MIRA INFORM REPORT

Report Date :

23.09.2014

IDENTIFICATION DETAILS

Name :	PERFECT ENGINEERING PRODUCTS LIMITED
Registered Office :	31, Golden Beach Co-operative Housing Society, Ruia Park, Juhu, Mumbai – 400049, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	26.03.1964
Com. Reg. No.:	11-012880
Capital Investment / Paid-up Capital :	Rs. 52.208 Millions
CIN No.: [Company Identification No.]	U28920MH1964PLC012880
TAN No.: [Tax Deduction & Collection Account No.]	PNEP00781E
PAN No.: [Permanent Account No.]	AABCP6180E
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer of Engine Components.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 730000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exist
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile and losses that company has incurred from its operational activities. However, trade relations are fair. Business is active. Payments are reported to be slow. The company can be considered for business dealing with some caution.

NOTES :

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED

Management Non-Cooperative (91-2114-272996)

LOCATIONS

Registered Office :	31, Golden Beach Co-operative Housing Society, Ruia Park, Juhu, Mumbai – 400049, Maharashtra, India
Tel No.:	Not Available
Fax No.:	Not Available
E-Mail :	finance@perfectenginecomponents.com
Factory 1 :	172 Tungarli, Lonavla, Pune – 411465, Maharashtra, India
Tel. No.:	91-2114-270673 / 4 / 5
Fax No.:	91-2114-273310 / 273401
Factory 2 :	215/3 Chikali, Kamshet, Pune, Maharashtra, India.
Factory 3 :	Also Located at Lonavla, Pune, Maharashtra, India
Corporate Office :	550 B, Sindh Society, Aund Baner Road, Pune - 411008, Maharashtra, India.
Tel. No.:	91-20-25851586 / 87

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Ambrish Vijay Shah

Designation :

Chairman-Cum-Managing Director

Address :

Flat No. 29, 8^th and 9^th Floor, Nikas Sekies, Aundh, Pune – 411007, Maharashtra, Indias

Date of Birth/Age :

01.12.1971

Date of Appointment :

21.03.2011

DIN No. :

00021383

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	U74210MH1988PTC047998	KARLA ENGINEERING PRODUCTS PRIVATE LIMITED	Director	31/03/1990	31/03/1990	-	Active	NO
2	U28920MH1964PLC012880	PERFECT ENGINEERING PRODUCTS LIMITED	Managing director	21/03/2011	01/01/2004	-	Active	NO
3	U35999MH2005PLC151387	KARLA ENGINE COMPONENTS LIMITED	Director	17/02/2005	17/02/2005	-	Active	NO
4	U45201MH2006PTC162766	Perfect Infrastructure Private Limited	Director	21/06/2006	21/06/2006	-	Active	NO
5	U29120MH2005PTC150632	PERFECT ENGINE COMPONENTS PRIVATE LIMITED	Director	29/09/2008	15/11/2007	-	Active	NO
6	U31503PN2008PTC131913	PERFECT LIGHTING SOLUTIONS PRIVATE LIMITED	Director	01/05/2008	01/05/2008	01/04/2011	Active	NO
7	U28920PN2006PTC022035	AUM HIGH POWER PLATING AND EQUIPMENTS PRIVATE LIMITED	Director	30/09/2010	01/04/2010	16/02/2013	Active	NO
8	U45202MH2014PTC254809	PERFECT NIVESH INFRA PRIVATE LIMITED	Director	02/06/2014	02/06/2014	-	Active	NO

Name :

Mrs. Chetana Ambarish hah

Designation :

Director

Address :

Flat No. 29, 8^th and 9^th Floor, Nikas Sekies, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

24.07.1971

Date of Appointment :

29.09.2011

DIN No. :

01338996

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	U35999MH2005PLC151387	KARLA ENGINE COMPONENTS LIMITED	Director	29/09/2007	15/02/2007	-	Active	NO
2	U28920PN2006PTC022035	AUM HIGH POWER PLATING AND EQUIPMENTS PRIVATE LIMITED	Director	30/09/2010	01/04/2010	16/02/2013	Active	NO
3	U28920MH1964PLC012880	PERFECT ENGINEERING PRODUCTS LIMITED	Director	29/09/2011	31/03/2011	-	Active	NO
4	U29120MH2005PTC150632	PERFECT ENGINE COMPONENTS PRIVATE LIMITED	Director	29/09/2011	31/03/2011	-	Active	NO
5	U45201MH2006PTC162766	Perfect Infrastructure Private Limited	Additional director	27/12/2011	27/12/2011	-	Active	NO
6	U45202MH2014PTC254809	PERFECT NIVESH INFRA PRIVATE LIMITED	Director	02/06/2014	02/06/2014	-	Active	NO

Name :

Mrs. Mangala Vijay Shah

Designation :

Director

Address :

Bunglow No. 10, Near Citi Bank Holiday Home, Valvan, Lonavla – 410401, Maharashtra, India.

Date of Birth/Age :

17.03.1946

Date of Appointment :

08.03.1990

DIN No. :

00021575

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	U28920MH1964PLC012880	PERFECT ENGINEERING PRODUCTS LIMITED	Director	08/03/1990	08/03/1990	-	Active	NO
2	U45201MH2006PTC162766	Perfect Infrastructure Private Limited	Director	21/06/2006	21/06/2006	-	Active	NO
3	U35999MH2005PLC151387	KARLA ENGINE COMPONENTS LIMITED	Director	29/09/2011	31/03/2011	-	Active	NO
4	U29120MH2005PTC150632	PERFECT ENGINE COMPONENTS PRIVATE LIMITED	Director	29/09/2011	31/03/2011	-	Active	NO

MAJOR SHAREHOLDERS

As on 28.09.2012

Names of Shareholders	No. of Shares
Ambrish Shah Trustee Ambrish Shah Trust	64000
Mangala Vijay Shah	742080
Ambrish Vijay Shah	1658080
Siddharth Vijay Shah	1659040
Pivotal Securities Private Limited, India	548160
Pasha Finance Private Limited, India	548160
Chetna Ambrish Shah	1280
Total	5220800

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	21.00
Directors or relatives of Directors	79.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Engine Components

Products :

Item Code No. (ITC Code)	Product Description
84099990	Valve Seat Insert

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

State Bank of India, Commercial Branch,1548/A, Sadashiv Peth, Tilak Road, Pune - 411030, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	288.680	288.680
Others loans and Advances	103.003	103.229
SHORT TERM BORROWINGS
Working capital loans from bank	555.940	498.717
Total	947.623	890.626

Banking Relations :	--
Auditors :
Name :	Jagtap Jagdeorao Raosaheb Chartered Accountants
Address :	R A Jagtap and Company, 427, Parekh Market, 39, Kennedy Bridge, Opera House, Mumbai – 400004, Maharashtra, India
PAN No.:	AADPJ5934H
Subsidiaries :	· Kerla Engine Components Private Limited · Perfect Engine Components Private Limited

CAPITAL STRUCTURE

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs. 10/- each	Rs. 52.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5220800	Equity Shares	Rs. 10/- each	Rs. 52.208 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	52.208	52.208	52.208
(b) Reserves & Surplus	131.185	170.899	259.512
(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)	183.393	223.107	311.720
(3) Non-Current Liabilities
(a) long-term borrowings	736.049	648.393	483.094
(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	63.446	63.445	62.711
Total Non-current Liabilities (3)	799.495	711.838	545.805
(4) Current Liabilities
(a) Short term borrowings	555.940	498.717	559.983
(b) Trade payables	178.316	219.122	235.706
(c) Other current liabilities	125.127	86.653	43.429
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	859.383	804.492	839.118
TOTAL	1842.271	1739.437	1696.643
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	371.009	386.902	393.979
(ii) Intangible Assets	91.959	72.958	121.619
(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	63.200	63.700	63.700
(c) Deferred tax assets (net)	47.631	27.432	-23.292
(d) Long-term Loan and Advances	66.671	64.375	61.873
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	640.470	615.367	617.879
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	544.735	541.875	523.491
(c) Trade receivables	531.229	448.879	428.408
(d) Cash and cash equivalents	9.015	3.767	2.806
(e) Short-term loans and advances	102.741	111.545	108.215
(f) Other current assets	14.081	18.004	15.844
Total Current Assets	1201.801	1124.070	1078.764
TOTAL	1842.271	1739.437	1696.643

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	330.809	437.929	857.210
	Other Income	4.910	4.125	88.926
	TOTAL (A)	335.719	442.054	946.136
Less	EXPENSES
	Cost of Materials Consumed	84.830	142.466	751.471
	Purchases of Stock-in-Trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(4.013)	(20.606)	51.355
	Employees benefits expense	68.085	79.966	60.619
	Exceptional Items	0.002	0.000	0.221
	Other expenses	128.912	182.152	121.186
	TOTAL (B)	277.816	383.978	984.852
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	57.903	58.076	-38.716
Less	FINANCIAL EXPENSES (D)	97.745	136.719	171.049
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(39.842)	(78.643)	(209.765)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	20.070	60.694	62.568
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(59.912)	(139.337)	(272.333)
Less	TAX (H)	(20.199)	(50.724)	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	(39.713)	(88.613)	(272.333)
	Balance Carried to the B/S	(39.713)	(88.613)	(272.112)
	EARNINGS IN FOREIGN CURRENCY	16.972	12.007	4.890
	TOTAL EARNINGS
	Earnings / (Loss) Per Share (Rs.)	(7.61)	(16.97)	(52.16)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(11.83)	(20.05)	(28.78)
Net Profit Margin (PBT/Sales)	(%)	(18.11)	(31.82)	(31.77)
Return on Total Assets (PBT/Total Assets}	(%)	(3.46)	(8.45)	(16.44)
Return on Investment (ROI) (PBT/Networth)		(0.33)	(0.62)	(0.87)
Debt Equity Ratio (Total Debt /Networth)		7.04	5.14	3.35
Current Ratio (Current Asset/Current Liability)		1.40	1.40	1.29

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	52.208	52.208	52.208
Reserves & Surplus	259.512	170.899	131.185
Net worth	311.720	223.107	183.393
long-term borrowings	483.094	648.393	736.049
Short term borrowings	559.983	498.717	555.940
Total borrowings	1043.077	1147.110	1291.989
Debt/Equity ratio	3.346	5.142	7.045

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	857.210	437.929	330.809
		(48.912)	(24.461)

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	857.210	437.929	330.809
Profit	(272.333)	(88.613)	(39.713)
	(31.77%)	(20.23%)	(12.00%)

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

LITIGATION DETAILS

Case Derails

Bench: - Bombay

Presentation Date :- 02.01.2014
Lodging No.:- ITXAL/49/2014 Filing Date:- 02.01.2014 Reg. No.:- ITXA/375/2014 Reg. Date:- 24/02/2014
Petitioner: - THE COMMISSIONER OF INCOME TAX-8	Respondent :- PERFECT ENGINEERING PRODUCTS LIMITED
Petn. Adv. :- ARVIND PINTO (0)	Resp. Adv.:- AJAYKUMAR RADHEYPRASAD SINGH AND
District : - MUMBAI
Bench : - DIVISION	Category :- TAX APPEALS
Status : - Pre-Admission	Stage :- FOR ADMISSION
Next Date : - 28/10/2014
Coram:- ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST
Act :- Income Tax Act, 1961 Under Section :- 260A

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10309453	08/08/2011	627,300,000.00	State Bank of India	Commercial Branch,1548/A, Sadashiv Peth, Tilak Road, Pune, Maharashtra - 411030, INDIA	B22223366
2	10096205	16/10/2008 *	266,500,000.00	SBI FACTORS AND COMMERCIAL SERVICES PRIVATE LIMITED	2ND FLOOR,TARA CHAMBERS, PUNE MUMBAI HIGHWAY, WAK DEWADI, PUNE, Maharashtra - 411003, INDIA	A47687785
3	10059381	25/06/2007 *	159,000,000.00	STATE BANK OF INDIA	WAGLE ESTATE BRANCH, THANE, Maharashtra - 400601,  INDIA	A19296599
4	10012519	26/06/2006	890,000.00	SUNDARAM FINANCE LIMITED	NO21,PATULLOS ROAD, CHENNAI, Tamil Nadu - 600002,  INDIA	A02865988
5	90242748	01/08/2005	400,000.00	M/S SUNDHAM FINANCE LIMITED.	PATLUOS ROAD, CHENNAI, Tamil Nadu, INDIA	-
6	90229947	13/03/2004	2,140,000.00	STATE BANK OF INDIA	WAGLE INDUSTRAIL ESTATE BRANCH, THANE, Maharashtra, INDIA	-
7	90229782	27/05/2002	5,000,000.00	STATE BANK OF INDIA	WAGLE INDUSTRAIL ESTATE BRANCH, THANE, Maharashtra, INDIA	-
8	90226957	18/09/2002 *	25,100,000.00	STATE BANK OF INDIA	WAGLE INDUSTRAIL ESTATE, THANE, Maharashtra, INDIA	-
9	90228652	23/12/2008 *	990,200,000.00	STATE BANK OF INDIA	MID CORPORATE LOAN ADMINISTRATION UNIT, RTO LANE, ANDHERI(WEST), MUMBAI, Maharashtra - 400053, INDIA	A53807343
10	90227435	20/12/1976	100,000.00	STATE BANK OF INDIA	WAGLE INDUSTRAIL ESTATE BRANCH, THANE, Maharashtra, INDIA	-

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Deferred payment liabilities	10.735	10.735
Loans and advances from related parties	0.779	6.836
Others loans and advances	332.852	238.913
Total	344.366	256.484

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Sales Bill Discounted	58.090	58.090
Bank Guarantees issued against Export Obligation for EOU units	0.685	0.685
Income Tax Liability	210.088	210.088
Sales Tax Liability	18.765	18.765
Total	287.628	287.628

FIXED ASSETS

• Building
• Plant and Machinery
• Office Equipments
• Furniture and Fixture
• Vehicles
• Computers
• Motor Vehicles
• Ships vessels

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. 60.78
UK Pound	1	Rs. 99.29
Euro	1	Rs. 78.16

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	TRU

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	3
--PROFITABILIRY	1~10	--
--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	YES
--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		26

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.