MIRA INFORM REPORT

Report Date :

10.11.2014

IDENTIFICATION DETAILS

Name :	SUNSHIELD CHEMICALS LIMITED
Registered Office :	Phoenix House, “A” Wing, 4th Floor, 462, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	19.11.1986
Com. Reg. No.:	11-041612
Capital Investment / Paid-up Capital :	Rs. 73.531 Millions
CIN No.: [Company Identification No.]	L99999MH1986PLC041612
TAN No.: [Tax Deduction & Collection Account No.]	MUMS38695G
PAN No.: [Permanent Account No.]	AAFCS8219K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on Stock Exchanges.
Line of Business :	Manufacturer and Exporter of various Antioxidants and Specialty Surfactants.
No. of Employees :	Information decline by the management

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 600000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred a loss from operations during 2014. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings 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 DENIED

Management Non-Cooperative (Tel no. : 91-22-6667100/101)

LOCATIONS

Registered Office / Corporate Office :	Phoenix House, “A” Wing, 4th Floor, 462, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013, Maharashtra, India
Tel. No.:	91-22-66637101
Fax No.:	Not Available
E-Mail :	satish.kelkar@sunshield.in sales@sunshield.in amit.kumashi@solvay.com
Website :	http://www.subshield.in
Factory /R & D Centre:	Pali-Khopoli Road, Village Rasal, Taluka Sudhagad, District Raigad, Maharashtra, India
Tel. No.:	91-2142-242226 / 242046 / 242117

DIRECTORS

As on 31.03.2014

DIRECTORS
Name :	Mr. Suresh Talwar
Designation :	Chairman
Name :	Mr. Michel Ybert (Alt. Guo Lin)
Designation :	Director
Name :	Mr. Ian Brown
Designation :	Director
Name :	Mr. Sanjeev Mukerjee
Designation :	Director
Name :	Mr. Yogesh Thar
Designation :	Director
Name :	Mr. Pierre Frank Valentin (Alt. Chen pu)
Designation :	Director
Name :	Mr. Manoj Khullar
Designation :	Director
Name :	Mr. Satish Kelkar
Designation :	Director
Name :	Mr. Shrirang Belgaonkar
Designation :	Wholetime Director
AUDIT COMMITEE
Name :	Mr. Yogesh Thar
Designation :	Chairman
Name :	Mr. Sanjeev Mukerjee
Name :	Mr. Suresh Talwar (w.e.f. 21st January 2014)
Name :	Mr. Manoj Khullar
Name :	Mr. Satish Kelkar

KEY EXECUTIVES

Name :	Mr. Amit Kumashi
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	4585196	62.36
Sub Total	4585196	62.36
Total shareholding of Promoter and Promoter Group (A)	4585196	62.36
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	700	0.01
Central Government / State Government(s)	200	0.00
Sub Total	900	0.01
(2) Non-Institutions
Bodies Corporate	251849	3.43
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Millions	1468419	19.97
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	961831	13.08
Any Others (Specify)	84865	1.15
Directors & their Relatives & Friends	84865	1.15
Sub Total	2766964	37.63
Total Public shareholding (B)	2767864	37.64
Total (A)+(B)	7353060	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	7353060	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of various Antioxidants and Specialty Surfactants.
Exports :	Not Available
Imports :	Not Available

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Information decline by the management

Bankers :

• Bank of Baroda
• The Saraswat Co-operative Bank Limited
• State Bank of India
• ING Vyasa Limited
• BNP Paribas

Facilities :

SECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2014	As on 31.03.2013
Short-Term Borrowings
Loans repayable on demand
From Banks (Secured By Hypothecation of Inventories and Receivables)	0.000	60.945
Total	0.000	60.945

Note :

Long-Term Borrowings

Term Loan:

(Rs. In Millions)

			31 March, 2014	31 March, 2013
BNP Paribas	Non current Liabilities	Referred as above	170.000	170.000
			170.000	170.000

Disclosure thereof are as under:

Term Loan:

Term Loan Account	Tenure (months)	No. of Installments outstandings	Amount of Loan Outstandings (Rs. In Millions)	Rate of Interest	Security offered
BNP Paribas	60	1	170.000	10.30%	Refer note below

(i) The Term Loan has been sanctioned against a Corporate Guarantee given by Rhodia S.A., a group company based in France.

(ii) The said Term Loan from the bank as at March 31, 2014; is repayable after 5 years (60 months with option to prepay) from the date of acceptance (28-02-2013) in one single installment. Interest is payable on monthly basis on the amount of loan

outstanding

Deferred Payment Liabilities:

(1) Interest free unsecured loans (converted from Sales Tax Deferral Incentive Scheme of Maharashtra State) outstanding as on 31st March, 2014 stand at Rs. 17.291 Millions (P.Y. Rs. 18.502 Millions). The present value of the aforesaid loans in accordance with the Notification dt. 16-11-2002 of the Maharashtra Government stands at Rs. 15.902 Millions as under (Previous Year Rs. 16.375 Millions).

(Rs. In Millions)

		31 March, 2014	31 March, 2013
Current Liabilities	Referred in Note No. 1.8	2.003	1.210
Non-current Liabilities	Referred as above	13.899	15.165
		15.902	16.375

(2) With respect to Sales Tax Deferral prior to 01-04-2004, provision has been made for the year ended 31st March 2014 for the

incremental present value of Rs. 7.38 Millions (P.Y. Rs. 7.86 Millions) and is appearing in the Note No. 1.24 of Other Expenses.

Other Loans & Advances:

(1) The Company has accepted foreign currency loan of US Dollers 0.671 mn out of the total approval of USD 8.00 mn in the form of External Commercial Borrowing (ECB) from its group company based in Ireland as per the approval received from Reserve Bank of India. Total loan outstanding as at 31st March, 2014 stood at Rs. 40.186 Millions.

(2) Total cost of this borrowings, including interest and exchanges differences during the year is Rs. 1079 Millions which as per the accounting policy of the company is treated as capital expenditure, details of which are as under:

(Rs. In Millions)

	March 31, 2014	March 31, 2013
Loan Movement:
Outstanding as on 31-03-2013	0.000	0.000
Amount drawn during the year	41.689	0.000
Exchange Gain on Revaluation	(1.503)	0.000
Closing Balance as on 31-03-2014	40.186	0.000
Finance cost for the year:
Interest Cost	0.424	0.000
Exchange Gain on Revaluation	(1.503)	0.000
Net Finance Cost capitalized	(1.079)	0.000

Short-Term Borrowings

Secured

During the year the Company has closed the working capital facilities from the consortium of bankers.

Unsecured

Short Term Loans for the working capital facilities from banker other than consortium of bankers are backed by a corporate guarantee from Rhodia S.A., a group company based in France.

Banking Relations :	---
Auditors :
Name :	Ashok Pandit and Company Chartered Accountants
Holding Company :	Rhodia Amines Chemicals Pte Limited
Associates :	Solvay Specialties India Private Limited Rhodia Specialty Chemicals India Limited Solvay Finance Ireland Solvay Asia Pacific Company Limited Solvay Specialty Chemicals Asia Pacific PTE Limited Solvay (Zhenji) Chemicals Company Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions
5000000	7% Non Cummulative Redeemable Preference Shares	Rs.10/- each	Rs. 50.000 Millions
			Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7353060	Equity Shares	Rs.10/- each	Rs. 73.531 Millions

(a) Reconciliation of number of shares outstanding at the beginning and at the end of the year

Equity Shares	As at March 31, 2014
	No. of Shares	Rs. In Millions
At the beginning of the year	7353060	73.531
Add: Issued during the year	----	----
Outstanding at the end of the year	7353060	73.530

(b) Shares held by Holding / Ultimate Holding Company and/or their Subsidiaries

	As at March 31, 2014
	No. of Shares	Rs. In Millions
Rhodia Amines Chemicals Pte Limited (Holding Company)	4585196	45.852

(c) Details of shareholders holding more than 5% equity shares in the Company

	As at March 31, 2014
	No. of Shares	Percentage
Rhodia Amines Chemicals Pte Limited (Holding Company)	4585196	62.36%

LISTING DETAILS:

Subject Stock Code :	BSE : 530845 NSE : NE199E01014
Stock Exchange Place :	· National Securities Depository Limited · Central Depository Services (India) Limited
Listed Date :	Not Available

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	73.531	73.531	73.531
(b) Reserves & Surplus	137.009	141.056	132.633
(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)	210.540	214.587	206.164
(3) Non-Current Liabilities
(a) long-term borrowings	224.085	185.165	191.340
(b) Deferred tax liabilities (Net)	50.296	-19.032	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	5.630	4.686	2.683
Total Non-current Liabilities (3)	280.011	170.819	194.023
(4) Current Liabilities
(a) Short term borrowings	216.454	101.332	184.571
(b) Trade payables	125.174	132.029	124.801
(c) Other current liabilities	124.260	151.912	57.169
(d) Short-term provisions	50.551	24.000	9.937
Total Current Liabilities (4)	516.439	409.273	376.478
TOTAL	1006.990	794.679	776.665
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	335.891	355.115	364.713
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	31.211	3.698	3.256
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	42.775	42.775	42.775
(c) Deferred tax assets (net)	0.000	0.000	18.863
(d) Long-term Loan and Advances	32.834	0.000	3.947
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	442.711	401.588	433.554
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	137.964	114.043	101.216
(c) Trade receivables	328.853	218.813	191.126
(d) Cash and cash equivalents	27.251	5.170	7.508
(e) Short-term loans and advances	63.729	46.225	5.314
(f) Other current assets	6.482	8.840	37.947
Total Current Assets	564.279	393.091	343.111
TOTAL	1006.990	794.679	776.665

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1338.957	1053.008	942.785
		Other Income	7.792	2.008	9.330
		TOTAL (A)	1346.749	1055.016	952.115
Less	EXPENSES
		Cost of Materials Consumed	988.141	764.497	695.066
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(27.054)	(8.568)	(13.400)
		Employees benefits expense	49.858	46.836	39.043
		Other expenses	214.051	166.154	145.635
		TOTAL (B)	1224.996	968.919	866.344
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		121.753	86.097	85.771
Less	FINANCIAL EXPENSES (D)		44.859	50.976	55.047
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		76.894	35.121	30.724
Less/ Add	DEPRECIATION/ AMORTISATION (F)		23.013	24.817	22.389
	PROFIT BEFORE TAX (E-F) (G)		53.881	10.304	8.335
Less	TAX (H)		57.927	1.881	(1.348)
	PROFIT AFTER TAX (G-H) (I)		(4.046)	8.423	9.683
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	778.556	606.036	470.843
	TOTAL EARNINGS		778.556	606.036	470.843
	IMPORTS
		Raw Materials	297.027	282.380	227.167
	TOTAL IMPORTS		297.027	282.380	227.167
	Earnings Per Share (Rs.)		(0.55)	1.15	1.32

QUARTERLY RESULTS

PARTICULARS	Quarter Ended June 2014
Type	Unaudited
Net Sales	30.77
Total Expenditure	29.14
PBIDT (Excl OI)	1.63
Other Income	0.04
Operating Profit	1.67
Interest	0.89
Exceptional Items	0
PBDT	0.78
Depreciation	0.66
Profit Before Tax	0.12
Tax	0.09
Provisions and contingencies	0
Profit After Tax	0.03
Extraordinary Items	0
Prior Period Expenses	0
Other Adjustments	0
Net Profit	0.03

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(0.30)	0.80	1.03
Operating Profit Margin (PBITD/Sales)	(%)	9.09	8.18	9.10
Return on Total Assets (PBT/Total Assets}	(%)	5.78	1.38	1.17
Return on Investment (ROI) (PBT/Networth)		0.26	0.05	0.04
Debt Equity Ratio (Total Debt /Networth)		2.09	1.34	1.82
Current Ratio (Current Asset/Current Liability)		1.09	0.96	0.91

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	73.531	73.531	73.531
Reserves & Surplus	132.633	141.056	137.009
Net worth	206.164	214.587	210.540
long-term borrowings	191.340	185.165	224.085
Short term borrowings	184.571	101.332	216.454
Total borrowings	375.911	286.497	440.539
Debt/Equity ratio	1.823	1.335	2.092

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	942.785	1053.008	1338.957
		11.691	27.155

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	942.785	1053.008	1338.957
Profit	9.683	8.423	(4.046)
	1.03%	0.80%	(0.30%)

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	No
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	No
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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2014	As on 31.03.2013
Long-Term Borrowings
Term loans From Banks	170.000	170.000
Deferred payment liabilities Interest free sales tax loans: 1993 Scheme	13.899	15.165
Other loans and advances Loan from Associate Company (ECB)	40.186	0.000
Short-Term Borrowings
Loans repayable on demand
From Banks	216.454	40.387
Total	440.539	225.552

MANAGEMENT’S DISCUSSION AND ANALYSIS:

INDUSTRY STRUCTURE & DEVELOPMENT:

The Company manufactures process chemicals that are formulated to meet requirements of industries and are known as “Specialty Chemicals” (SC). Specialty Chemicals manufactured by the Company find

extensive use in diverse range of Industries such as Wire Insulation Enamel, PVC stabilizers, Inks, Colours, Coatings, Textiles, Agro-chemicals, Plastics, Rubber and Latex, Tyre and Tubes, Lubricant and additives, and many more.

Some of these SC are Ethylene Oxide (EO) based derivatives, called Ethylene Oxide Condensates (EOC). For the EOC industry, EO is a vital input. EO is a product manufactured mainly for captive consumption

by petrochemical complexes to produce MEG, a vital input for Polyester Fibre industry. Based on the captive requirements, petrochemical complexes allocate EO to EOC industry. EO is non importable by sea/air on account of transportation hazards because of its characteristics of low boiling point and explosive nature. EO, therefore needs to be transported at controlled temperatures and under Nitrogen pressure, in specially designed road tankers. EOC Industry therefore depends entirely on domestic EO availability and Prices.

Besides, EOC based Specialty Chemicals; Company has also diversified into the manufacture of a range of Anti-Oxidants and certain other additives, which do not use EO. This range of products is also required

by a diverse group of industries in the field of Lubricants, Additives, Plastics, Polymers, Rubber, Tyre, Resins and other industries.

The Company is presently catering to the requirements of both the ranges of SC, for large domestic Companies and prime MNCs operating in North and South America; Germany, France, Italy, Netherlands, Turkey etc. in Europe; and also in Asian markets like Korea, Taiwan, Malaysia, Japan etc.

OPERATING AND FINANCIAL PERFORMANCE OF THE COMPANY

During the year, Sales by Volume went up by 19% from 8146 Mt to 9703 Mt. The Sales in Value terms went up by 27%. Export Sales went up by 26% from Rs. 630.700 Millions to Rs. 792.700 Millions and Domestic Sales went up by 26% from Rs. 487.800 Millions in 2012-13 to Rs. 615.500 Millions in 2013-14. EBIDTA was up by 41% at Rs. 121.800 Millions in the year 2013-14 against EBIDTA of Rs. 86.800 Millions in the previous year. Finance Cost came down from Rs. 51.000 Millions in 2012-13 to Rs. 44.900 Millions in 2013-14, a drop of 12% over that of previous year.

Cash profit (Profit before Tax & Depreciation) went up by 119% from Rs. 35.100 Millions in the year 2012-13 to Rs. 76.900 Millions in the year 2013-14.

After provision of depreciation of Rs. 23.000 Millions for 2013-14 (Rs. 24.800 Millions for 2012-13. Net Profit before Tax provision went up from Rs. 10.300 Millions to Rs. 539 Millions a rise of 423%.)

However, as a matter of abundant caution and prudence, in addition to provision of current year’s Income tax, a provision for MAT credit entitlement and revision on Deferred Tax has been made having final effect that post tax provision, the Net Profit after Tax came down from Rs. 8.400 Millions in 2012-13 to a loss of Rs. 4.000 Millions for 2013-14.

OUTLOOK

The Company is already recognized globally, as a reliable supplier of quality Specialty Chemicals, for a variety of end use applications. The Company is reasonably optimistic to further improve its performance

in the current year. The Company’s products range continues to be accepted all over the world and now Sunshield being of Solvay group has a strong presence worldwide, resulting in 26%+ growth in domestic as also export business.

With the Company’s strength to implement Environment Health and Safety upgrades at Rasal production site to meet Solvay’s Global standards, the Company plans to take up Capex plan (amounting to Equivalent to US $ 8 million, for which Reserve Bank of India approval has been already received) for these up-grades as also capacity increase and diversification, bringing long term sustainable growth path for the Company.

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

CONTINGENT LIABILITIES :

(Rs. In Millions)

Particulars	As at March 31, 2014	As at March 31, 2013
(a) Indemnity/Guarantees:
Indemnity /Counter Guarantees issued for Bank Guarantee and Letter of Credit issued	15.527	27.947
(b) Other money for which the Company is contingently liable:
Demand notices issued by Income Tax Dept. for which the Company has preferred appeal	12.816*	12.567
Demand notices issued by Sales Tax Dept. for which the Company has preferred appeal	128.386	0.000
TOTAL	141.202	12.567
* Out of the above, Company has already deposited Rs. 97.85 Millions with the income tax authorities.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• R and D Centre
• Capital Work in Progress

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. 61.52
UK Pound	1	Rs. 97.39
Euro	1	Rs. 76.15

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	RSM
Report Prepared by :	ASH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.