MIRA INFORM REPORT

Report Date :

24.07.2014

IDENTIFICATION DETAILS

Name :	DUTRON POLYMERS LIMITED
Registered Office :	Dutron House, Near Mithakhali Underbridge, Navrangpura, Ahmedabad – 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.11.1981
Com. Reg. No.:	04-004786
Capital Investment / Paid-up Capital :	Rs.60.000 Millions
CIN No.: [Company Identification No.]	L25209GJ1981PLC004786
TAN No.: [Tax Deduction & Collection Account No.]	AHMD00520C
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of PVC Pipes and Fitting.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established company having a satisfactory track record. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal 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.

ECGC Country Risk Classification List – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Rasesh H. Patel
Designation :	Director
Contact No.:	91-79-26561849
Date :	23.07.2014

LOCATIONS

Registered Office :	Dutron House, Near Mithakhali Underbridge, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26561849
Fax No.:	91-79-26427522
E-Mail :	bba_201@yahoo.co.in dutronadl@sancharnet.in
Location :	Owned
Locality :	Commercial
Factory :	Block No. 642, At and Po. Hariyala , N. H 8, Taluka Kheda, District Kheda – 387411, Gujarat, India

DIRECTORS

Name :	Mr. Sudipbhai B. Patel
Designation :	Promoters and Executive Directors
Name :	Mr. Rasesh H. Patel
Designation :	Promoters and Executive Directors
Name :	Mr. Alpesh B. Patel
Designation :	Promoter and Non Executive Director
Name :	Mr. Praful C. Shah
Designation :	Independent and Non- Executive Director
Date of Birth/Age	79 Years
Qualification :	B. Com, LLM
Name :	Mr. Mitesh C. Shah
Designation :	Independent and Non- Executive Director
Date of Birth/Age	46 Years
Qualification :	Graduate
Date of Appointment :	31.05.2013

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2014

Category of Shareholder	Total No. of Shares	As a %
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1860950	31.02
Bodies Corporate	992125	16.54
Sub Total	2853075	47.55
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	865050	14.42
Sub Total	865050	14.42
Total shareholding of Promoter and Promoter Group (A)	3718125	61.97
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	13037	0.22
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	927479	15.46
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	935974	15.60
Any Others (Specify)	405385	6.76
Non Resident Indians	405353	6.76
Others	32	0.00
Sub Total	2281875	38.03
Total Public shareholding (B)	2281875	38.03
Total (A)+(B)	6000000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	6000000	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of PVC Pipes and Fitting.
Imports :
Products :	Raw Materials
Countries :	Korea
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

Not Divulged

Bankers :

· Corporation Bank, Navrangpura, Ahmedabad, Gujarat, India

· The Ahmedabad Mercantile Co-Operative Bank Limited, Navrangpura, Ahmedabad, Gujarat, India

· HDFC Bank Limited

· Bank of Baroda

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWINGS
Customers’ Security Deposits		2.635
SHORT TERM BORROWINGS
Loan Repayable on Demand
From Bank (OD A/c)
- AMCO Bank (No.499) (OD against Third Parties FD)		3.523
Total	NA	6.158

Banking Relations :	--
Auditors :
Name :	Baheti Bhadada and Associates Chartered Accountants
Address :	201, Shaily Complex, Behind Old Gujarat High Court, Ashram Road, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-27540294/ 64505297
Fax No.:	91-79-27544403
E-Mail :	bba_201@yahoo.co.in
Group Companies :	· Cosmofil Plastisack Private Limited · Dutron Plastics Limited · Dutron Plastics (Bharuch) · Dutron Polymers · Dura Vinyle Industries · Nippon Polymers Private Limited · Technoplast Engg. Company

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.60.000 Millions

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares (Out of which 300000 Equity Shares of Rs. 10/- each issued as Bonus Shares and 3000000 Equity Shares of Rs. 10/- each at premium of Rs. 10/- Each)	Rs.10/- each	Rs.60.000 Millions

(a) Details of Shareholders holding more than 5% share of the Company :

Particular	As at 31st March 2013
	Nos. of Shares	% held
Dutron Plastics Ltd	551325	9.19%
Nippon Polymers Pvt. Ltd	465050	7.75%
Sudip B. Patel	449800	7.50%
Alpesh B. Patel	440800	7.35%
Rasesh H. Patel	424000	7.07%
Patel Jagruti K.	413400	6.89%
Patel Kiritkumar N.	406300	6.77%
Kapila H. Patel	319800	5.33%

(b) There are no changes in Equity Share Capital during the year (2012-13 and 2011-12)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	60.000	60.000	60.000
(b) Reserves & Surplus	83.118	80.521	78.808
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	143.118	140.521	138.808
(3) Non-Current Liabilities
(a) long-term borrowings	62.115	59.091	74.086
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	62.115	59.091	74.086
(4) Current Liabilities
(a) Short term borrowings	45.016	50.023	13.458
(b) Trade payables	43.405	27.605	70.458
(c) Other current liabilities	12.399	12.022	11.109
(d) Short-term provisions	12.302	13.833	10.021
Total Current Liabilities (4)	113.122	103.483	105.046
TOTAL	318.355	303.095	317.940
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	72.729	81.178	92.953
(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	0.010	0.010	0.010
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	6.124	6.152	6.084
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	78.863	87.340	99.047
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	145.552	116.840	116.503
(c) Trade receivables	86.840	93.111	91.149
(d) Cash and cash equivalents	2.286	2.281	2.529
(e) Short-term loans and advances	4.814	3.523	8.712
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	239.492	215.755	218.893
TOTAL	318.355	303.095	317.940

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	850.737	835.302	616.738
	Other Income	1.665	1.665	1.060
	TOTAL (A)	852.402	836.967	617.798
Less	EXPENSES
	Cost of Materials Consumed	627.898	789.159	579.002
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(7.698)	(3.001)	(11.425)
	Employees benefits expense	5.772	4.900	5.084
	Other expenses	185.693	4.651	5.513
	TOTAL (B)	811.665	795.709	578.174
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	40.737	41.258	39.624
Less	FINANCIAL EXPENSES (D)	10.819	10.554	11.074
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	29.918	30.704	28.550
Less/ Add	DEPRECIATION/ AMORTISATION (F)	11.585	12.424	13.155
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	18.333	18.280	15.395
Less	TAX (H)	5.873	6.770	5.340
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	12.460	11.510	10.055
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	4.102	4.855	4.668
Less	APPROPRIATIONS
	Transfer to General Reserve		2.500	1.500
	Dividend		8.400	7.200
	Tax on Dividend		1.363	1.168
	BALANCE CARRIED TO THE B/S	NA	4.102	4.855
	Earnings / (Loss) Per Share (Rs.)	2.08	1.92	1.68

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	1.46	1.38	1.63
Net Profit Margin (PBT/Sales)	(%)	2.15	2.19	2.50
Return on Total Assets (PBT/Total Assets}	(%)	5.76	6.03	4.84
Return on Investment (ROI) (PBT/Networth)		0.13	0.13	0.11
Debt Equity Ratio (Total Debt/Networth)		0.75	0.78	0.63
Current Ratio (Current Asset/Current Liability)		2.12	2.08	2.08

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	60.000	60.000	60.000
Reserves & Surplus	78.808	80.521	83.118
Net worth	138.808	140.521	143.118
long-term borrowings	74.086	59.091	62.115
Short term borrowings	13.458	50.023	45.016
Total borrowings	87.544	109.114	107.131
Debt/Equity ratio	0.631	0.776	0.749

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	616.738	835.302	850.737
		35.439	1.848

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	616.738	835.302	850.737
Profit	10.055	11.510	12.460
	1.63%	1.38%	1.46%

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
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	No

HIGH COURT OF GUJARAT

TAX APPEAL No. 172 of 2007

Status : PENDING

( Converted from : ST/3709/2006 )

CCIN No : 001092200700172

Last Listing Date:

20/11/2007

Coram

HONOURABLE THE CHIEF JUSTICE Y.R.MEENA HONOURABLE MR.JUSTICE J.C.UPADHYAYA

S.NO.	Name of the Petitioner	Advocate On Record
1	COMMISSIONER OF INCOME TAX AHMEDABAD-I	MRS MAUNA M BHATT for: Appellant(s)  1

S.NO.	Name of the Respondant	Advocate On Record
1	DUTRON POLYMERS LIMITED	MR RK PATEL for :Opponent(s)  1

Presented On	: 04/12/2006	Registered On	: 04/12/2006
Bench Category	: DIVISION BENCH	District	: AHMEDABAD
Case Originated From	: THROUGH ADVOCATE	Listed	: 54 times
StageName	: FOR FINAL HEARING - TAX MATTERS

Classification	DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA
Act	INCOME-TAX ACT, 1961

---

Office Details

---

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	15/08/2007	VAKALATNAMA	MR RK PATEL ADVOCATE for RESPONDENT(s)  1	-	MR RK PATEL:1
2	15/08/2007	VAKALATNAMA	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	-	MRS MAUNA M BHATT:1
3	18/02/2008	VAKALATNAMA	MR RK PATEL ADVOCATE for RESPONDENT(s)  1	5	MR RK PATEL:1
4	06/12/2008	APPEARANCE NOTE	MRS MAUNA M BHATT ADVOCATE for PETITIONER(s)  1	-	MRS MAUNA M BHATT:1
Linked Matters

S. No.	CaseDetail	Status Name	Disposal Date	Action/Coram
1	TAX APPEAL/173/2007	PENDING	-	- HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE J.C.UPADHYAYA
2	TAX APPEAL/174/2007	PENDING	-	- HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE J.C.UPADHYAYA
Court Proceedings

S. No.	Notified Date	CourtCode	Board Sr. No.	Stage	Action	Coram
1	20/11/2007	1	-	FOR FINAL HEARING - TAX MATTERS	RULE/ADMIT	HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE J.C.UPADHYAYA
Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	Questions	Transferred	Download
1	TAX APPEAL/172/2007	HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE J.C.UPADHYAYA	18/12/2007	N	ORDER	-	Y	Download
Certified Copy

S. No.	ApplicantName	ApplicationType	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MR MANISH R BHATT	ORDINARY	19/12/2007	O/57493-57495/2007	18/12/2007	21/01/2008	23/01/2008	Delivered	ORDER

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWINGS
Loans From Directors		56.456
SHORT TERM BORROWINGS
From Other Parties		46.500
Total	NA	102.956

OPERATING RESULTS AND BUSINESS

The Company‘s sales turnover has jumped by 35% due to aggressive marketing efforts. Net profit has grown by 14% compared to previous year. Again, rising trend of raw material prices have shrunk the margins. During the year, the Company strengthened marketing network of dealers in different regions of the country. Further, improvements in production system were made for better quality of PVC column pipes and PVC fabricated fittings.

OUTLOOK FOR THE CURRENT YEAR

With India‘s Growth in agriculture and infrastructure sectors, demand for plastic pipes that is growing at a higher rate than GDP is likely to be better even for current year. And the directors are confident that the company‘s strong market brand will yield even better financial results in future.

BOARD OF DIRECTORS

Sudip B. Patel

He has B.E. in Chemical Engineering from L.D. College of Engineering, Ahmedabad and M. Tech from UDCT, Mumbai. He later completed his MBA from USA. After completing his education he joined the family business. He is looking after production. He is also key person for new product developments and R and D activities. He is also the Whole time Director of the other group Companies: Dutron Plastics Limited, Nippon Polymers Private Limited, Dutron Telecom Private Limited and Cosmofil Plastisack Private Limited.

Rasesh H. Patel

He possesses M.S in Electrical Engineering and MBA from USA. He is the son of founder of Dutron Group Late Hasmukhbhai Patel. After completing his education he joined the family business. He is looking after production, raw material purchases, automation and MIS activities. He is also the Compliance Officer of the company and looks after all legal, stock exchange and SEBI requirements. Also, he is the Whole Time Director of the other group Companies: Dutron Plastics Limited, Nippon Polymers Private Limited, and Dutron Telecom Private Limited.

Alpesh B. Patel

He has done Plastic Engineering from Ahmedabad and MBA from USA. He is the son of founder of Dutron Group Late Bipinbhai Patel. He is Whole Time Director of the Company and looks after Marketing and General Administration. He has been instrumental in expansion of the business and promoting the company’s products in international markets, development of Brands and creating new markets. He is also Whole Time Director of the other group Companies Dutron Plastics Limited, Nippon Polymers Private Limited and Dutron Telecom Private Limited.

Praful G. Shah

Praful G. Shah, aged about 79 years has done B. Com, LLM, and is practicing as Income Tax (Advocate) for 41 years. He has varied experience as Lecturer in Law College. He is a member of Income Tax Appellate Tribunal Association and also of Income Tax Bar Association for past so many years. He is the independent Director of their Company. He has vast knowledge and enriched experience in his fields.

Mitesh C. Shah

Mitesh C. Shah, aged about 46 years is a graduate in Commerce with over 20 years experience in marketing, distribution and sales of plastic products. He brings in his in-depth knowledge about applications of various plastic products in India, especially in pipes and fittings; in several segments of market.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80061803	11/02/2005 *	30,000,000.00	CORPORATION BANK	NR. NAVRANGPURA POST OFFICE, AHMEDABAD, AHMEDABAD, GUJARAT - 380009, INDIA	-

* Date of charge modification

FIXED ASSETS

· Land

· Factory Building

· Furniture

· Electric Fittings

· Plant and Machinery

· Factory Equipments

· Technical Know How

· Office Equipments

· Laboratory Equipments

· Computer

· Vehicles

· Dies and Moulds

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.18
UK Pound	1	Rs.102.68
Euro	1	Rs.81.03

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	RAS
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		48

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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