MIRA INFORM REPORT

Report Date :

26.09.2014

IDENTIFICATION DETAILS

Name :	POWERMASTER ENGINEERS PRIVATE LIMITED
Formerly Known As :	POWER MASTER BOILERS PRIVATE LIMITED
Registered Office :	229, Pragati Industrial Estate, 316, N.M. Joshi Marg, Chinchpokli, Mumbai- 400 011, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	21.04.1971
Com. Reg. No.:	11-15118
Capital Investment / Paid-up Capital :	Rs. 1.068 Millions
CIN No.: [Company Identification No.]	U29305MH1971PTC015118
TAN No.: [Tax Deduction & Collection Account No.]	MUMP16768D
PAN No.: [Permanent Account No.]	AAACP4977A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Tube Expanding Machine, Digital Torque Controller and Grooving Tools.
No. of Employees :	450 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 3870000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having a fine track record. Financial position of the company seems to be decent. Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal for 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

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Abdul Sabuwala
Designation :	Export Department
Contact No.:	91-22-23000015
Date :	24.09.2014

LOCATIONS

Registered Office :	229, Pragati Industrial Estate, 316, N.M. Joshi Marg, Chinchpokli, Mumbai- 400 011, Maharashtra, India
Tel. No.:	91-22-23000015 / 23072996 / 43453100
Fax No.:	91-22-2307 3761
E-Mail :	v.balakrishnan@tubeexpander.com sales@powermaster.in mailbox@tubeexpander.com mohan.achrekar@powermaster.in info@tubeexpander.com
Website :	http://www.powermaster.in
Sales and Service Centers/ Factory 1 :	A-87, T.T.C. Industrial Area, M.I.D.C., Thane-Belapur Road, Khairne, New Mumbai - 400 705. India
Tel. No.:	91-22-41619150
Fax No.:	91-22-24942555
E-Mail :	sales@tubeexpander@.com
Factory 2 :	5 and 18 Rashmi Industrial Estate No.1, Vasai (East), Thane 401202, Maharashtra, India
Tel. No.:	91-250-2392021 / 2390562
Fax No.:	91-250-2391576
Factory 3 :	42 and 43 Manish Industrial Estate No. 5, Vasai (East), Thane-401210, Maharashtra, India
Factory 4 :	A-87, T.T.C. Industrial Area, M.I.D.C., Thane-Belapur Road, Khairne, New Mumbai - 400 705, Maharashtra, India
Product Development Center :	W-224, T.T.C. Industrial Area, M.I.D.C., Thane-Belapur Road,  Khairne, New Mumbai - 400 705, Maharashtra, INDIA
Tel. No.:	91-22-41619100
Fax No.:	91-22-27780339
Email :	sales@powermaster.in sales@tubeexpander.com
Sales and Services Centre :	126/1A, Vaibhavhali, Opposite Lokhande Hospital, Mohan Nagar, Chinchwad, Pune 411 019, Maharashtra, India
Mobile No.:	91-986 926 44 58
Fax No.:	91-22-2778 0339
E-Mail :	sales@powermaster.in
Sales and Services Centre :	# 1835, 14th Cross, 22nd Main, Sector - I, HSR layout, Bangalore – 560034, Karnataka, India
Tel. No.:	91-80-2572 9054
Mobile No.:	91-99019 01345
Fax No.:	91-22-2307 3761
Email :	sales@powermaster.in

DIRECTORS

As on: 30.07.2014

Name :

Mr. Sunder Lokusing Advani

Designation :

Whole Time Director

Address :

6A, Belvedere Court, Condominium, Sane Guruji Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India

Date of Birth/Age :

16.01.1935

Qualification :

B.Sc. Mechanical Engineer, G.M.I. Mechanical Engineer

Experience :

52 Years

Date of Appointment :

30.07.2014

DIN No.:

00130516

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	U29305MH1971PTC015118	POWERMASTER ENGINEERS PRIVATE LIMITED	Whole-time director	30/07/2014	21/04/1971	-	Active	NO
2	U29220MH1983PTC029781	POWERMASTER TOOLS PRIVATE LIMITED	Director	10/09/1983	10/09/1983	-	Active	NO
3	U74999MH1986PTC040821	POWERMASTER TORQUE SYSTEMS PRIVATE LIMITED	Director	03/09/1986	03/09/1986	-	Active	NO

Name :

Ms. Meena Sunder Advani

Designation :

Director

Address :

6A, Belvedere Court, Condominium, Sane Guruji Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India

Date of Birth/Age :

14.06.1948

Date of Appointment :

30.07.2014

DIN No.:

00130666

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	U29305MH1971PTC015118	POWERMASTER ENGINEERS PRIVATE LIMITED	Whole-time director	30/07/2014	27/04/1971	-	Active	NO
2	U29220MH1983PTC029781	POWERMASTER TOOLS PRIVATE LIMITED	Director	10/09/1983	10/09/1983	-	Active	NO
3	U74999MH1986PTC040821	POWERMASTER TORQUE SYSTEMS PRIVATE LIMITED	Director	03/09/1986	03/09/1986	-	Active	NO

Name :

Mr. Dinesh Sunder Advani

Designation :

Managing Director

Address :

4B, Belvedere Court, Condominium, Sane Guruji Marg, Mahalaxmi, Mumbai – 400601, Maharashtra, India

Date of Birth/Age :

04.11.1970

Qualification :

B.Sc (Computer), USA

Experience :

22 Years

Date of Appointment :

30.07.2014

DIN No.:

00149490

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	U29305MH1971PTC015118	POWERMASTER ENGINEERS PRIVATE LIMITED	Managing director	30/07/2014	17/05/1990	-	Active	NO
2	U74999MH1986PTC040821	POWERMASTER TORQUE SYSTEMS PRIVATE LIMITED	Director	10/06/1993	10/06/1993	-	Active	NO
3	U29220MH1983PTC029781	POWERMASTER TOOLS PRIVATE LIMITED	Director	10/06/1993	10/06/1993	-	Active	NO

Name :

Sheerine Maurivard Advani

Designation :

Director

Address :

4B, Belvedere Court, Condominium, Sane Guruji Marg, Mahalaxmi, Mumbai – 400601, Maharashtra, India

Date of Birth/Age :

13.10.1977

Date of Appointment :

30.07.2014

DIN No.:

00130751

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	U29305MH1971PTC015118	POWERMASTER ENGINEERS PRIVATE LIMITED	Whole-time director	30/07/2014	18/04/2006	-	Active	NO
2	U29220MH1983PTC029781	POWERMASTER TOOLS PRIVATE LIMITED	Director	31/05/2008	31/05/2008	-	Active	NO

Name :

Mr. Shashi Singh Muwall

Designation :

Whole Time Director

Address :

EC 83, A003 Evershine City, Vasai Road (East), Thane, Maharashtra, India

Date of Birth/Age :

18.11.1966

Date of Appointment :

30.07.2014

DIN No.:

01426593

Name :

Mr. Ajay Kumar

Designation :

Whole Time Director

Address :

B5 604, Swastikala Residency, Ghodbunderb Road, Thane - 400601, Maharshtra, India

Date of Birth/Age :

10.04.1970

Date of Appointment :

30.07.2014

DIN No.:

06701844

KEY EXECUTIVES

Name :	Mr. Abdul Sabuwala
Designation :	Export Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.07.2014

Names of Shareholders	No. of Shares
Sunder Lokusing Advani	466590
Meena Sunder Advani	66600
Dinesh Sunder Advani	371600
Powermaster Tools Private Limited, India	163300
Ramesh K Pawar	2
Shashi Singh Muwall	2
Prashant Mhatre	2
Prashant Shenoy	2
Ajay Kumar	2
Sheerine Dinesh Advani	3
TOTAL	1068103

Equity Share Break up (Percentage of Total Equity)

As on: 30.07.2014

Category	Percentage
Bodies corporate	15.00
Directors or relatives of directors	85.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Tube Expanding Machine, Digital Torque Controller and Grooving Tools.
Products :	· Balancer · Belling Tool · Combination Beading Expander · Diesel Engine Expander · Hydraulic Tube Pulling Guns · Internal Tube Cutter For Ferrous Tubes
Imports :
Products :	Raw material
Countries :	· Germany · China

GENERAL INFORMATION

Customers :

End users

No. of Employees :

450 (Approximately)

Bankers :

• ICICI Bank, Free press House, 215, Nariman Point, Mumbai – 400021, Maharashtra, India
• Indian Oversea Bank, Delisle Road Branch, Mumbai – 400011, Maharashtra, India
• Bank of Baroda, Nariman Point Branch, Mumbai – 400021, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2014	As on 31.03.2013
	(Rs. In Millions)
SHORT TERM BORROWINGS:
From Indian Overseas Bank	1.301	0.000
Total	1.301	0.000

Banking Relations :	--
Auditors :
Name :	Dinesh Gandhi and Associates Chartered Accountants
Address :	301A, Aman Chambers, 113, Mama Parmanand Marg, Opera House, Mumbai – 400004, Maharashtra, India
PAN No.:	AAAFD33341
Associates :	Powermaster Torque Systems Private Limited
Subsidiaries :	Powermaster Middle East (FZE)

CAPITAL STRUCTURE

As on: 31.03.2014

Authorized Capital:

No. of Shares	Type	Value	Amount
1470000	Equity Shares	Rs.1/- each	Rs.1.470 Millions
300	Preference shares	Rs.100/- each	Rs. 0.030 Millions
	Total		Rs. 1.500 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
1068103	Equity Shares	Rs.10/- each	Rs. 1.068 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	1.068	1.068	1.068
(b) Reserves & Surplus	965.936	838.013	660.291
(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)	967.004	839.081	661.359
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(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	73.897	13.525	9.133
Total Non-current Liabilities (3)	73.897	13.525	9.133
(4) Current Liabilities
(a) Short term borrowings	1.301	0.000	5.761
(b) Trade payables	53.531	40.950	50.769
(c) Other current liabilities	87.825	144.668	26.396
(d) Short-term provisions	51.457	119.876	62.837
Total Current Liabilities (4)	194.114	305.494	145.763
TOTAL	1235.015	1158.100	816.255
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	207.296	114.352	115.056
(ii) Intangible Assets	0.294	0.000	0.000
(iii) Capital work-in-progress	85.227	56.390	56.845
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	434.545	367.441	328.970
(c) Deferred tax assets (net)	23.740	12.940	9.776
(d) Long-term Loan and Advances	69.830	106.132	50.314
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	820.932	657.255	560.961
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	57.224	27.389	32.271
(c) Trade receivables	89.396	76.968	93.071
(d) Cash and cash equivalents	185.700	257.178	118.892
(e) Short-term loans and advances	8.721	5.466	6.787
(f) Other current assets	73.042	133.844	4.273
Total Current Assets	414.083	500.845	255.294
TOTAL	1235.015	1158.100	816.255

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	460.044	470.138	346.151
		Other Income	98.991	130.128	76.336
		TOTAL (A)	559.035	600.266	422.487
Less	EXPENSES (B)		373.592	362.108	243.797
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		185.443	238.158	178.690
Less	FINANCIAL EXPENSES (D)		0.033	0.045	0.059
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		185.410	238.113	178.631
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.149	11.555	9.670
	PROFIT BEFORE TAX (E-F) (G)		169.261	226.558	168.961
Less	TAX (H)		39.200	42.837	41.941
	PROFIT AFTER TAX (G-H) (I)		130.061	183.721	127.020
Less	EXCEPTIONAL ITEMS		2.121	5.980	0.047
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		680.183	517.442	400.468
Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	15.000	10.000
	BALANCE CARRIED TO THE B/S		798.123	680.183	517.441
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	305.853	335.148	210.204
		Other Earnings	19.845	17.326	15.477
	TOTAL EARNINGS		325.698	352.474	225.681
	IMPORTS
		Raw Materials and components	19.819	31.726	19.057
	TOTAL IMPORTS		19.819	31.726	19.057
	Earnings Per Share (Rs.)		119.78	166.41	118.88

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	23.27	30.61	30.06
Net Profit Margin (PBT/Sales)	(%)	36.79	48.19	48.81
Return on Total Assets (PBT/Total Assets}	(%)	24.48	31.41	40.17
Return on Investment (ROI) (PBT/Networth)		0.18	0.27	0.26
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.01
Current Ratio (Current Asset/Current Liability)		2.13	1.64	1.75

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	1.068	1.068	1.068
Reserves & Surplus	660.291	838.013	965.936
Net worth	661.359	839.081	967.004
long-term borrowings	0.000	0.000	0.000
Short term borrowings	5.761	0.000	1.301
Total borrowings	5.761	0.000	1.301
Debt/Equity ratio	0.009	0.000	0.001

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	346.151	470.138	460.044
		35.819	(2.147)

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	346.151	470.138	460.044
Profit	127.020	183.721	130.061
	36.69%	39.08%	28.27%

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 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)	Yes
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	No

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90165290	30/07/1998	2,200,000.00	STATE BANK OF INDIA	JAIAB CORDE BRANCH, MUMBAI, MAHARASHTRA, INDIA	-
2	90165122	07/12/1996 *	6,000,000.00	ICICI BANKING CORPORATION LIMITED	FREE PRESS HOUSE 215 NARIMAN POINT, BOMBAY, MAHARASHTRA - 400021, INDIA	-
3	90164977	20/11/1992	1,100,000.00	STATE BANK OF INDIA	JACOB CIRCLE BRANCH, MUMBAI, MAHARASHTRA - 400011,  INDIA	-
4	90161748	18/09/1983	190,000.00	STATE BANK OF INDIA	JACOB CIRCLE BRANCH, MUMBAI, MAHARASHTRA - 400011,  INDIA	-
5	90164666	22/07/1982	100,000.00	INDIAN BANK	SAINARA 17 CUFFE PARADE, BOMBAY, MAHARASHTRA - 400005, INDIA	-
6	90164627	09/01/1979	71,880.00	INDIAN OVERSEAS BANK	TODI IND ESTATE, 316 N M JOSHI MARG, MUMBAI, MAHARASHTRA - 400011, INDIA	-
7	90161462	18/11/1977	40,000.00	BANK OF BARODA	COLABA BRANCH EAPERANCA, MUMBAI, MAHARASHTRA - 400039, INDIA	-
8	90164601	13/07/1987 *	15,000.00	INDIAN BANK	SAINARA 17 CUFFE PARADE, COLABA, BOMBAY, MAHARASHTRA - 400005, INDIA	-

FINANCIAL PERFORMANCE

The sales turnover, during the year, was Rs. 460.044 Millions as against Rs. 470.138 Millions in the previous year.

The operating profit for the year at Rs. 185.443 Millions decreased vy 22.13% and Net profit for the year at Rs. 127.940 Milllions decreased by 28.02% as compared to the previous year.

Income tax for the current year at Rs. 50.000 Millions is higher than Rs. 46.000 Millions in the last year.

FUTURE OUTLOOK:

The products of the company have been very well accepted in the domestic and export market. During the year company has seen increase in the demand for its tube tools, tube cleaning and bolting tools products. The company is constantly striving to achieve the perfection in the quality of all the products that it manufactures by taking customers feedback, improving manufacturing practices and encouraging employees to give innovative ideas etc.

The company expects to achieve 20-25% YOY growth in next five years by constantly exploring new markets and launching new products.

FIXED ASSETS:

· Leasehold Lands

· Industrial Premises

· Furniture and Fixtures

· Plant and Machinery

· Tools and Equipments

· Air Conditioners

· Office Equipments

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 judgment 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.61.02
UK Pound	1	Rs.99.43
Euro	1	Rs.77.84

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	JAY

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.