MIRA INFORM REPORT

Report Date :

24.09.2014

IDENTIFICATION DETAILS

Name :	VAMSI LABS LIMITED
Formerly Known As :	VAMSI LABS PRIVATE LIMITED
Registered Office :	A-14/15, MIDC Area, Pune Road Chincholi, Solapur - 413255, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	09.01.1991
Com. Reg. No.:	11-059750
Capital Investment / Paid-up Capital :	Rs.28.635 Millions
CIN No.: [Company Identification No.]	U24231MH1991PLC059750
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturing of Active Pharmaceutical Ingredients (APIs).
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 220000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Reserves of the company is low. Rating also takes into consideration stringent regulatory norms in Pharmaceutical industry. However, trade relations are fair. Business is active. Payment terms are slow but correct. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Term Loan: B+
Rating Explanation	Risk Prone credit quality and very high credit risk
Date	January, 2014

Rating Agency Name	ICRA
Rating	Non Fund Based: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	January, 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 DECLINED BY

Name :	Mr. Nagraj
Designation :	Accounts Department
Contact No.:	91-217-2357274
Date :	23.09.2014

LOCATIONS

Registered Office/ Factory :	A-14/15, MIDC Area, Pune Road Chincholi, Solapur - 413255, Maharashtra, India
Tel. No.:	91-217-2357274/ 75
Mobile No.:	91-9422457791 (Mr. G. Pratap Reddy) 91-9422457790 (Mr. M. Kesava Reddy)
Fax No.:	91-217-2357278
E-Mail :	mkreddy@vamsilabs.com sales@vamsilabs.com kapil@vamsilabs.com nagraj@vamsilabs.com
Website :	www.vamsilabs.com

DIRECTORS

(AS ON 23.09.2013)

Name :

Mr. Kesava Reddy Bhujanga Reddy Madana

Designation :

Whole-time director

Address :

B-149, Plot No.3, Gangadhar Housing Society, Hotgi Road, Solapur - 413003, Maharashtra, India

Date of Birth/Age :

01.04.1954

Date of Appointment :

01.04.2009

DIN No.:

01916588

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	Company/ LLP Status	Defaulting status
1	U24231MH1991PLC059750	VAMSI LABS LIMITED	Whole-time director	01/04/2009	09/01/1991	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	14/08/1996	14/08/1996	Active	NO

Name :

Mr. Pratap Reddy Linga Reddy Gaddam

Designation :

Managing director

Address :

Plot No.24/2, Hotgi Road, Solapur - 413003, Maharashtra, India

Date of Birth/Age :

16.07.1960

Date of Appointment :

01.04.2009

DIN No.:

01926026

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	Company/ LLP Status	Defaulting status
1	U24231MH1991PLC059750	VAMSI LABS LIMITED	Managing director	01/04/2009	09/01/1991	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	14/08/1996	14/08/1996	Active	NO
3	U01122PN1999PTC014275	GREENFIELD CET PLANT PRIVATE LIMITED	Director	20/07/2002	20/07/2002	Active	NO
4	U24232PN2011PTC139429	GPR LIFE SCIENCES PRIVATE LIMITED	Director	05/05/2011	05/05/2011	Active	NO

Name :

Mr. Jaganmohan Anakala

Designation :

Whole-time director

Address :

132, Railway Lines, Forest, Solapur - 413003, Maharashtra, India

Date of Birth/Age :

01.07.1968

Date of Appointment :

30.09.2010

DIN No.:

02796369

Name :

Prasadureddy Kotiswamy Devagiri

Designation :

Director

Address :

Raghavendra Apartments, Hotgi Road, Near Sales Tax Office, Solapur - 413003, Maharashtra, India

Date of Birth/Age :

01.07.1945

Date of Appointment :

01.03.2004

DIN No.:

02796374

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	Company/ LLP Status	Defaulting status
1	U24231MH1991PLC059750	VAMSI LABS LIMITED	Director	01/03/2004	01/03/2004	Active	NO
2	U27310PN1993PTC017971	SAROJINI STEEL LIMITED	Director	01/03/2004	01/03/2004	Active	NO
3	U24232PN2011PTC139429	GPR LIFE SCIENCES PRIVATE LIMITED	Director	05/05/2011	05/05/2011	Active	NO

Name :

Rama Taraka Reddy Tummuru

Designation :

Director

Address :

H. No.8-2-601/B/104, G. P. Residency Road No.10, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India

Date of Birth/Age :

01.07.1948

Date of Appointment :

01.03.2004

DIN No.:

02797424

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	U24231MH1991PLC059750	VAMSI LABS LIMITED	Director	01/03/2004	01/03/2004	-	Active	NO
2	U27109AP2007PTC053805	GAVI SIDDESWARA STEELS(INDIA) PRIVATE LIMITED	Director	03/05/2007	03/05/2007	25/03/2011	Active	NO

Name :

Mr. Ravindra Nandlal Purohit

Designation :

Additional Director

Address :

E-41, Royal Orchid, Corporate Road, Prahlad Nagar, Satellite, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

24.03.1965

Date of Appointment :

01.01.2013

DIN No.:

06442047

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	Company/ LLP Status	Defaulting status
1	U24231MH1991PLC059750	VAMSI LABS LIMITED	Director	23/09/2013	01/01/2013	Active	NO

Name :

Mr. Madhusudan Padira Reddy

Designation :

Additional Director

Address :

Plot No.20-H, Chandravilas Apartment Huda Height, Near Lotus Pond, Banjarahills, Banjara, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

15.07.1960

Date of Appointment :

01.09.2012

DIN No.:

06561595

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	Company/ LLP Status	Defaulting status
1	U24231MH1991PLC059750	VAMSI LABS LIMITED	Director	23/09/2013	01/09/2012	Active	NO

KEY EXECUTIVES

Name :	Mr. Nagraj
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 23.09.2013)

Names of Shareholders	No. of Shares
G. Pratap Reddy	563332
K. Joji Reddy	22350
K. Madhusudan Reddy	15630
M. K. Reddy	682928
M. Shivnagendram	18670
A. Leelavathi	31280
D. Vindya Rani	22600
G. Anupama Reddy	175050
K. Venkata Laxmi	13480
M. Pramiladevi	114750
M. Sambrajayamma	106600
V. Malleshwari	41170
G. Samhita Reddy	232240
G. Madalasa Reddy	238083
M. Priyanka Reddy	585337
Total	2863500

(AS ON 30.09.2013)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Active Pharmaceutical Ingredients (APIs).

Products :

Products Description	Item Code No.
Salbutamol Sulphate and Base	2905 14 20
Salmeterol Xinafoate	3004 90 91
Formoterol Fumarate	3004 90 99
Cyproheptadine	2933 39 90
Domperidone	2922 50 24
Haloperidol	2933 39 90
Other Bulk Drugs and Intermediates	2942 00 00

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· State Bank of India

Industrial Finance Branch, The Arcade, World Trade Center, Cuffe Parade, Coloba, Mumbai - 400005, Maharashtra, India

Facilities :

Secured Loans	31.03.2013	31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS
Term Loan of Rs.20.000 Millions with State Bank of India IFB. Mum.	6.312	7.553
WCD Loan of Rs.55.000 Millions with State Bank of India. IFB. Mum. (Secured by a first charges on Leasehold Land, Building, Plant and Machinery, Stocks, Book Debts of the company movable and mortgage of present and future immovable properties and personal guarantee of directors)	33.801	39.886
Vehicle Loans from
(a) BMW Car loan from BMW India Financial Services Private Limited	1.431	2.156
(b) Gio Vehicle loans from Sunderam Finance Limited (Secured by charge on the vehicles with R.T.O for respective loan amounts)	0.000	0.024
Sales-tax Deferral Under PS11993 Scheme i) Original Entitlement Certificate of Rs.13.800 Millions PSI 93	3.468	5.658
ii) Expansion Entitlement Certificate of Rs.25.400 Millions PSI 93	24.540	25.171
SHORT TERM BORROWINGS
Cash Credit with State Bank of India, IFB, Mumbai [Secured by a first charge by way of Stock, Book debts of the Company movables and mortgage of present and future immovable properties and personal guarantee of Directors]	39.981	39.895
Total	109.533	120.343

Banking Relations :	--
Financial Institution :	· Sundaram Finance Limited 21 Patullos Road, Chennai - 600002, Tamilnadu, India
Auditors :
Name :	Ashok Madgundi and Company Chartered Accountants
Address :	210/A/1, Sakhar Peth, Solapur – 413007, Maharashtra, India
PAN No.:	ABRPM6697F
Tel. No.:	91-217-2620403/ 2626540

CAPITAL STRUCTURE

(AS ON 23.09.2013)

Authorised Capital :

No. of Shares	Type	Value	Amount
3750000	Equity Shares	Rs.10/- each	Rs.37.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2863500	Equity Shares	Rs.10/- each	Rs.28.635 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	28.635	28.635	28.635
(b) Reserves & Surplus	25.671	18.251	14.675
(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)	54.306	46.886	43.310
(3) Non-Current Liabilities
(a) long-term borrowings	73.301	84.562	93.199
(b) Deferred tax liabilities (Net)	5.663	5.358	5.436
(c) Other long term liabilities	1.723	0.835	62.176
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	80.687	90.755	160.811
(4) Current Liabilities
(a) Short term borrowings	39.981	39.895	39.916
(b) Trade payables	93.662	114.537	52.730
(c) Other current liabilities	13.905	13.231	10.503
(d) Short-term provisions	1.374	1.248	1.030
Total Current Liabilities (4)	148.922	168.911	104.179
TOTAL	283.915	306.552	308.300
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	86.937	92.194	86.911
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.309	0.642	0.642
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	16.003	18.777	22.902
(e) Other Non-current assets	3.669	5.503	7.338
Total Non-Current Assets	106.918	117.116	117.793
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	49.295	51.459	59.812
(c) Trade receivables	49.201	60.404	53.951
(d) Cash and cash equivalents	0.847	2.008	1.453
(e) Short-term loans and advances	77.654	75.565	75.291
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	176.997	189.436	190.507
TOTAL	283.915	306.552	308.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	282.346	276.876	232.206
		Other Income	1.152	0.076	1.605
		TOTAL (A)	283.498	276.952	233.811
Less	EXPENSES
		Cost of material consumed	129.575	142.358	135.937
		Purchases of traded goods	5.005	2.785	1.289
		Increase/ (Decrease) in inventories of finished goods, work in progress and traded goods	4.453	13.573	(4.017)
		Employee benefit expenses	30.119	24.860	21.545
		Power, Fuel and Water Charges	23.064	18.307	16.664
		Stores, Consumable, Spares repairs and maintenance	14.214	13.430	11.517
		Travelling, conveyance, Sales Commission	3.475	2.167	3.008
		Other Expenses	38.236	26.540	21.308
		Exceptional items	0.000	2.200	0.000
		TOTAL (B)	248.141	246.220	207.251
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		35.357	30.732	26.560
Less	FINANCIAL EXPENSES (D)		16.880	17.843	15.247
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.477	12.889	11.313
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.705	7.847	6.601
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		6.772	5.042	4.712
Less	TAX (H)		2.908	1.485	0.752
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		3.864	3.557	3.960
	EARNINGS IN FOREIGN CURRENCY
		Export at FOB Value	74.914	69.930	50.161
	TOTAL EARNINGS		74.914	69.930	50.161
	IMPORTS
		Raw Materials	35.979	17.595	13.968
		Capital Goods	0.000	1.394	0.000
	TOTAL IMPORTS		35.979	18.989	13.968
	Earnings Per Share (Rs.)		1.35	1.24	1.38

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.36	1.28	1.69
Net Profit Margin (PBT/Sales)	(%)	2.40	1.82	2.03
Return on Total Assets (PBT/Total Assets}	(%)	2.39	1.65	1.53
Return on Investment (ROI) (PBT/Networth)		0.12	0.11	0.11
Debt Equity Ratio (Total Debt/Networth)		2.09	2.65	3.07
Current Ratio (Current Asset/Current Liability)		1.19	1.12	1.83

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	28.635	28.635	28.635
Reserves & Surplus	14.675	18.251	25.671
Net worth	43.310	46.886	54.306
long-term borrowings	93.199	84.562	73.301
Short term borrowings	39.916	39.895	39.981
Total borrowings	133.115	124.457	113.282
Debt/Equity ratio	3.074	2.654	2.086

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	232.206	276.876	282.346
		19.237	1.976

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	232.206	276.876	282.346
Profit	3.960	3.557	3.864
	1.71%	1.28%	1.37%

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	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

PARTICULARS	31.03.2013	31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS
Deposits from Others (Repayable for more than one year)	3.748	4.114
Total	3.748	4.114

CORPORATE INFORMATION

Subject is a public company domiciled in Indian and incorporates under the provisions of the Companies Act, 1956. Its shares are not listed. This company is closely held Limited Company. The company is engaged in the manufacturing and selling Bulk Drugs and Intermediates, Fine chemicals (APIs). The company caters to both domestic and international market.

COMPANY PERFORMANCE

The company’s turnover increased from Rs.276.800 Millions to Rs.282.300 Millions which shows better performance in this competitive scenario.

After meeting all expenses the company posed a profit of Rs.3.863 Millions which is carried to balance sheet,

However the Directors pose a sincere confidence in performing well in the years to come.

INDEX OF CHARGES

S.No.	Charge Id	Date of Charge Creation/ Modification	Charge Amount Secured	Charge Holder	Address	Service Request Number (SRN)
1	10115598	05/07/2008	116,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANACE BRANCH, THE ARCADE, WORLD TRADE CENTER, CUFFE PARADE, COLOBA, MUMBAI - 400005, MAHARASHTRA, INDIA	A43106889
2	10006775	10/05/2006	790,000.00	SUNDARAM FINANCE LIMITED	21 PATULLOS ROAD, CHENNAI - 600002, TAMILNADU, INDIA	A01353069
3	90093378	07/11/2005 *	20,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, WORLD TRADE CENTRE; CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	-
4	90091565	02/06/2001	33,000,000.00	STATE BANK OF INDIA	BALIVES BRANCH, SOLAPUR, MAHARASHTRA, INDIA	-
5	90088309	29/07/2000	19,800,000.00	STATE BANK OF INDIA	BALIVES BRANCH, SOLAPUR, MAHARASHTRA, INDIA	-
6	90091312	07/11/2005 *	45,000,000.00	STATE BANK OF INDIA	BALIVES BRANCH, SOLAPUR, MAHARASHTRA, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Land

· Land Development

· Agricultural Land

· Building

· Plant and Machinery

· Electrical Installation

· Office Furniture and Fixture

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.87
UK Pound	1	Rs.99.63
Euro	1	Rs.78.22

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUM
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--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		32

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	--

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