MIRA INFORM REPORT

Report No. :	303884
Report Date :	22.01.2015

IDENTIFICATION DETAILS

Name :	SWASTIK PIPE LIMITED (w.e.f.03.04.2013)

Formerly Known As :	SWASTIK PIPES LIMITED

Registered Office :	Property No:4, Central Market, West Avenue Road, Punjabi Bagh (West), New Delhi - 110026

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	10.10.1973

Com. Reg. No.:	55-006881

Capital Investment / Paid-up Capital :	Rs.87.725 Millions

CIN No.: [Company Identification No.]	U74899DL1973PLC006881

TIN No.:	Not Available

IEC No.:	Not Available

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AAACS0322C

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	The company is primarily engaged in the production of Steel Tubes and Pipes and Cold Rolled Strips.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Status :	Satisfactory

Payment Behaviour :	Slow but correct

Litigation :	Exist

Comments :	Subject is an established company having satisfactory track record. The rating rakes into consideration company’s established track record of business operations supported by sound financial base and fair liquidity profile of the company. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings at usual trade terms and conditions.

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Rating = BBB- (Suspended)
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	September 2014

Rating Agency Name	ICRA
Rating	Short Term Rating = A3 (Suspended)
Rating Explanation	Moderate degree of safety and high credit risk
Date	September 2014

Reason for suspension: Absence of requisite information.

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.

LOCATIONS

Registered Office :	Property No:4, Central Market, West Avenue Road, Punjabi Bagh (West), New Delhi – 110026, India
Tel. No.:	91-11-45007777 / 47471717
Fax No.:	91-11-45007788 / 47471718
E-Mail :	info@swastikpipes.com swastikpipes@vsnl.net
Website :	http://www.swastikpipes.com

Works Units l :	41 K.M., Delhi-Rohtak Road, Asaudah, Bahadurgarh District Jhajjar - 124507, Haryana, India
Tel. No.:	91-1276-241175 / 76 / 77 / 222666
Fax No.:	91-1276-241250 / 222600
E-Mail :	works1@swastikpipes.com

Works Units ll :	97 KM Stone, Delhi Agra Road, Village Kotwan Tehsil Chhatta, Kosi Kalan, District Mathura, Uttar Pradesh, India
Tel. No.:	91-5662-231237
Fax No.:	91-5662-231397
E-Mail :	works@swastikpipes.com

Branch Office :	Near Radha Swami Satsang Bhawan, G.T. Road, Village - Libra, Khanna, Punjab, India

Branch Offices :	Also Located At: Ghaziabad Delhi Bangalore Pune Gwalior Faridabad Rookree Ahmedabad Jaipur Navi Mumbai Medchal

DIRECTORS

As on 30.09.2014

Name :

Mr. Devki Nandan Bansal

Designation :

Managing Director

Address :

2/60, Punjabi Bagh, New Delhi - 110026, India

Date of Birth/Age :

14.02.1942

Date of Appointment :

10.10.1973

PAN No.:

AAFPB3422J

DIN No.:

00165482

Other Directorship:

No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

U74899DL1973PLC006881

SWASTIK PIPE LIMITED

Managing director

01/04/2012

10/10/1973

Active

U72900DL1996PTC077179

MEDIA VENTURES INDIA PRIVATE LIMITED

Director

08/01/2007

Active

Name :

Mr. Anupama Bansal

Designation :

Director

Address :

2/60, Punjabi Bagh, New Delhi - 110026, India

Date of Birth/Age :

17.03.1973

Date of Appointment :

25.02.2000

PAN No.:

AEOPB1261N

DIN No.:

00137094

Name :

Mr. Sandeep Kumar Bansal

Designation :

Whole Time Director

Address :

2/60, Punjabi Bagh, New Delhi - 110026, India

Date of Birth/Age :

28.12.1970

Date of Appointment :

26.03.1990

PAN No.:

AAFPB3424Q

DIN No.:

00165391

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1973PLC006881	SWASTIK PIPE LIMITED	Whole-time director	01/11/2013	26/03/1990	-	Active	NO
2	L17111UP1974PLC003979	JINDAL POLY FILMS LIMITED	Director	29/07/2006	29/07/2006	03/09/2008	Active	NO
3	U45400DL2008PLC172361	SWASTIK ENERCON PROJECTS LIMITED	Director	07/01/2008	07/01/2008	11/11/2011	Active	NO
4	U45200DL2006PTC156080	HI-TECH BUILDCON PRIVATE LIMITED	Director	15/09/2010	26/05/2010	-	Active	NO

Name :

Mr. Jagdish Kukreti

Designation :

Whole Time Director

Address :

46 Himalaya Apartment, IP Extn PP Ganj, Delhi-110092, India

Date of Birth/Age :

02.10.1945

Date of Appointment :

01.09.2001

PAN No.:

AEIPK5233M

DIN No.:

00180886

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74899DL1973PLC006881	SWASTIK PIPE LIMITED	Whole-time director	01/04/2013	01/09/2001	-	Active	NO
2	U45400DL2008PLC172361	SWASTIK ENERCON PROJECTS LIMITED	Director	07/01/2008	07/01/2008	11/11/2011	Active	NO
3	U74140DL2013PTC258321	HIMLAND TRADE LINKERS PRIVATE LIMITED	Director	23/09/2013	23/09/2013	-	Active	NO

Name :

Mr. Jagat Parshad Sharma

Designation :

Whole Time Director

Address :

House No-1125, Sector-Vi, Bahadurgarh, Jhajjar - 124507, Haryana, India

Date of Birth/Age :

20.11.1948

Date of Appointment :

01.01.2007

PAN No.:

AAZPS5288H

DIN No.:

01098108

Other Directorship:

No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

U74899DL1973PLC006881

SWASTIK PIPE LIMITED

Whole-time director

01/01/2013

01/01/2007

Active

U62200KA2012PTC066496

Krishna Relocators Private Limited

Director

29/10/2012

Active

Name :

Mr. Naresh Kumar Bansal

Designation :

Director

Address :

House No: 482, Sector-14, Gali No: 256-A, Mandi Dabwali - 125104, Haryana, India

Date of Birth/Age :

26.04.1963

Date of Appointment :

04.06.2009

DIN No.:

02310788

KEY EXECUTIVES

Name :	Mr. Banani Sikdar
Designation :	Secretary
Address :	Block- 6.685, Lodhi Colony, New Delhi - 110003, India
Date of Birth/Age :	13.04.1975
Date of Appointment :	02.09.2002
PAN No.:	BEBPS2339E

MAJOR SHAREHOLDERS

As on 30.09.2014

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Bodies corporate	15.48
Directors or relatives of Directors	83.97
Other top fifty shareholders	0.55
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is primarily engaged in the production of Steel Tubes and Pipes and Cold Rolled Strips.

Products :

Product Description	Item Code No. (ITC Code)
GI/ Black Pipe	73063090
CR Strips	72112350

Brand Names :

Agencies Held :

Exports :

Not Available

Imports :

Not Available

Terms :

Selling :

Not Available

Purchasing :

Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

ABB Limited
Bharat Heavy Electrical Limited (BHEL)
Bharat Heavy Plate and Vessels Limited (BHPV)
Bharat Petroleum Corporation Limited (BPCL)
Bharat Oman Refineries Limited (BORL)
Bridge and Roof Co. (India) Limited (B and R)
BPCL Kochi Refinery
Bharat Sanchar Nigam Limited (BSNL)
Bongaigaon Refinery and Petrochemicals Limited (BRPL)
Central Ground Water Board (CGWB)
Chennai Petroleum Corporation Limited (CPCL)
Director General of Supplies and Disposals (DGD and D)
Engineers India Limited (EIL)
Essar Group
Gujrat Water Supply and Sewerage Board (GWSSB)
Gas Authority of India Limited (GAIL)
Gujrat Gas Co. Limited (GGCL)
Hindustan Zinc Limited (HZL)
Hindustan Copper Limited

No. of Employees :

Not Available

Bankers :

State Bank of Travancore (Lead Bank), Commercial Branch, K. G. Marg, Travancore House, New Delhi - 110001, India
Indian Overseas Bank, Janpath Branch, Delhi, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Term Loan
State Bank of Travancore (Secured by Hypothecation of entire Fixed Assets at Asaudah & Kosi Unit, collaterally secured by entire fixed assets of the company and further guaranteed by Directors)	23.702	42.084
Corporate Loan
State Bank of Travancore (Secured by Hypothecation of entire Fixed Assets at Asaudah & Kosi Unit, collaterally secured by entire fixed assets of the company and further guaranteed by Directors)	187.500	0.000
Auto Loan
HDFC Bank Limited (Secured against Vehicle and Issue of Post-dated Cheques/ ECS Instructions and Personal Guarantee of Directors)	1.437	2.015
SHORT TERM BORROWINGS
Working Capital Loan
State Bank of Travancore	816.614	745.619
Indian Overseas Bank	320.585	404.099
Total	1349.838	1193.817


Auditors :
Name :	Kanodia Sanyal and Associates Chartered Accountants
Address :	1520 Ansal Tower, 38, Nehru Place, New Delhi – 110019, India
PAN No.:	AAAFK8020A

Memberships :	--

Collaborators :	--

Sister Concern :	Not Available

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

1000000	Equity Shares	Rs.100/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

877250	Equity Shares	Rs.100/- each	Rs.87.725 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	87.725	87.725	81.075
(b) Reserves & Surplus	610.195	563.553	481.834
(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)	697.920	651.278	562.909

(3) Non-Current Liabilities
(a) long-term borrowings	212.639	48.149	149.508
(b) Deferred tax liabilities (Net)	59.041	46.839	34.502
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	10.076	9.658	8.431
Total Non-current Liabilities (3)	281.756	104.646	192.441

(4) Current Liabilities
(a) Short term borrowings	1,217.949	1,232.618	1,162.119
(b) Trade payables	489.127	440.605	387.736
(c) Other current liabilities	173.888	155.915	189.423
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	1,880.964	1,829.138	1,739.278

TOTAL	2,860.640	2,585.062	2,494.628

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	524.417	468.023	382.983
(ii) Intangible Assets	0.078	0.110	0.177
(iii) Capital work-in-progress	49.548	80.138	111.769
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.008	0.008	0.008
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.578	11.288	21.831
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	584.629	559.567	516.768

(2) Current assets
(a) Current investments	1.000	1.000	1.500
(b) Inventories	1,176.575	956.012	856.560
(c) Trade receivables	744.845	720.504	698.561
(d) Cash and cash equivalents	67.362	67.371	92.590
(e) Short-term loans and advances	194.344	203.631	235.758
(f) Other current assets	91.885	76.977	92.891
Total Current Assets	2,276.011	2,025.495	1,977.860

TOTAL	2,860.640	2,585.062	2,494.628

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		6,425.046	6,194.957	5,582.970
		Other Income		36.796	52.694	60.430
		TOTAL (A)		6,461.842	6,247.651	5,643.400

Less	EXPENSES
		Cost of Materials Consumed		4,538.937	4,638.749	3,975.646
		Purchase of Stock-in-trade		1,174.379	841.027	892.157
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(99.371)	(57.916)	63.517
		Employee Benefits Expenses		99.946	96.663	83.862
		Other Expenses		489.911	465.836	369.584
		Exceptional Items		0.000	4.274	17.454
		TOTAL (B)		6,203.802	5,988.633	5,402.220

	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			258.040	259.018	241.180

Less	FINANCIAL EXPENSES (D)			155.752	163.878	163.173

	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			102.288	95.140	78.007

Less	DEPRECIATION/ AMORTISATION (F)			32.089	30.032	27.450

	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			70.199	65.108	50.557

Less	TAX (H)			23.558	22.623	16.766

	PROFIT/(LOSS) AFTER TAX (G-H) (I)			46.641	42.485	33.791

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			0.182	0.197	0.106

Less	APPROPRIATIONS
			Transfer to General Reserve	46.500	42.500	33.700
	BALANCE CARRIED TO THE B/S			0.323	0.182	0.197

	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	379.729	320.417	236.353
	TOTAL EARNINGS			379.729	320.417	236.353

	IMPORTS
			Raw Materials	0.000	0.000	96.950
			Stores & Spares	0.861	5.748	2.851
			Capital Goods	0.238	0.000	4.273
	TOTAL IMPORTS			1.099	5.748	104.074

	Earnings / (Loss) Per Share (Rs.)			53.17	52.38	41.68

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.73	0.69	0.61

Operating Profit Margin (PBDIT/Sales)	(%)	4.02	4.18	4.32

Return on Total Assets (PBT/Total Assets}	(%)	2.50	2.60	2.12

Return on Investment (ROI) (PBT/Networth)		0.10	0.10	0.09

Debt Equity Ratio (Total Debt /Networth)		2.05	1.97	2.33

Current Ratio (Current Asset/Current Liability)		1.21	1.11	1.14

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	81.075	87.725	87.725
Reserves & Surplus	481.834	563.553	610.195
Share Application money pending allotment	0.000	0.000	0.000
Net worth	562.909	651.278	697.920

Long Term borrowings	149.508	48.149	212.639
Short Term borrowings	1162.119	1232.618	1217.949
Total borrowings	1311.627	1280.767	1430.588
Debt/Equity ratio	2.330	1.967	2.050

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	5,582.970	6,194.957	6,425.046
		10.962	3.714

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	5,582.970	6,194.957	6,425.046
Profit	33.791	42.485	46.641
	0.61%	0.69%	0.73%

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	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	No
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	Yes
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	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

LITIGATION DETAILS:

IN THE HIGH COURT OF DELHI AT NEW DELHI

CS (OS) 2962/2012

Q.T TRADING LP..... Plaintiff

Through: Ms. Swathi Sukumar, Advocate with Mr. Rhoit Bhardwaj and Ms. Anu Paarcha, Advocates.

Versus

SWASTIK PIPES LIMITED..... Defendant

Through: Mr. Anil Airi, Advocate with Ms. Shreya Bhandari, Advocate.

CORAM:

HON'BLE MR. JUSTICE MANMOHAN

ORDER

12.01.2015

I.A. 583/2015 in CS(OS) 2962/2012

Present application has been filed under Order XIV Rule 5 CPC for re-framing of issue No.5. Issue notice.

Ms. Shreya Bhandari, learned counsel accepts notice on behalf of defendant. She states that she has no objection to the present application being allowed.

With consent of parties, the issue No.5 is re-framed as under:-

5. Whether the judgment passed by the Texas Court is not in accordance with the provisions of Section 13(a) to (f)? OPD.

Accordingly, present application is allowed.

MANMOHAN, J

JANUARY 12, 2015

js

8

$

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
LONG TERM BORROWINGS
Deposits from Public	0.000	4.050
SHORT TERM BORROWINGS
From Dealers as Trade Deposits	11.600	30.200
From Public Deposits	5.700	0.250
From Body Corporates	63.450	52.450
Total	80.750	86.950

OPERATIONAL FINANCIAL RESULTS:

During the year ended 31st March, 2014 the company has produced 77026.540 M.T. (Previous Year 85052.979 M.T) of Steel Pipes and Tubes and achieved the production of 40425.689 M.T. (Previous Year 30406.562 M.T) of Cold Rolled Strips/ Coils/ Sheet. Further, production of G.I. / M.S Wire and Stainless Steel Pipes is in preliminary stage and company expects growth in future in these products also. Company has achieved 3.71% growth in Turnover and 11.06% growth in PAT as compared to the previous year.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10485277	31/01/2014	200,000,000.00	State Bank of Travancore	Commercial Branch, K.G. Marg, Travancore Palace, New Delhi, Delhi - 110001, India	C00623660
2	10417580	13/03/2013	100,000,000.00	Indian Overseas Bank	Janpath Branch, F-47, Malhotra Building, Janpath, New Delhi, Delhi - 110001, India	B72543838
3	10306626	29/08/2011 *	34,000,000.00	State Bank of Travancore	Commercial Branch,, Travancore Palace, 14 K.G. Marg,, New Delhi, Delhi - 110001, India	B21499348
4	10278349	24/04/2012 *	1,580,000,000.00	State Bank of Travancore (Lead Bank)	Commercial Branch,, Travancore Palace, 14 K.G. Marg,, New Delhi, Delhi - 110001, India	B38229571
5	10190614	26/03/2011 *	80,000,000.00	State Bank of Travancore	Commercial Branch, Travancore Palace, 14 K.G. Marg,, New Delhi, Delhi - 110001, India	B11579711
6	90042642	06/09/2000 *	25,900,000.00	The Sendrrs State Bank Limited	Daryagunj, Delhi, Delhi - 110001, India	-

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.61.61
UK Pound	1	Rs.93.49
Euro	1	Rs.71.38

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO

TOTAL		42

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

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

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

RATING EXPLANATIONS

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

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

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