MIRA INFORM REPORT

Report No. :	327289
Report Date :	16.06.2015

IDENTIFICATION DETAILS

Name :	KRITI INDUSTRIES (INDIA) LIMITED
Registered Office :	Mehta Chambers, 34 - Siyagunj, Indore – 452007, Madhya Pradesh
Tel No.:	91-731-2704716
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	12.03.1990
Com. Reg. No.:	10-005732
Capital Investment / Paid-up Capital :	Rs.49.604 Million
CIN No.: [Company Identification No.]	L25206MP1990PLC005732
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	BPLK00508E BPLK02602F BPLK02569A
PAN No.: [Permanent Account No.]	AAACK7078B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Rigid PVC Pipes, etc.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1482000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company and it is having satisfactory track. Company was incorporated on 12^th March 1990; KIL is engaged in the production of plastic pipes, ducts and mouldings after demerger of its solvent extraction. Rating take in account on company increase in scale of operation backed gradual improvement in the capital structure. Ratings further continue to draw strength from the established operation of KIL in the plastics pipes and fitting business and stable demand outlook for plastic pipes. Rating partially offset due to seasonality associated with demand of its product, volatility of its raw material price in the market and intense competition in the plastic industry. However, trade relations are fair. Business is active. Payment terms are reported to be usually correct. In view of decent operation and capital structure base backed by its experienced promoter, the company can be considered for 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	CARE
Rating	Long term rating BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August 2014

Rating Agency Name	CARE
Rating	Short term rating A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	August 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 DETAILS)

Name :	Mr. Satish Patel
Designation :	Company Secretary
Contact No.:	91-731-2704716
Date :	13.06.2015

LOCATIONS

Registered Office :	Mehta Chambers, 34 - Siyagunj, Indore - 452007, Madhya Pradesh, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@kritiindia.com sjaju@kritiindia.com cs@kritiindia.com
Website :	www.kritiindia.com
Corporate Office :	Chetak Chambers, 14 R N T Marg, 4^th Floor, Indore - 452001, Madhya Pradesh, India
Tel. No.:	91-731-2704716 / 2719100 / 2719195
Fax No.:	91-731-2704506 / 4042118 / 2704701
Factory :	Plot No. 75-86 and 13/1, Tarpura, 75 - 86 Pithampur, District Dhar, Madhya Pradesh, India
Branch Office :	B/303, Third Floor, Dynesty Business park, Andheri Kurla Road, J B Nagar, Chakala, Andheri (East), Mumbai – 400043, Maharashtra, India

DIRECTORS

As on 31.03.2014

Name :	Mr. Shiv Singh Mehta
Designation :	Managing Director
Date of Birth/Age :	03.03.1954
Qualification :	B.E., M.B.A.
Date of Appointment :	12.03.1990
Name :	Mrs. Purnima Mehta
Designation :	Executive Director
Date of Birth/Age :	25.05.1960
Qualification :	B.A.(Hons), M.B.A, PGDBM
Date of Appointment :	01.10.1999
Name :	Dr. Swatantra Singh Kothari
Designation :	Director
Date of Birth/Age :	15.06.1930
Qualification :	Ph. D (Econ), FCA
Date of Appointment :	24.04.1992
Other Directorship:	· Jay Shree Tea & Industries Limited · Maharaja Shree Umaid Mills Limited · Kothari Management and Industrial Consultants private Limited
Name :	Mr. Rakesh Kalra
Designation :	Director
Date of Birth/Age :	11.09.1949
Qualification :	B. E.
Date of Appointment :	24.06.2006
Other Directorship:	· Tara Jewels Limited · Foton Motors · Marketing and Sales · India Private Limited · Foton Motors · Manufacturing India Private Limited · Kriti Nutrients Limited · Minda Automotive Solutions Limited
Name :	Mr. Manoj Fadnis
Designation :	Director
Date of Birth/Age :	16.07.1962
Qualification :	FCA
Date of Appointment :	24.06.2006
Other Directorship:	· Kriti Nutrients Limited · Kriti Auto & Engineering Plastics Private Limited · Madhya Pradesh Stock Exchange Limited · Extensible Business · Reporting Language (XBRL) INDIA
Name :	Dr. Somnath Ghosh
Designation :	Director
Date of Birth/Age :	31.05.1953
Qualification :	M.A., M. Phil, Ph.D.
Date of Appointment :	03.03.2009
Other Directorship:	· Kriti Nutrients Limited

KEY EXECUTIVES

Name :	Mr. Satish Patel
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2015

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2304847	4.65
Bodies Corporate	30312931	61.11
Sub Total	32617778	65.76
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	32617778	65.76
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1600	0.00
Sub Total	1600	0.00
(2) Non-Institutions
Bodies Corporate	1534884	3.09
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	8133205	16.40
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	7229901	14.58
Any Others (Specify)	86152	0.17
NRIs/OCBs	77052	0.16
Clearing Members	9100	0.02
Sub Total	16984142	34.24
Total Public shareholding (B)	16985742	34.24
Total (A)+(B)	49603520	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)	49603520	0.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Rigid PVC Pipes, etc.
Products :	Rigid PVC Pipes
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :
Products :	Raw Material
Countries :	USA China Korea Taiwan
Terms :
Selling :	Cash, Credit and Advance Payment (30, 60 and 90 Days)
Purchasing :	Cash, Credit and Advance Payment (30, 60 and 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 :	Not Divulged
Remark:	Not Divulged

No. of Employees :

600 (Approximately)

Bankers :

• State Bank of India
• State Bank of Travancore
• IDBl Bank Limited
• Bank of India
• State Bank of Hyderabad

Facilities :

SECURED LOAN	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
LONG-TERM BORROWINGS
TERM LOAN (Installment due within 12 months shown in Current Liabilities)	NA
From Banks
IDBI Bank Limited
(i) (Repayable in 19 Quarterly installments, Last installment due on 1st April, 2014 Rate of Interest 14.75% p.a.at year end.)		0.000
(iii) (Repayable in 42 monthly installments, Last installment due on 1st April 2014 Rate of Interest 14.75% p.a.at year end.)		17.123
State Bank of Hyderabad Rs.21.000 Million (Repayable in 11 quarterly installments, Last installment due on 31st December, 2014 Rate of Interest: 13.60% p.a.at year end.)		0.000
Bank of India (Repayable in 17 quarterly installments, Last installment due on 30th June, 2016 Rate of Interest: 13.65% p.a.at year end. (Above loans are secured by First charge/ Mortgage on fixed assets of the company and personal guarantee of Managing Director)	NA	27.713
State Bank of Hyderabad Rs.50.000 Million (Repayable in 20 quarterly installments, Last installment due on 31st December, 2019 Rate of Interest: 13.50% p.a.at year end.)		39.983
Short-term borrowings
From banks (Secured by hypothecation of finished goods, raw material, stock in process, store and spares, sundry debtors, export bills, receivables and second charge on fixed assets of the company and personal guarantee of Managing Director)		208.058
Total	NA	292.877

NOTE :

Above loan are secured by first charge / Mortgage on fixed assets of the company and personal guarantee of Managing Director.

Auditors :
Name :	R.D. Asawa and Company Chartered Accountants
Address :	403, Alankar Point, Geeta Bhawan Square, A.B. Road, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-2491393 / 2491376
Fax No.:	91-731-2491393
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Company :	Kriti Auto and Engineering Plastic Private Limited (Wholly owned Subsidiary Company)
Holding Company :	Sakam Trading Private Limited
Companies/entities under the control of Key Management Personnel :	Kriti Nutrients Limited (Subsidiary company of Sakam Trading Private Limited) Chetak Builders Private Limited (Subsidiary company of Sakam Trading Private Limited)

CAPITAL STRUCTURE

As on 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.1/- each	Rs.80.000 Million
2000000	Optional Convertible Preference Shares	Rs.10/- each	Rs.20.000 Million
	Total		Rs.100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49603520		Rs.1/- each	Rs.49.604 Million

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	49.604	49.604	49.604
(b) Reserves & Surplus	469.117	445.955	401.079
(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)	518.721	495.559	450.683
(3) Non-Current Liabilities
(a) long-term borrowings	141.854	84.819	92.260
(b) Deferred tax liabilities (Net)	66.271	61.515	58.919
(c) Other long term liabilities	20.209	18.353	16.174
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	228.334	164.687	167.353
(4) Current Liabilities
(a) Short term borrowings	240.703	214.603	255.836
(b) Trade payables	696.676	1116.921	995.469
(c) Other current liabilities	137.216	117.577	126.164
(d) Short-term provisions	12.807	39.323	35.165
Total Current Liabilities (4)	1087.402	1488.424	1412.634
TOTAL	1834.457	2148.670	2030.670
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	543.652	458.010	439.813
(ii) Intangible Assets	0.000	3.523	4.858
(iii) Capital work-in-progress	0.000	11.702	1.778
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	77.815	77.715	77.715
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	13.161	11.497	10.639
(e) Other Non-current assets	11.800	3.000	0.000
Total Non-Current Assets	646.428	565.447	534.803
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	651.426	748.574	730.145
(c) Trade receivables	269.009	578.331	520.920
(d) Cash and cash equivalents	81.692	85.779	65.089
(e) Short-term loans and advances	124.902	96.424	79.454
(f) Other current assets	61.000	74.115	100.259
Total Current Assets	1188.029	1583.223	1495.867
TOTAL	1834.457	2148.670	2030.670

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	707.616	3582.324	3193.574
	Other Income	4.056	11.540	18.628
	TOTAL	711.672	3593.864	3212.202
Less	EXPENSES
	Cost of Materials Consumed	591.235	2859.511	2434.857
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(93.950)	(3.208)	60.916
	Employees benefits expense	38.385	149.127	137.148
	Other expenses	94.963	324.032	323.561
	TOTAL	630.633	3329.462	2956.482
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	81.039	264.402	255.720
Less	FINANCIAL EXPENSES	31.946	137.250	136.158
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	49.093	127.152	119.562
Less/ Add	DEPRECIATION/ AMORTISATION	9.448	44.532	42.104
	PROFIT/ (LOSS) BEFORE TAX	39.645	82.620	77.458
Less	TAX (I)	14.164	29.096	27.278
	PROFIT/ (LOSS) AFTER TAX	25.481	53.524	50.180
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	NA	96.692	65.160
Less	APPROPRIATIONS
	Transfer to General Reserve		10.000	10.000
	Proposed Dividend		7.441	7.441
	Corporate Dividend Tax		1.207	1.207
	Total (M)	NA	18.648	18.648
	BALANCE CARRIED TO THE B/S		150.216	96.692
	IMPORTS
	Raw Materials		356.206	445.711
	Components and Stores parts		0.412	16.981
	Capital Goods		0.064	0.000
	TOTAL IMPORTS	NA	356.682	462.692
	Earnings / (Loss) Per Share (Rs.)	0.51	1.08	1.01

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015 (Rs. In Millions)	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Current Maturities of Long term debt	NA	57.190	63.636
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	3.60	1.49	1.57
Operating Profit Margin (PBIDT/Sales)	(%)	11.45	7.38	8.01
Return on Total Assets (PBT/Total Assets}	(%)	2.26	4.01	3.97
Return on Investment (ROI) (PBT/Networth)		0.08	0.17	0.17
Debt Equity Ratio (Total Liability /Networth)		0.74	0.72	0.91
Current Ratio (Current Asset/Current Liability)		1.09	1.06	1.06

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.000	49.604	49.604
Reserves & Surplus	401.079	445.955	469.117
Net worth	401.079	495.559	518.721
long-term borrowings	92.260	84.819	141.854
Short term borrowings	255.836	214.603	240.703
Total borrowings	348.096	299.422	382.557
Debt/Equity ratio	0.868	0.604	0.738

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	3193.574	3582.324	707.616
		12.173	(80.247)

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	3193.574	3582.324	707.616
Profit	50.180	53.524	25.481
	1.57%	1.49%	3.60%

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	No
22	Conduct of the banking account	No
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	No
33	Market information	No
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

MANAGEMENT DISCUSSION AND ANAYLSIS REPORT (2014)

INDUSTRY STRUCTURE AND DEVELOPMENT

India’s plastics industry is projected to grow continuously in the coming years, the business of PVC pipes is largely measured by demand for pipes in agriculture sector. With agriculture continue to grow in India it is expected that PVC sector will grow around 9-10% in the coming years.

Increased Micro Irrigation spends, higher allocation towards rural water infrastructure for potable water, focus on urban and rural housing, infrastructure projects, demand for lying gas pipes, expansion of telecommunication network and setting up of broad band lines to the rural and remote areas will in totality improve the demand situation for industry.

CORPORATE INFORMATION

Subject is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 on 09/11/1995 and having its Registered office in Indore (MP). The company’s shares are listed in the Bombay Stock Exchange (BSE) and Madhya Pradesh Stock Exchange (MPSE).

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
SHORT-TERM BORROWINGS
Unsecured	NA	6.545
Total	NA	6.545

CONTINGENT LIABILITIES (2014)

Estimated amount of contracts remaining to be executed on Capital Account Rs. 0.041 Million net of advance given (Previous Year Rs. 0.424 Million)

Bank has given guarantee on behalf of the Company to various parties to the extent of Rs.161.080 Million (Previous Year Rs. 41.856 Million.)

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10507387	10/06/2014	40,000,000.00	State Bank of India	Commercial Branch Gpo, Ab Road Indore, Indore, Madhya Pradesh - 452007, India	C10102143
2	10507385	10/06/2014	73,300,000.00	State Bank of India	Commercial Branch, Gpo Ab Road, Indore, Madhya Pradesh - 452001, India	C10101129
3	10457688	30/10/2013	150,000,000.00	IDBI Bank Limited	Specialised Corporate Branch, C S Nayudu Arcade, Upper Ground Floor, 10/2 Old Palasia, Indore, Madhya Pradesh - 452001, India	B88573159
4	10457689	30/10/2013	150,000,000.00	IDBI Bank Limited	Specialised Corporate Branch, C S Nayudu Arcade, Upper Ground Floor, 10/2 Old Palasia, Indore, Ma Dhya Pradesh - 452001, India	B88574892
5	10452841	09/10/2013	50,000,000.00	STATE BANK OF HYDERABAD	90/91, Udapura, Jawahar Marg, Indore, Madhya Pradesh - 452001, India	B86569563
6	10342705	07/01/2013 *	60,000,000.00	IDBI Bank Limited	Specialised Corporate Branch, C S Nayudu Arcade, Upper Ground Floor, 10/2 Old Palasia, Indore, Madhya Pradesh - 452001, India	B67336230
7	10280331	29/03/2011 *	48,300,000.00	IDBI Bank Limited	Upper Ground Floor, Captain C.S. Nayadu Arcade, 10/2, Old Palasia, Indore, Madhya Pradesh - 452001  , India	B11728631
8	10256485	29/03/2011 *	23,700,000.00	STATE BANK OF HYDERABAD	90/91, Udapura, Jawahar Marg, Indore, Madhya Pradesh - 452001, India	B11444999
9	10259105	21/06/2013 *	1,188,500,000.00	STATE BANK OF INDIA	Commercial Branch, A.B. Road, Near Gpo, Indore, Madhya Pradesh - 452001, India	B79550844
10	10244893	29/03/2011 *	120,000,000.00	BANK OF INDIA	Indore Mcb Branch, Indore, Madhya Pradesh - 452010, India	B11068251

FIXED ASSETS

Tangible Assets

v Land

v Factory Building

v Plant and Machinery

v Dies and Moulds

v Vehicles

v Furniture and Fixture

v Computer

Intangible Assets

v Software

v Goodwill

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report : No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.09
UK Pound	1	Rs.99.57
Euro	1	Rs.71.84

INFORMATION DETAILS

Information Gathered by :	PRP
Analysis Done by :	KAS
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.