held
Actavis Holding Asia BV, Netherlands	65875188	100.00
Actavis Dutch Holding BV, Netherlands	1	0.00
Total	65875189	100.00

AS ON 17.06.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Solid Oral Dosage forms (Tablets and Capsules) and Active Pharma Ingredients.

PRODUCTION STATUS (AS ON 31.12.2011)

Particulars	Installed Capacity	Actual Production
Formulation	900 million Tablets	609 million tablets
API	10,000 kgs	3,265 kgs

* Installed capacity is as certified by the management and relied by the auditors as this is a technical matter.

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 :

· IDBI Bank

Greams Road Branch, No.37, P.M. Tower, Greams Road, Chennai - 600006, Tamilnadu, India

Facilities :

SECURED LOANS	31.12.2012 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	0.000	102.000
SHORT TERM BORROWINGS
Loans repayable on demand from banks	0.468	1.275
Total	0.468	103.275

Banking Relations :	--
Financial Institutions :	· Industrial Finance Corporation Of India Limited 5-9-13, Taramandal Complex, 8th Floor, Saifabad, Hyderabad - 500004, Andhra Pradesh, India · Tamilnadu Industrial Investment Corporation Limited No.692, Anna Salai, Nandanam, Chennai - 600035, Tamilnadu, India
Auditors :
Name :	B S R And Company Chartered Accountants
Address :	No. 10 Mahtma Gandhi Road, Next To Ranjith Hotel, Nungambhakkam, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AAAFB9852F
Ultimate holding company :	· Actavis hf, Iceland (up to October 31, 2012) Watson Pharmaceuticals Inc, USA (from November 1, 2012)
Holding Company :	Actavis Holdings Asia BV, Netherlands
Fellow subsidiaries :	· Actavis Group PTC ehf Actavis Elizabeth LLC Actavis Malta Limited Actavis Group hf Medis Ehf Actavis Pharma Development Centre Private Limited Lotus Labs Private Limited [U73100KA1999PTC025994] Actavis Pharma Private Limited [U24230MH2004PTC148084]

CAPITAL STRUCTURE

AS ON 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
70,000,000	Equity Shares	Rs. 10/- each	Rs. 700.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
65,875,189	Equity Shares	Rs. 10/- each	Rs. 658.752 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	658.752	658.752
(b) Reserves & Surplus	829.348	858.161
(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)	1,488.100	1,516.913
(3) Non-Current Liabilities
(a) long-term borrowings	400.468	103.275
(b) Deferred tax liabilities (Net)	0.000	38.997
(c) Other long term liabilities	14.443	0.000
(d) long-term provisions	84.443	15.549
Total Non-current Liabilities (3)	499.354	157.821
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	145.531	248.022
(c) Other current liabilities	18.213	215.699
(d) Short-term provisions	2.599	31.841
Total Current Liabilities (4)	166.343	495.562
TOTAL	2,153.797	2,170.296
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	824.856	987.708
(ii) Intangible Assets	47.987	113.964
(iii) Capital work-in-progress	0.000	56.889
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.034	0.000
(d) Long-term Loan and Advances	14.195	12.712
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	887.072	1,171.273
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	181.280	427.695
(c) Trade receivables	919.587	415.435
(d) Cash and cash equivalents	32.125	38.049
(e) Short-term loans and advances	132.296	102.813
(f) Other current assets	1.437	15.031
Total Current Assets	1,266.725	999.023
TOTAL	2,153.797	2,170.296

SOURCES OF FUNDS		31.12.2010
SHAREHOLDERS FUNDS
1] Share Capital		649.004
2] Share Application Money		0.000
3] Reserves & Surplus		693.084
4] (Accumulated Losses)		(21.415)
NETWORTH		1320.673
LOAN FUNDS
1] Secured Loans		229.614
2] Unsecured Loans		50.000
TOTAL BORROWING		279.614
DEFERRED TAX LIABILITIES		20.539
TOTAL		1620.826
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1007.886
Capital work-in-progress		153.142
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	272.331
	Sundry Debtors	212.995
	Cash & Bank Balances	0.925
	Other Current Assets	0.000
	Loans & Advances	270.862
Total Current Assets		757.113
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	283.481
	Other Current Liabilities	11.862
	Provisions	1.972
Total Current Liabilities		297.315
Net Current Assets		459.798
MISCELLANEOUS EXPENSES		0.000
TOTAL		1620.826

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012	31.12.2011	31.12.2010
	SALES
		TOTAL	1821.000	1530.000	847.000
Less	EXPENSES
		TOTAL	1682.000	1145.000	721.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		139.000	385.000	126.000
Less/ Add	DEPRECIATION/ AMORTISATION		122.000	120.000	92.000
	PROFIT/ (LOSS) BEFORE TAX		17.000	265.000	34.000
Less	TAX		46.000	98.000	16.000
	PROFIT/ (LOSS) AFTER TAX		(29.000)	167.000	18.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		146.000	(21.000)	(39.000)
	BALANCE CARRIED TO THE B/S		117.000	146.000	(21.000)
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	1732.818	1396.106	761.069
		Income from product development activities	117.950	144.253	74.688
		Market Support Revenue	0.000	0.000	5.532
		Recovery of expenses	114.464	35.456	276.751
	TOTAL EARNINGS		1965.232	1575.815	1118.040
	IMPORTS
		Raw Materials	340.082	288.217	439.619
		Packing Material	16.806	9.833	5.876
		Capital Goods	7.510	45.336	67.301
	TOTAL IMPORTS		364.398	343.386	512.796
	Earnings/ (Loss) Per Share (Rs.)		(0.44)	2.54	NA

KEY RATIOS

PARTICULARS		31.12.2012	31.12.2011	31.12.2010
PAT / Total Income	(%)	(1.59)	10.92	2.13
Return on Total Assets (PBT/Total Assets}	(%)	0.79	12.52	1.93
Return on Investment (ROI) (PBT/Networth)		0.01	0.17	0.03
Debt Equity Ratio (Total Debt/Networth)		0.27	0.07	0.21
Current Ratio (Current Asset/Current Liability)		7.62	2.02	2.55

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012
	(Rs. in Millions)	(Rs. in Millions)
Share Capital	658.752	658.752
Reserves & Surplus	858.161	829.348
Net worth	1,516.913	1,488.100
long-term borrowings	103.275	400.468
Short term borrowings	0.000	0.000
Total borrowings	103.275	400.468
Debt/Equity ratio	0.068	0.269

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2010	31.12.2011	31.12.2012
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
TOTAL SALES	847.000	1530.000	1821.000
		80.638	19.020

NET PROFIT MARGIN

Net Profit Margin	31.12.2010	31.12.2011	31.12.2012
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Sales	847.000	1530.000	1821.000
Profit	18.000	167.000	(29.000)
	2.13%	10.92%	-1.59%

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10456454	28/10/2013 *	1,000,000,000.00	IFCI LIMITED	5-9-13, TARAMANDAL COMPLEX, 8TH FLOOR, SAIFABAD, HYDERABAD - 500004, ANDHRA PRADESH, INDIA	B88317672

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.12.2012 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from others	400.000	0.000
Total	400.000	0.000

CHANGE OF ADDRESS:

The Registered office of the company has been shifted from 21-22, Kalpataru Square, Kondivita Lane, Off Andheri Kurla Road, Andheri (East), Mumbai - 400059, Maharashtra, India to the present address w.e.f 12.09.2013.

BACKGROUND

Actavis Pharma Manufacturing Private Limited (‘Actavis India’ / ‘Company’) was incorporated on November 23, 2006. The Company was a part of Actavis Group of Companies until October 31, 2012, after which Watson Pharmaceuticals Inc. took over the Actavis Group. In respect of the formulation business, the Company is primarily engaged in the manufacturing and sale of solid oral dosage forms (tablets and capsules) for its group companies outside India. In respect of the Active Pharma Ingredients (API) business, the Company is engaged in the manufacturing and sale of API to group companies outside India.

OPERATIONS

SOD DIVISION

This facility manufactured altogether 841 million units of tablets and capsules consisting of Donepezil, Gabapentin, Losartan Potassium, Pramipexole, Lorazepam and Valacyclovir. Total volume exported was 856 million units valuing INR 1,298 million.

The facility also continued with product transfer services for the Group to file for approvals from US regulatory authorities for products to be manufactured in the coming years. Exhibit batches for twelve products were completed and five applications were filed by the Group with USFDA. USFDA approved one new product for commercial manufacture at Alathur for supplies to US.

API DIVISION

This facility achieved commercial sale of 768 kg of API valuing INR 190 Million to Group companies.

During the year, the plant has not filed any DMF with USFDA. Your company now owns twenty two US DMFs and six EU DMFs. During the year scale up and capacity augmentation exercise has been completed for one product.

OUTLOOK FOR 2013

The Company’s SOD Division is planning for the commercial production of around 3 products including the existing products and targeting a sales volume of 550 million units during 2013,

As part of Global restructuring exercise, the Company has transferred its API business on slum sale basis on May 6th 2013 situated at Plot No. 16, 17, 31 and 32, SIDCO Pharmaceutical Complex, Alathur, Kanchipuram District -603110, Tamilnadu, India to Nuray Chemical Private Limited, a Company incorporated under the Companies Act, 1956, and having its office at Plot No. 111, SIDCO Industrial Estate, Kakkalur, Thiruvallur District 602003, Tamilnadu, India.

On 31st October, 2012, Watson Pharmaceuticals, Inc. (Watson) have successfully completed the acquisition of Actavis Group, creating the third largest global generics company and also decided to adopt a new global name “Actavis” for the combined entity with effect from 2013.

CONTINGENT LIABILITIES:

Particulars	31.12.2012 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
(a) Claims against the Company not acknowledged as debts
Excise related matters	9.884	9.727
Sales tax related matters	36.272	0.243
Labor law related matters	2.132	0.000
Total	48.288	9.970

FIXED ASSETS:

· Land

Buildings

Plant and equipment

Furniture and fixtures

Vehicles

Motor vehicles

Office equipment

Computer equipments

Goodwill

Computer software

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. 62.28
UK Pound	1	Rs. 103.67
Euro	1	Rs. 85.18

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	BVA

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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.