MIRA INFORM REPORT

Report Date :

21.10.2014

IDENTIFICATION DETAILS

Name :	LAVA INTERNATIONAL LIMITED
Registered Office :	C-7/227, Second Floor, Sector-7, Rohini, Delhi - 110085
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.03.2009
Com. Reg. No.:	55-188920
Capital Investment / Paid-up Capital :	Rs. 20.252 Millions
CIN No.: [Company Identification No.]	U32201DL2009PLC188920
Legal Form :	A closely held public limited liability company
Line of Business :	The Company is engaged in trading of mobile phones, smart phones, storage devices and other wireless telecommunication devices.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 3400000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a fine track. Financial position of the company seems to be sound. Trade relations are fair. Business is active. Payment terms are regular and as per commitments. The company can be considered normal for business dealings at usual trade term and conditions.

NOTES :

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

ECGC Country Risk Classification List – 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term bank facilities A-
Rating Explanation	Have adequate degree of safety and carry low credit risk
Date	August 18, 2014
Rating Agency Name	CARE
Rating	Short term bank facilities A2+
Rating Explanation	Have strong degree of safety and carry low credit risk
Date	August 18, 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

Management non co-operative (91-120-4637100)

LOCATIONS

Registered Office :	C-7/227, Second Floor, Sector-7, Rohini, Delhi – 110085, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	Rajensra.bedi@lavainternational.in
Website :	www.lavamobiles.com
Corporate Office :	A-56, Sector-64, Noida-201301 (UP)
Tel. No.:	91-120-4637100

DIRECTORS

Name :

Hari Om Rai

Designation :

Managing director

Address :

1466, Sector- B Pocket-1, Vasant Kunj, New Delhi-110070, Delhi, India

Date of Appointment :

27.03.2009

DIN No.:

1191443

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	U64202DL2003PTC120214	PACE TEL COMMUNICATIONS PRIVATE LIMITED	Director	07/05/2003	07/05/2003	-	Active	NO
2	U63090DL1996PTC077467	AMEX AGENCIES PRIVATE LIMITED	Director	30/06/2003	30/06/2003	28/04/2011	Active	NO
3	U72900DL2006PTC155378	BLUE HORIZON IT SOLUTIONS PRIVATE LIMITED	Director	10/11/2006	10/11/2006	27/05/2010	Active	NO
4	U74899DL2005PTC141070	INFINITY eSERVICES PRIVATE LIMITED.	Additional director	08/01/2008	08/01/2008	19/07/2008	Active	NO
5	U32201DL2009PLC188920	LAVA INTERNATIONAL LIMITED	Managing director	01/04/2012	27/03/2009	-	Active	NO
6	U64100DL2013PLC260008	Lava Enterprises Limited	Director	07/11/2013	07/11/2013	-	Active	NO

Name :

Shailendra Nath Rai

Designation :

Whole time Director

Address :

D-402, Nagarjuna Apartments, Mayor Vihar, Phase I, New Delhi-110096, India

Date of Appointment :

27.03.2009

DIN No.:

0908417

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	U60231DL2004PTC126314	TAM INTERNATIONAL PRIVATE LIMITED	Director	12/05/2004	12/05/2004	-	Active	NO
2	U72900DL2006PTC155378	BLUE HORIZON IT SOLUTIONS PRIVATE LIMITED	Director	10/11/2006	10/11/2006	27/05/2010	Active	NO
3	U74899DL2005PTC141070	INFINITY eSERVICES PRIVATE LIMITED.	Director	26/06/2007	20/02/2007	15/10/2013	Active	NO
4	U72300DL2007PTC167416	MOVICO TECHNOLOGIES PRIVATE LIMITED	Director	27/08/2007	27/08/2007	-	Active	NO
5	U32201DL2009PLC188920	LAVA INTERNATIONAL LIMITED	Whole-time director	01/04/2012	27/03/2009	-	Active	NO
6	U72300DL2007PTC167838	Pariksha Labs Private Limited	Director	10/08/2009	10/08/2009	-	Active	NO
7	U74899DL2005PTC140436	PACIFIC MINING PRODUCTS PRIVATE LIMITED	Director	28/09/2010	01/05/2010	-	Active	NO
8	U74900PN2011PTC140948	SSR INTERNATIONAL ENERGY PRIVATE LIMITED	Additional director	24/07/2012	24/07/2012	-	Active	NO
9	U64100DL2013PLC260008	Lava Enterprises Limited	Director	07/11/2013	07/11/2013	-	Active	NO

Name :

Sunil Bhalla

Designation :

Whole time Director

Address :

C-4d/21a, Janak Puri, New Delhi-110058, India

Date of Appointment :

27.03.2009

DIN No.:

0980040

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	U74899DL1994PTC061494	RADIANT POWER SYSTEMS PRIVATE LIMITED	Director	14/09/1994	14/09/1994	20/03/2013	Active	NO
2	U74899DL1988PTC032019	LUMINOUS POWER TECHNOLOGIES PRIVATE LIMITED	Director	14/09/2007	09/07/2007	03/06/2011	Active	NO
3	U29307WB2007PTC112358	LUMINOUS RENEWABLE ENERGY SOLUTIONS PRIVATE LIMITED	Additional director	17/12/2008	17/12/2008	24/08/2011	Active	NO
4	U32201DL2009PLC188920	LAVA INTERNATIONAL LIMITED	Whole-time director	01/06/2014	27/03/2009	-	Active	NO
5	U74899DL1993PTC054419	TRITRONICS INDIA PRIVATE LIMITED	Additional director	01/10/2010	23/06/2009	30/06/2011	Active	NO
6	U64100DL2013PLC260008	Lava Enterprises Limited	Director	07/11/2013	07/11/2013	-	Active	NO
7	U45400DL2013PTC250549	RSB INFRAVENTURES PRIVATE LIMITED	Director	07/05/2014	07/05/2014	-	Active	NO

Name :

Vishal Sehgal

Designation :

Whole Time Director

Address :

d-602, som vihar appartments, rama Krishna puram, new delhi-110022, india

Date of Appointment :

01.04.2010

DIN No.:

03127049

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	U32201DL2009PLC188920	LAVA INTERNATIONAL LIMITED	Whole-time director	01/05/2012	01/04/2010	-	Active	NO
2	U64100DL2013PLC260008	Lava Enterprises Limited	Director	07/11/2013	07/11/2013	-	Active	NO

Name :

Krishna kumar kushwaha

Designation :

Whole time director

Address :

f-5/603, a-3/7, NRI complex, sector-54, nehrul, navi Mumbai – 400706, Maharashtra, india

Date of Appointment :

01.09.2011

DIN No.:

03617287

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	U32201DL2009PLC188920	LAVA INTERNATIONAL LIMITED	Whole-time director	01/09/2014	01/09/2011	-	Active	NO

KEY EXECUTIVES

Name :	Sachin Agarwal
Designation :	Company Secretary
Address :	M-1/303, Amarpali Royal, Indrapuram, Gaziabad, Uttar Pradesh -201010, India
PAN No.:	AIFPA2236F
Date of Appointment :	28.06.2010
Name :	Rajendra Singh Bedi
Designation :	Company Secretary
Address :	2035, Rani Bagh, Delhi-110034, India
PAN No.:	AGPPB1395L
Date of Appointment :	03.07.2013

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Hari om rai	764993	37.77
Shailendra nath rai	200498	9.90
Sunil bhaila	485000	23.95
Suneeti bhalla	16245	0.80
Manju rai	15000	0.74
Dr. jagdish bhagat	1911	0.09
Dr. taru bhagat	1911	0.09
A k sukheja	3821	0.19
Jamuna rai	4500	0.22
Ravinder singh	10698	0.53
Renu sukheja	1911	0.09
Sadanand rai	17500	0.86
Shaibani shehgal	121012	5.98
Vishal shehgal	380233	18.77
Total	2025233	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	99.00
Other top fifty shareholders	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The Company is engaged in trading of mobile phones, smart phones, storage devices and other wireless telecommunication devices.
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

• Bank of Baroda, SME Noida Branch, Sector-18, Noida-201301, Uttar Pradesh, India
• Oriental Bank of Commerce, M 1,2,3, Connaught Place, New Delhi- 110001,Delhi, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans	0.000	1.502
SHORT TERM BORROWINGS
Working capital loans from Banks	146.659	90.824
Total	146.659	92.326

Banking Relations :	--
Auditors :
Name :	S R B C and Company
Address :	Golf View Corporate Tower B, Sector-42 Sector Road, India
PAN No.:	ABSFS4151K
Related Party:	· Amex Agencies Private Limited CIN No.: U63090DL1996PTC077467 · TAM international private limited CIN No.: U60231DL2004PTC126314 · Radiant Power Systems Private Limited CIN No.: U74899DL1994PTC061494

CAPITAL STRUCTURE

As on 30.09.2013

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
2025233	Equity shares	Rs. 10/- each	Rs.20.252 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	20.252	20.252
(b) Reserves & Surplus	1171.976	614.925
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1192.228	635.177
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	1.502
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	6.200	3.265
Total Non-current Liabilities (3)	6.200	4.767
(4) Current Liabilities
(a) Short term borrowings	146.659	90.824
(b) Trade payables	1543.410	456.193
(c) Other current liabilities	245.744	115.354
(d) Short-term provisions	383.529	68.242
Total Current Liabilities (4)	2319.342	730.613
TOTAL	3517.770	1370.557
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	55.149	62.491
(ii) Intangible Assets	7.364	5.621
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	61.020	60.971
(c) Deferred tax assets (net)	31.650	10.435
(d) Long-term Loan and Advances	11.097	43.826
(e) Other Non-current assets	1.465	12.946
Total Non-Current Assets	167.745	196.290
(2) Current assets
(a) Current investments	19.630	10.956
(b) Inventories	560.686	412.800
(c) Trade receivables	198.825	18.616
(d) Cash and cash equivalents	1349.188	486.963
(e) Short-term loans and advances	1159.035	212.500
(f) Other current assets	62.661	32.432
Total Current Assets	3350.025	1174.267
TOTAL	3517.770	1370.557

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		20.252
2] Share Application Money		0.000
3] Reserves & Surplus		564.011
4] (Accumulated Losses)		0.000
NETWORTH		584.263
LOAN FUNDS
1] Secured Loans		106.948
2] Unsecured Loans		0.000
TOTAL BORROWING		106.948
DEFERRED TAX LIABILITIES		0.000
Other Liabilities		4.738
TOTAL		695.949
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		74.610
Capital work-in-progress		17.500
INVESTMENT		13.944
DEFERRED TAX ASSETS		1.835
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	637.183
	Sundry Debtors	6.760
	Cash & Bank Balances	1010.119
	Other Current Assets	7.428
	Loans & Advances	239.376
Total Current Assets		1900.866
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000
	Other Current Liabilities	1204.622
	Provisions	108.184
Total Current Liabilities		1312.806
Net Current Assets		588.060
MISCELLANEOUS EXPENSES		0.000
TOTAL		695.949

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	9655.911	5521.531	7051.553
		Other Income	66.002	50.867	23.490
		TOTAL (A)	9721.913	5572.398	7075.043
Less	EXPENSES
		Cost of Materials Consumed	0.000	0.000	0.000
		Purchases of Stock-in-Trade	7259.186	3609.659	5379.247
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(190.576)	243.180	(423.049)
		Employees benefits expense	397.686	347.976	236.585
		Other expenses	1329.352	1250.930	1379.402
		TOTAL (B)	8795.648	5451.745	6572.185
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		926.265	120.653	502.858
Less	FINANCIAL EXPENSES (D)		70.863	37.029	39.535
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		855.402	83.624	463.323
Less	DEPRECIATION/ AMORTISATION (F)		23.116	21.706	7.960
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		832.286	61.918	455.363
Less	TAX (H)		278.871	22.485	155.089
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		553.415	39.433	300.274
	Earnings / (Loss) Per Share (Rs.)		273.25	--	--

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.69	0.71	4.24
Net Profit Margin (PBT/Sales)	(%)	8.62	1.12	6.46
Return on Total Assets (PBT/Total Assets}	(%)	24.30	4.77	23.95
Return on Investment (ROI) (PBT/Networth)		0.70	0.10	0.77
Debt Equity Ratio (Total Liability/Networth)		0.12	0.15	2.24
Current Ratio (Current Asset/Current Liability)		1.44	1.61	1.44

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	20.252	20.252	20.252
Reserves & Surplus	564.011	614.925	1171.976
Net worth	584.263	635.177	1192.228
long-term borrowings	106.948	1.502	0.000
Short term borrowings	0.000	90.824	146.659
Total borrowings	106.948	92.326	146.659
Debt/Equity ratio	0.183	0.145	0.123

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 / Total Income	7051.553	5521.531	9655.911
		(21.698)	74.877

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 / Total Income	7051.553	5521.531	9655.911
Profit	300.274	39.433	553.415
	4.26%	0.71%	5.73%

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	---
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	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	Yes

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10521886	25/09/2014	500,000,000.00	Citi Bank N.A.	Jeevan Bharti Building, 4th Floor,, 124 Connaught  Circus, Connaught Place,, New Delhi, Delhi - 1100  01, INDIA	C22296917
2	10478383	27/01/2014	3,800,000.00	Bank of Baroda	SME Noida Branch, Sector-18, Noida, Uttar Pradesh  - 201301, INDIA	B96723663
3	10229466	12/12/2013 *	5,164,500,000.00	Bank of Baroda	SME Noida Branch, P-5, Ocean Plaza, Upper, Ground  Floor, Sector - 18, Noida, Uttar Pradesh - 201301  , INDIA	B91720664

FIXED ASSETS

· Furniture and fixture

· Land and building

· Computers

· Software Equipment

· Vehicle

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 records 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.61.62
UK Pound	1	Rs.99.12
Euro	1	Rs.78.89

INFORMATION DETAILS

Information Gathered by :	GAY
Analysis Done by :	RAS
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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.