MIRA INFORM REPORT

Report No. :	306755
Report Date :	07.02.2015

IDENTIFICATION DETAILS

Name :	AIR WORKS INDIA (ENGINEERING) PRIVATE LIMITED
Registered Office :	Bombay International Airport Gate No. 8, Santacruz (East), Mumbai-400029, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	11.09.1986
Com. Reg. No.:	11-040889
Capital Investment / Paid-up Capital :	Rs. 421.403 Millions
CIN No.: [Company Identification No.]	U74210MH1986PTC040889
TAN No.: [Tax Deduction & Collection Account No.]	MUMA19638D
PAN No.: [Permanent Account No.]	AABCA1069P
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in the business of Aviation services, and hence, does not carry out any research and development activities.
No. of Employees :	Information denied by the management

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established private limited liability company having moderate track record. Management remained non-cooperative As per registrar of companies the date of balance sheet i.e. financials filed is shown as 31^st March 2014 are not available from any sources. As per financials of year 2013, the company has incurred loss. Long term borrowings have increased considerably. However trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	INDIA RATINGS AND RESEARCH
Rating	Long Term (BBB+)
Rating Explanation	Moderate degree of safety and moderate degree of credit risk.
Date	March 2013
Rating Agency Name	INDIA RATINGS AND RESEARCH
Rating	Short Term (A2+)
Rating Explanation	Strong degree of safety and low credit risk.
Date	March 2013

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 31-03-2014.

INFORMATION DENIED

MANAGEMENT NO-CO-OPERATIVE (91-22-26157189)

LOCATIONS

Registered Office :	Bombay International Air Port, Gate No. 8, Near Kalina Military, Santacruz (East), Mumbai - 400 029, Maharashtra, India
Tel. No.:	91-22-26158900/01/64556692/93/94
Fax No.:	91-22-26158956
E-Mail :	rmenon@giasbm01.vsnl.net.in ragini.crediffmail.com ashok.shah@airworks.in saurabh.mathur@airworks.in
Website :	www.airworks.in
Corporate Office :	1^st Floor, Kalyani House, Plot No. 40, Sector 18, Udyog Vihar, Gurgaon – 122001, Haryana, India
Tel. No.:	91-124-46422000
Fax No.:	91-124-4642250
Branches :	Located at: · Ahmedabad · Bangalore · Chennai (Madras) · Gurgaon · Hosur · Jakkur · Madurai · Mumbai · New Delhi · Pune · New Delhi

DIRECTORS

As on: 10.09.2014

Name :	Mr. Luv Chhabra
Designation :	Director
Address :	H-34/4, DLF City Phase – I, Gurgaon – 122002, Haryana, India
Date of Birth/Age :	29.09.1956
Date of Appointment :	04.02.2008
DIN No.:	00005413
Name :	Mr. Bala Chaitanya Deshpande
Designation :	Director
Address :	501, kukreja Heights, Nargis Dutt Raod, Pali Hill Bandra (West), Mumbai – 400050, Maharashtra, India
Date of Birth/Age :	15.04.1966
Date of Appointment :	16.05.2011
DIN No.:	00020130
Name :	Mr. Vivek Narayan Gour
Designation :	Managing director
Address :	Apartment 1203, The Magnolias, DLF Golf, Links DLF City, Gurgaon – 122009, Aryana, India
Date of Birth/Age :	10.11.1962
Date of Appointment :	03.11.2010
DIN No.:	00254383
Name :	Mr. Ravi Shivdas Menon
Designation :	Director
Address :	105/106, Premium Tower, Lokhandwala Complex, Andheri West, Mumbai – 400058, Maharashtra, India
Date of Birth/Age :	27.11.1953
Date of Appointment :	11.09.1986
DIN No.:	00327180
Name :	Mr. Michael Petel Schulhof
Designation :	Director
Address :	540 Madison Avenue, 28^th Floor, Newyork, USA - 10022
Date of Birth/Age :	10.11.1962
Date of Appointment :	04.02.2009
DIN No.:	01884261
Name :	Mr. Madhavan Nambiar
Designation :	Director
Address :	No. 3, Nawab Habibullah 3^rd Street, Chennai – 600006, Tamilnadu, India
Date of Birth/Age :	09.11.1950
Date of Appointment :	30.07.2014
DIN No.:	03487311

KEY EXECUTIVES

Name :	Mr. Saurabh Mathur
Designation :	Secretary
Address :	2C, Block 3, Pocket – B, Ashok Vihar, phase – III, Delhi – 110052, India
Date of Birth/Age :	20.01.1969
Date of Appointment :	16.01.2012
PAN No.:	AEOPM0539G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 10.09.2014

Names of Shareholders (Equity Share)	No. of Shares
B. Saral Menon	100
Ravi S Menon	3305900
Sahadev G Menon	1652300
Gayatri Heble	563400
Raghudev G Menon	1652300
Kalpana	563400
Rajdev Menon	1652300
Jaidev Menon	1652300
Nalini Menon	1126700
Indusage Management Service Private Limited	4296400
GTI AW I	19407800
Punj Lloyd Aviation Limited	17516100
Vivek N Gour, D. Anand Bhaskar and Luv Chhabra C/o Air Works Employees Welfare Trust	13630647
Vivek Narayan Gour Jointly with Rashmi Datt Gour	1513432
Vivek Narayan Gour Jointly with Rashmi Datt Gour	200000
Nea FVCI Limited	10000
Tusk Investments Fund Limited	4939500
Elephant India Finance Private Limited	735700
GNE Investment Limited	759100
Total	75177379
Names of Shareholders (Series A Equity)
Nea FVCI Limited	10000
Total	10000

Names of Shareholders (Preference Share)	No. of Shares
Nea FVCI Limited	27596956
GTI Capital delta Private Limited	8407721
Total	36004677

Equity Share Break up (Percentage of Total Equity)

As on: 10.09.2014

Category	Percentage
Venture	0.02
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	33.40
Bodies corporate	30.01
Directors or relatives of Directors	18.44
Other top fifty shareholders	18.13
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the business of Aviation services, and hence, does not carry out any research and development activities.

Products :

Item Code No. (ITC Code)	Product Description
99676300	Aircraft Maintenance And Repair Services

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

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 denied by the management

Bankers :

· Standard Chartered Bank, Credit Documentation Unit, Narain Manzil, 23 Barakhamba Road, New Delhi – 110001, India

· Indusind Bank Limited, Dr. Gopal Das Bhawan, 28, Barakhamba Road, New Delhi – 110001, India

· State Bank Of India, 214, D.N. Road, Fort, Mumbai - 400001, Maharashtra, India

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term loan from others	0.000	1.443
Rupee term loan from bank	661.670	0.000
Total	661.670	1.443

Financial Institution :	IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17 R. Kamani Marg, Ballard Estate, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	Golf View Corporate Tower- B, Sector- 42, Sector Road, Gurgaon - 122 002, Haryana, India
PAN No. :	AALFS0506L
Name :	S.R. Batliboi and Company Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Companies :	· Mach Air Sales Limited · Air Works MRO Services Private Limited · Air Works UK Engineering Limited · SA Air Works India Private Limited
Step down Subsidiary Companies :	· Business Aviation Services Limited · AirWorks Aviation Services Limited (formerly, Air Works · Aircraft Sales Limited) · Empire Aviation Group FZCO (w.e.f. 7/6/2012) · Air Livery ATE SAS (w.e.f. 23/1/2013) · Aero Technique Espace (ATE) (w.e.f. 14/1/2013 ) · Air Livery Limited, UK · Air Livery (Cambridge) Limited · Sprayavia International Limited · Air Livery India Private Limited
Associates :	· Punj Lloyd Aviation Limited · Punj Lloyd Pte Limited · NEA FVCI Limited · Spectra Punj Lloyd Limited · Punj Lloyd Limited
Employee trust Air Works Employees Welfare Trust Entity significantly influenced by the Company :	· Employee trust Air Works Employees Welfare Trust · Entity significantly influenced by the Company

CAPITAL STRUCTURE

As on 10.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
80000,000	Equity Shares	Rs.1/- each	Rs. 80.000 Millions
36150,000	Preference Share	Rs.10/- each	Rs. 361.500 Millions
20000	Series A Equity	Rs.1/- each	Rs. 0.020 Million
	Total		Rs. 441.520 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
75177379	Equity Shares	Rs.1/- each	Rs. 75.177 Millions
36004677	Preference Share	Rs.10/- each	Rs. 360.047 Millions
10000	Series A Equity	Rs.1/- each	Rs. 0.010 Million
	Total		Rs. 435.234 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
80020,000	Equity Shares	Rs.1/- each	Rs. 80.020 Millions
36150,000	Preference Share	Rs.10/- each	Rs. 361.500 Millions
	Total		Rs. 441.520 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
61356732	Equity Shares	Rs.1/- each	Rs. 61.357 Millions
36004677	Preference Share	Rs.10/- each	Rs. 360.047 Millions
	Total		Rs. 421.404 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	421.403	263.506	233.870
(b) Reserves & Surplus	2420.099	1782.945	1426.641
(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)	2841.502	2046.451	1660.511
(3) Non-Current Liabilities
(a) long-term borrowings	661.670	1.443	8.943
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	239.819	242.299	241.248
(d) long-term provisions	4.760	9.675	22.822
Total Non-current Liabilities (3)	906.249	253.417	273.013
(4) Current Liabilities
(a) Short term borrowings	210.784	244.161	199.649
(b) Trade payables	320.928	282.765	225.018
(c) Other current liabilities	430.190	81.997	603.394
(d) Short-term provisions	79.189	58.359	10.251
Total Current Liabilities (4)	1041.091	667.282	1038.312
TOTAL	4788.842	2967.150	2971.836
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	269.104	284.511	199.989
(ii) Intangible Assets	236.057	212.804	208.736
(iii) Capital work-in-progress	61.308	27.639	71.504
(iv) Intangible assets under development	29.894	48.695	0.000
(b) Non-current Investments	725.377	725.377	725.377
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	738.950	283.850	113.655
(e) Other Non-current assets	161.707	110.849	194.613
Total Non-Current Assets	2222.397	1693.725	1513.874
(2) Current assets
(a) Current investments	0.000	0.000	0.997
(b) Inventories	120.969	108.914	81.129
(c) Trade receivables	793.666	849.652	484.248
(d) Cash and cash equivalents	231.900	149.310	783.468
(e) Short-term loans and advances	1186.099	137.378	97.389
(f) Other current assets	233.811	28.171	10.731
Total Current Assets	2566.445	1273.425	1457.962
TOTAL	4788.842	2967.150	2971.836

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	1935.600	1493.540	1395.530
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	1537.820	1279.080	1102.820
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		397.780	214.460	292.710
Less	FINANCIAL EXPENSES		322.140	92.250	206.220
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		75.640	122.210	86.490
Less	DEPRECIATION/ AMORTISATION		96.210	81.210	60.300
	PROFIT/ (LOSS) BEFORE TAX		(20.560)	40.990	26.190
Less	TAX		2.170	8.200	0.000
	PROFIT/ (LOSS) AFTER TAX		(22.720)	32.790	26.190
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(178.530)	(211.320)	(237.510)
	BALANCE CARRIED TO THE B/S		(201.250)	(178.530)	(211.320)
	EARNINGS IN FOREIGN CURRENCY		673.660	342.620	80.260
	IMPORTS		(223.030)	234.920	261.500
	Earnings / (Loss) Per Share (Rs.)		(0.20)	0.29	0.23

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT / Sales)	(%)	(1.17)	2.20	1.88
Operating Profit Margin (PBIDT/Sales)	(%)	20.55	14.36	20.97
Return on Total Assets (PBT/Total Assets}	(%)	(0.52)	1.89	1.20
Return on Investment (ROI) (PBT/Networth)		(0.01)	0.02	0.02
Debt Equity Ratio (Total Debt /Networth)		0.31	0.12	0.13
Current Ratio (Current Asset/Current Liability)		2.47	1.91	1.40

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	233.870	263.506	421.403
Reserves & Surplus	1426.641	1782.945	2420.099
Net worth	1660.511	2046.451	2841.502
long-term borrowings	8.943	1.443	661.670
Short term borrowings	199.649	244.161	210.784
Total borrowings	208.592	245.604	872.454
Debt/Equity ratio	0.126	0.120	0.307

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	1395.530	1493.540	1935.600
		7.023	29.598

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	1395.530	1493.540	1935.600
Profit/loss	26.190	32.790	(22.720)
	1.88%	2.20%	(1.17%)

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

Particulars	31.03.2013	31.03.2012	31.03.2011
	(Rs. In Millions)
Current maturities of long-term debt	289.773	7.206	522.996
Total	289.773	7.206	522.996

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS REVIEW:

Total Revenue of the Company rose by more than 29% to Rs. 1,935.600 Million in the financial year 2012-13 from Rs. 1,493.530 Million in financial year 2011-12. The expenses during the year included extra ordinary items amounting to Rs.100.000 Million. These extra ordinary expenses relate to write off of trade receivables pertaining to one of the major customer of the Company who is in financial distress and pre-payment charges relating to long term loan repaid in August 2013. Adjusted for these, the profit before tax would have been Rs. 79.000 Million. The Earnings before Interest (net of Interest income), Depreciation, Tax and Amortization (EBITDA) for the financial year 12-13 is Rs. 240.980 Million. Adjusted for the extra ordinary expenses relating to trade receivable write off, EBITDA for the year would have been Rs. 304.980 Million compared to Rs. 188.710 for financial year FY 11-12.

BUSINESS REVIEW

CURRENT YEAR OUTLOOK AND BUSINESS EXPANSION PROGRAMME

Air Works continues to maintain its position as the leading provider of aviation services qualified to maintain over 50 aircraft types, for over 100 customers across over 20 maintenance locations. Air Works is India’s only EASA certified MRO with approvals for ATR42/72, Airbus A320 and Boeing B737 Classic/NG series. It also became the first General Aviation MRO to have an EASA certification at two of its facilities in Delhi and Mumbai.

The Company continues to expand its OEM relationships and is the Authorized Service Centre for Dassault, Rockwell Collins, Gulfstream, Bombardier, Honeywell, Agusta Westland, Bell Helicopter, Superjet International, Hawker Beechcraft, Embrarer and Williams. The Company is working on gaining ASF status from Cessna and Pratt and Whitney.

Through its Subsidiaries in Europe namely, Air Livery Ltd. and Aéro Technique Espace, Air Works is one of the world’s largest providers of aircraft paint services. Through the support of Air Livery Limited, Air Works has been carrying out Livery operations for commercial aircrafts in India.

Also through, SA Air Works India Private Limited (joint venture Company promoted by Air Works with Scandinavian Avionics, Denmark), Air Works is providing complete turnkey avionics solutions to commercial and defense Customers in India.

UNSECURED LOANS

	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital loans from bank	210.059	243.436
Loans and advance from related parties	0.725	0.725
Total	210.784	244.161

INDEX OF CHRGES:

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10511305	02/07/2014	600,000,000.00	INDUSIND BANK LIMITED.	2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE, MAHARASHTRA - 411001, INDIA	C13868716
2	10444935	31/07/2013	1,380,000,000.00	INDUSIND BANK LIMITED.	DR. GOPAL DAS BHAWAN, 28, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	B83026633
3	10297954	27/09/2013 *	400,000,000.00	STANDARD CHARTERD BANK	CREDIT DOCUMENTATION UNIT, NARAIN MANZIL, 23 BARA KHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	B85831881
4	10225741	07/02/2012 *	250,000,000.00	INDUSIND BANK LIMITED	DR. GOPAL DAS BHAWAN, 28, BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001, INDIA	B31540552
5	10208925	02/03/2010	5,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA	A81804668

* Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013
Estimated amount of contracts remaining to be executed on capital account and not provided for	40.178
Total	40.178

FIXED ASSETS:

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Aircrafts helicopters

· Office equipment

· Computer equipments

· Leasehold improvements

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.61.74
UK Pound	1	Rs.94.65
Euro	1	Rs.70.79

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SVC
Report Prepared by :	MTN

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	3
--LIQUIDITY	1~10	4
--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	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		33

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.