MIRA INFORM REPORT

Report Date :

15.03.2014

IDENTIFICATION DETAILS

Name :	SHRI BALAJI INDUSTRIAL PRODUCTS LIMITED
Formerly Known as:	BALAJI INDUSTRIAL PROCUCTS LIMITED
Registered Office :	48, Industrial Area, Jhotwara, Jaipur – 302012, Rajasthan
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.11.1983
Com. Reg. No.:	17-002831
Capital Investment / Paid-up Capital :	Rs. 127.682 Millions
CIN No.: [Company Identification No.]	U27106RJ1983PLC002831
TAN No.: [Tax Deduction & Collection Account No.]	JPRB01532G
PAN No.: [Permanent Account No.]	AAACB7092E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Iron Casting like Hi-Chrome Grinding Media Balls and Bi-Metallic Grinding Rolls and Mill Internals, Sponge Iron and M S Ingot.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2360000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The rating reflects company’s established track record in the castings and forgings industry supported by long-standing client base and improved financial performance during financial year 2013. 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities: “BBB”
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	07.03.2014

Rating Agency Name	CARE
Rating	Short term bank facilities: “A3+”
Rating Explanation	Moderate degree of safety and high credit risk.
Date	07.03.2014

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 PARTED BY

Name :	Mr. B.R. Soni
Designation :	Accounts Officer
Contact No.:	91-141-2340807
Date :	13.03.2014

LOCATIONS

Registered Office/ Factory :	48, Industrial Area, Jhotwara, Jaipur – 302012, Rajasthan, India
Tel. No. :	91-141-234060/ 2340809/ 2340807/ 6623777
Fax No. :	91-141-2340807
E-Mail :	cs@balaji-castings.com support@balaji-cashings.com balaji_ltd@sify.com balaji_ltd@rediffmail.com
Website :	www.balaji-castings.com

DIRECTORS

As on 28.09.2013

Name :

Kailash Kumar Kanodia

Designation :

Managing Director

Address :

D-49, Amba Bari, Jaipur – 302012, Rajasthan, India

Date of Birth/Age :

06.07.1957

Qualification :

Graduate

Date of Appointment :

01.01.2013

PAN No.:

ADRPK6756F

DIN No. :

00274449

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	U27106RJ1983PLC002831	SHRI BALAJI INDUSTRIAL PRODUCTS LIMITED	Managing director	01/01/2013	21/11/1983	-	Active	NO
2	L51909RJ1987PLC018226	NEHA RESOURCES LIMITED (TRANSFERRED FROM WEST BENGAL)	Director	07/12/1999	07/12/1999	-	Active	NO
3	U28133RJ2008PLC025821	SHRI BALAJI INDUSTRIAL ENGINEERING LIMITED	Director	06/02/2008	06/02/2008	-	Active	NO
4	U74999WB1994PTC064490	UDAIPURIA COMMODITIES PVT.LTD.	Director	27/01/2009	27/01/2009	30/10/2012	Active	NO
5	U27101RJ1995PLC011261	WIN FERRO ALLOYS LIMITED	Director	30/09/2009	08/06/2009	-	Active	NO
6	U51909RJ1996PTC036608	SYNOX MARKETING PVT LTD	Director	12/04/2010	12/04/2010	-	Amalgamated	NO

Name :

Ashish Kanodia

Designation :

Whole-Time Director

Address :

D-49, Prabhu Chaitanya Marg, Ambabari, Jaipur – 302012, Rajasthan, India

Date of Birth/Age :

18.02.1983

Qualification :

Graduate

Date of Appointment :

14.02.2006

PAN No. :

AHHPK7462L

DIN No. :

00117243

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	U27106RJ1983PLC002831	SHRI BALAJI INDUSTRIAL PRODUCTS LIMITED	Whole-time director	01/01/2013	14/02/2006	-	Active	NO
2	U28133RJ2008PLC025821	SHRI BALAJI INDUSTRIAL ENGINEERING LIMITED	Director	06/02/2008	06/02/2008	-	Active	NO
3	U51109WB1994PTC064367	MIRIK VINIMAY PVT LTD	Director	29/09/2009	13/07/2009	-	Active	NO
4	U51102RJ1985PTC003295	PAWANSUT MARKETING PRIVATE LIMITED	Director	30/09/2009	13/07/2009	-	Active	NO
5	U51909RJ1994PTC037280	JEWELROCK BARTER PRIVATE LIMITED	Director	10/05/2010	10/05/2010	-	Amalgamated	NO
6	U27101RJ1995PLC011261	WIN FERRO ALLOYS LIMITED	Director	30/09/2011	26/08/2011	-	Active	NO

Name :

Sudhir Kumar Bansal

Designation :

Whole-Time Director

Address :

C-47, Rajapark, Jaipur – 302004, Rajashthan, India

Date of Birth/Age :

30.07.1948

Qualification :

Graduate

Date of Appointment :

01.10.2010

PAN No. :

ACTPB5323J

DIN No. :

00170512

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	U27106RJ1983PLC002831	SHRI BALAJI INDUSTRIAL PRODUCTS LIMITED	Whole-time director	01/10/2010	20/02/1994	-	Active	NO
2	U18101RJ2000PTC022946	LOWWEAR ALLOY PRODUCTS PRIVATE LIMITED	Director	07/08/2000	07/08/2000	-	Active	NO
3	U28133RJ2008PLC025821	SHRI BALAJI INDUSTRIAL ENGINEERING LIMITED	Director	06/02/2008	06/02/2008	-	Active	NO

Name :

Sujata Devi Kandoia

Designation :

Whole-Time Director

Address :

117, Industrial Area, Jhotwara, Jaipur – 302012, Rajasthan, India

Date of Birth/Age :

01.08.1962

Qualification :

Graduate

Date of Appointment :

01.04.2010

PAN No. :

ADRPK6755G

DIN No. :

00255615

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	U51102RJ1985PTC003295	PAWANSUT MARKETING PRIVATE LIMITED	Director	10/05/1985	10/05/1985	-	Active	NO
2	L51909RJ1987PLC018226	NEHA RESOURCES LIMITED (TRANSFERRED FROM WEST BENGAL)	Director	30/01/2010	07/12/1999	-	Active	NO
3	U74999WB1994PTC064490	UDAIPURIA COMMODITIES PRIVATE LIMITED	Director	27/01/2009	27/01/2009	-	Active	NO
4	U27106RJ1983PLC002831	SHRI BALAJI INDUSTRIAL PRODUCTS LIMITED	Whole-time director	01/04/2010	01/02/2010	-	Active	NO

Name :

Chedi Lal Khowala

Designation :

Director

Address :

48 Industrial Area, Jhotwara, Jaipur – 302012, Rajasthan, India

Date of Appointment :

15.02.2001

DIN No. :

02472863

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	U27101RJ1995PLC011261	WIN FERRO ALLOYS LIMITED	Director	03/04/1996	03/04/1996	26/08/2011	Active	NO
2	U27106RJ1983PLC002831	SHRI BALAJI INDUSTRIAL PRODUCTS LIMITED	Director	15/02/2001	15/02/2001	-	Active	NO

Name :

Gunjan Khatri

Designation :

Director

Address :

76, Ravindra Bhawan, Iit Roorkee, Haridwar - 249401 , Uttarakhand, India

Date of Appointment :

30.09.2009

DIN No. :

02788523

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	U27106RJ1983PLC002831	SHRI BALAJI INDUSTRIAL PRODUCTS LIMITED	Director	30/09/2009	12/10/2008	-	Active	NO
2	L51909RJ1987PLC018226	NEHA RESOURCES LIMITED (TRANSFERRED FROM WEST BENGAL)	Director	30/09/2009	20/10/2008	-	Active	NO

KEY EXECUTIVES

Name :	Mr. B.R. Soni
Designation :	Accounts Officer
Name :	Gyaneshwer Kumar
Designation :	Secretary
Date of Appointment :	01.07.2013
PAN No. :	ATPPK7787C

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2013

Names of Shareholders	No. of Shares
Nawal Kumar Kanodia	20610
Kailash Kumar Kanodia	97560
Sudhir Kumar Bansal	10753
Sujata Devi Kandoia	243746
Nirmal Kumar Kanodia	18481
Hiramony Kanodia	15312
Lowwear Alloys Private Limited, India	1255508
Mirik Vinimay Private Limited, India	3230501
Neha Resources Limited, India	4519328
Ashish Kanodia	169048
Pawansut Marketing Private Limited, India	130064
Udaipuria Commodities Private Limited, India	2811744
Shashi Bansal	10560
Shri Balaji Industrial Engineering Limited, India	235000
Total	12768215

As on 28.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	95.41
Directors or relatives of Directors	4.59
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Iron Casting like Hi-Chrome Grinding Media Balls and Bi-Metallic Grinding Rolls and Mill Internals, Sponge Iron and M S Ingot.

Products :

Item Code No. (ITC Code)	Product Description
73259100	Castings

Exports :

Products :

Iron Casting

Countries :

· UK

· China

· Russia

· Ghana

Imports :

Products :

Raw Material

Countries :

· Gulf Countries

· korea

Terms :

Selling :

L/C

Purchasing :

L/C

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

500 (Approximately)

Bankers :

· State Bank of India, Industrial Area, Jhotwara, Jaipur – 302012, Rajasthan, India

· State Bank of Bikaner and Jaipur, Industrial Area, Jhowara, Jaipur - 302012, Rajasthan, India

· Axis Bank Limited, Jhotwara, Jaipur, Rajasthan, India

Facilities :

Cash Credit: Rs.290 Millions (From State Bank of India)

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	34.527	59.556
SHORT TERM BORROWINGS
Working capital loans from banks	632.578	549.877
Total	667.105	609.433

Banking Relations :	--
Auditors :
Name :	Girdhari Lal Sharma Chartered Accountants
Address :	B-31, Ganesh Nagar, New Sanganer Road, Jaipur, Rajasthan, India
Income-tax PAN of auditor or auditor's firm :	AFMPS7396L

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12,768,215	Equity Shares	Rs.10/- each	Rs. 127.682 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	127.682	127.682
(b) Reserves & Surplus	463.097	447.370
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	590.779	575.052
(3) Non-Current Liabilities
(a) long-term borrowings	91.303	85.540
(b) Deferred tax liabilities (Net)	21.139	10.180
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	112.442	95.720
(4) Current Liabilities
(a) Short term borrowings	632.577	549.877
(b) Trade payables	259.229	251.933
(c) Other current liabilities	27.926	36.000
(d) Short-term provisions	0.000	0.059
Total Current Liabilities (4)	919.732	837.869
TOTAL	1622.953	1508.641
I. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	434.114	431.717
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	4.291	8.975
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	13.018	10.018
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	205.264	210.764
(e) Other Non-current assets	0.000	58.015
Total Non-Current Assets	656.687	719.489
(2) Current assets
(a) Current investments	1.300	1.300
(b) Inventories	264.239	288.832
(c) Trade receivables	467.166	272.071
(d) Cash and cash equivalents	53.406	55.566
(e) Short-term loans and advances	180.155	171.383
(f) Other current assets	0.000	0.000
Total Current Assets	966.266	789.152
TOTAL	1622.953	1508.641

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012
	SALES
		Income	1634.502	1295.383
		Other Income	52.832	36.705
		TOTAL (A)	1687.334	1332.088
Less	EXPENSES
		Office Expenses	976.690	837.171
			4.242	9.036
			-14.700	45.040
			37.211	34.529
		Administrative Expenses	538.132	383.525
		Advertising Expenses	0.439	0.000
		TOTAL (B)	1542.014	1309.301
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		145.320	22.787
Less	FINANCIAL EXPENSES (D)		89.751	85.123
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		55.569	(62.336)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.984	19.956
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		28.585	(82.292)
Less	TAX (H)		12.859	(26.201)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		15.726	(56.091)
	EARNINGS IN FOREIGN CURRENCY		537.591	NA
	Earnings / (Loss) Per Share (Rs.)		1.23	(4.39)

Expected Sales (2013-2014) : Rs. 1800.000 Millions

The above information has been parted by Mr. B.R. Soni (Accounts Officer).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	0.93	(4.21)
Net Profit Margin (PBT/Sales)	(%)	1.75	(6.35)
Return on Total Assets (PBT/Total Assets}	(%)	1.78	(5.52)
Return on Investment (ROI) (PBT/Networth)		0.05	(0.14)
Debt Equity Ratio (Total Debt/Networth)		1.23	1.10
Current Ratio (Current Asset/Current Liability)		1.05	0.94

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	127.682	127.682
Reserves & Surplus	447.370	463.097
Net worth	575.052	590.779
long-term borrowings	85.540	91.303
Short term borrowings	549.877	632.577
Total borrowings	635.417	723.880
Debt/Equity ratio	1.105	1.225

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	1295.383	1634.502
		26.179

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	1295.383	1634.502
Profit	(56.091)	15.726
	(4.33%)	0.96%

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 two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10452280	14/09/2013	80,000,000.00	STATE BANK OF BIKANER AND JAIPUR	INDUSTRIAL AREA, JHOWARA, JAIPUR - 302012, RAJASTHAN, INDIA	B86356185
2	10392709	22/11/2012	374,500,000.00	STATE BANK OF BIKANER AND JAIPUR	INDUSTRIAL AREA, JHOWARA, JAIPUR - 302012, RAJASTHAN, INDIA	B64419179
3	10253092	15/10/2010	50,000,000.00	STATE BANK OF BIKANER AND JAIPUR	INDUSTRIAL AREA, JHOWARA, JAIPUR - 302012, RAJASTHAN, INDIA	B00521021
4	10214977	26/03/2010	30,000,000.00	STATE BANK OF BIKANER AND JAIPUR	INDUSTRIAL AREA, JHOWARA, JAIPUR - 302012, RAJASTHAN, INDIA	A84435544
5	10215806	26/03/2010	50,000,000.00	STATE BANK OF BIKANER AND JAIPUR	INDUSTRIAL AREA, JHOWARA, JAIPUR - 302012, RAJASTHAN, INDIA	A84436310
6	90067988	29/04/2011 *	1,050,000,000.00	STATE BANK OF BIKANER AND JAIPUR (CONSORTIUM WITH A XIS BANK LIMITED)	INDUSTRIAL AREA, JHOWARA, JAIPUR - 302012, RAJASTHAN, INDIA	B13008578

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from others	13.393	3.278
Deferred sales tax loan	22.505	22.505
Loans and advances from directors	20.877	0.201
Total	56.775	25.984

FIXED ASSETS

· Land

· Buildings

· Plant and equipment

· Other pollution reduction Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipment’s

· Other Equipment’s

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 exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.52
UK Pound	1	Rs.102.22
Euro	1	Rs.85.23

INFORMATION DETAILS

Information Gathered by :	PRT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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		45

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.