MIRA INFORM REPORT

Report Date :

18.01.2014

IDENTIFICATION DETAILS

Name :	KAPSONS INDUSTRIES LIMITED (w.e.f.06.03.1996)
Formerly Known As :	KAPSONS ELECTRO-STAMPINGS PRIVATE LIMITED
Registered Office :	G T Road, Suranussi, Jalandhar – 144027, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.02.1987
Com. Reg. No.:	16-007303
Capital Investment / Paid-up Capital :	Rs. 400.586 Millions
CIN No.: [Company Identification No.]	U31909PB1987PLC007303
TAN No.: [Tax Deduction & Collection Account No.]	JLDK00049A
PAN No.: [Permanent Account No.]	AAACK9887G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Stamping, Aluminium Dye Cast Components used for Electrical and Auto Industries.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 5300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears dip in the profit of the company during 2013. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

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

ECGC Country Risk Classification List – 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 : B+
Rating Explanation	Have high risk of default.
Date	August 13, 2013

Rating Agency Name	CARE
Rating	Short term Bank facilities : A4
Rating Explanation	Have minimal degree of safety and carry very high credit risk
Date	August 13, 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.

LOCATIONS

Registered Office :	G T Road, Suranussi, Jalandhar – 144027, Punjab, India
Tel. No.:	91-181-2670900/ 5066253
Fax No.:	91-181-2671901/ 5066328
E-Mail :	anujoffice2000@yahoo.com info@kapsonsindustries.com
Website :	http://www.kapsonsindustries.com

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Narinder Kumar Sehgal

Designation :

Managing director

Address :

682-683, Model Town, Jalandhar, Punjab, India

Date of Birth/Age :

03.08.1958

Qualification :

B. Com

Experience :

26 Years

Date of Appointment :

01.04.2011

PAN No.:

AFRPS3702B

DIN No.:

00232034

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	U31909PB1987PLC007303	KAPSONS INDUSTRIES LIMITED	Managing director	01/04/2011	13/02/1987	Active	NO
2	U29303PB1990PTC010595	KAPSONS INSULATIONS PRIVATE LIMITED	Managing director	16/08/2011	31/07/1990	Active	NO
3	U26943RJ1991PTC006009	KAPSONS CEMENT PRIVATE LIMITED	Director	27/05/1991	27/05/1991	Dormant	NO
4	U24231PB1993PTC013781	KAPSONS RESEARCH LABOROTRIES PRIVATE LIMITED	Director	04/10/1993	04/10/1993	Strike off	NO
5	U29305PB1999PLC022134	KAPSONS STAMPINGS LIMITED	Director	13/01/1999	13/01/1999	Under Process of Striking off	NO
6	U22219PB2001PTC024725	P.S.PRINTERS PRIVATE LIMITED	Director	19/10/2001	19/10/2001	Strike off	NO

Name :

Mr. Surinder Kumar Sehgal

Designation :

Whole-time director

Address :

682-683, Model Town, Jalandhar, Punjab, India

Date of Birth/Age :

18.03.1949

Qualification :

B. Tech

Experience :

26 Years

Date of Appointment :

01.04.2011

PAN No.:

AFRPS3703A

DIN No.:

00232057

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	U92111PB1949NPL001569	NORTHERN INDIA MOTION PICTURES ASSOCIATION	Director	20/06/1973	20/06/1973	Active	NO
2	U31909PB1987PLC007303	KAPSONS INDUSTRIES LIMITED	Whole-time director	01/04/2011	13/02/1987	Active	NO
3	U29303PB1990PTC010595	KAPSONS INSULATIONS PRIVATE LIMITED	Director	16/08/2011	31/07/1990	Active	NO
4	U26943RJ1991PTC006009	KAPSONS CEMENT PRIVATE LIMITED	Director	27/05/1991	27/05/1991	Dormant	NO
5	U24231PB1993PTC013781	KAPSONS RESEARCH LABOROTRIES PRIVATE LIMITED	Director	04/10/1993	04/10/1993	Strike off	NO
6	U29305PB1999PLC022134	KAPSONS STAMPINGS LIMITED	Director	13/01/1999	13/01/1999	Under Process of Striking off	NO

Name :

Mrs. Sunita Sikka

Designation :

Director

Address :

C-3/61 , Janakpuri, New Delhi, India

Date of Birth/Age :

13.01.1956

Qualification :

B.A

Date of Appointment :

21.02.2005

DIN No.:

02547964

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	U29303PB1990PTC010595	KAPSONS INSULATIONS PRIVATE LIMITED	Director	31/07/1990	31/07/1990	01/11/2013	Active	NO
2	U31909PB1987PLC007303	KAPSONS INDUSTRIES LIMITED	Director	21/02/2005	21/02/2005	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Equity Shareholders	No. of Shares
Surinder Kumar Sehgal	11447910
Narinder Kumar Sehgal	11467910
Sangeeta Sehgal	114200
Anita Sehgal	114200
Sunita Sikka	400
Sankalp Vinimay Private Limited, India	5304000
B. D. Finvest Private Limited, India	1020000
Total	29468620

Names of Preference Shareholders	No. of Shares
Surinder Kumar Sehgal	3625000
Narinder Kumar Sehgal	3649800
Sangeeta Sehgal	1670000
Anita Sehgal	1645200
Total	10590000

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	21.46
Directors or relatives of directors	78.54
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Stamping, Aluminium Dye Cast Components used for Electrical and Auto Industries.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Punjab National Bank

Civil Lines, Jalandhar - 144001, Punjab, India

· Axis Bank Limited

Opposite Mini Secretariat, Ladowali Road, Jalandhar - 144001, Punjab, India

· State Bank Of India

SME Branch, Civil Lines, Jalandhar - 144001, Punjab, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	220.295	301.341
SHORT TERM BORROWINGS
Other loans and advances	1082.509	903.884
Total	1302.804	1205.225

Banking Relations :	--
Financial Institutions :	· Punjab Reliable Investments Private Limited 16, Defence Colony, Jalandhar, Punjab - 144001, Punjab, India · PKF Finance Limited 317, New Jawahar Nagar, Jalandhar, Jalandhar - 144001, Punjab, India · Punjab Kashmir Finance Limited 16 Defence Colony, Jalandhar - 144001, Punjab, India · Religare Finvest Limited D3, P3b, District Centre, Saket, New Delhi - 110017, India · Intec Capital Limited 701, Manjusha, 57 Nehru Place, New Delhi - 110019, India
Auditors :
Name :	S.K. Vatta and Company Chartered Accountants
Address :	Khanna Building, Milap Chowk , Jalandhar, Punjab, India
Tel. No.:	91-181-4616833
Fax No.:	91-181-4616833
E-Mail :	vatta_jal@hotmail.com
Income-tax PAN of auditor or auditor's firm :	AAWPV0180G
Associates :	· Kapsons Electro Stampings · Kapsons Insulations Private Limited [U29303PB1990PTC010595]
Subsidiary Company :	· B.D. Finvest Private Limited [U65993PB1994PTC033371] · Sanklap Vinimay Private Limited [U51909WB2004PTC100629] · Kapsons Insulations Private Limited [U29303PB1990PTC010595]

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
29,900,000	Equity Shares	Rs. 10/- each	Rs. 299.000 Millions
12,600,000	Preference Shares	Rs. 10/- each	Rs. 126.000 Millions
	Total		Rs. 425.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29,468,620	Equity Shares	Rs. 10/- each	Rs. 294.686 Millions
10,590,000	Preference Shares	Rs. 10/- each	Rs. 105.900 Millions
	Total		Rs. 400.586 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	400.586	379.296	162.598
(b) Reserves & Surplus	912.208	794.797	817.237
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	23.000	53.226	83.226
Total Shareholders’ Funds (1) + (2)	1335.794	1227.319	1063.061
(3) Non-Current Liabilities
(a) long-term borrowings	251.724	355.431	408.041
(b) Deferred tax liabilities (Net)	62.456	65.910	55.004
(c) Other long term liabilities	89.051	12.947	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	403.231	434.288	463.045
(4) Current Liabilities
(a) Short term borrowings	1082.509	903.884	936.525
(b) Trade payables	560.199	555.042	363.274
(c) Other current liabilities	280.402	306.711	214.488
(d) Short-term provisions	31.000	34.710	52.574
Total Current Liabilities (4)	1954.110	1800.347	1566.861
TOTAL	3693.135	3461.952	3092.967
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1624.694	1594.536	1465.452
(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	42.995	39.495	34.495
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.921	3.515	2.490
(e) Other Non-current assets	0.770	0.860	0.000
Total Non-Current Assets	1672.380	1638.406	1502.437
(2) Current assets
(a) Current investments	87.974	67.423	5.682
(b) Inventories	550.219	600.470	703.290
(c) Trade receivables	1159.143	910.442	613.652
(d) Cash and cash equivalents	105.711	123.665	115.995
(e) Short-term loans and advances	79.486	82.240	79.011
(f) Other current assets	38.222	39.306	72.900
Total Current Assets	2020.755	1823.546	1590.530
TOTAL	3693.135	3461.952	3092.967

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	3343.646	3584.595	3248.831
		Other Income	14.095	10.583	12.632
		TOTAL (A)	3357.741	3595.178	3261.463
Less	EXPENSES
		Cost of materials consumed	2072.588	2263.967	2213.179
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	9.560	18.045	(24.252)
		Employee benefit expense	147.250	162.320	137.830
		Other expenses	719.358	693.193	528.866
		Exceptional items	0.006	0.006	0.000
		Extraordinary items	15.215	0.000	0.003
		TOTAL (B)	2963.977	3137.531	2855.626
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		393.764	457.647	405.837
Less	FINANCIAL EXPENSES (D)		294.768	314.300	226.635
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		98.996	143.347	179.202
Less/ Add	DEPRECIATION/ AMORTISATION (F)		87.878	81.065	71.567
	PROFIT BEFORE TAX (E-F) (G)		11.118	62.282	107.635
Less	TAX (H)		(3.453)	24.421	33.218
	PROFIT AFTER TAX (G-H) (I)		14.571	37.861	74.417
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	US$ 1255424.31 Euro 435947.09	US$ 970804.36 Euro 682902.78	US$ 496044.13 Euro 744262.20
	IMPORTS
		Raw Materials and Others	US$ 856670.90 Euro 856670.90	US$ 2317679.80 Euro 174698.50	US$ 2512662.71
		Capital Goods	Nil Nil	US$ 468600.00 Euro 16627.00	US$ 742775.00
	Earnings Per Share (Rs.)		0.53	1.38	4.58

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.43	1.05	2.28
Net Profit Margin (PBT/Sales)	(%)	0.33	1.74	3.31
Return on Total Assets (PBT/Total Assets}	(%)	0.30	1.82	3.52
Return on Investment (ROI) (PBT/Networth)		0.01	0.05	0.10
Debt Equity Ratio (Total Debt/Networth)		1.00	1.03	1.26
Current Ratio (Current Asset/Current Liability)		1.03	1.01	1.02

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	10391614	15/12/2012	12,500,000.00	PUNJAB RELIABLE INVESTMENTS PRIVATE LIMITED	16 DEFENCE COLONY, JALANDHAR - 144001, PUNJAB, INDIA	B63985931
2	10391492	14/12/2012	5,000,000.00	PKF FINANCE LIMITED	317, NEW JAWAHAR NAGAR, JALANDHAR, JALANDHAR - 144001, PUNJAB, INDIA	B63938450
3	10391486	14/12/2012	7,500,000.00	PUNJAB KASHMIR FINANCE LIMITED	16 DEFENCE COLONY, JALANDHAR - 144001, PUNJAB, INDIA	B63935878
4	10377429	14/09/2012	50,000,000.00	AXIS BANK LIMITED	OPPOSITE MINI SECRETARIAT, LADOWALI ROAD, JALANDHAR - 144001, PUNJAB, INDIA	B58450644
5	10362240	27/06/2012	265,000.00	RELIGARE FINVEST LIMITED	D3, P3B, DISTRICT CENTRE, SAKET, NEW DELHI - 110017, INDIA	B42287656
6	10362182	27/06/2012	10,439,000.00	RELIGARE FINVEST LIMITED	D3, P3B, DISTRICT CENTRE, SAKET, NEW DELHI - 110017, INDIA	B42257709
7	10357085	28/05/2012	5,473,000.00	INTEC CAPITAL LIMITED	701, MANJUSHA, 57 NEHRU PLACE, NEW DELHI - 110019, INDIA	B40061582
8	10329517	16/01/2012	6,500,000.00	PKF FINANCE LIMITED	317, NEW JAWAHAR NAGAR, JALANDHAR, JALANDHAR - 144001, PUNJAB, INDIA	B29807179
9	10329511	16/01/2012	13,500,000.00	PKF FINANCE LIMITED	317, NEW JAWAHAR NAGAR, JALANDHAR, JALANDHAR - 144001, PUNJAB, INDIA	B29806320
10	10232954	19/06/2010	95,000,000.00	STATE BANK OF INDIA	SCB, CIVIL LINES, JALANDHAR - 144103, PUNJAB, INDIA	A91757294
11	10216800	30/11/2010 *	365,000,000.00	CANARA BANK	B M C CHOWK., JALANDHAR - 144001, PUNJAB, INDIA	B01770833
12	10096539	04/09/2012 *	199,000,000.00	STATE BANK OF INDIA	SME BRANCH, CIVIL LINES, JALANDHAR - 144001, PUNJAB, INDIA	B60912664
13	90172096	12/09/2012 *	1,390,000,000.00	STATE BANK OF INDIA	SME BRANCH, CIVIL LINES, JALANDHAR - 144001, PUNJAB, INDIA	B58488313
14	90169441	30/03/2001 *	200,500,000.00	STATE BANK OF INDIA	SPLD. COMMERCIAL BRANCH, CIVIL LINES, JALANDHAR, PUNJAB, INDIA	-
15	90170998	17/10/2000 *	140,400,000.00	STATE BANK OF INDIA	SPLD. COMMERCIAL BRANCH, CIVIL LINES, JALANDHAR, PUNJAB, INDIA	-
16	90171929	28/04/1998	128,000,000.00	STATE BANK OF INDIA	SPLD. COMMERCIAL BRANCH, CIVIL LINES, JALANDHAR, PUNJAB, INDIA	-

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Loans and advances from related parties	31.429	54.090
Total	31.429	54.090

MANAGEMENT DISCUSSION AND ANALYSIS

INDIAN STAMPING INDUSTRY - AN OVERVIEW

The Stamping Industry is an integral part of manufacturing sector of Indian Economy. The effect of global economy movements impacts the economy. The improvement has been seen in last three years after the global meltdown. Indian casting industry is quit hopeful for exertive growth in current as well as coming year.

COMPANY UPDATE

Kapsons Industries Limited is a Company engaged in manufacturing of Stamping, Aluminium Dye Cast Components used for Electrical & Auto Industries for manufacturing of Fans, Motors, Alternators, Various OVMs, Indian Railways etc. for various electrical equipments.

FINANCIAL AND OPERATIONAL PERFORMANCE

With the constant efforts and devotion of its management and workers, the Company has decreased his sales turnover of Rs. 3343.600 Millions as compared to last years figure of Rs. 3584.500 Millions, recording a decrease of 06.72% over the previous financial year. The net profits of the Company after tax are Rs. 14.500 Millions in comparison to Rs. 37.800 Millions during the last year’s net profits, recording a decrease of 61.64% over the previous financial year, The directors are expecting and putting constant efforts to further improve / increase the production and sales and achieve higher profitability in the coming years.

INDUSTRY FUTURE AND COMPANY RESPONSE

Since, the Company is producing Industrial products to be used by electrical equipment manufacturers, Auto Industry, and the some items are consumed directly by the end use customers and Industry. Many of its items are used in the Electrical Equipments or Plant & Machinery, directly used in the development of Infrastructure. As Infrastructure growth is good in India, the requirement of the Company product will be always be in demand. Even in the Auto Industry, is also good for growth, the demand for its pressurized die components will be maintained over the number of coming year. The Company is making constant changes in its system of production per the requirements of the Customers with respect to the quality, cost and timely delivery of products. Thus, taking it as a positive indicator the Company’s response has been to broad base its production level. New machineries continue to be installed and further machinery is proposed & planned to be installed to meet the rising demands in future.

FUTURE OUTLOOK / EXPANSION

The Company has achieved the highest ever sales during the year since inception of the company. Further, considering the demand of the customers, the Company is in process to enlarge its production base and for that purpose further new machinery is proposed to be installed. The company is regularly conversing with its bankers and other financial institutions to provide finance for the expansion in production facilities and it is expected that by proposed induction f new machinery and by up gradation of technology, the production level and sales would be further improved during the current year. The Company is also making lot of investments and value additions of the existing products to improve quality and customer dependency on its products.

CONTINGENT LIABILITIES:

Particulars	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
a) Towards Bank Guarantees/letter of credits In favour of the suppliers etc.	189.050	189.050
b) Towards disputed Excise tax demands for which the Company has preferred Appeals/raised objections with the appropriate authorities.	23.692	25.625
c) Towards disputed service tax demands for which the Company has preferred Appeals/raised objections with the appropriate authorities.	0.323	0.000
d) Towards disputed VAT demands for which the Company has preferred Appeals/raised objections with the appropriate authorities.	4.132	13.626
e) Towards unpaid dividend on 9% cumulative Redeemable Preferences shares	9.531	9.531
f) Towards corporate guarantee to bank of its Subsidiary company	199.000	199.000
Total	425.728	436.832

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

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. 61.35
UK Pound	1	Rs. 100.21
Euro	1	Rs. 83.52

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		28

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.