MIRA INFORM REPORT

Report No. :	325490
Report Date :	08.06.2015

IDENTIFICATION DETAILS

Name :	KADEVI INDUSTRIES LIMITED (w.e.f. 11.01.2011)

Formerly Known As:	KADEVI INDUSTRIES PRIVATE LIMITED (w.e.f. 25.11.2010) KADEVI ENGINEERING COMPANY PRIVATE LIMITED

Registered Office :	A-1, A-2, Electronic Complex, Kushaiguda, Hyderabad-500062, Telangana
Tel. No.:	91-40-27121450

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	02.08.1973

Com. Reg. No.:	001612

Capital Investment / Paid-up Capital :	Rs. 120.000 Million

CIN No.: [Company Identification No.]	U74210TG1973PLC001612

IEC No.:	0991026799

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

PAN No.: [Permanent Account No.]	AABCK9963C

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer, Exporter and Importer of Communication Antennae, Pneumatic Telescopic Masts, Self-Supporting and Guyed Towers, Counterpoise Earth Systems.

No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 1349000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an old and established company incorporated during the year 1973 engaged in the manufacturing of telecom/power transmission towers, antennas, pneumatic telescopic masts etc. having a moderate track record. The rating reflects company moderate financial risk profile marked by low profit margin and huge borrowings recorded by the company, However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings 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

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: “B+”
Rating Explanation	High Risk of Default
Date	04.04.2015

Rating Agency Name	CARE
Rating	Short Term Bank Facilities: “A4’’
Rating Explanation	Minimal Degree of Safety and Carry Very High Credit Risk
Date	04.04.2015

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 PARTED BY

Name :	Mr. Venkatesh
Designation :	Senior Manager – Business Development
Contact No.:	91-9959096884
Date :	02.06.2015

LOCATIONS

Registered/ Head Office :	A-1, A-2, Electronic Complex, Kushaiguda, Hyderabad-500062, Telangana, India
Tel. No.:	91-91-40-27121450 / 4754
Mobile No.:	91-9959096884 (Mr. Venkatesh)
Fax No.:	91-40-27121657
E-Mail :	kec@kadevigroup.com
Website :	www.kadevigroup.com

Factory:	Tower DVN, Sr. No. 146 and 147, Ankireddypallr, Keesara, Ranga Reddy District-501301, Andhra Pradesh, India

Branch Offices:	Located at · Delhi · Chennai · Bangalore

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Surya Prabhakar Malapaka

Designation :

Managing Director

Address :

C - 11, Vikrampuri, Secunderabad- 500003, Andhra Pradesh, India

Date of Birth/Age :

25.07.1967

Date of Appointment :

07.01.2008

PAN No.:

ACIPM1404G

DIN No.:

00621093

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	Company/ LLP Status	Defaulting status
1	U74210TG1973PLC001612	KADEVI INDUSTRIES LIMITED	Managing director	07-01-2008	02-06-1997	Active	NO
2	U64200TG1999PTC032405	KADEVI ELECTRONIC SYSTEMS PRIVATE LIMITED	Managing director	31-08-1999	31-08-1999	Active	NO
3	U72200TG2000PTC033447	M.T.S. MEDI SOFT SYSTEMS PRIVATE LIMITED	Managing director	03-02-2000	03-02-2000	Active	NO
4	U32300TG2010PTC069539	e Style Electronics Private Limited	Director	19-07-2010	19-07-2010	Active	NO

Name :

Mr. Malapaka Sailaja

Designation :

Additional Director

Address :

C-11 Vikrampuri Colony, Manovikas Nagar, Karkhana, Hyderabad- 500061, Andhra Pradesh, India

Date of Birth/Age :

26.12.1974

Date of Appointment :

03.10.2003

PAN No.:

AJWPM9979K

DIN No.:

01116306

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	Company/ LLP Status	Defaulting status
1	U72200TG2000PTC033447	M.T.S. MEDI SOFT SYSTEMS PRIVATE LIMITED	Director	03-10-2003	03-10-2003	Active	NO
2	U64200TG1999PTC032405	KADEVI ELECTRONIC SYSTEMS PRIVATE LIMITED	Director	03-10-2003	03-10-2003	Active	NO
3	U74210TG1973PLC001612	KADEVI INDUSTRIES LIMITED	Additional director	03-08-2006	03-08-2006	Active	NO

Name :

Mr. Bhimasankara Purushottam Malapaka

Designation :

Director

Address :

C - 11, Vikrampuri Housing Colony, Secunderabad- 500003, Andhra Pradesh, India

Date of Birth/Age :

26.05.1932

Date of Appointment :

07.01.2008

DIN No.:

00621034

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	Company/ LLP Status	Defaulting status
1	U74210TG1973PLC001612	KADEVI INDUSTRIES LIMITED	Director	07-01-2008	02-08-1973	Active	NO
2	U64200TG1999PTC032405	KADEVI ELECTRONIC SYSTEMS PRIVATE LIMITED	Director	31-08-1999	31-08-1999	Active	NO
3	U72200TG2000PTC033447	M.T.S. MEDI SOFT SYSTEMS PRIVATE LIMITED	Director	03-02-2000	03-02-2000	Active	NO

KEY EXECUTIVES

Name :	Mr. C Srinivasan
Designation :	Secretary
Address :	1-4-211/42/1, Pradhamapuri Colony,, Sainikpuri, Hyderabad-500062, Andhra Pradesh, India
Date of Appointment :	02.05.2011
PAN No.:	ABWPC8577H

Name :	Mr. Venkatesh
Designation :	Senior Manager – Business Development

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
M.S. Prabhakar	10631040
M. Sailaja	1363800
M. Haranath Babu	120
M.B.S. Purushottam	2400
K. Sai Rama Murthy	120
Lakshmi Sriya	120
Prateek	2400
Total	12000000

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Communication Antennae, Pneumatic Telescopic Masts, Self-Supporting and Guyed Towers, Counterpoise Earth Systems.

Products :

ITC Code No.

Product Descriptions

4000000

Antenna and Parts

785900000

Towers

Brand Names :

Agencies Held :

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Cash and Credit (30 days/ 60 days/ and 90 days)

Purchasing :

Cash and Credit (30 days/ 60 days/ and 90 days)

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

End Users and OEMs

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

· Blue Star

· Reliance

· BSNL

· ELTA Systems Limited

· Aircel

· Nelco

No. of Employees :

200 (Approximately)

Bankers :

Bank Name:	Axis Bank Limited
Branch:	First Floor, No.6-3-879/B, G Pullareddy Building, Greenland, begumpet, Hyderabad-500016, Andhra Pradesh, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash Credit-Rs. 10.000 Million
Account Operation:	Not Divulged
Remarks:	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee term Loans from banks (Secured by first charge on all the fixed assets of the company and pari passu 2nd charge on current assets ad building property of the managing Director)	18.829	53.804
Loans taken for vehicles	0.000	1.986

SHORT TERM BORROWINGS
Working capital loans from banks (Secured by hypothecation of stocks of raw materials, work in process, finished goods and book debts and second charge on fixed assets of further secured by equitable mortgage of building property of the managing director)	1216.187	0.000
Loans repayable on demand	0.000	1050.197
Total	1235.016	1105.987

Banking Relations :	--

Auditors :
Name :	Ms. Satyanarayana and Company Chartered Accountants
Address :	5-5-88/5, Amar Mansion Building, Ranigunj, Secunderabad -500003, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AANFS5423Q

Memberships :	--

Collaborators :	--

Associates :	· Secunderabad Industries · Kadevi Electronic Systems Private Limited · Spark Logistics

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

25000000	Equity Shares	Rs. 10/- each	Rs. 250.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

12000000	Equity Shares	Rs. 10/- each	Rs. 120.000 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	120.000	120.000	120.000
(b) Reserves & Surplus	352.097	327.271	319.189
(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)	472.097	447.271	439.189

(3) Non-Current Liabilities
(a) Long-term borrowings	159.731	208.822	210.678
(b) Deferred tax liabilities (Net)	7.050	6.419	0.000
(c) Other long term liabilities	0.025	0.025	0.025
(d) long-term provisions	64.076	52.955	53.666
Total Non-current Liabilities (3)	230.882	268.221	264.369

(4) Current Liabilities
(a) Short term borrowings	1216.187	1050.197	1084.465
(b) Trade payables	979.369	785.300	582.015
(c) Other current liabilities	606.721	672.496	313.870
(d) Short-term provisions	0.601	0.399	0.598
Total Current Liabilities (4)	2802.878	2508.392	1980.948

TOTAL	3505.857	3223.884	2684.506

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	430.011	310.383	345.972
(ii) Intangible Assets	3.440	3.988	5.313
(iii) Capital work-in-progress	53.495	83.284	83.284
(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	7.743
(d) Long-term Loan and Advances	15.351	24.937	17.478
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	502.297	422.592	459.790

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	2091.861	1683.268	1247.913
(c) Trade receivables	659.706	857.091	732.000
(d) Cash and cash equivalents	104.713	138.852	97.631
(e) Short-term loans and advances	144.568	116.361	140.978
(f) Other current assets	2.712	5.720	6.194
Total Current Assets	3003.560	2801.292	2224.716

TOTAL	3505.857	3223.884	2684.506

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2344.991	2093.079	2191.941
		Other Income	15.266	6.988	13.750
		TOTAL (A)	2360.257	2100.067	2205.691

Less	EXPENSES
		Cost of Materials Consumed	622.930	465.155	866.236
		Purchases of Stock-in-Trade	251.790	925.287	475.877
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(355.570)	(426.526)	(274.468)
		Employees benefits expense	125.938	50.939	55.876
		Other expenses	1309.932	741.874	762.682
		TOTAL (B)	1955.020	1756.729	1886.203

	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		405.237	343.338	319.488

Less	FINANCIAL EXPENSES (D)		334.343	277.147	226.852

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		70.894	66.191	92.636

Less/ Add	DEPRECIATION/ AMORTISATION (F)		35.593	39.290	42.363

	PROFIT BEFORE TAX (E-F) (G)		35.301	26.901	50.273

Less	TAX (H)		12.282	23.162	16.179

	PROFIT AFTER TAX (G-H) (I)		23.019	3.739	34.094

	EARNINGS IN FOREIGN CURRENCY		4.155	5.078	199.276

	Earnings Per Share (Rs.)		1.97	1.49	2.31

PARTICULARS

31.03.2015

Sales Turnover (Approximately)

2500.000

The above information has been parted by Mr. Venkatesh (Senior Manager – Business Development)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	37.888	40.048	57.000

Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.98	0.18	1.56

Operating Profit Margin (PBDIT/Sales)	(%)	17.28	16.40	14.58

Return on Total Assets (PBT/Total Assets}	(%)	1.02	0.86	1.94

Return on Investment (ROI) (PBT/Networth)		0.07	0.06	0.11

Debt Equity Ratio (Total Liability/Networth)		2.99	2.90	3.08

Current Ratio (Current Asset/Current Liability)		1.07	1.12	1.12

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

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	120.000	120.000	120.000
Reserves & Surplus	319.189	327.271	352.097
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	439.189	447.271	472.097

Long-term borrowings	210.678	208.822	159.731
Short term borrowings	1084.465	1050.197	1216.187
CURRENT MATURITIES OF LONG-TERM DEBTS	57.000	40.048	37.888
Total borrowings	1352.143	1299.067	1413.806
Debt/Equity ratio	3.079	2.904	2.995

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)
Sales	2191.941	2093.079	2344.991
		(4.510)	12.035

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2191.941	2093.079	2344.991
Profit	34.094	3.739	23.019
	1.56%	0.18%	0.98%

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	Yes
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	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10531232	28/10/2014	106,400,000.00	AXIS BANK LIMITED	FIRST FLOOR, 6-3-879/B G PULLA REDDY BUILDING, GR EENLAND BEGUMPET, HYDERABAD- - 500016, TELANGANA, INDIA	C33583279
2	10531236	28/10/2014	170,000,000.00	AXIS BANK LIMITED	6-3-879/B FIRST FLOOR, G PULLA REDDY BUILDING, GR EENLAND BEGUMPET, HYDERABAD- 50001, TELANGANA, INDIA	C33584707
3	10541479	25/09/2014	141,800,000.00	CORPORATION BANK	LARGE CORPORATE BRANCH, PLOT NO 8, ROAD NO 1, 2ND FLOOR, FILM NAGAR, HYDERABAD- - 500033, TELANGANA, INDIA	C39679527
4	10510697	11/07/2014	20,000,000.00	AXIS BANK LIMITED	FIRST FLOOR, 6-3-879/B G PULLA REDDY BUILDING, GR EENLAND BEGUMPET, HYDERABAD-500016, TELANGANA, INDIA	C12709127
5	10507393	07/06/2014	50,000,000.00	CORPORATION BANK	PLOT NO 8 ROAD NO 1, 2ND FLOOR FILMNAGAR, HYDERAB AD-- 500096, TELANGANA, INDIA	C10110419
6	10481012	20/02/2014	100,000,000.00	AXIS BANK LIMITED	FIRST FLOOR, NO. 6-3-879/B, G PULLAREDDY BUILDING, GREENLAND, BEGUMPET, HYDERABAD- 500016, ANDHRA PRADESH, INDIA	B97793996
7	10478921	27/12/2013	250,000,000.00	INDIAN BANK	3-6-150, MAIN ROAD, HIMAYATHNAGAR, HYDERABAD- 500029, ANHRA PRADESH, INDIA	B96518519
8	10422705	24/09/2014 *	621,400,000.00	STATE BANK OF HYDERABAD	MC KUSHAIGUDA BRANCH,, ECIL POST, HYDERABAD, TELA NGANA - 500062, INDIA	C29696762
9	10420641	14/03/2013	75,000,000.00	INDIAN BANK	3-6-365 4TH FLOOR, LIBERTY PLAZA HIMAYATNAGAR, HY DERABAD- 500029, ANDHRA PRADESH, INDIA	B73438749
10	10421181	09/03/2013	100,000,000.00	INDIAN BANK	3-6-365, 4TH FLOOR, LIBERTY PLAZA, HIMAYATNAGAR, HYDERABAD- 500029, ANDHRA PRADESH, INDIA	B7360305

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Term Loans from others	40.665	0.000
Loans and advances from directors	21.237	99.737
Loans and advances from others	79.000	53.295
Total	140.902	153.032

CONTINGENT LIABILITIES:

Particulars

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

Guarantees

380.910

517.020

RESULTS OF OPERATIONS :

The performance of the Company for the year under review has been satisfactory.

In spite of the continued competition and severe constraints of working capital during the year, the Company had shown improved sales of Rs. 2455.200 Million over Rs. 2174.300 Million registering an increase of 11.3% over the previous year.

During the last year, the company committed to further improve its performance. In line with this commitment, the company could achieve profit before tax at Rs. 34.400 Million over the previous year figure of Rs. 26.900 Million, registering an increase of 12.77% over the previous year. Profit figures would have been still higher but for the steep increase in interest costs due to interest rate increase. During last report the Directors resolved to take action to liquidate stocks which were manufactured against customers confirmed orders and not lifted for a long period. The Directors are proud to state that the company has been remarkably successful in liquidating these

old stocks, that too, fortunately at current market prices which are far higher than the cost of manufacture.

OUTLOOK FOR THE CURRENT YEAR :

The current half of the year has been somewhat sluggish in demand and therefore industry is yet to pick up. The Directors expect this situation to improve in the second half of year. The Directors are glad to inform you that they have contracted for substantial additional working capital arrangements from the consortium of bankers to meet the large orders that it had received and also expect to receive in the coming months. As part of their own commitment, the Promoter-Directors have agreed to infuse Rs. 15.000 Million of share capital before 31st March 2015. The Directors are confident that with the availability these additional working capital facilities, the company would be able to substantially raise its business turnover in the current year itself.

FIXED ASSETS:

· Land

· Buiding

· Plant and Equipment

· Factory equipment

· Vehicles

· Furniture and Fixture

· Computer Equipment

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 theyre 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 bettheyen 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. 63.86
UK Pound	1	Rs. 97.98
Euro	1	Rs. 71.82

INFORMATION DETAILS

Information Gathered by :	PPT

Analysis Done by :	DIV

Report Prepared by :	IND

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--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	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		30

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.

MIRA INFORM REPORT

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