MIRA INFORM REPORT

Report No. :	332902
Report Date :	21.07.2015

IDENTIFICATION DETAILS

Name :	LONSEN KIRI CHEMICAL INDUSTRIES LIMITED (w.e.f. 31.07.2008)
Formerly Known As :	LONSEN KIRI CHEMICAL INDUSTRIES PRIVATE LIMITED
Registered Office :	7^th Floor, Hasubhai Chambers, Opposite Town Hall, Ellisbridge, Ahmedabad-380 006, Gujarat
Tel. No.:	91-79-26574371
Country :	India
Financials (as on) :	31.12.2013
Date of Incorporation :	09.04.2008
Com. Reg. No.:	04-053537
Capital Investment / Paid-up Capital :	Rs.1384.150 Million
CIN No.: [Company Identification No.]	U24114GJ2008PLC053537
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	AHML01153F
PAN No.: [Permanent Account No.]	AABCL4527B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Dyestuff, dyes, reactive dyes.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 2000000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management has failed to file its financial record with government department for the year 2014. As per available record of 2013, the company has reported sound operational performance and achieved some profit from its operational, due to which company has able to recover some of its accumulated losses. However, rating remain constrained on account of company’s moderate financial risk profile marked by negative reserves and average balance sheet profile of the company. However, trade relations are reported as fair. Payments are reported to be slow. In view of negative reserves along with leverage balance sheet profile, the company can be considered for business dealing with some caution.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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	CARE
Rating	Long term bank facilities (withdrawn) = BB
Rating Explanation	Inadequate credit quality and high credit risk.
Date	March 04, 2015

Rating Agency Name	CARE
Rating	Short term bank facilities (withdrawn) = A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	March 04, 2015

Reason for suspension: There is no amount outstanding under the facilities as on date.

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

Name :	Mr. Tejas Khatri
Designation :	Finance Department
Contact No.:	91-9099984694
Date :	20.07.2015

LOCATIONS

Registered Office :	7^th Floor, Hasubhai Chambers, Opposite Town Hall, Ellisbridge, Ahmedabad-380 006, Gujarat, India
Tel. No.:	91-79-26574371
Fax No.:	Not Available
E-Mail :	neel.shah@lkcl.in anjan.sheth@lkcl.in accounts@lonsenkiri.com info@kiriindustries.com mital.jani@lonsenkiri.com rahul.gupta@lonsenkiri.com exports@lonsenkiri.com
Corporate Office / Factory 1 :	DYES DIVISION: Plot No 299/1/A and B, Near Water Tank, Phase-II, GIDC, Vatva, Ahmedabad – 382445, Gujarat, India
Tel. No.:	91-79-25894477, 40237444
Fax No.:	91-79-25834960
Factory 2 :	CHEMICALS DIVISION: Plot No.498, 577/B, 584/B, 585, 586, 587, 588, 589 Village Dudhwada, Padra, Vadodara - 391450, Gujarat, India
Tel. No.:	91-2662273724, 25
Fax No.:	91-2662273726
Factory 3 :	INTERMEDIATES DIVISION: Plot No: 396 /399/403/404 EPC Canal Road, Village: Dudhwada, Taluka Padra, District Vadodara - 391450, Gujarat, India
Tel. No.:	91-2662273 444
Fax No.:	91-2662273 444

DIRECTORS

As on 09.06.2014

Name :

Xubin Jinggen He

Designation :

Director

Address :

Room 1103, Building 22, XINSHIJI, Huayuan, Shangyu, Baiguan Sub District 312300

Date of Birth/Age :

16.03.1971

Date of Appointment :

29.06.2013

DIN No.:

06489226

Name :

Mr. Manishkumar Pravinchandra Kiri

Designation :

Managing director

Address :

26.12.1972

Date of Birth/Age :

53, Manekbaug society, Satellite Road, Ambawadi-380 015, Gujarat, India

Date of Appointment :

01.10.2013

DIN No.:

00198284

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	L24231GJ1998PLC034094	KIRI INDUSTRIES LIMITED	Managing director	01/04/2013	14/05/1998	-	Active	NO
2	U24114GJ2008PLC053537	LONSEN KIRI CHEMICAL INDUSTRIES LIMITED	Managing director	01/10/2013	09/04/2008	-	Active	NO
3	U45201GJ2008PTC053728	KIRI INFRASTRUCTURE PRIVATE LIMITED	Director	29/04/2008	29/04/2008	01/01/2011	Active	NO
4	U24100GJ2011PLC065068	KIRI PEROXIDE LIMITED	Director	20/04/2011	20/04/2011	-	Active	NO

Name :

Mr. Pareshkumar Vyas Labhshankar

Designation :

Director

Address :

J 6/71, Akhbarnagar, Nava Vadaj, Ahmedabad - 380013, Gujarat, India

Date of Birth/Age :

27.12.1963

Date of Appointment :

29.06.2013

DIN No.:

05225914

Name :

Hui Tiangen Zhang

Designation :

Director

Address :

147, Mialou Nanan Shangyu 312368

Date of Birth/Age :

01.02.1970

Date of Appointment :

29.06.2013

DIN No.:

06489224

Name :

Shixin Huiren Luo

Designation :

Director

Address :

Dormitory Of Longsheng Group Daoxu Town Shangyu 310012

Date of Birth/Age :

28.02.1984

Date of Appointment :

29.06.2013

DIN No.:

06511264

Name :

Hetal Nesal Shah

Designation :

Additional Director

Address :

8, Mehsana Society,, Nava Vadaj Road, Ahmedabad - 380013, Gujarat, India

Date of Appointment :

20.03.2015

DIN No.:

06867956

Name :

Yong Ji

Designation :

Additional Director

Address :

Room 305, Building 12, Qiushi Village, Xihu District, Zhejiang Province, Hangzhou, 310000, China

Date of Appointment :

20.03.2015

DIN No.:

06846591

KEY EXECUTIVES

Name :	Mr. Anjan Chetan Sheth
Designation :	Secretary
Address :	A-22, Sharanam -2 N.R. Dhanajay Towers Shyamal Cross Roads, Satellite, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	19.07.1987
Date of Appointment :	01.06.2012
PAN No.:	BFYPS0340R
Name :	Mr. Tejas Khatri
Designation :	Finance Department
Name :	Wenbo Wu
Designation :	Chief Financial Officer
Address :	No. 18, Qianxi Road, Chengnan Town, Wenling City,, Zhejiang Province - 317500, China
Date of Appointment :	01.09.2014
PAN No.:	ADNPW7115Q

MAJOR SHAREHOLDERS

As on 09.06.2014

Names of Shareholders (Equity Share)	No. of Shares
Well Prospering Limited, Central Hong Kong	44999997
Kiri Industries Limited, India	29999998
Kiri Industries Limited, India Jointly with Pravin Kiri	1
Kiri Industries Limited, India Jointly with Manish Kiri	1
Well Prospering Limited, Central Hong Kong Jointly with Sheng Chang	1
Well Prospering Limited, Central Hong Kong Jointly with Zhifeng Xiang	1
Well Prospering Limited, Central Hong Kong Jointly with Han Gong	1
Total	75000000

Names of Shareholders (Preference Share)	No. of Shares
Kiri Industries Limited, India	26949000
Well Prospering Limited, Central Hong Kong	36466000
Total	63415000

As on 10.06.2014

Names of Allottee (Preference Share)	No. of Shares Allotted
Kiri Industries Limited, India	2634000
Well Prospering Limited, Central Hong Kong	3951000
Total	6585000

As on 09.06.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	60.00
Bodies corporate	40.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Dyestuff, dyes, reactive dyes.
Products :	Red dyes Acid black dyes Rapid dyes Reactive yellow dyes RGB series dyes Acid milling dyes
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Germany Belgium China Hong Kong Brazil
Imports :
Products :	Raw Materials
Countries :	China Singapore
Terms :
Selling :	Cash, L/C, Cheque and Credit
Purchasing :	Cash, L/C, Cheque and Credit

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesaler and Manufacturer

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

No. of Employees :

300 (Approximately

Bankers :

Banker Name	Union Bank of India
Branch Address	Ashram Road Branch, C. U. Shah Chambers, Near Gujarat Vidhyapith, Ashram Road, Ahmedabad - 380014, Gujarat, 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

• ING Vysya Bank Limited, P. B. No.4038 Chanakya Building Near Dinesh, Hall off Ashram Road, Ahmedabad – 380009, Gujarat, India
• Industrial and Commercial Bank of China Limited, Wockhardt Towers, Level 1, East Wing, C-2, G Block , Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra - 400051, India

Facilities :

SECURED LOANS	31.12.2013 (Rs. in Million)	31.12.2012 (Rs. in Million)
LONG TERM BORROWINGS
Term loans from banks	2.792	83.919
SHORT TERM BORROWINGS
Working capital loans from banks	309.208	326.966
Total	312.000	410.885

Auditors :
Name :	V.D. Shukla and Company Chartered Accountants
Address :	22, Aakruti Society, Satellite Road, Ahmedabad – 380015, Gujarat, India
PAN No.:	AKHPS9176L
Memberships :	Not Available
Collaborators :	Not Available
Holding company :	Well Prospering Limited
Joint venture:	Kiri Industries Limited

CAPITAL STRUCTURE

After 10.06.2014

Authorised Capital:

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.10/-each	Rs.800.000 Million
70000000	Preference Shares	Rs.10/-each	Rs.700.000 Million
	Total		Rs.1500.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/-each	Rs.750.000 Million
63415000	Preference Shares	Rs.10/-each	Rs.634.150 Million
6585000	5% Non-Cumulative Redeemable Preference	Rs.10/-each	Rs.65.850 Million
	Total		Rs.1450.000 Million

As on 31.12.2013

Authorised Capital:

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.10/-each	Rs.800.000 Million
70000000	Preference Shares	Rs.10/-each	Rs.700.000 Million
	Total		Rs.1500.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
75000000	Equity Shares	Rs.10/-each	Rs.750.000 Million
63415000	Preference Shares	Rs.10/-each	Rs.634.150 Million
	Total		Rs.1384.150 Million

FINANCIAL DATA

[All figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1384.150	1305.000	1305.000
(b) Reserves & Surplus	(443.634)	(570.068)	(197.865)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	72.113	119.603	73.232
Total Shareholders’ Funds (1) + (2)	1012.629	854.535	1180.367
(3) Non-Current Liabilities
(a) long-term borrowings	2.792	83.919	36.126
(b) Deferred tax liabilities (Net)	165.806	143.715	112.042
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	168.598	227.634	148.168
(4) Current Liabilities
(a) Short term borrowings	309.208	326.966	242.350
(b) Trade payables	1609.004	842.170	346.064
(c) Other current liabilities	614.622	463.121	97.855
(d) Short-term provisions	21.542	19.351	10.413
Total Current Liabilities (4)	2554.376	1651.608	696.682
TOTAL	3735.603	2733.777	2025.217
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1522.594	1497.204	1349.724
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	53.981	0.124	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	17.397	17.931	17.132
(e) Other Non-current assets	3.589	4.109	4.629
Total Non-Current Assets	1597.561	1519.368	1371.485
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1092.943	811.173	443.747
(c) Trade receivables	643.357	156.363	56.357
(d) Cash and cash equivalents	90.098	81.069	43.897
(e) Short-term loans and advances	298.142	158.309	106.614
(f) Other current assets	13.502	7.495	3.117
Total Current Assets	2138.042	1214.409	653.732
TOTAL	3735.603	2733.777	2025.217

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.12.2013	31.12.2012	31.12.2011
	SALES
	Income	3492.672	1095.274	567.981
	Other Income	7.414	9.377	7.115
	TOTAL	3500.086	1104.651	575.096
Less	EXPENSES
	Cost of Materials Consumed	2828.617	1212.597	470.701
	Purchases of Stock-in-Trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(227.005)	(177.071)	22.575
	Profit period items	2.255	0.000	(0.194)
	Extraordinary Items	0.000	0.000	42.777
	Employees benefits expense	94.950	71.386	36.108
	Other expenses	502.598	210.103	84.408
	TOTAL	3201.415	1317.015	656.375
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	298.671	(212.364)	(81.279)
Less	FINANCIAL EXPENSES	73.224	52.805	43.010
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	225.447	(265.169)	(124.289)
Less/ Add	DEPRECIATION/ AMORTISATION	76.912	69.564	36.943
	PROFIT/ (LOSS) BEFORE TAX	148.535	(334.733)	(161.232)
Less	TAX	22.102	37.469	41.638
	PROFIT/ (LOSS) AFTER TAX	126.433	(372.202)	(202.870)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	2835.320	1204.626	403.133
	TOTAL EARNINGS	2835.320	1204.626	403.133
	Earnings / (Loss) Per Share (Rs.)	1.69	(4.96)	NA

Particulars	31.03.2015
Sales Turnover (Approximately)	4200.000

Expected Sales (2015-16): Rs.5000.000 Million

The above information has been parted by Mr. Tejas Kahtri (Finance Department).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2013	31.03.2012	31.03.2011
Current Maturities of Long term debt	19.999	14.612	0.000
Cash generated from operations	NA	NA	NA
Net cash flows from (used in) operations	321.324	159.982	232.406

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
Net Profit Margin PAT / Sales	(%)	3.61	(33.98)	(35.71)
Operating Profit Margin (PBDIT/Sales)	(%)	8.55	(19.38)	(14.31)
Return on Total Assets (PBT/Total Assets}	(%)	4.03	(12.24)	(7.96)
Return on Investment (ROI) (PBT/Networth)		0.15	(0.39)	(0.14)
Debt Equity Ratio (Total Debt/Networth)		0.31	0.48	0.24
Current Ratio (Current Asset/Current Liability)		0.84	0.74	0.94

FINANCIAL ANALYSIS

[All figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	1305.000	1305.000	1384.150
Reserves & Surplus	(197.865)	(570.068)	(443.634)
Share Application money pending allotment	73.232	119.603	72.113
Net worth	1180.367	854.535	1012.629
long-term borrowings	36.126	83.919	2.792
Short term borrowings	242.350	326.966	309.208
Current Maturities of Long Term Debt	0.000	14.612	19.999
Total borrowings	278.476	425.497	331.999
Debt/Equity ratio	0.236	0.498	0.328

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	567.981	1095.274	3492.672
		92.836	218.886

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	567.981	1095.274	3492.672
Profit	(202.870)	(372.202)	126.433
	(35.72%)	(33.98%)	3.62%

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)	Yes
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	No
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	----------------------
28	Estimation for coming financial year	Yes
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

FINANCIAL PERFORMANCE

The net revenue from operations of the Company during the year 2013 increased significantly to Rs. 3492.672 Million as compared to Rs. 1095.274 Million of previous year. The enormous increase in net revenue of the Company is mainly attributable to enhancement of commercial production of specialty dyes project (Levafix Dyes). As a result, the Net profit for the year 2013 stands at Rs. 126.434 Million as compared to a loss of Rs. 372.202 Million of previous year which is mainly due to increase in sales of levafix dyes. Your directors are confident to achieve better performance in future.

INDEX OF CHARGES

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10531078	07/11/2014	500,000,000.00	INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED	WOCKHARDT TOWERS, LEVEL 1, EAST WING, C-2, G BLOCK , BANDRA KURLA COMPLEX, BANDRA (EAST)., MUMBAI - 400051, MAHARASHTRA, INDIA	C33485897

FIXED ASSETS

• Land
• Furniture and Fixture
• Computers
• Vehicles
• Office Equipments
• Plant and Machinery
• Building

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.63.55
UK Pound	1	Rs.99.10
Euro	1	Rs.68.83

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	KAR
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	---
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.