MIRA INFORM REPORT

Report No. :	309649
Report Date :	27.02.2015

IDENTIFICATION DETAILS

Name :	SIMRAN FARMS LIMITED
Registered Office :	1-B Vikas Rekha Complex, Khatiwala Tank, Indore - 452001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	26.10.1984
Com. Reg. No.:	10-002627
Capital Investment / Paid-up Capital :	Rs. 37.917 Millions
CIN No.: [Company Identification No.]	L01222MP1984PLC002627
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	BPLS02034E
PAN No.: [Permanent Account No.]	AACCS4135P
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in poultry farming and animal breeding activities.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 440000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The rating is constrained on account of very low profit margin and the unfavorable gap between trade receivables and payables of the company. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Mahesh Patidar
Designation :	Accounts Manager
Contact No.:	91-731-4255900
Date :	24.02.2015

LOCATIONS

Registered Office :	1-B Vikas Rekha Complex, Khatiwala Tank, Indore - 452001, Madhya Pradesh, India
Tel. No.:	91-731-4255900
Fax No.:	91-731-4255949
E-Mail :	simrangroup@sancharnet.in
Website :	www.simranfarms.com
Sales Office :	Bopal Anand Chickli Raipur Bhilai Bilaspur Malegaon Dhulia Nashik Sangamner Narayangaon Loharu Jaipur Ajmer Nawalgarth Palsana

DIRECTORS

As on 31.03.2014

Name :	Mr. H.S. Bhatia
Designation :	Managing Director
Name :	Mr. K.S. Bhatia
Designation :	Executive Director
Name :	Mr. G.S. Bhatia
Designation :	Non Executive Director
Name :	Mr. H.S. Khanuja
Designation :	Independent Director
Name :	Dr. Surendra Singh
Designation :	Independent Director
Name :	Mrs. Jasmeet Kaur Bhatia
Designation :	Independent Director (w.e.f. 14.08.2014)
Name :	Mr. Surjeet Singh Kohli
Designation :	Independent Director (upto 29.05.2014)

KEY EXECUTIVES

Name :	Mayank Kumar Lashkari
Designation :	Company Secretary
Name :	Mr. Mahesh Patidar
Designation :	Chief Financial Officer
Name :	Mr. Mahesh Patidar
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1373150	36.21
Bodies Corporate	32900	0.87
Sub Total	1406050	37.08
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1406050	37.08
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	2100	0.06
Sub Total	2100	0.06
(2) Non-Institutions
Bodies Corporate	167053	4.41
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1500135	39.56
Individual shareholders holding nominal share capital in excess of Rs 0.100 Million	597414	15.76
Any Others (Specify)	118948	3.14
NRIs/OCBs	117178	3.09
Clearing Members	1770	0.05
Sub Total	2383550	62.86
Total Public shareholding (B)	2385650	62.92
Total (A)+(B)	3791700	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	3791700	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in poultry farming and animal breeding activities.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
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
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Not Divulged

Bankers :

• ICICI Bank Limited
• Punjab and Sind Bank Limited
• Punjab National Bank
• Bank of Baroda

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
From Banks
Vehicle Loans (First Charge on trucks and Cars)	16.915	6.821
SHORT TERM BORROWING
Punjab National Bank (Cash Credit)	49.055	0.000
Total	65.970	6.821

Note:

The cash credit facility has been secured by hypothecation of book debts, stock, and First charge over fixed Assets of the company and personal guarantee of Directors.

Auditors :
Name :	Khandelwal Kakani and Company Chartered Accountants
Address :	Indore, Madhya Pradesh, India
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Companies :	Puregene Biotech Limited (w.e.f. from 13/7/2002) [formerly Simran Breeders Private Limited]
Relatives of key management personnel and their enterprises where transaction have taken place:	Simran Feed Private Limited Simran Poultry Singh Poultry Simran Hatcheries Simran Hatcheries Private Limited Early Bird Hatcheries Simfa Labs Private Limited. Simran Foods Private Limited

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
60,00,000	Equity Shares	Rs.10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
37,91,700	Equity Shares	Rs.10/- each	Rs. 37.917 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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	37.917	37.917	37.917
(b) Reserves & Surplus	114.764	108.510	138.003
(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)	152.681	146.427	175.920
(3) Non-Current Liabilities
(a) long-term borrowings	16.915	6.821	1.651
(b) Deferred tax liabilities (Net)	11.087	10.488	10.245
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	7.343	6.988	6.395
Total Non-current Liabilities (3)	35.345	24.297	18.291
(4) Current Liabilities
(a) Short term borrowings	49.055	0.000	0.000
(b) Trade payables	560.732	455.142	273.294
(c) Other current liabilities	65.101	51.154	20.872
(d) Short-term provisions	17.156	12.229	21.284
Total Current Liabilities (4)	692.044	518.525	315.450
TOTAL	880.070	689.249	509.661
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	139.500	112.004	105.110
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	2.257	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	13.154	13.154	13.154
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	6.234	6.123	6.095
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	161.145	131.281	124.359
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	556.195	441.706	286.394
(c) Trade receivables	123.639	73.217	75.177
(d) Cash and cash equivalents	15.099	26.136	6.833
(e) Short-term loans and advances	23.992	16.909	16.898
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	718.925	557.968	385.302
TOTAL	880.070	689.249	509.661

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	3597.078	2820.909	2279.401
	Other Income	0.133	5.660	17.658
	TOTAL (A)	3597.211	2826.569	2297.059
Less	EXPENSES
	Cost of Materials Consumed	2962.462	2447.556	1995.875
	Farm Expenses	314.525	221.537	164.428
	Hatcheri Expenses	30.575	7.020	0.000
	Administrative Expenses	47.469	35.392	26.317
	Selling and distribution expenses	127.938	71.207	38.612
	Employed benefits expenses	80.255	57.897	50.808
	Extraordinary Item			(0.103)
	TOTAL (B)	3563.224	2840.609	2275.937
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	33.987	(14.040)	21.122
Less	FINANCIAL EXPENSES (D)	12.339	5.615	2.573
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	21.648	(19.655)	18.549
Less/ Add	DEPRECIATION/ AMORTISATION (F)	13.181	9.596	8.170
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	8.467	(29.251)	10.379
Less	TAX (I)	2.213	0.243	0.614
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	6.254	(29.494)	9.765
	Earnings / (Loss) Per Share (Rs.)	1.65	(7.78)	1.78

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.17	(1.05)	0.43
Operating Profit Margin (PBDIT / Sales)	(%)	0.94	(0.50)	0.93
Return on Total Assets (PBT/Total Assets}	(%)	0.98	(4.33)	2.09
Return on Investment (ROI) (PBT/Networth)		0.06	(0.20)	0.06
Debt Equity Ratio (Total Debt /Networth)		0.43	0.05	0.01
Current Ratio (Current Asset/Current Liability)		1.04	1.08	1.22

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	37.917	37.917	37.917
Reserves & Surplus	138.003	108.510	114.764
Net worth	175.920	146.427	152.681
long-term borrowings	1.651	6.821	16.915
Short term borrowings	0.000	0.000	49.055
Total borrowings	1.651	6.821	65.970
Debt/Equity ratio	0.009	0.047	0.432

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2279.401	2820.909	3597.078
		23.757	27.515

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2279.401	2820.909	3597.078
Profit	9.765	(29.494)	6.254
	0.43%	(1.05%)	0.17%

LOCAL AGENCY FURTHER INFORMATION

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	No
8]	No. of employees	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
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	No

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

ECONOMIC SCENARIO

India is going through a challenging macro-economic environment as it heads through election year in 2014. Moderation of growth of the Indian Economy over the past year is a pertinent concern on the weakening of economic fundamentals for the country. Structural bottlenecks, slow policy movement, stubborn interest rates on account of high inflation, declining exports, low non-food credit growth, declining industrial growth and subdued demand for both consumption and investment has led to the systematic decline in the overall economic growth of the country in FY13. On its part, the Reserve Bank of India (RBI) has been fine-tuning its policies to prop-up growth and curb inflation. We expect growth to revive gradually going into the next fiscal; with an estimate for GDP growth of 5.9% - 6.0% in FY14. This will also be supported by affirmative action by the RBI, though the timing could be more during the second half of the year. Further it is assumed that the government will focus more on policies that do not require legislative approval in order to revive the growth process and that while one can hope for important bills to be moved in the Parliament, the assumption here is that this may not happen and in terms of policy, the situation would largely be a status quo.

INDUSTRY OUTLOOK

India’s poultry industry represents a major success story. While agricultural production has been rising at the rate

around 2 percent per annum over the past two to three decades, poultry production has been rising at the rate of around 8 percent per annum.

The forces that are sustaining this growth are many. High per capita income growth and relatively low prices have played a catalytic role. A moderate shift in the consumption pattern from vegetarianism to non-vegetarianism is also helping the industry by increasing the demand for poultry products. Despite temporary supply mismatches resulting in demand substitution to other meat options, demand growth continues to remains healthy at 7-8% due to favorable socio economic factors such as changing eating habits, higher purchasing power, urbanization, increasing health consciousness towards protein rich diet, preferred meat due to religious preferences, etc over the years.

OPPORTUNITIES AND THREATS

The livestock industry in India is making rapid strides forward and plays a multi-faceted role in contributing to the

economic development. India ranks 3rd in egg production and 4th in broiler production in the world. The poultry sector has transformed itself from a mere backyard activity into a major commercial activity with participation by big players and also successful implementation of contract poultry farming on a large scale. However, industry faces certain key challenges other than high feed costs; include inadequate cold chain and transportation infrastructure, high vulnerability to disease outbreaks, and highly volatile realizations affecting cash flows.

RISKS AND CONCERNS

In the future several challenges and problems, in addition to already existing, will face poultry production. These will include: strong global competition; changes in social, political and consumer perceptions with regard to food safety, animal welfare and environmental protection. The loss of consumer confidence and trust in the quality and safety of poultry meat and poultry products will remain a major challenge. The modern poultry industry aims at high production and better quality at a low cost. This, in addition to an increase in the demand for poultry meat, necessitates constant, efficient and goal-oriented healthcare to prevent the development of diseases. In general, consumer expectations for high quality products will strongly influence future production methods. This means that everyone involved in the production chain need to share more responsibilities and that cooperation will be intensified.

INTERNAL CONTROL SYSTEM

The Companies Internal control/supervisory system is established to ensure that board and management are able to achieve their business objectives in a prudent manner, safeguarding the interest of Companies shareholders and other stakeholders whilst minimizing the key risk such as fraud, misleading financial statements, breach of legal and contractual obligation, unauthorized business activity.

UNAUDITED FINANCIAL RESULTS (RCVICWED) FORTHE QUARTER ENDED ON 31.12.2014

Sr. No	Particulars		Standalone
			Quarter Ended		Nine Months Ended
			31.12.2014	30.09.2014	31.12.2014
			Unaudited	Unaudited	Unaudited
1	Income From Operations
	a. Net Sales/ Income from Operations (Net of Excise Duty)		1309.179	1023.130	3315.179
	b. Other Operating Income		0.115	0.119	0.265
	Total Income from Operations (Net)		1309.294	1023.249	3315.444
2	Expenditure
	a. Cost of material Consumed		1066.477	898.371	2790.145
	d. Employees Benefit Expenses		25.131	24.011	73.155
	e. Depreciation and Amortisation Expenses		3.804	2.880	11.180
	f. Other expenses		178.641	141.125	440.692
	Total Expenses		1274.053	1066.387	3315.172
3	Profit from Operations before Other Income, Interest and Exceptional Items		35.241	(43.138)	0.272
4	Other Income		--	--	--
5	Profit from ordinary activities before finance cost & exceptional items		35.241	(43.138)	0.272
6	Finance Costs		9.848	7.691	24.514
7	Profit from ordinary activities after finance costs & exceptional items		25.393	(50.829)	(24.242)
8	Exceptional items		--	--	--
9	Profit from ordinary activities before tax		25.393	(50.829)	(24.242)
10	Tax Expense
	- Income Tax
	- Deferred Tax
11	Net Profit from ordinary activity after tax		25.393	(50.829)	(24.242)
12	Extraordinary Items		--	--	--
13	Net Profit After Tax
14	Paid-up equity share capital (face value of Rs.10 per share)		37.917	37.917	37.917
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year
16	Earning Per Share (of Rs.10 each) (not annualized)
	Basic EPS		6.70	(13.35)	(6.39)
	Diluted EPS		6.70	(13.35)	(6.39)
A		PARTICULARS OF SHAREHOLDING
17		Public Shareholding
		- No. of shares	2385650	2385650	2385650
		- Percentage of shareholding	62.92%	62.92%	62.92%
18		Promoter & Promoter Group Shareholding
		a) Pledged/Encumbered
		- No. of shares	Nil	Nil	Nil
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
		- Percentage of shareholding (as a % of the total share capital of the company)	Nil	Nil	Nil
		b) Non-encumbered
		- No. of shares	1406050	1406050	1406050
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	100%	100%	100%
		- Percentage of shareholding (as a % of the total share capital of the company)	37.08%	37.08%	37.08%

	Particulars	Three months ended 31.12.2014
B	Investor Complaints
	Pending at the beginning of the quarter	0
	Received during the quarter	0
	Disposed off during the quarter	0
	Remaining unresolved at the end of the quarter	0

Note:

1. Above Unaudited Financial Results were reviewed by Audit Committee and approved by Board of Directors in their meeting held on 14th February 2015

2. The Company has been primarily engaged in Poultry Breeding & Farming activities only. As such there is no separate segment under Accounting Standard -AS 17 on segment reporting

3. Depreciation for the quarter has been charged on the basis of the useful life and the rates being followed upto 31st March 2014. since estimation of the remaining useful life of all assets as required in the companies act 2013 is in process difference if any will be recognised by March 2015

4. These figures are standalone figures as they do not includes the figures of subsidiary Company M/s. Puregene Biotech Limited.

5. The deffred tax will be calculated at the end of year.

6. The statuary auditors have carried out a limited review of the results for the quarter ended 31st Dec, 2014

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10515373	26/06/2014	2,070,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PARELW  , MUMBAI, Maharashtra - 400013, INDIA	C16721235
2	10544621	30/04/2014	774,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PARELW  , MUMBAI, Maharashtra - 400013, INDIA	C41172156
3	10488730	07/07/2014 *	200,000,000.00	PUNJAB NATIONAL BANK	KATORA TALAB (PHOOL CHOWK), RAIPUR, Chhattisgarh -  492007, INDIA	C13826706
4	10433413	29/05/2013	2,691,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PARELW  , MUMBAI, Maharashtra - 400013, INDIA	B78124344
5	90203565	22/03/1999	400,000.00	CANARA BANK	H.Y. ROAD, INDORE, Madhya Pradesh, INDIA	-
6	90203506	06/11/1998	390,000.00	CANARA BANK	M.G. ROAD, INDORE, Madhya Pradesh, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land
• Buildings
• Poultry Equipment
• Hatcheri Equipment
• Feed Mill Equipment
• Cycle
• Computer Equipment
• Office equipment
• Furniture and Fixtures
• Vehicle

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.61.94
UK Pound	1	Rs.96.24
Euro	1	Rs.70.39

INFORMATION DETAILS

Information Gathered by :	SUM
Analysis Done by :	PRP
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		35

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.