MIRA INFORM REPORT

Report No. :	337549
Report Date :	20.08.2015

IDENTIFICATION DETAILS

Name :	HONEST ENTERPRISE LIMITED

Registered Office :	118, Meghdoot Apartment, Near Apsara Cinema, Pratapnagar Road, Vadodara – 390004, Gujarat
Tel. No.:	91-265-2424057

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	12.08.1999

Com. Reg. No.:	04-036414

Capital Investment / Paid-up Capital :	Rs.23.854 Million

CIN No.: [Company Identification No.]	U27209GJ1999PLC036414

IEC No.:	3499003651

TAN No.: [Tax Deduction & Collection Account No.]	BRDH00137E

PAN No.: [Permanent Account No.]	AAACH7237D

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Trader of Stainless Steel Products

No. of Employees :	15 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 400000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Honest Enterprise Limited (HEL) was incorporated as a private limited company in August 1999. HEL mainly trades in Stainless Steel (SS) flat products including coils, plates, sheets, etc. It is an established company having a moderate track. The ratings, continue to be constrained by the modest growing scale of operations of company, its thin profitability margins which are vulnerable to volatile metal prices and foreign exchange rate, modest debt coverage indicators and high leverage. The ratings, however, continue to derive strength from the vast experience of the promoters of the company in the metal trading business as well as its diversified clientele. However, Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of experienced promoters, subject can be considered for business dealings with some caution.

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

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	CARE
Rating	Long term bank facilities = “BB-“
Rating Explanation	Inadequate credit quality and high credit risk.
Date	07.10.2014

Rating Agency Name	CARE
Rating	Short term bank facilities = “A4”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	07.10.2014

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Raj
Designation :	Export –Import Head
Contact No.:	91-265-2424057

LOCATIONS

Registered Office :	118, Meghdoot Apartment, Near Apsara Cinema, Pratapnagar Road, Vadodara – 390004, Gujarat, India
Tel. No.:	91-265-2424057 / 2434057
Mobile No.:	91-9376218378 (Mr. Raj)
Fax No.:	91-265-2422960
E-Mail :	honest@honestlimited.com
Website :	www.honestlimited.net
Location:	Rented

Administrative Office :	Shop No. 25, Meghdoot Apartment, Near Apsara Cinema, Pratapnagar Road, Vadodara - 390004, Gujarat, India
Tel. No.:	91-265-2424057 / 2434057
Fax No.:	91-265-2422960
Location :	Rented

Branch Office :	17, Rangwala Building, 58 Islampur Street, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-67496128

DIRECTORS

AS ON: 30.09.2014

Name :

Mr. Laxmichand Vaghela

Designation :

Director

Address :

13 Bhogilal Park, R. V. Desai Road, Vadodara – 390004, Gujarat, India

Date of Birth/Age :

01.05.1952

Date of Appointment :

01.04.2010

PAN No.:

AALPV8414E

DIN No.:

00030104

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	U36941GJ1991PTC034675	VAGHELA METALS PRIVATE LIMITED	Director	07/05/1991	07/05/1991	-	Amalgamated	NO
2	U27209GJ1999PLC036414	HONEST ENTERPRISE LIMITED	Managing director	01/04/2010	12/08/1999	-	Active	NO
3	U93000GJ2007PTC051271	HONEST DERIVATIVES PRIVATE LIMITED	Director	05/07/2007	05/07/2007	05/01/2011	Active	NO

Name :

Mrs. Samudevi Vaghela

Designation :

Director

Address :

13 Bhogilal Park, R. V. Desai Road, Vadodara – 390004, Gujarat, India

Date of Birth/Age :

16.03.1957

Date of Appointment :

12.08.1999

PAN No.:

AAXPV0373Q

DIN No.:

00557332

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	U36941GJ1991PTC034675	VAGHELA METALS PRIVATE LIMITED	Director	07/05/1991	07/05/1991	30/06/2008	Amalgamated	NO
2	U27209GJ1999PLC036414	HONEST ENTERPRISE LIMITED	Director	12/08/1999	12/08/1999	-	Active	NO

Name :

Mrs. Usha Vaghela

Designation :

Director

Address :

13 Bhogilal Park, R. V. Desai Road, Vadodara – 390004, Gujarat, India

Date of Birth/Age :

27.04.1978

Date of Appointment :

01.04.2010

PAN No.:

AAZPV0672L

DIN No.:

00557210

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	U36941GJ1991PTC034675	VAGHELA METALS PRIVATE LIMITED	Director	16/11/1997	16/11/1997	30/06/2008	Amalgamated	NO
2	U27209GJ1999PLC036414	HONEST ENTERPRISE LIMITED	Whole-time director	01/04/2010	12/08/1999	-	Active	NO

Name :

Mr. Hitesh Vaghela

Designation :

Director

Address :

13 Bhogilal Park, R. V. Desai Road, Vadodara – 390004, Gujarat, India

Date of Birth/Age :

13.09.1977

Date of Appointment :

01.04.2010

PAN No.:

AALPV8408L

DIN No.:

00030133

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	U36941GJ1991PTC034675	VAGHELA METALS PRIVATE LIMITED	Director	16/11/1997	16/11/1997	-	Amalgamated	NO
2	U27209GJ1999PLC036414	HONEST ENTERPRISE LIMITED	Whole-time director	01/04/2010	12/08/1999	-	Active	NO
3	U93000GJ2007PTC051271	HONEST DERIVATIVES PRIVATE LIMITED	Director	30/09/2010	05/07/2007	05/01/2011	Active	NO
4	U27201GJ2010PLC061756	GLOBAL COPPER LIMITED	Director	30/09/2014	18/06/2014	-	Active	NO

Name :

Mr. Pravin Vaghela

Designation :

Director

Address :

13 Bhogilal Park, R. V. Desai Road, Vadodara – 390004, Gujarat, India

Date of Birth/Age :

29.10.1972

Date of Appointment :

01.04.2010

PAN No.:

AALPV8415F

DIN No.:

00557050

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	U36941GJ1991PTC034675	VAGHELA METALS PRIVATE LIMITED	Director	07/05/1991	07/05/1991	30/06/2008	Amalgamated	NO
2	U27209GJ1999PLC036414	HONEST ENTERPRISE LIMITED	Whole-time director	01/04/2010	12/08/1999	-	Active	NO

Name :

Mrs. Indu Vaghela

Designation :

Director

Address :

13 Bhogilal Park, R. V. Desai Road, Vadodara – 390004, Gujarat, India

Date of Birth/Age :

27.10.1972

Date of Appointment :

01.04.2010

PAN No.:

AALPV8416G

DIN No.:

00557114

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	U36941GJ1991PTC034675	VAGHELA METALS PRIVATE LIMITED	Director	07/05/1991	07/05/1991	30/06/2008	Amalgamated	NO
2	U27209GJ1999PLC036414	HONEST ENTERPRISE LIMITED	Whole-time director	01/04/2010	12/08/1999	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Raj
Designation :	Export –Import Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 30.09.2014

Names of Shareholders	No. of Shares	%age
Laxmichand Vaghela	319340	13.39
Samudevi Vaghela	425100	17.82
Usha Vaghela	274100	11.49
Hitesh Vaghela	323500	13.56
Dipti Vaghela	5400	0.23
Pravin Vaghela	237930	9.97
Indu Vaghela	245900	10.31
Laxmichand Vaghela (HUF)	144100	6.04
Hitesh L Vaghela (HUF)	410000	17.19

Total	2385370	100.00

Equity Share Break up (Percentage of Total Equity)

AS ON: 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Stainless Steel Products

Products :

Item Code No.	Product Description
73041110	Tubes and Pipes

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

Italy
UAE
Vietnam
Russia
Estonia

Imports :

Products :

Raw Material

Countries :

China
Italy
Turkey

Terms :

Selling :

Cash and Cheque

Purchasing :

Cash and Cheque

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 :

15 (Approximately)

Bankers :

State Bank of India, Natubhai Circle Branch, Natubhai Circle, Gotri Road, Vadodara - 390021, Gujarat, India
HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India
UCO Bank Raopura Branch, Opposite Ushakiran Building, Vadodara – 390001, Gujarat, India
Kotak Majhindra Bank Limited, 36-38A, Nariman Bhavan, 227 D, Nariman Point, Mumbai – 400021, Maharashtra, India

Bank Name	HDFC Bank
Branch	Shivsundaram Complex Branch
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	02752790000309
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 :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
SHORT TERM BORROWING
Loans repayable on demand from banks	125.556	56.734

Total	125.556	56.734

Auditors :
Name :	Maloo Bhat and Company Chartered Accountants
Address :	FF – 11, Dev Commercial Center, VNear Nathubhai Centre, Gotri Road, Vadodara – 390007, Gujarat, India
PAN No.:	AFIPM1864P

Memberships :	Not Available

Collaborators :	Not Available

Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	Laxmiraj Distributors Private Limited DIN No.: U51100GJ2005PTC045537

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

5800000	Equity Shares	Rs.10/- each	Rs.58.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

2385370	Equity Shares	Rs.10/- each	Rs.23.854 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	23.854	23.854	15.400
(b) Reserves & Surplus	127.810	119.410	75.396
(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)	151.664	143.264	90.796

(3) Non-Current Liabilities
(a) long-term borrowings	50.013	40.195	29.311
(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)	50.013	40.195	29.311

(4) Current Liabilities
(a) Short term borrowings	126.556	57.734	132.179
(b) Trade payables	113.931	161.486	110.207
(c) Other current liabilities	31.257	10.431	5.891
(d) Short-term provisions	0.637	1.257	0.304
Total Current Liabilities (4)	272.381	230.908	248.581

TOTAL	474.058	414.367	368.688

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.575	4.477	5.268
(ii) Intangible Assets	0.000	0.000	0.000
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.078	0.000	0.000
(d) Long-term Loan and Advances	4.913	4.406	4.394
(e) Other Non-current assets	7.721	0.000	0.000
Total Non-Current Assets	18.287	8.883	9.662

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	72.899	101.571	48.948
(c) Trade receivables	294.736	225.510	256.706
(d) Cash and cash equivalents	23.134	21.355	14.181
(e) Short-term loans and advances	48.366	47.268	25.740
(f) Other current assets	16.636	9.780	13.451
Total Current Assets	455.771	405.484	359.026

TOTAL	474.058	414.367	368.688

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Revenue from operations	1919.269	1435.507	1121.55
	Other Income	3.960	8.013	10.614
	TOTAL (A)	1923.229	1443.520	1132.164

Less:	EXPENSES
	Cost of Materials Consumed	0.000	0.000	0.000
	Purchases of Stock-in-Trade	1826.594	1445.281	1133.464
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	28.673	(52.624)	(47.665)
	Employees benefits expense	9.037	8.500	6.863
	Other expenses	14.087	16.337	19.611
	TOTAL (B)	1878.391	1417.494	1112.273

	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION(A-B) (C)	44.838	26.026	19.891

Less:	FINANCIAL EXPENSES (D)	30.853	16.420	18.385

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	13.985	9.606	1.506

Less:	DEPRECIATION/ AMORTISATION (F)	1.264	0.763	1.222

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	12.721	8.843	0.284

Less:	TAX (H)	4.322	2.363	-0.341

	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	8.399	6.480	0.625

Add:	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (J)	21.876	15.396	14.771

	Balance Carried to the B/S (I+J) (K)	30.275	21.876	15.396

	EARNINGS IN FOREIGN CURRENCY	105.740	236.202	236.203

	Earnings / (Loss) Per Share (Rs.)	3.52	2.72	0.26

Particulars

31.03.2015

Sales Turnover (Approximately)

2000.000

The above information has been parted by Mr. Raj (Export-Import Head)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.000	0.000	0.000
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.44	0.45	0.06

Operating Profit Margin (PBIDT/Sales)	(%)	2.34	1.81	1.77

Return on Total Assets (PBT/Total Assets}	(%)	2.68	2.13	0.08

Return on Investment (ROI) (PBT/Networth)		0.08	0.06	0.00

Debt Equity Ratio (Total Debt /Networth)		1.16	0.68	1.78

Current Ratio (Current Asset/Current Liability)		1.67	1.76	1.44

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	15.400	23.854	23.854
Reserves & Surplus	75.396	119.410	127.810
Net worth	90.796	143.264	151.664

long-term borrowings	29.311	40.195	50.013
Short term borrowings	132.179	57.734	126.556
Total borrowings	161.490	97.929	176.569
Debt/Equity ratio	1.779	0.684	1.164

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)
Revenue from operations	1121.550	1435.507	1919.269
		27.993	33.700

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue from operations	1121.550	1435.507	1919.269
Profit	0.625	6.480	8.399
	0.06%	0.45%	0.44%

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 four 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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

NOTE: Registered office of the company has been shifted from Shop No. 24 and 25 Meghdoot Apartments Near Apsara Cinema Pratapnagar, Vadodara – 390004, Gujarat India to the present address w. e. f. 01.04.2010

UNSECURED LOAN:

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG-TERM BORROWINGS
Loan and advances from related parties	50.013	40.195

SHORT-TERM BORROWINGS
Other Loans and advances	1.000	1.000

Total	51.013	41.195

PROSPECTS:

The directors are optimistic about Company's future. The outlook for the steel industry is upbeat. There has been general buoyancy in the steel industry, both in the international and the domestic markets. The same is expected to continue during the year. Further company is making all out efforts to increase the Export sales by exploring newer market and increasing its cliental base in more and more countries.

AMALGAMATION:

Vaghela Metals Private Limited is amalgamated with the Company as per the order received from Honorable

High Court of Gujarat.

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10530608	10/10/2014	99,000,000.00	State Bank of India	NATUBHAI CIRCLE BRANCH, NATUBHAI CIRCLE, GOTRI ROAD, VADODARA, GUJARAT - 390021, INDIA	C33220914
2	10444085	23/09/2014 *	99,000,000.00	State Bank of India	NATUBHAI CIRCLE BRANCH, NATUBHAI CIRCLE, GOTRI ROAD, VADODARA, GUJARAT - 390021, INDIA	C33217019
3	10444059	28/07/2014 *	99,000,000.00	State Bank of India	NATUBHAI CIRCLE BRANCH, NATUBHAI CIRCLE, GOTRI ROAD, VADODARA, GUJARAT - 390021, INDIA	C18230813
4	10189439	15/12/2011 *	215,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI, MAHARASHTRA - 400013, INDIA	B27584176
5	10093665	26/02/2008	850,000.00	GE CAPITAL TRANSPORTATION FINANCIAL SERVICES LIMITED	AIFACS BUILDING,, 1, RAFI MARG, NEW DELHI., DELHI - 110001, INDIA	A34633610

FIXED ASSETS:

Land
Buildings
Plant and Equipment
Furniture and Fixtures
Vehicles
Office 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 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. 65.25
UK Pound	1	Rs. 102.25
Euro	1	Rs. 72.20

INFORMATION DETAILS

Information Gathered by :	GYT

Analysis Done by :	KAS

Report Prepared by :	THR

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		31

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.

MIRA INFORM REPORT

INDEX OF CHARGES:

Unit