MIRA INFORM REPORT

Report Date :

18.03.2014

IDENTIFICATION DETAILS

Name :	MEDHA SERVO DRIVES PRIVATE LIMITED
Registered Office :	P-4/5B, IDA, Nacharam, Hyderabad-500076, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.01.1984
Com. Reg. No.:	01-004436
Capital Investment / Paid-up Capital :	Rs.208.772 Millions
CIN No.: [Company Identification No.]	U31103AP1984PTC004436
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in the Manufacturing and Selling of Electronic Equipment’s and Caters to both Domestic and International Markets. The Company also provides Annual Maintenance Services.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 18670000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track record. Overall financial of the company seems to be strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered for business dealing 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	India Ratings and Research
Rating	IND A+ [Long Term]
Rating Explanation	Have adequate degree of safety and carry very low credit risk.
Date	28.01.2014

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 DECLINED

Management non co-operative [91-40-67237000]

LOCATIONS

Registered / Corporate Office / Factory 1 :	P-4/5, B IDA, Nacharam, Hyderabad-500076, Andhra Pradesh, India
Tel. No.:	91-40-27171101 / 2791 / 3990
Fax No.:	91-40-27174908
E-Mail :	info@medhaindia.com medhas@hd2.vsnl.net.in hyd2_medhas@sancharnet.in srinivasacs@gmail.com
Website :	http://www.medhaindia.com
Factory 2 :	Survey No. 780/781, Jodimetla “X” Road, Korremula Village, Ghatkesar Mandal, R. R. District - 501301, Andhra Pradesh, India
E-Mail :	Production  : production@medhaindia.com Marketing   : marketing@medhaindia.com EDP             : edp@medhaindia.com Materials    : materials@medhaindia.com Career        : hr@medhaindia.com
R & D Centre :	# 2-3-2/A, Behind Mint Compound, Cherlapally, R R District – 500051, Andhra Pradesh, India

DIRECTORS

AS ON 27.09.2013

Name :

Mr. Y. Yugandhar Reddy

Designation :

Managing Director

Address :

12-13-312/1, Street No. 13, Tarnaka, Secunderabad – 500017, Andhra Pradesh, India

Date of Birth/Age :

01.07.1953

Date of Appointment :

07.01.1984

Din No.:

01344601

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	U31103AP1984PTC004436	MEDHA SERVO DRIVES PRIVATE LIMITED	Managing director	30-09-2004	30-09-2004	-	Active	NO
2	U92114AP2002PTC038481	MEDHASSU e SOLUTIONS (INDIA) PRIVATE LIMITED	Director	08-10-2005	08-10-2005	31-10-2006	Active	NO
3	U45400AP2007PLC053513	RHC VENTURES LIMITED	Director	10-04-2007	10-04-2007	26-03-2010	Active	NO
4	U35122AP2009PTC064051	MEDHA RAILWAY EQUIPMENTS PRIVATE LIMITED	Director	18-06-2009	18-06-2009	-	Active	NO

Name :

Mr. P. Saraschandra Babu

Designation :

Director

Address :

Plot No. C8, Cresent Road, Behind Society Office, Sainikpuri, Secunderabad – 500062, Andhra Pradesh, India

Date of Birth/Age :

25.07.1947

Date of Appointment :

24.04.1984

Din No.:

02483837

Name :

Mr. N. Srinivas Reddy

Designation :

Whole Time Director

Address :

F 101, LR Nestle, D. No. 385/12, 1 to 8, Gandhi Nagar, New Bakaram, Hyderabad, Andhra Pradesh, India

Date of Birth/Age :

10.02.1967

Date of Appointment :

12.12.1997

Din No.:

01373219

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	U31103AP1984PTC004436	MEDHA SERVO DRIVES PVT LTD	Director	12-12-1997	12-12-1997	-	Active	NO
2	U92114AP2002PTC038481	MEDHASSU e SOLUTIONS (INDIA) PRIVATE LIMITED	Director	08-10-2005	08-10-2005	31-10-2006	Active	NO
3	U45400AP2007PLC053513	RHC VENTURES LIMITED	Director	10-04-2007	10-04-2007	26-03-2010	Active	NO
4	U40109AP2005PTC046107	SELCO GREEN ENERGY PRIVATE LIMITED	Director	30-01-2008	20-12-2007	14-08-2009	Active	NO
5	U74900AP2008PTC060706	MEDHA TRACTION EQUIPMENT PRIVATE LIMITED	Managing director	01-12-2009	23-08-2008	-	Active	NO
6	U35122AP2009PTC064051	MEDHA RAILWAY EQUIPMENTS PRIVATE LIMITED	Director	18-06-2009	18-06-2009	-	Active	NO
7	U35990AP2011PTC073519	MEDHA GANSER FUEL SYSTEMS PRIVATE LIMITED	Director	25-03-2011	25-03-2011	-	Active	NO
8	AAB-7919	MITHRA VENTURE PROJECTS & INVESTMENT LLP	Body corporate as Designated Partner	01-10-2013	01-10-2013	-	Active	NO

Name :

Mr. Vinod Kumar Agarwal

Designation :

Director

Address :

F-12, Madhura Nagar, Sanjeeva Reddy Nagar, Hyderabad, Andhra Pradesh, India

Date of Birth/Age :

25.03.1969

Date of Appointment :

16.05.2002

Din No.:

02500909

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	U31103AP1984PTC004436	MEDHA SERVO DRIVES PVT LTD	Director	16-05-2002	16-05-2002	-	Active	NO
2	U45204DL2010PTC203805	G&A INFRASTRUCTURE INDIA PRIVATE LIMITED	Director	08-06-2010	08-06-2010	01-08-2012	Active	NO
3	U72200DL2006PTC152905	US TECH SOLUTIONS PRIVATE LIMITED	Director	05-09-2011	05-09-2011	01-08-2012	Active	NO

Name :

Mr. Subodh P Yeotikar

Designation :

Whole Time Director

Address :

F-402, Akruti Homes, Nagarjuna Nagar, Tarnaka, Secunderabad, Andhra Pradesh, India

Date of Birth/Age :

07.04.1963

Date of Appointment :

16.05.2002

Din No.:

02514445

Name :

Mr. Y. Kasyap Reddy

Designation :

Executive Director- Business Development

Address :

12-13-312/1, Street No. 13, Tarnaka, Secunderabad – 500017, Andhra Pradesh, India

Date of Birth/Age :

17.03.1979

Date of Appointment :

1.04.2008

Din No.:

02088825

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	U40109AP2005PTC046107	SELCO GREEN ENERGY PRIVATE LIMITED	Director	30-01-2008	20-12-2007	14-08-2009	Active	NO
2	U52110AP1992PLC014056	SELCO INTERNATIONAL LIMITED	Director	29-09-2008	20-12-2007	05-02-2009	Active	YES
3	U31103AP1984PTC004436	MEDHA SERVO DRIVES PRIVATE LIMITED	Director	19-09-2008	01-04-2008	-	Active	NO
4	U74900AP2008PTC060706	MEDHA TRACTION EQUIPMENT PRIVATE LIMITED	Director	23-08-2008	23-08-2008	-	Active	NO
5	U35990AP2011PTC073519	MEDHA GANSER FUEL SYSTEMS PRIVATE LIMITED	Director	25-03-2011	25-03-2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ch. Jaganmohan Gupta
Designation :	Secretary
Address :	Flat No.205, VRN’s Saikiran Residency, Kartikeya Nagar, Nacharam, Hyderabad-500076, Andhra Pradesh, India
Date of Birth/Age :	02.11.1980
Date of Appointment :	07.01.2009
PAN No :	AEMPC0108F

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2013

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 27.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	86.24
Others	13.76
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the Manufacturing and Selling of Electronic Equipment’s and Caters to both Domestic and International Markets. The Company also provides Annual Maintenance Services.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

• State Bank of India, Commercial Branch, Bank Street, Koti, Hyderabad-500095, Andhra Pradesh, India
• ICICI Bank

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Term loans from banks	0.000	30.016
Short Term Borrowings
Working capital loans from banks	0.000	824.252
TOTAL	0.000	854.268

Banking Relations :	--
Auditors 1 :
Name :	Brahmayya and Company Chartered Accountants
Address :	Golden Green Apartments, 4^th Floor, Erramangil Colony, Hyderabad-500016, Gujarat, India
PAN No:	AADFB8032G
Auditors 2 :
Name :	V.G. Rao and Associates Chartered Accountants
Address :	4-1-898 Flat No. 306, 3^rd Floor, Oasis Plaza Tilak Road, Beside ABIDS Function Hall, ABIDS, Hyderabad – 500001, Andhra Pradesh, India
PAN No:	AABFV3661M
Associates/Subsidiaries :	Medha Railway Equipments Private Limited [U35122AP2009PTC064051] Medha Ganser Fuel Systems Private Limited [U35990AP2011PTC073519]
Joint Venture :	Medha Traction Equipment Private Limited [U74900AP2008PTC060706]
Other Related Parties :	Medha Charitable Trust

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2100000	Equity Shares	Rs.100/- each	Rs.210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2087719	Equity Shares	Rs.100/- each	Rs.208.772 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	208.772	208.772	208.772
(b) Reserves & Surplus	4458.731	3149.820	1914.454
(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)	4667.503	3358.592	2123.226
(3) Non-Current Liabilities
(a) Long-term borrowings	38.583	73.848	46.005
(b) Deferred tax liabilities (Net)	27.090	26.795	25.079
(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)	65.673	100.643	71.084
(4) Current Liabilities
(a) Short term borrowings	0.000	824.252	639.506
(b) Trade payables	255.471	284.042	519.025
(c) Other current liabilities	85.891	88.865	49.298
(d) Short-term provisions	73.929	12.273	30.661
Total Current Liabilities (4)	415.291	1209.432	1238.490
TOTAL	5148.467	4668.667	3432.800
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	641.105	592.864	510.864
(ii) Intangible Assets	3.654	4.331	5.133
(iii) Capital work-in-progress	179.893	103.423	17.074
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	160.750	30.200	30.500
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	152.009	117.831	69.870
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1137.411	848.649	633.441
(2) Current assets
(a) Current investments	553.268	113.974	98.400
(b) Inventories	1259.292	1044.073	794.031
(c) Trade receivables	1565.340	1564.932	1261.608
(d) Cash and cash equivalents	231.967	884.023	349.153
(e) Short-term loans and advances	371.259	189.999	284.924
(f) Other current assets	29.930	23.017	11.243
Total Current Assets	4011.056	3820.018	2799.359
TOTAL	5148.467	4668.667	3432.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	5288.583	5043.195	4660.672 [Gross Sales]
		Other Income	56.841	19.194	NA
		TOTAL	5345.424	5062.389	NA
Less	EXPENSES
		TOTAL	3580.751	3359.651	NA
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		1764.673	1702.738	1485.793
Less	FINANCIAL EXPENSES		33.469	54.651	75.146
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1731.204	1648.087	1410.647
Less/ Add	DEPRECIATION/ AMORTISATION		49.989	47.399	39.547
	EARNING BEFORE TAXES AND EXTRA ORDINARY ITEMS		1681.215	1600.688	1371.100
Less	EXTRA ORDINARY ITEMS		3.010	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX		1678.205	1600.688	1371.100
Less	TAX		312.951	292.530	276.140
	PROFIT / (LOSS) AFTER TAX		1365.254	1308.158	1094.960
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2449.220	1344.854	432.528
Less	APPROPRIATIONS
		Transfer to General Reserve	137.000	131.000	109.600
		Proposed Dividend	62.632	62.632	62.632
		Corporate Dividend Tax	10.644	10.160	10.402
	BALANCE CARRIED TO THE B/S		3604.198	2449.220	1344.854
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	25.208	28.097	1.828
	TOTAL EARNINGS		25.208	28.097	1.828
	IMPORTS
		Raw Materials	1051.255	979.038	710.637
		Capital Goods	13.147	3.644	3.787
	TOTAL IMPORTS		1064.402	982.682	714.424
	Earnings / (Loss) Per Share (Rs.)		653.95	626.60	524.48

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	25.54	25.84	NA
Net Profit Margin (PBT/Sales)	(%)	31.73	31.74	NA
Return on Total Assets (PBT/Total Assets}	(%)	34.91	35.30	40.56
Return on Investment (ROI) (PBT/Networth)		0.35	0.47	0.65
Debt Equity Ratio (Total Debt/Networth)		0.01	0.27	0.32
Current Ratio (Current Asset/Current Liability)		9.65	3.15	2.26

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	208.772	208.772	208.772
Reserves & Surplus	1,914.454	3,149.820	4,458.731
Net worth	2,123.226	3,358.592	4,667.503
long-term borrowings	46.005	73.848	38.583
Short term borrowings	639.506	824.252	0.000
Total borrowings	685.511	898.100	38.583
Debt/Equity ratio	0.323	0.267	0.008

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	4,660.672	5,043.195	5,288.583
		8.207	4.866

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	4,660.672	5,043.195	5,288.583
Profit	1,094.960	1,308.158	1,365.254
	23.49%	25.94%	25.82%

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	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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	90129510	18/09/1996 *	13,700,000.00	STATE BANK OF INDIA	NACHARAM I.A., HYDERABAD, ANDHRA PRADESH, INDIA	-
2	90129502	03/04/1996 *	11,500,000.00	STATE BANK OF INDIA	NACHARAM I.A., HYDERABAD, ANDHRA PRADESH, INDIA	-
3	90129483	29/03/2012 *	2,115,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, BANK STREET, KOTI, HYDERABAD - 500095,  ANDHRA PRADESH, INDIA	B38784856
4	90127609	19/04/1997 *	2,400,000.00	STATE BANK OF INDIA	NACHARAM I.A., HYDERABAD, ANDHRA PRADESH, INDIA	-
5	90129479	25/05/1999 *	2,400,000.00	STATE BANK OF INDIA	NACHARAM I.A., HYDERABAD, ANDHRA PRADESH, INDIA	-

* Date of charge modification

CORPORATE INFORMATION:

Subject is a Private Limited Company incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the manufacturing and selling of electronic equipment’s and caters to both domestic and international markets. The Company also provides annual maintenance services.

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Deferred sales tax loan	38.583	43.832
TOTAL	38.583	43.832

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.61.52
UK Pound	1	Rs.102.22
Euro	1	Rs.85.23

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		66

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.