MIRA INFORM REPORT

Report Date :

16.05.2014

IDENTIFICATION DETAILS

Name :	MIMAKI KANPHOR INDIA PRIVATE LIMITED (w.e.f. 26.08.2009)
Formerly Known As :	KAMPHOR (INDIA) PRIVATE LIMITED
Registered Office :	C-8/8673, Vasant Kunj, New Delhi – 110070
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.12.2008
Com. Reg. No.:	55-185364
Capital Investment / Paid-up Capital :	Rs.21.251 Millions
CIN No.: [Company Identification No.]	U51505DL2008PTC185364
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Textile Printing Machinery and Digital Textile Printing.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Under liquidation and dissolution proceedings
Payment Behaviour :	--
Litigation :	Exist
Comments :	Subject is a joint venture company between “Mimaki Engineering Company Limited” holding (51%) and three other Indian partners. Management has failed to file the financials after 2011. As per indirect source we found that Mimaki Engineering Company Limited has announced that the company is in the process of liquidation due to some disputes between the said partners and they are planning to float a separate 100% entity under the parental support of Mimaki, Japan. Mr. Vinod Krishnamurthy Iyer, Managing Director and one of the Indian partners provided general information and confirmed that the management has indulged into disputes and that the Indian partners may plan to float a separate new company. Payment terms are unknown. In view of the company being under the process of dissolution we could not recommend any business dealings whereas, any business connections with the same are matter of your confidence.

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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making

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. Vinod Krishnamurthy Iyer
Designation :	Managing Director
Contact No.:	91-9811607544
Date :	13.05.2014

LOCATIONS

Registered Office :	C-8/8673, Vasant Kunj, New Delhi – 110070, India
Tel No.:	Not Available
Mobile No.:	91-9811607544 (Mr. Vinod Krishnamurthy Iyer)
Fax No.:	Not Available
E-Mail :	vinod@mimakitexsoco.com shweta@mimakitexsoco.com
Location :	Owned
Corporate Office :	Plot No. 232, Phase IV, Udyog Vihar, Gurgaon - 122016, Haryana, India
Tel. No.:	91-124-4711001/ 2/ 3/ 4683300
Area :	40000 sq.ft.
Location :	Rented
Branch Office :	23/2 Yellukunte, Old Mangam Palaya Road, Main Hosur, Bangalore - 560068, Karnataka, India

DIRECTORS

As on 30.07.2011

Name :

Mr. Vinod Krishnamurthy Iyer

Designation :

Managing Director

Address :

House No. A-502, Bhawani Co-operative Housing Society, Sector 54, Gurgaon - 122001, Haryana, India

Date of Birth/Age :

22.01.1977

Date of Appointment :

01.01.2009

DIN No.:

00351444

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	U72200DL2001PTC111657	TEXSOCO TECHNOLOGIES PVT. LTD.	Director	12/07/2001	12/07/2001	29/03/2012	Active	NO
2	U51505DL2008PTC185364	MIMAKI KANPHOR INDIA PRIVATE LIMITED	Managing director	24/07/2009	01/01/2009	-	Active	NO

Name :

Mr. Nikhil Vinod Kumar

Designation :

Whole Time Director

Address :

C-8673, Vasant Kunj, New Delhi - 110070, India

Date of Birth/Age :

01.12.1982

Date of Appointment :

01.08.2010

DIN No.:

00707848

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	U72200DL2001PTC111657	TEXSOCO TECHNOLOGIES PVT. LTD.	Director	15/11/2006	15/11/2006	01/10/2007	Active	NO
2	U51505DL2008PTC185364	MIMAKI KANPHOR INDIA PRIVATE LIMITED	Whole-time director	01/08/2010	01/08/2010	-	Active	NO
3	AAB-3238	UTH WEAR LLP	Designated Partner	17/01/2013	17/01/2013	-	Active	NO

Name :

Kazuaki Ikeda

Designation :

Director

Address :

1418, Kokubu, Nagano Pref, Ueda City, Pin Code 3860016, Ueda

Date of Birth/Age :

04.11.1976

Date of Appointment :

24.07.2009

DIN No.:

02730464

KEY EXECUTIVES

Name :	Ms. Shweta Gupta
Designation :	Secretary
Address :	C-22, Street No. 5, Majlis Park, Adarsh Nagar, New Delhi - 110033, India
Date of Birth/Age :	27.01.1986
Date of Appointment :	25.11.2009
Pan No.:	ALYPG6269L

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.07.2011

Names of Shareholders	No. of Shares	Percentage of Holding
Vinod Krishnamurthy Iyer	468585	22.05
Vinod Kumar Garg	260325	12.25
Satish Kumar Garg	312390	14.70
Mimaki Engineering Company Limited, Japan	1083803	51.00
Total	2125103	100.00

As on 30.07.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	51.00
Bodies corporate	49.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Textile Printing Machinery and Digital Textile Printing.
Imports :
Products :	Textile Machinery
Countries :	Japan
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Kiwa, Japan

Customers :

Jaipura Silk Mill, Bangalore

No. of Employees :

30 (Approximately)

Bankers :

Citi Bank, DLF City, Gurgaon, Haryana, India

Facilities :

SECURED LOAN	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loan Form Banks
Vehicles Loan* [Secured against hypothecation of the specific vehicle] [* Amount due within one year.]	1.947	2.354
Total	1.947	2.354

Banking Relations :	--
Financial Institution :	Kotak Mahindra Prime Limited, 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai - 400021, Maharashtra, India
Auditors :
Name :	KRA and Company Chartered Accountants
Address :	H-1/109, Garg Tower, Netaji Subhash Palace, Pitampura, New Delhi - 110034, India
Tel. No.:	91-11-47082855
Fax No.:	91-11-47082855
Pan No.:	AAIFK1650J
Holding Company:	Mimaki Engineering Company Limited, Japan
Related Parties:	· Graffiti Technologies Private Limited Graffiti Exports

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2200000	Equity Shares	Rs.10/- each	Rs.22.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2125103	Equity Shares	Rs.10/- each	Rs.21.251 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		21.251	21.251	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		84.446	84.446	0.000
4] (Accumulated Losses)		(43.437)	(24.220)	0.000
NETWORTH		62.260	81.477	0.100
LOAN FUNDS
1] Secured Loans		1.947	2.354	0.000
2] Unsecured Loans		0.000	0.301	0.000
TOTAL BORROWING		1.947	2.655	0.000
DEFERRED TAX LIABILITIES		1.130	0.613	0.000
TOTAL		65.337	84.745	0.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		46.894	37.327	0.000
Capital work-in-progress		0.000	9.444	0.000
INVESTMENT		0.096	0.096	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	110.242	16.506	0.000
	Sundry Debtors	73.084	24.742	0.000
	Cash & Bank Balances	16.492	23.174	0.100
	Other Current Assets	1.847	1.230	0.000
	Loans & Advances	4.354	6.076	0.000
Total Current Assets		206.019	71.728	0.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	181.521	26.447	0.000
	Other Current Liabilities	3.028	4.686	0.090
	Provisions	3.123	2.717	0.000
Total Current Liabilities		187.672	33.850	0.090
Net Current Assets		18.347	37.878	0.010
MISCELLANEOUS EXPENSES		0.000	0.000	0.090
TOTAL		65.337	84.745	0.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Sales (Machine including software, fabrics and consumables)	203.370	77.297
		Profit on sale of fixed assets	0.866	0.000
		Other income	18.790	4.490
		Foreign exchange gain	(0.160)	0.303
		TOTAL (A)	222.866	82.090
Less	EXPENSES
		Material Consumed	170.365	63.888
		Personnel Expenses	20.573	13.199
		Operating and Administrative Expenses	42.150	24.315
		TOTAL (B)	233.088	101.402
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(10.222)	(19.312)
Less	FINANCIAL EXPENSES (D)		0.491	0.730
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(10.713)	(20.042)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.772	3.543
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(18.485)	(23.585)
Less	TAX (H)		0.517	0.613
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(19.002)	(24.198)
Less	PRIOR PERIOD ITEMS		0.216	0.023
	BALANCE CARRIED TO THE B/S		(19.218)	(24.221)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.838	NA
		Commission Earnings	6.041
	TOTAL EARNINGS		7.879	NA
	IMPORTS
		Machinery	204.063	32.434
		Software	7.715	0.497
		Spare Parts	18.707	8.902
		Ink	5.288	1.410
		Consumables	0.874	1.734
		Fabric	0.009	0.000
	TOTAL IMPORTS		236.656	44.977
	Earnings / (Loss) Per Share (Rs.)		(9.04)	(11.40)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(8.53)	(29.48)	NA
Net Profit Margin (PBT/Sales)	(%)	(9.09)	(30.51)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(7.31)	(21.63)	NA
Return on Investment (ROI) (PBT/Networth)		(0.30)	(0.29)	NA
Debt Equity Ratio (Total Debt/Networth)		0.03	0.03	0.00
Current Ratio (Current Asset/Current Liability)		1.10	2.12	1.11

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2009	31.03.2010	31.03.2011
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.100	21.251	21.251
Reserves & Surplus	0.000	84.446	84.446
(Accumulated Losses)	0.000	(24.220)	(43.437)
Net worth	0.100	81.477	62.260
long-term borrowings	0.000	2.354	1.947
Short term borrowings	0.000	0.301	0.000
Total borrowings	0.000	2.655	1.947
Debt/Equity ratio	0.000	0.033	0.031

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2010	31.03.2011
	(Rs. In Millions)	(Rs. In Millions)
Sales	77.297	203.370
		163.102

NET PROFIT MARGIN

Net Profit Margin	31.03.2010	31.03.2011
	(Rs. In Millions)	(Rs. In Millions)
Sales	77.297	203.370
Profit	(24.198)	(19.002)
	(31.31%)	(9.34%)

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
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	No
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	No

LITIGATION DETAILS

IN THE HIGH COURT OF DELHI AT NEW DELHI

CO.PET. 432/2013

MIMAKI ENGINEERING COMPANY LTD ..... Petitioner

Through: Mr. Vijay Pal dlamia and Mr. Pavit

Singh Katoch, Advocates

versus

MIMAKI KANPHOR INDIA PVT LTD and ORS ..... Respondents

Through: Mr. Archit Virmani, Advocate

CORAM:

HON'BLE MR. JUSTICE SANJEEV SACHDEVA

ORDER

01.05.2014

Learned counsel for the parties submit that there is a likelihood of settlement and as such pray for an adjournment.

At request, adjourned to 3rd September, 2014.

SANJEEV SACHDEVA, J

MAY 01, 2014/sv

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10196788	28/11/2009	1,222,913.00	KOTAK MAHINDRA PRIME LIMITED	36-38A NARIMAN BHAVAN, 227, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A77128072
2	10196789	28/11/2009	1,222,913.00	KOTAK MAHINDRA PRIME LIMITED	36-38A NARIMAN BHAVAN, 227, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA	A77127546

UNSECURED LOAN

Particulars	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loan From Directors
Principal Amount	0.000	0.301
Total	0.000	0.301

PERFORMANCE:

During the financial year, the company's revenue from operations is Rs. 222.800 Millions, and the loss registered is Rs. 19.200 Millions. The major cause for loss is the failure of Mimaki Tx400 ink which will be recovered in the coming financial years.

PRESS RELEASE

MIMAKI ANNOUNCES STARTING LIQUIDATION AND DISSOLUTION PROCEEDINGS OF ITS INDIAN JOINT VENTURE COMPANY AND PREPARATION FOR ESTABLISHMENT OF A NEW WHOLLY-OWNED SUBSIDIARY COMPANY

Nagano, Japan, July 10, 2013

Mimaki Engineering Compnay Limited (President: Hisayuki Kobayashi, Headquarters: Nagano, Japan, hereinafter called “MIMAKI”) hereby announces that it has resolved at a meeting of its Board of Directors held as of July 10, 2013, to liquidate and dissolve its joint venture company in India, MIMAKI KANPHOR INDIA PRIVATE LIMITED (hereinafter called “MIMAKI KANPHOR”) and to take necessary steps for establishing a new wholly-owned subsidiary company in India in lieu of MIMAKI KANPHOR.

1. Reason for Liquidation and Dissolution of MIMAKI KANPHOR

MIMAKI had established MIMAKI KANPHOR in September, 2009 in an effort to develop sale channels in emerging economies such as BRIC countries in which our product applications were expected to expand with rapid digitalization associated with economic growth. MIMAKI KANPHOR is a joint venture company where MIMAKI has 51% ownership resulting from transfer of shares as well as allocation of new stocks of Kanphor India Private Limited, which was established as a result of business transfer from our erstwhile dealer Texsoco Inc. and its affiliated company, Texsoco Technologies Private Limited.

MIMAKI KANPHOR has, however, been suffering from financial problems of its operations since establishment and as a result of evaluation at the end of this first-quarter we have concluded that there is no prospect for MIMAKI to improve such financial distress. Furthermore, our partners in India (hereinafter called “Indian Partners”) have failed to carry out their duty specified in the shareholders agreement which requires them to manage the company effectively and reasonably. While MIMAKI granted Indian Partners more than reasonable period of time to cure such failures, they did not take any appropriate action in the best interest of MIMAKI or MIMAKI KANPHOR. Under such a circumstance, given the difficulty of continuing joint operations with the Indian Partners, MIMAKI has decided to start proceedings of liquidation and dissolution of MIMAKI KANPHOR by terminating the shareholders agreement.

Indian Partners, however, have not consented to the terms of MIMAKI to liquidate and dissolve MIMAKI KANPHOR at this moment and thus MIMAKI will invoke arbitration and file winding up petition with the Delhi High Court to liquidate MIMAKI KANPHOR and to protect its interests.

MIMAKI KANPHOR

（1）	Trade Name	MIMAKI KANPHOR INDIA PRIVATE LIMITED
（2）	Address of head office	Gurgaon, Haryana, India
（3）	Representative title and name	Managing Director, Vinod Krishnamurthy Iyer
（4）	Business	Marketing, sale, service and sales promotion of MIMAKI group products, i.e., Inkjet printer, cutting plotter, ink.
（5）	Paid Up Capital fund	Indian Rupees 21,251,000
（6）	Establishment	September, 2009
（7）	Major shareholder and ratio	MIMAKI	51.00%
		Vinod Iyer	22.05%
		Satish Garg	14.70%
		Vinod Garg	12.25%

2. Preparation for establishing a new wholly-owned subsidiary company

Textile industry is flourishing in India being backed by Deccan Plateau which is renowned worldwide as a cotton production area. While MIMAKI has three objective markets, i.e., Sign Graphics (“SG”), Industrial Product (“IP”) and Textile and Apparel (“TA”), those inkjet printers designed for textile printing in TA industry are in high demand. At the same time, MIMAKI is willing to continuously provide after services to those existing customers who purchased MIMAKI products through MIMAKI KANPHOR and who require after sales services and support from MIMAKI. In this situation, MIMAKI has decided to take all necessary steps to set up its wholly-owned subsidiary company in India in lieu of MIMAKI KANPHOR.

After establishing the new wholly-owned subsidiary company, MIMAKI will promptly press forward with the restructuring of our system so that we can provide the customers with MIMAKI-led, community-based, professional and courteous sales and services, and exert every possible effort to restore market share in all area in India.

Proposed New Wholly-Owned Subsidiary Company

（1）	Trade Name	MIMAKI INDIA PRIVATE LIMITED
（2）	Address of head office	Delhi, India
（3）	Representative title and name	Managing Director, Hirofumi Kitaguchi
（4）	Business	Marketing, sale, service and sales promotion of MIMAKI group products, i.e., Inkjet printer, cutting plotter, ink.
（5）	Capital fund	Indian Rupees 100,000 *
（6）	Establishment	End of July, 2013 (planned）
（7）	Investment ratio	Mimaki owns 100%
（8）	End of fiscal year	March 31
（9）	Number of employee	35 （planned）（among them, Japanese employees are 3）
（10）	Launching date	September, 2013（planned）

*Note:This is planned amount being transferred to the bank at the time of establishment and registration of the company and therefore the amount will be increased when the launching date is fixed.

About MIMAKI

MIMAKI is a leading manufacturer of wide-format inkjet printers and cutting machines for the Sign Graphics, Industrial Product and Textile & Apparel markets. MIMAKI develops the complete product range for each group; hardware, software and the associated consumable items, such as inks and cutting blades. MIMAKI excels in offering innovative, high quality and high reliability products, based upon its aqueous, solvent and UV-curable inkjet technology. In order to meet a wide range of applications in the market, MIMAKI pursues the development of advanced on-demand digital printing solutions. Mimaki Engineering Co. Ltd., (President: Hisayuki Kobayashi) Nagano (Japan), is publicly listed on the JASDAQ Securities Exchange, Inc.

FIXED ASSETS:

· Furniture and Fixtures

· Office Equipments

· Computers

· Vehicles

· Electrical Installations

· Plant and Machinery

· Air Conditioner

· Generator

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.59.47
UK Pound	1	Rs.99.70
Euro	1	Rs.81.55

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUB
Report Prepared by :	MRI

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.