MIRA INFORM REPORT

Report Date :

31.07.2014

IDENTIFICATION DETAILS

Name :	CORDS CABLE INDUSTRIES LIMITED
Registered Office :	B-1/A-26, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110044
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	21.10.1991
Com. Reg. No.:	55-046092
Capital Investment / Paid-up Capital :	Rs.130.278 Millions
CIN No.: [Company Identification No.]	L74999DL1991PLC046092
TAN No.: [Tax Deduction & Collection Account No.]	DELC06369G
PAN No.: [Permanent Account No.]	AAACC0519K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The company manufactures and develops a wide range of specialized cables to address the specific requirements of industries involving modern process technologies, instrumentation and communication demanding the highest standards of precisions and reliability with assured quality and safety standards.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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. However, trade relations are reported to be 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 – 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

NEWS

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	Long Term Bank Facilities : BBB
Rating Explanation	Moderate credit quality and average credit risk.
Date	July 26, 2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities : A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	July 26, 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 BY

Name :	Mr. Sandeep
Designation :	Finance department
Contact No.:	91-11-40551219
Date :	30.07.2014

LOCATIONS

Registered/ Head Office :	B-1/A-26, Mohan Co-Operative Industrial Estate, Mathura Road, New Delhi – 110044, India
Tel. No.:	91-11-40551200
Fax No.:	91-11-26951196 / 26951731
E-Mail :	ccil@cordscable.com ipo@cordscable.com csco@cordscable.com [For Investor]
Website :	http://www.cordscable.com
Factory 1 :	Existing Plat : A-525, Industrial Area Chopanki, Bhiwadi, District Alwar – 301019, Rajasthan, India
Factory 2 :	Proposed Plant : SP-239, 240 and 241, Industrial Area Kahrani, Bhiwadi Extension, District Alwar, Rajasthan, India
Regional Offices :	Located At : · Mumbai · Hyderabad · Kolkata
Overseas Office :	· Oman · UAE · Bahrain

DIRECTORS

AS ON 24.09.2013

Name :	Mr. Naveen Sawhney
Designation :	Managing Director
Date of Appointment :	01.07.2011
DIN No.:	00893704
Name :	Mr. Devender Kumar Prashar
Designation :	Joint Managing Director
Date of Appointment :	01.07.2011
DIN No.:	00540057
Name :	Mr. Om Prakash Bhandari
Designation :	Non-Executive Director
Date of Appointment :	30.09.2006
DIN No.:	00046524
Name :	Mr. Narasinghapuram Krishnaswamy Balasubramanian
Designation :	Non-Executive Director
Date of Appointment :	30.07.2007
DIN No.:	00049608
Name :	Mr. Ajit Kumar Sahay
Designation :	Non-Executive Director
Date of Birth/Age :	01.07.1942
Date of Appointment :	30.09.2010
DIN No.:	00353414

KEY EXECUTIVES

Name :	Ms. Geetanjali S. Kumar
Designation :	Company Secretary and Compliance Officer
Name :	Mr. V. K. Beri
Designation :	Chief Executive Officer (Designate)
Name :	Mr. Varun Sawhney
Designation :	Vice President (Marketing, HR and IT)
Name :	Mr. H. K. Pandita
Designation :	Vice President (Marketing)
Name :	Mr. Amitabha De
Designation :	Assistant Vice President (Strategic Business)
Name :	Mr. Sandeep Kumar
Designation :	General Manager (Accounts and Finance)
Name :	Mr. Dinesh Shukla
Designation :	President (Operations)
Name :	Mr. Rahul Prashar
Designation :	Vice President (Project and Sourcing)
Name :	Mr. Gaurav Sawhney
Designation :	Vice President (Finance and Banking)
Name :	Mr. Anil Gupta
Designation :	General Manager (Technical )
Name :	Mr. Satinder Bedi
Designation :	Head (Business Development)
Name :	Mr. S. K. Bagga
Designation :	General Manager (Technical)

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
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6646438	58.16
Sub Total	6646438	58.16
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	6646438	58.16
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	12695	0.11
Sub Total	12695	0.11
(2) Non-Institutions
Bodies Corporate	480122	4.20
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	2614015	22.87
Individual shareholders holding nominal share capital in excess of Rs.0.100 Millions	1500243	13.13
Any Others (Specify)	174267	1.52
Non Resident Indians	99137	0.87
Clearing Members	75130	0.66
Sub Total	4768647	41.73
Total Public shareholding (B)	4781342	41.84
Total (A)+(B)	11427780	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)	11427780	100.00

BUSINESS DETAILS

Line of Business :

The company manufactures and develops a wide range of specialized cables to address the specific requirements of industries involving modern process technologies, instrumentation and communication demanding the highest standards of precisions and reliability with assured quality and safety standards.

Products :

Product Description	ITC Code
Electrical Wire and Cables	8544
Continuous Cast Copper Wire Rod	7408.11.90

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

· Canara Bank

· ICICI Bank Limited

· DBS Bank Limited

· Citi Bank NA

· State Bank of Patiala

· Rajasthan State Industrial Development and Industrial Corporation Limited (RIICO Limited)

Facilities :

Secured Loan	As on 31.03.2014 [Rs. in Millions]	As on 31.03.2013 [Rs. in Millions]
Long Term Borrowings
External Commercial Borrowings	NA	43.511
In Rupee Term loans from Banks	NA	22.442
In Rupee Term loans from Others	NA	277.874
Vehicle Loans from Banks	NA	1.514
Vehicle Loans from Others	NA	1.294
Less: Current Maturities of long term borrowing	NA	(116.561)
NOTES: · External Commercial Borrowing referred above of Rs. 4,35,11,440 are secured by way of first charge on the entire Movable fixed assets and equitable mortgage on Factory Land and Building and Plant and Machinery situated at Kaharani. · Term Loans from Banks and others referred above are secured by way of first charge on entire movable fixed assets and equitable mortgage Factory Land and Building and Plant and Machinery and other fixed assets. · Vehicle loans are secured by way of hypothecation of vehicles.
Short Term Borrowings
Working Capital loans From Banks
In Rupee loans	NA	433.656
Foreign Currency loans	NA	47.911
Total	NA	711.641
NOTES: Working Capital loans along with non-fund based facilities from banks are secured by way of hypothecation of present and future stock of raw materials, work-in-process, finished goods, book debts as first charge which ranks Pari-passu amongst Bankers and by way of First and Second charge on the immovable and movable assets of the company by respective banks and pledge of FDR Rs.32.800 Millions)

Banking Relations :	--
Auditors :
Name :	Sharma Goel and Company Chartered Accountants
Address:	New Delhi, India

CAPITAL STRUCTURE

(AS ON 31.03.2014)

Authorised Capital: NOT AVAILABLE

Issued, Subscribed & Paid-up Capital: RS.130.278 MILLIONS

(AS ON 31.03.2013)

Authorised Capital:

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions
360000	Non-Convertible Cumulative Preference Share	Rs.100/- each	Rs.36.000 Millions
	Total		Rs.156.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
11427780	Equity Shares	Rs.10/- each	Rs.114.278 Millions
160000	Non-Convertible Cumulative Preference Share	Rs.100/- each	Rs.16.000 Millions
	Total		Rs.130.278 Millions

Terms/rights attached to Equity Shares

The company has only one class of equity shares having a face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. In the event of distributing dividends by the company and winding up, the preference shareholders will be preferred over the equity shareholders. They do not have any voting rights except for in the conditions mentioned in the Companies Act, 1956.

Terms/rights attached to Preference Shares

During the year March, 2012, the Company has issued and alloted 160000 Non-Convertible, Cumulative Redeemable Preference Shares of Rs.100/- each fully paid to Promoters. These Shares carry Dividend rate@10% (Ten Percent) per annum and voting rights of these shares are limited to matters which directly affect the rights of Preference Shareholders. The said Preference Shares shall have tenure of 5 (Five) years, however the company, reserve the right to recall the shares after a period of 2 (Two) years or at any suitable tenure giving knotless than 6 months previous notice in writting to shareholders to redeem these shares. These shares are not listed on any stock exchange.

Authorised Share Capital

During the year March 31,2012, the authorised share capital has been increased from Rs. 120.000 Miilions divided into 12.000 Miilions Equity Shares of Rs.10 each to Rs.140.000 Miilions divided into 12.000 Miilions Equity Shares of Rs.10 each and 2,00,000 Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred) each at the Annual General Meeting of the Company held on September 26, 2011. During the year March 31,2013 the authorised share capital has been increased from Rs.140.000 Rs.10 into 12.000 Rs.10 Equity Shares each and 2,00,000 Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred) each to Rs.156.000 Millions divided into 12.000 Millions Equity Shares of Rs.10 (Rupees Ten) each and 360000 Non Covertible, Cumulative, Redeemable Preference Shares of Rs. 100 (Rupees Hundred)each in the Annual General Meeting of the Company held on September 26, 2012.

The Reconciliation of number of shares and amount outstanding at the beginning and at the end of the year:

Equity Share

	As at 31.03.2013
Particulars	No. of Shares	Amount
Equity Shares at the beginning of the year	11427780	114.278
Add : Equity Share Issued During the year	-	-
Equity Share at the End of the year	11427780	114.278

Preference Share

	As at 31.03.2013
Particulars	No. of Shares	Amount
Preference Shares at the beginning of the year	-	-
Add : Preference Share Issued during the Year	160000	16.000
Preference Share at the end of the year	160000	16.000

The Details of shareholders holding more than 5% shares:

Equity Shares	As at 31.03.2013
Name of Shareholder	No. of Shares	% held
Naveen Sawhney	2698030	23.61
Devender Kumar Prashar	2759317	24.15
Preference Shares
Naveen Sawhney	80000	50
Devender Kumar Prashar	80000	50

40,26,980 Equity Shares out of issued shares, subscribed and Paid up share capital were allotted as Bonus Shares in the last five years by the capitalistion of Security Premium and Reserve and Surplus.

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	130.278	130.278	130.278
(b) Reserves & Surplus	935.491	917.018	858.082
(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)	1065.769	1047.296	988.360
(3) Non-Current Liabilities
(a) long-term borrowings	156.707	230.074	331.658
(b) Deferred tax liabilities (Net)	69.780	59.940	55.083
(c) Other long term liabilities	18.889	22.376	26.793
(d) long-term provisions	10.333	9.482	7.545
Total Non-current Liabilities (3)	255.709	321.872	421.079
(4) Current Liabilities
(a) Short term borrowings	493.516	481.567	479.012
(b) Trade payables	902.989	863.998	882.465
(c) Other current liabilities	102.690	160.988	181.901
(d) Short-term provisions	4.914	9.370	8.734
Total Current Liabilities (4)	1504.109	1515.923	1552.112
TOTAL	2825.587	2885.091	2961.551
I. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1048.897	1087.124	1142.943
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	6.447	6.499
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	27.817	20.613	18.034
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1076.714	1114.184	1167.476
(2) Current assets
(a) Current investments	0.460	0.080	0.000
(b) Inventories	452.033	518.276	473.627
(c) Trade receivables	838.694	828.212	897.257
(d) Cash and cash equivalents	180.071	160.511	121.983
(e) Short-term loans and advances	220.983	215.315	262.723
(f) Other current assets	56.632	48.513	38.485
Total Current Assets	1748.873	1770.907	1794.075
TOTAL	2825.587	2885.091	2961.551

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2629.924	3854.354	3768.074
		Other Income	18.553	17.064	15.095
		TOTAL (A)	2648.477	3871.418	3783.169
Less	EXPENSES
		Cost of Material Consumed	1965.276	3114.724	3084.581
		Changes in Inventories of finished goods, work-in-progress & stock in trade	73.466	(42.614)	(74.826)
		Employee benefits expenses	142.336	162.872	167.575
		Other Expenses	190.702	236.000	234.530
		TOTAL (B)	2371.780	3470.982	3411.860
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		276.697	400.436	371.309
Less	FINANCIAL EXPENSES (D)		196.592	226.425	229.259
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		80.105	174.011	142.050
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.919	84.004	67.750
	PROFIT BEFORE TAX (E-F) (G)		30.186	90.007	74.300
Less	TAX (H)		9.842	29.199	20.670
	PROFIT AFTER TAX (G-H) (I)		20.344	60.808	53.630
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	380.059	327.129
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	0.000	0.000
		Proposed Dividend (Preference Dividend)	NA	1.600	0.603
		Corporate Dividend Tax	NA	0.272	0.098
	BALANCE CARRIED TO THE B/S		NA	438.995	380.059
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	290.783	154.243
	TOTAL EARNINGS		NA	290.783	154.243
	IMPORTS
		Raw Materials	NA	168.113	126.594
	TOTAL IMPORTS		NA	168.113	126.594
	Earnings Per Share (Rs.)		1.62	5.16	4.63

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.77	1.57	1.42
Net Profit Margin (PBT/Sales)	(%)	1.15	2.34	1.97
Return on Total Assets (PBT/Total Assets}	(%)	1.07	3.13	2.51
Return on Investment (ROI) (PBT/Networth)		0.03	0.09	0.08
Debt Equity Ratio (Total Debt/Networth)		0.61	0.68	0.82
Current Ratio (Current Asset/Current Liability)		1.16	1.17	1.16

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	130.278	130.278	130.278
Reserves & Surplus	858.082	917.018	935.491
Net worth	988.360	1047.296	1065.769
long-term borrowings	331.658	230.074	156.707
Short term borrowings	479.012	481.567	493.516
Total borrowings	810.670	711.641	650.223
Debt/Equity ratio	0.820	0.680	0.610

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Income	3,768.074	3,854.354	2,629.924
		2.290	(31.767)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Income	3,768.074	3,854.354	2,629.924
Profit	53.630	60.808	20.344
	1.42%	1.58%	0.77%

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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

COMPANY OVERVIEW

Subject was incorporated on October 21, 1991 as “Private Limited” and it was later converted into “Public Limited” on May 10, 2006. The Company manufactures and develops a wide range of specialized cables to address the specific requirements of industries involving modern process technologies, instrumentation and communication demanding the highest standards of precisions and reliability with assured quality and safety standards.

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particular	31.03.2014	31.03.2013	31.03.2012
Guarantees issued by Bankers*	NA	910.792	868.717
L/C’s negotiated by bank	NA	43.628	102.315
In respect of Bill factored from banks/Factoring agency	NA	147.899	250.946

*Bank Guaranties includes BG's amounting to Rs 327.560 Millions (PY 337.560 Millions) extended to Raw Materials suppliers for credit period extended to company and the same is accounted for in sundry creditors.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Tools and Instrument

· Generator

· Office Equipments

· Computer

· Furniture and Fixture

· 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.60.15
UK Pound	1	Rs.101.92
Euro	1	Rs.85.14

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	RAS
Report Prepared by :	NIT

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	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	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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.