MIRA INFORM REPORT

Report Date :

02.09.2014

IDENTIFICATION DETAILS

Name :	DEEPAK INDUSTRIES LIMITED NEW ALLENCERRY WORKS A UNIT OF DEEPAK INDUSTRIES LIMITED
Registered Office :	16 Hare Street, Kolkata – 700001, West Bengal
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	08.05.1954
Com. Reg. No.:	21-021638
Capital Investment / Paid-up Capital :	Rs. 52.981 Millions
CIN No.: [Company Identification No.]	L63022WB1954PLC021638
Tin No.:	06551200173
PAN No.: [Permanent Account No.]	AAACD8976J
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer, Exporter and Trader of Gear Manufacturing for automotive/tractor segment. Manufacture of Polyester/ Acrylic yarn, Helical Gear Box, Tea Estates Warm Reduction Gears
No. of Employees :	1100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 5200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. The rating reflects established position of the company as a supplier of industrial gearboxes and automotive gears to reputed OEMs supported by diversified product offerings, comfortable financial risk profile and healthy profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal business dealings at usual trade terms 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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Cash credit = A+
Rating Explanation	Adequate degree of safety and very low credit risk
Date	August 2013

Rating Agency Name	ICRA
Rating	Letter of Credit = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	August 2013

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 PARTED BY

Name :	Mr. Punkaj Gupta
Designation :	Accounts
Contact No.:	91-129-6451261
Date :	30.08.2014

LOCATIONS

Registered Office / Factory:	16 Hare Street, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-2248-2391/2/3
Fax No.:	Not Available
E-Mail :	secretary@dil-india.com
Factory 1 :	14/7, Mathura Road, Faridabad – 121003, Haryana, India
Tel. No.:	91-129-6451260 / 65
Fax No.:	91-129-2275525
E-Mail :	pj@allenberrygears.com
Factory 2:	Rudrapur, Uttranchal, India
Branch :	G. K. Girdhar 101 – C Ground Floor Kundan House Hari Nagar Ashram Mathura IND 110014 New Delhi, India

DIRECTORS

AS ON 31.03.2013

Name :

Mr. Pradip Kumar Daga

Designation :

Managing Director

Address :

5, Merlin Park, Gariahat, Kolkata – 700019, West Bengal, India

Date of Appointment :

16.12.2008

DIN No. :

00040692

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	L15491WB1879PLC000377	LONGVIEW TEA CO LTD	Director	08/05/1954	08/05/1954	-	Active	NO
2	L17120MH1897PLC000163	CENTURY TEXTILE AND INDUSTRIES LIMITED	Director	25/07/2014	04/06/1963	-	Active	NO
3	L25192WB1965PLC026390	CONTINENTAL PROFILES LTD	Director	08/03/1965	08/03/1965	09/11/2012	Active	NO
4	L15421WB1952PLC020577	GOBIND SUGAR MILLS LIMITED	Director	24/11/1975	24/11/1975	31/01/2012	Active	NO
5	L17111HP1982PLC016465	DEEPAK SPINNERS LIMITED	Managing director	16/04/2012	25/03/1982	-	Active	NO
6	U29130WB1993PLC060745	DEEPAK GEARS LIMITED	Director	17/11/1993	17/11/1993	-	Active	NO
7	L63022WB1954PLC021638	DEEPAK INDUSTRIES LIMITED	Managing director	16/12/2013	16/12/2008	-	Active	NO

Name :

Mr. Suresh Chand Mohta

Designation :

Director

Address :

32, Prasanna Kumar Tagore Street, 1^st Floor, Kolkata – 700006, West Bengal, India

Date of Appointment :

09.08.1995

DIN No. :

00066305

Name :

Mr. Sujit Chakravorti

Designation :

Director

Address :

17/7, James Long Sarani Formerly 17/7, Nafar CH-, Andra Das Road, Behala, S 24 PGS, Kolkata – 700034, West Bengal, India

Date of Appointment :

30.10.2007

DIN No. :

00066344

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	L63022WB1954PLC021638	DEEPAK INDUSTRIES LIMITED	Director	03/05/2008	22/11/2000	-	Active	NO
2	L27202GJ1962PLC040548	JHAGADIA COPPER LIMITED	Nominee director	22/11/2000	22/11/2000	26/09/2007	Active	NO
3	L74140WB1996PLC081521	SHALIMAR WIRES INDUSTRIES LIMITED	Nominee director	03/08/2001	03/08/2001	26/09/2007	Active	NO
4	L20211WB1957PLC023493	SARDA PLYWOOD INDUSTRIES LIMITED	Director	27/09/2002	27/09/2002	-	Active	NO
5	L20211AS1982PLC001969	KITPLY INDUSTRIES LIMITED	Director	29/06/2004	29/06/2004	22/09/2012	Active	NO
6	L36900WB1979PLC032046	WEBFIL LIMITED	Director	29/06/2006	29/06/2006	-	Active	NO
7	U29262WB1986PTC040209	PARCON (INDIA) PRIVATE LIMITED	Director	18/08/2007	09/07/2007	-	Active	NO
8	U40101ML1976GOI001658	NORTH EASTERN ELECTRIC POWER CORPN LIMITED	Director	20/02/2008	20/02/2008	19/02/2011	Active	NO
9	U85195WB1976SGC030823	INFUSIONS (INDIA) LIMITED	Director	01/08/2011	01/08/2011	-	Active	NO
10	U24119WB1963SGC025873	DURGAPUR CHEMICALS LIMITED	Director	11/07/2012	11/07/2012	-	Active	NO
11	L17232WB1890PLC000627	FORT GLOSTER INDUSTRIES LIMITED	Nominee director	08/01/2013	08/01/2013	19/03/2013	Active	NO
12	U40102WB1961SGC025250	THE DURGAPUR PROJECTS LIMITED	Director	01/02/2013	01/02/2013	-	Active	NO

Name :

Mr. Anand Prasad Agarwalla

Designation :

Director

Address :

271, Rabindra Sarani, Kolkata – 700006, West Bengal, India

Date of Appointment :

30.03.2002

DIN No. :

00312652

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	U30005WB1983PLC037023	KHAITAN PAPER AND INDUSTRIES LIMITED	Director	20/12/1983	20/12/1983	-	Active	NO
2	L17119WB1919PLC003385	PRESIDENCY EXPORTS AND INDUSTRIES LIMITED	Director	16/02/1990	16/02/1990	18/07/2012	Active	NO
3	U70109WB1952PTC020489	BKD INFRAPROJECTS PRIVATE LIMITED	Director	03/12/1999	03/12/1999	26/12/2011	Active	NO
4	L63022WB1954PLC021638	DEEPAK INDUSTRIES LIMITED	Director	30/03/2002	30/03/2002	-	Active	NO
5	L45201WB1990PLC050101	SIMPLEX PROJECTS LIMITED	Director	29/09/2011	16/07/2011	06/11/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. Vithal Das Mall
Designation :	Secretary
Address :	16, Khelat Ghose lane, 1^st Floor, Kolkata – 700006, West Bengal, India
Date of Appointment :	02.04.2011
Name :	Mr. Maneesh Khanna
Designation :	CFO
Address :	Purbachal Cluster – 1, Flat Q – 1, Salt lake, PS: Bidhannagar (South), P O Purbachal Kolkata – 700097, Wet Bengal, India
Date of Appointment :	30.05.2014

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2013

Names of Shareholders	No. of Shares
Asha Devi Daga	870806
Nandini Daga	774625
Ahantanu Daga	560000
Yashwant Kumar Daga	566088
Pradeep Kumar Daga	484964
Coplama Products Private Limited	554531
Jalpaiguri Holdings Private Limited	618312
ICICI Bank Limited	284375

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Trader of Gear Manufacturing for automotive/tractor segment. Manufacture of Polyester/ Acrylic yarn, Helical Gear Box, Tea Estates Warm Reduction Gears
Imports :
Products :	Raw material
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

No. of Employees :

1100 (Approximately)

Bankers :

State Bank of India, Commercial Branch, Kolkata, 24 Park Street, Kolkata – 700016, West Bengal, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Term loans from Banks	NA	26.125
SHORT TERM BORROWINGS
Rupee term loans from banks	NA	567.304
Total	NA	593.429

Banking Relations :	--
Auditors :
Name :	Singh and company Chartered Accountants
Address :	1 – B, Old Post Office Street, Kolkata – 700001, West Bengal, India
Pan No.:	AAVFS5038H

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5300000	Equity Shares	Rs.10/- each	Rs.53.000 Millions
20000		Rs.100/- each	Rs.2.000 Millions
	Total		Rs.55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5298095	Equity Shares	Rs.10/- each	Rs. 52.981 Millions

As on 31.03.2014

Authorised Capital : NA

Issued, Subscribed & Paid-up Capital : Rs. 52.981 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	52.981	52.981	52.981
(b) Reserves & Surplus	2019.042	1788.784	1415.037
(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)	2072.023	1841.765	1468.018
(3) Non-Current Liabilities
(a) long-term borrowings	357.467	44.611	189.077
(b) Deferred tax liabilities (Net)	166.980	48.530	39.730
(c) Other long term liabilities	19.923	19.632	11.606
(d) long-term provisions	9.509	9.286	8.621
Total Non-current Liabilities (3)	553.879	122.059	249.034
(4) Current Liabilities
(a) Short term borrowings	628.795	567.304	561.842
(b) Trade payables	535.408	333.676	519.492
(c) Other current liabilities	338.000	341.625	214.394
(d) Short-term provisions	6.941	6.752	5.245
Total Current Liabilities (4)	1509.144	1249.357	1300.973
TOTAL	4135.046	3213.181	3018.025
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1452.947	961.945	853.908
(ii) Intangible Assets	0.000	3.413	0.090
(iii) Capital work-in-progress	0.000	52.399	49.793
(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	302.267	109.692	123.326
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1755.214	1127.449	1027.117
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	724.269	681.076	751.677
(c) Trade receivables	588.645	682.091	754.307
(d) Cash and cash equivalents	945.177	624.029	388.887
(e) Short-term loans and advances	74.990	64.430	71.975
(f) Other current assets	46.751	34.106	24.062
Total Current Assets	2379.832	2085.732	1990.908
TOTAL	4135.046	3213.181	3018.025

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	3306.455	3526.686
	Other Income	34.850	32.292
	TOTAL	3341.305	3558.978	NA
Less	EXPENSES
	Cost of Materials Consumed	1502.159	1735.588
	Purchases of Stock-in-Trade	0.116	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	20.285	(128.661)
	Employees benefits expense	374.581	344.952
	Other expenses	944.516	968.098
	TOTAL	2841.657	2919.977	NA
Less	PROFIT/ (LOSS) BEFORE OTHER INCOME, INTEREST, TAX, DEPRECIATION AND AMORTISATION	499.648	639.001	NA
Add	OTHER INCOME	103.061	82.871
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	602.709	721.872
Less	FINANCIAL EXPENSES (D)	95.859	75.123	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	506.850	646.749
Less/ Add	DEPRECIATION/ AMORTISATION (F)	160.686	135.955
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	346.164	510.794	448.426
Less	TAX (I)	115.533	136.674	60.819
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	230.631	374.120	387.607
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	1774.179	1400.059	1012.452
	Balance Carried to the B/S (J+K+L-M)	2004.810	1774.179	1400.059
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	NA	21.404	29.803
	TOTAL EARNINGS	NA	21.404	29.803
	IMPORTS
	Raw Materials		6.948	14.530
	Store and Stores parts		7.096	7.500
	Capital Goods		90.006	148.282
	TOTAL IMPORTS	NA	104.050	170.312
	Earnings / (Loss) Per Share (Rs.)	43.53	70.61	73.16

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	6.90	10.51	NIL
Net Profit Margin (PBT/Sales)	(%)	10.47	14.48	NIL
Return on Total Assets (PBT/Total Assets}	(%)	8.37	16.16	15.11
Return on Investment (ROI) (PBT/Networth)		0.17	0.28	0.31
Debt Equity Ratio (Total Debt /Networth)		0.48	0.33	0.51
Current Ratio (Current Asset/Current Liability)		1.58	1.67	1.53

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	52.981	52.981	52.981
Reserves & Surplus	1415.037	1788.784	2019.042
Net worth	1468.018	1841.765	2072.023
long-term borrowings	189.077	44.611	357.467
Short term borrowings	561.842	567.304	628.795
Total borrowings	750.919	611.915	986.262
Debt/Equity ratio	0.512	0.332	0.476

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	3526.686	3306.455
		(6.245)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Sales	3526.686	3306.455
Profit	374.120	230.631
	10.61%	6.98%

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two 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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
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

Litigation Details:

CALCUTTA HIGH COURT

CASE STATUS INFORMATION SYSTEM

Case Status : Pending

Status of COMPANY PETITIONS (CP) 627 OF 2014

RE: POWER MAX (INDIA) PVT LTD –AND- Vs. RE : DEEPAK INDUSTRIES LTD

Pet’s Adv. : A P AGARWALLA

Res’s Adv. :

Court No. : 23 Next Date of Hearing : Monday, September 15, 2014

Last Listed On : Monday, August 04, 2014

Category : NO CATEGORY MENTIONED

CONNECTED APPKICATION (S)	CONNECTED MATTER (S)
No Connected Application.	No Connected Cases.

Case Updated on : Thursday, August 07, 2014

REVIEW OF OPERATION

Considering the general economic and industrial climate during the year being low and slow down in Auto Components and Industrial Gears leading to increased competition affecting realizations, the performance of the Company has been satisfactory.

At the Kolkata unit, the Company has planned to manufacture Planetary Gear Boxes which is the current trend in Industrial Gears industry. The Company has ordered certain specific machines required for the project and also arranged a foreign technical tie up for design and other technical parameters.

Additions to fixed Assets in all the units have been made in the year and also planned in the current year and a corporate loan of Rs.116.500 Millions has been arranged from the Company's banker. Construction of new factory shed at Palwal near Faridabad has made substantial progress and it is proposed to install machines for manufacture of automotive gears at the said site.

The Company has planned to diversify into the Solar Power business with the approval of shareholders and has planned to start with 5MW capacity. The directors are of the considered opinion that the Solar power business under REC mechanism is attractive and rewarding.

The directors are of the opinion that barring unforeseen circumstances, despite sluggish demand, the turnover and profitability are likely be sustained in the current year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10264265	08/01/2014 *	847,500,000.00	STATE BANK OF INDIA (LEAD BANK)	Commercial Branch, Kolkata, 24, Park Street, Kolkata, West Bengal - 700016, INDIA	B95377727
2	10119959	21/10/2013 *	1,270,500,000.00	STATE BANK OF INDIA	Commercial Branch, Kolkata, 24 Park Street, Kolkata, West Bengal - 700016, INDIA	B89237671
3	10073725	15/10/2007	20,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, West Bengal - 700016, INDIA	A25966185
4	90250341	29/06/1999	271,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 24 PARK STREET, CALCUTTA, West  Bengal - 700016, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Borrowing from government semi-government bodies	NA	18.486
Total	NA	18.486

FIXED ASSETS

· Land

· Building

· Factory Building

· Plant and equipment

· Furniture and Fixture

· Vehicle

· Motor Vehicle Office equipment

· Computer software

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. 60.47
UK Pound	1	Rs. 100.42
Euro	1	Rs. 79.39

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	TRU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		62

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.