MIRA INFORM REPORT

Report No. :	334264
Report Date :	03.08.2015

IDENTIFICATION DETAILS

Name :	GADRE MARINE EXPORT PRIVATE LIMITED
Registered Office :	Plot No. FP-1, MIDC Mirjole Block, Ratnagiri – 415639, Maharashtra
Tel. No.:	91-2352-230967/ 230533/ 231002/ 231003
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.05.1994
Com. Reg. No.:	11-078366
Capital Investment / Paid-up Capital :	Rs. 244.000 Million
CIN No.: [Company Identification No.]	U51223PN1994PTC078366
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	KLPG00465D
PAN No.: [Permanent Account No.]	AABCG4138R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Marine Products.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 3050000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established private limited company having satisfactory track record. Rating takes into consideration sound financial risk profile of the company marked by increasing revenue base, healthy profitability and adequate networth base in FY14. Overall financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings with usual trade terms and conditions.

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	May 19, 2015

Rating Agency Name	CRISIL
Rating	Short term Rating = A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	May 19, 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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Pritam
Designation :	Sales Manager
Contact No.:	91-2352-230967
Date :	30.07.2015

LOCATIONS

Registered Office/ Factory :	Plot No. FP-1, MIDC Mirjole Block, Ratnagiri – 415639, Maharashtra, India
Tel. No.:	91-2352-230967/ 230533/ 231002/ 231003
Fax No.:	91-2352-230968
E-Mail :	anagha@gadremarine.com info@gadremarine.com deepak@gadremarine.com arjun.gadre@gadremarine.com indiasales@gadremarine.com
Website :	http://www.gadremarine.com
Factories :	Located at: · Gujarat [2 Factories] · Ratnagiri [2 Factories] · Karnataka [1 Factory]

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Arjun Deepak Gadre
Designation :	Managing director
Address :	233 Casa Del. Sol, Opposte Marriott Hotel, Miramar, Panaji – 410003, Goa, India
Date of Birth/Age :	22.12.1975
Date of Appointment :	01.04.2010
PAN No.:	ABDPG6427B
DIN No.:	00767054
Name :	Mrs. Meena Deepak Gadre
Designation :	Director
Address :	725 H, Opposite Power House, Nachane Road, Ratnagiri – 415639, Maharashtra, India
Date of Birth/Age :	12.08.1951
Date of Appointment :	25.07.1999
DIN No.:	00767392
Name :	Mr. Deepak Pandurang Gadre
Designation :	Director
Address :	725 H, Opposite Power House, Nachane Road, Ratnagiri – 415639, Maharashtra, India
Date of Birth/Age :	17.10.1947
Date of Appointment :	12.05.1994
PAN No.:	ABHPG2085K
DIN No.:	00767462

KEY EXECUTIVES

Name :	Mr. Pritam
Designation :	Sales Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Equity Shareholders	No. of Shares
Deepak Pandurang Gadre	1246500
Meena Deepak Gadre	1500
Arjun Deepak Gadre	191000
Anjali Arjun Gadre	1000
Total	1440000

Names of Preference Shareholder	No. of Shares
Deepak Pandurang Gadre	100000
Total	100000

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Marine Products.

Products :

ITC Code No.	Product Descriptions
16042000	Value added Surimi Products

Brand Names :

--

Agencies Held :

--

Exports :

Products :

Finished Goods

Countries :

· European Countries

· Gulf Countries

· USA

Imports :

Products :

Raw Material

Countries :

Asian Countries

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

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 :

Wholesalers, Retailers and End Users

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 :

2000 (Approximately)

Bankers :

Bank Name:	Bank of Baroda
Branch:	K.C. Jain Nagar, Paras Plaza, Near Maruti Mandir, Ratnagiri - 415639, Maharashtra, India
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

· Federal Bank

· IDBI Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Term loans from banks	48.900	3.715
SHORT TERM BORROWINGS
Rupee term loans from banks	994.391	210.063
Foreign currency term loans from banks	52.947	0.000
Working capital loans from banks	0.000	824.402
Other loans and advances	205.330	0.000
Total	1301.568	1038.180

Banking Relations :	--
Auditors :
Name :	R.T. Chaugule and Company Chartered Accountants
Address :	Ayodhya Towers, Building No. 1, 2^nd Floor, 511, E-Ward, Station Road, Kolhapur – 416001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AALPC7614F
Memberships :	--
Collaborators :	--
Enterprises over which key management personnel and their relatives have significant influence :	· Damodar Shivram and Co. · A. D. Gadre (Transport Contractor, Shrimp Farm, AgroTech) · Shamika Arjun Benefit Trust · Gadre Marine Export · Gadre Infotech Private Limited · Gadre Marine Asia Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1,500,000	Equity Shares	Rs. 100/- each	Rs. 150.000 Million
100,000	Preference Shares	Rs. 1000/- each	Rs. 100.000 Million
	Total		Rs. 250.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,440,000	Equity Shares	Rs. 100/- each	Rs. 144.000 Million
100,000	Preference Shares	Rs. 1000/- each	Rs. 100.000 Million
	Total		Rs. 244.000 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	244.000	244.000	244.000
(b) Reserves & Surplus	822.742	567.900	244.206
(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)	1066.742	811.900	488.206
(3) Non-Current Liabilities
(a) Long-term borrowings	226.791	221.606	260.639
(b) Deferred tax liabilities (Net)	19.317	12.834	16.386
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	8.268	4.986	3.050
Total Non-current Liabilities (3)	254.376	239.426	280.075
(4) Current Liabilities
(a) Short term borrowings	1252.668	1034.465	976.103
(b) Trade payables	288.772	156.880	193.896
(c) Other current liabilities	163.838	120.255	100.012
(d) Short-term provisions	25.352	46.343	34.485
Total Current Liabilities (4)	1730.630	1357.943	1304.496
TOTAL	3051.748	2409.269	2072.777
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	898.769	591.039	559.157
(ii) Intangible Assets	14.165	20.823	0.413
(iii) Capital work-in-progress	258.724	178.500	41.263
(iv) Intangible assets under development	0.703	0.851	13.158
(b) Non-current Investments	5.685	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	46.743	33.549	32.871
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1224.789	824.762	646.862
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	397.613	289.458	293.714
(c) Trade receivables	715.680	550.663	555.414
(d) Cash and cash equivalents	344.743	496.731	379.234
(e) Short-term loans and advances	120.671	70.548	87.683
(f) Other current assets	248.252	177.107	109.870
Total Current Assets	1826.959	1584.507	1425.915
TOTAL	3051.748	2409.269	2072.777

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	4895.400	3984.500	3515.200
		Other Income	305.000	265.700	334.500
		TOTAL (A)	5200.400	4250.200	3849.700
Less	EXPENSES
		Manufacturing Expenses	3791.200	3079.500	2912.800
		Selling and Marketing Expenses	449.400	298.100	244.300
		General and Administration Expenses	305.300	223.200	206.100
		Exchange Rate Fluctuation Gain	(15.100)	(63.500)	(1.300)
		TOTAL (B)	4530.800	3537.300	3361.900
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		669.600	712.900	487.800
Less	FINANCIAL EXPENSES (D)		147.100	119.500	96.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		522.500	593.400	391.800
Less/ Add	DEPRECIATION/ AMORTISATION (F)		131.000	110.800	94.400
	PROFIT BEFORE TAX (E-F) (G)		391.500	482.600	297.400
Less	TAX (H)		136.700	158.900	100.500
	PROFIT AFTER TAX (G-H) (I)		254.800	323.700	196.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		567.900	244.200	47.300
	BALANCE CARRIED TO THE B/S		822.700	567.900	244.200
	EARNINGS IN FOREIGN CURRENCY
		Direct Exports on FOB Basis	3954.128	3657.302	3277.156
		100% EOU Export on FOB Basis	493.689	0.000	0.000
	TOTAL EARNINGS		4447.817	3657.302	3277.156
	IMPORTS
		Raw Materials	168.180	134.882	139.688
		Spare Parts	23.096	17.110	12.611
		Capital Goods	83.077	67.369	32.563
		Consumables	0.350	1.827	2.103
	TOTAL IMPORTS		274.703	221.188	186.965
	Earnings Per Share (Rs.)		165.45	210.19	127.86

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	39.715	27.881	55.658
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	467.252	631.415	319.484

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	5.20	8.12	5.60
Operating Profit Margin (PBDIT/Sales)	(%)	13.68	17.89	13.88
Return on Total Assets (PBT/Total Assets}	(%)	14.05	21.64	14.73
Return on Investment (ROI) (PBT/Networth)		0.37	0.59	0.61
Debt Equity Ratio (Total Liability/Networth)		1.42	1.58	2.65
Current Ratio (Current Asset/Current Liability)		1.06	1.17	1.09

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

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	244.000	244.000	244.000
Reserves & Surplus	244.206	567.900	822.742
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	488.206	811.900	1066.742
Long-term borrowings	260.639	221.606	226.791
Short term borrowings	976.103	1034.465	1252.668
CURRENT MATURITIES OF LONG-TERM DEBTS	55.658	27.881	39.715
Total borrowings	1292.400	1283.952	1519.174
Debt/Equity ratio	2.647	1.581	1.424

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	3515.200	3984.500	4895.400
		13.351	22.861

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	3515.200	3984.500	4895.400
Profit	196.900	323.700	254.800
	5.60%	8.12%	5.20%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90082999	19/06/2014 *	1,926,700,000.00	BANK OF BARODA	K.C. JAIN NAGAR, PARAS PLAZA, NEAR MARUTI MANDIR,  RATNAGIRI, MAHARASHTRA - 415639, INDIA	C11162757

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Loans and advances from related parties	177.891	217.891
Total	177.891	217.891

OPERATING HIGHLIGHTS

INDUSTRY REVIEW UPDATES

As per the Marine Products Export Development Authority review, the export of marine products from India has crossed all previous in quantity and rupee terms. Compared to the previous year, seafood exports recorded a growth of 5.98% in quantity, 60.23% in rupee term respectively. The reason for the quantum leap of 60.23% in rupee value is only because of the export growth in the Vanammai aquaculture exports. The Company's share in total export from India, was 3.37% in quantitative terms and 1.55% in value terms. The Company does not deal in Vanammai Shrimp exports.

The future prospects for marine products have created a sensation in the world market because of its high health attributes. Seafood is one of the fastest moving commodity in the world market. The world market for seafood has doubled within last decade. As per MPEDA survey India is gearing up to produce and supply value added products in �convenience packs� by adopting to latest packaging technologies, which would prove India as best in International market. The Company is one of the few Indian companies who are exporting ready to eat and ready to use products to overseas �super markets� and �food service�.

The management is also taking efforts for improve quality of its products and also bringing uniqueness in packaging of products. If future outlook in relation to fish industry is observed; with increase in income there would be increase in consumption of protein intake. The management is viewing the bright future with this outlook; whereby consumption of fish, fish protein would increase. The Company has widened its areas of operations and now has operating units in Maharashtra, Gujarat, and Karnataka. Also it has widened the scope of protein extraction and manufacturing of protein products from fish. The new protein based products from value addition in existing processes are in the pipeline.

And accordingly considering the various areas of operations the Company has devised a Fish Purchase Strategy to achieve the production targets and optimum capacity utilization at various plant. From this fishing season the management has decided to go for direct purchase from landing centers.

NEW BUSINESS ACQUISITION VENTURE

The acquisition process of Marine Food Business from Hindustan Unilever Limited was completed successfully. The Company has purchased the ongoing business from HUL on slump sale basis with consideration of 32.66 Crores toward all the fixed assets, current assets and brands. The Company has paid 6.83 lacs toward legal due diligence, a professional fees of 72.40 lacs paid to Price Water House Coopers Private Limted towards �Project Lilly� appointed mutually by HUL and GMEPL. 2.50 lacs paid towards Third Party valuer independently appointed by GMEPL �Ernst and Young�. The Company has paid near about 1.58 Crores towards stamp duty and registration fees for Chorwad Property.

The operating locations of this business are at Chorwad, Gujarat which now becomes a owned property of the company and includes a conversion arrangement with third party unit viz. Lewis Natural Foods Limited situated at Brahmavar, Karnataka. The total consideration has been paid fully paid on 06thJuly 2013. Now the management is happy to inform you that the export from Chorwad Crabstick plant has been started from July 2013. Also the Company has now transferred various registrations with MPEDA, Excise, and SEEPZ in the Company's name. All necessary permissions to operate this business have been obtained.

The final deed of conveyance of lease land at Chorwad, Gujrat was signed on 21stFebruary 2014. The total land purchased by the Company is of 1,29,493 sq mtrs i.e. 32 Acres. The total consideration for slump sale was inclusive of the 22 acres land consideration and additional land consideration for 10 acres was paid by the Company of Rs.5.43 plus additional registration charges etc. The Company has successfully build its relations with existing employees of HUL and also started its operations right from day one of takeover of the plants. The Company has paid gratuity dues of taken over employees of Rs.6.169 Million with due gratitude towards employees.

POWER GENERATION PROJECT

The Company obtained permission to set up Small Hydro Electric Projects be generate 0.3 MW + power at Pimpalwadi Dubi in Khed Taluka.

The Techno Economic Feasibility Study is successful and DPR is also finalized. Now the Development Purchase Agreement is to be done and after that the project work will commence. The order for purchase of Turbine, Generators of Toshiba, and Japanese Make for Hydro Project has been given, the new 4 turbines of 100 KW power would be purchased and plant layout will be finalized to have best use of the electricity generation during lower water level in canal. The total investment would be round about Rs. 40.000 to 50.000 Million in this project and total generation expected of 15 to 16 lacs units. The management is also planning to have a self-identified project for such electricity generation in the same area. The Company has approached the government for such project approval.

Besides this the Company has purchased one 1.2 MW Wind Turbine. The idea for such power project is that the units generated will be used for welling and banking power for Ratnagiri factory. The wind mill generation was commenced in October 2013 and during the year 2,85,081.97 units has been sold to MSEDCL and income generated of Rs.1.825 Million approx. And the credit has been taken for balance units by the Company for units generated during October to December 2013.

INFORMATION TECHNOLOGY

The existing SAP system modules encompass all the operations and activities of the Company and thus all kind of analytical information is made available at ease. The SAP system controls the operations from all the locational factories from the Servers located in Ratnagiri office and facilitates fast decisions and quick actions for better management of the Company's affairs. There is continuous focus of the management on IT security, efficiency and accuracy of all business applications used in the Company. After assessing the risk to the business from cybercrimes the Company has Firewalls, Antivirus in place and updated. The Company has redundant in-house servers for its information has securely connected the other plants. The Company always takes precautionary measures to recover the data in case of any emergency comes.

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Factory equipments

· Other plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

· Other equipments

· Brands and trade marks

· Computer software

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. 64.01
UK Pound	1	Rs. 99.84
Euro	1	Rs. 70.16

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KIN
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.