MIRA INFORM REPORT

Report Date :

26.03.2014

IDENTIFICATION DETAILS

Name :	SAKKU SPINNING MILLS LIMITED
Registered Office :	Sakku House, D. No.5-87-39/1, Near Nayar Hotel, Lakshmipuram Main Road, Guntar – 522 006, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.02.2006
Com. Reg. No.:	01-048959
Capital Investment / Paid-up Capital :	Rs.124.000 millions
CIN No.: [Company Identification No.]	U18100AP2006PLC048959
TAN No.: [Tax Deduction & Collection Account No.]	HYDS17998B
PAN No.: [Permanent Account No.]	AAJCS1686M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in manufacturing of grey cotton spun yarn.
No. of Employees :	Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 613000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. External borrowing of the company seems to be huge. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

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

India’s current account deficit for the fiscal third quarter ended September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports and moderation in gold imports. Manufacturing activity and new orders in India showed their strongest growth in a year in February. The news comes as a relief after data showed Asia’s third largest economy grew by a slower-than-expected 4.7 % annually in the three months through December. The HSBC Manufacturing Purchasing Managers’ Index which gauges the business activity of India’s factories but not its’ utilities, rose to 52.5 in February, its highest in a year from 51.4 in January. Overall new orders for factory goods which rose to a one-year high of 54.9 contributed to the surge. China has emerged as India’s biggest trading partner in the current financial year replacing the United Arab Emirates and pushing it to the third spot. India-China trade has reached $49.5 billion with a 8.7 % share in India’s total trade. The US comes second at $46 billion with 8.1 % share during the first nine months of the current financial year.

The Reserve Bank of India has granted an additional nine months to the public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000 denominations, pushing the deadline to January 1, 2015. A day before dates for the Lok Sabha polls were announced, the government decided to hike interest rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The new rates will be effective April, 1. The Supreme Court will resume hearing on March, 11 Nokia’s appeal against a ruling over transferring ownership of its local mobile phones plant which is the subject of a tax dispute to Microsoft Corp.

In the last days of the current Government, another scam has surfaced. The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The Central Bureau of Investigation will look into allegations that over $80 million was paid in kickbacks in a deal signed in 2011. India has asked Boeing Co. to find a solution for problems with state-owned Air India’s 787 Dreamliners. The aircraft has experienced a series of malfunctions since its debut in 2011.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limits: BB-
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligations.
Date	February, 2013

Rating Agency Name	ICRA
Rating	Non-fund Based Limits: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	February, 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 PARTED BY (PARTIAL DETAILS)

Name :	Mr. Raghu
Designation :	Export Manager
Contact No.:	91-863-2251054
Date :	24.03.2014

LOCATIONS

Registered Office :	Sakku House, D. No.5-87-39/1, Near Nayar Hotel, Lakshmipuram Main Road, Guntar – 522 006, Andhra Pradesh, India
Tel. No.:	91-863-2251053/ 54
Mobile No.:	91-9985360999 (Mr. Venkataratnam-Accountant)
Fax No.:	91-863-2250063
E-Mail :	gmaccounts@sakkugroup.com csguntur@gmail.com admin@sakkuspinningmills.com statmgr@venkartramapoultries.com dsc_director@rediffmail.com
Website :	http://www.sakkuspinningmills.com http://www.sakkugroup.com
Location :	Owned
Head Office :	4/5, Ashok Nagar, Guntur – 522 006, Andhra Pradesh, India
E-Mail :	info@sakkugroup.com
Factory :	Chinakondrupadu, NH-5, Guntur – 522 002, Andhra Pradesh, India

DIRECTORS

AS ON 28.09.2013

Name :

Mr. Paruchuri Venkata Rao

Designation :

Managing Director

Address :

D. No.5-60/2-49, 4/5, Ashok Nagar, Guntur – 522 002, Andhra Pradesh, India

Date of Birth/Age :

01.07.1949

Qualification :

Graduate

Date of Appointment :

01.10.2013

DIN No.:

00084057

PAN No.:

ADNPP4551F

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	U01222AP1995PLC019290	VENKATRAMA POULTRIES LIMITED	Managing director	01/10/2013	02/02/1995	-	Active	NO
2	U63011AP1999PTC031571	VENKATRAMA WAREHOUSES PRIVATE LIMITED	Director	23/04/1999	23/04/1999	17/11/2009	Active	NO
3	U01222AP1988PTC009412	KALYANACHAKRAVARTHY POULTRY COMPLEX PRIVATE LIMITED	Director	24/02/2002	24/02/2002	-	Active	NO
4	U01222AP1988PTC009401	SREE SHIVASHAKTHI POULTRIES PRIVATE LIMITED	Director	24/02/2002	24/02/2002	-	Active	NO
5	U01222AP1988PTC009402	SREE GAJALAKSHIMI POULTRY PRIVATE LIMITED	Director	24/02/2002	24/02/2002	-	Active	NO
6	U01222AP1988PTC009403	KISHORE POULTRIES PRIVATE LIMITED	Director	24/02/2002	24/02/2002	-	Active	NO
7	U18100AP2006PLC048959	SAKKU SPINNING MILLS LIMITED	Managing director	01/10/2013	01/02/2006	-	Active	NO
8	U01119AP2009PTC064350	SAKKU HATCHERIES PRIVATE LIMITED	Director	13/07/2009	13/07/2009	05/06/2010	Active	NO
9	U01119AP2010PLC071237	RADHA SAKKU AGRO FARMS LIMITED	Additional director	18/11/2010	18/11/2010	10/01/2011	Active	NO
10	U45200AP2009PTC066330	SAKKU PROPERTIES PRIVATE LIMITED	Director	19/08/2013	01/04/2013	-	Active	NO

Name :

Mrs. Muthavarapu Madhavi Latha

Designation :

Whole Time Director

Address :

D. No.5-60/2-49, 4/5, Ashok Nagar, Guntur – 522 002, Andhra Pradesh, India

Date of Birth/Age :

03.12.1968

Qualification :

Graduate

Date of Appointment :

01.11.2013

DIN No.:

00084075

PAN No.:

AIRPM9906G

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	U01222AP1995PLC019290	VENKATRAMA POULTRIES LIMITED	Director	02/02/1995	02/02/1995	-	Active	NO
2	U18100AP2006PLC048959	SAKKU SPINNING MILLS LIMITED	Whole-time director	01/11/2013	01/02/2006	-	Active	NO

Name :

Mr. Paruchuri Dharma Teja

Designation :

Whole Time Director

Address :

D. No.5-60/2-49, 4/5, Ashok Nagar, Guntur – 522 002, Andhra Pradesh, India

Date of Birth/Age :

22.08.1969

Qualification :

Graduate

Date of Appointment :

01.10.2013

DIN No.:

00084033

PAN No.:

ADNPP4552G

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	U01222AP1995PLC019290	VENKATRAMA POULTRIES LIMITED	Director	02/02/1995	02/02/1995	-	Active	NO
2	U63011AP1999PTC031571	VENKATRAMA WAREHOUSES PRIVATE LIMITED	Director	01/03/2010	23/04/1999	-	Active	NO
3	U01222AP1988PTC009412	KALYANACHAKRAVARTHY POULTRY COMPLEX PRIVATE LIMITED	Director	24/02/2002	24/02/2002	-	Active	NO
4	U01222AP1988PTC009401	SREE SHIVASHAKTHI POULTRIES PRIVATE LIMITED	Director	24/02/2002	24/02/2002	-	Active	NO
5	U01222AP1988PTC009402	SREE GAJALAKSHIMI POULTRY PRIVATE LIMITED	Director	24/02/2002	24/02/2002	-	Active	NO
6	U01222AP1988PTC009403	KISHORE POULTRIES PRIVATE LIMITED	Director	24/02/2002	24/02/2002	-	Active	NO
7	U18100AP2006PLC048959	SAKKU SPINNING MILLS LIMITED	Whole-time director	01/10/2013	01/02/2006	-	Active	NO
8	U01119AP2009PTC064350	SAKKU HATCHERIES PRIVATE LIMITED	Director	31/10/2013	13/07/2009	-	Active	NO
9	U45200AP2009PTC066330	SAKKU PROPERTIES PRIVATE LIMITED	Director	16/12/2009	16/12/2009	-	Active	NO
10	U01119AP2010PLC071237	RADHA SAKKU AGRO FARMS LIMITED	Director	16/11/2010	16/11/2010	-	Active	NO

Name :

Mr. Paruchuri Madhu Konark

Designation :

Director

Address :

D. No.5-60/2-49, 4/5, Ashok Nagar, Guntur – 522 002, Andhra Pradesh, India

Date of Birth/Age :

16.08.1972

Qualification :

Graduate

Date of Appointment :

01.11.2013

DIN No.:

00084067

PAN No.:

ADNPP4553H

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	U01222AP1995PLC019290	VENKATRAMA POULTRIES LIMITED	Director	02/02/1995	02/02/1995	-	Active	NO
2	U63011AP1999PTC031571	VENKATRAMA WAREHOUSES PRIVATE LIMITED	Director	20/08/2012	23/04/1999	-	Active	NO
3	U18100AP2006PLC048959	SAKKU SPINNING MILLS LIMITED	Director	01/11/2013	01/02/2006	-	Active	NO
4	U45200AP2009PTC066330	SAKKU PROPERTIES PRIVATE LIMITED	Director	31/10/2013	16/12/2009	-	Active	NO
5	U01119AP2010PLC071237	RADHA SAKKU AGRO FARMS LIMITED	Managing director	18/07/2011	16/11/2010	-	Active	NO
6	U17111AP2008PTC059322	PARUCHURI COTTON PRODUCTS PRIVATE LIMITED	Additional director	31/10/2011	31/10/2011	20/07/2012	Active	NO
7	U01119AP2009PTC064350	SAKKU HATCHERIES PRIVATE LIMITED	Director	29/09/2012	14/06/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2013

Names of Shareholders	No. of Shares
P. Lakshmi Tulasi	17500
P. Dharma Teja	100283
P. Dakshayani	72079
P. Madhu Konark	93912
P. Ragathi	67898
P. Radha Sakkubai	180100
Venkata Rama Poultries Limited, India	484800
P. Venkata Rao	109098
Muthavarapu Madhavi Latha	64520
Sri Gajalakshmi Poultries Private Limited, India	6800
Kishore Poultries Private Limited, India	6800
Sri Siva Shakthi Poultries Private Limited, India	6800
Kalyana Chakravarthi Poultry Complex Private Limited, India	6500
Paruchuri Veerabadra Rao	22910
Total	1240000

AS ON 28.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	41.27
Directors or relatives of directors	58.73
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of grey cotton spun yarn.

GENERAL INFORMATION

No. of Employees :

Information declined by the Management.

Bankers :

· Andhra Bank, Main Branch, Gowri Shankar Theatre Road, Guntur – 522 001, Andhra Pradesh, India

· Indian Overseas Bank, Chandra Mouli Nagar Branch, Chandra Mouli Nagar, Guntur – 522 007, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	470.101	468.295
SHORT-TERM BORROWINGS
Working capital loans from banks
Andhra Bank OCC A/c 371	43.839	34.666
IOB OCC A/c 567	67.985	60.398
EPC Loan (IOB)-421200002	49.957	0.000
Total	631.882	563.359

Banking Relations :	--
Auditors :
Name :	Punnaiah and Company Chartered Accountants
Address :	“Uday”, 5-87-129, Main Road, Lakshmipuram, Guntur – 522 007, Andhra Pradesh, India
Tel No.:	91-863-2232354/ 2232485
Mobile No.:	91-9848132354
PAN No.:	AFEPB7664L
Group Companies :	· Sakku Hatcheries Private Limited · Venkatrama Poultries Limited · Sukku International · Paruchuri Cotton Products

CAPITAL STRUCTURE

AS ON 28.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.100/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1240000	Equity Shares	Rs.100/- each	Rs.124.000 millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 millions
5000000	Preference Shares	Rs.10/- each	Rs.50.000 millions
	Total		Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 millions
2400000	Preference Shares	Rs.10/- each	Rs.24.000 millions
	Total		Rs.124.000 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	124.000	90.970	90.970
(b) Reserves & Surplus	29.295	18.537	66.689
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	33.030	0.000
Total Shareholders’ Funds (1) + (2)	153.295	142.537	157.659
(3) Non-Current Liabilities
(a) Long-term borrowings	470.101	468.295	230.107
(b) Deferred tax liabilities (Net)	0.000	0.000	6.779
(c) Other long term liabilities	0.160	0.013	0.063
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	470.261	468.308	236.949
(4) Current Liabilities
(a) Short term borrowings	161.781	95.064	135.632
(b) Trade payables	58.935	88.389	22.050
(c) Other current liabilities	111.743	60.666	34.256
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	332.459	244.119	191.938
TOTAL	956.015	854.964	586.546
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	553.686	575.154	169.024
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	7.696	8.546	77.301
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	2.000	2.000	2.000
(c) Deferred tax assets (net)	16.591	14.737	0.000
(d) Long-term Loan and Advances	13.286	9.043	4.364
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	593.259	609.480	252.689
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	129.856	89.493	162.161
(c) Trade receivables	126.838	67.896	33.912
(d) Cash and cash equivalents	11.686	25.864	33.865
(e) Short-term loans and advances	63.916	50.455	92.323
(f) Other current assets	30.460	11.776	11.596
Total Current Assets	362.756	245.484	333.857
TOTAL	956.015	854.964	586.546

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	1938.585	686.959	502.950
		Other Income	71.778	3.651	4.095
		TOTAL (A)	2010.363	690.610	507.045
Less	EXPENSES
		Cost of materials consumed	1475.616	510.445	350.245
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(75.200)	14.757	(21.629)
		Employee benefit expense	68.849	42.919	23.567
		Expenditure on production, transportation and other expenditure pertaining to E&P activities	25.923	11.701	55.234
		Other expenses	302.252	76.123
		TOTAL (B)	1797.440	655.945	407.417
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		212.923	34.665	99.628
Less	FINANCIAL EXPENSES (D)		114.751	51.863	19.185
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		98.172	(17.198)	80.443
Less/ Add	DEPRECIATION/ AMORTISATION (F)		87.696	52.467	75.800
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		10.476	(69.665)	4.643
Less	TAX (H)		(1.374)	(21.513)	(4.250)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		11.850	(48.152)	8.893
	Earnings/ (Loss) Per Share (Rs.)		3.49	(52.93)	9.77

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.59	(6.97)	1.75
Net Profit Margin (PBT/Sales)	(%)	0.54	(10.14)	0.92
Return on Total Assets (PBT/Total Assets}	(%)	1.13	(8.40)	0.92
Return on Investment (ROI) (PBT/Networth)		0.07	(0.49)	0.03
Debt Equity Ratio (Total Debt/Networth)		4.12	3.95	2.32
Current Ratio (Current Asset/Current Liability)		1.09	1.01	1.74

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	90.970	90.970	124.000
Reserves & Surplus	66.689	18.537	29.295
Share Application money pending allotment	0.000	33.030	0.000
Net worth	157.659	142.537	153.295
Long-term borrowings	230.107	468.295	470.101
Short term borrowings	135.632	95.064	161.781
Total borrowings	365.739	563.359	631.882
Debt/Equity ratio	2.320	3.952	4.122

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	502.950	686.959	1938.585
		36.586	182.198

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from operations	502.950	686.959	1938.585
Profit	8.893	-48.152	11.850
	1.77%	-7.01%	0.61%

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	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) 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	10265919	04/07/2013 *	954,000,000.00	ANDHRA BANK	MAIN BRANCH, GOWRI SHANKAR THEATRE ROAD, GUNTUR, ANDHRA PRADESH - 522001, INDIA	B80032600
2	10030296	17/07/2013 *	663,000,000.00	INDIAN OVERSEAS BANK	CHANDRA MOULI NAGAR BRANCH, CHANDRA MOULI NAGAR, GUNTUR, ANDHRA PRADESH - 522007, INDIA	B82141656

* Date of charge modification

REVIEW OF OPERATIONS:

During the period, the company has achieved turnover of Rs.1938.585 millions as against Rs.686.958 millions of previous year 2011-12, i.e. turnover increased by 182.19%, The Profit before depreciation and interest is Rs.191.549 millions as against Rs.33.271 millions of previous year. They hope profit will increase further in coming year.

FIXED ASSETS:

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

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.60.49
UK Pound	1	Rs.99.77
Euro	1	Rs.83.67

INFORMATION DETAILS

Information Gathered by :	PRT
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.