MIRA INFORM REPORT

Report No. :	352886
Report Date :	09.12.2015

IDENTIFICATION DETAILS

Name :	THERMAL SYSTEMS (HYDERABAD) PRIVATE LIMITED
Registered Office :	Survey No. 172, Plot No. 158, IDA, Jinnaram Mandal, Bollaram, Medak District, Hyderabad – 502325, Telangana
Tel. No.:	91-8458-280054/ 55/ 59
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	04.11.1991
Com. Reg. No.:	01-013404
Capital Investment / Paid-up Capital :	Rs. 119.757 Million
CIN No.: [Company Identification No.]	U31909TG1991PTC013404
IEC No.:	0995006482
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACT9825H
Legal Form :	Private Limited Liability Company
Line of Business :	Designing and Manufacturing of Economizers, Super heaters, Heat Exchangers, Waste Heat Recovery Boilers and Other Chemical Process Equipments. (Confirmed by management)
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 2250000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Thermal systems was originally set up in 1985 by Mr. P V Raju as a proprietary concern. The firm was reconstituted as a private limited company with the current name in 1991. The company manufactures and supplies waste-heat recovery boilers and parts, economizers, and super heaters. These are used for generation of power from the waste heat generated in the manufacturing process in industries such as steel and fertilizer. For the financial year ended 2014, of the company has been declined by 21.91% over previous year revenue. However, company able to maintained profit margins at 5.74% during FY 2014. Ratings continue to reflect the extensive experience of promoters in the waste-heat recovery boiler industry and the company’s healthy capital structure, marked by moderate net worth and low gearing. Rating strengths is partially offset by the company’s large working capital requirements. Trade relations are reported as fair. Business is active. Payment are reported to be regular and as per commitment. The company can be considered good for normal business dealings at usual trade terms and conditions. Note: As per registrar of companies the date of balance sheet (i.e. financial filed) is shown as 31.03.2015 but the documents related to the financial for the year 31.03.2015 are not available from any source.

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	February 06, 2015

Rating Agency Name	CRISIL
Rating	Short term Rating : A2
Rating Explanation	Strong degree of safety and low credit risk
Date	February 06, 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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. A. Satyanarayan
Designation :	Manager
Contact No.:	91-8458-280054
Date :	07.12.2015

LOCATIONS

Registered Office/ Factory:	Survey No. 172, Plot No. 158, IDA, Jinnaram Mandal, Bollaram, Medak District, Bollaram, Hyderabad – 502325, Telangana, India
Tel. No.:	91-8458-280054/ 55/ 59
Fax No.:	91-8458-280105
E-Mail :	rajasekhar@thermalindia.com info@thermalindia.com thermal@tspl.wipro.net.in thermal@hd2.dot.net.in
Website :	http://www.thermalindia.com

DIRECTORS

As on: 30.09.2014

Name :

Mr. Polina Veer Raju

Designation :

Managing director

Address :

303B, Road No. 25, Jubilee Hills, Hyderabad - 500033, Telangana, India

Date of Birth/Age :

01.06.1949

Date of Appointment :

04.11.1991

PAN No.:

AEHPP6553N

DIN No.:

00162614

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	Company/ LLP Status	Defaulting status
1	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Managing director	04/11/1991	04/11/1991	Active	NO
2	U33119AP1997PTC028492	P.S. STEAM AND POWER PRIVATE LIMITED	Director	05/12/1997	05/12/1997	Active	NO
3	U40108AP2010PTC069856	HAFNER STEAM BOILER PRIVATE LIMITED	Director	06/08/2010	06/08/2010	Active	NO
4	U23101AP2011PLC072783	COROMANDEL COKE AND POWER LIMITED	Director	21/02/2011	21/02/2011	Active	NO

Name :

Mrs. Polina Sesha Ratnam

Designation :

Director

Address :

303B, Road No. 25, Jubilee Hills, Hyderabad - 500033, Telangana, India

Date of Birth/Age :

03.07.1958

Date of Appointment :

04.11.1991

PAN No.:

AKUPP7189F

DIN No.:

00162620

Name :

Mr. Marni Srinivasa Rao

Designation :

Whole-time director

Address :

Villa 225, Indu Fortune Fields, Phase – 13, KPHB Colony, Hyderabad – 500072, Telangana, India

Date of Birth/Age :

14.05.1969

Date of Appointment :

29.08.2011

PAN No.:

BDSPM1929E

DIN No.:

03303869

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	Company/ LLP Status	Defaulting status
1	U24232AP2010PTC071320	SAMARLAKOT FERTILISERS AND CHEMICALS PRIVATE LIMITED	Director	22/11/2010	22/11/2010	Active	NO
2	U23101AP2011PLC072783	COROMANDEL COKE & POWER LIMITED	Director	21/02/2011	21/02/2011	Active	NO
3	U33119AP1997PTC028492	P.S. STEAM AND POWER PRIVATE LIMITED	Whole-time director	01/04/2011	01/04/2011	Active	NO
4	U40108AP2010PTC069856	HAFNER STEAM BOILER PRIVATE LIMITED	Whole-time director	01/04/2011	01/04/2011	Active	NO
5	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Whole-time director	29/08/2011	29/08/2011	Active	NO

Name :

Mr. Subramanyeswara Rao Kudaravalli

Designation :

Director

Address :

7-1-636-26, Model Coloyn, S. R. Nagar, B.K. Guda, Hyderabad – 500038, Telangana, India

Date of Birth/Age :

10.08.1942

Date of Appointment :

29.09.2012

DIN No.:

00038416

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	Company/ LLP Status	Defaulting status
1	U28932AP1975PLC006382	CMH TOOLS LIMITED	Director	14/03/2002	14/03/2002	Active	NO
2	L24239AP1987PLC008066	SMS PHARMACEUTICALS LIMITED	Director	29/05/2005	29/05/2005	Active	NO
3	U24230AP1995PTC020182	SREENIVASA PHARMA PRIVATE LIMITED	Director	25/05/2007	25/05/2007	Amalgamated	NO
4	U24230AP2000PLC034319	AUCTUS PHARMA LIMITED	Director	16/06/2008	28/03/2008	Active	NO
5	U45200AP2004PTC042471	YESWANTH INDUSTRIAL INFRASTRUTURE PROJECTS PRIVATE LIMITED (U/S 21)	Director	26/11/2011	26/11/2011	Active	NO
6	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Director	29/09/2012	03/09/2012	Active	NO

Name :

Mr. Mullapudi Ananda Rao

Designation :

Director

Address :

H. No. 2-30-6, Nizampet Road, Hyder Nagar, Kukatpally, Hyderabad – 500072, Telangana, India

Date of Birth/Age :

20.10.1960

Date of Appointment :

16.08.1993

PAN No.:

AMDDE8547C

DIN No.:

00162623

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	Company/ LLP Status	Defaulting status
1	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Director	16/08/1993	16/08/1993	Active	NO
2	U24232AP2011PTC078320	NOVOZENE THERAPEUTICS PRIVATE LIMITED	Director	30/12/2011	30/12/2011	Active	NO

Name :

Satyavada Venkata Ramachandra Rao

Designation :

Director

Address :

H. No. 7-1-621/307, Flat No. 401, 268/3RT Sai Vijay Encalve, S. R. Nagar, Hyderabad – 500038, Telangana, India

Date of Birth/Age :

06.08.1950

Date of Appointment :

29.09.2012

DIN No.:

01869061

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	Company/ LLP Status	Defaulting status
1	U74140AP2000PLC033589	RESOURCE INPUTS LIMITED	Managing director	30/09/2010	16/02/2000	Active	NO
2	U95000AP2003PTC041864	HR CHAMBERS OUTSOURCING PRIVATE LIMITED	Managing director	14/10/2003	14/10/2003	Active	NO
3	U74900AP2008PLC058171	PENNAR ENVIRO LIMITED	Director	23/09/2010	05/02/2010	Active	NO
4	L27203AP1989PLC010409	PALCO LIMITED	Director	31/08/2012	31/10/2011	Active	NO
5	U31909AP1991PTC013404	THERMAL SYSTEMS (HYDERABAD)PRIVATE LIMITED	Director	29/09/2012	03/09/2012	Active	NO
6	U72200AP2013PTC088049	OPENBRICK SYSTEMS PRIVATE LIMITED	Director	30/05/2013	30/05/2013	Active	NO
7	U93000AP2009PTC062968	EMINENCE HR MISSION PRIVATE LIMITED	Additional director	21/08/2013	21/08/2013	Active	NO

KEY EXECUTIVES

Name :	Mr. A. Satyanarayan
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2014

Names of Shareholders	No. of Shares
Polina Veer Raju	9794125
Polina Sesha Ratnam	985875
Polina Satyanarayana	1195000
Mullapudi Ananda Rao	100
Marni Srinivasa Rao	100
Satyavada Venkata Ramachandra Rao	100
Kudaravalli Subramanyeswara Rao	100
Avirneni Srirama Krishna	100
Dharam Pal	100
Tetali Venkata Ram	100
Total	11975700

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 :

Designing and Manufacturing of Economizers, Super heaters, Heat Exchangers, Waste Heat Recovery Boilers and Other Chemical Process Equipments. (Confirmed by management)

Products :

Item Code No.	Product Description
84021200	WTRTUBE BOILRS WTH A STM PRDCTN LESS THAN OR EQUAL TO 45T/HR

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Products :

Finished Goods

Countries :

• Egypt
• USA
• UK
• Indonesia
• Peru
• Russia

Imports :

Not Divulged

Terms :

Selling :

L/C and Credit (30/60/90 Days)

Purchasing :

L/C and Credit (30/60/90 Days)

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 :

End users and OEMs

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 :

500 (Approximately)

Bankers :

• HDFC Bank
• ICICI Bank

Bank Name	State Bank of India
Branch	MID Corporate Group, Overseas Branch, Road No. 36, Rajala Center, Jubilee Hills, Hyderabad – 500033, Telangana,
Person Name (With Designation)	Not Divulged
Contact Number	91-40-23147501 (continuously Ringing)
Name of Account Holder	Not Divulged
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 LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Term loans from banks	2.197	3.890
SHORT TERM BORROWINGS
Working capital loans from banks	0.000	170.050
Total	2.197	173.940

Financial Institution :	Telangana State Financial Corporation, Chirag Ali Lane, Hyderabad, Telangana, India
Auditors :
Name :	G. Seshadri and Company Chartered Accountants
Address :	Plot No.D-11, Road No. 9, Film Nagar, Jubilee Hills, Hyderabad – 500033, Telangana, India
Income-tax PAN of auditor or auditor's firm :	ACGPG2153A
Email;	seshadrinaidu_g@rediffmail.com
Cost Auditors :
Name :	Mr. K.C.V. Raju
Address :	Hyderabad, Telangana, India
Memberships :	---
Collaborators :	--
Subsidiary Company :	· Thermal Systems GmbH, Germany

CAPITAL STRUCTURE

As on: 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11975700	Equity Shares	Rs.10/- each	Rs.119.757 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	119.757	119.757	59.750
(b) Reserves & Surplus	669.329	586.152	504.103
(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)	789.086	705.909	563.853
(3) Non-Current Liabilities
(a) long-term borrowings	2.197	3.890	0.510
(b) Deferred tax liabilities (Net)	5.973	21.369	21.560
(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)	8.170	25.259	22.070
(4) Current Liabilities
(a) Short term borrowings	0.000	170.050	167.361
(b) Trade payables	59.428	133.581	192.253
(c) Other current liabilities	215.153	380.937	654.607
(d) Short-term provisions	260.606	226.708	185.632
Total Current Liabilities (4)	535.187	911.276	1199.853
TOTAL	1332.443	1642.444	1785.776
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	259.313	246.689	239.733
(ii) Intangible Assets	4.732	6.449	6.692
(iii) Capital work-in-progress	1.173	14.683	2.031
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.046	1.047	1.046
(c) Deferred tax assets (net)	6.231	10.139	0.000
(d) Long-term Loan and Advances	0.000	0.000	14.743
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	272.495	279.007	264.245
(2) Current assets
(a) Current investments	0.053	0.053	0.053
(b) Inventories	182.050	338.898	640.322
(c) Trade receivables	238.396	319.464	356.719
(d) Cash and cash equivalents	321.262	415.777	150.826
(e) Short-term loans and advances	318.187	289.245	373.611
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1059.948	1363.437	1521.531
TOTAL	1332.443	1642.444	1785.776

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1148.500	1464.500	1233.300
		Other Income	26.500	17.400	14.700
		TOTAL (A)	1175.000	1481.900	1248.000
Less	EXPENSES
		TOTAL (B)	987.000	1298.800	1064.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		188.000	183.100	183.400
Less	FINANCIAL EXPENSES (D)		59.300	34.900	52.300
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		128.700	148.200	131.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.900	25.200	24.200
	PROFIT BEFORE TAX (E-F) (G)		101.800	123.000	106.900
Less	TAX (H)		18.600	40.900	42.500
	PROFIT AFTER TAX (G-H) (I)		83.200	82.100	64.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		325.200	243.100	178.700
	EARNINGS IN FOREIGN CURRENCY
		Towards Exports	621.679	406.291	320.561
		Advance against Exports	0.919	130.772	261.287
		Reimbursement of Exp (Travel Expenses)	5.235	5.550	0.073
	TOTAL EARNINGS		627.833	542.613	581.921
	Earnings Per Share (Rs.)		6.95	6.86	5.38

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	0.000	1.998	0.673
Net cash flows from (used in) operations	125.177	291.077	(113.960)
Net cash flows from (used in) operating activities	77.658	231.993	(154.019)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	7.24	5.61	5.22
Operating Profit Margin (PBIDT/Sales)	(%)	16.37	12.50	14.87
Return on Total Assets (PBT/Total Assets}	(%)	7.69	7.61	6.00
Return on Investment (ROI) (PBT/Networth)		0.13	0.17	0.19
Debt Equity Ratio (Total Debt /Networth)		0.00	0.25	0.30
Current Ratio (Current Asset/Current Liability)		1.98	1.50	1.27

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	59.750	119.757	119.757
Reserves & Surplus	504.103	586.152	669.329
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	563.853	705.909	789.086
long-term borrowings	0.510	3.890	2.197
Short term borrowings	167.361	170.050	0.000
Current maturities of long-term debts	0.673	1.998	0.000
Total borrowings	168.544	175.938	2.197
Debt/Equity ratio	0.299	0.249	0.003

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	1233.300	1464.500	1148.500
		18.746	(21.577)

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	1233.300	1464.500	1148.500
Profit	64.400	82.100	83.200
	5.22%	5.61%	7.24%

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

REVIEW OF OPERATIONS

The company has achieved a turnover of Rs. 1148.500 Million for the financial year as against the turnover of Rs.1464.500 Million. The Company achieved profit before tax of Rs. 101.800 Million as against Rs.123.000 Million in the previous year.

Note:

The registered office of the company has been shifted from Plot No.1, Apuroopa Township, IDA, Jeedimetla, Hyderabad – 500055, Telangana, India to the present w.e.f.03.09.2013

INDEX OF CAHREGS:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	90137784	10/10/1995 *	13,000,000.00	STATE BANK OF INDIA	SAIFABAD BRANCH, HYDERABAD, TELANGANA, INDIA	-
2	90137573	15/06/2015 *	968,100,000.00	STATE BANK OF INDIA	MID CORPORATE GROUP, OVERSEAS BRANCH, ROAD NO. 36, RAJALA CENTER, JUBILEE HILLS, HYDERABAD - 500033, TELANGANA, INDIA	C56587900

* Date of charge modification

FIXED ASSETS:

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

· Computer equipments

· Other equipments

· 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 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.66.80
UK Pound	1	Rs.100.49
Euro	1	Rs.72.52

INFORMATION DETAILS

Information Gathered by :	SPY
Analysis Done by :	KRN
Report Prepared by :	MTN

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	5
--PROFITABILITY	1~10	5
--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		52

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

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