MIRA INFORM REPORT

Report No. :	328418
Report Date :	25.06.2015

IDENTIFICATION DETAILS

Name :	BHANDARI EXPORT INDUSTRIES LIMITED
Registered Office :	605, Street No 5, Jodh Colony, Muktsar – 152026, Punjab
Mobile No.:	91-8725034812 (Mr. Gaurav Bansal)
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	12.05.1992
Com. Reg. No.:	16-012274
Capital Investment / Paid-up Capital :	Rs.179.150 Million
CIN No.: [Company Identification No.]	U51909PB1992PLC012274
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of cotton and polyester yarn.
No. of Employees :	Information declined by the management

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. For the financial year ended 2014, company has reported sound operational performance and it has achieved some profit from its operational. Due to profit company has able to recover some of its accumulated losses during a year under a review. Rating remain constrained on account of company's moderate financial 'risk profile marked by huge accumulated losses recorded by the company and weak coverage indicator. However, trade relations are fair. Business is active. Payments i : are reported to be slow but correct 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: BB
Rating Explanation	Inadequate credit quality and high credit risk
Date	17.04.2015

Rating Agency Name	CARE
Rating	Short term bank facilities: A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	17.04.2015

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

INFORMATION DECLINED BY

Name :	Mr. Gaurav Bansal
Designation :	Not Divulged
Contact No.:	91-8725034812
Date :	24.06.2015

LOCATIONS

Registered Office :	605, Street No 5, Jodh Colony, Muktsar – 152026, Punjab, India
Tel. No.:	Not Available
Mobile No.:	91-9915712604 (Mr. Jatin) 91-8725034812 (Mr. Gaurav Bansal)
Fax No.:	Not Available
E-Mail :	rakesh_dhuria@rediffmail.com
Unit:	Located at Lalru, Punjab, India

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Deepak Jagga

Designation :

Managing director

Address :

159, Sector 33A, Chandigarh - 160020, India

Date of Birth/Age :

17.01.1975

Date of Appointment :

23.08.2011

DIN No.:

03038259

PAN No.:

AAUPJ5921F

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	U51909PB1992PLC012274	BHANDARI EXPORT INDUSTRIES LTD	Managing director	23-08-11	15-03-10	-	Active	NO

Name :

Mr. Sunil Kaura

Designation :

Director

Address :

House No 1390, Pushpak Complex, Sector 49-B, Chandigarh -160017, India

Date of Birth/Age :

20.03.1967

Date of Appointment :

23.08.2011

DIN No.:

05126396

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	U51909PB1992PLC012274	BHANDARI EXPORT INDUSTRIES LTD	Director	23-08-11	23-08-11	-	Active	NO
2	U17220PB2005PLC028877	T.C. TERRYTEX LIMITED	Whole-time director	01-04-14	06-06-12	-	Active	NO

Name :

Mr. Jitendra Kumar Agarwal

Designation :

Director

Address :

A-127, Sector - 27, Noida - 201301, Uttar Pradesh, India

Date of Birth/Age :

05.10.1952

Date of Appointment :

15.07.2013

DIN No.:

00850314

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	L21012PB1980PLC004329	SATIA INDUSTRIES LIMITED	Nominee director	16-03-06	16-03-06	02-05-09	Active	NO
2	U51909PB1992PLC012274	BHANDARI EXPORT INDUSTRIES LTD	Director	15-07-13	30-11-12	-	Active	NO
3	U74900DL2013PTC256182	Creativelane Payment Systems Private Limited	Director	02-08-13	02-08-13	-	Active	NO
4	L52110DL1984PLC019625	DELTA INDUSTRIAL RESOURCES LIMITED	Additional director	11-11-14	11-11-14	-	Active	NO

Name :

Mr. Man Mohan Sikka

Designation :

Additional director

Address :

F- 237, 2nd Floor, New Rajendra Nagar, New Delhi - 110060, India

Date of Birth/Age :

07.06.1942

Date of Appointment :

09.03.2007

DIN No.:

01194696

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	U21012PB1980PLC004260	B K DUPLEX BOARD LIMITED	Director	01-04-05	01-04-05	04-03-13	Active	NO
2	L17115PB1993PLC013930	BHANDARI HOSIERY EXPORTS LTD	Director	29-09-14	27-01-07	14-02-15	Active	NO
3	U51909PB1992PLC012274	BHANDARI EXPORT INDUSTRIES LTD	Additional director	09-03-07	09-03-07	-	Active	NO

Name :

Mr. Sanjay Krishna Ahuja

Designation :

Nominee director

Address :

H No 85, Sector-8-A, Chandigarh, 160018, India

Date of Birth/Age :

01.12.1960

Date of Appointment :

08.11.2000

DIN No.:

00399501

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	U15141PB1993PLC016983	GLOBUS INDUSTRIES AND SERVICES LIMITED	Director	25-06-96	25-06-96	-	Active	NO
2	U17115CH1994PLC015140	CHEEMA SPINTEX LTD	Nominee director	08-11-00	08-11-00	-	Active	NO
3	U51909PB1992PLC012274	BHANDARI EXPORT INDUSTRIES LTD	Nominee director	08-11-00	08-11-00	-	Active	NO
4	U17116CH1994PLC015152	DEV SPINNERS LIMITED	Nominee director	24-01-03	24-01-03	-	Active	NO
5	U17111PB1992PLC012747	SATIA SYNTHETICS LIMITED	Director	27-03-03	27-03-03	-	Active	NO
6	U17115PB1991PLC011188	FAZILKA COTTON AND SYNTHETICS LTD	Director	28-03-03	28-03-03	09-09-09	Active	NO
7	L17117PB1988PLC016933	SUPREME TEX MART LIMITED	Director	16-04-03	16-04-03	-	Active	NO
8	U18101PB1994PLC015403	ABHINAV COTSPIN LTD.	Nominee director	28-08-03	28-08-03	-	Active	NO
9	L15203PB1991PLC019162	CEPHAM MILK SPECIALITIES LIMITED	Nominee director	30-01-06	30-01-06	-	Active	YES
10	U30009PB1980PLC004276	ELECTRONICS SYSTEMS PUNJAB LTD	Nominee director	28-05-10	28-05-10	-	Active	NO
11	U24232CH1983PLC005474	JAPSON PHARMACEUTICALS (PB) LIMITED	Nominee director	23-05-11	23-05-11	-	Active	NO

Name :

Mr. Gurbachan Singh Matta

Designation :

Director

Address :

H-332, Vikaspuri, New Delhi - 110018, India

Date of Birth/Age :

24.03.1948

Date of Appointment :

05.02.2011

DIN No.:

02612602

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	U67190DL2005PTC133605	SOLITAIRE CAPITAL TRUSTEES PRIVATE LIMITED	Additional director	02-04-09	02-03-09	05-03-13	Active	NO
2	L99999UR1993PLC032518	UTTAM SUGAR MILLS LIMITED	Director	18-08-10	12-09-09	-	Active	NO
3	U51909PB1992PLC012274	BHANDARI EXPORT INDUSTRIES LTD	Director	05-02-11	05-02-11	-	Active	NO
4	L51494DL1984PLC019684	CHAMAK HOLDINGS LIMITED	Director	26-02-15	26-02-15	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Naresh Bhandari	240000
Kusum Bhandari	125030
Dhruv Satia	739000
Punjab State Industrial	746000
Deepak Jagga	45000
Rajender Bhandari	19970
Rhino Overseas (Private) Limited, India	5550000
Satia Industries Limited, India	5450000
White Gold Fincap (Private) Limited, India	2500000
RKB Sates (Private) Limited, India	2500000
Total	17915000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Bodies corporate	93.47
Directors or relatives of Directors	0.25
Other top fifty shareholders	6.28
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of cotton and polyester yarn.

Products :

Item Code No.	Product Description
52051109	yarn

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

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 :

Information declined by the management

Bankers :

• Central Bank of India, Sector 17-B, Chandigarh - 160017, India
• Punjab National Bank, Chandigarh Road Branch, Ludhiana, Punjab, India

Banker Name	Allahabad Bank
Branch Address	Sector 8-C, Madhya Marg, Chandigarh - 160018, Chandigarh, 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

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Rupee term loans from banks	86.947	109.213
SHORT TERM BORROWING
Loans repayable on demand from banks	262.088	175.508
Total	349.035	284.721

Auditors :
Name :	Rakesh Bansal and Company Chartered Accountant
Address :	Newv Grain Market, Muktsar-152026, Punjab, India
PAN N Income-tax PAN of auditor or auditor's firm :	ABJPB2567P
Memberships :	--
Collaborators :	--
Associates:	Satia Industries Limited, India [L21012PB1980PLC004329]

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs. 300.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17915000	Equity Shares	Rs.10/- each	Rs. 179.150 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	179.150	179.150	129.150
(b) Reserves & Surplus	(32.043)	(34.545)	(80.346)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	50.000
Total Shareholders’ Funds (1) + (2)	147.107	144.605	98.804
(3) Non-Current Liabilities
(a) long-term borrowings	89.412	112.919	151.190
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	8.040	3.550	0.000
(d) long-term provisions	4.129	2.154	1.866
Total Non-current Liabilities (3)	101.581	118.623	153.056
(4) Current Liabilities
(a) Short term borrowings	262.088	175.508	124.800
(b) Trade payables	98.416	51.040	37.640
(c) Other current liabilities	31.512	3.636	14.390
(d) Short-term provisions	12.474	9.573	8.547
Total Current Liabilities (4)	404.490	239.757	185.377
TOTAL	653.178	502.985	437.237
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	126.166	130.351	127.367
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	1.056	1.967	15.101
(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	11.691	8.029	7.379
(e) Other Non-current assets	14.688	11.643	0.000
Total Non-Current Assets	153.601	151.990	149.847
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	217.745	171.225	101.947
(c) Trade receivables	249.120	130.516	103.018
(d) Cash and cash equivalents	12.480	10.424	7.236
(e) Short-term loans and advances	15.445	35.075	72.389
(f) Other current assets	4.787	3.755	2.800
Total Current Assets	499.577	350.995	287.390
TOTAL	653.178	502.985	437.237

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	1248.445	1049.634	805.575
	Other Income	2.861	2.382	2.212
	TOTAL (A)	1251.306	1052.016	807.787
Less	EXPENSES
	Cost of Materials Consumed	1042.951	841.283	680.388
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(23.853)	(47.527)	(24.421)
	Employees benefits expense	71.524	52.412	37.588
	Other expenses	103.272	92.395	75.715
	Prior period items	0.650	0.130	0.298
	TOTAL (B)	1194.544	938.693	769.568
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	56.762	113.323	38.219
Less	FINANCIAL EXPENSES (D)	43.433	41.617	27.126
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	13.329	71.706	11.093
Less/ Add	DEPRECIATION/ AMORTISATION (F)	10.827	25.905	5.868
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	2.502	45.801	5.225
Less	TAX (H)	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	2.502	45.801	5.225
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	0.000	8.953	18.624
	TOTAL EARNINGS	0.000	8.953	18.624
	IMPORTS
	Raw Materials	0.000	0.000	12.370
	Components and Stores parts	0.000	0.086	1.024
	Machinery	0.000	0.000	17.719
	TOTAL IMPORTS	0.000	0.086	31.113
	Earnings / (Loss) Per Share (Rs.)	0.14	2.56	0.40

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

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.20	4.36	0.65
Operating Profit Margin (PBIDT/Sales)	(%)	4.55	10.80	4.74
Return on Total Assets (PBT/Total Assets}	(%)	0.38	9.14	1.24
Return on Investment (ROI) (PBT/Networth)		0.02	0.32	0.05
Debt Equity Ratio (Total Debt /Networth)		2.39	1.99	2.79
Current Ratio (Current Asset/Current Liability)		1.24	1.46	1.55

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	129.150	179.150	179.150
Reserves & Surplus	-80.346	-34.545	-32.043
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	50.000	0.000	0.000
Net worth	98.804	144.605	147.107
long-term borrowings	151.190	112.919	89.412
Short term borrowings	124.800	175.508	262.088
Total borrowings	275.990	288.427	351.500
Debt/Equity ratio	2.793	1.995	2.389

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	805.575	1049.634	1248.445
		30.296	18.941

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	805.575	1049.634	1248.445
Profit	5.225	45.801	2.502
	0.65%	4.36%	0.20%

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	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

OPERATIONS

During the financial year 2013-14, net revenue from operation was Rs 1248.445 Million as compared to Rs 1052.016 Million during the corresponding period of the previous year 2012-13. The net profit after tax of the Company is Rs 2.502 Million as Compared to Rs 45.802 Million during the corresponding period of previous year.

The Directors have decided to plough back the profits and do not recommend any dividend.

FUTURE PROSPECTS

India Spinning Industry has gone from strength to strength since a very long time now as it was the hub of cotton manufacturing. Cotton is not only consumed to the highest extent in India but it has also become one of the most profitable textiles in the export industry. The present downfall in the cotton production has witnessed a 50% increase in the price of Indian varieties of ELS, which is detrimental for the spinning industry in India. Spinning mills require domestic accessibility of ELS cotton in increased quantity and of better fiber qualities To survive this downfall in the cotton trade which is a highly profitable textile in the India Spinning Industry, CITI-CDRA is conducting a conference with various research organizations such as CICR (Nagpur), JNKVV (Khandwa), UAS (Dharwad), and Regional Textile Mills' Association in R and D activities. It conducted a discussion pertaining to the development of new varieties of seeds and adopting the advanced procedure of cultivation which will add to the profit in the cotton textile sector of the spinning industry. The most important and efficient step towards the resurgence of cotton manufacturing would be to develop the ELS varieties with lesser duration crops and yield to cost-effectiveness and consistency in cultivation.

This will not only motivate the farmers but will also make them stick to the desired sector of cotton crop.

CORPORATE INFORMATION

Subject is a leading textile yarn manufacturing company .It has state-of-the-art production facilities in the State of Punjab. Products of company confirm to international standards. Company also confirm to international standards of Human Resources practices.

UNSECURED LOAN

Particulars	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG TERM BORROWING
Loans taken for vehicles	2.465	3.706
Total	2.465	3.706

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10383278	10/10/2013 *	496,700,000.00	CENTRAL BANK OF INDIA	SECTOR 17-B, CHANDIGARH, CHANDIGARH - 160017, INDI A	B89842207

* Date of charge modification

FIXED ASSETS

Tangible assets

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office 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 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.63.67
UK Pound	1	Rs.10.50
Euro	1	Rs.71.31

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAR
Report Prepared by :	KVT

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	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.