MIRA INFORM REPORT

Report Date :

08.01.2014

IDENTIFICATION DETAILS

Name :	SARADHA PAPERS AND BOARDS PRIVATE LIMITED (w.e.f. 06.12.2005)
Formerly Known As :	VAIKGUNTH DUPLEX BOARD MILLS PRIVATE LIMITED
Registered Office :	122-1, Venkatasamy Road, Siddhapudur, Coimbatore – 641044, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.07.2002
Com. Reg. No.:	18-010260
Capital Investment / Paid-up Capital :	Rs. 147.700 Millions
CIN No.: [Company Identification No.]	U02101TZ2002PTC010260
TAN No.: [Tax Deduction & Collection Account No.]	CMBS09264D
PAN No.: [Permanent Account No.]	AAJCS5518D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Paper Boards.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 1390000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The management has failed to file its financial with government department for the year 2013. As per available financial of 2012, Reserves of the company appears to be low. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: “BB+”
Rating Explanation	Moderate risk of default and high credit risk.
Date	28.10.2013

Rating Agency Name	CARE
Rating	Short term bank facilities: “A4”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	28.10.2013

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 DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-422-4210993)

LOCATIONS

Registered Office :	122-1, Venkatasamy Road, Siddhapudur, Coimbatore – 641044, Tamilnadu, India
Tel. No. :	Not Available
Fax No. :	Not Available
E-Mail :	spbpl@sancharnet.in finance@saradhaduplexboard.in
Website :	http://saradhaduplexboard.in
Adminstrative Office :	Senthel Towers, 6th Floor, 1078, Avanashi Road, Coimbatore – 641018, Tamilandu, India
Tel. No.:	91-422-4210993/ 4210994
Fax No.:	91- 422-2520994
E-Mail :	spbduplex1@gmail.com spbduplex1@rediffmail.com spbpl@saradhaduplexboard.in
Factory :	S.F.No.106, Ikkarai Thathapalli Village, Sathy Taluk, Erode - 638 451, Tamilnadu, India
Tel. No. :	91- 4295-241315/ 292415

DIRECTORS

As on 18.07.2012

Name :

Mr. Arumugasamy Senthilkumar

Designation :

Managing Director

Address :

213, Race Course Road, Coimbatore – 641018, Tamilnadu, India

Date of Birth/Age :

23.07.1980

Date of Appointment :

24.10.2005

DIN No. :

01629733

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	U45201TZ1989PTC003035	SENTHEL BUILDING MATERIAL MANUFACTURING COMPANY PRIVATE LIMITED	Managing director	19/11/2011	25/09/1998	Active	NO
2	U24292TZ1986PTC001725	SENTHIL FRUIT PRODUCTS PRIVATE LIMITED	Managing director	10/07/2002	10/07/2002	Active	NO
3	U02101TZ2002PTC010260	SARADHA PAPERS AND BOARDS PRIVATE LIMITED	Managing director	20/06/2011	24/10/2005	Active	NO
4	L17111TZ1938PLC000079	KASTHURI MILLS LIMITED	Director	31/08/2006	31/08/2006	Active	NO
5	U01134TZ1992PTC003775	VEE YEL FRUIT PRODUCTS PRIVATE LIMITED	Managing director	19/11/2011	19/11/2011	Active	NO
6	U27109TZ1990PTC002721	SENTHIL STEEL COMPANY PRIVATE LIMITED	Managing director	19/11/2011	19/11/2011	Active	NO
7	U15131TZ1991PTC003423	SENTHIL PAPAIN AND FOOD PRODUCTS PRIVATE LIMITED	Managing director	19/11/2011	19/11/2011	Active	NO
8	U45200TZ2012PTC017970	SENTHIL INFRA DEVELOPERS PRIVATE LIMITED	Director	02/03/2012	02/03/2012	Active	NO
9	U02710TZ2003PTC010760	ROSVAR IRON AND POWER Private LIMITED	Director	28/09/2012	23/03/2012	Active	NO
10	U21090TZ2012PTC018772	SENTHIL PAPER PRODUCT PRIVATE LIMITED	Director	18/09/2012	18/09/2012	Active	NO
11	U40106TZ2013PTC019209	SENTHIL ENERGY PRIVATE LIMITED	Director	27/02/2013	27/02/2013	Active	NO
12	U02101TZ1995PTC006289	SRI KARPAGA VINAYAGA PAPERS PRIVATE LIMITED	Additional director	17/04/2013	17/04/2013	Active	NO
13	U27310TZ1996PTC006850	M P S STEEL CASTINGS PRIVATE LIMITED	Additional director	01/05/2013	01/05/2013	Active	NO

Name :

Mr. Marappa Gounder Palanisamy

Designation :

Director

Address :

Door No.134, Syrian Condoth Cly, Coimbatore – 641044, Tamilnadu, India

Date of Birth/Age :

15.04.1951

Date of Appointment :

12.10.2005

DIN No. :

01865892

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	U27109TZ1990PTC002721	SENTHIL STEEL COMPANY PRIVATE LIMITED	Director	28/05/1990	28/05/1990	Active	NO
2	U02101TZ2002PTC010260	SARADHA PAPERS AND BOARDS PRIVATE LIMITED	Director	12/10/2005	12/10/2005	Active	NO
3	L17111TZ1938PLC000079	KASTHURI MILLS LIMITED	Director	31/08/2006	31/08/2006	Active	NO
4	U14297TZ2009PTC015545	THANGAM MINERALS PRIVATE LIMITED	Director	21/10/2009	21/10/2009	Active	NO
5	U27310TZ1996PTC006850	M P S STEEL CASTINGS PRIVATE LIMITED	Additional director	10/09/2013	10/09/2013	Active	NO

Name :

Mr. Olaikaragowder Arumugasamy

Designation :

Additional director

Address :

D. No.107-A, Senguptha, St. Ramnagar, Coimbatore – 641009,
Tamilnadu, India

Date of Birth/Age :

15.11.1940

Date of Appointment :

20.06.2011

DIN No. :

02172975

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	U24292TZ1986PTC001725	SENTHIL FRUIT PRODUCTS PRIVATE LIMITED	Director	21/01/1986	21/01/1986	Active	NO
2	U45201TZ1989PTC003035	SENTHEL BUILDING MATERIAL MANUFACTURING COMPANY PRIVATE LIMITED	Director	19/11/2011	14/09/1989	Active	NO
3	U27109TZ1990PTC002721	SENTHIL STEEL COMPANY PRIVATE LIMITED	Director	28/05/1990	28/05/1990	Active	NO
4	U15131TZ1991PTC003423	SENTHIL PAPAIN AND FOOD PRODUCTS PRIVATE LIMITED	Director	04/09/1991	04/09/1991	Active	NO
5	U01134TZ1992PTC003775	VEE YEL FRUIT PRODUCTS PRIVATE LIMITED	Director	02/06/1992	02/06/1992	Active	NO
6	U02101TZ2002PTC010260	SARADHA PAPERS AND BOARDS PRIVATE LIMITED	Additional director	20/06/2011	20/06/2011	Active	NO
7	U45200TZ2012PTC017970	SENTHIL INFRA DEVELOPERS PRIVATE LIMITED	Director	02/03/2012	02/03/2012	Active	NO
8	U21090TZ2012PTC018772	SENTHIL PAPER PRODUCT PRIVATE LIMITED	Director	18/09/2012	18/09/2012	Active	NO
9	U40106TZ2013PTC019209	SENTHIL ENERGY PRIVATE LIMITED	Director	27/02/2013	27/02/2013	Active	NO
10	U02101TZ1995PTC006289	SRI KARPAGA VINAYAGA PAPERS PRIVATE LIMITED	Additional director	17/04/2013	17/04/2013	Active	NO
11	U27310TZ1996PTC006850	M P S STEEL CASTINGS PRIVATE LIMITED	Additional director	24/08/2013	24/08/2013	Active	NO

Name :

Mr. Vetrivel Thukkanaickenpalayam Nanjaya

Designation :

Director

Address :

88, Rajiv Gandhi Nagar, Sowripalayam, Coimbatore – 641028, Tamilnadu, India

Date of Birth/Age :

07.05.1954

Date of Appointment :

12.10.2005

DIN No. :

03052930

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	U02101TZ2002PTC010260	SARADHA PAPERS AND BOARDS PRIVATE LIMITED	Director	12/10/2005	12/10/2005	Active	NO
2	U91900TZ2012PTC019043	INDIAN PRINT PARK PRIVATE LIMITED	Managing director	18/12/2012	18/12/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.07.2012

Names of Shareholders	No. of Shares
A.Senthil Kumar	12996667
O. Armugasamy	298333
M. Palanisamy	1412500
T.N. Vetrivel	62500
Total	14770000

As on 18.07.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Paper Boards.

Products :

Item Code No. (ITC Code)	Product Description
48052500	Paper Board

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Tamilnad Mercantile Bank Limited, Dr. Nanjappa Road Branch, Coimbatore - 641018, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks (Guarantee of all the property oweners and all the Directors of the Company)	5.449	3.029
SHORT TERM BORROWINGS
Loans repayable on demand from banks	19.520	30.055
Total	24.969	33.084

Banking Relations :	--
Auditors :
Name :	Vekam and Associates Chartered Accountants
Address :	9/1 B K R Nagar, Sathy Road, Gandhipuram, Coimbatore – 641012, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AQOPS2672N
Company in which Key Managerial Personnel can Exercise significant influence:	· Continental Packagings Kovai Graphers

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000,000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14,770,000	Equity Shares	Rs.10/- each	Rs. 147.700 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	147.700	65.400
(b) Reserves & Surplus	62.505	33.337
(c) Money received against share warrants	0.000	0.000
	0	0
(2) Share Application money pending allotment	136.342	2.355
Total Shareholders’ Funds (1) + (2)	346.547	101.092
(3) Non-Current Liabilities
(a) long-term borrowings	19.347	23.300
(b) Deferred tax liabilities (Net)	0.000	0.023
(c) Other long term liabilities	10.200	8.321
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	29.547	31.644
(4) Current Liabilities
(a) Short term borrowings	19.520	30.055
(b) Trade payables	25.423	42.663
(c) Other current liabilities	28.870	5.903
(d) Short-term provisions	0.534	0.168
Total Current Liabilities (4)	74.347	78.789
TOTAL	450.441	211.525
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	41.441	38.540
(ii) Intangible Assets	0.014	0.023
(iii) Capital work-in-progress	176.058	7.589
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	13.993	0.000
(d) Long-term Loan and Advances	121.029	109.712
(e) Other Non-current assets	0.247	0.507
Total Non-Current Assets	352.782	156.371
(2) Current assets
(a) Current investments
(b) Inventories	25.597	25.762
(c) Trade receivables	20.451	21.047
(d) Cash and cash equivalents	8.327	1.942
(e) Short-term loans and advances	43.280	6.403
(f) Other current assets	0.004	0.000
Total Current Assets	97.659	55.154
TOTAL	450.441	211.525

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		42.500
2] Share Application Money		2.295
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(62.599)
NETWORTH		(17.804)
LOAN FUNDS
1] Secured Loans		34.683
2] Unsecured Loans		11.261
TOTAL BORROWING		45.944
DEFERRED TAX LIABILITIES		0.000
TOTAL		28.140
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		35.757
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.427
	Sundry Debtors	27.958
	Cash & Bank Balances	0.972
	Other Current Assets	0.000
	Loans & Advances	4.228
Total Current Assets		78.585
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	56.135
	Other Current Liabilities	28.153
	Provisions	1.914
Total Current Liabilities		86.202
Net Current Assets		(7.617)
MISCELLANEOUS EXPENSES		0.000
TOTAL		28.140

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		TOTAL (A)	252.600	284.200	146.200
Less	EXPENSES
		TOTAL (B)	226.500	258.300	140.700
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.100	25.900	5.500
Less	FINANCIAL EXPENSES (D)		5.000	4.700	4.500
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.100	21.200	1.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.000	5.400	5.800
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		15.100	15.800	(4.800)
Less	TAX (H)		(14.100)	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		29.200	15.800	(4.800)
	IMPORTS
		Advance for Capital Assets	N.A.	104.334	N.A.
		Raw Materials	N.A.	5.605	N.A.
	TOTAL IMPORTS		N.A.	109.939	N.A.
	Earnings / (Loss) Per Share (Rs.)		1.97	2.41	(1.13)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	11.56	5.56	(3.28)
Return on Total Assets (PBT/Total Assets}	(%)	5.80	7.75	(4.20)
Return on Investment (ROI) (PBT/Networth)		0.04	0.16	0.27
Debt Equity Ratio (Total Debt/Networth)		0.11	0.53	(2.58)
Current Ratio (Current Asset/Current Liability)		1.31	0.70	0.91

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	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	No
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10413988	25/03/2013	2,052,000,000.00	TAMILNAD MERCANTILE BANK LIMITED	364 DR. NANJAPPA ROAD BRANCH, COIMBATORE, TAMIL N ADU - 641018, INDIA	B71507313
2	10315474	12/10/2011	4,813,500.00	INDIAN OVERSEAS BANK	1027 AVINASHI ROAD, NEAR VOC GROUND, PARK SQUARE BRANCH, COIMBATORE, TAMIL NADU - 641018, INDIA	B24457152
3	10183836	09/04/2013 *	30,500,000.00	TAMILNAD MERCANTILE BANK LIMITED	DR. NANJAPPA ROAD BRANCH, COIMBATORE, TAMIL NADU - 641018, INDIA	B72942378

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advances from related parties	13.898	20.271
Total	13.898	20.271

REVIEW OF OPERATIONS

During the year, the company has achieved Gross sales of Rs. 244.300 Millions (Rs.236.800 Millions) despite continuing power cut up to 50%. The company efficient operations helped them to close the profitable year with a Profit before Tax 15.100 Millions and Cash profit of Rs.21.100 Millions.

The company has installed Genset 500 KVA 2 no during the year end. Electricity Board now permitting to purchase third party power. They are therefore confident of achieving higher sales and profitability during the current financial year.

EXPANSION PROJECT

As already informed, The company is implementing an expansion project for manufacturing coated paper boards with 15 MW co-gen power plant for un interpreted power supply and cost savings. In view of the growing market potential for coated paper boards and to achieve the economies of scale, the Board has decided to add one 250 TPD plant and another 300 TPD plant, both to be commissioned during the financial year 2013-2014. The cost of project is estimated at Rs. 299.26 Crore with term loan component of Rs. 1990.000 Crores.

They have already imported part of the Plant and Machinery from Sweden. Further, the orders have been placed for most the other item required for expansion project. The building construction is under progress. They are in the process of obtaining term loan sanctions from banks which is in an advance stage.

With a highly experienced team, 600 tpd capacity and uninterrupted power supply, the capacity utilization in both the existing and new plants would be upto 90-95% enabling the company to achieve higher sales and profits. the Board wishes to make the company a major player in the paper industry in India in course of time in Paperboard segments.

INDUSTRY SCENERIO AND FUTURE OUTLOOK

Now days paper board product, are been used for packaging, as cups, plates etc, widely in Textile, Pharmaceutical, Cosmetics, Engineering, FMCG, snacks shops, cool drinks hall, Departmental Stores, Hotel and Marriage hall etc. Meanwhile, it is spread to inner middle and small cities including villages. The potential of the market is very large, it provides large market space for Paper products. Also, vital green dish wares and kitchen wares in 21st Century are paper cups, paper bowels, paper dinner case, paper cake trays and paper snack boxes.

The Company is currently producing uncoated paper board and it will be produce coated paperboard in the proposed expansion. Theirs is a growing economy with millions of people graduating to the middle income group every year and pushing up demand for their product. There is no large scale paper board capacity addition in India and there is no threat of cheap imports from China or the West. Hence the expanded capacity has ready market both domestic and exports.

FIXED ASSETS

] Tangible Assets

Land

Buildings

Plant and Equipment

Vehicles

Motor Vehicles

Office Equipment

Computer Equipments

Other Equipments

] Intangible Assets

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 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.62.38
UK Pound	1	Rs.102.25
Euro	1	Rs.84.97

INFORMATION DETAILS

Information Gathered by :	NYA
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	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.