MIRA INFORM REPORT

Report Date :

19.09.2014

IDENTIFICATION DETAILS

Name :	ALKALI METALS LIMITED
Registered Office :	Plot B – 5, Block III, Industrial Dev. Area, Uppal, Hyderabad – 500039, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.04.1968
Com. Reg. No.:	001196
Capital Investment / Paid-up Capital :	Rs.101.825 Millions
CIN No.: [Company Identification No.]	L27109TG1968PLC001196
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is Predominantly Engaged in the Manufacturer and seller of Chemicals.
No. of Employees :	Information Declined By the Management.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 2000000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of loss incurred by a company during the year 2014. However, trade relations are reported as 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Fund Based Limits B +
Rating Explanation	High Risk Of Default
Date	Dec 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 DENIED BY

MANAGEMENT NON CO – OPERATIVE (91- 40- 27201179)

LOCATIONS

Registered Office :	Plot B – 5, Block III, Industrial Dev. Area, Uppal, Hyderabad – 500039, Andhra Pradesh, India
Tel. No. :	91-40- 27201179/ 27202298/ 27562932
Fax No. :	91-40-27201454/ 27562634
E-Mail :	secretarial@alkalimetals.com
Factory 1 :	Survey No. 299 – 302 Dommara Pochampally Village, Qutubullapur Mandal, R.R. District, Hyderabad -500040, Andhra Pradesh, India
Factory 2 :	Plot No. 36, 37 And 38, Thanam Village, JN Pharma City, Parawada Mandal, Visakhapatnam – 531021, Andhra Pradesh, India

KEY EXECUTIVES

Name :	Mr. Deepak Tibrewal
Designation :	Company Secretary

DIRECTORS

As on 31.03.2014

Name :

Dr. Yadav J.S

Designation :

Director

Din No :

02014136

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	L27109TG1968PLC001196	ALKALI METALS LTD.	Director	27/05/2010	31/03/2008	-	Active	NO
2	U72200TG2004PLC044250	OGENE SYSTEMS INDIA LIMITED	Director	29/09/2009	04/07/2009	-	Active	NO

Name :

Mr. Prasad Ch.S

Designation :

Director

Name :

Mr. Patnaik P.C

Designation :

Director

Name :

Mr. Jayaraman G.

Designation :

Director

Name :

Mr. Venkata Rao Y.S.R.

Designation :

Director

Din No :

00345524

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	U24110TG1985PTC005475	YERRAMILLI CHEMICALS PVT LTD	Director	27/04/1985	27/04/1985	-	Strike off	NO
2	U24110TG1980PLC002800	CDC INDUSTRIAL INFRAS LIMITED	Additional director	15/03/2013	01/03/1988	-	Active	NO
3	L27109TG1968PLC001196	ALKALI METALS LTD.	Managing director	01/05/2010	01/07/1991	-	Active	NO
4	U51211TG1996PLC025328	ASIAN HERBEX LIMITED	Managing director	29/09/2001	29/09/2001	-	Active	NO
5	U74200TG2005PTC045853	RAO-SAN INFOTEK PRIVATE LIMITED	Director	11/04/2005	11/04/2005	-	Active	NO
6	U15143TG1989PLC036802	BALAJI AGRO INDUSTRIES LIMITED	Director	08/12/2006	08/12/2006	-	Active	NO
7	U74999TG2010PTC071299	GRTC Airborne Gephysical Surveys Private Limited	Director	22/11/2010	22/11/2010	28/03/2013	Active	NO
8	U72200TG2014PTC094515	Eureka Analytics Private Limited	Director	16/06/2014	16/06/2014	-	Active	NO

Name :

Ms. Lalithya Poorna Y.

Designation :

Director

Name :

Ms. Prashanth Y.V.

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Deepak Tibrewal
Designation :	Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2014

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6128815	60.19
Bodies Corporate	633	0.01
Any Others (Specify)	971394	9.54
Directors/Promoters & their Relatives & Friends	971394	9.54
Sub Total	7100842	69.74
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7100842	69.74
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	389765	3.83
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	2350595	23.08
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	149056	1.46
Any Others (Specify)	192248	1.89
Clearing Members	3906	0.04
Hindu Undivided Families	94698	0.93
Non Resident Indians	93644	0.92
Sub Total	3081664	30.26
Total Public shareholding (B)	3081664	30.26
Total (A)+(B)	10182506	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)	10182506	0.00

BUSINESS DETAILS

Line of Business :	Subject is Predominantly Engaged in the Manufacture and Sale of Chemicals.
Products :	· Sodium Amide · Sodium Azide · Sodium Hydride · Sodium Methoxide · Sodium Tertiary Butoxide

GENERAL INFORMATION

No. of Employees :

Information Declined By The Management

Bankers :

· State Bank Of India,

Commercial Branch, Bank Street, Koti, Hyderabad - 500095

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Loans from bank :
- Term loans	58.638	22.000
SHORT TERM BORROWINGS
Loans repayable on demand
Working capital loan	179.722	188.758
Total	238.36	210.758

Particulars	2013-2014	2012-2013
1 Period of maturity with reference to Balance Sheet date	Renewable every year	Renewable every year
2 Number of Instalments due	Nil	Nil
3 Amount Outstanding	179,722,693	188,758,546
4 Rate of Interest	Base Rate plus 5%	Base Rate plus 5.5%
5 Overdue amount and period:	Nil	Nil
6 Security: Working Capital Loan from bank and interest accrued on the loan are secured by hypothecation of present and future raw materials, work in progress, finished goods, stores and spares and book debts of the Company and a first charge on the immovable properties and personal guarantee of the Managing Director of the Company.

a. Secured loans
The Company has borrowed two term loans from SBI. The terms and conditions are given below:
a) Term Loan 1 from SBI:
Particulars	Term Loan 1
1 Period of maturity with reference to Balance Sheet date	2015-16
2 Number of Quarterly Instalments outstanding	8
3 Amount of each instalment	Four instalments of ` 2,000,000 each and Four instalments of
4 Rate of Interest	Base rate plus 7.10%
5 Overdue amount and period:	Nil
6 Security
Term Loan from SBI is secured by first charge on Company's fixed assets financed out of the
b) Term Loan 2 from SBI:	Term Loan 2
During the year, the Company has drawn loan of ` 4.8 crores as against the sanctioned limit of Rs. 67.500 Millions from SBI for the purpose of expansion of production facilities in Unit III, Visakhapatnam. The terms and conditions of the loan are as given below:
1 Period of maturity with reference to Balance Sheet date	2021-22*
* Repayment commences from October, 2014
2 Total number of Quarterly Instalments	25
3 Amount of each instalment ` `	2,700,000
4 Rate of Interest	Base rate plus
5 Overdue amount and period:	Nil
6 Security
The loan is secured by hypothecation of entire fixed assets(including civil structures) purchased out of the term loan, collateral security of Land & Buildings of the Company and by personal guarantee of the Managing Director of the Company.

Banking Relations :	--
Auditors :
Name :	C K S. Associates Chartered Accountants
Address :	Nagarjuna #87, Road #3, Gaganmahal Colony, Hyderabad – 500029, Andhra Pradesh, India
Tel. No. :	91-40-27621107/08/27661001
Fax No. :	91-40-27604763
E-Mail :	admin@cksassociates.org
Promoter Group Company :	· CDC Industrial Infra Limited · CDC India (p) Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10182506	Equity Shares	Rs.10/- each	Rs. 101.825 Millions

Notes:

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. Names of shareholders holding more than 5% of the Share capital and their shareholding.

Name of shareholder	No. of Shares
Y.S.R. Venkata Rao	6128815
Y.V. Lalitha Devi	775900

3. Aggregate Number of Equity shares allotted as fully paid up by way of Bonus shares during the preceding 5 years.

Financial Year	No. of Shares
2008-09	693866
2007-08	905040

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	101.825	101.825	101.825
(b) Reserves & Surplus	405.458	425.079	389.362
(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)	507.283	526.904	491.187
(3) Non-Current Liabilities
(a) long-term borrowings	165.584	130.979	163.189
(b) Deferred tax liabilities (Net)	0.000	12.101	56.078
(c) Other long term liabilities	9.894	0.000	0.000
(d) long-term provisions	0.966	1.129	0.861
Total Non-current Liabilities (3)	176.444	144.209	220.128
(4) Current Liabilities
(a) Short term borrowings	179.722	188.759	164.338
(b) Trade payables	127.848	122.910	103.779
(c) Other current liabilities	22.028	14.902	39.810
(d) Short-term provisions	0.156	12.713	11.971
Total Current Liabilities (4)	329.754	339.284	319.898
TOTAL	1013.481	1010.397	1031.213
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	603.856	570.036	604.725
(ii) Intangible Assets	6.702	0.000	0.000
(iii) Capital work-in-progress	0.000	29.068	7.822
(iv) Intangible assets under development	0.000	5.800	4.698
(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	25.198	26.195	35.657
(e) Other Non-current assets	19.152	0.052	6.673
Total Non-Current Assets	654.908	631.151	659.575
(2) Current assets
(a) Current investments
(b) Inventories	132.948	145.063	125.115
(c) Trade receivables	135.153	137.232	113.530
(d) Cash and cash equivalents	15.887	12.177	10.113
(e) Short-term loans and advances	68.631	72.501	55.085
(f) Other current assets	5.954	12.273	67.795
Total Current Assets	358.573	379.246	371.638
TOTAL	1013.481	1010.397	1031.213

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	660.457	619.209	592.542
		Other Income	4.380	7.935	17.144
		TOTAL	664.837	627.144	609.686
Less	EXPENSES
		Cost of Materials Consumed	344.543	305.732	277.389
		Purchases of Stock-in-Trade	0.000	0.000	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	3.587	(18.858)	115.654
		Employees benefits expense	56.803	68.021	72.430
		Other expenses	224.681	202.374	205.372
		Exceptional Items	(0.129)	0.000	0.000
		TOTAL (B)	629.485	557.269	670.845
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		35.352	69.875	(61.159)
Less	FINANCIAL EXPENSES		31.861	31.155	38.550
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		3.491	38.720	(99.709)
Less/ Add	DEPRECIATION/ AMORTISATION		35.180	34.809	31.265
	PROFIT/ (LOSS) BEFORE TAX		(31.689)	3.911	(130.974)
Less	TAX		(12.068)	(43.640)	32.482
	PROFIT/ (LOSS) AFTER TAX		(19.621)	47.551	(163.456)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		88.249	52.532	425.079
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.000
		Dividend on equity shares	10.183	10.183	10.183
		Tax on Dividend	1.731	1.652
	BALANCE CARRIED TO THE B/S		56.715	88.249	52.532
	IMPORTS
		Raw Materials	184.320	187.828	158.004
		TOTAL	184.320	187.828	158.004
	EARNING IN FOREIGN CURRANCY
		F.O.B. Value of exports	278.351	298.799	175.446
	Earnings / (Loss) Per Share (Rs.)		(1.93)	4.67	(16.05)

QUATERY RESULTS

Particulars	June 2014
	Unaudited
Net Sales	165.600
Total Expenditure	149.500
PBIDT (Excel OL)	16.100
Other Income	0.500
Operating Profit	16.600
Interest	10.600
Exceptional Items	0.000
Profit Before Depreciation and Tax	5.900
Depreciation	9.700
Profit Before Tax	(3.800)
Tax	0.000
Provisions And Contingencies	0.000
Profit After Tax	0.000
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	(3.800)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	(2.95)	7.58	(26.81)
Net Profit Margin (PBT/Sales)	(%)	(4.80)	0.63	(22.10)
Return on Total Assets (PBT/Total Assets}	(%)	(3.13)	0.40	(12.86)
Return on Investment (ROI) (PBT/Networth)		(0.06)	0.01	(0.27)
Debt Equity Ratio (Total Debt/Networth)		0.68	0.61	0.67
Current Ratio (Current Asset/Current Liability)		1.09	1.12	1.16

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	101.825	101.825	101.825
Reserves & Surplus	389.362	425.079	405.458
Net worth	491.187	526.904	507.283
long-term borrowings	163.189	130.979	165.584
Short term borrowings	164.338	188.759	179.722
Total borrowings	327.527	319.738	345.306
Debt/Equity ratio	0.667	0.607	0.681

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	592.542	619.209	660.457
		4.500	6.661

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	592.542	619.209	660.457
Profit	(163.456)	47.551	(19.621)
	(27.59%)	7.68%	(2.97%)

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	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Unsecured Loan
- Inter Corporate Deposits	40.066	49.000
- Loan From Directors	39.900	33.000
Deferred Payments Liabilities
- Sales tax deferment	26.979	26.979
Total	106.945	108.979

NOTE:

b. Unsecured Loans
a. Inter Corporate Deposits and Loans from Directors:
Particulars
1 Period of maturity with reference to Balance Sheet date	within 5 years from 01.04.2013
2 Number of Instalments outstanding	Nil
3 Amount due for the Instalments	Nil
4 Rate of Interest	Interest free
5 Overdue amount and period:	Nil
b. Sales Tax Deferment:
The Company was sanctioned Interest Free Sales Tax Deferment of 34,585,650/- under target – 2000 Scheme by the Government of Andhra Pradesh vide final eligibility Certificate No.LR No.10/4/2001/0878/0878/ID dt.24-07-2001, for a period of 14 years starting from 20-03-1999 to 19-03 2013. The company has so far availed Sales Tax Deferment of 26,979,010/ up to 31-03-2013, which is shown as liability in the Balance Sheet. The repayment of 1st year availment will start from year 2016.

HISTORY:

Alkali Metals Limited which was established in 1968, at Hyderabad, Andhra Pradesh, India, as a closely held company, became a Public Listed company on 6th. November, 2008 being listed on BSE & NSE. Originally set up for manufacturing of Sodium Metal, the company subsequently diversified into manufacturing of Sodium derivatives, Pyridine derivatives, Fine Chemicals etc. The company is recognised as an “Export House” by DGFT and also recognised by Dept. of Science and Technology, New Delhi as an approved “In house R & D Facility”. The company has three manufacturing units, at Uppal, Dommara Pochampally and JNPC Visakhapatnam.

PERFORMANCE

During the year the company’s Gross Sales has been Rs. 699 Million as compared to Rs.654 Million in 2012-13 registering growth of 7% over the previous year. Due to increase in Power cost and other overheads during the year, there is a net loss of Rs.31.81 Million as compared to net profit of Rs. 3.91 Million in the previous year.

OUTLOOK:

Economic growth is expected to pick up in India during 2014. The country’s GDP growth rate will increase from 4.6% in the fiscal year ending 31 March 2014 to 5.6% in the fiscal year ending 31 March 2015 and 6.5% in the following fiscal year. The Indian chemical industry has always grown 1–2% above the overall GDP growth rate in the country. This trend will continue, and the chemical industry in India will grow about 2% above the GDP growth rate in 2014. India’s chemical industry sales are estimated to reach $115–120 billion in 2014.

The specialty chemicals segment is expected to grow at a rate of 11–12%. Specialty chemicals and agro chemicals are likely to grow faster than basic and commodity chemicals. The specialty chemicals sector is characterized by the need for high-value products, high-volume requirements with expanding customer base. The market is likely to grow at a compound annual growth rate (CAGR) of 13-14 per cent.

PRODUCT PERFORMANCE:

The company has sold 1,614 MT of finished products during 2013-14 as against 1,395 MT in the previous year registering annual growth of 16% over the previous year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80003863	23/12/2013 *	400,600,000.00	State Bank of India	Commercial Branch, Mid Corporate Group, Bank Street, Koti, Hyderabad, Andhra Pradesh - 500095, INDIA	B94220779

FIXED ASSETS

Tangible Assets

· Land

· Building

· Plant And Machinery

· Pollution Control

· Equipment

· Vehicles

· Furniture And Fixture

· Lab Equipment

· Office Equipment

· Computers

· R And D Lab Equipment

· Safety Equipment

Tangible Assets

· 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.60.84
UK Pound	1	Rs.98.72
Euro	1	Rs.78.64

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	ANU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--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		28

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.