MIRA INFORM REPORT

Report No. :	304626
Report Date :	28.01.2015

IDENTIFICATION DETAILS

Name :	BAGALKOT CEMENT & INDUSTRIES LIMITED
Registered Office :	Stadium House, Block No.1, 6^th Floor, Veer Nariman Road, Churchgate, Mumbai – 400020, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	30.07.2007
Com. Reg. No.:	11-172697
Capital Investment / Paid-up Capital :	Rs.100.851 Millions
CIN No.: [Company Identification No.]	U26940MH2007PLC172697
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADCB2063L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The company is engaged in manufacturing OPC 43, PSC and PPC grades of cement.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 149000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. As per Registrar of companies the date of balance sheet i.e. financials filed is shown as 31^st March, 2014 but the documents related to the financials for the year 2014 are not available from any sources. As per available financial of 2013, the company is incurred a loss from its operations. 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. Note : The company has declared as a sick unit in 2007 under BIFR. The company’s has filed on 21^st February, 2012, Modified Draft Rehabilitation Scheme with BIFR for reschedulement of repayments and the same is under consideration.

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	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. Pramod Sharma
Designation :	Finance Head
Contact No.:	91-22-43552000
Date :	23.01.2015

LOCATIONS

Registered Office / Corporate Office :	Stadium House, Block No.1, 6th Floor, Veer Nariman Road, Churchgate, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-43552000 / 43552011 / 22022897 / 22023841
Fax No.:	91 22 22022884
E-Mail :	info@bagalkotcement.com investorsupport@esw.co.in
Website :	http://bagalkotcement.com
Factory / Operations Office :	Bagalkot - 578 111, District : Bagalkot, Karnataka, India
Tel. No.:	91-8354-220252 / 220637
Fax No.:	91-8354-220736
Branch Office :	Located At : Karnataka Goa Maharashtra

DIRECTORS

AS ON 30.09.2014

Name :

Ajay Kumar Kanoria

Designation :

Managing director

Address :

1-Bhagwati Bhawan, 31-B, M.L. Dahanukar Marg, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

27.10.1954

Date of Appointment :

05.03.2008

Voter ID No.:

MT/04/024/258601

DIN No.:

00044907

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	U17309WB1980PLC107991	TIRUPATI SCREEN PRINTING CO LTD	Director	31/01/1983	31/01/1983	-	Active	NO
2	L24111WB1961PLC025067	ASIATIC OXYGEN LTD	Director	13/06/1986	13/06/1986	-	Active	NO
3	L70101WB1974PLC104781	PRATAP HOLDINGS LIMITED	Director	15/09/1993	15/09/1993	-	Active	NO
4	U72200MH1999PTC122857	INDEKKA SOFTWARE PRIVATE LIMITED	Director	01/12/1999	01/12/1999	-	Active	NO
5	U72200WB2000PTC109287	AEGIS INFOTECH PVT LTD	Director	19/04/2000	19/04/2000	-	Active	NO
6	U51900WB1993PTC104783	ESOLS WORLDWIDE PRIVATE LIMITED	Director	02/05/2006	02/05/2006	-	Active	NO
7	L11100JH1975SGC001202	BIHAR AIR PRODUCTS LIMITED	Nominee director	07/08/2006	07/08/2006	14/11/2014	Active	NO
8	U26940MH2007PLC172697	BAGALKOT CEMENT & INDUSTRIES LIMITED.	Managing director	05/03/2008	30/07/2007	-	Active	NO
9	U36900WB1999PTC104712	INDESSA GASES PRIVATE LIMITED	Director	07/07/2008	07/07/2008	-	Active	NO
10	L15421WB1916PLC104929	KANORIA SECURITIES & FINANCIAL SERVICES LIMITED	Director	30/01/2009	30/01/2009	28/05/2014	Active	NO
11	U74140WB1979PTC104928	TANNA ELECTRO-MECHANICS PRIVATE LIMITED	Director	21/09/2010	16/08/2010	-	Active	NO
12	U24110MH2003PTC143604	SIX-SIGMA GASES INDIA PRIVATE LIMITED	Director	10/09/2012	10/09/2012	-	Active	NO

Name :

Madanjit Singh

Designation :

Director

Address :

P1, Patropolis, 58 Shahid Bhagat Singh, Mumbai – 400005, Maharashtra, India

Date of Birth/Age :

06.02.1946

Date of Appointment :

30.09.2014

DIN No.:

01671790

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	U18101MH2001PTC133552	ORGAN CLOTHING PRIVATE LIMITED	Director	28/02/2007	28/02/2007	-	Active	NO
2	U26940MH2007PLC172697	BAGALKOT CEMENT & INDUSTRIES LIMITED.	Director	30/09/2014	06/02/2008	-	Active	NO
3	U92400MH1998PTC113727	FAIRWAY SPORTS PRIVATE LIMITED	Additional director	15/01/2010	15/01/2010	26/08/2013	Active	NO
4	U70109DL2006PTC150408	SRM REALTY ADVISORS PRIVATE LIMITED	Director	02/03/2010	02/03/2010	-	Active	NO

Name :

Preeti Gautam Mehta

Designation :

Director

Address :

22, Bennett Villa, 27, Wodehouse Road, Colaba, Mumbai – 400039, Maharashtra, India

Date of Birth/Age :

01.10.1959

Date of Appointment :

30.09.2014

DIN No.:

00727923

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	U99999MH1962PLC012424	BALMAR LAWRIE-VAN LEER LIMITED	Director	12/04/2002	12/04/2002	29/02/2008	Active	NO
2	U24110MH2003PTC143604	SIX-SIGMA GASES INDIA PRIVATE LIMITED	Director	06/03/2006	06/03/2006	29/12/2007	Active	NO
3	L72900MH1992PLC069662	HEXAWARE TECHNOLOGIES LIMITED	Director	23/03/2007	23/03/2007	11/10/2013	Active	NO
4	U26940MH2007PLC172697	BAGALKOT CEMENT & INDUSTRIES LIMITED.	Director	30/09/2014	06/02/2008	-	Active	NO
5	U55204MH2012PTC235401	VanMYT Hospitality Private Limited	Director	07/09/2012	07/09/2012	-	Strike off	NO
6	L21012MH1964PLC013058	PUDUMJEE PULP AND PAPER MILLS LIMITED	Additional director	01/11/2014	01/11/2014	-	Active	NO

Name :

Madhusoodan Jaikarandas Sanganeria

Designation :

Director

Address :

Carol Mansion, 3^rd Floor, Temple Road, Mahim West, Mumbai – 400016, Maharashtra, India

Date of Birth/Age :

15.01.1933

Date of Appointment :

30.09.2014

Voter ID No.:

MT/06/034/306013

DIN No.:

00039970

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	L99999MH1948PLC006830	BAGALKOT UDYOG LIMITED	Director	15/09/2014	16/12/1987	-	Active	NO
2	U26940MH2007PLC172697	BAGALKOT CEMENT & INDUSTRIES LIMITED.	Director	30/09/2014	06/02/2008	-	Active	NO

Name :

Jimmy Rustom Anklesaria

Designation :

Director

Address :

Flat No.6, Building 4, Batliwala Building, Old Khareghat Colony, Hughes Road, Mumbai – 400007, Maharashtra, India

Date of Birth/Age :

27.12.1954

Date of Appointment :

30.09.2014

DIN No.:

03464365

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	L29309AP1990PLC011721	BARTRONICS INDIA LIMITED	Director	29/09/2011	14/02/2011	23/12/2011	Active	NO
2	U26940MH2007PLC172697	BAGALKOT CEMENT & INDUSTRIES LIMITED.	Director	30/09/2014	28/06/2011	-	Active	NO
3	L01110MH2006PLC161345	BAJAJ CORP LIMITED	Director	01/08/2012	08/08/2011	01/10/2014	Active	NO
4	U70101MH2004PTC146231	UPTOWN PROPERTIES AND LEASING PRIVATE LIMITED	Director	01/08/2012	28/09/2011	09/12/2013	Active	NO
5	U74999MH2013PTC240050	BLUE OCEANIC VASUAN PRIVATE LIMITED	Director	29/01/2013	29/01/2013	-	Active	NO

Name :

Suresh Atmaram Sharma

Designation :

Director

Address :

16, Suvarna Deep, 34-A, S.V. Road, Santacruz West, Mumbai – 400054, Maharashtra, India

Date of Birth/Age :

14.12.1961

Date of Appointment :

01.04.2010

Voter ID No.:

MT/08/038/153089

DIN No.:

00038247

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	U67190MH1995PTC086746	ADINO CREDIT RESOURCES FINANCE PRIVATE LIMITED	Director	23/03/1995	23/03/1995	-	Strike off	NO
2	U72200WB2000PTC109287	AEGIS INFOTECH PVT LTD	Director	31/05/2002	31/05/2002	-	Active	NO
3	U72200MH1999PTC122857	INDEKKA SOFTWARE PRIVATE LIMITED	Director	26/02/2006	26/02/2006	-	Active	NO
4	U24110MH2003PTC143604	SIX-SIGMA GASES INDIA PRIVATE LIMITED	Whole-time director	01/04/2010	06/03/2006	-	Active	NO
5	U26940MH2007PLC172697	BAGALKOT CEMENT & INDUSTRIES LIMITED.	Director	01/04/2010	30/07/2007	-	Active	NO
6	L99999MH1948PLC006830	BAGALKOT UDYOG LIMITED	Director	29/09/2008	11/03/2008	-	Active	NO

KEY EXECUTIVES

Name :	Ajit Pandurang Walwaikar
Designation :	Secretary
Address :	101, Sanghavi Majestic, Manmala Tank Road, Mahim, Mumbai – 400016, Maharashtra, India
Date of Birth/Age :	29.12.1954
Date of Appointment :	13.04.2012
PAN No.:	AAAPW2434N

Name :	Mr. Pramod Sharma
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Shareholders details file attached

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.01
Bodies corporate	8.59
Directors or relatives of Directors	91.24
Other top fifty shareholders	0.04
Other	0.09
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is engaged in manufacturing OPC 43, PSC and PPC grades of cement.
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

Not Divulged

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Non-convertible debentures others	19.304	21.804
Rupee term loans from others	58.798	58.798
Short-term borrowings
Other loans and advances	39.239	43.949
Total	117.341	124.551

Banking Relations :
Auditors :
Name :	V. K. Beswal and Associates Chartered Accountants
Address :	408, 4th Floor, Rewa Chamber, 31, New Marine Lines,
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFV1807C
Name :	Santhappa and Company Chartered Accountants
Address :	201, 2nd Floor, House of Lords, St. Karks Road,
PAN N Income-tax PAN of auditor or auditor's firm :	AADFS0295A
Memberships :	--
Collaborators :	--
Other Related Party :	Bagalkot Udyog Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10,250,000	Equity Shares	Rs.10/- each	Rs.102.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,085,084	Equity Shares	Rs.10/- each	Rs.100.851 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	100.851	100.851	100.851
(b) Reserves & Surplus	(49.021)	(33.386)	(14.745)
(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)	51.830	67.465	86.106
(3) Non-Current Liabilities
(a) long-term borrowings	563.100	610.600	524.644
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	11.817	10.030	9.292
Total Non-current Liabilities (3)	574.917	620.630	533.936
(4) Current Liabilities
(a) Short term borrowings	39.239	43.949	35.951
(b) Trade payables	139.605	164.488	60.562
(c) Other current liabilities	362.443	208.222	157.376
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	541.287	416.659	253.889
TOTAL	1168.034	1104.754	873.931
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	404.387	350.719	156.926
(ii) Intangible Assets	388.979	389.270	387.621
(iii) Capital work-in-progress	0.177	48.968	42.835
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.015	0.015	0.015
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	14.407	14.363	10.327
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	807.965	803.335	597.724
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	183.097	171.781	137.751
(c) Trade receivables	10.457	5.455	11.671
(d) Cash and cash equivalents	63.881	60.167	53.467
(e) Short-term loans and advances	102.634	64.016	73.318
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	360.069	301.419	276.207
TOTAL	1168.034	1104.754	873.931

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	905.655	928.987	539.503
	Other Income	93.346	60.065	20.026
	TOTAL (A)	999.001	989.052	559.529
Less	EXPENSES
	Cost of Materials Consumed	187.261	241.367	110.112
	Purchases of Stock-in-Trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(49.251)	15.868	(5.127)
	Employees benefits expense	69.183	59.498	49.357
	Other expenses	752.530	660.116	384.230
	TOTAL (B)	959.723	976.849	538.572
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	39.278	12.203	20.957
Less	FINANCIAL EXPENSES (D)	25.851	11.865	12.261
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	13.427	0.338	8.696
Less/ Add	DEPRECIATION/ AMORTISATION (F)	29.062	18.979	17.241
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(15.635)	(18.641)	(8.545)
Less	TAX (H)	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	(15.635)	(18.641)	(8.545)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(33.386)	(14.745)	(6.200)
	BALANCE CARRIED TO THE B/S	(49.021)	(33.386)	(14.745)
	Earnings / (Loss) Per Share (Rs.)	(1.55)	(1.85)	---

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT / Sales)	(%)	(1.73)	(2.01)	(1.58)
Operating Profit Margin (PBIDT/Sales)	(%)	4.34	1.31	3.88
Return on Total Assets (PBT/Total Assets}	(%)	(1.34)	(1.77)	(1.03)
Return on Investment (ROI) (PBT/Networth)		(0.30)	(0.28)	(0.10)
Debt Equity Ratio (Total Debt /Networth)		11.62	9.70	6.51
Current Ratio (Current Asset/Current Liability)		0.67	0.72	1.09

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	100.851	100.851	100.851
Reserves & Surplus	(14.745)	(33.386)	(49.021)
Net worth	86.106	67.465	51.830
long-term borrowings	524.644	610.600	563.100
Short term borrowings	35.951	43.949	39.239
Total borrowings	560.595	654.549	602.339
Debt/Equity ratio	6.511	9.702	11.621

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)
Sales	539.503	928.987	905.655
		72.193	(2.512)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	539.503	928.987	905.655
Profit/Loss	(8.545)	(18.641)	(15.635)
	(1.58%)	(2.01%)	(1.73%)

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	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	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	No

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Intercorporate borrowings	95.000	140.000
Deferred sales tax loan	353.266	353.266
Loans taken for other fixed assets	36.732	36.732
Total	484.998	529.998

PRODUCTION AND PERFORMANCE

Although the capacity utilization of clinker has improved by about 21%, the cement production are slightly lower with 80% capacity utilization and consequently lower turnover during the year. The increase in the cost of raw materials and fuel could not be compensated in the selling prices. However, the Directors are hopeful that with the further improved capacity utilization, the working of the Company will improve.

SANCTIONED SCHEME OF BIFR

Although the BIFR has time and again directed the Government of Karnataka (GOK) and the Ministry of Coal (MOC), Government of India, to meet their obligations, they have not yet fulfilled their prior obligations of renewing the Mining Leases of the Company and supplying coal under linkage, respectively. The Company has, therefore, been constrained to buy limestone and coal from the open market resulting in much higher costs. The Company has suffered heavy losses due to the GOK & MOC not yet meeting their obligations under the Sanctioned Scheme even after a lapse of five and a half years. Had the GOK and MOC met their obligations on time, the Company would have by now completed its repayment obligations and become close to debt free.

The Company has since submitted a Modified Draft Rehabilitation Scheme (MDRS) to BIFR. Pursuant to the direction of BIFR, IDBI (the Monitoring Agency) has finalized the MDRS and submitted the same to BIFR. The MDRS is under consideration of the BIFR. The Directors are hopeful that the GOK and MOC will meet their prior obligations and support the MDRS so that the Company is enabled to meet its obligations of repayment to the State Governments, KSIIDC and KSFC in the same time frame post the GOK and MOC meeting their obligations as was envisaged in the original Sanctioned Scheme.

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.61.46
UK Pound	1	Rs.92.77
Euro	1	Rs.69.03

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	RAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	----
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		26

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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