MIRA INFORM REPORT

Report No. :	310333
Report Date :	07.03.2015

IDENTIFICATION DETAILS

Name :	BHAVYA CEMENTS LIMITED
Registered Office :	Thangeda Village, Dachepally Mandal, District Guntur – 522414, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	16.04.2007
Com. Reg. No.:	01-053611
Capital Investment / Paid-up Capital :	Rs. 771.700 Millions
CIN No.: [Company Identification No.]	U26941AP2007PLC053611
TAN No.: [Tax Deduction & Collection Account No.]	HYDB03403B
PAN No.: [Permanent Account No.]	AADCB1182A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Seller of Cement.
No. of Employees :	500 (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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial risk profile marked by leverage capital structure and sharp dip in profitability of the company during 2014. However, trade relations are fair. Business is active. Payments 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: “BB”
Rating Explanation	Inadequate credit quality and high credit risk.
Date	14.03.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating: “A4+”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	14.03.2014

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Bheem Reddy
Designation :	Accounts Manager
Contact No.:	91-40-23558384
Date :	04.03.2015

LOCATIONS

Registered Office/ Factory :	Thangeda Village, Dachepally Mandal, District Guntur – 522414, Andhra Pradesh, India
Tel. No.:	91-8649-273900
Fax No.:	91-8649-273819
E-Mail :	bhavyacementworks@gmail.com i.d.reddy@gmail.com murty@bhavyacements.in
Website :	www.bhavyacements.in
Location :	Owned
Corporate Office :	Plot No. A-1, IInd Floor, Bhavya’s Spoorthi Bhavan, Film Nagar, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Tel. No.:	91-40-23558384 / 85
Fax No.:	91-40-23558393
E-Mail :	info@bhavyacements.in marketing@bhavyacements.in

DIRECTORS

As on 15.09.2014

Name :

Mr. Prasad Anand Venigalla

Designation :

Managing Director

Address :

Plot No.1099/A, Road No.41, Jubilee Hills Society, Hyderabad - 500034, Telangana, India

Date of Birth/Age :

14.04.1959

Qualification :

Degree

Date of Appointment :

21.10.2012

DIN No. ::

00207561

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	U45200TG1991PTC013314	BHAVYA CONSTRUCTIONS PRIVATE LIMITED	Managing director	15-10-1991	15-10-1991	Active	NO
2	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Managing director	21-10-2012	16-04-2007	Active	NO
3	U45200TG2009PTC063126	BHAVYA CASTLES HYDERABAD PRIVATE LIMITED	Director	20-03-2009	20-03-2009	Active	NO

Name :

Ms. Kumari Krishna Venigalla

Designation :

Director

Address :

Plot No.1099/A, Raod No.41, Jubilee Hills Society, Hyderabad - 500034, Telangana, India

Date of Birth/Age :

04.09.1965

Qualification :

MBA

Date of Appointment :

16.04.2007

DIN No. ::

00207725

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	U45200TG1991PTC013314	BHAVYA CONSTRUCTIONS PRIVATE LIMITED	Director	31-12-1993	31-12-1993	Active	NO
2	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Director	16-04-2007	16-04-2007	Active	NO

Name :

Mr. Venkata Rao Yaramasu

Designation :

Director

Address :

6 3 609-1 & 2, F-504, Bhavya’s Santhi Nivas, Anand Nagar Colony, Khairatabad, Hyderabad – 500004, Telangana, India

Date of Birth/Age :

01.08.1965

Qualification :

B. Tech

Date of Appointment :

02.02.2010

DIN No. ::

01046905

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	U63022TG1998PTC029401	KEERTHANA COLD STORAGE PRIVATE LIMITED	Director	20-07-2006	20-07-2006	02-01-2014	Active	NO
2	L29219TG1983PLC004319	LOKESH MACHINES LIMITED	Director	27-09-2006	27-09-2006	31-10-2008	Active	NO
3	U15139TG2006PTC051839	SYRYS FOODS PRIVATE LIMITED	Director	30-11-2006	30-11-2006	30-09-2010	Active	NO
4	U67120TG2007PTC054774	YVM INVESTMENT PRIVATE LIMITED	Director	12-07-2007	12-07-2007	-	Active	YES
5	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Director	02-02-2010	02-02-2010	-	Active	NO

Name :

Mr. Ravi Ghanshyamdas Lekhrajani

Designation :

Nominee Director

Address :

Flat No. 51, 5^th Floor, Juhu Gaurav, JVPD Scheme, Gulmohar Cross, Road No. 11, Juhu, Mumbai - 400049, Maharashtra, India

Date of Birth/Age :

26.11.1969

Qualification :

B.Com

Date of Appointment :

08.12.2009

DIN No. :

01759409

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	U74140GJ2004PTC044853	GRIN BPO SERVICES PRIVATE LIMITED	Director	04-10-2004	04-10-2004	20-03-2012	Active	NO
2	U34300PN1985PTC035877	INDO SCHOTTLE AUTO PARTS PVT LTD	Nominee director	28-11-2005	28-11-2005	13-08-2008	Active	NO
3	U24110MH1991PTC063399	PHTHALO COLOURS AND CHEMICALS (INDIA) LIMITED	Nominee director	23-07-2007	23-07-2007	-	Active	NO
4	U60100WB2004PTC100396	VENKATESH LOGISTICS PRIVATE LIMITED	Nominee director	01-12-2008	01-12-2008	-	Active	NO
5	U21093PN2004PLC018983	BILTUBE INDUSTRIES LIMITED	Nominee director	09-11-2009	09-11-2009	-	Active	NO
6	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Nominee director	08-12-2009	08-12-2009	-	Active	NO
7	U67190MH2010PTC202800	WIP (INDIA) PRIVATE LIMITED	Director	31-10-2011	07-05-2010	-	Active	NO
8	U74999MH1955PLC009593	S H KELKAR AND COMPANY Limited	Director	04-09-2010	27-08-2010	08-08-2012	Active	NO
9	U99999MH1990PLC056461	TOPACK FITTINGS LIMITED	Director	08-06-2011	08-06-2011	-	Active	NO
10	U27100MH2005PTC153462	TEKNO STEELS AND FORGINGS PRIVATE LIMITED	Director	08-06-2011	08-06-2011	-	Active	NO
11	L74210WB1981PLC034281	RAMKRISHNA FORGINGS LTD	Nominee director	20-07-2013	03-04-2013	15-01-2015	Active	NO
12	U24100GJ2007PLC051697	SEBACIC INDIA LIMITED	Nominee director	07-02-2014	07-02-2014	-	Active	NO

Name :

Mr. Shivakumar Pokala

Designation :

Whole Time Director

Address :

H. No. 6-2-10, Flat No. 202, Temple View Residency, Lakdikapool, Hyderabad – 500004, Telangana, India

Date of Birth/Age :

05.08.1967

Qualification :

MCA

Date of Appointment :

01.08.2012

DIN No. ::

02489876

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	U26941AP2007PLC053611	BHAVYA CEMENTS LIMITED	Whole-time director	01-08-2012	16-04-2007	Active	NO
2	U45200TG2009PTC063126	BHAVYA CASTLES HYDERABAD PRIVATE LIMITED	Director	20-03-2009	20-03-2009	Active	NO

KEY EXECUTIVES

Name :	Mr. Bheem Reddy
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 15.09.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

As on 15.09.2014

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	38.30
Directors or relatives of Directors	61.70
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Seller of Cement.
Products :	Cement
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Finished Goods
Countries :	Srilanka
Imports :	--
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

Customers :

Wholesalers, Retailers and End Users

Reference:	Not Divulged
Name of the Person (with Designation):	Not Divulged
Contact Number:	Not Divulged
Since How Long Known:	Not Divulged
Maximum Limit Dealt:	Not Divulged
Experience :	Not Divulged
Remarks :	Not Divulged

No. of Employees :

500 (Approximately)

Bankers :

Bank Name:	Punjab National Bank (Lead Banker)
Branch:	8-2-672 Large Corporate Branch, Sufi Chambers, Road No. 1, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India
Name of the Person (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):	Not Divulged
Account Operation:	Not Divulged
Remarks: Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	771.895	1030.053
Rupee term loans from others	1.533	1.767
Loans and advances from others	0.000	8.561
SHORT TERM BORROWINGS
Working capital loans from banks	571.337	558.953
Total	1344.765	1599.334

Banking Relations :	--
Financial Institution :	Tata Capital Limited, One Forbes, Dr V B Gandhi Marg, Fort, Mumbai - 400001, Maharashtra, India
Auditors :
Name :	Mahavishnu and Sharma Chartered Accountants
Address :	Flat No: 202, IInd Floor, 1-8-131 to 143 Karan Residency, Prenderghast Road, Secunderabad – 500003, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	ACWPG5130B
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

After 15.09.2014

Authorised Capital : Rs. 785.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 771.700 Millions

As on 15.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
37,500,000	Equity Shares	Rs.10/- each	Rs. 375.000 Millions
4,000,000	Preference Shares	Rs.100/- each	Rs. 400.000 Millions
	Total		Rs. 775.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
37,170,000	Equity Shares	Rs.10/- each	Rs. 371.700 Millions
4,000,000	Preference Shares	Rs.100/- each	Rs. 400.000 Millions
	Total		Rs. 771.700 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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	771.700	771.700	771.700
(b) Reserves & Surplus	322.416	311.459	261.583
(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)	1094.116	1083.159	1033.283
(3) Non-Current Liabilities
(a) long-term borrowings	1059.718	1040.381	1402.755
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	231.383	153.077	65.376
(d) long-term provisions	31.096	30.975	25.294
Total Non-current Liabilities (3)	1322.197	1224.433	1493.425
(4) Current Liabilities
(a) Short term borrowings	571.337	558.953	172.475
(b) Trade payables	91.390	131.398	91.961
(c) Other current liabilities	649.257	613.863	573.918
(d) Short-term provisions	0.170	0.087	0.066
Total Current Liabilities (4)	1312.154	1304.301	838.420
TOTAL	3728.467	3611.893	3365.128
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2095.133	2376.610	2689.773
(ii) Intangible Assets	0.281	0.703	1.488
(iii) Capital work-in-progress	88.657	58.427	26.411
(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	131.462	122.624	50.967
(e) Other Non-current assets	0.160	0.224	1.191
Total Non-Current Assets	2315.693	2558.588	2769.830
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	424.089	325.417	179.073
(c) Trade receivables	431.024	239.422	194.449
(d) Cash and cash equivalents	15.614	1.886	12.124
(e) Short-term loans and advances	21.978	145.267	208.104
(f) Other current assets	520.069	341.313	1.548
Total Current Assets	1412.774	1053.305	595.298
TOTAL	3728.467	3611.893	3365.128

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2586.502	2822.149	2761.420
		Other Income	8.429	15.038	2.151
		TOTAL (A)	2594.931	2837.187	2763.571
Less	EXPENSES
		Cost of Materials Consumed	296.501	337.896	333.527
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(17.172)	(155.844)	(34.700)
		Employees benefits expense	80.950	77.202	69.792
		Other expenses	1638.076	2058.282	1433.697
		Extraordinary Items	1.035	(178.127)	0.000
		TOTAL (B)	1999.390	2139.409	1802.316
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		595.541	697.778	961.255
Less	FINANCIAL EXPENSES (D)		284.883	284.615	313.269
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		310.658	413.163	647.986
Less/ Add	DEPRECIATION/ AMORTISATION (F)		299.701	363.286	384.089
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		10.957	49.877	263.897
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		10.957	49.877	263.897
	IMPORTS
		Capital Goods	NA	1.621	5.792
	TOTAL IMPORTS		NA	1.621	5.792
	Earnings / (Loss) Per Share (Rs.)			4.83	5.72

Expected Sales (2014-2015): Rs. 1860.000 Millions (Due to Market Fluctuation).

The above information has been parted by Mr. Bheem Reddy (Accounts Manager).

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	0.42	1.77	9.56
Operating Profit Margin (PBDIT/Sales)	(%)	23.02	24.73	34.81
Return on Total Assets (PBT/Total Assets}	(%)	0.30	1.40	7.90
Return on Investment (ROI) (PBT/Networth)		0.01	0.05	0.26
Debt Equity Ratio (Total Debt/Networth)		1.49	1.48	1.52
Current Ratio (Current Asset/Current Liability)		1.08	0.81	0.71

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	771.700	771.700	771.700
Reserves & Surplus	261.583	311.459	322.416
Net worth	1033.283	1083.159	1094.116
long-term borrowings	1402.755	1040.381	1059.718
Short term borrowings	172.475	558.953	571.337
Total borrowings	1575.230	1599.334	1631.055
Debt/Equity ratio	1.524	1.477	1.491

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2761.420	2822.149	2586.502
		2.199	(8.350)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2761.420	2822.149	2586.502
Profit	263.897	49.877	10.957
	9.56%	1.77%	0.42%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10528419	25/09/2014	1,897,594.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	ONE FORBES, DR. V. B. GANDHI MARG, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	C31764020
2	10528418	17/09/2014	22,485,505.00	TATA CAPITAL FINANCIAL SERVICES LIMITED	ONE FORBES, DR. V. B. GANDHI MARG, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	C31761646
3	10124959	29/09/2014 *	2,800,000,000.00	PUNJAB NATIONAL BANK (LEAD BANKER)	8-2-672 LARGE CORPORATE BRANCH, SUFI CHAMBERS, ROAD NO. 1 BANJARAHILLS, HYDERABAD, TELANGANA - 500034, INDIA	C33796590

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Borrowing from foreign companies	286.290	0.000
Total	286.290	0.000

BACKGROUND

The Company was incorporated on 16 April 2007 as a public limited company under the provisions of the Companies Act, 1956. The Company carries out the business of manufacture and sale of cement. The Company has commenced commercial production with effect from 25 September 2010.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Other Equipments

Intangible Assets

· Computer Software

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.61.85
UK Pound	1	Rs.94.96
Euro	1	Rs.69.10

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	MRI

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	3
--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	NO
--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.