MIRA INFORM REPORT

Report Date :

01.10.2014

IDENTIFICATION DETAILS

Name :	SAMRAT PHARMACHEM LIMITED (w.e.f. 24.07.1992)
Formerly Known As :	SAMRAT PHARMACHEM PRIVATE LIMITED
Registered Office :	Plot No. A2/3445, G.I.D.C., Phase–4, Ankleshwar – 393 002, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	16.06.1992
Com. Reg. No.:	04-017820
Capital Investment / Paid-up Capital :	Rs.30.897 Millions
CIN No.: [Company Identification No.]	L24230GJ1992PLC017820
IEC No.:	0392065622
TAN No.: [Tax Deduction & Collection Account No.]	MUMS42633D BRDS06273B
PAN No.: [Permanent Account No.]	AAECS0806M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer, Importer and Exporter of Pharmaceutical Chemicals.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Not Available
Comments :	Subject is an established company having a moderate track record. Profitability of the company is low during 2014. However, trade relations are fair. Business is active. Payments terms are reported to be 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 CO-OPERATIVE (91-2646-220774)

LOCATIONS

Registered Office / Statutory Office / Factory 1:	Plot No. A2 / 3445, G.I.D.C., Phase – 4, Ankleshwar – 393002, Gujarat, India
Tel. No.:	91-2646-220774
Mobile No.:	91-9321002222 (Mr. Rajesh Mehta)
Fax No.:	91-2646-251291
E-Mail :	samrat@bom4.vsnl.net.in
Website :	http://www.samratpharmachem.com
Area :	3645 sq. mtr
Location :	Owned
Locality :	Commercial
Corporate Office :	701/702, Business Square, M.A. Road, Andheri (West), Mumbai – 400058, Maharashtra, India
Tel. No.:	91-22-26701050 / 1 / 2
Fax No.:	91-22-26701053
E-Mail :	samrat@bom4.vsnl.net.in

DIRECTORS

As on 31.03.2014

Name :	Mr. Lalit Damodar Mehta
Designation :	Managing Director
Address :	B/74, Roop Darshan, Juhu Lane, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	08.08.1936
Qualification :	B. Sc , LLB
Date of Appointment :	01.04.2011
PAN No.:	AABPM9691E
DIN No.:	00216681
Name :	Mr. Rajesh Lalit Mehta
Designation :	Whole Time Director
Address :	B/74, Roop Darshan, Juhu Lane, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	25.06.1964
Qualification :	B.Com, ACA
Date of Appointment :	01.04.2011
PAN No.:	AABPM9692H
DIN No.:	00216731
Name :	Mr. Mahendra Indulal Pipalia
Designation :	Director
Address :	A/15, Shatdal, Azad Lane, S.V. Road, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	09.11.1963
Qualification :	B.Com, ACA
Date of Appointment :	17.03.2003
DIN No.:	00216959
Name :	Mr. Samir Harsukhrai Kothary
Designation :	Director
Address :	B/45, Roop Darshan, Juhu Lane, Andheri (West), Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	10.10.1962
Qualification :	B. Sc, DBM
Date of Appointment :	30.07.2003
DIN No.:	00216603

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1445431	46.78
Sub Total	1445431	46.78
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1445431	46.78
(B) Public Shareholding
(1) Institutions
Foreign Institutional Investors	100000	3.24
Sub Total	100000	3.24
(2) Non-Institutions
Bodies Corporate	143157	4.63
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	896639	29.02
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	455417	14.74
Any Others (Specify)	49056	1.59
Clearing Members	3406	0.11
Non Resident Indians	45650	1.48
Sub Total	1544269	49.98
Total Public shareholding (B)	1644269	53.22
Total (A)+(B)	3089700	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)	3089700	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of Pharmaceutical Chemicals.

Products :

Item Code	Product Description
28276010	Potassium Iodide
28276020	Sodium Iodide
28012000	Iodine

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· ICICI Bank Limited, Sagar Avenue, S. V. Road, Andheri (West), Mumbai - 400 058, Maharashtra, India

· HDFC Bank Limited, Jamuna Apts, S. V. Road, Andheri (West), Mumbai - 400 058, Maharashtra, India

· State Bank of India, Rahul Apartments, S. V. Road, Andheri (West), Mumbai - 400 058, Maharashtra, India

· UCO Bank, FCC Branch, D. N. Road, Fort, Mumbai - 400 001, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
From Banks
HDFC Bank	6.562	10.088
SHORT TERM BORROWINGS
Cash Credit from ICICI bank (Secured by hypothecation of Stock, Book Debts, and first charge over Fixed Assets. As a collateral security, the promoter directors Mr. Lalit Mehta and Mr. Rajesh Mehta have given their personal guarantee)	21.362	29.843
Principal of Term Loan falling due within a year	3.526	3.113
Total	31.450	43.044

Banking Relations :	--
Auditors :
Name :	Shah, Shah and Shah Chartered Accountants
Address :	502, Damji Shamji Trade Centre, Vidyavihar (West), Mumbai – 400 086, Maharashtra, India
Tel. No. :	91-22-25100861 / 25109990
E-Mail :	info@shah3ca.com
PAN No. :	AALFS8301D

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3089700	Equity Shares	Rs.10/- each	Rs.30.897 Millions

Shareholding details more than 5%.

	31.03.2014
Name of Shareholder	Number of Shares Held	% of Holding
Lalit Mehta	417,198	13.50%
Rajesh Mehta	372,853	12.07%
Premal Mehta	174,281	5.64%

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	30.897	30.897	30.897
(b) Reserves & Surplus	100.491	98.072	98.072
(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)	131.388	128.969	128.969
(3) Non-Current Liabilities
(a) long-term borrowings	6.562	10.088	10.088
(b) Deferred tax liabilities (Net)	3.697	2.991	2.991
(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)	10.259	13.079	13.079
(4) Current Liabilities
(a) Short term borrowings	24.888	32.956	32.956
(b) Trade payables	144.229	159.690	159.690
(c) Other current liabilities	2.531	4.345	4.345
(d) Short-term provisions	0.571	0.000	0.000
Total Current Liabilities (4)	172.219	196.991	196.991
TOTAL	313.866	339.039	339.039
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	74.848	37.452	37.452
(ii) Intangible Assets	0.244	0.299	0.299
(iii) Capital work-in-progress	0.000	35.146	35.146
(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	1.321	1.337	1.337
(e) Other Non-current assets	1.857	1.707	1.707
Total Non-Current Assets	78.270	75.941	75.941
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	74.805	97.297	97.297
(c) Trade receivables	112.288	117.677	117.677
(d) Cash and cash equivalents	43.604	25.625	25.625
(e) Short-term loans and advances	0.505	0.300	0.300
(f) Other current assets	4.394	22.199	22.199
Total Current Assets	235.596	263.098	263.098
TOTAL	313.866	339.039	339.039

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	648.406	705.212	697.939
		Other Income	7.988	5.268	0.000
		TOTAL	656.394	710.480	697.939
Less	EXPENSES
		Cost of Materials Consumed	569.769	668.782	649.748
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	27.999	(16.009)	(58.877)
		Employees benefits expense	6.841	8.540	5.048
		Other expenses	36.867	31.430	35.942
		TOTAL	641.476	692.743	631.861
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		14.918	17.737	66.078
Less	FINANCIAL EXPENSES		7.534	9.506	6.160
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		7.384	8.231	59.918
Less/ Add	DEPRECIATION/ AMORTISATION		3.309	2.415	1.928
	PROFIT/ (LOSS) BEFORE TAX		4.075	5.816	57.990
Less	TAX		1.657	1.813	20.217
	PROFIT/ (LOSS) AFTER TAX		2.418	4.003	37.773
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		98.073	94.070	56.297
	BALANCE CARRIED TO THE B/S		100.491	98.073	94.070
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	175.371	178.856	253.221
	TOTAL EARNINGS		175.371	178.856	253.221
	IMPORTS
		Raw Materials	479.701	563.633	553.904
	TOTAL IMPORTS		479.701	563.633	553.904
	Earnings / (Loss) Per Share (Rs.)		0.78	1.30	12.23

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.37	0.56	5.41
Net Profit Margin (PBT/Sales)	(%)	0.63	0.82	8.31
Return on Total Assets (PBT/Total Assets}	(%)	1.30	1.91	19.08
Return on Investment (ROI) (PBT/Networth)		0.03	0.05	0.45
Debt Equity Ratio (Total Debt/Networth)		0.24	0.33	0.33
Current Ratio (Current Asset/Current Liability)		1.37	1.34	1.34

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	30.897	30.897	30.897
Reserves & Surplus	98.072	98.072	100.491
Net worth	128.969	128.969	131.388
long-term borrowings	10.088	10.088	6.562
Short term borrowings	32.956	32.956	24.888
Total borrowings	43.044	43.044	31.450
Debt/Equity ratio	0.334	0.334	0.239

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)
Revenue from operations	697.939	705.212	648.406
		1.042	(8.055)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	697.939	705.212	648.406
Profit	37.773	4.003	2.418
	5.41%	0.57%	0.37%

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	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	No
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	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	10322529	05/12/2011	8,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B27635127
2	10313445	21/10/2011	20,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B23633027
3	10312791	19/10/2011	17,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	B23437551
4	10101754	29/10/2012 *	195,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B62528450
5	80001467	20/10/2012 *	195,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B62630538

* Date of charge modification

OPERATIONS

The company has performed reasonably well during the year. In a highly competitive business environment, the Company achieved a turnover of Rs. 648.406 millions as against Rs. 705.211 millions achieved last year – a decrease of around 8.06%. Production of 238.04 tons of pharmaceutical chemicals was achieved during the year.

EXPORTS

During the year 2013-2014 the company’s export division registered sales of Rs. 175.371 millions, down from Rs. 178.856 millions last year. The Company has initiated several export promotion measures to increase exports. The products of the Company have been well accepted in the international market and the Company expects better export turnover in the coming years.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is a producer of pharmaceutical chemicals. The intermediates produced are used in pharmaceutical and chemical industries. The Company is amongst the manufacturers who produce for local and international needs of the pharmaceuticals and chemicals industry. The pharmaceutical and chemical industry is growing at a rapid pace every year. This results into growth of the support or intermediate industry like us.

PRODUCT PERFORMANCE

The company has two plants producing varied items. The basic purpose of producing in two different plants is to improve efficiency and manageability. The Company shall achieve sustainable growth in both plants by modernization and automation of operations. According to the Directors, these plants facilitate better division of labour, enable us to develop expertise in each plant and their respective items, and hence improve productivity and profitability of the Company.

OUTLOOK

According to Yes Bank Report titled “Indian Pharmaceutical Industry : Vision 2015”, the Indian Pharmaceutical and Chemical industry is projected to grow at an annual rate of 14.2%. Currently valued at USD 10 Billion, the projected turnover to touch USD 50 Billion by the year 2015.

FIXED ASSETS

Ø Tangible Assets

œ Land

œ Factory Building

œ Office Premises

œ Plant and Machinery

œ Office Equipment

œ Computer System

œ Furniture and Fixtures

œ Vehicles

Ø Intangible Assets

œ Goodwill

œ Brands / Trademarks

œ Computer Software

UNAUDITED RESULTS FOR THE QUARTER AND ENDED ON 30^TH JUNE, 2014

(Rs. In Millions)

		Particulars	Quarter ended 30.06.2014
1	Income from Operations
	a) Net Sales/Income from Operations (net of excise duty)		141.384
	b) Other Operating Income		0.383
	Total Income from Operations (Net)		141.767
2	Expenses
	a)	(Increases) / Decreases in stock in trade/WIP	11.426
	b)	Consumption of Raw Material	117.747
	c)	Purchase of Traded Goods	0.000
	d)	Employee costs	1.879
	e)	Depreciation	0.865
	f)	Other Expenses
	i)	Manufacturing Expenses	2.476
	ii)	Administration Expenses	1.140
	iii)	Selling and Distribution Expenses	1.269
	Total Expenses		136.802
3		Profit /(Loss) from operations before other income, finance costs and exceptional items (1-2)	4.965
4	Other Income		0.300
5		Profit /(Loss) from ordinary activities before finance costs and exceptional items (3+4)	5.265
6	Finance Costs		1.224
7		Profit /(Loss) from ordinary activities after finance costs but before exceptional items (5-6)	4.041
8	Exceptional Items		0.000
9	Profit /(Loss) from ordinary activities before tax		4.041
10	Tax Expense		1.648
11	Net Profit /(Loss) from ordinary activities after tax (9-10)		2.393
12	Extraordinary items (net of tax expense)		0.000
13	Net Profit /(Loss) for the period (11-12)		2.393
14	Paid up equity share capital (Eq. shares of Rs.10/- each)		30.897
15	Reserve excluding revaluation reserves		102.880
16		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic	0.77
		Diluted	0.77
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	1644269
		- Percentage of Shareholding	53.22
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	--
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	--
		- Percentage of shares (as a % of the total share capital of the Company)	--
		b) Non- encumbered
		- Number of shares	1445431
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	100.00
		- Percentage of shares (as a % of the total share capital of the Company)	46.78

	Particulars		Quarter ended 30.06.2014
B		Investor Complaints
		Pending at the beginning of the quarter	0
		Received during the quarter	0
		Disposed during the quarter	0
		Remaining unresolved at the end of the quarter	0

NOTE:

1. The above results were reviewed by the Audit Committee of the Board of Directors.

2. The Statutory Auditors have carried out a limited review of the results for the quarter ended June 30, 2014.

3. The above unaudited results have been taken on record by the Board of Directors at its Meeting held on August 14, 2014 at the Corporate Office of the Company.

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.61.61
UK Pound	1	Rs.100.28
Euro	1	Rs.78.21

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	RAS
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.