MIRA INFORM REPORT

Report Date :

19.03.2014

IDENTIFICATION DETAILS

Name :	ARDEX ENDURA (INDIA) PRIVATE LIMITED (w.e.f 10.01.2007)
Formerly Known As :	BAL ENDURA ADHESIVES (INDIA) PRIVATE LIMITED BAL BUILDING ADHESIVES (INDIA) PRIVATE LIMITED
Registered Office :	Unit No. 406 and 407, Brigade Rubix, No. 20, Yeshwantpur Hobli, HMT Campus, Bangalore – 560022, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	13.06.1997
Com. Reg. No.:	08-022383
Capital Investment / Paid-up Capital :	Rs.130.000 Millions
CIN No.: [Company Identification No.]	U24233KA1997PTC022383
TAN No.: [Tax Deduction & Collection Account No.]	BLRB04011A
PAN No.: [Permanent Account No.]	AACB6072E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Marketing of Tile adhesives, Grouts, Flooring, Waterproofing and Allied Products etc.
No. of Employees :	1000 (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 1690000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There is a dip in profit of the company in the year 2013. However, liquidity position seems to be decent. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered normal 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	CRISIL
Rating	Long Term Rating = BBB + (Suspended)
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	21.11.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A2 (Suspended)
Rating Explanation	Strong degree of safety and low credit risk
Date	21.11.2013

Reason for suspension: Non Co-operation (Absence of adequate information)

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 (GENERAL DETAILS)

Name :	Mr. Ranjan
Designation :	Marketing Manager
Contact No.:	91-9880605770
Date :	08.03.2014

LOCATIONS

Registered Office :	Unit No. 406 and 407, Brigade Rubix, No. 20, Yeshwantpur Hobli, HMT Campus, Bangalore – 560022, Karnataka, India
Tel. No.:	91-80-66746500
Mobile No.:	91-9880605770 (Mr. Ranjan)
Fax No.:	Not Available
E-Mail :	mariyappa.ramachandra@ardexendura.com simm.mark@ardexendura.com krcs@balendura.com customercare@ardexendura.com
Website :	www.ardex.de www.ardex.co.uk www.balendura.com
Factory :	Located At: Mumbai Bangalore Ahmedabad

DIRECTORS

As on 08.07.2013

Name :

Mr. Gopinath Krishnan

Designation :

Dy. Managing Director and Finance Director

Address :

Flat 1001/2, Manasarovar, A Wing, Neelkanth Heights, Mumbai-400610. Maharashtra, India

Date of Birth/Age :

30.04.1965

Date of Appointment :

01.01.2010

PAN No.:

ADIPK9229L

DIN No.:

01543309

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	U24233KA1997PTC022383	ARDEX ENDURA (INDIA) PRIVATE LIMITED	Managing director	01/01/2010	29/09/2004	-	Active	NO
2	U24305KA2007PTC042362	BAL ENDURA BUILDING PRODUCTS PRIVATE LIMITED	Director	17/05/2010	14/12/2009	-	Active	NO

Name :

Mark John Simm

Designation :

Director

Address :

Plot No, 92, Megnola Garden, 30th K M Bangalore Mysore Highway, Syammangala Cross Bidadi Industrial Area, Bangalore-562109, Karnataka, India

Date of Birth/Age :

19.01.1953

Date of Appointment :

01.01.2010

DIN No.:

00497190

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	U24233KA1997PTC022383	ARDEX ENDURA (INDIA) PRIVATE LIMITED	Director	01/01/2010	01/02/1998	-	Active	NO
2	U24305KA2007PTC042362	BAL ENDURA BUILDING PRODUCTS PRIVATE LIMITED	Director	03/04/2007	03/04/2007	-	Active	NO

Name :

Mr. Vijay Aggarwal

Designation :

Managing Director

Address :

Storing Diamond, 4^th Floor, 24 Mount Mary Road, Bandra West, Mumbai-400050, Maharashtra, India

Date of Birth/Age :

08.07.1968

Date of Appointment :

10.01.2010

DIN No.:

00515412

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	U24233KA1997PTC022383	ARDEX ENDURA (INDIA) PRIVATE LIMITED	Managing director	01/01/2010	29/09/2004	-	Active	NO
2	U24305KA2007PTC042362	BAL ENDURA BUILDING PRODUCTS PRIVATE LIMITED	Director	17/05/2010	14/12/2009	-	Active	NO

Name :

Mr. Aditya Bob Mahendru

Designation :

Director

Address :

93, Kherapati Colony, Gwaliaer -474002, Madhya Pradesh, India

Date of Birth/Age :

17.08.1978

Date of Appointment :

29.09.2007

DIN No.:

01624473

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	U24233KA1997PTC022383	ARDEX ENDURA (INDIA) PRIVATE LIMITED	Director	29/09/2007	25/07/2007	-	Active	NO
2	U67120MH1995PTC092919	DISCOVERY FINANCIAL SERVICES PRIVATE LIMITED	Director	05/08/2013	29/01/2013	-	Active	NO

Name :

Mark Charles Edgar Carpenter

Designation :

Director

Address :

9 Mellrose Drive Singapore 358506

Date of Birth/Age :

22.03.1963

Date of Appointment :

04.11.2010

DIN No.:

03281187

Name :

Mark Eslamlooy

Designation :

Director

Address :

IM Mailand 9, Bochum-44797

Date of Birth/Age :

14.08.1966

Date of Appointment :

16.03.2012

DIN No.:

05194893

Name :

Venugopal Madhavan Panicker

Designation :

Director

Address :

A801, Neel Sidhi Towers Sector 12, Plot 195, Vashi Navi, Mumbai – 400703, Maharashtra, India

Date of Birth/Age :

15.07.1964

Date of Appointment :

27.04.2010

DIN No.:

02975912

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	U14103MH2006PLC160848	RMC Readymix Porselano (India) Limited	Additional director	01/03/2010	01/03/2010	07/08/2013	Active	NO
2	U72900MH2005PTC154875	IFAN Finserv Private Limited	Director	30/09/2010	10/03/2010	-	Active	NO
3	U24233KA1997PTC022383	ARDEX ENDURA (INDIA) PRIVATE LIMITED	Director	27/04/2010	27/04/2010	-	Active	NO
4	L26942AP1992PLC014033	PRISM CEMENT LIMITED	Whole-time director	25/08/2013	25/08/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Kurubar Mariyappa Ramchandra
Designation :	Secretary
Address :	No. 130, Ramchandra Nagar, Nandini Lay out, IV Block, Bangalore-560096, Karnataka, India
Date of Birth/Age :	24.06.1961
Date of Appointment :	05.01.1998
PAN No.:	AALPR6341N

MAJOR SHAREHOLDERS

As on 08.07.2013

Names of Shareholders	No. of Shares	% of Holding
Ardex Investments Mauritius Limited, Mauritius	6500000	50.00
Prism Cement Limited, India	6500000	50.00
Total	13000000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 08.07.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Tile adhesives, Grouts, Flooring, Waterproofing and Allied Products etc.

Products :

Product Description	ITC Code
Tile Fixing Cement Adhesives And Allied Products	3214.90

Exports :

Products :

• Tile adhesives
• Grouts
• Flooring
• Waterproofing
• Allied Products

Countries :

• Europe
• Middle East
• Africa
• USA
• UK
• Asian Countries
• Switzerland
• Srilanka

Terms :

Selling :

Cash and Advance Payment

Purchasing :

Cash and Advance Payment

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity*	Actual Production
Tile Fixing Adhesives and Grouts, Flooring Products and Water Proofing Products	MT	38000	29418.42**

NOTE:

*Installed capacity is as certified by the management and relied upon by the auditors, being technical matter. Bangalore Plant 18000 MT (Double Shift) and Savli Plant 20000 MT (Single Shift)

**Including outsourced products.

There is no Licensing requirement for company's products.

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

• ING Vysya Bank Limited, Chamber of Commerce Building, Kempegowda Road, Bangalore-560009, Karnataka, India
• Axis Bank Limited, Bangalore, Karnataka, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee term loans from banks (Secured by movable assets and equitable mortgage of industrial land)	3.351	6.190
Rupee term loans from others	0.873	0.000
Other loans and advances	0.000	1.963
Short Term Borrowings
Rupee term loans from banks	41.787	0.000
Loans repayable on demand from banks	0.000	34.108
Total	46.011	42.261

Banking Relations :	--
Auditors :
Name :	N M Raiji and Company Chartered Accountant
Address :	6^th Floor, Universal Insurance Building, Pherozeshah Mehta Road, Fort, Mumbai – 400001, Maharashtra, India
PAN No:	AAAFN4217G
Fellow Subsidiaries :	Ardex Australia Pty Limited Ardex, Gmbh, Germany Ardex Middle East FZE Ardex Newzealand Limited Ardex UK Limited Ardex Anagen, GmBH, Germany Building Adhesives Limited, UK H and R Johnson (India) TBK Limited CIN No.: U45200MH1996PLC101892 TBK Bansal Ceramics Private Limited CIN No.: U26933MH2010PTC207303 TBK Deepgiri Tile Bath Kitchen Private Limited CIN No.: U14101MH2008PTC179615 TBK Deziner's Home Private Limited CIN No.: U26999MH2009PTC192978 TBK Florance Ceramics Private Limited CIN No.: U26900DL2011PTC220636 TBK Krishna Tile Bath Kitchen Private Limited CIN No.: U52333PN2011PTC139808 TBK P B shah Tile Bath kitchen Private Limited CIN No.: U26914MP2008PTC021225 TBK Prathap Tile Bath Kitchen Private Limited CIN No.: U26931KA2010PTC056090 TBK Samiyaz Tile Bath Kitchen Private Limited CIN No.: U26916MH2007PTC176528 TBK Shri Ram Tile Bath Kitchen Private Limited CIN No.: U90009DL2009PTC188429 TBK Unique Jalgaon Tile Bath Kitchen Private Limited CIN No.: U26916MH2009PTC190212 TBK Venkataramiah Tile Bath Kitchen Private Limited CIN No.: U26900KA2010PTC056306 Ardex (Shanghai) Company Limited, China
Joint Venture :	Ardex Investments Mauritius Limited Prism Cement Limited
Sister Concern :	N.M. Raiji and Company

CAPITAL STRUCTURE

As on 08.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 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	130.000	130.000	130.000
(b) Reserves & Surplus	292.512	226.947	155.547
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	422.512	356.947	285.547
(3) Non-Current Liabilities
(a) long-term borrowings	4.224	8.153	0.812
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	6.952	5.892	4.227
(d) long-term provisions	14.600	12.455	11.556
Total Non-current Liabilities (3)	25.776	26.500	16.595
(4) Current Liabilities
(a) Short term borrowings	41.787	34.108	20.619
(b) Trade payables	93.955	76.102	68.292
(c) Other current liabilities	58.743	19.334	24.017
(d) Short-term provisions	25.439	24.357	21.630
Total Current Liabilities (4)	219.924	153.901	134.558
TOTAL	668.212	537.348	436.700
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	107.274	115.649	121.881
(ii) Intangible Assets	0.200	0.276	0.367
(iii) Capital work-in-progress	155.860	12.411	2.944
(iv) Intangible assets under development	6.582	0.000	0.000
(b) Non-current Investments	0.104	0.104	0.104
(c) Deferred tax assets (net)	9.080	4.939	3.992
(d) Long-term Loan and Advances	16.403	15.575	6.937
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	295.503	148.954	136.225
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	148.103	129.551	85.731
(c) Trade receivables	171.002	100.517	81.258
(d) Cash and cash equivalents	32.573	141.584	119.393
(e) Short-term loans and advances	20.881	10.558	11.074
(f) Other current assets	0.150	6.184	3.019
Total Current Assets	372.709	388.394	300.475
TOTAL	668.212	537.348	436.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES		NA	NA	NA
	EXPENSES		NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		109.364	119.958	144.951
Less	DEPRECIATION/ AMORTISATION		14.224	13.668	9.188
	PROFIT/(LOSS) BEFORE TAX		95.140	106.290	135.763
Less	TAX		29.576	34.890	47.523
	PROFIT/(LOSS) AFTER TAX		65.564	71.400	88.240
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		226.947	155.547	67.307
	BALANCE CARRIED TO THE B/S		292.511	226.947	155.547
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	6.521	13.620	7.184
		Commission Earnings	0.402	0.594	0.000
	TOTAL EARNINGS		6.923	14.214	7.184
	IMPORTS
		Raw Materials	53.176	35.334	46.404
		Trading Goods	6.915	7.857	3.408
	TOTAL IMPORTS		60.091	43.191	49.812
	Earnings Per Share (Rs.)		5.04	5.49	6.79

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	19.16	20.44	31.60
Return on Investment (ROI) (PBT/Networth)		0.23	0.30	0.48
Debt Equity Ratio (Total Debt /Networth)		0.11	0.12	0.08
Current Ratio (Current Asset/Current Liability)		1.69	2.52	2.23

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	130.000	130.000	130.000
Reserves & Surplus	155.547	226.947	292.512
Net worth	285.547	356.947	422.512
long-term borrowings	0.812	8.153	4.224
Short term borrowings	20.619	34.108	41.787
Total borrowings	21.431	42.261	46.011
Debt/Equity ratio	0.075	0.118	0.109

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	No
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The registered office of the company has been shifted from 73/1B, Byregowda Industrial Estate, Srigandhanagar, Hegganahalli, Vishwaneedem, Post Peenya 2^nd Stage, Bangalore - 560 091, Karnataka, India to the present address w.e.f. 11.11.2013

BACKGROUND

Subject is a joint venture between Ardex Beteiligungs GmbH with holding of 6,500,000 equity shares (50%) and

Prism Cement Limited (Formerly, H & R Johnson (India) Limited which is amalgamated with Prism Cement Limited) with holding of 6,500,000 equity shares (50%). The Company is engaged in the business of manufacturing and marketing of Tile adhesives, grouts, flooring, waterproofing and allied products.

OPERATIONS

The Company sold 36,112 MT of adhesives and other products including liquids during the year. The production and sales are expected to continue to grow. The Company’s proposed 3rd Plant with a capacity of 50,000 MT of adhesives, grouts and allied products near Bangalore, Karnataka is expected to commence commercial production in September 2013. The Company has planned to set up its new 4th Plant near Durgapur, West Bengal to tap the emerging opportunities in eastern markets of India.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10294568	12/10/2011 *	143,000,000.00	AXIS BANK LIMITED	No 100 Ft Road, Peenya Industrial Estate, Peenya First Stage, Bangalore, Karnataka - 560058, India	B24468423

*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 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.60.95
UK Pound	1	Rs.101.37
Euro	1	Rs.84.89

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--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	YES
--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

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.