MIRA INFORM REPORT

Report Date :

27.03.2014

IDENTIFICATION DETAILS

Name :	MAHINDRA CONVEYOR SYSTEMS PRIVATE LIMITED
Registered Office :	Mahindra Towers, P K Kurne Chowk, Mumbai 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	04.01.2010
Com. Reg. No.:	11-198438
Capital Investment / Paid-up Capital :	Rs.313.775 Millions
CIN No.: [Company Identification No.]	U29268MH2010PTC198438
PAN No.: [Permanent Account No.]	AAGCM3315B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Material Handling Equipment and Systems.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2200000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of Mahindra and Mahindra Group. It is a well-established company having a satisfactory track record. Reserve of the company seems to be low. However, general financial position of the company seems to be good. The company gets strong financial support from its holding. Liquidity position is good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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	ICRA
Rating	Fund Based Limit = A+
Rating Explanation	Have moderate degree of safety and carry low credit risk
Date	May 2013

Rating Agency Name	ICRA
Rating	Non Fund Based Limit = A1+
Rating Explanation	Have very strong degree of safety and carry lowest credit risk
Date	May 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DENIED BY

Name :	Mr. Nitin Kolhatkar
Designation :	General Manager (Finance)
Contact No.:	91-20-67928400
Date :	25.03.2014

LOCATIONS

Registered Office :	Mahindra Towers, P K Kurne Chowk, Mumbai 400018, Maharashtra, India
Tel. No.:	91-22-24905632
Fax No.:	91-22-24900833
E-Mail :	vs.ramesh@mahindra.com Mutha.sanjaykumar@mahindra.com sales@mconsltd.com
Website :	http://www.mconsltd.com
Area :	1000 sq.ft
Location :	Rented
Factory 1:	148, Mumbai-Pune Road, Pimpri, Pune : 411 018, Maharashtra, India
Tel. No.:	91-20-6631 7200 / 2742 63 96
Fax No.:	91-20-2742 6398
Corporate Office/ Factory 2 :	Gat No 316 to 319 Ambadvet Pune Paud Road Near Pirangut, Pune 412108, India
Tel. No.:	91-20-67928400 / 67928454
Fax No.:	91-20-67928401

DIRECTORS

As on 11.09.2013

Name :

Mr. Sundaram Venkatraman

Designation :

Director

Address :

501, Vikas Classic, Building No. 4, Behind Basant Theatre, Dr. C Gidwani Marg, Chembur, Mumbai 4000740, Maharashtra, India

Date of Birth/Age :

07.05.1952

Date of Appointment :

23.06.2011

DIN No.:

00077193

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	U74999MH1995PLC093447	TECPRO ASHTECH LIMITED	Director	05/12/2002	05/12/2002	05/01/2008	Amalgamated	NO
2	U45201MH2001PLC131942	MAHINDRA INFRASTRUCTURE DEVELOPERS LIMITED	Nominee director	23/04/2003	23/04/2003	-	Active	NO
3	U74210MH1993PLC074723	Mahindra Consulting Engineers Limited	Nominee director	22/04/2004	22/04/2004	-	Active	NO
4	U45200MH1992PLC068846	MAHINDRA CONSTRUCTION COMPANY LIMITED	Director	29/09/2007	24/04/2006	-	Active	NO
5	U45205MH1999PLC121235	MAHINDRA WATER UTILITIES LIMITED	Director	18/09/2007	10/10/2006	-	Active	NO
6	U74999MH1954PLC019908	MAHINDRA ENGINEERING AND CHEMICAL PRODUCTS LIMITED	Director	27/08/2007	16/01/2007	-	Active	NO
7	U74140MH1992PLC066606	MAHINDRA AND MAHINDRA CONTECH LIMITED	Director	05/09/2008	30/05/2008	-	Active	NO
8	U30007MH1991PLC064368	BRISTLECONE INDIA LIMITED	Director	24/07/2009	25/07/2008	-	Active	NO
9	U34100MH2007PLC171151	MAHINDRA VEHICLE MANUFACTURERS LIMITED	Director	20/08/2009	19/11/2008	-	Active	NO
10	U92190MH2008PLC178894	MUMBAI MANTRA MEDIA LIMITED	Director	08/09/2009	03/02/2009	-	Active	NO
11	U29268MH2010PTC198438	Mahindra Conveyor Systems Private Limited	Director	23/06/2011	04/01/2010	-	Active	NO
12	U34100MH2005PTC153702	Mahindra Automobile Distributor Private Limited	Director	01/08/2011	31/08/2010	-	Active	NO
13	U74999MH2011PTC212468	Mahindra Integrated Business Solutions Private Limited	Director	18/01/2011	18/01/2011	-	Active	NO

Name :

Mr. Parag Chandulal Shah

Designation :

Director

Address :

7, Kailas 50 Peddar Road, Mumbai 400026, Maharashtra, India

Date of Birth/Age :

25.11.1975

Date of Appointment :

23.11.2006

DIN No.:

00374944

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	U01110MH1983PTC029216	INDIRA AGRICULTURAL FARM PRIVATE LIMITED	Director	04/09/1996	04/09/1996	-	Active	NO
2	U51900MH1985PTC037329	SYSTEMS MARKETING (INDIA) PRIVATE LIMITED	Director	02/05/1997	02/05/1997	-	Strike off	NO
3	U67190MH1987PTC042205	SHAH AND GALA FINANCE CONSULTANTS PRIVATE LIMITED	Director	02/05/1997	02/05/1997	-	Strike off	NO
4	U25209MH1998PTC116707	C J INDUSTRIES PRIVATE LIMITED	Director	29/09/1998	29/09/1998	-	Active	NO
5	U27100MH1981PTC025565	HYD-AIR MAGNETS PRIVATE LIMITED	Director	24/05/2007	24/05/2007	-	Strike off	NO
6	U63032MH2008PTC186581	Mahindra Ocean Blue Marine Private Limited	Director	25/09/2009	09/09/2008	-	Active	NO
7	U35911MH2008PLC185462	MAHINDRA TWO WHEELERS LIMITED	Director	12/08/2009	29/09/2008	-	Active	NO
8	U92412MH2008PTC187927	MAHINDRA UNITED FOOTBALL CLUB PRIVATE LIMITED	Director	01/09/2009	03/11/2008	-	Active	NO
9	U63000MH2007PLC173466	Mahindra Logistics Limited	Director	11/08/2009	28/04/2009	-	Active	NO
10	U52190MH2007PTC173762	MAHINDRA RETAIL PRIVATE LIMITED	Director	10/08/2010	03/11/2009	-	Active	NO
11	U29268MH2010PTC198438	Mahindra Conveyor Systems Private Limited	Director	23/06/2011	04/01/2010	-	Active	NO
12	U40101MH2010PTC205236	MAHINDRA SOLAR ONE PRIVATE LIMITED	Director	16/09/2011	04/07/2010	-	Active	NO
13	U22120MH1948PTC009314	THE INDIAN AND EASTERN ENGINEER COMPANY PRIVATE LIMITED	Additional director	09/07/2010	09/07/2010	-	Active	NO
14	U51900MH1978PLC020222	MAHINDRA INTERTRADE LIMITED	Director	22/07/2011	22/07/2010	-	Active	NO
15	U40300MH2010PTC205946	MAHINDRA OFFGRID SERVICES PRIVATE LIMITED	Director	26/07/2010	26/07/2010	-	Active	NO
16	U74990MH2010PTC207854	MAHINDRA EPC SERVICES PRIVATE LIMITED	Director	19/09/2010	19/09/2010	11/03/2011	Active	NO
17	U67110MH2008PLC188837	RETAIL INITIATIVE HOLDINGS LIMITED	Director	29/09/2011	13/08/2011	-	Active	NO
18	U40103MH2012PTC226016	Mahindra Suryaurja Private Limited	Director	27/09/2012	27/09/2012	-	Active	NO
19	U40300MH2012PTC226017	Mahindra Suryaprakash Private Limited	Director	10/12/2013	27/09/2012	-	Active	NO
20	U80302MH2010PTC198303	Mahindra Namaste Private Limited	Director	23/07/2013	04/02/2013	-	Active	NO
21	U99999MH1939PLC011344	PSL MEDIA & COMMUNICATIONS LIMITED	Director	12/08/2013	24/04/2013	-	Active	NO
22	U74210MH1993PLC074723	Mahindra Consulting Engineers Limited	Director	23/09/2013	06/05/2013	-	Active	NO
23	U40108MH2013PTC250684	Cleansolar Renewable Energy Private Limited	Director	03/12/2013	03/12/2013	-	Active	NO
24	U40108MH2013PTC250683	Brightsolar Renewable Energy Private Limited	Director	03/12/2013	03/12/2013	-	Active	NO

Name :

Mr. Sanjay Ramakant Nadkarni

Designation :

Director

Address :

C/o Joyti Saraf, 1/20 Madhavi Society, 277 Mogul Lane, Matunga west, Mahim Mumbai 400016, Maharashtra, India

Date of Birth/Age :

28.02.1966

Date of Appointment :

19.07.2012

DIN No.:

05330736

KEY EXECUTIVES

Name :	Mr. Ravindra Shriram Vaidya
Designation :	Manager
Address :	B-303, Kshitij Sahakar Nagar, No.2, Prvati, Pune – 411009, Maharashtra, India
Date of Birth/Age :	12.11.1961
Date of Appointment :	01.05.2013
PAN No.:	ABWPV4349N
Name :	Mr. Nitin Kolhatkar
Designation :	General Manager (Finance)

MAJOR SHAREHOLDERS

As on 11.09.2013

Names of Shareholders	No. of Shares
Mahindra Engineering and Chemical Products Limited, India	28711499
Mr. Zhooben Bhiwandiwala	1
Tsubakimoto Bulk Systems Corporation, Japan	2666089
Total	31377589

Equity Share Break up (Percentage of Total Equity)

As on 11.09.2013

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	8.50
Bodies corporate	91.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Material Handling Equipment and Systems.

Products :

Products Description	ITC Code
Material Handling Equipment	84283200

GENERAL INFORMATION

Customers :	· ACC Limited · Reliance · RIECO · Alstom · Binani · Birla White · JK Lakshmi Cement Limited · JK White Cement · Tata Chemicals Limited · Orient Gold · India Gypsum · Vasavadatta Cement · India Cements · Jaypee Group · Flsmidth · Shah Cement · Mahindra · Toyota · Johnson Controls · Nirma
No. of Employees :	Information denied by management
Bankers :	· State Bank of India, Industrial Finance Branch Lead Bank, 1^st Floor, Tara Chambers Near Mariaai Police Chowky, Mumbai Pune Highway, Wakdewadi, Pune 411003, Maharashtra, India · State Bank of India, 1st Floor, ' Tara Chambers', Mumbai Pune Highway, West, Mumbai - 411003, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :
PAN No.:	AABFD7919A
Holding Company :	Mahindra Engineering and Chemical Products Limited
Ultimate Holding Company :	Mahindra and Mahindra Limited
Fellow Subsidiary :	· Mahindra Automobile Distributor Private Limited · Mahindra Logistics · Mahindra Consulting Engineers Limited · Mahindra Forging Limited · Mahindra BPO Services Private Limited · Mahindra Vehicle Manufacturing Limited

CAPITAL STRUCTURE

As on 11.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
32000000	Equity Shares	Rs.10/- each	Rs.320.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31377589	Equity Shares	Rs.10/- each	Rs.313.775 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	313.776	313.776	242.478
(b) Reserves & Surplus	224.580	195.678	99.115
(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)	538.356	509.454	341.593
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	18.585	12.700	1.100
(c) Other long term liabilities	0.244	2.096	2.184
(d) long-term provisions	7.398	4.645	3.886
Total Non-current Liabilities (3)	26.227	19.441	7.170
(4) Current Liabilities
(a) Short term borrowings	34.274	66.351	0.000
(b) Trade payables	89.304	96.040	50.645
(c) Other current liabilities	33.352	53.114	52.062
(d) Short-term provisions	18.119	2.401	0.963
Total Current Liabilities (4)	175.049	217.906	103.670
TOTAL	739.632	746.801	452.433
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	435.155	447.346	116.327
(ii) Intangible Assets	4.118	5.618	1.894
(iii) Capital work-in-progress	0.000	0.000	88.421
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	5.117	5.767	9.762
(e) Other Non-current assets	4.352	2.649	2.417
Total Non-Current Assets	448.742	461.380	218.821
(2) Current assets
(a) Current investments	31.352	34.749	0.000
(b) Inventories	56.909	68.957	70.955
(c) Trade receivables	177.841	153.185	149.931
(d) Cash and cash equivalents	12.905	20.396	7.600
(e) Short-term loans and advances	11.068	7.989	5.126
(f) Other current assets	0.815	0.145	0.000
Total Current Assets	290.890	285.421	233.612
TOTAL	739.632	746.801	452.433

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		604.441	549.806	552.472
		Other Income		6.370	6.812	8.791
		TOTAL		610.811	556.618	561.263
Less	EXPENSES			530.043	474.476	443.788
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			80.768	82.142	117.475
Less	FINANCIAL EXPENSES			1.170	0.631	0.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			79.598	81.511	117.475
Less	DEPRECIATION/ AMORTISATION			15.326	10.266	1.575
	PROFIT/(LOSS) BEFORE TAX			64.272	71.245	115.900
Less	TAX			19.585	26.800	39.017
	PROFIT/(LOSS) AFTER TAX			44.687	44.445	76.883
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			121.328	76.883	0.000
Less	APPROPRIATIONS
			Dividend	13.492	0.000	0.000
			Tax on Dividend	2.293	0.000	0.000
	BALANCE CARRIED TO THE B/S			150.230	121.328	76.883
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	1.827	9.414	34.063
	TOTAL EARNINGS			1.827	9.414	34.063
	Earnings Per Share (Rs.)			1.42	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	7.32	7.98	13.70
Net Profit Margin (PBT/Sales)	(%)	10.63	12.96	20.98
Return on Total Assets (PBT/Total Assets}	(%)	8.69	9.54	31.84
Return on Investment (ROI) (PBT/Networth)		0.12	0.14	0.34
Debt Equity Ratio (Total Debt /Networth)		0.06	0.13	0.00
Current Ratio (Current Asset/Current Liability)		1.66	1.31	2.25

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	242.478	313.776	313.776
Reserves & Surplus	99.115	195.678	224.580
Net worth	341.593	509.454	538.356
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	66.351	34.274
Total borrowings	0.000	66.351	34.274
Debt/Equity ratio	0.000	0.130	0.064

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	552.472	549.806	604.441
		(0.483)	9.937

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	552.472	549.806	604.441
Profit	76.883	44.445	44.687
	13.92%	8.08%	7.39%

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	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	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans and advances from related parties
Inter Corporate Deposits from Mahindra Engineering and Chemical Products Limited (Holding Company)	0.000	20.000
Loans and advances from banks (Buyers credit) (Guaranteed by Company's Banker in respect of which the Company has offered Security of Inventories and Book debts)	34.274	46.351
Total	34.274	66.351

OPERATIONS

The total income and profits for the year were Rs.610.800 Millions Lakhs and Rs.44.700 Millions respectively.

During the year the Company’s income increased by about 10% over previous year, with a higher share of services income.

During the year, the Company continued efforts to establish footprint in Unit Handling Business. This is evidenced by first order from Mahindra Vehicle Manufactures Limited for supply of Buffer Conveyor, followed by another order from Swaraj Tractors Division for overhead conveyor system. During the year, the Company executed prestigious order for manufacturing, supply and installation of conveyor system for paint shops for Toyota Kirloskar Motor Private Limited, Bangalore. Installation work for the order was completed in short span of time during shutdown.

In Bulk Handling Business, the Company has continued to receive orders for High Capacity Chain Elevators notably from JK Cements Limited and ThyssenKrupp Industries for Ambuja Cement Projects.

Sales of Bulk Handling Products to Cement industry has not grown due to lower demand from market.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10261225	18/04/2012 *	316,700,000.00	State Bank of India	1st Floor, ' Tara Chambers', Mumbai Pune Highway, West, Mumbai, Maharashtra - 411003, India	B38659710

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.17
UK Pound	1	Rs.99.39
Euro	1	Rs.83.09

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.