MIRA INFORM REPORT

Report No. :	318656
Report Date :	24.04.2015

IDENTIFICATION DETAILS

Name :		DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED (w.e.f. 23.04.2010)

Formerly Known As :		DECCAN FINE CHEMICALS (INDIA) LIMITED (w.e.f. 11.02.2008) DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED

Registered Office :		8-2-293/82/A/74A, Road No. 9, Jubilee Hills, Hyderabad – 500033, Telangana

Tel. No.:	91-40-23601035

Country :		India

Financials (as on) :		31.03.2014

Date of Incorporation :		24.08.2006

Com. Reg. No.:		01-050967

Capital Investment / Paid-up Capital :		Rs. 468.700 Million

CIN No.: [Company Identification No.]		U24117TG2006PTC050967

TAN No.: [Tax Deduction & Collection Account No.]		HYDD03907B

PAN No.: [Permanent Account No.]		AACCD9205D

Legal Form :		Private Limited Liability Company

Line of Business :		Manufacture of Agro Chemicals Active Ingredients and Fine Chemicals

No. of Employees :		Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 3800000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well-established company having fine track record. For the financial year 2014 company reported an operating income of Rs. 5369.341 Million with decent topline growth of 37.15% (approx.). Further company has maintained profitability margins at 13.97% with debt to equity ratio of 1.11 times. Rating also reflect Deccan’s established presence in the agro-chemical business supported by its promoter’s extensive experience in the agro-chemical industry and decent business risk profile of the company. Trade relations as reported as fair. Business is active. Payments are reported to be regular and as per commitment. In view of decent operational performance, the company can be considered good for normal 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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

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	Moderating degree of safety and moderate credit risk
Date	27.03.2015

Rating Agency Name	CRISIL
Rating	Short term rating = A2
Rating Explanation	Strong degree of safety and low credit risk
Date	27.03.2015

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. Sathya
Designation :	Admin.
Contact No.:	91-40-23601038
Date :	23.04.2015

LOCATIONS

Registered Office :	8-2-293/82/A/74A, Road No. 9, Jubilee Hills, Hyderabad – 500033, Telangana, india
Tel. No.:	91-40-23601035
Fax No.:	91-40-23601071
E-Mail :	l.d.reddy@gmail.com gayatri@deccanchemicals.com aspardhasaradhi@nagarjunaagrichem.com hemanath@deccanchemicals.com aji.george@deccanchemicals.com
Website :	http://www.deccanchemicals.com

Factory :	Kesavaram, Ventakanagaram Post, Payakaraopeta Mandal, District Visakhapatnam - 531127, Andhra Pradesh, India

DIRECTORS

AS ON 07.06.2014

Name :

Mr. Gokaraju Satyanarayana

Designation :

Managing Director

Address :

Plot No 211, Road No 14, Prashasan Nagar, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Appointment :

29.02.2012

DIN No.:

00524152

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	L24219TG1986PLC016607	NAGARJUNA AGRICHEM LIMITED	Director	16/09/2008	03/02/1998	28/01/2009	Active	NO
2	U24230MH1974PTC189863	VIJAYALAKSHMI INSECTICIDES AND PESTICIDES PRIVATE LIMITED	Director	03/02/1998	03/02/1998	26/03/2007	Amalgamated	NO
3	L24219AP1993PLC015963	BHAGIRADHA CHEMICALS AND INDUSTRIES LIMITED	Director	29/01/1999	29/01/1999	30/11/2008	Active	NO
4	U80100TG1995NPL022409	NAGARJUNA AGRICULTURAL RESEARCH AND DEVELOPMENT INSTITUTE	Director	02/09/2000	02/09/2000	23/02/2009	Active	NO
5	U31909KA1996PLC019918	UDUPI POWER CORPORATION LIMITED	Director	28/01/2002	28/01/2002	03/08/2007	Active	NO
6	U01122TG2000PTC034192	BIJAM BIOSCIENCES PRIVATE LIMITED	Director	03/03/2003	03/03/2003	21/11/2008	Active	NO
7	U74140TG2003PTC041263	BIJAM PRIVATE LIMITED	Director	25/07/2003	25/07/2003	21/11/2008	Active	NO
8	U00337KA1993PLC014694	JAIPRAKASH ENGINEERING AND STEEL COMPANY LIMITED	Director	01/09/2003	01/09/2003	19/12/2008	Active	NO
9	U24129MH2001PLC210070	NAGARJUNA CORPORATION LIMITED	Director	28/07/2006	28/07/2006	21/11/2008	Amalgamated	NO
10	U24117TG2006PTC050967	DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED	Managing director	29/02/2012	03/06/2008	-	Active	NO

Name :

Vamsi Gokaraju

Designation :

Whole Time Director

Address :

8-2-293/82/A/1355, Road No. 45, Jubilee Hills Hyderabad – 500033, Andhra Pradesh, India

Date of Appointment :

29.02.2012

DIN No.:

02479839

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	U24230MH1974PTC189863	VIJAYALAKSHMI INSECTICIDES AND PESTICIDES PRIVATE LIMITED	DIRECTOR	03-02-1998	03-02-1998	26-03-2007	AMALGAMATED	NO
2	L24219TG1986PLC016607	NAGARJUNA AGRICHEM LIMITED	DIRECTOR	16-09-2008	03-02-1998	28-01-2009	ACTIVE	NO
3	L24219AP1993PLC015963	BHAGIRADHA CHEMICALS AND INDUSTRIES LIMITED	DIRECTOR	29-01-1999	29-01-1999	30-11-2008	ACTIVE	NO
4	U80100TG1995NPL022409	NAGARJUNA AGRICULTURAL RESEARCH AND DEVELOPMENT INSTITUTE	DIRECTOR	02-09-2000	02-09-2000	23-02-2009	ACTIVE	NO
5	U31909KA1996PLC019918	UDUPI POWER CORPORATION LIMITED	DIRECTOR	28-01-2002	28-01-2002	03-08-2007	ACTIVE	NO
6	U01122TG2000PTC034192	BIJAM BIOSCIENCES PRIVATE LIMITED	DIRECTOR	03-03-2003	03-03-2003	21-11-2008	ACTIVE	NO
7	U74140TG2003PTC041263	BEACH FARM PRIVATE LIMITED	DIRECTOR	25-07-2003	25-07-2003	21-11-2008	ACTIVE	NO
8	U00337KA1993PLC014694	JAIPRAKASH ENGINEERING AND STEEL COMPANY LIMITED	DIRECTOR	01-09-2003	01-09-2003	19-12-2008	ACTIVE	NO
9	U24129MH2001PLC210070	NAGARJUNA CORPORATION LIMITED	DIRECTOR	28-07-2006	28-07-2006	21-11-2008	AMALGAMATED	NO
10	U24117TG2006PTC050967	DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED	MANAGING DIRECTOR	29-02-2012	03-06-2008	-	ACTIVE	NO

Name :

Kanumuri Venkata Lakshmipathi Raju

Designation :

Director

Address :

Plot No. 532. 10^th Line, P.N. Colony, Srikakulam, 532004, Telangana, India

Date of Appointment :

24.12.2007

DIN No.:

02000929

Name :

Mr. Robert Nicolas Ernest Durand

Designation :

Director

Address :

34 Rue De Lectoure, Saint Louis – 68300, France

Date of Birth/Age :

19.07.1947

Date of Appointment :

12.09.2012

DIN No.:

06393075

KEY EXECUTIVES

Name :	Mr. Sathya
Designation :	Admin

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 18.06.2013

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 18.06.2013

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	47.89
Directors or relatives of directors	44.07
Others	8.04
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of Agro Chemicals Active Ingredients and Fine Chemicals

Brand Names :	--

Agencies Held :	--

Exports :	--

Imports :	--

Terms :	--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

Not Divulged

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Canara Bank, 54-10-10-1/6, Overseas Bank Branch, Resapuvanipalem, Visakhapat, Visakhapatnam - 530020, Andhra Pradesh, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee Term Loans from Banks (Term Loans and Working Capital Loans from the banks are personally guaranteed by Sri Vamsi Gokaraju and Sri KVLP)	188.468	266.812
Loans repayable on demand	136.033	210.083
SHORT TERM BORROWINGS
Other Loans and Advance, others	763.164	293.834
Total	1087.665	770.729
NOTE LONG-TERM BORROWINGS The rupee Term Loans availed from Canara Bank, Overseas Branch, Visakhapatnam and Andhra Bank, Akkayapalem, Visakhapatnam under Consortium arrangement are secured by way of equitable mortgage by deposit of title deeds of the Company’s immovable properties both present and future and by way of first charge on all Fixed Assets of the Company as a primary security and hypothecation of movable properties of the Company ranking pari-passu and second charge on the current assets of the company consisting of Stock-in-trade, Book Debts and Stores and Spares. SHORT TERM BORROWINGS The rupee Term Loans availed from Canara Bank, Overseas Branch, Visakhapatnam and Andhra Bank, Akkayapalem, Visakhapatnam under Consortium arrangement are secured by way of equitable mortgage by deposit of title deeds of the Company’s immovable properties both present and future and by way of first charge on all Fixed Assets of the Company as a primary security and hypothecation of movable properties of the Company ranking pari-passu and second charge on the current assets of the company consisting of Stock-in-trade, Book Debts and Stores and Spares.


Banking Relations :	--

Auditors :
Name :	Saranga Pani and Company Chartered Accountants
Address :	1-1-719,Gandhi Nagar, Hyderabad 500080, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	ABZPC2635H

Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

65,000,000	Equity Shares	Rs. 10/- each	Rs. 650.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

46,870,000	Equity Shares	Rs. 10/- each	Rs. 468.700 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	468.700	468.700	430.000
(b) Reserves & Surplus	863.551	113.053	(318.032)
(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)	1332.251	581.753	111.968

(3) Non-Current Liabilities
(a) Long-term borrowings	723.506	587.244	776.870
(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	0.000	0.000	0.000
Total Non-current Liabilities (3)	723.506	587.244	776.870

(4) Current Liabilities
(a) Short term borrowings	763.164	293.834	263.191
(b) Trade payables	2122.128	1298.942	1024.232
(c) Other current liabilities	388.925	447.877	423.534
(d) Short-term provisions	236.100	73.201	0.447
Total Current Liabilities (4)	3510.317	2113.854	1711.404

TOTAL	5566.074	3282.851	2600.242

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2801.296	1912.686	1390.852
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	52.273	0.000	190.583
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	2853.569	1912.686	1581.435

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1194.338	501.240	416.888
(c) Trade receivables	1006.689	646.035	0.000
(d) Cash and cash equivalents	279.859	77.459	191.155
(e) Short-term loans and advances	228.088	142.186	45.185
(f) Other current assets	3.531	3.245	365.579
Total Current Assets	2712.505	1370.165	1018.807

TOTAL	5566.074	3282.851	2600.242

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	5369.341	3374.520	1249.403
		Other Income	20.943	14.707	1.287
		TOTAL (A)	5390.284	3389.227	1250.690

Less	EXPENSES
		TOTAL (B)	3956.429	2590.925	1092.945

	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1433.855	798.302	157.745

Less	FINANCIAL EXPENSES (D)		224.547	176.639	200.074

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1209.308	621.663	(42.329)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		232.933	156.210	128.302

	PROFIT BEFORE TAX (E-F) (G)		976.375	465.453	(170.631)

Less	TAX (H)		225.878	70.475	0.447

	PROFIT AFTER TAX (G-H) (I)		750.497	394.978	(171.078)

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		76.946	(318.032)	(146.954)

	BALANCE CARRIED TO THE B/S		827.443	76.946	(318.032)
	FOREIGN EXCHANGE EARNING		4639.131	2656.315	1116.498

	Earnings Per Share (Rs.)		16.01	8.43	(3.98)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	13.98	11.70	(13.69)

Operating Profit Margin (PBDIT/Sales)	(%)	26.70	23.66	12.63

Return on Total Assets (PBT/Total Assets}	(%)	17.71	14.18	(7.08)

Return on Investment (ROI) (PBT/Networth)		0.73	0.80	(1.52)

Debt Equity Ratio (Total Debt/Networth)		1.12	1.51	9.29

Current Ratio (Current Asset/Current Liability)		0.77	0.65	0.60

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particulars	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	430.000	468.700	468.700
Reserves & Surplus	(318.032)	113.053	863.551
Net worth	111.968	581.753	1332.251

Long-term borrowings	776.870	587.244	723.506
Short term borrowings	263.191	293.834	763.164
Total borrowings	1040.061	881.078	1486.670
Debt/Equity ratio	9.289	1.515	1.116

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1249.403	3374.520	5369.341
		170.091	59.114

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1249.403	3374.520	5369.341
Profit	(171.078)	394.978	750.497
	(13.69%)	11.70%	13.98%

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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10535622	21/11/2014 *	150,000,000.00	KOTAK MAHINDRA BANK LIMITED	27BKC, C 27, G BLOCK, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI - 400051, MAHARASHTRA, INDIA	C36852085
2	10505135	30/05/2014	2,726,300,000.00	CANARA BANK	54-10-10-1/6,, OVERSEAS BANK BRANCH, RESAPUVANIPA LEM, VISAKHAPATNAM - 530020, ANDHRA PRADESH, INDIA	C08318859
3	10175735	13/06/2014 *	2,927,100,000.00	CANARA BANK	54-10-10-1/6,, OVERSEAS BANK BRANCH, RESAPUVANIPALEM, VISAKHAPATNAM - 530020, ANDHRA PRADESH, INDIA	C21953088

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Loans Payable on Demand from Others	399.005	110.349
Total	399.005	110.349

CORPORATE INFORMATION:

Subject is a 100% EOU domiciled in India. It is engaged in the manufacture of Agro Chemicals Active Ingredients and Fine Chemicals at Tuni, Andhra Pradesh.

OPERATIONS

The production facilities of the company are operating at design capacity and business is steadily growing. Several new products have been manufactured successfully meeting desired quality standards. Company is continuing to make necessary capital investments at the Tuni factory site in order to further grow the business.

FIXED ASSETS:

Tangible assets

Land
Buildings
Office Building
Plant and Equipment
Factory Equipment’s
Furniture and Fixtures
Vehicles
Office Equipment
Computer Equipment’s
Other Equipment’s

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. 63.19
UK Pound	1	Rs. 94.94
Euro	1	Rs. 67.66

INFORMATION DETAILS

Information Gathered by :	GYT

Analysis Done by :	KAR

Report Prepared by :	ARC

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		54

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.

MIRA INFORM REPORT

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