MIRA INFORM REPORT

Report No. :	347919
Report Date :	02.11.2015

IDENTIFICATION DETAILS

Name :	SINGER INDIA LIMITED
Registered Office :	A-26/4, Mohan Co-Operative, Industrial Estate, New Delhi – 110044
Tel. No.:	91-11-40617777
Country :	India
Financials (as on) :	30.06.2015
Date of Incorporation :	19.10.1977
Com. Reg. No.:	55-025405
Capital Investment / Paid-up Capital :	Rs. 107.431 Million
CIN No.: [Company Identification No.]	L52109DL1977PLC025405
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	DELS21547B
PAN No.: [Permanent Account No.]	AAACS5117M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the business of trading / manufacturing in sewing machines and also conducts limited trading in small appliances, household / consumer durables.
No. of Employees :	336 (Approximately)

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 1300000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company incorporated in the year 1977 having satisfactory track. Subject is engaged in the business of trading and manufacturing in sewing machines and also conducts limited trading in small appliances, household and consumer durables. The company possesses an above average financial risk profile marked by healthy networth base and fair profit margin of the company. The rating further takes into consideration debt free balance sheet of the company. Moreover this rating strength is partially offset by muted growth expectation in sewing machine industry. Trade relations are reported as fair. Business is active. Payment terms are reported as usually correct and as per commitment. In view of long track record and acceptable financial base, the company can be considered normal 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	ICRA
Rating	Cash Credit= BB+
Rating Explanation	Moderate risk of default.
Date	May 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 31-03-2015.

INFORMATION DENIED BY

Name :	Mr. Y. P. Sharma
Designation :	Accounts Manager
Contact No.:	91-11-40617777
Date :	30.10.2015

LOCATIONS

Registered Office/Head Office/Corporate Office :	A-26/4, Mohan Co-Operative, Industrial Estate, New Delhi – 110044, India
Tel. No.:	91-11-40617777
Fax No.:	91-11-40617799
E-Mail :	mail@singerindia.net asrivastava@singerindia.net secretarial@singerindia.com
Website :	http://www.singerindia.com
Factory :	Lane No.4, SIDCO Industrial Estate, Jammu, India
Factory 2 :	Lane No.2, SIDCO Industrial Estate, Phase II, Jammu, India

DIRECTORS

AS ON 30.06.2015

Name :	Mr. P. N. Sharma
Designation :	Chairman
DIN No.:	00023625
Name :	Mr. Deepak Sabharwal
Designation :	Director
DIN No.:	00173116
Name :	Mr. Gavin Walker
Designation :	Director
DIN No.:	01216863
Name :	Mrs. Madhu Vij
Designation :	Director
DIN No.:	00025006
Name :	Mr. Rajeev Bajaj
Designation :	Managing Director
DIN No.:	02284467

KEY EXECUTIVES

Name :	Mr. Richin Sangwan
Designation :	Secretary
Name :	Mr. Y. P. Sharma
Designation :	Accounts Manager

SHAREHOLDING PATTERN

AS ON 30.09.2015

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	8057351	75.00
Sub Total	8057351	75.00
Total shareholding of Promoter and Promoter Group (A)	8057351	75.00
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	120	0.00
Central Government / State Government(s)	121400	1.13
Insurance Companies	17	0.00
Sub Total	121537	1.13
(2) Non-Institutions
Bodies Corporate	736682	6.86
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	1123900	10.46
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	674492	6.28
Any Others (Specify)	29173	0.27
Non Resident Indians	29173	0.27
Sub Total	2564247	23.87
Total Public shareholding (B)	2685784	25.00
Total (A)+(B)	10743135	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	10743135	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the business of trading / manufacturing in sewing machines and also conducts limited trading in small appliances, household / consumer durables.
Products :	Small Appliances Household / Consumer Durables
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	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 :

Company Name :	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 :

336 (Approximately)

Bankers :

· Yes Bank

· The Jammu and Kashmir Bank Limited

· ICICI Bank Limited

Facilities :

SECURED LOANS	30.06.2015 Rs. In Million	30.06.2014 Rs. In Million
Short Term Borrowings
Loans repayable on demand
From Banks – Cash credit	0.000	1.621
Total	0.000	1.621

Auditors :
Name :	Ray and Ray Chartered Accountants
Address :	205, Ansal Bhawan, 16, Kasturba Gandhi Marg, New Delhi – 110001, India
Tel. No.:	91-11-23705415 / 23705416 / 41525215
E-Mail :	raynraydelhi@vsnl.com
Website :	www.raynray.net
Collaborators :	Not Divulged
Membership :	Not Divulged
Holding Company :	· Singer (India) B.V. (Netherlands)
Ultimate Holding Company :	· Retail Holding N.V. (Curacao)
Holding Company of Singer (India) B.V. (Netherlands) :	· Singer Asia Holdings BV (Netherlands)
Subsidiary Companies :	· Singer India Trading Limited (Under Liquidation)
Associates :	· Brand Trading (India) Private Limited · Singer Bangladesh Limited · Singer Industries (Ceylon) PLC · Singer Pakistan Limited
Other related parties with whom the co. had transactions	· Singer Thailand Public Co. Limited
Name of related parties* where control exists having no transactions during the year: Associates	· Btindia Limited (B.V.I.) · Reality (Lanka) Limited · Regnis (Lanka) PLC · Regnis Appliances Private Limited · Sewko Asean Trading Limited (B.V.I.) · Singer (Pakistan) B.V. (Netherlands) · Singer (Sri Lanka) B.V. (Netherlands) · Singer (Thailand) B.V. (Netherlands) · Singer Asia Limited (Cayman Islands) · Singer Asia Finance B.V. (Curacao) · Singer Bhold B.V. (Netherlands) · Singer Business School Private Limited · International Appliances Limited · Singer Corporation Limited (Hong Kong) · Singer Finance (Lanka) PLC · Singer Srilanka PLC · Thailnvest B.V. (Netherlands) · Telshan Network Private Limited · SEWKO Holdings Limited (Cayman Islands) · Brand Trading (Cambodia) Limited (Cambodia) · ReHo Limited (Cayman Islands) · Singer Digi-tal Media Private Limited · UCL Holdings VII Limited (B.V.I.) · Singer Asia Holding NV (Curacao)

CAPITAL STRUCTURE

AS ON 30.06.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Million
500000	Preference Share	Rs.100/- each	Rs. 50.000 Million
	Total		Rs. 200.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10743135	Equity Shares	Rs.10/- each	Rs. 107.431 Million

a) Reconciliation of Equity shares

	30.06.2015
	No. of Shares held	Rs. in Million
At the beginning of the period	10743135	107.431
Issued during the period	-	-
Outstanding at the end of the period	10743135	107.431

b) 10 each and Preference shares have a par value of Rs. 100 each. No Preference Shares have been issued.

c) Terms / Rights attached to the Equity Shares

The Company has at present one class of shares i.e. Equity shares having par value of Rs. 10 per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend if any, is proposed by the Board of Directors and is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) Shareholder's holding more than 5% of Equity shares at the end of the year in the Company

Name of Shareholder	30.06.2015
	No. of Shares held	%
Singer India B.V., Netherland- The Holding Company	10743135	75.00

As per the of the Company, including its register of shareholders / members and other declaration received from the shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

9,177,900 Equity Shares of Rs. 10 each were allotted through preferential basis as fully paid up to Singer (India) B.V. Netherlands, the Holding Company consequent to compliance with the scheme of rehabilitation sanctioned by the Hon'ble BIFR. Out of which 8,27,900 Equity Shares of Rs. 10/- each were allotted by converting 10% amount borrowed from them in form of external commercial borrowing.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	30.06.2015	30.06.2014	30.06.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	107.431	107.431	107.431
(b) Reserves & Surplus	345.562	314.381	265.492
(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)	452.993	421.812	372.923
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	4.543	7.750	8.438
(d) long-term provisions	12.848	9.935	7.016
Total Non-current Liabilities (3)	17.391	17.685	15.454
(4) Current Liabilities
(a) Short term borrowings	0.000	1.621	0.000
(b) Trade payables	316.496	252.592	110.787
(c) Other current liabilities	48.268	41.675	111.071
(d) Short-term provisions	119.445	97.034	96.062
Total Current Liabilities (4)	484.209	392.922	317.920
TOTAL	954.593	832.419	706.297
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	118.864	114.697	118.352
(ii) Intangible Assets	0.534	0.342	0.406
(iii) Capital work-in-progress	0.000	0.000	0.000
(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)	51.320	83.021	105.298
(d) Long-term Loan and Advances	64.792	49.131	27.469
(e) Other Non-current assets	4.470	1.383	0.000
Total Non-Current Assets	239.980	248.574	251.525
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	296.032	246.367	206.472
(c) Trade receivables	256.143	187.859	131.827
(d) Cash and cash equivalents	123.023	116.849	92.879
(e) Short-term loans and advances	38.391	29.826	21.817
(f) Other current assets	1.024	2.944	1.777
Total Current Assets	714.613	583.845	454.772
TOTAL	954.593	832.419	706.297

PROFIT & LOSS ACCOUNT

	PARTICULARS			30.06.2015	30.06.2014	30.06.2013
	SALES
		Income		2849.684	2433.489	1969.173
		Other Income		22.380	16.414	38.467
		TOTAL (A)		2872.064	2449.903	2007.640
Less	EXPENSES
		Cost of Materials Consumed		75.925	73.156	13.174
		Purchase of Stock-in-trade		2230.759	1902.231	1573.248
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		(46.387)	(37.160)	(13.642)
		Employee Benefits Expenses		130.620	103.603	69.019
		Other Expenses		374.191	308.508	265.713
		Exceptional Items		2.013	0.000	0.000
		TOTAL (B)		2767.121	2350.338	1907.512
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			104.943	99.565	100.128
Less	FINANCIAL EXPENSES (D)			0.776	0.805	0.524
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			104.167	98.760	99.604
Less	DEPRECIATION/ AMORTISATION (F)			8.200	6.746	5.896
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			95.967	92.014	93.708
Less	TAX (H)			31.947	22.277	(59.502)
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			64.020	69.737	153.210
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			198.937	152.024	25.329
Less	Carrying amount of fixed assets whose remaining useful life is Nil as on 1st July, 2014 (Schedule II of the Companies Act, 2013) net of deferred tax			0.513	0.000	0.000
Less	APPROPRIATIONS
			Transfer to General Reserve	6.386	3.487	7.661
			Dividend	26.858	16.115	16.115
			Tax on Dividend	5.468	3.222	2.739
	BALANCE CARRIED TO THE B/S			223.732	198.937	152.024
	EARNINGS IN FOREIGN CURRENCY
			F.O.B. Value of Exports	66.453	30.138	0.000
	IMPORTS
			Finished Goods	395.625	353.716	232.152
	Earnings Per Share (Rs.)			5.96	6.49	14.26

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	30.06.2015	30.06.2014	30.06.2013
Current Maturities of Long term debt	NA	NA	NA
Cash Generated from Operations	55.472	63.612	8.776
Net Cash from Operating Activities	36.523	43.154	(7.343)

KEY RATIOS

PARTICULARS		30.06.2015	30.06.2014	30.06.2013
Net Profit Margin PAT / Sales	(%)	2.25	2.87	7.78
Operating Profit Margin (PBDIT/Sales)	(%)	3.68	4.09	5.08
Return on Total Assets (PBT/Total Assets)	(%)	10.62	12.28	15.59
Return on Investment (ROI) (PBT/Networth)		0.21	0.22	0.25
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.48	1.49	1.43

STOCK PRICES

Face Value	Rs.10.00/-
Market Value	Rs.190.50/-

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	30.06.2013	30.06.2014	30.06.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	107.431	107.431	107.431
Reserves & Surplus	265.492	314.381	345.562
Net worth	372.923	421.812	452.993
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	1.621	0.000
Total borrowings	0.000	1.621	0.000
Debt/Equity ratio	0.000	0.004	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	30.06.2013	30.06.2014	30.06.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	1969.173	2433.489	2849.684
		23.579	17.103

NET PROFIT MARGIN

Net Profit Margin	30.06.2013	30.06.2014	30.06.2015
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	1969.173	2433.489	2849.684
Profit	153.210	69.737	64.020
	7.78%	2.87%	2.25%

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)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	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	Yes
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

LITIGATION DETAILS:

  IN THE HIGH COURT OF DELHI AT NEW DELHI

  CS(OS) 3136/2012

  USHA INTERNATIONAL LIMITED ..... Plaintiff

  Through: Mr. Ashish Marbaniang and Mr. Kanish Kumar, Advs.

versus


  SINGER INDIA LTD ..... Defendant

  Through: Mr. Sumit Wadhwa, Adv.


  CORAM:

  SH. KOVAI VENUGOPAL (DHJS), JOINT REGISTRAR (JUDICIAL)


   O R D E R

   28.04.2015


  Today the case is coming up for plaintiff?s evidence.

  PW-1 present, his affidavit tendered in evidence and documents
  exhibited.

  Cross deferred at the request of counsel for defendant.

  At request, put up for cross examination of PW-1 on 17th November,
  2015 at 02: 15 p.m.

  KOVAI VENUGOPAL (DHJS)

  JOINT REGISTRAR (JUDICIAL)

  APRIL 28, 2015

  dsn

  $ 26

OPERATIONS

Despite the slowdown in the consumer demand witnessed during most part of the year under review, The Company could maintain a growth in the businesses of both sewing machines and domestic appliances. The financial year ended 30th June 2015 ended with a total turnover of Rs. 2849.700 million from Rs.2433.500 million in the previous year showing a growth of 17 % while revenue from Sewing Machines and Related Accessories Business at Rs.2518.800 million increased by 14% over the prior year, the Domestic Appliances Business, a relatively new business segment of The company, at Rs.330.900 million grew by 48%. The Domestic Appliances Business accounted for 11.6 % of the total business of The Company in the year and thus becoming a separate reportable segment from this year.

The company continued to expand its presence Pan India but keeping focus on select markets and also revamping the existing distribution network. The company continued to strengthen its operating structure in the fields of logistics, after sales service and marketing services to expand the businesses resulting in increase in the operational costs. The Company however is determined to make the domestic appliances vertical also a profitable segment by optimizing these costs in future. The focus will remain in delivering quality products and efficient services to the Customers combined with aiming at improving the operating margins and also optimizing the use of working capital.

The profit before tax and after tax for the year amounted to Rs. 96.000 million (after exceptional items of Rs. 2.000 million) (Rs.92.000 million in the previous year) and Rs. 64.000 million (Rs. 69.700 million in the previous year) respectively. The charge of deferred tax expense during the year under review was relatively higher compared to the prior year as in the prior year this was after netting a credit taken for the deferred tax asset.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

The Sewing Machines and Domestic Appliances industry in India continues to be dominated by the small scale sector with imports of appliances largely from China. The Make in India initiatives and the implementation of the

Common Goods and Services Tax for all states are expected to impact these industries albeit others also to transform to higher growth with better productivity. The sewing machines market in India continues to maintain its low growth though more shifting to rural markets. The Zig Zag and Electronic Sewing machines offer higher potential for growth in the urban markets and also serve as the replacement market for the conventional sewing machines. The up gradation to high end artisan sewing machines is also being witnessed even with the household customers. .

Domestic appliances market offers a huge potential with sustained growth rate in India with rising households and income levels.

OUTLOOK AND OPPORTUNITIES

Considering the current market share of the company, there is potential to increase its share both in straight stitch and Zig Zag segments. The Company will expand its reach in the markets where it has gaps at present including formulating the strategy for entering rural markets in a phased manner.

The Domestic appliances market, which is a large and growing market, offers tremendous opportunity to the Company to expand this business with its strong brand recall.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10461574	10/03/2015 *	50,000,000.00	Yes Bank Limited	9th Floor, Nehru Centre, Discovery Of India,, Dr. Annie Besant Road, Worli,, Mumbai, Maharashtra - 400018, India	C50411255
2	10464351	09/03/2015 *	30,000,000.00	The Jammu And Kashmir Bank Limited	Trikuta Nagar, Jammu, Jammu And Kashmir - 180012, India	C47590260

*Date of modification Charges

FIXED ASSETS:

· Leasehold Land

· Building Leasehold Land

· Plant and Machinery

· Office Equipment

· Furniture and Equipment/ Furniture

· Leasehold Improvement

· Computers

· 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 records 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.65.22
UK Pound	1	Rs.99.93
Euro	1	Rs.71.67

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	DIV
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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

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.