MIRA INFORM REPORT

Report No. :	331167
Report Date :	10.07.2015

IDENTIFICATION DETAILS

Name :	EVEREST INDUSTRIES LIMITED
Registered Office :	Gat No.152, Lakhmapur, Taluka Dindori, Nashik – 422202, Maharashtra
Tel. No.:	91-2557-250375/ 462
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	03.04.1934
Com. Reg. No.:	11-002093
Capital Investment / Paid-up Capital :	Rs.152.900 Million
CIN No.: [Company Identification No.]	L74999MH1934PLC002093
TAN No.: [Tax Deduction & Collection Account No.]	PNEE01437C
PAN No.: [Permanent Account No.]	AAACE7550N
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturing and Trading of products like Roofing Products, Ceilings, Walls, Flooring, Cladding, Doors, Pre-engineered Steel Buildings and Other Building Products and Accessories
No. of Employees :	840 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and established company incorporated during 1934 having a good track record. The company has progressed well during FY 2015. General financial position of the company is sound and healthy. Further the rating also takes into consideration company established position in the domestic asbestos-Cement (AC) roofing market. Trade relations are reported as fair. Business is active. Payments terms are reported to be regular and as per commitment. In view of long track record and extensive experience of its promoters, the company can be considered good for normal business dealings at usual trade terms and condition.

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	CRISIL
Rating	Long Term Rating=A+
Rating Explanation	Adequate degree of safety and carry low credit risk.
Date	17.04.2015

Rating Agency Name	CRISIL
Rating	Short Term Rating=A1
Rating Explanation	Very strong degree of safety and carry very lowest credit risk.
Date	17.04.2015

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 31-03-2013.

INFORMATION DENIED

Management Non Co-operative (91-2557-250462)

LOCATIONS

Registered Office/ Factory:	Gat No. 152, Lakhmapur, Taluka Dindori, Nashik – 422202, Maharashtra, India
Tel. No.:	91-2557-250375/ 462
Fax No.:	91-2557-250376
E-Mail :	compofficer@everestind.com info@everestind.com
Website :	http://www.everestind.com
Head/ Corporate Office :	Genesis, A-32 Mohan Co-operative Industrial Estate Mathura Road New Delhi – 110044, India
Tel. No.:	91-11-41731951/ 52
Fax No.:	91-11-46566370
E-Mail :	careers@everestind.com info@everestind.com
Factories :	Kymore Works Everest Nagar, P.O. Kymore, District Katni – 438880 Madhya Pradesh, India Kolkata Works ‘Everest House’ 1, Taratola Road, Garden Reach, Kolkata – 700024, West Bengal, India Podanur Works Podanur P O., Coimbatore – 641023, Tamilnadu, India Bhagwanpur Works Khasra Nos.158 and 159, Village Lakesari, Pargana Bhagwanpur, Tehsil Roorkee, District Haridwar – 247661, Uttarakhand, India Somnathpur Works Z5, IID Centre, Somnathpur, Tehsil Remuna, District. Baleshwar – 756019, Odisha, India Ranchi Works Sarwal Namkum, Opposite Tola – Charna Bera Ranchi – 834010, Jharkhand, India

DIRECTORS

AS ON 31.03.2014

Name :	Mr. Aditya Vikram Somani
Designation :	Chairman
Date of Birth	04.11.1973
Qualifications	MBA, PGDM, M.Com.
Date of Appointment	07.11.2005
Name :	Mr. M. L. Gupta
Designation :	Vice Chairman
Name :	Mr. Sandeep Junnarkar
Designation :	Director
Name :	Mr. Madan Lal Narula
Designation :	Director
Date of Birth	25.10.1940
Qualifications	B.Sc. Engineering (Electrical)
Date of Appointment	30.01.2008
Name :	Mr. Amitabh Das Mundhra
Designation :	Director
Name :	Mr. B. L. Taparia
Designation :	Director
Date of Birth	05.07.1950
Qualifications	B.Com, LL.B., F.C.S.
Date of Appointment	10.5.2013
Name :	Ms. Bhavna G. Doshi
Designation :	Director
Name :	Mr. Manish Sanghi
Designation :	Managing Director
Date of Birth	04.02.1963
Qualifications	08.07.2002
Date of Appointment	B.E. (Mech.), PGDM (IIM-A)
Name :	Mr. Y. Srinivasa Rao
Designation :	Executive Director (Operations)
Qualifications	B.Sc. Engg. (Mechanical)

KEY EXECUTIVES

Name :	Mr. Neeraj Kohli
Designation :	Company Secretary

SHAREHOLDING PATTERN

As on 31.03.2015

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	7520470	49.18
Sub Total	7520470	49.18
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7520470	49.18
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2166164	14.17
Financial Institutions / Banks	1075	0.01
Central Government / State Government(s)	200	0.00
Insurance Companies	187	0.00
Foreign Institutional Investors	1275	0.01
Sub Total	2168901	14.18
(2) Non-Institutions
Bodies Corporate	700182	4.58
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	3236602	21.17
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1197516	7.83
Any Others (Specify)	467424	3.06
Non Resident Indians	130471	0.85
Trust & Foundation	336953	2.20
Sub Total	5601724	36.63
Total Public shareholding (B)	7770625	50.82
Total (A)+(B)	15291095	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	15291095	0.00

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

Category of Shareholder	No. of Shares	Percentage of Holding
Falak Investment Private Limited	73,83,470	48.29
Trapu Cans Private Limited	1,37,000	0.90
Total	75,20,470	49.18

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

Category of Shareholder	No. of Shares	Percentage of Holding
Reliance Capital Trustee Co Limited - Reliance Mid & Small Cap	966748	6.32
Everest Staff Welfare Trust	336478	2.20
SBI Equity Opportunities Fund SeriesI	300000	1.96
HDFC Trustee Company Ltd -HDFC Infrastructure Fund	330885	2.16
HSBC Progressive Themes Fund	196500	1.29
SBI Equity Opportunities Fund SeriesII	177147	1.16
Total	2307758	15.09

Shareholding of securities (including shares, warrants, convertible securities) of persons (together with PAC) belonging to the category “Public” and holding more than 5% of the total number of shares of the company

Category of Shareholder	No. of Shares	Percentage of Holding
Reliance Capital Trustee Co Ltd - Reliance Mid & Small Cap	966748	6.32
Total	966748	6.32

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading of products like Roofing Products, Ceilings, Walls, Flooring, Cladding, Doors, Pre-engineered Steel Buildings and Other Building Products and Accessories

Products :

Products Description	Item Code No.
As Bestos Cement Corrugated Sheets	6811-10-00
Fibre Cement Sheets Other Than Corrugated	9811-20-90
Prefabricated Steel Building	9406-00-19

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

840 (Approximately)

Bankers :

· State Bank of India

· ICICI Bank Limited

· Axis Bank Limited

· HDFC Bank Limited

· Kotak Mahindra Bank Limited

· DBS Bank Limited

Facilities :

SECURED LOANS	31.03.2015 Rs. In Million	31.03.2014 Rs. In Million
Long Term Borrowings
Term Loans from Banks		513.270
Short Term Borrowings
Loans from Banks
Cash Credit		439.211
Working Capital Demand Loan		500.000
Buyer’s Credit		716.337
Total	NA	2168.818

NOTES:

LONG TERM BORROWINGS

External Commercial Borrowing (ECB) from ICICI Bank Limited of Rs.60.100 Million (previous year Rs.163.140 Million) is secured by a first pari-passu charge over all the immoveable and moveable fixed assets other than the immoveable fixed assets situated at Podanur plant and second pari-passu charge on all current assets of the Company. The ECB is repayable in 12 half yearly instalments of USD 1,000,000; the last instalment is due in July 2014. The rate of interest is Libor+1.03% per annum.

External Commercial Borrowing (ECB) from DBS Bank Limited of Rs.536.640 Million (previous year Rs.619.200 Million) is secured by first pari-passu charges on all the immoveable and movable fixed assets other than the immoveable fixed assets situated at Podanur and Kolkata and second pari passu charge on all present and future current assets of the Company. The ECB is repayable in 15 quarterly instalments of USD 800,000; the last instalment is due in April 2017. The rate of interest is 10.40% per annum.

Term Loan from HDFC Bank Limited of Rs.179.550 Million (previous year Rs. Nil) to be secured by exclusive charge over the immovable property situated at Noida. The loan is repayable in 20 quarterly instalments of Rs.9.450 Million; the last instalment is due in November 2018. The rate of interest is 12.00% per annum.

SHORT TERM BORROWINGS

Loans from banks are secured by a first pari-passu charge by way of hypothecation of stocks, present and future, book debts and receivables and second pari-passu charge on all fixed assets, land and buildings both present and future, except land and building situated at Kolkata plant.

Financial Institution :	· 3i Infotech Trusteeship Services Limited, 3^rd to 6^th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400703, Maharashtra, India
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Gurgaon, Haryana, India
Associate company (As on 31.03.2014) :	Everest Building Solutions Limited (upto 23 March, 2014) – Has not commenced operations
Subsidiary companies (As on 31.03.2014) :	· Everest Building Products, Mauritius (w.e.f. 9 September, 2013) – Has not commenced commercial operations · Everestind FZE, United Arab Emirates (UAE) (w.e.f. 18 December, 2013) –subsidiary of Everest Building Products – Has not commenced operations
Enterprise exercising significant influence (As on 31.03.2014) :	Falak Investment Private Limited

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital : Not Divulged

Issued, Subscribed & Paid-up Capital : Rs.152.900 Million

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
17000000	Equity Shares	Rs.10/- each	Rs.170.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15194665	Equity Shares	Rs. 10/- each	Rs.151.947 Million

Of the above:

15,000 (previous year 15,000) equity shares are allotted as fully paid up pursuant to a contract without payment being received in cash 13,350,020 (previous year 13,350,020) equity shares are allotted as fully paid up by way of bonus shares by capitalisation of general reserve

The Company has one class of equity shares having a par value of Rs.10 each. Each shareholder is eligible for one vote per share held.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	152.900	151.947	151.873
(b) Reserves & Surplus	3044.200	2793.324	2745.852
(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)	3197.100	2945.271	2897.725
(3) Non-Current Liabilities
(a) long-term borrowings	947.900	513.270	591.020
(b) Deferred tax liabilities (Net)	295.100	283.175	245.656
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	59.900	60.788	75.758
Total Non-current Liabilities (3)	1302.900	857.233	912.434
(4) Current Liabilities
(a) Short term borrowings	1857.000	1655.548	952.012
(b) Trade payables	1321.800	1228.610	1089.117
(c) Other current liabilities	1352.000	1291.600	958.913
(d) Short-term provisions	469.500	296.996	202.428
Total Current Liabilities (4)	5000.300	4472.754	3202.470
TOTAL	9500.300	8275.258	7012.629
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3512.100	2691.476	2065.026
(ii) Intangible Assets	0.000	125.913	48.500
(iii) Capital work-in-progress	0.000	610.480	371.146
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	77.400	6.337	0.245
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	871.000	745.053	432.937
(e) Other Non-current assets	33.600	2.905	1.422
Total Non-Current Assets	4494.100	4182.164	2919.276
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2718.500	2420.884	2541.660
(c) Trade receivables	1043.100	807.081	523.495
(d) Cash and cash equivalents	636.300	251.430	528.531
(e) Short-term loans and advances	598.000	608.216	487.428
(f) Other current assets	10.300	5.483	12.239
Total Current Assets	5006.200	4093.094	4093.353
TOTAL	9500.300	8275.258	7012.629

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue from operations	12305.000	10352.516	10141.329
		Other Income	104.600	123.369	87.525
		TOTAL (A)	12409.600	10475.885	10228.854
Less	EXPENSES
		Cost of materials consumed	7056.600	5745.939	5902.861
		Purchases of stock-in-trade	149.400	280.556	159.310
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(142.800)	7.052	(443.792)
		Employee benefits expense	1091.000	969.649	920.970
		Other expenses	2393.500	2950.780	2624.167
		Freight	938.000	0.000	0.000
		TOTAL (B)	11485.700	9953.976	9163.516
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		923.900	521.909	1065.338
Less	FINANCIAL EXPENSES (D)		186.900	125.690	55.799
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		737.000	396.219	1009.539
Less	DEPRECIATION/ AMORTISATION (F)		254.200	267.204	220.524
	PROFIT BEFORE TAX (E-F) (G)		482.800	129.015	789.015
Less	TAX (H)		140.700	37.519	264.018
	PROFIT AFTER TAX (G-H) (I)		342.100	91.496	524.997
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1830.248	1792.385	1453.151
Less	APPROPRIATIONS
		Transfer to General Reserve		9.190	52.500
		Dividend		37.987	113.905
		Tax on Dividend		6.456	19.358
	BALANCE CARRIED TO THE B/S		NA	1830.248	1792.385
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Goods Exported		590.485	561.101
	TOTAL EARNINGS		NA	590.485	561.101
	IMPORTS
		Raw Materials		1883.405	2414.059
		Stores & Spares		15.226	13.678
		Capital Goods		78.728	1.357
		Others		1.609	58.121
	TOTAL IMPORTS		NA	1978.968	2487.215
	Earnings Per Share (Rs.)		22.45	6.02	34.70

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	263.020	191.320
Cash generated from operations	NA	478.779	234.620
Net cash flow from / (used in) operating activities	NA	417.933	(69.432)

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin PAT / Sales	(%)	2.78	0.88	5.18
Operating Profit Margin (PBDIT/Sales)	(%)	7.51	5.04	10.50
Return on Total Assets (PBT/Total Assets)	(%)	5.12	1.68	11.88
Return on Investment (ROI) (PBT/Networth)		0.15	0.04	0.27
Debt Equity Ratio (Total Debt /Networth)		0.88	0.83	0.60
Current Ratio (Current Asset/Current Liability)		1.00	0.92	1.28

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.354.00/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	151.873	151.947	152.900
Reserves & Surplus	2745.852	2793.324	3044.200
Net worth	2897.725	2945.271	3197.100
long-term borrowings	591.020	513.270	947.900
Short term borrowings	952.012	1655.548	1857.000
Total borrowings	1543.032	2168.818	2804.900
Debt/Equity ratio	0.532	0.736	0.877

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	10141.329	10352.516	12305.000
		2.082	18.860

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	10141.329	10352.516	12305.000
Profit	524.997	91.496	342.100
	5.18%	0.88%	2.78%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10415557	30/04/2014 *	619,200,000.00	Dbs Bank Ltd.	Capital Point, Baba Kharak Singh Marg, Connaught Place, New Delhii - 110001, India	C03899754
2	10369338	30/04/2014 *	100,000,000.00	DBS Bank Ltd.	Capital Point, Baba Kharak Singh Marg,, Connaught Place, New Delhii - 110001, India	C03861275
3	10303259	30/04/2014 *	420,000,000.00	Kotak Mahindra Bank Limited	7th Floor, Ambadeep Building, 14,, K G Marg,, New Delhi - 110001, India	C03785508
4	10133157	30/04/2014 *	750,000,000.00	Hdfc Bank Limited	Hdfc Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai, Maharashtra - 400013, India	C03876174
5	10127598	03/11/2008	492,000,000.00	3i Infotech Trusteeship Services Limited	3rd To 6th Floor, International Infotech Park,, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai, Maharashtra - 400703, India	A49787617
6	10127595	30/04/2014 *	492,000,000.00	3i Infotech Trusteeship Services Limited	3rd To 6th Floor, International Infotech Park,, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai, Maharashtra - 400703, India	C03918497
7	10127596	30/04/2014 *	980,000,000.00	ICICI Bank Ltd.	Landmark, Race Course Circle,, Alkapuri,, Baroda, Gujarat - 390015, India	C03919651
8	10080917	10/05/2012 *	980,000,000.00	ICICI Bank Limited	Landmark race Cource Circle, Alkapuri, Baroda, Guj Arat - 390015, India	B40714255
9	10011604	30/04/2014 *	250,000,000.00	Axis Bank Limited	2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi - 110001, India	C04675906
10	80014472	28/05/2014 *	550,000,000.00	State Bank of India	Overseas Branch, Jawahar Vyapar Bhawan,, 1, Tolstoy Marg, New Delhi, Delhi - 110001, India	C04671111

*Date of modification Charges

FIXED ASSETS:

· Land (Freehold / Leasehold)

· Building (On Freehold Land)

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Leasehold Improvements

· Roads

· Computer Software

· Technical Knowhow

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.63.51
UK Pound	1	Rs.97.85
Euro	1	Rs.70.50

INFORMATION DETAILS

Information Gathered by :	SPR
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	NO
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		63

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.