MIRA INFORM REPORT

Report No. :	316636
Report Date :	09.04.2015

IDENTIFICATION DETAILS

Name :	HINDUSTAN PENCILS PRIVATE LIMITED (w.e.f.03.10.2007)
Formerly Known As :	HINDUSTAN PENCILS LIMITED
Registered Office :	111/112 Himalaya House, 79 - Palton Road, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.03.1955
Com. Reg. No.:	11-009500
Capital Investment / Paid-up Capital :	Rs.29.837 Million
CIN No.: [Company Identification No.]	U36991MH1955PTC009500
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAAAA1234H
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Primary School Stationery.
No. of Employees :	Information Declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. It has long operational history, renowned brand name and established market position in Indian Stationery Industry. The company has reported good profitability during the financial year 2013-14. The company possesses healthy financial risk profile marked by strong debt-protection measures and adequate liquidity. Trade relations are reported to be fair. Business is active. Payments terms are reported to be usually correct. The company can be considered for business dealing 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating=BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	April, 2014

Rating Agency Name	CRISIL
Rating	Short term rating=A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	April, 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 DENIED BY

Name :	Mr. Shirke
Designation :	Accounts Head
Contact No.:	91-22-22614505
Date :	09.04.2015

LOCATIONS

Registered Office :	111/112 Himalaya House, 79 - Palton Road, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22614505 / 06 / 07
Fax No.:	91-22-22626444 / 226145808
E-Mail :	gbshirke@hindustanpencils.com enquiry@hindustanpencils.com
Website :	http://www.hindustanpencils.com
Area :	8500 sq. ft.
Location :	Owned
Administrative Office :	510, Himalaya House, Palton Road, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22614507
Fax No.:	91-22-22614508
Area :	3000 sq. ft.
Location :	Owned
Factory 1 :	217, GIDC, Umergaon – 396171, Gujarat, India
Tel. No.:	91-260-2562168
Factory 2 :	No.173, Naricrenpalayam Village, Pollachi, Coimbatore – 642004, Tamilnadu, India
Tel. No.:	91-4259-232782
Factory 3 :	Lane No.2, Phse No.14, SIC, Baribrahmna – 181133, Jammu, India

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Kirti Bhaidas Sanghvi
Designation :	Managing Director
Address :	21 Varsha, 69 B, Nepensea Road, Mumbai – 400036, Maharashtra, India
Date of Birth/Age :	19.11.1948
Date of Appointment :	01.06.2007
DIN No.:	00084975
PAN No.:	AAHPS8581P
Name :	Mr. Harendra Bhaidas Sanghvi
Designation :	Managing Director
Address :	25, Sagar Tarang, B Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	06.12.1952
Date of Appointment :	01.06.2007
DIN No.:	00505060
Name :	Mr. Natvarlal H Patel
Designation :	Director
Address :	Plot No.: 89, Flat No. 303, Umbergaon Housing, GIDC, Valsad – 396171, Gujarat, India
Date of Birth/Age :	06.06.1948
Date of Appointment :	21.06.2013
DIN No.:	06627846

KEY EXECUTIVES

Name :	Mr. Shirke
Designation :	Accounts Head

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Equity Shareholders	No. of Shares
Sanghvi B. Kirti, Sanghvi K. Jayshree	681034
Sanghvi K. Bharti and Sanghvi K. Dhruman	56700
Sanghvi B. Harendra and Sanghvi H. Harsha	90135
Sanghvi H. Harsha and Sanghvi B. Harendra	27500
Sanghvi B. Kirti (Karta of Sanghvi B. Kirti, HUF), Sanghvi K. Jayshree	50400
Sanghvi B. Harendra (Karta of Sanghvi B. Harendra HUF), Sanghvi H. Harsha	4500
Sanghvi H. Bhaumik, and Sanghvi B. Harendra	65800
Sanghvi K. Dhruman, and Sanghvi K. Bharti	195833
Sanghvi K. Sanchi, and Sanghvi B. Kirti	62300
Parul-Dhruvi Investment Company Private Limited, India	541200
Harsha-Haren Investment Company Private Limited, India	605800
Hiralaxmi Bhaidas Investment Company Private Limited, India	600000
Sanghvi B. Kishore Sanghvi B. Kirti Sanghvi B. Harendra Trustees : Narmada Nandlal Trust	2500
Total	2983702

Names of Preference Shareholders	No. of Shares
Camco Stationers Private Limited	140000
Bhaumik Colour Private Limited	310000
Apsara Wood Industries Private Limited	100000
Hardik Paint Private Limited	250000
Patel Stationers Private Limited	230000
Total	1030000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Bodies corporate	58.55
Directors or relatives of Directors	41.37
Other top fifty shareholders	0.08
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Primary School Stationery.

Products :

Product Description	Item Code Number
Pencils	960920
Erasers	401692
Sharpeners	821410

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

Customers :

Company Name :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

No. of Employees :

Information declined by the management

Bankers :

Banker Name :	The Shamrao Vithal Co-Operative Bank Limited
Branch :	Maker Towers ‘E’, 1^st Floor, Cuffe parade, Mumbai – 400005, Maharashtra, India
Person Name :	Not Divulged
Contact Number :	Not Divulged
Name of Account Holder :	Not Divulged
Account Number :	Not Divulged
Account Since :	Not Divulged
Average Balance Maintained :	Not Divulged
Credit Facilities Enjoyed :	Not Divulged
Account Operation :	Not Divulged
Remark :	Not Divulged

· The Saraswat Co-Operative Bank Limited, SME Nariman Point Branch, Mittal Court, A Wing, 1^st Floor, Vidhan Bhavan Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

· The Saraswat Co- Operative Bank Limited, Fort Branch, 373, Sailor Building, Opposite Hutatma Chowk, D N Road Fort, Mumbai – 400001, Maharashtra, India

· The Saraswat Co-Operative Bank Limited, Madhukosh, Saraswat Bank Building, S. V. Sonani Path, Girgaum, Mumbai – 400004, Maharashtra, India

· HDFC Bank Limited, Foundation of Medical Research Building, Opposite Potdar Hospital Worli, Mumbai – 400018, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loans from banks	84.547	103.108
Short Term Borrowings
Term loans from banks	529.278	517.074
Total	613.825	620.182

Auditors :
Name :	Chaturvedi and Shah Chartered Accountants
Address :	714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India
PAN No.:	AAAFC0662N
Membership :	--
Subsidiary Company :	· Hindustan Pencils Lanka (Private) Limited
Enterprises owned or significantly influenced by key management personnel or their relatives :	· Apsara Art Materials Private Limited · Apsara Plastic Private Limited · Kirti Stationers Private Limited · Write Fine Enterprises Private Limited · Sanghvi Management Services Private Limited · Umesh Pencils Processors Private Limited · Bhaumik Colours Private Limited · Hardik Paints Private Limited · Nachik Colours Private Limited · Patel Stationers Private Limited · Nataraj Wood Industries Private Limited · Apsara Wood Industries Private Limited · Sanghvi Agencies · Sanghvi Enterprises · Sanghvi Distributors · Laxmi Distributors · Jayshree Kirti Investment Company Private Limited · Harsha Haren Investment Company Private Limited · Sanghvi Woods Private Limited · Camco Stationers Private Limited · Kirti B Sanghvi (HUF)

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Million
5000000	Preference Shares	Rs.10/- each	Rs.50.000 Million
	Total		Rs.90.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2983702	Equity Shares	Rs.10/- each	Rs.29.837 Million
1030000	Preference Shares	Rs.10/- each	Rs.10.300 Million
	Total		Rs.40.137 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2983702	Equity Shares	Rs.10/- each	Rs.29.837 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	29.837	29.837	29.837
(b) Reserves & Surplus	1066.722	978.641	847.194
(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)	1096.559	1008.478	877.031
(3) Non-Current Liabilities
(a) long-term borrowings	188.086	169.514	241.209
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	441.000	441.000	375.100
(d) long-term provisions	25.850	43.790	1.648
Total Non-current Liabilities (3)	654.936	654.304	617.957
(4) Current Liabilities
(a) Short term borrowings	529.278	517.074	219.872
(b) Trade payables	309.154	201.723	220.116
(c) Other current liabilities	220.781	207.970	184.540
(d) Short-term provisions	142.123	110.684	49.444
Total Current Liabilities (4)	1201.336	1037.451	673.972
TOTAL	2952.831	2700.233	2168.960
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	783.227	802.622	777.426
(ii) Intangible Assets	5.283	4.353	6.869
(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	238.831	224.164	211.516
(c) Deferred tax assets (net)	15.914	13.081	18.044
(d) Long-term Loan and Advances	52.535	41.014	29.409
(e) Other Non-current assets	15.002	13.569	11.965
Total Non-Current Assets	1110.792	1098.803	1055.229
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1555.003	1260.670	935.592
(c) Trade receivables	143.812	129.200	78.568
(d) Cash and cash equivalents	20.666	110.457	41.114
(e) Short-term loans and advances	102.912	81.969	38.680
(f) Other current assets	19.646	19.134	19.777
Total Current Assets	1842.039	1601.430	1113.731
TOTAL	2952.831	2700.233	2168.960

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	N.A	N.A	N.A
		Other Income	N.A	N.A	N.A
		TOTAL	N.A	N.A	N.A
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	NA
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		310.297	367.188	125.686
Less	DEPRECIATION/ AMORTISATION		176.215	170.550	171.956
	PROFIT / (LOSS) BEFORE TAX		134.082	196.638	(46.270)
Less	TAX		42.201	60.908	(11.878)
	PROFIT / (LOSS) AFTER TAX		91.881	135.730	(34.392)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		666.464	548.279	586.139
	APPROPRIATIONS
		Proposed Dividend	2.984	2.984	2.984
		Dividend Distribution	0.507	0.484	0.484
		General Reserve	9.200	13.600	0.000
		Excess Provision of Income Tax	0.000	1.060	0.000
		Short Provision of Fringe Benefit Tax	0.000	1.536	0.000
		Short Provision of Wealth Tax	0.000	0.017	0.000
		Excess Provision of Income Tax	0.127	0.016	0.000
	BALANCE CARRIED TO THE B/S		745.655	666.464	548.279
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	1030.666	762.446	520.415
	TOTAL EARNINGS		1030.666	762.446	520.415
	IMPORTS
		Raw Materials	579.071	334.754
		Finished Goods	10.801	1.111	363.497
		Consumable Stores	29.342	7.958
		Capital Goods	100.327	114.073
	TOTAL IMPORTS		719.541	457.896	363.497
	Earnings Per Share (Rs.)		30.79	45.49	N.A

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets)	(%)	4.97	7.98	(2.39)
Return on Investment (ROI) (PBT/Networth)		0.12	0.19	(0.05)
Debt Equity Ratio (Total Debt /Networth)		0.65	0.68	0.53
Current Ratio (Current Asset/Current Liability)		1.53	1.54	1.65

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	29.837	29.837	29.837
Reserves & Surplus	847.194	978.641	1066.722
Share Application money pending allotment	0.000	0.000	0.000
Net worth	877.031	1008.478	1096.559
long-term borrowings	241.209	169.514	188.086
Short term borrowings	219.872	517.074	529.278
Total borrowings	461.081	686.588	717.364
Debt/Equity ratio	0.526	0.681	0.654

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Rs. In Million

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Current maturities of long term debt	0.000	0.000	174.649

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	No
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	----------
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	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Loans and advances from related parties	103.539	66.406
Total	103.539	66.406

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10553555	27/02/2015	50,000,000.00	The Saraswat Cooperative Bank Ltd	SME Nariman Point Branch, Mittal Court A Wing, 1st Floor, Vidhan Bhavan Marg, Nariman Point, Mumbai, Maharashtra - 400021, India	C45844792
2	10476295	19/01/2015 *	100,000,000.00	The Saraswat Cooperative Bank Ltd	SME Nariman Point Branch, Mittal Court A Wing, 1st Floor, Vidhan Bhavan Marg, Nariman Point, Mumbai, Maharashtra - 400021, India	C40632226
3	10465523	04/12/2013	259,420,000.00	The Saraswat Cooperative Bank Ltd	SME Nariman Point Branch, Mittal Court A Wing, 1st Floor, Vidhan Bhavan Marg, Nariman Point, Mumbai, Maharashtra - 400021, India	B91693051
4	10456244	11/10/2013	100,000,000.00	The Shamrao Vithal Co-operative Bank Ltd.	SVC Tower, Nehru Road,, Santacruz (East), Mumbai, Maharashtra - 400055, India	B88025473
5	10266946	21/01/2011	107,000,000.00	The Shamrao Vithal Co-operative Bank Ltd.	Maker Towers 'E',1st floor, Cuffe Parade, Mumbai, Maharashtra - 400005, India	B05495379
6	10261109	15/12/2010	171,100,000.00	The Saraswat Co-op Bank Ltd	Fort Branch, 373, Sailor Building, Opp Hutatma Chowk, D N Road Fort, Mumbai, Maharashtra - 400001, India	B03048527
7	10245013	23/09/2010	17,558,000.00	The Shamrao Vithal Co-operative Bank Ltd.	Maker Towers 'E',1st floor,, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	A96624044
8	10202319	11/02/2010	23,500,000.00	Standard Chartered Bank	90, MAHATMA GANDHI ROAD,, FORT,, MUMBAI, Maharashtra - 400001, India	A79032918
9	10158349	21/01/2011 *	130,542,000.00	The Shamrao Vithal Co-operative Bank Ltd.	Maker Towers 'E',1st floor,, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	B05493333
10	10158300	07/05/2009	36,600,000.00	The Shamrao Vithal Co-operative Bank Ltd.	Maker Towers 'E',1st floor,, Cuffe Parade,, Mumbai, Maharashtra - 400005, India	A62541206
11	10076613	12/02/2007	46,100,000.00	The Saraswat Co-op. Bank Ltd.	Madhukosh, Saraswat Bank Building,, S. V. Sovani Path, Girgaum,, Mumbai, Maharashtra - 400004, India	A10531937
12	10004480	08/05/2006	68,700,000.00	The Saraswat Co-op Bank Ltd	Fort Branch, Sailor Bldg, 373/375, D N Road, Fort, Mumbai, Maharashtra - 400001, India	A00833426
13	90241378	05/05/2005 *	7,500,000.00	The Saraswat Co-Op Bank Ltd.	Fort Branch Sailor Build. 373-375 D.N. Road, Opp. Hutatma Chowk Fort, Mumbai, Maharashtra - 400001, India	-
14	80055069	28/07/2003	48,600,000.00	The Jammu & kashmir Bank Ltd.	B.O. I/C.Bari Brahmana,, Jammu, Jammu and Kashmir - 181133, INDIA	-
15	90240204	19/03/2013 *	740,395,000.00	The Saraswat Cooperative Bank Ltd (Lead Bankers)	SME Nariman Point Branch, Mittal Court A Wing, 1st Floor, Vidhan Bhavan Marg, Nariman Point, Mumbai, Maharashtra - 400021, India	B72158066
16	90238807	23/12/2014 *	1,181,295,000.00	The Saraswat Cooperative Bank Ltd (Lead Bankers)	SME Nariman Point Branch, Mittal Court A Wing, 1st Floor, Vidhan Bhavan Marg, Nariman Point, Mumbai, Maharashtra - 400021, India	C40631483

*Date of modification Charges

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Office equipment

· Computer software

· Know-how

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.62.33
UK Pound	1	Rs.92.53
Euro	1	Rs.67.60

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	SUC
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.