MIRA INFORM REPORT

Report No. :	336528
Report Date :	14.08.2015

IDENTIFICATION DETAILS

Name :	MILLTEC MACHINERY PRIVATE LIMITED
Registered Office :	No. 51/A, Phase 1, KIADB Industrial Area, Bommasandra, Bangalore - 560099, Karnataka
Tel. No.:	91-80-27831128 / 27835169 / 70 / 71 / 72 / 73 / 28016666 / 28016575
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.08.1998
Com. Reg. No.:	08-024139
Capital Investment / Paid-up Capital :	Rs.30.000 Million
CIN No.: [Company Identification No.]	U85110KA1998PTC024139
TAN No.: [Tax Deduction & Collection Account No.]	BLRM02300E
PAN No.: [Permanent Account No.]	AABCM6912D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader and Exporter of Food Processing Machinery.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 850000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having a good track record. The financial position of the company is sound and healthy. Trade relations are reported as decent. Business is active. Payments terms are reported to be regular and as per commitments. The company can be considered good 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 – 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	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 (GENERAL DETAILS)

Name :	Mr. Giriraj
Designation :	Finance Manager
Contact No.:	91-80-28016666
Date :	24.07.2015

LOCATIONS

Registered Office :	No. 51/A, Phase 1, KIADB Industrial Area, Bommasandra, Bangalore - 560099, Karnataka, India
Tel. No.:	91-80-27831128 / 27835169 / 70 / 71 / 72 / 73 / 28016666 / 28016575
Mobile No.:	91-9845128432 (Mr. Ravindranath)
Fax No.:	91-80-27832723 / 27831129
E-Mail :	milltec@milltecmachinery.com finance@milltecmachinery.com marketing@milltecmachinery.com salescentralindia@milltecmachinery.com exports@milltecmachinery.com Pradeep.purwar@csppa.in
Website :	http://www.milltecmachinery.com
Location :	Owned
Locality :	Industrial

DIRECTORS

As on 11.11.2014

Name :

Mr. Ramaiah Ravindranath

Designation :

Whole Time Director

Address :

253, Prestige Ozone Varthur Road, White Field, Bangalore – 560066, Karnataka, India

Date of Birth/Age :

20.07.1963

Qualification :

BE

Date of Appointment :

28.08.1998

PAN No.:

ADKPR7278Q

DIN No.:

00212085

Name :

Mr. Rajendran Joghee

Designation :

Whole Time Director

Address :

No. A-251, Prestige Ozone Varthur Road, White Field, Bangalore – 560066, Karnataka, India

Date of Birth/Age :

04.06.1996

Qualification :

BE

Date of Appointment :

05.06.2013

PAN No.:

ADAPR8855R

DIN No.:

02505486

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	U85110KA1998PTC024139	MILLTEC MACHINERY PRIVATE LIMITED	Whole-time director	05/06/2013	28/08/1998	-	Active	NO
2	U51211KA2002PTC031083	MILLTEC OUTSOURCING PRIVATE LIMITED	Director	03/10/2002	03/10/2002	-	Amalgamated	NO
3	U02922KA2004PTC033993	MILLTEC INDUSTRIES BANGALORE PRIVATE LIMITED	Whole-time director	23/07/2013	23/06/2006	-	Amalgamated	NO
4	U31100KA2009PTC049840	M.S.SORTERS PRIVATE LIMITED	Director	29/09/2010	13/05/2009	-	Active	NO
5	U29242KA2010PTC052830	MTS Industries Private Limited	Director	11/03/2010	11/03/2010	-	Strike off	NO
6	U65923TZ2011PTC016739	BHOJAN MICROFINANCE PRIVATE LIMITED	Additional director	21/02/2011	21/02/2011	-	Active	NO
7	U40107KA2012PTC064264	NATURA AGRO FUELS PRIVATE LIMITED	Director	06/06/2012	06/06/2012	-	Active	NO
8	U74999TZ2012PTC018364	NALS OUTDOORS INDIA PRIVATE LIMITED	Director	13/06/2012	13/06/2012	-	Active	NO
9	U51900KA2012PTC064409	.NATURA ENERGY TRADING CORPORATION PRIVATE LIMITED	Director	15/06/2012	15/06/2012	-	Active	NO
10	U31900KA2013PTC070549	AGRI POWER AND ENGINEERING SOLUTIONS PRIVATE LIMITED	Director	11/11/2014	14/08/2013	28/11/2014	Active	NO

Name :

Mr. Dinesh Kumar Tiwari

Designation :

Director

Address :

C 2607, Oberoi Splendor, Opposite Majas Depot, JVLR, Andheri (East), Mumbai – 400060, Maharashtra, India

Date of Birth/Age :

14.01.1970

Date of Appointment :

05.06.2013

DIN No.:

03401020

Name :

Mr. Prabhakar Tadepalli

Designation :

Director

Address :

No.186, Prestige Ozone, Varthur Whitefield Road, Bangalore – 560066, Karnataka, India

Date of Birth/Age :

28.08.1965

Date of Appointment :

11.11.2014

DIN No.:

01429520

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	U64202KA2004PTC034322	TYFONE COMMUNICATIONS DEVELOPMENT (INDIA) PRIVATE LIMITED	Managing director	14/07/2004	14/07/2004	-	Active	NO
2	U02922KA2004PTC033993	MILLTEC INDUSTRIES BANGALORE PRIVATE LIMITED	Director	23/07/2013	23/07/2013	-	Amalgamated	NO
3	U85110KA1998PTC024139	MILLTEC MACHINERY PRIVATE LIMITED	Director	11/11/2014	23/07/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Giriraj
Designation :	Finance Manager
Name :	Mr. Rajendra Joghee
Designation :	Chairman
Name :	Mr. Ramaiah Ravindranath
Designation :	Director and Chief Executive Officer
Name :	Mr. Pradeep Kumar Purwar
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 11.11.2014

Names of Shareholders	No. of Shares
Ramaiah Ravindranath	630612
Rajendran Joghee	630612
Manjula Rajendran	150000
Uma Rachappa	150000
Multiples Private Equity Fund, India	382050
Multiples Private Equity Fund I Limited, India	1117950
Total	3061224

Equity Share Break up (Percentage of Total Equity)

As on 11.11.2014

Category	Percentage
Venture Capital	49.00
Directors or relatives of Directors	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader and Exporter of Food Processing Machinery.

Products :

Product Description	ITC Code
Food Processing Machinery	84371000

• Pre-Cleaning Equipment
• Rice Hulling Equipment
• Rice Polishing Equipment
• Rice Grading Equipment

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Available

Imports :

Not Available

Terms :

Not Available

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	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 :

Reference :	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 :

Bank Name	State Bank of India
Branch	Electronic City Branch, Off Hosur Road, Electronic City Bangalore, Karnataka, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	91-80-28520967 (Management Non Co-Operative)
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term Loan	265.735	0.000
Total	265.735	0.000

Financial Institutions :	L and T Finance Limited, L and T house, Ballard Estate, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	Deloitte Haskins and Sells LLP Chartered Accountants
Address :	Deloitte Centre, Anchorage II 100/2, Richmond Road, Bangalore – 560025, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AACFD4815A
Memberships :	Not Available
Collaborators :	Not Available
Subsidiaries :	M. S. Sorters Private Limited (U31100KA2009PTC049840)
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Milltec Industries Bangalore Private Limited, India (U02922KA2004PTC033993)

CAPITAL STRUCTURE

As on 11.11.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
6100000	Equity Shares	Rs.10/- each	Rs.61.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3061224	Equity Shares	Rs.10/- each	Rs.30.612 Million

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
6100000	Equity Shares	Rs.10/- each	Rs.61.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 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	30.000	30.000	30.000
(b) Reserves & Surplus	268.368	423.013	437.855
(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)	298.368	453.013	467.855
(3) Non-Current Liabilities
(a) long-term borrowings	265.735	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.698	0.837
(c) Other long term liabilities	35.275	1.375	1.640
(d) long-term provisions	7.607	2.826	0.000
Total Non-current Liabilities (3)	308.617	4.899	2.477
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	191.254	93.842	75.753
(c) Other current liabilities	193.672	68.332	134.106
(d) Short-term provisions	7.817	245.045	107.949
Total Current Liabilities (4)	392.743	407.219	317.808
TOTAL	999.728	865.131	788.140
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	299.080	72.022	77.578
(ii) Intangible Assets	0.169	0.225	0.300
(iii) Capital work-in-progress	8.454	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	12.236	1.236	224.634
(c) Deferred tax assets (net)	7.799	0.000	0.000
(d) Long-term Loan and Advances	60.572	31.081	30.761
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	388.310	104.564	333.273
(2) Current assets
(a) Current investments	4.313	275.016	0.000
(b) Inventories	206.737	120.344	133.441
(c) Trade receivables	272.603	264.311	176.938
(d) Cash and cash equivalents	63.723	43.852	32.434
(e) Short-term loans and advances	50.967	49.320	0.348
(f) Other current assets	13.075	7.724	111.706
Total Current Assets	611.418	760.567	454.867
TOTAL	999.728	865.131	788.140

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	TOTAL INCOME	1848.059	1572.641	1246.541
Less	EXPENSES	1420.381	1255.835	1061.967 (Including financial depreciation and expenses)
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	427.678	316.806
Less	FINANCIAL EXPENSES	52.470	0.371
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	375.208	316.435
Less	DEPRECIATION/ AMORTISATION	25.454	8.599
	PROFIT/ (LOSS) BEFORE TAX	349.754	307.836	184.574
Less	TAX	125.605	93.882	56.130
	PROFIT/ (LOSS) AFTER TAX	224.149	213.954	128.444
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	67.202	Nil	Nil
	TOTAL EARNINGS	67.202	Nil	Nil
	Earnings / (Loss) Per Share (Rs.)	74.72	71.32	42.81

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	81.765	0.000	NA
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	348.517	0.000	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	12.13	13.60	10.30
Operating Profit Margin (PBIDT/Sales)	(%)	23.14	20.14	NA
Return on Total Assets (PBT/Total Assets}	(%)	36.01	35.63	32.75
Return on Investment (ROI) (PBT/Networth)		1.17	0.68	0.39
Debt Equity Ratio (Total Debt /Networth)		1.16	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.56	1.87	1.43

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	30.000	30.000	30.000
Reserves & Surplus	437.855	423.013	268.368
Net worth	467.855	453.013	298.368
long-term borrowings	0.000	0.000	265.735
Total borrowings	0.000	0.000	347.500
Debt/Equity ratio	0.000	0.000	1.165

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)
Total Income	1246.541	1572.641	1848.059
		26.160	17.513

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	1246.541	1572.641	1848.059
Profit	128.444	213.954	224.149
	10.30%	13.60%	12.13%

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)	No
16	No. of employees	No
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	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

PERFORMANCE AND FUTURE OUTLOOK

The last financial year was a year of consolidation for the Company. The Company undertook several initiatives to lay the foundation for a strong growth path in the coming years.

The Company made investments in building a new leadership team. With exports as a new focus area, the Company made inroads into Thailand and Myanmar in addition to strengthening its presence in Bangladesh.

It has been Company’s constant endeavour to provide superior quality customer service. In line with this, there was a renewed focus on customer delight initiatives and strengthening brand Milltec at the Company. The Company introduced a toll-free number to enable customers to easily reach out to the Company and also revamped its website and social media presence to better connect with its customers. A number of initiatives on this front are in the pipeline for Financial Year 2015 as well.

The Company continued with its efforts in research and development and launched new products during the year. Going forward the Company will continue to focus on launching products across the rice processing value chain and also expand presence in other grains such as pulses. The Company evaluated a couple of tuck-in acquisition opportunities during the year to expand into adjacent segments and will continue evaluating inorganic growth opportunities in future as well.

The Company now serves a client base of 10,000 plus millers across all major rice belts in India. In addition to selling individual units of mill equipment, the Company increased focus on Project sales for turnkey implementation of complete rice mills. For this purpose, a new Projects team was put in place to win and execute large turnkey projects.

The Company also implemented initiatives in strengthening internal controls and processes; the Company went live on SAP from April 1, 2014 and also implemented lean manufacturing at the same time.

The Company closed financial year 2014 with revenues of Rs.1,848 mm (18% growth over financial year 2013). Slowdown in credit available to millers and political instability in the state of Andhra Pradesh were some of the key reasons for an average growth during the year.

Multiples Private Equity Fund and Multiples Private Equity Fund I Limited (Multiples), an India-focused private equity fund, invested into Milltec in June 2013. Multiples bought equity stake from two shareholders of the Company, both of whom have completely exited the business post the investment by Multiples.

Weak monsoons during the season in 2014 could impact the rice milling industry overall, as a result also impacting Milltec business in financial year 2015.

The Company is going to focus on increasing penetration in domestic markets, expanding presence in ASEAN markets and launching new products to counter the impact on business due to weak monsoons.

MERGER OF MILLTEC OUTSOURCING PRIVATE LIMITED AND MILLTEC INDUSTRIES BANGALORE PRIVATE LIMITED WITH MILLTEC MACHINERY PRIVATE LIMITED

The Board of directors of the Company (hereinafter referred to as the Transferee Company) and that of Milltec Industries Bangalore Private Limited (MIPL) and Milltec Outsourcing Private Limited (MOPL) (together referred to as the Transferor Companies) approved a scheme of arrangement under which the Transferor Companies were to be merged with the Transferee Company with an appointed date of April 01, 2013. The scheme was approved by the Honourable High Court of Karnataka vide Order dated 8th April, 2014.Pursuant to the above, the Transferor Companies have been merged with the Transferee Company upon which the undertaking and the entire business including all assets and liabilities of the Transferor Companies stand transferred to and vested in the Transferee Company. The amalgamation has been accounted under the Purchase method and the assets and liabilities transferred have been recorded at their fair value as determined by the Board of Directors of the Transferee Company. The Scheme approved by the Honourable High Court of Judicature was effective on April 22, 2014 (the effective date) being the date on which all the requirements have been completed.

MIPL was engaged in the manufacture of machineries used for cleaning, grading, sorting, milling of seeds and grains and predominantly acting as a captive manufacturer for the Transferee Company. MOPL was engaged in providing consultancy services.

The Transferor Companies were wholly owned subsidiaries of the Transferee Company and the Transferee Company along with nominee shareholders held all the shares issued by the Transferor Companies. Hence, on the amalgamation of the Transferor Companies with the Transferee Company, no shares of the Transferee Company have been issued or allotted in respect of the holding of the Transferee Company in the Transferor Companies and the entire equity share capital of the Transferor Companies held by the Transferee Company along with the nominee shareholders stood cancelled.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10555181	30/01/2015	447,200,000.00	State Bank of India	No. 26/A, Electronic City Branch, Hosur Road, Bangalore, Karnataka - 560100, INDIA	C46732236

FIXED ASSETS

• Computer Equipments
• Other Equipments
• Furniture and fixtures
• Vehicles
• Motor vehicles
• Office equipment
• Land
• Buildings
• Factory building
• Plant and equipment
• Other plant and equipment

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.64.92
UK Pound	1	Rs.101.43
Euro	1	Rs.72.25

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	DIV
Report Prepared by :	SUD

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	YES
--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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.