MIRA INFORM REPORT

Report No. :	331259
Report Date :	13.07.2015

IDENTIFICATION DETAILS

Name :	ASHOK IRON WORKS PRIVATE LIMITED
Registered Office :	689/1, Udyambag, Belgaum- 590008, Karnataka
Tel. No.:	91-831-2440129 / 2441600
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.11.1981
Com. Reg. No.:	08-004487
Capital Investment / Paid-up Capital :	Rs.41.878 Million
CIN No.: [Company Identification No.]	U27104KA1981PTC004487
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCA0813L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter iron-foundry products and machined components for Diesel Engineers, Tractors, Automobiles and compressors.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 5600000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track record. Sales turnover of the company has declined which resulting into dip in profit of the company during financial year 2014. However, the rating reflects Ashok Iron’s healthy business risk profile marked by its established market position in auto-component sector, diverse product profile and decent financial risk profile along with comfortable debt protection metrics. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. In view of aforesaid, the company can be considered good for normal 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	CRISIL
Rating	Long term rating = A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	June 12, 2014

Rating Agency Name	CRISIL
Rating	Short term rating = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	June 12, 2014

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 PARTED BY (GENERAL MANAGER)

Name :	Mr. Gurav
Designation :	Finance Manager
Contact No.:	91-831-2442599

LOCATIONS

Registered Office :	689/1, Udyambag, Belgaum - 590008, Karnataka, India
Tel. No.:	91-831-2442599
Fax No.:	91-831-2441899
E-Mail :	corporate@ashokiron.com marketing@ashokiron.com hr@ashokiron.co
Website :	www.ashokiron.com
Corporate Office :	Plot No.9 To 11, Mazagaon Road, Udyambag, Belgaum - 590008, Karnataka, India
Tel. No.:	91-831-2442599 (8 lines)
Fax No.:	91-831-2441899
Factory :	Machhe Industrial Estate, Belgaum - 590 014 Karnataka, India
Cylinder Block Machining Division :	Plot No. N-1, S. No. 5/1, Industrial Estate, Udyambag, Belgaum - 590 008, Karnataka, India
Machining and Assembly Division :	608/1, Machhe Industrial Estate, Machhe, Belgaum - 590 014, Karnataka, India
Cylinder Head and Block Machining Division :	Navage Cross, Navage, Belgaum - 590 014, Karnataka, India
Wind Energy Division 1:	RS No. 409/1B , RS No. 409/1A/2 and RS No. 371/1B, at Village Nej Taluka : Chikodi, District : Belgaum – 591201, Karnataka, India
Wind Energy Division 2 :	Sadawaghapur District : Satara - 415206, Maharashtra, India
Cylinder Block Machining Division :	Plot No. N-1, S. No. 5/1, Industrial Estate, Udyambag, Belgaum - 590 008, Karnataka, India

DIRECTORS

As on 27.09.2014

Name :

Mr. Ashok Shivlingappa Humbarwadi

Designation :

Chairmen and Managing Director

Address :

45 Sadashiv Nagar, Belgaum,- 590001, Karnataka, India

Date of Birth/Age :

17.03.1943

Qualification :

B.E

Experience :

45 Years

Date of Appointment :

01.01.2015

Experience :

45 Years

DIN No. :

00517388

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	U27104KA1981PTC004487	ASHOK IRON WORKS PRIVATE LIMITED	Managing director	01/01/2015	31/12/1982	-	Active	NO
2	U29222KA1982PTC005016	FLUID DYNAMICS PRIVATE LIMITED	Director	15/02/1998	15/02/1998	-	Active	NO
3	U65993KA1984PTC005898	NUTAN INVESTMENTS AND TRADING PRIVATE LIMITED	Director	09/12/2004	09/12/2004	-	Active	NO
4	U27101KA1981ULT004568	JAIHIND TECHNO MACHINES PRIVATE LIMITED	Director	26/09/2006	26/09/2006	-	Active	NO

Name :

Mr. Sadanand Dundappa Humbarwadi

Designation :

Director

Address :

Aditya Apartments, 277 Agarkar Road, Tilakwadi, Belgaum - 590006, Karnataka, India

Date of Birth/Age :

31.01.1964

Date of Appointment :

29.09.1999

DIN No. :

00517384

Name :

Mr. Ashok Basappa Kanguri

Designation :

Director

Address :

241 Ranade Road, Tilakwadi, Belgaum- 590006, Karnataka, India

Date of Birth/Age :

05.05.1944

Date of Appointment :

09.09.1993

DIN No. :

00522022

Name :

Mr. Nandkumar Venkatrao Bhonsle

Designation :

Director

Address :

Plot No.32, Jadhav Nagar, Belgaum- 590001, Karnataka, India

Date of Birth/Age :

12.05.1944

Date of Appointment :

03.09.1993

DIN No. :

00517392

Name :

Mr. Jayant Ashok Humbarwadi

Designation :

Managing director and Executive Director

Address :

45 Sadashiv Nagar, Belgaum, Karnataka, India

Date of Birth/Age :

18.05.1974

Qualification :

B.E

Date of Appointment :

01.04.2015

Experience :

17 Years

DIN No. :

00517389

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	U29222KA1982PTC005016	FLUID DYNAMICS PRIVATE LIMITED	Managing director	15/12/1998	15/12/1998	-	Active	NO
2	U27104KA1981PTC004487	ASHOK IRON WORKS PRIVATE LIMITED	Managing director	01/04/2014	29/09/1999	-	Active	NO
3	U65993KA1984PTC005898	NUTAN INVESTMENTS AND TRADING PRIVATE LIMITED	Director	09/12/2004	09/12/2004	-	Active	NO
4	U27101KA1981ULT004568	JAIHIND TECHNO MACHINES PRIVATE LIMITED	Director	26/09/2006	26/09/2006	-	Active	NO

Name :

Mr. Ramaiah Gedipudi

Designation :

Director

Address :

Bhaskar Enclave, Nagarjuna Nagar, Coly Yguda, Hyderabad- 500073, India

Date of Birth/Age :

01.07.1955

Date of Appointment :

09.12.1996

DIN No. :

01828369

Name :

Mr. Shivakumar Dundappa Humbarwadi

Designation :

Director

Address :

Amrutkunj 714 Angol Extension, Hindunagar, Tilakwadi, Belgaum- 590006, Karnataka, India

Date of Birth/Age :

22.08.1961

Date of Appointment :

24.10.1988

Date of Cessation :

24.10.1988

DIN No. :

00517381

KEY EXECUTIVES

Name :	Mr. Gurav
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2014

Names of Shareholders	No. of Shares
Ashok Humbarwadi S.	29895
Shobha Humbarwadi A.	115
Jayant Humbarwadi A.	1274
Rajeshwari Humbarwadi	15
Sumati Humbarwadi	10
Devika Humbarwadi	10
Ravi Humbarwadi	34
Abhay Humbarwadi	48
Vasudev Hanji	2851
Vasudev Hanji (HUF)	6
Hema Hanji	1350
Sachin Hanji	79
Subhash Hanji	78
Bhartesh Hanji	70
Dharmappa Hanji	992
Dharmappa Hanji (HUF)	5
Sudha Hanji D.	213
Sheetal D. Hanji	76
Tanuja Hanji D.	7
Sukumar Hanji	405
Sukuma Hanji (HUF)	866
Shobha Hanji S.	4
Mahaveer Hanji	603
Mahaveer Hanji (HUF)	6
Sharayu Hanji	651
Abhinandan Hanji M.	16
Harshada Hanji M.	14
Nutan Investment and Trading Private Limited	2185
Total	41878

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2014

Category	Percentage
Bodies corporate	5.21
Directors or relatives of Directors	69.79
Other top fifty shareholders	25.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter iron-foundry products and machined components for Diesel Engineers, Tractors, Automobiles and compressors.

Products :

Products Description	ITC Code
C I Casting	73251000

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Cash, Cheque and Credit (60, 90 Days)

Purchasing :

Cash, Cheque and Credit (60, 90 Days)

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
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

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

No. of Employees :

Information declined by the management

Bankers :

Bank Name	ICICI Bank Limited
Branch	Sobha Pearl, No.1, Commissariat Road, Bangalore - 560025, Karnataka, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged
Bank Name	State Bank of India
Branch	SME Branch, Halgekar Building, Opp Mahaveer Bhavan, Goaves, Hindwadi, Belgaum - 590011, Karnataka, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Term loan from Banks	376.723	290.352
Short-term borrowings
Term loan from Banks	393.118	206.858
Total	769.841	497.210

Auditors :
Name :	Paranjapee Phadnis and Company Chartered Accountant
Address :	22 Khanapur Road, Tilakwadi, Belgaum,- 590006, Karnataka, India
PAN N Income-tax PAN of auditor or auditor's firm :	AHPPP0719F
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Divulged

CAPITAL STRUCTURE

As on 27.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
98000	Equity Shares	Rs.1000/- each	Rs.98.000 Million
2000	Preference Shares	Rs.1000/- each	Rs.2.000 Million
	Total		Rs.100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41878	Equity Shares	Rs.1000/- each	Rs.41.878 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	41.878	41.878	41.878
(b) Reserves & Surplus	1920.196	1674.462	1393.849
(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)	1962.074	1716.340	1435.727
(3) Non-Current Liabilities
(a) long-term borrowings	535.729	443.868	456.794
(b) Deferred tax liabilities (Net)	97.070	118.573	132.405
(c) Other long term liabilities	182.542	156.923	240.662
(d) long-term provisions	40.798	39.613	35.797
Total Non-current Liabilities (3)	856.139	758.977	865.658
(4) Current Liabilities
(a) Short term borrowings	393.118	206.858	336.508
(b) Trade payables	372.197	374.737	283.840
(c) Other current liabilities	52.243	49.263	52.619
(d) Short-term provisions	130.483	91.723	105.333
Total Current Liabilities (4)	948.041	722.581	778.300
TOTAL	3766.254	3197.898	3079.685
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1364.918	1433.253	1538.488
(ii) Intangible Assets	0.450	0.450	0.450
(iii) Capital work-in-progress	464.762	92.794	19.365
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.361	0.372	0.372
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	85.332	85.198	67.273
(e) Other Non-current assets	0.253	0.379	0.505
Total Non-Current Assets	1916.076	1612.446	1626.453
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	502.339	453.152	531.932
(c) Trade receivables	728.959	725.493	788.892
(d) Cash and cash equivalents	466.279	275.371	76.766
(e) Short-term loans and advances	152.601	131.436	55.642
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1850.178	1585.452	1453.232
TOTAL	3766.254	3197.898	3079.685

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income
	Other Income
	TOTAL	4331.244	4410.412	4811.400
Less	TOTAL EXPENSES	3643.103	3685.534	4029.200
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	688.141	724.878	782.200
Less	FINANCIAL EXPENSES	61.269	68.019	62.700
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	626.872	656.859	719.500
Less/ Add	DEPRECIATION/ AMORTISATION	259.145	247.528	223.900
	PROFIT/ (LOSS) BEFORE TAX	367.727	409.331	495.600
Less	TAX	121.993	128.718	171.200
	PROFIT/ (LOSS) AFTER TAX	245.734	280.613	324.400
	Earnings / (Loss) Per Share (Rs.)	(1.79)	5.67	NA

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	5.67	6.36	6.74
Operating Profit Margin (PBIDT/Sales)	(%)	15.89	16.44	16.26
Return on Total Assets (PBT/Total Assets}	(%)	11.14	13.18	16.20
Return on Investment (ROI) (PBT/Networth)		0.19	0.24	0.35
Debt Equity Ratio (Total Debt /Networth)		0.47	0.38	0.55
Current Ratio (Current Asset/Current Liability)		1.95	2.19	1.87

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	41.878	41.878	41.878
Reserves & Surplus	1393.849	1674.462	1920.196
Net worth	1435.727	1716.340	1962.074
long-term borrowings	456.794	443.868	535.729
Short term borrowings	336.508	206.858	393.118
Total borrowings	793.302	650.726	928.847
Debt/Equity ratio	0.553	0.379	0.473

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	4811.400	4410.412	4331.244
		(8.334)	(1.795)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	4811.400	4410.412	4331.244
Profit	324.400	280.613	245.734
	6.74%	6.36%	5.67%

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	Yes
8	Designation of contact person	Yes
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	No
17	Details of sister concerns	No
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	Yes
35	Negative Reporting by Auditors in the Annual Report	No

OPERATIONS

The financial year has been a challenging one, mainly on account of continued slow growth of the Indian economy, which has impacted the growth of sectors relevant for the Company’s customers. The Sales and Other Income declined by 1.8% during the year. Profit Before Tax declined by 10.2%.

OUTLOOK

For the financial year 2014-15, the economy is expected to grow @ 5.5%, subject to a satisfactory monsoon and revival of growth in manufacturing and mining sectors. The Company’s performance is closely linked with the economic growth and the trend is likely to continue in this year as well.

UNSECURED LOAN

Unsecured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans and Advances from related parties	159.006	153.516
Total	159.006	153.516

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10478216	11/02/2014	350,000,000.00	ICICI BANK LIMITED	SOBHA PEARL,, NO.1, COMMISSARIAT ROAD,, BANGALORE  , Karnataka - 560025, INDIA	B96652193
2	10313541	14/08/2012 *	180,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B59357178
3	10048854	13/03/2007	237,160,000.00	UTI BANK LTD.	"ESQUIRE", NO.9, M G ROAD, BANGALORE, Karnataka -  560001, INDIA	A14204044
4	90192914	10/12/2004	221,200,000.00	UTI BANK LIMITED	NO. 9; MG ROAD, BANGALORE, Karnataka - 560001, INDIA	-
5	90192521	20/03/2002 *	26,000,000.00	KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVLOPME  NT CORPORT	MSIL 36; CUNNIGHAM ROAD, BANGALORE, Karnataka - 56  0052, INDIA	-
6	90192469	21/12/2001 *	10,000,000.00	KARNATAKA STATE INDUSTRIAL INVESTMENT DEVLOPMENT C  OROPORTION	MSIL; 36; CUNNUNGHAM ROAD, BANGALORE, Karnataka -  560052, INDIA	-
7	90192259	11/05/2000	19,000,000.00	KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVLOPME  NT CORPORT	MSIL 36; CUNNIGHAM ROAD, BANGALORE, Karnataka - 56  0052, INDIA	-
8	80027604	16/09/2013 *	825,000,000.00	STATE BANK OF INDIA	SME BRANCH, HALGEKAR BUILDING, OPP MAHAVEER BHAVAN  , GOAVES, HINDWADI, BELGAUM, Karnataka - 590011,  INDIA	B86850419

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2014	31.03.2013
Guarantees	11.554	142.435
Other money for which company is contingently liable	11.650	94.374

FIXED ASSETS

• Land
• Buildings
• Factory building
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Motor vehicles
• Office equipment
• Computer equipments

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.63.37
UK Pound	1	Rs.97.65
Euro	1	Rs.70.43

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	KAR
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.