MIRA INFORM REPORT

Report Date :

09.10.2014

IDENTIFICATION DETAILS

Name :	EZONE SECURITY SOLUTIONS (INDIA) PRIVATE LIMITED (w.e.f. 30.10.2007)
Formerly Known As :	PEOPLE'S SECURITY SERVICES PRIVATE LIMITED
Registered Office :	60-1-7/1, Near Siddhartha Arts College, Vijayawada – 520010, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	15.03.2002
Com. Reg. No.:	01-038654
Capital Investment / Paid-up Capital :	Rs.12.662 Millions
CIN No.: [Company Identification No.]	U74920AP2002PTC038654
Legal Form :	Private Limited Liability Company
Line of Business :	Providing Electronic Security, Surveillance and Automation Solutions.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 160000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company possesses a moderate financial profile marked by small networth base along with working capital intensive operations. Management has reported an acceptable revenue as well as net profitability resulting into complete wiping off accumulated losses during FY 13. Trade relations seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of financial support from its promoters, the company can be considered for business dealings with 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 slowly 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = BB
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligations
Date	23.04.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4+
Rating Explanation	Minimal degree of safety and very high credit risk
Date	23.04.2014

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 BY

Name :	Mr. Ashok
Designation :	Accounts Manager
Contact No.:	91-40-65298383
Date :	08.10.2014

LOCATIONS

Registered Office :	60-1-7/1, Near Siddhartha Arts College, Vijayawada – 520010, Andhra Pradesh, India
Tel. No.:	91-866-6611199 / 2490980
Fax No.:	91-866-6667722
E-Mail :	sekhar@todayshealthcare.in info@ezonesecurity.com
Website :	http://www.ezonesecurity.com
Corporate Office :	#7-1-71/H, Besides Challa Hospital, Dharam Karam Road, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India
Tel. No.:	91-40-65298383 / 65290222
Fax No.:	91-40-23750241
Chennai Office :	549, IV Sector, 14^th Street, K. K. Nagar, Chennai – 600078, Tamilnadu, India
Tel. No.:	91-44-42124393
Fax No.:	91-44-42125383

DIRECTORS

As on 13.09.2013

Name :

Mr. Sekhar Chennupati

Designation :

Director

Address :

59-8-5, II Lane, Gayatrinagar, Vijayawada - 520008, Andhra Pradesh, India

Date of Appointment :

10.03.2014

DIN No.:

00380646

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	U74920AP2002PTC038654	eZONE Security Solutions (India) Private Limited	Director	10/03/2014	30/08/2002	-	Active	NO
2	U85100AP2009PTC062828	TODAY'S HEALTHCARE INDIA PRIVATE LIMITED	Managing director	27/04/2009	20/02/2009	-	Active	NO
3	U74999AP2011PTC073679	SeeQ ELECTRONIC SYSTEMS PRIVATE LIMITED	Director	05/04/2011	05/04/2011	-	Active	NO

Name :

Mr. Jagan Mohan Rao Chennupati

Designation :

Director

Address :

59-8-5, II Lane, Gayatrinagar, Vijayawada - 520008, Andhra Pradesh, India

Date of Appointment :

15.03.2002

DIN No.:

00380699

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	U74920AP2002PTC038654	eZONE Security Solutions (India) Private Limited	Director	15/03/2002	15/03/2002	-	Active	NO
2	U85100AP2009PTC062828	TODAY'S HEALTHCARE INDIA PRIVATE LIMITED	Director	27/04/2009	27/04/2009	07/03/2014	Active	NO

Name :

Mr. Venkateswara Rao Chalapati

Designation :

Director

Address :

70-6-23, Pamulugari Building, Koneruvari Street, Patamata, Vijayawada - 520010, Andhra Pradesh, India

Date of Appointment :

30.08.2002

DIN No.:

00380766

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	U74920AP2002PTC038654	eZONE Security Solutions (India) Private Limited	Director	30/08/2002	30/08/2002	-	Active	NO
2	U01110AP1997PTC027795	HELP HOSPITALS PRIVATE LIMITED	Director	07/05/2004	07/05/2004	10/02/2010	Active	NO
3	U74999AP2011PTC073679	SeeQ ELECTRONIC SYSTEMS PRIVATE LIMITED	Additional director	23/07/2013	23/07/2013	-	Active	NO

Name :

Mr. Vijay Kumar Yalamanchili

Designation :

Director

Address :

58-18-26/2, Ist Cross Road, LIC Colony, Vijayawada - 520008, Andhra Pradesh, India

Date of Appointment :

26.09.2006

DIN No.:

00380818

Name :

Mr. Shashanka Kancharla

Designation :

Director

Address :

Flat No.1b, Sri Durga Palm Springs Apartments, Plot No.59, Road No.7, Banjara Hills, Hyderabad, 500033, Andhra Pradesh, India

Date of Appointment :

21.04.2005

DIN No.:

00425842

Name :

Mr. Chenna Kesava Srinivasa Rao Mandava

Designation :

Director

Address :

15, Australis Circuit, Port Melbourne, 3207, Australia

Date of Appointment :

30.08.2002

DIN No.:

01571455

Name :

Mr. Ravi Kumar Chennupati

Designation :

Director

Address :

Villa No 124, Indu Fortune Fields,13pha, Kphb Colony, Near Hi-Tech City Rly Stn, Hyderabad - 500075, Andhra Pradesh, India

Date of Appointment :

30.08.2002

DIN No.:

01573325

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	U74920AP2002PTC038654	eZONE Security Solutions (India) Private Limited	Director	23/06/2007	30/08/2002	-	Active	NO
2	U85100AP2009PTC062828	TODAY'S HEALTHCARE INDIA PRIVATE LIMITED	Director	27/04/2009	27/04/2009	18/04/2014	Active	NO
3	L72900GJ1980PLC003643	MIPCO SEAMLESS RINGS GUJARAT LIMITED	Director	23/09/2011	03/02/2011	-	Active	NO
4	U85110TG2012PTC084240	BlueWhale Healthcare Private Limited	Director	20/11/2012	20/11/2012	-	Active	NO

Name :

Mr. Chennupati Swaruparani

Designation :

Director

Address :

59-8-5, II Lane, Gayatri Nagar, Vijayawada - 520008, Andhra Pradesh, India

Date of Appointment :

15.03.2002

DIN No.:

01680480

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	U74920AP2002PTC038654	eZONE Security Solutions (India) Private Limited	Director	15/03/2002	15/03/2002	-	Active	NO
2	U85100AP2009PTC062828	TODAY'S HEALTHCARE INDIA PRIVATE LIMITED	Director	20/02/2009	20/02/2009	07/03/2014	Active	NO
3	U74999AP2011PTC073679	SeeQ ELECTRONIC SYSTEMS PRIVATE LIMITED	Director	05/04/2011	05/04/2011	-	Active	NO

MAJOR SHAREHOLDERS

As on 13.09.2013

Names of Shareholders	No. of Shares
Chennupati Swarupa Rani	42500
Chennupati Jaganmohan Rao	82880
Dr. Chennupati Sekhar	94050
Chennupati Ravi Kumar	384470
M.C.K Srinivasa Rao	165648
Ch.Venkateswara Rao	75760
Y. Vijay Kumar	4000
K. Shashank	41400
Erp People Solutions	171472
Prattipati Satyanarayana	20000
Polavarapu Sri Devi	20000
Puvvada Rama Krishna	40000
Jasthi Kiran	40000
C. Haritha Devi	50000
C. Tejasree	34000
Total	1266180

Equity Share Break up (Percentage of Total Equity)

As on 13.09.2013

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	13.54
Directors or relatives of Directors	76.67
Other top fifty shareholders	9.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Providing Electronic Security, Surveillance and Automation Solutions.

GENERAL INFORMATION

Customers :

· INOX

· India Post

· Reliance

· APGENCO

· Divis

· Novotel

· Hyundai

· Quality Inn

· KIMS

· Dr. Reddy’s

No. of Employees :

Information denied by management

Bankers :

· State Bank of India, Governorpet Branch, Ali Baig Street, Governorpet, Vijayawada - 520002, Andhra Pradesh, India

· State Bank of India, Medium Enterprises Sales Hub, Patamata, Vijayawada - 520010, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
LONG TERM BORROWINGS
Long Term maturities of obligations under finance lease	2.782	1.631
SHORT TERM BORROWINGS
Cash Credit Facilities	41.009	37.457
SLC	6.027	0.000
SME Credit Plus Loan	0.021	2.553
Total	49.839	41.641

Notes:

LONG TERM BORROWINGS

Obligations under finance lease secured against fixed assets obtained under finance lease arrangements

SHORT TERM BORROWINGS

Working Capital Loan facilities from State Bank of India Gurunanak Nagar Branch, Vijayawada are secured by hypothecation of current assets consisting of Stock and Book Debts.

Banking Relations :	--
Auditors :
Name :	Suresh and Babu Chartered Accountants
Address :	36-14-3/1, Santhi Nagar, Vijayawada – 520010, Andhra Pradesh, India
PAN No.:	AAIFS3996H

CAPITAL STRUCTURE

As on 13.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1266180	Equity Shares	Rs.10/- each	Rs.12.662 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	12.662	10.992	10.992
(b) Reserves & Surplus	19.676	5.551	-3.135
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	7.338	4.008	0.000
Total Shareholders’ Funds (1) + (2)	39.676	20.551	7.857
(3) Non-Current Liabilities
(a) long-term borrowings	31.622	29.258	17.449
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	31.622	29.258	17.449
(4) Current Liabilities
(a) Short term borrowings	47.057	40.010	31.035
(b) Trade payables	40.070	28.695	25.679
(c) Other current liabilities	16.178	10.041	7.005
(d) Short-term provisions	5.023	2.622	1.548
Total Current Liabilities (4)	108.328	81.368	65.267
TOTAL	179.626	131.177	90.573
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	9.395	6.941	8.658
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.094	0.222	0.184
(d) Long-term Loan and Advances	3.825	2.167	2.015
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	13.314	9.330	10.857
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	34.727	30.415	28.841
(c) Trade receivables	82.409	75.153	45.031
(d) Cash and cash equivalents	13.475	4.812	1.319
(e) Short-term loans and advances	35.701	11.467	4.525
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	166.312	121.847	79.716
TOTAL	179.626	131.177	90.573

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	231.242	196.071	102.206
		Other Income	0.942	0.608	0.990
		TOTAL (A)	232.184	196.679	103.196
Less	EXPENSES
		Purchases of Stock-in-Trade	122.401	117.598	58.202
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(4.312)	(1.573)	(3.123)
		Employees benefits expense	38.096	24.339	20.635
		Other expenses	56.039	41.101	8.941
		TOTAL (B)	212.224	181.465	99.055
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.960	15.214	4.141
Less	FINANCIAL EXPENSES (D)		6.203	5.704	3.904
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.757	9.510	0.237
Less	DEPRECIATION/ AMORTISATION (F)		1.701	1.842	2.067
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		12.056	7.668	(1.830)
Less	TAX (H)		1.271	(1.018)	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		10.785	8.686	(1.830)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(7.817)	(16.503)	(14.673)
	BALANCE CARRIED TO THE B/S		2.968	(7.817)	(16.503)
	Earnings / (Loss) Per Share (Rs.)		9.29	6.98	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	4.65	4.42	(1.77)
Net Profit Margin (PBT/Sales)	(%)	5.21	3.91	(1.79)
Return on Total Assets (PBT/Total Assets}	(%)	6.72	5.86	(2.02)
Return on Investment (ROI) (PBT/Networth)		0.30	0.37	(0.23)
Debt Equity Ratio (Total Debt /Networth)		1.98	3.37	6.17
Current Ratio (Current Asset/Current Liability)		1.54	1.50	1.22

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	10.992	10.992	12.662
Reserves & Surplus	(3.135)	5.551	19.676
Share Application money pending allotment	0.000	4.008	7.338
Net worth	7.857	20.551	39.676
long-term borrowings	17.449	29.258	31.622
Short term borrowings	31.035	40.010	47.057
Total borrowings	48.484	69.268	78.679
Debt/Equity ratio	6.171	3.371	1.983

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	102.206	196.071	231.242
		91.839	17.938

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	102.206	196.071	231.242
Profit	(1.830)	8.686	10.785
	(1.79%)	4.43%	4.66%

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	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	No
17]	Major suppliers	No
18]	Major customers	Yes
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	Yes

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
LONG TERM BORROWINGS
Other Loans and advances (from entities other than Banks)	28.840	27.627
Total	28.840	27.627

OPERATIONAL PERFORMANCE:

The total income in 2012-13 of the company as standalone entity was Rs.231.242 Millions as against Rs.196.679 Millions in 2011-2012. Before providing for tax, Exceptional and Extraordinary items, there was a profit of Rs.12.055 Millions in the year 2012-13 as compare to profit of Rs.7.668 Millions in 2011-12. Net profit after tax was Rs.10.785 Millions in 2012-13 as compared to profit of Rs.7.706 Millions in the year 2011-12. Basic earning pre share is Rs.9.29 compared to the previous year Rs.6.98.

FINANCIAL OBLIGATIONS:

During the current financial year the company has witnessed a significant growth in the business when compared with last financial year. This leads to further requirement of funds towards working capital of the company. Hence the company has approached the State Bank of India for enhancement of its Cash Credit Limits and it is under process for renewal. The Company has been regular in the payment of interest and / or repayment of loans to Banks / Financial Institutions during the year.

NEW DEVELOPMENTS:

Though the current situation in the State and financial turmoil is noteworthy: their general market condition and their confidence on the industry remain very upbeat. They are more committed than ever for this industry.

During the current financial year they have created separate vertical called service division to deal exclusively AMC contracts and service related issues. The company has also started two more branches in northern parts of India, i.e one in Delhi and the other one is in Kolkata to capture the market in northern parts of India

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10074839	07/02/2014 *	80,000,000.00	State Bank of India	Sme Dilsukhnagar Branch, Plot No.54, 55 And 56, Kothapet, Saroornagar, Hyderabad, Andhra Pradesh - 500060, India	C06522403

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.61.46
UK Pound	1	Rs.56.69
Euro	1	Rs.77.65

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.