MIRA INFORM REPORT

Report Date :

28.05.2014

IDENTIFICATION DETAILS

Name :	AASTHA NANOCHEM PRIVATE LIMITED
Registered Office :	192, Behind Petrol Pump, G.I.D.C., Nandesari, Vadodara – 391 340, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.06.2009
Com. Reg. No.:	04-057177
Capital Investment / Paid-up Capital :	Rs.3.000 millions
CIN No.: [Company Identification No.]	U24239GJ2009PTC057177
IEC No.:	3409001611
PAN No.: [Permanent Account No.]	AAHCA7345L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer, Dealer and Distributor of Pigments and Chemicals.
No. of Employees :	Approximately 23 (In Office: 5, In Factory: 10 and In Branch: 8)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 38000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Company has performed well. Overall financial position of the company is decent. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct. The company can be considered for business dealing at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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

Name :	Mr. Milan Rajput
Designation :	Accounts Manager
Contact No.:	91-9979767294
Name :	Mr. Harshad Vallabhbhai Khant
Designation :	Director
Contact No.:	91-9099022390

LOCATIONS

Registered Office/ Factory :	192, Behind Petrol Pump, G.I.D.C., Nandesari, Vadodara – 391 340, Gujarat, India
Tel. No.:	91-265-2841110/ 2354882
Mobile No.:	91-9979767294 (Mr. Milan Rajput) 91-9099022390 (Mr. Harshad Vallabhbhai Khant)
Fax No.:	91-265-2841110
E-Mail :	info@aasthachem.com account@aasthachem.com aasthachem@gmail.com harshad@aasthachem.com
Website :	www.aasthachem.com
Area :	23000 sq. ft.
Location :	Owned
Warehouse/ Branch Office 1 :	Building No. C, Gala No.02, Jai Bhagwan Complex, Behind Choudhary Compound, Puma, Bhiwandi, Thane, Maharashtra, India
E-Mail :	amit@aasthachem.com
Area :	3000 sq. ft.
Location :	Rented
Branch Office 2 :	C/o: Nilkamal Oil Mill, Moon Nagar Chowk, Moon Nagar, Morbi, Gujarat, India
E-Mail :	morvi@aasthachem.com
Area :	2000 sq. ft.
Location :	Rented

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Harshad Vallabhbhai Khant

Designation :

Director

Address :

105, Anjani Krupa Society, TP-13, Opposite Chhani Jakat Naka, Vadodara – 390 002, Gujarat, India

Date of Birth/Age :

03.09.1975

Qualification :

B. Sc. (Chemistry)

Experience :

13 Years

Date of Appointment :

05.06.2009

DIN No.:

02622858

PAN No.:

AFUPK0265L

Mobile No.:

91-9099022393

Name :

Mr. Ranchhoddas Vallabhbhai Khant

Designation :

Director

Address :

B-2, Maruti Complex, Nera Prayag Char Rasta, Near Chhani Toll Naka, Vadodara – 390 002, Gujarat, India

Date of Birth/Age :

23.10.1963

Qualification :

Commerce Graduate

Experience :

25 Years

Date of Appointment :

05.06.2009

DIN No.:

02659240

PAN No.:

AFUPK0264M

Name :

Mr. Ratilal Damjibhai Vachhani

Designation :

Director

Address :

49, Girriraj Raj Society, Behind Chhani Jakat Naka, Vadodara – 390 002, Gujarat, India

Date of Birth/Age :

25.11.1947

Qualification :

B. E. (Chemical Engineering)

Experience :

30 Years

Date of Appointment :

05.06.2009

DIN No.:

00267830

PAN No.:

AAUPV3862D

Mobile No.:

91-9824032760

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	U24231GJ1988PTC011555	DHAROYA PHARMACIUTICALES PRIVATE LIMITED	Director	25-11-1988	25-11-1988	-	Active	NO
2	U14100GJ1991PTC016833	GRAVITY GRANITE PRIVATE LIMITED	Director	24-12-1991	24-12-1991	-	Active	NO
3	U24231GJ1992PTC017847	ANMOL ANTIOXIDANTS PRIVATE LIMITED	Whole-time director	18-06-1992	18-06-1992	-	Active	NO
4	U74210GJ2005PTC046051	INTIVIA INFORMATICS INDIA PRIVATE LIMITED	Director	11-05-2005	11-05-2005	-	Active	NO
5	U24239GJ2009PTC057177	AASTHA NANOCHEM PRIVATE LIMITED	Director	05-06-2009	05-06-2009	-	Active	NO

Name :

Mr. Girishbhai Damjibhai Vachhani

Designation :

Director

Address :

177/A, Kenya Nager Society, Abhilasha Char Rasta, Vadodara – 390 008, Gujarat, India

Date of Birth/Age :

04.04.1955

Qualification :

Commerce Graduate

Experience :

30 Years

Date of Appointment :

05.06.2009

DIN No.:

00267966

PAN No.:

AAIPV0974A

Mobile No.:

91-9824016570

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	U24231GJ1988PTC011555	DHAROYA PHARMACIUTICALES PRIVATE LIMITED	Director	25-11-1988	25-11-1988	-	Active	NO
2	U14100GJ1991PTC016833	GRAVITY GRANITE PRIVATE LIMITED	Director	24-12-1991	24-12-1991	-	Active	NO
3	U24231GJ1992PTC017847	ANMOL ANTIOXIDANTS PVT LTD	Whole-time director	18-06-1992	18-06-1992	-	Active	NO
4	U24239GJ2009PTC057177	AASTHA NANOCHEM PRIVATE LIMITED	Director	05-06-2009	05-06-2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Milan Rajput
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Harshad Vallabhbhai Khant	119998
Ratilal Damjibhai Vachhani	29999
Girishbhai Damjibhai Vachhani	29999
Ranchhoddas Vallabhbhai Khant	60000
Sadhnaben Ratilal Vachhani	30000
Nirupaben Girishbhai Vachhani	30000
Bharti Harshad Khant	1
Ranjan Ranchhoddas Khant	1
Damjibhai Govindbhai Vachhani (HUF)	1
Rambha Vachhani	1
Total	300000

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer, Dealer and Distributor of Pigments and Chemicals.

Products :

Item Code No. (ITC Code)	28211010
Product Description	Iron Oxide Pigment
Item Code No. (ITC Code)	39.06
Product Description	AASCOAT
Item Code No. (ITC Code)	39.09
Product Description	AASMENT – CLEAR

Agencies Held :

Jiangsu Yuxing Industry and Trade Co., Limited (China)

Imports :

Products :

Iron Oxide Pigment

Countries :

China

Terms :

Selling :

Cash and Credit (30 days)

Purchasing :

Cash and Credit (90 days)

PRODUCTION STATUS [AS ON 31.03.2013]

Particulars	Installed Capacity	Actual Production
Polymer Product	3000 MT/ Month	1000 MT/ Month

GENERAL INFORMATION

Suppliers :

· Poonam Industries, Bharuch

Customers :

Wholesalers

· B G Shirke, Mumbai

No. of Employees :

Approximately 23 (In Office: 5, In Factory: 10 and In Branch: 8)

Bankers :

· State Bank of India, SME CCC Commerce Centre, Opposite BBC Tower, Sayaji Gunj, Vadodara – 390 005, Gujarat, India

· State Bank of India, Trident Complex, Near Race Course Circle, Vadodara – 390 007, Gujarat, India

· State Bank of India, Bhagirathi Co-operative Society, Beside Police Station, Chhani Road, Vadodara – 390 002, Gujarat, India

· ICICI Bank Limited, Ground Floor, Dev Deep Complex, Nizampura, Vadodara, Gujarat, India

Facilities :

Cash Credit: Rs.10.000 millions (From State Bank of India, SME Branch)

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loan (Rate of Interest - 13.7%)	3.796	0.000
Car Loan (Rate of Interest - 13.95%) (Both from State Bank of India)	0.129	0.226
SHORT TERM BORROWINGS
Cash Credit from State Bank of India (Rate of Interest - 12.95%) [The above loan (Repayable on Demand) is secured by way of hypothecation of Company's Inventories, Book debts and other Movables and by way of Equitable Mortgage of the Office Flat situated at Jay Complex, Nizampura, Vadodara and also of land and building situated at GIDC, Nandesari, Vadodara.)]	2.947	1.558
Total	6.872	1.784

Notes:

LONG TERM BORROWINGS

Nature of Security :

1) The Term Loan from State Bank of India (repayable in 60 instalments) is secured by first charge by way of Equitable Mortgage of Company's Immovable Properties i.e. Land and Building situated at Block No.192, G.I.D.C., Nandesari, District Vadodara and another Land and Building situated at First Floor, Jay Complex, Office No.6, Nizampura, Vadodara and by way of hypothecation of all movable assets, stock in trade and book debts. This facility is also secured by personal guarantees of all the Directors of the Company.

2) The Car Loan is secured by way of hypothecation of the Car.

Banking Relations :	--
Auditors :
Name :	Parikh Shah Chotalia and Associates Chartered Accountants
Address :	1, Gangotri Appartment, Race Course, Vadodara – 390 007, Gujarat, India
Tel. No.:	91-265-2334882/ 2320912
Mobile No.:	91-9376224944
E-Mail :	mail@psca.in
PAN No.:	AADFR8971L
Associate Concern :	Aastha Incorporation

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 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	3.000	3.000	1.000
(b) Reserves & Surplus	6.534	3.161	1.617
(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)	9.534	6.161	2.617
(3) Non-Current Liabilities
(a) Long-term borrowings	11.547	12.037	5.386
(b) Deferred tax liabilities (Net)	0.557	0.116	0.045
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	12.104	12.153	5.431
(4) Current Liabilities
(a) Short term borrowings	2.947	1.558	1.927
(b) Trade payables	16.199	7.321	5.574
(c) Other current liabilities	3.955	2.431	2.538
(d) Short-term provisions	2.207	1.128	0.475
Total Current Liabilities (4)	25.308	12.438	10.514
TOTAL	46.946	30.752	18.562
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13.386	8.684	2.292
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.046	0.000	0.000
(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	0.032	0.000	0.000
(e) Other Non-current assets	0.391	0.000	0.000
Total Non-Current Assets	13.855	8.684	2.292
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	5.547	5.611	5.862
(c) Trade receivables	20.111	13.373	8.790
(d) Cash and cash equivalents	1.210	0.237	0.234
(e) Short-term loans and advances	6.223	2.847	1.384
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	33.091	22.068	16.270
TOTAL	46.946	30.752	18.562

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	98.926	65.263	42.580
		Other Income	0.133	0.127	0.007
		TOTAL (A)	99.059	65.390	42.587
Less	EXPENSES
		Cost of Materials Consumed	39.340	55.586	36.327
		Purchases of stock-in-trade	43.732	--	--
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	1.260	0.430	(0.425)
		Employee benefit expense	3.924	0.330	0.658
		Other expenses	4.781	5.649	3.832
		TOTAL (B)	93.037	61.995	40.392
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.022	3.395	2.195
Less	FINANCIAL EXPENSES (D)		0.704	0.851	0.574
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.318	2.544	1.621
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.424	0.276	0.063
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		4.894	2.268	1.558
Less	TAX (H)		1.521	0.724	0.519
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		3.373	1.544	1.039
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.161	1.617	0.578
	BALANCE CARRIED TO THE B/S		6.534	3.161	1.617
	Earnings / (Loss) Per Share (Rs.)		11.24	5.15	10.39

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.41	2.36	2.44
Net Profit Margin (PBT/Sales)	(%)	4.95	3.48	3.66
Return on Total Assets (PBT/Total Assets}	(%)	10.43	7.38	8.39
Return on Investment (ROI) (PBT/Networth)		0.51	0.37	0.60
Debt Equity Ratio (Total Debt/Networth)		1.52	2.21	2.79
Current Ratio (Current Asset/Current Liability)		1.31	1.77	1.55

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	1.000	3.000	3.000
Reserves & Surplus	1.617	3.161	6.534
Share Application money pending allotment	0.000	0.000	0.000
Net worth	2.617	6.161	9.534
Long-term borrowings	5.386	12.037	11.547
Short term borrowings	1.927	1.558	2.947
Total borrowings	7.313	13.595	14.494
Debt/Equity ratio	2.794	2.207	1.520

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)
Total Income	42.587	65.390	99.059
		53.545	51.490

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Total Income	42.587	65.390	99.059
Profit	1.039	1.544	3.373
	2.44%	2.36%	3.41%

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	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 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	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	--
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	No

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10346264	13/03/2012 *	15,000,000.00	STATE BANK OF INDIA	TRIDENT COMPLEX, NEAR RACE COURSE CIRCLE, VADODARA, GUJARAT - 390007, INDIA	B36599884

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Loans and Advances from Related Parties
From Directors	0.000	0.469
From Shareholders	7.622	11.342
Total	7.622	11.811

Note:

The registered office of the company has been shifted from 6, Jay Complex, Near Deluxe Society, Deluxe Char Rasta, Nizampura, Vadodara – 390 002, Gujarat to the present address w.e.f. 25.06.2012.

BACKGROUND:

The Company was incorporated on 5^th June, 2009 and has its Registered Office at 192, Behind Petrol Pump, G.I.D.C., Nandesari, Vadodara – 391 340. The Company is engaged in the business of manufacturing and trading of chemicals, paints, etc.

FUTURE PROSPECTS:

The Industrial Shed acquired in GIDC Nandesari, near Vadodara has been now fully operational and the same has been renovated and new machineries have been purchased and installed. With this, the entire plant has become modern and fully operational. The Directors are now hopeful of big expansion in sales as most of the difficulties which were inhibiting sales have been removed. They are now concentrating on marketing for the all-round growth of the Company.

FIXED ASSETS:

· Factory Building Nandesari

· Office Building

· Plant and Machinery

· Vehicles

· Computers

· Office 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.59.06
UK Pound	1	Rs.99.61
Euro	1	Rs.80.60

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUM
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--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	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		44

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.