MIRA INFORM REPORT

Report No. :	323915
Report Date :	28.05.2015

IDENTIFICATION DETAILS

Name :	AVANTI LEATHERS LIMITED
Registered Office :	Avanti, Kambakkam Village, Varadaiahpalem, District Chittoor - 517541, Andhra Pradesh
Tel. No.:	91-44-26872250
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.03.1976
Com. Reg. No.:	01-002007
Capital Investment / Paid-up Capital :	Rs. 131.092 Million
CIN No.: [Company Identification No.]	L18209AP1976PLC002007
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. (The company is listed of Madras Stock Exchange)
Line of Business :	Manufacturer of various types of Finished Leather, Shoe Uppers and Full Shoes.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 420000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is established company incorporated in the year 1976 and having satisfactory track record. Reserve of the company is low. However, the company has shown increase in its total income for the year ended 2014 and reported top line growth of 7.8%. Profitability margin also stood at 3.77% during a year under review. Rating takes into comfort on company’s decent operation scale backed by its long experienced promoters. However, trade relations are fair. Business is active. Payments are reported to be usually correct. In view of decent operating scale, the company can be considered for the business dealing with usual trade terms and conditions. NOTE: The company is listed on Madras Stock Exchange. Though its shares are not been traded on BSE and NSE India.

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

NOT AVAILABLE

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 DECLINED BY

UNABLE TO CONTACT THE COMPANY

Mobile No.: 91-9952095980/ Tel. No.: 91-44-26872250 (Continuously Ringing from 3 Days)

LOCATIONS

Registered Office :	Avanti, Kambakkam Village, Varadaiahpalem, District Chittoor - 517541, Andhra Pradesh, India
Tel. No.:	91-44-26872250
Fax No.:	Not Available
E-Mail :	headoffice@avantileathers.com

DIRECTORS

AS ON30.09.2014

Name :

Mr. Vijay Kumar Koganti

Designation :

Managing Director

Address :

7/2, Binny Road,, Poes Garden, Chennai - 600086, Tamil Nadu, India

Date of Birth/Age :

26.09.1957

Qualification :

B.Sc

Date of Appointment :

01.11.2011

PAN No.:

AEWPK2877D

DIN No.:

00856036

Name :

Mr. Santappa Mushi

Designation :

Director

Address :

73 (Old)/ 8 (New), 3rd Main Road, Kasturiba Nagar,Adayar, Chennai - 600020, Tamil Nadu, India

Date of Birth/Age :

02.10.1923

Qualification :

Ph.D ( London University) Ph.D (Monchester University)

Date of Appointment :

30.10.2004

DIN No.:

00856144

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	L18209AP1976PLC002007	AVANTI LEATHERS LIMITED	Director	30/10/2004	30/10/2004	-	Active	NO
2	U74900TN2008PTC066461	MATRIX TRUSTEE COMPANY PRIVATE LIMITED	Director	08/05/2008	08/05/2008	21/09/2009	Active	NO

Name :

Mr. Anumolu Venketeswara Kishore

Designation :

Whole-Time Director

Address :

52 - A, 'K' Block, Anna Nagar East, Chennai, 600102, Tamil Nadu, India

Date of Birth/Age :

14.10.1962

Qualification :

B.Tech (Leathers)

Date of Appointment :

01.10.2011

PAN No.:

ABHPV2131M

DIN No.:

00864863

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	U19119TN1997PTC038813	INTERTAN EXPORTS PRIVATE LIMITED	Director	01/04/1999	01/04/1999	30/06/2009	Active	NO
2	U19119TN1997PTC038849	INNOVATIVE LEATHERCRAFTS (INDIA) PRIVATE LIMITED	Director	01/07/1999	01/07/1999	17/08/2009	Strike off	NO
3	U19129WB1991PLC053780	CREATIVE LIMITED	Director	02/01/2004	02/01/2004	26/11/2009	Active	NO
4	L18209AP1976PLC002007	AVANTI LEATHERS LIMITED	Whole-time director	01/10/2011	26/03/2008	-	Active	NO
5	U51909TN2008PTC069993	INTAN EXIM PRIVATE LIMITED	Director	25/11/2008	25/11/2008	30/06/2009	Active	NO
6	U19129WB2005PLC104328	CREATIVE TANNERY LIMITED	Director	01/04/2009	01/04/2009	01/10/2009	Active	NO

Name :

Mr. Tridip Kumar Dugar

Designation :

Director

Address :

Ashray Apartments Block B Flat No- 5 A, 5 B, 12 Sunny Park, Kolkata, 700019, West Bengal, India

Date of Birth/Age :

13.07.1953

Date of Appointment :

17.05.2008

DIN No.:

01158733

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	U19129WB1991PLC053780	CREATIVE LIMITED	Director	10/12/1991	10/12/1991	31/03/2011	Active	NO
2	U65999WB1993PTC057964	TRIANSU CREDITS PRIVATE LIMITED	Director	02/03/1993	02/03/1993	-	Active	NO
3	U65910WB1994PTC061748	TRIANSU RESOURCES PRIVATE LIMITED	Director	08/02/1994	08/02/1994	-	Active	NO
4	U70101WB1996PTC080291	CREATIVE PROPERTY DEVELOPERS PRIVATE LIMITED	Director	01/07/1996	01/07/1996	22/03/2010	Active	NO
5	U45201WB2000PTC091016	CREATIVE PROMOTERS PRIVATE LIMITED	Director	27/01/2000	27/01/2000	22/03/2010	Active	NO
6	U45201WB2000PTC091015	CREATIVE NIRMAAN PRIVATE LIMITED	Director	27/01/2000	27/01/2000	22/03/2010	Active	NO
7	U91017WB2000PTC091017	ACCESSORIES TRADING (INDIA ) PRIVATE LIMITED	Director	27/01/2000	27/01/2000	22/03/2010	Active	NO
8	U51909DL1986PLC023384	ADITYA EXPORTS LIMITED	Director	28/07/2000	28/07/2000	-	Active	NO
9	U51909WB2002PTC095446	TRIANSU TRADERS PRIVATE LIMITED	Director	29/11/2002	29/11/2002	-	Active	NO
10	U51909WB2002PTC095452	TRIANSU DEALERS PRIVATE LIMITED	Director	29/11/2002	29/11/2002	-	Active	NO
11	U19129WB2005PLC104328	CREATIVE TANNERY LIMITED	Director	22/07/2005	22/07/2005	-	Active	NO
12	L18209AP1976PLC002007	AVANTI LEATHERS LIMITED	Director	17/05/2008	26/03/2008	-	Active	NO
13	U51909TN2008PTC069993	INTAN EXIM PRIVATE LIMITED	Director	25/11/2008	25/11/2008	-	Active	NO
14	U51109WB2008PTC130664	VISTA TRADELINKS PRIVATE LIMITED	Director	25/02/2009	25/02/2009	-	Active	NO
15	U51909WB2008PTC131192	WELLMAN COMMODEAL PRIVATE LIMITED	Director	25/02/2009	25/02/2009	-	Active	NO
16	U74140WB2009PTC133898	MAHIMA MANAGEMENT SERVICES PRIVATE LIMITED	Director	06/08/2010	06/08/2010	-	Active	NO
17	U74140WB2009PTC133817	CINDRELLA MANAGEMENT SERVICES PRIVATE LIMITED	Director	06/08/2010	06/08/2010	-	Active	NO
18	U19115WB2011PTC171034	ORBIT POLYMERS AND LEATHER CRAFTS INDUSTRIES PRIVATE LIMITED	Director	21/12/2011	21/12/2011	-	Active	NO

Name :

Mr. Subbaramanaidu Allu

Designation :

Director

Address :

3, IInd Cross Street, Panchayat Main Road, Perungudi, Chennai - 600096, Tamil Nadu, India

Date of Birth/Age :

01.07.1948

Qualification :

B.A, M.A Diploma in Labour & Industrial Law

Date of Appointment :

17.05.2008

DIN No.:

02070245

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	L18209AP1976PLC002007	AVANTI LEATHERS LIMITED	Director	17/05/2008	31/01/2008	Active	NO
2	U24110TN2011PTC082910	GRUPPO BIOKIMICA INDIA PRIVATE LIMITED	Director	30/11/2012	18/10/2012	Active	NO

Name :

Mr. Mallela Sadhu Sundar

Designation :

Nominee Director

Address :

10-2-289/120/49/31,Ps Nagar, Vijayanagar Colony, Hyderabad - 500057, Andhra Pradesh, India

Date of Birth/Age :

11.11.1959

Date of Appointment :

01.03.2008

DIN No.:

02225017

Name :

Mr. Alessandro Carpignani

Designation :

Director

Address :

Via Xx, Septembre 40, Empoli, 50053, Italy

Date of Birth/Age :

18.10.1951

Date of Appointment :

30.09.2011

DIN No.:

05104374

Name :

Mr. Dandamudi Chandramouli

Designation :

Director

Address :

Plot No. 47, First Main Road, Clri Nagar, Neelankarai, Chennai - 600041, Tamil Nadu, India

Date of Birth/Age :

10.05.1953

Date of Appointment :

30.09.2014

DIN No.:

06928755

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Government Companies	0.66
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	2.68
Bodies corporate	50.70
Directors or relatives of directors	37.56
Other top fifty shareholders	5.18
Others	3.22
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of various types of Finished Leather, Shoe Uppers and Full Shoes.

Products/ Services :

ITC Code No.	Product Descriptions
4104302	Finished Leather Goat , Shoe Uppers

Brand Names :

--

Agencies Held :

--

Exports :

--

Imports :

---

Terms :

--

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	--
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

Customers :

Reference:	--
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

No. of Employees :

Not Available

Bankers :

Bank Name:	--
Branch:	--
Person Name (with Designation):	--
Contact Number:	--
Name of Account Holder:	--
Account Number:	--
Account Since (Date/ Year of A/c Opening):	--
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	--
Account Operation:	--
Remarks:	--

· Corporation Bank, Chennai – 600001, Tamil Nadu, India

· Andhra Bank, Madras Main Branch, 168, Linghi Chetty Street, Madras – 600001, Tamil Nadu, India

Facilities :

--

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	48, Balaji Nagar, Royapettah, Chennai – 517541, Tamil Nadu, India
Income-tax PAN of auditor or auditor's firm :	AAAFB2481J
Others Related Parties:	· Anumolu Hi-Tec Promoter Private Limited (CIN NO.: U45200TN2008PTC068913) · Creative Limited (CI NO.: U19129WB1991PLC053780) · Creative Tannery Limited (CIN NO.: U19129WB2005PLC104328) · Triansu Resources Private Limited (CIN NO.: U65910WB1994PTC061748)

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15,000,000	Equity Shares	Rs. 10/- each	Rs. 150.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,109,167	Equity Shares	Rs. 10/- each	Rs. 131.092 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	131.092	131.092	131.092
(b) Reserves & Surplus	17.200	16.880	19.286
(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)	148.292	147.972	150.378
(3) Non-Current Liabilities
(a) Long-term borrowings	88.230	74.883	72.068
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.284	1.284	1.241
Total Non-current Liabilities (3)	89.514	76.167	73.309
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	81.508	81.474	72.291
(c) Other current liabilities	1.259	3.124	7.819
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	82.767	84.598	80.110
TOTAL	320.573	308.737	303.797
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	184.599	189.388	198.170
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	22.752	7.240	6.185
(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	4.556	1.589	1.491
(e) Other Non-current assets	0.808	1.616	2.424
Total Non-Current Assets	212.715	199.833	208.270
(2) Current assets
(a) Current investments
(b) Inventories	7.765	15.213	40.644
(c) Trade receivables	79.819	76.592	45.325
(d) Cash and cash equivalents	6.637	4.959	4.521
(e) Short-term loans and advances	1.317	1.579	0.854
(f) Other current assets	12.320	10.561	4.183
Total Current Assets	107.858	108.904	95.527
TOTAL	320.573	308.737	303.797

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	77.144	70.745	122.444
		Other Income	1.612	2.286	2.714
		TOTAL (A)	78.756	73.031	125.158
Less	EXPENSES
		Cost of Materials Consumed	36.166	37.695	97.062
		Expenditure on Production, Transportation and Other Expenditure Pertaining to E and P Activities	(2.662)	(2.661)	0.000
		Prior Period Items	0.808	0.808	0.808
		Employees benefits expense	14.969	12.103	8.915
		Other expenses	17.435	15.645	9.998
		TOTAL (B)	66.716	63.590	116.783
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.040	9.441	8.375
Less	FINANCIAL EXPENSES (D)		0.624	0.354	0.743
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.416	9.087	7.632
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.442	8.831	6.313
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		2.974	0.256	1.319
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		2.974	0.256	1.319
	Earnings Per Share (Rs.)		0.23	0.02	0.10

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.205	0.170	0.440
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	3.86	0.36	1.08
Operating Profit Margin (PBDIT/Sales)	(%)	15.61	13.35	6.84
Return on Total Assets (PBT/Total Assets}	(%)	1.00	0.08	0.44
Return on Investment (ROI) (PBT/Networth)		0.02	0.00	0.01
Debt Equity Ratio (Total Debt/Networth)		0.60	0.51	0.48
Current Ratio (Current Asset/Current Liability)		1.30	1.29	1.19

STOCK PRICES

Face Value	NA
Market Value	NA

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	131.092	131.092	131.092
Reserves & Surplus	19.286	16.880	17.200
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	150.378	147.972	148.292
Long-term borrowings	72.068	74.883	88.230
Short term borrowings	0.000	0.000	0.000
CURRENT MATURITIES OF LONG-TERM DEBTS	0.440	0.170	0.205
Total borrowings	72.508	75.053	88.435
Debt/Equity ratio	0.482	0.507	0.596

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	122.444	70.745	77.144
		(42.223)	9.045

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	122.444	70.745	77.144
Profit	1.319	0.256	2.974
	1.08%	0.36%	3.86%

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	No
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	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	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	No
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10534700	22/10/2014	63,500,000.00	CREATIVE TANNERY LIMITED	P - 73A, LAKE ROAD, KOLKATA - 700029 , WEST BENGAL, INDIA	C35857093
2	90136914	02/11/1977	6,300,000.00	UNION BANK OF INDIA	HYDERABAD, HYDERABAD, ANDHRA PRADESH, INDIA	-

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Other Loans and Advances, Others	88.230	74.883
Total	88.230	74.883

OPERATING PERFORMANCE

The company is doing Job-Work production and also own production in smaller quantities.

The turnover of the company for the year ended 31st March, 2014 was Rs. 77.140 million against Rs. 70.750 millions in the previous year. During the year the company made sales of Rs. 17.110 million against Rs. 28.550 millions in the previous year and Job work receipts of Rs. 60.030 million against Rs. 42.140 in the previous year. During the year the company has made an operating profit of Rs. 2.970 million and cash profit of Rs. 9.370 millions.

As per the latest orders passed by AAIFR, the Company has to create equitable mortgage in favor of Creative Tannery Limited and the loans are to be repaid over a period of two and half years. The action has been initiated by the Company

OUTLOOK AND FUTURE PLANS

The outlook and future plans of the Company have been mentioned in detail under the Management Discussion and Analysis section that forms part of this report.

LISTING OF SHARES

The securities of the Company are listed on Madras Stock Exchange Annual Listing Fees for the year 2014-2015 has been duly paid to the Madras Stock Exchange.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

The leather industry is facing a multitude of problems namely reduced export prospects due to shrinkage of international markets, slow market recovery, very high price competition in the global market to capture the market share and liquidity problems faced both by the overseas buyer and the exporter.

The Government of India is giving a major boost to the leather industry with its policies and incentives helpful in the modernization and capacity development of the Leather sector.

FIXED ASSETS:

· Land

· Buildings

· Office building

· Plant and equipment

· Other plant and equipment

· Furniture and fixtures

· Vehicles

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. 63.95
UK Pound	1	Rs. 98.64
Euro	1	Rs. 69.86

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	KAS
Report Prepared by :	ARC

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
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		45

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.