MIRA INFORM REPORT

Report Date :

04.11.2014

IDENTIFICATION DETAILS

Name :	VANI PHARMA LABS LIMITED (w.e.f. 05.11.2007)
Formerly Known As :	VANI CHEMICALS AND INTERMEDIATES LIMITED (w.e.f. 01.07.1998) VANI CHEMICALS AND INTERMEDIATES PRIVATE LIMITED
Registered Office :	II Floor, D. No.8-2-269/S/4, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500034, Telangana
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.06.1976
Com. Reg. No.:	01-002040
Capital Investment / Paid-up Capital :	Rs. 26.457 Millions
CIN No.: [Company Identification No.]	U24110TG1976PLC002040
TAN No.: [Tax Deduction & Collection Account No.]	HYDV00149C
PAN No.: [Permanent Account No.]	AAACV1555C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Bulk Drugs and Other Drug Intermediates.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 135000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate operational risk profile and losses that company has incurred from its operational activities. However, trade relations are fair. Business is active. Payment terms are reported to be 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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 31-03-2014.

INFORMATION DECLINED

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-40-23096262)

LOCATIONS

Registered Office :	II Floor, D. No.8-2-269/S/4, Sagar Society, Road No.2, Banjara Hills, Hyderabad – 500034, Telangana, India
Tel. No.:	91-40-23551436/ 23551437
Fax No.:	91-40-40275538
E-Mail :	finance@vanigroup.com vani@vanigroup.com
Website :	www.vanigroup.com
Factory 1 :	Plot Nos.11 and 12, Industrial Development Area, Jeedimetla, Hyderabad – 500055, Telangana, India
Tel. No.:	91-40-23096262
Fax No.:	91-40-23095034
E-Mail :	vcil@vanigroup.com
Factory 2 :	B (4), Kolhar Industrial Area, Kolhar, Bidar – 585403, Karnataka, India

DIRECTORS

As on 26.09.2013

Name :

Mr. Chakradhar Mallampati

Designation :

Managing Director

Address :

Plot No.889, D. No.8-2-293/82/A/889, Road No.45, Jubilee Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

04.09.1974

Qualification :

B.E.

Date of Appointment :

22.12.1998

DIN No.:

00138454

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	Company/ LLP Status	Defaulting status
1	U24110TG1976PLC002040	VANI PHARMA LABS LIMITED	Managing director	30-09-2010	22-12-1998	Active	NO
2	U85110KA1984PTC006406	VANI ORGANICS PRIVATE LIMITED	Managing director	20-05-2005	20-05-2005	Active	NO

Name :

Mr. Kutumba Rao Siripurapu

Designation :

Whole Time Director

Address :

H. No.8-3-658/7, 4^th Floor, Neni's Nest, Jayaprakashnagar, Yellareddyguda, Hyderabad – 500073, Andhra Pradesh, India

Date of Birth/Age :

20.08.1932

Qualification :

M. Sc. (Tech.), M.I.I.Ch.E., F.I.E.

Date of Appointment :

15.06.1976

DIN No.:

00163230

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	Company/ LLP Status	Defaulting status
1	U24110TG1976PLC002040	VANI PHARMA LABS LIMITED	Whole-time director	30-09-2010	15-06-1976	Active	NO
2	U85110KA1984PTC006406	VANI ORGANICS PRIVATE LIMITED	Director	05-10-1984	05-10-1984	Active	NO

Name :

Mr. Ravi Kumar Medampudi

Designation :

Whole Time Director

Address :

H.No.7-1-212/A/70, Plot No.85, Shivbagh Colony, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

10.07.1959

Qualification :

B.Sc.

Date of Appointment :

09.03.2011

DIN No.:

01850211

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	Company/ LLP Status	Defaulting status
1	U24239TG1999PLC031113	UNIQUE BIOTECH LIMITED	Director	20-12-2004	20-12-2004	Active	NO
2	U24110TG1976PLC002040	VANI PHARMA LABS LIMITED	Whole-time director	29-09-2011	09-03-2011	Active	NO
3	U72900TG2014PTC094871	SIMBOTIX PRIVATE LIMITED	Director	09-08-2014	16-07-2014	Active	NO

Name :

Mrs. Anuradha Mallampati

Designation :

Director

Address :

Plot No.899, D. No.8-2-293/82/A/889/1, Road No.45, Jubilee Hills, Hyderabad – 500038, Andhra Pradesh, India

Date of Birth/Age :

03.04.1956

Qualification :

M.A.

Date of Appointment :

27.10.2005

DIN No.:

00174777

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	Company/ LLP Status	Defaulting status
1	U85110KA1984PTC006406	VANI ORGANICS PRIVATE LIMITED	Director	05-04-2004	05-04-2004	Active	NO
2	U24110TG1976PLC002040	VANI PHARMA LABS LIMITED	Director	27-10-2005	27-10-2005	Active	NO

Name :

Mrs. Lakshmi Kranthi Mallampati

Designation :

Whole Time Director

Address :

Plot No.899, D. No.8-2-293/82/A/889, Road No.45, Jubilee Hills, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

14.08.1983

Qualification :

B.Tech

Date of Appointment :

21.02.2008

DIN No.:

00878298

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	Company/ LLP Status	Defaulting status
1	U24222KA1985PTC006759	CAUVERY LABELS PRIVATE LIMITED	Director	01-06-2005	01-06-2005	Active	NO
2	U24110TG1976PLC002040	VANI PHARMA LABS LIMITED	Director	05-04-2013	21-02-2008	Active	NO
3	U85110KA1984PTC006406	VANI ORGANICS PRIVATE LIMITED	Director	15-06-2013	15-06-2013	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2013

Names of Shareholders	No. of Shares
Siriplurapur Kutumba Rao	13925
Mallampati Anuradha	5285
Gadde Uma Devi	8250
Yelavarthi Mallikarjun Rao	12950
Yatinder Kumar Agarwal	4240
Dharmender Kumar Agarwal	4240
Siripurapu Lakshmi Phani	2525
Bindu Madhavi Sabiha	17000
Pamulapati Aparna	17000
Pyapli Seshachar Ramchandran	120
Mallampati Chakradhar	117230
Gannamani Madhuri	5872
Siripurapu Sandeep Krishna	1500
Siripurapu Sarada Sruthi	1500
Gadee Kalyan	215
Polavarapu Kartika	215
Tatineni Eswara Chandra Rao	105
Devanhaktuni Valli Devi	215
Yelavarthi Visalakshi	230
Madala Venateswara Rao	150
Mahesh Kumar	280
Adusumilli Satyavathi	85
Alapti Ranga Rao	215
Peravali Laxmi Sankari	15
Polavarapur Suresh	215
Baby Sofia	735
Vani Organics (Private) Limited, India	31835
Medempudi Naga Praveen	12488
Mallampati Lakshmi Kranthi	5850
Yalavarthi Prakash	75
Medampudi Ravi Kumar	5
Total	264565

As on 26.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	12.03
Directors or relatives of Directors	79.35
Other top fifty shareholders	8.62
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Bulk Drugs and Other Drug Intermediates.

Products :

Item Code No. (ITC Code)	Product Description
29331970	Analgin
29331100	Phenazone Antipirine
29331990	Drug Intermediates

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Axis Bank Limited, Corporate Banking Branch, I Floor, G Pulla Reddy Building, Greenlands, Begumpet Road, Hyderabad - 500016, Andhra Pradesh, India

· Axis Bank Limited, 6-3-879/B, Green Lands, Begumpet Road, Hyderabad, Andhra Pradesh, India

· Bank of Maharashtra, Bank Street, Hyderabad, Andhra Pradesh, India

· State Bank of India, Patarnata, Vijayawada - 520007, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
SHORT TERM BORROWINGS
Working Capital Loan from Axis bank Limited	44.807	44.852
Total	44.807	44.852

NOTE:

The working capital loan is secured by exclusive first charge on the entire current assets, present and future of the company with a charge on immovable properties of the company and personal guarantee of some directors of the company.

Banking Relations :	--
Auditors :
Name :	C K S Associates Chartered Accountants
Address :	87, Nagarjuna, Road No.3, Gagan Mahal Colony, Domalaguda, Hyderabad – 500029, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AABFC2043A
Related Party :	Vani Organics Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
440000	Equity Shares	Rs. 100/- each	Rs. 44.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
264565	Equity Share	Rs. 100/- each	Rs. 26.457 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	26.457	26.457	26.457
(b) Reserves & Surplus	20.803	57.171	65.483
(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)	47.260	83.628	91.940
(3) Non-Current Liabilities
(a) long-term borrowings	6.400	3.000	3.000
(b) Deferred tax liabilities (Net)	4.467	8.070	11.072
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	9.709	8.706	6.996
Total Non-current Liabilities (3)	20.576	19.776	21.068
(4) Current Liabilities
(a) Short term borrowings	44.807	44.852	43.905
(b) Trade payables	82.376	59.032	55.705
(c) Other current liabilities	3.150	1.392	5.453
(d) Short-term provisions	1.080	1.528	1.126
Total Current Liabilities (4)	131.413	106.804	106.189
TOTAL	199.249	210.208	219.197
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	78.904	88.534	95.797
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.690	0.690	0.690
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	6.392	6.392	6.392
(e) Other Non-current assets	5.758	5.658	5.358
Total Non-Current Assets	91.744	101.274	108.237
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	34.051	37.674	63.036
(c) Trade receivables	39.842	45.493	30.399
(d) Cash and cash equivalents	3.426	3.774	2.782
(e) Short-term loans and advances	26.379	19.214	12.003
(f) Other current assets	3.807	2.779	2.740
Total Current Assets	107.505	108.934	110.960
TOTAL	199.249	210.208	219.197

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	266.930	321.817	324.051
		Other Income	1.086	2.160	7.188
		TOTAL (A)	268.016	323.977	331.239
Less	EXPENSES
		Cost of Materials Consumed	165.795	177.757	216.155
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	2.392	21.695	(9.760)
		Employees benefits expense	51.057	50.412	47.566
		Other expenses	70.488	66.699	65.827
		exceptional Items	0.000	0.000	(7.261)
		TOTAL (B)	289.732	316.563	312.527
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(21.716)	7.414	18.712
Less	FINANCIAL EXPENSES (D)		7.321	7.286	7.838
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(29.037)	0.128	10.874
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.934	11.441	11.401
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(39.971)	(11.313)	(0.527)
Less	TAX (H)		(3.603)	(3.001)	2.255
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(36.368)	(8.312)	(2.782)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	84.746	107.074	139.557
	TOTAL EARNINGS		84.746	107.074	139.557
	IMPORTS
		Raw Materials	26.644	41.308	43.519
	TOTAL IMPORTS		26.644	41.308	43.519
	Earnings / (Loss) Per Share (Rs.)		(137.00)	(31.00)	(10.52)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(13.62)	(2.58)	(0.86)
Operating Profit Margin (PBDIT/Sales)	(%)	(8.14)	2.30	5.77
Return on Total Assets (PBT/Total Assets}	(%)	(20.13)	(5.40)	(0.24)
Return on Investment (ROI) (PBT/Networth)		(0.85)	(0.14)	(0.01)
Debt Equity Ratio (Total Debt/Networth)		1.08	0.57	0.51
Current Ratio (Current Asset/Current Liability)		0.82	1.02	1.04

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	26.457	26.457	26.457
Reserves & Surplus	65.483	57.171	20.803
Net worth	91.940	83.628	47.260
long-term borrowings	3.000	3.000	6.400
Short term borrowings	43.905	44.852	44.807
Total borrowings	46.905	47.852	51.207
Debt/Equity ratio	0.510	0.572	1.084

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	324.051	321.817	266.930
		(0.689)	(17.055)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	324.051	321.817	266.930
Profit/ (Loss)	(2.782)	(8.312)	(36.368)
	(0.86%)	(2.58%)	(13.62%)

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	No
10]	Designation of contact person	No
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	No
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	10046969	04/10/2013 *	67,500,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH, I FLOOR, G PULLA REDDY BUILDING, GREENLANDS, BEGUMPET ROAD, HYDERABAD, ANDHRA PRADESH - 500016, INDIA	B88278478
2	90123587	07/05/1991	73,337.00	NAGAR JUNA FINANCE LTD	NAGAR JUNA HILLS, HYDERABAD, ANDHRA PRADESH - 500048, INDIA	-
3	90122180	28/09/1990	175,870.00	GOLD STAR HOLDING AND INDUSTRIES LIMITED	GOLD STAR CHAMBERS 6-3-802, AMEERPET, HYDERABAD, ANDHRA PRADESH - 500016, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and Advances from Related Parties From Directors	6.400	3.000
Total	6.400	3.000
NOTE: The unsecured loan of Rs. 3.000 Millions from the Managing Director and Rs. 3.400 Millions from the director of the company are in accordance with the terms and conditions stipulated by the company’s bankers and would continue till the bankers permit the repayment of the loan.

CHANGE OF ADDRESS

The registered office of the company has been shifted from 1-306 and 307, Divyashakti Complex, 7-1-58, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India to the present address w.e.f. 29.04.2009.

HISTORY:

The Company was incorporated as a private limited company on June 15, 1976. It was converted into a limited company on July 01, 1998 by virtue of Section 43 A(IA) of the Companies Act, 1956. The Company commenced commercial operations with effect from May 1977, its plant located at Jeedimetla Industrial Area, Hyderabad, manufacturing Bulk Drugs. The Company has acquired the business undertaking of Vijayalakshmi Drugs and Chemicals, a partnership firm engaged in manufacture of bulk drugs situated at Jeedimetla. Presently, the company is engaged in production of Bulk Drugs and other Drug Intermediates.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Bank Guarantee	0.900	1.000
Letters of Credit	13.173	24.548
In respect of disputed Income-Tax matters	2.482	2.482

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Pollution Control Plant

· Electrical Installations

· Laboratory Equipment

· Office Equipment

· Computers

· Furniture and Fixtures

· Vehicles

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.61.41
UK Pound	1	Rs.98.06
Euro	1	Rs.76.67

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KAR
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		32

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.