MIRA INFORM REPORT

Report Date :

30.07.2014

IDENTIFICATION DETAILS

Name :	KRITI INDUSTRIES (INDIA) LIMITED
Registered Office :	Mehta Chambers, 34-Siyagunj, Indore - 452007, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.03.1990
Com. Reg. No.:	10-005732
Capital Investment / Paid-up Capital :	Rs.49.604 Millions
CIN No.: [Company Identification No.]	L25206MP1990PLC005732
TAN No.: [Tax Deduction & Collection Account No.]	BPLK00508E BPLK02602F BPLK02569A
PAN No.: [Permanent Account No.]	AAACK7078B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Rigid PVC Pipes and Soybean/Rapeseed Oil.
No. of Employees :	570 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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 :	Clear
Comments :	Subject is an established company having satisfactory track record. The ratings continue to draw strength from the established operations of the company in the plastic pipes and fittings business. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB- (Long Term Bank Facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	October 04, 2013

Rating Agency Name	CARE
Rating	A3 (Short Term Bank Facilities)
Rating Explanation	Moderate degree of safety and high credit risk.
Date	October 04, 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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Suresh Jaju
Designation :	Finance Manager
Contact No.:	91-731-2704716
Date :	23.07.2014

LOCATIONS

Registered Office :	Mehta Chambers, 34-Siyagunj, Indore - 452007, Madhya Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@kritiindia.com sjaju@kritiindia.com
Website :	www.kritiindia.com
Corporate Office :	Chetak Chambers, 14 R N T Marg, 4^th Floor, Indore - 452001, Madhya Pradesh, India
Tel. No.:	91-731-2704716 / 2719100 / 2719195
Fax No.:	91-731-2704506 / 4042118 / 2704701
Factory :	Plot No. 75-86 and 13/1, Tarpura, 75-86 Pithampur, District Dhar, Madhya Pradesh, India
Branch Office :	B/303, Third Floor, Dynesty Business park, Andheri Kurla Road, J B Nagar, Chakala, Andheri (East), Mumbai – 400043, Maharashtra, India

DIRECTORS

As on: 31.03.2013

Name :	Mr. Shiv Singh Mehta
Designation :	Managing Director
Date of Birth/Age :	03.03.1954
Qualification :	B.E., M.B.A.
Date of Appointment :	12.03.1990
Name :	Mrs. Purnima Mehta
Designation :	Executive Director
Date of Birth/Age :	25.05.1960
Qualification :	B.A.(Hons), M.B.A, PGDBM
Date of Appointment :	01.10.1999
Name :	Dr. Swatantra Singh Kothari
Designation :	Director
Name :	Mr. Rakesh Kalra
Designation :	Director
Name :	Mr. Manoj Fadnis
Designation :	Director
Name :	Dr. Somnath Ghosh
Designation :	Director
Date of Birth/Age :	31.05.1953
Qualification :	M.A., M. Phil, Ph.D.
Date of Appointment :	03.03.2009

KEY EXECUTIVES

Name :	Mr. Suresh Jaju
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.06.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
		As a % of (A+B)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2304847	4.65
Bodies Corporate	30312931	61.11
Sub Total	32617778	65.76
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	32617778	65.76
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1600	0.00
Sub Total	1600	0.00
(2) Non-Institutions
Bodies Corporate	1661812	3.35
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	8236787	16.61
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	7011057	14.13
Any Others (Specify)	74486	0.15
NRIs/OCBs	71685	0.14
Clearing Members	2801	0.01
Sub Total	16984142	34.24
Total Public shareholding (B)	16985742	34.24
Total (A)+(B)	49603520	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)	49603520	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Rigid PVC Pipes and Soybean/Rapeseed Oil.
Imports :
Products :	Raw Material
Countries :	· USA · China · Korea · Taiwan
Terms :
Selling :	Cash and Advance Payment
Purchasing :	Cash and Advance Payment

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

570 (Approximately)

Bankers :

· State Bank of India

· State Bank of Travancore

· IDBl Bank Limited

· Bank of India

· State Bank of Hyderabad

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWINGS
TERM LOAN (Installment due within 12 months shown in Current Liabilities)
From Banks
IDBI Bank Limited
(i) (Repayable in 19 Quarterly installments, Last installment due on 1st April, 2014 Rate of Interest 14.75% p.a.at year end.)		1.900
(Repayable in 17 Quarterly installments, Last installment due on 1st September 2013 Rate of Interest 14.75% p.a.at year end.)		0.000
(iii) (Repayable in 42 monthly installments, Last installment due on 1st April 2014 Rate of Interest 14.75% p.a.at year end.)		34.273
State Bank of Hyderabad Rs.21.000 Millions (Repayable in 11 quarterly installments, Last installment due on 31st December, 2014 Rate of Interest: 15.45% p.a.at year end.)	NA	4.281
Bank of India (Repayable in 17 quarterly installments, Last installment due on 30th June, 2016 Rate of Interest: 13.50% p.a.at year end. (Above loans are secured by First charge/ Mortgage on fixed assets of the company and personal guarantee of Managing Director)		51.806
SHORT TERM BORROWINGS
From banks (Secured by hypothecation of finished goods, raw material, stock in process, store and spares, sundry debtors, export bills, receivables and second charge on fixed assets of the company and personal guarantee of Managing Director)	NA	255.836
TOTAL	NA	348.096

Banking Relations :	--
Auditors :
Name :	R.D. Asawa and Company Chartered Accountants
Address :	403, Alankar Point, Geeta Bhawan Square, A.B. Road, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-2491393/ 2491376
Fax No.:	91-731-2491393
Subsidiary Company :	Kriti Auto and Engineering Plastic Private Limited (Wholly owned Subsidiary Company)
Companies/entities under the control of Key Management Personnel :	· Sakam Trading Private Limited (Holding Company) · Kriti Nutrients Limited (Subsidiary company of Sakam Trading Private Limited) · Chetak Builders Private Limited (Subsidiary company of Sakam Trading Private Limited)

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.49.604 Millions

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.1/- each	Rs.80.000 Millions
2000000	Optional Converible Preference Shares	Rs.10/- each	Rs.20.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49603520	Equity Shares (Out of which 49603520 shares issued on 27.01.2010 as fully paid up on account of scheme of arrangement as approved by The Hon'ble High Court of M.P. Indore Bench. The company has issued only one class of shares referred to as equity shares having a par value of Rs.1 each. Holder of the equity share as referred in the of the company as of date of the shareholder's meeting is referred to one vote in respect of each share held for all matters submitted to vote in the shareholder's meeting. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation of the company the holders of equity shares will be entitled to receive any of the remaining assets of the company after distribution of all preferential amounts.)	Rs.1/- each	Rs.49.604 Millions

1. Reconciliation of shares

	Rs. In Millions
Opening Balance of 49603520 shares of Rs. 1/- each Total	49.604
Issued during the year	0.000
Closing Balance 49603520 shares of Rs. 1/- each	49.604

2 shareholder holding more than 5 % of shares of the company and its percentage

2.1 Sakam Trading Private Limited (Holding Company)

No. of Shares: 25843673

% of Shares: 52.10%

Pursuant to the Hon'ble High Court of M.P. order dated 1.11.2011 approving the scheme of amalgamation of promoter group companies viz Kriti Corporate Service Private Limited, Kriti Auto Accessories Private Limited, Kasta Pipes Private Limited And Shipra Pipe Private Limited with Sakam Trading Private Limited, the Shareholding of the above transferor companies are vested in Sakam Trading Private Limited Thus Sakam Trading Private Limited became holding company w.e.f.27.02.12 of Kriti Industries India Limited

2.2 Chetak Builders Private Limited

No. of Shares: 4469258

% of Shares: 9.01%

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	49.604	49.604	49.604
(b) Reserves & Surplus	445.955	401.079	359.547
(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)	495.559	450.683	409.151
(3) Non-Current Liabilities
(a) long-term borrowings	84.819	92.260	106.523
(b) Deferred tax liabilities (Net)	61.515	58.919	53.641
(c) Other long term liabilities	18.353	16.174	13.185
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	164.687	167.353	173.349
(4) Current Liabilities
(a) Short term borrowings	214.603	255.836	232.695
(b) Trade payables	1116.921	995.469	677.133
(c) Other current liabilities	117.577	126.164	202.938
(d) Short-term provisions	39.323	35.165	32.251
Total Current Liabilities (4)	1488.424	1412.634	1145.017
TOTAL	2148.670	2030.670	1727.517
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	473.235	439.813	406.465
(ii) Intangible Assets		4.858	2.194
(iii) Capital work-in-progress		1.778	7.738
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	77.715	77.715	77.715
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	11.497	10.639	8.116
(e) Other Non-current assets	3.000	0.000	9.000
Total Non-Current Assets	565.447	534.803	511.228
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	748.574	730.145	710.982
(c) Trade receivables	578.331	520.920	304.649
(d) Cash and cash equivalents	85.779	65.089	59.590
(e) Short-term loans and advances	96.424	79.454	54.726
(f) Other current assets	74.115	100.259	86.342
Total Current Assets	1583.223	1495.867	1216.289
TOTAL	2148.670	2030.670	1727.517

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	3580.584	3193.574	2808.704
	Other Operating Income	1.740	0.000	0.000
	Other Income	11.540	18.628	16.548
	TOTAL (A)	3593.864	3212.202	2825.252
Less	EXPENSES
	Cost of materials consumed	2859.511	2434.857	2280.094
	Employee benefit expense	149.128	137.148	121.974
	Other expenses	324.031	323.561	301.554
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(3.208)	60.916	(131.545)
	TOTAL (B)	3329.462	2956.482	2572.077
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	264.402	255.720	253.175
Less	FINANCIAL EXPENSES (D)	137.250	136.158	134.666
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	127.152	119.562	118.509
Less/ Add	DEPRECIATION/ AMORTISATION (F)	44.532	42.104	36.216
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	82.620	77.458	82.293
Less	TAX (I)	29.096	27.278	26.444
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	53.524	50.180	55.849
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	96.692	65.160	67.958
Less	APPROPRIATIONS
	Transfer to General Reserve		10.000	50.000
	Proposed Dividend		7.441	7.440
	Corporate Dividend Tax		1.207	1.207
	BALANCE CARRIED TO THE B/S	NA	96.692	65.160
	IMPORTS
	Raw Materials	NA	445.711	323.736
	Capital Goods	NA	16.981	0.000
	TOTAL IMPORTS	NA	462.692	323.736
	Earnings / (Loss) Per Share (Rs.)	1.08	1.01	1.13

Notes:

1. The above financial results have been reviewed by the Audit Committee and approved and taken on record by the Board of Directors at its meetings held on May 29, 2014.

2. The Consolidated Accounts comprises of the Holding Company viz Kriti industries (India) Limited (KIIL) and its wholly owned subsidiary Krtti Auto and Engineering Plastics Private Ltd, The quarterly results are of Kill which has only one reportable segment.

3. The Board of Directors has recommended dividend of Rs 0.15 Per Share (15%) for the year ended 31.03.2014. subject to approval of members in Annual General Meeting.

4. Other expenses include difference in provision of Excise duty on Increase /(Decrease) in dosing stock amount of Rs (14.642) Millions for the quarter ended on 31.03.2014 and proceeding quarter Rs. (20.082) Millions.

5. Previous figures have been reclassified I regrouped wherever necessary.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	1.49	1.56	1.98
Net Profit Margin (PBT/Sales)	(%)	2.31	2.43	2.93
Return on Total Assets (PBT/Total Assets}	(%)	3.99	3.97	5.01
Return on Investment (ROI) (PBT/Networth)		0.17	0.17	0.20
Debt Equity Ratio (Total Debt/Networth)		0.60	0.77	0.83
Current Ratio (Current Asset/Current Liability)		1.06	1.06	1.06

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	49.604	49.604	49.604
Reserves & Surplus	359.547	401.079	445.955
Net worth	409.151	450.683	495.559
long-term borrowings	106.523	92.260	84.819
Short term borrowings	232.695	255.836	214.603
Total borrowings	339.218	348.096	299.422
Debt/Equity ratio	0.829	0.772	0.604

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	2808.704	3193.574	3580.584
		13.703	12.118

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	2808.704	3193.574	3580.584
Profit	55.849	50.180	53.524
	1.99%	1.57%	1.49%

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	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	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

CONTINGENT LIABILITIES (As on: 31.03.2013)

· Estimated amount of contracts remaining to be executed on Capital Account Rs.0.424 Million net of advance given (Previous Year Rs.1.904 Millions)

· Bank has given guarantee on behalf of the Company to various parties to the extent of Rs.41.856 Millions (Previous Year Rs. 36.488 Millions.)

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10507387	10/06/2014	40,000,000.00	State Bank of India	COMMERCIAL BRANCH GPO, AB ROAD INDORE, INDORE, MADHYA PRADESH - 452007, INDIA	C10102143
2	10507385	10/06/2014	73,300,000.00	State Bank of India	COMMERCIAL BRANCH, GPO AB ROAD, INDORE, MADHYA PRADESH - 452001, INDIA	C10101129
3	10457688	30/10/2013	150,000,000.00	IDBI Bank Limited	SPECIALISED CORPORATE BRANCH, C S NAYUDU ARCADE, UPPER GROUND FLOOR, 10/2 OLD PALASIA, INDORE, MADHYA PRADESH - 452001, INDIA	B88573159
4	10457689	30/10/2013	150,000,000.00	IDBI Bank Limited	SPECIALISED CORPORATE BRANCH, C S NAYUDU ARCADE, UPPER GROUND FLOOR, 10/2 OLD PALASIA, INDORE, MA DHYA PRADESH - 452001, INDIA	B88574892
5	10452841	09/10/2013	50,000,000.00	STATE BANK OF HYDERABAD	90/91, UDAPURA, JAWAHAR MARG, INDORE, MADHYA PRADESH - 452001, INDIA	B86569563
6	10342705	07/01/2013 *	60,000,000.00	IDBI Bank Limited	SPECIALISED CORPORATE BRANCH, C S NAYUDU ARCADE, UPPER GROUND FLOOR, 10/2 OLD PALASIA, INDORE, MADHYA PRADESH - 452001, INDIA	B67336230
7	10280331	29/03/2011 *	48,300,000.00	IDBI Bank Limited	UPPER GROUND FLOOR, CAPTAIN C.S. NAYADU ARCADE, 10/2, OLD PALASIA, INDORE, MADHYA PRADESH - 452001  , INDIA	B11728631
8	10256485	29/03/2011 *	23,700,000.00	STATE BANK OF HYDERABAD	90/91, UDAPURA, JAWAHAR MARG, INDORE, MADHYA PRADESH - 452001, INDIA	B11444999
9	10259105	21/06/2013 *	1,188,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, A.B. ROAD, NEAR GPO, INDORE, MADHYA PRADESH - 452001, INDIA	B79550844
10	10244893	29/03/2011 *	120,000,000.00	BANK OF INDIA	INDORE MCB BRANCH, INDORE, MADHYA PRADESH - 452010, INDIA	B11068251

* Date of charge modification

FIXED ASSETS

Tangible

· Land

· Factory Building

· Plant and Machinery

· Dies and Moulds

· Vehicles

· Furniture and Fixture

· Computer

Intangible

· Software

· Goodwill

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.60.10
UK Pound	1	Rs.102.04
Euro	1	Rs.80.74

INFORMATION DETAILS

Information Gathered by :	SUV
Analysis Done by :	SUB
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.