MIRA INFORM REPORT

Report Date :

04.06.2014

IDENTIFICATION DETAILS

Name :	SADHU FORGING LIMITED

Registered Office :	3rd Floor, K C House, 5/66 Wea Padam Singh Road, Karol Bagh, New Delhi – 110005

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	05.08.1978

Com. Reg. No.:	55-009164

Capital Investment / Paid-up Capital :	Rs.56.450 Millions

CIN No.: [Company Identification No.]	U74899DL1978PLC009164

PAN No.: [Permanent Account No.]	AAACS0351F

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Steel Forging.

No. of Employees :	Information denied by management

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 :	Clear

Comments :	Subject is an established company having satisfactory track record. Profitability of the company seems to be low. However, general financial position of the company is 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

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

INDIAN ECONOMIC OVERVIEW

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan = BBB
Rating Explanation	Have moderate degree of safety and carry moderate credit risk
Date	May 2013

Rating Agency Name	ICRA
Rating	Bank Guarantee = A3+
Rating Explanation	Have moderate degree of safety and carry higher credit risk
Date	May 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 DENIED

Management Non-Cooperative (Tel No.: 91-129-42839000)

LOCATIONS

Registered Office :	3rd Floor, K C House, 5/66 Wea Padam Singh Road, Karol Bagh, New Delhi – 110005, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@sadhugroup.com
Website :	www.sadhugroup.com

Gear Division / Press Forging Unit :	Opposite Plot No. 84, Sector 25, Faridabad - 121004, Haryana, India
Tel. No.:	91-129-4283900 (30 Lines)
Fax No.:	91-129-4283999

Forging Unit I :	Plot No. 140, Sector 24, Faridabad - 121005, Haryana, India
Tel. No.:	91-129-4283200 (30 Lines)
Fax No.:	91-129-2233440

Forging Unit II :	Plot No. 84, Sector 25, Faridabad - 121004, Haryana, India
Tel. No.:	91-129-4180200 (30 Lines)
Fax No.:	91-129-4061848

DIRECTORS

As on 28.09.2013

Name :

Mr. Hari Ram Gupta

Designation :

Managing Director

Address :

1178, Sector 15, Faridabad – 121007, Haryana, India

Date of Birth/Age :

04.02.1945

Qualification :

Graduate

Date of Appointment :

10.01.2013

PAN No.:

AFTPG8431M

DIN No.:

00163476

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	U31101DL1986PLC025530	ELKAY TELELINKS LIMITED	Director	22/09/1986	22/09/1986	02/06/2008	Active	NO
2	U74899DL1978PLC009164	SADHU FORGING LIMITED	Managing director	10/01/2013	01/04/1990	-	Active	NO
3	U74899DL1995PLC070394	ELKAY INTERNATIONAL LIMITED	Director	22/11/1995	22/11/1995	29/06/2009	Active	NO
4	L74899DL1991PLC062744	SPL INDUSTRIES LIMITED	Director	16/05/2011	01/01/2004	12/09/2013	Active	NO
5	U51900MH1986PLC039425	VIGNESHWARA EXPORTS LIMITED	Director	19/12/2005	19/12/2005	01/11/2009	Active	NO
6	U32204DL2007PTC158117	HARYANA TELETECH INDIA PRIVATE LIMITED	Director	18/01/2007	18/01/2007	05/10/2009	Active	NO
7	U74140DL2007PTC160894	SADHU AUTO PARTS PRIVATE LIMITED	Director	17/03/2008	17/03/2008	02/03/2009	Active	NO
8	U74140DL2008PTC183318	SHREE BALAJI KRIPA ENGINEERING PRIVATE LIMITED	Director	01/05/2010	01/05/2010	-	Active	NO
9	U28900HR2010PTC040935	R.H.AUTOTECH PRIVATE LIMITED	Director	22/07/2010	22/07/2010	-	Active	NO

Name :

Mr. Satish Garg

Designation :

Whole Time Director

Address :

1174, Sector 15, Faridabad – 121007, Haryana, India

Date of Birth/Age :

30.04.1958

Qualification :

Graduate

Date of Appointment :

01.04.2010

PAN No.:

ABLPK1145L

DIN No.:

00490444

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	U74899DL1978PLC009164	SADHU FORGING LIMITED	Whole-time director	01/04/2010	05/08/1978	-	Active	NO
2	U51109WB1994PTC065569	NOTEX VYAPAAR PRIVATE LIMITED	Director	07/07/1995	07/07/1995	-	Active	NO
3	U91110PN1965NPL018870	ASSOCIATION OF INDIAN FORGING INDUSTRY	Director	23/09/2007	21/09/1996	-	Active	NO
4	U00000DL1990PTC040578	MODE PRINTS Private Limited	Director	23/06/2000	23/06/2000	15/12/2009	Active	NO
5	U27203DL1981PLC011337	ELKAY STRIPS LIMITED	Director	29/11/2001	29/11/2001	25/06/2012	Active	NO
6	U74140DL2007PTC160894	SADHU AUTO PARTS PRIVATE LIMITED	Director	17/03/2008	17/03/2008	-	Active	NO
7	U74899DL1995PLC070394	ELKAY INTERNATIONAL LIMITED	Director	30/09/2010	21/12/2009	-	Active	NO
8	U28910MP2009PTC022085	SADHU AUTOCOM PRIVATE LIMITED	Director	24/07/2012	24/07/2012	-	Active	NO

Name :

Mr. Sadhu Ram Gupta

Designation :

Whole Time Director

Address :

1266, Sector 15, Faridabad – 121007, Haryana, India

Date of Birth/Age :

26.06.1945

Qualification :

Graduate, LLB

Date of Appointment :

01.04.2010

PAN No.:

AAPPG8442B

DIN No.:

00042352

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	U74899DL1978PLC009164	SADHU FORGING LIMITED	Whole-time director	01/04/2010	05/08/1978	-	Active	NO
2	U28910DL2004PLC129444	SUNSTAR PRECISION FORGE LIMITED	Director	04/07/2005	04/07/2005	18/08/2008	Active	NO
3	U65923DL2006PTC149161	SADHUSONS INFOTECH PRIVATE LIMITED	Director	25/05/2006	25/05/2006	-	Active	NO
4	U32109DL2008PLC173698	SVARN TELECOM LIMITED	Director	06/02/2008	06/02/2008	-	Active	NO
5	U32109DL2009PTC188400	SVARN INFRATEL PRIVATE LIMITED	Additional director	02/12/2010	02/12/2010	-	Active	NO
6	U64204DL2007PTC162072	SVARN TEX PRINTS PRIVATE LIMITED	Additional director	15/12/2010	15/12/2010	-	Active	NO

Name :

Mr. Saket Garg

Designation :

Whole Time Director

Date of Birth/Age :

22.10.1986

Qualification :

B.E., MBA

Date of Appointment :

01.04.2010

PAN No.:

AITPG4629E

DIN No.:

02296230

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	U74899DL1978PLC009164	SADHU FORGING LIMITED	Whole-time director	01/04/2010	05/08/2008	-	Active	NO
2	U17111HR1995PTC032609	SADHUSONS INDIA PRIVATE LIMITED	Director	21/10/2008	21/10/2008	14/09/2011	Active	NO
3	U52399CH2009PTC031874	JVS IMPEX PRIVATE LIMITED	Director	03/01/2011	03/01/2011	02/01/2013	Active	NO
4	U34100DL2011PTC222856	Three S Auto Components Private Limited	Director	27/07/2011	27/07/2011	-	Active	NO
5	U29248DL2011PTC228364	Twadiyam TechForge Private Limited	Director	07/12/2011	07/12/2011	-	Active	NO

MAJOR SHAREHOLDERS

As on 28.09.2013

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2013

Category	Percentage
Bodies corporate	4.53
Directors or relatives of Directors	91.73
Others	3.74
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Steel Forging.

Products :

Product Description	ITC Code
Steel Billets Round and Ingots	72283029
Steel Forging	73261910
Transmission Gear	87089900

GENERAL INFORMATION

Customers :

Arvin Meritor
BRP
Eicher
EPT
Escorts
Hero
JCB
Mahindra
Maruti Suzuki
Royal Enfield
SAME
Swaraj
Tata
TAFE
Valeo
Yamaha

No. of Employees :

Information denied by management / (Approximately)

Bankers :

State Bank of Patiala, Plot No.7A, Sector-24, Faridabad - 121005, Haryana, India
Standard Chartered Bank, Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, India
Kotak Mahindra Bank
ING Vysya Bank Limited
Axis Bank
HDFC Bank Limited
State Bank of India
The Catholic Syrian Bank Limited

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee term loans from banks	11.749	29.920
Loans taken for fixed assets	8.299	5.275
Short Term Borrowings
Rupee term loans from banks	497.825	479.991
Total	517.873	515.186


Banking Relations :	--

Auditors :
Name :	Mehra Goel and Company Chartered Accountants
Address :	505, Chiranjivi Tower, Nehru Place, New Delhi – 110019, India
PAN No.:	AABFM1488M

Associates :	Sadhu Overseas Sadhu Auto Parts Private Limited SPL Industries Limited D.P Engg Industries Private Limited Elkay Telelink Limited Shivanshu Sintered Products Private Limited

CAPITAL STRUCTURE

As on 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

595000	Equity Shares	Rs.100/- each	Rs.59.500 Millions
5000	Preference Share	Rs.100/- each	Rs.0.500 Million
	Total		Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

564500	Equity Shares	Rs.100/- each	Rs.56.450 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	56.450	56.450	56.450
(b) Reserves & Surplus	718.603	707.751	656.182
(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)	775.053	764.201	712.632

(3) Non-Current Liabilities
(a) long-term borrowings	20.048	35.979	40.805
(b) Deferred tax liabilities (Net)	63.106	66.578	65.518
(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)	83.154	102.557	106.323

(4) Current Liabilities
(a) Short term borrowings	497.825	479.991	463.574
(b) Trade payables	376.084	401.977	326.022
(c) Other current liabilities	182.182	100.011	91.031
(d) Short-term provisions	12.292	16.811	7.121
Total Current Liabilities (4)	1,068.383	998.790	887.748

TOTAL	1,926.590	1,865.548	1,706.703

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	605.649	591.232	557.083
(ii) Intangible Assets	1.216	1.071	0.000
(iii) Capital work-in-progress	4.432	4.858	22.838
(iv) Intangible assets under development	0.000	0.516	0.524
(b) Non-current Investments	0.271	0.271	0.271
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	69.669	49.769	48.714
(e) Other Non-current assets	0.954	0.000	0.908
Total Non-Current Assets	682.191	647.717	630.338

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	651.341	672.979	563.582
(c) Trade receivables	509.526	483.365	493.043
(d) Cash and cash equivalents	5.631	3.621	2.033
(e) Short-term loans and advances	77.901	57.866	17.707
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1,244.399	1,217.831	1,076.365

TOTAL	1,926.590	1,865.548	1,706.703

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		2,333.977	2603.118	2221.217
		Other Income		12.683	10.364	8.581
		TOTAL (A)		2,346.660	2,613.482	2,229.798

Less	EXPENSES
		Cost of Materials Consumed		1,172.377	1442.918	1228.761
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		15.225	(97.580)	(54.570)
		Employee Benefits Expenses		258.882	246.312	205.285
		Other Expenses		736.768	812.168	670.881
		TOTAL (B)		2,183.252	2,403.818	2,050.357

Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			163.408	209.664	179.441

Less	FINANCIAL EXPENSES (D)			80.053	76.451	54.622

	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			83.355	133.213	124.819

Less	DEPRECIATION/ AMORTISATION (F)			66.591	63.491	58.712

	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			16.764	69.722	66.107

Less	TAX (H)			5.911	23.059	19.978

	PROFIT/(LOSS) AFTER TAX (G-H) (I)			10.853	46.663	46.129

	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	332.432	304.497	223.682
	TOTAL EARNINGS			332.432	304.497	223.682

	IMPORTS
			Raw Materials	0.000	0.000	0.756
			Stores & Spares	1.776	1.869	2.172
			Capital Goods	16.409	9.639	9.617
			R & M Machinery	0.000	0.000	0.203
	TOTAL IMPORTS			18.185	11.508	12.748

	Earnings Per Share (Rs.)			9.23	82.66	81.72

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.46	1.79	2.07

Net Profit Margin (PBT/Sales)	(%)	0.72	2.68	2.98

Return on Total Assets (PBT/Total Assets}	(%)	0.87	3.75	3.93

Return on Investment (ROI) (PBT/Networth)		0.02	0.09	0.09

Debt Equity Ratio (Total Debt /Networth)		0.67	0.68	0.71

Current Ratio (Current Asset/Current Liability)		1.16	1.22	1.21

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	56.450	56.450	56.450
Reserves & Surplus	656.182	707.751	718.603
Net worth	712.632	764.201	775.053

long-term borrowings	40.805	35.979	20.048
Short term borrowings	463.574	479.991	497.825
Total borrowings	504.379	515.970	517.873
Debt/Equity ratio	0.708	0.675	0.668

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	2,221.217	2,603.118	2,333.977
		17.193	-10.339

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	2,221.217	2,603.118	2,333.977
Profit	46.129	46.663	10.853
	2.08%	1.79%	0.47%

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	Yes
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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee term loans from others	0.000	0.784
Total	0.000	0.784

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90040804	11/02/1991	2,250,000.00	The Haryana State Industrial Development Corp. Limited	Bays No. 17;18;19; Sector 17 -A, Oppsite LIC Building, Chandigarh, Punjab, India	-
2	90040723	16/03/1991 *	9,000,000.00	The Haryana State Industrial Development Corp. Limited	Sector 17 -A, Chandigarh, Punjab, India	-
3	90040403	28/09/2012 *	670,000,000.00	STATE BANK OF PATIALA	Plot No.7a, Sector-24, Faridabad, Haryana - 121005, India	B60825809
4	90040293	10/05/1985 *	640,000.00	The Haryana State Industrial Development Corp. Limited	Bays No. 17;18;19; Sector 17 -A, Oppsite LIC Building, Chandigarh, Punjab, India	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.59.14
UK Pound	1	Rs.99.02
Euro	1	Rs.80.63

INFORMATION DETAILS

Information Gathered by :	NYA

Analysis Done by :	RAS

Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO

TOTAL		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

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.