MIRA INFORM REPORT

Report No. :	353517
Report Date :	14.12.2015

IDENTIFICATION DETAILS

Name :	VIRGO VALVES AND CONTROLS PRIVATE LIMITED (w.e.f 27.11.2013) VIRGO ENGINEERS LIMITED AMALGAMATED WITH (VIRGO VALVES AND CONTROLS PRIVATE LIMITED)
Formerly Known As :	VIRGO VALVES AND CONTROLS LIMITED
Registered Office :	7B, 3rd Floor, Sambhava Chambers, Sir P.M. Road, Fort, Mumbai – 400001, Maharashtra
Tel. No.:	91-20-66744000
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.06.2004
Com. Reg. No.:	11-146916
Capital Investment / Paid-up Capital :	Rs.5.311 Million
CIN No.: [Company Identification No.]	U29120MH2004PTC146916
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCV8733H
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is primarily engaged in the manufacture of Industrial valves and accessories for power, chemical, petrochemical, pharmaceutical, oil and gas industries. (Registered Activity)
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

A (57)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 14099800
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is wholly owned subsidiary of “Emerson Process Management (India) Private Limited”. It has fine track. The rating into consideration strong networth base of the company along with comfortable debt level in the year 2014. However, the company has reported marginal decrease in its sales turnover and profit, but has reported decent profit margin in the year under consideration. Trade relations are fair. Business is active. Payment terms are reported to be regular and as per commitments. In view of long track of business operations along with strong financials, the subject can be considered for business dealings with usual trade terms and conditions. (Note : Virgo Engineers Limited has been amalgamated with Virgo Valves and Controls Private Limited)

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 31-03-2015.

INFORMATION DENIED BY

Name :	Mr. Sandip Sawant
Designation :	Finance Manager
Contact No.:	91-20-66744000

Name :	Mr. Manoj
Designation :	Head – Finance
Contact No.:	91-20-66744007
Date :	08.12.2015

LOCATIONS

Registered Office :	7B, 3rd Floor, Sambhava Chambers, Sir P.M. Road, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	Manoj.Kohok@emerson.com emirson@emerson.com
Website :	http://www.virgo-valves.com
Factory :	277/278, Hinjewadi Phase II, Maan (Mulshi), Pune –411 057, Maharashtra, India
Tel. No.:	91-20-66744000 / 66744007
Fax No.:	91-20-66744021

DIRECTORS

AS ON 22.09.2014

Name :	Mr. Terry Don Buzbee
Designation :	Director
Address :	406, New Salem Road, Marshali Town, Iowa 50158, United States of American
Date of Birth/Age :	15.07.1955
Date of Appointment :	04.10.2013
DIN No.:	00398731
Name :	Mr. Kevin Gerard Meyer
Designation :	Director
Address :	2260, Marshall Town Blvd, Marshall Town IA, Marshall Town – 50158, United States
Date of Birth/Age :	02.10.1965
Date of Appointment :	04.10.2013
DIN No.:	05199658
Name :	Mr. John Patrick Wilson
Designation :	Director
Address :	2003, Gethmann Dr, Marshall Town IA, Marshall Town – 50158, United States of American
Date of Birth/Age :	09.02.1976
Date of Appointment :	04.10.2013
DIN No.:	06430335
Name :	Mr. Daniel Glen Button
Designation :	Director
Address :	552, Autumn Oaks Drive, Ellisville, Missouri – 63021, United States of American
Date of Birth/Age :	07.03.1954
Date of Appointment :	04.10.2013
DIN No.:	00928557
Name :	Mr. Christopher Guild Scales
Designation :	Director
Address :	7, Cragmere Heights Road, Exeter, NH 038334515, United States of American
Date of Birth/Age :	08.11.1962
Date of Appointment :	04.10.2013
DIN No.:	03008344
Name :	Mr. Jagdish Shivanand Desai
Designation :	Director
Address :	F/12, Shanti Cooperative Hosuing Society, Mogal Lane, Mahim – 400016, Maharashtra, India
Date of Birth/Age :	21.01.1959
Date of Appointment :	29.07.2005
DIN No.:	00335436
Name :	Avnish Gupta
Designation :	Additional Director
Address :	D - 501, Irene Tower 1, Aloma County, Baner, Pune - 411045, Maharashtra, India
Date of Appointment :	26.08.2015
DIN No.:	07272016
Name :	Sarang Rajaram Sathe
Designation :	Additional Director
Address :	B- 1103, Park Titanium, Sr. No. 210/2, 210/5, 211/2, Park Street, Wakad, Pune - 411057, Maharashtra, India
Date of Appointment :	26.08.2013
DIN No.:	07272081

KEY EXECUTIVES

Name :	Mr. Manoj Ramakant Kohok
Designation :	Secretary
Address :	Shree Amkunj, 43/73, Navsahyadri Housing Society, Pune – 411052, Maharashtra, India
Date of Birth/Age :	28.08.1967
Date of Appointment :	30.04.2013
PAN No.:	ABJPK9557C
Name :	Mr. Sandip Sawant
Designation :	Finance Manager
Name :	Mr. Manoj
Designation :	Head - Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.09.2014

Names of Shareholders	No. of Shares
Emerson Process Management (India) Private Limited, India	5310911
Laxmikant Iyengar	1
Sunil Khanna	1
Chandramauli Balan	1
Pradipta Sen	1
Sharad Rane	1
Amit Paithankar	1
Total	5310917

Equity Share Break up (Percentage of Total Equity)

AS ON 22.09.2014

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is primarily engaged in the manufacture of Industrial valves and accessories for power, chemical, petrochemical, pharmaceutical, oil and gas industries. (Registered Activity)

Products :

Item Code No.	Product Description
84818030	Industrial Valves and accessories

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

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	Dbs Bank Limited
Branch	Upper Ground Floor, Birla Tower, 25, Barakhamba Road, New Delhi - 110001, 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 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

• DBS Bank Limited, Elbee House, Siddharth Path, Off Dhole Patil Road, PUNE - 411001, Maharashtra, India
• State Bank of India Industrial Finance Branch, Tara Chambers 2nd floor,Near Mariaaipolice Chowky, Old Pune Mumbai Highway, Wakdewadi, Pune - 411003, Maharashtra, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term loans
Foreign currency loan from bank	0.000	358.315
Indian rupee loan from bank	0.000	178.259
Finance lease obligation	0.000	0.141
Vehicle loans	0.000	0.345
Short-term borrowings
Working capital loans
Cash credit from banks	0.000	446.984
Packing credit from banks	46.478	862.700
Buyer's credit from banks	0.000	253.782
Total	46.478	2100.526

Auditors :
Name :	S. R. Batliboi and Associates LLP Chartered Accountants
Address :	C-104, 4th Floor, Panchshil Tech Park, Yerwada (Near Don Bosco School), Pune – 411006, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AABFS3421N
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Emerson Process Management (India) Private Limited * (a)
Ultimate Holding Company:	Emerson Electric Company (a)
Subsidiary :	Vintrol Inc.* Emperson Process Management Virgo Valves SRL., Italy * Emperson Process Management Virgo Valves Inc., USA * Virgo Valves and Controls (ME) FZE* Virgo Valves and Controls Korea Limited. * Virgo Valves and Controls SDN BHD * Shanghai Virgo Valves Technology Consulting Company Limited *
Fellow Subsidiary :	Asco Numatics (India) Private Limited India * (a) Emerson Process Mgmt. Chennai Limited, India * (a) El-O-Matic Valve Actuators, Singapore * (a) Emerson Process, GUL Road, Singapore * (a) Emerson Process Asia Pacific PTE, Singapore * (a) Emerson Network Power (India) Limited. * (a) Emerson Network Power (Pune) Limited * (a)
Enterprises owned or significantly influenced by key management personnel or their relatives (EKMP):	V. Balasubramanian (HUF) (up to October 4, 2013)

Note

* Transactions taken place during the year.

a) Companies became related party w.e.f. October 4, 2013.

CAPITAL STRUCTURE

As on 22.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
620000000	Equity Shares	Rs.1/- each	Rs. 620.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5310917	Equity Shares	Rs.10/- each	Rs. 5.311 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	5.311	5.278	10.000
(b) Reserves & Surplus	4929.617	4309.509	2627.918
(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)	4934.928	4314.787	2637.918
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	537.060	204.916
(b) Deferred tax liabilities (Net)	59.725	68.671	0.000
(c) Other long term liabilities	29.364	28.276	0.000
(d) long-term provisions	41.187	28.551	5.914
Total Non-current Liabilities (3)	130.276	662.558	210.830
(4) Current Liabilities
(a) Short term borrowings	2846.478	1563.467	730.876
(b) Trade payables	1142.854	1809.323	1133.631
(c) Other current liabilities	881.329	566.551	131.822
(d) Short-term provisions	17.357	13.392	4.537
Total Current Liabilities (4)	4888.018	3952.733	2000.866
TOTAL	9953.222	8930.078	4849.614
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2006.080	1913.910	515.699
(ii) Intangible Assets	21.976	22.307	17.421
(iii) Capital work-in-progress	10.060	27.759	0.000
(iv) Intangible assets under development	0.000	4.791	0.000
(b) Non-current Investments	523.388	542.433	716.388
(c) Deferred tax assets (net)	0.000	0.000	10.577
(d) Long-term Loan and Advances	240.747	81.318	198.279
(e) Other Non-current assets	108.427	33.237	3.742
Total Non-Current Assets	2910.678	2625.755	1462.106
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2754.698	2073.903	889.243
(c) Trade receivables	2896.068	2729.864	1574.399
(d) Cash and cash equivalents	244.952	133.036	75.317
(e) Short-term loans and advances	839.800	1003.868	767.397
(f) Other current assets	307.026	363.652	81.152
Total Current Assets	7042.544	6304.323	3387.508
TOTAL	9953.222	8930.078	4849.614

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	7510.945	8805.594	3825.988
	Other Income			122.025
	TOTAL (A)	7510.945	8805.594	3948.013
Less	EXPENSES
	Employee cost and Operating Expenses	2189.035	1766.077	0.000
	Cost of Materials Consumed	3598.590	5264.704	2142.726
	Purchases of stock-in-trade	0.000	0.000	277.979
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	0.000	128.160
	Employees benefits expense	0.000	0.000	189.335
	Other expenses	0.000	0.000	522.732
	TOTAL (B)	5787.625	7030.781	3260.932
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	1723.320	1774.813	687.081
Less	FINANCIAL EXPENSES (D)	324.008	346.145	119.393
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	1399.312	1428.668	567.688
Less/ Add	DEPRECIATION/ AMORTISATION (F)	213.876	185.476	43.497
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	1185.436	1243.192	524.191
Less	TAX (I)	462.209	401.445	169.575
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	723.227	841.747	354.616
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	3291.122	2303.352	2057.882
	Additions to Profit and Loss by virtue of Merger of Virgo Engineers Limited	0.000	500.136	0.000
	APPROPRIATIONS
	Dividend on Equity Shares	84.975	232.253	63.400
	Tax on Dividend	14.442	37.685	10.285
	Transfer to General Reserve	72.323	84.175	35.462
	Balance Carried to the B/S	3842.610	3291.122	2303.352
	Earnings / (Loss) Per Share (Rs.)	136.18	159.47	3546.17

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	395.555	224.972	51.093
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	266.649	1698.038	(89.958)
Net cash flows from (used in) operating activities	(136.739)	1372.814	(253.729)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Total Income)	(%)	9.63	9.56	8.98
Return on Total Assets (PBT/Total Assets}	(%)	12.58	14.88	12.71
Return on Investment (ROI) (PBT/Networth)		0.24	0.29	0.20
Debt Equity Ratio (Total Debt /Networth)		0.66	0.54	0.37
Current Ratio (Current Asset/Current Liability)		1.44	1.59	1.69

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	10.000	5.278	5.311
Reserves & Surplus	2627.918	4309.509	4929.617
Share Application money pending allotment	0.000	0.000	0.000
Net worth	2637.918	4314.787	4934.928
long-term borrowings	204.916	537.060	0.000
Short term borrowings	730.876	1563.467	2846.478
Current Maturities of Long Term Debt	51.093	224.972	395.555
Total borrowings	986.885	2325.499	3242.033
Debt/Equity ratio	0.374	0.539	0.657

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	3948.013	8805.594	7510.945
		123.039	(14.703)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	3948.013	8805.594	7510.945
Profit	354.616	841.747	723.227
	8.98%	9.56%	9.63%

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	No
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	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	No
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

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Short-term borrowings
Working capital loans
Working capital loans from holding company	1900.000	0.000
Working capital loans from fellow subsidiary company	900.000	0.000
Total	2800.000	0.000

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10080918	29/06/2010 *	550,000,000.00	CANARA BANK	INDUSTRIAL FINANCE BRANCH, M. G. ROAD, PUNE, MAHA  RASHTRA - 411001, INDIA	A91138602
2	90092710	28/07/2004	35,000,000.00	SBI FACTORS AND COMMERCIAL SERVICES PVT.LTD.	TARA CHAMBERS;2ND FLOOR ; MUMBAI-PUNE ROAD, WAKD  EWADI, PUNE, MAHARASHTRA - 411003, INDIA	-

* Date of charge modification

CHANGE IN THE NAME OF THE COMPANY:

As our direct parent company i.e. Emerson Process Management (India) Private Limited is a a private company, it was decided to convert Virgo from public company to private company to be in order with Emerson group structure. Consequent to this conversion, the name of our company has been changed from Virgo Valves & Controls Limited to Virgo Valves and Controls Private Limited with effect from November 27, 2013.

THE YEAR IN RETROSPECT

Revenues

During the year the Company’s total revenue stood at Rs.7,511 Million as against Rs.8,806 Million in the previous year. Profit after tax (PAT) stood at Rs.723 Million as against Rs.842 Million in the previous year.

Amalgamation accounting

The Company treats an amalgamation in the nature of merger if it satisfies all the following criteria:

(i) All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of the transferee company.

Shareholders holding not less than 90% of the face value of the equity shares of the transferor company (other

than the equity shares already held therein, immediately before the amalgamation, by the transferee company or its subsidiaries or their nominees) become equity shareholders of the transferee company.

(i) The consideration for amalgamation receivable by those equity shareholders of the transferor company who agree to become shareholders of the transferee company is discharged by the transferee company wholly by the issue of equity shares, except that cash may be paid in respect of any fractional shares.

(ii) The business of the transferor company is intended to be carried on, after the amalgamation, by the transferee company.

(iii) The transferee company does not intend to make any adjustment to the book values of the assets and liabilities of the transferor company, except to ensure uniformity of accounting policies.

The Company accounts for all amalgamations in the nature of merger using the pooling of interest method. The application of this method requires the Company to recognise any non-cash element of the consideration at fair value.

The Company recognises assets, liabilities and reserves, whether capital or revenue, of the transferor company at their existing carrying amounts and in the same form as at the date of the amalgamation. The balance in the statement of profit and loss of the transferor

Amalgamation accounting (continued)

Company is transferred to the reserve. The difference between the amount recorded as share capital issued, plus any additional consideration in the form of cash or other assets, and the amount of share capital of the transferor company is adjusted in reserves.

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Computer equipments
• Other equipments
• Leasehold improvements

Intangible assets

• 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 records 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.66.79
UK Pound	1	Rs.101.10
Euro	1	Rs.73.10

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	KIN
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	7
--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		57

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.